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PAM
PAM
PAM - Palabora Mining Company Limited - Trading Update
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
JSE Code: PAM & ISIN: ZAE000005245
("Palabora" or "the Company")
TRADING UPDATE
As required by the Listings Requirements of the JSE Limited, shareholders are
advised that Palabora`s financial results for the year ended 31 December 2007
are expected to be as follows:
- Operating earnings (excluding the impairment reversal) between R 1 165
million (2 410 cents per share) and R 1 200 million (2 482 cents per
share).
- Basic earnings (excluding the impairment reversal) between R 690 million (1
427 cents per share) and R 715 million (1 479 cents per share).
- Headline earnings between R 689 million (1 425 cents per share) and R 714
million (1 477 cents per share).
- Cash and cash equivalents between R 824 million and R 853 million.
The above guidance compares with operating profit of R 1 148 million (profit of
2 375 cents per share), basic earnings of R 467 million (earnings of 1 291 cents
per share), and headline earnings of R 481 million (earnings of 1 329 cents per
share) for the prior comparable period.
Palabora`s management believes that operating earnings provide a more meaningful
representation of the Company`s earnings from ongoing operations and uses
operating earnings as the primary performance measure. Operating earnings
excluded the impairment reversal, finance costs, foreign exchange gains and
losses, and taxes.
In the 2004 financial statements, the Company recognised an impairment loss of
R2 342 million before tax. A review of long-term assets is carried out annually
or at each reporting date where there is an indication that an impairment loss
may no longer exist or may have decreased. Following this review, management
believes that the carrying value of the Company`s assets is not aligned with its
recoverable value. As a result, the maximum allowable impairment reversal of R 1
690 million of the previously recognised impairment loss will be recognised in
the 2007 financial statements.
It is anticipated that the unaudited preliminary results for the year ended 31
December 2007 will be published on or about 4 February 2008, at which stage
further details will be provided regarding the Company`s performance.
Shareholders are advised that the information contained in this Trading Update
has not been reviewed and/or reported on by the external auditors.
Phalaborwa
21 January 2008
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 21/01/2008 16:38:36 Produced by the JSE SENS Department.
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