| Fri 30 May 2014, 16:03 | | CHROMETCO LIMITED - Abridged audited financial statements for the year ended 28 February 2014 and notice of AGM |
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CMO 201405300045A
Abridged audited financial statements for the year ended 28 February 2014 and notice of AGM
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE000070249
("Chrometco" or "the group")
ABRIDGED AUDITED GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2014
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited as at Audited as at
8 Feb 2014 8 Feb 2013
R'000 R'000
ASSETS
Non-current assets 196 448 199 822
Tangible assets 7 31
Intangible assets 190 625 197 499
Deferred taxation 5 816 2 292
Current assets 15 470 31 752
Inventory 79 11 011
Trade and other receivables 448 973
Cash and cash equivalents 14 943 19 768
Total assets 211 918 231 574
EQUITY AND LIABILITIES
Capital and reserves 178 950 179 256
Stated capital 54 187 54 187
Retained earnings 91 351 90 447
Non-controlling interest 33 412 34 622
Non-current liabilities 32 131 33 279
Deferred taxation 32 131 33 279
Current liabilities 837 19 039
Trade and other payables 303 15 546
Provisions 10 10
Taxation payable 524 3 483
Total equity and liabilities 211 918 231 574
Net asset value per share (cents) 87.32 87.47
Closing number of shares ('000) 204 929 204 929
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited for Audited for
year ended year ended
28 Feb 2014 28 Feb 2013
R'000 R'000
Revenue 12 900 1 553
Cost of sales (13 181) (530)
Gross profit (281) 1 023
Other income 85
Amortisation of intangible assets (6 873) (6 481)
Change in measurement – VAT 6 018
Operating expenses (7 701) (11 327)
Net loss before interest
and taxation (8 752) (16 785)
Investment income 815 1 182
Loss before taxation (7 937) (15 603)
Taxation 7 631 3 054
Loss for the year (306) (12 549)
Total comprehensive loss
for the year (306) (12 549)
Loss attributable to
non controlling interest 1 210 1 210
Total comprehensive income/(loss) for the
year attributable to owners of the company 904 (11 339)
Reconciliation between earnings and
head line earnings per share
Basic earnings / (loss) per share (cents) 0.44 (5.92)
Diluted earnings / (loss) per share (cents) 0.33 (5.28)
Earnings/(loss) attributable
to owners of the company 904 (11 339)
Adjustments:
Profit on disposal of plant (85) -
Headline profit attributable
to owners of the company 819 (11 339)
Headline profit/(loss) per share (cents) 0.40 (5.92)
Weighted average number of shares (`000) 204 929 191 595
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited for Audited for
year ended year ended
28 Feb 2014 28 Feb 2013
R'000 R'000
Cash flows from operating activities (4 910) (11 042)
Cash flows from investing activities 85 (800)
Cash flows from financing activities - -
Net movement in cash and cash equivalents (4 825) (11 842)
Cash and cash equivalents
at the beginning of the period 19 768 31 610
Cash and cash equivalents
at the end of the period 14 943 19 768
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated Non
Capital and Controlling Retained
Premium Interest Earnings Total
R'000 R'000 R'000 R'000
Balance at 1 March 2012 35 487 35 832 101 786 173 105
Comprehensive loss for the period - - (11 339) (11 339)
Non controlling interest’s
share of loss for the year - (1 210) - (1 210)
Effect of share based payments 18 700 - - 18 700
Balance at 1 March 2013 54 187 34 622 90 447 179 256
Non controlling interest’s
share of loss for the year - (1 210) - (1 210)
Comprehensive income
for the period - - 904 904
Balance at 28 February 2014 54 187 33 412 91 351 178 950
COMMENTARY – Financial and operational overview.
1. The directors present the audited results for the year ended 28 February 2014
2. Basis of preparation
The abridged audited group annual financial statements for the year ended
28 February 2014 have been prepared in accordance with the framework concepts
and the recognition and measurement criteria of International Financial
Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee, as well as the presentation and
disclosure requirements of IAS 34 – Interim Financial Reporting, the JSE Limited
Listings Requirements and the Companies Act of South Africa. The group accounting
policies and methods of measurement and recognition comply in material respects
with IFRS and are consistent with those applied in the financial period ended
28 February 2013
3. Auditors report
This summarised report is extracted from audited information but is not itself
audited. The unmodified audit report issued by Chrometco groups auditors,
RSM Betty & Dickson (Johannesburg) is available for inspection at the
company's registered office during normal office hours.
The directors take full responsibility for the preparation of this report
and confirm that the financial information has been correctly extracted
from the underlying annual financial statements.
4. Nature of business
The company is involved in the exploration of mineral resources and the
possible beneficiation thereof.
5. General review of operations.
During the period under review, the group focused its attention on the
following important issues:-
- Processing and sale of stockpiled MG4 chrome ore;
- Optimisation of the allocation of capital resources.
- DMR related activities required to conclude of the acquisition of the
PGM prospecting rights from Nkwe Platinum SA and Realm Resources; and
- Commercialization of the Rooderand chrome resource.
6. Prospects
The group currently has a chrome mine in the North West province of the
Republic of South Africa and is focusing on the consolidation of the PGM
resources on its Rooderand chrome property while simultaneously extracting
value from its chrome resource.
The newly entered IFM agreement could see mining commence on Rooderand in
this year. This is a significant step for the company.
The company is also interested in the exploration and beneficiation of
mineral related opportunities.
7. Changes to the board
The board welcomed the appointment of Mr. Ryan McConnachie (alternate to
Mr. Richard Rossiter) in May 2013.
Mr Christopher Seabrooke resigned as an independent non executive director
in June 2013.
8. Annual general meeting and integrated annual report
The annual general meeting of the company will be held in the boardroom,
at Computershare Investor Services (Pty) Ltd, 70 Marshall Street,
Johannesburg on Friday, 4 July 2014 at 10h00. The notice of annual general meeting
forms part of the Integrated Annual Report 2014, to be posted to shareholders on
or about 31 May 2014. The integrated annual report and form of proxy will also
be available on the company’s website: www.chrometco.co.za on or about 31 May 2014.
9. Dividends
No dividend has been declared for the period.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter, E Bramley,
IWS Collair, R McConnachie (alternate to Mr. Rossiter), TW Scott (FD)
30 May 2014
Designated Advisor: Sasfin Capital, a division of Sasfin Bank.
Company Secretary: CIS Company Secretaries (Pty) Ltd
Registered Office
70 Marshall Street
Johannesburg
(P.O.Box 3787, Dainfern. 2055)
www.chrometco.co.za
Date: 30/05/2014 04:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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