| Fri 4 May 2001, 0:00 | | The Afrikander Lease Limited - Results |
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THE AFRIKANDER LEASE LIMITED
Unaudited consolidated financial results for the quarter ended 31st March 2001
Quarter ended Quarter ended Year ended
Mar 2001 Dec 2000 Dec 2000
Highlights:-
Gold produced and sold:-
-kilograms 302 338 997
-ounces 9,710 10,867 32,054
Cash operating cost stacked (rands per ton) 31.92 37.38 31.59
Cash operating cost:-
-rand / kg 42,305 43,994 39,933
-US$ / oz 167 180 165
Cash operating profit(R'000) 7,351 7,505 23,649
Net earnings (R'000) 4,037 4,845 14,665
Basic and diluted earnings
per share (cents) 3.41 4.15 12.76
Operating results:-
Tonnage stacked (tons) 400,243 397,774 1,260,476
Gold produced and sold (kg) 302 338 997
Average grade stacked (g/ton) 1.32 1.31 1.39
Gold price received:-
-rand / kg 66,646 66,198 63,653
-rand / oz 2,073 2,059 1,980
-US$ / oz 263 271 275
R'000 R'000 R'000
Income statement:-
Revenue 20,127 22,375 63,462
Cash operating costs 17,447 18,026 53,856
Cash movement in lock-up (4,671) (3,156) (14,043)
Cash operating profit 7,351 7,505 23,649
Amortisation 1,737 1,280 5,808
Non-cash movement in lock-up (235) (365) (1,834)
Net interest paid 910 691 2,476
Corporate costs 128 472 232
Exploration costs 774 582 2,302
Profit before taxation 4,037 4,845 14,665
Taxation 0 0 0
Net income after taxation 4,037 4,845 14,665
Ratios:-
Earnings per share (cents):-
-cash operating earnings 6.21 6.43 20.58
-basic and diluted 3.41 4.15 12.76
Weighted average number
of ordinary shares in issue 118,462,288 116,732,462 114,892,189
As at As at
31 Mar 2001 31 Dec 2000
R'000 R'000
Abridged balance sheet:-
Assets
Non-current assets:-
-mining assets 99,542 94,696
-investments 6,990 6,691
106,532 101,387
Current assets:-
-inventory 24,029 18,897
-accounts receivable 6,382 6,258
-bank balance 1,463 1,388
31,874 26,543
Total assets 138,406 127,930
Equity and liabilities
Capital and reserves:-
-ordinary share capital 2,369 2,369
-share premium 89,853 89,853
-accumulated loss (3,050) (7,087)
89,172 85,135
Non-current liabilities:-
-provision for enviromental rehabilitation 4,500 4,500
-other long-term liabilities 22,473 16,858
26,973 21,358
Current liabilities:-
-accounts payable 10,133 11,983
-short term portion of long term loans 2,844 2,844
-bank overdraft 6,923 4,334
-loans from related parties 2,361 2,276
22,261 21,437
Total equity and liabilities 138,406 127,930
Quarter ended Quarter ended Year ended
Mar 2001 Dec 2000 Dec 2000
R'000 R'000 R'000
Abridged cash flow statement:-
(utilised by)/generated from:-
Operating activities (1,332) 1,428 2,542
Investing activities (1,415) (2,747) (7,693)
Financing activities 233 4,095 6,930
Cash inflow/(outflow) for the period (2,514) 2,776 1,779
Cash and cash equivalents
at beginning of period (2,946) (5,722) (4,725)
Cash and cash equivalents
at end of period (5,460) (2,946) (2,946)
Statement of changes in equity:-
Share Share Accumulated Total
capital premium deficit equity
For quarter ended 31st March 2001
Balance at 31st December 2000 2,369 89,853 -7,087 85,135
Issued during the period 0 0 0 0
Share premium 0 0 0 0
Net income after taxation 0 0 4,037 4,037
Balance at 31st March 2001 2,369 89,853 -3,050 89,172
Notes to the Financial Statements
As at As at
31 Mar 2001 31 Dec 2000
R'000 R'000
Supplementary information:-
Capital commitments 0 5,467
Capital expenditure 6,679 6,387
Long-term borrowings:-
Finance leases:-
Excavator 984C 6,194 0
Elution plant 1,425 1,749
Excavator 984C 5,213 5,247
Excavator 994 3,561 3,782
16,393 10,778
Less:- short-term portion -2,844 -2,844
13,549 7,934
The above finance leases are repayable
over periods varying from one to five years.
Loan-heap leach plant:- 8,924 8,924
The above loan is repayable in 2005 and bears
interest at a rate of 15.25% until 31/03/2002,
thereafter the interest will be re-negotiated.
Total long-term borrowings 22,473 16,858
Security:-
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 to the current year as were used
in the prior year's annual financial statements. These financial results have
been compiled in accordance with the generally accepted accounting policies in
South Africa. No dividend has been proposed or declared for the period under
review.
Commentary
HIGHLIGHTS
* Cash operating costs for the quarter declined by 7,2% to US$167/oz.
* Cash operating profits achieved for the quarter were R7,4 million or 6.21
cents per share.
* The Inner Basin has now been completely drilled, yielding in excess of
previously stated ore resources and reserves.
* Heap Leach Pad No 1 is now off line having successfully delivered 76% of the
gold stacked on the pad and a further 7% should be recovered intermittently
over the next 18 months.
* The introduction of the third 100-ton excavator has resulted in an increase
in mined tons to budgeted levels.
* Grades delivered from the pit remain in line with expectations.
* All operating disappointments highlighted during the previous quarter have
been satisfactorily addressed.
DISAPPOINTMENTS
* The US$ gold price fell by 3% during the quarter.
* Despite higher tonnages stacked on pad No 2, poor operational management of
the CIS section resulted in a 10.7% reduction in gold produced.
OUTLOOK
* Quarterly cash operating profits for the second quarter of the current
financial year are anticipated to be in line or better than the first quarter
of 2001.
* New projects continue to be evaluated.
* All operational aspects of the mine, especially the CIS section of the Plant,
are expected to show continued improvement during the current quarter.
* The Company prefers to remain unhedged due to its position on the cash cost
curve.
ADR PROGRAMME
The Company has re-initiated its ADR programme with the Bank of New York. The
ADR programme, historically an un-sponsored programme is in the process of
being converted to a sponsored level 1. This combined with a more aggressive
marketing strategy and a proven track record, should have an impact on the
market's perception of the Company internationally.
On behalf of the Board
P E Skeat D R Cunningham
Houghton
4 May 2001
