| Thu 21 Aug 2008, 7:05 | | MTX - Metorex Limited - Consolidated Reviewed Provisional Results For The |
|
MTX
MEMTX
MTX - Metorex Limited - Consolidated Reviewed Provisional Results For The
Financial Year Ended 30 June 2008
Metorex Limited
Registration number: 1934/005478/06
Incorporated in the Republic of South Africa
JSE code: MTX
ISIN: ZAE000022745
Issue code: MEMTX
Listed on the JSE Limited and London Stock Exchange
www.metorexgroup.com
e-mail:Info@meteroxgroup.com
Consolidated reviewed provisional results for the financial year ended 30
June 2008
- Mining profit increased by 86%
- Copper production increased by 48%
- Future copper growth secured by:
- acquisition of CRC
- Musonoi
- Organic growth profile exponential
Charles Needham, CEO of Metorex said, "The Group`s performance for the year
and its development activities have been most satisfactory with mining
profits having increased by 86% year-on-year. Whilst the commissioning of the
Ruashi Phase II plant has taken longer than planned, the final product will
be a world class facility and contribute handsomely to future earnings. This
has been a remarkable achievement, particularly given the challenges of
operating in the DRC. The Group is poised for significant growth over the
next three to four years with its pipeline of development projects."
Consolidated Income Statement
R000`s Year ended Year ended %
30 June 2008 30 June Change
(Reviewed) 2007
(Audited)
Revenue:
Mineral sales
Copper 1 247 710 867 916 44
Cobalt 111 436 18 787 493
Fluorspar 255 643 225 959 13
Gold 679 958 446 509 52
Antimony 143 772 144 586 (1)
Gross revenue 2 438 519 1 703 757 43
Realisation costs* 304 581 218 635 39
On-mine revenue 2 133 938 1 541 004 38
Cost of production* 1 134 101 898 689 26
Stock movement (60 557) (11 593) 422
Depreciation 139 532 102 799 36
Mining profit 920 862 495 227 86
Other expenses (38 511) (5 261) 632
Held for sale and discontinued (8 859) (1 998) 343
operations
Reverse acquisition of PAR 157 995 - 100
Impairment reversal - Chibuluma - 48 932 (100)
Finance income 10 556 10 713 (1)
Finance costs (10 688) (11 920) 10
Profit before taxation 1 031 355 535 693 93
Taxation 335 261 132 709 153
Profit after taxation from continuing 696 094 402 984 73
operations
Profit after tax on disposal of - 191 768 (100)
Wakefield
Income after tax from Wakefield - 50 987 (100)
operations
Profit for the year 696 094 645 739 8
Attributable to:
Equity holders of the parent 554 552 555 713 -
Minority interest 141 542 90 026 57
696 094 645 739 8
From continuing and discontinued
operations:
Earnings per share (cents) 159,4 183,5 (13)
Diluted earnings per share (cents) 156,5 177,5 (12)
From continuing operations:
Earnings per share (cents) 159,4 107,9 48
Diluted earnings per share (cents) 156,5 104,4 50
Headline earnings per share is
calculated using the following:
Income attributable to ordinary 554 552 555 713 -
shareholders
Profit after tax on reverse (105 220) (191 768) (45)
acquisition of PAR/disposal of
Wakefield
Loss/(profit) on sale of fixed 31 (71) 144
assets, net of tax
Impairment reversal, net of tax and - (31 159) (100)
minorities
Discontinued operations - O`Okiep 8 859 1 998 343
Headline earnings (R000`s) 458 222 334 713 37
Headline earnings per share (cents) 131,7 110,5 19
Diluted headline earnings per share 129,3 106,9 21
(cents)
Weighted average number of shares in 347 797 302 810 15
issue (000`s)
Diluted number of shares in issue 354 447 313 101 13
(000`s)
* Prior year reclassified
Condensed Consolidated Balance Sheet
R000`s Year ended Year ended
30 June 2008 30 June 2007
(Reviewed) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 3 191 306 1 389 668
Mineral rights 3 286 840 1 160 751
Goodwill 233 104 11 514
Investments 3 443 929
Rehabilitation trust funds 40 962 35 340
Deferred tax asset - 1 887
6 755 655 2 600 089
Current assets
Inventories 328 096 81 118
Trade and other receivables 662 114 395 087
Wakefield proceeds receivable - 338 575
Bank balances and cash 203 435 54 558
1 193 645 869 338
Assets held for sale, net 8 440 12 423
Total assets 7 957 740 3 481 850
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 2 329 663 1 326 187
Hedging and translation reserve (173 178) (115 130)
Retained earnings 1 389 089 834 537
Share option equity 26 452 10 340
Equity reserve (121 922) (121 922)
Equity attributable to equity holders of 3 450 104 1 934 250
the parent
Minority Interest 683 570 69 691
Total equity 4 133 674 2 003 703
Non-current liabilities
Long-term liabilities - interest bearing 1 364 993 379 250
Long-term provisions 209 767 93 461
Deferred tax liabilities 889 323 416 050
2 464 083 888 761
Current liabilities
Trade and other payables 593 220 393 214
Short-term borrowings - interest bearing 187 982 22 228
Short-term provisions 44 388 29 122
Derivative instruments, net 305 023 91 764
Taxation 209 506 53 058
Bank overdraft 19 864 -
1 359 983 589 386
Total equity and liabilities 7 957 740 3 481 850
Net asset value per share (cents) 935 596
Net tangible asset value per share (cents) 871 592
Condensed Consolidated Cash Flow Statement
R000`s Year ended Year ended
30 June 2008 30 June 2007
(Reviewed) (Audited)
Cash generated by operations 916 443 638 434
Dividends paid to minorities (16 284) (42 131)
Taxation paid (115 071) (19 814)
Finance costs, net (132) (1 207)
Cash inflows from operating activities 784 956 575 282
Cash outflows from investing activities (1 849 615) (872 522)
Cash inflows from financing activities 1 137 289 311 430
Net increase/(decrease) in cash and cash 72 630 (14 190)
equivalents
Cash at beginning of year 54 558 75 531
Effect of foreign exchange rate changes 2 516 (939)
Cash at end of year 129 704 88 782
Acquisition of CRC 53 867 -
Wakefield disposal - (34 224)
Cash at end of year - continuing operations 183 571 54 558
Condensed Statement of Changes in Equity
R000`s Year ended Year ended
30 June 2008 30 June 2007
(Reviewed) (Audited)
Shareholders` equity at start of year 2 003 703 968 568
Ordinary shares issued 1 003 476 524 149
Hedging and translation reserve (58 048) 30 072
Profit for the year 554 552 555 713
Share option equity 16 112 2 804
Minority interest 613 879 (83 747)
Equity reserve - 6 144
Total equity 4 133 674 2 003 703
Performance for the years ended 30 June (reviewed)
Financial 2008 2007 2006 2005
performance
Gross revenue (R`000) 2 438 519 1 703 757 1 013 328 644 244
EBITDA (R`000) 1 171 019 918 296 371 304 149 981
Cash mining profit (%) 43 35 25 13
margin
EPS (cents) 159,4 183,5 54,3 13,5
HEPS (cents) 131,7 110,5 47,7 12,3
Market (R`000) 8 856 460 8 048 840 3 237 093 1 167 321
capitalisation
Shares in issue (`000) 369 173 324 550 289 026 279 933
Share price (cents) 2 399 2 480 1 120 417
ZAR/US$ rate - (R/US$) 7,3 7,2 6,4 6,2
Average
ZAR/US$ rate - (R/US$) 7,8 7,0 7,2 6,7
Closing
Commodity production statistics
Commodity Unit 2008 2007 2006 2005
Copper (t) 25 350 17 131 8 002 -
Cobalt (65% of LMB (t) 565 132 - -
quoted price)
Antimony (mtu) 361 455 377 998 576 317 502 194
Fluorspar (all (dmt) 180 854 183 199 156 692 143 086
grades)
Gold (kg) 3 517 3 348 3 763 3 902
Commodity sales statistics
Commodity Unit 2008 2007 2006 2005
Copper (t) 23 291 17 107 8 369 2 930
Cobalt (t) 386 129 - -
Antimony (mtu) 337 403 371 061 585 600 500 021
Fluorspar (all (dmt) 184 299 181 286 158 285 141 438
grades)
Gold (kg) 3 603 3 332 3 777 3 872
Average commodity prices achieved
Commodity Unit 2008 2007 2006 2005
Copper (US$/t) 7 277 7 066 5 514 4 135
Cobalt (US$/lb) 18 11 - -
Antimony (US$/mtu) 58 54 44 37,3
Fluorspar (all (US$/t) 190 174 155 149
grades)
Gold (US$/oz) 804 581 508 464
Safety and training
The Group`s excellent safety record was marred by three fatal accidents, two
of which occurred at Barberton Mines and one at Chibuluma. Our sincere
condolences are extended to the families of the deceased.
The Group companies conduct their activities with due regard for the health
and safety of its employees and operate approved training programmes through
their respective training centres. In this regard it is pleasing to note that
Consolidated Murchison recently achieved a million fatality free shifts.
New order mining rights
The conversion to new order mining licences at the Group`s South African
operations is progressing. Barberton Mines has submitted all the relevant
documents to the Department of Minerals and Energy and is awaiting the issue
of a new order Mining Licence.
The remaining operations, Vergenoeg and Consolidated Murchison, have largely
completed the requirements for their application and are in negotiations with
potential empowerment partners. Upon finalisation of the negotiations the
completed applications will be lodged with the Department.
Operating performance and financial review
The Group continued its earnings growth trend, which was largely a result of
a 36% increase in copper sales following significant volume growth. All of
the commodity prices achieved, improved from the previous year with the
increase in the gold price being the most notable. Mining profit increased by
86% to R921 million, which is approximately 50% attributable to the Group`s
increase in its copper and cobalt sales volumes. Headline earnings per share
increased by 19% to 132 cents, after a dilution of 11 cents per share
following the issue of additional shares for the acquisition of Copper
Resources Corporation, which is a development project and by a further 9
cents per share including a one-off deferred tax change of 6 cents per share,
relating to the change in the Zambian Taxation Legislation. The prior year`s
headline earnings included a 13 cents per share contribution from the
Wakefield Coal Division, disposed of during June 2007.
All operations contributed to the 43% improvement in the Group`s turnover.
The realisation costs increase of 39% is mainly attributable to the high cost
of moving and associated border clearing costs of copper/cobalt concentrate
from the DRC to Sable in Zambia.
The Group`s operating cost structure increased by 26% to R1,13 billion. This
increase is related to the increase in production volumes, general inflation
pressures, the Kwacha/Dollar exchange rate and exponential price increases in
fuel, steel and reagents.
The reverse acquisition by Barberton Mines of Pan African Resources Plc
("PAR") for a 55% shareholding in the combined entity, gave rise to an
accounting profit of R158 million.
The Group`s balance sheet has been enhanced with the equity attributable to
its shareholders increasing by R1,5 billion to R3,4 billion. This increase
resulted from the acquisition of Copper Resources Corporation and the Group`s
earnings during the past financial year. The Group`s debt/equity ratio net of
cash increased to 33% from 17% following the drawdown of the Ruashi Phase II
project finance facility of US$175 million, and a working capital facility of
US$20 million. The interest on the Ruashi loan is capitalised to the project.
The debt ratio is expected to reduce to below 30% by the end of the 2009
financial year, which is considered acceptable to the Group.
The Group`s cash generated by operations increased by 44% to R916 million for
the year. The cash outflows from investing activities of R1,9 billion is net
of proceeds of R340 million from the disposal of the Wakefield Coal Division.
Funds were applied to the acquisition of Phoenix Platinum and Copper
Resources Corporation (R150 million) and Group capital expenditure of R2,1
billion. Capital expenditure was mainly applied to the Ruashi Phase II
project, decline development at Chibuluma and expenditure on the Kinsenda
Mine project.
Capital expenditure and commitments
Group capital expenditure totalled R2 billion (2007: R0,8 billion) mainly
related to the Ruashi Phase II project (R1,5 billion); capital exploration
expenditure at PAR and development expenditure on CRC`s Kinsenda mine.
Contracted capital commitments at 30 June 2008 amounted to R359 million
(2007: R717 million), whilst uncontracted commitments amounted to R164
million (2007: R31 million).
Operating lease commitments, which fall due within the next year, amounted to
R23 million (2007: R10 million), whilst commitments of R21 million (2007: R10
million) fall due during the next four years.
Future prospects
The Group`s organic growth profile envisages its copper and cobalt production
increasing up to 125 000 to 140 000 tons/annum and up to 6 000 to 8 000
tons/annum respectively by the 2012 financial year. These growth projects
will require estimated capital of US$300 million to US$400 million, to be
applied to the Kinsenda Mine development and the Musonoi project, both in the
DRC.
Development projects
Kinsenda Mine - DRC
The re-establishment of mining and surface infrastructure has commenced. An
infrastructure study has been completed with regard to the power and water
supplies and the costing of the upgrades is currently in progress.
The mine planning and geological models are being prepared by mine personnel
together with a mining consultant. Dewatering of the mine has been completed
to provide access for the cleaning operations to enable decline and vertical
shaft access and to install water management, ventilation and material
handling facilities. Front-end engineering design work for the concentrator
plant is being finalised and earthworks and civil construction is expected to
commence in August 2008. Orders are being placed for major plant components
and long lead time items. Final project cost quotations and timing schedules
are being prepared.
Musonoi Project - DRC
Drilling on the Dilala Est deposit at Musonoi has identified mineralisation
similar to that mined at Kamoto UG, 5km to the west of the project area. In
total 33 holes have been drilled for a total of 6 247m on a 100m by 50m grid
over a strike length of 600m since exploration commenced in December 2006.
The mineralisation does not out crop due to strike parallel faulting and
consists of steeply dipping, high grade oxide copper (ave 4% TCu) and cobalt
(ave 0.9% TCo) mineralisation from 50m to 230m below surface. The
mineraliation is hosted in two wide (10 to 25m each) zones separated by a low
grade unit of 15m width.
Sulphides have been intersected below 230m in three boreholes covering 100m
of strike. Grades and widths are comparable to those obtained from the oxide
intersections and are open ended at depth and along strike. Step out drilling
is in progress at depth and along strike to confirm the extent of the
sulphide zone.
Geotechnical and metallurgical sample drilling has commenced and a
preliminary resource estimate is being prepared which will be released
shortly. A Scoping Study will commence once the resource estimate,
geotechnical drilling and metallurgical test results have been received to
evaluate the financial viability of an operation to exploit the deposit.
Phoenix Platinum - RSA
Phoenix has an agreement with International Ferro Metals to treat 20,000
tonnes per month of current arisings from the Lesedi Chrome Mine at the IFM
Buffelsfontein plant for PGM recovery. An additional 1.5 Mt of tailings are
available on an adjacent farm for immediate treatment. Process engineering
based on metallurgical testwork for a generic 20,000t per month plant design
has been completed, with detailed engineering and capital cost estimates
nearing completion. This design will be expanded to a 40,000 tpm plan to
treat both current arisings and dump tailings. The environmental requirements
for final plant and tailings dam site location are in progress and will be
finalised shortly. Other chromite tailings streams are being evaluated with
the intention of expanding production in the future.
Aluminium Fluoride Plant - RSA
Progress is being made with the Alfluorco site selection study and
Environmental Impact Assessment Scoping report, which had been supported by
the local authorities in Umhlathuze (Richards Bay). These reports and studies
will be presented to the interested parties in September 2008. The basic
engineering plant design has been received and a local engineering company is
undertaking the detailed costing and peripheral design. The final report is
being prepared. Design work of the Vergenoeg expansion has commenced.
Exploration projects
Pan African Resources Exploration
- Manica Project - Mozambique
Geological and drilling work continued with confirmed orebody continuation to
a depth of 350 metres below surface. Resources modelling has been completed.
This forms the basis for the pre-feasibility study, which will determine the
size of a possible mine. The location and future economic factors are being
considered. Studies are underway to assess the availability of reliable power
and water supplies.
- Bogoin and Dekoa Projects - Central African Republic
A preliminary drilling programme has been completed to narrow down the soil
geochemical anomalies. A secondary drilling programme has commenced at Bogoin
over an area in excess of 800 km2.
- Ghana
Pan African has secured three prospective exploration areas in Ghana on an
earn-in basis. Exploration has commenced at two of these properties.
Lubembe Exploration
Exploration drilling commenced during June 2008. Approximately 1 100 metres
of evaluation holes were drilled at 100 metres intervals to a depth of
approximately 60 metres. Three of the holes intersected moderate malachite
mineralisation between 40 - 60 metres. The reverse circulation drilling
machines will be incremented with a diamond drilling machine in July together
with an XRF Analyser.
Corporate activity
The Group finalised the reverse acquisition of PAR on 24 July 2007, whereby
74% of Barberton Mines was reversed into PAR for a 55% interest in the
combined entity. This transaction provides the Group with a controlling stake
in a separately listed gold vehicle, with significant exploration assets
supported by strong cash flow generation from Barberton Mines. PAR`s loss
since acquisition together with the effect on the Group`s revenue and
results, had the acquisition been effective 1 July 2007, is immaterial.
The Group acquired 50,3% of Copper Resources Corporation and the right to
acquire 5% of Miniere de Musoshi et Kinsenda Sarl ("MMK"), for a total
consideration of 37,2 million new Metorex shares and GBP6,75 million cash.
On 7 December 2007, Metorex acquired 100% of Phoenix Platinum for a
consideration of R110 million, settled by way of a cash payment of R55
million and 3,5 million new Metorex shares issued at R24 per share.
Hedgebook status
Commodity Maturity Volume Price
Gold: Consolidated 24 months (Jul `08 - 280 kg R11/g
Murchison Jun `10)
Copper: Ruashi I 1 month 300 t US$5 469/t
Ruashi II 12 months (Jul `08 - 2 000 tpm US$7 071/t
Jun `09)
Ruashi II 6 months (Jul `09 - 1 125 tpm Put US$4 435
Dec `09)
Ruashi II 6 months (Jan `10 - 900 tpm Put US$4 062
Jun `10)
Shares issued
* 2,3 million shares at R24/share - Strategic investment;
* 3,5 million shares at R23/share - Acquisition of Phoenix Platinum;
* 37,2 million shares at average R24/share - Acquisition of 50,3% interest in
Copper Resources Corporation;
* 1,7 million shares at average R2,8/share - Share option implementations.
Base metal division
Copper
Chibuluma Mines Plc 2008 2007 2006*
Tons milled (t) 555 575 503 880 363 311
Headgrade (%) 2,9 2,5 2,7
Overall recovery (%) 89,6 86,1 81,6
Copper produced (t) 14 583 10 770 8 002
Copper sold (t) 14 491 10 761 8 017
Total cash cost/ton sold (US$/t) 2 663 2 787 2 984
EBITDA (R`000) 501 459 323 022 125 521
Depreciation (R`000) 49 070 36 011 16 916
Chibuluma expanded its milling capacity to 50 000 tpm and operated at this
level during the second half of the financial year. The copper headgrade
improved as mining advanced through the waste parting present during the
previous year and is expected to further increase with depth. Overall, copper
production increased by 35%, which had a positive impact on the total cost
per ton of copper.
Zambian tax
The Government of the Republic of Zambia ("GRZ") introduced a new mining tax
regime effective 1 April 2008. Chibuluma`s Development Agreement ("DA")
signed in 1997 by GRZ and ZCCM under the auspices of the World Bank provides
for a tax stabilisation period of 15 years. Specifically, the DA stipulates
that should GRZ increase effective corporate taxes to above 35%, Chibuluma
shall have a claim against GRZ under English law with arbitration in London.
Chibuluma, together with other mining companies in Zambia, set out in
correspondence the provisions and recourse under the DA and has requested
further discussions in this regard. Chibuluma has received a response from
GRZ agreeing to further dialogue in order to find an amicable solution.
Chibuluma continues to reserve its rights in terms of the DA.
Copper/cobalt
Ruashi/Sable 2008 2007*
Tons milled (t) 601 505 473 090
Headgrade - Copper (%) 3,2 2,9
- Cobalt (%) 0,4 0,6
Recovery - Copper (%) 57 46
- Cobalt (%) 23 5
Copper produced (t) 10 767 6 361
Copper sold (t) 8 800 6 346
Cobalt produced (t) 565 132
Cobalt sold (t) 386 129
Total cash cost/ton of copper sold, (US$/t) 3 476 4 695
net of Cobalt
EBITDA (R`000) 174 695 83 624
Depreciation (R`000) 35 244 21 805
* First year of production.
The Ruashi concentrator operated at design capacity with recoveries improving
significantly from the previous year. During the year, 6 800 tons of
concentrate, containing 835 tons of copper and 55 tons of cobalt, was
transferred to the Ruashi Phase II plant in order to charge the leach tanks
for commissioning. Copper/cobalt transferred to Phase II together with
concentrate stock on hand and in transit to Sable, accounted for an
opportunity earnings loss of some 25 cents per share.
The total cash cost per ton of copper sold includes export taxes, haulage
costs and documentation costs approximating US$1 900/ton. On-mine costs at
Ruashi I and the Sable processing facility amounted to approximately US$1
600/ton, net of cobalt credits.
The Ruashi II plant, which is in a staged commissioning phase, will produce
copper cathode and cobalt hydroxide on site. This negates the excessive
export and haulage costs incurred at Phase I. In addition, the leach and
SX/EW facility should achieve copper/cobalt recoveries of 85% and 60%
respectively.
DRC - copper/cobalt
Ruashi Phase II project
Whilst the commissioning of the Ruashi Phase II plant has been delayed and
project costs are higher than original estimates, the challenges and
complexities of establishing a plant of this magnitude and technical
advancement have been largely overcome. The ultimate plant at completion will
be world class and the largest and most modern SX/EW plant in the DRC.
The plant will be commissioned in modules commencing with the HG Solvent
Extraction Plant, followed by the Cobalt Plant, the Front-end Crushing Plant
and finally the Acid Plant.
The production of copper and cobalt from the complex is expected to yield
approximately 30 000 tons of copper and 1 800 tons of contained cobalt in the
forthcoming financial year. This will be achieved through a phased build-up.
Thereafter, Ruashi II will produce at its design capacity of 45 000 tons
copper and 3 500 tons cobalt.
Mining operations are established in the first of the three pits with the
opening of the second pit underway. This pit is expected to produce higher
grades than those of the first pit.
Industrial Minerals Division
Fluorspar
Vergenoeg 2008 2007 2006 2005
Tons milled (t) 570 826 561 366 470 623 428 976
CaF2 grade (%) 39,9 42,6 43,3 42,6
CaF2 recovery (%) 74,2 70,9 73,7 70,8
Fluorspar (dmt) 180 854 183 199 156 692 143 086
produced (all
grades)
Fluorspar sold (dmt) 184 299 181 286 158 285 141 438
(all grades)
Price (all (R/dmt) 1 387 1 246 989 868
grades)
Total cash (R/t) 841 811 755 776
cost/ton sold
EBITDA (R`000) 89 761 83 683 44 600 22 642
Depreciation (R`000) 11 218 9 002 8 171 7 130
The plant operated efficiently during the year with recoveries increasing by
5% from 70,9% to 74,2% although feed grades were below those of the previous
year.
Industrial Minerals Division
The design capacity of 180 000 tpa was achieved and the operating cost per
unit produced increased 4%, which is significantly below the CPI inflation
index. The EBITDA increased by 7%, which was assisted by a price increase in
fluorspar.
Feasibility work is being completed to further increase the production levels
to 300 000 tons per annum to either meet further market demand or to provide
feed for the envisaged Aluminium Fluoride Plant.
Antimony
Cons Murch 2008 2007 2006 2005
Tons milled (t) 355 076 420 381 447 547 437 798
Produced: Sb (mtu) 361 455 377 998 576 317 502 194
Au (kg) 533 548 675 672
Sold: Sb (mtu) 337 403 371 061 585 600 500 021
Au (kg) 521 546 669 671
Total cash cost/mtu (R/mtu) 343 276 209 194
sold
EBITDA (R`000) 26 401 16 991 43 829 (6 117)
Depreciation (R`000) 10 196 5 800 3 769 3 420
Net of gold revenue.
Consolidated Murchison increased its EBITDA for the year from R17 million to
R26 million, which was largely the result of the commodity price of both
antimony and gold. The division experienced a labour strike during the first
two months of the year, which affected production. An expansion programme has
been commenced in a modest fashion to increase tonnage milled by 1 000 tons
per month over a 15 month period to ultimately reach 60 000 tpm milled. This
additional production is being sourced from shallow reserves via decline
shafts.
Gold division
Barberton 2008 2007 2006 2005
Tons milled (t) 315 305 330 367 313 779 316 094
Headgrade (g/t) 8,9 9,2 10,7 11,1
Overall recovery (%) 91 92 92 92
Produced: (kg) 2 984 2 800 3 088 3 230
Gold including Calcine
dump
Sold: (kg) 3 082 2 786 3 108 3 201
Gold including Calcine
dump
Price: Spot (R/kg) 204 344 148 230 108 683 86 265
Hedge (R/kg) 151 460 96 088 90 047 101 890
Total cash cost/kg sold (R/kg) 111 272 107 656 88 177 85 073
EBITDA (R`000) 210 218 79 965 58 291 56 494
Depreciation (R`000) 33 688 30 056 24 452 23 432
Barberton Mines operated satisfactorily with increased gold production from
the calcine dump retreatment operation. The unit cost of production increased
at a rate below that of the CPI inflation index.
The EBITDA was 163% higher than that of the previous year and was reduced by
the remaining deliveries of gold against its historic hedgebook, which
accounted for a R32 million reduction in possible gross revenue. Barberton is
now fully exposed to the spot gold price.
Subsequent events
There were no significant subsequent events between 30 June 2008 and the date
of this report.
Accounting policies
The reviewed provisional results have been prepared and presented in
accordance with IAS 34, Interim Financial Reporting Standards ("IFRS"). The
accounting policies, which are in terms of IFRS, are consistent with those
adopted in the financial year ended 30 June 2007.
The unmodified review report as compiled by the Group`s external auditors is
available at the Group`s registered office. The Group complies with the
Companies Act and the Listing Requirements as prescribed by the JSE Limited.
By order of the Board
A S Malone C D S Needham
Chairman Managing Director
21 August 2008
Contact details for Metorex Limited and Corporate Advisers
Postal: PO Box 2814, Saxonwold, 2132, South Africa
Telephone: (+27 11) 880-3155
Facsimile: (+27 11) 880-3322
Website: www.metorexgroup.com
E-mail: ir@metorexgroup.com
Investor relations
College Hill, PO Box 413187, Craighall, 2024, South Africa
Telephone: (+27 11) 447-3030
Breakstone Group, 82 Wall Street, Suite 805, New York, NY 10005, USA
Telephone: (+1 646) 452-2334
St James Corporate Services Limited, 6 St James`s Place, London, SW1A INP,
England
Telephone: (+44 207) 499-3916
Registrars: South African and United Kingdom
Link Market Services South Africa (Pty) Limited
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: (+27 11) 834-2266
The Capita Group PLC, The Registry, 34 Beckenham Road,
Beckenham, Kent, BR34TU, England
Telephone: (+44 208) 639-2157
Company secretaries
Moore Stephens MWM, PO Box 1574, Houghton, 2041, South Africa
Telephone: (+27 11) 728-7240
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
PO Box 62200, Marshalltown, 2107, South Africa
Telephone: (+27 11) 750-0000
Auditors
Deloitte & Touche, Private Bag X6, Gallo Manor, 2052, South Africa
Telephone: (+27 11) 806-5000
ADR Programme - North America and Canada
The Bank of New York, 101 Barclay Street, New York, NY 10286, USA
Telephone: (+1 212) 815-3326
Directors
A S Malone (Chairman), C D S Needham (Managing), A Barrenechea*+,
G A Forrest**+, A J Laughland***+, E W Legg, M Smith, K C Spencer,
R G Still+
*Spanish **Belgian ***British +Non-Executive
Date: 21/08/2008 07:05:05 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.
