| Wed 18 Oct 2006, 14:15 | | Good Hope - Reviewed results for the year ended 30 |
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GDH
GDH
Good Hope - Reviewed results for the year ended 30 June 2006
Good Hope Diamonds (Kimberley) Limited
(Registration number 1983/013789/06)
Share code: GDH & ISIN: ZAE000050381
("Good Hope" or "the company")
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2006
All figures in R000"s
Consolidated Income Statement
Year ended Year ended
30 June 2006 30 June 2005
(reviewed) (audited)
Revenue 92 2,144
Operating loss 4,989 3,194
Depreciation 1,235 1,324
Profit on discontinued operations - (5,314)
Net interest paid 1,814 1,217
Attributable loss 8,038 421
Number of shares in issue 122,000 122,000
Headline loss per share (cents) 6.59 4.71
Loss per share (cents) 6.59 0.35
Reconciliation between loss
and headline loss
Attributable loss 8,038 421
Profit on discontinued operations - 5,314
Profit on fair valuation of listed shares 5 11
Headline loss 8,043 5,746
Consolidated Balance Sheet
30 June 2006 30 June 2005
(reviewed) (audited)
Assets
Non-current assets 100,375 100,260
Property, plant and equipment 97,787 95,222
Long-term receivables - 3,306
Investments 2,588 1,732
Current assets 3,181 5,693
Operating assets 3,075 5,674
Cash and cash equivalents 106 19
Total Assets 103,556 105,953
Equity and Liabilities
Capital and reserves 70,183 78,221
Share capital and premium 125,955 125,955
Accumulated loss (55,772) (47,734)
Non-current liabilities
Interest bearing borrowings 22,746 14,322
Current liabilities 10,627 13,410
Operating liabilities 1,429 3,270
Interest bearing liabilities 9,198 10,140
Total Equity and Liabilities 103,556 105,953
Net asset value per share (cents) 57.53 64.12
Statement of Changes in Equity
Year ended Year ended
30 June 2006 30 June 2005
(reviewed) (audited)
Balance at
beginning of year 78,221 88,725
Realisation of premium on
acquisition of subsidiaries - (10,083)
Net loss for the year (8,038) (421)
Balance at end of year 70,183 78,221
Consolidated Cash Flow Statement
Year ended Year ended
30 June 2006 30 June 2005
(reviewed) (audited)
Cash flow from
operating activities (4,231) (7,351)
Net interest paid (1,814) (1,217)
(6,045) (8,568)
Cash flow from
investing activities (4,656) 13,799
Cash flow from
financing activities 11,730 (14,794)
Net increase in cash
and cash equivalents 1,029 (9,563)
Cash and cash equivalents
at beginning of year (10,121) (558)
Cash and cash equivalents
at end of year (9,092) (10,121)
Commentary
As previously reported, the company has been involved in a protracted legal
dispute regarding a loan account in Diamond Land Mining (Pty) Ltd, a dormant
subsidiary of the company, which has been placed into liquidation. In terms of
an agreement with the opposing legal counsel, the group gave an undertaking not
to dispose of any assets of the two mining companies, Don Diamonds (Pty) Ltd
("Don") and Good Hope Diamonds and Estates (Pty) Ltd ("Estates"), the owners of
the Loxton and Frank Smith mines respectively, and this undertaking included the
non-disposal of any rough diamonds. However, the company is in the process of
bringing an urgent application for the rescinding of the liquidation and all
undertakings.
Since June 2005, the Loxton mine has been mining and stockpiling kimberlite ore
from under-ground, and recently began processing the ore and sorting the rough
diamonds. However, despite the mining activities, the group has been unable to
sell any of its rough diamond stock, as explained above. In addition, the Frank
Smith mine continues to be hampered by the lack of a mining licence which was
not renewed by the previous owner of the mine at the time the company acquired
the mine. Estates has made a new application for a mining licence to the
Department of Minerals and Energy, however, the approval is dependent on the
Frank Smith mine having a BEE partner. The company has been negotiating with a
number of prospective BEE groups, however, to date; no BEE partner has been
finalized. The company is confident that a BEE partner will be finalized in the
very near future. Without any mining operations able to take place at Frank
Smith, this mine remains under care and maintenance.
As previously stated, until the group is in a position to fund itself, the
necessary funding continues to be provided by the El Shaddai Trust, a trust
controlled by a shareholder and director of the company. This funding, and any
future funding, has been secured by registering mortgage and notarial bonds over
the properties and equipment owned by Don and Estates.
The trust has given the group an undertaking that it will continue to fund the
group"s operations for the foreseeable future.
Management is aware that the positive turnaround of the mines has taken longer
than expected. This delay has been due mainly to the lack of the Frank Smith
mining licence, the abovementioned legal dispute which has diverted management"s
focus, and, the undertaking by the group not to sell any of its rough diamonds.
Management is confident that the legal dispute will be settled in the near
future, and this should also allow the group to finalise a BEE partner which
will then allow the mines to come into full production.
Dividend
No dividend has been declared nor is one recommended in respect of the financial
year under review.
Board of Directors
There were no changes to the board of directors during the financial year under
review.
Auditors
Chartered Accountants Inc. was reappointed, at the last annual general meeting,
as auditors for the group for the financial year under review.
Accounting Policies and Review
The accounting policies comply with International Financial Reporting Standards,
and have been consistently applied.
The financial information set out above has been reviewed, but not audited, by
the group"s auditors, Ashton Chartered Accountants Inc. The review report is
available for inspection at the registered office of the Company.
G Schauder
Company Secretary
Hyde Park
27 September 2006
Directors:
E Cambouris (Managing), G Schauder (Financial), J Kossowsky*, Y Kossowsky*, F
Pieterse*
(American * Non-executive)
Registered office:
Ashton House, 51 Lebombo Street, Ashlea Gardens, 0181
Transfer secretaries:
Computershare Investor Services 2004 (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Sponsor:
LPC Manhattan Moela (Pty) Ltd
4th Floor, South Office Tower, Hyde Park Shopping Centre, Hyde Park, 2196
Date: 18/10/2006 02:15:29 PM Produced by the JSE SENS Department
