| Thu 10 Feb 2005, 9:32 | | Petmin - Reviewed interim results for the six mont |
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Petmin - Reviewed interim results for the six months ended 31 December 2004
PETRA MINING LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1972/001062/06)
Share code: PET ISIN: ZAE000010237
(`Petmin` or `the company`)
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004
* Reconstituted Petmin completes first acquisition
* NAV increases by 103 per cent since year end
* HDSA shareholding increases to 47 per cent
ABRIDGED INCOME STATEMENTS
Reviewed Unaudited Audited
Six months Six months Year
ended ended ended
31/12/04 31/12/03 30/06/04
R`000 R`000 R`000
Turnover 20 608 - -
Net operating profit/(loss) 2 004 (890) (2 536)
Interest received 577 1 617 2 514
Interest paid (204)
Net profit/(loss) before taxation 2 377 727 (22)
Taxation (521) (218) (216)
Net profit/(loss) after taxation 1 856 509 (238)
Earnings/(loss) and dividend
per ordinary share
Shares in issue (millions) 186 80 97
Weighted average number
of shares (millions) 165 80 87
Fully diluted 201 80 87
Earnings/(loss) per share
Net profit/(loss) attributable to
ordinary shareholders (R`000) 1 856 509 (238)
Earnings per share (cents) 1.12 0.60 (0.27)
Fully diluted 0.92 0.60 (0.27)
Headline earnings/(loss) per share
Net profit/(loss) attributable to
ordinary shareholders (R`000) 1 856 509 (238)
1 856 509 (238)
Headline earnings/(loss)
per share (cents) 1.12 0.60 (0.27)
Fully diluted 0.92 0.60 (0.27)
Dividends paid per share
Dividends paid (R`000) - - -
Dividends paid per share (cents) - - -
ABRIDGED BALANCE SHEETS
Reviewed Unaudited Audited
31/12/04 31/12/03 30/06/04
R`000 R`000 R`000
Assets
Non-current assets
Fixed assets 77 069 - -
Undeveloped properties 33 500
Current assets 47 149 27 640 32 230
Trade and other receivables 16 436 672 759
Stock 4 918 - -
Cash resources 25 795 26 968 31 471
Total assets 157 718 27 640 32 230
Equity and liabilities
Capital and reserves 97 745 26 901 25 104
Issued share capital 46 578 20 000 24 250
Share premium 18 575 87 937
Non-distributable reserves 24 669 6 000 -
Fair value reserve - - (6 150)
Retained earnings 7 923 814 6 067
Preference shares 13 000 - -
Long-term liabilities 23 109 - -
Deferred taxation 3 237 - -
Current liabilities 20 627 739 7 126
Trade and other payables 19 984 520 760
FEC liability - - 6 150
Taxation 643 219 216
Total equity and liabilities 157 718 27 640 32 230
Net asset value per share (cents) 52,55 33,63 25,88
ABRIDGED CASH FLOW STATEMENTS
Reviewed Unaudited Audited
Six months Six months Year
ended ended ended
31/12/04 31/12/03 30/06/04
R`000 R`000 R`000
Net cash flows from
operating activities 5 294 (9 837) (10 434)
Cash flows from investing activities
Cash held by subsidiary on acquisition 19 460 - -
Cash paid for subsidiary (34 125) - -
Fixed assets purchased (1 379) - -
Cash flows from investing activities (16 044) - -
Net cash flows from financing activities 5 074 - 5 100
Net movement in cash (5 676) (9 837) (5 334)
Cash at beginning of period/year 31 471 36 805 36 805
Cash at end of period/year 25 795 26 968 31 471
ABRIDGED STATEMENTS OF CHANGES IN EQUITY
Non-distri- Fair
Share Share butable value Retained
R`000 capital premium reserves reserve earnings Total
Balance at 31 Dec 2003 20 000 87 6 000 - 814 26 901
Balance at 30 June 2004 24 250 937 - (6 150) 6 067 25 104
Balance at 1 July 2004 24 250 937 - (6 150) 6 067 25 104
- Shares issued to
acquire SamQuarz 21 111 16 889 - - - 38 000
- General issue of
shares for cash 1 217 749 - - - 1 966
- Capitalised against
investment in SamQuarz - - - 6 150 - 6 150
- Net profit for the period - - - - 1 856 1 856
- Negative goodwill - - 24 669 - - 24 669
Balance at 31 Dec 2004 46 578 18 575 24 669 - 7 923 97 745
COMMENTS
1. Introduction
This interim report for the six months ended 31 December 2004 includes the
consolidated results of SamQuarz (Pty) Ltd (`SamQuarz`) and Petmin, subsequent
to the acquisition of SamQuarz that was completed on 24 September 2004, and
represents the first set of results since Petmin was converted from a cash shell
to a Mining and Exploration Company.
2. Review of results
The interim results of the group as set out above have been reviewed by the
company`s auditors, PricewaterhouseCoopers Inc., as required by the JSE
Securities Exchange South Africa. The review report is available for inspection
at the company`s registered office.
The comparative figures show the results of Petmin as a cash company with the
only income being interest earned. With the completion of the SamQuarz
acquisition, the newly constituted Petmin group once again became an operating
mining group. The inclusion of SamQuarz`s results from the effective date of the
acquisition has resulted in the increase in earnings per share of 86.7% and
increase in net asset value per share of 56.3% between the current period and
the comparative period.
3. Acquisition of SamQuarz and historically disadvantaged South African (`HDSA`)
shareholding
In previous public announcements Petmin has stated the rationale for the
SamQuarz acquisition, namely, to acquire cash generative assets in order to
pursue Petmin`s stated objective of becoming an HDSA controlled junior mining
and exploration company.
Persuant to the acquisition of SamQuarz the HDSA holding in Petmin,
including shares held by New Africa Mining Fund Nominees and managed by Decorum
Capital Partners (Pty) Ltd, is 46.27%. In addition, a further 46.8 million share
options are currently held by HDSA controlled companies that will, if exercised
take the shareholding of HDSA`s in Petmin to 56.0%.
During the twelve month period ending 31 December 2004 SamQuarz has
consistently exceeded its monthly profit targets. It is expected that SamQuarz
should continue to be a stable income generating asset for Petmin.
4. NAV of Petmin
The Net Asset Value and Tangible Net Asset Value of Petmin have increased
from 25.88 cents per share on 30 June 2004 to 52,55 cents per share on 31
December 2004, amounting to a 103% increase.
5. Term loan
Subsequent to the completion of the SamQuarz acquisition, the newly
constituted Petmin group has secured a six year term loan facility with Standard
Bank of South Africa of R40 million at prime.
6. SamQuarz management restructuring
The restructuring of the management of SamQuarz has been completed and
Petmin is confident that with the appointment of Mr Johan Gloy as Managing
Director (previously General Manager) and Mrs Marita Conradie as Financial
Director, SamQuarz has a highly motivated and competent Management team.
7. Preference shares
Pursuant to the completion of the SamQuarz acquisition, the junior loans of
SamQuarz amounting to R40 million as detailed in the Petmin financial statements
for the year ended 30 June 2004 were converted into redeemable preference
shares. These preference shares are redeemable at the election of SamQuarz and
there is no obligation on SamQuarz to declare any fixed dividends in respect of
these preference shares. Petmin owns preference shares with a redemption value
of R27 million and the balance of R13 million is held by third parties.
8. Accounting policy
This report has been prepared in terms of South African Statements of
Generally Accepted Accounting Practice (GAAP), and is consistent with those
applied in the financial statements for the year ended 30 June 2004.
9. Subsequent events
At the general meeting held on 12 January 2005, the requisite majority of
shareholders approved a specific issue of shares and options for cash at a price
of 45 cents per share. The financial effects of the options and shares so issued
were provided in a circular to shareholders included in the financial statements
for the group for the year ended 30 June 2004.
10. Prospects
The directors believe that Petmin is well positioned, considering its access
to own funds, HDSA status and it`s relationship with the New Africa Mining Fund
to actively pursue opportunities in the mining sector to enhance shareholder
value.
On behalf of the Board
D H Warmenhoven P J Nel Pretoria
Chief Executive Officer Chairman 8 February 2005
REGISTERED OFFICE
Parc Nouveaux, First Floor, Block C, 225 Veale Street, Brooklyn, Pretoria, 0002.
(PO Box 899, Groenkloof, 0027)
SECRETARY AND SPONSOR
River Sponsors (Pty) Limited
TRANSFER SECRETARIES
Computershare Investor Services 2004 (Proprietary) Limited
AUDITORS
PricewaterhouseCoopers Inc.
DIRECTORS: P J Nel (Non-executive Chairman), D H Warmenhoven (Chief Executive
Officer), J A Strijdom, J P Mabena, L Mogotsi, E de V Greyling
Date: 10/02/2005 08:28:49 AM
Produced by the JSE SENS Department
