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METMAR LIMITED - Trading Statement

Release Date: 02/04/2014 16:30
Code(s): MML     PDF:  
Wrap Text
Trading Statement

 METMAR LIMITED
 Incorporated in the Republic of South Africa
 (Registration number 1998/007269/06)
 Share code: MML
 ISIN code: ZAE000078747
 (“Metmar” or "the Company")


Trading Statement

In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement
as soon as they are satisfied, with a reasonable degree of certainty that the financial results of the period to
be reported upon will differ by 20% or more from the financial results of the previous corresponding period.

Shareholders are advised that the Company’s attributable loss per share for the financial year ended
28 February 2014 is expected to increase to between 65.37 cents and 54.47 cents, while headline loss per
share is expected to decline to between 20.51 cents and 17.09 cents.

The results of the core trading operations were profitable however these were more than offset by losses
for initial costs of sinter tolling project, Impairment of investments and losses in discontinued operations.

The range of attributable and headline profit and losses per share for each of these factors are as follows:

                                        Attributable earnings / (loss)          Headline earnings / (loss)
 Focus Area                               Range (cents per share)                Range (cents per share)
 Core trading                                    19.13 – 22.96                        19.13 – 22.96
 Manganese sinter tolling project                (6.32) – (5.27)                      (6.32) – (5.27)
 Discontinued trading operations                (11.52) – (9.60)                      (1.33) – (1.10)
 Investments                                   (48.10) – (40.09)                     (10.22) – (8.52)

    -      Management’s decision to refocus its efforts on trading activities is largely responsible for the
           turnaround in core trading business;
    -      Commissioning delays at the Kalagadi sinter plant resulted in an effective 6 month delay in the
           start of the manganese sinter tolling project. Production levels are however steadily improving,
           and our first shipment of manganese sinter will take place early April 2014;
    -      The disposal of West African Group division, which, although generating some R54 million cash
           for the Company, also resulted in goodwill write-off of some R47 million; and
    -      The completion of the review of our investments portfolio resulted in further impairments/write
           downs amounting to some R121 million.

In spite of the global commodities challenges which are expected to remain in the short term, Metmar will
continue focussing its efforts on core trading activities, extracting full value from the manganese sinter
tolling project and its investments portfolio, and pursuing further overhead cost reduction to ensure the
group is appropriately and sufficiently resourced to achieve its 2014/15 targets.
The Company’s auditors have not reported on the financial information on which this trading statement is
based. Shareholders are advised that the results for the period ended 28 February 2014 will be released no
later than 30 April 2014.

2 April 2014
Bryanston

Sponsor
Nedbank Capital

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