MVL
MVL
MVL - Mvela Resources - Trading Statement
MVELAPHANDA RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1980/001395/06)
Share code: MVL
ISIN: ZAE000050266
("Mvela Resources" or the "company")
TRADING STATEMENT
In terms of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they are reasonably certain that the
financial results for the current reporting period will differ by more than 20%
from those of the previous corresponding reporting period. In light of the
aforementioned requirements, shareholders are advised that Mvela Resources (or
"the group") expects basic earnings of between 215 cents per share and 235 cents
per share for the six months ended 31 December 2008. This compares with a basic
loss of 114 cents per share, reported for the year ended 30 December 2007.
Earnings have largely been impacted by a significant change in the accounting
treatment of Northam, which makes comparison with the previous reporting period
extremely difficult. Pursuant to the completion of the Booysendal Transaction in
August 2008, Mvela Resources shareholding in Northam increased from 22% to 63%
and as a result, from September 2008, Northam has been consolidated in Mvela
Resources` accounts instead of being equity accounted, which was the previous
treatment.
An 8% decline in Gold Field`s share price during the six-month period and fair
value adjustments related to the consolidation of Northam in Mvela Resources
accounts, have also had a meaningful impact on earnings. These fair value
adjustments have no impact on the group`s cash flows.
In compliance with the Listings Requirements of the JSE Limited, the interim
financial results will be reported in accordance with International Financial
Reporting Standards ("IFRS"). The group`s interim results are expected to be
released on or about 19 February 2009.
The information on which this trading statement is based has not been reviewed
or reported on by the company`s auditors.
ENDS
Johannesburg
17 February 2009
Sponsor
JP Morgan Equities
Date: 17/02/2009 15:37:01 Produced by the JSE SENS Department.
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