RNS Number : 6251D
Petmin Limited
17 September 2008
For Immediate Release 17 September 2008
JSE: PET
AIM: PTMN
Petmin Limited
Preliminary Results for the year ended 30 June 2008
Petmin Limited, ("Petmin" or "the Company"), the JSE and AIM*listed minerals, mining and processing company which services the
metallurgical and industrial sectors, announces its reviewed financial results for the year ended 30 June 2008.
Highlights:
* Revenue increased by 74% from R382 million to R667 million.
* Profit for the year increased by 411% from R74 million to R380 million.
* Headline earnings per share increased by 190% from 5.28 cents to 15.31 cents.
* Fully diluted earnings per share increased by 370% from 15.77 cents to 74.15 cents.
* The acquisition of a 25% share of Veremo Holdings (Pty) Ltd positions Petmin in a large scale iron project.
* R216 million capital spent to expand operations (2007: R113 million)
Commenting on these results, Bradley Doig, Petmin's Chief Operating Officer, said:
"These results reflect an improved performance from the Springlake Colliery in the second half, coupled with a consistently strong
performance from the SamQuarz silica mine and a first full-year contribution from the Somkhele Colliery. The outlook for Petmin's financial
performance in 2008/9 is encouraging."
For further information, please contact:
Petmin Limited +27 82 459 7818
Bradley Doig, Chief Operating Officer
Nominated Adviser
Numis Securities Limited +44 20 7260 1000
John Harrison/Stuart Skinner
UK Broker
Numis Securities Limited +44 20 7260 1000
James Black
RSA Public Relations Advisers
Russell and Associates +27 11 880 3924
Charmane Russell/Shelagh Blackman
UK Public Relations Advisers
Parkgreen Communications +44 20 7933 8780
Sue Scott/Leah Kramer
Management Commentary
Operations
Revenue for the year ended 30 June 2008 increased by R285 million or 74% to R667 million compared to the R382 million in 2007. Gross
profit was R164 million, an increase of R108 million or 193% compared to the R56 million in 2007. This was as a result of an improved
performance from Springlake Colliery in the second half of the year under review, coupled with the first full year of results from the
Somkhele Colliery. There was also a consistently strong performance of the silica mine, SamQuarz (Pty) Ltd ("SamQuarz") which increased its
revenue by 20% from R128 million in 2007 to R153 million and its gross profit by R14 million or 30% to R60 million.
The anthracite segment's profit before tax for the year ended 30 June 2008 was reduced by an accrual of R3.4 million from the fair value
adjustments on unrealised US Dollar currency derivatives. Management continually reviews the group's hedging strategy and will restructure
hedges where appropriate.
Administration expenses included a full year of operation at Somkhele (2007 only includes 1 month) and also included an impairment
charge of R4.7 million (2007: R nil) on certain loans made to a company with a project in Zambia and share option expenses of R12.7 million
(2007: R7.7 million).
Cash of R252 million (2007: R75 million) was generated by operations before outflows from changes in working capital of R84 million
(2007: R42 million), tax R7.2 million (2007: R4.5 million) and net finance expense of R3.8 million (2007: R1.1 million).
Capital expenditure of R229 million (2007: R129 million) was incurred in the year to 30 June 2008. R133 million was spent on exploration
drilling and mine development programmes to expand operations, R80 million was spent on plant and mining equipment and R12 million on
capital projects that are work-in-progress.
The ratio of interest bearing debt to equity at 30 June 2008 was 7.01% (2007: 11.22%). An amount of R31 million was drawn on the plant
finance facility at Somkhele in the year ended 30 June 2008 to fund the expansion of the project. The Group has negotiated additional debt
facilities of approximately R75 million with its bankers that are currently not utilised. Gearing of the Group remains low and management
will consider the use of these debt facilities for funding future expansion plans.
Anthracite division
Somkhele anthracite mine, Springlake Colliery and Petmin Logistics
Management is pleased to report that the anthracite division increased its production by 69%, producing
1,219,601 tonnes (2007: 720,135) and selling 1,199,592 tonnes (2007: 733,999) of anthracite in the year to 30 June 2008.
75% (2007: 67%) of the sales tonnages in the year to 30 June were exported. Demand from inland metallurgical customers for the Somkhele
product has increased substantially. Management plans to expand production at Somkhele to meet the combined demands of the inland
metallurgical market and the export markets.
Mining at Somkhele is progressing well and anthracite is currently being mined from two pits in the project's Area 2. Development of the
mining Area 1 is progressing well and management expects first production from the Area in the latter half of calendar 2008.
In its first full year of operations the Somkhele Colliery has delivered on its potential to become a profitable mine and a competitive
alternative source of carbon units to replace coke as a reductant in certain metallurgical processes.
In order to de-risk the export channels for the anthracite division, the Group acquired a 70% interest in Petmin Logistics (Pty) Ltd
("Petmin Logistics") (formerly ZMS Logistics (Pty) Ltd). Petmin Logistics has contracted with Transnet Port Terminals to provide export
facilities of a minimum of 600,000 tonnes per annum for four years at the Richards Bay Dry Bulk Terminal.
Springlake's financial performance improved in the second half of the year ended 30 June 2008, with 76% of its profits being generated
in the last six months of the financial year. This was despite a write-down of R3.4 million for the fair value of certain foreign currency
derivatives.
Silica division
SamQuarz silica mine
SamQuarz produced 1,385,906 tonnes of silica (2007: 1,240,000), an increase of 11.8% and sold 1,434,853 tonnes of silica (2007:
1,394,810) and chert in the year ended 30 June 2008.
Revenue increased by 20% to R153 million (2007: R128 million) due to improved prices negotiated on key sales contracts and due to
improved sales volumes, largely in the construction sector.
Capital expenditure has been focused on increasing production capacity both in the openpit and the plant to ensure that customers'
increased demand levels can be reliably attained.
Impact of power shortages in South Africa
The power cuts that occurred in South Africa during the year under review did not have a material effect on Petmin's production and
sales. Notwithstanding this, in order to mitigate against the risk of power cuts in its operations, Petmin has ordered standby generators
which will be in operation in the first quarter of 2009.
Mineral rights applications
To the extent required, applications for renewals of prospecting rights and conversions of old order mining rights have been submitted
timeously for approval by the Department of Minerals and Energy.
Investment in the Veremo iron ore project
As announced on 6 November 2007, Petmin concluded an agreement with Framework Investments Limited ("Framework"), a 100% held subsidiary
of Kermas Limited (collectively the "Kermas Group") for the joint acquisition of Veremo.
Following the fulfilment of the conditions precedent to the transaction, with effect from 23 May 2008, Petmin now holds a 25% interest
in Veremo. The Kermas Group holds the remaining 75%.
Petmin's cost of acquisition of the 25% interest was R73 million. An amount of R303 million was recognised as a profit on acquisition on
the fair value adjustment of the project as required in compliance with International Financial Reporting Standards. The fair value of
Petmin's 25% interest was calculated using pig iron prices of $400/t (current market prices are approximately $900/t) in an indicative cash
flow model for the project, and taking into account the fact that Petmin is not required to fund capital expenditure to produce at least
700,000 tonnes of pig iron per annum. Petmin is guaranteed an annual cash dividend of R65 million per year for the first three years from
the planned date of commencement of mining and sales. In terms of IFRS, the valuation of a business combination may be reviewed within 12
months. Management will review the valuation of the project as more certainty is provided by the metallurgical testing of a bulk sample of
the ore and as the feasibility study is progressed.
In February 2008, Veremo procured an updated resource statement for the project (endorsed by Snowden Mining Industry Consultants).The
results were as follows:
Classification Weathering Tonnes Fe SiO2 TiO2 V2O5 SG
(Mt) (%) (%) (%) (%) (%)
Indicated Resource Fresh 797.5 42.05 15.13 14.09 0.15 4.22
Indicated Resource Weathered 123.8 43.00 13.67 14.64 0.16 4.16
Measured Resource Weathered 11.6 48.98 5.03 18.38 0.23 3.85
Total Resource 933.0 42.26 14.22 14.22 0.15 4.21
Prospects
Silica division
Management expects SamQuarz to increase current production and sales volumes as the demand for the crusher run material (a product that
is being used in the building and maintenance of roads) has increased and as SamQuarz develops niche markets in the foundry and
metallurgical sectors.
The programme to delineate the ore body is nearing completion and management expects to present an updated SAMREC compliant report of
the reserves and resources in the next quarter. Management expects that the proven reserves should increase from the current 10 million
tonnes of quartzite to approximately 45 million tonnes by providing more certainty on the 35 million tonnes currently classified as a
probable reserve.
Capital expenditure is forecast to reduce in the year to 30 June 2009 as the bulk of the work on the expansion and exploration
programmes has been completed in the 2008 financial year.
Anthracite division
The anthracite division is expected to take advantage of the improved export prices for anthracite by placing spot cargoes at strong US
Dollar prices. The weaker Rand against the US Dollar is expected to assist, although the anthracite division has sold forward 4.5 million US
Dollar receipts from July 2008 to March 2009 at an average exchange rate of R7.36 to the US Dollar. The anthracite division has also entered
into zero cost collar and cap currency options totalling 5.6 million US Dollars which terminate in October 2008. These options have a collar
of R7.10 per US Dollar and a cap of R8.62 per US Dollar.
Somkhele has commenced the construction of a destoning plant that is scheduled to be in production in the last quarter of the 2009
financial year. It is anticipated that the destining plant will increase throughput by approximately 25%. A debt finance facility to fund
the plant construction has been approved by the Group's bankers. Management has budgeted a total capital expenditure for the year ending 30
June 2009 of R138 million. The majority of the capital is planned in order to accelerate the development of new mining areas to meet the
expansion programme, to expedite the exploration programme and to advance the social expenditure programme in the directly affected
communities around Somkhele.
Petmin has approved an exploration programme to delineate additional resources and this programme is expected to result in additional
resources in close proximity to the existing coal processing plant. Management expects to make an announcement on an updated
SAMREC-compliant reserve and resource statement in the fourth quarter of calendar 2008.
The anthracite division expects that sales volumes to inland customers will total 34% of sales for 2009 from the 25% in the year ended
30 June 2008, with significantly improved prices. Approximately 85% of all Somkhele's production to December 2008 had been contracted during
the construction phase at Somkhele (between January 2006 and June 2007) to mitigate the risk associated with starting up a new project.
Subsequently the export prices have almost doubled and Somkhele will benefit from these prices for the remaining portion of its production.
Approximately 150,000 tonnes of the current contract are due to be delivered in the six months to 31 December 2008.The anthracite division
has entered into a new contract, at significantly improved prices, for the sale of 1 million tonnes over a three year period ending December
2011. This equates to approximately 35% of the planned production tonnages over the contract period.
Due to the unprecedented demand for metallurgical coals, Somkhele is investigating capital projects to double its coal processing
capacity and consideration will be given to the construction of a second coal processing plant at Somkhele should the exploration programme
deliver the desired results. Management is investigating various opportunities to secure the use of additional export facilities.
Somkhele has mineral rights over a total of 28,742 hectares of land, of which, 1,430 hectares is currently being mined and 21,939
hectares is being explored and will significantly increase the mine's reserve base once the exploration programme is complete.
Veremo
Subsequent to the completion of the acquisition of Veremo in May 2008, Framework has assumed the responsibility to manage the process of
procuring an updated bankable feasibility study on the Veremo project. Due to the importance of the project, Petmin has agreed to the
appointment of Bradley Doig and Lebo Mogotsi as directors of Veremo and as members of the Veremo executive management team.
The investment in the Veremo project is an exciting prospect which gives Petmin the opportunity to become involved in a large scale
mining and beneficiation operation that may provide significant returns to its shareholders and furthermore, provides Petmin with a partner
that has a significant track record. Petmin's management team is continuing to evaluate value enhancing propositions to increase shareholder
wealth.
Condensed Consolidated Reviewed Income Statement
For the year ended 30 June 2008
GROUP Reviewed Reviewed
Year ended Year ended
30 June 30 June
2008 2007
Notes R'000 R'000
Revenue 666,879 382,341
Cost of sales (502,753) (326,500)
Gross profit 164,126 55,841
Other income - 54,943
- Profit on sale of subsidiary - 28,891
- Profit on acquisition of subsidiary - 26,052
Administration expenses (46,335) (19,653)
Operating profit before financing costs 117,791 91,131
Net finance (expense)/income (3,773) (1,104)
- Finance income 7,676 3,352
- Finance expenses (11,449) (4,456)
Share of profit of equity accounted 303,133 -
investee
Profit before tax 417,150 90,027
Income tax expense (36,736) (15,613)
Profit for the year 380,414 74,414
Attributable to:
- Equity holders of Petmin Limited 380,353 74,414
- Minority interest 61 -
Profit for the year 380,414 74,414
Basic earnings per ordinary share (cents) 7 75.43 16.14
Diluted earnings per ordinary share 7 74.15 15.77
(cents)
Condensed Consolidated Reviewed Balance Sheet
at 30 June 2008
GROUP Reviewed Reviewed
Year ended Year ended
30 June 30 June
2008 2007
Notes R'000 R'000
ASSETS
Non-current assets 1,003,860 469,518
Property, plant and equipment 580,200 453,122
Intangible assets 15,034 6,222
Investment in equity accounted investee 375,888 -
Investments 2 2
Restricted investments 11,236 10,172
Long-term receivables 21,500 -
Current assets 338,175 207,901
Inventories 69,261 63,045
Trade and other receivables 179,410 83,713
Taxation prepaid 793 793
Cash and cash equivalents 88,711 60,350
Total assets 1,342,035 677,419
EQUITY AND LIABILITIES
Ordinary share capital and reserves 1,005,424 451,051
Minority interest 2,434 -
Total equity 1,007,858 451,051
Non-current liabilities 178,021 118,627
Interest-bearing loans and borrowings 55,067 36,436
Deferred taxation 89,146 61,612
Environmental rehabilitation provision 33,808 20,579
Current liabilities 156,156 107,741
Trade and other payables 132,292 87,115
Current portion of non-current liabilities 15,386 14,181
Taxation payable 8,478 6,445
Total equity and liabilities 1,342,035 677,419
Net asset value ("NAV") per share (cents) 8 187.74 93.99
Fully diluted NAV per share cents 8 170.46 85.25
Condensed Consolidated Reviewed Statement of Changes in Equity
For the year ended 30 June 2008
GROUP Share capital Share premium Share option reserve Contingent Retained earnings Total
Minority interest Total equity
consideration
R'000 R'000 R'000 R'000 R'000 R'000
R'000 R'000
Balance at 1 July 2006 109,972 134,821 5,141 27,552 82,980 360,466
- 360,466
Shares issued during the year
* General issue for cash - AIM 10,000 21,174 - - - 31,174
- 31,174
listing
* Contingent share issue on - - - (26,052) - (26,052)
- (26,052)
acquisition of Springlake
reversed
* Share options granted - - 10,595 - - 10,595
- 10,595
Dividends forfeited - - - - 454 454
- 454
Profit for the year - - - - 74,414 74,414
- 74,414
Balance at 30 June 2007 119,972 155,995 15,736 1,500 157,848 451,051
- 451,051
Shares issued during the year
* To acquire Petmin Logistics 438 7,437 - - - 7,875
- 7,875
(Pty) Ltd
* To acquire 25% of Veremo 5,538 68,978 - - - 74,516
- 74,516
Holdings 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 - - - - - -
2,373 2,373
on acquisition of Petmin
Logistics (Pty) Ltd
Profit for the year - - - - 380,353 380,353
61 380,414
Balance at 30 June 2008 133,703 304,545 27,494 1,480 538,201 1,005,424
2,434 1,007,858
Condensed Consolidated Reviewed Cash Flow Statement
For the year ended 30 June 2008
GROUP Reviewed Reviewed
Year ended Year ended
30 June 30 June
2008 2007
R'000 R'000
Net cash outflow from operating activities 157,153 27,889
Cash flows from investing activities 502 -
Acquisition of subsidiary net of cash acquired (1,064) (912)
Increase in investment in rehabilitation funds (11,064) -
Investment in equity accounted investee (228,767) (127,522)
Acquisition of property, plant and equipment
- to expand operations (216,155) (112,977)
- to maintain operations (12,612) (14,545)
Proceeds from sale of subsidiary - 30,593
Proceeds from sale of property, plant and equipment - 399
Net cash flow from investing activities (240,393) (97,442)
Cash flows from financing activities
Proceeds from specific and general share issues for 91,896 34,053
cash during the year
Repayment of contingent consideration (132) -
Repayment of borrowings (11,509) (10,813)
Increase in borrowings 31,345 36,529
Net cash flows from financing activities 111,600 59,769
Net increase/(decrease) in cash and equivalents 28,361 (9,784)
Cash and cash equivalents at beginning of year 60,350 70,134
Cash and cash equivalents at end of year 88,711 60,350
Notes to the Condensed Consolidated Reviewed Financial Statements
1. Reporting entity
Petmin is a company domiciled in South Africa. The condensed consolidated reviewed financial statements of the Group for the year ended
30 June 2008 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 16 September 2008.
2. 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 2007.
3. Significant accounting policies
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 accounting policies have been applied consistently by Group entities and have been applied consistently to all periods presented in
these condensed consolidated reviewed financial statements.
4. Estimates and judgements
The preparation of reviewed 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 2007, with the exception of the
estimation of the fair value of the acquisition of the 25% investment in Veremo Holdings Limited ("Veremo") (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 review report is available for
inspection at the Group's registered offices.
6. 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 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.
The group comprises the following main business segments:
- Silica mining and marketing ("Silica")
- Anthracite mining and marketing ("Anthracite")
- Iron ore mining and beneficiation ("Iron Ore")
Business Segments
Silica Anthracite Iron Ore Other (Corporate Office)
Eliminations Consolidated
Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed
Reviewed Reviewed Reviewed
Year Year Year Year Year Year Year Year Year
Year Year Year
ended ended ended ended ended ended ended ended ended
ended ended ended
30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June
30 June 30 June 30 June
2008 2008 2008 2008 2008 2008 2008 2008 2008
2008 2008 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
Segment Revenue 153,034 127,712 513,845 254,629 - - - - -
- 666,879 382,341
Segment profit/(loss) before
tax
- segment result 46,742 35,379 90,973 6,667 - - (23,698) (6,962) -
- 114,017 35,084
- profit on sale of subsidiary - - - 28,891 - - - - -
- - 28,891
- profit on acquisition of - - - - - - - 26,052 -
- - 26,052
subsidiary
- share of profit of equity - - - - 303,133 - - - -
- 303,133
accounted investee
Segment profit/(loss) before 46,742 35,379 90,973 35,558 303,133 - (23,698) 19,090 -
- 417,150 90,027
tax
Segment capital expenditure 27,362 15,424 189,110 113,861 - - 3,295 192 -
- 228,767 129,477
Segment depreciation 7,688 7,235 93,680 16,631 - - 108 39 -
- 101,476 23,905
Share option costs included in -
segment
profit/(loss) before tax 190 190 - - - - 12,443 7,526 -
- 12,633 7,716
Segment assets 228,076 187,080 663,356 472,737 375,888 - 401,566 311,268 (326,851)
(293,666) 1,342,035 677,419
Segment liabilities 100,288 93,829 449,750 336,831 - - 21,947 6,690 (237,808)
(210, 982) 334,177 226,368
The losses in the corporate office include a once-off impairment charge of R4.7 million and share option costs of
R12.4 million (2007: R7.5 million).
7. 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 period.
Reviewed Reviewed
Year ended 2008 Year ended 2007
Profit for the year Number of shares in Per share in cents Profit for the year Number of shares in
Per share in cents
R'000 thousands R'000 thousands
Basic earnings per share 380,353 504,280 75.43 74,414 461,041
16.14
Share options and contingent - 8,701 (1.28) - 10,817
(0.37)
consideration
Diluted EPS 380,353 512,980 74.15 74,414 471,858
15.77
Headline earnings per share
Headline earnings per share are 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 380,353 504,280 75.43 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 - - - (26,052) - (5.65)
subsidiary
* share of profit of equity (303,133) - - - - -
accounted investee
Headline EPS 77,220 504,280 15.31 24,330 461,041 5.28
Share options and contingent - 8,701 (0.26) - 10,817 (0.12)
consideration
Diluted headline EPS 77,220 512,980 15.05 24,330 471,858 5.16
8. Net asset value ("NAV") per share
Reviewed Reviewed
Year ended Year ended
2008 2008
Ordinary share capital and reserves (R'000) 1,005,424 451,051
Total number of shares in issue 535,541 479,890
NAV per share (cents) 187.74 93.99
Ordinary share capital and reserves (R'000) 1,005,424 451,051
Total number of shares in issue ('000) 535,541 479,890
Share options and contingent consideration ('000) 54,299 49,183
Fully diluted number of shares ('000) 589,840 529,063
Fully diluted NAV per share (cents) 170.46 85.25
NAV per share increased 93.75 cents or 100% compared to 30 June 2007.
Fully diluted NAV per share increased 85.21 cents or 100% compared to 30 June 2007.
9. Related parties
9.1 NAMF and Dark Capital
NAMF Nominees (Proprietary) Limited ("NAMF") who disposed of their shareholding in Petmin (see 4 December 2007 press release) were,
until that date, material shareholders in Petmin. Dark Capital (Pty) Limited ("Dark Capital"), Petmin's anchor Black Economic Empowerment
shareholder, increased its shareholding in Petmin by acquiring 99 million Petmin shares from NAMF. Dark Capital is a material shareholder in
Petmin and is therefore a related party as defined by Section 10 of the Listings Requirements.
9.2 Petmin executive committee remuneration scheme and share option trust
As disclosed in the annual financial statements for the year ended 30 June 2007, 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. Management has reached agreement with the
Remuneration Committee on a new scheme with similar terms and conditions. The new remuneration scheme provides for a share option incentive
scheme for which shareholder approval will be requested.
9.3 Other transactions with related parties.
Other than as disclosed in note 8.1 above, there were no significant transactions with related parties.
10. Subsequent events
10.1 Renewal of Cautionary
Shareholders are advised that the Company has entered into negotiations which, if successfully concluded, may have a material effect on
the price of the Company's securities. Accordingly, shareholders are advised to exercise caution when dealing in their Petmin securities
until a further announcement is made.
10.2 Issue of shares
Petmin has issued 750 000 shares at R4.50 per share for the acquisition of the remaining 30% of Petmin Logistics (Pty) Ltd, resulting in
Petmin now holding 100% of Petmin Logistics.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KGGMLRNGGRZG
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