| Mon 16 Sep 2002, 9:08 | | Metorex Limited - Consolidated Results For The Fin |
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Metorex Limited - Consolidated results for the financial year ended 30 June 2002
Metorex Limited
Registration number 1934/005478/06
Incorporated in the Republic of South Africa
Listed on the JSE Securities Exchange South Africa and London Stock Exchange
JSE alpha code MTX ISIN ZAE000022745
Issuer code MEMTX
www.metorexgroup.com
* Earnings resilience through multi-commodity operations
* Headline earnings of 72,8 cents
* Antimony price doubles
* Fluorspar plant and deposit a world leader
* Final 10 cent dividend declared
Consolidated results for the financial year ended 30 June 2002
Consolidated income statement
Year ended Year ended
30 June 2002 30 June 2001
(Reviewed) (Audited)
R000 R000
Revenue:
Mineral sales
Copper 328 217 284 435
Zinc 105 774 98 415
Coal 122 928 116 685
Fluorspar 119 746 82 846
Gold 80 291 76 181
Antimony 41 370 33 416
Cobalt 15 558 20 723
Other 6 441 7 557
Gross revenue 820 325 720 258
Realisation costs 127 898 106 460
On-mine revenue 692 427 613 798
Cost of production 549 023 472 563
Depreciation 30 397 25 198
Mining profit 113 007 116 037
Other income/(expenditure) 4 494 (1 254)
Income before exceptional items and finance costs 117 501 114 783
Finance income 5 539 5 670
Finance costs (12 010) (4 155)
Income before exceptional items 111 030 116 298
Exceptional items (132 702) 87
(Loss)/Income before taxation (21 672) 116 385
Taxation - Exceptional items 20 334 -
Taxation - other (13 648) (24 675)
(Loss)/Income after taxation (14 986) 91 710
Income attributable to outside shareholders 8 088 3 128
(Loss)/Income attributable to ordinary shareholders (23 074) 88 582
Earnings per share (cents) (18,6) 73,5
Headline earnings per share (cents) 72,8 72,4
Diluted earnings per share (cents) (18,6) 70,8
Diluted headline earnings per share (cents) 72,8 69,8
Dividend per share (cents) 12,0 18,0
Proposed dividend per share (cents) 10,0 12,0
Earnings per share and headline earnings per share
are calculated using the following:
Income attributable to ordinary shareholders (23 074) 88 582
Exceptional items net of tax 112 368 (87)
Exceptional items 132 702 (87)
Tax effect on exceptional items (20 334) -
Goodwill amortisation 3 662 981
Profit on sale of assets (3 720) (3 179)
Tax effect on sale of assets 1 116 954
Headline earnings (R`000) 90 352 87 251
Weighted average number of shares in issue (000`s) 124 140 120 584
Number of shares in issue at year end (000`s) 138 970 120 730
Statement of change in equity
Year ended Year ended
30 June 2002 30 June 2001
(Reviewed) (Audited)
R000 R000
Share capital 13 897 12 073
- Balance at start of year 12 073 12 043
- Issue of new shares 1 824 30
Share premium 369 186 313 578
- Balance at start of year 313 578 312 822
- Issue of new shares 56 472 756
- Share issue expenses (864) -
Reverse acquisition reserve (128 066) (128 066)
Foreign exchange translation reserve 11 304 (4 903)
- Balance at start of year (4 903) (6 833)
- Foreign exchange reserve (18 309) (14 561)
- Translation gain on foreign monetary item 42 230 23 558
- Tax effect of translation gain on
foreign monetary item (7 714) (7 067)
Hedging reserve (380) -
- Balance at start of year - -
- Change in accounting policy 718 -
- Restated hedging reserve 718 -
- Fair value losses for year (10 227) -
- Transferred to income statement 9 129 -
Retained income 125 175 162 746
- Balance at start of year 162 746 95 848
- Net (loss)/income for year (23 074) 88 582
- Dividends distributed (14 497) (21 684)
Total equity 391 116 355 428
Consolidated balance sheet
30 June 2002 30 June 2001
(Reviewed) (Audited)
R000 R000
ASSETS
Non-current assets
Property, plant and equipment 239 346 220 039
Mineral rights 240 665 202 687
Goodwill 25 633 80 661
Investments 891 891
Deferred tax asset 8 031 -
514 566 504 278
Current assets
Inventories 70 858 46 178
Trade and other receivables 110 809 120 370
Taxation prepaid 6 314 605
Bank balances and cash 104 622 95 416
292 603 262 569
Total assets 807 169 766 847
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 383 083 325 651
Hedging and translation reserve 10 924 (4 903)
Retained income 125 175 162 746
Reverse acquistion reserve (128 066) (128 066)
391 116 355 428
Minority interest 16 490 14 611
Non-current liabilities
Long-term liabilities - Interest bearing 84 907 68 181
Long-term provisions 48 434 52 349
Deferred tax liabilities 71 283 72 089
204 624 192 619
Current liabilities
Trade and other payables 102 224 134 435
Derivative instruments 380 -
Short-term borrowings - interest bearing 57 734 28 667
Short-term provisions 14 517 20 326
Bank overdraft 9 353 7 230
Taxation 10 731 13 531
194 939 204 189
Total equity and liabilities 807 169 766 847
Net asset value per share (cents) 281 294
Net tangible asset value per share (cents) 263 228
Consolidated cash flow statement
Year ended Year ended
30 June 2002 30 June 2001
(Reviewed) (Audited)
R000 R000
Cash generated before working capital changes 145 147 137 737
Working capital changes (62 730) 16 090
Cash generated by operations 82 417 153 827
Dividends received 47 46
Dividends paid (20 706) (24 204)
Taxation paid (33 793) (15 391)
Finance costs (6 471) 1 515
Cash inflows from operating activities 21 494 115 793
Cash outflows from investing activities (94 061) (151 966)
Cash inflows from financing activities 79 161 78 356
Net increase in cash and cash equivalents 6 594 42 183
Cash at beginning of year 88 186 44 725
Effect of foreign exchange rate changes 489 1 278
Cash at end of year 95 269 88 186
Segmental Segmental
Revenue mining profit
2002 2002
Copper 40% 48%
Flourspar 15% 37%
Zinc 13% 11%
Antimony/Gold 15% 10%
Coal 15% (6%)
Cobalt 2% 0%
100% 100%
FINANCIAL RESULTS
The financial performance of the group for the year has demonstrated its
resilience in conditions made challenging by both internal and external factors.
Internally, the difficult decision to place Chibuluma South on a care and
maintenance plan necessitated an after tax impairment charge of R112 million,
which impacted severely on the income statement. Externally, commodity prices
and demand for industrial minerals came under pressure following the events of
September, 11. Within this environment, O`Okiep, Vergenoeg, Maranda and
Consolidated Murchison performed exceptionally, while Wakefield and Chibuluma
West were more affected. Group headline earnings were favourably affected by
deferred tax releases brought about by a change in the Zambian corporate tax
rate and the reversal of previous tax charges on unrealised foreign exchange
gains considered necessary after having taken professional advice.
Group revenue from mineral sales increased by 14% year-on-year and mining profit
was maintained. This demonstrates the value of the group`s multi-commodity
structure and its US Dollar denominated sales base. Profit before depreciation
was R143 million for the year compared to R141 million the previous year.
The increase of 21% in the depreciation charge for the year is largely due to
plant and equipment brought into use at the Chibuluma West operation.
FUTURE PROSPECTS
The South African mining industry is in a time of great change which could
bring exciting opportunities and your company is well positioned to benefit from
these changes. The group is engaged in discussions with a number of prospective
empowerment partners as an addition to the existing partnership with Umnotho
weSizwe in our coal interests. Such discussions contemplate joint venture
arrangements in undertaking new projects for the Metorex group.
CAPITAL EXPENDITURE AND COMMITMENTS
Group capital expenditure for the year totalled R98,6 million (2001: R155
million) which mainly related to the slag dump project at O`Okiep, plant
improvements at Vergenoeg, the acquisition of mineral rights at Wakefield and
pre-production expenditure on the Chibuluma South project.
Contracted capital commitments at 30 June 2002 amount to R1 million (2001: R32
million), whilst uncontracted commitments amount to R5 million (2001: R15
million).
Operating lease commitments which fall due within one year amount to R2,3
million (2001: R2,5 million), whilst commitments of R2,4 million (2001: R4,2
million) fall due in year two to five.
SHARES ISSUED
On 24 April 2002, Metorex issued 18,1 million new ordinary shares at a price
of 320 cents per share to selected institutions, raising R57,9 million. This
issue of shares for cash was over subscribed.
AUDIT REVIEW
Deloitte & Touche, the company`s auditors, have reviewed the financial
results. A copy of their unqualified report is available for inspection at the
company`s registered office.
ACCOUNTING POLICIES
The financial statements have been prepared on the historical cost basis in
accordance with International Accounting Standards. The accounting policies are
consistent with those adopted in the previous year, except for the following
change in accounting policy:
During the year, the group adopted IAS 39 with regard to the recognition and
measurement of financial instruments for the first time. The change in policy
has resulted in an adjustment of R0,7 million to the hedging reserve balance as
at 1 July 2001, and a movement in the hedging reserve for the year of R1,1
million.
SAFETY
It is with regret that the Group reports the death of an employee who was
involved in an underground accident at Maranda, however, the other operations
produced commendable safety statistics and thanks are extended to all staff for
their contribution to this record. Management is firmly committed to the
eradication of all risks that threaten the health and safety of employees.
A S MALONE C D S NEEDHAM
Chairman Financial Director
DECLARATION OF DIVIDEND
Notice is hereby given that a final dividend referenced No. 005 of 10 (ten)
cents per share has been declared in respect of the period ended 30 June 2002.
The dividend, which is declared in the currency of the Republic of South Africa,
will be paid on 14 October 2002.
The last day to trade in the company`s shares for purposes of entitlement to
the dividend is Friday, 4 October 2002. The shares will commence trading ex-
dividend on Monday, 7 October 2002 and the record date is Friday, 11 October
2002. Share certificates may not be dematerialised or rematerialised from
Monday, 7 October 2002 to Friday, 11 October 2002, both days inclusive.
By order of the board
16 September 2002
Secretaries: Transfer Secretaries:
Meyer Wilson Marsh Inc Computershare Investor Services Limited
7 West Street 11 Diagonal Street
Houghton Johannesburg
2198 2001
Date: 16/09/2002 07:05:00 AM Produced by the JSE SENS Department
