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CHROMETCO LIMITED - Abridged audited financial statements for the year ended 28 February 2014 and notice of AGM

Release Date: 30/05/2014 16:03
Code(s): CMO     PDF:  
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Abridged audited financial statements for the year ended 28 February 2014 and notice of AGM

Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE000070249
("Chrometco" or "the group")

ABRIDGED AUDITED GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2014

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                      Audited as at            Audited as at
                                         8 Feb 2014               8 Feb 2013

                                              R'000                    R'000
ASSETS

Non-current assets                          196 448                  199 822
Tangible assets                                   7                       31
Intangible assets                           190 625                  197 499
Deferred taxation                             5 816                    2 292

Current assets                               15 470                   31 752
Inventory                                        79                   11 011
Trade and other receivables                     448                      973
Cash and cash equivalents                    14 943                   19 768

Total assets                                211 918                  231 574

EQUITY AND LIABILITIES

Capital and reserves                        178 950                  179 256
Stated capital                               54 187                   54 187

Retained earnings                            91 351                   90 447
Non-controlling interest                     33 412                   34 622

Non-current liabilities                      32 131                   33 279
Deferred taxation                            32 131                   33 279

Current liabilities                               837                 19 039
Trade and other payables                          303                 15 546
Provisions                                         10                     10
Taxation payable                                  524                  3 483

Total equity and liabilities                 211 918                 231 574
Net asset value per share (cents)              87.32                   87.47
Closing number of shares ('000)              204 929                 204 929


ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                 Audited for       Audited for
                                                  year ended        year ended
                                                 28 Feb 2014       28 Feb 2013

                                                       R'000             R'000

Revenue                                              12 900              1 553
Cost of sales                                       (13 181)              (530)
Gross profit                                           (281)             1 023
Other income                                             85
Amortisation of intangible assets                    (6 873)            (6 481)
Change in measurement – VAT                           6 018
Operating expenses                                   (7 701)           (11 327)
Net loss before interest
and taxation                                             (8 752)       (16 785)
Investment income                                           815          1 182

Loss before taxation                                 (7 937)           (15 603)
Taxation                                              7 631              3 054
Loss for the year                                      (306)           (12 549)
Total comprehensive loss
for the year                                           (306)           (12 549)
Loss attributable to
non controlling interest                              1 210              1 210
Total comprehensive income/(loss) for the
year attributable to owners of the company              904            (11 339)

Reconciliation between earnings and
head line earnings per share

Basic earnings / (loss) per share (cents)              0.44             (5.92)
Diluted earnings / (loss) per share (cents)            0.33             (5.28)
Earnings/(loss) attributable
to owners of the company                               904            (11 339)

Adjustments:

Profit on disposal of plant                              (85)               -
Headline profit attributable
to owners of the company                                 819          (11 339)
Headline profit/(loss) per share (cents)                0.40            (5.92)
Weighted average number of shares (`000)             204 929          191 595


ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                 Audited for    Audited for
                                                  year ended     year ended
                                                  28 Feb 2014   28 Feb 2013

                                                       R'000          R'000

Cash flows from operating activities                 (4 910)       (11 042)
Cash flows from investing activities                     85           (800)
Cash flows from financing activities                      -              -
Net movement in cash and cash equivalents            (4 825)       (11 842)
Cash and cash equivalents
at the beginning of the period                       19 768         31 610
Cash and cash equivalents
at the end of the period                             14 943         19 768

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                           Stated        Non
                                      Capital and Controlling     Retained
                                          Premium    Interest     Earnings         Total

                                             R'000      R'000        R'000         R'000

Balance at 1 March 2012                     35 487     35 832     101 786        173 105
Comprehensive loss for the period                -          -     (11 339)       (11 339)
Non controlling interest’s
share of loss for the year                      -       (1 210)          -        (1 210)
Effect of share based payments             18 700            -           -        18 700

Balance at 1 March 2013                    54 187      34 622       90 447       179 256
Non controlling interest’s
share of loss for the year                       -      (1 210)          -        (1 210)
Comprehensive income
for the period                                  -           -         904            904
Balance at 28 February 2014                54 187      33 412      91 351        178 950

COMMENTARY – Financial and operational overview.

1. The directors present the audited results for the year ended 28 February 2014

2. Basis of preparation
The abridged audited group annual financial statements for the year ended
28 February 2014 have been prepared in accordance with the framework concepts
and the recognition and measurement criteria of International Financial
Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee, as well as the presentation and
disclosure requirements of IAS 34 – Interim Financial Reporting, the JSE Limited
Listings Requirements and the Companies Act of South Africa. The group accounting
policies and methods of measurement and recognition comply in material respects
with IFRS and are consistent with those applied in the financial period ended
28 February 2013

3. Auditors report
This summarised report is extracted from audited information but is not itself
audited. The unmodified audit report issued by Chrometco groups auditors,
RSM Betty & Dickson (Johannesburg) is available for inspection at the
company's registered office during normal office hours.
The directors take full responsibility for the preparation of this report
and confirm that the financial information has been correctly extracted
from the underlying annual financial statements.

4. Nature of business
The company is involved in the exploration of mineral resources and the
possible beneficiation thereof.

5. General review of operations.
During the period under review, the group focused its attention on the
following important issues:-

- Processing and sale of stockpiled MG4 chrome ore;
- Optimisation of the allocation of capital resources.
- DMR related activities required to conclude of the acquisition of the
PGM prospecting rights from Nkwe Platinum SA and Realm Resources; and
- Commercialization of the Rooderand chrome resource.

6. Prospects
The group currently has a chrome mine in the North West province of the
Republic of South Africa and is focusing on the consolidation of the PGM
resources on its Rooderand chrome property while simultaneously extracting
value from its chrome resource.
The newly entered IFM agreement could see mining commence on Rooderand in
this year. This is a significant step for the company.
The company is also interested in the exploration and beneficiation of
mineral related opportunities.

7. Changes to the board
The board welcomed the appointment of Mr. Ryan McConnachie (alternate to
Mr. Richard Rossiter) in May 2013.
Mr Christopher Seabrooke resigned as an independent non executive director
in June 2013.

8. Annual general meeting and integrated annual report
The annual general meeting of the company will be held in the boardroom,
at Computershare Investor Services (Pty) Ltd, 70 Marshall Street,
Johannesburg on Friday, 4 July 2014 at 10h00. The notice of annual general meeting
forms part of the Integrated Annual Report 2014, to be posted to shareholders on
or about 31 May 2014. The integrated annual report and form of proxy will also
be available on the company’s website: www.chrometco.co.za on or about 31 May 2014.

9. Dividends
No dividend has been declared for the period.

For and on behalf of the board of directors

PJ Cilliers
Managing Director

Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter, E Bramley,
IWS Collair, R McConnachie (alternate to Mr. Rossiter), TW Scott (FD)


30 May 2014

Designated Advisor: Sasfin Capital, a division of Sasfin Bank.
Company Secretary: CIS Company Secretaries (Pty) Ltd
Registered Office
70 Marshall Street
Johannesburg
(P.O.Box 3787, Dainfern. 2055)


www.chrometco.co.za

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