| Mon 26 Feb 2001, 0:00 | | Gefco - Financial Results |
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The Griqualand Exploration and Finance Company Limited
(Registration number 1970/011100/06)
(Incorporated in the Republic of South Africa)
Audited financial results for the year ended 31 December 2000
CONSOLIDATED INCOME STATEMENT
Year Year
ended ended
31.12.2000 31.12.1999
R'000 R'000
Revenue 25 906 23 953
Operating loss (1 201) (3 108)
Net interest earned 2 684 3 417
Unrealised currency profit 1 358 188
Net profit before taxation 2 841 497
Taxation 462 641
Net profit/(loss) after taxation 2 379 (144)
Transfer from non-distributable reserve 3 330 2 677
Increase in distributable reserves
for the period 5 709 2 533
Earnings per share (cents)
Net profit/(loss) after taxation 6,5 (0,4)
Net profit after taxation and transfers
from non-distributable reserve 15,6 6,9
Dividends on ordinary shares:
Cents Nil Nil
Amount (R'000) Nil Nil
Number of shares in issue ('000) 36 528 36 528
CONSOLIDATED BALANCE SHEET
R'000 R'000
ASSETS
Non-current assets 8 971 50 227
Mining assets 3 545 43 965
Fixed assets 5 426 6 262
Current assets 45 567 39 930
Inventories 1 858 2 451
Accounts receivable 10 301 8 145
Bank balances 33 408 29 334
54 538 90 157
EQUITY & LIABILITIES
Capital and reserves
Shareholders' equity 37 974 72 685
Long-term liabilities 8 519 8 821
Current liabilities 8 045 8 651
54 538 90 157
CASH FLOW STATEMENTS
R'000 R'000
Cash flow from operating activities
Cash receipts from customers 43 040 43 703
Cash paid to suppliers and employees (40 778) (52 639)
Cash generated (utilised) in operations 2 262 (8 936)
Investment in fixed assets to
maintain operations (1 116) (1 341)
Net interest received 2 684 3 417
Taxation paid (584) (1 258)
Dividends paid - (9 132)
Net cash from (utilised in)
operating activities 3 246 (17 250)
Cash flow from investing activities
Net receipts from mining assets sold 1 130 2 676
Plant and machinery sold - 164
1 130 2 840
Cash flow from financing activities
Decrease in long-term provison (302) (501)
Net increase (decrease) in cash and
cash equivalents 4 074 (14 911)
Cash and cash equivalents at
beginning of year 29 334 44 245
Cash and cash equivalents at end of year 33 408 29 334
NOTES
General comments
The profit for the year is mainly attributable to interest earned and
unrealised currency gains resulting from the conversion of a foreign subsidiary
at year end.
The group has virtually completed all of the rehabilitation work at its defunct
blue asbestos mining sites, and also disposed of most of the redundant mining
assets.
Applications for closure certificates in terms of applicable legislation are
currently being prepared for lodging with the relevant authorities.
The remaining mining assets now comprise only the Kuruman Office Complex
including the Mine Store and Workshop buildings, as well as earthmoving
equipment used for rehabilitation work. There is only a limited market for the
complex and it may take some time before it can be disposed of.
It is pleasing to report that all rehabilitation costs were funded from the
Trust Fund set up for this purpose during 1990.
The Boschmanskop coal reserves were disposed of to a third party at a price of
R2,2 million, and transfer thereof is in progress.
The ash/cement brick operations in the Vaal Triangle recorded a loss of R0,44
million, after charging depreciation of R1,95 million.
Dividends
No dividend (1999: Nil) was declared for the period under review.
Mining assets
In view of the fact that all mining activities have been discontinued, the
directors decided to write down the historic cost of mining assets to reflect
only the estimated value of remaining saleable items.
In terms of the appropriation method of accounting adopted by the Group, the
mining assets were fully reserved for. The amount of R35,044 million written
off therefore has no effect on the results for the year.
Prospects
With the exception of obtaining closure certificates for the rehabilitated
asbestos mines and the disposal of certain properties, all activities related
to the Group's asbestos mining have been concluded.
The ash/cement brick operations will continue, pending the finalisation of the
legal action regarding the purported breach of the restraint of trade agreement
by the Seller. The matter will be pursued in court during August 2001.
The market for bricks appears to have firmed and it is expected that both sales
volumes and prices may improve during the new year.
Shareholders' attention is again drawn to the comments that follow under
Asbestos and Health.
Asbestos and health
Shareholders are again referred to earlier comments in this regard. The case
against Cape PLC in England is not likely to commence until the second half of
2001.
The directors have been advised to await developments regarding this action,
before further cash distributions are considered.
In the meantime, the directors have noted some media coverage of aspects
related to the Group's past mining activities, which are being monitored.
On behalf of the board
H. P. HART
P. A. VAN ZYL Directors
By order of the board
A. J. C. Gouws
Secretary
Directors: H. P. Hart (Chairman), J. J. van Rensburg, F. W. Knox, P. A. van Zy
Johannesburg
26 February 2001
Registered office:
Everite House, 20 De Korte Street, Braamfontein, Johannesburg 2001 (P.O.Box
1142, Florida Hills 1716)
Transfer secretaries:
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg 2001 (P.O. Box
1053, Johannesburg 2000)
