| Mon 30 Apr 2001, 0:00 | | President Steyn Gold Mines Limited - Quarterly Res |
|
PRESIDENT STEYN GOLD MINES LIMITED
(Registration number 1998/014461/06)
QUARTERLY RESULTS MARCH 2001
- GOLD PRODUCTION UP 6,5%
- CASH OPERATING PROFIT UP 7,2%
Quarter Quarter
to March to December
2001 2000
GOLD PRODUCTION
Ore milled 000 mt 316 291
Gold producedkg kg 1 346 1 264
oz 43 275 40 632
Yield total g/t 4,3 4,3
underground g/t 4,7 5,1
Cash operating costs R/kg 55 993 55 125
$/oz 219 225
Gold price received R/kg 66 144 65 708
INCOME STATEMENT R'000
Sales: gold 89 030 83 041
other operations 3 979 4 169
Cash operating costs:
gold (75 366) (73 167)
gold stock movement - 3 501
other operations (2 741) (3 639)
Cash operating profit: 14 902 13 905
Amortisation: fixed assets (4 134) (767)
goodwill (2 319) (2 319)
Corporate expenditure (660) (1 426)
Net finance charges (2 569) (2 889)
Profit before tax 5 220 6 504
Taxation (952) 356
Net profit 4 268 6 860
Weighted average shares in issue 000 503 380 503 380
Headline earnings per share cents 1,3 1,8
Production and costs
Although the production for the quarter exceeded the gold produced for the last
quarter of 2000, management acknowledges that production started slowly during
the first week of January 2001. The different production units all performed
well and no major problems occurred during the period.
Cash production cost of US$219 per ounce was better than the previous quarter,
but below expectations. This was as a result of the lower than planned yield
rate. However, cash cost per ton milled was on target at R239 per ton.
Various actions are in place to reduce the structural underground cost and to
increase the recovery grade. It is expected that cost per production unit will
be reduced on an ongoing basis.
Profitability
Further reduction of the corporate cost structures with an even more focused
approach, will enhance management's productivity and control. Management is
also taking a serious look at the non-core activities and the impact that it
has on management resources.
Cash operating profit of R14,9 million for the quarter was 7,2% above last
quarter. However, normal provisions for amortisation and tax in the period,
compared to the same provisions after year-end adjustments, resulted in a lower
net profit and earnings per share.
Prospects
The development of the golden triangle is proceeding according to plan and
management is positive about the near-time prospects and opportunities accruing
from this area. Meaningful production contribution from this area is expected
by the end of 2001.
A dedicated area has been equipped to develop the continuous mining project.
The first controlled rock breaking activities will take place during May.
Brandrill Limited will conduct a series of blasts to support the development
of functional cartridges suitable for this unique mining method.
As previously reported, opportunities are being evaluated aiming at adding
value through increased critical mass. President Steyn should ideally be part
of a bigger production unit where corporate and or "asset base" synergies play
an important role. Ongoing consideration to broaden the shareholder base of the
company by introducing meaningful black empowerment is also taking place. The
above actions are deemed to be very important, as it will play a major role in
adding and unlocking future shareholder value. Management is expecting to
conclude agreements in this regard in the near future.
On behalf of the Board
JS (Mac) van der Merwe
Chief Executive Officer
1 May 2001
Transfer secretaries
Mercantile Registrars Limited, 7th Floor, 11 Diagonal Street, Johannesburg
Registered office
7 Main Reef Road, Germiston. PO Box 915, Bedfordview 2008
Directors
JS van der Merwe, CR de Wet, FN Lotz, DL Parodi
www.psgold.co.za
