| Wed 31 May 2006, 17:05 | | Thabex - Reviewed preliminary group results for t |
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TBX
Thabex - Reviewed preliminary group results for the year ended 28 February 2006
THABEX EXPLORATION LIMITED
("Thabex" or "the Company")
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
Young Lions Exploring Africa
JSE share code: TBX
ISIN Code: ZAE000013686
REVIEWED PRELIMINARY GROUP RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2006
CONSOLIDATED BALANCE SHEET Restated
Year ended Year ended
28 February 28 February
2006 2005
R"000 R"000
Assets
Non-current assets 927 34
Mining assets and equipment 927 34
Interest in associated companies -
Current assets 13,769 21,159
Inventories 1,559 661
Trading investments 1,152 467
Trade and other receivables 6,465 107
Cash and cash equivalents 4,593 19,924
Total assets 14,696 21,193
Equity and liabilities
Capital and reserves
Share capital 1,701 1,701
Share premium 17,203 17,203
Revaluation reserve - -
Accumulated loss (4,638) (1,198)
Ordinary shareholders funds 14,266 17,706
Minority interest - -
Non-current liabilities
Non interest bearing Long-term Liabilities - 67
Current liabilities 430 3,420
Trade and other payables 360 1,409
Provisions 70 2,011
Taxation - -
Total equity and liabilities 14,696 21,193
Shares in issue 17,006,887 17,006,887
Net asset value per share (cents) 84 104
Net tangible asset value per share (cents) 84 104
CONSOLIDATED INCOME STATEMENT
Revenue 46 427
Cost of sales (43) (456)
Gross Income/(Loss) 3 (29)
Other operating income 130 514
(Loss)/profit on sale of investment in - 30
subsidiary
Exploration expenditure (2,437) (66)
Administration expenditure (1,732) (2,085)
Impairment of goodwill (450) -
Other operating expenses - (7)
Provision for SARB settlement - (2,000)
Operating loss (4,486) (3,643)
Income form investments 1,046 807
(Loss) before taxation (3,440) (2,836)
Taxation - 1,075
Loss for the year (3,440) (1,761)
Attributable to:
Equity holders of the parent (3,440) (1,761)
Minority interest - 10
Weighted average of number of shares in 17,006,887 17,006,887
issue
(Loss)/earnings per share (cents) (20) (10)
Headline(loss)/earnings per share (cents) (18) (10)
RECONCILIATION OF HEADLINE (LOSS)/EARNINGS
Reconciliation between (loss)/earnings and
headline(loss)/earnings
Loss/income attributable to ordinary (3,440) (1,751)
shareholders
Surplus on disposal of investment in - (30)
subsidiary
Impairment of goodwill 450 -
Impairment losses - 7
Headline(loss)/earnings (2,990) (1,774)
CONSOLIDATED CASHFLOW STATEMENT
Cash (utilised)/generated in operating
activities (13,963) 641
Cash (expended in)/generated from
investing activities (1,368) 19,215
Cash effects of financing activities (160)
(Decrease)/increase in cash resources (15,331) 19,696
Cash at beginning of period 19,924 228
Cash at end of period 4,593 19,924
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Share Capital 1,701 1,701
Share Premium 17,203 17,203
Accumulated Loss (4,638) (1,198)
Accumulated Loss at the beginning of (1,198) (17,565)
period
Transfer from revaluation reserve - 13,435
Correction of taxation liability - 4,683
Net(loss)/profit for period (3,440) (1,751)
Revaluation Reserve - -
Revaluation reserve at beginning of period - 19,192
Impairment recoupment - -
Additions to revaluation reserve - (5,757)
Adjustment for taxation - 4,683
Transfer to equity - (4,683)
Impairment losses - (13,435)
Review of results
During the past year Thabex field checked four diamond concession areas in
Angola. The Company expressed an interest in the Cunje-Cuanza concession area in
the Bie Province. However no agreement has been concluded to date. Shareholders
are referred to the SENS announcement of 30 November 2005 regarding the
acquisition by Diamex JV (Pty) Ltd ("Diamex"), a wholly owned subsidiary of
Thabex, of 100% of Minnex Exploration Ltd ("Minnex") for a 49% interest in
Diamex. Thabex, Diamex and shareholders of Minnex have agreed that the
acquisition agreement will become unconditional on 30 June 2006. Minnex has
several diamond and base mineral exploration projects, which will enhance not
only Thabex"s diversified portfolio of exploration projects, but also the
Company"s management depth. Angel Diamonds (Pty) Ltd"s, a 60% subsidiary of
Thabex, application for the Kolo kimberlite pipe in Lesotho is still pending.
Operating results
The headline loss per share increased from 10 cents to 18 cents. The net asset
value of the group decreased from 104 cents per share in 2005 to 84 cents per
share. The increased headline loss per share was mainly attributable to the
increased exploration expenditure by the Group.
Future prospects
Lower Quartile Solutions (Pty) Ltd, a mining engineering consulting company, is
updating the mineral resources of Thabex"s Salt River Base Mineral project. This
is held by Thaba Egoli Mining & Exploration Ltd ("Thaba Egoli"), a wholly owned
subsidiary of Thabex. The results of the mineral resource update will be
published in the Company"s Annual Report for 2006. Thaba Egoli has drilled 13
diamond core boreholes to date and a further 2 boreholes in progress at present
will complete the Phase 2 drilling programme in the area by the end of June
2006. Thaba Egoli has been informed by the Department of Mineral and Energy
("DME") that its applications for a Prospecting Right on the farms Soutputs
North and Graafwater to the north and west of the Salt River area, have been
accepted. These two properties would significantly enhance the mineral resource
base of the Salt River Base Mineral Project. Thabex has agreed, subject to a
shareholders agreement being concluded, to acquire a 30% interest in Protero
(Pty) Ltd ("Protero"), a mining and exploration company active in the Northern
Cape. Protero"s applications for six potential base mineral properties in the
general area of the Salt River project have been accepted by the DME. The areas
applied for by Protero, inter alia, include the Putsberg copper deposit.
Thabex plans, subject to all regulatory requirements, to fast track a secondary
listing of the Company on the Alternative Investment Market ("AIM") in London.
The main object would be to facilitate access to the AIM"s successful capital
raising environment to raise funding for Thabex"s diamond and base mineral
interests and to improve the Company"s shares tradability.
Basis of accounting
These are the Group"s first consolidated financial statements prepared in
accordance with International Financial Reporting Standards (IFRS"s). The
adoption of IFRS"s had no impact on the consolidated balance sheet, income
statement and cash flow statement presented in the prior year and also had no
impact on the preparation of the opening balance sheet at 1 March 2004.
Restatement of prior year
The profit on the sale of Platinexco (Pty) Ltd was incorrectly treated as
revenue in nature in the tax computation in the prior year. The calculation has
been revised to calculate the Capital Gains Tax on the transaction. The
comparative income statement, balance sheet and statement of changes in equity
have been restated. The following balances were restated:
R"000
a) Taxation in the 2005 income statement
As previously stated 1,382
Adjustment (307)
Restated taxation 1,075
This adjustment increases the loss per share and headline loss
per share for the year ended 28 February 2005 from 8 cents per
share to 10 cents per share
b) Tax liability at 28 February 2005
Tax liability as previously reported 4,376
Adjustment (4,376)
Restated taxation liability -
c) Accumulated loss at 28 February 2005
Accumulated loss as previously reported (5,574)
Adjustment 4,375
Restated accumulated loss (1,199)
The adjustment increased the net asset value per share and tangible net asset
value per share at 28 February 2005 from 78 cents per share to 104 cents per
share.
Black Economic Empowerment
Thabex is 31.76% directly BEE owned.
Dividends
No dividend has been declared.
Audit of results
The preliminary results for the year ended 28 February 2006 have been reviewed
but not audited. The audited results are expected to be completed within the
next month.
On behalf of the board
Jeffrey Rapoo
Chairman
Marius Welthagen
Chief Executive
Johannesburg
31 May 2006
Registered office:
KPMG Forum, 1226 Schoeman Street, Hatfield, Pretoria, 0083
Auditors:
KPMG Inc.
Company secretaries:
SA Mineral Investments (Pty) Ltd
51 Austin Street, Northcliff, Johannesburg, 2195
Company transfer secretaries:
Ultra Registrars (Pty) Ltd
11 Diagonal Street, Johannesburg, 2001
Explore our website: www.thabex.com
E-mail: info@thabex.com
Telephone number: +27 11 431 3424 or 0860 THABEX (0860 842239)
Sponsor:
PSG Capital Limited
Directorate:
JR Rapoo, M Welthagen*, JL Bosch, Prof DL Reid**, AP Roux
*Executive director, ** New Zealand
Date: 31/05/2006 05:05:06 PM Produced by the JSE SENS Department
