|
WAR
WARA
Western Areas Limited - Distribution Of Annual Financial Statements and
publication of abridged report
WESTERN AREAS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1959/003209/06)
Share code: WAR & ISIN: ZAE000016549
("WAL" or "the Group ")
DISTRIBUTION OF ANNUAL FINANCIAL STATEMENTS AND PUBLICATION OF ABRIDGED REPORT
Further to the publication on SENS on 17 February 2006 of WAL"s unaudited 4th
quarterly results ended 31 December 2005 ("the published results"), WAL advises
that its 2005 annual report, which incorporates its annual financial statements
and notice of annual general meeting will be posted to shareholders on 18 April
2006, and is also available on the Western Areas Ltd website:
www.westernareas.co.za.
AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
ABRIDGED CONSOLIDATED INCOME STATEMENT
Years ended
31.12.05 31.12.04
Restated
SA Rand million Audited Audited
Gold revenue 420.6 381.4
Gold sales at spot 660.9 573.6
Realisation of matured options (240.3) (192.2)
Costs and other expenses (668.2) (634.1)
Production costs - cash (549.9) (528.1)
Production costs - non cash (118.3) (106.0)
Operating loss from gold operations (247.6) (252.7)
Administration and other expenditure (15.4) (15.3)
Finance costs (29.0) (12.1)
Operating loss (292.0) (280.1)
Present value adjustment for option (55.6) (69.8)
premium payable
Fair value adjustment (128.9) 221.0
Exchange (losses)/gains (107.7) 151.2
Impairments (84.9) -
Share of loss in associated company (5.3) -
(Loss)/Profit before taxation (674.4) 22.3
Taxation 267.0 (14.4)
(Loss)/ Profit for the year (407.4) 7.9
(Loss)/ Earnings per ordinary share
(cents)
-Basic (339.2) 7.2
-Headline (273.9) 5.7
-Diluted basic (339.2) 7.1
-Diluted headline (273.9) 5.7
Number of shares in issue (million) 154.0 118.5
Weighted average number of ordinary shares 120.1 110.3
(million)
Determination of headline (loss)/earnings:
Net (loss)/profit for the period (407.4) 7.9
Profit on disposal of fixed assets (6.1) (0.7)
Unclaimed dividends written back - (1.1)
Net (loss)/profit on disposal of (1.0) 0.2
investments
Profit on disposal of treasury shares (4.3) -
Fair value adjustment of other investments (0.3) -
Impairment of assets 90.2 -
Headline (loss)/ earnings (328.9) 6.3
ABRIDGED CONSOLIDATED BALANCE SHEET
Year ended
31.12.05 31.12.04
Restated
SA Rand million Audited Audited
Assets
Property, Plant and Equipment 3 299.6 3 379.4
Derivative asset 996.4 702.6
Other investments 20.2 38.2
Deferred taxation 847.7 453.6
Cash and cash equivalents 207.9 13.2
Other assets 67.0 54.5
Total assets 5 438.8 4 641.5
Equity and liabilities
Shareholders" equity 1 509.3 1 486.2
Option premium payable 939.4 905.7
Derivative liability 2 843.9 2 016.7
JCI Limited loan - 95.2
Other liabilities 146.2 137.7
Total equity and liabilities 5 438.8 4 641.5
STATEMENT OF CHANGES IN SHAREHOLDERS" EQUITY
SA Rand Share Share Treasury Cash flow Retained Total
million capital premium shares hedge earnings
reserve
Balance as 118.5 2 245.5 (3.1) (1 367.9) 518.0 1 511.0
at 31
December
2004
IFRS - - - - (24.8) (24.8)
adjustment
Restated 118.5 2 245.5 (3.1) (1 367.9) 493.2 1 486.2
opening
balance
Number of 35.5 603.6 - - - 639.1
ordinary
shares
issued
Share issue - (6.9) - - - (6.9)
costs
Tax effect - - - (25.3) - (25.3)
due to rate
change
Fair value - - - (309.0) - (309.0)
adjustment
Recycling - - - 129.5 - 129.5
of fair
value on
maturing of
derivatives
Attribu- - - - - (407.4) (407.4)
table loss
for the
period
Unautho- - - 3.1 - - 3.1
rised
disposal of
shares
Balance as 154.0 2 842.2 - (1 572.7) 85.8 1 509.3
at 31
December
2005
ABRIDGED CASH FLOW STATEMENT
Year ended
31.12.05 31.12.04
Restated
SA Rand million Audited Audited
Cash flow (utilised in)/from operating (112.5) (147.0)
activities
Cash flow utilised in investing activities (103.0) (261.5)
Cash flow from finance activities 410.2 399.8
Net increase/(decrease) in cash and cash 194.7 (8.7)
equivalents
Cash and cash equivalents
- at beginning of period 13.2 21.9
At end of period 207.9 13.2
BASIS OF ACCOUNTING
The accounting policies used to prepare the annual financial statements are in
accordance with International Financial Reporting Standards (IFRS). These
results form part of the Group"s first IFRS annual financial statements and IFRS
1 - First-time Adoption of International Financial Reporting Standards have been
applied.
ADJUSTMENTS TO PUBLISHED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
The Group has made certain adjustments to the published results, which were
published on 17 February 2006. These adjustments resulted in a headline loss
per share of 273.9 cents compared to the 282.3 cents as per the published
results. The net loss for the year decreased by R7.9 million to R407.4 million.
Shareholders equity per the annual financial statements is R1 509.3 million
compared to the R1 529.0 million per the published results. The following
significant adjustments were made to the published results:
The finding of irregularities in the Western Areas Share Incentive Trust ("the
Trust") resulted in the forensics department of KPMG Services (Pty) Ltd being
engaged to investigate the Trust. The investigation indicates that Mr Brett
Kebble, or entities related to him, benefited from alleged unauthorised share
transactions in the Trust. Currently the Trust holds 640 WAL shares compared to
the 500 640 it should hold, indicating that Mr Brett Kebble directly or
indirectly removed the shares without compensation to the Trust. Mr Brett Kebble
was the only participant of the Trust until his untimely death in September
2005. The Trust will lodge a claim against the estate of Mr Brett Kebble for
R7.4 million in accordance with the Western Areas Share Incentive Scheme.
However, the R7.4 million receivable has been impaired in the Group results.
The decrease in the deferred taxation balance is as result of a R9.7 million
credit in the income statement and a R28.6 million debit to the Cash flow hedge
reserve.
The adjustments made had no impact on the production and unit results as per the
published results.
The independent auditors" report by KPMG Inc. reflects an unqualified audit
opinion with an emphasis of matter drawing attention to the going concern
paragraph in the directors" report. The directors" state in their report that it
is anticipated that the cash resources of WAL will be exhausted during the last
quarter of 2006 and that they are reviewing the various options available to WAL
to ensure adequate cash flows for the next 12 months. The options include, but
are not limited to:
Issue 10% of the current issued share capital for cash. At current market prices
this will raise approximately R675 million
Arranging a standby facility
Rescheduling the derivative commitments such that less gold is hedged over the
near term, but with a corresponding increase at a later period. The result will
be that WAL will have no derivative obligations in the short term, allowing the
build-up of production at South Deep Gold Mine to be funded predominantly from
operational cash flows assuming a higher gold price.
The directors believe that if any of the above options are successfully
concluded the Company will be able to meet its obligations as they fall due and
that the Company will be a going concern in the year ahead. The audit report is
available for inspection at WAL"s registered office, 28 Harrison Street,
Johannesburg, 2001.
NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the WAL annual general meeting will be held in the
Auditorium, Ground Floor, 28 Harrison Street, Johannesburg, South Africa on
Wednesday, 10 May 2006 at 10:00, to transact the business set out in the notice
of annual general meeting.
Johannesburg
18 April 2006
SPONSOR
SASFIN CORPORATE FINANCE
Date: 18/04/2006 03:00:22 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
