| Wed 21 Feb 2007, 9:09 | | ASR - Assore Limited - Interim results for the hal |
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ASR
ASR
ASR - Assore Limited - Interim results for the half-year ended 31 December 2006
Assore Limited
Company registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000017117
INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2006
* Attributable earnings for six months increased by 104,5% to R299,9 million
* Interim dividend increased from 80 cents to 150 cents per share
* Increased sales volumes for all products
* Higher US dollar prices for iron ore and manganese alloys
* Construction underway on the 8,4 million tons per annum Khumani iron ore mine
CONSOLIDATED INCOME STATEMENT
Half-year ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
R`000 R`000 R`000
Turnover 1 864 865 1 410 131 3 382 587
Cost of sales (1 402 621) (1 126 013) (2 783 365)
Gross profit 462 244 284 118 599 222
Profit on disposal of investments - - 145 777
Discount on BEE transaction - - (35 752)
Other income 99 152 61 748 217 999
Other expenses (92 766) (94 529) (204 571)
Finance costs (8 538) (10 495) (15 284)
Profit before taxation 460 092 240 842 707 391
Income tax expense (148 577) (85 462) (227 569)
Profit for the period 311 515 155 380 479 822
Earnings attributable to:
Equity holders of the parent 299 939 146 670 457 384
Minority interests 11 576 8 710 22 438
As above 311 515 155 380 479 822
Earnings per share (cents) 1 107,6 523,8 1 651,2
Headline earnings per share 1 102,3 523,5 1 169,4
(cents)**
Dividends per share (cents) 300 230 230
- Interim 150* 80* 80
- Final 150 150 150
* Declared after period end
** Determination of headline
earnings
Attributable earnings per income
statement as above 299 939 146 670 457 384
Profit on disposal of listed
investments (net of tax) - - (129 085)
Profit on disposal of property,
plant and equipment (net of tax) (1 427) (82) (4 366)
Headline earnings 298 512 146 588 323 933
Weighted average number of
ordinary shares (million)
Ordinary shares in issue 28,00 28,00 28,00
Treasury shares (0,92) - (0,30)
Weighted average ordinary shares 27,08 28,00 27,70
Net asset value per share (Rand) 106,7 82,7 96,2
Capital expenditure (R million) 365,6 159,5 389,9
Capital commitments (R million) 2 234,4 195,4 2 116,9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half-year ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
R`000 R`000 R`000
SHARE CAPITAL AND RESERVES
Balance at beginning of period 131 964 99 579 99 579
Shares issued during the period - - 55
Shares repurchased during the - - (55)
period
Share premium on shares issued
during the period - - 30 358
Net increase in the market value
of listed investments 36 310 95 243 6 508
Deferred taxation on changes in
market value of listed investments (5 265) (9 411) (5 388)
Transfer to/(from) foreign
currency
translation reserve 42 (792) 907
Balance at end of period 163 051 184 619 131 964
RETAINED EARNINGS
Balance at beginning of period 2 421 878 1 993 142 1 993 142
Attributable earnings for the 299 939 146 670 457 384
period
Shares issued at a discount - - 35 752
Ordinary dividends paid
No 99 aggregating R1,50 per share
(2005: R1,50 per share) (42 000) (42 000) (64 400)
Balance at end of period 2 679 817 2 097 812 2 421 878
PER BALANCE SHEET 2 842 868 2 282 431 2 553 842
CONSOLIDATED BALANCE SHEET
At At At
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
R`000 R`000 R`000
ASSETS
Non-current assets
Property, plant, equipment and
intangible assets 2 312 387 1 480 683 2 023 210
Long-term loans receivable - 2 693 -
Investments 206 060 332 481 169 750
Total non-current assets 2 518 447 1 815 857 2 192 960
Current assets
Inventories 900 338 794 450 896 152
Trade and other receivables 683 389 475 294 648 021
Cash resources 146 736 221 430 171 835
Total current assets 1 730 463 1 491 174 1 716 008
TOTAL ASSETS 4 248 910 3 307 031 3 908 968
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders` interest 2 842 868 2 282 431 2 553 842
Outside shareholders` interest 40 582 33 029 51 114
2 883 450 2 315 460 2 604 956
Treasury shares (85 895) - (78 526)
Total equity 2 797 555 2 315 460 2 526 430
Non-current liabilities
Deferred taxation 555 915 387 665 544 844
Long-term liabilities 127 245 62 708 122 312
Total non-current liabilities 683 160 450 373 667 156
Current liabilities
Interest bearing 309 516 265 009 253 454
Non-interest bearing 458 679 276 189 461 928
Total current liabilities 768 195 541 198 715 382
TOTAL EQUITY AND LIABILITIES 4 248 910 3 307 031 3 908 968
CONSOLIDATED CASH FLOW STATEMENT
Half-year ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
R`000 R`000 R`000
Cash generated from operations 347 571 67 745 469 973
Cash utilised in investing (408 184) (143 173) (678 158)
activities
Cash generated by financing 35 514 21 292 86 961
activities
Decrease in cash for the period (25 099) (54 136) (121 224)
Cash resources at beginning
of period 171 835 275 566 293 059
CASH RESOURCES PER
BALANCE SHEET 146 736 221 430 171 835
COMMENTARY
Attributable earnings for the six months ended 31 December 2006 have increased
by 104,5% to R299,9 million (2005: R146,7 million) due mainly to the significant
increase in earnings of Assmang Limited (Assmang) in which the group holds a 50%
interest and which is proportionately consolidated in accordance with the
group`s accounting policies.
Assmang`s earnings increased by 91% compared to the same period of the previous
year due to increased sales tonnages for all products as set out in the table
below and the increased revenues which resulted from the weaker Rand/US dollar
exchange rate during the period. The results were also affected by a substantial
increase in US dollar prices for iron ore and manganese alloys, but lower US
dollar prices for manganese ore largely offset the higher sales volumes achieved
during the period.
SALES VOLUMES
Sales volumes for the six month period were as follows:
Six months ended
31 December
2006 2005 Volume %
tons tons increase
Iron ore 2 782 506 2 599 779 7
Manganese ore * 1 045 698 573 407 82
Manganese alloys 132 891 129 512 3
Charge chrome 107 205 89 064 20
Chrome ore * 69 017 55 935 23
* Excluding intra-group sales
CAPITAL EXPENDITURE
Assmang continued its capital expenditure programme with the focus being on the
new Khumani iron ore mine near Kathu in the Northern Cape. Capital expenditure
at Assmang amounted to R657 million (2005: R313 million) during the period under
review. Of this, R441 million was spent on the construction of the first phase
of the new Khumani iron ore mine and R43 million on furnace rebuilds at
Assmang`s Machadodorp ferrochrome smelter.
Construction of the 8,4 million tons per annum Khumani iron ore mine commenced
in June 2006 and during the period under review the mining right authorisation
was received from the Department of Minerals and Energy (DME). The first
production from this operation is expected during the first half of calendar
2008 and the project will be funded largely from operating cash flows and by
utilising debt facilities at the Assmang level.
Subsequent to the approval of the capital expenditure for an 8,4 million tons
per annum mine, Transnet has increased the allocation awarded to 10 million
tons, which is currently being evaluated with a view to acceptance.
Further expansion to increase production capacity to 16,8 million tons per annum
at an additional cost of approximately R1,6 billion (US$223 million) has been
designed and is currently being evaluated.
OUTLOOK
Markets for all of the group`s products remain fairly buoyant and tonnages in
the second half should approximate those in the first half. US dollar prices for
iron ore are expected to increase by approximately 10% with effect from 1 April
while prices for other products are expected to be maintained at current levels
for the remainder of the financial year. The Rand/US dollar exchange rate will
continue to be an important factor in determining earnings for the year.
DIVIDENDS
The results for the period include the final dividend of 150 cents (2005: 150
cents) which was declared on 30 August 2006 and paid to shareholders on 26
September 2006.
Included in this announcement is the declaration of an increased interim
dividend of 150 cents per share (2005: 80 cents per share) which will be paid to
shareholders on or about Monday, 19 March 2007. In accordance with group
accounting policies this interim dividend is not included in the results for the
period under review as it was declared after 31 December 2006.
ACCOUNTING POLICIES
The financial information included in this announcement was prepared in
accordance with International Financial Reporting Standards (IFRS), which is
consistent with the basis used in the previous reporting period.
DECLARATION OF INTERIM DIVIDEND
Interim dividend No 100 of 150 cents per share was declared on 19 February 2007,
in the currency of the Republic of South Africa. In accordance with STRATE, the
following dates apply to the dividend declared:
The last date to trade to qualify for the dividend (and for changes of address
or dividend instructions) will be Friday, 9 March 2007.
The company`s ordinary shares will commence trading ex dividend from the
commencement of business on Monday, 12 March 2007.
The record date will be Friday, 16 March 2007.
Dividend cheques in payment of this dividend to holders of certificated shares
will be posted on or about Monday, 19 March 2007. Electronic payment to holders
of certificated shares will be undertaken simultaneously.
Holders of dematerialised shares will have their accounts at their Central
Securities Depository Participant or broker credited on Monday, 19 March 2007.
Share certificates may not be dematerialised or rematerialised between Monday,
12 March 2007 and Friday, 16 March 2007, both days inclusive.
On behalf of the board
Desmond Sacco CJ Cory
Chairman Chief Executive Officer
Johannesburg
21 February 2007
Directors
Executive
Desmond Sacco (Chairman) RJ Carpenter (Deputy Chairman) CJ Cory (Chief
Executive Officer) PC Crous (Technical and Operations)
Non-executive
PN Boynton MC Ramaphosa BM Hawksworth Dr JC van der Horst
Alternate
JW Lewis (British) R Smith
Registered office
Assore House
15 Fricker Road
IIlovo Boulevard
Johannesburg 2196
Company secretaries
African Mining and
Trust Company Limited
Transfer office
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street
Johannesburg 2001
Date: 21/02/2007 09:09:00 Produced by the JSE SENS Department.
