| Thu 7 Mar 2002, 0:00 | | Aflease - Final Results |
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THE AFRIKANDER LEASE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
Share Code: AFL
ISIN Code: ZAE000000253
" or "the company")
Consolidated Financial Results for the year ended 31 December 2001 and the
quarter ended 31 December 2001
AUDITED AUDITED UNAUDITED UNAUDITED UNAUDITED
YEAR TO YEAR TO QUARTER TO QUARTER TO QUARTER TO
31 DEC 31 DEC 31 DEC 30 SEP 31 DEC
2001 2000 2001 2001 2000
HIGHLIGHTS:-
GOLD PRODUCED AND SOLD:-
-KILOGRAMS 1,206 997 253 315 338
-OUNCES 38,774 32,054 8,134 10,127 10,867
CASH OPERATING COST STACKED
(RANDS PER TON) 41.63 31.34 54.72 46.36 37.39
CASH OPERATING COST:-
-RAND / KG 50,709 39,622 68,166 50,340 43,994
-US$ / OZ 184 164 205 185 180
CASH OPERATING
PROFIT(R'000) 29,320 23,987 6,584 8,103 7,505
NET EARNINGS
(R'000) 16,057 14,665 3,784 4,565 4,845
HEADLINE AND
BASIC EARNINGS
PER SHARE (CENTS) 13.05 12.77 2.84 3.77 4.15
OPERATING RESULTS:-
TONNAGE STACKED
(TONS) 1,468,857 1,260,476 315,173 342,062 397,744
GOLD PRODUCED
AND SOLD (KG) 1,206 997 253 315 338
AVERAGE GRADE
STACKED (GMS/TON) 1.26 1.39 1.15 1.20 1.31
GOLD PRICE RECEIVED:-
-RAND / KG 75,021 63,681 94,190 76,063 66,198
-RAND / OZ 2,333 1,981 2,930 2,366 2,059
-US$ / OZ 270 275 277 276 271
R'000 R'000 R'000 R'000 R'000
INCOME STATEMENT:-
REVENUE 90,475 63,490 23,830 23,960 22,375
CASH OPERATING COSTS 72,921 53,546 20,384 17,300 18,026
CASH MOVEMENT IN LOCK-UP (11,766) (14,043) (3,138) (1,443) (3,156)
CASH OPERATING PROFIT 29,320 23,987 6,584 8,103 7,505
AMORTISATION AND
DEPRECIATION 7,551 5,808 2,014 1,858 1,280
NON-CASH MOVEMENT
IN LOCK-UP (837) (1,834) (228) (74) (365)
NET FINANCE COSTS 3,193 2,814 217 986 691
CORPORATE COSTS / OTHER 783 232 328 151 472
EXPLORATION EXPENDITURE 2,573 2,302 469 617 582
PROFIT BEFORE TAXATION 16,057 14,665 3,784 4,565 4,845
TAXATION - - - - -
NET PROFIT FOR THE YEAR 16,057 14,665 3,784 4,565 4,845
RATIOS:-
EARNINGS PER SHARE (CENTS):-
-CASH OPERATING EARNINGS 23.83 20.88 4.94 6.69 6.43
-HEADLINE AND BASIC 13.05 12.77 2.84 3.77 4.15
-FULLY DILUTED 12.83 12.39 2.79 3.69 4.03
WEIGHTED
AVERAGE NUMBER
-OF ORDINARY
SHARES
IN ISSUE 123,029,857 114,892,189 133,194,805 121,096,781 116,732,462
The fully diluted earnings per share is based upon the dilutive effect of
employee share options.
AUDITED AUDITED
YEAR ENDED YEAR ENDED
31 DEC 2001 31 DEC 2000
R'000 R'000
ABRIDGED BALANCE SHEET:-
ASSETS
NON-CURRENT ASSETS:-
-MINING ASSETS 115,548 94,661
-OTHER ASSETS 1,923 -
-INVESTMENTS 8,379 6,691
125,850 101,352
CURRENT ASSETS:-
-INVENTORIES 33,376 18,897
-RECEIVABLES AND PREPAYMENTS 10,484 6,294
-AMOUNTS OWING BY RELATED
THIRD PARTIES 114 41
-BANK AND CASH BALANCES 17,940 1,360
61,914 26,592
TOTAL ASSETS 187,764 127,944
EQUITY AND LIABILITIES
CAPITAL AND RESERVES:-
-ORDINARY SHARE CAPITAL 2,755 2,369
-SHARE PREMIUM 118,763 89,854
-ACCUMULATED EARNINGS / (LOSSES) 8,970 (7,087)
130,488 85,136
NON-CURRENT LIABILITIES:-
-INTEREST BEARING BORROWINGS 23,877 16,785
-REHABILITATION AND CLOSURE
COST OBLIGATIONS 4,500 4,500
-AMOUNTS OWING TO RELATED
THIRD PARTIES 4,056 2,317
32,433 23,602
CURRENT LIABILITIES:-
-TRADE AND OTHER PAYABLES 13,024 11,432
-PROVISIONS 604 551
-CURRENT PORTION OF INTEREST
BEARING BORROWINGS 5,217 2,917
-BANK OVERDRAFT BALANCES 5,998 4,306
24,843 19,206
TOTAL EQUITY AND LIABILITIES 187,764 127,944
AUDITED AUDITED UNAUDITED UNAUDITED
YEAR TO YEAR TO QTR TO QTR TO
31 DEC 31 DEC 0 31 DEC 31 DEC
2001 2000 2001 2000
R'000 R'000 R'000 R'000
ABRIDGED CASH FLOW STATEMENT:-
CASH FLOW GENERATED FROM /
(UTILISED BY) :-
-OPERATING ACTIVITIES 4,266 3,268 (956) 1,428
-INVESTING ACTIVITIES (15,992) (5,021) (6,263) (2,747)
-FINANCING ACTIVITIES 26,614 3,531 19,092 4,095
NET INCREASE IN CASH AND
CASH EQUIVALENTS 14,888 1,778 11,873 2,776
CASH & CASH EQUIVALENTS
-AT BEGINNING OF PERIOD (2,946) (4,724) 69 (5,722)
CASH & CASH EQUIVALENTS
-AT END OF PERIOD 11,942 (2,946) 11,942 (2,946)
STATEMENT OF CHANGES IN EQUITY:-
SHARE SHARE ACCUM TOTAL
CAPITAL PREMIUM (LOSS)/PROFIT EQUITY
BALANCE AT
31ST DECEMBER 1999 2,285 85,414 (21,752) 65,947
ISSUED DURING
THE PERIOD
(4,188,000 shares) 84 - - 84
SHARE PREMIUM - 4,440 - 4,440
NET PROFIT AFTER
TAXATION - - 14,665 14,665
BALANCE AT 31ST
DECEMBER 2000 2,369 89,854 (7,087) 85,136
ISSUED DURING
THE PERIOD
(19,300,168 shares) 386 - - 386
SHARE PREMIUM - 28,909 - 28,909
NET PROFIT
AFTER TAXATION - - 16,057 16,057
BALANCE
AT 31ST DECEMBER 2001 2,755 118,763 8,970 130,488
AUDITED AUDITED UNAUDITED UNAUDITED UNAUDITED
YEAR YEAR QTR QTR QTR
ENDED ENDED ENDED ENDED ENDED
31 DEC 31 DEC 31 DEC 30 SEP 31 DEC
2001 2000 2001 2001 2000
R'000 R'000 R'000 R'000 R'000
SUPPLEMENTARY INFORMATION:-
CAPITAL COMMITMENTS 3,000 5,467 3,000 - 5,467
CAPITAL EXPENDITURE 26,633 21,779 18,148 1,122 6,387
LONG TERM BORROWINGS:-
-FINANCE LEASES:-
-EXCAVATOR 984C 5,361 - 5,361 5,630 -
-EXCAVATOR 984C 4,778 5,247 4,778 4,939 5,247
-EXCAVATOR 994C 2,686 3,782 2,686 2,988 3,782
-ELUTION PLANT 376 1,749 376 739 1,749
-EXCAVATOR 974B x 2 7,089 - 7,089 - -
20,290 10,778 20,290 14,296 10,778
LESS:- SHORT-TERM
PORTION (5,217) (2,917) (5,217) (2,931) (2,917)
15,073 7,861 15.073 11,365 7,861
THE ABOVE FINANCE LEASES ARE
REPAYABLE OVER PERIODS VARYING
FROM ONE TO FIVE YEARS.
LOAN-HEAP LEACH PLANT:- 8,804 8,924 8,804 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 23,877 16,785 23,877 20,289 16,785
ANNOUNCEMENT
The Afrikander Lease Limited open cast pit and process plant upgrade plan,
implemented in September 2001 was completed on budget during February 2002
and will commence full operational service from the second quarter of 2002.
Highlights relating to this upgrade which will benefit the mine in the
second quarter are summarized below :
OPEN CAST PIT UPGRADE DETAILS
- Excavator Fleet increased by 20% - two new 75-ton excavators;
- Truck Fleet increased by 40% - seven new 85-ton dump trucks;
- High grade pit commenced production and is now producing additional tons
for blending; and
- Open cast pit production capacity increased by 35% to 165 000 tpm.
PROCESS PLANT UPGRADE DETAILS
- Process plant upgraded by 40% to treat deeper harder sulphide ore at 165
000 tpm;
- Average crush size reduced by 43% from 8.0 mm to 4.5 mm;
- Recovery increased from 70% to 80% + on sulphides; and
- The overall cycle time to be reduced from 150 to 120 day
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.
NOTES TO THE FINANCIAL STATEMENTS:-
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 statements of
Generally Accepted Accounting Practices 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.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
* The average rand gold price received for the year 2001 increased by 18%
from R63,681/kg to R75,021/kg. The rand price continued its upward trend to
around R100,000/kg by year end.
* The operational results for the year 2001 indicate an increase in ounces
of gold produced by 21%, from 32,054 oz to 38,774 oz.
* The financial results for the year 2001 indicate an increase in cash
operating profits of 22% to R29,320 million resulting in headline earnings
per share of 13,05 cents.
* The tonnage stacked and leached for the year 2001 increased by 16.5% to
1,468,857 tons, with the expectation that this will increase further in
2002.
* The net profit for the year increased by 9.5% to R16,057 million.
* Percolation test work relating to the heap leaching of finer crushed ore
on the new No 3 Pad has indicated that no fines problems exist.
* The Aflease upgrade plan for the open cast pit and process plant was
implemented in September 2001 and completed on budget, by February 2002.
This upgrade will increase tons from the pit and through the plant to
165,000 tpm, reduce product size to 4.5 mm, increase recovery to 80% + and
so increase gold production by an approximate 50%.
The funding to implement this plan was achieved through the issue and
placing of 14,437,500 shares at 160 cps.
OPERATIONAL DISAPPOINTMENTS
* The December quarter's results are generally down, mostly as a result of
lower tonnage and lower recovery from treating deeper (more intensive
mining), harder (needs more crusher), sulphides (needs a finer crush) before
the new Aflease upgrade had been completed. Consequently cash operating
profits are down to R3,784 million, cash operating earnings per share are
down to 4,94 cents per share and gold production down to 253 kg.
* Once again the excessive rainfall experienced for the period October 2001
through to January 2002 continued to exceed the norm by 75% which negatively
affected the quarter.
* The fabrication, erection and commissioning of the open cast pit and
process plant upgrade interrupted operations in the fourth quarter, which
with abnormal commissioning costs, negatively affected both tonnage treated
and operational costs for the quarter.
OUTLOOK
* Mining commenced in the high grade pay shoot area (Pit No: 2) in January
and ore from this pit was being stacked by February 2002.
* The ADR programme with the Bank of New York is anticipated to be
operational by March 2002 and will enhance the liquidity of the Aflease
shares.
* Quarterly production and financial results for the March 2002 quarter
will not substantially reflect the Aflease upgrade plan advantages and is
therefore anticipated to be in line with the December quarter at worst.
* The excessively high rainfall experienced during the previous quarter has
now abated and a drier and consequently more productive period is expected.
* Various alternatives relating to bring the now viable outer basin assets
to account are being evaluated resulting from the higher rand gold price.
On behalf of the Board
P E Skeat D R Cunningham
Houghton
7 March 2002
