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Petmin - Reviewed interim results for the six months ended 31 December 2004 PETRA MINING LIMITED (Incorporated in the Republic of South Africa) (Registration number 1972/001062/06) Share code: PET ISIN: ZAE000010237 ("Petmin" or "the company") REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 * Reconstituted Petmin completes first acquisition * NAV increases by 103 per cent since year end * HDSA shareholding increases to 47 per cent ABRIDGED INCOME STATEMENTS Reviewed Unaudited Audited
Six months Six months Year ended ended ended 31/12/04 31/12/03 30/06/04 R"000 R"000 R"000
Turnover 20 608 - - Net operating profit/(loss) 2 004 (890) (2 536) Interest received 577 1 617 2 514 Interest paid (204) Net profit/(loss) before taxation 2 377 727 (22) Taxation (521) (218) (216) Net profit/(loss) after taxation 1 856 509 (238) Earnings/(loss) and dividend per ordinary share Shares in issue (millions) 186 80 97 Weighted average number of shares (millions) 165 80 87 Fully diluted 201 80 87 Earnings/(loss) per share Net profit/(loss) attributable to ordinary shareholders (R"000) 1 856 509 (238) Earnings per share (cents) 1.12 0.60 (0.27) Fully diluted 0.92 0.60 (0.27) Headline earnings/(loss) per share Net profit/(loss) attributable to ordinary shareholders (R"000) 1 856 509 (238) 1 856 509 (238) Headline earnings/(loss) per share (cents) 1.12 0.60 (0.27) Fully diluted 0.92 0.60 (0.27) Dividends paid per share Dividends paid (R"000) - - - Dividends paid per share (cents) - - - ABRIDGED BALANCE SHEETS Reviewed Unaudited Audited 31/12/04 31/12/03 30/06/04 R"000 R"000 R"000
Assets Non-current assets Fixed assets 77 069 - - Undeveloped properties 33 500 Current assets 47 149 27 640 32 230 Trade and other receivables 16 436 672 759 Stock 4 918 - - Cash resources 25 795 26 968 31 471 Total assets 157 718 27 640 32 230 Equity and liabilities Capital and reserves 97 745 26 901 25 104 Issued share capital 46 578 20 000 24 250 Share premium 18 575 87 937 Non-distributable reserves 24 669 6 000 - Fair value reserve - - (6 150) Retained earnings 7 923 814 6 067 Preference shares 13 000 - - Long-term liabilities 23 109 - - Deferred taxation 3 237 - - Current liabilities 20 627 739 7 126 Trade and other payables 19 984 520 760 FEC liability - - 6 150 Taxation 643 219 216 Total equity and liabilities 157 718 27 640 32 230 Net asset value per share (cents) 52,55 33,63 25,88 ABRIDGED CASH FLOW STATEMENTS Reviewed Unaudited Audited Six months Six months Year
ended ended ended 31/12/04 31/12/03 30/06/04 R"000 R"000 R"000 Net cash flows from operating activities 5 294 (9 837) (10 434) Cash flows from investing activities Cash held by subsidiary on acquisition 19 460 - - Cash paid for subsidiary (34 125) - - Fixed assets purchased (1 379) - - Cash flows from investing activities (16 044) - - Net cash flows from financing activities 5 074 - 5 100 Net movement in cash (5 676) (9 837) (5 334) Cash at beginning of period/year 31 471 36 805 36 805 Cash at end of period/year 25 795 26 968 31 471 ABRIDGED STATEMENTS OF CHANGES IN EQUITY Non-distri- Fair
Share Share butable value Retained R"000 capital premium reserves reserve earnings Total Balance at 31 Dec 2003 20 000 87 6 000 - 814 26 901 Balance at 30 June 2004 24 250 937 - (6 150) 6 067 25 104 Balance at 1 July 2004 24 250 937 - (6 150) 6 067 25 104 - Shares issued to acquire SamQuarz 21 111 16 889 - - - 38 000 - General issue of shares for cash 1 217 749 - - - 1 966 - Capitalised against investment in SamQuarz - - - 6 150 - 6 150 - Net profit for the period - - - - 1 856 1 856 - Negative goodwill - - 24 669 - - 24 669 Balance at 31 Dec 2004 46 578 18 575 24 669 - 7 923 97 745 COMMENTS 1. Introduction This interim report for the six months ended 31 December 2004 includes the consolidated results of SamQuarz (Pty) Ltd ("SamQuarz") and Petmin, subsequent to the acquisition of SamQuarz that was completed on 24 September 2004, and represents the first set of results since Petmin was converted from a cash shell to a Mining and Exploration Company. 2. Review of results The interim results of the group as set out above have been reviewed by the company"s auditors, PricewaterhouseCoopers Inc., as required by the JSE Securities Exchange South Africa. The review report is available for inspection at the company"s registered office. The comparative figures show the results of Petmin as a cash company with the only income being interest earned. With the completion of the SamQuarz acquisition, the newly constituted Petmin group once again became an operating mining group. The inclusion of SamQuarz"s results from the effective date of the acquisition has resulted in the increase in earnings per share of 86.7% and increase in net asset value per share of 56.3% between the current period and the comparative period. 3. Acquisition of SamQuarz and historically disadvantaged South African ("HDSA") shareholding In previous public announcements Petmin has stated the rationale for the SamQuarz acquisition, namely, to acquire cash generative assets in order to pursue Petmin"s stated objective of becoming an HDSA controlled junior mining and exploration company. Persuant to the acquisition of SamQuarz the HDSA holding in Petmin, including shares held by New Africa Mining Fund Nominees and managed by Decorum Capital Partners (Pty) Ltd, is 46.27%. In addition, a further 46.8 million share options are currently held by HDSA controlled companies that will, if exercised take the shareholding of HDSA"s in Petmin to 56.0%. During the twelve month period ending 31 December 2004 SamQuarz has consistently exceeded its monthly profit targets. It is expected that SamQuarz should continue to be a stable income generating asset for Petmin. 4. NAV of Petmin The Net Asset Value and Tangible Net Asset Value of Petmin have increased from 25.88 cents per share on 30 June 2004 to 52,55 cents per share on 31 December 2004, amounting to a 103% increase. 5. Term loan Subsequent to the completion of the SamQuarz acquisition, the newly constituted Petmin group has secured a six year term loan facility with Standard Bank of South Africa of R40 million at prime. 6. SamQuarz management restructuring The restructuring of the management of SamQuarz has been completed and Petmin is confident that with the appointment of Mr Johan Gloy as Managing Director (previously General Manager) and Mrs Marita Conradie as Financial Director, SamQuarz has a highly motivated and competent Management team. 7. Preference shares Pursuant to the completion of the SamQuarz acquisition, the junior loans of SamQuarz amounting to R40 million as detailed in the Petmin financial statements for the year ended 30 June 2004 were converted into redeemable preference shares. These preference shares are redeemable at the election of SamQuarz and there is no obligation on SamQuarz to declare any fixed dividends in respect of these preference shares. Petmin owns preference shares with a redemption value of R27 million and the balance of R13 million is held by third parties. 8. Accounting policy This report has been prepared in terms of South African Statements of Generally Accepted Accounting Practice (GAAP), and is consistent with those applied in the financial statements for the year ended 30 June 2004. 9. Subsequent events At the general meeting held on 12 January 2005, the requisite majority of shareholders approved a specific issue of shares and options for cash at a price of 45 cents per share. The financial effects of the options and shares so issued were provided in a circular to shareholders included in the financial statements for the group for the year ended 30 June 2004. 10. Prospects The directors believe that Petmin is well positioned, considering its access to own funds, HDSA status and it"s relationship with the New Africa Mining Fund to actively pursue opportunities in the mining sector to enhance shareholder value. On behalf of the Board D H Warmenhoven P J Nel Pretoria Chief Executive Officer Chairman 8 February 2005 REGISTERED OFFICE Parc Nouveaux, First Floor, Block C, 225 Veale Street, Brooklyn, Pretoria, 0002. (PO Box 899, Groenkloof, 0027) SECRETARY AND SPONSOR River Sponsors (Pty) Limited TRANSFER SECRETARIES Computershare Investor Services 2004 (Proprietary) Limited AUDITORS PricewaterhouseCoopers Inc. DIRECTORS: P J Nel (Non-executive Chairman), D H Warmenhoven (Chief Executive Officer), J A Strijdom, J P Mabena, L Mogotsi, E de V Greyling Date: 10/02/2005 08:28:49 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
