| Mon 3 Mar 2003, 17:55 | | PSGM - Audited Results for the year ended 31 Decem |
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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
("PSGM" or "the company")
Audited Results for the year ended 31 December 2002
The company`s business:
The company sold it`s gold mining subsidiaries to Thistle Mining Incorporated
("Thistle") on 1 February 2002. The remaining assets in the company are
convertible debentures in Thistle, a monthly royalty receivable from the company
which was sold to Thistle and cash.
Group Income Statement Year ended Year ended
2002 2001
Notes R000 R000
Sales Gold 47 727 416 031
Other 418 13 249
Cost of sales Gold (32 237) (348 615)
Other (290) (11 294)
Operating profit 1 15 618 69 371
Corporate expenditure (2 606) (2 890)
Depreciation: property, plant equipment (1 588) (18 451)
Amortisation: goodwill (773) (9 277)
Dividend received 2 34 111 -
Net profit on disposal of subsidiaries 2 107 710 -
Net profit on disposal of debentures 3 15 277 -
Interest received 8 103 272
Interest paid (386) (7 480)
Profit before tax 175 466 31 545
Taxation 4 (14 564) (6 238)
Net profit 160 902 25 307
Dividend 5 (75 507) -
Retained profit 85 395 25 307
Weighted average shares in issue 000 503 380 503 380
Earnings per share ("EPS") cents 32,0 5,0
Adjustments:
Amortisation: goodwill 0,2 1,9
Dividend received (6,8) -
Net profit on disposal of subsidiaries (21,2) -
Net profit on disposal of debentures (2,1) -
Headline EPS 2,1 6,9
Group Balance Sheet 31 Dec 31 Dec
2002 2001
Notes R000 R000
ASSETS
NON-CURRENT ASSETS
Mining assets - 176 199
Property plant and equipment 37 8 784
Goodwill - 166 985
Debentures 2 & 3 61 900 -
Royalty 2 & 6 31 366 -
CURRENT ASSETS
Inventories - 46 150
Trade and other receivables 3 473 13 961
Cash and cash equivalents 10 051 8 222
Total assets 106 827 420 301
EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY 97 831 298 020
NON-CURRENT LIABILITIES - 65 493
CURRENT LIABILITIES
Trade and other payables 1 858 43 315
Short term portion of interest bearing
liabilities - 13 463
Taxation 7 138 10
Total equity and liabilities 106 827 420 301
Shares in issue 000 503 380 503 380
Net asset value per share cents 19,4 59,2
Statement of Changes in Equity 31 Dec 31 Dec
2002 2001
Notes R000 R000
Balance at the beginning of the year 298 020 272 713
Share premium distribution 7 (309 579) -
Non-distributable reserve on revaluation
of debentures 3 23 995 -
Retained income for the year 85 395 25 307
97 831 298 020
Represented by:
Share capital 5 034 5 034
Share premium - 235 591
Non-distributable reserve 1 138 1 138
Non-distributable reserve on revaluation of
debentures 23 995 -
Retained income 67 664 56 257
97 831 298 020
Group Cash Flow Statement Year ended Year ended
2002 2001
R000 R000
Cash flow from operating activities (26 415) 67 945
Cash generated from operations 12 499 75 523
Dividends received 34 111 -
Dividends paid (75 507) -
Net interest received/(paid) 7 717 (7 208)
Taxation paid (5 235) (370)
Cash flow from investing activities 359 792 (25 415)
Net additions to property plant and equipment (1 356) (24 372)
Proceeds from sale of debentures 29 856 -
Net proceeds from sale of subsidiaries 317 658 -
Royalties received 13 634 -
Contributions to environmental trust fund - (1 043)
Cash flow from financing activities (311 049) (13 813)
Share premium distribution (309 579) -
Redemption of borrowings (1 470) (13 813)
Net increase in cash resources 22 328 28 717
Net cash included in the disposal of subsidiaries (20 499) -
Cash and cash equivalents at beginning of year 8 222 (20 495)
Cash and cash equivalents at end of year 10 051 8 222
Notes to the Financial Statements
1. Operating profit
Operating profit represents 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 71 126
Expenses relating to disposal (8 416)
Capitalisation of royalties 45 000
107 710
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
represents cash amounting to R325 252 000 and debentures of US$4 500 000
converted to R52 484 000.
The debentures issued were 4500 at US$1000 each at a coupon rate of 10% and can
be convertible at any time by the company into ordinary shares of Thistle at the
lower of market value or 25 Canadian cents per Thistle share.
In addition to the above consideration, a monthly royalty of USD 8 per ounce of
gold produced by PSFS is receivable from 15 February 2002 to 31 January 2007.
(Refer also note 6)
2.3 Dividend received
The agreement for the disposal further included the declaration of a cash
dividend from PSFS to the company as at 31 January 2002. The dividend,
amounting to R34 111 000 was received on 4 June 2002.
2.4 Disposal of Q-Tech
Directors approved the disposal of Quality Enhancement Technology (Pty) Ltd ("Q
Tech"), with effect from 1 January 2002 at book value, for a cash consideration
of R822 000. The business of this subsidiary did not support the overall
strategy of the company, whilst the loss situation in this business necessitated
corrective action.
3. Debentures
R000
3.1 Net profit on disposal of debentures 15 277
1250 debentures of US$ 1000 each, were sold for a gross consideration of US$2
850 000 in June 2002. At the company`s annual general meeting held on 30 July
2002, directors were authorised to dispose of the debentures at acceptable
commercial terms, if such opportunity arises.
R000
3.2 Revaluation of debentures 23 995
The market value of the remaining 3250 debentures at end December 2002, based
on the conversion rights to Thistle shares, was R61 900 000. The increase of
market value over book value at end December 2002, was capitalised and the
credit taken to a non-distributable reserve
4. Taxation
R000
Normal taxation: current 7 174
Normal taxation: deferred 2 216
Secondary tax on companies 5 174
14 564
5. Dividend paid on 29 July 2002
The Board declared a dividend of 15 cents per share, in total R75 507 000,
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 13 634
31 366
At the company`s annual general meeting held on 30 July 2002, directors were
authorised to dispose of the royalty at acceptable commercial terms, if such
opportunity arises
7. Share premium distribution
Shareholders approved two reductions in the share premium account as follows:
R000
A payment of 55,0 cents per share to shareholders on 4 March 2002 276 859
A payment of 6,5 cents per share to shareholders on 14 October 2002 32 720
309 579
8. Commitments
There were no capital commitments at year end ( 2001: R3 412 000)
9. Event after balance sheet date: offer from thistle
Thistle notified the board of the company that they will be making an offer
to all shareholders to purchase their shares in the company at a price of 18
cents per share. They further noted that they have received letters of
undertakings from shareholders of the company holding at least 90% of the issued
share capital, in terms of which these shareholders have undertaken to accept
the offer. This acceptance will allow Thistle to acquire the remaining
shareholding at 18 cents per share, in terms of section 440 (1)(a) of the
Companies Act. Full details of the offer from Thistle will be included in a
circular to shareholders, which will be posted on or about 6 March 2003.
10. Dividend to be declared
The intended offer from Thistle (refer note 9) includes the payment of a
dividend to shareholders equal to the net current assets of the company as at
28 February 2003. The dividend is estimated at 0,75 cents per share, although
the final amount of the dividend will only be notified to shareholders at the
date of the dividend declaration on or about 20 March 2003.
11 Preparation of financial statements
11.1 The financial statements have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice
11.2 The accounting policies applied are consistent with those applied in the
previous financial year
11.3 The financial statements have been audited by JCB Incorporated and the
auditors` unqualified report is available for inspection at the company`s
registered office.
Johannesburg
4 March 2003
Directors: J S van der Merwe, C R de Wet, F N Lotz, D L Parodi
Registered office: 7 Main Reef Road, Germiston
Transfer secretaries: Computershare Limited
Website: www.psgold.co.za
Date: 03/03/2003 05:15:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
