| Tue 15 Feb 2005, 16:19 | | Interim results |
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Assore Limited - Interim results for the half-year ended 31 December 2004
ASSORE LIMITED
(Company registration number: 1950/037394/06)
Share code: ASR ISIN: ZAE000017117
INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2004
* HEADLINE EARNINGS INCREASED FROM R23,7 MILLION TO R195,5 MILLION
* HIGHER US DOLLAR PRICES EXPECTED FOR MANGANESE AND IRON ORES
CONSOLIDATED BALANCE SHEET
At At At
31 December 31 December 30 June
2004 2003 2004
Unaudited Unaudited Audited
R` 000 R` 000 R` 000
ASSETS
Non-current assets
Property, plant, equipment
and intangible assets 1 280 682 1 116 935 1 206 428
Environmental rehabilitation
trust funds 13 694 12 884 13 503
Listed investments 188 258 183 304 165 715
1 482 634 1 313 123 1 385 646
Current assets
Inventories 644 399 558 145 520 892
Trade and other receivables 409 049 324 482 485 113
Cash resources 178 183 133 460 166 263
1 231 631 1 016 087 1 172 268
Total assets 2 714 265 2 329 210 2 557 914
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders`
interest 1 755 632 1 428 255 1 549 309
Outside shareholders`
interest 28 347 13 484 42 560
Share capital and reserves 1 783 979 1 441 739 1 591 869
Non-current liabilities
Deferred taxation 284 139 227 229 240 576
Long-term liabilities 58 507 35 360 55 425
342 646 262 589 296 001
Current liabilities
Interest bearing 317 222 424 744 379 166
Non-interest bearing 270 418 200 138 290 878
587 640 624 882 670 044
Total equity and liabilities 2 714 265 2 329 210 2 557 914
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half-year ended Year ended
31 December 31 December 30 June
2004 2003 2004
Unaudited Unaudited Audited
R` 000 R` 000 R` 000
SHARE CAPITAL AND
NON-DISTRIBUTABLE
RESERVES
Balance at beginning of period 39 012 29 459 29 459
Net increase in the market
value of listed investments 22 031 36 152 18 065
Deferred taxation on
changes in market value
of listed investments (2 730) (5 484) (2 730)
Foreign currency
translation reserve (165) (1 845) (5 782)
Balance at end of period 58 148 58 282 39 012
DISTRIBUTABLE RESERVES
Retained income as previously
reported 1 510 297 1 353 054 1 353 054
IFRS conversion adjustment - 118 236
Restated retained income 1 510 297 1 353 172 1 353 290
Attributable earnings for
the period 199 787 23 801 169 607
Ordinary dividend paid
(No. 95 aggregating
45 cents per share
2003 : 25 cents per share) (12 600) (7 000) (12 600)
Balance at end of period 1 697 484 1 369 973 1 510 297
PER BALANCE SHEET 1 755 632 1 428 255 1 549 309
CONSOLIDATED INCOME STATEMENT
Year
Half-year ended ended
31 December 31 December 30 June
2004 2003 2004
Unaudited Unaudited Audited
R` 000 R` 000 R` 000
Turnover 1 342 874 854 474 2 228 090
Net operating profit 330 583 72 141 329 501
Finance costs (15 316) (27 098) (25 765)
Dividends received 1 768 1 957 5 057
Net profit before taxation 317 035 47 000 308 793
Taxation (101 959) (18 317) (99 583)
Net profit after taxation 215 076 28 683 209 210
Outside shareholders`
share of net profit (15 289) (4 882) (39 603)
Attributable earnings
transferred to statement
of changes in equity 199 787 23 801 169 607
Earnings per share (cents) 713,5 85,0 605,7
Headline earnings
per share (cents) * 698,1 84,6 583,7
Dividends paid per share (cents) 45 25 45
* Determination of
headline earnings
Attributable earnings per
income statement as above 199 787 23 801 169 607
Net profit on disposal of assets (4 318) (125) (6 162)
Headline earnings 195 469 23 676 163 445
Ordinary shares in
issue (million) 28,0 28,0 28,0
Net asset value per
share (Rand) 63,7 51,5 56,9
Capital expenditure (R million) 140,4 101,5 237,0
Capital commitments (R million) 178,5 189,7 204,3
CONSOLIDATED CASH FLOW STATEMENT
Half-year ended Year ended
31 December 31 December 30 June
2004 2003 2004
Unaudited Unaudited Audited
R` 000 R` 000 R` 000
Cash generated from
operations 234 049 22 391 225 690
Cash utilised in investing
activities (130 841) (101 675) (232 003)
Cash (utilised in)/generated
by financing activities (91 288) 116 121 75 953
Increase in cash for period 11 920 36 837 69 640
Cash resources at beginning
of period 166 263 96 623 96 623
Cash resources per
balance sheet 178 183 133 460 166 263
DECLARATION OF INTERIM DIVIDEND
Interim dividend No. 96 of 50 cents per share was declared on Tuesday, 15
February 2005. The dividend has been declared in the currency of the Republic
of South Africa and, in accordance with STRATE, the following dates apply:
The last date to trade to qualify for the dividend (and for changes of address
or dividend instructions) will be Friday, 11 March 2005.
The company`s ordinary shares will commence trading `ex` dividend from the
commencement of business on Monday, 14 March 2005.
The record date will be Friday, 18 March 2005.
Dividend cheques in payment of this dividend to holders of certificated shares
will be posted on or about Tuesday, 22 March 2005. Electronic payment to
holders of certificated shares will be undertaken simultaneously.
Holders of dematerialised shares will have their accounts at their Central
Securities Depository Participant or broker credited on Tuesday, 22 March
2005.
Share certificates may not be dematerialised or rematerialised between Monday,
14 March 2005 and Friday, 18 March 2005, both days inclusive.
On behalf of the board
Desmond Sacco C J Cory
Chairman Chief Executive Officer
Johannesburg
15 February 2005
COMMENTARY
RESULTS
Earnings for the six months to 31 December 2004 increased from R23,8 million
to R199,8 million, due mainly to the significantly higher contribution from the
group`s 45,7% interest in Assmang Limited (`Assmang`). The results of Assmang
for the half-year ended 31 December 2004 were published on Tuesday, 15 February
2005, showing an increase in headline earnings for the first six months from
R4,0 million to R353,0 million. The increase is directly attributable to
significantly higher US Dollar prices for manganese alloys and increased sales
volumes for manganese ore during the period. These increases resulted mainly
from stronger demand in the Far East, in particular China, and turnover and
commission income were affected accordingly. The higher earnings were
achieved despite the stronger Rand/US Dollar exchange rate during the period,
which strengthened on average from R6,98/US$ in the corresponding period of
the previous year to R6,14/US$ for the period under review.
SALES VOLUMES
Sales volumes for the period under review are set out in the table below.
Half-year % increase/
31 December (decrease)
2004 2003
Tons Tons
Manganese ore * 767 986 662 867 16
Iron ore 2 540 595 2 493 824 2
Manganese alloys 105 272 113 452 (7)
Charge chrome 104 371 126 860 (18)
*Excludes internal transfers to Cato Ridge Ferromanganese Works
CAPITAL EXPENDITURE
Assmang continued its significant capital expenditure programme during the
period, spending R285,7 million (six months to 31 December 2003 - R208,1
million). Of this expenditure, R110,4 million was spent on the completion of
the Nchwaning III shaft complex, which commenced production in the previous
year and will shortly reach planned production levels. Other significant
projects include the development of additional mineable reserves for the Iron
Ore Division and the construction of the Dwarsrivier Underground Chrome Mine,
which commenced with the initial phases of production in January 2005 and is
expected to be completed in the 2005/2006 financial year.
OUTLOOK
Markets for the group`s products remain buoyant and tonnages for the remaining
six months should exceed those of the period under review, in line with the
continued strong demand from the Far East. Prices for manganese ore and iron
ore are expected to increase during the remainder of the financial year while
prices for manganese alloys are expected to weaken. However, earnings remain
largely exposed to changes in the Rand/US Dollar exchange rate.
DIVIDENDS
The results in this announcement include the final dividend of 45 cents (2003:
25 cents) per share which was declared on 1 September 2004 and paid to
shareholders on 27 September 2004. Based on the increased earnings for the
period, an interim dividend of 50 cents (2004: 20 cents) per share was declared
to shareholders on 15 February 2005. This dividend is not included in the
results in accordance with the group`s accounting policies for dividends.
ACCOUNTING POLICIES
The financial information included in this announcement has been prepared in
accordance with International Financial Reporting Standards (`IFRS`). The
accounting policies used are consistent with the previous financial period
except that the group has adopted the requirements of IFRS with retrospective
effect to 1 July 2003. The effect of this change was an increase in profit
for the half-year under review of R118 000 as goodwill is no longer written off
in accordance with IFRS. For the same reasons equity brought forward has
increased by R236 000 and comparative figures have been adjusted accordingly.
Directors
Executive: Desmond Sacco (Chairman), R J Carpenter (Deputy Chairman),
C J Cory (Chief Executive Officer),
P C Crous (Technical and Operations)
Non-executive: P N Boynton, B M Hawksworth, Dr J C van der Horst
Alternate: J W Lewis (British)
Registered office: Transfer office:
Assore House Computershare Investor
15 Fricker Road Services 2004 (Pty) Ltd
Illovo Boulevard 70 Marshall Street
Johannesburg 2196 Johannesburg 2001
Company secretaries:
African Mining and Trust Company Limited
Sponsor
Standard Bank
