| Fri 3 Aug 2001, 0:00 | | The Afrikander Lease Limited - Unaudited Consolida |
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THE SIX MONTHS ENDED 30TH JUNE 2001
Registration No: 1921/006955/06
Unaudited consolidated financial results for the six months ended 30th June
2001
Quarter Quarter Six months Six months Year
to to to to to
30 June 31 Mar 30 June 30 June 31 Dec
'01 '01 '01 '00 `00
Highlights:-
Gold produced and sold:-
-kilograms 335 302 637 352 997
-ounces 10,770 9,710 20,480 11,317 32,054
Cash operating cost
stacked (rands per ton) 39.26 31.92 35.64 15.65 31.59
Cash operating cost:-
-rand / kg 48,212 42,305 45,411 26,912 39,933
-US$ / oz 187 167 178 123 165
Cash operating profit
(R'000) 7,195 7,351 14,546 12,364 23,649
Net earnings (R'000) 3,671 4,037 7,708 8,280 14,665
Headline and basic earnings
per share (cents) 3.08 3.41 6.49 7.25 12.77
Operating results:-
Tonnage stacked (tons) 411,379 400,243 811,622 605,441 1,260,476
Gold produced and
sold (kg) 335 302 637 352 997
Average grade stacked
(g/ton) 1.33 1.32 1.32 1.58 1.39
Gold price received:-
-rand / kg 69,690 66,646 68,246 61,824 63,653
-rand / oz 2,168 2,073 2,123 1,923 1,980
-US$ / oz 267 263 265 280 275
R'000 R'000 R'000 R'000 R'000
Income statement:-
Revenue 23,346 20,127 43,473 21,837 63,462
Cash operating costs 18,665 17,447 36,112 19,338 53,856
Cash movement in lock-up (2,514) (4,671) (7,185) (9,865) (14,043)
Cash operating profit 7,195 7,351 14,546 12,364 23,649
Amortisation 1.859 1,737 3,596 2,360 5,808
Non-cash movement in
lock-up (300) (235) (535) 0 (1,834)
Net interest paid 1,088 910 1,998 831 2,476
Corporate costs/other 176 128 304 (107) 323
Exploration costs 701 774 1,475 1,000 2,302
Profit before taxation 3,671 4,037 7,708 8,280 14,665
Taxation 0 0 0 0 0
Net income after taxation 3,671 4,037 7,708 8,280 14,665
Ratios:-
Earnings per share (cents):-
-cash operating 6.03 6.21 12.24 10.82 20.58
-headline and basic 3.08 3.41 6.49 7.25 12.77
-fully diluted 2.99 3.31 6.30 7.03 12.58
Weighted average number
of ordinary shares in
issue 119,271,116 118,462,288 118,868,930 114,274,288 114,892,189
The fully diluted earnings per share is based upon the dilutive effect of
the employee share options resulting from 3,515,000 options being in issue
throughout the year.
Period ended Period ended Period ended Period ended
30 June 2001 31 Mar 2001 30 June 2000 31 Dec 2000
R'000 R'000 R'000 R'000
Abridged balance sheet:-
Assets
Non-current assets:-
-mining assets 98,322 99,542 89,714 94,696
-investments 7,329 6,990 5,778 6,691
105,651 106,532 95,492 101,387
Current assets:-
-inventory 26,977 24,029 13,034 18,897
-accounts receivable 6,685 6,382 3,312 6,258
-bank balance 2,883 1,463 1,510 1,388
36,545 31,874 17,856 26,543
Total assets 142,196 138,406 113,348 127,930
Equity and liabilities
Capital and reserves:-
-ordinary share
capital 2,390 2,369 2,285 2,369
-share premium 90,797 89,853 85,414 89,853
-accumulated profit/
(loss) 621 (3,050) (13,472) (7,087)
93,808 89,172 74,227 85,135
Non-current
liabilities:-
-provision for
enviromental
rehabilitation 4,500 4,500 4,500 4,500
-other long-term
liabilities 21,225 22,473 13,486 16,858
25,725 26,973 17,986 21,358
Current liabilities:-
-accounts payable 14,041 10,133 9,420 11,983
-short term portion
of long term loans 3,031 2,844 2,605 2,844
-bank overdraft 3,612 6,923 7,117 4,334
-loans from related
parties 1,979 2,361 1,993 2,276
22,663 22,261 21,135 21,437
Total equity and
liabilities 142,196 138,406 113,348 127,930
Quarter Quarter Six Months Six Months Year
30 Jun 31 Mar 30 Jun 30 Jun 31 Dec
R'000 R'000 R'000 R'000 R'000
Abridged cash
flow statement:-
Generated from/
(utilised by):-
Operating activities 6,187 (1,332) 4,855 (4,206) 2,542
Investing activities (978) (1,415) (2,393) (4,805) (7,693)
Financing activities (478) 233 (245) 8,129 6,930
Cash inflow/(outflow)
for the period 4,731 (2,514) 2,217 (882) 1,779
Cash and cash
equivalents
at beginning of
period (5,460) (2,946) (2,946) (4,725) (4,725)
Cash and cash
equivalents
at end of period (729) (5,460) (729) (5,607) (2,946)
Statement of changes in equity:-
Share Share Accumulated Total
capital premium profit/(deficit) equity
Balance at 31st December 1999 2,285 85,414 -21,752 65,947
Issued during the period 0 0 0 0
Share premium 0 0 0 0
Net income after taxation 0 0 8,280 8,280
Balance at 30th June 2000 2,285 85,414 -13,472 74,227
Issued during the period
(4,188,000 shares) 84 0 0 84
Share premium 0 4,439 0 4,439
Net income after taxation 0 0 6,385 6,385
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
Issued during the period
(1,036,667 shares)* 21 0 0 21
Share premium 0 944 0 944
Net income after taxation 0 0 3,671 3,671
Balance at 30th June 2001 2,390 90,797 621 93,808
* The above 1,036,667 shares were issued on a loan account to The Afrikander
Lease Share Trust Scheme
Notes to the Financial Statements
Quarter Quarter Six Months Six Months Year
Ended Ended Ended Ended Ended
30 Jun 31 Mar 30 Jun 30 Jun 31 Dec
R'000 R'000 R'000 R'000 R'000
Supplementary information:-
Capital commitments 0 0 0 6,100 5,467
Capital expenditure 639 6,679 7,318 11,829 21,779
Long-term borrowings:-
Finance leases:-
Excavator 984C 5,882 6,194 5,882 0 0
Elution plant 1,088 1,425 1,088 2,362 1,749
Excavator 984C 5,081 5,213 5,081 5,247 0
Excavator 994 3,281 3,561 3,281 4,805 3,782
15,332 16,393 15,332 7,167 10,778
Less:- short-term
portion -3,031 -2,844 -3,031 -2,605 -2,844
12,301 13,549 12,301 4,562 7,934
The above finance
leases are repayable
over periods varying
from one to five years.
Loan-heap leach plant:- 8,924 8,924 8,924 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 21,225 22,473 21,225 13,486 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.
Notes to the financial statements:-
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.
For the months of January and February 2000 all costs and revenue from gold
produced and sold were capitilised as being prior to achieving commercial
levels of production. Consequently the statistics shown under the
`highlights' and `operating results' section of this report are based upon
the period March 2000 to June 2000.
HIGHLIGHTS
* Cash Operating profits of R7.2 million or 6.03 cents per share were
achieved for the previous quarter.
* Gold production increased by 11% to 335 kgs or 10 770 ounces for the
previous quarter.
* The second lift on Heap Leach Pad No: 1 has commenced. Both Heap Leach
Pads No's: 1 and 2 were operating satisfactorily, with no evidence of the
historical perculation problems.
* During the quarter, Elandslaagte was acquired, an extension to the current
ore body. The net affect of this was an increase in ore resources of
approximately
200, 000 ounces.
* The existence of a high-grade pay-shoot within the Inner Basin was
confirmed by intensive sequential drilling during the quarter. Grades
ranging from 2 g/ton to 4 g/ton over a width of 10 meters were recorded.
Management is implementing a strategy to incorporate a portion of this high-
grade ore in its monthly production targets.
DISAPPOINTMENTS
* For the quarter, higher cash costs offset the increased gold production
resulting in a 3% reduction in cash operating earnings to 6.03 cents per
share.
* The gold price continued to languish in a tight range for most of the
quarter.
OUTLOOK
* The average pad grade stacked is expected to increase in the second half
of the current financial year as a direct result of production from the high-
grade pay-shoot.
* The benefits of the recently announced diesel rebate for opencast miners
will be realised in the current quarter for the first time. Management
estimate the saving at R0.3 million per month.
* The board has approved a plant upgrade to increase both recovery and
throughput. This will have the further effect of reducing the US$/oz cash
cost. Pending JSE Securities Exchange approval, initial funding will come
from the private placement of shares for cash at R1.40 per share, marginally
above the 30 day weighted moving average which has been fully subscribed
for.
On behalf of the Board
P E Skeat D R Cunningham
Houghton
2 August 2001
