| Fri 24 Mar 2006, 17:04 | | Aflease Gold Limited - Aflease Gold Announces Inte |
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AFO
AFO
Aflease Gold Limited - Aflease Gold Announces Interim Results to 31 December
2005
Aflease Gold Limited (Formerly Sub Nigel Gold Mining Company Ltd)
(Incorporated in the Republic of South Africa)
Share Code : AFO (JSE)
(Registration number 1984/006179/08)
ISIN: ZAE000075867("Aflease Gold" or "the Company")
Aflease Gold Announces Interim Results to 31 December 2005
Johannesburg: Aflease Gold Limited today released its interim results for the
six months ended December 31, 2005, and provided an update on its business
prospects. The merger between the former Sub Nigel Gold Mining Company ("Sub
Nigel") and New Kleinfontein Mining Company ("New Kleinfontein") was completed
in January 2006; accordingly, the results for period under review refer only to
the activities of Sub Nigel and do not incorporate the operations or activities
of New Kleinfontein including with respect to the Modder East Gold Project.
For the six months ended December 31, 2005, Sub Nigel reported a loss after
taxation of R8,192 million, or 10.25 cents per share, compared with a loss of
R1,398 million, or 2.08 cents per share, in the six months ended December 31,
2004. The major contributors to the increased loss were an increase in mining
and development costs, the expensing of share options in terms of IFRS 2, merger
costs incurred in connection with the merger of Sub Nigel with New Kleinfontein
and the impairment of certain mineral rights. During the period under review,
sweeping and vamping operations at Sub Nigel continued on a minor scale. These
marginal activities were stopped following the merger.
Subsequent to the period end, Aflease Gold Limited has impaired the balance
(R2,506 million) relating to the mining assets carried on Sub Nigel"s
Ventersburg project in the Free State, as the Ventersburg mineralization is not
SAMREC-compliant. Aflease Gold Limited plans an exploration programme to assess
the potential of this asset, in the belief that this is a highly prospective
exploration target. In addition to the above, share options have been expensed
at R0,988 million; this expense, together with the impairment of mineral rights
on Ventersburg, aggregated R3,494 million.
Other expenditure of R3,854 million was 136% higher than the R1,630 million
figure for the six months ended December 31, 2004. This increase in other
expenditure was largely attributable to the costs of the merger between Sub
Nigel and New Kleinfontein.
Creation of Aflease Gold Limited
As announced on 10 January 2006, the shareholders of Sub Nigel voted 99.63% in
favour of the merger with New Kleinfontein. The transaction was completed at
the end of January 2006. Aflease Gold Limited is approximately 79% owned by
sxr Uranium One.
Business Prospects
As announced on 7 February 2006, the results of the drilling programme being
conducted in connection with the ongoing feasibility study at Modder East have
provided further confidence in the quality and quantity of the ore body and have
expanded the areas where gold can be mined profitably. The feasibility study is
scheduled to be completed in the second quarter of 2006.
In addition, as announced on 13 March 2006, Aflease Gold Limited was successful
in its applications for a prospecting license in Namibia and prospecting rights
in South Africa. Shareholders are referred to the 13 March SENS announcement
for further details.
Aflease Gold expects to expand the exploration programme at Sub Nigel"s during
the 2nd quarter of 2006. Shareholders will be kept appraised of developments.
Aflease Gold CEO Neal Froneman stated that, with a new management team, Aflease
Gold is determined to move aggressively in growing and transforming the company.
Said Mr. Froneman: "Looking forward, Aflease Gold is positioning itself to
become a significant player in the South African gold industry, first with
Modder East and then with further mines. Aflease Gold is also actively seeking
new opportunities, and hopes to continue to be a driving force in the ongoing
consolidation of the East Rand, which has historically been an important gold
mining region, and in which we believe there is still considerable further
potential."
Aflease Gold Limited is a South African gold exploration and development company
listed on the JSE Limited (the Johannesburg Stock Exchange). Aflease Gold owns
the Modder East Gold Project as well as the South African gold assets of the
former Sub Nigel Gold Mining Company. Aflease Gold Limited is owned as to
approximately 79% by sxr Uranium One Inc.
For further information please contact:
Neal Froneman Carol Smith Don Falconer
Chief Executive Officer Investor Relations Vice President, Investor Relations
Tel: + 27 11 482-3605 Tel: + 27 11 482-3605 Tel: +1 416 350-3657
Cautionary note concerning forward-looking statements: Certain of the
information contained in this news release constitutes "forward-looking
statements". Such forward-looking statements include the Corporation"s
expectations related to the future growth of Aflease Gold Limited, as well as
market fluctuations. Forward-looking statements are not statements of
historical fact and involve known and unknown risk and uncertainties which are
beyond the ability of the Corporation to control or predict and which could
cause actual events or results to differ materially from those anticipated in
such forward-looking statements.
Date: 24/03/2006 05:04:52 PM Produced by the JSE SENS Department
