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Reviewed Interim Financial Results for the Six Months Ended 31 August 2012
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE00007020249
("Chrometco" or "the group" or the company)
REVIEWED INTERIM CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2012
ABRIDGED STATEMENT OF FINANCIAL POSITION
Reviewed Reviewed Audited
Interim Interim for year
as at as at as at
31 August 31 August 29 February
2012 2011 2012
R'000 R'000 R000
ASSETS
Non-current assets 182 438 31 184 532
Tangible assets 41 31 52
Intangible Assets 181 379 - 184 480
Deferred taxation 1 018 - -
Other long-term receivables - - -
Current assets 33 140 36 009 38 606
Inventories 6 449 - 6 870
Trade and other receivables 4 1 861 126
Cash and cash equivalents 26 687 34 148 31 610
Total assets 215 578 36 040 223 138
EQUITY AND LIABILITIES
Capital and reserves 167 312 28 960 173 105
Issued capital 2 2 2
Share premium 35 485 35 485 35 485
Retained earnings / (Accumulated loss) 96 598 (6 527) 101 786
Non-Controlling Interest 35 227 - 35 832
Non-current liabilities 33 857 6 640 34 436
Deferred taxation 33 857 6 640 34 436
Current liabilities 14 409 440 15 597
Trade and other payables 11 124 - 12 499
Provisions 10 - 10
Taxation payable 3 275 - 3 088
Total equity and liabilities 215 578 36 040 223 138
Net asset value per share 90.47 15.66 93.61
(cents)
Net tangible asset value per 10.15 15.66 12.47
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 29 February
31 August 1 August 2012
2012 2011
R'000 R'000 R000
Revenue 871 - 619
Cost of sales (421) - (314)
Gross profit 450 - 305
Other income - - -
Reversal of impairment loss - - -
Gain on bargain purchase - - 115 128
Change in measurement VAT (6 018)
Operating expenses (8 350) (4 444) (10 520)
Net (loss)/ profit before interest
and taxation (7 900) (4 444) 98 895
Investment income 696 841 1 623
Net (loss) / profit before taxation (7 204) (3 603) 100 518
Taxation 1 410 (6 254) (2 412)
Net (loss) / profit for the period (5 794) (9 857) 98 106
Other comprehensive income - - -
Taxation of other comprehensive
Income - - -
Total Comprehensive (loss) / income
For the period (5 794) (9 857) 98 106
(Loss) /Profits attributable to non
Controlling interest 605 - 350
Other comprehensive income - - -
Total comprehensive (loss) / income for
the period attributable to the owners
of the company (5 189) (9 857) 98 456
Reconciliation between earnings and
headline earnings
per share
Basic (loss) / earnings per share
cents) (2.81) (5.33) 53.24
Diluted (loss) / earnings
per share (cents) (2.81) (5.33) 53.24
Headline (loss) / earnings per share
for the half year ended 31 August 2012
Total comprehensive profit / (loss)
for the six months (5 189) (9 857) 98 456
Adjustments:
Profit on sale of shares in
subsidiary - - -
Reversal of impairment on long term
receivable - - -
Gain on bargain purchase - - (115 128)
Headline loss attributable
to ordinary shareholders (5 189) (9 857) (16 672)
Headline loss per share (cents) (2.81) (5.33) (9.01)
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 29 February
31 August 31 August 2012
2012 2011
R'000 R'000 R000
Cash flows from operating
activities (4 923) (3 511) (6 041)
Cash flows from investing
activities - - (8)
Cash flows from financing
activities - - -
Net movement in cash and cash
equivalents (4 923) (3 511) (6 049)
Cash and cash equivalents at
the beginning of the period 31 610 37 659 37 659
Cash and cash equivalents at
the end of the period. 26 687 34 148 31 610
STATEMENT IN CHANGES OF EQUITY
Capital Non Controlling Retained
and Premium Interest Earnings Total
R'000 R'000 R'000 R'000
Balance at 1
March 2011 35 487 - 3 330 38 817
Total comprehensive
loss for the period - - (9 857) (9 857)
Balance at 31
August 2011 35 487 - (6 527) 28 960
Acquired through
Acquisition of
Pilanesberg Mining
Company(Pty) Ltd - 36 182 - 36 182
Non controlling interest
share of Loss - (350) - (350)
Total comprehensive
Loss - - 108 313 108 313
Dividends paid - - - -
Balance at 29
February 2012 35 487 35 832 101 786 173 105
Balance at 1
March 2012 35 487 35 832 101 786 173 105
Non controlling interest
share of Loss for
the six months
ended 31
August 2012 - (605) - (605)
Total comprehensive
loss for the six
months ended 31
August 2012 - - (5 189) (5 189)
Balance at 31
August 2012 35 487 35 227 96 598 167 312
COMMENTARY Financial and operational overview.
1. The directors present the interim consolidated financial results for the six months
ended 31 August 2012.
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 1 March 2012, 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 2011.
3. These results have been reviewed by the companys independent auditors RSM Betty &
Dickson (Johannesburg). Their unmodified review report is available for inspection
at the companys registered office during ordinary business hours.
4. Long term receivables are measured at amortised cost less accumulated impairment
losses.
5. New order mining rights for chrome at Rooderand are amortised over their expected
remaining useful life of 29 years.
6. Nature of business.
The company is involved in the exploration of mineral resources and the possible
beneficiation thereof.
7. GENERAL REVIEW OF OPERTATIONS.
During the six months under review, the company focused its attention on the following
important issues:-
- The proposed acquisition of a drill core and geological information from NKWE
Platinum relating to chrome and platinum group metals (PGM) reserves on the
Remainder Portion of Rooderand. Additionally, the proposed transaction includes
the effective consolidation of the mining rights for PGM on the Remainder Portion
with the groups existing new order mining right for chrome. The geological data
is expected to result in increased geological definition, resource categorisation
and hence valuation of the chromite deposit on the remainder portion of Rooderand.
The acquisition of the PGM mining rights will be effected through the conditional
abandonment of NKWE Platinums prospecting right for PGMs and base metals on the
Remainder Portion of Rooderand subject to the Minister of Mineral Resources granting
consent, in terms of section 102 of the Mineral and Petroleum Resources Development
Act, 2008 to amend the mining right held by Chrometco over the property to include
the additional minerals. Please refer to the SENS announcement issued on 13 August 2012
for detailed information on the terms of the transaction. Shareholders attention is also
drawn to the SENS announcement issued on 1 October 2012, in terms of which the notice of
general meeting and posting date of the related circular have been announced.
- Evaluation of alternatives relating to the Rooderand project
- Updating the mineral resources and reserves statement, Competent Persons Report and valuation
of Rooderand
- Conducting chrome mining operations, chrome sales and exploration work at Rooderand,
- Recovery of amounts owing to the company by DCM Chrome in terms of the mining and management
agreement; and
- Optimisation of the allocation of capital resources
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 commenced mining operations for its
own account on the Rooderand site and is in the process of selling existing chrome
stock resulting from mining operations. The group is in the process of acquiring PGM
interests on the Remainder Portion of Rooderand.
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. In the event that shareholders approve the proposed
acquisition of the geological drill data, drill core and abandonment of NKWE Platinums
prospecting right for PGM in favour of Chrometco, Mr. Richard Rossiter will be appointed
to the board of directors as a non-executive director. Mr. Rossiter is the executive
chairman of Realm Resources Limited (ASX listed) and is the non-executive chairman of
Sylvania Platinum Limited. A brief summary of Mr. Rossiters CV is contained in the
circular to shareholders (refer to the related SENS announcement issued on 1 October 2012).
10. DIVIDENDS
No dividend has been declared for the interim period.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
Directors: JG Scott (Chairman), PJ Cilliers (MD), CS Seabrooke (Non-executive),
E Bramley (Non-executive), IWS Collair (Non-executive), TW Scott (FD).
Company Secretary: CIS company Secretaries (Pty) Ltd
Registered Office:
70 Marshall Street
Johannesburg
2001
(P.O.Box 3787, Dainfern. 2055)
www.chrometco.co.za
Johannesburg
2 October 2012
Designated Advisor:
Sasfin Capital,
(A division of Sasfin Bank Limited)
Date: 02/10/2012 02:53:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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