The company acquired the investment in associates "cum" dividend from 1 January 2008. The transaction excluded a special distribution of R12.8 million payable to the previous shareholders relating to the period ending 31 December 2007. Profits and losses from associates for the period 1 January 2008 to 30 September 2008 have been accounted for in the carrying value of the investment. The share of loss from associates for the period 1 October 2008 to 31 December 2008 is reflected in the income statement. At the reporting date no dividends had been received from the associate companies primarily due to the special distribution and capital expenditure of approximately R20 million incurred in the Kilken joint venture. Preference dividends due to Jonah Mining (Pty) Ltd in the amount of R1.6 million have not been paid but have been accrued in the financial result for the period. The group reported a headline loss for the period of 115.6cps.
Outlook
Kilken is a low-cost producer of platinum group metals. Andulela acquired the Kilken asset to participate in the positive growth outlook for platinum in the long term. Market expectations are that platinum prices will strengthen in the medium to long term. No further material capital expenditure is contemplated for the second half of the financial year and it is anticipated that Andulela will receive regular dividend payments from the investment.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
