| Mon 31 Mar 2003, 16:57 | | Messina Limited - Reviewed Preliminary Results For |
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Messina Limited - Reviewed Preliminary Results For The Year Ended 31 December
2002
Messina Limited
and its subsidiary
(Incorporated in the Republic of South Africa)
(Registration number 1950/035912/06)
Share code: MES
ISIN: ZAE000004438
("Messina" or "the company")
Reviewed Preliminary Results For The Year Ended 31 December 2002
Abridged Consolidated Income Statements
For the years ended 31 December
2002 2001
R"000 R"000
Income 2,528 1,369
Operating Expenses (785) (1,142)
Profit before tax 1,743 227
Taxation - -
Net profit for the year 1,743 227
Earnings per share (cents):
basic 13.13* 1.75
headline 13.13* 1.75
*based on weighted average number of ordinary
shares in issue
Abridged Consolidated Balance Sheets
at 31 December
2002 2001
R"000 R"000
Assets
Non-current Assets 881,099 360,287
Property, plant and equipment 223,607 81,335
Mining Assets 656,815 278,275
Investments 677 677
Current Assets 43,113 48,360
Inventory 8,903 1,485
Receivables and prepayments 33,310 13,444
Current tax assets 720 702
Cash and cash equivalents 180 32,729
924,212 408,647
Equity and Liabilities
Capital and Reserves 232,501 76,979
Share capital 7,779 6,482
Share premium 175,293 22,811
Reserves 49,429 47,686
Long-term liabilities 460,279 276,279
Shareholders" loan 53,852 84,436
Long-term loans 406,427 191,843
Non-current Liabilities
Environmental rehabilitation obligation 8,444 7,744
provision
Current Liabilities 222,988 47,645
Trade and other payables 97,653 38,445
Current portion of long-term liabilities
- interest bearing 29,438 9,200
Bank overdraft - secured by holding
company guarantee - interest bearing 95,897 -
924,212 408,647
Net asset value per share (Rand) 14.94 5.94
Number of ordinary shares in issue ("000) 15,558 12,965
Consolidated Statement of Changes in Equity
For the year ended 31 December 2002
Capital Total
Share Share Redemption Retained
Capital Premium reserve Earnings
R"000 R"000 R"000 R"000 R"000
Balance at 6,482 22,811 2,002 45,684 76,979
1 January 2002
Net proceeds - 1,297 152,482 153,779
rights issue
Profit for the 1,743 1,743
year
Balance at
31 December 2002 7,779 175,293 2,002 47,427 232,501
Abridged Consolidated Cash Flow Statements
for the years ended 31 December
2002 2001
R"000 R"000
Cash flows from operating activity
Profit before taxation 1,743 227
Adjustment for:
Finance income (2,180) (1,182)
(Loss) from operations (437) (955)
Changes in working capital 52,144 20,650
Inventory (7,418) (1,485)
Receivables & pre-payments (19,884) (9,090)
Trade & other payables 79,446 31,225
Net cash flow from operating activities 51,707 19,695
Finance income 2,180 1,182
Cash outflow for investment activities (520,112) (303,459)
Purchase of property, plant and equipment (152,318) (66,362)
Increase in development costs (367,794) (237,097)
Cash inflow from fund raising activities 337,779 285,479
Net proceeds - rights issue 153,779 -
(Decrease)/Increase in shareholders" loan (30,584) 84,436
Increase in long-term liabilities 214,584 201,043
(Decrease)/Increase - cash and cash (128,446) 2,897
equivalents
Cash and cash equivalents - beginning of year 32,729 29,832
(Net overdraft)/Cash and cash equivalents
- end of year (95,717) 32,729
Notes to the preliminary results
1. Messina continued with the development of the Voorspoed section of the
Messina Platinum Mine Project and completed construction and commissioning of
the Voorspoed main concentrator plant which together with the smaller
concentrator plant commissioned in 2001, avails the company of treatment
capacity of 120,000 tonnes per month. Mine surface and shaft infrastructure to a
shaft depth of 425 meters was completed and production build up from the mining
of available levels to that depth commenced during the last quarter of the year.
The deepening programme aimed at extending shaft depth to the 625 meter level
was started and a feasibility study on the company"s Doornvlei property was
successfully concluded. Trial mining of the Voorspoed ore body continued during
the year and results of this activity indicate positively that the Voorspoed ore
body is likely to meet or better the main geological variables determined in the
course of the original feasibility study for the Voorspoed section.
2. The activities described above have been funded by increased long-term and
short-term borrowings, a successful rights issue concluded during the year and
by extended advances made and guarantees given by the company"s ultimate holding
company, SouthernEra Resources Limited of Canada who hold a 70,9% equity
interest in the company.
3. Long-term liabilities are principally made up of structured long-term
borrowings advanced by the company"s bankers and are secured over the assets of
the company, other debt, including the shareholders" loan to SouthernEra, being
subordinate to bank debt. Overdraft facilities advanced to the company are
secured by issue of guarantees, supported by cash on deposit, in favour of the
company"s bankers, made by SouthernEra Resources Limited.
4. During the foreseeable period of production build up at the Voorspoed
section, the company is and will remain dependant upon the continued financial
support of SouthernEra Resources Limited and the company"s bankers, SouthernEra
having warranted such support as may be necessary to preserve the going concern
status of the company.
5. Accounting policies adopted by the company in preparing the preliminary
results are consistent with the policies adopted in the preparation of the
company"s previous year"s financial statements and comply with statements of
Generally Accepted Accounting Practice in South Africa.
6. Income and expenditure during the year, except for certain rental income,
interest received and non-operating expenditure, has been capitalised as the
mine is in the development stage.
7. Messina had capital expenditure commitments amounting to approximately R23
million outstanding at the end of the financial year which will be financed from
continued advances being made by SouthernEra.
8. The preliminary results of the company as set out above have been reviewed by
the company"s auditors, PricewaterhouseCoopers Inc, as is required by the rules
of the JSE Securities Exchange South Africa. The review report is available for
inspection at the Company"s registered office.
For and on behalf of the Board
CMH Jennings WM Eksteen
Director Director
1 April 2003
Directors:
Dr. CMH Jennings - Chairman (Canadian)*, PC Evans - CEO, WM Eksteen - COO, LJ
Fox (USA)*, JHR Karlson*, RR Mphahlele* (* non-executive)
Secretary and registered office
MA Kritzinger
Nantai Crescent
30 Jellicoe Avenue
Rosebank 2196, Johannesburg
(PO Box 2668, Saxonwold, 2132)
Transfer secretaries
Computershare Investor Services Limited
70 Marshall Street
Marshalltown
2001
(PO Box 60510, Johannesburg, 2000)
