| Thu 1 Mar 2001, 0:00 | | The Afrikander Lease Limited - Consolidated Financ |
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THE AFRIKANDER LEASE LIMITED
Registration No: 1921/006955/06
CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000
Year ended Quarter ended
Dec 2000 Dec 1999 Dec 2000 Sep 2000
R'000 R'000 R'000 R'000
OPERATING AND FINANCIAL HIGHLIGHTS
Tonnage stacked (tons) 1,260,476 535,702 397,774 257,261
Average grade stacked
(gms/ton) 1.39 0.72 1.31 1.03
Gold produced and sold
- kilograms 997 155 338 306
- ounces 32,000 5,000 11,000 10,000
Gold price received
- Rand/kg 64,000 56,000 66,000 63,000
- Rand/oz 2,000 2,000 2,000 2,000
- US$/oz 275 281 271 274
Cash operating cost/ton stacked
- Rand/ton 32 - 37 56
- Rand/kg 39,947 - 43,936 46,882
- US$/oz 165 - 180 202
Audited year end Quarter ended
Dec 2000 Dec 1999 Dec 2000 Sep 2000
R'000 R'000 R'000 R'000
ABRIDGED Income Statement
Revenue 63,462 - 22,375 19,250
Cash operating costs 53,856 - 18,026 16,492
Cash movement in lock-up (14,043) - (3,156) (2,134)
Cash operating profit 23,649 - 7,505 4,892
Amortisation 5,808 - 1,280 2,168
Non-cash movement in lock-up (1,834) - (365) (357)
Impairment - 16,699 - -
Net Interest paid/(received) 2,476 (962) 691 954
Corporate costs 232 (78) 472 (133)
Exploration costs 2,302 - 582 720
Profit before taxation 14,665 (15,659) 4,845 1,540
Taxation - - - -
Net income after taxation 14,665 (15,659) 4,845 1,540
Earnings per share (cents)
- Cash operating earnings 20.58 - 6.43 4.28
- Basic and diluted 12.76 (14.19) 4.15 1.35
Weighted average number
of ordinary shares 114,892,189 110,386,662 116,732,462 114,274,288
Audited Audited
Dec 2000 Dec 1999
R'000 R'000
Abridged balance sheet
Employment of capital
Mining assets 94,696 85,576
Investments 6,691 5,111
Current assets-
- accounts receivable 6,258 2,050
- inventory 18,897 1,196
- loans to related parties - 378
Current liabilities
- Accounts payable (11,983) (8,005)
- short term portion of long term loans (2,844) (801)
- bank overdraft (2,946) (4,725)
- loans from related parties (2,276) -
106,493 80,780
Capital Employed
Share capital 2,369 2,285
Share premium 89,853 85,414
Accumulated deficit (7,087) (21,752)
Ordinary shareholders' interest 85,135 65,947
Provision for environmental rehabilitation 4,500 4,500
Long term liabilities 16,858 10,333
106,493 80,780
Abridged Cash flow
(Utilised by)/Generated from:-
Operating activities (4,067) 2,444
Investing activities (10,700) (43,575)
Financing activities 16,546 17,129
Cash Inflow/(outflow) for the year 1,779 (24,002)
Cash and Cash equivalents at the beginning
of the year (4,725) 19,277
Cash and cash equivalents at end of the
year (2,946) (4,725)
Share Share Accumulation Total
Capital Premium Deficit Equity
Statement of changes in equity
Balance at 1 January 1999 2,168 79,025 (6,093) 75,100
Issued during the year
(5,878,788 at 2c each) 117 - - 117
Premium on above issue - 6,389 - 6,389
Net loss after taxation - - (15,659) (15,659)
Balance at 31 December 1999 2,285 85,414 (21,752) 65,947
Balance at 1 January 2000 2,285 85,414 (21,752) 65,947
Issued during the year
(4,188,000 at 2c each) 84 - - 84
Premium on above issue - 4,439 - 4,439
Net loss after taxation - - 14,665 14,665
Balance at 31 December 2000 2,369 89,853 (7,087) 85,135
Year end as at
31 Dec 2000 31 Dec 1999
R'000 R'000
Capital commitments 5,467 3,200
Capital expenditure for the year 21,779 46,858
Long term borrowings
Finance leases
- Elution plant 1,749 2,549
- Excavator 984C 5,247 -
- Excavator 994 3,782 -
10,778 2,549
Less - Short term portion (2,844) (801)
7,934 1,748
The above finance leases are repayable
over periods varying from one to five years
Loan - Heap leach plant 8,924 8,585
16,858 10,333
The above loan is repayable in 2005 and bears interest at a rate of 15.25%
until 31 March 2002, thereafter the interest will be re-negotiated.
The finance lease for the elution plant and the loan for the heap leach plant
are secured by R8m of The Afrikander Lease Limited's equipment, cession of
mineral rights for an amount of R11m and by a pledge and cession of all
short-term insurance policies covering the heap leach and elution plant.
The same accounting policies have been applied for the current year as were
used in the prior year's annual financial statements.
Prior to the end of February 2000, the Company was in the pre-production phase
of operations. With the Company having achieved commercial levels of production
towards the end of February 2000, all working costs and revenues subsequent to
this period are no longer capitalised but are recognised as part of cash
operating profit in the income statement.
These financial results have been compiled in accordance with the generally
accepted accounting policies in South Africa.
No dividend has been declared for the period under review.
Operational Highlights
First year of production resulted in an average production cash cost of US$165
per ounce.
First year cash operating profit achieved R23.6 million or 20.6 cents per
share.
Drilled proven Inner Basin and Outer Basin reserves total 18 years.
Combined open cast ore resources and reserves now total 3.2 million ounces,
based on SAMREC code.
Operational Disappointments
* The dollar gold price has remained disappointing for the period under review.
* The mine experienced numerous setbacks that were overcome during the year,
these problems included:
- Intermittant electrical power supply,
- higher diesel prices,
- higher than normal levels of rainfall,
- mining equipment spares supply.
The net effect of this was a cash cost above Management's original forecast of
US$150.
Outlook
* The recently announced diesel rebate by the Minister of Finance will benefit
the Company from July 2001.
* Quarterly cash operating profits for the year 2001 are anticipated to be in
line with or better than the final quarter of 2000.
* The new dedicated Eskom feeder power line has been installed, which removes
the risk of power failures on the mine.
* An additional 100-ton excavator has been acquired in order to provide the
mine with excess excavator capacity, which in turn will reduce any downtime as
a result of maintenance and spares supply.
* A number of new projects are currently being evaluated.
* There are no major additional capital commitments for the current financial
year other than the 100-ton excavator above.
* The new 'http://www.aflease.co.za' web site will be operational during April
2001.
On behalf of the Board
P E Skeat D R Cunningham
Houghton
28 February 2001
