| Thu 2 Aug 2001, 0:00 | | Northam Platinum Limited - Preliminary Announcemen |
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Registration number 1977/003282/06
Incorporated in the Republic of South Africa
Preliminary announcement of audited results and
dividend declaration for the year ended 30 June 2001
HIGHLIGHTS
* Sales revenue up by 49% to R1 568 million
* Operating profit up by 119% to R788 million
* Headline earnings increase by 133% to R553 million
* Total dividend increases by 96% to 235 cents
Income Statement
Year Year
ended ended
30 June 30 June
Change 2001 2000
% R'000 R'000
Sales revenue 49,0 1 567 883 1 051 953
Cost of sales 12,7 779 501 691 925
Operating costs 731 826 586 938
Refining and other costs 29 601 32 068
Depreciation 86 999 59 474
Change in metal stocks (68 925) 13 445
Operating profit 119,0 788 382 360 028
Net investment income 39 714 27 199
Sundry revenue 9 863 3 780
Sundry expenditure (5 607) (5 371)
Profit before tax 115,8 832 352 385 636
Tax 88,6 279 375 148 134
Net income 132,8 552 977 237 502
Headline earnings 132,8 552 977 237 502
Headline earnings per share
- (cents) 105,6 240,1 116,8
Fully diluted earnings per share
- (cents) 105,4 238,7 116,2
Dividends per share - (cents) 95,8 235,0 120,0
Weighted average number of
shares in issue 230 310 897 203 283 458
Fully diluted number of shares in issue 231 696 160 204 392 150
Number of shares in issue at year-end 230 564 500 230 147 000
Statement of changes in equity
Equity at beginning of period 1 641 286 1 446 802
Issue of new shares 1 711 233 158
Net income for the period 552 977 237 502
Dividends distributed (230 535) (276 176)
Equity at end of period 1 965 439 1 641 286
Operating statistics
Development metres 17 965 11 466
Square metres mined 382 024 323 274
Tons milled 1 948 300 1 660 000
Head grade (g/ton - 3 PGEs + Au) 5,4 6,0
Precious metals in concentrates produced
- 3 PGEs + Au kg 8 725 8 372
oz 280 516 269 165
Precious metals sold - 3 PGEs + Au kg 8 306 9 331
oz 267 042 299 997
Average price realised
- 3 PGEs + Au R/kg 172 733 100 701
$/oz 706 492
Operating costs - 3 PGEs + Au R/kg 93 848 77 214
$/oz 383 378
Cash costs - 3 PGEs + Au R/kg 83 750 69 403
$/oz 342 339
Capital expenditure
Capital expenditure incurred during
the period R'000 163 332 343 389
Capital commitments at
end of period
Contracted R'000 11 126 37 965
Authorised but not contracted R'000 87 419 -
R'000 98 545 37 965
Cash flow Statement
Year Year
ended ended
30 June 30 June
2001 2000
R'000 R'000
Cash flow from operations 335 913 349 460
Profit before tax 832 352 385 636
Depreciation 86 999 59 474
Change in working capital (53 393) (13 278)
Tax paid (70 463) (9 205)
Dividends paid (460 682) (73 638)
Other 1 100 471
Cash utilised in investing activities (163 047) (343 389)
Cash from/(utilised in)
financing activities (7 082) 216 412
Net cash flow 165 784 222 483
Cash at beginning of period 378 425 155 942
Cash at end of period 544 209 378 425
Balance sheet
Fixed assets 1 261 159 1 184 868
Unlisted investments 182 181
Deferred tax - 166 485
Northam Platinum Restoration Trust Fund 7 128 5 859
Current assets 882 506 661 781
Inventories 284 214 212 596
Accounts receivable 54 083 70 760
Cash and cash equivalents 544 209 378 425
2 150 975 2 019 174
Share capital 2 289 413 2 287 702
Accumulated loss 323 974 646 416
Shareholders' equity 1 965 439 1 641 286
Non-current liabilities 77 902 6 835
Deferred tax 69 723 -
Long-term provisions 8 179 6 835
Current liabilities 107 634 371 053
Accounts payable 97 576 96 028
Dividends - 230 147
Tax 10 058 37 354
Current portion of long-term
liabilities - 7 524
2 150 975 2 019 174
Accounting policies
The financial statements have been prepared on the historical cost basis in
accordance with International Accounting Standards and incorporate
accounting policies which are consistent with those adopted in the previous
year.
Comment on results
Safety
It is with deep regret that the board records the death of five employees in
mining-related accidents over the past year. Management remains committed to
a safe working environment and the eradication of all risks that threaten
the health and safety of employees. It is pleasing to note that the rate of
lost time, reportable and fatal injuries is the lowest in three years.
Financial results
A combination of sustained higher metal prices and a weak Rand contributed
to a 49% improvement in sales revenues. As anticipated, the commencement of
stoping operations on the UG2 reef horizon contributed to an increase in
total operating costs. However, with the lower than expected metal
production, unit operating costs per kilogram and unit cash costs per
kilogram also increased.
The depreciation charge increased as a result of certain capital projects
coming into production during the year, and includes an amount of R10,5
million written off the mineral properties that fall outside the mining
authorisation area.
Currency gains resulting from the depreciation of the Rand were largely
responsible for the increase in sundry revenue.
The profit of R553 million attributable to shareholders increased by 133%
compared to the year ended 30 June 2000.
The increase in the tax payments is principally a result of Secondary Tax
on Companies owing to the higher dividend declarations. In addition, the
company commenced paying non-mining tax with effect from the current year.
Inventories increased by R72 million, of which R69 million is attributed
to metal stocks. This increase is largely as a result of the higher grade of
in process material since the start-up of the UG2 project.
The final dividend declared of 135 cents per share, together with the
interim dividend of 100 cents per share, recognises the sound financial
position of the company at year end.
In accordance with IAS 37 "Provisions, Contingent Liabilities and
Contingent Assets", the final dividend declared, being declared after the
end of the financial year, has not been accounted for in the period under
review.
Operating performance
Production from the Merensky horizon was centred in an area severely
disturbed by faulting and potholing. Consequently, metal production from
this horizon was lower than anticipated. However, with the commissioning of
the UG2 project in February 2001, total metal in concentrate produced was
4,2 per cent higher than in the previous year.
Capital expenditure
Total capital expenditure for the year ended 30 June 2001 amounted to R163
million, which includes an amount of R79 million (F2000: R59 million) to
complete the UG2 project. Mining projects, which include the accelerated
development programme and the 13 level extension, absorbed R67 million
(F2000: R41 million). Routine capital expenditure amounted to R17 million
(F2000: R9 million).
For the 2002 financial year total expenditure is forecast at R98 million,
of which R42 million will be on development, R2 million on the 13 level
extension, and the balance of R54 million will be on routine items.
UG2 project
The various components of the UG2 project were successfully completed on
time and within budget. Construction of the concentrator was completed in
November 2000 and successfully commissioned by January 2001. Good progress
was made on stope preparation activities and by year-end, a 24 month ore
reserve had been established.
Prospects
Development on the Merensky horizon will increase significantly and
production will move away from the geologically disturbed zone. The UG2 will
contribute a full year's production for the first time. Total production of
metals in concentrate therefore should increase substantially, which will
have a favourable impact on unit costs.
Despite this, if Rand metal prices remain at their current low levels,
earnings for F2002 are likely to be lower than for F2001.
Dividend
Final dividend, number 6, of 135 cents per share has been declared in South
African currency, payable to members registered in the books of the company
at the close of business on 17 August 2001.
Dividends will be electronically transferred to members' accounts on 5
September 2001 or where this method of payment has not been mandated,
dividend warrants will be posted to members on 4 September 2001.
The standard conditions relating to the payment of dividends are
obtainable from the transfer secretaries, Computershare Services Limited,
Edura House, 41 Commissioner Street, Johannesburg, 2001 or the United
Kingdom secretaries, St James's Corporate Services Limited, 6 St James's
Place, London, SW1A 1NP.
On behalf of the Board
T M G Sexwale I C Watson
Chairman Managing Director
Johannesburg
1 August 2001
Registered office: Kenilworth House PO Box 37160
Rutherford Estate Birnam
1 Scott Street 2015
Waverley 2090 Republic of South Africa
Johannesburg
Directors: T M G Sexwale (Chairman), I C Watson (Managing Director), M E
Beckett (British), B E Davison, D T G Emmett, A S Malone, E Molobi, R H H
van Kerckhoven (Belgian), B R van Rooyen, M J Willcox
Company Secretary: S J van der Spuy
These results are available on our website at www.northam.co.za
