| Tue 11 Sep 2001, 0:00 | | Assore Limited - Final Results |
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ASSORE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1950/037394/06)
Share code:ASR ISIN code:000017117
FINAL RESULTS
For the year ended 30 June 2001
Turnover increased by 18,9% to R1 146 million
Earnings increased by 55,2% to R139 million
Consolidated Income Statement
Year ended Year end
30 June 30 June
2001 2000
Audited Audited
R'000 R'000
Turnover 1 146 082 963 614
Net operating profit 235 999 157 763
Interest paid (35 761) (19 782)
Dividends received 3 622 5 334
Net profit before taxation 203 860 143 315
Taxation (67 265) (52 248)
Net profit after taxation 136 595 91 067
Outside shareholders' share
of loss/(profit) 2 447 (1 476)
Attributable earnings 139 042 89 591
Earnings per share (cents) 496,6 320,0
Headline earnings per share (cents)* 483,0 317,0
Dividend per share (cents) 32,0 40,0
Ordinary shares in issue (million) 28,0 28,0
Net asset value per share (rand) 29,3 23,7
Capital expenditure (million) 318,0 211,9
Capital commitments (million) 395,7 618,6
*The difference between attributable
and headline earnings is due to net
profit/loss on disposal or impairment
of fixed assets
Statement of Changes in Equity
Year ended Year end
30 June 30 June
2001 2000
Audited Audited
R'000 R'000
Share capital and non-
distributable reserves
Balance at beginning of year 25 252 14 271
Net increase in the market value
of listed investments 24 747 9 287
Foreign exchange gain/(realised) (95) 95
Foreign currency translation reserve 1 531 1 599
Balance at end of year 51 435 25 252
Distributable reserves
retained income
Balance at beginning of year 627 652 532 760
Effect of change in accounting
policy - 13 701
Restated opening balance 627 652 546 461
Earnings per income statement 139 042 89 591
Foreign exchange gain transferred 95 -
Ordinary dividend
No's 87 and 88 aggregating 32 cents
per share (2000: 40 cents per share) (8 960) (8 400)
Balance at end of year 757 829 627 652
Per balance sheet 809 264 652 904
Consolidated Balance Sheet
At At
30 June 30 June
2001 2000
Audited Audited
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 828 766 562 739
Intangible assets 5 777 5 057
Environmental rehabilitation
trust funds 11 021 16 363
Listed investments 105 494 70 658
951 058 654 817
Current assets
Cash resources 78 023 84 017
Other current assets 535 668 488 090
Total assets 1 564 749 1 226 924
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders' interest 809 264 652 904
Outside shareholders' interest 10 386 11 712
Share capital and reserves 819 650 664 616
Non-current liabilities
Deferred taxation 115 452 84 635
Long-term liabilities 29 579 32 572
964 681 781 823
Current liabilities
Non-interest bearing 121 985 135 875
Interest bearing 478 083 309 226
Total equity and liabilities 1 564 749 1 226 924
Consolidated Cash Flow Statement
Year ended Year end
30 June 30 June
2001 2000
Audited Audited
R'000 R'000
Cash generated from operations 140 881 67 904
Cash utilised in investing activities (316 822) (222 625)
Cash generated from
financing activities 169 947 136 873
Decrease in cash for year (5 994) (17 848)
Cash resources at beginning of year 84 017 101 865
Cash resources at end of year 78 023 84 017
Declaration of Final Dividend
Final dividend No 89 of 20 cents per share was declared payable to
shareholders on 11 September 2001. The last date to trade"cum"dividend in
order to participate in the dividend will be Friday 28 September 2001. The
company's ordinary shares will commence trading"ex"dividend from the
commencement of business on Monday, 1 October 2001 and the record date will
be 5 October 2001. Share certificates may not be de-materialised between
Friday 21 September and Friday 5 October 2001 (inclusive of both days) and
the dividend is payable on 8 October 2001.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
Johannesburg
11 September 2001
Commentary
Results
Reflecting a marked improvement in margins, earnings for the year have
increased by 55,2% to R139 million (2000: R89,6 million) from turnover which
grew by 18,9% to R1 146,1 million (2000: R963,6 million). Both earnings and
turnover were affected significantly by the contribution from the group's
45,7% stake in Assmang Limited ("Assmang"), which is partially consolidated.
The results of Assmang, which were published on Wednesday 29 August 2001,
improved notably as a result of the weakening of the SA Rand/US dollar
exchange rate, particularly in the second half of the year, as were the fees
generated by Assore as agent for the sale of Assmang's products.
Sales volumes
Sales volumes are set out in the table below and, with the exception of
ferromanganese, all volumes reflected increases on the previous year with
charge chrome showing a significant improvement in the second half.
2001 2000
'000 mt '000 mt
Iron ore 4 310 4 170
Manganese ore 979 926
Manganese alloys 193 206
Charge chrome 125 114
Capital expenditure
Capital expenditure was targeted primarily at Assmang's mines and alloy
works, comprising of the following capital projects:
* completion of the Dwarsrivier Chrome mine which came into operation
earlier this year (R190 million);
* charge chrome expansion at Machadodorp works consisting of a 54 MVA
furnace with preheater and pelletising plant (R375 million);
* iron jig plant to upgrade contaminated ore which came into operation
during June (R90 million);
* construction of the new shaft complex at Nchwaning manganese mine,
scheduled for completion in the second half of 2003 (R517 million).
Short-term borrowings increased significantly to R478,1 million (2000:
R309,2 million) and were required to fund the capital projects referred to
above. The level of borrowings is temporary and will reduce significantly
when Assmang receives the proceeds on the disposal of its Platinum Group
Metal Mineral Rights, on the farm Dwarsrivier, which were disposed of
earlier in the year for R551 million. It is anticipated that the proceeds
will probably be received by the end of the year.
Outlook
As virtually all turnover is US dollar-denominated, group results remain
considerably exposed to movements in the SA Rand/US dollar exchange rate.
The increased likelihood of a downturn in world economic growth occurring in
the next year - reflected by uncertainty in the Far East and North America -
could see steel production fall, with a consequent reduction in global
demand for iron ore, manganese ore and manganese alloys. While prices for
iron and manganese ores will probably be maintained, manganese alloy prices
have already fallen significantly in most markets in the past six months and
are expected to remain under pressure. In addition, there is still a
considerable overhang of ferrochrome in the world market and, with the
commissioning of additional ferrochrome capacity which is currently
underway, mainly in South Africa, both price and volumes will remain
vulnerable.
Dividends
In view of the cash flow constraints imposed by the current capital
expenditure programme, an unchanged final dividend of 20 cents per share is
declared as set out above.
Registered office: Transfer office:
Assore House, 15 Fricker Road, Computershare Services Limited,
Illovo Boulevard, 41 Fox Street,
Johannesburg 2196 Johannesburg 2001
Directors:
Desmond Sacco (Chairman and Managing Director),
R J Carpenter (Deputy Chairman), R A Chute, C J Cory, P C Crous,
B M Hawksworth, J S de Wet, Alternate J W Lewis (British)
Company secretaries:
African Mining and Trust Company Limited
