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MINE RESTORATION INVESTMENTS LIMITED - Unaudited interim results for the 6 months ended 31 August 2017

Release Date: 29/11/2017 17:26
Code(s): MRI     PDF:  
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Unaudited interim results for the 6 months ended 31 August 2017

Mine Restoration Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share Code: MRI
ISIN Code:ZAE000164562
("MRI" or the “Company")

UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2017

The Board of Directors (the ”Board”) of MRI are pleased to announce
the interim results for the 6 months ended 31 August 2017.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                 Unaudited    Unaudited  Audited 12-
                               to 6 months  6-months to   months to
                                    August       August    February 
                                      2017         2016        2017

                                     R’000       R’000       R’000
Revenue                                  -           -         187
Cost of Sales                            -           -           -
Other income                             -           -         646
Operating expenses                 (1 151)       (234)     (1 299)
Impairments                              -                       -
Operating loss                     (1 152)       (234)       (466)
Investment revenue                       -         549         567
Finance cost                         (291)       (769)     (1 088)
Loss before taxation               (1 443)       (454)       (987)
Taxation                                 -           -         (9)
Loss for the period                (1 443)       (454)       (996)
Other comprehensive income               -           -           -
Total comprehensive loss           (1 443)       (454)       (996)
(Loss) attributable to:
Owners of the parent               (1 443)       (454)     (1 037)
Non-controlling interests                -           -          41
Total comprehensive loss
attributable to:
Equity holders                     (1 443)       (454)     (1 037)
Non-controlling interests                -           -          41

Basic and diluted loss per          (0.17)      (0.05)      (0.12)
share

Weighted average number of         863 053     863 053     863 053
shares in issue (‘000)

Diluted weighted average           863 053     863 053     863 053
number of shares in issue
(‘000)


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                 Unaudited   Unaudited   Audited 28
                                 31 August   31 August     February
                                      2017        2016         2017

                                     R’000       R’000        R’000
Assets
Non-Current Assets
Property, plant and equipment            -           7            -
Intangible assets                        -           -            -
Goodwill                                 -           -            -
Deferred tax                             -           9            -
                                         -          16            -
Current Assets
Trade and other receivables             68          234          282
Cash and cash equivalents              107           85           29
                                       175          319          311
Total Assets                           175          335          311

Equity and Liabilities
Equity
Amount attributable to     equity    (5 642)      (3 617)     (4 199)
holders
Non-Controlling Interest                (64)        (105)        (64)
                                     (5 706)      (3 722)     (4 263)
Liabilities
Non-Current Liabilities
Deferred tax                              -           -            -
Other financial liabilities               -       2 664            -
                                          -       2 664            -
Current Liabilities
Other financial liabilities            4 792         450       3 324
Trade and other payables               1 089         943       1 250
Deferred income                            -           -           -
                                       5 881       1 393       4 574
Total Equity and Liabilities             175         335         311


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                       Share       Reverse   Capital     Reserve   Equity due   Retained         Amount          Non-      Total
                     capital   Acquisition   Reserve         for    to change   earnings   attributable   Controlling     equity
                                  Reserves               capital           in                 to Equity      Interest
                                                           based    ownership                   Holders
                                                        payments

                      R’000          R’000     R’000       R’000                   R’000          R’000        R’000       R’000
Balance at 28
February 2015
(restated)           83 024              -     5 000         559            -    (63 279)        25 304         (973)     24 331
Total
comprehensive                                                               -
loss for the
period                    -              -         -           -                 (28 003)       (28 003)         (91)    (28 094)
Issue of shares       1 996              -         -           -            -          -          1 996            -       1 996
Purchase of
additional
shareholding in
subsidiary                                                             (2 459)         -        (2 459)           959     (1 500)
Balance at 29
February 2016        85 020              -     5 000         559       (2 459)   (91 282)       (3 162)          (105)    (3 267)
Total
comprehensive
loss for the
period                    -              -         -           -                  (1 037)       (1 037)            41       (996)
Share-based
payment charges
reversed                  -              -         -        (559)                    559                            -
Balance at 28
February 2017        85 020              -     5 000           -       (2 459)   (91 760)         (4199)          (64)    (4 263)
Total
comprehensive
loss for the
period                    -              -         -           -                  (1 443)        (1 443)            -     (1 443)
Release on Non-
Controlling
Interest on share
purchase                  -              -         -           -                       -              -             -          -
Issue of shares           -              -         -           -                       -              -             -          -
Balance at  31
August 2017          85 020              -      5 000          -       (2 459)   (93 203)         (5642)          (64)    (5 706)


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                 Unaudited     Unaudited   Audited 12-
                                  6-months      6-months     months to
                                 to August     to August      February
                                      2017          2016          2017

                                     R’000         R’000         R’000
Cash flows from operating
activities                          (1 390)         (568)         (834)
Cash flows from investing
activities                              -             -          9 772
Cash flows from financing
activities                           1 468           219        (9 343)

Total cash movement for the
period                                  78          (349)         (405)
Cash and cash equivalents at
the beginning of the period             29           434           434
Cash and cash equivalents at
end of the period                      107            85            29


COMMENTARY

1. BASIS OF PREPARATION

These condensed consolidated interim financial statements have been
prepared by NR Preston, the Financial Director in accordance with
IAS 34: Interim Financial Reporting, the framework concepts and the
recognition requirements of International Financial Reporting
Standards (“IFRS”), the SAICA Financial Reporting Guides as issued
by the Accounting Standards Committee and Financial Reporting
Pronouncements issued by the Financial Reporting Standards Council
and the requirements of the South African Companies Act, (Act 71 of
2008), as amended, and the Listings Requirements of the JSE
Limited.

The financial statements have been prepared using accounting
policies that comply with IFRS and which are consistent with those
applied in the preparation of the audited financial statements for
the year ended 28 February 2017.

These condensed consolidated interim financial statements have not
been audited or reviewed by the Company’s external auditor.


2. FINANCIAL RESULTS AND FUTURE PROSPECTS

After closing down the coal operation, the Company focused on
eliminating all corporate costs and maintaining the Company as a
cash shell. The Board is continuing its discussions regarding the
proposed re-capitalisation of the Company, the terms of which will
be announced as soon as these have been agreed. Creditors
subordinated their claims and provided support in order to maintain
the Company's solvency and liquidity and going concern.


3. HEADLINE LOSS PER SHARE

Reconciliation of losses to headline losses attributable to equity
holders of the parent:

                                     Unaudited        Unaudited       Audited 12-
                                   6-months to      6-months to         months to
                                   August 2017      August 2016     February 2017
                                                                             
Loss per share (cents)                  (0.17)           (0.05)            (0.12)

Diluted loss per share
(cents)                                 (0.17)           (0.05)            (0.12)

Headline loss per share  
(cents)                                 (0.17)           (0.05)            (0.12)

Diluted headline loss per
share                                   (0.17)           (0.05)            (0.12)

Headline Loss calculation
(Loss) for the period                  (1 442)            (454)           (1 037)


Headline loss                          (1 442)            (454)           (1 037)

Weighted average number of
shares in issue (‘000)                 863 053          863 053           863 053

Actual number of shares in
issue (‘000)                           863 053          863 053           863 053

There are no dilutionary instruments in issue.


4. CHANGES IN SHARE CAPITAL

Since the last reporting period there have been no changes in
issued share capital.


5. EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no events after the reporting period.


6. OTHER FINANCIAL LIABILITIES

In early 2017, an angel investor re-capitalised the Company,
through a subordinated debt facility of R2.88 million, carrying
interest at a rate of 12% per annum, in order to settle claims and
provide support so as to maintain the Company’s solvency and to
ensure that the Company is able to continue operating as a going
concern. The subordinated debt facility is expected to be repaid
from the proceeds of a proposed rights offer to be undertaken by
MRI as detailed in the MRI 2017 annual report. The remaining
increase in other financial liabilities relates to trade payables
in the ordinary course of business.


7. CHANGES TO THE BOARD

Since the prior reporting period, the following changes to the
Board have taken place:

• Mr L Albinski resigned as a Non-Executive Director on 3 May
  2016; and
• With effect from 7 September 2017:
  o Mr A Collins was appointed as an Independent Non-
    Executive Director;
  o Mr MJ Miller was appointed as Chief Executive Officer;and
  o Mr R Tait was appointed as Non-Executive Chairman.


8. GOING CONCERN

The financial period under review reflects a challenging financial
period, with a net loss after tax of R1.44 million. The directors
are of the opinion that the Company will require additional funding
within the next 12 months in order to meet its commitments as they
fall due, with no revenue generating operations. These conditions
indicate the existence of a material uncertainty which may cast
doubt about the Company’s ability to continue as a going concern.
The Board, however, remains confident that the Company retains the
continued support of its major shareholders to provide additional
funding should other sources not be forthcoming.

The directors have a reasonable expectation, having regard to the
current status and the future strategy of the Company, that the
Company will have sufficient resources to continue as a going
concern and have therefore concluded that it is appropriate to
prepare the financial statements on a going concern basis.
Accordingly, the financial statements do not include the
adjustments that would result if the Company was unable to continue
as a going concern.


9. DIVIDENDS

No dividend was declared for the interim financial period ended
31 August 2017 (2016: Nil).


29 November 2017
Johannesburg

R Tait                      MJ Miller
Non-executive Chairman      Chief Executive Officer


CORPORATE INFORMATION

Postal address: PO Box 1823, Bedfordview, 2008

Registered and Physical address: 1St Floor St James Office Park,
76 Concorde Road East, Bedfordview, Gauteng, 2008

Tel no:+27 (0) 11 036 3100
Fax no:+27 (0) 86 654 6818
Web: www.minerestoration.co.za

Board of Directors: Q George*, C Roed*, R Tait# (Chairman),
Caddy*, N Preston (FD), M Miller (CEO), A Collins*.
(#Non-Executive, * Independent Non-Executive)

Company Secretary: Neil Esterhuysen & Associates Inc

Transfer Secretaries: Computershare Investor Services (Pty)
Limited, 2nd Floor, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196, PO Box 61051, Marshalltown 2107

Auditor: Grant Thornton Johannesburg Partnership

Corporate and Designated Adviser: Questco Corporate Advisory
Proprietary Limited

Date: 29/11/2017 05:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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