Sharenet Sites 
Sharenet Sites
Interim results for the period ended 31 August 2013
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE00007020249
("Chrometco" or "the group" or “the company”)
INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2013
ABRIDGED STATEMENT OF FINANCIAL POSITION
Unaudited Reviewed Audited
Interim Interim for year
as at as at as at
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R’000
ASSETS
Non-current assets 197 697 182 438 199 822
Tangible assets 24 41 31
Intangible Assets 194 062 181 379 197 499
Deferred taxation 3 611 1 018 2 292
Other long-term receivables - - -
Current assets 26 889 33 140 31 752
Inventories 9 531 6 449 11 011
Trade and other receivables 962 4 973
Cash and cash equivalents 16 406 26 687 19 768
Total assets 224 596 215 578 231 574
EQUITY AND LIABILITIES
Capital and reserves 172 119 167 312 179 256
Stated capital 54 187 35 487 54 187
Retained earnings / (Accumulated loss) 83 915 96 598 90 447
Non-Controlling Interest 34 017 35 227 34 622
Non-current liabilities 32 700 33 857 33 279
Deferred taxation 32 700 33 857 33 279
Current liabilities 19 777 14 409 19 039
Trade and other payables 16 212 11 124 15 546
Provisions 10 10 10
Taxation payable 3 555 3 275 3 483
Total equity and liabilities 224 596 215 578 231 574
Net asset value per share 83.99 90.47 87.47
(cents)
Net tangible asset value per 5.25 10.15 7.34
share (cents)
Closing number of shares 204 929 184 929 204 929
(`000)
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Reviewed Audited
Interim Interim for year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2013
2013 2012
R'000 R'000 R’000
Revenue 1 827 871 1 553
Cost of sales (1 899) (421) (530)
Gross profit / (loss) (72) 450 1 023
Other income - - -
Operating expenses (9 389) (8 350) (17 808)
Net (loss)/ profit before interest
and taxation (9 462) (7 900) (16 785)
Investment income 370 696 1 182
Net (loss) / profit before taxation (9 092) (7 204) (15 603)
Taxation 1 954 1 410 3 054
Net (loss) / profit for the period (7 137) (5 794) (12 549)
Other comprehensive income - -
Taxation of other comprehensive
Income - - -
Loss /(profits) attributable to non
Controlling interest 605 605 1 210
Total comprehensive (loss) / income for
the period attributable to the owners
of the company (6 532) (5 189) 11 339
Reconciliation between earnings and headline earnings
per share
Basic (loss) / earnings per share(cents) (3.19) (2.81) (5.92)
Diluted (loss) / earnings
per share (cents) (2.38) (2.81) (5.28)
Headline (loss) / earnings per share for the half year ended 31 August 2013
Total comprehensive profit / (loss)
for the six months (6 532) (5 189) (11 339)
Adjustments:
Profit on sale of assets 85 - -
Reversal of impairment on long term
receivable - - -
Gain on bargain purchase - - -
Headline loss attributable
to ordinary shareholders (6 447) (5 189) (11 339)
Headline loss per share (cents) (3.15) (2.81) (5.92)
Diluted headline loss per share (cents) (2.34) (2.81) (5.28)
Weighted average number of
shares (`000) 204 929 184 929 204 929
CASH FLOW STATEMENTS
Unaudited Reviewed Audited
Interim Interim for year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2013
2013 2012
R'000 R'000 R’000
Cash flows from operating
activities (3 362) (4 923) (11 042)
Cash flows from investing
activities - - (800)
Cash flows from financing
activities - - -
Net movement in cash and cash
equivalents (3 362) (4 923) (11 842)
Cash and cash equivalents at
the beginning of the period 19 768 31 610 31 610
Cash and cash equivalents at
the end of the period. 16 406 26 687 19 768
STATEMENT IN CHANGES OF EQUITY
Capital Non Controlling Retained
and Premium Interest Earnings Total
R'000 R'000 R'000 R'000
Balance at 1
March 2012 35 487 35 832 101 787 173 106
Non controlling interest
share of Loss for
the six months
ended 31
August 2012 - (605) - (605)
Total comprehensive
loss for the period - - (5 189) (5 189)
Balance at 31
August 2012 35 487 35 227 96 598 167 312
Effect of share
Based payments 18 700 - - 18 700
Non controlling interest
share of loss for
the six months
ended 28 February 2013 - (605) - (605)
Total comprehensive
loss for the six
months ended 28
February 2013 - - (6 150) (6 150)
Balance at
28 February 2013 54 187 34 622 90 447 179 256
Non controlling interest
share of loss for
the six months
ended 31 August 2013 - (605) - (605)
Total comprehensive
loss for the six
months ended 31
August 2013 - - (6 532) (6 532)
Balance at
31 August 2013 54 187 34 017 83 915 172 119
COMMENTARY – Financial and operational overview.
1. The directors present the interim consolidated financial results for the six months
ended 31 August 2013.
2. Basis of preparation
The accounting policies of the company comply in all material respects with recognition and
measurement criteria of International Financial Reporting Standards (“IFRS”) and its
interpretations adopted by the International Accounting Standards Board (“IASB”) in issue
and effective at 1 March 2012, as well as the presentation and disclosure requirements of
IAS 34 – Interim Financial Reporting, the JSE Limited Listings Requirements, the Companies
Act No 71 of 2008 as amended and the SAICA Financial Reporting Guides as ssued by the
Accounting Practices Committee and Financial Pronouncements as issued by Financial
Reporting Standards Council. The accounting policies and methods of measurement and
recognition are consistent with those applied in the financial period ended 31 August 2012.
The interim results have been prepared by Mr Trevor Scott (BCom) (Hons) BAcc CA(SA), the
Financial Director of the Company.
3. Long term receivables are measured at amortised cost less accumulated impairment losses.
4. Intangible assets comprising geological information are amortised over their expected
useful life of 28 years.
5. New order mining rights for chrome at Rooderand are amortised over their expected
remaining useful life of 28 years.
6. Nature of business.
The company is involved in the exploration of mineral resources and the possible
beneficiation thereof.
7. General review of operations.
During the six months under review, the company focused its attention on the following
important issues:-
- Completion of the consolidation of the mining rights for PGM on the Remainder Portion
with the group’s existing new order mining right for chrome. The acquisition of the PGM
mining rights will be effected through the conditional abandonment of NKWE Platinum’s
prospecting right for PGMs and base metals on the Remainder Portion of Rooderand subject to
the Minister of Mineral Resources granting consent, in terms of section 102 of the Mineral
and Petroleum Resources Development Act, 2008 to amend the mining right held by Chrometco
over the property to include the additional minerals. Please refer to the SENS announcement
issued on 13 August 2012 for detailed information on the terms of the transaction.
- Completion of a feasibility study and mine plan on chrome mining and beneficiation
operations
- Processing and sales of stockpiled MG4 chrome ore at Rooderand
8. Prospects
The group currently has a chrome mine in the North West province of the Republic of South
Africa. Subsequent to the termination of the mining and management agreement with DCM
Chrome on 3 December 2011, the company commenced mining operations for its own account on
the Rooderand site and is in the process of selling existing chrome stock resulting from
mining operations. The group is in the process of acquiring PGM interests on the Remainder
Portion of Rooderand.
The company is also interested in the exploration and beneficiation of mineral resource
opportunities in the Republic and elsewhere.
9. Changes to the board
During the period under review, Mr. Christopher Seabrooke resigned from his position as
lead independent non-executive director and chairman of the audit committee on 3 June 2013.
Mr. Richard Rossiter was appointed as chairman of the audit committee with effect from 26
November 2013. Mr. Ryan McConnachie has been appointed as an alternate director to Mr.
Richard Rossiter with effect from 24 May 2013.
10. Dividends
No dividend has been declared for the interim period.
11. Correction of previously published DLPS and DHLPS
The company’s annual report contained a typographical error pertaining to diluted loss per
share (“DLPS”) and diluted headline loss per share (“DHLPS”). The previously published
information reflected a weighted number of potential ordinary shares amounting to 70
million for the purposes of calculating DLPS and DHLPS whereas the correct weighted number
of potential ordinary shares was 23,333,333. A table illustrating the previously published
figures, as well as the correct corresponding amounts appears below:
Item As Previously Published Revised
DLPS (in cents) (4.33) (5.28)
DHLPS (in cents) (4.33) (5.28)
For and on behalf of the board of directors
PJ Cilliers
Managing Director
28 November 2013
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-executive), E Bramley
(Non-executive), IWS Collair (Non-executive), R McConnachie (Non-executive – alternate), TW
Scott (FD).
Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited.
Company Secretary: CIS company Secretaries (Pty) Ltd
Registered Office:
70 Marshall Street
Johannesburg
2001
(P.O.Box 3787, Dainfern. 2055)
www.chrometco.co.za
Johannesburg
28 November 2013
Date: 28/11/2013 10:58:00 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.
