JCI revives fortunes
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MINING group JCI Ltd has lodged a complaint with the JSE Securities Exchange SA (JSE) after its share price dropped close to 10% before the company issued preliminary results for the year to March late yesterday.
Spokesman George Poole said the company had no idea who had sold the shares or why. Ironically, however, the seller did him or herself a "great disservice" said Poole.
This was because JCI reported a substantial turnaround with a net profit for the year of R197m, compared to a R295m loss in the corresponding period.
"These results show a remarkable turnaround of R442m in a year," said JCI CE Brett Kebble.
Headline earnings a share of 5,2c were recorded compared with a negative 24,5c in the corresponding period.
A top-rated mining analyst warned, however, that the company was a "minefield" which was not on his radar for various reasons.
Kebble attributed the turnaround to the reorganisation of the company and improved performance of assets.
"Moreover, the future looks extremely bright because we expect underlying investments to start contributing in the next financial year. The results are even more impressive when you consider that in the course of the year we repaid to Western Areas a debt of R468,8m," Kebble said.
Western Areas would reach full operation in the next 18 months, producing 750000oz of gold a year for the next 72 years, Kebble said.
The group said it had financed various projects and assets during the reporting period, which were not yet cash positive. These were expected to start contributing towards cash flow in the "near to medium term".
In the interim, the group's cash requirements would be satisfied by the raising of finance against these assets or the disposal of certain assets.
Poole would not elaborate on the new projects or assets.
JCI was still involved in a process to flatten its pyramid structure, which would see JCI Ltd directly owning, or owning shares in, several companies including Freddev, Western Areas, Barnex, Randgold and the new assets which were being brought to fruition.
Commenting on payment claims brought against JCI Ltd and JCI Gold last year, the company said it was likely that these claims would be defended successfully.
Jul 16 2003 07:47:58:000AM Carli Lourens Business Day 1st Edition
Wednesday
16 July 2003
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