| Thu 21 Feb 2002, 0:00 | | Assmang - Group Financial Results |
|
ASSMANG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1935/007343/06)
JSE Share code : ASG
ISIN Code : ZAE000030789
("Assmang" or "the Company")
HIGHLIGHTS:
- HEADLINE EARNINGS INCREASED BY 14 PER CENT TO R121 MILLION
- ATTRIBUTABLE EARNINGS HAVE INCREASED BY R559 MILLION MAINLY AS A
RESULT OF THE PROFIT FROM THE DISPOSAL OF THE DWARS RIVIER PGMS
- NEW FERRO-CHROME FURNACE SUCCESSFULLY COMMISSIONED
- NCHWANING MANGANESE MINE SHAFT COMPLEX ON SCHEDULE AND WITHIN BUDGET
Group financial results for the half-year ended 31 December 2001
Group balance sheet
(Unaudited) (Audited)
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets
Fixed assets 1 756 864 1 273 298 1 622 306
Deferred tax assets 6 822 12 930 27 558
Environmental rehabilitation
trust fund 8 150 5 905 8 150
Current assets
Inventories 661 956 614 911 564 811
Trade and other receivables 395 763 174 705 350 705
Deposits and cash 5 597 7 017 15 537
Total assets 2 835 152 2 088 766 2 589 067
EQUITY AND LIABILITIES
Total shareholders' interest 1 835 472 1 072 332 1 188 614
Non-current liabilities
Long-term borrowings 3 633 4 074 2 831
Deferred tax liabilities 296 488 233 518 288 395
Long-term provisions 28 685 23 873 26 729
Current liabilities
Trade and other payables 240 978 99 319 145 550
Overdrafts and short-term
borrowings 423 697 619 900 909 767
Taxation 6 199 35 750 27 181
Total equity and liabilities 2 835 152 2 088 766 2 589 067
Group income statement
(Audited)
(Unaudited) Year
Half-year ended ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Turnover 1 162 369 786 180 1 926 189
Net operating profit before
depreciation 283 063 232 782 504 715
Depreciation 51 912 41 813 88 947
Operating profit 231 151 190 969 415 768
Interest received 653 915 2 496
Finance costs 43 328 30 616 68 385
Profit before exceptional item 188 476 161 268 349 879
Exceptional item 543 759 - -
Profit before taxation and
State's share of profit 732 235 161 268 349 879
Taxation and State's share
of profit 67 636 55 485 118 943
Earnings 664 599 105 783 230 936
Determination of headline
earnings
Net profit attributable to
ordinary shares 664 599 105 783 230 936
Disposal of mineral rights (543 759) - -
(Loss) on disposal of
other fixed assets - - (582)
Headline earnings 120 840 105 783 230 354
Number of ordinary shares
in issue ('000) 3 548 3 548 3 548
Earnings per share (cents)
- Attributable 18 730 2 981 6 508
- Headline 3 405 2 981 6 492
Dividends per share (cents) 500 500 750
Group cash flow statement
(Audited)
(Unaudited) Year
Half-year ended ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Cash flow from
operating activities
Cash generated from operations 237 827 144 407 340 708
Interest received 653 915 2 496
Interest paid (43 328) (30 616) (68 385)
Dividends paid (17 741) (17 741) (26 612)
Taxation paid (59 789) (8 775) (44 198)
Net cash in-flow from
operating activities 117 892 88 190 204 009
cash flow from
INVESTING activities
Additions to fixed assets to
maintain operations (108 909) (124 610) (285 206)
Additions to fixed assets to
expand operations (77 561) (104 668) (339 174)
Disposal of mineral rights
and other 543 906 132 744
Net cash in/(out)-flow from
investing activities 357 436 (229 146) (623 677)
Cash flow from
financing activities
Long-term borrowings
repaid/(raised) 802 402 (2 029)
(Decrease)/increase in
short-term borrowings (486 070) 147 042 436 705
Net cash (out)/in-flow from
financing activities (485 268) 147 444 434 676
Net (decrease)/Increase in
cash and cash equivalents (9 940) 6 488 15 008
Cash and cash equivalents
at beginning of period 15 537 529 529
Cash and cash equivalents
at end of period 5 597 7 017 15 537
Group statement of changes in shareholders' equity
Share Share Distributable
capital premium reserves Total
R'000 R'000 R'000 R'000
Balance at beginning of period 1 774 11 611 1 175 229 1 188 614
Earnings for period 664 599 664 599
Ordinary dividends (17 741) (17 741)
Balance at end of period 1 774 11 611 1 822 087 1 835 472
Results
The results have been prepared in accordance with Statements of Generally
Accepted Accounting Practice. The methods of computation and accounting
policies are consistent with those previously used.
The Group's results for the half-year reflect a 14 per cent increase in
headline earnings to R120,8 million compared with R105,8 million for the
corresponding period in the previous year. This was mainly as a result of
the weaker SA rand/US dollar exchange rate during the period.
The significant increase in total earnings, which amounted to R664,6
million (31 December 2000: R105,8 million), arose primarily as a result of
the receipt of the proceeds, received on 14 December 2001, from the disposal
of the Platinum Group Metal Mineral Rights (PGMMR) on the farm Dwars Rivier,
for R543,8 million after related disposal expenses.
Sales volumes of manganese ore were unchanged at 0,6 million tons and
iron ore sales, following the commissioning of the jig plant at the end of
the last financial year, rose 22 per cent to 2,2 million tons (1,8 million
tons). Sales of ferro-manganese were slightly lower at 82 361 tons (85 718
tons), while ferro-chrome sales increased significantly to 88 916 tons (44
724 tons).
With effect from 1 July 2001 the Company acquired all the assets of its
subsidiary, Feralloys Limited, which previously "housed" the ferro-chrome
and ferro-manganese operations and the business is now organised on a
divisional basis.
Major projects
Capital expenditure to maintain and improve operations during the period
under review amounted to R186,5 million (R229,3 million) and was spent on
the following two major projects:
* The R375 million chrome expansion, consisting of a closed 54 MVA furnace
and a 350 000 tons per annum pelletising plant at the Machadodorp Works, was
completed and the project commissioned within budget during the period under
review. The new furnace increases annual production capacity to over 300 000
tons of chrome alloy. The investment by the Group in terms of its chrome
expansion over the last few years amounts to about R750 million, and
includes the acquisition of the Dwars Rivier chrome resource and property,
the construction and commissioning of the Dwars Rivier chrome ore mine,
upgrades to existing furnaces at the ferro-chrome facility and the latest
expansion of the new furnace and pelletising plant.
* The sinking and establishment of the R517 million shaft complex at the
Nchwaning manganese mine is on schedule and within budget. By end January
2002 the decline shaft had advanced to 1 102 metres of the required 2 200
metres total length, while the vertical, man and material shaft reached a
final depth at 421 metres. Shaft equipping has now commenced on schedule. It
is expected that the shaft complex will be completed during the latter half
of the calendar year 2003 and will have an annual mine capacity of about
two million tons of high grade manganese ore.
Borrowings
Short-term borrowings at the end of the half-year decreased by R486,0
million to R423,7 million, compared to R909,8 million at the end of the 30
June 2001 financial year. This significant decrease represents the receipt
of the proceeds from the sale of the Dwars Rivier PGMMR.
Capital commitments
(Unaudited) (Audited)
At 31 December At 30 June
2001 2000 2001
R'000 R'000 R'000
Commitments for future
capital expenditure
- contracted for 364 544 317 807 56 403
- authorised, but not
contracted for 394 464 709 111 786 852
759 008 1 026 918 843 255
Outlook for the next six months
Group earnings for the remaining half on the year ending 30 June 2002 are
expected to exceed those of the last six months provided the SA rand/US
dollar exchange rate and commodity prices are maintained at current levels.
Prices and sales volumes are not expected to vary materially from those
achieved during the period under review.
Interim dividend
Following receipt of the proceeds on the disposal of the PGMMR's, an
increased interim dividend of 850 cents per share is proposed to be declared
before the end of March 2002.
By order of the board
Anglovaal Mining Limited
Secretaries
per: A Jepson
Registered office: 56 Main Street, Johannesburg, 2001
21 February 2002
Directors:
Desmond Sacco (Chairman), R.P. Menell (Deputy Chairman), R.J. Carpenter,
C.J. Cory, P.C. Crous, D.N. Murray, G.J. Robbertze, J.C. Steenkamp.
Alternate directors:
B.J. Funston, R.L. Howard*, J.W. Lewis*, B.M. Menell, B.R. Broekman,
M.J.N. Uys.
*British
Company secretary: Anglovaal Mining Limited
