|
CMO
CMO
Chrometco - Audited Consolidated Financial Results: Year Ended 28 February 2006
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO & ISIN: ZAE000070249
("Chrometco" or "the group")
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY
2006
BALANCE SHEET Audited Provisional Audited
as at as at as at
28 Feb 28 Feb 28 Feb
2006 2006 2005
R"000 R"000 R"000
ASSETS
Non-current assets 245 244 2 961
Property, plant and equipment 245 244 235
Intangible assets - - 2 600
Other long-term receivables - - 126
Current assets 2 119 2 128 256
Inventories 53 53 53
Trade and other receivables 239 248 5
Cash and cash equivalents 1 827 1 827 198
Total assets 2 364 2 372 3 217
EQUITY AND LIABILITIES
Capital and reserves 1 043 1 079 1 033
Issued capital 1 1 1
Share premium 11 946 11 946 2 013
Accumulated loss (10 904) (10 868) (981)
Non-current liabilities 96 132 1 954
Long-term liabilities - 32 1 819
Long-term borrowings 96 100 135
Current liabilities 1 225 1 161 230
Trade and other payables 1 101 1 071 167
Provisions 52 52 3
Current portion of long-term
borrowings 38 38 34
Taxation payable 34 - 26
Total equity and liabilities 2 364 2 372 3 217
Net asset value per share 0.72 1.64 0.77
(cents)
Net tangible asset value per 0.72 1.64 0.77
share (cents)
Closing number of shares 144 442 144 442 133 520
(`000)
INCOME STATEMENT
Audited Provisional Audited
12 months 12 months 12 months
ended ended ended
28 Feb 28 Feb 28 Feb
2006 2006 2005
R"000 R"000 R"000
Revenue - 172
Cost of sales - (125)
Gross profit - 47
Other income 11 11 2
Operating expenses 5 169) (5 141) (1 074)
Fair value adjustment for
non-derivative financial liabilities (182) (182) 182
Impairment of intangible assets 4 600) (4 600) -
Net loss before interest
and taxation (9 940) (9 912) (843)
Investment income 41 41 5
Finance charges (24) (16) (19)
Net loss before taxation (9 923) (9 887) (857)
Taxation - - -
Attributable to minority interest 0.1 0.1 0.5
Net Loss for the period (9 923) (9 887) (857)
Reconciliation between earnings and headline earnings
per share
Basic loss per share (cents) (7.00) (8.08) (0.89)
Diluted loss per share (cents) (7.00) (8.08) (0.89)
Headline loss per share for the year ended 28February 2006
Loss for the year (9 923) (9 887)
Adjustments:
Fair value adjustment 182 182
Impairment loss 4 600 4 600
Headline loss attributable
to ordinary shareholders (5 141) (5 105)
Headline loss per share (cents) (3.62) (4.17) (1.08)
Weighted average number of
shares (`000) 141 851 122 300 96 494
CASH FLOW STATEMENTS
Audited Provisional Audited
12 months 12 months 12 months
ended ended ended
28 Feb 28 Feb 28 Feb
2006 2006 2005
R"000 R"000 R"000
Cash flows from operating
activities (4 162) (4 584) (875)
Cash flows from investing
activities (106) 98 (702)
Cash flows from financing
activities 5 897 6 115 1 305
Net movement in cash and cash
equivalents 1 629 1 629 (272)
Cash and cash equivalents at
the beginning of the period 198 198 470
Cash and cash equivalents at
the end of the period. 1 827 1 827 198
STATEMENT IN CHANGES OF EQUITY
Capital Minority Accumulated
and Premium interest Reserve Loss Total
R"000 R"000 R"000 R"000 R"000
Balance at 1
March 2004 591 - - (124) 467
Issue of shares 1 424 - - - 1 424
Net loss for
the period - (0.5) - (857) (857)
Change in share
holding of - 0.5 - - 0.5
subsidiaries
Balance at 28
February 2005 2 015 - - (981) 1 034
Change in share
holding of
subsidiaries - 0.1 - - 0.1
Issue of
shares 9 932 - - - 9 932
Net loss for
the period - (0.1) - (9 923) 9 923)
Balance at 28
Feb 2006 11 947 - - (10 904) 1 043
COMMENTARY - Financial and operational overview.
1. The directors present the audited consolidated financial results for the
twelve months ended 28 February 2006. The unqualified audited report by RMS
Betty and Dickson will be available for inspection at the company"s registered
offices.
2. Basis of preparation
The accounting policies of the group comply in all material respects with
("IFRS") International Financial Reporting Standards and the Companies Act of
1973. The accounting policies and methods of measurement and recognition is
consistent with those applied in the financial period ended 28 February 2005.
3. Investments are valued at cost.
4. Nature of business.
The company is involved in the exploration of chrome resources and the possible
beneficiation thereof, as well as investigations into parallel activities in
copper, cobalt and nickel.
5. General review of operations.
Chrometco Limited was listed on the Alt"X sector of the JSE on 12th August
2005.
During the period under review, the group engaged in the following
activities:-
Chrometco completed a scoping drilling activity on the chrome reserves
located on the farm Naboom 451KS. The results of this drilling programme,
as tabled below, were positively accepted by the company, but the cost of
establishing a mine and processing infrastructure is still to be fully
ascertained by completing a bankable feasibility study, and early
indications are that this would be extremely expensive. Subsequent to
financial year end, the board has accordingly decided not to renew the
option agreement on Naboom.
Table 1: Average Thickness, Concentration and Expected Recovery from
Diamond Drilling on the farm Naboom 451 KS
Unit Corrected Expected Average Average Average Comments
Thickness Recovery Cr2O4 FeO Cr/Fe
(m) (%) (%) (%)
MG4 3.5 45 30 - 33 20 - 22 1.35 Alternating Chromitite
and Pyroxenite (waste)
Layers
MG3 1.2 70 33 - 35 20 - 23 1.40 Two chromitite layers
with intercalated
pyroxenite middling
MG2 2.5 51 39 - 41 23 - 25 1.41 Three chromitite
Layers (A, B and C)
with intercalated
Pyroxenite layers
LG6 1.8 85 40 - 43 21 - 25 1.50 Fine to medium-grained
with numerous
oikocrysts
LG5 0.3 85 38 - 39 21 - 24 1.50 Bottom layer of LG5
unit ( other layers
too thin)
A total of seven (7) diamond drill boreholes (1256.12m) were drilled and
completed during February 2006 on the farm Naboom 451 KS.
Expected ROM recovery was determined from estimated mining and geological
losses for the investigated area.
The Ingonyama Copper/Cobalt refinery feasibility study is complete and once
sufficient funding is in place the board will vote on its development.
6. Going Concern
The financial statements have been prepared on the going concern basis,
since the directors have reason to believe that the company has adequate
resources in place and available to it from its shareholders to continue in
operation for the foreseeable future.
The directors have taken the following steps and placed into action the
following plans to ensure the company"s ability to continue as a going
concern:
* February 2006, management visited numerous potential providers of
finance in London and returned feeling comfortable with the positive
reception they had received during their brief stay. Messrs.
Williamson and Simons also made enquiries regarding a Secondary
Listing of Chrometco Limited on the AIM Sector of the London Stock
Exchange (LSE).
* August 2006, a private placement of ordinary shares took place in
order for the company to obtain further cash resources (refer to the
discussion of significant subsequent events for further information).
The funds received will allow the Company to resume exploration
activities on Rooderand, as well as to initiate an exploration
programme on its nickel interests and to establish a copper operation.
Currently, the Company also intends to pursue an immediate cash
generating opportunity in copper ingot trading.
* ploration activities indicate the presence of sufficient chrome
resources to warrant further exploration with the aim of defining a
Measured Reserve on Rooderand 46 QJ.
The group"s ability to continue as a going concern is dependant on the
successful conclusion of the above actions together with the implementation and
establishment of the potential opportunities detailed.
The annual financial statements will be posted to shareholders today.
For and on behalf of the board of directors.
S.H.Simons
Operations Director
30th August 2006
Designated Advisor & Company Secretary
River Group (Proprietary) Limited
(Registration number 2000/025913/07)
Parc Nouveau Building
225 Veale Street, Brooklyn.
Pretoria.
(P.O.Box 166, Groenkloof, 0027)
Directors.
B.A.Williamson (Chairman), S.H.Simons (COO), J.R.Francey (CFO), E.Bramley,
T.W.Scott.
Registered Office.
Office 8, Morgenster Building
Date: 31/08/2006 11:33:12 AM 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 ] | |||||||||||||
|
|||||||||||||
