| Mon 1 Dec 2008, 10:56 | | TBX - Thabex - Reviewed Interim Results For The Six Months Ended 31 August 2008 |
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TBX
TBX
TBX - Thabex - Reviewed Interim Results For The Six Months Ended 31 August 2008
THABEX LIMITED
("Thabex" or "the Company" or "the Group")
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
Young Lions Exploring Africa
JSE share code: TBX
ISIN Code: ZAE000013686
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2008
CONDENSED CONSOLIDATED BALANCE
SHEET
Six months Six months Year ended
ended ended
31 August 31 August 29 February
2008 2007 2008
Reviewed Unaudited Audited
R`000 R`000 R`000
Assets
Non-current assets 18 215 18 317 16 505
Mining assets and equipment 5 777 3 356 4 637
Exploration & Evaluation Assets 12 438 14 961 11 868
Current assets 2 425 7 072 2 249
Inventories 1 197 1 221 1 276
Short-term trading investments 277 327 274
Trade and other receivables 810 3 362 344
Short-term loans - - 122
Cash and cash equivalents 141 2 162 233
Total assets 20 640 25 389 18 754
Equity and liabilities
Capital and reserves
Share capital 2 201 2 101 2 101
Share premium reserve 26 561 24 689 24 665
Treasury shares - - -
Accumulated loss (14 392) (5 079) (11 250)
Ordinary shareholders interest 14 370 21 711 15 516
Current liabilities 6 270 3 678 3 237
Short-term loans owing 3 013 - 242
Bank overdraft - - 371
Trade and other payables 2 632 3 053 1 999
Taxation payable 625 625 625
Total equity and liabilities 20 640 25 389 18 753
Shares in issue 22 006 887 21 006 887 21 006 887
Net asset value per share 65.30 103.35 73.86
(cents)
Net tangible asset value per 8.78 32.13 17.36
share (cents)
CONDENSED CONSOLIDATED INCOME
STATEMENT
Revenue 87 418 430
Cost of sales (79) (331) (394)
Gross profit 8 87 36
Other operating income 376 782 1 358
Administration expenses (2 233) (1 970) (1 265)
Other operating expenses (1 283) (4 068) (7 914)
Operating loss (3 132) (5 169) (7 785)
Negative goodwill - 3 410
Finance income 5 136 125
Finance expenses (15) - (134)
Loss before taxation (3 142) (1 623) (7 794)
Taxation - - -
Loss for period (3 142) (1 623) (7 794)
Attributable to:
Equity holders of the parent (3 142) (1 623) (7 794)
Minority interest - - -
Weighted average of number of 21 702 539 18 388 162 19 247 324
shares in issue
Basic loss per share (cents) (14.48) (8.83) (40.49)
Diluted loss per share (cents) (14.48) (8.83) (40.49)
Headline loss per share (cents) (14.48) (27.37) (45.69)
RECONCILIATION OF HEADLINE
EARNINGS/(LOSS)
Reconciliation between loss and
headline loss
Loss attributable to ordinary (3 142) (1 623) (7 794)
shareholders
Negative goodwill - (3 410) -
Disposal of interest in - (1 000)
subsidiary
Headline loss (3 142) (5 033) (8 794)
CONDENSED CONSOLIDATED CASHFLOW
STATEMENT
Net cash in/(outflow) from 267 (1 476) (2 482)
operating activities
Net cash inflow from investing 12 2 625 1 389
activities
Cash effects of financing - - (58)
activities
Net increase/(Decrease) in cash 279 1 149 (1 151)
resources
Cash at beginning of period (138) 1 013 1 013
Cash at end of period 141 2 162 (138)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Share Capital 2 201 2 101 2 101
Issue of ordinary shares 100 400 400
Share capital at the beginning 2 101 1 701 1 701
of period
Share Premium 26 561 24 689 24 665
Share premium on issue of 1 900 - 7 521
ordinary shares
Share issue expenses (4) - (58)
Share premium at the beginning 24 665 24 689 17 202
of the period
Accumulated Loss at end of (14 392) (5 079) (11 250)
period
Loss for period (3 142) (3 456) (7 794)
Accumulated Loss at the (11 250) (1 623) (3 456)
beginning of period
Basis of preparation
The condensed consolidated results for the sixth month period ended 31 August
2008 are prepared in accordance with IAS34: Interim Financial Reporting, The
Listings Requirements of the JSE Limited ("JSE") and the South African
Companies Act, 61 of 1973 (as amended).
Accounting policies
The principal accounting policies of the Group are consistent with those
applied in the audited financial statements for the year ended 29 February
2008.
Operating results
The headline loss per share decreased from 27.37 cents to a headline loss per
share of 14.48 cents. The decreased headline earnings per share was mainly
attributed to a decrease in exploration expenditure. The net asset value per
share of the group decreased from 103.35 cents per share to 65.30 cents per
share.
Going concern
The Group incurred a net loss of R3.14 million for the six months ended 31
August 2008. At that date the Group`s current liabilities exceeded in current
assets by R3.85 million and throughout the course of the six month period did
not generate sufficient cash flows to fund its operations.
The board is confident that the production of rough diamonds from Angel
Diamonds and the proposed disposal of the Middelwater alluvial diamond project
of Minnex Exploration (Pty) Ltd will generate sufficient cash flow to enable
the Group to be able to realise its assets and settle its liabilities in the
normal course of business. In addition, the board has implemented action plans
which include the proposed sale of the interest in Angel Diamonds which would
provide the Company with sufficient cash flow for the next twelve months. In
these circumstances, the Group`s interim financial statements have been
prepared on the basis of accounting policies applicable to a going concern.
In the event that the Company is unable to generate sufficient cash flows and
raise further financing, there will be a material uncertainty that may cast
doubt on the ability of the company and its subsidiaries to continue as going
concerns.
Dividend
No dividend has been declared for the period.
Review of results
The results for the six months ended 31 August 2008 have been reviewed by KPMG
Inc. and their review opinion, which has been modified in respect of the going
concern assumption, is available at the Company`s registered office. The
following emphasis of matter was included in the review report: "Without
qualifying our conclusion, we draw attention to the going concern note in the
commentary which indicates that the Group incurred a net loss of R3.14 million
for the interim period ended 31 August 2008, that the Group did not generate
sufficient cash flows during the year to fund its operating activities, and
that at 31 August 2008, the Group`s current liabilities exceeded its current
assets by R3.85 million. The review of operations and future prospects
describes the board`s plans to deal with these conditions and indicates that
in the event that the board is unable to generate sufficient cash flows and
raise further financing, there will be a material uncertainty which may cast
significant doubt on the ability of the company and its subsidiaries to
continue as going concerns." The results for the six month ended 31 August
2007 were not reviewed.
Review of operations and future prospects
Diamonds
South Africa
Monastery Mine (Pty) Ltd ("Monastery")
Geological surveys and indicator mineral analysis has been conducted over the
area and a 10 Foot Rotary Pan recovery unit is being transported to the site
to process oxidised kimberlite stock piles in order to recover at least 1000
carats of diamonds for analysis.
Lesotho
Shareholders are referred the SENS announcements, dated 9 October 2008 and 15
October 2008 relating the share purchase and option agreement ("the
Agreement"), dated 3 October 2008, between Thabex and 70% held subsidiary,
Angel Diamonds (Pty) Ltd ("Angel Diamonds") with London based Mantle Diamonds
Limited ("Mantle Diamonds"). Mantle Diamonds has commenced construction of a
10tph (ton per hour) DMS (Dense Medium Separator) to test at least 10 000 tons
of Kolo Kimberlite ore. In terms of the Agreement, Mantle also drilled 11
diamond core boreholes to define the shape of the Kolo Kimberlite pipe and for
geochemical analysis. Drilling is still in progress. The present estimate is
that the pipe is 1,2ha in size and the Inferred Diamond Resource is 2.6
Million tons to depth of 100m. Angel Diamonds processed a bulk sample
totalling 5 228 tonnes up to the third quarter and recovered 388.23 carats
giving a grade of 7.43 cpht (carats per hundred tons) with a bottom cut-off
screen size of 2mm.
Angel Diamonds has exported 332 carats produced to South Africa at a value of
US$135 per carat to be analysed and put on tender. Due to the uncertainty in
the resource markets in general the parcel of diamonds has not been disposed
of to date. The largest diamond in the parcel was 7.99 carats of excelled
quality and irregularly shaped.
Namibia
Namibia Namdeb Corporation (Pty) Ltd ("Namdeb") is at present following up
three unresolved targets. These three targets were previously drilled with
reverse circulation drilling and kimberlitic indicator minerals were
recovered.
Future prospects
The Company is confident that the proposed sale of an interest in Angel
Diamonds will be successful and Angel Diamonds has compiled an Application for
a Mining Lease at Kolo, which will be submitted to the Commissioner of Mines
of Lesotho in the near future. The present prospecting activities in the
eastern Free State Province at the Monastery Kimberlite occurrences and the
Tweespruit Kimberlite occurrences will certainly enhance the Group`s
diamondiferrous kimberlite resources during the next year.
Salt River Resources Ltd ("SRR") is continuing with pre-feasibility and
scoping study with the view to raise sufficient funds to complete a bankable
feasibility on the Salt River Project.
Mining Charter and BEE
In terms of the requirements of the Mining Charter the Company is 21.24% BEE
owned.
On behalf of the board
JR Rapoo
Chairman
Chief Executive
Johannesburg
1 December 2008
Registered office: Ground Floor, Kiepersol House, Stonemill Office Park,
300 Acacia Road, Darrenwood, Randburg, 2194
Auditors: KPMG Inc. KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0083
Company secretaries: SA Mineral Investments (Pty) Ltd
51 Austin Street, Northcliff, Johannesburg, 2195
Company transfer secretaries: Link Market Services South Africa (Pty) Ltd
11 Diagonal Street, Johannesburg, 2001
Explore our website: www.thabex.com
E-mail: info@thabex.com
Telephone number: +27 11 459 6600 or 0860 THABEX (0860 842239) local only
Sponsor: PSG Capital (Pty) Ltd
Directorate: JR Rapoo, M Welthagen*, JL Bosch, Dr JW Kruger**, Prof DL Reid#,
AP Roux *Executive director, **Independent Director, # New Zealand
Date: 01/12/2008 10:56:02 Produced by the JSE SENS Department.
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