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Change Statement, Posting Announcement and Notice of Annual General Meeting
CHROMETCO LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE007020249
("Chrometco" or "the Company")
CHANGE STATEMENT, POSTING ANNOUNCEMENT AND NOTICE OF ANNUAL
GENERAL MEETING
Shareholders of the Company (“Shareholders”) are hereby advised that the Company’s
annual report incorporating the full audited consolidated annual financial statements of the
Company for the year ended 28 February 2019 (“Integrated Annual Report”) and the notice
of the annual general meeting of the Company (“AGM”) was dispatched to Shareholders
today, 3 July 2019, and contains the following changes to the reviewed results which were
announced on SENS on Tuesday, 4 June 2019:
Changes in the Consolidated Statement of Financial Position as at 28 February 2019
The following changes relating to the 2019 Statement of financial position were made:
- Impairment of Goodwill of R40.4 million after the SENS results were released, this
was due to the impact of the decrease in the current chrome price on the long term
forecasted chrome prime. This resulted in a decrease in Total Assets of 2.7% and an
increase in the accumulated losses of 57.1%. The full goodwill impairment was
allocated to the owners of the parent.
- There was a reclassification between the deferred tax liability and the tax payable
(included in Trade and other payables) amounting to R5.0 million, resulting in a
decrease the deferred tax liability of 4.6% and increase in trade and other payables
of 1.3%.
- The change in ownership between Accumulated loss and Non-controlling interest
was restated by R3.3 million to R40.8 million.
Reviewed
results as at
28 February Final Audited as
2019 issued on results as at 28 Absolute
SENS February 2019 Change
R'000 R’000 %
ASSETS
Non-current assets 1,062,512 1,022,047 9.6%
Tangible assets 975,051 975,051
Intangible assets - -
Goodwill 40,465 - 100.0%
Other financial assets 35,421 35,421
Deferred taxation asset 3,524 3,524
Environmental rehabilitation 8,051 8,051
obligation investments
Current assets 418,324 418,324
Trade and other receivables 46,430 46,430
Inventory 112,776 112,776
Cash and cash equivalents 45,611 45,611
Non-current assets held-for-sale 213,507 213,507
Total assets 1,480,836 1,440,371 2.7%
EQUITY AND LIABILITIES
Capital and reserves 561,993 521,528
Stated capital 388,512 388,512
Accumulated losses (65,188) (102,380) 57.1%
Attributable to equity owners of the parent 323,324 286,132 11.5%
Non-controlling interest 238,669 235,396 1.4%
Non-current liabilities 304,540 299,499 1.6%
Deferred taxation liability 110,201 105,160 4.6%
Borrowings 97,016 97,016
Other financial liabilities 42,666 42,666
Finance lease liability 32,287 32,287
Environmental rehabilitation provision 22,370 22,370
Current liabilities 614,303 619,344 0.8%
Trade and other payables 390,545 395,586 1.3%
Cash and cash equivalents – structured 97,634 97,634
finance facility
Borrowings 22,282 22,282
Finance lease liability 59,814 59,814
Non-current liabilities held-for-sale 44,028 44,028
Total equity and liabilities 1,480,836 1,440,371 2.7%
Changes in the Consolidated Statement of Comprehensive Income for the year ended
28 February 2019
The changes in the Consolidated statement of Comprehensive income is due to the
following adjustments:
- Impairment of goodwill as described above.
- Reclassification of amortisation to income from discontinued operations of R0.7
million
- Reclassification of expenses from Finance charges to Other income and expenses
due to incorrect classification on the Statement of Comprehensive Income.
Loss per share increased from -2.05 cents per share to -3.86 cents per share as results of
the impairment of goodwill. Headline loss per share remained unchanged.
Reviewed Final
results for the audited
year ended results for Absolute
28 Feb 2019 the year Change
issued on ended 28
SENS Feb 2019
R'000 R'000 %
Revenue 1,307,564 1,307,564
Cost of sales (1,062,856) (1,061,675) 0.1%
Gross profit 244,708 245,889 0.5%
Depreciation and amortisation (168,439) (167,772) 0.4%
Other income 10,875 6,240 42.6%
Other expenses (99,236) (84,206) 15.1%
Salaries (56,997) (56,997)
Professional fees (19,712) (19,712)
Maintenance expenses (1,224) (1,224)
Impairments (8,738) (49,203) 463.1%
Income from discontinued operation 4,441 3,774 15.0%
Gain on bargain purchase - -
Investment income 1,274 1,274
Finance charges (36,492) (48,068) 31.7%
Loss before tax (129,540) (170,005) 31.2%
Taxation 16,334 16,334
Loss for the year (113,206) (153,671) 35.7%
Other comprehensive income - -
Total comprehensive loss for the year (113,206) (153,671) 35.7%
Attributable to:
Owners of the parent (45,435) (85,900) 29.1%
Non-controlling interest (67,771) (67,771)
Basic loss per share (cents) (2.05) (3.87) 89%
Diluted loss per share (cents) (2.05) (3.87) 89%
Headline loss per share (cents) (1.86) (1.86)
Changes in the Consolidated Statement of Comprehensive Income for the year ended
28 February 2018
The changes in the Consolidated statement of Comprehensive income is due to the
following adjustments:
- A change in accounting policy which affected the 2018 published results, resulting in
a R7.8 million reclassification from Other expenses to Cost of Sales.
Audited
results RESTATED
For the Audited results
year for the year
ended 28 ended 28 Feb Absolute
Feb 2018 2018 change
R'000 R'000 %
Revenue 10 336,764 336,764
Cost of sales (254,015) (261,834) 3.1%
Gross profit 82,749 74,930 9.4%
Depreciation and amortisation (46,953) (46,953)
Other income 10,897 10,897
Other expenses (19,844) (12,025) 39.4%
Salaries (16,833) (16,833)
Professional fees (7,186) (7,186)
Maintenance expenses (2,870) (2,870)
Impairments 11 (153,530) (153,530)
Income from discontinued operation - -
Gain on bargain purchase 9,923 9,923
Loss before interest and tax (143,648) (143,648) 0%
Changes in the Consolidated Statement of Cash Flows for the year ended 28 February 2019
The changes in the Consolidated Statement of Cash Flows is due to the following adjustments:
- Non-cash finance charge included in Settlement of Other financial liabilities.
Reviewed
results for
the year
ended Final audited Absolute
28 Feb 2019 results for the Change
issued on year ended 28
SENS Feb 2019
R'000 R'000 %
Cash flows from operating activities
Cash utilised by operations and 256,010 267,585 4.5%
exploration activities
Operating profit before working 98,000 109,575 11.8%
capital changes
Working capital changes 158,010 158,010
Interest received - -
Finance cost - -
Tax paid (3,709) (3,709)
Net inflow from operating activities 252,301 263,870 4.6%
Cash flows from financing activities
Shares issued - -
Group loan repayment - -
Finance lease payments (76,041) (76,041)
Borrowings - settled on acquisition - -
Repayment of borrowings (38,446) (38,446)
Settlement of other financial liabilities (23,396) (34,972) 49.5%
Borrowings obtained 25,058 25,058
Drawdown on bank facility 13,009 13,009
Net cash outflow from financing activities (99,815) (111,392) 11.6%
Changes in the Consolidated Statement of Changes in Equity for the year ended 28
February 2019
The changes in the Consolidated Statement of Changes in Equity is due to the following
adjustments:
- Change in ownership resulting in an adjustment between Accumulated Losses and
Non-controlling interest. See above for more detail.
- Effect of changes in the Consolidated Statement of Comprehensive Income on the
Statement of Changes in Equity
Stated Accumulate Non- Total
Capital d loss controlling
Interest
R’000 R’000 R’000 R’000
Balance at 28 February 388,512 (49,607) 176,301 515,206
2018
Reviewed as at -
28 Feb 2019 issued on
SENS
Non-controlling interest - - (67,771)
share of loss for the year (67,771)
Total comprehensive - (45,435) - (45,435)
loss for the year
Transaction with - 167,218 167,218
shareholders: -
Conversion of
borrowings to loans
Transactions with a - 29,854 (37,079) (7,225)
shareholder: change in
share holding
- (65,188) 561,993
Balance at 28 February 388,512 238,669
2019
Stated (Accumulate Non- Total
capital d loss)/ controlling
retained interest
earnings
Final audited as at 28
R'000 R'000 R'000 R'000
Feb 2019
Non-controlling interest - - (67,771)
share of loss for the year (67,771)
Total comprehensive - (85,900) - (85,900)
loss for the year
Transaction with - 167,218 167,218
shareholders: -
Conversion of
borrowings to loans
Transaction with - 40,897 (40,897) -
shareholders: change in
shareholding
Transaction with owners: - (8,338) - (8,338)
Change in estimate
Transactions with a - 568 545 1,113
shareholder: Gain on
acquisition
- - 521,528
Balance at 28 February 388,512 (102,380) 235,396
2019
Changes in the Notes to the financial statements for the year ended 28 February 2019
Reviewed
as at Audited as at 28
28 Feb 2019 Feb 2019
R'000 R'000
15. Borrowings
Opening balance 331,364 331,364
Interest Incurred 8,728 11,207
Loans obtained from related parties 25,058 25,058
Borrowings repayment (38,446) (38,446)
Loan settlement upon acquisition of Sail Resources (80,332) (80,332)
Loan acquired as part of transactions with 27,731 27,731
shareholders
Change in estimate 12,413 8,338
Transaction with IDC shareholder (167,218) (167,218)
Closing balance 119,298 119,298
25. Impairments
Impairment of non-current assets held for 5,062 5,062
sale
Impairment of other financial assets 3,676 3,676
Impairment of goodwill - 40,465
8,738 49,203
29.3 Headline loss per share
Loss after taxation attributable to equity (45,435) (85,900)
holders of the Group
Impairment, net of tax 4,044 44,509
Headline earnings (41,391) (41,391)
The Integrated Annual Report is also available on the Company’s website, at
www.chrometco.co.za as from today, 3 July 2019.
NOTICE OF AGM
Notice is hereby given that the AGM will be held at 10:00 on Thursday, 8 August 2019 at Sail
Minerals Pty Ltd, Unit 25 Sunninghill Office Park, Sunninghill, Johannesburg to transact the
business as set out in the notice of AGM which forms part of the Integrated Annual Report.
The date on which Shareholders must be recorded as such in the share register of the
Company to be eligible to vote at the AGM is Friday, 2 August 2019 with the last day to trade
being Tuesday, 30 July 2019.
Johannesburg
3 July 2019
Designated Advisor
PSG Capital
Date: 03/07/2019 05:36:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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