| Fri 13 Feb 2009, 17:15 | | SAH - South African Coal Mining Holdings Limited - Trading statement for the |
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SAH
SAH
SAH - South African Coal Mining Holdings Limited - Trading statement for the
year ended 31 December 2008
South African Coal Mining Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/009012/06
Share code: SAH
ISIN: ZAE000102034
("SACMH" or "the company")
Trading statement for the year ended 31 December 2008
In terms of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they become aware that the financial
results for the period to be reported upon next will differ by more than 20%
from those of the previous corresponding period.
The audited results of the company for the previous period ended 31 December
2007 are not, however, directly comparable with the results for the 12 months
ended 31 December 2008. The previous results were in respect of an 18 month
period with only about six months of production following the implementation of
a major restructuring which included several acquisitions by the company.
The company is expected to report a headline loss per share for the year ended
31 December 2008 of between 4 and 6.5 cents, compared with headline earnings per
share of 3 cents for the 18 months ended 31 December 2007. The loss per share
for the same period is expected to be between 13 and 15.5 cents, compared with
84 cents profit per share for the 18 months ended 31 December 2007. The
difference between the headline earnings per share and earnings per share is due
to the impairment of certain of the old Ilanga plant and equipment. These
assets will be transferred to current operations to improve efficiencies.
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors.
SACMH has experienced a difficult trading period in the last six months. The
modifications to the plant which were completed in the second half of the year
have not as yet borne fruit and second half production levels and yields
remained similar to those of the first half. On the upside, the construction of
the Umlabu siding, which will reduce the cost of road haulage and railage going
forward, has been completed.
Earnings for the year were affected by higher input costs, notably diesel,
steel, explosives and sub-contractors, and retrospective price increases by
Transnet Freight Rail as well as higher interest costs due to higher interest
rates and increased debt levels.
Management is addressing plant efficiencies with the utmost urgency. A new
engineer has been appointed and capital expenditure on the plant is expected to
enhance throughput and yields considerably in the current year.
The audit committee and board have reviewed the accounting policy for intangible
assets relating to mineral rights. These assets were previously re-valued using
the revaluation model and the revaluation portion shown as non distributable
reserves. The board has decided to change to the historical cost basis to
enhance industry comparability. This resulted in a reduction in the headline
loss per share of 1.5 cents per share.
SACMH is due to report its actual results for the year ended 31 December 2008
towards the end of March 2009, when full details regarding the performance and
mine plan will be set out in detail.
Enquiries:
SACMH: 011 748 2800
Melanie Steyn: 011 748 2831
Nick Williams: 011 447 3030
Mirkwood
13 February 2009
Sponsor: QuestCo Sponsors
Date: 13/02/2009 17:15:02 Produced by the JSE SENS Department.
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