| Wed 12 Feb 2003, 8:47 | | BARPLATS INVESTMENT LIMITED - CONSOLIDATED INTERIM |
|
BARPLATS INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004830/06)
Share code: BPL
ISIN: ZAE000028692
("Barplats")
Consolidated Interim Report
for the six months ended 31 December 2002
Key features
* Disappointing operational performance with tonnes milled declining by 32%
* Platinum in concentrate declines by 25%
* Exploration expenditure of R4,2 million
* Attributable loss of R17 million
Income Statement
Six months Six months Year to
to 31 Dec to 31 Dec 30 June
2002 2001 2002
R`000 (Unaudited) (Unaudited) (Audited)
Sales revenue 107 781 124 119 265 832
Cost of sales 107 283 96 908 193 162
Contract mining cost 56 728 38 416 92 843
Contract concentrating costs 23 472 26 303 50 219
Amortisation of mining assets 22 960 28 656 41 794
Other costs 4 123 3 533 8 306
Operating income 498 27 211 72 670
Exploration expense (4 162) (11 552) (18 919)
Other (expense)/income (7 210) 24 063 10 503
Net financing expense (6 046) (6 967) (9 162)
(Deficit)/income before (16 920) 32 755 55 092
taxation
Taxation 76 26 133
Attributable (deficit)/income (16 996) 32 729 54 959
Headline and basic (8) 15 25
(loss)/earnings per share
(cents)
Balance Sheet
As at As at As at
31 Dec 31 Dec 30 June
2002 2001 2002
R`000 (Unaudited) (Unaudited) (Audited)
ASSETS
Fixed assets 215 798 206 502 219 378
Current assets 51 322 110 821 69 776
Total assets 267 120 317 323 289 154
EQUITY AND LIABILITIES
Shareholders` funds 152 186 146 952 169 182
Non-current liabilities 33 591 29 603 32 908
Current liabilities 81 343 140 768 87 064
Total equity and liabilities 267 120 317 323 289 154
Statement of Changes in Equity
Share Share Retained
R`000 capital premium earnings Total
Balance at 31 December 2 225 1 049 928 (905 201) 146 952
2001
Net profit attributable 22 230 22 230
to ordinary shareholders
Balance as at 30 June 2 225 1 049 928 (882 971) 169 182
2002
Net loss attributable to (16 996) (16 996)
ordinary shareholders
Balance at 31 December 2 225 1 049 928 (899 967) 152 186
2002
Cash Flow Statement
Six months Six months Year to
to 31 Dec to 31 Dec 30 June
2002 2001 2002
R`000 (Unaudited) (Unaudited) (Audited)
Net cash from operating 24 387 50 322 129 550
activities
Net cash used in investing (20 195) (34 944) (60 958)
activities
Net cash used in financing (4 201) (15 293) (68 584)
activities
(Decrease)/increase in cash (9) 85 8
and cash equivalents
Cash at the beginning of the 97 89 89
period
Cash at the end of the period 88 174 97
Notes
The interim financial statements have been prepared using accounting policies
consistent with those of the annual financial statements for the year ended 30
June 2002 and conforms with IAS 34 on Interim Financial Reporting.
Other (expense)/income includes a translation exchange rate loss of R6.2
million, as a result of the stronger rand as at 31 December 2002 (2001: R25.3
million translation exchange rate gain).
Capital expenditure for the period under review amounted to R21.1 million (2001:
R34.9 million). Capital expenditure approved and committed at 31 December 2002
amounted to R19.2 million. This expenditure will be funded from internal
resources and borrowings.
Current liabilities includes a loan facility from a fellow subsidiary (Impala
Platinum Limited) of R200 million of which R46.9 million has been utilised. This
facility bears interest at the Johannesburg Interbank Acceptance Rate plus 2%
and any outstanding balance will be repaid from cash generated from operations.
Non-current liabilities comprises the provision for environmental obligations.
Statistics
Six months Six months Year to
to 31 Dec to 31 Dec 30 June
2002 2001 2002
Production
Ore milled (`000 t) 307 451 757
Metal in concentrate
Platinum (oz) 16 290 21 789 39 131
Palladium (oz) 7 415 9 643 17 283
Rhodium (oz) 2 584 3 340 6 090
Nickel (t) 25 28 50
Average exchange rate (R/$) 10,14 9,44 10,28
achieved
Closing rate 31 (R/$) 8,56 12,05 10,22
December / 30 June
Prices achieved
Platinum ($/oz) 491 394 410
Palladium ($/oz) 240 354 298
Rhodium ($/oz) 406 939 595
Nickel ($/t) 4 994 3 813 4 370
Cost per platinum ounce
in concentrate
Cash operating cost (R/oz) 5 114 3 131 3 871
Net of revenue received (R/oz) 3 150 881 1 281
from other metals
Cash operating cost per (R/t) 272 151 200
tonne milled
Capital expenditure R`000 21 095 41 146 68 621
The market
* Sales held up well, despite the global economic malaise. This was
particularly the case for platinum, where robust automotive sales - which were
incentive-driven in the US - belied the poor economic condition in first world
markets. The threat of war and escalating oil prices, as well as the delays in
Anglo Platinum`s expansion programme has assisted in supporting the platinum
price further.
* Chinese jewellery consumption grew by nearly 20% in 2002. Should platinum
prices remain at the current high levels, this trend could be reversed.
* The overall outlook for platinum remains positive as the fundamentals
remain sound.
* Palladium`s woes continued, with ample supply outstripping demand, as
consumer destocking continued and the full effects of substitution were felt.
The possibility of a swing back to palladium in the automotive industry in the
long term has become a reality, as users are encouraged by lower prices and
abundant supply.
* Producer selling continued to put pressure on the rhodium price, although
demand continued to hold firm. This trend is likely to continue as rhodium
demand remains underpinned by the automotive industry.
Crocodile River
Review
* The good safety performance at Crocodile River continued with just one
single lost time accident in the six months ended December 2002.
* The poor operational performance at Crocodile River in the six months to 31
December 2002 was aggravated by lower palladium and rhodium prices.
* Total tonnes mined, from the opencast and underground operations, were
sharply lower than expected with tonnes milled declining by 32%. This resulted
in a 25% decease in platinum in concentrate to 16 290 oz.
* Contract mining costs increased for the period under review despite the
lower tonnage. This is as a result of a higher stripping ratio associated with
opencast operations and more expensive underground tonnes being mined.
* A series of unexpected geological factors had a negative effect on the
opencast operation and on the build-up of underground production which was
slower than had been planned.
* Additional upward pressure was placed on costs by difficult hanging wall
conditions necessitating a reduction in bord widths. This had a dramatic impact
on operator efficiencies and resulted in a 24% increase in cash costs.
* An evaluation of steps aimed at improving operational performance by
increasing development, reducing dilution and improving efficiencies is
currently underway. The profitability of the mine will depend on whether these
interventions will be successfull.
* Metallurgical performance improved relative to the comparable growth period
under review.
Growth Prospects
Growth projects revolve around the evaluation of the resource at Krokodildrift,
Kennedy`s Vale mine and trial mining at Zandfontein.
* Krokodildrift: Initial metallurgical bulk samples have been sent to Mintek
for analysis. Metallurgical recoveries of shallow ore samples have been
disappointing. A mining feasibility study will be conducted once all of these
results have been received from Mintek.
* Zandfontein: Work is currently in progress to re-instate mining operations
at 4 decline shaft and trial mining will begin once the area has been made safe.
Two mining areas are to be established, testing two different semi-mechanised
mining techniques.
* Kennedy`s Vale: Drilling continues and 12 holes were completed during the
period. A review of the properties surrounding Kennedy`s Vale has begun with a
view to optimising the mine plan. This study is being carefully monitored and
will be presented to the board when finalised.
Earnings forecast
An evaluation of the long-term viability of Crocodile River mine is currently
being undertaken. It is expected that tonnage throughput will reduce during the
second half of the year due to the difficult underground conditions and the
depletion of opencast reserves. In addition, Rand strength will impact on the
revenue basket received and it is therefore forecast that this will result in
the loss increasing significantly for the balance of the financial year.
On behalf of the board
K C Rumble D H Brown Johannesburg
Chairman Director 12 February 2003
Registered office
3rd Floor, Old Trafford 4, Isle of Houghton, Boundary Road, Houghton 2198
(PO Box 61386, Marshalltown 2107)
Transfer secretaries
Computershare Investor Services Limited, 8th Floor, 70 Marshall Street,
Marshalltown, 2107
(PO Box 10651, Johannesburg 2000)
Date: 12/02/2003 08:01:00 AM Produced by the JSE SENS Department
