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CMO - Chrometco Ltd - Reviewed Interim Financial Results for the Six Months Ended 31 August 2011 Chrometco Limited (Incorporated in the Republic of South Africa) (Registration number 2002/026265/06) Share code: CMO ISIN: ZAE000070249 ("Chrometco" or "the group" or "the company") INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2011 AND FURTHER CAUTIONARY ANNOUNCEMENT. ABRIDGED STATEMENT OF FINANCIAL POSITION Reviewed Reviewed Audited Interim Interim for year
as at as at as at 31 August 31 August 28 February 2011 2010 2011
R`000 R`000 R`000 ASSETS Non-current assets 31 1 232 46 Tangible assets 31 57 46 Deferred taxation 1 175 - Other long-term receivables - - - Current assets 36 009 29 770 39 211 Trade and other receivables 1 861 1 320 1 552 Cash and cash equivalents 34 148 28 450 37 659 Total assets 36 040 31 002 39 257 EQUITY AND LIABILITIES Capital and reserves 28 960 29 908 38 817 Issued capital 2 2 2 Share premium 35 485 35 485 35 485 (Accumulated loss) / Retained earnings (6 527) (5 579) 3 330 Non-current liabilities 6 640 - 386 Deferred taxation 6 640 - 386 Current liabilities 440 1 094 54 Trade and other payables 440 169 54 Taxation payable 925 - Total equity and liabilities 36 040 31 002 39 257 Net asset value per share 15.66 16.17 20.99 (cents) Net tangible asset value per 15.66 16.17 20.99 share (cents) Closing number of shares 184 929 184 929 184 929 (`000) ABRIDGED STATEMENT OF COMPREHENSIVE INCOME Reviewed Reviewed Audited Interim Interim for year 6 months 6 months ended
ended ended 28 February 31 August 31 August 2011 2011 2010
R`000 R`000 R`000 Revenue - - - Cost of sales - - - Gross profit - - - Other income - 7 318 Reversal of impairment loss - - 13 000 Operating expenses (4 444) (4 466) (8 077) Net (loss)/ profit before interest and taxation (4 444) (4 459) 5 241 Investment income 841 1 043 1 813 Net (loss) / profit before taxation (3 603) (3 416) 7 054 Taxation (6 254) (345) (1 906) Net (loss) / profit for the period (9 857) (3 761) 5 148 Other comprehensive income - - - Total comprehensive (loss) / profit for the period (9 857) (3 761) 5 148 Reconciliation between earnings and headline earnings per share Basic (loss) / earnings per share (cents)(5.33) (2.03) 2.78 Diluted (loss) / earnings per share (cents) (5.33) (2.03) 2.78 Headline (loss) / earnings per share for the half year ended 31 August 2011 Total comprehensive profit / (loss) for the six months (9 857) (3 761) 5 148 Adjustments: Profit on disposal of subsidiary - (7) (7) Reversal of impairment on long term receivable - - (13 000) Impairment of receivable - - 251 Headline loss attributable to ordinary shareholders (9 857) (3 768) (7 608) Headline loss per share (cents) (5.33) (2.04) (4.11) Weighted average number of shares (`000) 184 929 184 929 184 929 CASH FLOW STATEMENTS Reviewed Reviewed Audited Interim Interim for year 6 months 6 months ended ended ended 28 February
31 August 31 August 2011 2011 2010 R`000 R`000 R`000 Cash flows from operating activities (3 511) (3 809) (7 534) Cash flows from investing activities - (14) 12 993 Cash flows from financing activities - (9 172) (9 246) Net movement in cash and cash equivalents (3 511) (12 995) (3 787) Cash and cash equivalents at the beginning of the period 37 659 41 445 41 446 Cash and cash equivalents at the end of the period. 34 148 28 450 37 659 STATEMENT IN CHANGES OF EQUITY Capital Retained and Premium Earnings Total R`000 R`000 R`000 Balance at 1 March 2010 35 487 7 429 42 916 Total comprehensive profit for the year - 5 148 5 148 Dividends paid - (9 247) (9 247) Balance at 28 February 2011 35 487 3 330 38 817 Balance at 1 March 2011 35 487 3 330 38 817 Total comprehensive loss for the six months ended 31 August 2010 - (9 857) (9 857) Balance at 31 August 2011 35 487 (6 527) 28 960 COMMENTARY - Financial and operational overview. 1. The directors present the interim financial results for the six months ended 31 August 2011. 2. Basis of preparation The accounting policies of the company comply in all material respects with recognition and measurement criteria of International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Standards Board ("IASB") in issue and effective at 31 August 2010, as well as the presentation and disclosure requirements of IAS 34 - Interim Financial Reporting, the JSE Limited Listings Requirements, the Companies Act of 2008 and the AC 500 series as issued by the Accounting Practices Board and/or its successor. The accounting policies and methods of measurement and recognition are consistent with those applied in the financial period ended 31 August 2010. 3. These results have been reviewed by the company`s independent auditors RSM Betty & Dickson (Johannesburg). Their unmodified review report is available for inspection at the company`s registered office during ordinary business hours. 4. Long term receivables are measured at amortised cost less accumulated impairment losses. 5. Nature of business. The company is involved in the exploration of mineral resources and the possible beneficiation thereof. 6. General review of operations. During the six months under review, the company focused its attention on the following important issues:- - In May of this year, the company prepared and distributed a circular to shareholders concerning the conditional disposal of Rooderand to DCM Chrome. At a general meeting of shareholders held in June of this year, shareholders voted against the conditional disposal of Rooderand to DCM Chrome. - Evaluation of alternatives relating to the Rooderand project - Updating the mineral resources and reserves statement, Competent Persons Report and valuation of Rooderand - Conversion of "old order" mineral rights to "new order" mining rights in terms of the Mineral and Petroleum Resources Development Act; and - Optimisation of the allocation of capital resources. - Overseeing the company`s interest in the mining and management agreement with DCM Chrome. In terms of this agreement, Chrometco is entitled to receive R 10 million in cash on 3 December 2011. The company has impaired the receivable relating to amounts owed by DCM Chrome. Reversal of the impairment on this receivable will take place if and when the probability of recovering the balance owed by DCM Chrome increases. 7. Changes in measurement of deferred taxation balances relating to Rooderand proceeds Deferred taxation liabilities relating to the receipt of proceeds under the mining and management agreement with DCM Chrome have previously been recognised at capital gains tax rates. In light of the outcome of the general meeting of shareholders in May of this year, deferred taxation liabilities relating to the Rooderand proceeds have been measured at normal tax rates due to the expectation that the revised tax rates would be expected to apply to the settlement of these deferred tax liabilities in the future. 8. Prospects The group currently has a chrome mine in the North West province of the Republic of South Africa.. Subsequent to the termination of the mining and management agreement with DCM Chrome on 3 December 2011, the company intends to commence mining operations for their own account on the Rooderand site. The company is also interested in the exploration and beneficiation of mineral resource opportunities in the Republic and elsewhere 9. Changes to the board There have been no changes to the composition and structure of the board of directors during the period under review. 10. Dividends No dividend has been declared for the interim period. FURTHER CAUTIONARY ANNOUNCEMENT Further to the cautionary announcement dated 2 November 2011, shareholders are advised to continue to exercise caution when dealing in the company`s securities until a further announcement is made. For and on behalf of the board of directors PJ Cilliers Managing Director 28th November 2011 Directors: JG Scott (Chairman), PJ Cilliers (MD),E Bramley (Non-executive), TW Scott (FD). Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited. Company Secretary: CIS company Secretaries (Pty) Ltd Registered Office: 70 Marshall Street Johannesburg 2001 (P.O.Box 3787, Dainfern. 2055) www.chrometco.co.za Date: 28/11/2011 17:42:31 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
