| Wed 30 May 2001, 0:00 | | Thabex - Audited Group Results |
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THABEX EXPLORATION LIMITED Young Lions Exploring Southern Africa
("Thabex" or "the Company") Listed on the JSE - Code TBX
Registration No 1988/000763/06
Explore our website: www.thabex.com
THABEX - AUDITED GROUP RESULTS FOR PERIOD ENDED 28 FEBRUARY 2001
OPERATIONS
During the year under review, Thabex successfully entered into a joint
venture agreement with Falconbridge Ventures of Africa (Pty) Ltd, wholly
owned subsidiary of Falconbridge Limited in Canada, to further explore and
assess the mineral potential of your company's Potgietersrus Town and
Townlands' prospecting rights.
DIAMONDS
Thabex remains committed to develop and turn to account its alluvial diamond
interests. In order to achieve this objective the Company is involved in the
exploration of various diamondiferous occurrences. Thabex's main area of
interest at present is situated in the Northern Cape along the Orange River
between Douglas and Prieska. Pioneer Minerals (Pty) Ltd ("Pioneer"), a 40%
held associate of Thabex, continued to explore five properties identified
during Pioneer's previous successful geological assessments, drilling and
bulk sampling.
During July 2000 Pioneer entered into an agreement with a contractor to fund
further closer spaced drilling and to do further exploration in the form of
trial mining on the properties for a period of twelve months.
To-date a total of 257 percussion boreholes representing 2 233 meters have
been drilled in selected areas. Pioneer has applied for a mining permit on
the farm Remhoogte 152, approximately 21km southwest of Trans Hex's
Saxendrift alluvial diamond mining operations along the Orange River.
Although the Pioneer projects have diamondiferous potential, the results of
trial mining, to be done under contract to Pioneer, are due during early
August 2001. The contractor, New Hope Mining (Pty) Ltd ("New Hope"), is also
required to procure a detailed report from an independent competent person
in terms of the SAMREC Code enabling Pioneer to assess the possible
development of a full-scale alluvial diamond mine.
During December 2000 the initial shareholders in Pioneer purported to sell
their 60% shareholding to the contractor for R2,75 million in terms of an
option agreement with New Hope. The option agreement was entered into prior
to the commencement of the exploration and trial mining contract with
Pioneer. This option agreement was not disclosed to Thabex until the middle
of January 2001. In the interest of good corporate governance, Thabex
believes that the sale and transfer of the initial shareholders' 60% in
Pioneer were not transacted according to the terms and conditions of the
Shareholders' Agreement between Thabex and the initial shareholders, and has
referred this dispute to arbitration.
Pure Diamonds Ltd ("Pure Diamonds"), a wholly owned subsidiary of Thabex,
successfully commenced trading in quality polished diamonds through its e-
commerce presence. Taung Diamond Mines Ltd ("Taung Diamonds"), a 50/50 joint
venture company held by Thabex and empowerment partner, Khunologo Diamonds
(Pty) Ltd respectively, is involved in exploration for alluvial diamonds in
the North West Province. Taung Diamonds abandoned certain diamondiferous
gravel areas along the Vaal River in the Christiana district. However, an
area along the Harts River in the Taung district of the North West Province
is still being explored.
PLATINUM AND BASE MINERALS
As reported in our November 1999 interim report, new geological thinking on
the northern limb of the Bushveld Complex indicates the possibility of
potential base metal massive sulphide deposits, other than the known
Platreef occurrence. In order to facilitate further exploration on Thabex's
Platreef Project, the Company and its wholly owned subsidiary, Platinexco
(Pty) Ltd ("Platinexco"), entered into an agreement on 3 October 2000 with
Falconbridge Ventures of Africa (Pty) Ltd ("FVA"). FVA is a wholly owned
subsidiary of Falconbridge Ltd, a company listed on the Toronto Stock
Exchange (TSE Code - FL) in Canada.
The agreement provides for a joint venture to be established (51% FVA and
49% Platinexco) once FVA has spent R5,2 million on further exploration of
the farm Piet Potgietersrust Town and Townlands 44KS in the Northern
Province. FVA acts as manager and operator of the project. Thabex has ceded
its prospecting rights to Platinexco, which company is proposed to be the
Joint Venture Company to develop the project in the event that the
exploration is successful. At the request of FVA, Platinexco applied for an
additional 496 ha of the mineral area covered by its prospecting rights in
terms of its prospecting agreement with the Mogalakwena Municipality
(formerly the Transitional Local Council of Greater Potgietersrus). The
total mineral area now held by Platinexco is 1 456 ha.
FVA commenced exploration activities on the property during February 2001,
consisting of line cutting for Time Domain Electromagnetic ("TDEM") surveys.
FVA has also synthesized the previous geophysical, geochemical and drilling
results into their own database, which includes their own airborne
geophysics. The TDEM survey was completed during April 2001 and the results
are being analysed to delineate possible targets for drilling. FVA's main
target at present is the possibility of a base metal massive sulphide
deposit in the northern section of the prospecting area.
GOLD
Pilanesberg Gold Holdings (Pty) Ltd ("Pilanesberg Gold") successfully
commenced trading in gold, platinum and silver bullion and bullion coins.
Pilanesberg Gold is continuing to investigate alluvial gold deposits in the
NorthWest and Mpumalanga Provinces.
NEW STATUTORY AND REGULATORY FRAMEWORK
The proposed Draft Mining and Development Bill introduces further
significant uncertainty into the mining and exploration sector by proposing
to grant considerable powers of discretion to the Minister at the time,
irrespective of whether or not these would be in the interest of efficient
allocation of all resources. Your company is confident that it will be able
to adapt and negotiate these new risk factors successfully.
Thabex endorses and endeavours to comply with the new JSE Listing
Requirements, which incorporate the South African Code for Reporting of
Mineral Resources and Mineral Reserves "SAMREC Code" as defined by the South
African Institute of Mining and Metallurgy ("SAIMM").
The Company will also reassess all its mineral and other interests during
the first half of the coming financial year in order to be fully prepared
for the proposed introduction of Capital Gains Tax. Thabex will also
consider the introduction of International Accounting Standards for the
Company's financial reporting.
FINANCIAL
CONSOLIDATED BALANCE SHEET
28 February 29 February
2001 2000
R R
Assets
Fixed assets 96 162 1 045 559
Options, mineral rights and
participation rights 8 758 530 8 731 409
Interest in associate companies 500 000 787 698
Goodwill - 66 328
Current assets 667 750 352 552
Inventories 184 210 150 000
Trading investments 28 400 48 000
Accounts receivable 120 337 96 392
Cash balances 334 803 58 160
Total assets 10 022 442 10 983 546
Equity and liabilities
Share capital 1 700 689 1 478 680
Share premium 17 202 741 16 781 850
Accumulated loss (9 418 040) (7 608 683)
Ordinary sholdersholders' funds 9 485 390 10 652 027
Outside shareholders' interest 26 059 39 122
Long-term liabilities - -
Current liabilities
Accounts payable 510 993 292 397
Total equity and liabilities 10 022 442 10 983 546
Net asset value per share (cents) 55,77 72,03
CONSOLIDATED INCOME STATEMENT
28 February 29 February
2001 2000
R R
Revenue 247 000 -
Operating loss (1 455 331) (413 300)
Provision for write-down of interest
in associate (287 698) (174 799)
Provision for write-down of goodwill (66 328) -
Write-off lapsed propecting options - (1 859 512)
Net loss for year (1 809 357) (2 447 611)
Weighted average number of shares
in issue 14 958 767 14 655 400
Loss per share (cents) (12,10) (16,70)
Headline loss per share cents) (9,73) (2,82)
ABBREVIATED CONSOLIDATED CASH FLOW
STATEMENT 28 February 29 February
2001 2000
R R
Cash utilised in operating activities
Cash utilised in operations (370 437) (455 458)
Cash generated from (expended in)
investing activities
Net cash effects of asset acquisitions
and disposal of subsidiary 17 423 (555 845)
Cash effects of financing activities
Net cash effects of proceeds from
issue of shares and decrease
in long-term liabilities 629 657 303 987
Increase/(Decrease)in cash resources 276 643 (707 216)
Cash at beginning of year 58 160 765 376
Cash at end of year 334 803 58 160
STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated Total
Capital Premium Loss
R R R R
Balance at
28 February 1999 1 353 860 16 644 732 (5 161 072) 12 837 520
Proceeds from issue of
shares 125 000 125 000
Net share premium received 137 118 137 118
Net loss for the year (2 447 611) (2 447 611)
Balance at 29 February 2000 1 478 860 16 781 850 (7 608 683) 10 652 027
Proceeds from issue of
Shares 221 829 221 829
Net share premium received 420 891 420 891
Net loss for the year (1 809 357) (1 809 357)
Balance at
28 February 2001 1 700 689 17 202 741 (9 418 040) 9 485 390
DIVIDEND
No dividend was declared for the year ended 28 February 2001.
STRATE
The JSE Securities Exchange South Africa ("JSE") is implementing the STRATE
("Share Transaction Totally Electronic") system and the Company's share
certificates are scheduled to be converted to STRATE on 3 December 2001, and
will trade electronically from 27 December 2001. The first electronic
settlement will be on 7 January 2002.
CAUTIONARY ANNOUNCEMENT
On 15 May 2001 the Company announced that it is involved in negotiations
which, if successfully concluded, may have an effect on the price of its
shares traded on the JSE. Such negotiations are still in progress and
shareholders are therefore advised to continue to exercise caution in
dealing with their shares until a further announcement is made.
By order of the board
M Welthagen
Chairman and Chief Executive
JL Bosch
Executive Director
Johannesburg 30 May 2001
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