| Tue 17 Sep 2002, 16:47 | | Assore Limited - Final Results For The Year Ended |
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ASSORE LIMITED - Final Results for the year ended 30 June 2002
Assore Limited:
Company registration number 1950/037394/06
Share code: ASR ISIN: ZAE000017117
Final Results for the year ended 30 June 2002
* Turnover increased by 32,1% to R1,51 billion
* Headline earnings increased by 86,8% to R252,9 million
* Strong results from Assmang
Consolidated Income Statement
Year ended Year end
30 June 30 June
2002 2001
Audited Audited
R`000 R`000
Turnover 1 514 406 1 146 082
Net operating profit 416 319 236 000
Finance costs (35 207) (35 762)
Dividends received 4 839 3 622
Net profit before taxation 385 951 203 860
Taxation (131 894) (67 265)
Net profit from ordinary
operating activities 254 057 136 595
Outside shareholders` share of
net operating (profit)/loss (381) 2 447
Net profit from ordinary activities 253 676 139 042
Exceptional item 248 278 -
Attributable earnings 501 954 139 042
Earnings per share (cents) 1 792,7 496,6
Headline earnings per share (cents)* 903,2 483,6
Dividends per share (cents) 60,0 32,0
Ordinary shares in issue (million) 28,0 28,0
Net asset value per share (rand) 47,8 29,3
Capital expenditure (million) 193,1 318,0
Capital commitments (million) 349,0 395,7
*Determination of headline earnings
Attributable earnings per
income statement 501 954 139 042
Exceptional item (248 278) -
Net profit on disposal or impairment
of other fixed assets (788) (3 636)
Headline earnings 252 888 135 406
Consolidated Balance Sheet
At At
30 June 30 June
2002 2001
Audited Audited
R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment 952 198 828 766
Intangible assets 4 752 7 294
Environmental rehabilitation
trust funds 12 829 11 021
Investments 179 051 105 494
1 148 830 952 575
Current assets
Cash resources 84 633 78 023
Other current assets 773 057 535 668
Total assets 2 006 520 1 566 266
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders` interest 1 325 020 810 781
Outside shareholders` interest 13 796 10 386
Share capital and reserves 1 338 816 821 167
Non-current liabilities
Deferred taxation 173 261 115 452
Long-term liabilities 32 032 29 579
1 544 109 966 198
Current liabilities
Non-interest bearing 109 010 121 985
Interest bearing 353 401 478 083
Total liabilities 2 006 520 1 566 266
Statement of Changes in Equity
Year ended Year end
30 June 30 June
2002 2001
Audited Audited
R`000 R`000
Share capital and
non-distributable reserves
Balance at beginning of year 52 952 26 769
Net increase in the market value
of listed investments 41 951 24 747
Deferred taxation on listed
investments (8 176) -
Foreign exchange gain transferred - (95)
Foreign currency translation reserve 3 411 1 531
Balance at end of year 90 138 52 952
Distributable reserves retained income
Balance at beginning of year 749 728 627 652
Attributable earnings 501 954 139 042
Foreign exchange gain transferred - 95
Ordinary dividend
No`s 89 and 90 aggregating 60 cents
per share
(2001: 32 cents per share) (16 800) (8 960)
Balance at end of year 1 234 882 757 829
Per balance sheet 1 325 020 810 781
Consolidated Cash Flow Statement
Year ended Year end
30 June 30 June
2002 2001
Audited Audited
R`000 R`000
Cash retained from operating
activities 100 584 142 667
Cash generated/(utilised)
in investing activities 30 495 (316 429)
Cash (utilised)/generated from
financing activities (124 469) 167 768
Increase/(decrease) in cash
for the year 6 610 (5 994)
Cash resources at beginning of year 78 023 84 017
Cash resources at end of year 84 633 78 023
Declaration of Final Dividend
Final dividend No 91 of 40 cents per share was declared on Tuesday, 17
September 2002. The last date to trade "cum" dividend in order to
participate in the dividend will be Friday, 4 October 2002. The
company`s ordinary shares will commence trading "ex" dividend from the
commencement of business on Monday, 7 October 2002 and the record date
will be Friday,11 October 2002. Share certificates may not be
dematerialised or rematerialised between Monday, 7 October 2002 and
Friday, 11 October 2002 (inclusive of both days) and the dividend is
payable on Monday, 14 October 2002.
Commentary
Results
The group`s operating profit rose by 76,4% off a 32,1% rise in
revenue, reflecting further improvement in margins. Earnings from
ordinary activities increased by 82,4% to R253,7 million and an
exceptional item amounting to an additional R248,3 million was earned as
the group`s share of the profit on the disposal of Assmang`s Dwarsrivier
PGM mineral rights during the year. This brought total attributable
income for the year to R502,0 million. Headline earnings per share grew
by 86,8% to 903,2 cents a share.
Assore`s fortunes remain closely linked to those of its principal
investments, particularly the 45,7% holding in Assmang which it controls
jointly and is partially consolidated. Assmang, which published its
final results on 6 September, had another very successful year, assisted
by the particularly favourable US dollar/SA rand exchange rate which was
a feature of much of the financial year ended 30 June 2002.
Assore received additional income from its role as sole marketing
agent for Assmang`s products. Sales of those products over the year
showed improvement in all sectors except for manganese alloys which
reported a modest decrease.
Sales Volumes
2002 2001
`000 metric tons
Iron ore 4 775 4 315
Manganese ore (excluding deliveries to
the Cato Ridge Works) 993 979
Manganese alloys 187 193
Charge chrome 190 125
Chrome ore (excluding deliveries to
Machadodorp Works) 39 -
Income from these products increased significantly in most cases as a
function of the US dollar/SA rand exchange rate over the year.
Capital Expenditure
Capital expenditure was targeted primarily at Assmang`s mines and
alloy works, comprising the following capital projects:
the new charge chrome smelter and pelletising facilities at
Machadodorp which were commissioned in January of this year.
construction of the new shaft complex at Nchwaning manganese mine
which is on schedule, within budget and planned for completion in the
second half of 2003.
Borrowings
As forecast at the time, last year`s relatively high level of interest
bearing borrowings, amounting to R478 million, have been reduced to
R353,4 million, following receipt of the proceeds on the sale of the PGM
mineral rights.
Outlook
While overall sales of the Group`s products remain fairly buoyant and
this trend appears likely to continue into the new financial year,
international and local economic conditions remain volatile. The
influence imparted by the SA Rand/US Dollar exchange rate upon the
Group`s performance should constantly be borne in mind in attempting to
forecast future prospects. Clearly, the extent of such influence depends
upon the volatility of movement in the exchange rate and that is a
matter for individual conjecture and difficult to predict with any
certainty at this stage.
Currently circumstances suggest that this will be another good year
for world-wide steel production, and both iron and manganese ore sales
should remain at about the same levels but with lower US dollar prices
than in the past year. The group`s share of manganese alloy sales is
anticipated to increase in line with the higher production planned at
the Cato Ridge works. US dollar prices have improved markedly since the
year end, but are expected to come under pressure when supply
disruptions are overcome. The improvement in the ferrochrome market
should at least be sustained and volumes could be substantially raised
by major contractual negotiations with better margins flowing from
improved utilisation of available capacity.
Dividends
An increased interim dividend of 40 cents per share was declared on 11
March 2002. This included a once-off distribution flowing from the
receipt of the proceeds on the disposal of the PGM`s which were received
in December 2001. An increased final dividend of 40 cents (2001: 20
cents) per share has been declared, based on the improved headline
earnings. The dividend has not been reflected in the results for the
year as it was declared after the reporting date of 30 June.
Accounting policies
The Group`s financial information has been extracted from the audited
Group annual financial statements, which have been prepared in
accordance with statements of Generally Accepted Accounting Practice in
South Africa and International Accounting Standards. The accounting
policies used in the preparation of the annual financial statements are
consistent with those used in the previous year.
Audited results
Ernst & Young has audited the Group annual financial statements and
their unqualified audit report is available for inspection at the
Company`s registered office.
Earnings per share
Attributable earnings per share is calculated by dividing the earnings
attributable to shareholders by the weighted average number of ordinary
shares in issue during the year.
To calculate the headline earnings per share, the attributable
earnings to shareholders is adjusted for the exceptional item and net
profit on disposal or impairment of other assets.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
Johannesburg
17 September 2002
Registered office: Transfer office:
Assore House, 15 Fricker Road Computershare Investor Services
Limited
IIlovo Boulevard 41 Fox Street
Johannesburg 2196 Johannesburg 2001
Directors:
Desmond Sacco (Chairman and Managing Director)
R J Carpenter (Deputy Chairman), C J Cory (Financial), P C Crous
(Technical),
R A Chute, B M Hawksworth, J S de Wet.
Alternate: J W Lewis (British)
Company secretaries:
African Mining and Trust Company Limited
Date: 17/09/2002 04:00:00 PM Produced by the JSE SENS Department
Assore Limited - Press Releas
ASSORE BOOSTS HEADLINE EARNINGS BY 86,8%
Mining house Assore completed another impressive financial year at 30 June
2002 with the growth in headline earnings per share rising 86,8% to 903,2 cents
compared with 38,2% at the interim stage.
This reflects a 126,0% surge in earnings growth in the second half year as the
benefits of the rand`s rapid depreciation against the US dollar during the first
half flowed through to Assore`s 45,7% holding in Assmang, which company it
jointly controls with Avmin.
Operating profit grew by 76,4% to R416,32 million on the back of a 32% rise in
revenue at R1 514,4 million. Attributable earnings from the group`s normal
activities improved by 82,4% to R253,7 million to which was added R243,3
million being Assore`s share of the R543 million profit on the sale of Assmang`s
PGM rights, giving total attributable income of R502,0 million.
Assore`s role as sole marketing agent for Assmang`s products generated further
growth for the group with sales improving in all sectors except manganese alloys
which recorded a modest decrease. Rand prices of the products showed significant
increases in most cases, in line with the rand/US dollar exchange rate.
The group`s share of capex declined to R193,1 million against the previous
year`s R318,0 million as the various projects came on stream and was targeted
primarily at Assmang`s new charge chrome smelter at Machadadorp, which was
commissioned in January 2002 and the new shaft at Nchwaning manganese mine due
for completion within schedule and budget towards the end of 2003.
The group`s balance sheet remains healthy with the net asset value per share
rising from R29,3 to R47,8 and, as expected, group borrowings showed a marked
decrease to R353,4 million, following receipt of the proceeds from the sale of
the PGM rights.
Looking ahead, Assore chairman Des Sacco remains cautious, citing the
background volatility in world affairs and consequently, in economies and
currencies. He reiterates that the relationship between the rand and the US
dollar continues to be a key arbiter to group results.
Based on current conditions, he is hopeful of another good year for world
steel output and consequently for iron and manganese ore sales although US
dollar prices have declined marginally.
He expects the group`s manganese alloy sales to rise in line with higher
production at Cato Ridge but again warns that prices may come under pressure.
"Stainless steel is looking positive with higher volumes and we are looking
towards better margins in the ferrochrome sector" says Sacco.
A 40 cents per share final dividend has been declared for a total of 80 cents
for the year. This includes a once-off distribution related to the sale of
Assmang`s Dwarsrivier PGM rights and is not directly comparable with the
previous year`s 32 cents a share.
Assore`s shares are trading at around R67,00 cents at which level the latest
headline earnings per share give a multiple of 7,4.
ends
Date: 17/09/2002 04:01:00 PM Produced by the JSE SENS Department
