Sharenet Sites 
Sharenet Sites
Trading update and trading statement for the year ended 27 December 2015
Delta EMD Limited
(Incorporated in the Republic of South Africa)
Registration number 1919/006020/06
ISIN: ZAE000132817
Share code: DTA
(“Delta EMD” or “the Group”)
TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 27 DECEMBER
2015
Shareholders are referred to the Group’s statement of unaudited
results for the six months ended 27 June 2015 released on the Stock
Exchange News Service (“SENS”) on 14 July 2015, to the announcement
released on SENS on 14 October 2015 concerning the sale of the
Nelspruit plant site and to the announcement released on SENS on 17
November 2015 concerning the Pappas Quarry Waste Management Facility.
Trading update
As reported previously, the Black Rock calciner plant and the
Australia plant site have been sold and payment has been received in
full.
The Group has entered into an agreement for the sale and salvage of
Nelpruit plant and equipment. Payment has been received in full, and
salvaging by the purchaser of the plant and equipment continues.
The Group has also entered into an agreement for the sale of the
Nelspruit plant site, including a parcel formerly leased by the Group
which will now be purchased by the Group. The sale of the Nelspruit
plant site will not complete until the salvage of the Nelspruit plant
and equipment and the demolition and rehabilitation of the Nelspruit
plant site are completed. A definitive remediation order for the
Nelspruit plant site is awaited from the Department of Environmental
Affairs and the salvaging, demolition and rehabilitation will
continue into the first quarter of 2016. The purchase of the formerly
leased parcel to be included in the Nelspruit plant site will
complete shortly when payment will be made in full.
Other than the Nelspruit plant site, the sales of essentially all of
the Group’s assets have been completed.
Trading Statement
In terms of paragraph 3.4 (b) of the Listings Requirements of the JSE
Limited, companies are required to publish a trading statement in the
event that they are satisfied that a reasonable degree of certainty
exists that the earnings per share and headline earnings per share
results will differ from the previous corresponding reporting period
by at least 20%.
Delta EMD is currently finalising its results for the year-ended 27
December 2015 (“the period”). In this regard, shareholders are
advised that Delta EMD expects loss per share for the period to be
between 80% and 85% higher 248 to 264 cents per share higher) than
the reported loss of 311 cents per share reported for the previous
corresponding reporting period Headline loss per share for the period
is expected to be between 93% and 98% (237 to 252 cents per share
higher) than the reported loss of 296 cents per share reported for
the previous corresponding reporting period.
The Group’s results for the full year will include approximately R7
million of profits on the sale of assets, as well as a R11.7 million
reversal of the earlier impairment of the Nelspruit plant site. The
restated value of the plant site will reflect the agreed selling
price.
The Group’s expenses relating to the discontinuation of its business
are expected to be R66.5 million for the full year (2014: R175.2
million), including an additional expense of R15.1 million for the
settlement of obligations related to the Pappas Quarry Waste
Management Facility, labour cost for the implementation team (R12.7
million) and retention incentives (R13.1 million).
Taking into account proceeds on the sale of assets, impairment
reversal and expenses, the Group expects an after tax loss for the
year of between R22.1 million and R27.1 million (2014: R152.9
million) and expects an after tax headline loss for the year of
between R5.1 million and R6.2 million (2014: R145.8 million).
Delta EMD’s results for the year ended 27 December 2015 are expected
to be released on SENS before the end of February 2016
The forecast financial information on which this trading statement is
based has not been reviewed and reported on by the Group’s external
auditors.
18 December 2015
Nelspruit
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 18/12/2015 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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