| Mon 20 Aug 2007, 17:10 | | MVL - Mvelaphanda Resources Limited - Trading Stat |
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MVL
MVL
MVL - Mvelaphanda Resources Limited - Trading Statement
MVELAPHANDA RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1980/001395/06)
Share code: MVL & ISIN: ZAE000050266
TRADING STATEMENT
In terms of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they are reasonably certain that the
financial results for the current reporting period will differ by more than 20%
from those of the previous corresponding period. In light of the aforementioned
requirements, shareholders are advised that Mvelaphanda Resources Limited
("Mvela Resources" or "the group") expects a headline loss per share of between
1,100 cents and 1,300 cents and a basic loss per share of between 1,100 cents
and 1,300 cents for the year ended 30 June 2007. This compares with reported
headline earnings per share of 1,663 cents and reported basic earnings per share
of 1,594 cents for the comparable period ending 30 June 2006.
The expected decline in earnings is primarily attributable to the fair value
adjustment to the group`s investment in Gold Fields arising mainly from the 32%
decline in Gold Fields` share price during the year-ended 30 June 2007. The fair
value adjustment has had no impact on the group`s cash position. International
Financial Reporting Standards ("IFRS") accounting treatment of the Afripalm
Transaction, pursuant to which Mvela Resources issued 40 million ordinary, 35
million "A" ordinary shares and 10 million options to Afripalm Resources as set
out in the circular dated 1 February 2007, also had a negative impact on
earnings, despite the positive reception to the transaction by shareholders and
the subsequent increase in Mvela Resources` share price.
Shareholders are advised that this trading statement is based on preliminary
information that has not yet been reviewed by Mvela Resources` external
auditors.
In compliance with the listing requirements of the JSE Limited, the group
financial results for the year-ended 30 June 2007 will be reported in accordance
with IFRS.
The group results for the year-ended 30 June 2007 are expected to be released on
or about 03 September 2007.
ENDS
Johannesburg
20 August 2007
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 20/08/2007 17:10:02 Produced by the JSE SENS Department.
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