| Thu 15 Feb 2001, 0:00 | | Associated Manganese Mines - Interim Report |
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THE ASSOCIATED MANGANESE MINES OF SOUTH AFRICA LIMITED
REGISTRATION NUMBER : 1935/007343/06
Interim report for the half-year ended 31 December 2000
Group financial results
The unaudited financial results of the Company and its subsidiaries are as
follows:
Group income statement
Half-year ended Year ended
31 December 30 June
2000 1999 2000
R'000 R'000 R'000
Audited
Turnover 786 180 644 532 1 579 075
Net operating profit before
depreciation 232 782 111 407 321 171
Depreciation 41 813 31 930 70 019
Operating profit 190 969 79 477 251 152
Income from investments
- Interest received 915 198 1 190
Profit before interest paid 191 884 79 675 252 342
Interest paid 30 616 18 367 36 565
Profit before taxation and
State's share of profit 161 268 61 308 215 777
Taxation and State's share of profit 55 485 24 949 89 180
Earnings 105 783 36 359 126 597
Earnings per share (cents)
- attributable 2 981 1 024 3 568
- headline 2 981 1 017 3 548
Dividends per share (cents) 250* 250* 750
(*Proposed)
Group balance sheet
31 December 30 June
2000 1999 2000
R'000 R'000 R'000
Restated Audited
Assets
Non-current assets 1 292 133 839 889 1 113 277
Fixed assets 1 273 298 816 600 1 085 965
Deferred tax assets 12 930 18 897 21 407
Environment rehabilitation trust fund 5 905 4 392 5 905
Current assets 796 633 805 222 750 503
Inventories and receivables 789 616 805 167 749 974
Cash at bank 7 017 55 529
2 088 766 1 645 111 1 863 780
Equity and liabilities
Capital and reserves 1 072 332 902 923 966 549
Non-current liabilities 261 465 189 217 242 370
Long-term borrowings 4 074 5 300 3 672
Deferred tax liabilities 233 518 163 759 213 668
Long-term provisions 23 873 20 158 25 030
Current liabilities 754 969 552 971 654 861
Interest bearing 619 900 418 851 472 858
Other 135 069 134 120 182 003
2 088 766 1 645 111 1 863 780
Group cash flow statement
Half-year ended Year ended
31 December 30 June
2000 1999 2000
R'000 R'000 R'000
Audited
Cash flow from operating activities
Cash generated from operations 144 407 39 875 333 454
Interest received 915 198 1 190
Interest paid (30 616) (18 367) (36 565)
Dividends paid (17 741) (17 741) (26 612)
Taxation paid (8 775) (22 601) (35 010)
Net cash inflow/(outflow) from
operating activities 88 190 (18 636) 236 457
Net cash out flow from
investec activities (229 146) (96 886) (403 795)
Additions to fixed assets to
maintain operations (124 610) (69 881) (276 166)
Additions to fixed assets to
expand operations (104 668) (27 257) (128 388)
Proceeds on disposal of fixed assets 132 252 759
Cash flow from financing activities
Long-term borrowings raised/(repaid) 402 90 (1 627)
Increase in short-term borrowings 147 042 113 221 167 228
Net cash inflow from financing
activities 147 444 113 311 165 601
Net increase/(decrease) in cash and
cash equivalents 6 488 (2 211) (1 737)
Cash and cash equivalents at
beginning of period 529 2 266 2 266
Cash and cash equivalents at
end of period 7 017 55 529
Comment
The Group's results for the half-year reflect an increase in earnings to R105,8
million compared with R36,4 million for the corresponding period in the
previous year. The increase has arisen primarily as a result of the substantial
weakening of the South African Rand and cost containment at the mines and
ferro-alloy plants during the period under review.
Earnings from the Group's mining operations increased to R76,1 million from
R45,2 million at 31 December 1999. Total manganese ore sales increased by 8 per
cent to 612 000 tons and sales of iron ore decreased by 8 per cent to 1 802 000
tons.
The results of the Group's alloy operations, Feralloys Limited, reflect a
profit of R29,7 million compared with a loss of R8,8 million at 31 December
1999. Sales of manganese alloys totalled 85 000 tons compared with 88 000 tons
at 31 December 1999 and sales volumes of chrome alloys were slightly lower at
45 000 tons compared with 49 000 tons at 31 December 1999.
The Group's results for the current half-year to 30 June 2001 are expected to
match those of the period under review.
The comparative figures on the balance sheet have been restated to accord with
the changes in accounting policies, details of which were reported in the 2000
annual financial statements.
Sale of Platinum Group Metal ("PGM") Mineral Rights
The sale of the Group's PGM deposit which is contained in the Merensky and
U.G.2 reefs on the Dwarsriver farm near Steelpoort is progressing, with final
bids due during March 2001. NM Rothschild and Sons has been appointed to assist
with the disposall transaction.
Major projects
The R190 million Dwarsrivier opencast chrome mine and benefication plant was
commissioned during the half-year and supply of ore to Feralloys' chrome
division at Machadadorp has commenced.
The R90 million construction of an iron ore jig plant to upgrade the
contaminated dumps to saleable product is progressing to plan, with
commissioning expected in June 2001.
The new R517 million shaft complex at the Nchwaning III manganese mine is
proceeding according to plan. The shaft is expected to be commissioned in late
2003 and will have a run-of-mine capacity of about 2 million tons per annum.
At the Feralloys' chrome alloy division, work is well advanced on the R375
million expansion which comprises the construction and installation of a 54MVA
furnace with a pre-heater and a 350 000 tons per annum pelletising plant.
Progress is ahead of schedule and commissioning should take place in the second
half of this calendar year.
Capital expenditure
The capital expenditure of the Group was as follows:
At 31 December At 30 June
2000 1999 2000
R'000 R'000 R'000
Audited
To maintain operations 124 610 69 881 276 166
To expand operations 104 668 27 257 128 388
229 278 97 138 404 554
Commitments for future capital
expenditure Contracted for 317 807 683 856 224 915
Authorised, but not contracted for 709 111 96 572 1 065 330
1 026 918 780 428 1 290 245
Interim dividend
An unchanged interim dividend of 250 cents per share is proposed to be declared
before the end of March 2001.
For and on behalf of the board
Desmond Sacco Chairman
R. P. Menell Deputy Chairman
Registered office: 56 Main Street, Johannesburg, 2001
15 February 2001
Directors: Desmond Sacco (Chairman), R. P. Menell (Deputy Chairman), R. J.
Carpenter, C. J. Cory, P. C. Crous, D. D. de Beer, G. J. Robbertze, J. C.
Steenkamp
Alternate directors: B. J. Funston, R. L. Howard, J. W. Lewis, B. M. Menell, J.
S. Mostert, M. J. N. Uys
Company secretary: Anglovaal Mining Limited
