| Thu 29 May 2008, 15:50 | | CMO - Chrometco - Reviewed Consolidated Financial Results For The Financial |
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CMO
CMO
CMO - Chrometco - Reviewed Consolidated Financial Results For The Financial
Year Ended 29 February 2008
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO & ISIN: ZAE000070249
("Chrometco" or "the group")
REVIEWED CONSOLIDATED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY
2008
BALANCE SHEET Reviewed Reviewed
as at as at
29 Feb 28 Feb
2008 2007
R`000 R`000
ASSETS
Non-current assets 3 239 217
Motor vehicles and equipment 639 217
Intangible assets 2 600 -
Other long-term receivables - -
Current assets 29 640 558
Inventories 53 53
Trade and other receivables 292 337
Cash and cash equivalents 29 295 168
Total assets 32 879 775
EQUITY AND LIABILITIES
Capital and reserves 31 559 (203)
Issued capital 2 1
Share premium 35 985 14 851
Share based payment reserves 2 040 -
Accumulated loss ( 6 468) (15 055)
Minority interests - -
Non-current liabilities 353 52
Long-term liabilities - -
Long-term finance leases 353 52
Current liabilities 967 926
Trade and other payables 187 703
Provisions 173 145
Current portion of long-term
borrowings 85 42
Taxation payable 522 34
Total equity and liabilities 32 879 775
INCOME STATEMENT
Reviewed Reviewed
12 months 12 months
ended ended
29 Feb 28 Feb
2008 2007
R`000 R`000
Revenue 13 000 -
Cost of sales - -
Gross profit 13 000 -
Other income 47 -
Operating expenses (5 736) (4 090)
Net profit/loss before interest
and taxation 7 311 (4 090)
Investment income 1 813 44
Finance charges ( 61) (105)
Net profit/loss before taxation 9 063 (4 151)
Taxation (476) -
Attributable to minority interest - -
Net profit/loss for the period 8 587 (4 151)
Reconciliation between earnings and headline earnings
per share
Basic earnings per share (cents) 4.62 (2.79)
Diluted earnings per share (cents) 4.62 (2.79)
Headline earnings per share for the year ended 29 February 2008
Earnings profit/(Loss) for the year 8 587 (4 151)
Adjustments:
Reversal of impairment (2 600) -
Loss on disposal of property,
plant and equipment 66 -
Loss on disposal of subsidiaries 61 -
Loss on impairment of investments 11 -
Headline profit/(loss) attributable
to ordinary shareholders 6 125 (4 151)
Headline earnings per share (cents) 3.30 (3.62)
Weighted average number of
shares (`000) 185 795 148 851
CASH FLOW STATEMENTS
Reviewed Reviewed
12 months 12 months
ended ended
29 Feb 28 Feb
2008 2007
R`000 R`000
Cash flows from operating
activities 8 335 (4 510)
Cash flows from investing
activities (686) (15)
Cash flows from financing
activities 21 478 2 866
Net movement in cash and cash
equivalents 29 127 (1 659)
Cash and cash equivalents at
the beginning of the period 168 1 827
Cash and cash equivalents at
the end of the period. 29 295 168
STATEMENT IN CHANGES OF EQUITY
Capital Minority Share Based Retained Total
and Premium interest Payments Earnings
Reserve
R`000 R`000 R`000 R`000 R`000
Balance at 1
March 2006 11 947 - - (10 904) 1 043
Issue of
shares 2 906 - - - 2 906
Net loss for
the period - - - (4 151) (4 151)
Balance at 28
February 2007 14 853 - - (15 055) (202)
Issue of
shares 21 134 - 2 040 - 23 174
Net profit for
the period - - - 8 587 8 587
Balance at 29
February 2008 35 987 - 2 040 (6 468) 31 559
COMMENTARY - Financial and operational overview.
1. The directors present the reviewed consolidated financial results for the
twelve months ended 29 February 2008
2. Basis of preparation
The accounting policies of the group comply in all material respects with
recognition and measurement criteria of International Financial Reporting
Standards ("IFRS") and its interpretations adopted by the International
Accounting Standards Board ("IASB") in issue and effective at 29 February 2008.
These results have been prepared in accordance with IFRS, as well as the
presentation and disclosure requirements of IAS 34 - Interim Financial
Reporting, and also in accordance with the JSE Listings Requirements and the
Companies Act of 1973. The accounting policies and methods of measurement and
recognition are consistent with those applied in the financial period ended 28
February 2007.
3.Auditors` report
The Chrometco group`s auditors, RSM Betty & Dickson (Johannesburg), have
reviewed these year-end results. Their unqualified report is available for
inspection at the company`s registered office during normal office hours.
4 Investments are valued at cost less accumulated impairment losses.
5. Nature of business.
The company is involved in the exploration of mineral resources and the possible
beneficiation thereof, as well as investigations into parallel activities in
copper, cobalt and nickel.
6 General review of operations.
During the year under review, management focused its attention on four important
issues:-
- Securing mineral rights in the Democratic Republic of the Congo,
- Raising Capital to fund the day to day business of the Group.
- The acquisition of mineral rights, and business opportunities in the Republic
and elsewhere in Africa.
- The sale of its Rooderand subsidiaries.
With regards to the securing of mineral rights in the DRC, two copper cobalt ore
bodies have been identified by the company as acquisition targets and are
proceeding with this. The South African Reserve Bank has approved an investment
amount of US$ 8,9million to commence operations at the company`s discretion in
the DRC.
During the months of April and May 2007, the company in conjunction with
Touchstone Capital and the River Group were successful in raising an amount of R
21 million by issuing shares at R0,63cents per share to institutional investors.
Chrometco has investigated numerous mineral opportunities in the base metal
field in Zambia and the DRC. Chrometco has also positioned itself to participate
in iron ore and manganese operations in the Northern Cape. After two visits to
Tanzania and successful meetings with the Tanzanian Department of Minerals and
Energy, the geological department in that country is currently compiling a list
of potential sites for Chrometco to conduct gold exploration activities.
During this period, the subsidiaries, namely Korpo Trust (Pty) Limited and
Rooderand Chrome (Pty) Limited - which pertain to ownership of the Mineral
Rights and the EMPR on the chromite ore reserve on the Farm Rooderand 46JQ, were
sold by way of a sale of shares agreement to DecoMetal of Austria. The old order
mining license is held by Pilanesberg Mining (Pty) Ltd. A condition precedent to
this sale agreement was the necessity to convert the old order mining licence to
a new order mining right. Our attorneys, Leppan Beech Incorporated, are
attending to the preparation of this application and submission in its entirety,
and have progressed to the point where this application should be submitted to
the relative DME department before the end of May 2008.
For and on behalf of the board of directors
S.H.Simons J.R.Francey
Chief Executive Officer Chief Financial Officer
29th May 2008
Directors: J.H.R.Raubenheimer (Chairman), S.H.Simons (CEO), J.R.Francey (CFO),
P.C. Baloyi, T.W.Scott.
Company Secretary and Designated Advisor:
The River Group.
Date: 29/05/2008 15:50:07 Produced by the JSE SENS Department.
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