| Mon 11 Mar 2002, 0:00 | | Assore Limited - Interim Results For The Half Year |
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ASSORE LIMITED
Company registration number 1950/037394/06
JSE Share code: ASR
ISIN Code : ZAE000017117
INTERIM RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2001
Headline earnings increase by 38,4% to R83,5 million
Borrowings reduced significantly on receipt of proceeds
on PGM mineral rights disposal
Ferrochrome expansion commissioned on schedule
Nchwaning shaft complex on schedule and within budget
Consolidated Income Statement
Half-year ended Year ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Turnover 700 459 556 753 1 146 082
Net operating profit 142 871 106 701 235 999
Finance costs (21 029) (16 690) (35 761)
Dividends received 1 470 1 082 3 622
Net profit before taxation 123 312 91 093 203 860
Taxation (42 944) (31 299) (67 265)
Net profit from ordinary
operating activities 80 368 59 794 136 595
Outside shareholders' share of loss 363 665 2 447
Net profit from ordinary activities 80 731 60 459 139 042
Exceptional item 248 280 - -
Attributable earnings 329 011 60 459 139 042
Earnings per share (cents) 1 175,0 215,9 496,6
Headline earnings per share (cents)* 298,3 215,6 483,6
Dividends per share (cents) 20,0 30,0 32,0
Ordinary shares in issue (million) 28,0 28,0 28,0
Net asset value per share (rand) 42,7 25,6 29,0
Capital expenditure (million) 98,8 113,9 318,0
Capital commitments (million) 383,5 492,1 395,7
*Determination of headline earnings
Attributable earnings per
income statement 329 011 60 459 139 042
Exceptional item (248 280) - -
Net (profit)/ loss on disposal
or impairment of other fixed assets 2 806 (80) (3 636)
83 537 60 379 135 406
Statement of Changes in Equity
Half-year ended Year ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
SHARE CAPITAL AND NON-
DISTRIBUTABLE RESERVES
Balance at beginning of year 52 952 25 252 26 769
Net increase in the market value
of listed investments 47 704 7 104 24 747
Foreign exchange gain transferred - (57) (95)
Foreign currency translation reserve 5 690 951 1 531
Balance at end of year 106 346 33 250 52 952
DISTRIBUTABLE RESERVES -
RETAINED INCOME
Balance at beginning of year 749 728 619 551 619 551
Attributable earnings 329 011 60 459 139 042
Foreign exchange gain transferred - - 95
Ordinary dividend
Nos 89 of 20 cents per share
(2000 : 30 cents per share) (5 600) (8 400) (8 960)
Balance at end of year 1 073 139 671 610 749 728
Per balance sheet 1 179 485 704 860 802 680
Consolidated Balance Sheet
At 31 December At 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 899 212 659 391 828 766
Intangible assets 6 186 - 7 294
Environmental rehabilitation
trust funds 11 422 9 473 11 021
Investments 155 883 78 272 105 494
1 072 703 747 136 952 575
Current assets
Cash resources 115 191 77 909 78 023
Other current assets 632 418 463 303 527 567
Total assets 1 820 312 1 288 348 1 558 165
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders' interest 1 179 485 704 860 802 680
Outside shareholder's interest 15 490 11 961 10 386
Share capital and reserves 1 194 975 716 821 813 066
Non-current liabilities
Deferred taxation 129 496 97 802 115 452
Long-term liabilities 18 983 28 684 29 579
1 343 454 843 307 958 097
Current liabilities
Non-interest bearing 202 858 106 997 121 985
Interest bearing 274 000 338 044 478 083
Total equity and liabilities 1 820 312 1 288 348 1 558 165
Consolidated Abridged Cash Flow Statement
Half-year ended Year ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Cash generated from operations 94 605 73 377 142 667
Cash utilised in investing activities 146 280 (107 630) (316 429)
Cash (utilised)/generated
from financing activities (203 717) 28 145 167 768
Increase/(Decrease) in cash for year 37 168 (6 108) (5 994)
Cash resources at beginning of year 78 023 84 017 84 017
Cash resources at end of year 115 191 77 909 78 023
Declaration of Interim Dividend
Interim dividend No 90 of 40 cents per share was declared payable to
shareholders on Monday, 11 March 2002. The last date to trade "cum" dividend
in order to participate in the dividend will be Friday, 12 April 2002. The
company's ordinary shares will commence trading "ex" dividend from the
commencement of business on Monday, 15 April 2002 and the record date will
be Friday, 19 April 2002. Share certificates may not be dematerialised or
rematerialised between Monday, 8 April 2002 and Friday, 19 April 2002
(inclusive of both days) and the dividend is payable on Monday, 22 April
2002.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
11 March 2002
Commentary
Results
Headline earnings for the half-year ended 31 December 2001 have increased
by 38,4% to R83,5 million compared to the corresponding period of the
previous year with the major contribution coming from the group's 45,7%
stake in Assmang Limited ("Assmang").
The results of Assmang were published on 22 February 2002 and headline
earnings increased by 14,2% mainly as a result of the weakening SA rand/US
dollar exchange rate. Assore also benefited from the additional fees
generated on the increased turnovers during the period.
Attributable earnings for the period increased from R60,5 million to
R329,0 million, which include Assore's 45,7% share of the profit on the
disposal by Assmang of its Platinum Group Metal Minerals Rights ("PGM's") on
the farm Dwarsrivier. The PGM's were disposed of by Assmang for R551 million
in May 2001 and the proceeds received in December 2001 once the conditions
precedent had been met. The profit on the disposal has been disclosed as an
exceptional item.
Sales volumes
Compared to the first half of the previous financial year manganese ore
sales remained constant at 600 000 tons, but iron ore sales increased by 22%
to 2,2 million (1,8 million) tons. Sales of ferromanganese were marginally
lower at 82 400 (85 700) tons while ferrochrome sales increased
significantly to 88 900 (44 724) tons.
Capital projects
In addition to capital expenditure to maintain operations, expenditure
was incurred on the following major projects:
- The 54 MVA furnace and 350 000 ton per annum pelletising plant at
Assmang's Machadodorp Ferrochrome works were commissioned within budget in
January 2002. The furnace which is part of a R375 million chrome expansion
plan increased production capacity from 150 000 tons to 300 000 tons of
chrome alloy per annum.
- The sinking and establishment of the R517 million shaft complex at
Assmang's Nchwaning manganese mine is on schedule and within budget. It is
anticipated that the shaft complex will be completed towards the end of 2003
and will have a capacity of about 2,0 million tons of high grade manganese
ore per annum.
Outlook
Provided commodity prices and the SA rand/US dollar exchange rates remain
relatively stable at current levels it is expected that headline earnings
for the second half should exceed those reported for the first half. US
dollar selling prices and sales volumes are not expected to vary
significantly during the remainder of the financial year.
Accounting policies
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 applied previously.
Interim dividend
An increased interim dividend of 40 cents per share compared to last
year's interim dividend of 12 cents per share has been declared which
incorporates a once-off distribution flowing from receipt of the proceeds on
disposal of the PGM's. This dividend is not reflected in the results for the
half-year as it was declared after the 31 December 2001.
As explained above the interim dividend has been determined on the basis
of attributable earnings whereas the final dividend will be based on
headline earnings for the year.
Registered office: Transfer office:
Assore House, Computershare Services Limited
15 Fricker Road 41 Fox Street
Illovo Boulevard Johannesburg 2001
Johannesburg 2196
Company secretaries
African Mining and Trust Company Limited
Directors:
Desmond Sacco (Chairman and Managing Director),
R J Carpenter (Deputy Chairman), R A Chute, C J Cory, P C Crous,
B M Hawksworth, J S de Wet. (Alternate) J W Lewis (British)
Date: 11/03/2002 04:00:00 PM Produced by the JSE SENS Department
