| Fri 6 Aug 2010, 17:00 | | SAH - South African Coal Mining Holding Limited - Unaudited results of SACMH and |
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SAH
SAH
SAH - South African Coal Mining Holding Limited - Unaudited results of SACMH and
its subsidiaries ("the group") for the 6 months ended 30 June 2010 and 30 June
2009 and renewal of cautionary announcement
South African Coal Mining Holding Limited
(incorporated in the Republic of South Africa)
Registration number 1994/009012/06
Share code : SAH ISIN : ZAE0000102034
("SACMH" or "the company")
UNAUDITED RESULTS OF SACMH AND ITS SUBSIDIARIES ("THE GROUP") FOR THE 6 MONTHS
ENDED 30 JUNE 2010 AND 30 JUNE 2009 AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Consolidated statement of financial position at 30 June 2010 (R000`s)
Unaudited Unaudited Audited
As at As at as at
30 June 30 June 31
2010 2009 December
2009
Assets
Non-current assets 533 228 497 558 538 102
Property, Plant & Equipment 113 829 128 659 118 703
Intangibles 419 399 368 899 419 399
Current assets 12 378 17 188 15 915
Inventories - - -
Trade and other receivables 2 330 5 502 8 933
Cash and cash Equivalents 10 048 11 686 6 982
Total assets 545 606 514 746 554 017
Equity and liabilities
Capital and reserves 170 989 122 831 185 308
Issued capital 233 885 227 728 233 885
Retained loss (77 403) (110 743) (60 184)
Shareholders` loans 14 506 5 847 11 607
Non-current liabilities 222 925 197 454 226 490
Interest bearing liabilities 46 723 54 348 50 289
Non-current provisions 34 431 34 431 34 431
Deferred taxation 141 770 108 674 141 770
Current liabilities 151 693 194 461 142 219
Trade and other payables 12 307 74 137 11 511
Current portion non-current liabilities 139 386 120 323 130 708
Total equity and liabilities 545 606 514 746 554 017
Number of shares in Issue 452 454 452 454 438 454
Net asset value per share 37.79 27.15 42.26
Tangible net asset value per share (32.79) (31.56) (29.74)
Consolidated statements of comprehensive income (R000`s)
Unaudited Unaudited Unaudited
6 months 6 months Year
30 June 30 June 31
2010 2009 December
2009
Revenue 5 093 33 671 38 520
Cost of sales (538) (55 623) (62 248)
Gross profit 4 555 (21 952) (23 728)
Gain on restructuring - - 114 520
Impairment of assets - (791) (11 781)
Loss on sale of non-current assets - (21 817) (21 170)
Depreciation and amortisation (4 873) (6 937) (10 717)
Amortisation of mining right - (1 471) (1 471)
Rehabilitation provision release - - -
Operating expenses (4 836) (16 171) (22 771)
Operating (loss) / income (5 154) (69 139) 22 882
Net finance costs (12 065) (12 477) (25 019)
Loss before taxation (17 219) (81 616) (2 137)
Taxation - - (28 919)
Comprehensive loss for the period (17 219) (81 616) (31 056)
Weighted average shares in issue (000) 452 454 438 454 438 454
Basic earnings per share (cents) (3.81) (18.61) (7.08)
Gain on restructure per share (cents) - - (26.12)
Impairments per share (cents) - 0.18 2.50
Loss on sale of non-current assets - 4.98 4.83
Tax effects there on (cents) - - 7.31
Headline earnings per share (cents) (3.81) (13.46) (18.56)
Consolidated statement of cash flow (R000`s)
Unaudited Unaudited Unaudited
6 months 6 months Year
30 30 June 31
June2010 2009 December
2009
Cash flow from operations 5 037 13 035 3 801
Net finance charges paid (12 065) (12 477) (25 019)
Taxation received / (paid) 2 083 (9 497) (9 497)
Net cash flow from operating activities (4 945) (8 939) (30 715)
Cash flows from investing activities
Purchase of plant and equipment - (10 083) (10 083)
Net cash used in investing activities - (10 083) (10 083)
Cash flow from financing activities
Share issue expenses - (57) (57)
New borrowings raised 8 011 16 055 33 127
Net cash from financing activities 8 011 15 998 33 070
Net increase/(decrease) in cash 3 066 (3 024) (7 728)
Cash at the beginning of the year 6 982 14 710 14 710
Cash at the end of the year 10 048 11 686 6 982
Consolidated statement of changes in equity (R000`s)
Share Share Shareholder Accumulated Total
capital Premium Loan loss
Balance at 1 January 43 845 183 938 0 (29 128) 198 655
2009
Issue of ordinary 1 400 4 758 6 158
shares
Share issue costs (57) (57)
Increase in equity 11 607 11 607
loans
net loss for the year (31 056) (31 056)
Balance at 31 December 45 245 188 639 11 607 (60 184) 185 307
2009
Shareholders loan 2 899 2 899
Net loss for the period (17 219) (17 219)
Balance at 30 June 2010 45 245 188 640 14 506 (77 403) 170 989
Statement of compliance and basis of preparation
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards, the Companies Act of South Africa
and the Listings Requirements of the JSE Limited. The accounting policies used
to prepare the financial statements have been consistently applied to all
periods presented. These financial results have not been reviewed by the
company`s auditors as the mine was still on "Care and Maintenance" for the
period and the transactions during the period were not significant. The
WorldWide Coal objection to the SACMH Breyten section 311 compromise had not yet
been heard by the courts, so these financial statements were prepared on the
basis that the scheme has not been approved and the adjustments will be made
once sanctioned by the court. This sanction (or non sanction, should this be
the case) will not have any negative effect on the above results.
Operational Review
The mine has been on "Care and Maintenance" for the past six months. On 23 July
2010 the loan agreement with JSW Energy Limited (India) ("JSW") to finance the
recommencement of operations was signed, the first tranche of R11 million of
funding was received and the board instructed the company to re-commence
operations. Two external opencast contractors have been short listed and the
first coal is expected to be delivered to the plant by the end of August 2010.
Summary of JSW Loan Agreement
JSW has agreed to lend the group up to US$ 18 million in mutually agreed
tranches, bearing interest at LIBOR plus 2.5% and is repayable in seven years.
Early repayment of this loan is at the sole discretion of the company. R78
million of this will be utilised to refinance existing loans, R25 million on
Capex to restart the operation and the balance on working capital requirements.
The Group and JSW are at an advanced stage of negotiating a revised funding
schedule with the primary lender (the Standard Bank of South Africa Limited
("Standard Bank")) whereby JSW will lend the group R70 million to partially
repay the loan with the remainder to be paid over a 5 year period in equal
instalments. Until this agreement has been finalised, the full amount of the
loan is reflected under current liabilities.
Contingencies and Commitments
There has been no change in the previously disclosed contingent assets and
liabilities. The group still has a contingent asset from its claim against BHP
Billiton / Ingwe for unlawful termination of contract, submitted at R50 million.
The claims and counter claims with the previous contractor (Mkhulu Resources)
are not expected to materialise as this contractor has been liquidated and our
subsidiary has undergone a sanctioned section 311 scheme. The commitment to
deliver coal to WorldWide Coal is part of the Breyten compromise before the
courts in terms of this section 311 scheme.
Prospects
The dollar price of coal (RB1) has been stable above the US$ 90/ton mark and we
are seeing increased demand for steam coal out of both India and China. The
forward price of coal is still in contango and expectations in the industry are
that the price will remain at these levels whilst demand levels remain constant.
The mine should be in full operation by the year end. SACMH will, after the
conclusion of the mandatory offer by JSW Energy Natural Resources South Africa
(Proprietary) Limited to minority shareholders of SACMH, apply to the JSE
Limited ("JSE") for the lifting of the suspension of the trading of its shares
on the JSE.
Renewal of Cautionary Announcement
Shareholders are referred to the latest announcements released on SENS on 20 May
2010 and 2 July 2010 regarding offers and proposals received by the board. The
process is ongoing and shareholders are accordingly advised to continue
exercising caution when dealing in the company`s securities until a further
announcement is made.
For and behalf of the board
TV MOKGATLHA GM SCRUTTON
Chairman Chief Executive Officer
6 August 2010
Johannesburg
Directors : TV Mokgatlha (Chairman), VP Garg (Non-Executive), WN Gardyne (Non-
Executive), LN Ndala (Non-Executive), Dr V Lickfold (Independent Non-Executive),
GM Scrutton (CEO)
Registered Office : Mirkwood Estate, Farm Klipkop JR396, Gauteng
Company Secretary: Sylvan CSI (Pty) Ltd
Transfer Secretary : Computershare Investor Services (Pty) Ltd
Sponsor : Exchange Sponsors (2008) (Pty) Ltd
Auditors : Deloitte & Touche
Date: 06/08/2010 17:00:02 Produced by the JSE SENS Department.
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