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SENTULA MINING LIMITED - Reviewed Condensed Consolidated Interim Results for the six months period ended 30 September 2013

Release Date: 14/11/2013 07:05
Code(s): SNU     PDF:  
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Reviewed Condensed Consolidated Interim Results for the six months period ended 30 September 2013

SENTULA MINING LIMITED
Incorporated in the Republic of South Africa       
(Registration number 1992/001973/06)
Share code: SNU       
ISIN: ZAE000107223       
(Sentula or the Company or the Group)
REVIEWED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2013

+35%
Headline EPS
increased to 11.5 cents
(2012: 8,5 cents)

-19%
Revenue decreased 
to R951 million
(2012: R1 175 million)

COMMENTARY
The stabilisation of the earnings from Sentulas earthmoving entities has remained an area of key focus during the
period under review. The initiatives embarked upon in these entities, along with the rightsizing of its exploration
business, will position the Company to benefit from the next commodity cycle upswing. The restructuring of the Group debt and
the progress made towards the disposal of the Groups coal assets has improved Sentulas sustainability in the medium
term.- Robin Berry, CEO - Sentula Mining Limited.

FINANCIAL REVIEW*
- Revenue decreased by 19% to R951 million                       (2012: R1 175 million)
- Headline earnings per share increased to 11.5 cents            (2012: 8.5 cents)
- Net asset value per share : 226 cents                          (March 2013: 265 cents)
- Tangible net asset value per share: 220 cents                  (March 2013: 252 cents)
- Debt to equity gearing ratio decreased to 26%                  (March 2013: 32%)
*The movements have been based on prior period restated results

The Groups earnings for the six-month period were adversely impacted by the following:
- An impairment of R273 million (net of tax) on mineral rights held-for-sale; 
- A provision of slow-moving inventory (BE1260 dragline) in Benicon Sales of R40 million, on a pre-tax basis;
- The on-going depressed exploration drilling cycle; and
- The below expectation performances from the Groups open-cast operations;

Results were positively impacted by the following:
- Excellent operational performance from Ritchie Crane Hire; and
- A recovery of R30m from the funds misappropriated in the 2008 financial year. 

OPERATIONAL REVIEW
Sustainability
Safety track record
The Group-led safety initiatives and activity specific protocols have continued to reduce the risk of injury and
exposure to the staff employed across its varied operations. For the period under review, Sentula recorded three lost time
injuries, resulting in a Classified Injury Frequency Rate of 0,74 per million man hours worked. This is a marginal
improvement on the comparative prior period (0,75 per million man hours worked). Sentula continues to work closely with its
clients as it strives towards the goal of zero harm.

Transformation
Sentula remains an independently re-verified level 5 contributor, in terms of the DTI codes measuring Broad-Based
Black Economic Empowerment (B-BBEE), as at November 2013. The Group continues to drive all the components of the B-BBEE
scorecard.

Environment
Sentula Group companies have, during the period under review, continued to meet the objectives, with respect to the
International Standards Organisation accreditation, of their safety, environmental and training systems.

Mining services
The provision of mining services remains the core of Sentulas business, with the four operating divisions and the
five underlying continuing businesses. The Group continues to focus on the participation in quality contracts that add to
the sustainability of the mining services business and as such has not renewed marginal contracts during the period.

Continuing opencast mining services
Opencast mining
The period under review has been characterised by stable demand, but ongoing exacting trading conditions, as margins
remained under pressure across the opencast mining contracting sector.

Following a tough second half to the previous financial year, Benicon managed to stabilise its operations, during the
period under review, through consolidation, the closure of three pits and focussing on its medium and longer term
prospects. Despite a slow start, CCT recovered during the latter part of the period, with the ramp-up of the Samancor Spitskop
open pit operation.

In line with the strategy to consolidate the operations of CCT into Benicon, the total operations of the Spitskop pit
have now been incorporated into Benicon. The remaining operations of CCT will be incorporated into Benicon during the
remainder of the current financial year.

Overburden drilling and blasting
JEF Drill and Blast experienced a drop in its revenue and profit base during the period, following the sudden loss of
the Tharissa contract but remains positioned to deliver sustainable earnings, at current margins, as it continues to
diversify its commodity and geographic exposure.

Exploration drilling
The downturn in the platinum group metals sector had a significantly negative impact on Geosearchs South African
operations and necessitated the downscaling and restructuring of these operations, during 2012. Negative sentiment and
project delays, with respect to coal investments in Mozambique also resulted in a further reduction in earnings and a scaling
back of the Aguaterra operations, during the period under review. More recently, Geosearch has also seen a reduction in
the visibility of gold exploration activity, across its East, Central and West African operations. This has
necessitated a further restructuring of its international operations, which currently contribute some 90% of Geosearchs earnings.

Crane hire
Ritchie Crane Hire sustained its performance during the period and maintained its level of profitability, on a
comparative basis. The results from this entity continue to be supported by its mix of cranes, strong competitive position in
the Emalahleni/Middelburg geographical area, and diversity of clientele in coal mining, steel and power generation
industries. The Group continues to invest in capacity to grow this business.

Coal mining investments
In line with the strategy to crystalise the value associated with its diversified portfolio of coal assets, the Group
has continued to drive the process of assessing opportunities to achieve this, through the outright disposal of its
interests in these assets. Notwithstanding the commitment to assess an opportunity that may arise on any of the Group
assets, Sentula continues to focus its efforts on the disposal of the three key interests in the Schoongezicht prospecting
license and the Nkomati operations and Bankfontein mining right. To this end, a deal on the Schoongezicht property has been
concluded and a section 11 transfer has been received with the Department of Mineral Resources. Processes to deal with
the remaining two assets are well advanced.

PROGRESS ON LEGAL MATTERS
As announced on SENS on 5 April 2013, a settlement agreement was concluded, with Casper Scharrighuisens, spouse,
Clasina Scharrighuisen, the Marinvia Trust and the CIMS Trust, following which an amount of R40,0 million was received in
April 2013 by the liquidators of Scharrighuisens estate, in full and final settlement of all claims against these
entities. Of the R40,0 million, R24,4 million was paid to Megacube in April 2013 and a further R10,0 million was received in
mid-September 2013.

The settlement agreement does not affect the civil judgments of R383,0 million against Casper Scharrighuisen which
judgments remain unsatisfied.  With the granting of the final sequestration order against Scharrighuisen, and the
conclusion of the settlement agreement, the Companys legal and forensic fees should reduce materially in the future.

The criminal actions against Scharrighuisen and Jason Holland, as a consequence of the misappropriation of funds from
Megacube during the 2008 financial year, are in the hands of the National Prosecuting Authority and the Company will
assist in these matters, to the extent required.

STRATEGIC REVIEW
The Groups strategic intent remains one of providing a platform for growth by being recognised as a focused mining
services provider, with the ability to contract across the African continent. Despite on-going volatility across the full
spectrum of minerals sectors and the limited visibility of exploration work, in the short term, the Groups firm
intention remains one of focusing on the value drivers in its diversified service business offerings. 
To this end, a three pronged strategy has been developed to:
- consolidate the operations of its opencast mining businesses, Benicon and CCT and to extract operational
  efficiencies therefrom; 
- invest in opportunities and capacity to grow the solid drilling and blasting and mobile crane hire businesses, and 
- maintain, through prudent restructuring, the Groups exploration hubs, in order to take advantage of expected
  growth in the mineral exploration sector, following a recovery.

The strategy is further enhanced through the finalisation of the disposal of the Groups stakes in various propriety
coal investments, for which plans for the key assets have already been implemented. 
Sentulas exposure to the coal and energy sector, coupled with its diversified service offering, client base, mineral
exposure and geographical spread should continue to provide a solid base for the development of the business into the
future.

DIVIDENDS
The Board of directors has decided not to declare an interim dividend for the period under review.

DIRECTORATE
There were no changes to the Board during the period under review.

On behalf of the Board
Jonathan Best                     Robin Berry                        Woodmead
Non-executive Chairman            Chief Executive Officer            12 November 2013


Comparative periods have been restated due to a change in an accounting standard and discontinuing operations as
disclosed in note 3 below.


  Condensed consolidated statement of financial position                                                                               
  at 30 September 2013                                                         Restated     Restated   
                                                                 Reviewed      Reviewed      Audited   
                                                                September     September        March   
  R000                                                              2013          2012         2013   
  ASSETS                                                                                               
  Total non-current assets                                      1 168 497     1 824 019    1 300 281   
  Property, plant and equipment                                 1 097 664     1 415 521    1 188 556   
  Intangible assets                                                 2 692         7 404        3 366   
  Investment in equity-accounted joint venture                          -           367            -   
  Goodwill                                                         37 426       372 691       72 563   
  Deferred tax                                                     30 715        28 036       35 796   
  Total current assets                                            652 321       947 328      838 068   
  Inventories                                                     130 489       321 201      175 643   
  Trade and other receivables                                     425 211       496 135      534 679   
  Cash and cash equivalents                                        95 683       123 543      109 704   
  Current tax receivable                                              938         6 449       18 042   
  Assets classified as held-for-sale                              280 930       980 301      650 534   
  TOTAL ASSETS                                                  2 101 748     3 751 648    2 788 883   
  Equity and liabilities                                                                               
  Total equity attributable to equity holders                          
  of the Company                                                1 315 852     2 397 695    1 537 238   
  Share capital and premium                                     1 994 406     1 994 406    1 994 406   
  Reserves                                                        135 369        53 772      108 127   
  Retained (losses)/earnings                                     (813 923)      349 517     (565 295)  
  Non-controlling interest                                        (85 746)       46 883       32 742   
  Total equity                                                  1 230 106     2 444 578    1 569 980   
  Liabilities                                                                                          
  Total non-current liabilities                                   259 929       622 451      109 733   
  Loans and borrowings                                            149 649       429 405            -   
  Finance lease obligations                                         2 518             -        3 371   
  Deferred tax                                                    107 762       193 046      106 362   
  Total current liabilities                                       526 704       501 894      925 721   
  Trade and other payables                                        216 973       260 744      281 222   
  Loans and borrowings                                            262 923       235 643      543 744   
  Finance lease obligations                                         2 325             -        2 129   
  Bank overdraft                                                        -             -       58 062   
  Taxation payable                                                 44 483         5 507       40 564   
  Total liabilities held-for-sale                                  85 009       182 725      183 450   
  Total liabilities                                               871 642     1 307 070    1 218 904   
  TOTAL EQUITY AND LIABILITIES                                  2 101 748     3 751 648    2 788 884   
  Net asset value per share (excluding treasury shares)         226 cents     413 cents    265 cents   
  Tangible net asset value per share (excluding goodwill-                    
  excluding treasury shares)                                    220 cents     347 cents    252 cents   


  Condensed consolidated income statement                                                                                                    
  for the six months ended 30 September 2013                                   Restated     Restated   
                                                                 Reviewed      Reviewed      Audited   
                                                                September     September        March   
  R000                                                              2013          2012         2013   
  Revenue                                                         950 665     1 174 803    2 084 118   
  Results from operations                                          34 181       100 945     (198 435)  
  Recovery of unaccounted funds                                    30 000             -            -   
  Results from operating acitivities                                       
  pre-impairments and inventory write-off                          64 181       100 945     (198 435)  
  Provision for slow moving/obsolete inventory                    (40 527)            -     (133 783)  
  Impairment of plant and equipment                                     -             -     (186 902)  
  Impairment of assets held-for-sale                               (5 774)            -      (15 149)  
  Impairment of goodwill                                          (35 138)            -     (300 127)  
  Impairment of intangible assets                                       -             -       (9 162)  
  Results from operating activities                               (17 258)      100 945     (843 558)  
  Net finance charges                                             (25 379)      (31 690)     (57 972)  
  Fair value adjustment on interest rate cap                           38        (2 011)      (2 486)  
  (Loss)/profit before taxation                                   (42 599)       67 244     (904 016)  
  Taxation                                                        (38 403)      (31 256)      31 187   
  (Loss)/profit for the period from continuing operations         (81 002)       35 988     (872 829)  
  Discontinued operations                                                                              
  Loss for the year from discontinued operations                           
  (attributable to the owners of the parent)                     (286 114)       (6 673)     (14 846)  
  Total comprehensive (loss)/income for the period               (367 116)       29 315     (887 675)  
  (Loss)/profit attributable to:                                 (367 116)       29 315     (887 675)  
  Equity holders of the Company                                  (248 628)       42 306     (862 686)  
  Non-controlling interest                                       (118 488)      (12 991)     (24 989)  
  Basic and diluted (loss)/earnings per share (cents)               (42,8)          7,3       (148,5)  
  Shares in issue at end of the period excluding treasury                  
  shares ('000)                                                   581 005       581 005      581 005   


  Condensed consolidated statement of comprehensive income                                                         
  for the six months ended 30 September 2013                                   Restated     Restated   
                                                                 Reviewed      Reviewed      Audited   
                                                                September     September        March   
  R000                                                              2013          2012         2013   
  (Loss)/profit for the period                                   (367 116)       29 315     (887 675)  
  Other comprehensive income                                                                           
  Foreign currency translation differences for                                            
  foreign operations                                               27 242        25 075       67 190   
  Other comprehensive income for the period, net                                          
  of income tax                                                    27 242        25 075       67 190   
  Total comprehensive (loss)/income for the period               (339 874)       54 390     (820 485)  
  Attributable to:                                                                                     
  Equity holders of the Company                                  (221 386)       67 381     (795 496)  
  Non-controlling interest                                       (118 488)      (12 991      (24 989)  
                                                                                                                   
																												   
 Information about reportable segments                                                                                                                                                  
 The Group is organised in four major operating segments, namely opencast mining services, exploration drilling, 
 crane hire and coal mining. Megacube is disclosed under the "Opencast mining services" as a discontinuing business
 operation as it is in the process of being wound down. Benicon, CCT and JEF are included in the continuing opencast
 mining services. Benicon Coal, Nkomati and Benicon Mining are included in the Discontinuing coal mining operations 
 as they are currently held-for-sale. Equipment trading spares and engineering is included in "Other". Segment 
 performance is measured based on the segment profit before interest and income tax. Inter-segment revenue is priced
 on an arms length basis.                                                                                                                                   
                                                          Continuing opencast                Opencast mining    Exploration    
  R000                                                       mining services    Megacube           services       drilling    
  Reviewed six months ended 30 September 2013                                                                                  
  Continuing operations                                                                                                        
  Total segment revenue                                               730 894          15            730 909        227 038    
  Inter-segment revenue                                                60 668           -             60 668          1 533    
  External revenue from continuing operations                         670 226          15            670 241        225 505    
  External revenue from discontinuing operations                            -           -                  -              -    
  External revenue                                                    670 226          15            670 241        225 505    
  Continuing operations                                                                                                        
  Total segment results pre-impairment                                 52 751       6 302             59 053           (613)   
  Impairment of goodwill                                                    -           -                                 -     
  Impairment of assets held-for-sale                                   (5 774)          -             (5 774)             -     
  Provision for slow-moving/obsolete inventory                              -           -                  -              -     
  Recovery of unaccounted funds                                             -      30 000             30 000              -    
  Total segment results from continuing operations                     46 977      36 302             83 279           (613)    
  Total segment results from discontinuing operations                       -           -                  -              -     
  Segment results                                                      46 977      36 302             83 279           (613)    
  Reviewed restated six months ended 30 September 2012                                                                          
  Total segment revenue                                               711 996      67 388            779 384        442 835    
  Inter-segment revenue                                                90 165       1 578             91 743              -    
  External revenue from continuing operations                         621 831      65 810            687 641        442 835    
  External revenue from discontinuing operations                            -           -                  -              -    
  External revenue                                                    621 831      65 810            687 641        442 835    
  Total segment results from continuing operations                     49 825      37 168             86 993         48 761    
  Total segment results from discontinuing operations                       -           -                  -              -     
  Segment results                                                      49 825      37 168             86 993         48 761    

                                                                                                                           
  R000                                                            Crane hire    Coal mining         Other          Total   
  Reviewed six months ended 30 September 2013                                                                               
  Continuing operations                                                                                                     
  Total segment revenue                                                40 492              -        26 903      1 025 342   
  Inter-segment revenue                                                    72              -        12 404         74 677   
  External revenue from continuing operations                          40 420              -        14 499        950 665   
  External revenue from discontinuing operations                            -            656             -            656   
  External revenue                                                     40 420            656        14 499        951 321   
  Continuing operations                                                                                                     
  Total segment results pre-impairment                                 19 436           (240)      (43 455)        34 181   
  Impairment of goodwill                                                    -              -       (35 138)       (35 138)   
  Impairment of assets held-for-sale                                        -              -             -         (5 774)   
  Provision for slow-moving/obsolete inventory                              -              -       (40 527)       (40 527)   
  Recovery of unaccounted funds                                             -              -             -         30 000   
  Total segment results from continuing operations                     19 436           (240)     (119 120)       (17 258)   
  Total segment results from discontinuing operations                       -       (389 256)            -       (389 256)   
  Segment results                                                      19 436       (389 496)     (119 120)      (406 514)   
  Reviewed restated six months ended 30 September 2012                                                                       
  Total segment revenue                                                33 785              -        25 721      1 281 725   
  Inter-segment revenue                                                   267              -        14 912        106 922   
  External revenue from continuing operations                          33 518              -        10 809      1 174 803   
  External revenue from discontinuing operations                            -            449             -            449   
  External revenue                                                     33 518            449        10 809      1 175 252   
  Total segment results from continuing operations                     17 681          1 620       (54 110)       100 945   
  Total segment results from discontinuing operations                       -         (4 958)         (980)        (5 938)   
  Segment results                                                      17 681         (3 338)      (55 090)        95 007   


  Condensed consolidated statement of changes in equity                                                                                                                                         
  for the six months ended 30 September 2013                                               Employee share                Foreign currency    
                                                                    Share         Share         incentive    Treasury         translation    
  R000                                                           capital       premium           reserve      shares             reserve    
  Balance as at 31 March 2012                                       5 866     2 014 438            36 574     (25 898)            (25 408)   
  Profit/(loss) for the period                                          -             -                 -           -                   -    
  Other comprehensive income                                            -             -                 -           -              25 075    
  Transactions with owners, recorded directly in equity                                                                                           
  Share-based payment empowerment transaction                           -             -            12 531           -                   -    
  Option premium on empowerment transaction                             -             -             5 000           -                   -    
  Effect of change in accounting policy of joint venture                -             -                 -           -                   -    
  Restated balance as at 30 September 2012                          5 866     2 014 438            54 105     (25 898)               (333)   
  Loss for the period                                                   -             -                 -           -                   -    
  Other comprehensive income                                            -             -                 -           -              42 115    
  Transactions with owners, recorded directly in equity                                                                                            
  Dividends paid to non-controlling interest                            -             -                 -           -                   -    
  Share-based payments                                                  -             -               406           -                   -    
  Share-based payment empowerment transaction                           -             -             5 101           -                   -    
  Option premium on empowerment transaction                             -             -            11 500           -                   -    
  Effect of change in accounting policy of joint venture                -             -                 -           -                   -    
  Share options forfeited                                               -             -            (4 767)          -                   -    
  Restated balance as at 31 March 2013                              5 866     2 014 438            66 345     (25 898)             41 782    
  Loss for the period                                                   -             -                 -           -                   -    
  Other comprehensive income                                            -             -                 -           -              27 242    
  Balance as at 30 September 2013                                   5 866     2 014 438            66 345     (25 898)             69 024    

  
                                                                                                   Non-    Total ordinary   
                                                                  Retained                  controlling     shareholders   
  R000                                                           earnings         Total       interest             funds   
  Balance as at 31 March 2012                                      365 388     2 370 960         59 815         2 430 775   
  Profit/(loss) for the period                                      42 306        42 306        (12 991)           29 315   
  Other comprehensive income                                                      25 075                           25 075   
  Transactions with owners, recorded directly in equity                                                                          
  Share-based payment empowerment transaction                            -        12 531              -            12 531   
  Option premium on empowerment transaction                              -         5 000              -             5 000   
  Effect of change in accounting policy of joint venture           (58 177)      (58 177)            59           (58 118)  
  Restated balance as at 30 September 2012                         349 517     2 397 695         46 883         2 444 578   
  Loss for the period                                             (904 992)     (904 992)       (11 998)         (916 990)  
  Other comprehensive income                                             -        42 115              -            42 115   
  Transactions with owners, recorded directly in equity                                                                           
  Dividends paid to non-controlling interest                             -             -         (2 221)           (2 221)  
  Share-based payments                                                   -           406              -               406   
  Share-based payment empowerment transaction                            -         5 101              -             5 101   
  Option premium on empowerment transaction                              -        11 500              -            11 500   
  Effect of change in accounting policy of joint venture           (14 587)      (14 587)            78           (14 509)  
  Share options forfeited                                            4 767             -              -                 -   
  Restated balance as at 31 March 2013                            (565 295)    1 537 238         32 742         1 569 980   
  Loss for the period                                             (248 628)     (248 628)      (118 488)         (367 116)  
  Other comprehensive income                                             -        27 242              -            27 242   
  Balance as at 30 September 2013                                 (813 923)    1 315 852        (85 746)        1 230 106   

  
  Condensed consolidated statement of cash flows                                                               
  for the six months ended 30 September 2013                                     Restated       Restated   
                                                                  Reviewed       Reviewed        Audited   
                                                                 September      September          March   
  R000                                                               2013           2012           2013   
  Cash flows from operating activities                             198 405         65 846        106 418   
  Cash generated from operating activities                         238 707        122 533        206 525   
  Income taxes paid                                                (14 076)       (25 340)       (41 968)  
  Interest paid                                                    (26 226)       (31 347)       (58 139)  
  Cash flows from investing activities                             (28 406)       (87 236)       (90 103)  
  Interest received                                                    847          1 194          3 249   
  Purchase of property, plant and equipment                        (52 456)      (127 482)      (214 716)  
  Proceeds from disposal of property, plant and equipment           22 512         39 107         18 374   
  Capitalised exploration expenditure                                 (409)           (55)          (309)  
  Additions to assets held-for-sale                                      -              -        (57 165)  
  Proceeds from disposal of assets held-for-sale                     1 100              -        160 464   
  Cash flows from financing activities                            (132 295)       (41 507)      (158 759)  
  Loans raised                                                           -         67 974         74 213   
  Loans repaid                                                    (132 295)      (111 938)      (234 242)  
  Changes in equity accounted investments                                -         (2 543)       (13 009)  
  Option premium on empowerment transaction received                     -          5 000         16 500   
  Dividends paid to non-controlling interest                             -              -         (2 221)                                                                                                           
  Net increase/(decrease) in cash and cash equivalents              37 704        (62 897)      (142 444)  
  Cash and cash equivalents at beginning of the period              51 929        180 236        180 236   
  Exchange gain on cash and cash equivalents                         6 751          6 366         14 137   
  Cash and cash equivalents at the end of the period                96 384        123 705         51 929   
  Included in cash and cash equivalents per the balance sheet       95 683        123 543         51 642   
  Included in the assets of the disposal group                         701            162            287   
                                                                    96 384        123 705         51 929   
                                                                                                               

  Reconciliation of headline earnings                                                                                               
                                                                                 Restated       Restated   
                                                                  Reviewed       Reviewed        Audited   
                                                                 September      September          March   
  R000                                                               2013           2012           2013   
  Net (loss)/profit for the period attributable to equity                                   
  holders of the Company                                          (248 628)        42 306       (862 686)   
  Adjust for:                                                                                              
  Profit on disposal of plant and equipment                           (257)          (403)        (2 230)   
  Loss on disposal of plant and equipment                              654          7 380          1 392   
  Loss on disposal of held-for-sale assets                               -              -        221 028   
  Profit on disposal of held-for-sale assets                          (318)             -              -   
  Impairment of mineral rights held-for-sale                       365 431              -              -   
  Impairment of intangible assets                                        -              -          9 162   
  Impairment of property, plant and equipment                            -              -        186 902   
  Impairment of assets held-for-sale                                15 774              -         15 149   
  Impairment of goodwill                                            35 138              -        300 127   
  Tax effect of above adjustments                                 (100 744)            59        (13 265)   
  Headline earnings/(loss) attributed to ordinary shareholders      67 050         49 342       (144 421)   
  Headline earnings/(loss) per share (cents)                          11,5            8,5          (24,9)  


 Notes to the reviewed financial statements
 1.      Basis of preparation
         The condensed consolidated interim financial results for the six months ended 30 September 2013 have been prepared
         under the supervision of Mr GP Louw (CA)SA in accordance with International Accounting Standards IAS 34, Interim
         Financial Reporting,  the South African Companies Act 71 of 2008, as amended, and the Listings Requirements of the JSE
         Limited.
         The condensed consolidated interim financial information does not include all the information and disclosures
         required in the annual financial statements, and should be read in conjunction with the Groups annual financial statements as
         at 31 March 2013, which have been prepared in accordance with International Financial Reporting Standards as issued by
         the International Accounting Standards Board (IASB).
         The accounting standards and amendments to issued accounting standards and interpretations, which are relevant to
         the Group, but not yet effective on 30 September 2013 have not been early adopted.
         
 2.      Accounting policies            
         The accounting policies adopted are consistent with those applied in the annual financial statements for the year
         ended 31 March 2013, except as described below in note 4, where joint ventures previously proportionately consolidated are
         now equity accounted.
         Changes in accounting policy
         IFRS 11- Joint arrangements
         IFRS 11- Joint arrangements became effective on 1 January 2013. As the standard was not early adopted the
         transition rules apply. On transition, adjustments in accordance with the transition provisions of the standard are recorded at
         the beginning of the earliest period presented.
         Before 30 September 2013, the Group's interest in its jointly controlled entities was accounted for using the
         proportional consolidation method.
         The investment affected is Jonah Coal Botswana Limited.            
         The Group adopted IFRS 11- Joint arrangements on 1 April 2013. This resulted in the Group changing its accounting
         policy for its interest in jointly controlled entities. Under IFRS 11, investments in joint arrangements are either
         classified as joint operations or joint ventures, depending on the contractual rights and obligations each investor has
         rather than the legal structure of the joint arrangement.
         Under IFRS 11, the abovementioned jointly controlled entity has been assessed and classified to be a joint venture.
         The financial effects of the change in accounting policies at 30 September 2012 and 31 March 2013 are disclosed in note 4.
         
 3.      Restatement of comparative periods
         The adoption of IFRS 11 has resulted in the restatement of comparative periods. Prior periods have also been
         represented for discontinued operations.
         
 4.      Effect of adoption of IFRS 11
         The Group has a joint venture agreement with Jonah Capital BVI, which led to the establishment of a joint venture
         company, incorporated in Mauritius and known as Jonah Coal Botswana Limited.  Sentula owns 50% of the share capital of
         Jonah Coal Botswana. Its principal business activity is investing in coal exploration companies.

                                                                       6 months        12 months   
                                                                          ended            ended   
         Impact on statement of comprehensive income (R000)       30 September         31 March   
         Increase/(decrease)                                               2012             2013   
         Operating expenses                                                   -           11 924   
         Share of expenses of equity-accounted joint venture                  -              367   
         Profit before tax                                                    -           12 291   
         Taxation                                                             -                -   
         Profit after tax                                                     -           12 291   
         Impact on statement of financial position (R000)                                         
         Increase/(decrease)                                                                       
         Assets:                                                                                   
         Property, plant and equipment                                     (198)            (151)  
         Intangible assets                                              (14 870)         (14 810)  
         Investment in equity-accounted joint venture                       367                -   
         Goodwill                                                       (43 244)         (48 083)  
         Trade receivables                                                 (105)             (17)  
         Cash and cash equivalents                                       (2 543)            (718)  
         Total assets                                                   (60 593)         (63 779)  
         Equity:                                                                                   
         Retained earnings                                              (58 177)         (60 434)  
         Non-controlling interest                                            59               98   
                                                                        (58 118)         (60 336)  
         Liabilities:                                                                              
         Trade payables                                                  (2 475)          (3 443)  
         Total equity and liabilities                                   (60 593)         (63 779)  
         Impact on statement of cash flows (R000)                                                 
         Increase/(decrease)                                                                       
         Cash flows from investing activities                            (2 543)         (13 009) 
		 
  5.     Discontinued operations                                                                                      
         The Board has taken a decision to dispose of all the coal assets within the group.                                                     
         As announced on SENS on 26 June 2013, Sentula is in negotiations regarding the proposed disposal of its 60% 
         indirectly held interest in the Nkomati Anthracite mine.                                                     
         Financial performance and cash flow information relating to the discontinued operations for the period is set out below. 
		 
                                                                                        Restated         Restated   
                                                                       Reviewed         Reviewed          Audited   
                                                                      September        September            March   
         R000                                                             2013             2012             2013   
         Revenue                                                            656              449              908   
         Cost of sales                                                   (8 614)          (5 826)         (13 111)  
         Gross loss                                                      (7 958)          (5 377)         (12 203)  
         Other income                                                        15               15               30   
         Impairment of mineral rights                                  (365 431)               -                -   
         Impairment of assets held-for-sale                             (10 000)               -                -   
         Administration expenses                                         (5 882)            (576)          (1 215)  
         Results from operating activities                             (389 256)          (5 938)         (13 388)  
         Finance expense                                                (17 565)         (15 539)         (31 681)  
         Finance income                                                     266              253              501   
         Loss before taxation                                          (406 555)         (21 224)         (44 568)  
         Taxation                                                       102 432                -               26   
         Loss for the period from discontinued operations              (304 123)         (21 224)         (44 542)  
         Intergroup eliminations                                         18 009           14 551           29 696   
                                                                       (286 114)          (6 673)         (14 846)  
         Loss attributable to:                                                                                      
        - Equity holders of the Company                                (185 635)         (12 734)         (26 725)  
        - Non-controlling interest                                     (118 488)          (8 490)         (17 817)  
         Cash flow attributable to operating activities                 (26 907)         (22 512)         (44 459)  
         Cash flow attributable to investing activities                    (824)              33              219   
         Cash flow attributable to financing activities                  28 145           22 233           44 119   
         Cash flows attributable to discontinued operations                 414             (246)            (121)  
         Cash and cash equivalents at the beginning of the period           287              408              408   
         Cash and cash equivalents at the end of the period                 701              162              287   
		 
  6      Assets and liabilities classified as held-for-sale                                                         
         Assets held-for-sale                                                                                       
         Property, plant and equipment                                  188 271          522 673          194 494   
         Mineral rights                                                  45 330          410 761          410 761   
         Intangible assets                                                7 249            6 585            6 840   
         Restricted investment                                            8 693            8 693            8 693   
         Deferred tax asset                                              14 729           14 704           14 729   
         Inventories                                                     14 149           14 149           14 149   
         Trade receivables                                                  163              193              102   
         Other receivables                                                1 435            1 434              178   
         Value added taxation                                               210              862              216   
         Cash and cash equivalents                                          701              162              287   
         Current tax receivable                                               -               85               85   
                                                                        280 930          980 301          650 534   
         Liabilities held-for-sale                                                                                  
         Rehabilitation provision                                        66 899           66 899           66 899   
         Trade and other payables                                         5 418              813            1 538   
         Deferred tax liability                                          12 692          115 013          115 013   
                                                                         85 009          182 725          183 450 
																		 
  7.     Contingent liabilites                                                                                         
         Keaton                                                                                                       
         During the 2013 financial year, Megacube Mining Proprietary Limited (MM) instituted legal proceedings against Keaton Mining
         Proprietary Limited (Keaton) for the recovery of R41,5 million owing to MM for mining services rendered on its Vangatfontein 
	 operation.                                                     
         Subsequent to the above action, Keaton instituted a counter claim of R119,9 million against MM in respect of an alleged breach 
	 of contract and substandard mining practices. In accordance with the mining services contract between the two parties, the 
	 matters will be independently arbitrated. A date for arbitration has yet to be finalised, but is to be expected to be set down 
	 for the second half of the 2014 financial year. The Company and its attorneys believe that there is a strong case in support of 
	 the initial claim, and that there is a good defence against the alleged counterclaim, but are unable to estimate the probable or 
         possible loss. The amount owing by Keaton to MM is included in trade receivables at this and prior reporting dates.                                                     
         
	 CCT rehabilitation                                                                                           
         Management has embarked upon an assessment of certain open cast site closure rehabilitation obligations. An independent open pit 
	 mining consultant has been appointed to finalise the individual pit closure designs, which will then serve as a basis for this 
	 determination. It is impossible to determine the magnitude of the potential liability at this stage.
		 
 8.      Events after the reporting period                                                                             
         The directors are not aware of any other matters or circumstances arising after the reporting period up to the date of this report,
	 not otherwise dealt within this report. Refer to note 9 for details of the debt restructure that occured subsequent to period end.
		 
 9.      Going concern                                                                                                 
         The Group has met all its debt obligations during the past six months and, based on the Groups cash flow forecasts for the 12 months
	 ending 30 September 2014, is expected to meet all its obligations in the ordinary course of business during this period.                                                     
         As disclosed in the March 2013 annual financial statements the Group funds its operations by means of a Standard Bank led consortium 
	 facility and a Wesbank vehicle asset finance facility. The availability of these facilities is subject to ongoing compliance with a 
	 number of financial covenants, including, inter alia, a debt service cover ratio (DSCR) and a total debt to EBITDA ratio (TDR).                                                     
         The Group breached the DSCR and TDR covenants at June 2013 and September 2013 for which condonation was granted by the Standard Bank 
	 Consortium (SBC). The Board of directors has approved a proposal from SBC to restructure its senior debt as follows:                                                     
         -  Tranche A- a fully amortising tranche of R99 million over the period to 11 February 2015; and                                                     
         -  Tranche B- a bullet instalment of between R210 million and R254 million (Tranche B), depending on the extent of interim cash 
	 sweeps, by no later than 11 February 2015. The bullet instalment is expected to be redeemed from proceeds arising from the disposal of
	 the Groups coal assets and other non-core assets.                                                     
         All forward looking covenants are expected to be complied to once the restructured facility is implemented.
		 
 10.     Review conclusion                                                                                             
         The condensed consolidated statement of financial position at 30 September 2013 and related condensed consolidated income statement, 
	 condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated
	 statement of cash flows for the period have been reviewed by PricewaterhouseCoopers Inc. Their unmodified review report is available for 
	 inspection at the Companys registered office.                                                     
                                                                                                                                                                                                                                            
Directors: JG Best*(Chairman), RC Berry (Chief Executive Officer), GP Louw (Financial Director), PP Modisane, 
CJPG van Zyl*, DR Zihlangu*, KW Mzondeki*, RB Patmore*        *Non-executive

Company Secretary: GC Cross

Transfer Secretaries: Computershare Investor Services Proprietary Limited, Ground Floor, 70 Marshall Street,
Johannesburg, 2001. PO Box 61051 Marshalltown.  2107. Tel (011) 370-5000

Investor Relations Advisers: College Hill     

Sponsor: Merchantec Capital     

Independent External Auditor: PricewaterhouseCoopers Inc.

Registered address: Block 14- Ground Floor, Woodlands Office Park, Woodmead, 2080. PO Box 76, Woodmead, 2080. 
Tel (011) 656-1303

www.sentula.co.za

Date: 14/11/2013 07:05:00 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
 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.

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