| Tue 28 Aug 2001, 0:00 | | Assmang - Group Financial Results And Dividend Ann |
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Assmang Limited
(formerly the Associated Manganese Mines of South Africa Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1935/007343/06)
Share code: ASG ISIN code: ZAE000030789
("Assmang")
HIGHLIGHTS:
- HEADLINE EARNINGS INCREASED BY 83 PER CENT TO R231 MILLION
- IRON ORE JIG PLANT SUCCESSFULLY COMMISSIONED
- NEW CHROME FURNACE COMMISSIONING UNDER WAY
- NEW NCHWANING MANGANESE MINE SHAFT ON SCHEDULE AND WITHIN BUDGET
Group financial results
and dividend announcement for the year ended 30 June 2001
Group financial results
The audited financial results of the Company and its subsidiaries are as
follows:
Group balance sheet
At 30 June
2001 2000
R'000 R'000
Assets
Non-current assets
Fixed assets 1 622 306 1 085 965
Deferred tax assets 27 558 21 407
Environment rehabilitation trust fund 8 150 5 905
Current assets
Inventories 564 811 456 759
Trade and other receivables 350 705 293 215
Deposits and cash 15 537 529
Total assets 2 589 067 1 863 780
Equity and liabilities
Total shareholders' interest 1 188 614 984 290
Non-current liabilities
Long-term borrowings 2 831 3 672
Deferred tax liabilities 288 395 213 668
Long-term provisions 26 729 23 430
Current liabilities
Trade and other payables 145 550 144 850
Overdrafts and short-term borrowings 909 767 472 858
Taxation 27 181 21 012
Total equity and liabilities 2 589 067 1 863 780
Group income statement
Year ended 30 June
2001 2000
R'000 R'000
Turnover 1 926 189 1 579 075
Cost of sales 1 401 622 1 276 529
Gross profit 524 567 302 546
Other operating income 2 302 5 994
Other operating expenses 111 101 57 388
Profit from operations 415 768 251 152
Interest received 2 496 1 190
Finance costs 68 385 36 565
Profit before taxation and
State's share of profit 349 879 215 777
Taxation and State's share of profit 118 943 89 180
Earnings 230 936 126 597
Earnings per share (cents)
- Attributable 6 508 3 568
- Headline 6 492 3 548
Dividends per share (cents) 750 750
Determination of headline earnings
Net profit attributable to
ordinary shares 230 936 126 597
Profit on sale of property,
plant and equipment (582) (708)
Headline earnings 230 534 125 889
Group cash flow statement
Year ended 30 June
2001 2000
R'000 R'000
Cash flow from operating
activities
Cash generated from operations 340 667 333 454
Interest received 2 496 1 190
Interest paid (68 385) (36 565)
Dividends paid (26 612) (26 612)
Taxation paid (44 198) (35 010)
Net cash in-flow from operating
activities 203 968 236 457
cash flow from investing activities
Additions to fixed assets to
maintain operations (285 206) (276 166)
Additions to fixed assets to
expand operations (339 174) (128 388)
Other 744 759
Net cash out-flow from investing
activities (623 636) (403 795)
Cash flow from financing activities
Long-term borrowings repaid (2 029) (1 627)
Increase in short-term borrowings 436 705 167 228
Net cash in-flow from financing
activities 434 676 165 601
Net increase/(decrease) in cash
and cash equivalents 15 008 (1 737)
Cash and cash equivalents at
beginning of year 529 2 266
Cash and cash equivalents
at end of year 15 537 529
Group statement of changes in shareholders equity
Share Share Distributable
capital premium reserves Total
R'000 R'000 R'000 R'000
Balance at beginning of year 1 774 11 611 953 164 966 549
Change in accounting policy in
respect of:
- Proposed dividend No. 122 17 741 17 741
Restated opening balance 1 774 11 611 970 905 984 290
Earnings for the year 230 936 230 936
Ordinary dividends (26 612) (26 612)
Balance at end of year 1 774 11 611 1 175 229 1 188 614
Change in Accounting Policies
In order to comply with International Accounting Standards, the Group has
adopted the following accounting policies:
- IAS 10 (AC 107), Events after balance sheet date, whereby dividends and
secondary taxation on companies thereon are recorded when the dividend is
declared. The cumulative effect on accumulated profits as a result of this
treatment is reflected in the Group Statement of Changes in Shareholders
Equity.
- IAS 39 (AC133), Financial instruments: Recognition and measurement,
whereby reporting enterprises should apply hedge accounting when, and only
when, all requirements set out by the standard have been met, otherwise
financial instruments should be accounted for on a fair value basis.
Earnings in the current period have been reduced by R6 733 000 whilst the
opening retained income brought forward has not been adjusted as the amount
is not considered material.
Results
Earnings for the year ended 30 June 2001 increased by 82,4 per cent to R231
million compared to the R127 million reported in the previous year. The
results were affected significantly by the 22 per cent increase in turnover
to R1 926 million (30 June 2000: R1 579 million) mainly as a result of the
weaker rand/US dollar exchange rate, particularly towards the end of the
year. Simultaneously, cost of sales was contained through improved
operational efficiencies and effective cost control programmes.
Volumes for all products were maintained with the exception of charge
chrome which improved significantly the second half of the year.
Sales volumes for the year are set out below:
2001 2000
'000mt '000mt
Iron ore 4 310 4 170
Manganese ore (excluding deliveries
to the Cato Ridge works) 979 926
Manganese alloys 193 206
Charge chrome 125 114
Post Balance Sheet Events
On 31 May and 27 July 2001 announcements were made regarding the disposal of
the Group's Platinum Group Metal Mineral Rights ("PGMMR's") to Two Rivers
Platinum (Proprietary) Limited for R551 million. The receipt of the proceeds
has been delayed by the completion of certain regulatory issues. It is
anticipated that these issues should be finalised towards the end of the
calendar year and a circular will be despatched to shareholders in due
course.
Major Projects
Capital expenditure for the year to both maintain and improve operations was
R624 million (R405 million) and was spent on the following projects:
The R190 million Dwarsrivier opencast chrome mine, commissioned earlier
during the year, came into production and is supplying ore to the chrome
division's Machadodorp Works as planned.
Work is well advanced on the R375 million charge chrome expansion at the
Machadodorp Works. The 54 MVA furnace with a preheater was commissioned on
schedule during August 2001 and the 350 000 tons per annum pelletising plant
is expected to follow shortly.
The R97 million iron ore jig plant, which was installed to upgrade
contaminated iron ore dumps to saleable product, was completed on schedule
during June 2001 and is operating satisfactorily.
The installation of the new R517 million shaft complex at the Nchwaning
manganese mine is on schedule and within budget. During August the decline
shaft was advanced up to 726 metres of the required 2 200 metres total
length while the vertical, man and material shaft has reached final depth at
421 metres. Shaft equipping has commenced on schedule. The shaft complex
should be completed in the latter half of 2003 and will have an annual run
of mine capacity of about two million tons of high grade manganese ore.
During the latter half of the year, the Cato Ridge works successfully
switched a 22 MVA furnace from the production of high carbon ferro-manganese
to silico manganese. Silico manganese was last produced some 15 years ago
and will enhance the division's existing product range of high, medium and
low carbon ferro-manganese.
Borrowings
Short-term borrowings at year end were R910 million (R473 million) raised
mainly to finance the abovementioned capital projects. This level of
borrowings is temporary and will reduce significantly on receipt of the
proceeds on the PGMMR's disposal referred to above.
Declaration of final dividend
In view of the cash flow constraint imposed by the current capital
expenditure programme, the interim dividend was maintained at 250 cents per
share and an unchanged final dividend No. 124 of 500 cents per share has
been declared payable to members. The last date to trade ("Cum" the
dividend) in order to participate in the dividend will be Friday, 14
September 2001. The company's ordinary shares will commence trading "ex" the
dividend from the commencement of business on Monday, 17 September 2001 and
the record date will be 21 September 2001.
The dividend is payable subject to conditions which can be inspected at the
registered office of the Company.
The dividend will be paid on 25 September 2001.
By order of the board
Anglovaal Mining Limited
Secretaries
per: A. Jepson
Registered office: 56 Main Street, Johannesburg, 2001
28 August 2001
Directors: Desmond Sacco (Chairman), R.P. Menell (Deputy Chairman), R.J.
Carpenter, C.J. Cory, P.C. Crous, D.D. de Beer, G.J. Robbertze, J.C.
Steenkamp.
Alternate directors: B.J. Funston, R.L. Howard*,
J.W. Lewis*, B.M. Menell, J.S. Mostert, M.J.N. Uys.
*British
Company secretary: Anglovaal Mining Limited
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