| Tue 5 Aug 2003, 9:48 | | Aflease -Interim Financial Results for Jun 03 |
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Aflease - Unaudited Interim Financial Results For June 2003 Incorporating
Release Date: 04/08/2003 09:29:16 Code(s): AFL
Aflease - Unaudited Interim Financial Results for June 2003 Incorporating
Quarterly Results Financial Results
The Afrikander Lease Limited
(Incorporated in the Republic of South Africa)
AFL (JSE) AFKDY (NASDAQ)
(Registration number 1921/006955/06) Share Code: AFL
ISIN Code: ZAE000000253 ("Aflease" or "the company" or "AFL")
- In line with the group"s expectations outlined in the trading update issued to
shareholders on the 6th of June 2003, Aflease incurred an operating loss of
R28.5 million for the June quarter compared to R14 million for the March
quarter.
- The loss for the June quarter is mainly attributable to the lower level of
gold production (129kg) from the open cast operations, due to interruptions in
production caused by the commissioning of the new CIL plant.
- Operating costs increased by R5.8 million to R31.4 million for the June
quarter from R25.6 million for the March quarter, largely due to an increase in
underground mining activity.
- Non-recurring expenditure of R3.9 million for the June quarter consisted
mainly of costs relating to the mothballing of the New Kleinfontein plant and
professional and legal fees relating to capital raising activity.
- Mining assets increased to R397.6 million at the end of June from R348.9
million at the end of March. This was due to capital expenditure of
approximately R40 million for the new CIL plant and approximately R8 million for
the underground sections.
- A 3-year R75 million funding facility was secured from Nedcor.
Expansion Programme
-------------------
As forecast in the March quarter, the 200 000 tpm CIL plant was hot commissioned
prior to the end of the June quarter. Current indications are showing a
throughput rate of 176 000 tpm, with 200 000 tpm expected to be achieved in the
September quarter. It is pleasing to note that gold production for July 2003 was
155kg.
The primary sources of ore during this period will continue to be from lower
grade open pit sources while the underground tonnage build up continues.
Contribution from underground sources is expected to steadily increase from 13
500 tpm in July to 17 000 tpm in September 2003.
The heap leach operations, which recommenced production in the March quarter,
continue to produce 30kg of gold per month. Other sources of heap leachable ore
have been identified. Higher grade un-leached pad sidewalls have temporarily
replaced the Big Pebble conglomerates. Exploration of the Big Pebble
conglomerates will continue in order to upgrade this important resource.
Exploration
-----------
Bonanza Reef exploration for quarter to June 2003
Drilling for Bonanza Reefs has continued in the Area 1 and Area 2 blocks to the
south and south east of Bonanza West Mine. The reefs are variously developed and
locally very high grades have been achieved. The most consistent grades have
been achieved on the intermediate and Lower reef horizons at depths ranging from
20m to approximately 200m.
Geological interpretation is ongoing to delineate the nature and position of a
number of intrusive bodies, while analysis of the complex structure in the area
is resulting in a more thorough understanding of the distribution of reef
horizons. Sedimentological models are being developed as an aid to predict the
grade distribution of the various reefs.
The current drilling programme, targeting Bonanza Reefs at shallow depths, is
providing valuable data, which will be used as an aid to plan the proposed
regional Bonanza evaluation. Regionally, the Bonanza Reefs are considered to
occur at depths ranging from surface to depths of approximately 1700m, with the
current model predicting enhanced grade coincident with the regional synclinal
axis.
Modder East drilling for quarter to June 2003
---------------------------------------------
During the June quarter the exploration results for Modder East and the UC
Prospect area have supported the geological model developed for the target zone.
Drilling for the eastern extension of the ore body is in progress, with initial
indications for the attenuation of the ore body to the east.
Geophysical exploration for Black Reef channels in the northern part of Modder
East was completed without conclusive definition of a drilling target. However,
alternative strategies for defining Black Reef channels and channel facies has
resulted in at least one prime channel target being delineated. This prime
channel will be drilled in the September quarter. Drilling for Kimberley Reef
(UK9A) has not fully commenced, though a number of intersections on the UK3, UK5
and UK7 reefs, obtained during the current drilling programme, have indicated
significant potential for economic exploitation.
The Modder East and UC Prospect properties continue to offer outstanding
additional exploration targets with the potential for a significant increase in
gold resources at depths that allow for a minimal lead time between evaluation
and exploitation.
Bonanza Reef Drilling Results for the quarter ended 30 June 2003
----------------------------------------------------------------
Borehole Accepted Stoping Stope
Number From To Value width grade Reef type
(m) (m) cmg/t) cm) (g/t)
--------------------------------------------------------------------------
NB108** 113.57 114.05 NEG VALUES Upper Reef
NB202** 178.6 178.94 NEG VALUES Upper Reef
NB111* N/A N/A NOT DEVELOPED Upper Reef
NB121* 77.06 77.49 NEG VALUES Upper Reef
NB203 N/A N/A FAULTED OUT/DYKE Upper Reef
NB204* 67.82 68.82 276 100 0.38 Upper Reef
NB207 139.26 142.1 134 100 1.34 Upper Reef
NB212* 17.68 18.68 38 100 0.38 Upper Reef
NB108** 118.10 119.53 515 100 5.15 Intermediate Reef
NB202** 195.47 196.76 985 100 9.85 Intermediate Reef
NB111* 206.33 206.77 100 100 1 Intermediate Reef
NB121* 83.3 83.67 NEG VALUES Intermediate Reef
NB203 N/A N/A FAULTED OUT/DYKE Intermediate Reef
NB204* COMBINED WITH LOWER REEF Intermediate Reef
NB207 153.45 154.52 73 100 0.73 Intermediate Reef
NB212* 31.69 32.66 57 100 0.57 Intermediate Reef
NB108** 120.46 121.26 394 100 3.94 Lower Reef
NB202** 197.72 199.01 310 100 3.10 Lower Reef
NB111* 208.69 209.69 2025 100 20.25 Lower Reef
NB121* 84.84 85.34 NEG VALUES Lower Reef
NB203 N/A N/A FAULTED OUT/DYKE Lower Reef
NB204* 75.31 76.69 91 100 0.90 Lower Reef
NB207 155.23 156.22 101 100 1.01 Lower Reef
NB212* 34.17 34.17 60.84 100 0.61 Lower Reef
*Result excludes one or more intersections which are awaiting analysis.
**Updated as a result of additional deflection information since last quarterly
report.
Notes
-----
From/To = depth below surface in meters
Stoping width = estimated mining stoping width
Cmg/t = centimeter gram per ton of channel
G/t = estimated blasting grade
Above table excludes additional holes drilled for structural purposes.
Modder East Drilling for quarter to June 2003
---------------------------------------------
During the June quarter the exploration results for Modder East and the UC
Prospect area have supported the geological model developed for the target zone.
Drilling for the eastern extension of the ore body is in progress, with initial
indications for the attenuation of the ore body to the east.
Geophysical exploration for Black Reef channels in the northern part of Modder
East was completed without conclusive definition of a drilling target. However,
alternative strategies for defining Black Reef channels and channel facies has
resulted in at least one prime channel target being delineated. This prime
channel will be drilled in the September quarter.
Drilling for Kimberley Reef (UK9A) has not fully commenced, though a number of
intersections on the UK3, UK5 and UK7 reefs, obtained during the current
drilling programme, have indicated significant potential for economic
exploitation.
The Modder East and UC Prospect properties continue to offer outstanding
additional exploration targets with the potential for a significant increase in
gold resources at depths that allow for a minimal lead time between evaluation
and exploitation.
Modder East drilling Results for the quarter ended 30 June 2003
---------------------------------------------------------------
Borehole Accepted Stoping Stope
Number From To Value width grade Reef type
(m) (m) cmg/t) cm) (g/t)
--------------------------------------------------------------------------
DD8** 275.20 275.50 652 100 6.6 BPLZ
DD9** 300.85 301.28 1201 100 12.3 BPLZ
DD11 306.40 306.66 590 100 5.9 BPLZ
DD8** 296.06 296.48 422 100 4.2 BPLZ
DD13* 294.10 294.44 247 100 2.47 BPLZ
DD14 N/A N/A WOC N/A N/A BPLZ
DD8** 276.50 281.07 517 457 1.13 BLANKET/CHANNEL
DD9** 301.28 303.69 508 241 2.1 BLANKET/CHANNEL
DD11 306.66 309.03 348 237 1.47 BLANKET/CHANNEL
DD12* 296.48 300.66 535 418 1.3 BLANKET/CHANNEL
DD13* 294.44 298.83 121 436 0.28 BLANKET/CHANNEL
DD14 N/A N/A WOC N/A N/A BLANKET/CHANNEL
DD13* 299.59 300.88 178 100 1.78 UK3
DD13* 301.16 305.45 403 100 4.03 UK5
*Result excludes one or more intersections which are awaiting analysis.
**Updated as a result of additional deflection information since last quarterly
report.
Notes
-----
Cmg/t = centimeter grams per ton of channel (average of mother hole and
deflections)
Stoping width = estimated mining stoping width
G/t = estimated blasted grade
Reef Type
BPLZ = Buckshop Pyrite Leader Zone
Blanket/Channel = Blanket Reef blanket or channel facies
UK = Upper Kimberley Reef
ADR
---
The Company is currently implementing enhancements to its governance and
operational systems and processes in order to align itself more fully with US
legal requirements to which it will become subject on completion of its planned
ADR level 2 upgrade. The Company will proceed with its level 2 upgrade
application when this process is completed, which is expected by the end of this
year.
Prospects
---------
Aflease remains committed to delivering exceptional returns for our shareholders
through an unwavering focus on delivery. The exploration programme is showing
pleasing results and the group is on track to deliver on the 100 000 oz CIL
expansion programme by December 2003 and will continue to evaluate growth
opportunities that are value-adding.
Unaudited Financial Results For June 2003
-----------------------------------------
Unaudited Unaudited Unaudited Unaudited Unaudited
Quarter Quarter Quarter 6 Months 6 months
To To To ended ended
30 June 2003 31 March 2003 30 June 2002 30 June 2003 30 June 2002
Highlights
Gold Produced And Sold:
-kg"s 129 191 255 320 494
-ounces 4,150 6,137 8,198 10,287 15,882
Cash Operating Cost per ton mined:
(R) 64.09 67.78 37.01 65.70 42.60
Cash Operating Cost:
-Rand/Kg 243,280 134,280 71,933 178,180 73,221
-US$/Oz 985 503 218 722 212
Cash Operating (Loss) / Profit (R"000)
(20,217) (7,986) 8,114 (28,203) 15,799
Operating (Loss) / Profit (R"000)
(28,504) (13,961) 4,821 (42,465) 9,296
Net (Loss) / Earnings (R"000)
(32,435) (13,961) 4,821 (46,396) 9,296
Headline And Basic (Loss) / Earnings Per Share (Cents)
(17.21) (7.76) 3.46 (25.29) 6.69
Operating Results:
Tons Mined - Open Pit
471,854 378,159 495,645 850,013 849,115
Tons Mined - Underground
18,070 - - 18,070 -
Tons Stacked - CIS
185,484 247,776 495,298 433,260 859,664
Tons Milled - CIL
140,696 - - 140,696 -
Gold Produced And Sold (Kg)
129 191 255 320 494
Grade Stacked - CIS
0.49 1.03 1.23 0.76 1.24
Grade Milled - CIL
0.91 - - 0.91 -
Gold Price Received:
-Rand/Kg 86,645 92,439 103,753 90,065 105,202
-Rand/Oz 2,695 2,875 3,227 2,801 3,272
-US$/Oz 356 350 315 352 304
Income Statement:
Revenue
11,183 17,644 26,457 28,827 51,970
Cash Operating Costs
35,702 32,559 26,471 68,261 48,637
Cash Movement In Lock-up
(4,302) (6,929) (8,128) (11,231) (12,466)
Cash Operating (Loss)/Profit
(20,217) (7,986) 8,114 (28,203) 15,799
Amortisation And Depreciation
3,696 3,645 2,487 7,341 4,806
Non-cash Movement In Lock-up
- - (961) - (1,583)
Net Finance Costs
1,262 881 934 2,143 1,717
General And Administrative
1,352 530 363 1,882 653
Exploration Expenditure
1,977 919 470 2,896 910
Operating (Loss)/Profit
(28,504) (13,961) 4,821 (42,465) 9,296
Non Recurring Costs
Decommissioning (Net of revenue)
2,602 - - 2,602 -
Funding Expenses And Legal Fees
1,329 - - 1,329 -
(Loss)/Profit Before Taxation
(32,435) (13,961) 4,821 (46,396) 9,296
Taxation - - - - -
Net (Loss) / Profit For The Period
(32,435) (13,961) 4,821 (46,396) 9,296
Ratios:
(Loss) / Earnings Per Share (Cents):
-Cash Operating (Loss) / Profit
(10.73) (4.44) 5.82 (15.37) 11.38
-Operating (Loss) / Profit
(15.13) (7.76) 3.46 (23.14) 6.69
-Headline And Basic
(17.21) (7.76) 3.46 (25.29) 6.69
-Fully Diluted
(16.32) (7.64) 3.37 (23.94) 6.53
Weighted Average Number Of Ordinary Shares In Issue
188,438,191 179,946,779 139,473,901 183,488,113 138,887,830
Number Of Shares In Issue At End Of Period
188,569,073 188,292,090 141,429,123 188,569,073 141,429,123
The Fully Diluted Earnings Per Share Is Based Upon The Dilutive Effect Of
Employee Share Options.
Abridged Balance Sheet:
Unaudited Unaudited Unaudited
30 June 2003 31 March 2003 30 June 2002
R"000 R"000 R"000
Assets
Non-current Assets:
-Mining Assets 397,550 348,946 118,363
-Other Assets 10,161 9,583 3,351
-Leach Pads 39,221 39,221 31,923
-Investments 12,818 12,101 9,216
459,750 409,851 162,853
Current Assets:
-Inventories 24,813 20,629 10,212
-Leach Pads 9,805 9,805 7,090
-Receivables And Prepayments
12,647 10,507 12,321
-Amounts Owing By Related Third Parties
835 881 -
-Bank And Cash Balances
18,943 21,585 19,738
67,043 63,407 49,361
Total Assets 526,793 473,258 212,214
Equity And Liabilities
Capital And Reserves:
-Ordinary Share Capital 3,772 3,766 2,829
-Share Premium 383,364 382,938 130,481
-Accumulated Earnings (21,835) 10,600 18,266
365,301 397,304 151,576
Non-current Liabilities:
-Interest Bearing Borrowings
78,261 28,462 21,554
-Rehabilitation And Closure Cost Obligations
4,500 4,500 4,500
-Amounts Owing To Related Third Parties
71 77 3,094
82,832 33,039 29,148
Current Liabilities:
-Trade And Other Payables
32,264 24,904 19,713
-Provisions 5,224 5,576 1,096
-Current Portion Of Interest Bearing Borrowings
32,622 7,206 4,942
-Bank Overdraft Balances
8,550 5,229 5,739
78,660 42,915 31,490
Total Equity And Liabilities
526,793 473,258 212,214
Unaudited Unaudited Unaudited Unaudited Unaudited
Quarter Quarter Quarter 6 months 6 months
To To To ended ended
30 June 2003 31 March 2003 30 June 2002 30 June 2003 30 June 2002
R"000 R"000 R"000 R"000 R"000
Abridged Cash Flow Statement:
Cash Flow (Utilised By)/Generated From:
Operating Activities
(2,592) 9,121 (91) 6,529 3,597
Investing Activities
(53,595) (131,316) (4,814) (184,911) (9,886)
Financing Activities
50,224 69,424 10,636 119,648 8,346
Net (Decrease)/Increase In Cash And Cash Equivalents
(5,963) (52,771) 5,731 (58,734) 2,057
Cash & Cash Equivalents At Beginning Of Period
16,356 69,127 8,268 69,127 11,942
Cash & Cash Equivalents At End Of Period
10,393 16,356 13,999 10,393 13,999
Share Share Accum Total
Capital Premium Profit Equity
R"000 R"000 R"000 R"000
Statement Of Changes In Equity:
Balance At 31st December 2001
2,755 118,763 8,970 130,488
Issued During The Period
- - - -
Share Premium - - - -
Net Profit After Taxation
- - 4,475 4,475
Balance At 31st March 2002
2,755 118,763 13,445 134,963
Issued During The Period
712 - - 712
Share Premium
- 196,841 - 196,841
Net Profit After Taxation
- - 11,116 11,116
Balance At 31st December 2002
3,467 315,604 24,561 343,632
Issued During The Period
299 - - 299
Share Premium
- 67,334 - 67,334
Net Loss After Taxation
- - (13,961) (13,961)
Balance At 31st March 2003
3,766 382,938 10,600 397,304
Issued During The Period
6 - - 6
Share Premium
- 426 - 426
Net Loss After Taxation
- - (32,435) (32,435)
Balance At 30th June 2003
3,772 383,364 (21,835) 365,301
Unaudited Unaudited Unaudited Unaudited Unaudited
Quarter Quarter Quarter 6 months 6 months
To To To ended Ended
30 June 2003 31 March 2003 30 June 2002 30 June 2003 30 June 2002
R"000 R"000 R"000 R"000 R"000
Supplementary Information:
Capital Commitments
8,000 30,000 600 8,000 600
Capital Expenditure
8,000 23,300 3,794 8,000 9,780
Asset Finance Leases:
30,977 22,876 17,572 30,977 17,572
Less:Short-term Portion
(6,553) (6,137) (4,942) (6,553) (4,942)
24,424 16,739 12,630 24,424 12,630
The above finance leases are repayable over periods varying from one to five
years and bear interest at an average rate of 13%.
Loan-heap Leach Plant:
8,924 8,924 8,924 8,924 8,924
The above loan is repayable in 2005 and bears interest at a rate of 15.25%.
Loan-Nedbank:
67,400 - - 67,400 -
Less: Short-term Portion
(25,000) - - (25,000) -
42,400 - - 42,400 -
The above is a three year facility and bears interest at a rate of jibar plus a
margin of 4% decreasing to 3%.
Total Leases
75,748 25,663 21,554 75,748 21,554
Security:
1. The loan for the heap-leach plant is secured by movable equipment limited to
R8m, bond over mineral rights for an amount of R11m and by a pledge and cession
of all short-term insurance policies covering the heap leach plant.
2. The Nedbank loan facility is secured by a bond over mineral rights.
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 practice. No dividend has been proposed or declared for the period
under review.
On behalf of the board
D J Nortier N J Froneman
(Chairman) (Chief Executive Officer)
4 August 2003
DISCLAIMER
Statements made in this document with respect to Aflease"s current plans,
estimates, strategies and beliefs and other statements that are not historical
facts are forward-looking statements about the future performance of Aflease.
These statements are based on management"s assumptions and beliefs in light of
the information currently available to it. Aflease cautions you that a number of
risk and assumptions could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them. The potential risks and assumptions include, amongst
others, risks associated with: fluctuations in the rand-dollar exchange rate,
dollar market price of gold, gold production at operations, estimates of
reserves and resources. Aflease assumes no obligation to update information in
this release.
Date: 04/08/2003 09:29:45 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
