| Wed 6 Feb 2002, 0:00 | | Barplats Investments Limited - Interim Report For |
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December 2001 Highlights
BARPLATS INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004830/06)
Share code: BPL
ISIN code: ZAE000028692
Interim Report for the six months ended 31 December 2001 Highlights
* Mine production on target
* Concentrator performance
improving
* Underground program on track
Consolidated income statement
Six months to Six months to Year to
31-Dec 31-Dec 30-Jun
2001 2000* 2001
(R'000) (Unaudited) (Unaudited) (Audited)
Sales revenue 124 119 116 938
Cost of sales 96 908 57 918
Contract mining cost 38 416 19 640
Contract concentrating costs 26 303 14 627
Amortisation of mining assets 28 656 20 256
Other costs 3 533 3 395
Operating income 27 211 59 020
Other income/(expense) 12 511 (1 326) (22 048)
Net financing (expense)/income (6 967) 59 (4 805)
Income/(deficit) before taxation 32 755 (1 267) 32 167
Taxation 26 18 32
Attributable income /(deficit) 32 729 (1 285) 32 135
Headline and basic earnings
per share (cents) 15 (1) 14
* The group only reached commercial levels of production during February 2001
Consolidated balance sheet
As at As at As at
31-Dec 31-Dec 30-Jun
2001 2000 2001
(R'000) (Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets 206 502 126 535 200 214
Current assets 110 821 3 063 102 617
Total assets 317 323 129 598 302 831
EQUITY AND LIABILITIES
Capital and reserves 146 952 80 803 114 223
Non-current liabilities 29 603 43 077 29 603
Current liabilities 140 768 5 718 159 005
Total equity and liabilities 317 323 129 598 302 831
Consolidated statement of changes in equity
Share Share Retained
(R'000) capital premium earnings Total
Balance at
31-Dec-00 2 225 1 049 928 (971 350) 80 803
Net profit attributable
to ordinary shareholders 33 420 33 420
Balance at
30-Jun-01 2 225 1 049 928 (937 930) 114 223
Net profit attributable
to ordinary shareholders 32 729 32 729
Balance at
31-Dec-01 2 225 1 049 928 (905 201) 146 952
Consolidated cash flow statement
Six months to Six months to Year to
31-Dec 31-Dec 30-Jun
2001 2000 2001
(R'000) (Unaudited) (Unaudited) (Audited)
Net cash generated from/(used in)
operating activities 50 322 4 871 (6 753)
Net cash used in investing activities (34 944) (37 710) (112 108)
Net cash (used in)/generated from
financing activities (15 293) 33 011 118 733
Increase/(decrease) in cash and
cash equivalents 85 172 (128)
Cash at the start of the period 89 217 217
Cash at the end of the period 174 389 89
Notes
The interim financial statements have been prepared using accounting
policies consistent with those of the annual financial statements for the
year ended 30 June 2001 as set out below, and conform with IAS 34 on Interim
Financial Reporting.
During the period under review, the group adopted the provisions of IAS 39
(Financial Instruments: Recognition and Measurement). Under this statement,
listed investments were previously carried at cost and are now carried at
market value. The adoption of these policies had no impact on the prior or
current earnings.
Other income/(expense) includes an amount of R25,2 million for exchange
adjustments as well as exploration costs of R11,6 million.
Capital expenditure for the period under review amounted to R41,1 million.
Capital expenditure approved and committed at 31 December 2001 amounted to
R40,2 million. This expenditure will be funded from internal resources and
borrowings.
Current liabilities includes a loan facility from the holding company
(Impala Platinum Holdings Ltd) of R200 million of which R103,4 million has
been utilised. This facility bears interest at the Johannesburg Interbank
Acceptance Rate plus 2% and any outstanding balance will be repaid from
cash generated from operations. Non-current liabilities comprises the
provision for environmental obligations.
Review
Crocodile River Mine
* The mine continued its good safety performance with three lost time
injuries during the period.
* Tons milled from the opencast mining operation were on target at 451 000
tons for the six months under review.
* The open cast mine has started accessing less weathered ores and
concentrator recoveries have steadily improved to above 70%. The
concentrator is now operating well with good availability.
* During the period under review processing of the old tailings dam
commenced and will continue for the next 18 months.
* Work to establish the portals for the underground declines have commenced
and the first underground ore will be delivered to the concentrator by April
2002.
The Market
* The impact of slowing world economies compounded by the attacks on the USA
in September 2001, has, to a great extent, been countered by resilience in
Chinese jewellery and US and European car markets.
* Notwithstanding in excess of half a million ounce liquidation on Tocom,
platinum demand have been supported by the continued growth of diesel
vehicles in Europe, and a seemingly strong demand for platinum jewellery in
China, both factors ameliorating the price decline for the metal.
* Palladium has suffered from substitution in the auto and electronics
markets, substantial de-stocking following the correction in the IT
industry, and Russian deliveries into an oversold market. This has resulted
in a price plunge of some 60% from highs recorded in January 2001. Rhodium
prices have also been volatile following erratic selling by those holding
large inventories.
* Considering the prevailing circumstances, the markets have performed
satisfactorily, and it is our opinion that the fundamentals for platinum in
the medium to long term remain good, whilst palladium's future hinges in the
short term on Russia's attitude to price and deliveries.
Prospects
* The re-opening of Barplats has gone reasonably well with the exception of
lower metallurgical recoveries due to unexpectedly high proportions of
weathered ore in the open cast operations. Pgm recoveries have steadily
improved in line with deeper ore and are now approaching expectations - an
imperative given the higher costs of the underground mining operation which
is about to commence.
* Cash from operations is being utilised to repay the loan provided by
Impala to re-start the Mine. No dividend will therefore be paid in this
financial year.
* In order to sustain an annual output of around 50 000 oz of platinum
beyond the life of the Maroelabult reserves (4 years), mining plans to
access ore in the original workings or new reserves on the Western boundary
of Crocodile River are being evaluated.
* Exploration is continuing at Kennedy's Vale and preliminary data obtained
from the 3D seismic survey was used to plan a second infill drilling
programme. These results will be used for the feasibility study that is to
commence later in the year.
On behalf of the board
K C Rumble
D H Brown Directors
Johannesburg
6 February 2002
Statistics
Six months to Year to
31-Dec 30-Jun
(R'000) 2001 2001
Production
Ore milled ('000 ton) 451 344
Metal in concentrate
Platinum (ozs) 21 789 14 902
Palladium (ozs) 9 643 6 564
Rhodium (ozs) 3 340 2 281
Average exchange rate achieved (R/US$) 9.44 7.95
Gross margin achieved (%) 21.9 50.5
Prices achieved for metal in concentrate
Platinum ($/oz) 394 497
Palladium ($/oz) 354 534
Rhodium ($/oz) 939 1 446
Cost per platinum ounce in concentrate
Cash operating cost (R/oz) 3 131 2 527
Net of revenue received from
other metals (R/oz) 881 (58)
Cash operating cost per
ton milled (R/ton) 151 109
Capital expenditure R'000 41 146 113 156
Registered office
3rd Floor, Old Trafford 4, Isle of Houghton, Boundary Road, Houghton 2198
(PO Box 61386, Marshalltown 2107)
Transfer secretaries
Mercantile Registrars Limited
8th Floor, 11 Diagonal Street, Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
