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Unaudited Interim Financial Results for the six months ended 31 August 2012
METMAR LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/007269/06)
Share code: MML ISIN code: ZAE000078747
("Metmar" or "the Company" or "the Group")
www.metmar.com
Unaudited Interim Financial Results for the six months ended 31 August 2012
Received settlement of long-outstanding amounts from both Ruukki and Kivu of R56,3 million and R27,6 million
Increased its stake in Kivu Resources to 32,4%
Raised capital of R99,4 million for investment projects
Condensed consolidated statements of financial position
Figures in R'000 Notes Unaudited Unaudited Audited
at at at
31 August 31 August 29 February
2012 2011 2012
Assets
Non-current
Property, plant and equipment 59 581 58 482 57 469
Goodwill and other intangible assets 153 680 60 554 155 090
Investment in associates 59 880 - 49 398
Other long-term financial assets 2 244 028 261 566 253 361
Non-current assets 517 169 380 602 515 318
Current
Inventories 302 386 266 828 339 696
Other short-term financial assets 2 113 328 79 477 85 307
Current tax receivable 894 - 8 860
Trade and other receivables 680 610 542 090 777 634
Cash and cash equivalents 4 151 686 40 627 88 313
Current assets 1 248 904 929 022 1 299 810
Non-current assets classified as held-for-sale 11 842 11 842 11 842
Total assets 1 777 915 1 321 466 1 826 970
Equity and liabilities
Capital and reserves 711 177 597 104 645 098
Non-current
Borrowings 64 679 10 270 69 406
Other liabilities 9 414 2 391 7 031
Deferred tax liabilities 56 494 11 822 53 183
Non-current liabilities 130 587 24 483 129 620
Current
Trade and other payables 3 802 906 611 276 991 605
Current tax liabilities - 12 077 5 483
Bank overdrafts 4 126 846 70 127 48 765
Current liabilities 929 752 693 480 1 045 853
Non-current liabilities held-for-sale 6 399 6 399 6 399
Total liabilities 1 066 738 724 362 1 181 872
Total equity and liabilities 1 777 915 1 321 466 1 826 970
Net asset value per share (cents) 266,05 256,88 277,53
Net tangible asset value per share (cents) 208,56 230,83 210,81
Number of shares in issue 267 306 552 232 440 480 232 440 480
Condensed consolidated statements of comprehensive income
Figures in R'000 Notes Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 29 February
2012 2011 2012
CONTINUING OPERATIONS
Revenue 1 028 984 1 306 414 2 644 545
Cost of sales (933 416) (1 199 294) (2 358 581)
Gross profit 95 568 107 120 285 964
Other income 5 13 069 19 901 41 599
Operating expenses 6 (96 079) (82 411) (219 672)
Operating profit 12 558 44 610 107 891
Finance income 13 455 4 575 28 741
Fair value adjustments 12 703 - 27 980
Income from equity-accounted investment 998 - 1 657
Finance costs 8 (32 529) (17 837) (58 122)
Profit before taxation 7 185 31 348 108 147
Taxation 9 (2 346) (14 136) (31 829)
Profit for the period 4 839 17 212 76 318
Other comprehensive income 524 (3 112) (14 499)
Deferred tax on movement in revaluations of investments in equity instruments - - (12 187)
Movement in foreign currency reserves 524 (3 112) (2 312)
Total comprehensive income for the period 5 363 14 100 61 819
Profit attributable to:
Owners of the parent 5 291 19 373 80 205
Non-controlling interests (452) (2 161) (3 887)
4 839 17 212 76 318
Total comprehensive income attributable to:
Owners of the parent 6 115 16 261 108 817
Non-controlling interests (752) (2 161) (46 998)
5 363 14 100 61 819
Earnings per share
Basic and diluted (cents) 2,2 8,3 34,5
Headline earnings per share (cents) 10 1,7 8,6 34,1
Condensed consolidated statements of changes in equity
Figures in R'000 Share Translation Re- Acquisition Retained Non- Total
capital reserve valuation of additional earnings controlling equity
and reserve shares in interests
premium subsidiary
Balance at 1 March 2011 60 636 5 768 - (5 704) 548 633 (761) 608 572
Total comprehensive income - (3 112) - - 19 373 (2 161) 14 100
for the period
Distribution to shareholders - - (25 568) - (25 568)
Balance at 31 August 2011 60 636 2 656 - (5 704) 542 438 (2 922) 597 104
Total comprehensive income - 1 630 30 094 - 60 832 (44 837) 47 719
for the period
Capital gain on revaluation of investment - - (4 800) - - - (4 800)
Realisation of capital gain on investment - - 4 800 - - - 4 800
Distribution to shareholders - - - - - (1 000) (1 000)
Purchase of additional non-controlling interest in subsidiaries - - - (21 843) - 533 (21 310)
Business combinations - - - - - 22 585 22 585
Balance at 29 February 2012 60 636 4 286 30 094 (27 547) 603 270 (25 641) 645 098
Issue of shares 99 368 - - - - 99 368
Total comprehensive income - 524 - 5 292 (752) 5 064
for the period
Distribution to shareholders - - - (38 353) - (38 353)
Purchase of additional non-controlling interest in subsidiary - - - (1 989) - 1 989 -
Balance at 31 August 2012 160 004 4 810 30 094 (29 536) 570 209 (24 404) 711 177
Condensed consolidated statements of cash flows
Figures in R'000 Notes Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 28 February
2012 2011 2012
Net cash (utilised in)/generated from operating activities
Cash (utilised in)/generated from operations 11 (44 254) 44 206 129 574
Net finance costs (19 074) (13 262) (29 381)
Taxation paid (6 888) (11 306) (45 918)
Net cash (utilised in)/generated from operating activities (70 216) 19 638 54 275
Net cash utilised in investing activities
Net expenditure on property, plant and equipment (1 652) (3 916) (9 437)
Business combinations - - (60 428)
Purchase of further stake in subsidiary - - (3 700)
Net movement in financial assets (1 511) (7 302) (5 288)
Net cash utilised in investing activities (3 163) (11 218) (78 853)
Net cash generated from/(utilised in) financing activities
Proceeds from share issue 99 368 - -
Net movement in financial liabilities 2 383 (3 928) -
Net movement in borrowings (4 727) (56 811) 41 307
Distributions to shareholders (38 353) (25 568) (25 568)
Net cash generated from/(utilised in) financing activities 58 671 (86 307) 15 739
Total cash movement for the period (14 708) (77 887) (8 839)
Cash and cash equivalents at the beginning of the period 39 548 48 387 48 387
Cash and cash equivalents at end of the period 4 24 840 (29 500) 39 548
Segment report
Unaudited six months to 31 August 2012 Unaudited six months to 31 August 2011
Trading Investment Adjust- Total Trading Investment Adjust- Total
ments and ments and
eliminations eliminations
Segment revenues 1 022 474 58 278 (51 768) 1 028 984 1 323 764 75 805 (93 155) 1 306 414
Net finance costs (11 008) (8 092) 26 (19 074) (12 181) (2 010) 929 (13 262)
Depreciation and amortisation of non-financial assets (2 396) (1 248) - (3 644) (2 122) (733) - (2 855)
1 009 070 48 938 (51 742) 1 006 266 1 309 461 73 062 (92 226) 1 290 297
The totals presented for the Group's operating segments reconcile
to the entity's key financial results as presented:
Segment revenues 1 022 474 58 278 (183 019) 897 733 1 323 764 75 805 (93 155) 1 306 414
Other income 28 133 16 281 (31 345) 13 069 16 516 1 566 1 819 19 901
1 050 607 74 559 (214 364) 910 802 1 340 280 77 371 (91 336) 1 326 315
Segment profit/(loss)
Segment operating profit 22 525 547 (10 514) 12 558 52 515 659 (8 564) 44 610
Fair value adjustments 12 195 (444) 952 12 703 179 - (179) -
Net finance costs (11 008) (8 092) 26 (19 074) (12 181) (2 010) 929 (13 262)
Income from equity-accounted investment - 998 - 998 - - - -
Profit before taxation 23 712 (6 991) (9 536) 7 185 40 513 (1 351) (7 814) 31 348
Taxation (1 438) (908) - (2 346) (10 616) (951) (2 569) (14 136)
Profit for the period 22 274 (7 899) (9 536) 4 839 29 897 (2 302) (10 383) 17 212
Segment assets 1 191 042 807 688 (220 815) 1 777 915 1 064 122 481 170 (223 826) 1 321 466
Segment liabilities 799 531 837 207 (570 000) 1 066 738 712 063 494 543 (482 244) 724 362
Segment report
Audited year to 29 February 2012
Trading Investment Adjust- Total
ments and
eliminations
Segment revenues 2 632 798 253 157 (241 410) 2 644 545
Net finance costs (8 435) (5 652) (15 924) (30 011)
Depreciation and amortisation of non-financial assets (4 558) (2 035) 147 (6 446)
2 619 805 245 470 (257 187) 2 608 088
The totals presented for the Group's operating segments reconcile
to the entity's key financial results as presented:
Segment revenues 2 632 798 253 157 (241 410) 2 644 545
Other income 31 856 17 754 (8 011) 41 599
2 664 654 270 911 (249 421) 2 686 144
Segment profit/(loss)
Segment operating profit 88 476 21 124 (1 709) 107 891
Fair value adjustments 179 27 801 - 27 980
Net finance costs (8 435) (5 654) (15 292) (29 381)
Income from equity-accounted investment - 1 657 - 1 657
Profit before taxation 80 220 44 928 (17 001) 108 147
Taxation (22 461) (13 366) 3 998 (31 829)
Profit for the period 57 759 31 562 (13 003) 76 318
Segment assets 1 240 111 820 271 (233 412) 1 826 970
Segment liabilities 856 987 802 430 (477 545) 1 181 872
COMMENTARY
Background
The depressed economic global situation which prevailed throughout the reporting period adversely affected Metmar's businesses, particularly the
decline in many commodity prices. While the depressed prices contributed to the decline in revenue, it should be noted that despite these tough trading
conditions greater volumes of commodities were traded.
Financial performance
Gross revenue decreased by 21,0% to R1,03 billion (2011: R1,3 billion) due to lower commodity prices. The gross margin increased to 9,3% (2011:
8,2%) but the gross profit reduced by 10,7% to R95,6 million (2011: R107,1 million).
Operating profit of R12,6 million (2011: R44,6 million) declined by 71,8%. The major causes of the decrease were an "unrealised" loss on foreign
exchange differences of R23,6 million (2011: unrealised profit of R11,6 million), increases in consulting expenses, lease charges and remuneration costs.
The group profit of R4,8 million is 71,9% lower than the R17,2 million achieved in the comparative period which is in line with the decrease in
operating profit.
The weighted average number of shares in issue increased following the capital raising on 2 July 2012 and this, together with the lower after-tax
profit, resulted in headline earnings per share of 1,7 cents (2011: 8,6 cents) being 80% below the previous period.
The cash outflow utilised in operations amounted to R43,7 million mainly due to increase in working capital. The financial position of the Group
remains strong since net asset value per share has increased to 266,05 cents (2011: 256,9 cents).
Corporate matters
Capital raising
During the period the company raised R99,4 million cash by issuing 34 866 072 shares at a price of R2,85 per ordinary share. On the date of the
transaction the issue price represented an 8% premium to Metmar's 30 day volume weighted average share price of R2,64.
The purpose of the share issue was to further capitalise Metmar Investments and Resources Proprietary Limited (MIR), to enable it to fund investment
projects and reduce debt. The company subscribed for an additional 637 shares in MIR for R637 and injected R99 367 668 as a shareholder's loan. A
portion of the cash was used to pay for the share issue expenses and fund the purchase of a further stake in Kivu Resources Limited (Kivu). The bulk of
the cash remains in an interest-yielding call account pending conclusion of investment projects currently being negotiated.
Cooperation agreement
The company and Wasat Investments Proprietary Limited signed a cooperation and co-investment agreement which enables both parties to share in and
combine forces with regard to each party's investment opportunities. The company has also signed an ad hoc services agreement with Beacon Rock Corporate
Services Proprietary Limited which will enable Metmar to access exploration, technical and mining skills.
Operational performance
In line with group structure, the operational performance is separately presented below for Metmar Trading Proprietary Limited (Metmar Trading) and
MIR. Metmar Polychem is a significant division of Metmar Trading capable of being reported separately, hence a commentary on its performance is also
given below.
Metmar Trading
Revenue of R729,8 million (2011: R1,1 billion) was lower than last year despite higher volumes and a weaker exchange rate in the six month period
ended 31 August 2012. Subdued commodity prices were the primary cause for the lower gross revenue. Trading margins were satisfactory but operating
expenses increased to R67,9 million (2011: R48,2 million) due to the requirements to recognise movements in "unrealised" loss on foreign exchange
differences of R22,1 million (2011: R1,6 million). Operating profit of R0,4 million (2011: 27,1 million) was higher than the previous period.
Finance charges of R14,4 million (2011: R9,7 million) reduced profit before tax to R8,3 million (2011: R24,3 million). After-tax profit increased to
R11,2 million (2011: R17,3 million) due to non-taxable income relating to a fair value adjustment of the Alphamin Limited shares (Canada)(Alphamin shares).
Metmar Polychem
Metmar Polychem volumes were higher than the corresponding period. Gross revenue improved significantly to R292,7 million (2011: R211,6 million) and
gross margin was the same as in the previous period at 9,9%. Operating profit was R22,1 million (2011: R22,4 million). Finance charges were higher at
R8,4 million (2011: R5,5 million) resulting from business growth that required additional financing facilities. Metmar Polychem achieved a profit of
R11,1 million (2011: R9,4 million).
Metmar Investments and Resources (MIR)
MIR achieved gross revenue of R58,3 million (2011: R81,8 million), gross margin of 19,1% and operating profit of R1,7 million (2011: operating loss
of R4,9 million). Net finance charges of R8,1 million and a tax of R0,9 million resulted in a loss for the period of R7,9 million (2011: R5,9
million).
Metmar Limited incurred an operating loss of R9 million.
Investment projects
Considerable time was spent analysing the current mix of investments in our portfolio. Certain investments are considered non-core, and when the
right opportunity arises they will be disposed of. Going forward Metmar's main drive will be to maximise returns from its core investments.
- Metmar Industrial Proprietary Limited (Metmar Industrial) is active both locally and in Zimbabwe, participating in projects involving the recovery
of slurry coal, recycling of waste, and re-screening of Zimbabwean coke stockpiles. Close to 150 000 tons of coke material has already been exported
from Zimbabwe and currently stockpiled in Pretoria. Approximately 30% of this material has been paid for and is pending delivery to the customers.
- Kivu's main activity is mining of tin and tantalum in Rwanda. These mining assets are the biggest tenements in Rwanda and are held in a joint
venture with the government of Rwanda (GOR). Kivu owns over 80% of this project on a "farm-in" basis and GOR will ultimately remain with an undilutable
10% interest. During the period Metmar invested US$3 million by taking up its rights and additional shares from non-participating shareholders to
increase its shareholding to 32,4% in Kivu. Other participating shareholders contributed US$3,3 million. Production has been on a small scale because of
primitive mining methods and the reliance on artisanal miners. The US$6,3 million investment is being used to procure mining equipment to mechanise the
mine to enable it to be a large-scale mining company, moving production from a current six tons per month to producing in excess 150 tons per month
within the next 12 to 24 months. The low-cost mine is modelled to break even at a monthly production of just over 10 tons and is expected to achieve 30
tons per month from as early as March 2013. Metmar is currently finalising an amended marketing agreement for this high value ore.
During the period, Kivu exchanged the remaining 10% stake in DRC asset for Alphamin shares. Kivu received 10 million Alphamin shares and Metmar was
allocated five million of these which is a higher proportion than its shareholding in Kivu. This was done to settle the long outstanding trade debtor
position held by Metmar in Kivu. In total Metmar now holds 9 802 866 shares in Alphamin and further purchased 77 740 warrants. Metmar thus owns a
9,9% stake in Alphamin with a value of R54,5 million at 31 August 2012. During the period, Alphamin released drilling results that show high-grade
mineralisation at open cast mining depths. Further drilling is planned to corroborate and consolidate the resource prior to arriving at a decision to mine.
Alphamin has recruited the necessary skills and expertise to carry out the exploration programme.
- During the reporting period, Tufflex Plastic Products Proprietary Limited (Tufflex) commissioned a new plant, purchased at the end of the last
financial year, which has enabled it to increase production. With gross revenue of R16 million and a gross margin of 32%, Tufflex has produced sound
results which are expected to improve in the second half of the year when the plant operates at full capacity. Tufflex production is marketed by the West
African Group, a division of Metmar Polychem. Although Tufflex struggles with sourcing good quality recycled polymers, the new plant is capable of
processing a wide range of polymer products.
- Metmar Speciality Metals Proprietary Limited (MSM) owns vanadium slag stockpiles. During the period the slag was jigged, sorted and prepared for
sale. Minimal quantities were sold during the period and negotiations are at an advanced stage to commence selling this material during the current
financial year. Metmar has a full off-take agreement on all material stockpiled at MSM.
- Kalagadi Manganese Proprietary Limited (Kalagadi) is well advanced in developing its manganese mine in the Northern Cape. A significant part of the mine
infrastructure has already been installed.
The sinter plant is currently being cold commissioned with hot commissioning anticipated in 2012, depending on the speed with which Eskom can install
the required electricity supplies. Metmar is strategically positioned to derive value from the commissioning of this manganese project.
- Pering Base Metals Proprietary Limited (Pering) owns a zinc and lead resource in the North West province. During the period, management evaluated
various methods of funding to establish a mine but no funding mechanism has yet been finalised.
- SA Metals Equity Proprietary Limited's objective is to build a plant to extract pig iron from vanadium calcine dumps. Metmar Trading has the
marketing rights for this project. The National Empowerment Fund, which is a shareholder in the project, has provided funding to enable the project to
complete all feasibility studies. During the period, focus was on securing a suitable property on which to locate the project. Product samples were
delivered to laboratories in Australia and South Africa to be tested for appropriate technology.
- Metmar Mauritius Limited holds 51% in Metmar Africa Limited which in turn holds 15% of Zimbabwe Alloys Chrome Limited (ZAC). ZAC is incorporated
in Zimbabwe and complies with Zimbabwe's indigenisation laws and mining regulations. Metmar Trading has secured 50% of the marketing rights for the
chrome ore, concentrated chrome ore and ferrochrome alloy produced. Zimbabwe imposed a ban on exports of chrome ore and concentrate last year, under
which only ferrochrome alloy exports were allowed. ZAC is raising funds to refurbish its furnaces which will be used to produce about 80 000 tons per
annum of high-carbon ferrochrome. A process of verification and confirmation of chrome reserves has commenced. During the period, Metmar introduced
various potential funders to ZAC which are currently completing their due diligence studies on the project.
- MIR owns 100% of Eastern Belt Chrome Mines Proprietary Limited (EBCM). EBCM owns 51% of Steelpoort Chrome Mines Proprietary Limited (Goudmyn) and
49,9% of Bolepu Holdings Proprietary Limited (Bolepu). Bolepu in turn owns 40% of Sefateng Chrome Proprietary Limited (Sefateng). In addition to the
200 000 tons secured from Sefateng's Zwartkoppies mine, Metmar Trading secured a further off-take for 300 000 metric tons of chrome ore from Sefateng's
Waterkop mine. Currently Sefateng supplies 15 000 to 20 000 metric tons of chrome ore per month to Metmar Trading. Metmar Trading also acquired the
entire off-take for all chrome ore from mining operations at Goudmyn. Bolepu has offered to purchase a further 35% in Sefateng to take control of all
Sefateng mines.
Post-balance sheet event
On 10 October 2012, Metmar and the vendors signed an agreement with Ruukki Group to settle an outstanding amount of R600 million from the R2 billion
purchase consideration of the Purchase and Sale agreement signed by the vendors three years ago to sell Mogale Alloys. Metmar's share at the end of the
period was R57,4 million. From the settlement, on 10 October 2012 Metmar was to receive cash of R26,4 million and 5,2 million shares at 0,50 cents
in Ruukki Group PLC valued at R29,9 million on 10 October 2012. The cash of R26,4 million was received on 19 October 2012 and the issue of shares is
subject to exchange control approval by the South African Reserve Bank.
Dividend
Metmar's policy is to declare one dividend per annum after the end of the financial year, depending on available surplus cash following allocation
to capital expenditure programme and working capital.
Future prospects
The remainder of the year is likely to remain volatile, continuing to make conditions difficult for all Metmar's businesses. Currently, however,
even at lower commodity prices, demand for products in which Metmar trades remains strong. The mining and logistics strikes in South Africa have to date
had minimal impact on Metmar's activities. The weakening rand/dollar exchange rate will be beneficial.
Notes to the unaudited interim financial results
1. Basis of preparation
The unaudited consolidated interim financial results have been prepared in accordance with, and containing the information required by IAS 34
Interim Financial Reporting, International Financial Reporting Standards (IFRS), the AC 500 standards as issued by the Accounting Practices Board
or its successor, the South African Companies Act, No 71 of 2008, and the JSE Listings Requirements.
The principal accounting policies used in the preparation of the financial results for the period ended 31 August 2012 are consistent with those
applied for the year ended 29 February 2012.
Figures in R'000 Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 29 February
2012 2011 2012
2. Other financial assets
Other long-term financial assets
Kalahari Resources Proprietary Limited 108 800 20 000 108 800
Kivu Resources Limited - 11 583 9 333
SA Metals Equity Proprietary Limited 28 500 8 000 28 500
Zimbabwe Alloys Chrome (Private) Limited 46 728 133 779 46 728
Pering Base Metals Proprietary Limited 60 000 80 000 60 000
Eastern Belt Chrome Mines Proprietary Limited - 8 204 -
244 028 261 566 253 361
Other short-term financial assets
Deferred payment consideration PGR17 Investments Proprietary Limited 57 402 72 591 57 402
Alphamin shares 54 185 - -
9 806 866 shares of CAD$0,65 each
Alphamin shares - - 11 877
2 069 606 "put and call" options of CAD$0,76 each
Alphamin shares 381 - 342
77 740 purchased options of CAD$0,65 each
Alphamin shares - - 15 686
2 733 260 shares of CAD$0,76 each
Investment in FTP Mineral Terminal LDA 1 360 - -
Other - 6 886 -
113 328 79 477 85 307
3. Trade and other payables
Trade and other payables 309 583 345 842 425 206
Trade finance facilities* 462 997 265 434 526 257
Deferred purchase considerations 30 326 - 40 142
802 906 611 276 991 605
* Trade finance facilities are accounted for separately.
4. Cash and cash equivalents
Cash and cash equivalents 151 686 40 627 88 313
Less: Bank overdrafts (126 846) (70 127) (48 765)
24 840 (29 500) 39 548
5. Other income
Includes:
Gain on disposal of associate - - 4 800
Profit on foreign exchange* - 12 874 16 601
Commission received 7 534 5 501 18 133
Gain on disposal of property, plant and equipment 2 210 - -
Other 3 325 1 526 2 065
13 069 19 901 41 599
* Refer note 7.
6. Operating expenses
Operating expenses for the period are stated after accounting for:
Commission paid 14 227 13 809 56 978
Consulting and professional fees 3 851 1 460 4 664
Employee costs 25 061 22 337 68 506
Legal fees 1 991 2 011 4 479
Operating lease charges 3 488 1 651 3 199
Repairs and maintenance 2 895 3 371 7 164
Impairments - - 36 197
Loss on foreign exchange* 9 410 - -
Other 35 156 37 772 38 485
96 079 82 411 219 672
* Refer note 7.
7. Loss/(profit) on foreign exchange
Unrealised profit on foreign exchange reversed - prior period 25 258 5 798 13 609
Unrealised profit on foreign exchange - current period (1 683) (13 609) (25 258)
Realised profit on foreign exchange (14 165) (5 063) (4 952)
9 410 (12 874) (16 601)
8. Finance costs
Includes:
Contract interest 14 127 8 088 17 587
Bank overdrafts 10 870 4 091 9 610
Financing effect on purchases and trade and other payables 6 061 5 658 17 888
Discounting on deferred payments 1 471 - 13 037
32 529 17 837 58 122
9. Taxation
Normal taxation 7 728 11 485 33 700
Secondary taxation on companies - 3 057 -
Deferred taxation (5 382) (406) (1 871)
2 346 14 136 31 829
10. Reconciliation of headline earnings
Profit for the period 5 291 19 373 80 205
Adjustments for:
- (gain)/loss on disposal of property, plant and equipment (1 591) 46 (27)
- Capital gain on disposal on investment - - (4 800)
- impairments - - 3 785
- fair value adjustments 496 610 -
Headline earnings 4 196 20 029 79 163
Headline earnings per share (cents) 1,7 8,6 34,1
Weighted average number of shares in issue* 243 871 979 232 440 480 232 440 480
Weighted number of shares in issue 243 871 979
- at 1 March 2012 232 440 480
- new issue 2 July 2012 (34 866 072 shares 60/183 days) 11 431 499
* Weighted average number of shares is equal to the number of shares in issue at 31 August 2011 and 29 February 2012.
11. Cash (utilised in)/generated from operations
Profit before taxation 7 185 31 348 108 147
Adjustments for:
- Non-cash items (10 713) 163 (33 240)
- Net finance costs 19 074 13 262 29 381
Changes in working capital:
- Inventories 37 310 3 028 (69 840)
- Trade and other receivables 91 589 (11 022) (229 418)
- Trade and other payables (188 699) 7 427 324 544
(44 254) 44 206 129 574
12. Segment report
In identifying its operating segments, management generally distinguishes investment in resource-based operations from the trading activities of the Group.
The following factors have been used to identify reportable segments of the Group:
- Distinction between the investment and trading activities.
- Investments segment includes investment in equity, property, plant and equipment.
- Trading segment relates to the traditional core trading activities of the Group together with the resource-based activities emanating from off-take agreements
and arrangements in place as a result of investment in equity, property, plant and equipment.
There has been no aggregation of the two segments identified as:
> investments; and
> trading.
(See segment report below)
13. Corporate governance
The Metmar Group complies with the Code of Good Corporate Practice and Conduct published in the King III report on Corporate Governance.
14. Related party transactions
During the period, the Company and its subsidiaries, in the ordinary course of business, entered into various transactions with their associates. These transactions
were subject to terms that are no less favourable than those arranged with third parties.
CB Brayshaw DJ Ellwood
Chairman Chief Executive Officer
24 October 2012
Directors: CB Brayshaw* (Chairman), DJ Ellwood (Chief Executive Officer), D Earp*, PP Boshoff, GP Lotis,
D Mashile-Nkosi*, SMS Nkosi (Chief Financial Officer), L Matteucci* *Non-executive
Company Secretary: MRD Boyns (British)
Registered office: 24 Sloane Street, Bryanston, 2191 (PO Box 98549, Sloane Park, 2152)
Transfer Secretaries: Computershare Investor Services Proprietary Limited (PO Box 61051, Marshalltown, 2107)
Sponsor: One Capital
Auditors: Grant Thornton
These results may be viewed on the internet on http://www.metmarlimited.com
Date: 24/10/2012 05:24:00 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
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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,
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