| Mon 15 Sep 2003, 17:18 | | FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2003 |
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Assore Limited - FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2003
Assore Limited
Company registration number: 1950/037394/06
Share code: ASR ISIN code ZAE000017117
FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2003
* Increased sales volumes for all products
* Headline earnings decrease by 54,0% to R135,2 million due to stronger
exchange rates
CONSOLIDATED INCOME STATEMENT
Year ended Year end
30 June 2003 30 June 2002
Audited Audited
R"000 R"000
Turnover 1 753 027 1 514 406
Net operating profit 240 820 416 319
Finance costs (28 412) (35 207)
Dividends received 5 451 4 839
Net profit before exceptional item 217 859 385 951
Exceptional item - 248 278
Net profit before taxation 217 859 634 229
Taxation (76 414) (131 894)
Net profit from ordinary operating activities 141 445 502 335
Outside shareholders" share of net profit (5 073) (381)
Attributable earnings transferred to statement
of changes in equity 136 372 501 954
Earnings per share (cents) 487,0 1 792,7
Headline earnings per share (cents)* 482,7 903,2
Dividends per share paid to shareholders (cents)
- Interim dividend paid in March 2003/2002 25 40
- Final dividend proposed in September 2003/2002 25 40
*Determination of headline earnings
Attributable earnings per income statement as
above 136 372 501 954
Exceptional item - (248 278)
Net profit on disposal or impairment of assets (1 215) (788)
Headline earnings 135 157 252 888
Ordinary shares in issue (million) 28,0 28,0
Net asset value per share (rand) 49,8 47,8
Capital expenditure (R million) 174,4 193,1
Capital commitments (R million) 171,9 349,0
CONSOLIDATED BALANCE SHEET
At At
30 June 2003 30 June 2002
Audited Audited
R"000 R"000
ASSETS
Non-current assets
Property, plant and equipment 1 052 072 952 198
Intangible assets 4 209 4 752
Environmental rehabilitation trust funds 12 547 12 829
Investments 147 152 179 051
1 215 980 1 148 830
Current assets
Cash resources 96 623 84 633
Other current assets 827 341 769 176
923 964 853 809
Total assets 2 139 944 2 002 639
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders" interest 1 382 513 1 325 020
Outside shareholders" interest 12 701 13 796
Share capital and reserves 1 395 214 1 338 816
Non-current liabilities
Deferred taxation 198 251 173 261
Long-term liabilities 34 865 32 032
233 116 205 293
Current liabilities
Non-interest bearing 202 992 105 129
Interest bearing 308 622 353 401
511 614 458 530
Total equity and liabilities 2 139 944 2 002 639
STATEMENT OF CHANGES IN EQUITY
Year ended Year end
30 June 2003 30 June 2002
Audited Audited
R"000 R"000
SHARE CAPITAL AND NON-
DISTRIBUTABLE RESERVES
Balance at beginning of year 90 138 52 952
Deferred taxation on listed investments 3 954 (8 176)
Net (decrease)/increase in the market value of
listed investments (59 976) 41 951
Foreign currency translation reserve (4 657) 3 411
Balance at end of year 29 459 90 138
DISTRIBUTABLE RESERVES
RETAINED INCOME
Balance at beginning of year 1 234 882 749 728
Attributable earnings 136 372 501 954
Ordinary dividends paid
No"s 91 and 92 aggregating 65 cents per share
(2002: 60 cents per share) (18 200) (16 800)
Balance at end of year 1 353 054 1 234 882
Per balance sheet 1 382 513 1 325 020
CONSOLIDATED CASH FLOW STATEMENT
Year ended Year end
30 June 2003 30 June 2002
Audited Audited
R"000 R"000
Cash generated from operations 257 031 101 785
Cash (utilised in)/generated by investing
activities (198 276) 30 493
Cash utilised in financing activities (46 765) (125 668)
Increase in cash for the year 11 990 6 610
Cash resources at beginning of year 84 633 78 023
Cash resources per balance sheet 96 623 84 633
DECLARATION OF FINAL DIVIDEND
Final Dividend No. 93 of 25 cents per share was declared on Monday, 15
September 2003. The last date to trade "cum" dividend in order to participate in
the dividend will be Friday, 3 October 2003. The company"s ordinary shares will
commence trading "ex" dividend from the commencement of business on Monday, 6
October 2003 and the record date will be Friday, 10 October 2003. Share
certificates may not be dematerialised or rematerialised between Monday, 6
October 2003 and Friday, 10 October 2003 (inclusive of both days) and the
dividend is payable on Monday, 13 October 2003.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
Johannesburg
15 September 2003
COMMENTARY
Results
Assore"s prime investment, which it partially consolidates, remains its 45,7%
holding in Assmang, over which it exercises joint control with Avmin. In
addition, Assore receives income from its role as marketing agent for Assmang"s
products, which have increased to record levels in all sectors as detailed below
under Sales Volumes.
Assmang recently reported results for the year ended 30 June 2003, reflecting
an encouraging performance in terms of increased production and improved sales.
However, this was more than offset by the strengthening of the SA rand against
the US dollar in the year under review, and resulting in a 54% decline in
headline earnings on the previous year. Accordingly, Assore has reported 15,8%
growth in turnover to R1 753,0 million (2002: R1 514,4 million) for the year and
a 46,6% reduction in headline earnings at R135,2 million (2002: R252,9 million)
equivalent to 482,7 cents per share (2002: 903,2 cents).
Attributable earnings also decreased on the previous year, particularly
against the exceptional profit of R248,3 million included in earnings for the
previous year as a result of the disposal by Assmang of its Dwarsrivier PGM
rights.
Sales Volumes
Volumes of product sold on behalf of Assmang were as follows:
2003 2002
"000 metric tons "000 metric tons
Iron ore 5 263 4 775
Manganese ore (excluding
transfers to Cato Ridge Works) 1 171 993
Manganese alloys 206 187
Charge chrome 244 190
Capital Expenditure
Capital expenditure, mainly at Assmang, exceeded R338,0 million
(2002: R372,0 million), during the year under review. The focus was primarily on
the completion of the new shaft complex at Nchwaning manganese mine, scheduled
for completion during May 2004, at a total cost of
R601 million, excluding capitalised interest.
Assmang has invested R2,1 billion over the past five years of which
R338 million (2002: R372 million ) was spent in the current year. Current and
additional enhancement projects include the completion of the Nchwaning shaft
complex, the possible construction of an underground mine at Dwarsrivier chrome
mine to replace the existing opencast mine and the development of additional
exploitable reserves at the iron ore division.
Borrowings
Interest bearing debt decreased marginally to R308,6 million
(2002: R353,4 million) and is well within the Group"s borrowing limits.
Outlook
Demand for the Group"s products remains fairly buoyant and tonnages in the
2003/2004 year appear likely to approximate those of the previous financial
year.
US dollar prices for both iron ore and manganese ore have already risen, and,
demand for manganese alloys should remain steady, but an oversupply situation
could develop, putting pressure on prices.
The stronger rand together with low charge chrome stocks world wide resulted
in US dollar prices rising by approximately 50% over the past year. Better
margins for ferrochrome could flow from improved utilisation of available
capacity and higher prices.
Overall, the markets in which the Group trades appear likely to remain
healthy over the coming financial year. However, as has been demonstrated over
the past few years, the relationship between the rand and the US dollar will
remain a crucial determinant of the company"s profitability. Management will
continue to focus upon effective cost controls.
The management of Assmang has committed itself to exploring various expansion
scenarios in relation to its iron ore assets in the Northern Cape. A heads of
agreement has been entered into with Kumba Resources for the purposes of
exchanging technical information and evaluating certain of these expansion
possibilities.
Dividends
An interim dividend of 25 cents (2002 : 40 cents) per share was declared and
paid during the year, and as reported in this announcement, a final dividend of
25 cents (2002: 40 cents) per share was declared payable to shareholders on 13
October 2003. Both dividends were affected by the lower earnings for the year
and are not comparable with the previous year which included an exceptional
distribution of the surplus realised on the disposal of the Dwarsrivier PGM
rights.
Accounting Policies
The Group"s financial information has been extracted from the audited Group
annual financial statements, which have been prepared in accordance with
statements of Generally Accepted Accounting Practice in South Africa and
International Accounting Standards. The accounting policies used in the
preparation of the annual financial statements are consistent with those used in
the previous year.
Audited Results
Ernst & Young has audited the Group annual financial statements and their
unqualified audit report is available for inspection at the Company"s registered
office.
Earnings Per Share
Attributable earnings per share is calculated by dividing the earnings
attributable to shareholders by the weighted average number of ordinary share in
issue during the year.
To calculate the headline earnings per share, the earnings attributable to
shareholders is adjusted for the exceptional item and net profit on disposal or
impairment of other assets.
Registered office: Transfer office:
Assore House Computershare Limited
15 Fricker Road Investor Services Division
IIlovo Boulevard 70 Marshall Street
Johannesburg 2196 Johannesburg 2001
Directors
Executive:
Desmond Sacco (Chairman), R J Carpenter (Deputy Chairman),
C J Cory (Financial), P C Crous (Technical)
Non-executive:
R A Chute, B M Hawksworth, Dr J C van der Horst
Alternate:
J W Lewis (British)
Company secretaries:
African Mining and Trust Company Limited
Assore Limited
Company registration number: 1950/037394/06
Share code: ASR ISIN code ZAE000017117
Date: 15/09/2003 05:00:09 PM Produced by the JSE SENS Department
