CMO - Chrometco Ltd - Reviewed Interim Financial Results for the Six Months

CMO
CMO - Chrometco Ltd - Reviewed Interim Financial Results for the Six Months
Ended 31 August 2011
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE000070249
("Chrometco" or "the group" or "the company")
INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2011 AND FURTHER
CAUTIONARY ANNOUNCEMENT.
ABRIDGED STATEMENT OF FINANCIAL POSITION
Reviewed Reviewed Audited
Interim Interim for year
as at as at as at
31 August 31 August 28
February
2011 2010 2011
R'000 R'000 R'000
ASSETS
Non-current assets 31 1 232 46
Tangible assets 31 57 46
Deferred taxation 1 175 -
Other long-term receivables - - -
Current assets 36 009 29 770 39 211
Trade and other receivables 1 861 1 320 1 552
Cash and cash equivalents 34 148 28 450 37 659
Total assets 36 040 31 002 39 257
EQUITY AND LIABILITIES
Capital and reserves 28 960 29 908 38 817
Issued capital 2 2 2
Share premium 35 485 35 485 35 485
(Accumulated loss) / Retained earnings (6 527) (5 579) 3 330
Non-current liabilities 6 640 - 386
Deferred taxation 6 640 - 386
Current liabilities 440 1 094 54
Trade and other payables 440 169 54
Taxation payable 925 -
Total equity and liabilities 36 040 31 002 39 257
Net asset value per share 15.66 16.17 20.99
(cents)
Net tangible asset value per 15.66 16.17 20.99
share (cents)
Closing number of shares 184 929 184 929 184 929
(`000)
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Reviewed Audited
Interim Interim for
year
6 months 6 months ended
ended ended 28
February
31 August 31 August 2011
2011 2010
R'000 R'000 R'000
Revenue - - -
Cost of sales - - -
Gross profit - - -
Other income - 7 318
Reversal of impairment loss - - 13 000
Operating expenses (4 444) (4 466) (8 077)
Net (loss)/ profit before interest
and taxation (4 444) (4 459) 5 241
Investment income 841 1 043 1 813
Net (loss) / profit before taxation (3 603) (3 416) 7 054
Taxation (6 254) (345) (1 906)
Net (loss) / profit for the period (9 857) (3 761) 5 148
Other comprehensive income - - -
Total comprehensive (loss) / profit for
the period (9 857) (3 761) 5 148
Reconciliation between earnings and headline earnings
per share
Basic (loss) / earnings per share (cents)(5.33) (2.03) 2.78
Diluted (loss) / earnings
per share (cents) (5.33) (2.03) 2.78
Headline (loss) / earnings per share for the half year ended 31 August 2011
Total comprehensive profit / (loss)
for the six months (9 857) (3 761) 5 148
Adjustments:
Profit on disposal of
subsidiary - (7) (7)
Reversal of impairment on long term
receivable - - (13 000)
Impairment of receivable - - 251
Headline loss attributable
to ordinary shareholders (9 857) (3 768) (7 608)
Headline loss per share (cents) (5.33) (2.04) (4.11)
Weighted average number of
shares (`000) 184 929 184 929 184 929
CASH FLOW STATEMENTS
Reviewed Reviewed Audited
Interim Interim for year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2011
2011 2010
R'000 R'000 R'000
Cash flows from operating
activities (3 511) (3 809) (7 534)
Cash flows from investing
activities - (14) 12 993
Cash flows from financing
activities - (9 172) (9 246)
Net movement in cash and cash
equivalents (3 511) (12 995) (3 787)
Cash and cash equivalents at
the beginning of the period 37 659 41 445 41 446
Cash and cash equivalents at
the end of the period. 34 148 28 450 37 659
STATEMENT IN CHANGES OF EQUITY
Capital Retained
and Premium Earnings Total
R'000 R'000 R'000
Balance at 1
March 2010 35 487 7 429 42 916
Total comprehensive
profit for the year - 5 148 5 148
Dividends paid - (9 247) (9 247)
Balance at 28
February 2011 35 487 3 330 38 817
Balance at 1
March 2011 35 487 3 330 38 817
Total comprehensive
loss for the six
months ended 31
August 2010 - (9 857) (9 857)
Balance at 31
August 2011 35 487 (6 527) 28 960
COMMENTARY - Financial and operational overview.
1. The directors present the interim financial results for the six months ended
31 August 2011.
2. Basis of preparation
The accounting policies of the company comply in all material respects with
recognition and measurement criteria of International Financial Reporting
Standards ("IFRS") and its interpretations adopted by the International
Accounting Standards Board ("IASB") in issue and effective at 31 August 2010, as
well as the presentation and disclosure requirements of IAS 34 - Interim
Financial Reporting, the JSE Limited Listings Requirements, the Companies Act of
2008 and the AC 500 series as issued by the Accounting Practices Board and/or
its successor. The accounting policies and methods of measurement and
recognition are consistent with those applied in the financial period ended 31
August 2010.
3. These results have been reviewed by the company's independent auditors RSM
Betty & Dickson (Johannesburg). Their unmodified review report is available for
inspection at the company's registered office during ordinary business hours.
4. Long term receivables are measured at amortised cost less accumulated
impairment losses.
5. Nature of business.
The company is involved in the exploration of mineral resources and the possible
beneficiation thereof.
6. General review of operations.
During the six months under review, the company focused its attention on the
following important issues:-
- In May of this year, the company prepared and distributed a circular to
shareholders concerning the conditional disposal of Rooderand to DCM Chrome. At
a general meeting of shareholders held in June of this year, shareholders voted
against the conditional disposal of Rooderand to DCM Chrome.
- Evaluation of alternatives relating to the Rooderand project
- Updating the mineral resources and reserves statement, Competent Persons
Report and valuation of Rooderand
- Conversion of "old order" mineral rights to "new order" mining rights in terms
of the Mineral and Petroleum Resources Development Act; and
- Optimisation of the allocation of capital resources.
- Overseeing the company's interest in the mining and management agreement with
DCM Chrome. In terms of this agreement, Chrometco is entitled to receive R 10
million in cash on 3 December 2011. The company has impaired the receivable
relating to amounts owed by DCM Chrome. Reversal of the impairment on this
receivable will take place if and when the probability of recovering the balance
owed by DCM Chrome increases.
7. Changes in measurement of deferred taxation balances relating to Rooderand
proceeds
Deferred taxation liabilities relating to the receipt of proceeds under the
mining and management agreement with DCM Chrome have previously been recognised
at capital gains tax rates. In light of the outcome of the general meeting of
shareholders in May of this year, deferred taxation liabilities relating to the
Rooderand proceeds have been measured at normal tax rates due to the expectation
that the revised tax rates would be expected to apply to the settlement of these
deferred tax liabilities in the future.
8. Prospects
The group currently has a chrome mine in the North West province of the Republic
of South Africa.. Subsequent to the termination of the mining and management
agreement with DCM Chrome on 3 December 2011, the company intends to commence
mining operations for their own account on the Rooderand site.
The company is also interested in the exploration and beneficiation of mineral
resource opportunities in the Republic and elsewhere
9. Changes to the board
There have been no changes to the composition and structure of the board of
directors during the period under review.
10. Dividends
No dividend has been declared for the interim period.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 2 November 2011, shareholders are
advised to continue to exercise caution when dealing in the company's securities
until a further announcement is made.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
28th November 2011
Directors: JG Scott (Chairman), PJ Cilliers (MD),E Bramley (Non-executive), TW
Scott (FD).
Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited.
Company Secretary: CIS company Secretaries (Pty) Ltd
Registered Office:
70 Marshall Street
Johannesburg
2001
(P.O.Box 3787, Dainfern. 2055)
www.chrometco.co.za
Date: 28/11/2011 17:42:31 Produced by the JSE SENS Department.
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