| Wed 29 Feb 2012, 7:06 | | GDO - Gold One International Limited - 2011 Annual Financial Results with Record |
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GDO
GDO
GDO - Gold One International Limited - 2011 Annual Financial Results with Record
Profits of US$ 70.96 Million and Reconstitution of the Gold One Board
Gold One International Limited
Registered in Western Australia under the Corporations Act, 2001 (Cth) with
registration number ACN: 094 265 746
(Registered in South Africa as an external company with registration number
2009/000032/10)
ISIN: AU000000GDO5
Share Code on the ASX/JSE: GDO
OTCQX International: GLDZY
("Gold One" or the "company")
2011 Annual Financial Results with Record Profits of US$ 70.96 Million and
Reconstitution of the Gold One Board
2011 Annual Report highlights include:
- Annual gold production up 85% to 123,179 ounces
- Cash generated from operations of US$ 110.84 million (A$ 107.31 million)
- Record profit before taxation of US$ 70.96 million (A$ 68.70 million)
- Record operating profit of US$ 73.02 million (A$ 70.69 million)
- Profit for the year of US$ 51.53 million (A$ 49.89 million)
- Exploration and capital expenditure of US$ 45.03 million (A$ 43.64 million)
- Low cash cost position maintained at US$ 491/oz*
- Gross margin of 56%
- Completion of the Jintu transaction and subsequent A$ 150 million (US$
152.28 million) capital injection into Gold One
Gold One is pleased to report a net profit before taxation of US$ 70.96 (A$
68.70 million) for 2011, compared to the company`s 2010 net profit before
taxation of US$ 17.74 million (A$ 19.35 million), and a 2009 loss before
taxation of US$ 24.38 million (A$ 30.80 million). This significant increase is
the outcome of consistent and focused delivery from Gold One`s Modder East
Operation, which was commissioned in July 2009. For 2011, Modder East produced
121,518 ounces of Gold One`s total 123,179 ounces for the year. This reflects
an 85% increase in production when compared to 2010`s total gold production of
66,445 ounces.
Average 2011 cash costs amounted to US$ 491/oz* and an average 2011 total costs
US$ 719/oz**. Average 2010 cash and total costs were US$ 484/oz and US$ 686/oz
respectively
Operating profit before finance costs for 2011 was US$ 73.02 million (AS$ 70.69
million) with a profit for the year of US$ 51.53 million (AS$ 49.89 million)
from gold revenue of US$ 194.45 million (A$ 188.26 million), compared to 2010`s
operating profit of US$ 22.88 million (A$ 24.95 million) with a 2010 profit for
the year of US$ 13.38 million (AS$ 14.59 million) from gold revenue of US$ 81.92
million (A$ 89.33 million).
Cash generated from Gold One`s operations in 2011 increased by 199% to US$
110.84 million (A$ 107.31 million), compared to the previous year`s US$ 32.85
million (A$ 35.83 million), while 2011`s annual group free cash flow increased
by 2,519% to US$ 77.11 million (A$ 74.65 million)*** compared to 2010`s annual
group free cash flow of US$ 2.54 million (A$ 2.77 million).
Gold One`s cash balance of US$ 226.49 million (A$ 222.62 million) at the end of
2011 was substantially higher than the previous year`s US$ 4.57 million (A$ 4.50
million), due to higher cash flows from operations and a capital injection of
US$ 152.28 million (A$ 150 million) from a consortium of Chinese investors as
part of the closure of the Jintu transaction in December. This resulted in a
higher finance income earned of US$ 1.70 million (A$ 1.65 million),
compared to US$ 0.51 million (A$ 0.56 million) in 2010. During the year under
review, the remainder of the company`s convertible bonds were converted into
shares and accepted into the Jintu transaction, reducing finance costs to US$
3.75 million (A$ 3.63 million) compared to 2010`s US$ 5.65 million (A$ 6.16
million).
On the exploration front, 2011 saw Gold One complete the Ventersburg exploration
project`s pre-feasibility study. Drilling also commenced at the Modder North
exploration project. The company was also advised during December 2011 that the
Modder East Operations` new order Converted Mining Licence had been granted.
During 2011, Gold One initiated the acquisition of Rand Uranium (Pty) Limited
and its Randfontein-based surface and underground assets, inclusive of the Cooke
Uranium Project, and concluded the transaction at the beginning of 2012.
Production guidance for 2012 for the Gold One Group is 300,000 ounces. Of the
company`s total 2012 production, the Modder East Operations are forecast to
produce 150,000 ounces at a cash cost of US$ 530/oz and at a total
cost of US$ 797/oz. The Cooke Underground Operations, which are the subject of
an extensive turnaround strategy, are forecast to produce 118,000 ounces at a
cash cost of US$ 1,300/oz and at a total cost of US$ 1,450/oz. The Randfontein
Surface Operations are forecast to contribute 32,000 ounces at a cash cost of
US$ 1,214/oz and at a total cost of US$ 1,376/oz.
Reconstitution of the Gold One Board
The 2011 year saw several notable achievements for Gold One. This included the
completion of the Jintu transaction on 29 December, 2011, which resulted in an
89.17% majority shareholding in Gold One by BCX Gold Investment Holdings Limited
("BCX Gold") - a special purpose vehicle formed by the consortium. It is BCX
Gold`s intention that Gold One maintains a strong board of directors that
operates independently of, and separately to, BCX Gold. To this extent, BCX
Gold has nominated three non-executive directors to the Gold One Board, which
will consist of 11 members in total and include six independent directors, in a
transition arrangement.
While the new board should have been effective from the Jintu transaction`s date
of initial subscription, being 30 December, 2011, it was agreed that the new
directors will only take office on 1 March, 2012, to enable the existing board
to sign off on the annual financial statements for the period ended 31 December,
2011. Three of Gold One`s current directors, being: Mr Dicks, Kenneth; Mr
Harris, William; and Mr Swana, Sandile, will resign on 29 February, 2012. The
Gold One Board will comprise of:
- Mr Sun, Yalei, as chairman
- Mr Froneman, Neal, as CEO
- Mr Chadwick, Chris, as CFO
- Mr Wheatley, Mark, as lead independent non-executive director
- Mr Winters, Kenneth, as independent non-executive director
- Mr Davison, Barry, as independent non-executive director
- Mr Solomon, Michael, as independent non-executive director
- Mr Liu, Hui, as independent non-executive director
- Mr Chan, Tze Leung, as independent non-executive director
- Mr Liao, Ming, as non-executive director
- Mr Zhou, Chao, as non-executive director
Gold One President and CEO Mr Froneman comments: "Our relentless focus on
delivery and the leverage provided by the solid operational foundation that we
established during 2010 and 2011 have created a significant growth platform for
Gold One. Our strong cash position and no debt, combined with our growing
production profile, strong margins and our access to competitive funding have
ensured that we are well positioned to deliver on our organic and external
growth targets."
*Cash cost refers to all costs directly associated with mining activities, mine
administration, processing and refining.
**Total cost refers to the sum of cash costs, depreciation and royalties.
Capital expenditure, finance costs and corporate costs are excluded from total
cost.
***Group free cash flow refers to cash available from group operations before
interest charges and taxation.
The 2011 annual report is available for download from the company`s website
hosted at www.gold1.co.za
ENDS
Johannesburg
29 February 2012
Sponsor
Macquarie First South Capital (Pty) Limited
Issued by Gold One International Limited
www.gold1.co.za
Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Grant Stuart
VP Investor Relations
+27 11 726 1047 (office)
+27 82 602 5992 (mobile)
stuart@gold1.co.za
Carol Smith
Investor Relations
+27 11 726 1047 (office)
+27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Derek Besier
Farrington National Sydney
+61 2 9332 4448 (office)
+61 421 768 224 (mobile)
derek.besier@farrington.com.au
About Gold One
Gold One is a dual listed mid-tier mining group with gold operations and gold
and uranium prospects across Southern Africa. Gold One remains focused on
developing and mining low technical risk, high margin precious metal resources
in diversified jurisdictions. The company`s flagship Modder East gold mine,
commissioned in 2009,distinguishes itself from most other gold mines in South
Africa owing to its shallow nature (300 to 500 metres below surface) and
continues to ramp up production, having produced 123,179 ounces in 2011.
At the beginning of 2012, the group expanded further with the acquisition of
Rand Uranium (Pty) Limited consisting of the Cooke Underground Operations and
the Randfontein Surface Operations located in the West Rand, 30 kilometres from
Johannesburg. The Cooke underground operations continue to deliver in line with
expectations and are currently the subject of a turnaround intervention.
Through Gold One`s purchase of Rand Uranium (Pty) Limited, the group has also
acquired one of the world`s most advanced uranium projects, which envisages
recovering uranium, gold and sulphur from the Cooke Tailings Dam and underground
ores.
The Gold One group is majority-owned by a consortium comprising Baiyin Non-
Ferrous Group Co. Limited, the China-Africa Development Fund, and Long March
Capital Limited and has an issued share capital of 1,415,302,711 shares.
This news release does not constitute investment advice. Neither this news
release nor the information contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the purchase or sale of securities
in any jurisdiction.
Forward-Looking Statement
This release includes certain forward-looking statements and forard-looking
information. All statements other than statements of historical fact included in
this release including, without limitation, statements regarding future plans
and objectives of Gold One International Limited are forward-looking statements
(or forward-looking information) that involve various risks, assumptions and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual values, results and future events could differ materially
from those anticipated in such statements. Important factors could cause actual
results to differ materially from Gold One`s expectations. Such factors include,
among others: the actual results of exploration activities; actual results of
reclamation activities; the estimation or realisation of mineral reserves and
resources; the timing and amount of estimated future production; costs of
production; capital expenditures; costs and timing of the development of Modder
East and new deposits;
availability of capital required to place Gold One`s properties into production;
the ability to obtain or maintain a listing in South Africa, Australia, Europe
or North America; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold and other
commodities; possible variations in ore grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents; labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals, permits or financing or in the completion of development
or construction activities, economic and financial market conditions; political
risks; Gold One`s hedging practices; currency fluctuations; title disputes or
claims limitations on insurance coverage. Although Gold One has attempted to
identify important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated or intended.
Any forward-looking statements in this release speak only at the time of issue.
There can be no assurance that such statements will prove to be accurate as
actual values, results and future events could differ materially from those
anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Gold One does not undertake to update any forward-looking statements
that are included herein, or revise any changes in events, conditions or
circumstances on which any such statement is based, except in accordance with
applicable securities laws and stock exchange listing requirements.
Date: 29/02/2012 07:06:01 Produced by the JSE SENS Department.
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