| Wed 28 Aug 2002, 0:00 | | President Steyn Gold Mines Ltd-Unaudited Results f |
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PRESIDENT STEYN GOLD MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/014461/06)
Share code: PGD ISIN: ZAE000026654
Unaudited Interim Results for the six months ended 30 June 2002
Group Income Statement
6 months 12 months
to June to Dec
2002 2001
Notes R000 R000
Sales 48 145 429 280
Operating costs (32 509) (359 909)
Operating profit note 1 15 636 69 371
Depreciation: property, plant,equipment (1 584) (18 451)
Amortisation: goodwill (773) (9 277)
Corporate expenditure (1 432) (2 890)
Net profit on disposal of subsidiaries note 2 143 615 -
Net profit on disposal of debentures note 3 13 740 -
Net interest received/(paid) 3 947 (7 208)
Profit before tax 173 149 31 545
Taxation note 4 (8 290) (6 238)
Net profit note 4 164 859 25 307
Dividend note 5 (75 507) -
Retained profit 89 352 25 307
Weighted average shares in issue 000 503 380 503 380
Attributable earnings per share cents 32,8 5,0
Less: Net profit on disposal of subsidiaries (28,5) -
Net profit on disposal of debentures (2,7) -
Amortisation: goodwill 0,2 -
Headline earnings per share ("EPS") 1,6 6,9
Less: Discontinued operations (2,3) -
Add: Secondary Tax on Companies 1,0 -
Headline EPS excluding discontinued operations 0,4 6,9
Group Balance Sheet
30 Jun 31 Dec
2002 2001
Notes R000 R000
ASSETS
NON-CURRENT ASSETS
Mining assets - 175 976
Property, plant and equipment 45 9 007
Goodwill - 166 985
Debentures notes2&3 37 904 -
Royalty capitalised notes2&6 39 265 -
CURRENT ASSETS
Inventories - 46 150
Trade and other receivables note 3 34 620 13 961
Cash and cash equivalents 81 964 8 222
Total assets 193 798 420 301
EQUITY AND LIABILITIES
SHAREHOLDERS` EQUITY 110 513 298 020
NON-CURRENT LIABILITIES - 65 493
CURRENT LIABILITIES
Shareholders for dividend declared note 5 75 507 -
Trade and other payables 1 740 56 778
Taxation 6 038 10
Total equity and liabilities 193 798 420 301
Shares in issue 000 503 380 503 380
Net asset value per share cents 22,0 59,2
Statement of Changes in Equity
30 Jun 31 Dec
2002 2001
Note R000 R000
Balance at the beginning of the period 298 020 272 713
Share premium distribution note 7 (276 859)
Retained income for the period 89 352 25 307
Total group equity 110 513 298 020
Represented by:
Share capital 5 034 5 034
Share premium - 235 591
Non-distributable reserve 1 138 1 138
Retained income 104 341 56 257
Total group equity 110 513 298 020
Group Cash Flow Statement
6 months 12 months
to June to Dec
2002 2001
R000 R000
Cash flow from operating activities 53 214 67 945
Cash flow from operations 5 543 75 523
Dividend received 34 111 -
Commitment fee received 3 936 -
Net interest received/(paid) 3 947 (7 208)
Royalty received 5 735 -
Normal taxation paid (58) (370)
Cash flow from investing activities 320 695 (25 415)
Net acquisition of mining assets, plant and equipment (1 358) (24 372)
Contributions to environmental rehabilitation trust fund (85) (1 043)
Proceeds from sale of subsidiaries 322 138 -
Cash flow from financing activities (279 585) (13 813)
Repayment of loans (2 726) (13 813)
Share premium distribution to shareholders (276 859) -
Net increase in cash and cash equivalents 94 324 28 717
Cash included in the disposal of subsidiaries (20 582) -
Cash and cash equivalents at beginning of the period 8 222 (20 495)
Cash and cash equivalents at end of the period 81 964 8 222
Notes to the Financial Statements
1. Operating profit
Results for the period include one month`s operating results of the gold
mining subsidiaries, which were sold on 1 February 2002.
2. Disposal of subsidiaries
2.1 Net profit on disposal per income statement R000
Profit on disposal of subsidiaries 67 918
Expenses relating to disposal (7 350)
Capitalisation of royalties 45 000
Dividend received 34 111
Commitment fee received 3 936
143 615
2.2 Disposal consideration on sale of gold mining subsidiaries
At a general meeting of shareholders on 15 January 2002, the disposal of the
company`s gold mining subsidiaries, being Mindserv (Pty) Ltd, President Steyn
(Free State) (Pty) Ltd ("PSFS") and TM Training Initiative (Pty) Ltd was
approved.
The disposal consideration was received on 15 February 2002 and is made up as
follows:
US$000 R000
Cash 27 550 321 316
Debentures 4 500 52 484
Commitment fee received 338 3 936
32 388 377 736
4 500 debentures at US$1 000 each were issued at a coupon rate of 10% and can be
convertible at any time by the company into ordinary shares of Thistle Mining
Incorporated at the lower of market value or 25 Canadian cents per Thistle
share.
In addition to the above consideration, a monthly royalty of US$8 per ounce of
gold produced by PSFS is receivable from 1 February 2002 to
31 January 2007.
The agreement for the disposal further included the declaration of a cash
dividend from PSFS to the company as at 31 January 2002. The dividend, amounting
to R34 111 000 was received on 4 June 2002.
2.3 Disposal of Q-Tech
Directors approved the disposal of Quality Enhancement Technology (Pty) Ltd,
with effect from 1 January 2002 at book value, for a cash consideration of R822
000. The business of this subsidiary did not support the overall strategy of the
company, whilst the loss situation in this business necessitated corrective
action.
3. Debentures
1 250 debentures of US$1 000 each, were sold for a gross consideration of
US$2 850 000 in June 2002. The amount is included in receivables at balance
sheet date and the cash was received on
16 August 2002. The market value of the remaining 3 250 debentures at end July
2002, based on the conversion rights to Thistle shares, was R56 000 000.
4. Net profit for the period and taxation
The net profit for the period includes net income of R11 430 000 from the
gold mining subsidiaries which were sold on 1 February 2002. Taxation includes
tax on dividend declared (STC) of R5 175 000.
5. Dividend
The Board declared a dividend of 15 cents per share, which was paid on 29
July 2002.
6. Royalty capitalised
R000
Directors` valuation of net present value
of a monthly royalty receivable: 45 000
Less: amounts received since February 2002 5 735
39 265
No provision for taxation has been made on royalties received, as the
directors are of the opinion that the receipts are of a capital nature and
therefore not subject to normal taxation.
7. Share premium distribution
Shareholders approved a reduction in the holding company`s share premium
account of R276 859 000 on 15 January 2002. This represented a payment of 55
cents per share to shareholders, which was made on 4 March 2002. The balance in
the holding company`s share premium account at end June 2002 was R34 837 000.
8. Events after balance sheet date
8.1 Directors approved a further share premium distribution of 6,5 cents per
share on 20 August 2002, which amounts to R32 719 700. Details of this
transaction are shown in the announcement to shareholders which are made on the
same date as this report.
8.2 At the company`s annual general meeting held on 30 July 2002, directors were
authorised to dispose of the debentures and the royalty, at acceptable
commercial terms, if such opportunities arise.
9. Preparation of Financial Statements
9.1 The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice.
9.2 The accounting policies applied are consistant with those applied in the
previous financial period.
9.3 Comparatives for the six months to June 2001 are not shown as this
information is not considered meaningful.
Johannesburg
28 August 2002
Transfer secretaries:
Computershare Investor Services Limited,
7th Floor, 11 Diagonal Street, Johannesburg
Registered office:
7 Main Reef Road, Germiston.
PO Box 915, Bedfordview 2008
Directors:
J S van der Merwe, C R de Wet, F N Lotz, D L Parodi
www.psgold.co.za
Date: 28/08/2002 07:10:00 AM Produced by the JSE SENS Department
