CMO - CHROMETCO LIMITED - Change Statement

CHROMETCO LIMITED 

(Incorporated in the Republic of South Africa) 

(Registration number: 2002/026265/06) 

Share code: CMO 

ISIN Code: ZAE000070249 

(“Chrometco” or “the Company”) 

 

CHANGE STATEMENT 

 

Shareholders are hereby advised that Chrometco’s annual report, containing the audited condensed group financial statements for the year ended 29 February 2016, was dispatched to shareholders today, and contains one modification to the reviewed results that were announced on SENS on 31 May 2016 as well as a modified report of the Company’s auditors, Mazars. 

 

The change was a reallocation of revenue to other income, which better represented the nature of the income item recognised.  This resulted in a decrease in revenue and increase in other income amounting to R 2 493 049. The change is reflected as follows: 

	Previously reported Rands	Annual Report Rands
Revenue	3 894 195	1 401 146
Gross Profit	3 894 195	1 401 146
Other Income	317 403	2 810 452

 

 

Shareholders are referred to the SENS announcement released on 25 August 2016 wherein, inter alia, a recapitalisation of the Company was announced. In light of the agreements disclosed therein, the auditors have issued a modified audit report for the year ended 29 February 2016.

 

The modification takes the form of an emphasis of matter drawing attention to the fact that the Company incurred a net loss of R39,936 million, although the Company is still solvent. The limited trading due to the cessation of mining operations, resulting in recurring losses and cash outflows.  The Company has entered into conditional agreements which will see the recapitalisation of the Company as well as the acquisition of a chrome mine and a chrome prospecting right in order to mitigate this. The current position of the Company as well as the conditions attached to the agreements indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern.