| Wed 31 Aug 2005, 17:08 | | Final results for the year ended 30 June 2005 |
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Assore Limited - Final results for the year ended 30 June 2005
Assore Limited
Company registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000017117
Final results for the year ended 30 June 2005
HIGHLIGHTS
* Earnings for the year increased from R169,6 million to R509,4 million
* Dividends for the year increased from R0,65 to R2,00 per share
* Turnover increased by 38,9 percent
* Significant increases in US Dollar prices for manganese and iron ores
* Significant increases in manganese ore sales volumes
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
30 June 30 June
2005 2004 (restated)
Reviewed Audited
R`000 R`000
Turnover 3 093 944 2 228 091
Net operating profit 809 922 329 501
Finance costs (21 721) (25 765)
Dividends received 5 407 5 057
Profit before taxation 793 608 308 793
Taxation (252 546) (99 583)
Net profit after taxation 541 062 209 210
Outside shareholders` share of net profit (31 617) (39 603)
Attributable earnings transferred to
statement of changes in equity 509 445 169 607
Earnings per share (cents) 1 819,4 605,7
Headline earnings per share (cents) * 1 833,7 583,7
Dividends per share (cents)
- Interim dividend paid in March 2005/2004 50 20
- Final dividend paid in September 2004/2003 45 25
*Determination of headline earnings
Attributable earnings per
income statement as above 509 445 169 607
Net loss/(profit) on disposal of assets 4 000 (6 163)
Headline earnings 513 445 163 444
Ordinary shares in issue (million) 28 28
Net asset value per share (Rand) 76,1 56,9
Capital expenditure (R million) 337,9 237,0
Capital commitments (R million) 218,2 204,3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
30 June 30 June
2005 2004 (restated)
Reviewed Audited
R`000 R`000
SHARE CAPITAL AND RESERVES
Balance at beginning of year 39 012 29 459
Net increase in the market
value of listed investments 66 500 18 064
Deferred taxation on changes in
market value of listed investments (9 410) (2 730)
Foreign currency translation reserve 3 477 (5 781)
Balance at end of year 99 579 39 012
RETAINED INCOME
Balance as previously reported 1 510 297 1 353 054
Prior year adjustment for conversion to IFRS - 236
Restated retained income 1 510 297 1 353 290
Attributable earnings for the year 509 445 169 607
Ordinary dividends paid
No`s 95 and 96 aggregating 95 cents per share
(2004: 45 cents per share) (26 600) (12 600)
Balance at end of year 1 993 142 1 510 297
PER BALANCE SHEET 2 092 721 1 549 309
CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
30 June 30 June
2005 2004 (restated)
Reviewed Audited
R`000 R`000
Cash generated from operations 635 084 224 618
Cash utilised in investing activities (336 535) (230 931)
Cash (utilised in)/generated
by financing activities (189 246) 75 953
Increase in cash for the year 109 303 69 640
Cash resources at beginning of year 166 263 96 623
CASH RESOURCES PER BALANCE SHEET 275 566 166 263
CONSOLIDATED BALANCE SHEET
At 30 June At 30 June
2005 2004 (restated)
Reviewed Audited
R`000 R`000
ASSETS
Non-current assets
Property, plant, equipment
and intangible assets 1 391 931 1 206 428
Environmental rehabilitation
trust funds 17 493 13 503
Investments 232 093 165 715
Total non-current assets 1 641 517 1 385 646
Current assets
Inventories 695 600 520 892
Trade and other receivables 624 169 485 113
Cash resources 275 566 166 263
Total current assets 1 595 335 1 172 268
TOTAL ASSETS 3 236 852 2 557 914
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders` interest 2 092 721 1 549 309
Outside shareholders` interest 39 363 42 560
Share capital and reserves 2 132 084 1 591 869
Non-current liabilities
Long-term liabilities 54 642 55 425
Deferred taxation 345 181 240 576
Total non-current liabilities 399 823 296 001
Current liabilities
Interest bearing 226 740 379 166
Non-interest bearing 478 205 290 878
Total current liabilities 704 945 670 044
TOTAL EQUITY AND LIABILITIES 3 236 852 2 557 914
DECLARATION OF FINAL DIVIDEND
Final dividend No. 97 of R1,50 per share was declared on Tuesday, 30 August
2005. The dividend has been declared in the currency of the Republic of South
Africa. In accordance with STRATE, the following dates apply to the final
dividend:
The last date to trade to qualify for the dividend (and for changes of address
or dividend instructions) will be Friday, 23 September 2005.
The company`s ordinary shares will commence trading `ex` the dividend from the
commencement of business on Monday, 26 September 2005.
The record date will be Friday, 30 September 2005.
Dividend cheques in payment of this dividend to holders of certificated shares
will be posted on or about Monday, 3 October 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 Monday, 3 October
2005.
Share certificates may not be dematerialised or rematerialised between Monday,
26 September 2005 and Friday, 30 September 2005, both days inclusive.
On behalf of the board
Desmond Sacco C J Cory
Chairman Chief Executive Officer
Johannesburg
31 August 2005
COMMENTARY
RESULTS
Assore is pleased to report record earnings for the year ended 30 June 2005 of
R509,4 million, equivalent to R18,19 per share, an increase of 200,3% on the
previous year of R169,6 million equivalent to R6,05 per share. The increase,
which is in line with trading updates issued during the second half, is
attributable to the significantly higher results reported by Assmang Limited
(Assmang) which Assore controls jointly with African Rainbow Minerals Limited
(ARM).
Assmang, which published its final results on 22 August 2005, benefited from
substantially higher US Dollar prices for all its products, particularly for
manganese alloys, the prices of which peaked during the year but ended the
year at lower levels. Assmang`s results also benefited from increased sales
volumes for manganese and iron ores and the weaker US Dollar/SA Rand exchange
rate towards the year-end.
SALES VOLUMES
Sales volumes for the year were as follows:
Metric tons `000 Percentage
increase/
2005 2004 (decrease)
Iron ore 5 776 5 460 5,8
Manganese ore 1 811 1 438 25,9
Manganese alloys 197 218 (9,6)
Charge chrome 262 295 (11,1)
Sales volumes for iron ore increased marginally during the year and will remain
constrained by capacity on the Sishen/Saldanha railway line and the port
facilities. However US Dollar prices for the period April 2005 to March 2006
have been increased by approximately 70% due to continued strong international
demand, particularly from China.
Volumes of manganese ore increased by 25,9% in response to increased global
demand and were facilitated by additional rail capacity made available on the
line to Port Elizabeth harbour. Although prices have recently increased by some
63% it is anticipated that the market could come under pressure due to
potential oversupply.
Manganese alloy volumes reduced marginally due to lower off take by major
customers in the USA and although prices peaked during the year at
unprecedented levels, they were lower at year-end. It is anticipated that
pressure on pricing will continue until the risks of oversupply in the market
have been addressed.
Sales volumes of charge chrome decreased mainly as a result of furnace
availability and although prices were firmer during the year due to strong
demand from stainless steel producers in the second half, particularly in
China, price trends for the third quarter of calendar 2005 were lower as a
result of weakening in demand.
CAPITAL EXPENDITURE
Assmang continued its capital expenditure programme spending R699,1 million
(2004: R493,7 million) during the year, R202,7 million of which was spent on
completing the new shaft complex at Nchwaning and R82,0 million on construction
of the underground mine at Dwarsrivier Chrome mine. The Nchwaning manganese
mine is complete and fully operational and the Dwarsrivier mine is expected to
be completed by the end of 2005 at a total capital cost of R222,0 million.
BORROWINGS
Interest bearing borrowings were significantly lower attributable mainly to
the strong cash flows from Assmang.
OUTLOOK
It is expected that world steel production will exceed the record level of 1,06
billion tons achieved in calendar 2004, mainly driven by China. Iron ore prices
should therefore remain strong, but any increase in export volumes will be
determined by the logistical capacity through the South African rail and port
systems. Demand and price for other products could come under pressure due to
the potential for oversupply in international markets as a result of recent
price increases. Earnings growth nevertheless remains significantly exposed to
movements in the SA Rand against the US Dollar and Euro.
DIVIDENDS
An increased interim dividend of 50 cents per share was declared and paid
during the year following the increased interim result. As reported in this
announcement an increased final dividend of R1,50 per share has been declared
following the significant increase in earnings for the year. The increased
final dividend which is payable on Monday, 3 October 2005 is not included in
these 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 year except
that the group has adopted the requirements of IFRS with retrospective effect
to 1 July 2003. The effect of this change is an increase in profit of R236 000,
as goodwill is no longer amortised in accordance with IFRS. For the same reason
equity brought forward has increased by R236 000 and comparative figures have
been restated accordingly.
AUDIT REVIEW
The year-end results have been reviewed in terms of Rule 3.22 of the Listing
Requirements of the JSE Limited by the group`s auditors Ernst & Young and their
unqualified review opinion is available for inspection at the registered office
of the company.
Registered office: Transfer office: Directors:
Assore House Computershare Investor Executive
15 Fricker Road Services 2004 (Pty) Ltd Desmond Sacco (Chairman)
IIlovo Boulevard 70 Marshall Street R J Carpenter
Johannesburg 2196 Johannesburg 2001 (Deputy Chairman)
C J Cory
(Chief Executive Officer)
P C Crous
(Technical and Operations)
Company secretaries: Non-executive
African Mining and P N Boynton
Trust Company Limited B M Hawksworth
Dr J C van der Horst
Alternate
J W Lewis (British)
Assore Limited
Company registration number: 1950/037394/06
Share code: ASR ISIN: ZAE000017117
Date: 31/08/2005 05:00:08 PM
Produced by the JSE SENS Department
