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CHROMETCO LIMITED - Interim condensed consolidated financial results for the six months ended 31 August 2014

Release Date: 27/11/2014 17:20
Code(s): CMO     PDF:  
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Interim condensed consolidated financial results for the six months ended 31 August 2014

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

Interim condensed consolidated financial results for the six months ended 
31 August 2014

Abridged statement of financial position

                                     Unaudited   Unaudited
                                       Interim     Interim      Audited
                                      6 months    6 months     for year 
                                         ended       ended        ended
                                     31 August   31 August  28 February
                                          2014        2013         2014
                                         R’000       R’000        R’000
Assets
Non-current assets                     194 629     197 697      196 448
Tangible assets                             19          24            7
Intangible assets                      187 175     194 062      190 625
Deferred taxation                        7 435       3 611        5 816
Current assets                          11 554      26 889       15 470
Inventories                                 79       9 531           79
Trade and other receivables                395         962          448
Cash and cash equivalents               11 080      16 406       14 943
Total assets                           206 183     224 596      211 918
Equity and liabilities
Capital and reserves                   173 791     172 119      178 950
Stated capital                          54 187      54 187       54 187
Retained earnings/(Accumulated
loss)                                   86 797      83 915       91 351
Non-controlling interest                32 807      34 017       33 412
Non-current liabilities                 31 553      32 700       32 131
Deferred taxation                       31 553      32 700       32 131
Current liabilities                        839      19 777          837
Trade and other payables                   287      16 212          303
Provisions                                  10          10           10
Taxation payable                           542       3 555          524
Total equity and liabilities           206 183     224 596      211 918
Net asset value per share (cents)        84.81       83.99        87.32
Net tangible asset value per share
(cents)                                   8.87        5.25         9.98
Closing number of shares (`000)        204 929     204 929      204 929


Abridged statement of comprehensive income

                                     Unaudited   Unaudited
                                       Interim     Interim      Audited
                                      6 months    6 months     for year 
                                         ended       ended        ended
                                     31 August   31 August  28 February
                                          2014        2013         2014
                                         R’000       R’000        R’000
Revenue                                     63      1 827        12 900
Cost of sales                                ¬     (1 899)      (13 181) 
Gross profit/(loss)                         63        (72)         (281) 
Other income                                 ¬          -             - 
Amortisation of intangible assets       (3 451)    (3 444)       (6 973) 
Change in measurement – VAT                  -          -         6 018
Operating expenses                      (4 220)    (5 946)       (7 071) 
Net loss before interest and
taxation                                (7 608)    (9 462)       (8 752) 
Investment income                          269        370           815
Net loss before taxation                (7 339)    (9 092)       (7 937) 
Taxation                                 2 180      1 954         7 631
Loss for the year                       (5 159)    (7 137)         (306) 
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                   (4 554)    (6 532)          904
Reconciliation between earnings and 
headline earnings per share
Basic (loss)/earnings per
share(cents)                             (2.22)     (3.19)         0.44
Diluted (loss)/earnings per share
(cents)                                  (1.66)     (2.38)         0.33
Headline (loss)/earnings per share 
for the half year ended 31 August 2014
Total comprehensive profit/(loss)
for the six month period                (4 554)    (6 532)          904
Adjustments:
Profit on sale of assets                     -         85           (85) 
Headline loss attributable to
ordinary shareholders                   (4 554)    (6 447)          819
Headline loss per share (cents)          (2.22)     (3.15)         0.40
Weighted average number of shares
(`000)                                 204 929    204 929       204 929


Cash flow statements

                                     Unaudited   Unaudited
                                       Interim     Interim      Audited
                                      6 months    6 months     for year 
                                         ended       ended        ended
                                     31 August   31 August  28 February
                                          2014        2013         2014
                                         R’000       R’000        R’000
Cash flows from operating
activities                              (3 845)    (3 362)       (4 910) 
Cash flows from investing
activities                                 (18)         -            85
Cash flows from financing
activities                                   -          -        (4 825) 
Net movement in cash and cash
equivalents                             (3 863)    (3 262)      (11 842) 
Cash and cash equivalents at the
beginning of the period                 14 943     19 768        19 768
Cash and cash equivalents at the
end of the period                       11 080     16 406        14 943


Statement in changes of equity

                                                Non
                                 Stated Controlling  Retained
                                Capital    Interest  Earnings    Total
                                  R’000       R’000     R’000    R’000
Balance at 1 March 2012          35 487      35 832   101 786  173 105
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    96 597  167 311
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
Non controlling interest share 
of loss for the six months
ended 28 February 2014                -        (605)        -     (605) 
Total comprehensive income for
the six months ended 28
February 2014                         -           -     6 532     6532
Balance at 28 February 2014      54 187      34 622    90 447  179 256
Non controlling interest share 
of loss for the six months
ended 31 August 2014                  -        (605)        -     (605)
Total comprehensive loss for
the six months ended 31 August
2014                                  -           -    (4 554)  (4 554)
Balance at 31 August 2014        54 187      32 807    86 798  173 792

Commentary
Financial and operational overview
1. The directors present the interim consolidated financial results for 
the six months ended 31 August 2014.

2. Basis of preparation
These condensed consolidated interim results for the six month period 
ended 31 August 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 previous financial period.

These condensed consolidated interim financial statements have been 
prepared under the supervision of Trevor Scott (BCom (Hons), BAcc, 
CA(SA))in his capacity as Financial Director.

3. Long term receivables are measured at amortised cost less accumulated 
impairment losses.

4. Intangible assets comprising geological information are amortised over 
their expected remaining useful life of 27 years.

5. New order mining rights for chrome at Rooderand are amortised over 
their expected remaining useful life of 27 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:

- Finalising a mining services and ore sales agreement with
  International Ferro Metals SA Proprietary Limited (“IFM).
- Conducting an exploration and drilling programme at Rooderand in 
  accordance with the first phase of the agreement with IFM.
- DMR related activities required to conclude the acquisition of the 
  Platinum Group Metals (“PGM”) prospecting rights from Nkwe Platinum SA and 
  Realm Resources.
- Completion of a detailed PGM value strategy for PGM consolidation on the 
  Rooderand property.


8. 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 IFM agreement which was announced on SENS on 7 October 2014 has seen 
mining commence on Rooderand in the 2014/2015 year. This is a
significant step for the company.

The company is also interested in the exploration and beneficiation of 
mineral related opportunities.

9. Changes to the board
There were no changes to the board during the period under review.

10. Dividends
No dividend has been declared for the interim period. 

For and on behalf of the board of directors

PJ Cilliers
Managing Director
27 November 2014

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: Vanessa Marques, representing The Green Board CC
Registered Office:
71 Van Beek Avenue
Glenanda
2091
(P.O. Box 758, Mondeor, 2110)

www.chrometco.co.za
Date: 27/11/2014 05:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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