| Mon 16 Nov 2009, 8:00 | | ALM - Alliance Mining Corporation Limited - Changes To The Board; Update On The |
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ALM
ALM
ALM - Alliance Mining Corporation Limited - Changes To The Board; Update On The
Financial Results Of The Company; And Renewal Of The Cautionary Announcement
ALLIANCE MINING CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/013402/06)
JSE code: ALM
ISIN: ZAE000104733
("Alliance" or "the company")
ANNOUNCEMENT RELATING TO:
- CHANGES TO THE BOARD;
- UPDATE ON THE FINANCIAL RESULTS OF THE COMPANY; AND
- RENEWAL OF THE CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the announcements dated 6 October 2009 and 17
September 2009 and are advised as follows:
CHANGES TO THE BOARD
At a meeting of the Board of Directors ("Board") held on 8 November 2009, the
following changes to the Board were approved:
- Due to health reasons, Mr Alwyn Steenkamp has been granted a leave of
absence from the Board relating to his duties as the company`s CEO until
further notice.
- Mr Carel Neethling will assume the position as acting CEO (but not as a
director) of the company with immediate effect until such time as Mr
Steenkamp returns to his post. Mr. Neethling is currently the Group
Manager New Business, Exploration & Marketing of Alliance and will focus on
management and corporate governance issues.
- Ms Connie van Nieuwkerk resigned as financial director and company
secretary with effect from 16 November 2009.
Mr Eugene de Kok resigned as a non-executive director with effect from 31
October 2009.
UPDATE ON THE FINANCIAL RESULTS OF THE COMPANY
With reference to the announcement, dated 6 October 2009, relating to the
finalisation of the audit for the year ended 28 February 2009, shareholders are
advised that Ngubane Zeelie Inc.("auditors") during the course of their audit,
raised concerns that:
- The financial statements for the year ended 29 February 2008 are overstated
and that adjustments may be required that could result in a break-even
position as opposed to the previously published profit after tax of R80.7
million; and
- The financial statements for the year ended 28 February 2009 are overstated
and adjustments may result in the group reflecting a loss after tax as
opposed to the previously published profit after tax of R149 million.
As a result of the above concerns raised by the auditors, shareholders are
advised that the financial results for the year ended 28 February 2009,
published on 15 June 2009 are herewith withdrawn and that no reliance should be
placed on these results.
The auditors have filed a reportable irregularity report with IRBA as required
by law. This report relates to inter alia, possible contraventions of the
Listings Requirements of the JSE and the Companies Act, as well as overstatement
of previously published profits.
At the Board meeting held on 8 November 2009, the Board resolved to:
- Accept the changes to the Board referred to above;
- Appoint Grant Thornton, as independent advisers, to assist the group to
finalise and publish the annual financial statements for the year ended 28
February 2009 and to address the concerns and reportable irregularities
identified by the auditors;
- Kevin Coyle, seconded by Grant Thornton, has been appointed interim Chief
Financial Officer (but not as a director) and interim Company Secretary of
the company;
- Extend the mandate of the auditors to include audits of all the
subsidiaries of the group.
RENEWAL OF THE CAUTIONARY ANNOUNCEMENT
The Board is conscious of the seriousness of the above matters and their likely
impact on the results of the company, and has instituted the necessary
procedures to ensure full disclosure on the various matters referred to in this
announcement.
Until such time as the Board reports back on the finalisation of the annual
financial statements and the concerns raised by the auditors, including
verification and quantification of the likely impact on the results of the
company, shareholders are advised to continue to exercise caution when dealing
in the company`s securities.
Johannesburg
13 November 2009
Date: 16/11/2009 08:00:01 Produced by the JSE SENS Department.
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