| Fri 18 Sep 2009, 15:13 | | CMO - Chrometco - Financial Effects And Renewal Of Cautionary Announcement |
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CMO
CMO
CMO - Chrometco - Financial Effects And Renewal Of Cautionary Announcement
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2002/026265/06)
(JSE Code: CMO ISIN: ZAE000070249)
("Chrometco" or "the company")
FINANCIAL EFFECTS AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised that the financial effects referred to in the
announcements published on SENS on 29 June 2009 and 7 August 2009 and being
the reason for the cautionary published on SENS have now been finalised and
are set out below as required by the JSE Listings Requirements.
FINANCIAL EFFECTS OF THE TRANSACTION
The table below sets out the unaudited pro forma financial effects of the
corporate action ("transaction"), based on Chrometco`s audited results for the
year ended 28 February 2009. The financial effects are presented for
illustrative purposes only and because of their nature may not give a fair
reflection of the Company`s results, financial position and changes in equity
after the transaction. It has been assumed for purposes of the pro forma
financial effects that the above transaction took place as at 28 February 2009
for balance sheet and for the period 1 March 2008 to 28 February 2009 for
income statement purposes. The directors of Chrometco are responsible for the
preparation of the financial effects.
1 2 3 4
Before Pro forma
audited after
twelve unaudited
months to twelve
28 February months to
2009 Acquisition 28 February %
of Lime-Chem 2009 change
Weighted (shares) 187 372 364 372 800 000 560 172 364 197
average
number of
shares
Shares for (shares) 184 928 683 372 800 000 557 728 683 198
net asset
value
calculation
Basic (cents) 3,19 (2,39) 0,8 (74,9)
earnings per
share
Basic (cents) 3,30 (2,50) 0,8 (75,8)
headline
earnings per
share
Net asset (cents) 18,9 (3,2) 15,7 (16,9)
value per
share
Tangible net (cents) 17,5 (11,1) 6,4 (63,4)
asset value
per share
Notes:
1. This column represents the "before" financial information, which has been
extracted, without adjustment, from the published audited consolidated results
of Chrometco for the twelve months ended 28 February 2009.
2. This column reflects the effect of the 89.989% acquisition of Lime-Chem and
the issue of shares in settlement of the R 66.6m purchase price. These values
are unaudited.
3. This column reflects the effect after the acquisition of Lime-Chem and the
issue of shares in settlement of the R 66.6m purchase price. These values are
unaudited.
4. This column reflects the percentage change the above transaction has on the
performance per ordinary share of Chrometco. Actual figures have been used to
determine percentage change rather than the rounded figures reflected above.
5. The Board would like to confirm and highlight the fact that the above
financial information is based on a fair value of R 55.1m in respect of Lime-
Chem`s identifiable net assets, which does not include the fair value of the
Kiln Project. The fair value of Lime-Chem (including the Kiln Project) has
been independently assessed as being between R 283.5m and R 549.7m details of
which will be included in the circular to be posted to shareholders in due
course.
The assumptions used above are:
- earnings remain constant;
- all shares are issued based on Kiln profitability targets being achieved;
- Chrometco earns interest on cash deposits at a rate of 7%.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 7 August 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 full announcement is made.
Pretoria
18 September 2009
Designated Advisor
River Group
Date: 18/09/2009 15:13:02 Produced by the JSE SENS Department.
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