| Wed 31 Oct 2001, 0:00 | | Aflease - Unaudited Consolidated Financial Results |
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UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER
2001
Quarter to Quarter to Quarter to Year to
30 Sep 2001 30 June 2001 30 Sep 2000 31 Dec 2000
Highlights:-
Gold produced and sold:-
- kilograms 315 335 306 997
- ounces 10,127 10,770 9,838 32,054
Cash operating cost stacked:-
- rand/ton 46.36 39.26 54.42 31.59
- rand/kg 50,340 48,212 45,755 39,933
- US$/oz 185 187 197 165
Cash operating profit
(R'000) 8,103 7,195 5,249 23,649
Net earnings (R'000) 4,565 3,671 1,540 14,665
Headline and basic
earnings per share
(cents) 3.77 3.08 1.35 12.76
Operating Results:-
Tonnage stacked
(tons) 342,062 411,379 257,261 1,260,476
Gold produced and
sold (kg) 315 335 306 997
Average grade stacked
(g/ton) 1.20 1.33 1.03 1.39
Gold price received:-
- rand/kg 76,063 69,690 62,908 63,653
- rand/oz 2,366 2,168 1,957 1,980
- US$/oz 276 267 274 275
Quarter to Quarter to Quarter to Year to
30 Sep 2001 30 June 2001 30 Sep 2000 31 Dec 2000
R'000 R'000 R'000 R'000
Income statement:-
Revenue 23,960 23,346 19,250 63,462
Cash operating costs 17,300 18,665 16,492 53,856
Cash movement in
lock-up (1,443) (2,514) (2,491) (14,043)
Cash operating
Profit 8,103 7,195 5,249 23,649
Amortisation 1,858 1,859 2,168 5,808
Non-cash movement in
lock-up (74) (300) - (1,834)
Net Interest paid 986 1,088 954 2,476
Corporate costs/
other 151 176 (133) 232
Exploration costs 617 701 720 2,302
Profit before
Taxation 4,565 3,671 1,540 14,665
Taxation - - - -
Net income after
Taxation 4,565 3,671 1,540 14,665
Ratios:-
Earnings per share (cents):-
- cash operating
earnings 6.69 6.03 4.59 20.58
- headline and basic 3.77 3.08 1.35 12.76
- fully diluted 3.66 2.99 1.31 12.39
Weighted average number
of ordinary shares
in issue 121,096,781 119,271,116 114,274,288 114,892,189
The fully diluted earnings per share is based upon the dilutive effect of
employee share options resulting in 3,515,000 options being in issue
throughout the year.
Period ended Period ended Period ended Period ended
30 Sep 2001 30 June 2001 30 Sep 2000 31 Dec 2000
R'000 R'000 R'000 R'000
Abridged balance sheet:-
Assets
Non-current assets:-
- mining assets 97,586 98,322 93,166 94,696
- investments 7,687 7,329 6,182 6,691
- other assets 1,745 - - -
107,018 105,651 99,348 101,387
Current assets:-
- inventory 29,469 26,977 15,570 18,897
- accounts
receivable 6,732 6,685 5,483 6,258
- bank balance 2,179 2,883 3,614 1,388
38,380 36,545 24,667 26,543
Total assets 145,398 142,196 124,015 127,930
Equity and liabilities:-
Capital and reserves:-
- ordinary share
capital= 2,460 2,390 2,285 2,369
- share premium 95,627 90,797 85,414 89,853
- retained income/
(accumulated deficit) 5,186 621 (11,933) (7,087)
103,273 93,808 75,766 85,135
Non-current liabilities:-
- provision for
environmental
rehabilitation 4,500 4,500 4,500 4,500
- other long-term
liabilities 20,289 21,225 16,872 16,858
24,789 25,725 21,372 21,358
Current liabilities:-
- accounts payable 10,716 14,041 12,579 11,983
- short term portion
of long term loans 2,931 3,031 2,744 2,844
- bank overdraft 2,110 3,612 9,336 4,334
- loans from related
parties 1,579 1,979 2,218 2,276
17,336 22,663 26,877 21,437
Quarter to Quarter to Quarter to Year to
30 Sep 2001 30 June 2001 30 Sep 2000 31 Dec 2000
R'000 R'000 R'000 R'000
Abridged cash flow statements:-
Generated from/(utilised by):-
operating activities (1,186) 6,187 2,160 2,542
investing activities (1,480) (978) (943) (7,693)
financing activities 3,464 (478) (1,331) 6,930
Cash inflow/(outflow)
for the period 798 4,731 (114) 1,779
Cash and cash
equivalents at
the beginning of
period (729) (5,460) (5,608) (4,725)
Cash and cash
equivalent
at end of period 69 (729) (5,722) (2,946)
Share Share Accumulation Total
Capital Premium Profit/(Deficit) Equity
Statement of changes in equity:-
Balance at 30 June 2000 2,285 85,414 (13,473) 74,226
Issued during the period - - - -
Share Premium - - - -
Net income after taxation - - 1,540 1,540
Balance at 30 September
2000 2,285 85,414 (11,933) 75,766
Issued during the period
(4,188,000 shares) 84 - - 84
Share Premium - 4,439 - 4,439
Net income after taxation - - 4,846 4,846
Balance at 31 December
2000 2,369 89,853 (7,087) 85,135
Issued during the period - - - -
Share Premium - - - -
Net income after taxation - - 4.037 4,037
Balance at 31 March 2001 2,369 89,853 (3,050) 89,172
Issued during the period
(1,036,667 shares) 21 - - 21
Share Premium - 944 - 944
Net income after
Taxation - - 3,671 3,671
Balance at 30 June 2001 2,390 90,797 621 93,808
Issued during the period 70 - - 70
Share Premium - 4,830 - 4,830
Net income after
Taxation - - 4,565 4,565
Balance at 30 September
2001 2,460 95,627 5,186 103,273
Notes to the Financial statements
Quarter ended Quarter ended Quarter ended Year ended
30 Sep 2001 30 June 2001 30 Sep 2000 31 Dec 2000
R'000 R'000 R'000 R'000
Supplementary information:-
Capital commitments - - 4,585 5,467
Capital expenditure 1,122 639 5,616 2,779
Long-term borrowings:-
Finance leases:-
- Excavator 984C 5,630 5,882 - -
- Excavator 984 C 4,939 5,081 4,651 5,247
- Excavator 994 2,988 3,281 3,979 3,782
- Elution plant 739 1,088 2,062 1,749
14,296 15,332 10,692 10,778
Less:- short-term
Portion (2,931) (3,031) (2,744) (2,844)
11,365 12,301 7,948 7,934
The above finance leases are repayable
over periods varying from one to five years
Loan - heap leach
plant:- 8,924 8,924 8,924 8,924
The above loan is repayable in 2005 and bears
interest at a rate of 15.25% until 31/03/2002,
thereafter the interest will be re-negotiated.
Total long-term
Borrowings 20,289 21,225 16,872 16,858
Security:-
The finance lease for the elution plant and the loan for the heap-leach
plant are secured by R8m of the Afrikander Lease Limited's equipment,cession
of mineral rights for an amount of R11m and by a pledge and cession of all
short-term insurance policies covering the heap leach and elution plant.
Accounting policies:-
The same accounting policies have been applied to the current year as were
used in the prior year's annual financial statements.
These financial results have been compiled in accordance with the Generally
Accepted Accounting Policies in South Africa.
No dividend has been proposed or declared for the period under review.
For the months of January and February 2000 all costs and revenue from gold
produced and sold were capitalised as being prior to achieving commercial
levels of production. Consequently the statistics shown under the
"Highlights" and "Operating Results" section of this report are based upon
the period March 2000 to June 2000.
COMMENTARY
Highlights
The average dollar gold price improved 3.4% for the period to US$276/oz.
This combined with a weaker Rand/dollar, resulted in a 9.1% improvement in
the average Rand gold price received to R76 063/kg.
Total cash costs for the period were slightly better at US$185/oz.
Profit before tax and earnings per share rose 24.3% to R4.56 million and
22.4% to 3.77cps respectively.
Disappointments
The dollar gold price languished subsequent to its September highs.
Tons stacked during the month of July where negatively affected by a failure
in the primary jaw crusher.
Outlook
Drilling of the Inner Basin has been completed. The subsequent evaluation
has highlighted the presence of a high-grade area with sufficient reserves
to a sustain a second open pit. This material will be mined and blended with
the current open pit material resulting in a net increase in the average
grade stacked on the heap leach pad in the coming quarters.
The plant upgrade and fleet expansion has been initiated.
Plant Upgrade
The cash raised, as discussed under "Issue of shares for cash" below, will
be used to upgrade the plant and equipment to accommodate a minimum of 165
000 tons per month at an increased grade and recovery. Initial work on the
upgrade commenced during October 2001 and is expected to be completed by the
end of the current financial year.
The salient features of the upgrade include:
The in-pit loading capacity will be increased with the purchase of two
additional Liebherr 974 excavators;
The hauling capacity will be increased by a further seven 85-ton haulers;
The optimization of blending the higher-grade area with the Inner Basin
should increase the average stacked heap leach pad grade by approximately
25%;
Process plant capacity will be increased to a maximum of 180 000 tons per
month;
The stacked product crush size will be reduced from 13.6 mm to 5.0 mm
thereby increasing recovery by an additional 10% to an average 85%;
Ancillary infrastructure will also be upgraded to accommodate the increased
plant capacity;
The commissioning of the plant is scheduled to be completed by 31 March
2002.
The consequence of the plant upgrade will be an approximate 50% increase in
gold production per month and R/ton operating costs should decline.
ISSUE OF SHARES FOR CASH
1. Introduction
The directors of Aflease advise that, in accordance with the general
authority to issue shares for cash obtained from its shareholders at the
general meeting held on 18 October 2001, 14 437 500 shares of two cents each
have been issued to selected financial institutions at an issue price of 160
cents per share ("the cash issue").
The issue price of 160 cents per share represents a 6,4% discount to the 30
business days weighted average traded price of 171 cents per share on the
JSE Securities Exchange South Africa ("JSE") on 19 October 2001, the date
when the directors approved the issue.
2. Rationale for the cash issue
The proceeds of the cash issue will be utilised to fund the company's
planned expansion programme.
3. Financial effects
The effects of the cash issue on the actual earnings and net asset value for
the nine months ended 30 September 2001 and based on the actual number of
shares in issue as at that date are as follows:
Before After %
(cents) (cents) change
Net asset value per share:-
- undiluted 83,96 93,15 10,94
- diluted 81,63 90,82 11,26
Earnings per share:-
- undiluted 9,98 10,13 1,50
- diluted 9,70 9,88 1,86
These calculations are based on the assumption that the proceeds of the cash
issue had been invested at rates equivalent to money market rates for the
nine month period ended 30 September 2001.
4. Listing of the shares
The 14 437 500 new ordinary shares were listed on the JSE on 29 October
2001.
On behalf of the Board
P E Skeat D R Cunningham
Houghton
30 October 2001
