| Thu 6 May 2010, 16:00 | | MMH - Miranda Mineral Holdings - Unaudited Condensed Consolidated Financial |
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MMH
MMH
MMH - Miranda Mineral Holdings - Unaudited Condensed Consolidated Financial
Results for the six months ended 28 February 2010
Miranda Mineral Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/001940/06)
Share code: MMH ISIN: ZAE000074019
("Miranda" or "the company" or "the group")
Unaudited Condensed Consolidated Financial Results for the six months ended 28
February 2010
Process to list Miranda Coal separately under way
Independent valuation of first six coal projects by Venmyn
Planned schedule to open one mine a year for the next three years remains on
track
Sesikhona:
- Commencement of mining at Sesikhona scheduled for 1 June 2010
- Final stages in the negotiations of an off take agreement
Uithoek
- Granting of Mining Right imminent
- First coking coal project moving to near production
Burnside
- Mining Right application and EMP accepted by DMR
Project pipeline
- Coal interests extended to Botswana
- Acquisition of additional 14 KZN Prospecting Rights mostly contiguous with or
close to existing projects
STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Six months Six months Six months
ended ended ended
28 Feb 29 Feb 31 Aug
(Figures in R`000) 2010 2009 2009
Assets
Non-Current Assets
Property, plant and 8,018,180 7,091,371 9,156,934
equipment
Intangible assets 338,136,017 326,884,392 334,752,927
Investments in 40 40 40
associates
Other financial assets 2,664,038 - 2,664,038
348,818,275 333,975,803 346,573,939
Current Assets
Trade and other 1,376,880 556,227 1,193,174
receivables
Cash and cash 5,503,149 23,290,833 15,129,871
equivalents
6,880,029 23,847,060 16,323,045
Total Assets 355,698,304 357,822,863 362,896,984
Equity and Liabilities
Equity
Equity Attributable to
Equity Holders of
Parent
Share capital 91,812,466 91,812,466 91,812,466
Reserves 1,793,343 - 2,049,535
Retained income 248,248,695 261,078,214 255,084,522
341,854,504 352,890,680 348,946,523
Non-controlling (382,114) (160,435) (168,950)
interest
341,472,390 352,730,245 348,777,573
Liabilities
Non-Current Liabilities
Finance lease 2,315,841 3,128,961 2,782,501
obligation
Deferred tax 907,462 - 922,845
Environmental 8,163,572 - 7,892,023
rehablitation
provisions
11,386,875 3,128,961 11,597,369
Current Liabilities
Loans from shareholders 100,172 - 100,172
Other financial - 700,248 100,000
liabilities
Finance lease 911,812 717,480 867,921
obligation
Operating lease 34,617 - 22,121
liability
Trade and other 1,792,438 545,929 1,431,828
payables
2,839,039 1,963,657 2,522,042
Total Liabilities 14,225,914 5,092,618 14,119,411
Total Equity and 355,698,304 357,822,863 362,896,984
Liabilities
Net asset value per 138.02 142.57 140.98
share (cents)
Net tangible asset 1.35 10.45 5.67
value per share (cents)
Shares in issue - 247,400,494 247,400,494 247,400,494
closing number
STATEMENT OF FINANCIAL PERFORMANCE
Unaudited Unaudited Audited
Six months Six months Six months
ended ended ended
28 Feb 29 Feb 31 Aug
(Figures in R`000) 2010 2009 2009
Operating expenses (7,285,304) (5,742,225) (11,933,296)
Operating loss (7,285,304) (5,742,225) (11,933,296)
Investment revenue 410,058 1,155,952 1,815,095
Finance costs (445,308) (290,786) (629,902)
Loss before taxation (7,320,554) (4,877,059) (10,748,103)
Taxation (84,247) - (125,804)
Loss for the period (7,404,801) (4,877,059) (10,873,907)
Loss attributable to:
Owners of the parent (7,191,637) (4,873,886) (10,867,578)
Non-controlling (213,164) (3,173) (6,329)
interest
(7,404,801) (4,877,059) (10,873,907)
Loss per share (cents) (2.99) (2.11) (4.53)
Headline loss per (2.99) (2.11) (4.47)
share (cents)
Shares in issue - 247,400,494 231,265,679 239,687,698
weighted average
number
No dilution effect
STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Six months Six months Six months
ended ended ended
28 Feb 29 Feb 31 Aug
(Figures in R`000) 2010 2009 2009
Loss for the period (7,404,801) (4,877,059) (10,873,907)
Other comprehensive
income:
Gains and losses on (355,822) - 2,846,576
property revaluation
Taxation related to
components of other
comprehensive income 99,630 - (797,041)
Other comprehensive
income for the period
net of taxation (256,192) - 2,049,535
Total comprehensive (7,660,993) (4,877,059) (8,824,372)
loss
Total comprehensive
loss attributable to:
Owners of the parent (7,447,829) (4,873,886) (8,818,043)
Non-controlling (213,164) (3,173) (6,329)
interest
(7,660,993) (4,877,059) (8,824,372)
STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Six months Six months Six months
ended ended ended
28 Feb 29 Feb 31 Aug
(Figures in R`000) 2010 2009 2009
Cash flows from
operating activities
Cash used in (5,930,820) (5,897,919) (10,197,056)
operations
Interest income 410,058 1,155,952 1,815,095
Finance costs (173,772) (290,786) (629,902)
Net cash from (5,694,534) (5,032,753) (9,011,863)
operating activities
Cash flows from
investing activities
Purchase of property, (26,330) (1,163,992) (1,266,476)
plant and equipment
Purchase of other (3,383,090) (5,476,810) (5,964,798)
intangible assets
Movement in - (1,000,000) (1,000,000)
investments (incl.
subs, JVs & Assoc)
Purchase of financial - - (2,664,038)
assets
Net cash from (3,409,420) (7,640,802) (10,895,312)
investing activities
Cash flows from
financing activities
Proceeds on share - 17,167,442 17,167,442
issue
Repayment of other (100,000) (303,924) (1,035,247)
financial liabilities
Finance lease payments (422,769) (1,381,404) (1,577,423)
Net cash from (522,769) 15,482,114 14,554,772
financing activities
Total cash movement (9,626,723) 2,808,559 (5,352,403)
for the period
Cash at the beginning 15,129,871 20,482,274 20,482,274
of the period
Total cash at end of 5,503,148 23,290,833 15,129,871
the period
STATEMENT OF CHANGES IN EQUITY
Total Re-
Share Share share valuation
(Figures in Rand) capital premium capital reserve
Balance at 31 Aug 2,151,309 72,493,715 74,645,024 284,521,517
2008 reported
previously
Prior period - - - (284,521,517)
adjustments
Balance at 31 2,151,309 72,493,715 74,645,024 -
August 2008 -
restated
Changes in equity
Total - - - -
comprehensive
loss for the 6
months
Issue of shares 322,696 16,844,746 17,167,442 -
Business - - - -
combinations
Total changes 322,696 16,844,746 17,167,442 -
Balance at 28 2,474,005 89,338,461 91,812,466 -
February 2009 -
restated
Balance at 31 2,474,005 89,338,461 91,812,466 2,049,535
August 2009
Changes in equity
Total - - - (256,192)
comprehensive
loss for the 6
months
Revaluation - - - -
reserve realised
Total changes - - - (256,192)
Balance at 28 2,474,005 89,338,461 91,812,466 1,793,343
February 2010
Balance at 31 2,151,309 72,493,715 74,645,024 -
August 2008 -
restated
Changes in equity
Total - - - 2,049,535
comprehensive
loss for the year
Issue of shares 322,696 16,844,746 17,167,442 -
Business - - - -
combinations
Balance at 31 2,474,005 89,338,461 91,812,466 2,049,535
August 2009
Total
Attrribu-
table to
equity Non-
holders
(Figures in Retained of group/ controlling Total
Rand) income company interest equity
Balance at 31 (551,176) 337,816,855
Aug 2008 (20,798,510) 338,368,031
reported
previously
Prior period 287,788,096 3,266,579 495,186 3,761,765
adjustments
Balance at 31 266,989,586 (55,990) 341,578,620
August 2008 - 341,634,610
restated
Changes in
equity
Total (4,873,886) (3,173) (4,877,059)
comprehensive (4,873,886)
loss for the 6
months
Issue of - 17,167,442 - 17,167,442
shares
Business (1,037,486) (101,272) (1,138,758)
combinations (1,037,486)
Total changes (5,911,372) 11,256,070 (104,445) 11,151,625
Balance at 28 261,078,214 (160,435) 352,730,245
February 2009 352,890,680
- restated
Balance at 31 255,084,522 (168,950) 348,777,573
August 2009 348,946,523
Changes in
equity
Total (7,191,637) (213,164) (7,660,993)
comprehensive (7,447,829)
loss for the 6
months
Revaluation 355,810 355,810 - 355,810
reserve
realised
Total changes (6,835,827) (7,092,019) (213,164) (7,305,183)
Balance at 28 248,248,695 (382,114) 341,472,390
February 2010 341,854,504
Balance at 31 266,989,586 (55,990) 341,578,620
August 2008 - 341,634,610
restated
Changes in
equity
Total (6,329) (8,824,372)
comprehensive (10,867,578) (8,818,043)
loss for the
year
Issue of - 17,167,442 - 17,167,442
shares
Business (1,037,486) (106,631) (1,144,117)
combinations (1,037,486)
Balance at 31 255,084,522 (168,950) 348,777,573
August 2009 348,946,523
COMMENTARY
The Board of Directors welcomes this opportunity to update the shareholders of
Miranda on some of the exciting developments impacting on their investment
during the last six months.
1. STATEMENT OF COMPLIANCE
The condensed consolidated interim financial results of the Group for the six
month period ended 28 February 2010 are a summary of the Group`s unaudited
interim financial statements and comprise the Company and its subsidiaries.
2. PRESENTATION OF CONDENSED CONSOLIDATED INTERIM RESULTS
These interim financial results have been prepared in accordance with the
recognition and measurement criteria of IFRS, interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC), and the
presentation and disclosure requirements of International Accounting Standard:
Interim Financial Reporting (IAS34), the JSE Listings Requirements, AC 500 and
the South African Companies Act and are consistent with the previous annual
financial statements. In the preparation of these interim financial results, the
Group has applied key assumptions concerning the future and other indeterminate
sources in recording various assets and liabilities.
The Group`s principal accounting policies and assumptions have been applied
consistently over the current and prior financial period, except for IAS 1,
Presentation of Financial Statements; IAS 16, Property, plant and equipment; and
IAS 38, Intangible assets.
3. CHANGES IN ACCOUNTING POLICY
IAS 16, Property, plant and equipment - During the year, the group changed its
accounting policy with respect to the accounting treatment of aircraft. The
group has adopted the revaluation model for all property, plant and equipment
classified as aircraft. The change in accounting policy is applied
prospectively.
IAS 38, Intangible assets - During the year, the group changed its accounting
policy with respect to the treatment of intangible assets relating to mineral
rights. The Board has decided to change from the revaluation model to the
historical cost basis to enhance industry comparability. The change in
accounting policy is applied retrospectively. The changes in accounting policy
have no financial effect on the interim financial statements for the 6 months
ended 28 February 2009.
4. RESTATEMENT
The Group has reviewed its interpretation of IFRS 6, "Exploration for and
Evaluation of Mineral Resources", and as result has amended the treatment of
exploration and evaluation expenses. According to IFRS 6, if the entity has
obtained the legal rights to explore a specific area it may capitalise all
exploration and evaluation expenses until technical feasibility and commercial
viability of extracting a mineral resource are demonstrable.
The Group also reviewed its accounting for business combinations and on the
basis of non-compliance with IFRS 3 and IAS 38 on the business combinations in
2005 to 2008, the Group restated its accounts. The amendments resulted in the
following adjustment on the reported 28 February 2009 results:
Statement of Financial Position
Intangible assets R20,051,875
Goodwill (R11,713,631)
Reserves R284,521,517
Retained earnings (R292,009,396)
Non-controlling interest (R850,365)
Profit or Loss
Operating expenses (R5,476,810)
Non-controlling interest R218,024
As a result of the above restatement earnings and headline earnings per share
decreased from 4.4 cents loss per share to 2.1 cents loss per share,
respectively.
5. INTANGIBLE ASSETS
Unaudited six months ended 28 February 2010
Cost / Accumulated Carrying
(Figures in Rand) Valuation amortisation value
Mineral rights 315,761,924 - 315,761,924
Development properties 12,790,767 - 12,790,767
Exploration & evaluation 9,583,326 - 9,583,326
asset
Total 338,136,017 - 338,136,017
Unaudited 6 month ended
28 February 2009
Mineral rights 315,761,924 - 315,761,924
Development properties - - 12,790,767
Exploration & evaluation 11,122,468 - 11,122,468
asset
Total 326,884,392 - 326,884,392
Audited for the period
ended 31 August 2009
Mineral rights 315,761,924 - 315,761,924
Development properties 11,540,820 - 11,540,820
Exploration & evaluation 7,450,183 - 7,450,183
asset
Total 334,752,927 - 334,752,927
Exploration and evaluation asset
Unaudited Unaudited Audited
Six months Six months Period
ended ended ended
28 Feb 28 Feb 31 Aug Mineral
(Figures in 2010 2009 2009 rights
Rand)
Entity
Applewood 704,530 341,011 549,730 Coal
Trading 3 (Pty)
Ltd
Lauraville 102,371 69,785 102,371 Diamonds
Mynbou (Pty)
Ltd
Majestic Silver
Trading 348
(Pty) Ltd 1,058,068 - 498,359 Coal
Miranda Coal 2,563,265 1,362,752 2,455,265 Coal
(Pty) Ltd
Miranda 2,667,930 1,856,328 2,199,546 Coal, Base
Minerals (Pty)
Ltd
metals, Gold
& Diamonds
Naledi Mining 3,106 3,107 3,106 Clay
Solutions (Pty)
Ltd
Nungu Trading 132,224 8,550 132,224 Coal
695 (Pty) Ltd
Point Blank 423,498 422,398 423,498 Coal
Trading 104
(Pty) Ltd
Sesikhona
Klipbrand
Colliery
(Pty) Ltd - 6,621,277 - Coal
Street Spirit 880,362 265,157 597,930 Coal
Trading 54
(Pty) Ltd
Firefox (Pty) 227,727 172,103 227,727 Diamonds
Ltd - Botswana
Dwalalamadwala
Mining
Resesources 820,245 - 260,427 Coal
(Pty) Ltd
9,583,326 11,122,468 7,450,183
6. STRATEGIC AND CORPORATE REVIEW
At a strategic level, the plan to list the Group`s coal assets separately in a
"NewCoalCo", have gained considerable momentum during the period under review.
Out of the Group`s four business divisions, the South African coal assets are
the most mature in terms of development and have reached critical mass. Listing
these assets separately from Miranda Mineral Holdings Ltd had been identified
previously as the most efficient way in which to realise the intrinsic value of
Miranda Coal, which is presently being reflected in neither the share price nor
the balance sheet, and to unlock value for shareholders.
To this end, the Board has initiated the value realisation process by
investigating the most suitable regional domain on which to seek a listing for
Miranda Coal, the wholly-owned subsidiary of MMH and the vehicle housing the
Group`s South African coal assets. A range of factors were considered, including
valuation premium to be obtained, quantum of capital available in the different
markets, stock exchange liquidity, nature of individual markets and market
participants, investor understanding of and appetite for junior mining
companies, as well as the legal, fiscal and regulatory framework. Given current
financial market conditions, the Board favours the Australian domain for
listing, Miranda Coal. Both Miranda Coal and the operational assets will remain
SA tax residents, but the Board will nonetheless seek professional advice to
ensure that any potential impact of the recently announced new Australian mining
tax regime is minimized.
Venmyn has been mandated to complete Short-form Technical Resource and Valuation
Statements ("TRVS") on all six of the coal projects that are currently under
CPR. These "short-form" reports are based on the guidelines set out in Table 1
of the SAMREC Code and Table 2 of the SAMVAL Code. Projects included in the
exercise are Sesikhona, Uithoek, Burnside, Boschhoek, Majestic and Yarl. First
draft reports on five of these have already been completed and are presently
being reviewed by management. The findings and content of the TRVS`s will be
released to shareholders as soon as finalised. The work presently being carried
out by Venmyn will form the basis of independent fair and reasonable assessments
when a potential transaction is presented to shareholders.
These independent valuations also form a starting point for negotiations with
any potential counter-parties for externalising the coal assets into NewCoalCo.
In this regard, the Board has considered a number of different potential
structures for the transaction. These include an IPO, reverse-listing into an
existing, listed "shell" company or merging with another junior coal mining
company already listed. Discussions are continuing at various levels and the
Board expects to move to "cautionary announcement" stage as soon as appropriate.
Shareholders potentially stand to benefit in a number of ways from, and
depending on, the different transaction options being investigated by the Board
for NewCoalCo. These include:
Any transaction will incorporate a capital raising component, designed to bring
Miranda Coal`s pipeline of near-term production projects on stream ("one project
a year for five years"), to modernise and develop the coal logistics
infrastructure, and to continue bringing the portfolio of development and
exploration projects up the coal value curve.
A capital raising exercise in NewCoalCo is considered the most efficient way to
raise funding as it stands to incorporate and give recognition to the value that
has been created in the coal portfolio during the last number of years.
MMH, as the listed entity and current holding company, will retain a sizable
holding in NewCoalCo after the capital raising.
Any transaction will create an arms` length, "see-through" value for the coal
assets, which should provide an underpin to the MMH share price.
The Board will consider, subject to the capital gains tax and other fiscal and
regulatory implications, to "pass on" some of its shareholding in NewCoalCo to
MMH shareholders, for instance by means of a dividend in specie.
NewCoalCo will have in place the requisite Board and coal mining operational
expertise to ensure optimisation of its activities.
MMH will be allowed to focus on its core niche, which lies in identifying and
developing suitable exploration targets across the minerals and energy spectrum.
7. OPERATIONAL REVIEW
Much of the activity in Miranda Coal has been focused on gaining independent
verification of the value creation process that took place over the last two
years. Not only is this being done in support of the "spinning off" of the coal
assets as described above, but it is also a function of the normal advancement
of any exploration project.
7.1 SESIKHONA
Sesikhona represents the Group`s first mining project and has achieved a number
of significant milestones during the period under review, including:
Stefanutti Stocks Mining Services ("SSMS") have been selected as the preferred
mining contractor for Sesikhona.
SSMS is on schedule to move on site during the second half of May and commence
mining on 1 June 2010.
Additional core and percussion drilling have served to enhance the
understanding and definition of the resource, as well as improving the available
quality information.
The area of the open pit resource expected to be economically mineable has been
more than doubled from the previously announced 1.6mt.
SSMS, in association with consulting engineers VBKom, have completed the mine
plan and have presented Miranda with a revised project cost summary (detailed
bill of quantities) for consideration - this reflects a life of mine (excluding
potential high-walling, underground expansions) of 52 months, and a total mining
rate per ton of coal of R158.20 at an average stripping ratio of 6.5:1.
SSMS have commenced with recruitment in the local Verdriet and neighbouring
areas - approximately half of the labour force of 120 is expected to be drawn
from the local community that will be provided with additional training.
Miranda is close to finalising an off-take agreement with a SA-based counter-
party.
Full details will be presented to shareholders as soon as finalised.
7.2 UITHOEK
Uithoek is planned as the second of the Group`s coal projects to move into the
mining phase. Significant developments during the last six months include:
Management is engaged in last round discussions with the Department of Mineral
Resources ("DMR") before the finalisation of its Social and Labour Plan for
Uithoek. Although the formal DMR process is largely outside of management`s
control, approval of the Mining Right is expected within one calendar month
thereafter.
Additional in-fill and quality drilling have been completed on Uithoek and
management is awaiting the results.
SSMS have commenced with designing a concept mining plan on the project, which
will initially focus on the open pit area.
Uithoek is on schedule to start breaking ground in the second quarter of
Miranda`s 2010/11 financial year.
7.3 BURNSIDE
Burnside is contiguous to Uithoek and scheduled as Miranda Coal`s third, and
largest to date, mining project. The period under review has seen the project
advance in a number of ways:
Burnside`s Mining Right application was submitted and accepted by the DMR.
A scoping report for the project was submitted by mid-November 2009.
The environmental impact assessment was completed and the Environmental
Management Program was submitted to, and accepted by, the DMR in April 2010.
Consultations with the interested and affected parties were concluded by April
2010.
Miranda Coal has commenced with further drilling on Burnside, which is aimed at
upgrading its resource status to that of measured in terms of the SAMREC Code
and on obtaining more coal washability information.
From a timing perspective, Burnside lags Uithoek by approximately twelve months
and is therefore scheduled to start operations by the second quarter of
Miranda`s 2011/12 financial year.
7.4 MAJESTIC
An initial CPR was released on Miranda Coal`s 65%-owned Majestic project in KZN
(see SENS announcement dated 29 March 2010 and the Group`s website for more
detail). Majestic is located approximately 8km south of Sesikhona, and should be
able to share capacity and infrastructure.
Miranda`s initial drilling programme commenced in mid-2009 with 18 cored
boreholes. A total of 10 of these holes intersected coal seams, with the "no-
coal holes" intersecting previously mined areas. The economic seams are the Top
and Bottom Seams. The exploration programme results identified the Bottom Seam
as showing the most potential with good, mineable seam widths and good product
yields.
The in situ resource is in the "Inferred" category of the SAMREC classification
for multiple coal seam deposits and amounts to 5.37 million tons. The Top Seam
holds approximately 1.93 million tons and the Bottom Seam 3.44 million tons of
coal. Washed qualities were simulated for the different seams and blocks, and
yielded a 10.5% ash product with qualities required by the metallurgical
industry for steel making.
In-fill drilling with analytical data is required on the Majestic Project`s
property to upgrade all the resource blocks to an "Indicated" category. Further
drilling is continuing with the overall aim of extending the resource area,
improving the resource classification and increasing coal quality information.
7.5 NEW PROSPECTS ACQUIRED
Miranda Coal has signed conditional Memoranda of Understanding with four
companies in terms of which it will acquire a 62.5% interest in an additional 14
Prospecting Rights presently under application. All of the Prospecting Rights
have been accepted by the DMR and three have been granted to date. The
Prospecting Rights cover an additional 27,264 hectares in northern KZN`s Klip
River and Utrecht coalfields, and eight of the properties are either contiguous
with, or in the immediate vicinity of Miranda Coal`s existing projects. The MoUs
are subject to the granting of the Prospecting Rights and approval by the DMR of
the change in the controlling shareholding.
7.6 MIRANDA COAL BOTSWANA
Miranda Coal Botswana has entered into a conditional agreement with Goldington
Investments (Pty) Ltd ("Goldington") in terms of which it will acquire a 70%
interest in Goldington`s coal and coalbed methane ("CBM") prospects in Botswana.
Goldington is the holder of 12 Prospecting Licenses for coal and CBM covering a
total of 629,340 hectares over 4 contiguous areas in the Mmamabula, Mokobela,
Tlhabala and Sese areas of Botswana. The agreement is subject to the successful
extension of the Prospecting Licenses and acceptance of the amendment in the
Prospecting Works Program, on a basis approved by Miranda, by the Department of
Mines in terms of the Mines and Mineral Act 1999 of Botswana.
Shareholders will be provided with more detail as soon as the agreement becomes
unconditional. Miranda`s Botswana coal interests have been excluded in any
discussions concerning the externalising of Miranda Coal`s KZN assets referred
to above.
8. FINANCIAL REVIEW
On 28 February 2010, the net asset value and net tangible asset value of the
company amounted to R341.5 million and R3.3 million respectively (2009: R352.7
million and R25.8 million). This was equivalent to 138.0 cents per share ("cps")
and 1.3 cps (2009: 142.6 cps and 10.4 cps), which represents a decline of 3% and
87%, respectively. The group has incurred material expenditure in the period as
a direct result of its ongoing exploration program and the preparation of new
exploration and mining right applications. The resultant net loss for the period
was R7.4 million (2009: R4.9 million).
The Company is currently considering a number of options for raising capital to
fund its ongoing operations and the Group`s exploration activities. Possible
sources of funding include issuing of a redeemable, convertible debt instrument,
putting in place a revolving standby debt facility, or issuing ordinary shares
in terms of the 15% of the issued share capital placed under the control of the
Board by shareholders.
9. GROUP PROSPECTS
The Board has been working diligently to implement its vision of developing
Miranda Mineral Holdings Ltd into the exploration partner of choice in the
mining industry in South and Southern Africa across a wide range of commodities.
To this extent, it is particularly exciting that the value in Miranda Coal, as
the first parcel of assets to obtain critical mass, is now ready to be unlocked.
In addition, the six months ahead should see Miranda Coal`s Sesikhona Colliery
break ground, with most of the preparatory work being put in place for the
commissioning of Uithoek. These developments are taking place at a time when
international coking coal prices have rallied strongly and are generally
expected to remain strong for the foreseeable future. This has translated into
considerable demand for Miranda Coal`s portfolio of coal products, as well as
created interesting opportunities to unlock the inherent value in the Miranda
Coal portfolio of assets.
10. STATEMENT ON GOING CONCERN
The condensed consolidated interim results have been prepared on the basis of
accounting policies applicable to a going concern. This basis presumes that
funds will be available to finance future operations and that the realisation of
assets and settlement of liabilities, contingent obligations and commitments
will occur in the ordinary course of business.
11. DIVIDENDS
No dividends were recommended or declared for the period under review (2009:
nil).
For and on behalf of the Board
AR Thompson RJ Nel AM Botha
Chairman Chief Executive Officer Financial Director
Centurion
6 May 2010
Date: 06/05/2010 16:00:02 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.
