| Mon 1 Jun 2009, 7:30 | | CMO - Chrometco - Reviewed consolidated results for the financial year ended 28 |
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CMO
CMO
CMO - Chrometco - Reviewed consolidated results for the financial year ended 28
February 2009 and further cautionary announcement
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO & ISIN: ZAE000070249
("Chrometco" or "the group")
REVIEWED CONSOLIDATED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY
2009
BALANCE SHEET Reviewed Audited
as at as at
28 Feb 29 Feb
2009 2008
R`000 R`000
ASSETS
Non-current assets 2 967 3 881
Motor vehicles and equipment 40 639
Intangible assets 2 600 2 600
Deferred taxation 327 642
Current assets 36 789 29 640
Inventories - 53
Trade and other receivables 198 292
Cash and cash equivalents 36 591 29 295
Total assets 39 756 33 521
EQUITY AND LIABILITIES
Capital and reserves 35 680 30 207
Issued capital 2 2
Share premium 35 485 35 985
Retained income / (accumulated loss) 193 (5 780)
Minority interests - -
Non-current liabilities - 353
Long-term finance leases - 353
Current liabilities 4 076 2 961
Trade and other payables 1 170 2 400
Provisions -
Current portion of long-term
borrowings - 85
Taxation payable 2 906 476
Total equity and liabilities 39 756 33 521
INCOME STATEMENT
Reviewed Audited
12 months 12 months
ended ended
28 Feb 29 Feb
2009 2008
R`000 R`000
Revenue 13 061 13 000
Cost of sales (53) -
Gross profit 13 008 13 000
Other income 85 46
Operating expenses (7 233) (5 736)
Net profit before interest
and taxation 5 860 7 310
Investment income 2 895 1 814
Finance charges (42) (61)
Net profit before taxation 8 713 9 063
Taxation (2 740) 212
Attributable to minority interest - -
Net Profit for the period 5 973 9 275
Reconciliation between earnings and headline earnings
per share
Basic earnings per share (cents) 3.19 4.99
Diluted earnings per share (cents) 3.19 4.99
Headline earnings per share for the year ended 28 February 2009
Earnings for the year 5 973 9 275
Adjustments:
Reversal of impairment - (2 600)
Loss on disposal of property,
plant and equipment 202 66
Loss on disposal of subsidiaries - 61
Loss on impairment of investments - 11
Headline profit attributable
to ordinary shareholders 6 175 6 813
Headline earnings per share (cents) 3.30 3.67
Weighted average number of
shares (`000) 187 372 185 795
CASH FLOW STATEMENTS
Reviewed Audited
12 months 12 months
ended ended
28 Feb 29 Feb
2009 2008
R`000 R`000
Cash flows from operating
activities 7 909 8 335
Cash flows from investing
activities 325 (686)
Cash flows from financing
activities (938) 21 478
Net movement in cash and cash
equivalents 7 296 29 127
Cash and cash equivalents at
the beginning of the period 29 295 168
Cash and cash equivalents at
the end of the period. 36 591 29 295
STATEMENT IN CHANGES OF EQUITY
Capital Minority Retained Total
and Premium interest Earnings
R`000 R`000 R`000 R`000
Balance at 1
March 2007 14 853 - (15 055) (202)
Issue of
shares 23 132 - - 23 132
Repurchase of
Shares (1 998) - - (1 998)
Net profit for
the period - - 9 275 9 275
Balance at 29
February 2008 35 987 - (5 780) 30 207
Repurchase of
shares (500) - - (500)
Net profit for
the period - - 5 973 5 973
Balance at 28
February 2009 35 487 - 193 35 680
COMMENTARY - Financial and operational overview.
1. The directors present the reviewed consolidated financial results for the
twelve months ended 28 February 2009
2. Basis of preparation
The accounting policies of the group comply in all material respects with the
recognition and measurement criteria of International Financial Reporting
Standards ("IFRS") and its interpretations adopted by the International
Accounting Standards Board ("IASB") in issue and effective at 28 February 2009.
These results have been prepared in accordance with IFRS, as well as the
presentation and disclosure requirements of IAS 34 - Interim Financial
Reporting, and also in accordance with the JSE Listings Requirements and the
Companies Act of 1973. The accounting policies and methods of measurement and
recognition are consistent with those applied in the financial period ended 29
February 2008.
3. Auditors` report
The Chrometco group`s auditors, RSM Betty & Dickson (Johannesburg), have
reviewed these year-end results. Their unqualified report is available for
inspection at the company`s registered office during normal office hours.
4. Investments are valued at cost less accumulated impairment losses.
5. Change in classification
During the year the company modified the balance sheet classification. Payroll
related provisions were classified separately as "provisions". Payroll related
provisions are now included in "trade and other payables". Comparative amounts
were restated for consistency, which resulted in provisions of R 2,213m
reclassified from "provisions" to "trade and other payables".
6. Nature of business.
The company is involved in the exploration of mineral resources and the possible
beneficiation thereof.
7. General review of operations.
During the year under review, management focused its attention on the following
significant issues:-
- Conversion of its used old order mineral right on its Rooderand property to a
new order right.
- Finalisation of the sale of its chrome ore reserve.
- The acquisition of mineral rights, and business opportunities in the Republic
and elsewhere in Africa.
- Optimisation of the allocation of capital resources.
During the first six months of the year under review, the company entered into
negotiations to acquire two copper cobalt opportunities in the Democratic
Republic of the Congo. The cost of acquiring these resources, coupled with the
deteriorating investment climate in that country led management to pursue local
investment opportunities over further projects in the DRC at the present time.
In August 2008, as part of a restructuring of the board of directors, the
company welcomed the appointments of Messrs. PJ Cilliers and JG Scott to the
board. Messrs. SH Simons and JHR Raubenheimer resigned from the board at that
time. Mr. PC Baloyi succeeds Mr. JHR Raubenheimer as Chairman of the board and
Mr. PJ Cilliers succeeds Mr. SH Simons as the Managing Director of the company
until the next annual general meeting of the company.
During the year under review, Chrometco lodged its application to convert its
used old order mineral right to a new order mining right in terms of the Mineral
and Petroleum Resources Development Act. The successful conversion of this right
is the final condition precedent to the sale of its Rooderand chrome ore reserve
that currently remains outstanding. The balance of the sale proceeds receivable
(approximately R 36m) will be receivable upon the successful conversion of the
used old order right.
Management will continue to search for lucrative mineral and resource related
opportunities. Given the company`s strong cash position, Chrometco is well
placed to select high value projects from a large pool of available
opportunities that are continually presenting themselves to the company.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 5 May 2009 shareholders are advised
that negotiations are still in progress which, if successfully concluded may
have a material effect on the price of Chrometco`s securities. Accordingly,
shareholders are advised to continue exercising caution when dealing in the
company`s securities until a further announcement is made.
For and on behalf of the board of directors
PJ Cilliers JR Francey
Interim Managing Director Financial Director
29 May 2009
Directors: PC Baloyi (Chairman), PJ Cilliers (MD), JR Francey (FD),
JG Scott, TW Scott.
Designated Advisor: River Group.
Company Secretary: Computershare
Date: 01/06/2009 07:30:02 Produced by the JSE SENS Department.
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