CMO - Statement of changes
CHROMETCO LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE007020249
("Chrometco" or "the Company")
CHANGE STATEMENT, POSTING ANNOUNCEMENT AND NOTICE OF ANNUAL GENERAL MEETING
Shareholders of the Company (“Shareholders”) are hereby advised that the Company’s annual report incorporating the full audited consolidated annual financial statements of the Company for the year ended 28 February 2019 (“Integrated Annual Report”) and the notice of the annual general meeting of the Company (“AGM”) was dispatched to Shareholders today, 3 July 2019, and contains the following changes to the reviewed results which were announced on SENS on Tuesday, 4 June 2019:
Changes in the Consolidated Statement of Financial Position as at 28 February 2019
The following changes relating to the 2019 Statement of financial position were made:
- Impairment of Goodwill of R40.4 million after the SENS results were released, this was due to the impact of the decrease in the current chrome price on the long term forecasted chrome prime. This resulted in a decrease in Total Assets of 2.7% and an increase in the accumulated losses of 57.1%. The full goodwill impairment was allocated to the owners of the parent.
- There was a reclassification between the deferred tax liability and the tax payable (included in Trade and other payables) amounting to R5.0 million, resulting in a decrease the deferred tax liability of 4.6% and increase in trade and other payables of 1.3%.
- The change in ownership between Accumulated loss and Non-controlling interest was restated by R3.3 million to R40.8 million.
|
Reviewed results as at 28 February 2019 issued on SENS R'000 |
Final Audited as results as at 28 February 2019 R’000 |
Absolute Change % |
|
|
ASSETS Non-current assets |
1,062,512 |
1,022,047 |
9.6% |
|
Tangible assets |
975,051 |
975,051 |
|
|
Intangible assets |
- |
- |
|
|
Goodwill |
40,465 |
- |
100.0% |
|
Other financial assets |
35,421 |
35,421 |
|
|
Deferred taxation asset |
3,524 |
3,524 |
|
|
Environmental rehabilitation obligation investments |
8,051 |
8,051 |
|
|
Current assets |
418,324 |
418,324 |
|
|
Trade and other receivables |
46,430 |
46,430 |
|
|
Inventory |
112,776 |
112,776 |
|
|
Cash and cash equivalents |
45,611 |
45,611 |
|
|
Non-current assets held-for-sale |
213,507 |
213,507 |
|
|
Total assets |
1,480,836 |
1,440,371 |
2.7% |
|
|
|
||
|
EQUITY AND LIABILITIES |
|
|
|
|
Capital and reserves |
561,993 |
521,528 |
|
|
Stated capital |
388,512 |
388,512 |
|
|
Accumulated losses |
(65,188) |
(102,380) |
57.1% |
|
Attributable to equity owners of the parent |
323,324 |
286,132 |
11.5% |
|
Non-controlling interest |
238,669 |
235,396 |
1.4% |
|
Non-current liabilities |
304,540 |
299,499 |
1.6% |
|
Deferred taxation liability |
110,201 |
105,160 |
4.6% |
|
Borrowings |
97,016 |
97,016 |
|
|
Other financial liabilities |
42,666 |
42,666 |
|
|
Finance lease liability |
32,287 |
32,287 |
|
|
Environmental rehabilitation provision |
22,370 |
22,370 |
|
|
Current liabilities |
614,303 |
619,344 |
0.8% |
|
Trade and other payables |
390,545 |
395,586 |
1.3% |
|
Cash and cash equivalents – structured finance facility |
97,634 |
97,634 |
|
|
Borrowings |
22,282 |
22,282 |
|
|
Finance lease liability |
59,814 |
59,814 |
|
|
Non-current liabilities held-for-sale |
44,028 |
44,028 |
|
|
Total equity and liabilities |
1,480,836 |
1,440,371 |
2.7% |
Changes in the Consolidated Statement of Comprehensive Income for the year ended 28 February 2019
The changes in the Consolidated statement of Comprehensive income is due to the following adjustments:
- Impairment of goodwill as described above.
- Reclassification of amortisation to income from discontinued operations of R0.7 million
- Reclassification of expenses from Finance charges to Other income and expenses due to incorrect classification on the Statement of Comprehensive Income.
Loss per share increased from -2.05 cents per share to -3.86 cents per share as results of the impairment of goodwill. Headline loss per share remained unchanged.
|
|
Reviewed results for the year ended 28 Feb 2019 issued on SENS |
Final audited results for the year ended 28 Feb 2019 |
Absolute Change |
|
|
|
R'000 |
R'000 |
% |
|
|
|
|
|
||
|
Revenue |
|
1,307,564 |
1,307,564 |
|
|
Cost of sales |
|
(1,062,856) |
(1,061,675) |
0.1% |
|
Gross profit |
|
244,708 |
245,889 |
0.5% |
|
Depreciation and amortisation |
|
(168,439) |
(167,772) |
0.4% |
|
Other income |
|
10,875 |
6,240 |
42.6% |
|
Other expenses |
|
(99,236) |
(84,206) |
15.1% |
|
Salaries |
|
(56,997) |
(56,997) |
|
|
Professional fees |
|
(19,712) |
(19,712) |
|
|
Maintenance expenses |
|
(1,224) |
(1,224) |
|
|
Impairments |
|
(8,738) |
(49,203) |
463.1% |
|
Income from discontinued operation |
|
4,441 |
3,774 |
15.0% |
|
Gain on bargain purchase |
|
- |
- |
|
|
Investment income |
|
1,274 |
1,274 |
|
|
Finance charges |
|
(36,492) |
(48,068) |
31.7% |
|
Loss before tax |
|
(129,540) |
(170,005) |
31.2% |
|
Taxation |
|
16,334 |
16,334 |
|
|
Loss for the year |
|
(113,206) |
(153,671) |
35.7% |
|
Other comprehensive income |
|
- |
- |
|
|
Total comprehensive loss for the year |
|
(113,206) |
(153,671) |
35.7% |
|
|
|
|
||
|
Attributable to: |
|
|
|
|
|
Owners of the parent |
|
(45,435) |
(85,900) |
29.1% |
|
Non-controlling interest |
|
(67,771) |
(67,771) |
|
|
|
|
|
||
|
Basic loss per share (cents) |
|
(2.05) |
(3.87) |
89% |
|
Diluted loss per share (cents) |
|
(2.05) |
(3.87) |
89% |
|
Headline loss per share (cents) |
|
(1.86) |
(1.86) |
|
Changes in the Consolidated Statement of Comprehensive Income for the year ended 28 February 2018
The changes in the Consolidated statement of Comprehensive income is due to the following adjustments:
- A change in accounting policy which affected the 2018 published results, resulting in a R7.8 million reclassification from Other expenses to Cost of Sales.
|
|
Audited results For the year ended 28 Feb 2018 R'000 |
RESTATED Audited results for the year ended 28 Feb 2018 |
Absolute change |
|
|
|
R'000 |
% |
||
|
|
|
|
||
|
Revenue |
10 |
336,764 |
336,764 |
|
|
Cost of sales |
|
(254,015) |
(261,834) |
3.1% |
|
Gross profit |
|
82,749 |
74,930 |
9.4% |
|
Depreciation and amortisation |
|
(46,953) |
(46,953) |
|
|
Other income |
|
10,897 |
10,897 |
|
|
Other expenses |
|
(19,844) |
(12,025) |
39.4% |
|
Salaries |
|
(16,833) |
(16,833) |
|
|
Professional fees |
|
(7,186) |
(7,186) |
|
|
Maintenance expenses |
|
(2,870) |
(2,870) |
|
|
Impairments |
11 |
(153,530) |
(153,530) |
|
|
Income from discontinued operation |
|
- |
- |
|
|
Gain on bargain purchase |
|
9,923 |
9,923 |
|
|
Loss before interest and tax |
|
(143,648) |
(143,648) |
0% |
Changes in the Consolidated Statement of Cash Flows for the year ended 28 February 2019
The changes in the Consolidated Statement of Cash Flows is due to the following adjustments:
- Non-cash finance charge included in Settlement of Other financial liabilities.
|
Reviewed results for the year ended 28 Feb 2019 issued on SENS |
Final audited results for the year ended 28 Feb 2019 |
Absolute Change |
|||
|
R'000 |
R'000 |
% |
|||
|
Cash flows from operating activities |
|
||||
|
Cash utilised by operations and exploration activities |
256,010 |
267,585 |
4.5% |
||
|
Operating profit before working capital changes |
98,000 |
109,575 |
11.8% |
||
|
Working capital changes |
158,010 |
158,010 |
|
||
|
Interest received |
- |
- |
|
||
|
Finance cost |
- |
- |
|
||
|
Tax paid |
(3,709) |
(3,709) |
|
||
|
Net inflow from operating activities |
252,301 |
263,870 |
4.6% |
||
|
|
|||||
|
Cash flows from financing activities |
|
||||
|
Shares issued |
- |
- |
|
||
|
Group loan repayment |
- |
- |
|
||
|
Finance lease payments |
(76,041) |
(76,041) |
|
||
|
Borrowings - settled on acquisition |
- |
- |
|
||
|
Repayment of borrowings |
|
(38,446) |
(38,446) |
|
|
|
Settlement of other financial liabilities |
|
(23,396) |
(34,972) |
49.5% |
|
|
Borrowings obtained |
|
25,058 |
25,058 |
|
|
|
Drawdown on bank facility |
|
13,009 |
13,009 |
|
|
|
Net cash outflow from financing activities |
(99,815) |
(111,392) |
11.6% |
||
|
|
|||||
|
Changes in the Consolidated Statement of Changes in Equity for the year ended 28 February 2019
The changes in the Consolidated Statement of Changes in Equity is due to the following adjustments:
|
|
|
|
Stated Capital
R’000 |
Accumulated loss
R’000 |
Non-controlling Interest R’000 |
Total
R’000 |
|
Balance at 28 February 2018 |
388,512 |
(49,607) |
176,301 |
515,206 |
|
|
Reviewed as at 28 Feb 2019 issued on SENS |
- |
||||
|
Non-controlling interest share of loss for the year |
- |
- |
(67,771) |
(67,771) |
|
|
Total comprehensive loss for the year |
- |
(45,435) |
- |
(45,435) |
|
|
Transaction with shareholders: Conversion of borrowings to loans |
- |
- |
167,218 |
167,218 |
|
|
Transactions with a shareholder: change in share holding |
|
- |
29,854 |
(37,079) |
(7,225) |
|
Balance at 28 February 2019 |
|
388,512 |
-(65,188) |
238,669 |
561,993 |
|
|
|
Stated capital |
(Accumulated loss)/ retained earnings |
Non-controlling interest |
Total |
|
Final audited as at 28 Feb 2019 |
|
R'000 |
R'000 |
R'000 |
R'000 |
|
Non-controlling interest share of loss for the year |
- |
- |
(67,771) |
(67,771) |
|
|
Total comprehensive loss for the year |
- |
(85,900) |
- |
(85,900) |
|
|
Transaction with shareholders: Conversion of borrowings to loans |
- |
- |
167,218 |
167,218 |
|
|
Transaction with shareholders: change in shareholding |
|
- |
40,897 |
(40,897) |
- |
|
Transaction with owners: Change in estimate |
|
- |
(8,338) |
- |
(8,338) |
|
Transactions with a shareholder: Gain on acquisition |
- |
568 |
545 |
1,113 |
|
|
Balance at 28 February 2019 |
388,512 |
-(102,380) |
- 235,396 |
521,528 |
Changes in the Notes to the financial statements for the year ended 28 February 2019
|
Reviewed as at 28 Feb 2019
|
Audited as at 28 Feb 2019
|
|||||
|
R'000 |
R'000 |
|||||
|
15. Borrowings |
||||||
|
Opening balance |
331,364 |
331,364 |
||||
|
Interest Incurred |
8,728 |
11,207 |
||||
|
Loans obtained from related parties |
|
25,058 |
25,058 |
|||
|
Borrowings repayment |
|
(38,446) |
(38,446) |
|||
|
Loan settlement upon acquisition of Sail Resources |
|
(80,332) |
(80,332) |
|||
|
Loan acquired as part of transactions with shareholders |
|
27,731 |
27,731 |
|||
|
Change in estimate |
12,413 |
8,338 |
||||
|
Transaction with IDC shareholder |
(167,218) |
(167,218) |
||||
|
Closing balance |
119,298 |
119,298 |
||||
|
|
|
|
||||
|
25. Impairments |
|
|
||||
|
|
|
|
||||
|
Impairment of non-current assets held for sale |
5,062 |
5,062 |
||||
|
Impairment of other financial assets |
3,676 |
3,676 |
||||
|
Impairment of goodwill |
- |
40,465 |
||||
|
|
8,738 |
49,203 |
||||
|
|
|
|
||||
|
29.3 Headline loss per share |
|
|
||||
|
|
|
|
||||
|
Loss after taxation attributable to equity holders of the Group |
(45,435) |
(85,900) |
||||
|
Impairment, net of tax |
4,044 |
44,509 |
||||
|
Headline earnings |
(41,391) |
(41,391) |
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
The Integrated Annual Report is also available on the Company’s website, at www.chrometco.co.za as from today, 3 July 2019.
NOTICE OF AGM
Notice is hereby given that the AGM will be held at 10:00 on Thursday, 8 August 2019 at Sail Minerals Pty Ltd, Unit 25 Sunninghill Office Park, Sunninghill, Johannesburg to transact the business as set out in the notice of AGM which forms part of the Integrated Annual Report.
The date on which Shareholders must be recorded as such in the share register of the Company to be eligible to vote at the AGM is Friday, 2 August 2019 with the last day to trade being Tuesday, 30 July 2019.
Johannesburg
3 July 2019
Designated Advisor
PSG Capital