| Wed 30 Nov 2005, 15:50 | | Results for the six months ended 31 August 2005 |
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Thabex - Unaudited interim results for the six months ended 31 August 2005
Thabex Exploration Limited
("Thabex" or "the Company")
(Registration No 1988/000763/06)
JSE - Share code: TBX
ISIN Code: ZAE000013686
Young Lions Exploring Africa
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005
CONSOLIDATED BALANCE Six months Six months Year ended
SHEET ended ended
31 August 31 August 28 February
2005 2004 2005
Unaudited Unaudited Audited
R"000 R"000 R"000
Assets
Non-current assets 95 41 34
Mining assets and 95 41 34
equipment
Interest in associated - - -
companies
Current assets 16,523 20,951 21,158
Inventories 592 806 661
Trading investments 742 409 467
Trade and other 987 396 106
receivables
Cash and cash 14,202 19,340 19,924
equivalents
Total assets 16,618 20,992 21,192
Equity and liabilities
Capital and reserves
Share capital 1,701 1,701 1,701
Share premium 17,203 17,203 17,203
Revaluation reserve - - -
Accumulated loss (6,746) (3,160) (5,574)
Ordinary shareholders 12,158 15,744 13,330
funds
Outside shareholders" - 10 -
interest
Non-current liabilities
Non interest bearing Long- - 245 67
term Liabilities
Current liabilities 4,461 4,994 7,796
Trade and other payables 69 433 1,409
Provisions 110 - 2,011
Taxation 4,282 4,561 4,376
Total equity and 16,618 20,992 21,192
liabilities
Shares in issue 17,006,887 17,006,887 17,006,887
Net asset value per share 71.49 92.57 78.37
(cents)
Net tangible asset value per 71.49 92.57 78.37
share (cents)
CONSOLIDATED INCOME Six months Six months Year ended
STATEMENT ended ended
31 August 31 August 28 February
2005 2004 2005
Unaudited Unaudited Audited
R"000 R"000 R"000
Revenue 32 282 427
Cost of sales (29) (270) (456)
Gross Income/(Loss) 3 12 (29)
Other operation income - 986 514
(Loss)/profit on sale of - (422) 30
investment in subsidiary
Exploration expenditure (1,324) (4) (66)
Administration (714) (894) (2,085)
expenditure
Other operating expenses - - (7)
Provision for SARB - - (2,000)
settlement
Operation loss (2,035) (322) (3,643)
Income form investments 586 86 807
(Loss) before taxation (1,449) (236) (2,836)
Taxation 269 1,205 1,382
(Loss)/profit after (1,180) 969 (1,454)
taxation
Outside shareholders" 8 1 10
interest
Net(loss)/income for the (1,172) 970 (1,444)
period
Weighted average number of 17,006,887 17,006,887 17,006,887
shares in issue
(Loss)/earnings per share (6.94) 5.70 (8.49)
(cents)
Headline(loss)/earnings per (6.30) 3.04 (8.17)
share (cents)
RECONCILIATION OF HEADLINE Six months Six months Year ended
(LOSS)/EARNINGS ended ended
31 August 31 August 28 February
2005 2004 2005
Unaudited Unaudited Audited
R"000 R"000 R"000
Reconciliation between
(loss)/earnings and
headline(loss)/earnings
Loss/income attributable to (1,172) 970 (1,444)
ordinary shareholders
Surplus on disposal of - (111) (30)
investment in subsidiary
Provision/(reversal)for/(of)l 101 (342) (145)
osses in subsidiaries
Impairment losses - - 230
Headline(loss)/earnings (1,071) 517 (1,389)
CONSOLIDATED CASHFLOW Six months Six months Year ended
STATEMENT ended ended
31 August 31 August 28 February
2005 2004 2005
Unaudited Unaudited Audited
R"000 R"000 R"000
Cash (utilised)/generated in (5,594) 5,655 642
operating activities
Cash (expended in)/generated (52) 13,465 19,061
from investing activities
Cash effects of financing (61) (8) -
activities
(Decrease)Increase in cash (5,707) 19,112 19,703
resources
Cash at beginning of 19,909 228 206
period
Cash at end of period 14,202 19,340 19,909
CONSOLIDATED STATEMENT OF Six months Six months Year ended
CHANGES IN EQUITY ended ended
31 August 31 August 28 February
2005 2004 2005
Unaudited Unaudited Audited
R"000 R"000 R"000
Share Capital 1,701 1,701 1,701
Share Premium 17,203 17,203 17,203
Accumulated Loss (6,746) (3,160) (5,574)
Accumulated Loss at the (5,574) (17,565) (17,565)
beginning of period
Transfer from revaluation - 13,435 13,435
reserve
Net(loss)/profit for (1,172) 970 (1,444)
period
Revaluation Reserve - - -
Revaluation reserve at - - 19,192
beginning of period
Impairment recoupment - 19,085 -
Additions to revaluation - - (5,757)
reserve
Adjustment for taxation - (5,650) -
Transfer to equity - (13,435) -
Impairment losses - - (13,435)
Review of operations and future prospects
After the settlement of the dispute with the South African Reserve Bank ("SARB")
relating to the SARB preventing the Company from utilising the cash proceeds
from the sale of Platinexco (Pty) Ltd, Thabex has, for the first time since
listing on the JSE Ltd ("JSE") in November 1997, been able to conduct
exploration activities with sufficient cash available. The advantage of Junior
Mining companies from Canada and Australia operating in South Africa are that
these companies have usually raised sufficient cash on the exchanges they are
listed to conduct their exploration activities.
Coal
The Company company has acquired 40% of a Black Economic Empowerment ("BEE")
company, Abarawaki Investments (Pty) Ltd ("Abarawaki"). A shareholders agreement
with Abarawaki provides for Thabex to fund the applications for several
prospecting permits in the Middelburg Coal Field. Thabex will also conduct
exploration on the areas applied for once the prospecting permits have been
approved.
Diamonds
Angola
Over the past seven years Thabex has been researching the possibility of
alluvial and kimberlite diamond exploration in Angola. After various initial
reconnaissance visits to Angola over this period, the Company has field checked
two Concession Areas in the Bie Province of Angola during the period June to
October this year. Several other areas in other provinces are planned to be
field checked during the next few months. Thabex is very aware of the costs
involved in operating in Angola and will only proceed with an exploration
project on successful negotiations with Endiama (Angola"s diamond mining
authority), the local partners and a significant probability of successfully
turning the exploration project to account.
Lesotho
Thabex has acquired a 60% interest in Angel Diamonds (Pty) Ltd ("Angel"), a
company incorporated in Lesotho, for R600. The Kolo kimberlite prospect is
located 40km southwest of Maseru. Angel has submitted an application for a
prospecting lease for the Kolo project to the Department of Mines in Lesotho,
subject to the granting of the prospecting lease. Thabex entered into an
agreement with Angel to provide loan funding of up to R4,5 million to conduct an
exploration program and feasibility study on the Kolo kimberlite prospect.
South Africa
The Company and its subsidiary, Diamex JV (Pty) Ltd ("Diamex"), have on 4
November 2005 entered into an acquisition agreement, subject to the completion
of a due diligence investigation, with the shareholders of Minnex Exploration
Ltd ("Minnex") in terms of which Diamex will acquire the entire issued share
capital of Minnex for R384 560, in exchange for 49,9% of the share capital of
Diamex. In terms of the agreement, Thabex will assist Diamex to fund the
projects of Minnex by way of a loan of R2 million. Minnex has several diamond
exploration projects and one base mineral project in South Africa and a
kimberlite exploration project in Namibia. On successful completion of the due
diligence investigation Thabex intends to apply for a listing of Diamex on the
JSE.
BEE associate Taung Diamond Mines Ltd has submitted several applications for
alluvial diamond prospecting permits in the Christiana district of the Northwest
Province. Exploration results on the farm Kaffraria 314 HO in the same district
indicated that the area is not economically viable and Thabex has recommended
that it be abandoned.
Gold
Although the SARB has previously prevented Thabex from acquiring 100% of Cresta
Mining Uganda Ltd, an Uganda exploration company, Thabex has identified several
other gold prospects in Uganda and will apply again to SARB in order to
facilitate the development of these gold prospects.
Base Minerals
During September 2005 wholly owned subsidiary Thaba Egoli Mining & Exploration
Ltd ("Thaba Egoli") commenced the first phase of a drilling program on the Salt
River Base Mineral project on the farm Adjoining Geelvloer 197 in the Northern
Cape Province. The purpose of the phased drilling program is to confirm the
indicated mineral resources of the project as previously reported and to
determine the inferred mineral resources of the project area. Four diamond core
boreholes were drilled and massive and semi-massive sulphide mineralisation was
intersected. The results are listed below:
Borehole no Depth m Width m Cu % Pb % Zn % Ag g/t Au g/t
TBX1 89.31 3.41 1.34 0.65 2.66 50 0.42
TBX2 49.74 no mineralisation intersected
TBX3 65.71 1.02 0.06 0.21 0.66 11 0.08
81.68 1.45 0.81 0.18 1.13 20 0.19
TBX4 192.42 1.41 0.28 - 0.02 6 0.20
204.85 0.58 0.14 0.12 1.11 15 0.11
A second phase of drilling is planned for the new calendar year, during which
phase Thaba Egoli plans to determine the measured mineral resources on the
project area in order to conduct a feasibility study for possible future mining
of the this poly-metallic deposit.
Mining Charter and BEE
Ibhubesi Investments No 1 (Pty) Ltd, a 100% BEE owned company, has acquired a
5,88% stake in Thabex. In terms of the requirements of the Mining Charter the
Company is now 31.76% BEE owned.
Beneficiation
The Company has made an expression of interest to the Department of Mineral and
Energy to be part of the beneficiation drive in South Africa. In this regard
Thabex has successfully applied for a stand at the new ABSA International Trade
Bureau being constructed opposite the International Arrivals Terminal at the
Johannesburg International Airport. Your company will be strategically placed
for the business opportunities during the run-up to the 2010 Soccer World Cup.
Proposed application for a secondary listing on the Alternative Investment
Market ("AIM")
Subject to SARB approval Thabex intends to apply for a secondary listing on the
AIM market in London in order to achieve increased tradability in the Company"s
shares. Another reason for the proposed listing on AIM would be for Thabex to
access the larger pool of exploration and mining capital of the highly
successful AIM market in order to facilitate turning to account some of Thabex"s
exploration projects in the Company"s diversified portfolio of exploration
projects in South and Southern Africa.
New operating office
From 2 January 2006, Thabex will be operating from its new office premises on
the Ground Floor, Keystone House, Stonemill Office Park, 171 Republic Road,
Darrenwood, Randburg (located opposite the Cresta Shopping Centre).
Dividend
No dividend has been declared for the period.
Basis of accounting
The interim financial results have been prepared in accordance with the
International Financial Reporting Standards ("IFRS") for interim financial
statements. These are the group"s first IFRS interim financial statements for
part of the period covered by first IFRS annual financial statements and IFRS 1
First-time adoption of International Financial Reporting Standards has been
applied. The interim financial statements do not include all of the information
required for full annual financial statements.
Significant changes to the Group"s accounting policies as a result of the
adoption of IFRS
The principal accounting policies of the Group are consistent with those applied
in the audited financial statements for the year ended 29 February 2005.
Review by independent auditors
The financial information contained in this interim statement has not been
reviewed and reported on by the auditors of the Company.
On behalf of the board
JR Rapoo Marius Welthagen
Chairman Chief Executive
Johannesburg 30 November 2005
Explore our website: www.thabex.com
E-mail: info@thabex.com
Registered office:
KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0083
Telephone number: 0860 THABEX (0860 842239)
Company secretaries:
SA Mineral Investments (Pty) Ltd,
51 Austin Street, Northcliff, Johannesburg, 2195
Transfer secretaries:
Ultra Registrars (Pty) Ltd, 11 Diagonal Street, Johannesburg, 2001
Attorneys:
Brink Cohen Le Roux, BCLR House, 19 West Street, Houghton, 2198
Auditors:
KPMG Inc, KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0083
Sponsor:
PSG Capital Ltd, 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600
Directorate:
JR Rapoo*(Chairman), M Welthagen(CEO), JL Bosch*, Prof DL Reid*#,
AP Roux* *non-executive directors, #New Zealand
Date: 30/11/2005 03:50:24 PM Produced by the JSE SENS Department
