| Wed 3 Apr 2002, 0:00 | | Gilboa - Unaudited Interim Results For The Six Mon |
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GILBOA PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share Code: GLB ISIN No. ZAE 000010286
("Gilboa" or "the company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2001
HIGHLIGHTS
The Seacore / Gilboa Joint Venture
The Industrotech Holdings Limited Acquisition
Net Asset Value of Group Increased with R6,5 million
CONSOLIDATED BALANCE SHEET
Audited Unaudited Unaudited
30-06-2001 31-12-2001 31-12-2000
R R R
Assets
14,460,865 Non-current assets 29,762,599 15,855,232
13,396,799 Property, equipment 15,372,869 13,057,687
and vehicle
0 Goodwill 9,308,317 0
0 Intangible assets 4,257,944 0
1,064,066 Unsecured loans 823,469 2,797,545
113,395 Current assets 4,950,935 129,375
14,574,260 Total assets 34,713,534 15,984,607
Equity and
liabilities
78,871 Capital and reserves 6,648,260 2,189,802
1,900,391 Share capital 2,371,752 1,780,890
38,897,938 Share premium 49,739,230 37,943,972
0 Outside shareholders' 23,843 0
interest
3,000,000 Non-distributable 3,000,000 3,000,000
reserves
(43,719,458) Accumulated loss (48,486,565) (40,535,060)
11,382,052 Non-current 13,887,710 12,337,826
liabilities
3,113,337 Current liabilities 14,177,564 1,457,285
526,075 Short-term loans 1,948,931 190,233
0 Bank overdraft 2,302,702 0
2,426,608 Accounts payable 9,780,482 1,163,384
160,654 SA Revenue Service 145,449 103,668
14,574,260 Total equity and 34,713,534 15,984,913
liabilities
0.04 Net asset value per 3.06 1.23
share (cents)
0.04 Tangible net asset (3.16) 1.23
value per share
(cents)
CONSOLIDATED INCOME STATEMENT
Audited Unaudited Unaudited
30-06-2001 31-12-2001 31-12-2000
R R R
2,030,814 Revenue 3,863,118 1,018,508
4,377,181 Operating expenses 8,345,733 715,321
(2,346,367) Net operating loss (4,482,615) 303,187
(7,848,225) Investment in subsidiary written 0
off
(2,457,943) Goodwill written off 0 0
(871,537) Finance charges (377,367) (360,708)
(13,524,072) Loss before taxation (4,859,982) (57,521)
7,675 Taxation 0
(13,531,747) Net loss for the (4,859,982) (57,521)
period
(7.33) Loss per share for (2.24) (0.03)
the period (cents)
(3.08) Headline loss per (2.24) (0.03)
share for the period
(cents)
STATEMENT OF CHANGES IN EQUITY
Share Share Non- Distributable Total
capital premium distributable reserve
reserve
Balance 1 1,780,890 37,943,972 10,046,071 (39,736,935) 10,033,9
July 2000
Reserve on acquisition of Subsidiary (3,400,943) 3,400,943 0
transferred to distributable
reserves
Revaluation of inventory transferred (3,435,879) 3,435,879 0
to distributable reserves
Deferred tax in liquidated (2,667,192) 2,667,192 0
subsidiary transferred to
distributable reserves
Goodwill from the acquisition of 2,457,943 2,457,943
subsidiary transferred to goodwill
Gain with liquidation of subsidiary for the 45,210 45,210
period 1 July 2000 - 14 February 2001
Net loss for (13,531,747) (13,531
the year
Issue of 119,501 953,966 1,073,4
share capital
Balance 30 1,900,391 38,897,938 3,000,000 (43,719,458) 78,871
June 2001
Net loss for (4,859,982) (4,859,
the period
Issue of 471,361 10,841,292 11,312,
share capital
Outside 92,875 92,875
shareholders'
interest
Balance 31 2,371,752 49,739,230 3,000,000 (48,486,565) 6,624,4
December 2001
CONSOLIDATED CASH FLOW STATEMENT
Audited Unaudited Unaudited
30-06-2001 31-12-2001 31-12-2000
R R R
(1,421,352) Cash flows from (2,986,120) 428,442
Operating
activities
492,037 Cash flows from (14,669,094) (929,006)
Investing
activities
1,071,276 Cash flows from 15,241,167 656,805
Financing
activities
Net (decrease)/
141,961 increase in cash (2,414,047) 156,241
and cash
equivalents
Cash and cash
(30,616) equivalents at 111,345 (30,616)
beginning of period
Cash and cash
111,345 equivalents at end (2,302,702) 125,625
of period
COMMENTS
Basis of Accounting
These consolidated, unaudited interim results have been drawn up in
compliance with South African Statements of Generally Accepted Accounting
Practices and the requirements of the Companies Act.
Accounting Policies
The accounting policies as set out in the 2001 Annual Report have been
consistently applied in producing these results.
Dividend
No dividend has been proposed for this reporting period.
FINANCIAL PERFORMANCE
The net asset value of the group increased from R 78 871 to R 6 648 280 due
to the acquisitions made during the reporting period. The acquisition of
Industrotech Holdings Limited (" IHL") that occurred subsequent to the
reporting period and the further concession rights will substantially
increase the net asset value of the group over the second part of the
financial year up to 30 June 2002
OVERVIEW OF OPERATIONS
Seacore/ Gilboa Joint Venture
During the current reporting period Gilboa signed a joint venture agreement
with Seacore Limited ("Seacore"), a specialist marine engineering group from
Cornwall, in the United Kingdom. The joint venture will see Gilboa and
Seacore taking up shares in a UK registered company Seacore Mining
International Limited. (" Seacore Mining") Seacore is the developer and
patent right holder of the Seawalker self contained diamond mining walking
jack-up platform that is to be manufactured in South Africa and exclusively
used by Seacore Mining worldwide to mine for diamonds and other minerals
from sea concessions such as the Namagroen concessions and others on the
South African and Namibian west coast.
Financing and Manufacturing
Gilboa is currently in negotiations with its bankers and other groups for
the financing of the first Seawalker platform to be deployed at Barnards Bay
on the Namagroen 9a concession. Gilboa is also, as part of the financing
process, negotiating with two large international process engineering
groups, for the manufacture of the Seawalker platforms in South Africa.
PROSPECTS AND EVENTS SUBSEQUENT TO 31 DECEMBER 2001
The acquisition of Industrotech Holdings Limited
Gilboa has acquired the entire issued share capital and loan accounts of
IHL, an unlisted public company that has the exclusive and sole mining
rights to mine and extract marine diamonds from sea concessions 8a, 9a and
8b ("The Namagroen concessions") on the west coast of South Africa, for an
amount of R 3 920 000 that was settled by way of the issue of 28 000 000
ordinary Gilboa shares at 14c per share. The acquisition not only increases
Gilboa's royalty share of the diamonds extracted from the Namagroen
concessions by 15% to 85% but also allows Gilboa to appoint outside
contractors to mine these concessions. A first expert contracting group has
been appointed and negotiations with a Canadian listed group are underway to
mine these concessions. These independent contractor appointments, prior to
the deployment of the mining platforms, will result in cash generation to
Gilboa over a short term period, without any capital outlay from Gilboa.
Sampling to verify previous results
Gilboa launched a sampling exercise during February 2002 to verify previous
sampling results in the first two target areas where Gilboa plans to
commence mining activities. A first sample of 7.8 tonnes of 2-10 mm screened
diamondiferous gravel in Rooiwal Bay yielded 95 diamonds with a total mass
of 32.3 carats. The diamonds are of best gem quality, displaying near-
perfect crystal structure, and of near-best to best colour and clarity.
This first sample indicated a resource grade substantially higher than
previous assumed for the area. Previous sampling at the first two target
areas indicated a resource of 705 234 carats with a total value of $353
million, conservatively valued at $ 250 / carat.
Transfer to Main Board
Gilboa plans to utilise these Namagroen assets to qualify for a transfer to
the Mining Exploration sector on the main board of the JSE Securities
Exchange South Africa. Such a transfer should enable Gilboa to attract
institutional investors.
CONCLUSION
Gilboa is currently concentrating on:
the scientific sampling of Rooiwal Bay and Barnards Bay to verify previous
results and upgrade its diamonds to an Inferred Resource status
the appointment of experienced marine contractors to mine the diamonds from
the two target areas and generate immediate cash flow
the raising of the required finances for the first mining platform to be
deployed on the Namagroen concessions.
the appointment of a process engineering group, and possible equity partner,
to manufacture the required mining platforms
The qualification of Gilboa to transfer its listing to the Mining
Exploration sector of the main board of the JSE Securities Exchange South
Africa.
E.R. De La Pierre
Chairman
Pretoria
2 April 2002
Directors
E R De La Pierre, , J S Erasmus, .J.G. Botha* A Roos*, B J Nortier*, M J
Forster*, A M Sher*
(* Non-Executive)
Company Secretary
L de Beer
Registered Office
225 Johan Rissik Drive, Waterkloof Ridge,Pretoria
Tel : (012) 346 8468/9 Fax : (012) 346 8466
E-Mail : gilboa@lantic.net Website : www.gilboa.co.za
