| Thu 12 Apr 2001, 0:00 | | Samroc Preliminary Group Results For The Year Ende |
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S A Mineral Resources Corporation Limited
Registration number 1993/000460/06
Incorporated in the Republic of South Africa
Unaudited Preliminary Group Results for year ended 31 December 2000
Summarised Group Balance Sheet
Unaudited Audited
31/12/00 31/12/99
R R
Assets
Non-current assets 16,085,472 12,933,561
Property, plant and equipment 16,085,472 12,933,561
Current assets 1,845,502 3,576,255
Inventory 560,179 0
Other receivables 750,621 33 463
Cash and cash equivalents 534,702 3 542 792
Total assets 17,930,974 16,509,816
Equity and liabilities
Capital and reserves 11,359,090 13,792,672
Issued share capital 2,844,185 2,844,185
Share premium 21,149,899 21,149,899
Non - distributable reserve 27,888 27,888
Accumulated loss (12,662,882) (10,229,300)
Non-current liabilities
Long term liabilities 5,484,767 1,479,791
- interest bearing 5,484,767 1,422,251
- non-interest bearing 0 57 540
Current liabilities
Trade and other payables 1,087,117 1,237,353
- interest bearing 77,203 229,865
- non-interest bearing 1,009,914 1,007,488
Total equity and liabilities 17 930 974 16 509 816
Summarised Group Income Statement
Unaudited Audited
2000 1999
R R
Revenue 1,297,643 34,087
Net operating loss (2,129,585) (1,346,074)
Net finance (cost)/income (303,997) 571,499
Exceptional item 0 (1,437,836)
Net loss attributable to
Shareholders (2,433,582) (2,212,411)
Accumulated loss at the beginning
of the year (10,229,300) (8,016,889)
Accumulated loss at the end
of the year (12,662,882) (10,229,300)
Number of shares in issue 284,418,543 284,418,543
Loss per share (cents) (0.9) (0.8)
Net asset value per share (cents) 4,0 4,9
NATURE OF BUSINESS AND COMMENTS ON RESULTS
Samroc is listed on the venture capital sector of the JSE Securities Exchange
South Africa. Its principal business is the production of manganese based
chemicals. A milestone was achieved during 2000 in that the Greenhills plant
commenced production in the second half of the year. The Group loss for the
year was R2,43 million which reflects revenue commencing only in the second
half of the year and building up as plant production and sales ramped up. As
predicted in Samroc's annual report for 1999, the project achieved a breakeven
cash flow position towards the end of the year.
GREENHILLS MANGANESE SULPHATE PROJECT
Samroc's material has been recognised as a high quality product and commands a
significant premium over competing imported manganese sulphate in Scandinavia
and the UK. In addition to manganese sulphate powder, manganese sulphate
solution and manganous oxide are produced and sold locally. 79% of manganese
sulphate powder sales to date have been to European customers and this trend is
expected to continue enabling Samroc to benefit from any depreciation of the
Rand against the major currencies. The company is in the process of
negotiating long term supply agreements which will provide a stable platform
for future profitability and notwithstanding a slow start at the beginning of
the year it is expected that the project will be profitable in the second half
of 2001.
ELECTROLYTIC MANGANESE DIOXIDE ("EMD") PROJECT
In September 2000 Samroc commenced investigations into production of EMD. This
material is an essential component of alkaline dry cell batteries and is
manufactured using manganese sulphate as a feedstock. Samroc contracted Mintek
to test the suitability of its manganese sulphate for production of EMD.
Results to date have been very encouraging and samples produced in conjunction
with Mintek have been to internationally accepted specifications. Samroc will
spend the balance of this year carrying out a feasibility study, securing
stategic partners and obtaining expressions of interest from potential
customers. Preliminary indications are that a facility to produce 10 000 tpa
of EMD will cost approximately R200 million and will generate annual net
profits before tax in the region of R50 million. The EMD produced will be
exported to battery manufacturers worldwide.
On behalf of the board Registered office Transfer secretaries
B H Christie Block 3 Mercantile Registrars
NR Kaner Southern Implants Office Park 11 Diagonal Street
Irene 1 Albert Road PO Box 1053
12 April 2001 Irene, 0062 Johannesburg, 2000
Directors: B H Christie* (Chairman), N R Kaner* (Managing), KJJ de Rooster**,
PJ Cronshaw, J J Byrne*** (*British, **Belgian, ***Australian)
