| Tue 31 May 2005, 13:15 | | Results For Year Ended 28 February 2005 |
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Thabex - Audited Group Results For Year Ended 28 February 2005 And Further
Cautionary Announcement
THABEX EXPLORATION LIMITED
(`Thabex or the Company`)
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
Young Lions Exploring Africa
JSE share code: TBX
ISIN Code: ZAE000013686
AUDITED GROUP RESULTS FOR YEAR ENDED 28 FEBRUARY 2005 AND FURTHER CAUTIONARY
ANNOUNCEMENT
CONSOLIDATED BALANCE SHEET Year ended Year end
28 February 29 Februa
2005 20
Audited Audit
R
Assets Note
Non-current assets
Mining assets and equipment 33 737 49 88
Current assets 21 158 347 2 355 4
Inventories 661 357 1 073 3
Trading investments 467 361 405 0
Trade and other receivables 105 995 648 72
Cash and cash equivalents 19 923 634 228 3
Total assets 21 192 084 2 405 3
Equity and liabilities
Capital and reserves
Share capital 1 700 689 1 700 6
Share premium 17 202 741 17 202 7
Accumulated loss (5 574 422) (17 565 30
Ordinary shareholders` funds 13 329 008 1 338 1
Outside shareholders` interest 146 10 57
Non-current liabilities
Non-interest bearing long-term 66 540 226 74
liabilities
Current liabilities 7 796 390 829 9
Trade and other payables 1 408 915 820 5
Provisions 1 2 011 481 9 3
Taxation 4 375 994
Total equity and liabilities 21 192 084 2 405 3
Shares in issue 17 006 887 17 006 8
Net asset value per share (cents) 78.37 7.8
Net tangible asset value per share 78.37 7.8
(cents)
CONSOLIDATED INCOME STATEMENT Year ended Year ende
28 February 29 Februa
2005 20
Audited Audit
R
Revenue 427 445 211 1
Cost of sales (456 444) (185 99
Gross (loss)/profit (28 999) 25 1
Other operating income 513 672 680 0
Profit on sale of investment in 30 141
subsidiary
Exploration expenditure (66 361) (318 19
Administration expenses (2 084 524) (1 471 52
Other operating expenses (6 873) (87 59
Provision for SARB settlement 1 (2 000 000)
Operating loss (3 642 944) (1 172 11
Income from investments 807 053 75 7
(Loss) before taxation (2 835 891) (1 096 33
Taxation 1 381 707
Loss after taxation (2 835 891) (1 096 33
Outside shareholders` interest 10 432 3 90
Net loss for year (1 443 752) (1 092 431)
Weighted average of number of shares in issue 17 006 887 17 006 887
Loss per share (cents) (8,49) (6,42
Headline loss per share (cents) (8,62) (5,10)
RECONCILIATION OF HEADLINE LOSS Year ended Year ended
28 February 29 Februar
2005 200
Audited Audite
R R
Reconciliation between loss and
headline loss
Loss attributable to ordinary shareholders (1 443 752) (1 092 431)
Surplus on disposal of investment in subsidiary (30 141) -
Provision for losses in subsidiaries 2 117
Impairment losses 4 756 225 5
Headline loss (1 467 020) (866 842
CASH FLOW STATEMENT Year ended Year end
28 February 29 Februa
2005 20
Audited Audit
R
Cash tilized in operating activities
Cash (tilized in)/generated by operations (104 284) 77 89
Interest received 744 749 5 757
Net cash inflow from operating activities 640 465 83 64
Cash flow from investing activities
Additions to mining assets and equipment (2 696) (150 726
Increase in interest in associates (4 756)
Proceeds on disposal of subsidiary/business 19 222 479
Net cash (outflow)/inflow from investing 19 215 479 (150 726)
activities
Cash effects of financing activities
(Decrease)/increase in long-term loan (160 200) 158 50
Decrease in minority shareholders` interest - (3 900
Net cash (outflow)/inflow from financing (160 200) 154 600
activities
Increase in cash resources 19 695 292 87 52
Cash and cash equivalents at beginning of year 228 342 140 820
Cash and cash equities at end of year 19 923 634 228 34
STATEMENT OF CHANGES IN EQUITY Year ended Year ende
28 February 29 Februa
2005 20
Audited Audit
R
Share Capital 1 700 689 1 700 6
Share capital at beginning of year 1 700 689 1 700 68
Proceeds from issue of share -
Share Premium 17 202 741 17 202 7
Share premium at beginning of year 17 202 741 17 202 74
Net share premium received -
Accumulated Loss (5 574 752) (17 565 30
Accumulated Loss at the beginning of year (17 565 307) (16 472 876
Transfer form revaluation reserve 13 434 637
Net loss for the year (1 443 752) (1 092 43
Revaluation Reserve -
Reversal of impairment 19 192 338
Adjustment for taxation (5 757 701)
Transfer to equity (13 434 637) -
Note 1: Provisions include a R2 million settlement fee payable to the Exchange
Control Department of the South African Reserve Bank (`SARB`).
Review of results
Thabex had an excellent year as the Company was able to turn to account its
Mokopane Platreef Project in the Limpopo Province by disposing of the entire
shareholding in Platinexco (Pty) Ltd (`Platinexco`) to Australian Stock Exchange
listed, AIM Resources Ltd for R20 million. The effect of the disposal meant that
Thabex would have had sufficient cash assets to conduct its exploration
activities and fund various Black Economic Empowerment (`BEE`) initiatives.
Unfortunately Thabex also experienced one of its most difficult years since
listing on the JSE Securities Exchange South Africa as the SARB on 2 July 2004
placed a blocking order on the proceeds from the disposal of Platinexco,
resulting in a dispute.
On 25 May 2005 Thabex reached an agreement with the SARB to settle the dispute
relating to the issue of debentures during 1998 and 1999 by way of a payment of
an administrative fee of R2 million to SARB without Thabex acknowledging any
liability or wrongdoing whatsoever, but to settle the dispute amicably.
In the circumstances, Thabex having been denied access to its cash assets, the
company had to curtail its exploration activities and suspend its financial
support to its BEE associate, Taung Diamond Mines Ltd (`Taung Diamonds`). Due to
the uncertainly surrounding the release of the disposal proceeds Thabex also
disposed of its entire shareholding in Pure Diamonds on 1 March 2005 to Saminco
Ltd.
As announced on SENS on 19 August 2004 the SARB declined Thabex`s application to
acquire 100% of the equity of Cresta Mining Company (U) Ltd for a 5% interest in
the share capital of the Company and the agreement with Cresta was consequently
terminated.
Despite these trying events, the directors of Taung Diamonds, persevered in
their efforts to turn to account Taung Diamonds` prospecting rights in the
Christiana district of the North West Province. Exploration commenced on the
Farm Kaffraria under contract and Taung Diamonds is effectively receiving a
royalty of 6% on all diamonds produced during the exploration phase.
Basis of Accounting
These consolidated financial statements were drawn up in compliance with South
African Statements of Generally Accepted Accounting Practice and the company has
complied with the requirements of the Companies Act, 1973 (Act 61 of 1973), as
amended.
Operating results
The settlement with the SARB resulted in the headline earnings per share of 3,13
cents changing to a headline loss of 8,62 cents (a decrease of 11,75 cents per
share) compared to a headline loss of 5,10 cents per share in the 2004 financial
year. Revenue increased to R0,43 million from R0,21 million in 2004. The net
asset value of the group increased almost ten fold from 7,87 cent per share in
2004 to 78,37 cents per share.
Future prospects
At present Thabex is negotiating to enter into an agreement to conduct
exploration and prospecting for kimberlitic deposits in various Southern African
countries and shareholders will be informed of the outcome of these negotiations
as soon as the agreement has been finalised.
Your company has also commenced negotiations to introduce a BEE partner as a
major shareholder in Thabex.
The next year is expected to be stable and the external risk factors of Exchange
Control, not contemplated by your board during the past year, will not be a
hinderance in the exploration efforts of Thabex. The company`s business strategy
is focused on diamond exploration in both kimberlitic and alluvial deposits and
to turn to account its Geelvloer base mineral project in the Northern Cape
Province.
Thabex plans, subject to all regulatory requirement, to fast track a dual
listing of the Company on the Alternative Investment Market (`AIM`) in London.
The main object would be to facilitate access to the AIM`s very successful
capital raising environment and to improve the Company`s shares tradability.
Dividends
No dividend has been declared.
Accounting policies
The accounting policies as set out in the 2004 Annual Report have been
consistently applied in producing the audited results.
Audit of results
KPMG Inc. have audited the results for the year ended 28 February 2005. Their
unqualified audit opinion is available for inspection at the Company`s
registered office.
Mailing of Annual Report
The Annual Report is being dispatched today and contains a notice of the annual
general meeting of the company scheduled to be convened at 10:00 on Wednesday,
27 July 2005 at KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0082
Further Cautionary announcement
As a result of the negotiations with a BEE company, shareholders are herewith
advised that they should continue to exercise caution when dealing in the
Company`s securities until a further announcement is published.
On behalf of the board
Jeffrey Rapoo
Chairman
Marius Welthagen
Chief Executive
Johannesburg
31 May 2005
Registered office:
KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0083
Company secretaries:
SA Mineral Investments (Pty) Ltd
51 Austin Street, Northcliff, Johannesburg, 2195
Company transfer secretaries:
Ultra Registrars (Pty) Ltd
11 Diagonal Street, Johannesburg, 2001
Explore our website: www.thabex.com
E-mail: info@thabex.com
Telephone number: 0860 THABEX (0860 842239)
Sponsor:
PSG Capital Ltd
Directorate:
JR Rapoo, M Welthagen*, JL Bosch, Prof DL Reid**, AP Roux
*Executive director, ** New Zealand
