|
GVM
GVGVM
GVM - GVM Metals Limited - Report for the June 2007 quarter
GVM Metals Limited
(Previously, "Golden Valley Mines Limited")
(Incorporated and registered in Australia)
(Registration number ACN 008 905 388)
Share code on the JSE Limited: GVM & ISIN: AU000000GVM1
Share code on the Australian Stock Exchange Limited: GVM & ISIN: AU000000GVM1
("GVM" or `the Company")
REPORT FOR THE JUNE 2007 QUARTER
- Unaudited Group profit before interest and tax (EBIT) for the fourth
quarter was A$1.4 million and for the full year A$6.4 million.
- Cash balance at the end of the quarter was A$62 million. All borrowings
associated with the Nimag acquisition have now been repaid.
- Nimag (Pty) Ltd`s nickel magnesium alloy business again operated well
ahead of budget with EBIT for the quarter of A$2.5 million. The full year
EBIT was A$8.2 million.
- GBP24.7 million was raised by the issue of 37,352,941 GVM shares @ 34p and
a further 22,223,000 GVM shares @ 54p to various institutional investors
in London and South Africa. The funds will be used in the acquisition of
70% of Coal of Africa Limited (CoAL) - the entity owning the Mooiplaats
coal project situated two kilometres from the re-commissioned Camden Power
Station and adjacent to the rail line to the Richards Bay export coal
terminal - and project development.
- Issue of 11,250,000 GVM shares in June comprising the first equity payment
in the acquisition of 70% of CoAL.
- Placing of 8,333,333 GVM shares @ 30p to raise GBP2.5 million to purchase
50% of the Baobab Joint Venture.
- Allotment of 34,868,283 shares to Motjoli Resources resulting in GVM
acquiring the remaining 50% of the Baobab Joint Venture and the remaining
51% of the Holfontein coal project.
- Election of Nonkqubela Mazwai as Deputy Managing Director and Nchakha
Moloi, Steve Bywater and Graham Taggart as Non-Executive Directors of GVM.
- A total of 26,646 metres of drilling were completed during the quarter on
Holfontein and Mooiplaats. The results of the drilling are in line with
management expectations and will be released in the current quarter.
- Exploration expenditure for the quarter was A$2.7 million.
Discussion of Results
Nimag Group of Companies (100%)
The Nimag Group`s unaudited profit before interest and tax for the 2007
financial year was ZAR45 million (A$8.2 million). The nickel magnesium business
outperformed its budget and the smaller FeSiMag business and Metalloy business
also contributed to the Group`s profitability. Trading conditions continue to
be buoyant.
During the quarter, the remaining long term banking debt of A$1.5 million used
to finance GVM`s original acquisition of Nimag was repaid.
Coal Activities
Mooiplaats Coal Project
(70% on completion of the Coal of Africa Limited transaction)
The major drilling programme continued at Mooiplaats during the quarter and
23,867 metres (164 holes) were drilled. Seven thousand of the twenty-three
thousand hectares have now been drilled on `inferred` spacing densities. Infill
drilling has commenced on measured and indicated spacings. The goal of the
programme is to bring a minimum of 60 million tonnes of the resource into
measured and indicated categories. This tonnage represents ten years
consumption at the adjacent Camden Power Station.
SRK consultants are overseeing the drilling programme and a resource statement
will be released during the current quarter. The results of the drilling
programme to date are in line with management expectations.
Holfontein Coal Project
(was 49% - now 100% on completion of the Motjoli transaction)
During the fourth quarter, GVM acquired Motjoli Resources` majority stake in
the Holfontein coal project through the issue of 14,868,283 GVM shares. The
final contractual payment of ZAR18 million (A$3 million) was made to the
project`s vendors.
The Holfontein exploration programme, which started towards the end of 2006 to
confirm the structure, tonnage and quality of the Holfontein coal resource, was
completed during the fourth quarter. The geological model based on these
results is currently being updated and the laboratory analysis of the samples
is expected in August. Mine feasibility studies will commence once the
laboratory results have been received.
Having drilled a total of 67 boreholes in the Holfontein resource area at a
drilling density of just less than 14 boreholes per hectare for the 5 seam
resource, and 12 boreholes per hectare for the 4 seam resource, once modeling
is completed, resources will be in the measured category.
Geotechnical tests were conducted on the diamond drill cores to establish the
competence of the roof and floor conditions of both the 5 Seam and 4 Seam
resources. Initial perusal of the results has confirmed the low phosphorus
metallurgical qualities of the 5 Seam with no change in expected yields. The 4
seam resource still needs to be modelled analytically but the indications are
that the coal is suitable for SASOL or Eskom feedstock. Composite samples of
the 5 Seam are to be reconstituted to test for certain metallurgical
properties. Similarly, 4 Seam samples are to be reconstituted to test for the
suitability of the coal for Eskom Feedstock.
Baobab Coal Project
(was 50% - now 100% on completion of the Motjoli transaction)
The acquisition of Petmin`s 50% interest in the Baobab Coal Project was
completed during the fourth quarter through the issue of 8,333,333 GVM shares
to raise the required purchase price of GBP2.5 million (A$6 million). During
June, GVM acquired the remaining 50% of the Joint Venture held by Motjoli
Resources with the issue of 20,000,000 GVM shares.
Consultants have been mandated to assess railway and related transport
infrastructure from GVM`s Baobab and Thuli coal projects to the Richards Bay
and Maputo coal terminals. Management envisage that the consultants will
complete the project during the first quarter of the 2008 financial year.
During the 2007 fourth quarter, drilling companies performed site visits and
the approved drilling contractor is expected to commence drilling in August.
Thuli Coal Project (Limpopo)
(74%)
Potential drilling contractors have performed site inspections and drilling on
the Thuli coal project is expected to start in August. Data collected in the
data terrain model completed earlier in the year will be used in the
identification of drilling targets.
Preliminary discussions with various infrastructure participants are underway
to ascertain the export capacity of the coal to be mined in the Thuli Coal
Project. Management have received surface right valuations from independent
third parties mandated to assess the value the surface rights comprising the
Thuli coal project. Preliminary consultations with the current surface rights
owners on GVM`s potential acquisition of these rights have been undertaken. GVM
will continue these discussions together with the Thuli coal project drilling
programme during the next quarter.
Authorised by
Simon Farrell
Managing Director
31 July 2007
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
A copy of this announcement can be found on the GVM website: www.gvm.co.au
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
GVM Metals Limited
ABN Quarter ended ("current quarter")
98 008 905 388 30 June 2007
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating activities quarter (12 months)
$A`000 $A`000
1.1 Receipts from product sales and 20,098 54,118
related debtors
1.2 Payments for
(a)exploration and evaluation
(b)development (2,731) (2,954)
(c)production (13,387) (43,853)
(d)administration (817) (5,020)
1.3 Dividends received - -
1.4 Interest and other items of a 296 550
similar nature received
1.5 Interest and other costs of finance (424) (830)
paid
1.6 Income taxes paid (65) (960)
1.7 Other -
Net Operating Cash Flows 2,970 1,051
Cash flows related to investing
activities
1.8 Payment for purchases
of:(a)prospects
(b)equity investments (9,312) (9,937)
(c) other fixed assets (74) (200)
1.9 Proceeds from sale of:(a)prospects
(b)equity investments -
(c)other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities 0 422
1.12 Other (provide details if material) -
Net investing cash flows (9,386) (9,715)
1.13 Total operating and investing cash (6,416) (8,664)
flows (carried forward)
1.13 Total operating and investing cash (6,416) (8,664)
flows (brought forward)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, 60,036 74,216
options, etc.(net) -see note below
1.15 Proceeds from sale of forfeited
shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings (1,593) (3,239)
1.18 Dividends paid (0) (260)
1.19 Other (Exchange rate related
movements in foreign borrowings and
reserves)
Net financing cash flows 58,443 70,717
Net increase (decrease) in cash 52,027 62,053
held
1.20 Cash at beginning of quarter/year 10,074 50
to date
1.21 Exchange rate adjustments to item 3 1
1.20
1.22 Cash at end of quarter 62,104 62,104
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current
quarter
$A`000
1.23 Aggregate amount of payments to the parties included
in item 1.2 60
1.24 Aggregate amount of loans to the parties included in -
item 1.10
1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did not
involve cash flows
2.2 Details of outlays made by other entities to establish or increase
their share in projects in which the reporting entity has an
interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount Amount used
available $A`000
$A`000
3.1 Loan facilities 3,662 -
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A`000
4.1 Exploration and evaluation (2,500)
4.2 Development -
Total (2,500)
Reconciliation of cash
Reconciliation of cash at the end of the Current Previous
quarter (as shown in the consolidated quarter quarter
statement of cash flows) to the related $A`000 $A`000
items in the accounts is as follows.
5.1 Cash on hand and at bank 57,672 10,687
5.2 Deposits at call 4,384 -
5.3 Bank overdraft - (613)
5.4 Other (provide details)
- -
Total: cash at end of quarter (item 62,056 10,074
1.22)
Changes in interests in mining tenements
Tenement Nature of Interest at Interest at
reference interest beginning end of
(note (2)) of quarter quarter
6.1 Interests in
mining tenements
relinquished,
reduced or
lapsed
6.2 Interests in Tenement Nature of Interest at Interest at
mining tenements reference interest beginning end of
acquired or (note (2)) of quarter quarter
increased
Holfontein Transfer of 0% 100%
138 IS Mineral
Rights is
subject to
South
African
Department
of Minerals
and Energy
approval.
Tanga 648 The South 0% 100%
MS African
Wildgoose Department 0% 100%
577 MS of Minerals
and Energy
Ancaster has 0% 100%
501 MS approved
Voorburg the 0% 100%
503 MS transfer of
Cavan 508 the Mineral 0% 100%
MS Rights to
Jutland 536 GVM. 0% 100%
MS
Cohen 591 0% 100%
MS
Enfield 521 0% 100%
MS (consoli-
dation of
remaining
extent of
Enfield 474
MS,
Brosdoorrn
682 MS and
R/E of
Grootvlei
684 MS)
Albert 686
MS 0% 100%
Jolfre 584
MS 0% 100%
Kleinenberg
636 MS 0% 100%
Castle
Koppies 652 0% 100%
MS
Fanie 578
MS 0% 100%
Chase 576
MS 0% 100%
Fripp 645
MS 0% 100%
Bekaf 650
MS 0% 100%
Overvlakte
125 MS 0% 74%
Bergen Op
Zoom 124 MS 0% 74%
Semple 119
MS 0% 74%
Almond 120
MS 0% 74%
Voorspoed
836 MS 0% 74%
Stayt 183
M8 0% 74%
Riet 182 MS
0% 74%
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total Number Issue price Amount paid
number quoted per security up per
(see note 3) security
(cents) (see note
3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary 207,768,703 207,768,703
securities
7.4 Changes during
quarter
(a) Increases 37,352,941 37,352,941 34 pence 34 pence
through issues 8,333,333 8,33,333 30 pence 30 pence
22,223,000 22,223,000 54 pence 54 pence
34,868,283 34,868,283 30 cents 30 cents
10,000,000 10,000,000 30 pence 30 pence
1,250,000 1,250,000 40 pence 40 pence
181,818 181,818 11 pence 11 pence
(b) Decreases
through
returns of
capital, buy-
backs
7.5 +Convertible
debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options 21,842,326 - Exercise Expiry date
(description price See Note 6
and conversion See Note 6
factor)
7.8 Issued during 12,842,326 Nil Exercise Expiry date
quarter price See Note 6
See Note 6
7.9 Exercised Nil Nil
during quarter
7.10 Expired during Nil Nil
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ...................................... Date: 30 July 2007
(Director)
Print name: Simon Farrell
Notes
1 The quarterly report provides a basis for informing the market how the
entity`s activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional
information is encouraged to do so, in a note or notes attached to this
report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect
of interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage
interest and conditions precedent in the list required for items 6.1 and
6.2.
3 Issued and quoted securities: The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards
used do not address a topic, the Australian standard on that topic (if
any) must be complied with.
Issued and Quoted Securities as at 30 June 2007:
Number Number Exercise Expiry Date Lapsed Since
Issued Quoted Price End of
quarter
13,500,000 - A$0.50 30 September 2011 -
555,575 - GBP0.54 31 May 2009 -
786,751 - GBP0.34 17 May 2009 -
7,000,000 - A$1.25 30 September 2012 -
Date: 31/07/2007 11:24:02 Produced by the JSE SENS Department.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
