| Tue 19 Jun 2007, 17:14 | | MRF - Merafe- Modifications to the audited results |
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MRF
MRF
MRF - Merafe- Modifications to the audited results at 31 December 2006 and
notice of Annual General Meeting
Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
Share code: MRF
ISIN: ZAE000060000
("Merafe" or "the Company")
MODIFICATIONS TO THE AUDITED RESULTS AT 31 DECEMBER 2006 AND NOTICE OF ANNUAL
GENERAL MEETING
AUDITED RESULTS
With regard to the audited results for the twelve months ended 31 December 2006,
shareholders are advised that the annual financial statements will be
distributed to shareholders on Friday, 29 June 2007 and will contain the
following modifications to the reviewed results, which were released on SENS on
Tuesday, 6 March 2007. The annual financial statements were audited by KPMG Inc.
Their audit report is available for inspection at the Company`s registered
office.
Audited annual Reviewed results
financial statements published on SENS
R`000 R`000
INCOME STATEMENT
Income tax income / (expense) 24,991 46,053
Net profit after tax 139,143 160,205
Earnings per share (cents) 6 7
Headline earnings
per share (cents) 6 7
Comment: In terms of Merafe`s 31 December 2006 reviewed results (reviewed by
the Company`s auditors, KPMG Inc.) published on 6 March 2007, shareholders were
informed that in compliance with IAS 12, Merafe had raised a deferred tax asset
of R49.799 million for deductible temporary differences as it is probable that
sufficient future taxable income will be generated against which these temporary
differences can be utilised. This decision was taken based on advice from the
Company`s auditors.
Following the final review of the audited annual financial statements, the
Company`s auditors have now advised differently. The different advice relates to
the calculation of the deferred tax asset and does not reflect on the ability of
the Company to generate future taxable income against which the deferred tax
asset will be recovered. The effect of this is that the deferred asset raised
is reduced by R21.062 million, from R49.799 million to R28.737 million. This
change has no effect on Merafe`s profit before taxation or reported cash flows,
however, the change has reduced the net profit after taxation by R21.062 million
from R160.205 million to R139.143 million and has reduced the earnings per share
and headline earnings per share by 1 cent from 7 cents to 6 cents per share for
the year ended 31 December 2006.
BALANCE SHEET
Options for mineral rights 0 258
Property, plant and equipment 1,465,739 1,465,481
Total 1,465,739 1,465,739
Comment: A new order prospecting right has been issued in respect of these
options. R258,000 has therefore been reclassified as mineral rights and
transferred to property, plant and equipment.
Deferred tax 28,825 49,799
Comment: The value of the deferred tax asset raised was reduced by R21.062
million and normal tax payable of R88 000 has been reallocated to trade
payables.
Accumulated loss (72,717) (51,655)
Comment: The value of the deferred tax asset raised was reduced by R21.062
million
Trade and other payables 316,194 302,501
Provisions - 22,708
Non-distributable reserve 9,103 -
Total 325,297 325,209
Comment: The Downstream payment of R9 103 000 has been reallocated to a non-
distributable reserve and a tax payable of R88 000 has been reallocated to trade
and other payables. Provisions of 22.708 million have been reallocated to trade
and other payables as they are considered to be accruals.
STATEMENT OF CHANGES IN EQUITY
Accumulated loss (72,717) (51,655)
Comment: The value of the deferred tax asset raised was reduced by R21.062
million.
CASH FLOW STATEMENT
Cash flows from operating activities (85,091) (88,453)
Cash flows from operating activities (128,026) (131,388)
Cash flows from financing activities 294,375 297,737
Comment: Movement in the provision for closure and restoration of R3.362
million was reallocated from cash flows from financing activities to cash flows
from operating activities.
The Company will release an abridged results announcement, incorporating the
modifications above, on SENS tomorrow, 20 June 2007.
NOTICE OF THE ANNUAL GENERAL MEETING
Notice is hereby given that the 20th annual general meeting of Merafe`s
shareholders will be held at the registered office of the Company, First Floor,
Block B, 68 Wierda Road East; Wierda Valley on Thursday, 26 July 2007 at 11:00
to transact the business as stated in the annual general meeting notice forming
part of the annual financial statements.
Sandton
19 June 2007
Sponsor
Absa Capital - A division of Absa Bank Limited
Date: 19/06/2007 17:14:01 Produced by the JSE SENS Department.
