| Tue 22 Mar 2005, 17:00 | | Results for the period ended 31 December 2004 |
|
Good Hope - Reviewed Interim Results for the period ended 31 December 2004
GOOD HOPE DIAMONDS (KIMBERLEY) LIMITED
(Registration number. 1983/013789/06)
Share code: GDH ISIN: ZAE000050381
(`Good Hope` or `the company`)
Reviewed Interim Results for the period ended 31 December 2004
All figures in R000`s
Consolidated Income Statement
6 months 6 months Year ende
ended ended
31 Dec. 2004 31 Dec. 2003 30 June 2
(reviewed) (reviewed) (audited)
Revenue 2,000 937 1,617
Operating loss 471 3,033 5,093
Depreciation 2,329 1,679 3,067
Loss on discontinued operations 3,759 - -
Net interest (received)/paid (24) 589 766
Goodwill amortised 1,187 907 2,374
Attributable loss 7,722 6,208 11,300
Number of shares in issue 122,000 122,000 122,000
Headline loss per share (cents) 2.28 4.35 7.11
Loss per share (cents) 6.33 5.09 9.26
Reconciliation between loss
and headline loss
Attributable loss 7,722 6,208 11,300
Goodwill amortised (1,187) (907) (2,374)
Loss on discontinued operations (3,759) - -
Loss on disposal of property,
plant and equipment - - (247)
Headline loss 2,776 5,301 8,679
Consolidated Balance Sheet
31 Dec. 2004 31 Dec. 2003 30 June 2
(reviewed) (reviewed) (audited)
Assets
Non-current assets 93,933 119,887 116,835
Property, plant and equipment 92,212 118,166 115,114
Investments 1,721 1,721 1,721
Current assets 8,806 3,478 2,738
Operating assets 8,768 3,402 2,681
Cash and cash equivalents 38 76 57
Total Assets 102,739 123,365 119,573
Equity and Liabilities
Capital and reserves 79,196 93,817 88,725
Share capital and premium 125,955 125,955 125,955
Non-distributable reserves 8,276 10,083 10,083
Accumulated loss (55,035) (42,221) (47,313)
Non-current liabilities
Interest bearing borrowings 19,559 24,390 25,810
Current liabilities 3,984 5,158 5,038
Operating liabilities 3,388 4,606 4,423
Interest bearing liabilities 596 552 615
Total Equity and Liabilities 102,739 123,365 119,573
Net asset value per share (cents) 64.91 76.90 72.73
Statement of Changes in Equity
6 months 6 months Year ende
ended ended
31 Dec. 2004 31 Dec. 2003 30 June 2
(reviewed) (reviewed) (audited)
Balance at
beginning of period 88,725 25 25
Realisation of premium on
acquisition of subsidiaries (1,807) - -
Issue of shares - 100,000 100,000
Net loss for the period (7,722) (6,208) (11,300)
Balance at end of period 79,196 93,817 88,725
Consolidated Cash Flow Statement
6 months 6 months Year ende
ended ended
31 Dec. 2004 31 Dec. 2003 30 June 2
(reviewed) (reviewed) (audited)
Cash flow from
operating activities (9,400) (408) (1,683)
Net interest received/(paid) 24 (589) (766)
(9,376) (997) (2,449)
Cash flow from
investing activities 15,627 (110,067) (109,950)
Cash flow from
financing activities (6,251) 110,548 111,801
Net increase in cash
and cash equivalents - (516) (598)
Cash and cash equivalents
at beginning of period (558) 40 40
Cash and cash equivalents
at end of period (558) (476) (558)
Commentary
Since the acquisition of the Loxton and Frank Smith diamond mines in November
2003, it has been the stated intention of the company to dispose of its equine
interests in order to focus on the diamond mining industry. As announced on 13
September 2004, the company sold its equine interests for R10,4 million,
resulting in a loss on disposal of R3,7 million.
As previously stated, the seller of the Frank Smith mine did not meet its
obligation to ensure that the mining licence and permits were in place at the
mine. At additional cost to the company, a guarantee was supplied and
application made to the Department of Minerals and Energy for the mining licence
at Frank Smith in November 2004, and to date, the licence is still pending. The
licence is only expected to be issued by mid-2005. Without the mining licence,
the company has been unable to commence production at the Frank Smith mine.
The company has only started limited mining at the Loxton mine as most of 2004
saw the company upgrading certain equipment and the underground shafts which may
have posed a safety risk.The first half of the 2005 financial year has seen the
company stockpiling rough diamonds obtained from the processing of the dump and
the ore from underground mining at Loxton. The company has been negotiating with
a number of interested buyers for its rough, and the company expects that it
will begin selling its diamonds in the latter half of the 2005 financial year.
In terms of an agreement with the shareholder providing funding for the group,
the group structure had to be altered. Diamond Land Mining (Pty) Ltd was
unbundled during this period, resulting in the company holding the shares
directly in Don Diamonds (Pty) Ltd and Good Hope Diamonds & Estates (Pty) Ltd,
the owners of the Loxton and Frank Smith mines respectively.
The group has not yet finalised its Black Empowerment Partner, however,
negotiations have progressed to the stage where details of the prospective BEE
partner have been submitted to the Department of Minerals and Energy for its
approval. The name of the group`s BEE partner is expected to be announced soon.
Dividend
No dividend has been declared nor is one recommended in respect of the financial
period under review.
Board of Directors
On 15 October 2004, Pieter Keeve resigned as a non-executive director of the
company, and Joe Kossowsky and Yosef Kossowsky were appointed non-executive
directors.
These appointments were approved by the shareholders at the annual general
meeting held on 21 January 2005.
Auditors
The shareholders, at the annual general meeting held on 21 January 2005,
approved the termination of RA Hellmann & Co. and the appointment of Ashton
Chartered Accountants Inc. as the auditors of the company for the current
financial year.
Accounting Policies and Review
The accounting policies comply with International Financial Reporting Standards,
and have been consistently applied.
The financial information set out above has been reviewed, but not audited, by
the group`s auditors, Ashton Chartered Accountants Inc. The review report is
available for inspection at the registered office of the Company.
On behalf of the board of directors
G Schauder
Hyde Park
Company Secretary
22 March 2005
Directors: E Cambouris (Managing), G Schauder (Financial), J Kossowsky*, Y
Kossowsky*, F Pieterse* ( American * Non-executive)
Registered office:
Ashton House, 51 Lebombo Street, Ashlea Gardens, 0181
Transfer secretaries:
Computershare Investor Services 2004 (Proprietary) Limited, 70 Marshall Street,
Johannesburg, 2001
Sponsor:
LPC Manhattan Moela (Pty) Ltd, 4th Floor, South Office Tower, Hyde Park Shopping
Centre, Hyde Park, 2196
Date: 22/03/2005 05:00:20 PM
Produced by the JSE SENS Department
