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BRE
BRE
BRE - Braemore Resources Plc - Trading statement
BRAEMORE RESOURCES PLC
(A company incorporated in England and Wales with Registration Number 5350550)
(South African registration number: 2008/013973/10)
Share code on the JSE Limited: BRE
Share code on AIM: BRR ISIN: GB00B06GJQ01
("Braemore" or "the Company")
Trading statement
In terms of the Listings Requirements of the JSE Limited, a listed company is
required to publish a trading statement as soon as it becomes aware that the
financial results for the next period to be reported on will show a difference
of 20% or more from those of the previous corresponding period.Shareholders of
Braemore Resources plc are advised that the Company expects its earnings and
headline earnings per share for the six months ended 31 December 2008 to show a
0.56p loss as opposed to the 0.15p loss for the corresponding period to 31
December 2007.
The Company has made significant positive progress on its projects and continued
production from its newly-expanded ConRoast smelter in South Africa totalled
6,892 platinum group metal (PGM) ounces for the period.
Whilst the unaudited financial results for the six months ended 31 December 2008
have not yet been finalised, the Company anticipates an after-tax loss for this
period of GBP4.40 million (loss per share: 0.56p). This compares with an after-
tax loss of GBP1.015 million for the six months ended 31 December 2007 (loss per
share: 0.15p). .
Specific events that contributed to the increased expenditure and losses
include:
- About 50% of the anticipated after-tax loss can be attributed to the recent
settlement of a single old-order contract that may have exposed the Company
to market volatility around PGM prices and unfavourable processing terms.
This contract has been concluded and replaced by new contracts from both
Anglo Platinum Limited ("Anglo Platinum") and Northam Platinum Limited
("Northam"). The new contracts in place are cash positive, with
significantly reduced price exposure.
- The JSE listing completed in July 2008 and the associated legal and
compliance expense.
- The decommissioning of the 1.5MW smelter and the subsequent construction
and commissioning of the larger 3.2MW ConRoast smelter expansion, as part
of the commercialisation of the technology. During this period there was
reduced production as the previous smelter was taken offline to replace it
with the new smelter. Consequently no production resulted in September
2008 although overheads were still incurred.
- The commitments for the Leinster Nickel Project testwork and reports
required by BHP Billiton (BHPB) to conclude the scoping study.
- The acceleration of the research programme to conclude the process flow
sheet for the hydrometallurgical refining of the PGM iron alloy.
During this period the Company completed smelting the initial contracted low-
grade concentrate through the original 1.5MW furnace. As mentioned above, this
old contract has been replaced with newly-contracted material from Anglo
Platinum and Northam. Current contracts with Anglo Platinum and Northam are cash
positive.
Braemore has also advanced the restructuring of the Company to realise a
significant reduction in overhead costs which will flow through into the next
reporting period. The cash position of the Company as at the end of the period
was GBP2.54 million. At the end of February the Company`s cash balances were
approximately GBP1.6 million with PGM alloy in-stock valued at GBP4.1 million.
The financial information on which this trading statement is based has not been
reviewed or reported on by Braemore`s external auditors.The Company`s unaudited
results for the six months ended 31 December 2008 will be released on SENS and
published in the press by 31 March 2009.
For further information please visit our website at www.braemoreresources.com or
contact:
Braemore Resources Plc
Leon Coetzer, Chief Executive Officer
+27 11 875 6540
WH Ireland: (Nomad and Joint Broker)
James Joyce
+44 207 220 1666
Mirabaud Securities: (Joint Broker)
Rory Scott
+44 207 878 3360
Qinisele Resources: (RSA Corporate Advisers)
Dennis Tucker
+27 82 492 4957
Russell and Associates: (RSA Public Relations)
Nicola Taylor/Charmane Russell
+27 11 880 3924
Parkgreen Communications: (UK Public Relations)
Louise Goodeve/Leah Kramer
+44 207 933 8780
Sasfin: (RSA Corporate Sponsor)
Sharon Owens
+27 11 809 7762
24 March 2009
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 24/03/2009 12:30:02 Produced by the JSE SENS Department.
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