| Thu 6 Sep 2001, 0:00 | | Metorex - Consolidated Preliminary Results |
|
Metorex Limited
(Registration number 1934/005478/06)
(Incorporated in the Republic of South Africa)
Share code MTX ISIN code ZAE 000022745
Listed on the JSE Securities Exchange and the London Stock Exchange
www.metorexgroup.com
* Sales revenue up by 25% to R720 million
* Headline earnings up 192% to R85 million
* Dividend declared increases by 47%
* Chibuluma South, Beta Shaft and Lakeside projects completed during the
year.
Consolidated preliminary results
for the financial year ended 30 June 2001
Consolidated income statement
Year ended Year ended
30 June 2001 30 June 2000
(Audited) (Audited)
R'000 R'000
Revenue
Mineral sales
Copper 284 435 223 124
Zinc 98 415 89 162
Coal 116 685 86 591
Fluorspar 82 846 71 127
Gold 76 181 61 163
Antimony 33 416 23 560
Cobalt 20 723 16 769
Other 7 557 7 452
Gross revenue 720 258 578 948
Realisation costs 150 836 127 143
On-mine revenue 569 422 451 805
Cost of production 428 187 379 619
Depreciation 27 374 32 503
Mining profit 113 861 39 683
Other income 922 14 846
Income before exceptional items and
finance costs 114 783 54 529
Interest received/(paid) 1 515 (548)
Income before exceptional items 116 298 53 981
Exceptional items 87 16 785
Income before taxation 116 385 70 766
Taxation 24 675 16 446
Income after taxation 91 710 54 320
Income attributable to
outside shareholders 3 128 2 088
Income attributable to
ordinary shareholders 88 582 52 232
Basic earnings per share (cents) 73,5 43,4
Basic headline earnings
per share (cents) 70,6 24,2
Diluted earnings per share (cents) 70,8 42,4
Diluted headline earnings
per share (cents) 68,0 23,7
Dividend per share (cents) 18,0 7,0
Earnings per share and headline earnings
per share are calculated
using the following:
Income attributable to
ordinary shareholders 88 582 52 232
Exceptional items (87) (16 785)
Goodwill amortisation (1 195) (1 222)
Profit on sale of assets (3 179) (12 756)
Tax effect of adjustment 954 7 692
Headline earnings (R000's) 85 075 29 161
Weighted number of shares
in issue (000's) 120 584 120 438
Diluted number of shares
in issue (000's) 125 067 123 064
Statement of change in equity
30 June 2001 30 June 2000
(Audited) (Audited)
R'000 R'000
Share capital 12 073 12 043
- Balance at start of year 12 043 9 975
- Change due to reverse acquisition - (9 195)
- Issue of new shares 30 11 263
Share premium 185 512 184 756
- Balance at start of year 312 822 -
- Issue of new shares 756 312 822
- Reverse acquisition reserve (128 066) (128 066)
Non-distributable reserves (4 903) (6 833)
- Balance at start of year (6 833) 213 021
- Change in accounting policy - (180 254)
- Transfer to retained income - (32 739)
- Foreign exchange reserve (14 561) (6 861)
- Translation gain on foreign monetary
item net of tax 16 491 -
Retained income 162 746 95 848
- Balance at start of year 95 848 80 455
- Net income for the year 88 582 52 232
- Dividends distributed (21 684) (8 430)
- Change in accounting policy - (61 148)
- Transfer from NDR - 32 739
Total equity 355 428 285 814
Consolidated balance sheet
30 June 2001 30 June 2000
(Audited) (Audited)
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 220 039 77 679
Mineral rights 213 563 204 466
Goodwill 69 785 68 590
Investments 891 486
Rehabilitation trust funds 19 993 18 372
524 271 369 593
Current Assets
Inventories 46 178 34 434
Trade and other receivables 120 370 92 607
Taxation prepaid 605 634
Bank balances and cash 75 423 40 239
242 576 167 914
Total Assets 766 847 537 507
Equity and liabilities
Capital and reserves
Share capital and premium 197 585 196 799
Non-distributable reserves (4 903) (6 833)
Retained income 162 746 95 848
355 428 285 814
Minority interest 14 611 14 003
Non-current liabilities
Long-term liabilities 68 181 5 425
Long-term provisions 49 054 40 072
Deferred taxation 72 089 57 276
559 363 402 590
Current liabilities
Trade and other payables 139 554 77 181
Short-term borrowings 28 667 12 250
Provisions 18 501 27 115
Bank overdraft 7 230 13 886
Taxation 13 532 4 485
207 484 134 917
Total equity and liabilities 766 847 537 507
Net asset value per share (cents) 294 237
Consolidated cash flow
30 June 2001 30 June 2000
R'000 R'000
Cash inflows from operating activities 115 793 13 689
Cash outflows from investing activities (151 966) 2 000
Cash inflows from financing activities 78 356 (29 320)
Net increase in cash and
cash equivalents 42 183 (13 631)
Cash at beginning of year 44 725 57 685
Effect of foreign exchange rate changes 1 278 671
Cash at end of year 88 186 44 725
Cash at end of year includes an amount of R19,9 million (2000: R18,4
million) held by Metorex Group Rehabilitation Trust Funds.
Accounting policies
During the year, the company changed its basis of accounting from generally
accepted accounting practice adopted by the mining industry in South Africa
to International Accounting Standards ("IAS").
The following items and comparatives have been appropriately restated:
Property, plant and equipment; deferred taxation; and employee benefits
other than pension.
Reduction in net Restatement of Restatement of opening
profit for the year NDR retained income
2001 35 518 - -
2000 37 979 180 254 (61 148)
RESULTS OF OPERATIONS
It is a pleasure to submit the results for the financial year ended 30 June
2001 which reflects record profits as well as an increased dividend for the
year.
The group profit before tax, minorities and exceptional items for the
year was R116 million (2000: R54 million). Headline earnings were R85
million (2000: R29 million) which represents headline earnings per share of
70,6 cents (2000: 24,2 cents), a 192% increase on the previous year. Mineral
sales volumes were substantially in line with the previous year. The profit
improvement was derived largely from improved metal prices in the early half
of the financial year assisted by the Rand/Dollar exchange rate which
depreciated to an average of R7,59/$1 (R6,34/$1) during the year.
The performances of the group companies in the safety arena have been
remarkably good, notably the achievements at three mines O'Okiep, Maranda
and Consolidated Murchison which each attained 1 000 fatality free shift
awards.
CAPITAL EXPENDITURE
From an organic growth viewpoint, the company completed various projects
referred to last year; namely the re-equipping of the Beta Shaft and
commencement of production; establishment of the Chibuluma South processing
plant and open pit operation; opening of the Lakeside West underground
orebody and commissioning of a new plant and progress on the Vergenoeg plant
improvements.
Capital expenditure of R155 million (2000: R18,3 million) was incurred on
these projects with the Chibuluma South plant and open pit being the major
item of capital. The Chibuluma South project was funded by an $8,3 million
Investec Limited loan supported by CGIC, which is repayable over five years
at a 7,5% interest rate.
The remainder of the capital was funded from internal resources. Each of
the above projects increased the group's production capability and extended
the lives of the relevant mines to in excess of 10 years.
Capital commitments authorised and contracted amounts to R32 million
whilst uncontracted commitments amount to R15 million.
FUTURE PROSPECTS
The outlook for the forthcoming year is likely to be affected by the
economic downturns in both Europe and the USA with lower base metal
commodity prices. The group is protected to an extent by the spread of
minerals in the portfolio and a depreciating Rand, but the cyclical effect
of low mineral prices will impact on the group's profitability for the
forthcoming year.
EVENTS SINCE YEAR-END
Agreement in principle has been reached on the acquisition of two blocks of
coal reserves, one of which is adjacent to the existing operations and the
other block in Middelburg. Full details will be released to shareholders on
finalisation of these transactions.
The drafting of the Perkoa Memorandum of Understanding ("MOU") is
progressing.
The commissioning of the Chibuluma South Plant has taken longer than
envisaged. Progress is being made in resolving the problem areas of leach
throughput and launder efficiency.
A S Malone C D S Needham
Chairman Financial Director
DECLARATION OF DIVIDEND
Notice is hereby given that a final dividend referenced No. 004 of 12
(twelve) cents per share has been declared in respect of the period ended 30
June 2001. The dividend, which is declared in the currency of the Republic
of South Africa, will be paid by electronic transfer or where this method is
not mandated, by dividend warrants posted on 1 October 2001.
The last day to trade in the company's shares for purposes of entitlement
to the dividend is Friday, 21 September 2001. The shares will commence
training ex-dividend on Monday 24 September 2001 and the record date is
Friday, 28 September 2001. Certificated shareholders may not dematerialise
their shares between Friday, 14 September 2001 and Friday, 28 September
2001.
By order of the board
6th September 2001
Secretaries Transfer Secretaries
Meyer Wilson Marsh Inc Mercantile Registrars Limited
7 West Street 11 Diagonal Street
Houghton Johannesburg
