Scharrig Mining Limited - Press Release
Scharrig Mining Limited
Incorporated in the Republic of South Africa
Registration number 1992/001973/06
Share code: SCN ISIN: ZAE000006474
PRESS RELEASE
Strong demand for Schamin`s services from coal mining industry boosts headline
earnings
Cas Scharrighuisen, MD of Scharrig Mining Limited voiced his satisfaction at the
demand for the company`s services, from the coal mining industry.
`The demand for our services set the stage for a 23% increase in turnover in the
current year on a like-for-like basis. Our significant investment in state-of-
the-art plant and machinery over the past few years has had a positive effect on
the group`s operating efficiencies. The group`s operating profit margin
increased from the prior year`s 11,1% to 20,9%, while headline earnings per
share showed a 101% increase on last year,` Scharrighuisen said.
Jason Holland, Schamin`s financial director stated that `even though cash
generated from operations exceeded R219 million, Schamin`s debt to equity ratio
was virtually unchanged at 114% due to the large investment the group made in
plant and equipment`. The net investment in capital expenditure for the year was
R254 million of which approximately R100 million was maintenance in nature and
the balance of R154 million increased the production capacity of the fleet. `The
debt to equity position should improve during the 2006 financial year,` Holland
stated, `as the company`s fleet replacement programme is now substantially
complete.` Capital expenditure for the 2006 financial year is budgeted at R75
million.
The BEE transaction announced during April 2005, culminated in a BEE consortium
acquiring an interest in Schamin.
According to Cas Scharrighuisen improved operating efficiencies and a stronger
set of results should be achieved in the 2006 financial year.
Ends
For further information contact Jason Holland at 397-3870
Date: 27/06/2005 12:16:03 PM
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