| Mon 1 Oct 2001, 0:00 | | Mazal Mining Preliminary Results - Preliminary Res |
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PRELIMINARY RESULTS
CONSOLIDATED INCOME STATEMENT
30 June 2001 30 June 2000
R R
Revenue 6 649 245 -
Operating loss before interest (4 112 703) (6 773 314)
Net interest paid (1 380 631) (147 529)
Attributable loss (5 493 334) (6 920 843)
Actual number of shares in issue 180 000 000 180 000 000
Weighted average number of
shares in issue 180 000 000 180 000 000
Headline and ordinary loss
per share (cents) (3,05) (3,84)
Depreciation for the period 2 349 699 1 906 113
CONSOLIDATED BALANCE SHEET
ASSETS
Non-current assets 26 756 925 24 194 990
Current assets 1 544 178 674 922
Total assets 28 301 103 24 869 912
EQUITY AND LIABILITIES
Shareholders' funds 10 743 335 16 236 669
Non-current liabilities 13 118 876 4 005 927
Current liabilities 4 438 892 4 627 316
Total equity and liabilities 28 301 103 24 869 912
Net assets value
per share (cents) 5,97 9,02
CONSOLIDATED CASH FLOW STATEMENTS
Cash outflow from exploration
Activities (3 518 714) (3 161 337)
Cash outflow from investing
Activities (4 397 921) (6 356 220)
Cash inflow from financing
Activities 6 433 538 790 496
Decrease in cash and cash
Equivalents (1 483 097) (8 727 061)
Net cash and cash equivalents
at beginning of year 213 918 8 940 979
Net cash and cash equivalents
at end of year (1 269 179) 213 918
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Accumulated
and premium loss Total
Balance at 30 June 1999 28 878 523 (5 721 011) 23 157 512
Net loss for the year (6 920 843) (6 920 843)
Balance at 30 June 2000 28 878 523 (12 641 854) 16 236 669
Net loss for the year (5 195 573) (5 195 573)
Balance at 30 June 2001 28 878 523 (17 837 427) 11 041 096
1. COMMENTS
The period under review saw mining commencing in December 2000. For the
period December 2000 to June 2001 some 89 773,5 tons of ore were mined from
which 7 305 carats were recovered at an average value of R782,00 per carat.
Although this translates into an effective grade of approximately 8 carats
per 100 tons, it has become clear that the crushing techniques being
employed are inadequate and that the front-end system of the plant needs to
be upgraded.
An agreement to raise additional capital of some R9,45 million has been
signed. The Company is satisfied that this funding is sufficient. It will
allow us to not only effect the necessary upgrade to the plant and
machinery, but also to make the final payment due in respect of the mineral
rights and carry out a drilling programme on MK3.
We are therefore reasonably certain that this upgrade will bring the
Company to profitability in the short term. The entire upgrade is being
overseen by a leading firm of process engineers who have been consulted not
only to design the necessary upgrade, but also to project manage the
operation.
2. GEOLOGY
In addition the Company has also commissioned a leading engineering
company to conduct an independent resource evaluation and mining study on
the deposit, as well as generate a block model from which a resource
statement according to the SAMREC code will be generated. To complete this
report an additional bulk sample will have to be carried out in the western
portion of the weathered kimberlite. The ground is currently being prepared
for this and the bulk sample will take place shortly. Once this bulk sample
has taken place the intended report can be completed and publication will
take place.
The Company has completed a bulk sample of the blue ground in the
eastern section of the pipe. Like the first bulk sample, this one was
carried out by independent geologist Lyndon de Meillon. de Meillon has
confirmed the deficiencies experienced with the crushing system but
nevertheless, from the 1 903,2 tons of blue ground treated, 231,6 carats
were recovered at an average value of $113,72 per carat. This equates to a
grade of 12,15 carats per hundred tons. Due to the present pit design
accurate surveying of sample site was not possible. The possible error is,
however, not expected to be more than 10% either way.
Diamond drilling of the MK2 deposit also commenced. Provisional results
logged by our independent geologist indicate that MK2 is a kimberlite pipe.
3. PRODUCTION
In March 2001 the Company commenced working a 24-hour day broken up into
three eight-hour shifts which operate six days per week. There are now some
120 workers employed at Paardeberg.
The problems experienced with the plant effectively meant that not more
than 30 tons per hour could be processed. The envisaged plant upgrade will
in the short term see production levels increase to 70 tons per hour (at
which stage the Company is profitable), thereafter to 100 tons per hour in
the medium term and then 150 tons per hour. The initial plant upgrade should
be completed by December 2001.
4. ACCOUNTING POLICIES
The same accounting policies and methods of computation have been used in
the preparation of this report that were used in the annual financial
statements to 30 June 2000.
The preliminary report for the Company for the year ended 30 June 2001
has been reviewed by the Company auditors Charles Orbach & Company. Their
report is available for inspection at the Company's registered office.
Shareholders should note that Mazal is still trading under cautionary. A
further announcement will be made in due course.
C P Dollery D Levithan
Chairman Director
Transfer secretaries Registered office
Computershare Services Limited 240 Commissioner Street
4th Floor, Edura House Johannesburg, 2000
41 Fox Street (P.O. Box 15991,
Johannesburg, 2001 Doornfontein, 2028)
(P.O. Box 61051,
Marshalltown, 2107)
