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SENTULA MINING LIMITED - Update to the Disposal of the Megacube Assets and withdrawal of cautionary announcement

Release Date: 15/02/2013 15:00
Code(s): SNU     PDF:  
Wrap Text
Update to the Disposal of the Megacube Assets and withdrawal of cautionary announcement

SENTULA MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
(“Sentula” or “the Company”)


 UPDATE TO THE DISPOSAL OF THE MEGACUBE ASSETS AND WITHDRAWAL OF CAUTIONARY
                                ANNOUNCEMENT



1. DISPOSAL OF THE MEGACUBE ASSETS

  Shareholders are referred to the announcements released on SENS on 8 January 2013 and 18 January
  2013 and using the terms defined therein unless otherwise stated, are advised that the Circular is
  currently being finalised. It is intended that the Circular will be distributed to shareholders on or about
  18 February 2013.

  Furthermore, shareholders are advised that the commencement date of the Auction which was initially
  Wednesday, 20 March 2013, has since been postponed, in terms of clause 4.11.2 of the Addendum, to
  Wednesday, 27 March 2013.

2. PRO FORMA FINANCIAL EFFECTS
  The table below sets out the unaudited pro forma financial effects of the Disposal on Sentula’s basic
  earnings per share, headline earnings per share, net asset value per share and tangible net asset value
  per share.
  The unaudited pro forma financial effects have been prepared to illustrate the impact of the Disposal on
  the reported financial information of Sentula for the six months ended 30 September 2012, had the
  Disposal occurred on 1 April 2012 for statement of comprehensive income purposes and on
  30 September 2012 for statement of financial position purposes.
  The unaudited pro forma financial effects have been prepared using accounting policies that comply
  with IFRS and that are consistent with those applied in the audited results of Sentula for the 12 months
  ended 31 March 2012 as well as the reviewed results for the six months ended 30 September 2012.
  The unaudited pro forma financial effects which are the responsibility of the directors are provided for
  illustrative purposes only and, because of their pro forma nature may not fairly present Sentula’s
  financial position, changes in equity, results of operations or cash flow. The full financial effects will be
  included as Annexure 1 to the Circular.

                                                                                Unaudited
                                                                                pro forma
                                                            Before the           After the             %
                                                                      1                  2
                                                             Disposal           Disposal           Change
                                    3
  Basic earnings per share (cents)                                   7.3                0.1            (99)
                                      3
  Headline earnings per share (cents)                                8.5                1.3            (85)
                                    4
  Net asset value per share (cents)                                 431                423              (2)
                                             4
  Tangible net asset value per share (cents)                        354                346              (2)
  Weighted average number of shares in issue
                                                                581 005            581 005                 -
  (000’s)
  Total number of shares in issue (000’s)                       581 005            581 005                 -

  Notes:
  1. Extracted from the reviewed condensed consolidated interim results of Sentula for the six months ended
     30 September 2012.
  2. The “After the Disposal” column reflects the unaudited pro forma effects after the Disposal.
  3. Basic earnings and headline earnings per share effects are based on the following principal assumptions:
       •   The Disposal was effective 1 April 2012.
       •   The proceeds from the Disposal are assumed to equal the book value of the assets after the capitalisation
           of refurbishment costs.
       •   Auctioneer costs of R46.4 million, which are once off, are based on the assumed proceeds or the agreed
           fixed US dollar fee, converted at an assumed exchange rate of USD1 = R8.85.
       •   Interest is earned on the proceeds from the Disposal, net of Auctioneer and Transaction costs, at an
           average rate of 4.4% per annum.
       •   Transaction costs, which are once off, of R1.3 million.
  4. Net asset and tangible net asset value per share effects are based on the following principal assumptions:
       •   The Disposal was effective 30 September 2012.
       •   Refurbishment costs, of a maximum of US$3.85 million, are assumed to represent improvements to the
           assets and are capitalised to the carrying book value.
       •   The proceeds from the Disposal are assumed to equal the book value of the assets, after the capitalisation
           of the refurbishment costs.
       •   Auctioneer costs of R46.4 million, which are once off, are based on the assumed proceeds or the agreed
           fixed US dollar fee, converted at an assumed exchange rate of USD1 = R8.85.
       •   Transaction costs, which are once off, of R1.3 million.

3. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

  Further to the cautionary announcement released on SENS on 8 January 2013, shareholders are
  advised that as the pro forma financial effects of the Disposal have been disclosed in paragraph 2
  above, caution is no longer required to be exercised when dealing in the Company’s securities.


  Johannesburg
  15 February 2013


  Sponsor
  Merchantec Capital

  Legal advisors
  Cliffe Dekker Hofmeyr Inc.

  Auditors and reporting accountants
  PricewaterhouseCoopers Inc.

  IR Advisors
  College Hill

Date: 15/02/2013 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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