| Fri 31 May 2002, 0:00 | | Otr Mining Limited - Reviewed Interim Financial |
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OTR Mining Limited - Reviewed Interim Financial Statements For The Six
Months Ended 28 February 2002 And Further Cautionary Announcement
OTR Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/006508/06)
JSE Share code: OTR ISIN: ZAE000025839
JSE Share code: OTRO ISIN: ZAE000033056
("OTR" or "the company")
REVIEWED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED
28 FEBRUARY 2002 AND FURTHER CAUTIONARY ANNOUNCEMENT
INCOME STATEMENTS
Reviewed Audited
Six months 18 months
ended ended
28 February 31 August
2002 2001
R`000 R`000
REVENUE 124 409
Operating costs 1 079 5 498
Operating loss (955) (5 089)
Depreciation (351) (1 467)
Amortisation of goodwill (617) (3 086)
Provision for diminution of goodwill (27 153) -
Investment income 4 211
Finance costs (2) (242)
Loss for period (29 074) (9 673)
Issued ordinary shares 52 764 586 52 764 586
Weighted number of shares issued 52 764 586 41 764 586
Share options 41 764 586 27 843 057
Loss per share (cents) (55,1) (23,2)
Fully diluted loss per share (cents) (30,8) (13,9)
Headline earnings reconciliation:
Loss for period (29 074) (9 673)
Add: goodwill amortisation 617 3 086
Provision for diminution of goodwill 27 153
Headline earnings (1 304) (6 587)
Headline loss per share (cents) (2,5) (15,8)
Fully diluted headline loss
per share (cents) (1,4) (9,5)
CASH FLOW STATEMENT
Reviewed Audited
Six months 18 months
ended ended
28 February 31 August
2002 2001
R`000 R`000
Cash flows from operating activities
Net cash from operating activities (978) (6 009)
Cash receipts from customers 159 556
Cash paid to suppliers and employees (1 139) (6 534)
Cash utilised in operating activities (980) (5 978)
Interest received 4 211
Interest paid (2) (242)
Cash flows from investing activities
Net cash used in investing activities 90 (31 654)
Expenditure to maintain
operating capacity 90 (188)
Purchase of fixed assets - (384)
Proceeds on disposal of fixed assets 90 196
Expenditure for expansion - (31 466)
Purchase of goodwill - (30 856)
Loans advanced - (610)
Cash flows from financing activities
Net cash generated by
financing activities 355 38 392
Capital raised - 39 030
Loans raised/(repaid) 355 (638)
Decrease/(increase) in cash and
cash equivalents (533) 729
Cash and cash equivalents at
beginning of period 621 (108)
Cash and cash equivalents at
end of period 88 621
BALANCE SHEETS
Reviewed at Audited at
28 February 31 August
2002 2001
R`000 R`000
ASSETS
Non-current assets 2 948 31 069
Fixed assets 2 338 2 689
Investment in subsidiaries - -
Loan (see note below) 610 610
Goodwill - 27 770
Current assets 156 724
Accounts receivable 68 103
Cash and bank balances 88 621
Total assets 3 104 31 793
Equity and liabilities
Capital and reserves 1 899 30 973
Share capital and premium 58 375 58 375
Accumulated loss (56 476) (27 402)
Current liabilities 1 205 820
Accounts payable 850 820
Other 355 -
Total equity and liabilities 3 104 31 793
Net asset value per share (cents) 3,6 58,7
Net tangible asset value
per share (cents) 3,6 6,1
Note:
Correction of a fundamental error relating to a loan to
G B Mining S.A. (Pty) Limited which was incorrectly debited to lease
rental.
The audited financial statements to 31 August 2001 have been restated
accordingly.
STATEMENT OF CHANGES IN EQUITY
for the period ended 28 february 2002
Accu-
Share Share mulated
capital premium loss Total
R`000 R`000 R`000 R`000
Balance at
1 March 2000 1 19 344 (17 729) 1 616
Net loss for period
as originalyly reported (10 283) (10 283)
Coorrection of
Fundamental error 610 610
Net loss for the period
After the correction (9 673) (9 673)
Issue of share capital 2 39 028 39 030
Balance at
1 September 2001 3 58 372 (27 402) 30 973
Net loss for period (29 074) (29 074)
Balance at
28 February 2002 3 58 372 (56 476) 1 899
Report of the independent auditors on the interim results
We have reviewed the interim balance sheet, income statement and cash
flow information of OTR for the six months ended 28 February 2002. The
interim financial information is the responsibility of the company`s
directors. Our responsibility is to report on the results of our review.
Scope
Our review was carried out in accordance with the guidelines laid down by
the South African Institute of Chartered Accountants. Our review consisted
principally of applying analytical procedures to the underlying financial
data and making enquiries of company personnel responsible for financial and
accounting matters.
The review excluded audit procedures, such as the test of controls and
verification of assets and liabilities and was, therefore, substantially
more limited in scope than an audit where an audit opinion is expressed,
performed in accordance with Statements of South African Auditing Standards.
It should be recognised that our review did not constitute an audit and may
not have necessarily revealed all material facts.
Based on our review, nothing has come to our attention that caused us to
believe that this interim financial information needs modification so as to
fairly present, in accordance with Generally Accepted Accounting Practice,
the financial position of the company at 28 February 2002 and the results of
its operations and cash flow information for the six months then ended.
Going Concern
Without qualifying our opinion, we draw attention to the fact that the
statements have been prepared on the basis of accounting principles
applicable to a going concern. This basis presumes that funds will be
available to finance future operations and that the realisation of assets
and settlement of liabilities, contingent obligations and commitments will
occur in the ordinary course of business. The company`s ability to continue
as a going concern is dependent on the resumption of future profitable
operations and the continuation of existing levels of finance by major
creditors and financiers, until the company is able to meet its obligations
in the ordinary course of business. Accordingly, the financial statements do
not include any adjustments relating to the recoverability and
classification of assets or to the amount and classification of liabilities
that might be necessary if the company is unable to continue as a going
concern.
REVIEW OF OPERATIONS AND COMMENTS
1. In order for OTR to continue operations as a going concern, a rescue plan
offer by GB Mining S.A. (Pty) Limited is in the process of being negotiated
by the directors and is the subject of the further cautionary announcement
referred to below. This rescue plan offer is to be approved by the JSE
Securities Exchange South Africa and by shareholders at a general meeting to
be held for that purpose. The prospects for the company are accordingly
dependant on the successful outcome of these discussions.
2. The first phase of the exploration drilling on Palmietfontein has been
completed, however, more drilling is required. As OTR is currently unable to
proceed with further exploration due to the lack of capital, the directors
have considered it appropriate to provide fully for the goodwill pertaining
to Palmietfontein in these interim results.
3. The OTR options were extended by two years and the strike price reduced
from 100 cents to 50 cents at a general meeting held on 21 August 2001.
4. Operations in the Klein Letaba area are on a care and maintenance
programme and agreement for the sale of these assets is being finalised.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the renewal of cautionary announcement dated 15 April 2002, a
further announcement regarding the finalisation of the discussions referred
to above will be published as soon as possible. OTR shareholders and option
holders are accordingly advised to continue exercising caution in dealing in
their OTR shares and options until a further announcement is made.
DIVIDEND
No dividend is recommended by the directors.
For and on behalf of the board
RA Holding
31 May 2002
Board of Directors:
R A Holding, A Gardner*, G J de Decker, R van Zanten
*British
Registered address and Transfer secretaries:
Computershare Investor Services Limited
Edura House, 41 Fox Street, Johannesburg 2001.
PO Box 61051, Marshalltown 2107
