CMO - CHROMETCO LIMITED - Interim - Consol Results

Chrometco Limited
(Incorporated in the Republic of South Africa) (Registration number 2002/026265/06)
Share code: CMO    ISIN: ZAE00007020249
("Chrometco" or "the group" or “the company”)
INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 
 
Unaudited Interim 
as at 
31 August 2015
R'000
Unaudited Interim
as at
31 August 2014
R'000
Audited  for year
as at
28 February 2015
R'000
ASSETS
 
 
  
 
Non-current assets 184 715 194 629 187 597
Tangible assets
2 223
19
2 267
Intangible Assets
180 316
187 175
183 751
Deferred Taxation 
-
 7 435
- 
 
Environmental Rehabilitation Investments 2 176 - 1 579
Current assets
5 335
11 554
8 373
Inventories
-
79
-
Trade and other receivables
518
395
1 039
Cash and cash equivalents
4 817
11 080
 7 334
Total assets
190 050
206 183
195970
 
EQUITY AND LIABILITIES      
Capital and reserves
155 753
173 791
160 927
Stated capital
54 187
54 187
54 187
Retained earnings
69 970
86 797
74 539
Attributable to ordinary Shareholders
124 157
140 984
128 726
Non-Controlling Interest
31 596
32 807
32 201
Non-current liabilities
33 525
31 553
33 865
Deferred taxation
30 448
31 553
30 963
Environmental Rehab Provision
3 077
-
2 902
Current liabilities
772
839
1 178
Trade and other payables
762
287
1 168
Provisions
10
10
10
Taxation payable
-
542
-
Total equity and liabilities
19 0050
206 183
195 970
Net asset value per share (cents)
76.00
84.81
78.53
Net tangible asset value per share (cents) 2.87 8.87 3.97
Closing number of shares (`000)
204 929
204 929
204 929
 
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
 
Unaudited Interim
6 months ended
31 August 2015
Unaudited Interim 6 months ended
31 August 2014
 Audited for
year ended 
  28 February 2015
R'000
R'000
R’000
Revenue
1 401
63
672
Other income
-
-
1 102
Amortisation of intangible assets
(3 437)
(3 451)
(6 873)
Operating expenses
(3 746)
(4 220)
(8 749)
Net loss before interest and taxation (5 782) (7 608) (13 848)
Investment income
176
269
536
Finance Charges
(85)
-
(157)
Net loss before taxation
(5 691)
(7 339)
(13 469)
Taxation
517
2 180
(4 553)
Loss for the year
(5 174)
(5 159)
(18 022)
Total Comprehensive Loss
(5 174)
(5 159)
(18 022)
Attributable to non-controlling interest
(605)
(605)
(1 210)
Attributable to the owners of the parent
(4 569)
(4 554)
(16 812)
Loss per share      
Basic loss per share(cents) (2.23) (2.22) (8.20)
Diluted loss per share (cents) (1.66) (1.66) (6.12)
 
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
                                                                   .                                                                       
 
Unaudited Interim
6 months ended
31 August 2015
  R'000
Unaudited Interim
6 months ended
31 August 2014
R'000
Audited for
year ended
   28 February 2015
R’000
Cash flows from operating activities
(1 919)
(3 845)
(6 012)
Cash flows from investing activities
(598)
(18)
(1 597)
Cash flows from financing activities
-
-
-
Net movement in cash and cashequivalents
 (2 517)
(3 863)
(7 609)
Cash and cash equivalents at the beginning of the period
7 334
14 943
14 943
Cash and cash equivalents at the end of the period
 4 817 11 080 7 334
 
CONDENSED CONSOLIDATED STATEMENT IN CHANGES OF EQUITY
 
 
 
 Stated Capital
Non Controlling Interest
 Retained Earnings Total
 
 R'000
R'000
 R'000 R'000
Balance at 1 March 2014
54 187
33 412
 91 351  178 950
Non controlling interest share of loss for
the six months ended 31 August 2014
   -
(605)
  -   (605)
Total comprehensive loss for the period  
 -  
-
 (4 554)  (4 554)
Balance at 31 August 2014 
 54 187   32 807 86 797 173 791
Non controlling interest share of loss for
the six months ended 28 February 2015  
  -   (605) - (605)
Total comprehensive loss for the six months ended 28 February 2015  - -  (12 258) (12 258)
Balance at 28 February 2015 54 187 32 201 74 539 160 927
Non controlling interest share of loss for the six months ended 31 August 2015 - (605) - (605)
Total comprehensive loss for the six months ended 31August 2015 - - (4 569) (4 569)
Balance at 31 August 2015 54 187 31 596 69 970 155 753
COMMENTARY – Financial and operational overview.
 
1.  The directors present the interim consolidated financial results for the six months ended 31 August 2015.
 
2.  Basis of preparation
The condensed consolidated group annual financial statements for the period ended 31 August 2015 have been prepared in accordance with the framework concepts and the recognition and measurement criteria of International Financial Reporting Standards (“IFRS”), and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council as well as the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting, the JSE Listings Requirements and the Companies Act of South Africa.
 
3.  Significant accounting policies
The unaudited consolidated condensed results have been prepared under the historical cost convention, except for the valuation at fair value of intangible assets comprising mining rights and geological information acquired as part of a business combination or by share based payment transaction. The group accounting policies and methods of measurement and recognition comply in material respects with IFRS and are consistent with those applied in the financial period ended 28 February 2015 and 31 August 2014.
 
4.  Intangible assets comprising geological information are amortised over their expected remaining useful life of 26.25 years.
 
5.  New order mining rights for chrome at Rooderand are amortised over their expected remaining useful life of 26.25 years. 
 
6.  Headline loss per share for the half year ended 31 August 2015
 
 
Total comprehensive loss for the six months
 
(4 569)
 
(4 554)
 
(16 812)
Headline loss attributable to ordinary shareholders
 
(4 569)
 
(4 554)
 
(16 812)
 
Headline loss per share (cents)
 
(2.23)
 
(2.22)
 
(8.20)
Diluted Headline loss per share 
(1.66)
(1.66)
(6.12)
Weighted average number of shares (`000) 204 929 204 929 204 929
Diluted weighted average number Of shares (‘000)
 
274 929
 
274 929
 
274 929
 
 
7.  These results have been prepared under the supervision of the Financial Director, MB Scott(CA)SA, and have not been audited or reviewed by the Group's auditors, Mazars.
 
8.  Going Concern
The Board has considered the going concern assertion in terms of which the interim results are presented, and concluded that although cash flow uncertainties exist in the next 12 months, active management of cash flows will ensure that the assertion remains valid. The major uncertainty relates to the quantum and timing of receipt of the outstanding amounts owed by IFM to the group as referred to in note 11 below,
 
9.  Nature of business.
The company is involved in the mining and exploration of mineral resources and the possible further beneficiation thereof.
 
10.  General review of operations.
During the six months under review, the company focused its attention on the following important issues:-

-  Mining Chrome Ore at Rooderand in accordance with the second phase of the agreement with IFM as well as an ongoing exploration and drilling program.

-  DMR related activities required to conclude the acquisition of the PGM prospecting rights from Nkwe Platinum SA and Realm Resources, which has been concluded post this financial period and resulted in the issue of 70 million new CMO shares, 35 million to Realm and NKWE respectively.

-  Evaluating ways to extract value from the Rooderand mining assets as well as evaluating other opportunities.

 
11.  Prospects
The group currently has a chrome and PGM mine in the North West province of the Republic of South Africa and is focusing on the further consolidation of the resources on and around its Rooderand property while simultaneously extracting value from its chrome and PGM resources.
The IFM agreement saw mining commence on Rooderand in the 2014/2015 year. Whilst this was a significant step for the company at the time, IFM entered business rescue proceedings in August 2015 and chrome mining at Rooderand has consequently ceased for the time being. The group remains a creditor of IFM and the prospects for recovering the R2.8m due to the group depends on the terms of the business rescue plan to be proposed by the appointed Business Rescue Practitioners.
The company continues to look at other mineral related mining, exploration and beneficiation opportunities in this very depressed market.
 

12.  Changes to the board
During the period under review, Mr T Scott resigned as Financial Director, and Mr MB Scott (no relation) was appointed in his stead on 1 July 2015. Mr M Scott has subsequently resigned from the Board with effect from 1 December 2015.

 

13.  Dividends
No dividend has been declared for the interim period.

 

For and on behalf of the board of directors

PJ Cilliers
Managing Director
30 November 2015

 
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-executive), E Bramley (Non- executive), IWS Collair (Non-executive), R McConnachie (Non-executive – alternate), MB Scott (FD).
 
Designated Advisor: PSG Capital (Pty) Ltd.
Company Secretary: The Green Board CC
 
Registered Office:
71 Van Beek Avenue Glenanda Johannesburg 2091
(P.O.Box 758, Mondeor. 2110)

 

Ticker: 
CMO
CategoryTypeCD: 
C
Source: 
JSE Security Exchange - SENS
DateTime: 
30/11/2015 - 08:50
Date: 
30/11/2015