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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Petmin | LSE:PTMN | London | Ordinary Share | ZAE000076014 | ORD ZAR0.25 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 11.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMPTMN RNS Number : 0827O Petmin Limited 02 March 2009 Petmin Limited (Incorporated in the Republic of South Africa) (Registration number 1972/001062/06) JSE code: PET AIM code: PTMN ISIN: ZAE000076014 ("Petmin" or "the Company" or "the Group") Condensed Consolidated Reviewed Financial Statements for the six months ended 31 December 2008 and resignation of director "Developing projects into high-yielding, cash generative assets" JSE- and AIM-listed mining and processing company Petmin Limited today (2 March 2009) announced that its operations generated R165 million in cash for the six months ended 31 December 2008, an increase of 195% compared with R56 million during the corresponding period in 2007. Highlights * Revenue increased 54% to R490 million (6 months to 31 December 2007 R319 million) reflecting a strong operating performance for the period * Cash from operating activities increased 195% to R165 million (6 months to 31 December 2007: R56 million) * Headline earnings per share ("HEPS") increased 81% to 11.82 cents from 6.52 cents * SAMREC compliant report for SamQuarz indicates a life-of-mine in excess of 40 years * SAMREC compliant report on additional resources at Somkhele expected shortly * Disposal of Springlake for approximately R150 million on track Commenting on the results, Bradley Doig, Chief Operating Officer, said: "With low gearing, profitable and cash generative assets, the proceeds to be received on the disposal of Springlake and undrawn banking facilities of R160 million, Petmin is in a strong position both to review undercapitalised assets or opportunistic value enhancing propositions to increase shareholder wealth and to weather the current financial crisis facing the world." Commentary (i) Operations Revenue for the six months ended 31 December 2008 increased by R171 million or 54% to R490 million compared to the R319 million for the six months ended 31 December 2007. Gross profit was R115 million, an increase of R47 million or 69% compared to the R68 million in 2007. The increased revenue and profitability was as a result of strong performances from all the operations in the six months to 31 December 2008. The anthracite division's profit before tax for the year ended 30 June 2008 was reduced by impairment charges of R14.7 million. This includes R13.3 million which was provided on the classification of the Springlake Group as an asset held for sale, as the proceeds on the sale of Springlake are not adjusted for profits generated by Springlake after 30 June 2008. In accordance with accounting rules, the fair value of the investment in Veremo Holdings Limited was reviewed and, after capitalisation of expenses of R15 million, R32 million was recognised as a share of profits of equity accounted investee. Cash of R165 million (2007: R56 million) was generated by the operations. Capital expenditure of R170 million was incurred in the six months to 31 December 2008 (2007: R55 million: R106 million was spent on exploration drilling and mine development programmes to expand operations (R79 million related to "pre-stripping" the open pits at Somkhele; R18 million on the construction of the de-stoning plant and workshops at Somkhele Colliery; R4 million was spent on installation of power generators at SamQuarz and; R42 million on plant and mining equipment and capital projects that are work-in-progress. In the six months ended 31 December 2008, Petmin acquired 4 869 390 of its own shares at an average price of 200 cents per share. Of these shares, 2 000 000 were transferred to the Springlake vendors to settle the contingent consideration payable in terms of the warranty clauses in the Springlake acquisition agreement. The ratio of interest bearing debt to equity at 31 December 2008 was 7.13% compared to 7.01% at 30 June 2008. An amount of R19 million was drawn on the de-stoning plant finance facility at Somkhele. The Group has debt facilities of approximately R160 million with its bankers that are currently not utilised. Anthracite division Somkhele anthracite mine, Springlake Colliery and Petmin Logistics In the six months to 31 December 2008, the anthracite division increased sales by 85 795 tonnes or 14% compared to the six months ended 31 December 2007 and increased production by 4%. Profits from the anthracite division increased by 70% compared to the six months ended 31 December 2007, despite the inclusion of impairment charges of R14.7 million mentioned above. The increased profits emanated from improved export sales at Springlake and the ramp up of sales to the inland metallurgical market at Somkhele in the six months to December 2008. Mining at Somkhele is progressing well and the accelerated exploration programme has outlined additional resources in close proximity to the current plant site. Indications are that the drilling programme will yield additional resources in this new area. A SAMREC compliant report to announce the additional mineral resource has been commissioned and is expected shortly. The Group acquired the remaining 30% interest in Petmin Logistics from the minority shareholders. The Group now holds 100% of Petmin Logistics. Petmin Logistics has contracted with the South African Port Authorities to provide a dedicated export facility at Richards Bay for a minimum of 600 000 tonnes per year for four years. Negotiations to renew the contract for an additional three years are underway and various opportunities to increase the Group's export capability in Richards Bay are being investigated. The planned sale of Springlake Colliery is progressing well, and the Competition Commission has approved the transaction. The final remaining condition precedent is the Section 11 approval required in terms of the Mineral and Petroleum Resources Development Act. In terms of the sale agreement, the consideration due for Springlake was amended by the change in the net asset value of Springlake up to 30 June 2008. Any profits or losses generated by the colliery subsequent to 30 June 2008 do not alter the consideration payable by the purchaser. Springlake generated profits in excess of R20 million in the six months to 31 December 2008 and consequently the sale proceeds are now R13 million less than the carrying value of Springlake in the Group accounts. Management has therefore accounted for an impairment charge of R13 million on those assets. The Springlake assets have been disclosed as an "asset held for sale" as at 31 December 2008. At 31 December 2008, assets held for sale included trade and other receivables of R40 million, inventory of R39 million, property plant and equipment of R102 million, and restricted investments of R12 million. At 31 December 2008 liabilities held for sale included trade payables of R33 million, taxation payable of R5 million, deferred tax of R22 million, interest bearing loans of R6 million and environmental rehabilitation provisions of R17 million. Silica division SamQuarz silica mine SamQuarz produced 815 235 (2007: 615 887) and sold 902 513 (2007: 630 089) tonnes of silica and chert in the six months ended 31 December 2008. Revenue increased by 47% to R101 million (2007: R69 million) due to improved prices negotiated on key sales contracts and due to improved sales volumes of chert in the construction sector. Capital expenditure has been focused on increasing production capacity both in the open-pit and the plant to ensure that customers' increased demand levels can be reliably attained. The installation of an emergency generator was completed in the six months to 31 December 2008. The exploration programme culminated in the production of a SAMREC compliant reserve and resource statement that confirmed proven and probable reserves of 60.64 million tonnes of quartzite and 11.48 million tonnes of chert, resulting in a life-of-mine in excess of 40 years, as detailed in the company's Annual Report for the year ended 30 June 2008 and distributed to shareholders on 22 December 2008. (ii) Investment in the Veremo pig-iron project As reported in the 30 June 2008 Annual Report, in terms of IFRS, the valuation of a business combination may be reviewed within 12 months of the acquisition date. In the six months ended 31 December 2008, management reviewed the valuation of the project as more certainty has been provided by an independent review of the resource statements and by a better understanding of the metallurgical processes required to treat the ore. The result of the review is that the fair value of the Group's investment in the project was increased by R32 million after expenses of R14 million were capitalised to the cost of the investment. The required prospecting permit renewals were submitted in the period under review and progress was made on the validation of all historical geological and metallurgical data. (iii) Prospects The results of the Group to 31 December 2008 do not reflect the impact of the current economic crisis and worldwide recession as the reduction in off-takes to the metallurgical sector only commenced towards the end of the period under review. The economic downturn has had a severe impact on the metallurgical sector and we forecast that our sales to this sector will be affected at both the Silica and Anthracite divisions. Silica division Management expects SamQuarz to maintain current production and slightly lower sales volumes in the six months to 30 June 2009 as the demand for the crusher run material (as a product that is being used in the building and maintenance of roads) remains robust and the glass sector continues to produce at similar levels. Sales to the metallurgical markets are not expected to recover until the latter half of calendar 2009. The metallurgical sector is the least profitable market that SamQuarz sells to, and as a result, the impact of reduced sales to this sector on SamQuarz's profit is not expected to be material. Capital expenditure is forecast to reduce in the six months to 30 June 2009 as the work on the exploration programme has been completed and the bulk of the expansion of the plant has been completed. Anthracite division Subsequent to the reporting date of 31 December 2008, the anthracite division has experienced a reduction in demand for its products in the inland metallurgical markets as the local ferrochrome industry has reduced its production by approximately 90%. At the time of writing this report, the Company has seen some demand return, albeit slowly. This reduction in revenues from the inland market will be offset by the increased revenues emanating from the commencement of sales with an average selling price well in excess of the $62.50 per tonne received in the six months to 31 December 2008. These expected sales are in terms of the three year export contract for 1.05 million tonnes concluded in the period under review. In terms of this contract, we expect to sell 145 000 tonnes at $118 per tonne in the six months to 30 June 2009 and approximately 325 000 tonnes and 375 000 tonnes in the years ending 30 June 2010 and 2011 respectively at similar prices. We have hedged our sales in the six months to 30 June 2009 at an average Rand/Dollar exchange rate of R9.55/$1.00. The construction of the de-stoning plant at Somkhele is progressing well and it is expected to be commissioned and fully operational in the six months ending 30 June 2009. Management plans to maintain the current production levels at Somkhele, but will reduce the rate of development expenditure as the investment in the past eighteen months has ensured that there is a sufficient pit-room to support the current production profile for at least 12 months ahead. The current exploration drilling programme has been completed and a SAMREC compliant reserve and resource statement is being compiled. Planned capital expenditure to 30 June 2009 will be approximately R30 million and Somkhele expects to have a tax shield from unredeemed capital allowances of approximately R240 million at 30 June 2009. The Springlake Colliery disposal awaits ministerial approval and the sale proceeds of approximately R150 million will boost the group's cash resources. We expect the transaction to be concluded by 30 June 2009. Veremo In the ensuing period, management will focus on ensuring that: - the renewal of the prospecting permits are secured; - the geological validation programme is completed and; - the magnetic separation flow sheet required for the production of pig iron is finalised. Management is in negotiations regarding the conversion of the loan of R21.5 million made to Veremo Holdings Limited into an increased equity stake in Veremo. By order of the Board P J Nel J C du Preez Chairman Chief Executive Officer Johannesburg 26 February 2009 Reviewed Condensed Consolidated Income Statement for the six months ended 31 December 2008 +--------------------------------------+-------+------------+------------+-----------+ | GROUP | | Reviewed | Reviewed | Audited | +--------------------------------------+-------+------------+------------+-----------+ | | | Six months | Six months | Year | +--------------------------------------+-------+------------+------------+-----------+ | | | ended | ended | ended | +--------------------------------------+-------+------------+------------+-----------+ | | | 31 | 31 | 30 June | | | | December | December | | +--------------------------------------+-------+------------+------------+-----------+ | | | 2008 | 2007 | 2008 | +--------------------------------------+-------+------------+------------+-----------+ | | Note | R'000 | R'000 | R'000 | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Revenue | | 490 359 | 318 637 | 672 997 | +--------------------------------------+-------+------------+------------+-----------+ | Cost of sales | | (375 569) | (250 654) | (502 753) | +--------------------------------------+-------+------------+------------+-----------+ | Gross Profit | | 114 790 | 67 983 | 170 244 | +--------------------------------------+-------+------------+------------+-----------+ | Administration expenses | | (21 440) | (18 597) | (52 453) | +--------------------------------------+-------+------------+------------+-----------+ | Impairment loss on assets classified | | | | | +--------------------------------------+-------+------------+------------+-----------+ | as held for sale | | (13 392) | - | - | +--------------------------------------+-------+------------+------------+-----------+ | Impairment loss on goodwill acquired | | (1 327) | - | - | +--------------------------------------+-------+------------+------------+-----------+ | Results from operating activities | | 78 631 | 49 386 | 117 791 | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Net finance expense | | (3 773) | (1 573) | (3 773) | +--------------------------------------+-------+------------+------------+-----------+ | - Finance income | | 5 460 | 1 560 | 7 676 | +--------------------------------------+-------+------------+------------+-----------+ | - Finance expenses | | (9 233) | (3 133) | (11 449) | +--------------------------------------+-------+------------+------------+-----------+ | Share of profit of equity accounted | | | | | +--------------------------------------+-------+------------+------------+-----------+ | investee | (ii) | 32 635 | 61 706 | 303 133 | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Profit before income tax | | 107 493 | 109 519 | 417 150 | +--------------------------------------+-------+------------+------------+-----------+ | Income tax expense | | (26 346) | (16 358) | (36 736) | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Profit for the period | | 81 147 | 93 161 | 380 414 | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Attributable to: | | | | | +--------------------------------------+-------+------------+------------+-----------+ | - Equity holders of Petmin Limited | | 81 525 | 93 100 | 380 353 | +--------------------------------------+-------+------------+------------+-----------+ | - Minority interest | | (378) | 61 | 61 | +--------------------------------------+-------+------------+------------+-----------+ | Profit for the period | | 81 147 | 93 161 | 380 414 | +--------------------------------------+-------+------------+------------+-----------+ | | | | | | +--------------------------------------+-------+------------+------------+-----------+ | Basic earnings per ordinary share | | | | | +--------------------------------------+-------+------------+------------+-----------+ | (cents) | 6 | 15.15 | 19.30 | 75.43 | +--------------------------------------+-------+------------+------------+-----------+ | Diluted earnings per ordinary share | | | | | +--------------------------------------+-------+------------+------------+-----------+ | (cents) | 6 | 14.72 | 18.89 | 74.15 | +--------------------------------------+-------+------------+------------+-----------+ Reviewed Condensed Consolidated Cash Flow Statement for the six months ended 31 December 2008 +------------------------------------+--------------+-------------+-----------+ | GROUP | Reviewed | Reviewed | Audited | +------------------------------------+--------------+-------------+-----------+ | | Six months | Six months | Year | +------------------------------------+--------------+-------------+-----------+ | | ended | ended | ended | +------------------------------------+--------------+-------------+-----------+ | | 31 December | 31 December | 30 June | +------------------------------------+--------------+-------------+-----------+ | | 2008 | 2007 | 2008 | +------------------------------------+--------------+-------------+-----------+ | | R'000 | R'000 | R'000 | +------------------------------------+--------------+-------------+-----------+ | | | | | +------------------------------------+--------------+-------------+-----------+ | Net cash flow from operating | 165 059 | 56 316 | 157 153 | | activities | | | | +------------------------------------+--------------+-------------+-----------+ | | | | | +------------------------------------+--------------+-------------+-----------+ | Cash flows from investing | | | | | activities | | | | +------------------------------------+--------------+-------------+-----------+ | Acquisition of subsidiary net of | | | | | cash | | | | +------------------------------------+--------------+-------------+-----------+ | acquired | - | - | 502 | +------------------------------------+--------------+-------------+-----------+ | Increase in investment in | | | | | rehabilitation | | | | +------------------------------------+--------------+-------------+-----------+ | funds | (622) | (188) | (1 064) | +------------------------------------+--------------+-------------+-----------+ | Investment in equity accounted | (15 352) | (20 346) | (11 064) | | investee | | | | +------------------------------------+--------------+-------------+-----------+ | Acquisition of property, plant | | | | +------------------------------------+--------------+-------------+-----------+ | and equipment | (170 113) | (55 138) | (228 767) | +------------------------------------+--------------+-------------+-----------+ | - to expand operations | (160 273) | (55 138) | (216 155) | +------------------------------------+--------------+-------------+-----------+ | - to maintain operations | (9 840) | - | (12 612) | +------------------------------------+--------------+-------------+-----------+ | Net cash flow from investing | (186 087) | (75 672) | (240 393) | | activities | | | | +------------------------------------+--------------+-------------+-----------+ | | | | | +------------------------------------+--------------+-------------+-----------+ | Cash flows from financing | | | | | activities | | | | +------------------------------------+--------------+-------------+-----------+ | Proceeds from specific and general | | | | | share | | | | +------------------------------------+--------------+-------------+-----------+ | issues for cash during the period | 4 907 | 32 578 | 91 896 | +------------------------------------+--------------+-------------+-----------+ | Treasury shares acquired | (5 748) | - | - | +------------------------------------+--------------+-------------+-----------+ | Repayment of contingent | (3 991) | - | (132) | | consideration | | | | +------------------------------------+--------------+-------------+-----------+ | Repayment of borrowings | (6 342) | (6 259) | (11 509) | +------------------------------------+--------------+-------------+-----------+ | Increase in borrowings | 18 781 | - | 31 345 | +------------------------------------+--------------+-------------+-----------+ | Net cash flows from financing | 7 607 | 26 319 | 111 600 | | activities | | | | +------------------------------------+--------------+-------------+-----------+ | | | | | +------------------------------------+--------------+-------------+-----------+ | Net (decrease)/increase in cash | | | | +------------------------------------+--------------+-------------+-----------+ | and cash equivalents | (13 421) | 6 963 | 28 361 | +------------------------------------+--------------+-------------+-----------+ | Cash and cash equivalents at | | | | | beginning | | | | +------------------------------------+--------------+-------------+-----------+ | of period | 88 711 | 60 350 | 60 350 | +------------------------------------+--------------+-------------+-----------+ | Cash and cash equivalents at end | 75 290 | 67 313 | 88 711 | | of period | | | | +------------------------------------+--------------+-------------+-----------+ Reviewed Condensed Consolidated Balance Sheet as at 31 December 2008 +------------------------------------+--------+--------------+------------+-----------+ | GROUP | | Reviewed | Reviewed | Audited | +------------------------------------+--------+--------------+------------+-----------+ | | | Six months | Six months | Year | +------------------------------------+--------+--------------+------------+-----------+ | | | ended | ended | ended | +------------------------------------+--------+--------------+------------+-----------+ | | | 31 December | 31 | 30 June | | | | | December | | +------------------------------------+--------+--------------+------------+-----------+ | | | 2008 | 2007 | 2008 | +------------------------------------+--------+--------------+------------+-----------+ | | Note | R'000 | R'000 | R'000 | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | ASSETS | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Non-current assets | | 1 038 661 | 639 741 | 1 003 860 | +------------------------------------+--------+--------------+------------+-----------+ | Property, plant and equipment | | 585 102 | 491 620 | 580 200 | +------------------------------------+--------+--------------+------------+-----------+ | Intangible assets | | 8 184 | 5 963 | 15 034 | +------------------------------------+--------+--------------+------------+-----------+ | Investment in equity accounted | | 423 875 | 131 796 | 375 888 | | investee | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Investments | | - | 2 | 2 | +------------------------------------+--------+--------------+------------+-----------+ | Restricted investments | | - | 10 360 | 11 236 | +------------------------------------+--------+--------------+------------+-----------+ | Long term receivables | | 21 500 | - | 21 500 | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Current assets | | 409 774 | 227 981 | 338 175 | +------------------------------------+--------+--------------+------------+-----------+ | Inventories | | 32 829 | 65 584 | 69 261 | +------------------------------------+--------+--------------+------------+-----------+ | Trade and other receivables | | 105 831 | 95 084 | 179 410 | +------------------------------------+--------+--------------+------------+-----------+ | Current tax assets | | 3 128 | - | 793 | +------------------------------------+--------+--------------+------------+-----------+ | Cash and cash equivalents | | 75 290 | 67 313 | 88 711 | +------------------------------------+--------+--------------+------------+-----------+ | Assets classified as held for sale | (i) | 192 696 | - | - | +------------------------------------+--------+--------------+------------+-----------+ | Total assets | | 1 448 435 | 867 722 | 1 342 035 | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | EQUITY AND LIABILITIES | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Ordinary share capital and | | 1 085 049 | 632 795 | 1 005 424 | | reserves | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Share capital | | 135 236 | 126 991 | 133 704 | +------------------------------------+--------+--------------+------------+-----------+ | Share premium | | 307 223 | 231 297 | 304 545 | +------------------------------------+--------+--------------+------------+-----------+ | Share option reserve | | 23 741 | 21 998 | 27 494 | +------------------------------------+--------+--------------+------------+-----------+ | Contingent consideration reserve | | - | 1 500 | 1 480 | +------------------------------------+--------+--------------+------------+-----------+ | Hedging reserve | | (877) | - | - | +------------------------------------+--------+--------------+------------+-----------+ | Retained earnings | | 619 726 | 251 009 | 538 201 | +------------------------------------+--------+--------------+------------+-----------+ | Minority interest | | - | - | 2 434 | +------------------------------------+--------+--------------+------------+-----------+ | Total equity | | 1 085 049 | 632 795 | 1 007 858 | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Non-current liabilities | | 164 336 | 131 557 | 178 021 | +------------------------------------+--------+--------------+------------+-----------+ | Interest bearing loans and | | 66 394 | 31 566 | 55 067 | | borrowings | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Deferred taxation | | 78 999 | 76 661 | 89 146 | +------------------------------------+--------+--------------+------------+-----------+ | Environmental rehabilitation | | 18 943 | 23 330 | 33 808 | | provision | | | | | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Current liabilities | | 199 050 | 103 370 | 156 156 | +------------------------------------+--------+--------------+------------+-----------+ | Trade and other payables | | 104 375 | 90 517 | 132 292 | +------------------------------------+--------+--------------+------------+-----------+ | Current portion of non-current | | 10 942 | 12 792 | 15 386 | | liabilities | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Current tax liabilities | | 474 | 61 | 8 478 | +------------------------------------+--------+--------------+------------+-----------+ | Liabilities classified as held for | (i) | 83 259 | - | - | | sale | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Total equity and liabilities | | 1 448 435 | 867 722 | 1 342 035 | +------------------------------------+--------+--------------+------------+-----------+ | | | | | | +------------------------------------+--------+--------------+------------+-----------+ | Net asset value ("NAV") per share | | | | | +------------------------------------+--------+--------------+------------+-----------+ | (cents) | 7 | 199.26 | 124.57 | 187.74 | +------------------------------------+--------+--------------+------------+-----------+ | Fully diluted NAV per share | 7 | 184.36 | 113.63 | 170.46 | | (cents) | | | | | +------------------------------------+--------+--------------+------------+-----------+ Reviewed Condensed Consolidated Statement of Changes in Equity for the six months ended 31 December 2008 +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | GROUP | Attributable to equity holders of the Company | +------------------------------+-----------------------------------------------------------------------------------------------------------------+ | | | | | | | | | | | | | | | | Contingent | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | | Share | Share | Share | consideration | Hedging | Retained | | Minority | Total | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | | capital | premium | reserve | reserve | reserve | earnings | Total | interest | equity | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Balance at 1 July 2007 | 119 972 | 155 995 | 15 736 | 1 500 | - | 157 848 | 451 051 | - | 451 051 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Shares issued during the | | | | | | | | | | | year | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - To acquire Petmin | 438 | 7 437 | - | - | - | - | 7 875 | - | 7 875 | | Logistics (Pty) Ltd | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - To acquire 25% of Veremo | 5 538 | 68 978 | - | - | - | - | 74 516 | - | 74 516 | | Holdings (Pty) Ltd | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - General issue for cash | 7 000 | 72 968 | - | - | - | - | 79 968 | - | 79 968 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - Share options exercised | 938 | 1 566 | (820) | - | - | - | 1 684 | - | 1 684 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - Share options forfeited | - | - | (55) | - | - | - | (55) | - | (55) | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Costs capitalised to share | - | (982) | - | - | - | - | (982) | - | (982) | | premium | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Treasury shares acquired | (182) | (1 418) | - | - | - | - | (1 600) | - | (1 600) | | during the year | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Contingent consideration | - | - | - | (20) | - | - | (20) | - | (20) | | settled in cash in the year | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Share options granted | - | - | 12 633 | - | - | - | 12 633 | - | 12 633 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Minority interest recognised | | | | | | | | | | | on acquisition | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | of Petmin Logistics (Pty) | - | - | - | - | - | - | - | 2 373 | 2 373 | | Ltd | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Profit for the year | - | - | - | - | - | 380 353 | 380 353 | 61 | 380 414 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Balance at 30 June 2008 | 133 704 | 304 545 | 27 494 | 1 480 | - | 538 201 | 1 005 424 | 2 434 | 1 007 858 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Shares issued during the | | | | | | | | | | | period | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - To acquire 30% of Petmin | 187 | 3 189 | - | - | - | - | 3 376 | (2 056) | 1 320 | | Logistics (Pty) Ltd | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - Share options exercised | 1 945 | 7 161 | (4 199) | - | - | - | 4 907 | - | 4 907 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | - Issued to Springlake | 117 | 163 | - | (280) | - | - | - | - | - | | vendors | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Treasury shares acquired | (1 217) | (8 535) | - | - | - | - | (9 752) | - | (9 752) | | during the period | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Treasury shares transferred | 500 | 700 | - | (1 200) | - | - | - | - | - | | to Springlake vendors | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Share options granted | - | - | 446 | - | - | - | 446 | - | 446 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Effective portion of changes | - | - | - | - | (877) | - | (877) | - | (877) | | in fair value of cash flow | | | | | | | | | | | hedges | | | | | | | | | | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Profit for the period | - | - | - | - | | 81 525 | 81 525 | (378) | 81 147 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ | Balance at 31 December 2008 | 135 236 | 307 223 | 23 741 | - | (877) | 619 726 | 1 085 049 | - | 1 085 049 | +------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+ Segment reporting Segment information is presented in the reviewed condensed consolidated financial statements in respect of the Group's business segments, which are the primary basis of segment reporting. The business segment reporting format reflects the Group's management and internal reporting structures. Inter-segment pricing is determined on an arm's length basis. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Business segments The Group comprises the following main business segments: - Silica mining and marketing ("Silica") - Iron ore mining and beneficiation ("Iron Ore") - Anthracite mining and marketing ("Anthracite") Reviewed Condensed Consolidated Financial Statements for the six months ended 31 December 2008 +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | Silica | | | Anthracite | | Iron Ore | | Other (corporate office) | Eliminations | | Consolidated | | +---------------+-----------+-----------+------------+-----------------------+------------+-----------------------+-----------+-----------------------------------+-------------------------+------------+--------------------------+------------+ | | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | | | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | six | six | year | six | six | year | six | six | year | six | six | year | six | six | year | six | six | year | | | months | months | | months | months | | months | months | | months | months | | months | months | | months | months | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | | | December | December | | December | December | | December | December | | December | December | | December | December | | December | December | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Saleable | | | | | | | | | | | | | | | | | | | | tonnes | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | produced | 815 235 | 615 887 | 1 385 906 | 637 325 | 615 360 | 1 219 601 | - | - | - | - | - | - | - | - | - | 1 452 560 | 1 231 247 | 2 605 507 | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Tonnes | 902 513 | 630 089 | 1 434 853 | 682 879 | 597 084 | 1 188 519 | - | - | | - | | | | | | 1 585 392 | 1 227 173 | 2 623 372 | | sold | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | 101 139 | 68 653 | 153 034 | 389 220 | 249 984 | 519 963 | - | - | - | - | - | - | - | - | - | 490 359 | 318 637 | 672 997 | | revenue | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | | | | | | | | | | | | | | | | | | | | profit/(loss) | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | before | | | | | | | | | | | | | | | | | | | | tax | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | - | 25 759 | 19 975 | 46 742 | 66 584 | 30 565 | 90 973 | - | - | - | 1 178 | (2 727) | (23 698) | (3 943) | - | - | 89 578 | 47 813 | 114 017 | | segment | | | | | | | | | | | | | | | | | | | | result | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | - | | | | | | | | | | | | | | | | | | | | Impairment | | | | | | | | | | | | | | | | | | | | loss | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | on | | | | | | | | | | | | | | | | | | | | assets | | | | | | | | | | | | | | | | | | | | classified | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | as held | - | - | - | (13 392) | - | - | - | - | - | - | - | - | - | - | - | (13 392) | - | - | | for sale | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | - | | | | | | | | | | | | | | | | | | | | Impairment | | | | | | | | | | | | | | | | | | | | loss | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | on | - | - | - | (1 327) | - | - | - | - | - | - | - | - | - | - | - | (1 327) | - | - | | goodwill | | | | | | | | | | | | | | | | | | | | acquired | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | - share | | | | | | | | | | | | | | | | | | | | of | | | | | | | | | | | | | | | | | | | | profit | | | | | | | | | | | | | | | | | | | | of | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | equity | | | | | | | | | | | | | | | | | | | | accounted | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | investee | - | - | - | - | - | - | 32 635 | 61 706 | 303 133 | - | - | - | - | - | - | 32 635 | 61 706 | 303 133 | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | | | | | | | | | | | | | | | | | | | | profit/(loss) | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | before | 25 759 | 19 975 | 46 742 | 51 865 | 30 565 | 90 973 | 32 635 | 61 706 | 303 133 | 1 178 | (2 727) | (23 698) | (3 943) | - | - | 107 494 | 109 519 | 417 150 | | tax | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | | | | | | | | | | | | | | | | | | | | capital | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | expenditure | 10 128 | 11 500 | 27 362 | 160 592 | 43 499 | 198 110 | - | - | - | 2 365 | 139 | 3 295 | (2 972) | - | - | 170 113 | 55 138 | 228 767 | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | | | | | | | | | | | | | | | | | | | | depreciation | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | and | 4 105 | 3 715 | 7 688 | 53 212 | 12 985 | 93 680 | - | - | - | 84 | 46 | 108 | - | - | - | 57 401 | 16 746 | 101 476 | | amortisation | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Share | | | | | | | | | | | | | | | | | | | | option | | | | | | | | | | | | | | | | | | | | costs | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | included | | | | | | | | | | | | | | | | | | | | in | | | | | | | | | | | | | | | | | | | | segment | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | profit/(loss) | - | 95 | 190 | - | - | - | - | - | - | 446 | 6 112 | 12 443 | - | - | - | 446 | 6 207 | 12 633 | | before tax | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | 217 368 | 194 301 | 228 076 | 805 186 | 517 394 | 663 356 | 423 875 | 131 796 | 375 888 | 394 631 | 341 978 | 401 566 | (392 625) | (317 747) | (326 851) | 1 448 435 | 867 722 | 1 342 035 | | assets | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ | Segment | 71 529 | 78 498 | 100 288 | 556 781 | 359 611 | 449 750 | - | - | - | 29 332 | 23 479 | 21 947 | (294 256) | (226 661) | (237 808) | 363 386 | 234 927 | 334 177 | | liabilities | | | | | | | | | | | | | | | | | | | +---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+ The capital expenditure of R161 million and amortisation of R53 million in the six months to 31 December 2008 for the anthracite division include R80 million and R36 million for "pre-stripping" of the open pits at Somkhele respectively (Six months ended 31 December 2007: R31 million and R27 million). The open pit mining profile requires that waste overburden be removed from the pit before coal may be extracted. This overburden removal is capitalised to the development cost of the open pit (so called "pre-stripping") and is then expensed on a units-of-production basis as the coal is extracted from the open pits. Notes to the Reviewed Condensed Consolidated Financial Statements for the six months ended 31 December 2008 1. Reporting entity Petmin is a company domiciled in South Africa. The reviewed condensed consolidated financial statements of the Company for the six months ended 31 December 2008 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in associates. The reviewed condensed consolidated financial statements were authorised for issue by the directors on 26 February 2009. 2. Statement of compliance The reviewed condensed consolidated financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRSs) and the presentation and disclosure requirements of IAS 34 - Interim Financial Reporting and the South African Companies Act. The condensed consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated annual financial statements for the year ended 30 June 2008. 3. Significant accounting policies The reviewed condensed consolidated financial statements are prepared on the historical cost basis, except for financial instruments which are stated at fair value, where applicable, in terms of IAS 32 - Financial Instruments: Disclosure and Presentation and IAS 39 - Financial instruments: Recognition and Measurement. The accounting policies have been applied consistently by Group entities and have been applied consistently to all periods presented in these reviewed condensed consolidated financial statements. Functional and presentation currency: The consolidated financial statements are presented in Rands, which is the Company's functional currency. All financial information presented in Rands has been rounded to the nearest thousand. 4. Estimates and judgements The preparation of interim financial statements in conformity with IAS 34 - Interim Financial Reporting requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 30 June 2008, with the exception of the re-estimation of the fair value of the acquisition of the 25% investment in Veremo Holdings Limited (See management commentary). 5. Review of results The results of the Group as set out above have been reviewed by the Group's auditors, KPMG Inc. The unqualified review report is available for inspection at the Group's registered offices. 6. Earnings per ordinary share Earnings per ordinary share ("EPS") are based on the Group's profit for the period, divided by the weighted average number of shares in issue during the year. +----------------------+----------+-----------+--------+-----------+-----------+---------+ | | Reviewed | Reviewed | | | six months ended | six months ended | | | 31 December 2008 | 31 December 2007 | +----------------------+-------------------------------+---------------------------------+ | | Profit | Number | Per | Profit | Number | Per | | | for | of | | for | of | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | | the | shares | share | the | shares | share | | | period | in | | period | in | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | | R'000 | thousands | in | R'000 | thousands | in | | | | | cents | | | cents | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Basic earnings | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | per share | 81 525 | 538 244 | 15.15 | 93 161 | 482 659 | 19.30 | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Share options | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | and contingent | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | consideration | - | 15 629 | (0.43) | - | 10 484 | (0.41) | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Diluted EPS | 81 525 | 553 873 | 14.72 | 93 161 | 493 143 | 18.89 | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Headline earnings | | | | | | | | per share | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Headline earnings | | | | | | | | per share is based | | | | | | | | on the Group's | | | | | | | | headline earnings | | | | | | | | divided by the | | | | | | | | weighted average | | | | | | | | number of shares in | | | | | | | | issue during the | | | | | | | | period. | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Reconciliation | | | | | | | | between earnings and | | | | | | | | headline earnings | | | | | | | | per share: | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Basic EPS | 81 525 | 538 244 | 15.15 | 93 161 | 482 659 | 19.30 | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Adjustments: | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | - Impairment of | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | goodwill | 1 327 | - | 0.25 | - | - | - | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | - Fair value | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | impairment | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | on assets held | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | for sale | 13 392 | - | 2.49 | - | - | - | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | - Share of profit | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | of equity | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | accounted | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | investee | (32 635) | - | (6.06) | (61 706) | - | (12.78) | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Headline EPS | 63 609 | 538 244 | 11.82 | 31 455 | 482 659 | 6.52 | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Share options | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | and contingent | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | consideration | - | 15 629 | (0.33) | - | 10 484 | (0.14) | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | Diluted headline | | | | | | | +----------------------+----------+-----------+--------+-----------+-----------+---------+ | EPS | 63 609 | 553 873 | 11.48 | 31 455 | 493 143 | 6.38 | +----------------------+----------+-----------+--------+-----------+-----------+---------+ 7. Net Asset Value ("NAV") Per Share +----------------------------------------+-------------+------------+-----------+ | | Reviewed | Reviewed | Audited | +----------------------------------------+-------------+------------+-----------+ | | six months | six months | Year | +----------------------------------------+-------------+------------+-----------+ | | ended | ended | ended | +----------------------------------------+-------------+------------+-----------+ | | 31 December | 31 | 30 | | | | December | June | +----------------------------------------+-------------+------------+-----------+ | | 2008 | 2007 | 2008 | +----------------------------------------+-------------+------------+-----------+ | Ordinary share capital and reserves | | | | +----------------------------------------+-------------+------------+-----------+ | (R'000) | 1 085 049 | 632 795 | 1 005 424 | +----------------------------------------+-------------+------------+-----------+ | Total number of shares in issue ('000) | 544 538 | 507 964 | 535 541 | | | | | | +----------------------------------------+-------------+------------+-----------+ | NAV per share (cents) | 199.26 | 124.57 | 187.74 | +----------------------------------------+-------------+------------+-----------+ | Ordinary share capital and reserves | | | | +----------------------------------------+-------------+------------+-----------+ | (R'000) | 1 085 049 | 632 795 | 1 005 424 | +----------------------------------------+-------------+------------+-----------+ | Total number of shares in issue ('000) | 544 538 | 507 964 | 535 541 | +----------------------------------------+-------------+------------+-----------+ | Share options and contingent | | | | +----------------------------------------+-------------+------------+-----------+ | consideration ('000) | 44 019 | 48 923 | 54 299 | +----------------------------------------+-------------+------------+-----------+ | Fully diluted number of shares ('000) | 588 557 | 556 887 | 589 840 | +----------------------------------------+-------------+------------+-----------+ | Fully diluted NAV per share (cents) | 184.36 | 113.63 | 170.46 | +----------------------------------------+-------------+------------+-----------+ | | | | | +----------------------------------------+-------------+------------+-----------+ NAV per share increased 11.52 cents or 6% compared to 30 June 2008. Fully diluted NAV per share increased 13.90 cents or 8% compared to 30 June 2008. The NAV above includes the value of assets on an historical cost and fair value at acquisition basis. The directors' valuation of the investments in the various subsidiaries amounts to 387.90 fully diluted cents per share. 8. Related parties Dark Capital (Pty) Limited ("Dark Capital"), Petmin's anchor Black Economic Empowerment shareholder, increased its shareholding in Petmin by acquiring 7 million Petmin shares on exercising their share options in October 2008. Dark Capital is a material shareholder in Petmin and is therefore a related party as defined by Section 10 of the Listings Requirements. 8.1 Petmin executive committee remuneration scheme and share option trust As disclosed in the annual financial statements for the year ended 30 June 2008, the Petmin executive committee remuneration scheme and share option scheme affects the executive directors of the Company and constitutes a related party transaction. The Petmin executive committee remuneration scheme was a three-year agreement that terminated on 30 June 2008. As reported in the Annual Report for the year ended 30 June 2008, management has reached agreement with the Remuneration Committee on a new three year scheme with similar terms and conditions. The new scheme also includes a new option scheme for which shareholder approval will be sought in due course. 8.2 Other transactions with related parties Johan Strijdom, Enrico Greyling and Lebo Mogotsi, all directors of the company, were issued with 250 000 Petmin shares each upon their exercising of options, granted in 2004, to acquire shares at 45 cents each. At the time of the grant, Ms. Mogotsi was a non-executive director. The Springlake Vendors, all of whom are employed by Petmin, were issued with 2 467 000 Petmin shares in final settlement of the warranty shares due in terms of the Springlake acquisition that was concluded in November 2005. 9. Subsequent events Mr. DH Warmenhoven announced his resignation as a director of Petmin with effect from 28 February 2009. Mr. Warmenhoven will remain a significant shareholder of Petmin and will provide Petmin with consulting services to June 2009. The Board of Directors express their gratitude to Mr. Warmenhoven for his valuable contribution during the formative years of Petmin. There have been no events that have occurred subsequent to the balance sheet date which require adjustment of, or disclosure in the financial statements or notes thereto in accordance with IAS 10 Events After the Balance Sheet Date. Directors P J Nel* (Chairman), L Mogotsi (Deputy Chairman), J C du Preez (Chief Executive Officer), B B Doig (Chief Operating Officer), I Cockerill*#, E de V Greyling*, A Martin*, J A Strijdom*, D H Warmenhoven**, J Taylor* *Non-executive #British **Resignation effective from 28 February 2009 Registered Office Parc Nouveaux, First Floor, Block C 225 Veale Street, Brooklyn, Pretoria, 0002 (PO Box 899, Groenkloof, 0027) Corporate Office 37 Peter Place Bryanston, 2021 Tel: (011) 706 1644 Fax: (011) 706 1594 Website: www.petmin.co.za Secretary and Sponsor - JSE River Group Andrew Lianos / Estine van der Merwe Tel: +27 12 346 8540 Nominated Adviser- AIM Numis Securities Limited John Harrison / Stuart Skinner Tel: +44 (0) 207 260 1000 Transfer Secretaries JSE: Computershare Investor Services (Proprietary) Limited AIM: Computershare Investor Services PLC Auditors KPMG Inc. Johannesburg 2 March 2009 A PDF version of these results is available on our website: www.petmin.co.za This information is provided by RNS The company news service from the London Stock Exchange END FR IFFLIFFIDFIA
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