SA MINERAL RESOURCES CORPORATION LIMITED - COMPANY UPDATE AND CAUTIONARY
ANNOUNCEMENT
SA MINERAL RESOURCES CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
Share code: SAM ISIN: ZAE000012019
(`Samroc` or `the company`)
COMPANY UPDATE AND CAUTIONARY ANNOUNCEMENT
Company update
On 30 March 2004 Samroc published its interim results for the six months ended
31 December 2003. The trading situation, as outlined in that announcement, has
not improved since then and the company is, as a result, currently unable to
meet its immediate financial commitments.
In order to address this, the board of directors wishes to advise that it is
involved with the following initiatives:
* The negotiations with the Industrial Development Corporation (`the IDC`)
previously reported relating to Samroc`s indebtedness to the IDC continue;
* The company intends to consult with creditors in order to agree revised
payment terms;
* The company`s head office in Irene will be closed at the end of May 2004 in
order to reduce overhead costs; and
* It is proposed to embark on a capital restructuring within the near future in
order to recapitalize the company.
The board is confident that if these initiatives are successful the company will
be able to meet its financial commitments within 12 months. An improvement in
sales, coupled with the reduction in overheads, should also lead to
profitability over the same period.
Cautionary announcement
In the light of the abovementioned circumstances and initiatives, Samroc
shareholders are advised to exercise caution when dealing in their Samroc shares
until further announcements are made.
Irene
21 May 2004
Sponsor
Sasfin Corporate Finance
A division of Sasfin Bank Limited
Date: 21/05/2004 02:39:28 PM Produced by the JSE SENS Department
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