| Tue 5 Nov 2002, 18:14 | | Aflease - Unaudited Consolidated Financial Results |
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Aflease - Unaudited Consolidated Financial Results for the Quarter Ended 30th
September 2002
The Afrikander Lease Limited
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
Share Code: AFL (JSE) AFKDY (NASDAQ)
ISIN Code: ZAE000000253
("Aflease" or "AFL" or "the company")
Unaudited Consolidated Financial Results for the Quarter Ended 30th September
2002
GENERAL HIGHLIGHTS
1 The board of Aflease is pleased to announce the successful placing of 20,5
million AFL shares at R6,50 and the receipt of R133 000 000,00 from Jipangu
(Tokyo) as part of the AFL 2002 CIL upgrade plan.
2 The board of Aflease is pleased to announce the completion of the conceptual
design of the new 200 000 tpm CIL plant which construction contract was signed
in September 2002 for completion and commissioning in April 2003.
3 The board of Aflease is pleased to announce that the company has discharged
its responsibility in terms of the Minerals & Energy bill to make available to
an approved empowerment company 26% of the company`s shareholding so fulfilling
all Aflease`s responsibilities in terms of the bill.
4 The board of Aflease is pleased to announce the successful negotiation and
consequential acquisition of 92% of the ownership of the East Rand Mines (I)
Modder East, (II) UC Prospecting, (III) Turnbridge and (IV) New Kleinfontein
Mines, collectively known as New Kleinfontein Mining Company Limited (NKMC) on
the 31st October 2002. Further details are presented below.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
1 The profit before tax increased by 46% from R4,8 million (Q2, 2002) to R7,0
million (Q3, 2002).
2 The gold produced and sold for the quarter increased by 39% from 255 kilograms
(Q2 2002) to 355 kilograms (Q3 2002).
3 The value of the gold lock- up on Pads 1 & 2 was independently tested and
found to be 27% more than the balance sheet carry value of 409 kgs. This recent
drilling and laboratory evaluation was completed in accordance with the SAMREC
code by the independent consultancy Afritech and the independent laboratories
Lakefield Research. As a consequence to this increase and further to the
cautionary comments in Q1 2002, and Q2 2002 quarterly results, the management of
AFL do not anticipate a write down of the heap leach inventory.
OPERATIONAL CHALLENGES
1 The average Rand gold price for the quarter decreased by 0.8% from R103,753/kg
(Q2, 2002) to R104,617/kg (Q3, 2002).
2 The percolation rates on Pad 3 experienced in quarter 3 are on average 27%
lower than budgeted which reduction in percolation is related to the finer
crushed harder sulphide material. The ongoing concern relating to percolation
rates will be resolved with the commissioning of the new 200 000 tpm CIL plant
in April 2003.
3 The tons stacked and leached for the quarter decreased marginally by 8,7% from
495,298 tons (Q2, 2002 to 452,376 tons (Q3, 2002).
OUTLOOK
1 The 2002 CIL UPGRADE PLAN has been implemented and is scheduled to be
commissioned in the second quarter of 2003.
2 The implementation of the 2002 plan includes numerous improved operational
parameters which will result in a 300% increase in gold production by Q2, 2003.
3 The underground mining development and exploration of Bonanza has commenced
and is proceeding to schedule and on budget.
4 The upgrading of the ADR from level 1 to level 2 on the New York Stock
Exchange has commenced and should be completed by Q1 2003.
5 The successful negotiations with Jipangu will make The Afrikander Lease Ltd
shares indirectly accessible on the Tokyo Stock Exchange, which will have a
positive influence on the share.
6 Conclusion of the ongoing metallurgical test work undertaken by
Metallurgical & Design Management (Pty) Ltd (MDM) in conjunction with Lakefield
Research Africa (Pty) Ltd confirm that recoveries of 94% in the CIL plant are
anticipated.
QUARTER QUARTER QUARTER YEAR
TO TO TO TO
30 SEP 30 JUN 30 SEP 31 DEC
2002 2002 2001 2001
HIGHLIGHTS:-
GOLD PRODUCED AND SOLD:
-KILOGRAMS 355 255 315 1206
-OUNCES 11,414 8,198 10,127 38,774
CASH OPERATING COST STACKED
(RANDS PER TON) 57.00 37.03 46.36 41.63
CASH OPERATING COST:-
-RAND / KG 72,639 71,933 50,340 50,709
-$ / OZ 219 218 185 184
CASH OPERATING PROFIT (R`000) 11,352 8,114 8,103 29,320
NET EARNINGS (R`000) 7,044 4,821 4,565 16,057
HEADLINE AND BASIC EARNINGS
PER SHARE (CENTS) 4.79 3.46 3.77 13.05
OPERATING RESULTS:-
TONNAGE STACKED (TONS) 452,376 495,298 342,062 1,468,857
GOLD PRODUCED AND SOLD (KG) 355 255 315 1206
AVERAGE GRADE STACKED (GMS/TON) 0.92 1.23 1.20 1.26
GOLD PRICE RECEIVED:-
-RAND / KG 104,617 103,753 76,063 75,021
-RAND / OZ 3,254 3,227 2,366 2,333
-$ / OZ 315 315 276 270
QUARTER QUARTER QUARTER YEAR
TO TO TO TO
30 SEP 30 JUN 30 SEP 31 DEC
2002 2002 2001 2001
R`000 R`000 R`000 R`000
INCOME STATEMENT:-
REVENUE 37,139 26,457 23,960 90,475
CASH OPERATING COSTS 28,842 26,471 17,300 72,921
CASH MOVEMENT IN LOCK-UP (3,055) (8,128) (1,443) (11,766)
CASH OPERATING PROFIT 11,352 8,114 8,103 29,320
AMORTISATION 2,565 2,487 1,858 7,551
NON-CASH MOVEMENT IN LOCK-UP (5) (961) (74) (837)
NET FINANCE COSTS 818 934 986 3,193
CORPORATE COSTS / OTHER 367 363 151 783
EXPLORATION EXPENDITURE 563 470 617 2,573
PROFIT BEFORE TAXATION 7,044 4,821 4,565 16,057
TAXATION 0 0 0 0
NET PROFIT FOR THE YEAR 7,044 4,821 4,565 16,057
RATIOS:-
EARNINGS PER SHARE (CENTS):-
-CASH OPERATING EARNINGS 7.71 5.82 6.69 23.83
-HEADLINE AND BASIC 4.79 3.46 3.77 13.05
-FULLY DILUTED 4.69 3.37 3.66 12.68
WEIGHTED AVERAGE NUMBER
OF ORDINARY
SHARES IN ISSUE 147,150,863 139,473,901 121,096,781 123,029,857
THE FULLY DILUTED EARNINGS PER SHARE IS BASED UPON THE DILUTIVE EFFECT OF
EMPLOYEE SHARE OPTIONS.
30 SEP 30 JUN 30 SEP 31 DEC
2002 2002 2001 2001
R`000 R`000 R`000 R`000
ABRIDGED BALANCE SHEET:-
ASSETS
NON-CURRENT ASSETS:-
-MINING ASSETS 191,501 118,363 97,586 115,548
-OTHER ASSETS 20,739 3,351 1,745 1,923
-INVESTMENTS 9,575 9,216 7,687 8,379
221,815 130,930 107,018 125,850
CURRENT ASSETS:-
-INVENTORY 37,104 49,225 29,469 33,376
-RECEIVABLES AND
PREPAYMENTS 15,098 12,321 6,732 10,484
-AMOUNT OWING
BY RELATED THIRD PARTIES 0 0 0 114
-BANK AND CASH
BALANCES 49,906 19,738 2,179 17,940
102,108 81,284 38,380 61,914
TOTAL ASSETS 323,923 212,214 145,398 187,764
EQUITY AND LIABILITIES
CAPITAL AND RESERVES:-
-ORDINARY
SHARE CAPITAL 3,017 2,829 2,460 2,755
-SHARE PREMIUM 175,744 130,481 95,627 118,763
-ACCUMULATED
EARNINGS 25,310 18,266 5,186 8,970
204,071 151,576 103,273 130,488
NON-CURRENT LIABILITIES:-
-INTEREST
BEARING BORROWINGS 20,178 21,554 20,289 23,877
-REHABILITATION
AND CLOSURE COST
OBLIGATIONS 4,500 4,500 4,500 4,500
-AMOUNT OWING
TO RELATED THIRD PARTIES 2,022 3,094 1,579 4,056
26,700 29,148 26,368 32,433
CURRENT LIABILITIES:-
-TRADE AND
OTHER PAYABLES 18,156 19,713 9,700 13,024
-PROVISIONS 1,279 1,096 1,016 604
-CREDITOR IN
LIEU OF SHARES 66,279 0 0 0
-CURRENT PORTION
OF INTEREST BEARING
BORROWINGS 5,290 4,942 2,931 5,217
-BANK OVERDRAFT
BALANCES 2,148 5,739 2,110 5,998
93,152 31,490 15,757 24,843
TOTAL EQUITY AND
LIABILITIES 323,923 212,214 145,398 187,764
QTR TO QTR TO QTR TO YEAR TO
30 SEP 30 JUN 30 SEP 31 DEC
2002 2002 2001 2001
R`000 R`000 R`000 R`000
ABRIDGED CASH FLOW STATEMENT:-
CASH FLOW GENERATED
FROM / (UTILISED BY):-
OPERATING ACTIVITIES 83,858 (91) (1,186) 4,266
INVESTING ACTIVITIES (93,450) (4,814) (1,480) (15,992)
FINANCING ACTIVITIES 43,351 10,636 3,464 26,614
NET INCREASE IN CASH
AND CASH EQUIVALENTS 33,759 5,731 798 14,888
CASH & CASH EQUIVALENTS
AT BEGINNING OF PERIOD 13,999 8,268 (729) (2,946)
CASH & CASH EQUIVALENTS
AT END OF PERIOD 47,758 13,999 69 11,942
SHARE SHARE ACCUM TOTAL
CAPITAL PREMIUM PROFIT EQUITY
STATEMENT OF CHANGES IN EQUITY:-
BALANCE AT 3OTH JUNE 2001 2,390 90,797 621 93,808
ISSUED DURING THE PERIOD 70 0 0 70
SHARE PREMIUM 0 4,830 0 4,830
NET PROFIT FOR THE PERIOD 0 0 4,565 4,565
BALANCE AT 3OTH SEPTEMBER 2001 2,460 95,627 5,186 103,273
ISSUED DURING THE PERIOD 295 0 0 295
SHARE PREMIUM 0 23,136 0 23,136
NET PROFIT FOR THE PERIOD 0 0 3,784 3,784
BALANCE AT 31ST DECEMBER 2001 2,755 118,763 8,970 130,488
ISSUED DURING THE PERIOD 0 0 0 0
SHARE PREMIUM 0 0 0 0
NET PROFIT FOR THE PERIOD 0 0 4,475 4,475
BALANCE AT 31ST MARCH 2002 2,755 118,763 13,445 134,963
ISSUED DURING THE PERIOD 74 0 0 74
SHARE PREMIUM 0 11,718 0 11,718
NET PROFIT FOR THE PERIOD 0 0 4,821 4,821
BALANCE AT 3OTH JUNE 2002 2,829 130,481 18,266 151,576
ISSUED DURING THE PERIOD 188 0 0 188
SHARE PREMIUM 0 45,263 0 45,263
NET PROFIT FOR THE PERIOD 0 0 7,044 7,044
BALANCE AT 3OTH SEPTEMBER 2002 3,017 175,744 25,310 204,071
QTR QTR QTR YEAR
ENDED ENDED ENDED ENDED
30 SEP 30 JUN 30 SEP 31 DEC
2002 2002 2001 2001
R`000 R`000 R`000 R`000
SUPPLEMENTARY INFORMATION:-
CAPITAL COMMITMENTS 79,143 600 0 4,250
CAPITAL EXPENDITURE 75,703 3,794 1,122 26,633
LONG TERM BORROWINGS:-
FINANCE LEASES:-
EXCAVATOR 984C 4,239 4,417 5,630 5,361
EXCAVATOR 984C 3,746 4,059 4,939 4,778
EXCAVATOR 984C 1,872 2,192 2,988 2,686
ELUTION PLANT 0 0 739 376
EXCAVATOR 974B x 2 6,687 6,904 0 7,089
16,544 17,572 14,296 20,290
LESS:- SHORT-TERM PORTION -5,290 -4,942 -2,931 -5,217
11,254 12,630 11,365 15,073
THE ABOVE FINANCE LEASES ARE REPAYABLE
OVER PERIODS VARYING FROM ONE TO FIVE YEARS.
LOAN-HEAP LEACH PLANT:- 8,924 8,924 8,924 8,804
THE ABOVE LOAN IS REPAYABLE
IN 2005 AND BEARS
INTEREST AT A RATE OF
15.25% UNTIL 31/03/2002,
THEREAFTER THE INTEREST
WILL BE MARKET RELATED.
TOTAL LONG-TERM BORROWINGS 20,178 21,554 20,289 23,877
SECURITY:-
THE LOAN FOR THE HEAP-LEACH PLANT
IS SECURED BY R8M OF THE
AFRIKANDER LEASE LIMITED`S EQUIPMENT, CESSION
OF MINERAL RIGHTS FOR AN AMOUNT OF R11M AND
BY A PLEDGE AND CESSION OF ALL SHORT-TERM
INSURANCE POLICIES COVERING THE HEAP LEACH PLANT.
Notes to the financial statements:-
The same accounting policies have been applied to the current year as were used
in the prior year`s annual financial statements. These financial results have
been compiled in accordance with South African Statements of generally accepted
accounting practise. No dividend has been proposed or declared for the period
under review.
COMMENTS ON THE FINANCIAL STATEMENTS
1) The item `creditor in lieu of shares` represents cash received from Jipangu
Inc in terms of the placement of shares. The shares were issued after the end of
the quarter.
2) The full placement of shares with Jipangu Inc will be visible in the
financial statements of the fourth quarter as the outstanding portion of the
investment was received and all the shares issued during the fourth quarter.
3) The related party transaction involving the purchase of R45 million of
equipment purchased from Benoryn Investment Holdings (Pty) Ltd and ratified at
the annual general meeting was implemented during the third quarter financial
statements.
4) As a result of the anticipated change in the method of mining with the
commissioning of the CIL Plant, the management has moved the long-term portion
of the heap leach inventory to other non-current assets on the balance sheet.
On behalf of the Board
P.E.Skeat J. Nortier
Houghton
5 November 2002
Date: 05/11/2002 05:56:00 PM Produced by the JSE SENS Department
