| Fri 30 Jun 2006, 14:53 | | Simmers - Reviewed provisional results for the yea |
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SIM
SIIF
Simmers - Reviewed provisional results for the year ended 31 March 2006
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
("Simmers" or "the company")
Share code: SIM
ISIN: ZAE000006722
REVIEWED PROVISIONAL RESULTS
for the year ended
31 March 2006
Market capitalisation has grown by a massive 3 353% since December 2004
Gold production has increased by 612%
Jaganda shareholders dispute resolved
New order mining right awarded for Ezulwini
COMMENTS
The Department of Minerals and Energy ("DME") awarded the mining rights for
Ezulwini on 29 May 2006, as a result of the resolution of the dispute between
the shareholders of Jaganda (Pty) Ltd, the BEE company which initially held 51%
of Simmers equity immediately post completion of the rights issue.
The profit for the year is mainly the result of loans payable by Buffelsfontein
ceded to Simmers at date of acquisition of R1,2 billion and the R14 million
management fee paid to Simmers for managing Buffelsfontein"s surface operations
whilst it was under provisional liquidation. The profit was reduced by R1,1
billion goodwill written off on acquisition of Buffelsfontein and the fair value
adjustment of the Aberdeen loan of R63 million.
Included in the R47,1 million exploration and other operating expenditure in the
current year, is R15,9 million in pumping costs and R9 million for bankable
feasibility study costs relating to Ezulwini.
On 26 April 2006, Simmers entered into a loan agreement with Lion Capital Group
AG ("Lion Capital") in terms of which Simmers borrowed R12 million from Lion
Capital. The loan bears interest at prime rate and the capital and interest are
repayable after 12 months. JP Schumacher, a director of Simmers, is also a
director of Lion Capital.
As announced on SENS, Mr Siviwe Mapisa and Mr Valence Watson were appointed to
the board of directors, both as non-executive directors, on 25 May 2006.
After year-end, 72,8 million Simmers shares to the value of R108,5 million were
issued at various dates at an average share price of R1,49 per share.
OPERATIONS REVIEW
1 GENERAL GROUP OVERVIEW
The year under review has been exceptionally active for the Simmers management
team who, notwithstanding a variety of technical, socio political and
operational challenges, oversaw a period of significant growth that resulted in
real value for all stakeholders. These include the many new shareholders, the
Board and Management and the approximately 4 000 new employees who joined the
Group as a result of the acquisition of Buffelsfontein Gold Mines Limited in
November 2005, as well as the planned expansion of operations at TGME and the
interim pumping agreement entered into by Simmers at Ezulwini (formerly No. 4
Shaft Randfontein Estates Ltd/Harmony) during October 2005 pending the transfer
of mining rights.
The future demand for uranium as a significant component of the global energy
equation resulted in Simmers forming First Uranium (Pty) Limited ("First
Uranium") in November 2005. First Uranium, a subsidiary of Simmers, was created
for the purpose of maximizing the value of the prolific uranium potential which
exists within the Simmers operations, particularly at Buffelsfontein and
Ezulwini, which have both surface and underground uranium resources. In December
2005, Simmers entered into an agreement with First Uranium Corporation of
Toronto ("FUC Toronto") in terms of which FUC Toronto provided US$3 million in
exchange for a 30% shareholding in First Uranium. The US$3 million was used to
fund the detailed feasibility study started by Simmers to determine the
viability of extracting uranium from the surface resources at Buffelsfontein.
2 TGME
TGME experienced a busy year as the development of two new major mining sectors
at Dukes Hill and Frankfort commenced. The plant was refurbished and expanded to
enable it to operate at its designed milling capacity of 10 000 tpm. The dense
media separation plant was renewed so that the sinks capacity (mill feed) could
match the milling capacity. The plant currently has the capability of handling
approximately 34 000 tpm of run of mine production. Total capital expenditure
including exploration and primary capital development for the year amounted to
R62,66 million.
From a production perspective the operations remained constrained at the Dukes
Hill and Clewer sections of the mine. Poor ground conditions in the Dukes Hill
upper section severely hampered the development of urgently required replacement
mineral reserves. This rapid depletion of reserves provided very little
flexibility to maintain the correct mining mix resulting in reduced grades which
caused the mine to continuously increase the production of run of mine ore to
attempt to maintain gold production at acceptable levels.
An application for new order mining rights for Dukes Hill Mine, Frankfort and
Beta Mines was submitted to the DME in May 2005. These rights had not been
awarded by year-end but are anticipated to be approved in July 2006. TGME is
primed to surge ahead once mining rights are approved.
Simmers also started an exploration project, The Molototse Valley Exploration
Project ("MVEP"), in the vicinity of the Frankfort Mine. The project has been
incorporated into Caledonian Mining and Exploration Company (Pty) Limited, a
subsidiary of Simmers. Initial indications are that the Sabie/Pilgrim"s Rest
goldfields present the possibility of large economic concentrations of gold
amenable to open pit and shallow underground mining.
3 BUFFELSFONTEIN
Simmers commenced underground production in early November 2005, following
approval of the creditors" scheme of arrangement by the High Court.
In the period prior to liquidation maintenance at Buffelsfontein was neglected,
a situation aggravated by vandalism incurred while the mine was in the custody
of the provisional liquidators. The underground workings were extensively
damaged with some haulages, access ways, and panels rendered inaccessible.
Despite these challenges, Buffelsfontein produced 1 605 kgs (51 600 ozs) of gold
during the period under review.
Re-establishing the mine"s infrastructure and workings to an acceptable and safe
level of repair was a massive challenge. The new workforce was recruited between
November 2005 and January 2006. The main focus during this period was to open up
and re-support the underground workings and initiate safe mining with a gradual
build-up of production.
Key to this build-up is an incremental increase in development to create
flexibility of the mineable face length at the optimum grade mix. By January
2007 the metallurgical plant treatment capacity will be increased from the
current 125 000 tpm to 170 000 tpm.
With the finalisation of the resource and reserve statement the Life of Mine for
Buffelsfontein has doubled to 20 years.
4 EZULWINI
Mining the shaft pillar which forms the basis of the initial Ezulwini project is
expected to add at least 1 million ozs of high-grade mineable reserves to
Simmers" reserve base. An additional feasibility study which now includes the
reopening of the mothballed middle Elsburg gold and uranium mine commenced in
February 2006 and is due for completion by September 2006. The current
forecasted net present value for the project indicates a conservative value of
R2,4 billion
and the feasibility studies are expected to add to this value.
PROSPECTS
Last year, Simmers was in dire financial straits suffering from the effects of
indifferent leadership and a chronic lack of capital. Its future was tenuous as
its only producing asset faced liquidation.
The acquisition of Buffelsfontein gave real meaning to the Company"s stated aim
of developing from a 10 000 oz producer to a 400 000 oz producer in five years.
The acquisition brought with it huge challenges but it also allowed Simmers to
look at maximising the potential of the new asset. This included treating the
surface rock dumps, thus turning what is in effect a rehabilitation liability
into a meaningful contributor to the Buffelsfontein bottom line. While the
margin on the rock dumps remains positive so too will the opportunity arise to
treat more dumps in the area. This has opened up the possibility of joint
ventures to recover gold, produce aggregate and address rehabilitation issues as
the footprints of the dumps are reduced.
Accompanying the inceased gold price, the uranium market took a significant leap
forward, and the price of uranium achieved levels not seen for years. The
outlook for uranium has remained bullish and the medium-term forecast is
positive. This surge in the price resulted in Simmers evaluating the uranium
potential of the Hartebeesfontein and Buffelsfontein tailings dams, and work has
commenced on a feasibility study due for completion in the third quarter of
2006.
The granting of the mining right for Ezulwini to Simmers has unleashed the
potential to create a meaningful gold and uranium producer. This mine, formerly
known as Randfontein Four Shaft, was a major producer in the JCI and Harmony
stables before being mothballed.
At TGME the Simmers rights issue and subsequent raising of additional capital
has enabled the company to capitalise the mine to develop the resources which
had suffered from capital starvation. It is anticipated that the mine will
become a 30 000 oz producer within 18 months.
In addition, the Company has identified prospective brownfields developments in
the Sabie area for which prospecting rights have been obtained, and is also
evaluating positive opportunities which are becoming apparent in the
Sabie/Pilgrim"s Rest goldfields as the Company learns more about the geology of
the area, helped greatly by new technologies and improved prospecting
techniques.
In summary, the growing gold businesses at Buffelsfontein, Ezulwini and TGME
combined with the impressive uranium potential of Buffelsfontein and Ezulwini
and the prospective gold opportunities in Mpumalanga provide the Company with a
full spectrum of projects from greenfield exploration to producing assets.
By order of the Board
A Townsend
Secretary
30 June 2006
CONSOLIDATED BALANCE SHEETS
Audited
Reviewed Restated
year ended at year ended at
31 Mar 2006 31 Mar 2005
Notes R"000 R"000
ASSETS
Non-current assets 437 542 32 374
Property, plant and equipment 7 317 398 32 280
Environmental rehabilitation trust
fund 8 109 686 94
Other financial assets 9 10 458 -
Current assets 75 668 3 609
Inventories 10 11 539 1 566
Trade and other receivables 41 079 1 522
Cash and cash equivalents 23 050 521
Non-current assets held for sale 11 25 402 -
Total assets 538 612 35 983
EQUITY AND LIABILITIES
Equity capital and accumulated loss 177 217 (48 098)
Share capital 308 873 109 651
Non-distributable reserves 26 361 4 233
Accumulated loss (160 331) (161 983)
Minority interest 2 314 1
Non-current liabilities 312 971 1 072
Loan payable 12 129 565 -
Other liabilities 411 72
Environmental rehabilitation
provision 13 182 995 1 000
Current liabilities 48 424 83 009
Loan payable 231 76 081
Trade and other payables 48 193 6 928
Total equity and liabilities 538 612 35 983
Reconciliation of number of shares issued "000 "000
Reported at 1 April 224 942 215 432
Shares issued to Simmers Share Trust 20 290 9 510
Shares issued in terms of rights issue 516 242 -
Shares issued for cash 111 178 -
Shares issued at 31 March 872 652 224 942
Weighted average number of shares 678 514 203 442
Profit/(loss) per share (cents)* 0,24 (22,09)
Diluted profit/(loss) per share (cents)* 0,24 (21,44)
Headline loss per share share (cents)* (11,11) (15,62)
Diluted headline loss per share (cents)* (11,02) (15,16)
Net asset/(liability) value per share (cents)* 26,12 (23,64)
*Based on weighted average number of shares in issue
CONSOLIDATED INCOME STATEMENTS
Audited
Reviewed Restated
year ended at year ended at
31 Mar 2006 31 Mar 2005
Notes R"000 R"000
Revenue 200 348 30 887
Cost of production (226 937) (37 816)
Loss from mining activities (26 589) (6 929)
Amortisation and depreciation 7 (14 680) (6 721)
Management fee received 3 14 044 -
Exploration and other operating
expenditure (47 146) (11 516)
Loss from operations (74 371) (25 166)
Unrealised gain on acquisition
of subsidiary 4 1 203 554 -
Goodwill arising on acquisition
written off 5 (1 066 787) -
Fair value adjustment on loan 12 (63 260) -
Profit/(loss) on disposal of shares
in subsidiaries 6 3 522 (14 001)
Interest received 4 787 65
Finance charges (5 793) (8 665)
Profit/(loss) on ordinary activities
before taxes 1 652 (47 767)
Taxation - -
Profit/(loss) for the year 1 652 (47 767)
Reconciliation between profit/(loss) and headline loss:
Basic profit/(loss) for the year 1 652 (47 767)
Add back:
Profit/(loss) on disposal of subsidiary (3 522) 14 001
Unrealised gain on acquisition of subsidiary (1 203 554) -
Goodwill arising on acquisition written off 1 066 787 -
Fair value adjustment on loan 63 260 -
Headline loss for the year (75 377) (33 766)
CONSOLIDATED CASH FLOW STATEMENTS
Reviewed Audited
year restated
to 12 months to
31 Mar 2006 31 Mar 2005
R"000 R"000
Cash utilised in operations (122 064) (9 821)
Interest received 1 879 65
Finance charges paid (2 044) (149)
Cash flows to operating activities (122 229) (9 905)
Cash flows to investing activities (60 646) (4 676)
Cash flows from finance activities 205 404 13 783
Net increase/(decrease) in cash and
cash equivalents 22 529 (798)
Cash and cash equivalents at beginning of year 521 1 319
Cash and cash equivalents at end of year 23 050 521
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Fair
Treasury value
shares - and Accumu-
Share Share Share other lated Minority
capital premium Trust reserves loss interest Total
R"000 R"000 R"000 R"000 R"000 R"000 R"000
Balance at
1 April
2004 4 309 106 541 (1 199) 160 (114 216) 1 (4 404)
Net loss
for the
year ended (47 767) (47 767)
Treasury
shares
movement 190 2 188 (2 378) -
Share-based
payments 4 073 4 073
Balance
as at
31 March
2005 4 499 108 729 (3 577) 4 233 (161 983) 1 (48 098)
Shares
issued in
terms of
rights
offer 10 325 118 735 129 060
Shares
issued for
cash 2 224 70 530 72 754
Expenses
written off
against
share
premium (2 792) (2 792)
Treasury
shares
movement 405 31 634 (31 839) 200
Share-options
to be
allocated 4 134 (4 134)
Share premium
as a result
of shares
issued in
subsidiary 13 615 5 835 19 450
Net profit
for the
year ended 1 652 1 652
Share-based
payments 8 513 8 513
Minority
interest
movement (3 522) (3 522)
Balance
as at
31 March
2006 17 453 330 970 (39 550) 26 361 (160 331) 2 314 177 217
NOTES TO THE REVIEWED PROVISIONAL FINANCIAL STATEMENTS
1 ACCOUNTING POLICIES
1.1 Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and the Companies Act of South Africa.
The financial statements have been prepared on the historical cost basis, except
for the measurement of non-current assets held for sale and certain financial
instruments stated at fair value. The accounting policies are consistent with
the previous year, except for the changes set out in note 2 First-time adoption
of IFRS.
The Company has made use of the exemption available under IFRS 1 to only apply
IAS 32 and IAS 39 from 1 March 2005.
A copy of the unqualified review opinion of the auditors, Grant Thornton, is
available for inspection at the registered office of the Company.
1.2 Share-based payments
The Company has changed its accounting policy with regard to share-based
payments to comply with IFRS 2. Costs associated with share-based awards to
employees and non-executive directors under the share option scheme are now
charged to the income statement at the date the employee accepts offer of
shares, as this is the date of change in ownership in terms of the share trust
deed.
2 FIRST-TIME ADOPTION OF IFRS
The Group has applied IFRS 1, First-time adoption of IFRS, to provide a starting
point for the reporting under International Financial Reporting and Accounting
Standards. On principle these standards have been applied retrospectively and
therefore the 2005 comparatives contained in these financial statements differ
from those published in the financial statements for the year ended 31 March
2005.
Exemptions from full retrospective application:
- Exemption from restatement of comparatives for IAS 32 and IAS 39
- Share-based payment transaction exemption
The date of transition was 1 April 2004 and the effect of the transition was as
follows:
Reconciliation of loss for 2005
As reported Effects of
under transition
previous GAAP to IFRS IFRS
R"000 R"000 R"000
Revenue 30 887 - 30 887
Cost of production (40 597) (3 940) (44 537)
Loss from mining activities (9 710) (3 940) (13 650)
Other operating expenses (7 697) (3 819) (11 516)
Loss on disposal of subsidiary (14 497) 496 (14 001)
Interest received 65 - 65
Finance charges (8 665) - (8 665)
Equity as reported in terms
of IFRS (40 504) (7 263) (47 767)
Reconciliation of equity
At 1 April 2004 (date of transition) At 31 March 2005
As reported Effects of As reported Effects of
under transition under transition
previous GAAP to IFRS IFRS previous GAAP to IFRS IFRS
R"000 R"000 R"000 R"000 R"000 R"000
Property,
plant and
equipment 61 879 (9 987) 51 892 45 460 (13 180) 32 280
Environmental
rehabilitation
trust
fund 328 - 328 94 - 94
Total non-
current
assets 62 207 (9 987) 52 220 45 554 (13 180) 32 374
Inventories 2 807 - 2 807 1 565 - 1 565
Trade and
other
receivables 2 436 - 2 436 1 520 - 1 520
Cash and
cash
equivalents 1 319 - 1 319 521 - 521
Total
current
assets 6 562 - 6 562 3 606 - 3 606
Interest-
bearing
loan 53 853 - 53 853 76 081 - 76 081
Trade and
other
payables 6 052 - 6 052 6 067 - 6 067
Other
liabilities 2 481 - 2 481 933 - 933
Environmental
rehabilitation
provision 800 - 800 1 000 - 1 000
Total
liabilities 63 186 - 63 186 84 081 - 84 081
Total
assets
less
total
liabilities 5 583 (9 987) (4 404) (34 921) (13 180) (48 101)
Share
capital 110 850 - 110 850 113 228 - 113 228
Treasury
shares in
Simmers
Share
Trust (1 199) - (1 199) (3 577) - (3 577)
Non-
distributable
reserve - 160 160 - 4 233 4 233
Accumulated
loss (104 069) (10 147) (114 216) (144 573) (17 413) (161 986)
Minority
interest 1 1 1 1
Total
equity 5 583 (9 987) (4 404) (34 921) (13 180) (48 101)
3 MANAGEMENT FEE RECEIVED
In July 2005, Simmers entered into an interim agreement with the provisional
liquidators of Buffelsfontein Gold Mines Limited ("Buffelsfontein"). In terms of
the agreement, Simmers took over the surface operations of Buffelsfontein and
received a management fee in return based on the profit made on the surface
operations.
The interim agreement terminated on 20 October 2005, the date the High Court
sanctioned the creditors" scheme of arrangement in terms of Section 311 of the
Companies Act.
4 UNREALISED GAIN ON ACQUISITION OF SUBSIDIARY
The unrealised gain is the result of the following 31 Mar 2006
amounts ceded to the Group with the R"000
acquisition of Buffelsfontein:
Long-term loan 150 000
Subordinated shareholder"s loan 923 729
Ceded creditors, as per Section 311 Scheme of Arrangement 129 825
1 203 554
5 GOODWILL ARISING ON ACQUISITION WRITTEN OFF
On 31 October 2005 (effective date of acquisition), the Group acquired 100% of
the share capital of Buffelsfontein and its subsidiary for R1.
Fair value of the assets acquired:
Property, plant and equipment 231 342
Non-current assets held for sale 25 402
Environmental rehabilitation trust fund 107 179
Other financial assets 11 833
Current assets 30 926
Current liabilities (23 809)
Loans owing to group companies (1 267 419)
Environmental rehabilitation provision (180 000)
(1 064 546)
Costs directly attributable to the acquisition (2 241)
Goodwill written off (1 066 787)
Cash Consideration 66 106
Non-cash portion (1 000 681)
6 PROFIT/(LOSS) ON DISPOSAL OF SHARES IN SUBSIDIARIES
At the beginning of the year Simmers disposed of 26% of its shareholding in
Sabie Mines (Pty) Limited ("Sabie Mines") to Mining Reclamation & Supports (Pty)
Limited ("MRS"), a BEE company, which resulted in a profit on disposal of R3,1
million.
In January 2006, Simmers disposed of 5% of its shareholding in Caledonian Mining
and Exploration Company (Pty) Limited ("Caledonian") to Chris McNight, which
resulted in a profit on disposal of R407 813.
The R14 million loss incurred in the year ended 31 March 2005 relates to the
disposal of Makonjwaan Imperial Mining Company (Pty) Limited ("Mimco") and its
subsidiaries on 31 August 2004.
7 PROPERTY, PLANT AND EQUIPMENT
Additions
through
Opening Ad- acqui- Disposal Amor-
balance ditions sitions of assets tisation Total
R"000 R"000 R"000 R"000 R"000 R"000
Reconciliation - 2006
Land and
buildings 897 - 26 188 - (208) 26 877
Plant and
equipment 5 048 12 107 23 528 - (883) 39 800
Furniture and
fixtures 131 785 1 633 - (229) 2 320
Motor
vehicles 62 - - - (13) 49
Mining
assets 2 035 32 444 178 783 - (5 868) 207 394
Computer
equipment
and
software 139 10 1 210 - (359) 1 000
Development
and infra-
structure 23 745 18 175 - - (6 891) 35 029
Mining
rights 223 826 - - (229) 820
Exploration - 4 109 - - - 4 109
32 280 68 456 231 342 - (14 680) 317 398
Reconciliation - 2005
Land and
buildings 1 101 - 180 (371) (13) 897
Plant and
equipment 13 163 474 - (7 815) (774) 5 048
Furniture and
fixtures 168 108 - (86) (59) 131
Motor
vehicles 720 64 - (697) (25) 62
Mining
assets 2 040 301 - - (306) 2 035
Computer
equipment
and
software - 149 - - (10) 139
Development
and infra-
structure 31 825 6 240 - (10 581) (3 739) 23 745
Mining
rights 2 875 - - (847) (1 805) 223
51 892 7 336 180 (20 397) (6 731) 32 280
Land and buildings to the value of R731 000 (2005: R731 000) have been pledged
as security for the guarantees provided to Eskom.
8 ENVIRONMENTAL REHABILITATION TRUST FUND
The use of these funds is limited to the rehabilitation of the mines as directed
by the trustees.
9 OTHER FINANCIAL ASSETS 31 Mar 31 Mar
2006 2005
R"000 R"000
Investments in unlisted shares
596 shares in Rand Mutual Assurance Company 12 -
24 004 shares in Rand Refinery Limited 10 106 -
10 118 -
Loan receivable 340 -
10 458 -
10 INVENTORIES
Medical supplies 977 -
Consumable stores 5 995 898
Gold in progress 4 567 668
11 539 1 566
11 NON-CURRENT ASSETS HELD FOR SALE
The non-current assets consist of residential houses in Stilfontein. These
houses are held at fair value and are to be sold within the next 12 months.
These assets were acquired through the acquisition of Buffelsfontein.
12 LOAN PAYABLE
Loan payable to Aberdeen International
Incorporated ("Aberdeen") 129 565 -
Simmers entered into an agreement with Aberdeen, a Canadian Exploration and
Royalty Company trading on the TSX, whereby Aberdeen provided a loan facility of
US$10 million to acquire Buffelsfontein. The loan has a 3% coupon up to a gold
price of US$400/oz and 2,5% thereafter. In addition a Net Smelter Return ("NSR")
on Buffelsfontein"s gold production is charged which is linked to the price of
gold, ranging from a 1,5% NSR at US$450/oz to a 5% NSR at gold prices of
US$700/oz or higher.
Simmers has the option of extending the term of the loan for an additional two
years with a minimum repayment of 10% of the existing principal of the loan at
the time of the extension. Aberdeen has the option to convert the debt into
Simmers shares, subject to Simmers shareholders" approval, at R0,80 per share
after the first anniversary of the loan. The loan has a three-year term.
The loan is secured with a bond over Buffelsfontein"s North Plant.
The loan, royalties and options have been fair valued taking the following
assumptions into account:
- valuation date = 31 March 2006
- redemption date = 31 December 2008
- R/US$ = 6,15
- share price = R1,62 as at 31 March 2006
- volatility = 125%
- dividend yield = 0%
- discount curves = US$ swap curve for $ cash flows and R swap curve for R
valuation (on 31 March 2006)
- lifetime of royalties = 20 years
- gold share = remain at current levels (such that interest rate is 2,5%)
13 ENVIRONMENTAL REHABILITATION PROVISION
31 Mar 31 Mar
2006 2005
R"000 R"000
Provisions have been made as follows:
Transvaal Gold Mining Estates Limited 2 995 1 000
Buffelsfontein 180 000 -
182 995 1 000
Both mines" environmental rehabilitation provisions have been reviewed by GCS
(Pty) Limited, a water environmental engineering and science consulting company.
The provisions are based on the estimated net cost for the respective company to
rehabilitate its mine. If clean closure costs are taken into account, the total
provision for 2006 will be R292 million after taking into account salvages.
Having received the updated rehabilitation provision estimate, the trust fund
will be reviewed in due course.
14 CONTINGENCIES
Guarantees in favour of Eskom 161 -
15 COMMITMENTS
Authorised capital expenditure
- Contracted 3 194 1 325
16 RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Related parties
Directors M McChesney
Shareholders Consolidated Mining Management Services Limited
("CMMS")
C McNight
Companies Cheston Minerals (Pty) Limited ("Cheston")
Mining Reclamation & Supports (Pty) Limited
Horizon Blue Resources
Related party transactions
Cheston - management fee paid - 3 000
MRS - management fee paid 876 146
Horizon Blue Resources - fees paid for
geological services rendered 5 941 -
Related party balances
Loan payable to MRS 411 72
Loan payable to CMMS 231 76 081
17 DIVIDENDS
The Board has resolved not to declare any dividend to shareholders for the
period under review.
Incorporated in the Republic of South Africa
(Registration number 1924/007778/06) Share code SIM
ISIN ZAE000006722 ("Simmers" or "the Company"
or "the Group")
Transfer secretaries
South Africa Computershare Investor Services 2004 (Pty) Ltd Ground Floor, 70
Marshall Street Johannesburg, 2001 Republic of South Africa
United Kingdom office St. James"s Corporate Services Limited
6 St. James"s Place, London, SWIA INP United Kingdom
United Kingdom Capita Registrars The Registry 34 Beckenham Road
Beckenham, Kent, BR3 4TU United Kingdom
Registered office
5 Press Avenue, Selby Johannesburg, 2025 Republic of South Africa
Sponsor
Sasfin Capital A division of Sasfin Bank Limited Sasfin Place,
North Block 13 - 15 Scott Street, Waverley Johannesburg, 2090
Republic of South Africa
Directors: NRG Brunette (Independent Non-Executive Chairman) BJ Njenje (Non-
Executive Vice-Chairperson) GT Miller (Chief Executive Officer) JdeV Berry
(Executive Director) GP Wanblad (Executive Director) GJ Jacobs (Executive
Director) JP Schumacher (Independent Non-Executive Director) AV Mkele (Non-
Executive Director)
DH Brown (Independent Non-Executive Director) K Wakeford (Independent Non-
Executive Director) AX Sisulu (Non-Executive Director) V Watson (Non-Executive
Director) S Mapisa (Non-Executive Director) E Oosthuizen (Alternate Director
to JP Schumacher)
www.simmers.co.za
Date: 30/06/2006 02:53:20 PM Produced by the JSE SENS Department
