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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 |
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RNS Number:0884E
Petmin Limited
19 September 2007
19 September 2007
(JSE: PET, AIM: PTMN)
Petmin Limited
("Petmin" or "the Group" or "the Company")
CONDENSED CONSOLIDATED REVIEWED FINANCIAL STATEMENTS
For the year ended 30 June 2007
Highlights
* Capital spent to expand operations increased by 140% from
R47 million to R113 million
* Somkhele project successfully commissioned in June 2007
* New order mining right boosts production potential at Somkhele
* Somkhele project NPV up 310% from R358 million to R1.47 billion
* Revenue increased by 116% from R177 million to R382 million
* Profit after tax increased by 53% from R49 million to R74 million
* 55% increase in the weighted average number of shares in issue to fund the
development of Somkhele
* Fully diluted headline earnings per share increased by 14% from 4.52 cents
to 5.16 cents
* Fully diluted earnings per share increased by 6% from 14.85 cents to 15.77
cents
* Baobab investment sold for a net profit after tax of R25 million
* Successful secondary listing on AIM raised R49 million gross proceeds
The full financial statements follow.
For further details, please contact:
Petmin
Jan Du Preez (CEO) +27 825 571 979
Bradley Doig (COO) +27 824 597 818
www.petmin.co.za
Numis Securities Limited +44 207 776 1500
John Harrison
Nick Stamp
Parkgreen Communications +44 207 493 3713
Justine Howarth
Erica Nelson
Condensed Consolidated Reviewed
Income Statement
for the year ended 30 June 2007
GROUP Reviewed Audited
Year ended Year ended
30 June 2007 30 June 2006
R'000 R'000
Revenue 382 341 176 676
Cost of sales (326 500) (145 663)
Gross profit 55 841 31 013
Other income 54 943 33 822
- Profit on sale of subsidiary 28 891 -
- Profit on acquisition of subsidiary 26 052 33 822
Administration expenses (19 653) (7 859)
Operating profit before financing costs 91 131 56 976
Net finance expense (1 104) ( 800)
- Financial income 3 352 1 923
- Financial expenses (4 456) (2 723)
Profit before tax 90 027 56 176
Income tax expense (15 613) (7 576)
Profit for the year 74 414 48 600
Basic earnings per ordinary share (cents) 16.14 16.38
Diluted earnings per ordinary share (cents) 15.77 14.85
Condensed Consolidated Reviewed
Cash Flow Statement
for the year ended 30 June 2007
GROUP Reviewed Audited
Year ended Year ended
30 June 2007 30 June 2006
R'000 R'000
Net cash flow from operating activities 27 889 58 218
Cash flows from investing activities
acquisition of subsidiary net of cash acquired - (4 850)
Increase in investment in rehabilitation funds (912) (1 430)
Acquisition of property, plant and equipment (127 522) (70 308)
- to expand operations (112 977) (47 089)
- to maintain operations (14 545) (23 219)
Proceeds from sale of subsidiary 30 593 -
Proceeds from sale of property, plant
and equipment 399 240
Net cash flow from investing activities (97 442) (76 348)
Cash flows from financing activities
Proceeds from specific and general share
issues for cash during the year 34 053 95 842
Investment in preference shares in subsidiary - (13 000)
Repayment of borrowings (10 813) (5 414)
Increase in borrowings 36 529 1 753
Net cash flows from financing activities 59 769 79 181
Net (decrease)/increase in cash and
cash equivalents (9 784) 61 051
Cash and cash equivalents at beginning of year 70 134 9 083
Cash and cash equivalents at end of year 60 350 70 134
Condensed Consolidated
Reviewed Balance Sheet
at 30 June 2007
GROUP Reviewed Audited
30 June 2007 30 June 2006
R'000 R'000
ASSETS
Non-current assets 469 518 365 772
Property, plant and equipment 453 122 349 775
Intangible assets 6 222 6 735
Investments 2 2
Restricted investments 10 172 9 260
Current assets 207 901 155 929
Inventories 63 045 41 228
Trade and other receivables 83 713 44 181
Taxation prepaid 793 386
Cash and cash equivalents 60 350 70 134
Total assets 677 419 521 701
EQUITY AND LIABILITIES
Ordinary share capital and reserves 451 051 360 466
Non-current liabilities 118 627 82 780
Interest bearing loans and borrowings 36 436 14 052
Deferred taxation 61 612 54 495
Environmental rehabilitation provision 20 579 14 233
Current liabilities 107 741 78 455
Trade and other payables 87 115 67 522
Current portion of non-current liabilities 14 181 10 849
Taxation payable 6 445 84
Total equity and liabilities 677 419 521 701
Net asset value ("NAV") per share (cents) 93.99 81.94
Fully diluted NAV per share (cents) 85.25 70.16
Segment reporting
Segment information is presented in the condensed consolidated reviewed
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 structure.
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")
- Anthracite mining and marketing ("Anthracite")
Condensed Consolidated Reviewed Statement of Changes in Equity
for the year ended 30 June 2007
GROUP
Share Share Share option
capital premium reserve
R'000 R'000 R'000
Balance at 1 July 2005 48,750 19,767 1,476
Shares issued during the year
- To acquire Springlake 32,472 45,462 -
- To acquire SamQuarz preference
shares 4,875 8,125 -
- Specific issue for cash -
Springlake acquisition costs 1,042 1,458 -
- Specific issue for cash - Somkhele
project 20,833 54,186 -
- General issue for cash 2,000 7,600 -
- Contingent share issue on
acquisition of Springlake - - -
- Share options granted - - 3,665
Costs capitalised to share premium - (1,777) -
Profit/recognised income and expense
for the year - - -
Balance at 30 June 2006 109,972 134,821 5,141
Shares issued during the year
- General issue for cash 10,000 39,097 -
- Share options granted - - 10,595
- Contingent share issue on
acquisition of Springlake reversed - - -
Costs capitalised to share premium - (17,923) -
Dividends forfeited - - -
Profit/recognised income and expense
for the year - - -
Balance at 30 June 2007 119,972 155,995 15,736
Contingent
consideration Retained
reserve earnings Total
R'000 R'000 R'000
Balance at 1 July 2005 - 34,380 104,373
Shares issued during the year
- To acquire Springlake - - 77,934
- To acquire SamQuarz preference shares - - 13,000
- Specific issue for cash -
Springlake acquisition costs - - 2,500
- Specific issue for cash -
Somkhele project - - 75,019
- General issue for cash - - 9,600
- Contingent share issue on
acquisition of Springlake 27,552 - 27,552
- Share options granted - - 3,665
Costs capitalised to share premium - - (1,777)
Profit/recognised income and
expense for the year - 48,600 48,600
Balance at 30 June 2006 27,552 82,980 360,466
Shares issued during the year
- General issue for cash - - 49,097
- Share options granted - - 10,595
- Contingent share issue on
acquisition of Springlake reversed (26,052) - (26,052)
Costs capitalised to share premium - - (17,923)
Dividends forfeited - 454 454
Profit/recognised income and
expense for t he year - 74,414 74,414
Balance at 30 June 2007 1,500 157,848 451,051
Business Segments
Silica Anthracite
Reviewed Audited Reviewed Audited
Year Year Year Year
ended ended ended ended
30 June 30 June 30 June 30 June
2007 2006 2007 2006
R'000 R'000 R'000 R'000
Segment revenue 127,712 90,603 254,629 86,073
Segment profit/(loss)
before tax
- segment result 35,379 26,152 6,667 (275)
- profit on sale of subsidiary - - 28,891 -
- profit on acquisition of
subsidiary - - - -
Segment profit/(loss) before
tax 35,379 26,152 35,558 (275)
Segment assets 187,080 153,102 472,737 328,232
Segment liabilities 93,829 121,589 336,831 225,911
Other (corporate office) Eliminations
Reviewed Audited Reviewed Audited
Year Year Year Year
ended ended ended ended
30 June 30 June 30 June 30 June
2007 2006 2007 2006
R'000 R'000 R'000 R'000
Segment revenue - - - -
Segment profit/(loss)
before tax
- segment result (6,962) (3,523) - -
- profit on sale of
subsidiary - - - -
- profit on acquisition of
subsidiary 26,052 33,822 - -
Segment profit/(loss)
before tax 19,090 30,299 - -
Segment assets 311,268 303,714 (293,666) (263,347)
Segment liabilities 6,690 8,345 (210,982) (194,610)
Consolidated
Reviewed Audited
Year Year
ended ended
30 June 30 June
2007 2006
R'000 R'000
Segment revenue 382,341 176,676
Segment profit/(loss) before tax
- segment result 35,084 22,354
- profit on sale of subsidiary 28,891 -
- profit on acquisition of subsidiary 26,052 33,822
Segment profit/(loss) before tax 90,027 56,176
Segment assets 677,419 521,701
Segment liabilities 226,368 161,235
Notes to the Condensed Consolidated Reviewed Financial Statements
1.Significant Accounting Policies for the year ended 30 June 2007
Petmin is a company domiciled in South Africa. The condensed consolidated
reviewed financial statements of the Company for the year ended 30 June 2007
comprise the Company and its subsidiaries (together referred to as the
"Group").
The condensed consolidated reviewed financial statements were authorised for
issue by the directors on 18 September 2007.
1.1 Statement of compliance
The condensed consolidated reviewed 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 reviewed 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 2006.
1.2 Basis of preparation
The condensed consolidated reviewed 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 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 of 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 accounting policies have been applied consistently by Group companies and
have been applied consistently to all periods presented in these condensed
consolidated reviewed financial statements.
2. Review of results
The results of the Group as set out above have been reviewed by the Group's
auditors, KPMG Inc., as required by the JSE Limited. The review report is
available for inspection at the Group's registered offices.
3. Increase in authorised share capital
In the year under review, the Company increased its authorised share capital
from 500,000,000 ordinary shares of 25 cents each to 1,000,000,000 ordinary
shares of 25 cents each.
4. General issue of shares for cash - Listing on AIM
Petmin concluded its successful secondary listing on the London Stock
Exchange's Alternative Investment Market ("AIM") on 20 December, 2006. Petmin
issued 40 million new shares at 9 British pence per share in a general issue of
shares for cash on the listing, raising approximately R49 million gross
proceeds.
5. Contingent consideration reserve
The forecast profit of R45.6 million for the 28 month period ended 30 June
2007, warranted on the acquisition of Springlake, was not met. The contingent
consideration has been re-estimated to R1.5 million, resulting in an amount of
R26.1 million being recognised and disclosed as "profit on acquisition of
subsidiary" in the income statement during the year under review.
6. Earnings Per Ordinary Share ("EPS")
EPS is based on the Group's profit for the year, divided by the weighted
average number of shares in issue during the year.
Reviewed
Year ended
2007
Net Number Per
income of shares share
R'000 in '000 in cents
Basic EPS 74 414 461 041 16.14
Share options and
contingent
consideration - 10 817 (0.37)
Diluted EPS 74 414 471 858 15.77
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 year.
Reconciliation between
earnings and headline
earnings per share
Basic EPS 74 414 461 041 16.14
Adjustments:
- AIM listing expense 693 - 0.15
- profit on sale of
subsidiary (24 725) - (5.36)
- profit on acquisition
of subsidiary (26 052) - (5.65)
Headline EPS 24 330 461 041 5.28
Share options and
contingent
consideration - 10 817 (0.12)
Diluted headline EPS 24 330 471 858 5.16
Audited
Year ended
2006
Net Number Per
income of shares share
R'000 in '000 in cents
Basic EPS 48 600 296 700 16.38
Share options and
contingent
consideration - 30 500 (1.53)
Diluted EPS 48 600 327 200 14.85
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 year.
Reconciliation between
earnings and headline
earnings per share
Basic EPS 48 600 296 700 16.38
Adjustments:
- AIM listing expense - - -
- profit on sale of
subsidiary - - -
- profit on acquisition
of subsidiary (33 822) - (11.40)
Headline EPS 14 778 296 700 4.98
Share options and
contingent
consideration - 30 500 (0.46)
Diluted headline EPS 14 778 327 200 4.52
Headline EPS increased 6% despite a 55% increase in the weighted average number
of shares in issue to fund the development of Somkhele, which only commenced
production in June 2007.
Diluted Headline EPS increased by 0.64 cents or 14%.
7. Net Asset Value ("NAV") Per Share
Reviewed Audited
Year ended Year ended
2007 2006
Ordinary share capital and reserves (R'000) 451 051 360 466
Total number of shares in issue ('000) 479 890 439 890
NAV per share (cents) 93.99 81.94
Ordinary share capital and reserves (R'000) 451 051 360 466
Total number of shares in issue ('000) 479 890 439 890
Share options and contingent consideration 49 173 73 920
Fully diluted number of shares 529 063 513 810
Fully diluted NAV per share (cents) 85.25 70.16
NAV per share increased 12.05 cents or 15% compared to 30 June 2006.
Fully diluted NAV per share increased 15.09 cents or 22% compared to 30 June
2006.
8. Related Parties
NAMF Nominees (Proprietary) Limited, Dark Capital (Pty) Limited (Petmin's
anchor Black Economic Empowerment shareholder) and PSG Limited are material
shareholders in Petmin, and are therefore related parties 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
2006, the Petmin executive committee remuneration scheme and share option
scheme affects the executive directors of the Company and constitutes a related
party transaction. Transactions with and amounts due to the executive directors
are included in the table of compensation to directors below.
Reviewed Audited
Year ended Year ended
30 June 2007 30 June 2006
R'000 R'000
Directors' emoluments
- Short term emoluments 9 565 6 941
* incentive fee - 1.5% of assets managed* 6 060 3 507
* incentive fee - 6% of profit* - 2 900
* other 3 505 534
- Share based payments 6 187 2 090
* management option scheme issued 2007** 4 097 -
* management option scheme issued 2006** 2 090 2 090
15 752 9 031
Amounts payable to directors included
in Trade and other payables 5 299 5 698
*The executive management of the Company earns management fees based on:
(a) a percentage of the average net assets under management in the year; and
(b) should the sustainable earnings per share increase by more than 20% in
the year, then the executive management will earn an additional incentive bonus
of a minimum of 6% of profit limited to a maximum of 6.75% of profit.
** The executive management of the Company earns share options based on the
growth in net asset value per share in the year.
8.2 Profit on acquisition of subsidiary - Springlake Holdings (Pty) Ltd
("Springlake")
The re-estimation of the contingent consideration related to the Springlake
acquisition constitutes a related party transaction, as NAMF Nominees is a
material shareholder in Petmin. Refer to amounts disclosed in note 5.
8.3 Other transactions with related parties
Other than as disclosed in notes 8.1 and 8.2 above, there were no significant
transactions with related parties.
9. Gearing and increase in borrowings
Petmin's interest bearing debt to equity ratio increased to 11% (2006: 7%).
During the year under review a loan of R36 million was advanced to fund capital
expenditure at the Somkhele Anthracite Project by The Standard Bank of South
Africa Limited. In terms of the asset based finance facility, interest is
payable at the prime lending rate less 1% and the loan is repayable over 72
months.
10. Events after balance sheet date
Petmin advised its shareholders on 6 August 2007 that Mr. Ian Cockerill, Chief
Executive Officer of Gold Fields Limited, has agreed to join the Board of
Petmin as an independent non-executive director with effect from 1 October
2007.
Mr. Jabu Mabena resigned as a non-executive director with effect from 1 August
2007. The Board thanks Mr. Mabena for his valued contribution during
Petmin's early development.
11. Dividends
Due to the expansion projects at both the Somkhele Colliery and SamQuarz and
the associated cash requirements and Petmin's focus on acquisitive growth, the
Board has resolved that no dividend will be declared (2006: no dividend was
declared).
Commentary
12. Operations
Revenue for the year ended 30 June 2007 increased by 116% as the revenues
reflect a full twelve months of Springlake's operations and the first month's
sales from the Somkhele colliery whereas the comparatives included only seven
months of Springlake's operations after its acquisition on 30 November 2005.
Cash of R75 million was generated by operations before out flows from changes
in working capital amounting to R42 million. The investment in working capital
increased largely due to the commencement of operations at the Somkhele
Colliery. Capital expenditure of R128 million was incurred in the period under
review, R98 million of which related to the development of the Somkhele
project, with R15 million spent at SamQuarz and R14 million at Springlake.
Petmin's listing on AIM presents the Company with a platform for future growth
by:
*improving the acceptability of the Company's shares as a global currency for
the purpose of acquiring or developing new assets;
*gaining access to the international pool of capital in the London market with
a view to widening the Company's institutional and retail investors
shareholder base;
*increasing the Company's international profile and research coverage; and
*improving share liquidity in the longer term.
Silica
SamQuarz increased production to approximately 1.24 million tonnes, up 29% from
2006. Revenues increased by 41% to R128 million, reflecting the increased
volumes sold to meet the improved demand from customers for SamQuarz product.
Profitability was further enhanced by disciplined cost control by mine
management. The results for the year ended 30 June 2007 include the recognition
of additional profits after tax on the sale of certain chert stocks, that were
previously ascribed a zero value, amounting to R3.4 million.
Anthracite
Petmin acquired Springlake Holdings (Proprietary) Limited ("Springlake
Holdings") in November 2005. Springlake Holdings at the time consisted of the
Springlake Colliery (an operating underground and open cast anthracite mine
with approximately 12 years of reserves at a run of mine ("ROM") production of
1 million tonnes per annum), the Somkhele project and an interest in the Baobab
Joint Venture.
In the year ended 30 June 2007, Petmin disposed of its interest in the Baobab
Joint Venture for GBP2.5 million (approximately R 35 million) to GVM Metals
Limited and successfully commissioned the Somkhele project.
- Springlake colliery
As previously reported, Springlake's performance was disappointing for the six
months ended 31 December 2006. In the six months to 30 June 2007, management
has successfully implemented a performance improvement programme at the
Springlake Colliery.
Production of saleable tonnes has shown steady improvement from 242,072 tonnes
produced in the six months ended 30 June 2006, to 313,363 tonnes in the six
months to 31 December 2006 (30% up) and 369,960 tonnes for the six months ended
30 June 2007 (18% up).
A new order mining right was granted during the year for the Besterdale license
area, which adds approximately 500,000 ROM tonnes to the opencast sections.
Springlake's management has been strengthened in order to implement the
performance improvement programme by the appointment of Hardus Combrinck as
Mine Manager and Ngwedi Mabilo as Engineering Manager. Hardus Combrinck has 26
years experience in the gold, platinum and coal industries and Ngwedi Mabilo
has 13 years experience in the coal industry.
- Somkhele anthracite project
The Somkhele anthracite project was commissioned on 1 June 2007 and the
Colliery's first export cargo of 32,000 tonnes was despatched in June 2007 from
export facilities in nearby Richards Bay.
The plant is fully operational and has a nominal capacity of 120,000 ROM tonnes
per month. The Group has drawn down R36 million of the R40 million banking
facilities negotiated with The Standard Bank of South Africa Limited ("Standard
Bank") to fund construction of the plant.
Petmin announced on 3 August 2007 that a new order mining right has been
granted for Area 1 in June 2007 which will enable Somkhele to increase
production substantially and to bring forward its originally forecast
production ramp up. Somkhele's life of mine ("LOM") model has been updated by
Snowden Mining Industry Consultants (Pty) Limited's ("Snowden"), with the LOM
increasing from 11 to 15 years at an increased rate of production from 40,000
run of mine tonnes per month ("ROMtpm") to 80,000 ROMtpm from first quarter
2008, ramping up to 158,000 ROMtpm from 2011. Based on Snowden's assessment,
the estimated value of the Somkhele Project has been increased from R358
million to R1.47 billion at a 15% discount rate, a 310% increase in value.
13. Potential increase in BEE and management shareholding
Petmin announced on 14 June 2007 that Dark Capital (Pty) Limited obtained an
additional 40 million Petmin shares from New Africa Mining Fund ("NAMF"). Dark
Capital together with Petmin management has secured an option from NAMF to
acquire an additional 121 million Petmin shares. If the transaction is
successfully concluded, Dark Capital's effective interest in Petmin will
increase to approximately 30% and the total black economic empowerment interest
in Petmin will increase to approximately 48%. Management's effective interest
(including share options) will increase to approximately 30%. If the
transaction is successfully concluded, Petmin will make an announcement to this
effect.
14. Prospects
- SamQuarz
Capital expenditure amounting to approximately R28 million has been approved
and will be incurred in the year ending 30 June 2008 to increase capacity, to
maintain existing infrastructure, to further develop the open pit and to update
the life of mine ("LOM") models. SamQuarz intends finalising an extended
exploration programme that will enable third party experts to update SamQuarz's
Competent Person's Report ("CPR") and life of mine models by June 2008. The
Company believes that this active exploration may double the proven reserves,
resulting in a life of mine in excess of 20 years at current production levels.
This will considerably enhance the net present value of SamQuarz.
The SamQuarz maintenance strategy has been revised to take into account the
shortage of skilled artisans and now also includes a daily "independent" audit
of all maintenance related issues. Both the capital expenditure and revised
maintenance strategy will assist SamQuarz to meet the increasing demand from
its customers.
SamQuarz products are used to produce both flat glass and glass for bottles and
there has been an increase in demand from its clients which include PFG, Consol
and Nampak.
SamQuarz products are also used as a flux in the production of, inter alia,
ferro-chrome and ferromanganese and there has been an increase in demand from
its clients which include Xstrata, Samancor and Arcelor Mittal.
- Springlake Colliery
With increased opencast production planned in the 2008 financial year and with
the measures introduced to the underground operations, management expects an
improved performance in the year to 30 June 2008. The coal market remains
buoyant and Springlake has signed a dollar based offtake agreement for 350,000
tonnes of its duff material until March 2009. To secure the sustainability of
the turnaround strategy, the Group will spend approximately R14 million of
capital at Springlake Colliery in the year to June 2008.
- Somkhele anthracite project
Since commencing production, there has been a significant demand for the
Somkhele product range and the company has secured a dollar based export
agreement for 400,000 tonnes of unsized coal until December 2008. In the period
from 1 July 2007 to the date of this report, Somkhele has exported an
additional 84,760 tonnes of anthracite. Negotiations are underway with a number
of customers for medium to long term offtake agreements. The production of high
quality anthracite at Somkhele will provide opportunities to target niche South
African metallurgical markets in ferrochrome and titanium smelting. Taking into
account the current market conditions, ROM production in the year to June 2008
is expected to be 835,000 tonnes, increasing to 970,000 tonnes for the year to
June 2009.
Capital expenditure of R42 million is budgeted to be spent at Somkhele in the
forthcoming year in order to double up on production prior to June 2008 and to
accelerate its exploration programme on Areas 4 and 5 to further increase the
reserve base of the Colliery.
- New business
Acquisitive growth remains a focus of Petmin and management is continuously
reviewing potential new business opportunities focused on industrial minerals,
base metals, carbon products and materials for steel mills.
Petmin believes in acquiring cash producing or near-cash producing assets. Our
approach to acquisitions is entrepreneurial and flexible and we are in a
position to offer various business models to potential 'partners". Our
acquisition model ensures that vendors obtain liquid assets in the form of our
shares and gain access to our ability to raise cash, our knowledge base and
international distribution channels.
15. Further Cautionary announcement
Further to the cautionary announcement dated 3 August 2007 shareholders are
advised that negotiations are still in progress which, if successfully
concluded, may have a material effect on the price of Petmin's securities.
Accordingly, shareholders are advised to continue exercising caution when
dealing in the Company's securities until a full announcement is made.
By order of the Board
PJ Nel JC du Preez
Chairman Chief Executive Officer
Pretoria
18 September 2007
Directors
P J Nel* (Chairman), L Mogotsi (Deputy Chairperson),
J C du Preez (Chief Executive Officer), B B Doig (Chief Operating Officer),
E de V Greyling*, J P Mabena**, A Martin*, J A Strijdom*, D H Warmenhoven,
J Taylor*
*Non-executive **Resigned 1 August 2007
Registered Office
Parc Nouveaux, First Floor, Block C
225 Veale Street, Brooklyn, Pretoria, 0002
(PO Box 899, Groenkloof, 0027)
Tel: (011) 706 1644 Fax: (011) 706 1594
Secretary and Sponsor - JSE
River Sponsors (Pty) Limited
Nominated Adviser and Broker - AIM
Numis Securities Limited
Transfer Secretaries
JSE: Computershare Investor Services 2004 (Proprietary) Limited
AIM: Computershare Investor Services PLC
Auditors
KPMG Inc.
www.petmin.co.za
This information is provided by RNS
The company news service from the London Stock Exchange
END
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