| Wed 14 Feb 2001, 0:00 | | Metorex Limited Consolidated Interim Results |
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Metorex Limited
Registration number 1934/005478/06
Incorporated in the Republic of South Africa
Listed on the JSE Securities Exchange South Africa and London Stock Exchange
www.metorexgroup.com
Sales revenue - up 16%
Headline earnings - up 184%
Net asset value - up 24%
Interim dividend - up 43%
Internal expansion projects on schedule
Consolidated interim results for the period ended 31 December 2000
Consolidated income statement
Six months Six months Six months Six months
31 December 31 December 31 December 31 December
2000 1999 2000 1999
IAS IAS Appropriation Appropriation
Unaudited Unaudited Unaudited Unaudited
R000's R000's R000's R000's
Revenue
Minerals sales
137 114 118 932 - copper 137 114 118 932
9 775 8 621 - cobalt 9 775 8 621
54 817 43 559 - coal 54 817 43 559
52 237 46 493 - zinc 52 237 46 493
903 1 501 - manganese 903 1 501
39 422 38 004 - fluorspar 39 422 38 004
17 702 10 138 - antimony 17 702 10 138
35 941 24 963 - gold 35 941 24 963
3 918 4 123 - other 3 918 4 123
2 442 2 508 Interest income 2 442 2 508
866 6 199 Sundry Income 866 6 199
355 137 305 041 Total revenue 355 137 305 041
82 773 69 781 Realisation costs 82 773 69 781
272 364 235 260 On-mine revenue 272 364 235 260
204 306 211 323 Expenditure 190 645 200 270
189 041 197 050 Cost of production 189 041 197 050
13 661 12 910 Depreciation and amortisation - 1 857
1 604 1 363 Interest paid 1 604 1 363
68 058 23 937 Income before taxation 81 719 34 990
16 856 5 085 Taxation 17 755 5 862
51 202 18 852 Income after taxation 63 964 29 128
Income attributable to outside
(2 463) (1 728) shareholders (3 579) (2 333)
Abnormal item - arising on
- 3 900 restructuring of group - 3 900
(331) (339) Abnormal item
- goodwill amortisation - -
Income attributable to ordinary
48 408 20 685 shareholders 60 385 30 695
12 048 8 430 Ordinary dividend 12 048 8 430
36 360 12 255 Retained income for the period 48 337 22 265
120 483 120 428 Shares in issue (000's) 120 483 120 428
40,18 17,18 Earnings per share (cents) 50,12 25,49
40,45 14,22 Headline earnings
per share (cents) 50,12 22,25
Statement of movement in equity
Six months Six months Six months Six months
31 December 31 December 31 December 31 December
2000 1999 2000 1999
IAS IAS Appropriation Appropriation
R000's R000's R000's R000's
Shareholders' equity at
258 051 60 088 beginning of period 765 711 138 327
102 312 550 Shares issued 102 312 550
25 927 - Foreign exchange reserve 25 927 -
Creation of reverse
- (150 583)acquisition reserve - -
Creation of/transfer to
- - non-distributable reserves (244) 241 040
48 408 20 685 Profit for period 60 385 30 695
(12 048) (8 430) Dividend payable (12 048) (8 430)
320 440 234 310 839 833 714 182
Consolidated balance sheet
31 December 30 June 31 December 30 June
2000 2000 2000 2000
IAS IAS Appropriation Appropriation
Unaudited Unaudited Unaudited Audited
R000's R000's R000's R000's
Assets
347 849 268 129 Mining assets and rights 863 949 770 810
10 775 11 106 Goodwill - -
3 196 2 476 Investments 3 196 2 476
361 820 281 711 867 145 773 286
Current assets
67 525 38 928 Inventories 67 524 38 928
94 300 90 919 Trade and other receivables 94 300 90 919
191 634 Taxation pre-paid 191 634
56 583 40 189 Bank balances and cash 56 583 40 189
218 599 170 670 218 598 170 670
580 419 452 381 Total assets 1 085 743 943 956
EQUITY AND LIABILITIES
Capital and reserves
12 048 12 043 Share capital 12 048 12 043
162 337 162 240 Share premium 312 919 312 822
24 303 (1 625) Non-distributable reserves 442 813 416 109
121 752 85 393 Retained income 72 053 24 737
320 440 258 051 839 833 765 711
11 292 8 186 Minority interest 19 247 15 025
22 024 22 924 Deferred taxation - -
48 146 36 207 Long-term liabilities 48 146 36 207
401 902 325 368 907 226 816 943
Current liabilities
121 736 86 756 Trade and other payables 121 736 86 756
25 189 12 251 Short-term borrowings 25 189 12 251
5 570 13 886 Bank overdraft 5 570 13 886
13 974 4 485 Taxation 13 974 4 485
12 048 9 635 Dividends 12 048 9 635
178 517 127 013 178 517 127 013
580 419 452 381 Total equity and liabilities 1 085 743 943 956
Cash flow
Six months Six months
31 December 31 December
2000 1999
IAS IAS
Unaudited Unaudited
R000's R000's
Net cash flow from operating
103 412 (6 757) activities
Net cash flow from investing
(68 173) 34 111 activities
Net cash flow from financing
(10 529) 4 500 activities
Net increase in cash and cash
24 710 31 854 equivalents
Net cash balance at beginning
26 303 7 282 of period
51 013 39 136 Net cash balance at end of period
Note: No cash flow statement is given for the appropriation method as the cash
flows are identical.
ACCOUNTING POLICIES
The financial statements have been prepared on the historical cost basis in
accordance with IAS34 "Interim Financial Reporting" and incorporate accounting
policies consistent with those adopted in the previous year, as restated. The
comparative figures for the six months ended 31 December 1999 have been
restated to comply with the above.
For comparative purposes, the results for the six months ended 31 December 2000
and 31 December 1999 are also presented in the "Appropriation" method of
accounting being the former generally accepted accounting practice adopted by
the mining industry in South Africa.
RESULTS OF OPERATIONS
Safety
The group companies continue to actively introduce measures to reduce the
occurrence of mine accidents. During the period Consolidated Murchison achieved
a commendable one million fatality free shifts.
Financial
Your group recorded a 184% increase in headline earnings per share for the six
months compared to the corresponding previous period. This performance was
assisted by a combination of higher commodity prices, the weak Rand and cost
containment.
The profit attributable to shareholders of R48,4 million increased by 135% from
the previous comparable period.
The group's policy is to retain sufficient funds to meet future growth and
capital expenditure requirements and distribute surplus funds to its
shareholders. It has accordingly been resolved to distribute to shareholders an
interim dividend of 10 (ten) South African cents per share.
OPERATING PERFORMANCE
The production of saleable product from the operations were largely on or ahead
of their budgets.
Gold production from Consolidated Murchison was higher than forecast.
Marginally lower antimony production was offset by higher prices. Incremental
antimony production from the Beta Shaft will commence during April 2001. This
will benefit from the improved international antimony price.
Production levels of fluorspar at Vergenoeg Mining Company (Pty) limited are
increasing as a result of the plant modifications and improved recoveries.
Maranda and O'Okiep continued to perform satisfactorily, exceeding their
production and earnings targets. Metallurgical testwork on the LCZ project
continued, with encouraging results.
Coal production from the Wakefield group exceeded budget. Whilst a shortage of
railway rolling stock delayed certain export sales, earnings are ahead of
forecast.
CAPITAL EXPENDITURE
Capital expenditure of R65,8 million (excluding foreign exchange adjustments of
R27,6 million on existing Chibuluma assets denominated in United States
Dollars) was incurred during the period of which R55,7 million related to the
Chibuluma South development. The expenditure on the re-opening of the Beta
Shaft at Consolidated Murchison and plant improvements at Vergenoeg Mine
amounted to R5,4 million and R1,3 million respectively.
The Chibuluma South development expenditure is being largely financed by a
five-year CGIC supported loan of US$10,5 million.
CURRENT DEVELOPMENTS
Perkoa Zinc - Burkina Faso
A Cabinet reshuffle in Burkina Faso deferred presentation to Cabinet of the
Metorex proposals to be contained in a Memorandum of Understanding and Mining
Convention. The proposals are to be submitted shortly.
Beta Shaft - Consolidated Murchison
The re-opening of the Beta Shaft is progressing well. The benefits from the
incremental production from this shaft are expected to commence during the
final quarter of the financial year.
Chibuluma South Project
The construction of the metallurgical plant and establishment of the open-pit
workings have progressed on schedule to meet the planned production
commencement date in April 2001.
O'Okiep Slag Dump
A preliminary feasibility study has been completed on retreating the O'Okiep
slag dump which would extend the life of the O'Okiep operations and smelter by
an additional five years. The testwork has proved to be most encouraging.
Umnotho weSizwe/Coal Group
Wakefield Investments (Pty) Limited ("Metorex Coal Group") has entered into an
agreement with an empowerment group, Umnotho weSizwe Investment Holdings (Pty)
Limited ("Umnotho") whereby Umnotho earn a stepped shareholding in Wakefield by
introducing additional coal reserves and coal markets to the company.
Discussions on these additional reserves and markets are in progress.
FUTURE PROSPECTS
The group's operations are performing satisfactorily which, contingent upon
continued strength in commodity prices, should produce encouraging results for
the remainder of the year.
The group continues to evaluate potential acquisitions which will contribute to
the group's future growth.
STRATE
Shareholders are advised that the company's shares will be dematerialised,
commencing 7 May 2001, with electronic trading and settlement commencing on 28
May 2001 and 4 June 2001, respectively. Shareholders are referred to the
summary of information accompanying this interim report.
GENERAL
The board wishes to express its thanks to the staff for their continued support
and contribution to the growth in the group's earnings.
On behalf of the board
A E G TROLLIP A S MALONE
Chairman Managing director
Declaration of dividend
Notice is hereby given that an interim dividend referenced No. 003 of 10 (ten)
cents per share has been declared payable to shareholders registered in the
books of the company at the close of business on 9 March 2001.
The dividend is declared payable in the currency of South Africa. Dividends
paid in foreign currency will be converted from South African Rand at the rate
of exchange ruling at the close of business on 9 March 2001.
Dividends will be paid by electronic transfer to members' bank accounts on or
about 26 March 2001 or, where this payment method is not mandated, by dividend
warrants posted on or about 26 March 2001.
By order of the board
15 February 2001
Secretaries Registered office Transfer secretaries
Meyer Wilson Marsh 2nd Floor, Cradock Heights Mercantile Registrars
7 West Street 21 Cradock Avenue Limited
Houghton Rosebank 11 Diagonal Street
2198 2146 Johannesburg
2001
