|
PALABORA MINING - ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003
Palabora Mining
Company Limited and its Subsidiaries
(Incorporated in the Republic of South Africa)
(Reg. No. 1956/002134/06)
Share code:PAM ISIN: ZAE000005245
(`Palabora` or `the Company`)
ABRIDGED AUDITED RESULTS
for the YEAR ended 31 DECEMBER 2003
R M Maruma D S Sadler
Chairman Managing Director
29 June 2004
Directors:
R M Maruma (Chairman), D S Sadler** (Managing Director), D A Farnaby, O L
Groeneveld**, M D Humphries, S Langa, K Marshall*, G M Negota, J C Posthumus
(appointed 27 January 2004), J E Rickus*, J H K Sachikonye+, J C M van Gaalen#
(resigned 27 January 2004) (Alt: B K Wood), R M Whyte* (Alt: F B Weldon), C N
Zungu
Company secretary: EBR Hone
* British **Australian + Zimbabwean # Dutch
The following changes were made to the Board subsequent to the release of the
preliminary report on 30 January 2004:
D S Sadler resigned 23 February 2004; K Marshall was appointed as Managing
Director on 23 February 2004; M D Humphries resigned on 22 April 2004 and S M
Din was appointed as Chief Financial Officer on 22 April 2004.
Registered Office:
1 Copper Road
Phalaborwa
1389
Postal Address:
P O Box 65
Phalaborwa 1390
Transfer secretaries: Computershare Limited, 70 Marshall Street, Johannesburg,
2001, P.O. Box 61051, Marshalltown, 2107
AUDITED Group results
Abridged income statement
2003 2002
R000 R000
Revenue 1 554 727 2 121 307
Operating costs 1 402 594 1 586 598
Depreciation 126 413 133 187
Operating profit 25 720 401 522
Interest received 215 5 495
Interest paid (93 003) (31 283)
Foreign exchange gains 14 366 27 306
Provisions (30 495) (40 976)
(Loss)/profit before taxation (83 197) 362 064
Taxation 48 505 (105 211)
Current (17 871) (25 010)
Deferred tax 66 376 (80 201)
(Loss)/profit after taxation (34 692) 256 853
(Loss)/earnings per share (cents) (122) 907
Write back of profit on disposal of fixed (30) (68)
assets - net of tax (cents)
Reversal of provision for Palabora (69) -
Foundation donation (cents)
Headline(loss)/earnings per share (221) 839
(cents)(7)
Weighted average shares in issue 28 316 28 316
Reconciliation of Headline (loss) / earnings
Profit before Taxation and lease Profit after
taxation consideration taxation
2003 2002 2003 2002 2003 2002
R 000 R 000 R 000 R 000 R 000 R 000
Earnings (83 197) 362 064 48 505 (105 211) (34 692) 256 853
per the
financial
statements
Profit on (12 777) (25 360) 4 285 5 966 (8 492) (19 394)
disposal
of fixed
assets
Reversal - - - (19 400) -
of
provision (19 400)
for
donation:
Palabora
Foundation
Headline (115 374) 336 704 52 790 (99 245) (62 584) 237 459
(loss)
earnings
Notes:
1. Accounting policies
The audited consolidated financial statements are prepared on the historical
cost basis. During the year, Palabora adopted the provisions of AC133,
`Financial Instruments: Recognition and Measurement`. As a consequence,
investments are now stated in the balance sheet at fair market value. The impact
of the adoption of AC133 resulted in an increase in investments amounting to R61
million. Unrealised gains and losses on the revaluation are recognised through
the statement of changes in equity. All other accounting policies used are
consistent with those used in the audited financial statements for the year
ended 31 December 2002. The audited results have been prepared in accordance
with South African Statements of Generally Accepted Accounting Practice.
2. Audit opinion
The group year-end financial results have been audited by PricewaterhouseCoopers
Inc. A copy of their unqualified audit report is available for inspection at the
company`s registered office.
2003 2002
R000 R000
3. Net debt
Current portion of long term loans 294 212 355 450
Non current portion of long term loans 1 153 707 726 881
Total long term loans 1 447 919 1 082 331
Bank overdrafts 388 660 391 816
Cash and cash equivalents (16 602) (39 019)
Net debt 1 819 977 1 435 128
In 2001 the Company arranged an unsecured long-term loan with a group of
domestic and international banks. The facility consisted of a US$90 million
tranche and a Rand tranche of R283 million.
The loan is repayable in six equal half yearly instalments of US$15 million and
R47 million. The first repayment was made in June 2003 and the second repayment
in December 2003. The interest rate is Libor / Jibor plus 1,5%. During the first
half of 2003, Rio Tinto, the Company`s major shareholder, agreed to provide a
short-term facility of up to US$60 million at an interest rate of Libor plus 5%.
US$55 million had been drawn and this loan was repaid from the proceeds of a
rights offer of debentures completed in September 2003. R849 million was raised
by way of a renounceable rights offer to shareholders at an issue price of
R1,000 per convertible debenture at an interest rate of Jibar plus 5%.
4. Contingencies and commitments
In the 2002 Annual Financial Statements a contingent liability was disclosed
relating to payments made to former employees for early voluntary retirement. In
the current financial year Palabora provided R37 million to recognise this
liability.
5. Holding company
The immediate holding Company is Palabora Holdings Limited and the ultimate
holding Company is Rio Tinto plc, which is incorporated in the United Kingdom.
6. Share capital
The directors are authorised to issue unissued shares until the next annual
general meeting. On 16th July 2003 shareholders approved a special resolution to
increase the authorised share capital of the Company to 100,000,000 ordinary
shares of R1 each and an ordinary resolution placing the newly issued shares
under the control of the directors.
7. Headline loss
The calculation of headline (losses)/earnings per share is derived from
consolidated net loss after taxation of R34.7 million (2002: net profit of
R256.9 million) adjusted for any non-operational losses or gains, divided by the
number of shares in issue. 2003 year losses (2002: earnings) have been adjusted
for the post taxation impact of profit on disposal of fixed assets of R8.5
million (2002: R19.4 million) and the release of provisions for donations to the
Palabora Foundation of R19.4 million. Headline losses for the year ended 31
December 2003 are R62.5 million (2002: headline earnings of R237.5 million).
Abridged balance sheet
2003 2002
R000 R000
Employment of capital
Current assets
Stores 59 322 47 737
Product inventories 374 940 254 607
Accounts receivable 220 725 282 456
Taxation 1 400 3 030
Cash and cash equivalents 16 602 39 019
672 989 626 849
Non-current assets
Mining assets 4 575 661 4 284 701
Investment - unlisted 118 043 54 971
Total assets 5 366 693 4 966 521
Liabilities and shareholders` equity
Current liabilities
Accounts payable 298 279 217 900
Provisions 26 799 39 227
Current portion of long term loans 294 212 355 450
Taxation 6 220 7 403
Group companies - related parties 13 243 8 214
Bank overdraft 388 660 391 816
1 027 413 1 020 010
Non-current liabilities
Provision for close down costs and 196 817 185 147
restoration costs
Provision for post retirement medical 172 209 159 760
benefits
Deferred taxation 798 830 865 535
Long-term loans 1 153 707 726 881
Total liabilities 3 348 976 2 957 333
Total shareholders` equity 2 017 717 2 009 188
Total equity and liabilities 5 366 693 4 966 521
Summarised cash flow
2003 2002
R000 R000
Cash (utilised in)/generated from (4 467) 588 917
operating activities
Cash utilised in investing activities (555 508) (741 996)
Replacement of mining assets (118 142) (195 323)
Development expenditure (450 601) (570 075)
Other investing activities 13 235 23 402
Cash flow from financing activities 540 714 18
Long and short term loans raised 1 268 629 18
Long and short term loans re-paid (727 915) -
Net decrease in cash and cash equivalents (19 261) (153 061)
Cash and cash equivalents at beginning of (352 797) (199 736)
year
Cash and cash equivalents at end of year (372 058) (352 797)
Statement of changes in equity for the year ended 31 December 2003
Share Distri-
butable
Capital Other
&
Premium Reserves Reserves Total
R000 R000 R000 R000
Balance 1 January 28 891 134 244 1 846 053 2 009 188
2003
Revaluation of - 60 795 - 60 795
investments
Currency translation - (17 759) - (17 759)
difference
Other movements - 185 - 185
Net loss for the year - - (34 692) (34 692)
Balance 31 December 28 891 176 788 1 811 361 7 017 717
2003
Statement of changes
in equity for the
year ended 31
December 2002
Balance 1 January 28 891 174 642 1 589 200 1 792 733
2002
Currency translation - (40 398) - (40 398)
difference
Net profit for the - - 256 853 256 853
year
Balance 31 December 28 891 134 244 1 846 053 2 009 188
2002
Selected statistics
2003 2002
R000 R000
All tonnes are metric tonnes
Production and sales
Ore mined (millions of tonnes)
Surface 5.5 6.7
Underground 6.0 3.3
Copper in concentrate produced (thousands of 52.4 52.2
tonnes)
Cathode produced (thousands of tonnes) 73.4 81.6
Cathode sold (thousands of tonnes) 76.6 83.4
Contained copper sold (thousands of tonnes) 77.1 84.3
Vermiculite sold (thousands of tonnes) 174 190
ZBS sold (thousands of tonnes) 1.1 1.1
Average copper price realised (USc/lb) 84.5 74.7
Average rand/dollar exchange rate 7.56 10.54
Average copper price realised per tonne (ZAR) 14 084 17 355
Cash cost per tonne - delivered (ZAR) 15 223 14 476
Average vermiculite prices realised per tonne 1 429 1 911
(ZAR)
Average ZBS prices realised per tonne (ZAR) 7 251 10 104
Capital expenditure & commitments
Capital expenditure (R million) 518 695
Approved expenditure at end of each year 277 381
(R million)
Contracts placed at end of each year (R million) 185 293
Interest capitalised (R million) 53 71
Exchange gain/(loss) capitalised (R million) 149 302
Investments
Fair value of unlisted investments (R 118 043 86 902
thousands)
Share capital (6)
Ordinary shares of R1 each (thousands) - 100 000 28 500
Authorised
Ordinary shares of R1 each (thousands) - Issued 28 316 28 316
Net asset value per share R71.24 R70.96
Segmental reporting
Industrial
Copper Minerals
R000 R000
31.12.03 31.12.02 31.12.0 31.12.02
3
Profit and Loss
Revenues 1 082 735 1 459 146 356 802 535 249
Cost and expenses 1 140 954 1 156 909 333 338 457 495
Operating (loss)/profit (58 219) 302 237 23 464 77 754
Other Total
R000 R000
31.12.03 31.12.02 31.12.03 31.12.02
Profit and Loss
Revenues 115 190 126 912 1 554 727 2 121 307
Cost and expenses 54 715 105 381 1 529 007 1 719 785
Operating (loss)/profit 60 475 21 531 25 720 401 522
Net interest paid (92 788) (25 788)
Other costs and (16 129) (13 670)
provisions
(Loss)/profit before tax (83 197) 362 064
Taxation 48 505 (105 211)
Net (loss)/profit for the (34 692) 256 853
year
The segmental split on a geographical basis is based on the country in which the
order is received.
South Africa America
R000 R000
31.12.03 31.12.02 31.12.03 31.12.02
Profit and Loss
Revenues 1 227 439 1 632 754 163 241 280 917
Cost and expenses 1 367 646 1 344 112 154 743 255 506
Operating (loss)/profit (140 207) 8 498 25 411
before tax 288 642
Taxation 65 852 (80 945) (2 907) (9 206)
Net (loss)/profit for the (74 355) 207 697 5 591 16 205
year
United Kingdom Total
R000 R000
31.12.03 31.12.02 31.12.03 31.12.02
Profit and Loss
Revenues 164 047 207 636 1 554 727 2 121 307
Cost and expenses 115 535 159 625 1 637 924 1 759 243
Operating (loss)/profit 48 512 48 011 (83 197) 362 064
before tax
Taxation (14 440) (15 060) 48 505 (105
211)
Net (loss)/profit for 34 072 32 951 (34 692) 256 853
the year
Notice of annual general meeting
The Annual General Meeting will be held at 08h00 on Wednesday, 28 July 2004 in
the boardroom, Cleveland Centre, Palabora Mine, Phalaborwa.
These results are also available on our website at: www.palabora.co.za
Date: 29/06/2004 04:31:43 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
