| Wed 24 Jun 2009, 7:30 | | SNU - Sentula - Audited Provisional Results For The Year Ended 31 March 2009 |
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SNU - Sentula - Audited Provisional Results For The Year Ended 31 March 2009
And Cautionary Announcement
Sentula Mining
Incorporated in the Republic of South Africa
(Registration number 1992/001973/06)
JSE share code: SNU ISIN code: ZAE000107223
("Sentula" or "the company" or "the group")
www.sentula.co.za
AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 31 MARCH 2009 AND CAUTIONARY
ANNOUNCEMENT
Revenue increased by 13% to R3,0 billion (2008: R2,7 billion) Operating profit
up 300% to R480 million (2008: R120 million) Basic EPS improved by 121% to
121,1 cents (2008: 54,7 cents) Cash generated from operations increased by
107% to R967 million (2008: R468 million)
"Despite the extraordinary challenges faced by the company during the
financial year, we have continued to address the concerns, as outlined in our
recent announcements, and the business has shown steady growth in a volatile
trading environment. The sound foundation, now established, provides a solid
platform to continue to execute our strategic objectives. We are facing the
future with renewed determination and clarity of purpose." - Robin Berry,
CEO, Sentula Mining
The provisional financial statements are presented on a summarised
consolidated basis.
Balance Sheet
as at 31 March Actual Restated
2009 2008
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 2 829 525 2 300 227
Intangible assets 12 174 12 008
Investment in equity-accounted 333 225 267 110
associate
Goodwill 423 275 372 691
Mineral rights 418 410 364 305
4 016 609 3 316 341
Current assets
Inventories 322 570 301 120
Trade and other receivables 471 571 551 458
Bank balance and cash 125 774 285 175
919 915 1 137 753
Total assets 4 936 524 4 454 094
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 1 534 370 1 530 217
Reserves 642 200 358 785
Ordinary shareholders` funds 2 176 570 1 889 002
Outside shareholders` funds 87 451 87 335
Total shareholders` funds 2 264 021 1 976 337
Non-current liabilities
Long-term borrowings 1 076 248 1 232 865
Rehabilitation provision 77 135 67 790
Deferred taxation 237 314 211 618
1 390 697 1 512 273
Current liabilities
Trade and other payables 466 345 434 949
Current portion of long-term 660 493 472 458
borrowings
Bank overdraft 88 326 -
Taxation 66 642 58 077
1 281 806 965 484
Total equity and liabilities 4 936 524 4 454 094
Net asset value per share (cents) 984 859
Tangible net asset value per share 795 692
(excluding goodwill) (cents)
Cash Flow Statement
for the year ended 31 March Actual Restated
2009 2008
R`000 R`000
Profit after tax 278 647 110 271
Non-cash flow items 563 968 547 595
Cash generated from operations before 842 615 657 866
working capital adjustments
Changes in working capital 124 770 (189 803)
Cash generated from operations 967 385 468 063
Interest paid (237 470) (126 726)
Taxation paid (41 330) (52 537)
Cash flows from operating activities 688 585 288 800
Cash flows utilised in investing (914 198) (1 481 962)
activities
Net addition to property , plant and (892 602) (1 253 614)
equipment
Investment in equity accounted 24 192 (165 417)
associate
Acquisition of subsidiaries - (57 817)
Acquisition of joint venture (61 482) -
Acquisition of minority interest - (13 880)
Interest received 15 694 8 766
Cash flows from financing activities (22 114) 1 313 826
Issue of shares - 698 730
Long-term liabilities 889 659 703
Dividend paid (23 003) (44 607)
Net (decrease)/increase in cash and (247 727) 120 664
cash equivalents
Cash and cash equivalents at the 285 175 164 511
beginning of period
Cash and cash equivalents at the end of 37 448 285 175
period
Income Statement
for the year ended 31 March Actual Restated
2009 2008
R`000 R`000
Revenue 2 989 835 2 656 039
Operating profit before finance charges 479 669 120 013
Net finance charges (252 305) (154 183)
Excess of fair value of assets and 21 075 77 411
liabilities acquired over purchase
price
Income from investment in associate 90 307 101 693
(net of tax)
Net profit before taxation 338 746 144 934
Taxation (60 099) (34 663)
Net profit after taxation 278 647 110 271
Earnings attributable to outside 116 -
shareholders
Earnings attributable to ordinary 278 531 110 271
shareholders
Basic earnings per share 121,1 54,7
Headline earnings/(loss) per share 109,1 (26,5)
Shares in issue (000)
- at end of period 235 566 235 566
- weighted average for the period 230 012 201 699
interim dividend (declared) - 11
final dividend (declared ) - 10
total dividend (declared) - 21
Reconciliation of Headline Earnings
for the year ended 31 March Actual Restated
2009 2008
R`000 R`000
Net profit for the year attributable to 278 531 110 271
equity holders of the parent
Adjust for:
Profit on sale of plant and equipment (8 130) (8 017)
Loss on sale of plant and equipment 9 494 1 827
Impairment of plant and equipment 506 2 131
Scrapping of assets 8 517 -
Profit on disposal of subsidiary (16 346) -
Excess of fair value of assets and - (83 407)
liabilities acquired over purchase price -
Koornfontein
Excess of fair value of assets and
liabilities acquired over purchase price
- Nkomati - (77 411)
Excess of fair value of assets and
liabilities acquired over purchase price
- Benicon Mining (21 075) -
Tax effect of above adjustment (538) 1 177
Headline earnings attributable to ordinary 250 959 (53 429)
shareholders
Segmental analysis
Opencast
mining and Exploration Drilling and
2009 (R`000) earthmoving drilling blasting
External revenue 1 731 272 872 113 179 936
Inter-segment revenue 72 928 14 487 115 956
Total segment revenue 1 804 200 886 600 295 892
Segment result 183 673 191 395 18 621
Provision for unaccounted 45 749
funds
Recovery of missing 17 308
assets
Results from operating
activities
Net finance costs
Excess of fair value of
assets and liabilities
acquired over purchase
price
Share of profit of equity
accounted investees
Income tax expense
Profit for the period
Segment assets 2 537 375 756 052 157 899
Investment in equity-
accounted associate
Total assets
Segment liabilities 308 138 120 792 30 472
Unallocated liabilities
Total liabilities
Restated 2008 (R`000)
External revenue 1 315 533 774 179 132 430
Inter-segment revenue 44 385 - 69 658
Total segment revenue 1 359 918 774 179 202 088
Segment result 202 020 162 314 (6 865)
Provision for unaccounted (241 661)
funds
Results from operating
activities
Net finance costs
Excess of fair value of
assets and liabilities
acquired over purchase
price
Share of profit of equity
accounted investees
Income tax expense
Profit for the period
Segment assets 2 212 311 767 456 197 088
Investment in equity-
accounted associate
Total assets
Segment liabilities 245 828 102 488 14 977
Unallocated liabilities
Total liabilities
Segmental analysis (continued)
Equipment
trading
2009 (R`000) Crane hire and spares Coal mining
External revenue 44 317 120 799 34 009
Inter-segment revenue 385 60 841 990
Total segment revenue 44 702 181 640 34 999
Segment result 27 358 (9 948) 30 268
Provision for unaccounted
funds
Recovery of missing assets
Results from operating
activities
Net finance costs
Excess of fair value of 21 075
assets and liabilities
acquired over purchase price
Share of profit of equity 90 307
accounted investees
Income tax expense
Profit for the period
Segment assets 94 200 107 329 568 045
Investment in equity- 333 225
accounted associate
Total assets
Segment liabilities 6 770 15 922 81 415
Unallocated liabilities
Total liabilities
Restated 2008 (R`000)
External revenue 28 960 404 937 -
Inter-segment revenue - 17 762 -
Total segment revenue 28 960 422 699 -
Segment result 20 717 11 647 -
Provision for unaccounted
funds
Results from operating
activities
Net finance costs
Excess of fair value of 77 411
assets and liabilities
acquired over purchase price
Share of profit of equity 101 693
accounted investees
Income tax expense
Profit for the period
Segment assets 75 725 205 072 461 091
Investment in equity- 267 110
accounted associate
Total assets
Segment liabilities 1 108 36 972 69 909
Unallocated liabilities
Total liabilities
Segmental analysis (continued)
2009 (R`000) Other Eliminations Consolidated
External revenue 7 389 - 2 989 835
Inter-segment revenue - (265 587) -
Total segment revenue 7 389 (265 587) 2 989 835
Segment result (24 755) 416 612
Provision for 45 749
unaccounted funds
Recovery of missing 17 308
assets
Results from operating 479 669
activities
Net finance costs (252 305)
Excess of fair value of 21 075
assets and liabilities
acquired over purchase
price
Share of profit of 90 307
equity accounted
investees
Income tax expense (60 099)
Profit for the period 278 647
Segment assets 382 399 4 603 299
Investment in equity- 333 225
accounted associate
Total assets 4 936 524
Segment liabilities 1 805 038 2 368 547
Unallocated liabilities 303 956
Total liabilities 2 672 503
Restated 2008 (R`000)
External revenue - - 2 656 039
Inter-segment revenue - (131 805) -
Total segment revenue - (131 805) 2 656 039
Segment result (28 159) - 361 674
Provision for (241 661)
unaccounted funds
Results from operating 120 013
activities
Net finance costs (154 183)
Excess of fair value of 77 411
assets and liabilities
acquired over purchase
price
Share of profit of 101 693
equity accounted
investees
Income tax expense (34 663)
Profit for the period 110 271
Segment assets 268 241 - 4 186 984
Investment in equity- 267 110
accounted associate
Total assets 4 454 094
Segment liabilities 1 736 780 - 2 208 062
Unallocated liabilities 269 695
Total liabilities 2 477 757
Statement of Changes in Equity
Employee
share
Share Share incentive
capital premium reserve
R`000 R`000 R`000
Balance as at 31 March 2007 1 884 572 684 1 110
Restated profits
Profit for the year as
previously reported
Prior year adjustments - profit
Foreign currency translation
movement
Nkomati minority as a result of
business acquisition
Dividend paid
Share based payments 20 606
Share options exercised (4 073) (362)
Minority acquired
Shares issued 472 990 029
Restated balance at 31 March 2 356 1 558 640 21 354
2008
Profit for the year
Foreign currency translation
movement
Disposal of dormant subsidiaries
Dividend paid
Share based payments 16 709
Share options exercised (4 604)
Share options forfeited (4 185)
Business acquisitions 3 644
Balance at 31 March 2009 2 356 1 557 680 33 878
Statement of Changes in Equity (continued)
Foreign
currency
Treasury translation Retained
shares reserve earnings
R`000 R`000 R`000
Balance as at 31 March 2007 (35 626) (5 043) 258 644
Restated profits 110 271
Profit for the year as 113 567
previously reported
Prior year adjustments - (3 296)
profit
Foreign currency translation 2 544
movement
Nkomati minority as a result
of business acquisition
Dividend paid (42 851)
Share based payments
Share options exercised 4 847
Minority acquired
Shares issued
Restated balance at 31 March (30 779) (2 499) 326 064
2008
Profit for the year 278 531
Foreign currency translation 25 044
movement
Disposal of dormant
subsidiaries
Dividend paid (23 003)
Share based payments
Share options exercised 5 113
Share options forfeited 4 185
Business acquisitions
Balance at 31 March 2009 (25 666) 22 545 585 777
Statement of Changes in Equity (continued)
Non- Total ordinary
distributable Minority shareholders`
reserve interest funds
R`000 R`000 R`000
Balance as at 31 March 13 866 8 389 815 908
2007
Restated profits 110 271
Profit for the year as 113 567
previously reported
Prior year adjustments (3 296)
- profit
Foreign currency 2 544
translation movement
Nkomati minority as a 87 335 87 335
result of business
acquisition
Dividend paid (42 851)
Share based payments 20 606
Share options exercised 412
Minority acquired (8 389) (8 389)
Shares issued 990 501
Restated balance at 31 13 866 87 335 1 976 337
March 2008
Profit for the year 116 278 647
Foreign currency 25 044
translation movement
Disposal of dormant (13 866) (13 866)
subsidiaries
Dividend paid (23 003)
Share based payments 16 709
Share options exercised 509
Share options forfeited -
Business acquisitions 3 644
Balance at 31 March - 87 451 2 264 021
2009
Prior Year Restatement
The financial position and results of the group for the year ended 31 March
2008 were restated. Refer to the commentary under financial review for details
and circumstances giving rise to the restatement
After Before
restatement restatement
The effect of the restatement is as R`000 R`000
follows:
Balance Sheet
Property, plant and equipment 2 300 227 2 234 927
Investment in equity accounted 267 110 233 550
associate
Retained earnings 326 064 329 360
Deferred tax 211 618 193 334
Trade and other payables 434 949 351 077
Income statement
Cost of sales (2 126 808) (2 112 874)
Finance expense (162 949) (158 311)
Income from investment in associate 101 693 68 133
(net of tax)
Taxation (34 663) (16 379)
FINANCIAL REVIEW
Revenue for the year to March 2009 increased by 13% over the corresponding
period to R3,0 billion.
Opencast mining services contributed 58% of revenue or R1,7 billion with
exploration drilling contributing R872 million or 29%.
The operating margin EBITA remained at 16%.
Finance charges increased to R252 million (2008: R154 million).
Taxation increased to R60 million (2008: R35 million) resulting from an
effective tax rate of 18% (2008: 24%) due to STC charges, capital gains and
tax on the equity accounted investment.
Attributable earnings increased by 153% to R279 million and basic earnings per
share increased by 121% to 121,1 cents.
It was reported in last year`s annual report that an amount of R242m had been
misappropriated from the Group and that this amount had been fully provided
for in that year`s financial results. As the forensic investigation
progressed, it was further stated that it was unlikely that further
substantial losses would be detected, and as more information became
available, there may well be a reclassification between line items in the 2008
published results.
Based on evidence that existed at the time of release of the prior year`s
results it was thought that the fraud was perpetrated by artificially
increasing the cost base of certain assets. Further in-depth work conducted by
the KPMG Forensic and the company`s management team has however revealed that
while the amount defrauded remains R242 million it related only in part to
fixed assets with the remainder related to a recovery of import and associated
costs and a VAT recovery. This has resulted in a reversal in some of the asset
values (previously written down) and a consequential change in liabilities.
Depreciation and deferred tax have also been affected as a consequence of
these changes.
In addition, during the course of the 2009 financial year the company reviewed
the fair value calculation for the acquisition of the Koornfontein mine and
concluded that a liability was erroneously included in the calculation of the
negative goodwill and consequently the negative goodwill was understated by an
amount of R33.6million.
The overall effect of these changes is a reduction of R3.3 million in the
previous years` net income and a reduction of R3.3 million in net assets.
Given the prevailing market volatility and tight credit conditions, the Board
of Directors have decided to preserve the company`s cash resources and not
declare a dividend at the present time.
STRATEGIC REVIEW AND OBJECTIVES
The majority of Sentula`s earnings continue to be generated from coal and
energy sector related activities. While the provision of mining services
remains at the core of the business, income from investments in coal assets
have grown significantly during the period under review.
During the past year the company redeemed principal debt of R643 million and
interest of R246 million on its bank facilities. The group also invested R1,01
billion in new property, plant and equipment, primarily in the open cast
mining operations, consistent with the 2009 capital budget and the group`s
strategy to develop its coal mining operations. R746 million of this was
financed using existing debt facilities. The company`s aggressive capital
expansion programme during the 2008 and 2009 financial year has however
resulted in the company being fully resourced to meet its existing
commitments.
Consequently, the capital budget for the 2010 financial year has been limited
to R150 million. Of this amount approximately R100 million will be spent on
refurbishment of existing equipment and R50 million on new equipment. The
company intends funding the capital expenditure programme for 2010 from
internally generated cash resources. The company`s overdraft facility will be
used to bridge any working capital requirements. The company has agreed the
term sheet for the reschedule of its senior syndicated facility and its main
vehicle asset finance facility. These facilities have been renegotiated to
ensure that the group has the necessary working capital to fund its
refurbishment and capital acquisition programmes.
The company can also confirm that an amount of R45,75 million of the
misappropriated funds was recovered during the course of the 2009 financial
year. This amount represents the first recovery of funds misappropriated from
the company during the 2008 financial year. The company can also confirm that
assets with a current market value of approximately R38 million have been
identified in entities in final liquidation as a consequence of legal action
by the company. The recovery of proceeds from the realisation of these assets
has not been accounted for in the 2009 results as their ultimate realisable
value is still uncertain.
The emphasis of the forensic investigation has shifted to the recovery of
assets and the company has instituted a number of legal and criminal actions
against the implicated entities and individuals to recover further
misappropriated funds.
Sentula has appointed a financial advisor to review the company`s capital
structure with the view of continuing to unlock value from the business.
Safety track record
The group`s safety performance, on the whole, has been below Sentula`s target,
with three subsidiaries reporting serious incidents during the period, which
resulted in the deaths of three employees and serious injury to three others.
The resultant group Classified Injury Frequency Rate of 2,59 per million man
hours worked, while within industry norms, is above our target of 2,50.
Sentula remains committed to working with its clients to identify hazards and
reduce risks in all their operations.
Sentula continues to nurture the concept of zero harm, by placing the health
and safety of its employees as its top priority.
Mining services
Despite the downturn in demand for resources, the group has maintained and
grown its presence across the African continent. Through this, the Sentula
group is still a leading open-cast coal mining contractor in South Africa, an
international mining services provider with operations in twelve African
countries, and a leading exploration drilling company across the continent.
The company`s foothold in the coal and energy sector, coupled with its
(diversified and integrated) service offering, client base, mineral exposure
and geographical spread, have created a solid platform for ongoing sustainable
growth.
Shareholders are advised that Scharrighuisen Opencast Mining (Proprietary)
Limited and Scharrighuisen Drilling and Blasting (Proprietary) Limited have
changed their names to Megacube Mining (Proprietary) Limited ("Megacube") and
JEF Drill and Blast (Proprietary) Limited ("JEF") respectively.
Opencast mining
In Megacube, the legacy issues identified during the first half of last year,
are in the process of being addressed. Although, due to the sheer magnitude,
the turnaround strategy took time to gain momentum, it has now reached
critical mass and results are in line with the current financial year
expectations. Repriced rates on key contracts and a rigorous equipment
refurbishment programme are ensuring that turnover targets and acceptable
margins are being met. Megacube is currently operating at its contract
capacity, in terms of equipment deployment.
Benicon Opencast Mining (Proprietary) Limited ("Benicon"), enjoyed a solid
performance in F2009 and is expected to maintain capacity and margin during
the current financial year.
Classic Challenge Trading (Proprietary) Limited ("CCT"), with its expertise in
non-coal mining activities, was detrimentally impacted during the second half
of 2009, by the downturn in demand for ferrochrome. This impact was partially
offset by increased output requirements from the Smokey Hills open pit
platinum project.
Strategically, under the Benicon entity, the group has established an
equipment hire business in Moatise, Mocambique in preparation for the large
scale coal mining operations, planned to come on stream from 2010 onwards.
At approximately 32% of operating profit (EBITA), this segment is envisaged to
continue to be a significant contributor to the group`s earnings in the F2010
year.
Drilling and blasting
JEF, operating in support of the group`s opencast coal contracting activities
and directly to third party clients, continues to provide a packaged blasting
solution to its customers. For the year ahead, the segment is expected to
maintain its level of contribution to the group, through further
diversification of its client base and reduced capital spend on drilling
capacity, at a number of operations.
Exploration drilling
Geosearch Holdings (Proprietary) Limited ("Geosearch") was significantly
impacted by the downturn in global resources, during the latter half of 2008,
particularly in its non-southern African operations. As confidence in certain
mineral sectors continues to recover, Geosearch has seen its order book
starting to fill once again, and the international side of the business is
expected to return to capacity during the second half of this year.
Despite the drop in earnings of some 60% for the second half, Geosearch
produced a solid contribution in the F2009 year, as a result of robust growth
in the first half, wide geographic spread and good overall margins. This
segment, has significantly diversified the group`s overall earnings. Even in
the current climate, Geosearch is expected to remain a substantial contributor
to the group`s earnings and cash flows going forward.
Crane hire
Ritchie Crane Hire (Proprietary) Limited ("Ritchie") continues to benefit from
the ongoing demand for medium to large mobile cranes, with the commensurate
rigging expertise, to support the sustained high level of project activity in
the Mpumalanga region. Ritchie is set to continue to benefit from the ongoing
large infrastructure projects, currently being undertaken in South Africa.
Coal mining investments
During the past year, SRK Consulting (South Africa) (Proprietary) Limited
("SRK") completed a competent person report ("CPR") on the group`s coal
portfolio. The CPR comprised a review of a number of technical and feasibility
studies conducted by external technical consultancies on the group`s operating
and near production assets. The results of the CPR were announced on SENS on
12 May 2009.
Sentula is currently invested in six projects (4 in South Africa, 1 in
Botswana and 1 in Zambia). The projects can be broadly categorised as follows:
Operating Assets
Nkomati Anthracite
Sales demand for anthracite held up until the last quarter of the financial
year, when demand reduced on the back of ferrochrome market weakness.
Nkomati Anthracite completed the development of a boxcut to access the
Mangweni underground reserve block, in order to diversify its production
sources. The underground operation is now operating at capacity. The
development of the Madadeni opencast block has been delayed, pending a
sustainable increase in the demand for anthracite.
Koornfontein
The colliery performed well during the last financial year, despite the
downturn in export coal pricing experienced during the latter part of the
year. The mine completed the feasibility study for the development of its
extensive 4 seam coal reserves.
Given the current export coal price forecasts, and the Richards Bay Coal
Terminal throughput projections, the contribution from Koornfontein in the
coming year, is expected to be similar to that reflected in the year under
review.
Near production coal assets
Of the four resource areas in the Merafe Coal Joint Venture, two of the
prospects, namely Schoongezicht and Bankfontein are currently being progressed
to development. The mine licensing and environmental impact assessment process
is well under way on both projects and is expected to be completed in
September 2009.
Further exploration drilling is being undertaken on the remaining Merafe Coal
prospects.
Exploration coal investments
Exploration on the Asenjo Energy project in Botswana and the Indongo Mining
project in Zambia continues in line the investment based work programmes.
Further investment in the Mabapa Mining prospect, following the completion of
the phase 1 exploration drilling has been suspended given the project
economics not meeting investment return requirements at the current time.
Financial Services Board investigation
The company has co-operated fully with the Financial Services Board (FSB) in
their investigation into certain share dealings and the circumstances that led
to the restatement of its 2007 financial results.
Changes to the board
Post the period under review several changes were made to the board. Sir Sam
Jonah stepped down as Chairman and remains on the board as non-executive
director. Jeff van Rooyen was appointed as Chairman and Jonathan Best as
Deputy Chairman.
The following appointments and resignations to the board of directors took
place during the year:
Appointments
A Kawa - 11 September 2008; P Kingston - 11 September 2008; D Marole - 11
September 2008; J van Rooyen - 11 September 2008; P Modisane - 1 October 2008.
Resignations
T Hendry - 16 June 2008; P Huysamer - 9 July 2008; C Moorcroft - 8 September
2008; D Gihwala - 11 September 2008; A Joffe - 5 December 2008.
RK Jonah did not make himself available for selection.
Basis of Presentation
The accounting policies applied in the preparation of these provisional
summarised financial statements are in accordance with International Financial
Reporting Standards ("IFRS"); the presentation and disclosure requirements of
IAS34 interim Financial Reporting and are consistent with those applied in the
provisional summarised financial statements for the year ended 31 March 2009.
These provisional summarised financial statements as set out in this report
have been prepared in terms of the Companies Act, 1973 (Act 61 of 1973), as
amended, and the listings requirements of JSE Limited.
Audit opinion
The provisional summarised consolidated balance sheet at 31 March 2009 and the
related provisional summarised consolidated income statement, statement of
changes in equity and cash flow statement for the year then ended have been
audited by KPMG Inc. Their unqualified audit report is available for
inspection at the registered office of the company.
FORWARD-LOOKING INFORMATION
Certain statements in this press release may constitute forward-looking
information within the meaning of securities laws. In some cases, forward
looking information can be identified by the use of such terms such as "may",
"will", "should", "expect", "believe", "plan", "scheduled", `intend",
"estimate", "forecast", "predict", "potential", "continue", "anticipate" or
other similar expressions concerning matters that are not historical facts.
Forward looking information may relate to managements future outlook and
anticipated events or results, and may include statements or information
regarding the future plans or prospects of the company.
Forward looking information involves known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future
results, performance or achievements expressed or implied by such forward
looking information. Such risks and uncertainties include among others:
economic, business and political conditions in South Africa; decreases in the
market price of coal; hazards associated with surface and underground mining;
the ability to attract and retain qualified personnel; labour disruptions;
changes in laws and government regulations, particularly environmental
regulations and mineral rights legislation including risk related to the
acquisition of the necessary licences and permits; changes in exchange rates;
currency devaluations and inflation and other macro-economic factors; risk of
changes in capital and operating costs, financing, capitalisation and
liquidity risks, including the risk that the financing required to fund
planned exploration and related activities may not be available on
satisfactory terms, or at all and the ability to maximise the value of any
economic resources. These forward looking statements speak only as of the date
of this document.
You should not place undue importance on forward looking information and
should not rely upon this information as of any other date. The company
undertakes no obligation to update publicly or release any revisions of these
forward looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events except
where required by applicable laws.
DIVIDEND
No dividend has been declared by the board in respect of the year ended 31
March 2009.
CAUTIONARY (not audited by KPMG Inc.)
Shareholders are advised that the board of directors of Sentula is considering
various initiatives to, inter alia, strengthen its balance sheet and allow for
the alignment of its capital structure to its business model and the current
environment, which if successfully concluded may have a material effect on the
price of the company`s securities. Accordingly, shareholders are advised to
exercise caution when dealing in the company`s securities until a further
announcement of the details of the initiatives is made.
On behalf of the board
Jeff van Rooyen Robin Berry Woodmead
Non-executive Chairman CEO, Managing Director 24 June 2009
Directors: J van Rooyen*# (Chairman), JG Best*# (Deputy Chairman), RC Berry,
SE Jonah KBE *, A Kawa*#, P Kingston*#, GP Louw, D Marole*#, PP Modisane, EHJ
Stoyell*#
* Non-executive #Independent
Registered address: Ground Floor, Building 14, Woodlands Office Park,
Woodmead, 2080
PO Box 76, The Woodlands Office Park 2080
Tel (011) 656-1303
Transfer Secretaries: Link Market Services South Africa (Proprietary) Limited.
5th Floor, 11 Diagonal Street, Johannesburg, 2001.
PO Box 4844, Johannesburg 2000.
Tel (011) 832-2652
Investor Relations Advisers: College Hill.
Sponsor: Merchantec (Proprietary) Limited
Auditor: KPMG Inc.
Date: 24/06/2009 07:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
