| Thu 23 Aug 2001, 0:00 | | Barplats - Results |
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BARPLATS INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004830/06)
ISIN : ZAE000028692
Share Code: BPL
Financial Results
Income Statements
(R'000)
Company Group
2000 2001 2001 2000
Audited Audited for the year ended 30 June Audited Audited
Sales revenue 116 938 -
Cost of sales 57 918 -
Contract mining costs 19 640 -
Contract concentrating costs 14 627 -
Amortisation of mining assets 20 256 -
Other costs 3 395 -
Operating income 59 020 -
(424) (944) Other (expense)/income (22 048) 13 951
- - Net financing (expense)
/income (4 805) 1 624
(424) (944) Income/(loss) before taxation 32 167 15 575
- - Taxation 32 488
(424) 944) Attributable income/(deficit) 32 135 15 087
Headline, diluted and basic
earnings per share (cents) 14 7
Balance Sheets
(R'000)
Company Group
2000 2001 2001 2000
Audited Audited as at 30 June Audited Audited
ASSETS
59 418 58 472 Non-current assets 200 214 88 825
- - Property, plant and
equipment 200 214 88 825
59 418 58 472 Investments in subsidiaries - -
1 13 Current assets 102 617 11 017
Inventories 994 -
- 12 Receivables 101 534 10 800
1 1 Cash and cash equivalents 89 217
59 419 58 485 Total assets 302 831 99 842
EQUITY AND LIABILITIES
59 371 58 427 Capital and reserves 114 223 82 088
2 225 2 225 Ordinary shares 2 225 2 225
1 049 928 1 049 928 Share premium 1 049 928 1 049 928
(992 782) (993 726) Accumulated deficit (937 930) (970 065)
Non-current liabilities 29 603 10 066
Provision for environmental
obligations 29 603 10 066
48 58 Current liabilities 159 005 7 688
48 58 Trade and other payables 40 256 7 421
- - Current taxation liabilities 16 267
- - Borrowings 118 733 -
59 419 58 485 Total equity and liabilities 302 831 99 842
CASH FLOW STATEMENTS
(R'000)
Company Group
2000 2001 2001 2000
Audited Audited for the year ended 30 June Audited Audited
Operating activities
Cash (utilised in)/generated
(440) (946) from operations (1 665) 3 989
- - Financial income 108 1 625
- - Interest paid (4 913) (1)
- - Taxation paid (283) (784)
Net cash (used in)/generated
(440) (946) from operating activities (6 753) 4 829
Investing activities
Purchase of property, plant
- - and equipment (113 156) (30 901)
- - Proceeds from sale of
fixed assets 1 048 405
Repayment from subsidiary
440 946 companies - -
Net cash (used in)/generated
440 946 from investing activities (112 108) (30 496)
- - Financing activities
Proceeds from borrowings 118 733 -
Net cash generated from
- - financing activities 118 733 -
- - DECREASE IN CASH
AND CASH EQUIVALENTS 128 25 667
Movement in cash and cash
equivalents
1 1 At the start of the year 217 25 884
- - Decrease 128 25 667
1 1 At the end of the year 89 217
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(R'000)
for the year ended 30 June
Share Share Accumulated
capital premium deficit Total
Balance at
30 June 1999 2 225 1 049 928 (985 152) 67 001
Net profit attributable
to ordinary shareholders 15 087 15 087
Balance at
30 June 2000 2 225 1 049 928 (970 065) 82 088
Net profit attributable
to ordinary shareholders 32 135 32 135
Balance at
30 June 2001 2 225 1 049 928 (937 930) 114 223
NOTES
1. The annual financial statements have been prepared using accounting
policies consistent with those of the annual financial statements for the
year ended 30 June 2001, except for the adoption of International Accounting
Standard (IAS) 10 (revised) (Events after the balance sheet date).
2. Capital expenditure for the period under review amounted to R113,2
million. Capital expenditure approved at 30 June 2001 amounted to R103,0
million, of which R24,9 million is already committed. This expenditure will
be funded from internal resources and borrowings.
3. Non-current liabilities includes a R118,7 million utilisation of a R200
million loan facility from a fellow subsidiary (Impala Platinum Limited) to
fund the capital expenditure. This facility bears interest at the
Johannesburg Interbank Acceptance Rate plus 2% and any outstanding balance
will be repaid by cash generated from operations. Other non-current
liabilities comprises the provision for environmental obligations.
EXTRACTS FROM THE ANNUAL REPORT
Financial year 2001 has been a significant year for shareholders of
Barplats, as it saw the re-commencement of mining at the Crocodile River
mine.
The pgm market
Prices of Barplats' major pgms - platinum, palladium and rhodium - were
subject to great volatility during the year, with the average price of
platinum exceeding US$600 per ounce and with palladium breaking through the
US$1 000 mark.
In spite of Russia delivering near-record quantities of platinum during
calendar 2000, and a weakening in the Japanese jewellery market, the
platinum market held up well. However, slowing world economies during 2001
should have an impact on demand, and a balanced to slightly oversupplied
market is forecast for 2001.
Substitution, in automotive and electronic industries, given renewed impetus
by the dramatic swings in the price of the metal and a significant downturn
in the information technology sector, will see reduced palladium demand for
the first time in ten years. Shrinking demand from these sectors,
exacerbated by consumer de-stocking and high Russian deliveries during the
first quarter of 2001, led to a near-halving of the price.
Crocodile River
During the year, the mine was brought into production under budget, but six
weeks behind schedule as a result of difficulties experienced with re-
starting the concentrator.
Capex
Capital costs thus far amounted to R149 million (excluding rehabilitation
assets), funded internally and by a loan from Impala Platinum Limited.
Further capex for the remaining life-of-mine of 14 years will be in the
region of R314 million funded from internal sources.
Amortisation charge for the year amounted to R20.3 million as a result of
additional environmental cost required to rehabilitate the open-cast
operation.
Safety
The safety performance at the mine during start-up was commendable with only
two accidents, resulting in a lost time injury frequency rate of 1.53 per
million man hours.
Standard work procedures and training requirements for the underground
mining is currently being compiled in conjunction with BTX, the underground
mining contractor.
Mining
Open-cast mining operations commenced on the eastern side of the property at
the Maroelabult section in December 2000. All concentrate produced is sold
to Impala Refining Services Limited based on an arms-length agreement.
Underground mining is set to commence in October 2001, with good progress
having been made on the preliminary construction for the sinking of a
decline shaft.
The decline shaft will eventually replace the ore from the open-cast section
as these surface ore reserves are depleted. The underground mine will adopt
the pillar and stall mining method and this, together with dense media
separation techniques, should improve the overall profitability of the mine.
Concentrator re-commissioning
One milling circuit of the concentrator was rehabilitated and the planned
milling target of 75 000 tons per month was achieved in March 2001. The
first concentrate was delivered to Impala Platinum's smelter on 8 February
2001. A second flotation circuit to treat the old tailings dam was
commissioned in July 2001.
The concentrator at the mine historically achieved poor recoveries due to
the nature of the orebody.
The decision to open-cast mine the oxidised ore compromised recoveries
during the commissioning phase. Recoveries of 63% were achieved as opposed
to the planned 79%. Some of the deeper ore (of more than 35 metres below
surface) has now been treated achieving recoveries of in excess of 70%.
The chrome content in the concentrate is also higher than expected. At the
time of re-commissioning, the chrome levels were in excess of 9% which has
now been reduced to below 4%. Further work to enhance recoveries and reduce
the chrome content is continuing.
These difficulties and the late start meant that the mine achieved an output
of 14 900 ounces of platinum in concentrate during the first six months of
operation.
Investigations to increase output and extend the life-of-mine are currently
underway.
Kennedy's Vale
Infill drilling comprising 20 boreholes was undertaken during the year to
confirm grades and geological structures at a cost of R21.9 million. Initial
results indicate a resource of some 233 million tons.
A 3-D seismic survey commenced in May 2001 and the interpretation of data
from this survey should be completed by mid-2002. An investigation of
adjacent properties and surface drilling of more complex geological
structures will be undertaken during the next year.
Prospects
Operations at the Crocodile River mine are expected to improve this year,
with prospects for further growth under review. Further evaluation of the
Kennedy's Vale project may well see a feasibility study begin in mid-2002
with the evaluation results expected in mid-2003.
As anticipated the record high markets for our major metals are expected to
return to more sustainable price ranges in the year ahead. Nonetheless,
Barplats' shareholders may expect an increase in earnings in the coming
year.
No dividend was declared for the year.
A copy of the Annual Report was posted to shareholders today.
KC Rumble
Chairman 23 August 2001
To obtain a copy of the full Annual Report, please contact:
The Secretaries, Impala Platinum Limited, 3rd Floor, Old Trafford 4, Isle of
Houghton, Boundary Road, Houghton 2198
(P.O. Box 61386, Marshalltown 2107). Telephone: 481-3900; Telefax: 484-0254
Registered Office:
3rd Floor, Old Trafford 4, Isle of Houghton, Boundary Road, Houghton 2198,
(P.O. Box 61386, Marshalltown 2107)
Transfer Secretaries:
Mercantile Registrars Limited, 8th Floor, 11 Diagonal Street, Johannesburg
2001, (P.O. Box 1053, Johannesburg 2000)
