| Tue 29 Jun 2010, 8:00 | | SIM - Simmer & Jack Mines Limited - Report to shareholders for the quarter |
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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Report to shareholders for the quarter
and 12 months ended 31 march 2010
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers" or "the Company")
REPORT TO SHAREHOLDERS FOR THE QUARTER AND 12 MONTHS ENDED 31 MARCH 2010
(Q4 FY2010)
Salient Features
Q4 FY2010
- Cash operating loss of R21.3 million compared to a profit of R8 million in
Q3 FY2010
- Impairment charge of R267 million primarily as a consequence of TGME having
been placed on care and maintenance
- Gold production down 16% to 763kg, from 903kg in Q3 FY2010 due to
rationalisation programmes Total cash costs decreased by 2% to R225.3
million (Q3 FY2010: R230 million)
- Revenue down 14% to R204 million (Q3 FY2010: R238 million)
- Cash and cash equivalents of R633 million at 31 March 2010 (R739 million at
31 December 2009)
- Capital expenditure of R27.6 million in Q4 FY2010 v R49.1 million in Q3
FY2010 (excluding Weltevreden)
- Shareholder dispute resolved and a new, independent board appointed
- Simmers` participation in the First Uranium recapitalisation programme
approved
FY2010
*For comparison purposes, the FY2009 contribution from First Uranium has been
stripped out owing to the change in relationship from a subsidiary to an
associate company in Q4 FY2009
- Headline loss per share increased from 38.7c to 40.9c
- Cash operating loss of R 57.4 million, compared to R57.3 million operating
profit in FY2009
- Gold production down 7% at 119 877oz (3 729 kg) compared to 129 376oz (4
024 kg) in FY2009
- Total cash costs increased by 7% to R998 million from R932 million in
FY2009
- Unit cash costs up from R231 624/kg (U$812/oz) to R267 703/kg (U$1 061/oz)
- Gold revenue down 5% from R989 million to R941 million in FY2010
- Capital expenditure of R165 million compared to R156 million in FY2009
- Opening up and development commences at Buffelsfontein Gold Mine`s Number 5
shaft
Post Year-End
- Tau Lekoa mining right executed - awaiting registration
- Simmers participates in the C$172 million First Uranium Recapitalisation
Programme for R464 million (C$62.7 million) funded through some R76 million
from cash reserves, the conversion of the R167.8 million First Uranium loan
and a R220 million bridge loan facility from Rand Merchant Bank (RMB bridge
loan)
- Simmers` stake in First Uranium reduced from 37.24% to 34.35% as a
consequence of First Uranium issuing 14 million common shares to Gold Wheaton
Corporation in part exchange for a completion penalty
- Shareholder approval obtained for a rights offer to restore the Company`s
cash resources and to repay the RMB bridge loan
- Underground operations at Buffelsfontein Gold Mine suspended for 19 days
following a fall of ground on 4 May 2010 that fatally injured three employees
- Marius Saaiman, formerly managing director of the Resources Mergers and
Acquisitions team at Macquarie First South Advisors, appointed financial
director
STATEMENT BY CHIEF EXECUTIVE OFFICER
When I accepted the post of CEO mid-way through the last month of the fourth
quarter, there were a number of issues facing the Company and the new board,
all of which contributed to a sense of instability and a lack of strategic
direction. These included the financial crisis at First Uranium and the
question of how to fund our share of the First Uranium Recapitalisation
Programme; the delay in the acquisition of the Tau Lekoa Mine; and the
ongoing losses at Buffelsfontein Gold Mine and TGME.
As a first step we tackled the four issues that we felt would make the
biggest impact in the immediate term, namely the protection of our investment
in First Uranium; instituting a turnaround programme at Buffelsfontein Gold
Mine; stemming the losses out of TGME and concluding the Tau Lekoa
acquisition. I`m delighted to say that we have achieved three of these
goals, with the fourth imminent. The Tau Lekoa mining right was executed
earlier this month which is good news as the documentation has been approved
by the authorities. It only remains for the mining right to be registered
with the Department of Mineral Resources (DMR). This is a formality that we
are keenly anticipating - as soon as the mining right is registered, the deal
will be effectively concluded.
The acquisition of Tau Lekoa will transform Simmers from a marginal, junior
miner into the fourth largest gold producer in South Africa. It provides free
cash flow, scale, substance and flexibility to our current gold business as
well as the potential for upside via the development of Weltevreden and
Goedgenoeg, two expansion projects which could extend the life of Tau Lekoa
by some 14 years.
Unfortunately the fatal accident at Buffelsfontein Gold Mine on 4 May 2010
which resulted in the mine being closed for 19 days has caused a temporary
setback in our quest to restore this operation to profitability but I am
confident that signs of the turnaround will be evident from Q3 FY2011
onwards. Capital expenditure around safety has been increased and management
roles have been clarified within a new, flat structure aimed at empowering,
measuring and rewarding people who take ownership of producing safe
profitable ounces within their areas of responsibility. The aim: to build a
culture of consequence around a profit-driven entrepreneurial approach that
encourages and rewards business ownership where it counts.
Aligned to the changes at operational level is a restructuring exercise at
corporate level designed to ensure that the company structure supports and
reflects our status as a junior miner in a consolidation phase.
TGME`s problems proved more intractable. Despite having suspended underground
operations in August 2009 in an attempt to stem the cash losses from this
operation, it soon became apparent that the permitting timelines which we
were relying on in order to get the surface projects up and running were not
feasible. The decision was therefore taken in the fourth quarter to place
this operation on care and maintenance until such time as all the relevant
permits have been issued by the DMR.
The decision to participate in the First Uranium Recapitalisation Programme
was made on the basis of the potential upside to be gained from the ramp-up
in gold and uranium production at Mine Waste Solutions and the Ezulwini Mine.
In this respect, First Uranium has got off to a promising start, having
resolved its funding and permitting issues at Mine Waste Solutions. The
reinstatement of the Environmental Authorization and the granting of the
Water Use License conclude the major permitting issues surrounding Mine Waste
Solutions and clear the way for an accelerated expansion programme of this
profitable operation. The board and management have also been restructured
resulting in the appointment of former Simmers CEO, Deon van der Mescht as
President and CEO of First Uranium, and Peter Surgey, as Chairman of the
First Uranium board. Additionally, Simmers now has three members on the First
Uranium board and is represented on First Uranium`s executive and technical
advisory committees.
Even despite the permitting setback experienced by Mine Waste Solutions in Q4
FY2010, the operation returned in excess of 100% cash operating margins,
selling 62 019 ounces (1 929 kg) of gold in the year. We will be keeping a
close eye on the ramp-up at Ezulwini Mine and draw comfort from the changes
that have taken place at management level at this operation. A detailed
review of the mine plan is expected to be completed by July 2010. During
FY2010, 29 638 ounces (922 kg) of gold were sold from the Ezulwini Mine and
its first shipment of 22 500 pounds of uranium was sold in Q4 FY2010.
In the near term however, the decision to invest some R464 million in First
Uranium has necessitated a rights offer in order to repay the R220 million
bridge loan from RMB and to bolster our cash resources. In the interim,
Simmers continues to look at alternative funding mechanisms including the
potential sale and listing of all or part of the R464 million (C$62.7
million) secured convertible bonds issued by Mine Waste Solutions
(Proprietary) Limited (Rand FIU Notes) purchased as part of the First
Uranium Recapitalisation Programme. Fortunately, the potential sale of a
portion of the Rand First Uranium Notes does not preclude a Rights Offer, and
vice versa. Post year end, Simmers also secured additional funding facilities
in the form of a JSE-approved domestic medium term note programme under the
auspices of Absa Capital whereby the Company has the facility to issue
rand-denominated notes, up to an amount of R250 million. The first drawdown
amounting to R100 million was made during June 2010.
While there is still much to be done, I believe that we have moved quickly
and decisively to implement measures that will stabilise the business in the
short term and create an enabling environment in which to capitalise on the
growth opportunities presented by our current assets. This will provide the
basis upon which to build a profitable gold company within the niche bottom-
feeder space.
This focus on stability is surely good news for Simmers shareholders who have
endured a year of upheavals reflected in the almost 50% drop in the share
price year-on-year from 249c in April 2009 to 127c in March 2010. The
resolution of the shareholder dispute and the appointment of a new,
independent board in February 2010 means that we can now focus on restoring
shareholder confidence by delivering on our near-term targets and growing our
core assets accordingly.
GROUP FINANCIAL AND OPERATIONAL OVERVIEW
Table 1 - Summary of group salient features
Please refer to the report for the quarter ended 31 March 2010 (Q4FY2010) at
www.simmers.co.za for the above table.
Table 2 - Group selected financial information
Please refer to the report for the quarter ended 31 March 2010 (Q4FY2010) at
www.simmers.co.za for the above table
Notes to Table 2:
Total cash costs are costs directly related to the physical activities of
producing gold and include mining costs, administrative costs, royalties, on-
mine drilling expenditures that are related to production and other direct
costs. Sales of by-product metals are deducted from the above in computing
cash costs. Cash costs exclude depreciation, depletion and amortisation,
corporate general and administrative expenses, exploration costs, finance
charges, and pre-feasibility costs and accruals for mine reclamation but
include central costs such as human resources and technical services.
* Cash and cash equivalents includes the R450 million which is restricted
cash against the guarantee in favour of AngloGold Ashanti for the purchase of
Tau Lekoa. A further R1.7 million restricted cash is held as guarantee for
rehabilitation at TGME.
Q4 FY2010 v Q3 FY2010
As expected, total gold production was down 16% from 29 040 oz (903 kg) in Q3
FY2010, to 24 541 oz (763 kg) in Q4 FY2010. This was as a consequence of the
shaft rationalisation process at Buffelsfontein Gold Mine which saw a
reduction in tonnage from underground sources; the drop in underground grade
due to geological faults and seismicity and the decision to place TGME on
care and maintenance. This translated into gold revenue of R204 million,
compared to R238 million in the previous quarter. Unit cash costs increased
16% from R254 972/kg to R295 113/kg as a direct result of lower production
levels.
The reduction in total assets quarter-on-quarter reflects a R267 million
impairment charge following the decision to place TGME on care and
maintenance in Q4 FY2010. Cash and equivalents reduced by R105.8 million in
Q4 FY2010 primarily due to cash losses of R21 million, capital expenditure of
R28 million and changes in working capital of R60 million.
Exploration costs of R19.5 million were expensed in Q4 FY2010, representing a
correction of exploration expenditure on the Weltevreden Project. This had
previously been incorrectly allocated to capital expenditure during the
second and third quarters of FY2010. In terms of the Company`s accounting
policy, expenditure around the development of Greenfield projects such as
Weltevreden is classified as exploration in the pre-feasibility stage.
General administration expenditure increased quarter-on-quarter by R18
million mainly as a result of a correction that was made in Q4FY2010 where a
foreign exchange loss of R30.8 million emanated from the sale of First
Uranium shares converted from C$ to Rand.
Net finance income reduced from R31.5 million in Q3 FY2010 to R16.4 million
in Q4 FY2010. The movement was due to a R27.4 million correction in the
interest received on the Buffelsfontein Gold Mine Rehabilitation Fund and an
R18 million downward adjustment in the fair value of the Aberdeen Perpetual
Royalty on production out of the Buffelsfontein Gold Mine off set by the
R30.8 million foreign exchange loss reallocated to general and admin
expenditure.
FY2010 v FY2009
In FY2010, total gold production decreased by 7% to 119 877oz (3 729 kg)
compared to 129 376oz (4 024 kg) in FY2009, primarily due to the shaft
rationalisation programme at Buffelsfontein Gold Mine which saw the closure
of Number 8 shaft and the scaling down of operations at Number 12 shaft. This
was partially offset by the increase in total production year-on-year, from
Number 5 shaft as well as an increase in production from surface sources.
Average underground grade of Buffelsfontein Gold Mine remained stable year-on-
year at 3.58g/t As a consequence, Buffelsfontein Gold Mine produced 110 489
oz (3 437kg) in FY2010 compared to 118 406 oz (3 683kg) in FY2009.
The suspension of TGME`s underground operations in Q2 FY2010 followed by the
subsequent decision to place the entire operation on care and maintenance in
Q4 FY2010, also impacted negatively on annual production with TGME producing
14% less gold year-on-year. In total, TGME produced 8% of the Company`s gold
in FY2010.
As a consequence of the lower volumes, Simmers` gold revenue was down 5% to
R941 million, compared to R989 million in FY2009. The unexpected strength of
the South African rand in the first half of the 2010 financial year also
impacted negatively on revenue.
Total cash costs were 7% higher at R998 million compared to R932 million in
FY2009, while unit cash costs increased from R231 624/kg (U$812/oz) to R267
703/kg (U$1 061/oz), primarily due to increased electricity tariffs, higher
wages and the ramp-up in production at Buffelsfontein Gold Mine`s Number 5
shaft. This was partially off-set by rationalisation programmes at TGME and
Buffelsfontein Gold Mine.
Capital expenditure increased by 6% from R156.3 million FY 2009 to R165
million in FY2010 primarily due to the Tau Lekoa integration project which
has been in place since September 2009 to ensure the successful integration
of Tau Lekoa with nearby Buffelsfontein Gold Mine.
Non-cash rehabilitation expenses increased year-on-year as a result of
changes in estimates relating to the rehabilitation provision at
Buffelsfontein Gold Mine.
As a consequence of the above-listed events, operating loss from mining
activities went from a profit of R23.3 million in FY2009 to a loss of R112.2
million in FY2010.
Other income increased year-on-year by R8.5 million mainly as a result of
increased royalties received from First Uranium`s Mine Waste Solutions.
Non-cash share option costs decreased 54% year-on-year due to a drop in the
share price and a share option uptake probability factor of 22% applied.
General and administration expenses increased by 66%, mainly as a result of
the shareholder dispute which ran over six months between September 2009 and
February 2010 and a R30.8 million foreign exchange loss on the First Uranium
loan.
The reduction in total assets reflects a R267 million impairment charge
following the decision to place TGME on care and maintenance.
The loss in equity-accounted investments relating to Simmers` investment in
First Uranium increased year-on-year, due to First Uranium becoming an equity-
accounted investment in the latter part of FY2009. Prior to that, First
Uranium was accounted for as a subsidiary.
Net finance charges went from an expense of R224 million in FY2009 to an
income of R97.5 million in FY2010 mainly as a result of the Aberdeen Loan
having been converted into a net smelter royalty in Q4 FY2009, details of
which were announced on SENS on 16 February 2009. Additionally, R19.3 million
represents interest earned on the loan to First Uranium granted in September
2009. An amount of R17.4 million previously recorded as estimated investment
income on the Buffelsfontein Gold Mine Rehabilitation Trust Fund was reversed
in FY2010 following clarification by the DMR on the amount held in trust by
the rehabilitation fund which was inherited from the previous owners of
Buffelsfontein Gold Mine in 2005.
Simmers reported a total comprehensive loss of R736.3 million in FY2010
compared to a total comprehensive profit of R2.8 billion in FY2009. This is
as a result of the conversion of the First Uranium investment from a
subsidiary to an associate, which resulted in a once-off amount of R3.2
billion included in net income in FY2009. The headline loss for FY2010 was
R489.7 million compared to R412.5 million in FY2009.
SAFETY
It is with regret that Simmers reports four fatal accidents at Buffelsfontein
Gold Mine in FY2010. In Q2 FY2010, falls of ground claimed the lives of Lenox
Yeweni and Lebajoa Takana, both of the Eastern Cape. In Q3 FY2010, Simphiwe
Mbotho, also from the Eastern Cape, succumbed to his injuries after being hit
by a falling rock. In Q4 FY2010 Joseph Lebohang Droms of Stilfontein was
fatally injured while off-loading a 10 tonne cone crusher at C&C Crusher
Plant, a privately-owned crushing operation situated within the mine`s
jurisdiction. The Company extends its sincere condolences to the families
and friends of the deceased.
FY2010 FUNDRAISING AND FIRST URANIUM RECAPITALISATION PROGRAMME
On 15 June 2009 Simmers announced the successful placement of 109 950 000
ordinary shares, equating to 10.4% of the issued share capital of the
Company, raising R289 million. These proceeds were originally earmarked for
the acquisition of Pamodzi Gold`s Orkney assets. Since Simmers` bid for these
assets was unsuccessful the proceeds were used to investigate the viability
of the Weltevreden project, an up-dip extension of the Tau Lekoa mine.
In Q1 FY2010 First Uranium announced a bought deal equity financing agreement
in terms of which a syndicate of underwriters purchased 15 250 000 common
shares at a price of C$7.00 per share for gross proceeds of C$106 750 000. As
a consequence, Simmers` stake in First Uranium reduced from 41% to 37.24%.
Post year-end on 26 April 2010, First Uranium received a capital injection of
C$150 million through the sale of secured convertible, redeemable notes to
Simmers, Gold Wheaton Corporation and other investors. Simmers subscribed to
the offering for approximately C$62.7 million, comprising C$40 million in
rand denominated secured convertible redeemable notes and the exchange of the
C$22.7 million loan granted to First Uranium in August 2009. The balance was
taken up by Gold Wheaton who purchased C$20 million in Canadian dollar
denominated notes, while accredited investors purchased C$90 million Canadian
dollar denominated notes. Each Rand Note has a principal amount of R1000 and
will be convertible into 107.36 common First Uranium shares at a conversion
price of C$1.30, due 31 March 2013. As part of the First Uranium
Recapitalisation programme, Gold Wheaton Corporation agreed to settle in part
($18 million) of the $42 million completion penalty due pursuant to its gold
stream transaction relating to Mine Waste Solutions for 14 million common
First Uranium shares. This reduced Simmers` shareholding from 37.24% to its
current holding of 34.35% post year-end.
OUTLOOK AND GROWTH PROSPECTS
Outlook
For the 2011 financial year Buffelsfontein Gold Mine expects to produce in
the order of 75 000 oz (2 333kg) of gold and is targeting cash costs of
approximately US$ 1 050/oz, assuming an exchange rate of R7.68/US$, or R260
000/kg by Q4 FY2011.
The primary focus at Buffelsfontein Gold Mine in FY2011 will be the
successful integration of Tau Lekoa post June 2010, average underground
recovered grades in excess of 4g/t and limiting unplanned down-time as a
result of safety and maintenance issues.
As soon as the registration of the Tau Lekoa mining right takes place,
Buffelsfontein Gold Mine will begin treating ore from Tau Lekoa at its plant.
The full benefit in terms of free cash flow will only be evident from the
second month onwards given the need to account for a gold lock-up in the
first month due to the change in grade of the material being put through the
plant.
Post year-end on 4 May 2010, a fatal accident at Buffelsfontein Gold Mine`s
Number 5 shaft resulted in the closure of the mine for a total of 19 days, a
setback which will impact negatively on production targets for the next two
quarters. Thus, while the recovered grade continues to show an improvement,
normal volumes are only expected to resume by Q3 FY2011 which will negatively
impact on the next two quarters. In the interim, surface production has been
increased to capitalise on the record gold prices. Buffelsfontein Gold Mine
is highly geared to the rand gold price and any movement above R300 000/kg
has a significant, positive impact on margins.
Tau Lekoa is expected to produce in the order of 125 000 oz (annualised) (or
3 888kg) in the 2011 financial year, at a total cash cost of around US$815/oz
or R200 000/kg This is expected to generate an average, annualised free cash
flow of R150 million.
TGME will remain on care and maintenance for the foreseeable future. It
represents significant option value in the form of extensive prospecting
rights and various mining rights, which are currently being processed.
Although the Elandsdrift heap leach pad has already entered its closure
phase, approximately 129 oz (4 kg) of gold are expected to leach from the pad
during Q1 FY2011. The operation will continue to incur costs during FY2011
with care and maintenance costs expected to settle on approximately R500 000
per month. At a sustainable gold price of above R300 000/kg TGME has
considerable option value and the board will continue to consider its
alternatives in this regard.
Growth Prospects
North West Block
With the completion of the Number 5 shaft rehabilitation project in FY2010,
Buffelsfontein`s next development area focuses on the North West Block which
is accessed via Number 6 shaft and extends north towards the high-grade
Number 5 shaft. The area indicates a reserve of some 570 377 square meters,
estimated to contain some 14 169 kg of gold.
Installation of a third `C` mill to treat surface sources
The Company is currently assessing the viability of installing a third 65 000
tpm mill at Buffelsfontein Gold Mine`s South plant to provide extra milling
capacity to continue treating the mine`s lucrative surface rock dump material
post the acquisition of Tau Lekoa. Production from surface sources currently
yields an average of 39 kg of gold per month. It was originally anticipated
that this would cease once Buffelsfontein began milling and treating
underground ore from Tau Lekoa, due to capacity constraints.
The installation of a third mill to treat 50 000 tonnes generated by
Buffelsfontein Gold Mine underground operations each month will free up the
existing mills to continue treating an average of 135 000 tonnes per month of
surface rock dump material as well as the 100 000 tpm expected from Tau
Lekoa.
It would also have the additional advantage of creating spare capacity of 15
000 tpm to accommodate any increase in underground production out of
Buffelsfontein Gold Mine.
CIL Circuit
Buffelsfontein Gold Mine is also investigating the option of converting the
existing leach and Carbon in Pulp (CIP) circuits in the South plant to a four
stage Carbon in Leach (CIL) circuit, which is expected to increase gold
recovery by 4.5% by negating the effect of preg robbing constituents in the
ore body.
Weltevreden
In addition to providing substantial free cash inflow to Buffelsfontein over
the next three years, the acquisition of Tau Lekoa also includes the
Weltevreden resource, a shallow, up-dip extension of Tau Lekoa lying between
80 and 300 metres below surface. Development of this 2.3 million ounce
resource could significantly extend the life of the Tau Lekoa operation to
2024.
This is currently the subject of a pre-feasibility study which is expected to
be complete by Q3 FY2011. Surface drilling was completed at the end of in Q4
FY2010 and comprised a total of 46 drill holes. Final assay results were
received post year-end and the mineral resource has been remodelled based on
the new data.
INVESTOR PRESENTATION AND CONFERENCE CALL:
Chief executive officer Nico Schoeman will conduct a live presentation on the
Company`s operating and financial performance for the quarter and year-ended
31 March 2010 on 29 June 2010, at the Company`s head office at 5 Press Avenue
Selby Extension at 09h30. Those who are unable to attend the presentation may
download it from the website and follow the commentary by dialling in as per
the dial-in details below. The presentation will be followed by a conference
call for international parties at 15h00 SA time. The results presentation
will be available on the Simmers website from 08h30 on Thursday 29 June 2010.
Dial in details:
Johannesburg (Telkom): 011 535 3600
South Africa Toll-free: 0 800 200 648
UK Toll-free: 0 800 917 7042
Australia Toll-free: 1 800 350 100
Canada Toll-free: 1 866 605 3852
USA Toll-free: 1 800 860 2442
Other: +27 11 535 3600
Replay numbers: playback code 2544#
Johannesburg: 011 305 2030
UK Toll-free: 0 808 234 6771
AU Toll-free: 1 800 091 250
USA: 1 412 317 0088
Other: +27 11 305 2030
Forward-looking Information
This shareholders report and financial statements for the quarter and year-
ended 31 March 2010 contain certain forward-looking statements. Forward-
looking statements include but are not limited to those with respect to the
price of uranium and gold, the estimation of mineral resources and reserves,
the realization of mineral reserve estimates, the timing and amount of
estimated future production, costs of production, capital expenditures, costs
and timing of development of new deposits, success of exploration activities,
permitting time lines, currency fluctuations, requirements for additional
capital, government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and limitations
on insurance coverage and the timing and possible outcome of pending
litigation. In certain cases, forward-looking statements can be identified
by the use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "does not anticipate", or "believes" or variations of such
words and phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved. Forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of
Simmers to be materially different from any future results, performance or
achievement expressed or implied by the forward-looking statements. Such
risks and uncertainties include, among others, the actual results of current
exploration activities, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined, possible variations in
grade and ore densities or recovery rates, failure of plant, equipment or
processes to operate as anticipated, accidents, labour disputes or other
risks of the mining industry, delays in obtaining government approvals or
financing or in completion of development or construction activities, risks
relating to the integration of acquisitions, to international operations, to
prices of uranium and gold. Although Simmers has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. It is important to note, that: (i)
unless otherwise indicated, forward-looking statements indicate the Group`s`
expectations as at 25 June 2010; (ii) actual results may differ materially
from the Group`s expectations if known and unknown risks or uncertainties
affect its business, or if estimates or assumptions prove inaccurate; (iii)
the Group cannot guarantee that any forward-looking statement will
materialize and, accordingly, readers are cautioned not to place undue
reliance on these forward-looking statements; and (iv) the Group disclaims
any intention and assumes no obligation to update or revise any forward-
looking statement even if new information becomes available, as a result of
future events or for any other reason.
For further information, please contact:
Nick Goodwin Simmers: Investor Relations
Executive
Mobile +27 83 629 8605
E-mail nick@simmers.co.za
Gail Strauss Simmers: Group Communications
Mobile +27 82 936 8481
E-mail gail@simmers.co.za
SPONSOR
RAND MERCHANT BANK (A division
of FirstRand Bank Limited)
Date: 29/06/2010 08:00:01 Produced by the JSE SENS Department.
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