| Fri 21 May 2010, 16:00 | | SNU - Sentula - Trading Update |
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SNU
SNU
SNU - Sentula - Trading Update
Sentula Mining Limited
Incorporated in the Republic of South Africa
(Registration number 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
("Sentula" or "the company" or "the group")
TRADING UPDATE
In terms of the Listings Requirements of JSE Limited, companies are required to
publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on next will differ by more than
20% from the previous corresponding period.
A review of the financial results for the year ended 31 March 2010 by the
company, has indicated that earnings per share ("EPS") is expected to be between
49.63 cents and 64.90 cents, and headline earnings per share ("HEPS") is
expected to be a loss of between -10.49 cents and -0.49 cents.
As a result of the rights offer detailed in the circular to shareholders dated
23 November 2009, EPS and HEPS for the year ended 31 March 2010 have been
calculated in terms of circular CC03/09 issued by The South African Institute of
Chartered Accountants and IAS 33 and are based on a weighted average number of
shares of 428 185 184 (2009: 364 806 295).
Results for the financial year ended 31 March 2010 were impacted by the
following:
- the sale of Sentula`s interest in the Koornfontein mine resulted in a pre-
tax profit of R329 million. The profit on sale of this interest is deducted
from earnings for purposes of calculating headline earnings per share;
- abnormally high rainfall, impacting opencast mining, drilling and blasting
activities and exploration drilling, during the last quarter of 2009 and
the first quarter of 2010;
- costs associated with the restructuring and right-sizing exercise of
Megacube Mining (Proprietary) Limited ("Megacube") in the amount of R26.9m.
Megacube incurred operating losses during this period as this business
drastically reduced its cost base, terminated loss making contracts and
consolidated the business`s overhead cost structure. The restructuring of
Megacube`s business will be completed by June 2010. The group`s other
mining services subsidiaries remained profitable and cash flow positive for
the period despite operating under challenging circumstances;
- during the period the company made an accrual for the recovery of a further
R18.9 million of misappropriated funds, bringing the total recovery to
R64.9 million since the misappropriation in the 2008 financial year. Legal
and forensic fees of R13 million associated with the recovery of these
funds were also incurred;
- increased finance fees of R12.5 million associated with the rescheduling
and restructuring the group`s senior debt and capital raising;
- unrealised currency losses of R14.9 million relating to the translation of
the group`s foreign operations as a consequence of the Rand appreciating
against the US Dollar by 21% since March 2009;
- severe downturn in exploration drilling as a result of junior miners
struggling to raise funding and established mining companies curtailing
exploration drilling budgets; and
- losses of R22.5 million incurred at the Nkomati Anthracite (Proprietary)
Limited mine as the ferrochrome industry drastically curtailed production
in the first half of the financial year.
The financial information, on which this trading statement is based, has not
been reviewed or reported on by Sentula`s auditors. Sentula`s financial results
are expected to be released on or about 18 June 2010.
Johannesburg
21 May 2010
Sponsor
Merchantec Capital
Date: 21/05/2010 16:00:03 Produced by the JSE SENS Department.
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