Wrap Text
Unreviewed Condensed Consolidated Financial Results for the six months ended 31 August 2018
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE007020249
("Chrometco" or "the Group")
UNREVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS
ENDED 31 AUGUST 2018
Condensed consolidated statement of financial position
Unreviewed Reviewed
Audited as at
as at 31 as at 31
28 Feb 2018
Aug 2018 Aug 2017
R'000 R'000
Assets
Non-current assets 1,142,935 903,540 1,129,336
Property, plant and
equipment 1,017,277 817,027 962,653
Intangible assets 15 582 16,194 15,857
Goodwill 40,465 8,314 40,465
Other financial
assets 39,056 55,159 82,844
Deferred taxation 21,155 1,989 21,722
Environmental
rehabilitation
obligation
investments 9,400 4,857 5,796
Current assets 327,300 262,316 355,722
Trade and other
receivables 28,022 58,227 24,470
Inventory 134,385 65,325 164,088
Cash and cash
equivalents 33,152 9,243 34,885
Non-current disposal
group held-for-sale 131,742 129,522 132,279
Total assets 1,470,235 1,165,856 1,485,059
EQUITY AND
LIABILITIES
Capital and reserves 708,665 440,151 515,206
Stated capital 388,512 388,512 388,512
(Accumulated loss)/
retained earnings (12 180) (37 489) (49,607)
Non-controlling
interest 332,333 89,127 176,301
Non-current
liabilities 344,031 545,968 570,726
Deferred taxation 158,700 132,273 139,368
Borrowings 5 84,425 330,977 331,364
Other financial
liability 60,675 74,451 53,053
Finance lease
liability 27,763 6,014 34,961
Environmental
rehabilitation
provision 12,468 2,253 11,980
Current liabilities 417,539 179,737 399,127
Cash and cash
equivalents - - 85,547
Trade and other
payables 326,529 142,440 232,555
Finance lease
liability 61,320 3,507 44,508
Non-current disposal
group held-for-sale 29,690 33,790 36,517
Total equity and
liabilities 1,470,235 1,165,856 1,485,059
Condensed consolidated statement of comprehensive income
Audited 12
Unreviewed 6 Reviewed 6
months
months ending months ending
ending 28
31 Aug 2018 31 Aug 2017
Feb 2018
R'000 R'000 R'000
Revenue 715,792 18,221 336,764
Cost of sales (467,133) (19,860) (254,015)
Gross profit/(loss) 248,659 (1,639) 82,749
Amortisation and
depreciation (100,632) (10,550) (46,953)
Other income 6,852 1,064 10,897
Other expenses (47,059) (2,319) (19,844)
Salaries (48,265) (1,912) (16,833)
Professional fees (10,598) (3,457) (7,186)
Maintenance expenses (1,408) (57) (2,870)
Gain on bargain
purchase - 9,923 9,923
Impairment (216) (120,535) (153,530)
Profit/(loss) before
interest and taxation 47,332 (129,482) (143,647)
Investment income 3,321 598 8,337
Finance charges (12,674) (2,133) (15,479)
Profit/(loss) before
taxation 37,979 (131,017) (150,789)
Taxation (10,751) 29,785 39,435
Profit/(loss) for the
year 27,228 (101,233) (111,354)
Other comprehensive
income - - -
Total comprehensive
income loss for the
year - (101,233) (111,354)
Profit/(loss) and
total comprehensive
profit/(loss) for the
year 27,228 - -
Attributable to owners
of the parent 1,653 (67,204) (79,323)
Attributable to non-
controlling interest 25,575 (34,028) (32,031)
Basic profit/(loss)
per share (cents) 0.09 (13.73) (9.58)
Diluted profit/(loss)
per share (cents) 0.09 (13.73) (9.58)
Headline profit/(loss)
per share (cents) 7 0.10 (1.62) (1.56)
Diluted headline
profit/(loss) per
share (cents) 7 0.10 (1.62) (1.56)
Condensed consolidated statement of cash flows
Unreviewed Reviewed 6 Audited 12
6 months months months
ending 31 ending 31 ending 28
Aug 2018 Aug 2017 Feb 2018
R'000 R'000 R'000
Cash flows from operating
activities
Cash utilised by operations and
exploration activities 275,788 1,748 87,047
Operating profit/(loss) before
working capital changes 148,333 (8,863) 36,571
Working capital changes 127,455 10,611 50,476
Interest received - 598 4,695
Finance cost - (88) -
Tax paid (5,617) (629) (2,663)
Net inflow from operating activities 270,171 1,629 89,079
Cash flows from investing activities
Property, plant and equipment
additions (111,115) (11,338) (114,855)
Sale of property, plant and
equipment 70 - -
Contributions to Guardrisk (3,139) (1,483) (2,152)
Cash obtained as part of
acquisitions - 16,118 16,118
Net loans raised (28,639) (1) (8,166)
Net cash (outflow)/inflow from
investing activities (142,823) 3 296 (109,054)
Cash flows from financing activities
Shares issued - 5,000 5,188
Group loan drawdown/(repayment) 7,622 (3,000) (3,000)
Finance lease payments (41,027) (242) (17,489)
Deferred tax settled 203 - -
Borrowings - settled on acquisition - - (5,514)
Loans raised (10,334) - (12,431)
Net cash (outflow)/inflow from
financing activities (43,536) 1,758 (33,245)
Net increase/(decrease) in cash and
cash equivalents 83,812 6 683 (53,221)
Cash and cash equivalents at
beginning of year (50,660) 2,560 2,560
Cash and cash equivalents at end of
year 33,152 9,243 (50,660)
Condensed consolidated statement of changes in equity
(Accumulate
Non-
Stated d loss)/
controllin Total
capital retained
g interest
earnings
R'000 R'000 R'000 R'000
Balance at 1 March
2017 158,062 29,715 21,239 209,016
Shares issued 230,450 - - 230,450
Acquisition of
subsidiary with
non-controlling
interests - - 132,702 132,702
Non-controlling
interest share of
loss for the six
months ended 31
August 2017 - - (34,028) (34,028)
Total
comprehensive loss
for the six months
ended 31 August
2018 - (67 204) - (67 204)
Balance at 31
August 2017 388,512 (37 489) 119,913 470,936
Non-controlling
interest share of
profits for the
six months ended
28 February 2018 - - 1,997 1,997
Transaction with
Onicastar - - 54,391 54,391
Total
comprehensive loss
for the six months
ended 28 February
2018 - (12,118) - (12,118)
Balance at 28
February 2018 388,512 (49 607) 176,301 515,206
Non-controlling
interest share of
profits for the
six months ended
31 August 2018 - - 25,575 25,575
Total
comprehensive
profit for the six
months ended 31
August 2018 - 1,653 - 1,653
Transaction with
6
shareholders - 35,774 130,456 166,230
Balance at 31
August 2018 388,512 (12 180) 332,332 708,664
1. Nature of business
The Group is a mining and exploration company which focuses on Chrome mining
in South Africa.
2. The interim condensed consolidated financial statements for the period
ended 31 August 2018 have been prepared by the Group’s financial reporting
team, supervised by Chrometco’s Chief Financial Officer, Mr. Marcel Naude
CA(SA) and approved by the Chrometco’s board of directors. The directors
take full responsibility for the preparation of the report and that the
financial information has been correctly extracted from the underlying
interim financial statements.
3. Basis of preparation
The condensed consolidated financial statements for the six months ended 31
August 2018 have been prepared in accordance with IAS 34 Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee, the Financial Reporting Pronouncements as issued by the
Financial Reporting Accountants Council, the JSE Limited’s Listings
Requirements and the South African Companies Act, 71 of 2008, as amended.
The accounting policies and methods of computation applied in the preparation
of the condensed consolidated financial statements are in terms of IFRS and
are consistent with those applied in the previous consolidated annual
financial statements.
4. Unreviewed and unaudited
The condensed consolidated financial statements for the period ended 31
August 2018 have not been reviewed or audited. The condensed consolidated
financial statements presented in this SENS announcement do not include the
information required pursuant to paragraph 16A(j) of IAS 34.
5. Borrowings
Borrowings roll forward
31-Aug-18 28-Feb-18 31-Aug-17
R'000 R'000 R'000
Opening balance: 331,364 330,977 -
- IDC loan 252,484 252,520 -
- Related party loan 78,880 78,457 -
Interest incurred 4,541 11,513 1,874
Acquired in a business combination - - 329,103
Loan issued - - -
Change in estimate (6,384) (11,126) -
Transaction with a shareholder (Note
6) (245,096) - -
Closing Balance 84,425 331,364 330,977
- IDC loan 84,425 252,484 252,520
- Related party loan - 78,880 78,457
6. Transaction with shareholders
On 18 May 2018, the final suspensive conditions of the Umnotho WeSizewe
Resources (Pty) Ltd (Black Chrome Operations) transaction were completed.
Control of this operation was obtained on 18 July 2017, as disclosed in the
Annual Financial Statements for the year ended 28 February 2018.These
conditions resulted in the conversion of the IDC loan and the acquisition of
the assets and liabilities of Sail Resources. These transactions have been
recorded as transactions with shareholders.
Conversion of the IDC loan
As part of the business rescue restructuring, R166 million of the borrowings
owed to the Industrial Development Corporation were exchanged for equity of
Umnotho WeSizewe Resources (Pty) Ltd. These were converted for both
Preference shares and Ordinary shares. Consequently, these increased the Non-
controlling interest of the Umnotho WeSizewe Resources subsidiary.
Inclusion of the Sail Resources assets and liabilities
The Sail Resources Loan was previously reported as a related party loan. In
the current period, ownership was obtained of the Sail Resources assets and
liabilities. This constitutes an acquisition of assets and liabilities, and
is not a business combination. The intragroup loans previously recognised of
R79 million were eliminated on consolidation.
7. Headline loss per share and diluted headline loss per share
31-Aug-18 31-Aug-17 28-Feb-18
Profit/(loss) after taxation attributable
to equity holders of the Group 1,653 (67,204) (79,323)
Gain on bargain purchase - (9,923) (9,923)
Impairment, net of tax 156 69,216 74,925
Change in estimate - - 1,403
Headline earnings/(loss) 1,809 (7,911) (12,918)
Weighted average number shares in issue
1,902,103 489,549 828,182
Diluted weighted average number shares in
issue 1,902,103 489,549 828,182
Headline loss per share (cents) 0.10 (1.62) (1.56)
Diluted headline loss per share (cents) 0.10 (1.62) (1.56)
8. Going concern
The financial statements have been prepared on the basis of accounting
policies applicable to a going concern. This basis presumes that funds will
be available to finance future operations and that the realisation of assets
and settlement of liabilities, contingent obligations and commitments will
occur in the ordinary course of business.
The ability of the company to continue as a going concern is dependent on a
number of factors. The most significant of these is that the directors
continue to procure funding for the ongoing operations for the company.
9. Mineral Reserves and Mineral Resources
There have been no published changes to the Mineral Reserves and Mineral
Resources. These have remained unchanged to those included in the Annual
Financial Report dated 28 February 2018.
10. Dividends
No dividend has been declared or paid for the period (28 Feb 2018: R nil).
11. Changes to the Board
During the period, there have been no changes to the Board.
Signed on behalf of the Board of Directors
Marcel Naude CA(SA)
Chief Financial officer
Johannesburg
30 November 2018
Directors:
BL Sibiya+ (Chairman), NL Waisberg (CEO), MC Naude (CFO), NP Thomas+,
LJ Jordaan+
+ independent non-executive
CORPORATE INFORMATION
Designated Advisor:
PSG Capital
Company Secretary:
The Green Board CC
Registered Office
Unit 25 Sunninghill Office Park
4 Peltier Drive
Sunninghill
Gauteng
2196
Postal address
PO Box 1553
Kelvin
2054
Auditors
Moore Stephens
Date: 30/11/2018 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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