|
MTZ
MTZ
MTZ - Matodzi - Unaudited interim results for the six months ended 30 September
2007 and renewal of cautionary announcement
MATODZI RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1933/004523/06)
Share Code : MTZ & ISIN : ZAE000042412
("Matodzi" or "the Company" or "the Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 AND RENEWAL
OF CAUTIONARY ANNOUNCEMENT
ABRIDGED CONSOLIDATED INCOME Unaudited Reviewed Audited
STATEMENTS six months restated year ended
ended six months 31 March
30 ended 2007
September 30
2007 September
2006
Notes R`000 R`000 R`000
Revenue - 135 760 135 760
Total production costs - (66 685) (66 685)
Production costs - (65 184) (65 184)
Other non cash - (1 501) (1 501)
operating expenses
Operating profit - 69 075 69 075
Net finance costs 2 694 7 918 12 895
Profit on disposal of 3 - 682 897 684 442
subsidiary
Fair value adjustment 4 - - 2 000
of investment
properties
General and (4 510) (37 680) (38 031)
administrative expenses
Net (loss)/profit 5 (3 816) 722 210 730 381
before taxation
Income tax expense 6 - (20 874) (113 656)
Net (loss)/profit for (3 816) 701 336 616 725
the period
(Loss)/Profit
attributable to:
Minority interest 219 399 620 354 903
Equity holders of the (4 035) 301 716 261 822
parent
(3 816) 701 336 616 725
(Loss)/Earnings per 7
share - (cents)
Basic (loss)/earnings - (1.1) 81.4 70.7
(cents)
Diluted (loss)/earnings (1.1) 81.4 70.7
per share - (cents)
Number of ordinary 370 547 370 547 286 370 547 286
shares n issue 286
Weighted average number 370 547 370 547 286 370 547 286
of shares in issue 286
ABRIDGED CONSOLIDATED
BALANCE SHEETS Unaudited Reviewed Audited
six months restated year ended
ended six months 31 March
30 September ended 2007
2007 30 September
2006
Notes R`000 R`000 R`000
ASSETS
Non-current assets
Property, plant and 21 65 34
equipment
Investment property 3 310 1 310 3 310
Investments and loans 8 33 641 153 421 33 641
receivable
Total non-current 36 972 154 796 36 985
assets
Current assets
Trade and other - 896 835 -
receivables
Cash and cash 9 16 504 154 18 361
equivalents
Total current assets 16 504 896 989 18 361
Total assets 53 476 1 051 785 55 346
EQUITY AND LIABILITIES
EQUITY
Equity attributable to 38 934 364 479 42 969
equity holders
Minority interest 1 357 423 114 1 138
Total equity 40 291 787 593 44 107
LIABILITIES
Non-current
liabilities
Interest bearing 11 - - -
borrowings
Non-interest bearing 4 218 - 2 678
borrowings
Total non-current 4 218 - 2 678
liabilities
Current liabilities
Interest bearing 11 - 249 867 23
borrowings and loan
payable
Trade and other 8 967 14 325 8 538
payables
Total current 8 967 264 192 8 561
liabilities
TOTAL EQUITY AND 53 476 1 051 785 55 346
LIABILITIES
ABRIDGED CONSOLIDATED
CASH FLOW STATEMENTS Unaudited Reviewed Audited
six months restated year ended
ended six months 31 March
30 September ended 2007
2007 30 September
2006
Notes R`000 R`000 R`000
Cash flow (utilised (3 371) 5 962 (56 514)
in)/generated from
operating activities
Cash flow (utilised (4) 877 400 984 917
in)/generated from
investing activities
Cash flow generated 1 518 (903 563) (930 397)
from/(utilised in)
financing activities
Net decrease in cash (1 857) (20 201) (1 994)
and cash equivalents
Cash and cash 18 361 20 355 20 355
equivalents at
beginning of the
period
Cash and cash 9 16 504 154 18 361
equivalents at the end
of the period
STATEMENT OF CHANGES Share Share Accumulate Minority Total
IN EQUITY capital premium d interest R`000
R`000 R`000 loss R`000
R`000
Balance 31 March 2006 92 637 201 552 (231 426) 66 036 128 799
Net profit for the - - 301 716 399 620 701 336
period
Disposal of operations - - - (42 793) (42 793)
Balance 30 September 92 637 201 552 70 290 422 863 787 342
2006
Net loss for the - - (39 894) (44 717) (84 611)
period
- - (281 616) (377 (658
Dividends paid 008) 624)
Balance 31 March 2007 92 637 201 552 (251 220) 1 138 44 107
Net loss for the - - (4 035) 219 (3 816)
period
Balance 30 September 92 637 201 552 (255 255) 1 357 40 291
2007
1 BASIS OF PREPARATION
This report is prepared in accordance with recognition and measurement
requirements of International Financial Reporting Standards ("IFRS"), and the
preparation and disclosure requirements of IAS 34 on Interim Financial
Reporting. These accounting policies have been applied consistently to all
periods presented in these consolidated financial results.
Unaudited Reviewed Audited
six months restated year ended
ended six months 31 March
30 ended 2007
September 30 September R`000
2007 2006
R`000 R`000
2 NET FINANCE COSTS
Interest received 694 22 562 28 591
Interest on loans - (14 644) (15 696)
694 7 918 12 895
3 PROFIT ON DISPOSAL OF
SUBSIDIARY
Profit on disposal of - 682 897 684 442
subsidiary
The sale of Letseng
Diamonds (Proprietary)
Limited, a subsidiary of
Letseng Investment
Holdings South Africa
(Proprietary) Limited gave
rise to a profit on
disposal for the year.
4 FAIR VALUE ADJUSTMENT
Investment properties - - 2 000
External valuations have
been obtained for the
properties.
5 (LOSS)/PROFIT FOR THE
PERIOD IS STATED AFTER
TAKING INTO ACCOUNT THE
FOLLOWING:
Corporate fees on disposal - (5 013) (5 013)
of Letseng
Depreciation - (31) (62)
Staff costs - (4 523) (5 106)
6 INCOME TAX EXPENSE
Current tax - (19 979) (113 656)
Current year - (3 536) (21 398)
Secondary taxation on - - (94 252)
companies
Prior year withholding - - 1 994
taxation
Utilisation of prior year - (16 443) -
losses
Deferred tax
Current year - (895) -
- (20 874) (113 656)
7 (LOSS)/EARNINGS PER SHARE
Attributable (loss)/profit (4 035) 301 716 261 822
for the period
Reconciliation between
attributable (loss)/profit
and headline loss:
Attributable (loss)/profit (4 035) 301 716 261 822
Fair value adjustment of - - (2 000)
investment properties
impairment of loan to - - 4 800
minority shareholder
Profit on disposal of - (308 681) (309 528)
subsidiary
Headline loss (4 035) (6 965) (44 906)
Headline loss per share - (1.1) (1.9) (12.1)
(cents)
Weighted average number of 370 547 286 370 547 286 370 547 286
ordinary shares in issue
Diluted number of ordinary 370 547 286 370 547 286 370 547 286
shares in issue
8 INVESTMENTS AND LOANS
RECEIVABLE
Listed investments 33 641 33 641 33 641
Loans receivable - 119 780 -
33 641 153 421 33 641
The loans have been
recovered.
Listed investments consist
of 210 168 073 JCI
ordinary shares of R0.16,
which was the price at
which the shares were
suspended on the JSE
(2006: 210 168 073 JCI
shares at R0.16).
9 CASH AND CASH EQUIVALENTS
Cash balances 16 504 154 18 361
Matodzi has restricted
cash amounting to R426 000
(2006:R Nil).
10 EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS
Ordinary share capital
Authorised:
750 000 000 (2006: 750 000 187 500 187 500 187 500
000) ordinary shares of 25
cents each
Issued:
370 547 286 (2006: 370 547 92 637 92 637 92 637
286) ordinary shares of 25
cents each
Movements in issued share
capital
Total number of shares in 370 547 286 370 547 286 370 547 286
issue at beginning of
period
Total number of shares in 370 547 286 370 547 286 370 547 286
issue at end of period
Share premium
At beginning of the period 201 552 201 552 201 552
201 552 201 552 201 552
During the period under
review, the Company`s
share capital remained
unchanged at 750 000 000
ordinary shares of 25
cents each.
11 INTEREST-BEARING
BORROWINGS AND LOAN
PAYABLE
Loan payable - (249 867) (23)
Current portion of - 249 867 23
interest-bearing
borrowings and loans
- - -
Welsford
GOING CONCERN
Matodzi will be in a position to meet its obligations as and when they fall due.
Accordingly the directors continue to adopt the going concern basis in the
preparation of the financial statements.
SUBSEQUENT EVENTS
There have been no material events subsequent to the reporting period and before
the date of this report that need to be disclosed.
DIRECTORATE CHANGE
The following directorate change has taken place during the period under review:
Sello Mashao Rasethaba resigned on 30 October 2007.
Mr Rasethaba resigned as the Chief Executive Officer, a director and the public
officer of the Matodzi Group with effect from 30 October 2007. He moved on to
pursue new ventures outside of mining.
FURTHER RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the renewal of cautionary announcement released on SENS on 30 October
2007, Matodzi shareholders are advised that Matodzi is, subject to various
regulatory approvals, in the process of considering the distribution of some or
all of the JCI shares held by Matodzi to its shareholders as a dividend in
specie, which, if successfully concluded may have a material effect on the price
at
which Matodzi`s shares trade. Accordingly, Matodzi shareholders are advised to
continue to exercise caution when dealing in the Company`s shares until a
further announcement is made.
COMMENTARY TO THE INTERIM RESULTS
Matodzi has gone through a period of settling down after the disposal of Letseng
and is now posed to embark on its next venture.
Listed investments
210 168 073 ordinary JCI shares, constituting 9.5% of the issued share capital
of JCI. The value of Matodzi`s investment in JCI amounts to R33.6 million, based
on a share price of 16 cents per share ("cps"), which is the price at which the
JCI shares were suspended on JSE. Subsequent to JCI publishing its estimated net
asset value statement, the value of a JCI share will be substantially higher, in
the event of a merger between Randgold & Exploration Company Limited and JCI
being implemented.
New order prospecting rights
Matodzi has submitted applications to the Department of Minerals and Energy
("the DME") for the conversion of certain of its unused old order mineral rights
to new form prospecting rights. The portfolio of minerals includes diamonds,
gold, coal and other industrial minerals. The Group has been granted prospecting
rights over the following farms since year end:
Altefraai 425 L.R., Bokveld 12 MT, Havre 60 MT, Oorsprong 62 MT, Melbourne 34
LQ, Mooivlei 4 LP, Niemandsland 288 MR, Norfolk 101 MR, Reserve 284 LR and
Wellington 460 KR.
A 35% interest in White Water Gold (Proprietary) Limited ("WWG")
Matodzi previously owned gold rights covering the Nigel and Kimberley reefs,
which constitutes a "distal" part of the Witwatersrand Basin. Matodzi had
entered into an agreement with White Water Limited, Covenant Mining and Finance
(SA) (Proprietary) Limited ("Covenant Mining") and WWG, which was concluded in
the financial year ended 31 March 2007, whereby it sold the prospecting right
and certain surface right permits to WWG for a consideration of 35% of the
issued share capital of WWG. Furthermore, Matodzi will be a Black Economic
Empowerment ("BEE") partner with a 30% interest in White Water Exploration
(Proprietary) Limited, which intends to acquire and explore additional ground-
dip from Witnigel`s existing lease area.
Matodzi together with Covenant Mining are looking at alternatives to develop the
former Witnigel Gold Mine.
Investment activity
Matodzi will continue with its principal activities of sourcing and evaluating
investment opportunities in the resources sector and carry on as its main
activity, the exploration of its prospecting rights. The Company intends
embarking on new exploration projects and capitalising on the prospecting rights
that it currently holds.
Matodzi has implemented a strategic business plan to increase its exploration
programme and appoint an operations and technical resources candidate to take
the exploration programmes forward.
The nature of Matodzi`s business remains that of a mining investment company.
The strategy going forward is centred around:
The acquisition of a 57.1% stake held by JCI by a BEE company
The company is in discussions with its holding company, JCI, to rectify the
dilution of its BEE shareholding.
Continued exploration of new order prospecting rights
Matodzi is well positioned to take advantage of exploration opportunities which
exist in the current economic climate and has been informally approached by
various prospective partners and investors that have shown an interest in
participating with the Company, both on a project and equity basis going
forward.
Dividends
The company does not intend to declare any dividends, other than the 76 cents
dividend already declared and paid.
Partnership with other BEE partners
Matodzi is targeting emerging BEE recipients of new order prospecting rights.
Matodzi will jointly fund exploration programmes with these partners. This
business development and emerging BEE partnership programme will drive the
Company`s future growth.
For and on behalf of the board
Andrew Mlangeni Andile Reeves Nkuhlu
Chairman Chief Operating Officer
14 December 2007
Johannesburg
Sponsor
Sasfin Capital
(A division of sasfin Bank Limited)
Directors: A Mlangeni (Independent Non-Executive Chairman), AR Nkuhlu (Chief
Operating Officer),
PH Gray (Non-Executive), TS Kwinana (Non-Executive), LA Maxwell (Non-Executive);
S Swana (Non-Executive)
Registered office and Legal
Adviser and Secretary
Ms BE Morton
28 Harrison Street
Johannesburg 2001
(PO Box 11165 Johannesburg
2000)
Transfer secretaries
Computershare Investor
Services 2004 (Proprietary)
Limited
70 Marshall Street,
Johannesburg, 2001
(PO Box 61051, Marshalltown,
2107)
Investor relations and
communications advisors
Zanenza Communications
(Proprietary) Limited
No. 10 Ridgeview Office Park,
248 Kent Avenue, Randburg,
2194
www.matodzi.co.za
Date: 14/12/2007 10:37:03 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,
information disseminated through SENS.
| 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 ] | |||||||||||||
|
|||||||||||||
