Interims for the Six months ended 31 December 2009
March 01 2010 - 2:00AM
UK Regulatory
TIDMPTMN
RNS Number : 7896H
Petmin Limited
01 March 2010
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 Group")
Condensed Consolidated Interim Financial Statements
For the six months ended 31 December 2009
- Cash on hand of R145 million (2008: R75 million) and unutilised banking
facilities of R150 million
- Normalised HEPS from continuing operations increased 10% from 7.55 cents to
8.28 cents
- Operating margin increased to 30% (2008: 19%)
"Petmin remains profitable and cash-generative despite extremely tough trading
conditions"
for the six months ended 31 December 2009
+------------------------------+------+------------+-----------+-----------+
| | | Reviewed | Reviewed | Audited |
+------------------------------+------+------------+-----------+-----------+
| | | Six months | Six | Year |
| | | | months | |
+------------------------------+------+------------+-----------+-----------+
| | | ended | ended | ended |
+------------------------------+------+------------+-----------+-----------+
| | | 31 | 31 | 30 |
| | | December | December | June |
+------------------------------+------+------------+-----------+-----------+
| | | 2009 | 2008 | 2009 |
+------------------------------+------+------------+-----------+-----------+
| | Note | R'000 | R'000 | R'000 |
+------------------------------+------+------------+-----------+-----------+
| Revenue | | 214 555 | 490 359 | 788 624 |
+------------------------------+------+------------+-----------+-----------+
| Cost of sales | | (127 070) | (375 569) | (578 419) |
+------------------------------+------+------------+-----------+-----------+
| Gross profit | | 87 485 | 114 790 | 210 205 |
+------------------------------+------+------------+-----------+-----------+
| Operating (expenses)/income | | (12 398) | 1 381 | (9 300) |
+------------------------------+------+------------+-----------+-----------+
| Administration expenses | | (11 062) | (22 821) | (27 011) |
+------------------------------+------+------------+-----------+-----------+
| Results from operating | | 64 025 | 93 350 | 173 894 |
| activities | | | | |
+------------------------------+------+------------+-----------+-----------+
| Net finance income/(expense) | | 1 895 | (3 773) | (969) |
+------------------------------+------+------------+-----------+-----------+
| - Finance income | | 4 582 | 5 460 | 11 270 |
+------------------------------+------+------------+-----------+-----------+
| - Finance expenses | | (2 687) | (9 233) | (12 239) |
+------------------------------+------+------------+-----------+-----------+
| Profit before tax and | | | | |
| separately | | | | |
+------------------------------+------+------------+-----------+-----------+
| disclosed items | | 65 920 | 89 577 | 172 925 |
+------------------------------+------+------------+-----------+-----------+
| Separately disclosed items: | | | | |
+------------------------------+------+------------+-----------+-----------+
| Loss on sale of subsidiary | | - | (13 392) | (79 170) |
+------------------------------+------+------------+-----------+-----------+
| Impairment loss on goodwill | | - | (1 327) | (1 327) |
| acquired | | | | |
+------------------------------+------+------------+-----------+-----------+
| Share of profit of | | | | |
| equity-accounted | | | | |
+------------------------------+------+------------+-----------+-----------+
| investee | | - | 32 635 | 78 185 |
+------------------------------+------+------------+-----------+-----------+
| Profit before income tax | | 65 920 | 107 493 | 170 613 |
+------------------------------+------+------------+-----------+-----------+
| Income tax expense | | (19 545) | (26 346) | (52 627) |
+------------------------------+------+------------+-----------+-----------+
| Profit for the period | | 46 375 | 81 147 | 117 986 |
+------------------------------+------+------------+-----------+-----------+
| Attributable to: | | | | |
+------------------------------+------+------------+-----------+-----------+
| - Equity holders of Petmin | | 46 375 | 81 525 | 118 364 |
| Limited | | | | |
+------------------------------+------+------------+-----------+-----------+
| - Non-controlling interest | | - | (378) | (378) |
+------------------------------+------+------------+-----------+-----------+
| Profit for the period | | 46 375 | 81 147 | 117 986 |
+------------------------------+------+------------+-----------+-----------+
| Basic earnings per ordinary | | | | |
+------------------------------+------+------------+-----------+-----------+
| share (cents) | 6 | 8.28 | 15.15 | 21.86 |
+------------------------------+------+------------+-----------+-----------+
| Diluted earnings per | | | | |
| ordinary | | | | |
+------------------------------+------+------------+-----------+-----------+
| share (cents) | 6 | 8.17 | 14.72 | 20.68 |
+------------------------------+------+------------+-----------+-----------+
Comprehensive Income
for the six months ended 31 December 2009
+-------------------------------------------+-----------+----------+---------+
| | Reviewed | Reviewed | Audited |
+-------------------------------------------+-----------+----------+---------+
| | Six | Six | Year |
| | months | months | |
+-------------------------------------------+-----------+----------+---------+
| | ended | ended | ended |
+-------------------------------------------+-----------+----------+---------+
| | 31 | 31 | 30 |
| | December | December | June |
+-------------------------------------------+-----------+----------+---------+
| | 2009 | 2008 | 2009 |
+-------------------------------------------+-----------+----------+---------+
| | R'000 | R'000 | R'000 |
+-------------------------------------------+-----------+----------+---------+
| Profit for the period | 46 375 | 81 147 | 117 986 |
+-------------------------------------------+-----------+----------+---------+
| Other comprehensive income/(expense) | | | |
+-------------------------------------------+-----------+----------+---------+
| Effective portion of changes in fair | | | |
| value | | | |
+-------------------------------------------+-----------+----------+---------+
| of cash flow hedges | 636 | (877) | 241 |
+-------------------------------------------+-----------+----------+---------+
| Other comprehensive income/(expense) | | | |
+-------------------------------------------+-----------+----------+---------+
| for the period, net of income tax | 636 | (877) | 241 |
+-------------------------------------------+-----------+----------+---------+
| Total comprehensive income for the period | 47 011 | 80 270 | 118 227 |
+-------------------------------------------+-----------+----------+---------+
| Attributable to: | | | |
+-------------------------------------------+-----------+----------+---------+
| - Equity holders of Petmin Limited | 47 011 | 80 648 | 118 605 |
+-------------------------------------------+-----------+----------+---------+
| - Non-controlling interest | - | (378) | (378) |
+-------------------------------------------+-----------+----------+---------+
| Total comprehensive income for the period | 47 011 | 80 270 | 118 227 |
+-------------------------------------------+-----------+----------+---------+
as at 31 December 2009
+--------------------------------+------+-----------+-----------+-----------+
| | | Reviewed | Reviewed | Audited |
+--------------------------------+------+-----------+-----------+-----------+
| | | 31 | 31 | 30 |
| | | December | December | June |
+--------------------------------+------+-----------+-----------+-----------+
| | | 2009 | 2008 | 2009 |
+--------------------------------+------+-----------+-----------+-----------+
| | Note | R'000 | R'000 | R'000 |
+--------------------------------+------+-----------+-----------+-----------+
| ASSETS | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Non-current assets | | 1 140 819 | 1 038 661 | 1131 688 |
+--------------------------------+------+-----------+-----------+-----------+
| Property, plant and equipment | | 639 492 | 585 102 | 629 102 |
+--------------------------------+------+-----------+-----------+-----------+
| Intangible assets | | 5 666 | 8 184 | 6 925 |
+--------------------------------+------+-----------+-----------+-----------+
| Investment in equity-accounted | | 470 661 | 423 875 | 470 661 |
| investee | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Investments | | 25 000 | - | 25 000 |
+--------------------------------+------+-----------+-----------+-----------+
| Long-term receivables | | - | 21 500 | - |
+--------------------------------+------+-----------+-----------+-----------+
| Current assets | | 347 002 | 409 774 | 341 642 |
+--------------------------------+------+-----------+-----------+-----------+
| Inventories | | 43 998 | 32 829 | 30 373 |
+--------------------------------+------+-----------+-----------+-----------+
| Trade and other receivables | | 151 964 | 105 831 | 214 239 |
+--------------------------------+------+-----------+-----------+-----------+
| Current tax assets | | 6 220 | 3 128 | 5 934 |
+--------------------------------+------+-----------+-----------+-----------+
| Cash and cash equivalents | | 144 820 | 75 290 | 91 096 |
+--------------------------------+------+-----------+-----------+-----------+
| Assets classified as held for | | - | 192 696 | - |
| sale | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Total assets | | 1 487 821 | 1 448 435 | 1 473 330 |
+--------------------------------+------+-----------+-----------+-----------+
| EQUITY AND LIABILITIES | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Ordinary share capital and | | 1 170 295 | 1 085 049 | 1 119 101 |
| reserves | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Share capital | | 138 479 | 135 236 | 134 686 |
+--------------------------------+------+-----------+-----------+-----------+
| Share premium | | 315 854 | 307 223 | 304 745 |
+--------------------------------+------+-----------+-----------+-----------+
| Share option reserve | | 13 022 | 23 741 | 23 741 |
+--------------------------------+------+-----------+-----------+-----------+
| Hedging reserve | | - | (877) | (636) |
+--------------------------------+------+-----------+-----------+-----------+
| Retained earnings | | 702 940 | 619 726 | 656 565 |
+--------------------------------+------+-----------+-----------+-----------+
| Non-current liabilities | | 193 975 | 164 336 | 181 192 |
+--------------------------------+------+-----------+-----------+-----------+
| Interest-bearing loans and | | 57 362 | 66 394 | 57 664 |
| borrowings | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Deferred taxation liabilities | | 114 658 | 78 999 | 100 901 |
+--------------------------------+------+-----------+-----------+-----------+
| Environmental rehabilitation | | 21 955 | 18 943 | 22 627 |
| provision | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Current liabilities | | 123 551 | 199 050 | 173 037 |
+--------------------------------+------+-----------+-----------+-----------+
| Trade and other payables | | 76 731 | 104 375 | 119 101 |
+--------------------------------+------+-----------+-----------+-----------+
| Current portion of non-current | | 46 820 | 10 942 | 53 936 |
| liabilities | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Current tax liabilities | | - | 474 | - |
+--------------------------------+------+-----------+-----------+-----------+
| Liabilities classified as held | | - | 83 259 | - |
| for sale | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| Total equity and liabilities | | 1 487 821 | 1 448 435 | 1 473 330 |
+--------------------------------+------+-----------+-----------+-----------+
| Net asset value ("NAV") per | | | | |
+--------------------------------+------+-----------+-----------+-----------+
| share (cents) | 7 | 208.69 | 199.26 | 205.51 |
+--------------------------------+------+-----------+-----------+-----------+
| Fully diluted NAV per share | 7 | 200.52 | 184.36 | 190.14 |
| (cents) | | | | |
+--------------------------------+------+-----------+-----------+-----------+
for the six months ended 31 December 2009
+--------------------------------------------+----------+-----------+-----------+
| | | | Audited |
+--------------------------------------------+----------+-----------+-----------+
| | Reviewed | Year | Reviewed |
| | | ended | |
+--------------------------------------------+----------+-----------+-----------+
| | 31 | 30 | 31 |
| | December | June | December |
+--------------------------------------------+----------+-----------+-----------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------+----------+-----------+-----------+
| | R'000 | R'000 | R'000 |
+--------------------------------------------+----------+-----------+-----------+
| Net cash flow from operating activities | 112 508 | 165 059 | 225 348 |
+--------------------------------------------+----------+-----------+-----------+
| Cash flows from investing activities | | | |
+--------------------------------------------+----------+-----------+-----------+
| Increase in investment in rehabilitation | - | (622) | (5 115) |
| funds | | | |
+--------------------------------------------+----------+-----------+-----------+
| Investment in equity-accounted investee | - | (15 352) | (16 589) |
+--------------------------------------------+----------+-----------+-----------+
| Investment in preference share | - | - | (25 000) |
+--------------------------------------------+----------+-----------+-----------+
| Acquisition of property, plant and | (55 560) | (170 113) | (290 991) |
| equipment | | | |
+--------------------------------------------+----------+-----------+-----------+
| - to expand operations | (23 649) | (80 367) | (188 092) |
+--------------------------------------------+----------+-----------+-----------+
| - to expand operations - capitalised | (27 418) | (79 906) | (86 408) |
| pre-strip | | | |
+--------------------------------------------+----------+-----------+-----------+
| - to maintain operations | (4 493) | (9 840) | (16 491) |
+--------------------------------------------+----------+-----------+-----------+
| Proceeds from sale of subsidiary net of | | | |
+--------------------------------------------+----------+-----------+-----------+
| cash disposed | - | - | 77 707 |
+--------------------------------------------+----------+-----------+-----------+
| Proceeds from sale of property, plant | | | |
+--------------------------------------------+----------+-----------+-----------+
| and equipment | 11 | - | 47 |
+--------------------------------------------+----------+-----------+-----------+
| Net cash flow from investing activities | (55 549) | (186 087) | (259 941) |
+--------------------------------------------+----------+-----------+-----------+
| Cash flows from financing activities | | | |
+--------------------------------------------+----------+-----------+-----------+
| Proceeds from specific and general | | | |
+--------------------------------------------+----------+-----------+-----------+
| share issues for cash during the period | 16 792 | 4 907 | 4 907 |
+--------------------------------------------+----------+-----------+-----------+
| Treasury shares acquired | (12 609) | (5 748) | (8 775) |
+--------------------------------------------+----------+-----------+-----------+
| Repayment of contingent consideration | - | (3 991) | (4 005) |
+--------------------------------------------+----------+-----------+-----------+
| Repayment of borrowings | (45 418) | (6 342) | (16 776) |
+--------------------------------------------+----------+-----------+-----------+
| Increase in borrowings | 38 000 | 18 781 | 61 627 |
+--------------------------------------------+----------+-----------+-----------+
| Net cash flows from financing activities | (3 235) | 7 607 | 36 978 |
+--------------------------------------------+----------+-----------+-----------+
| Net (decrease) / increase in cash and | | | |
+--------------------------------------------+----------+-----------+-----------+
| cash equivalents | 53 724 | (13 421) | 2 385 |
+--------------------------------------------+----------+-----------+-----------+
| Cash and cash equivalents at beginning of | 91 096 | 88 711 | 88 711 |
| period | | | |
+--------------------------------------------+----------+-----------+-----------+
| Cash and cash equivalents at end of period | 144 820 | 75 290 | 91 096 |
+--------------------------------------------+----------+-----------+-----------+
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.
The Group comprises the following main business segments:
- Silica mining and marketing ("Silica")
- Anthracite mining and marketing ("Anthracite")
- Iron ore project ("Iron Ore")
for the six months ended 31 December 2009
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| | Silica | Anthracite | Iron Ore | Other | Eliminations | Consolidated |
| | | | | (corporate | | |
| | | | | office) | | |
+------------------+---------------------------------+---------------------------------+-------------------------------+--------------------------------+-----------------------------------+-----------------------------------+
| | 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 | 31 | 31 | 30 | 31 | 31 | 30 | 31 | 31 | 30 | 31 | 31 | 30 | 31 | 31 | 30 |
| | December | December | June | December | December | June | December | December | June | December | December | June | December | December | June | December | December | June |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| | 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 | 607 140 | 815 235 | 1 333 613 | 202 800 | 637 325 | 1 016 940 | - | - | - | - | - | - | - | - | - | 809 940 | 1 452 560 | 2 350 553 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Tonnes | 547 359 | 902 513 | 1 511 850 | 171 867 | 682 879 | 960 764 | - | - | - | - | - | - | - | - | - | 719 226 | 1 585 392 | 2 472 614 |
| sold | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | 73 202 | 101 139 | 180 795 | 141 353 | 389 220 | 607 829 | - | - | - | - | - | - | - | - | - | 214 555 | 490 359 | 788 624 |
| revenue | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| revenue | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| per | | | | | | | | | | | | | | | | | | |
| tonne | | | | | | | | | | | | | | | | | | |
| sold | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| (R/t) | 133.74 | 112.06 | 119.59 | 822.46 | 569.97 | 632.65 | - | - | - | - | - | - | - | - | - | - | - | - |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| profit/ | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| (loss) | | | | | | | | | | | | | | | | | | |
| before | | | | | | | | | | | | | | | | | | |
| tax | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| profit | | | | | | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| tonne | 40.70 | 28.54 | 31.43 | 273.03 | 97.50 | 134.10 | - | - | - | - | - | - | - | - | - | - | - | - |
| sold | | | | | | | | | | | | | | | | | | |
| (R/t) | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | 22 277 | 25 758 | 47 524 | 46 924 | 66 584 | 128 840 | - | - | - | (3 281) | 1 178 | 504 | - | (3 943) | (3 943) | 65 920 | 89 577 | 172 925 |
| segment | | | | | | | | | | | | | | | | | | |
| result | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| -impairment | | | | | | | | | | | | | | | | | | |
| loss | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| on | | | | | | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | | | | | | |
| classified | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| as | - | - | - | - | (13 392) | - | - | - | - | - | - | - | - | - | - | - | (13 392) | - |
| held | | | | | | | | | | | | | | | | | | |
| for | | | | | | | | | | | | | | | | | | |
| sale | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | | | | | | | | | | | | | | | | | | |
| loss | | | | | | | | | | | | | | | | | | |
| on | | | | | | | | | | | | | | | | | | |
| sale | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| subsidiary | | - | - | - | - | - | - | - | - | - | - | (79 170) | - | - | - | - | - | (79 170) |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| -impairment | | | | | | | | | | | | | | | | | | |
| loss on | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| goodwill | - | - | - | - | (1 327) | (1 327) | - | - | - | - | - | - | - | - | - | - | (1 327) | (1 327) |
| acquired | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | | | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | |
| profit | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| equity-accounted | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| investee | - | - | - | - | - | - | - | 32 635 | 78 185 | - | - | - | - | - | - | - | 32 635 | 78 185 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| profit/(loss) | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| before | 22 277 | 25 758 | 47 524 | 46 924 | 51 865 | 127 513 | - | 32 635 | 78 185 | (3 281) | 1 178 | (78 666) | - | (3 943) | (3 943) | 65 920 | 107 493 | 170 613 |
| tax | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| capital | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| expenditure- | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| combined | 5 379 | 10 128 | 16 327 | 46 895 | 160 592 | 277 327 | - | - | - | 3 284 | 2 365 | 2 598 | - | (2 972) | (2 288) | 55 558 | 170 113 | 293 964 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| capital | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| expenditure | 5 379 | 10 128 | 16 327 | 19 479 | 80 686 | 190 919 | - | - | - | 3 284 | 2 365 | 2 598 | - | (2 972) | (2 288) | 28 142 | 90 207 | 207 556 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| capital | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| expenditure- | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| pre-strip | - | - | - | 27 416 | 79 906 | 86 408 | - | - | - | - | - | - | - | - | - | 27 416 | 79 906 | 86 408 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| depreciation | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| and | | | | | | | | | | | | | | | | | | |
| amortisation- | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| combined | 6 038 | 4 105 | 10 335 | 40 266 | 53 212 | 120 702 | - | - | - | 123 | 84 | 177 | - | - | - | 46 427 | 57 401 | 131 214 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| depreciation | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| and | 6 038 | 4 105 | 10 335 | 7 916 | 16 992 | 29 425 | - | - | - | 123 | 84 | 177 | - | - | - | 14 077 | 21 181 | 39 937 |
| amortisation | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | | | | | | | |
| depreciation | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| and | | | | | | | | | | | | | | | | | | |
| amortisation- | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| pre-strip | - | - | - | 32 350 | 36 220 | 91 277 | - | - | - | - | - | - | - | - | - | 32 350 | 36 220 | 91 277 |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | 274 060 | 217 368 | 228 612 | 701 728 | 805 186 | 653 148 | 495 661 | 423 875 | 495 661 | 353 080 | 394 631 | 355 908 | (336 708) | (392 625) | (259 999) | 1 487 821 | 1 448 435 | 1 473 330 |
| assets | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Segment | 94 778 | 71 529 | 66 931 | 467 808 | 556 781 | 451 964 | - | - | - | 25 356 | 29 332 | 42 497 | (270 416) | (294 256) | (207 163) | 317 526 | 363 386 | 354 229 |
| liabilities | | | | | | | | | | | | | | | | | | |
+------------------+----------+----------+-----------+----------+----------+-----------+----------+----------+---------+----------+----------+----------+-----------+-----------+-----------+-----------+-----------+-----------+
The open pit mining profile at Somkhele 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.
The comparative results for the anthracite division for the periods ended 31
December 2008 and 30 June 2009 include the results of Springlake. Springlake was
sold on 29 June 2009. The table below depicts the anthracite division's
operating performance for the comparative periods with Springlake shown
separately.
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment report - | | | | | | | |
| continued | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Anthracite - | | | | | | | |
| analysis of | | | | | | | |
| comparative periods | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | Anthracite | Excl | Springlake | Combined | Excl | Springlake | Combined |
| | | Springlake | | | Springlake | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | Reviewed | Reviewed | Reviewed | Reviewed | Audited | Audited | Audited |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | six | six | six | six | Year | Year | Year |
| | months | months | months | months | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | ended | ended | ended | ended | ended | ended | ended |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | 31 | 31 | 31 | 31 | 30 | 30 | 30 |
| | December | December | December | December | June | June | June |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | 2009 | 2008 | 2008 | 2008 | 2009 | 2009 | 2009 |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Saleable tonnes | 202 800 | 282 930 | 354 395 | 637 325 | 454 187 | 562 753 | 1 016 940 |
| produced | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Tonnes sold | 171 867 | 321 825 | 361 054 | 682 879 | 481 638 | 479 126 | 960 764 |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment revenue | 141 353 | 194 008 | 195 212 | 389 220 | 343 506 | 264 323 | 607 829 |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment revenue per | R | R602.84 | R540.67 | R569.97 | R713.20 | R551.68 | R632.65 |
| tonne sold (R/t) | 822.46 | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment profit | | | | | | | |
| before tax | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment profit per | R273.03 | R109.58 | R86.74 | R97.50 | R198.34 | R69.53 | R134.10 |
| tonne sold (R/t) | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| - segment result | 46 924 | 35 266 | 31 318 | 66 584 | 95 526 | 33 314 | 128 840 |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| - impairment loss on | - | - | (13 392) | (13 392) | - | - | - |
| assets classified as | | | | | | | |
| held for sale | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| - loss on sale of | - | - | - | - | - | - | - |
| subsidiary | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| - impairment loss on | - | (1 327) | - | (1 327) | (1 327) | - | (1 327) |
| goodwill acquired | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| - share of profit of | - | - | - | - | - | - | - |
| equity accounted | | | | | | | |
| investee | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment profit | 46 924 | 33 939 | 17 926 | 51 865 | 94 199 | 33 314 | 127 513 |
| before tax | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment capital | 46 895 | 155 376 | 5 216 | 160 592 | 263 409 | 13 918 | 277 327 |
| expenditure - | | | | | | | |
| combined | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment capital | 19 479 | 75 470 | 5 216 | 80 686 | 177 001 | 13 918 | 190 919 |
| expenditure | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment capital | 27 416 | 79 906 | - | 79 906 | 86 408 | - | 86 408 |
| expenditure - | | | | | | | |
| pre-strip | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment depreciation | 40 266 | 45 377 | 7 835 | 53 212 | 104 660 | 16 042 | 120 702 |
| and amortisation - | | | | | | | |
| combined | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment depreciation | 7 916 | 9 157 | 7 835 | 16 992 | 13 383 | 16 042 | 29 425 |
| and amortisation | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
| Segment depreciation | 32 350 | 36 220 | - | 36 220 | 91 277 | - | 91 277 |
| and amortisation | | | | | | | |
| -pre-strip | | | | | | | |
+----------------------+------------+------------+------------+----------+------------+------------+-----------+
The anthracite segment revenue comprises a combination of local sales
denominated in Rands and export sales predominantly denominated in US Dollars.
At 31 December 2009, Petmin had $1 million hedged at an average rate of
R9.91/USD1.00. These hedges were closed out on 22 January 2010. Subsequent to 31
December 2009, Petmin has entered into zero cost collar and cap hedges for $9.9
million which represents approximately 50% of anticipated export revenue to June
2010. These hedges protect a downside of R7.60/ $1.00 and with caps ranging from
R7.7854/ $1.00 to R8.2862/ $1.00. Management continues to monitor the foreign
exchange rates and may enter into new hedges to secure Rand profit levels as the
opportunity arises.
for the six months ended 31 December 2009
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Attributable to equity holders of the Company |
+-------------------------------------------------------------------------------------------------------------------------------+
| | | | Share | Contingent | | | | Non- | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| | Share | Share | option | consideration | Hedging | Retained | | controlling | 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 | 133 704 | 304 545 | 27 494 | 1 480 | - | 538 201 | 1 005 424 | 2 434 | 1 007 858 |
| 2008 | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Shares issued | | | | | | | | | |
| during the period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| - To acquire 30% | 188 | 3 188 | - | - | - | - | 3 376 | (2 056) | 1 320 |
| of Petmin | | | | | | | | | |
| Logistics (Pty) | | | | | | | | | |
| Limited | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| - Share options | 1 945 | 7 161 | (4 199) | - | - | - | 4 907 | - | 4 907 |
| exercised | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| - Issued to | 117 | 163 | - | (280) | - | - | - | - | - |
| Springlake Vendors | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Treasury shares | (1 768) | (11 012) | - | - | - | - | (12 780) | - | (12 780) |
| acquired during | | | | | | | | | |
| the period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Treasury shares | 500 | 700 | - | (1 200) | - | - | - | - | - |
| transferred to | | | | | | | | | |
| Spinglake Vendors | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Share options | - | - | 446 | - | - | - | 446 | - | 446 |
| granted | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Effective portion | - | - | - | - | (636) | - | (636) | - | (636) |
| of changes in fair | | | | | | | | | |
| value of cash flow | | | | | | | | | |
| hedges | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Profit for the | - | - | - | - | - | 118 364 | 118 364 | (378) | 117 986 |
| period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Balance at 30 June | 134 686 | 304 745 | 23 741 | - | (636) | 656 565 | 1 119 101 | - | 1 119 101 |
| 2009 | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Shares issued | | | | | | | | | |
| during the period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| - Share options | 4 063 | 16 298 | (10 719) | - | - | - | 9 642 | - | 9 642 |
| exercised | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Treasury shares | (1 663) | (10 946) | - | - | - | - | (12 609) | - | (12,609) |
| acquired during | | | | | | | | | |
| the period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Treasury shares | 181 | 1 273 | - | - | - | - | 1 454 | - | 1 454 |
| transferred on | | | | | | | | | |
| share-based | | | | | | | | | |
| payment | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Treasury shares | 1 212 | 4 484 | - | - | - | - | 5 696 | - | 5 696 |
| transferred on | | | | | | | | | |
| exercise of | | | | | | | | | |
| options | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Effective portion | - | - | - | - | 636 | - | 636 | - | 636 |
| of changes in fair | | | | | | | | | |
| value of cash flow | | | | | | | | | |
| hedges | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Profit for the | - | - | - | - | - | 46 375 | 46 375 | - | 46 375 |
| period | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
| Balance at 31 | 138 479 | 315 854 | 13 022 | - | - | 702 940 | 1 170 295 | - | 1 170 295 |
| December 2009 | | | | | | | | | |
+--------------------+---------+----------+----------+---------------+---------+----------+-----------+-------------+-----------+
Notes to the Condensed Consolidated Interim Financial Statements
for the six months ended 31 December 2009
1. Reporting entity
Petmin is a company domiciled in South Africa. The condensed consolidated
interim financial statements of the Company as at and for the six months ended
31 December 2009 comprise the Company and its subsidiaries (together referred to
as the "Group") and the Group's interest in associates.
The condensed consolidated interim financial statements were authorised for
issue by the directors on 1 March 2010.
2. Statement of compliance
The condensed consolidated interim 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 interim 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 2009, which are available upon request from the
Company's registered office at Parc Nouveau, First Floor, Block C, 225 Veale
Street, Brooklyn, Pretoria or at www.petmin.co.za.
3. Significant accounting policies
The condensed consolidated interim 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 interim 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 2009.
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. 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 |
+------------------------------------------------------------------------------------------+------------+
| | six |
| | months |
+------------------------------------------------------------------------------------------+------------+
| | Reviewed | Reviewed | ended |
+----------------------------+-----------------------------+-------------------------------+------------+
| | six months ended | six months ended | 31 |
| | | | December |
+----------------------------+-----------------------------+-------------------------------+------------+
| | 31 December 2009 | 31 December 2008 | 2008 |
| | | | excluding |
+----------------------------+-----------------------------+-------------------------------+------------+
| | | | | | | | Springlake |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| | Profit | Number | Per | Profit | Number | Per | Per |
| | for | of | | for | of | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| | the | shares | share | the | shares | share | share |
| | period | in | | period | in | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| | R'000 | thousands | in | R'000 | thousands | in | in |
| | | | cents | | | cents | cents |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Basic earnings | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| per share | 46 375 | 560 285 | 8.28 | 81 525 | 538 244 | 15.15 | 13.37 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Share options | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| and contingent | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| consideration | - | 7 424 | (0.11) | - | 15 629 | (0.43) | (0.38) |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Diluted EPS | 46 375 | 567 709 | 8.17 | 81 525 | 553 873 | 14.72 | 12.99 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| 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 | 46 375 | 560 285 | 8.28 | 81 525 | 538 244 | 15.15 | 13.37 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Adjustments: | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| - Impairment of | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| goodwill | - | - | - | 1 327 | - | 0.25 | 0.25 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| - Fair value | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| impairment | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| on assets held | - | - | - | 13 392 | - | 2.48 | - |
| | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| - Share of | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| profit | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| of equity | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| accounted | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| investee | - | - | - | (32 635) | - | (6.06) | (6.06) |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Headline EPS | 46 375 | 560 285 | 8.28 | 63 609 | 538 244 | 11.82 | 7.55 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Share options | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| and contingent | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| consideration | - | 7 424 | (0.11) | - | 15 629 | (0.34) | (0.21) |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| Diluted headline | | | | | | | |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
| EPS | 46 375 | 567 709 | 8.17 | 63 609 | 553 873 | 11.48 | 7.34 |
+----------------------------+--------+-----------+--------+----------+-----------+--------+------------+
7. Net asset value ("NAV") per share
+------------------------------------+-----------+-----------+-----------+
| | Reviewed | Reviewed | Audited |
+------------------------------------+-----------+-----------+-----------+
| | six | six | Year |
| | months | months | |
+------------------------------------+-----------+-----------+-----------+
| | ended | ended | ended |
+------------------------------------+-----------+-----------+-----------+
| | 31 | 31 | 30 |
| | December | December | June |
+------------------------------------+-----------+-----------+-----------+
| | 2009 | 2008 | 2009 |
+------------------------------------+-----------+-----------+-----------+
| Ordinary share capital and | 1 170 295 | 1 085 049 | 1 119 101 |
| reserves (R'000) | | | |
+------------------------------------+-----------+-----------+-----------+
| Total number of shares in issue | 560 788 | 544 538 | 544 538 |
| ('000) | | | |
+------------------------------------+-----------+-----------+-----------+
| NAV per share (cents) | 208.69 | 199.26 | 205.51 |
+------------------------------------+-----------+-----------+-----------+
| Ordinary share capital and | 1 170 295 | 1 085 049 | 1 119 101 |
| reserves (R'000) | | | |
+------------------------------------+-----------+-----------+-----------+
| Total number of shares in issue | 560 788 | 544 538 | 544 538 |
| ('000) | | | |
+------------------------------------+-----------+-----------+-----------+
| Share options and contingent | 22 845 | 44 019 | 44 019 |
| consideration ('000) | | | |
+------------------------------------+-----------+-----------+-----------+
| Fully diluted number of shares | 583 633 | 588 557 | 588 557 |
| ('000) | | | |
+------------------------------------+-----------+-----------+-----------+
| Fully diluted NAV per share | 200.52 | 184.36 | 190.14 |
| (cents) | | | |
+------------------------------------+-----------+-----------+-----------+
NAV per share increased 3.18 cents or 1.6% compared to 30 June 2008. Fully
diluted NAV per share increased 10.38 cents or 5.5% compared to 30 June 2009.
The NAV above includes the value of assets on an historical cost and fair value
at acquisition basis. The directors' valuation of the Group's life of mine cash
flows (taking into account the corporate office costs) amounts to R2.096 billion
or 359 cents per share on a fully diluted basis. This valuation is based on
current operations and takes no account for possible future expansion programmes
at Somkhele.
8. Related parties
Dark Capital (Pty) Limited ("Dark Capital"), Petmin's anchor Black Economic
Empowerment shareholder, is a material shareholder in Petmin and is therefore a
related party as defined by Section 10 of the Listings Requirements.
8.1 Loan to related party
As disclosed in the annual financial statements for the year ended 30 June 2009,
the Company advanced a loan of R11 million to Dark Capital (Pty) Limited. The
loan is secured by the cession of the shareholders claim held by the Dark Trust
in Dark Capital (Pty) Limited.
The loan is repayable on or before 18 July 2010. This loan is to be repaid on
the conclusion of the financing arrangements which were approved by shareholders
at the AGM held on26January 2010 detailed in note 10.1 below.
8.1 Exercise of options and share based payment
As disclosed in the post balance sheet events note in the annual financial
statements for the year ended 30 June 2009, on 30 June 2009, the Company was
informed that Lebo Mogotsi and Bradley Doig (both executive directors) directly
exercised 4 000 000 options each at an exercise price of 65 cents per share.
Dawie Warmenhoven, who resigned as a director of the company on 28 February
2009, exercised 3 000 000 options at an exercise price of 65 cents per share. An
employee who is a director of a subsidiary company directly exercised 1 050 000
options each at an exercise price of 65 cents per share and 500 000 options each
at an exercise price of 45 cents per share. The shares were issued in July 2009
after receiving the requisite regulatory approvals.
On 30 June 2009, the Company was informed that Numis Securities Limited
exercised 4 798 900 options at an exercise price of 9 British
pence per share. These options were granted pursuant to the placement agreement
on Petmin's admission to AIM in December 2006.
The shares were issued in July 2009.
On 31 August 2009, the Company was informed that a former employee of the Group
would exercise 250 000 options and an investment
vehicle in which Jan du Preez has an indirect non-beneficial interest would
exercise 3 500 000 options. These options had an exercise
price of 45 cents per share.
On 16 September 2009, the Company transferred 727 222 Petmin shares from the
treasury to Bradley Doig, in accordance with his contract of employment with the
Company, signed in 2006.
As outlined in the 2008 annual report, the Petmin Executive Remuneration Scheme
was renewed for a three-year period ending 30 June 2011. The Petmin remuneration
committee continues to monitor the remuneration scheme to ensure effective
alignment of the interests of management to those of Petmin's shareholders. As
further evidence of this alignment, in the six months to 31 December 2009, Jan
du Preez acquired 2 545 000 Petmin shares on the open market for a total
consideration of R4.8 million and Bradley Doig acquired 1 500 000 Petmin shares
on the open market for a total consideration of R3 million.
Please refer to separate SENS announcements for more information on these
transactions.
9. Appointment of director
On 7 July 2009, Petmin announced the appointment of Bruce Tanner as Financial
Director of Petmin with effect from 1 July 2009. Bruce joined Petmin in 2005 as
Group Financial Manager and Chief Financial Officer and has served on the
Executive Committee since joining the Group.
10. Subsequent events
10.1 Financial assistance to Dark Capital
On 27 January 2010, at the Company's Annual General Meeting, it was resolved
that the Company is authorised to provide Dark Capital with financial assistance
in terms of Section 38 of the Companies Act whereby the Company will provide a
suretyship in favour of a financial institution for the obligations of Dark
Capital relating to certain debt previously incurred by Dark Capital in order to
purchase and/or subscribe for shares in the Company.
At the time of this report, Dark Capital, Petmin and the financial institution
had not yet finalised the terms of their financing arrangement and Petmin has
consequently not yet provided the suretyship to the financial institution.
There have been no other events that have occurred subsequent to 31 December
2009 which require adjustment of, or disclosure in the financial statements or
notes thereto in accordance with IAS 10 - Events After the Balance Sheet Date.
10.2 Appointment of Executive Chairman Designate
Petmin is pleased to announce that Ian Cockerill has been appointed as an
executive director with effect from 1 March 2010 and will assume the role of
Executive Chairman with effect from 1 July 2010. Ian will guide the Petmin team
in pursuit of its aggressive growth strategy. Ian has served Petmin as a
non-executive director since 1 October, 2007.
Please refer to the separate press release for more information on his
appointment.
Management commentary
(i) Operations
The 2009 calendar year has been the most difficult year experienced in Petmin's
history. Despite the turmoil in the worldwide financial markets and its
consequential impact on the world commodity markets, Petmin generated a profit
before tax of R66 million and cash from operating activities of R113 million.
Normalised headline earnings per share from continuing operations increased by
10% from 7.55 cents to 8.28 cents.
The management teams at SamQuarz and Somkhele have settled in well and, in line
with Petmin's six pillar strategy, act as "owners" of their business units.
Revenue for the six months ended 31 December 2009 was R215 million (2008: R490
million) and gross profit was R87 million (2008: R115 million). The decreased
revenue and gross profit is largely due to the exclusion of the results of
Springlake Colliery in the current period and reduced sales volumes due to the
slowdown experienced in the world economy in the latter half of calendar year
2009. In the six months to 31 December 2008, the Group's revenue excluding
Springlake was R295 million.
Management is pleased to report that the operating margin achieved in the six
months to
31 December 2009 was 30% (2008: 19%). This is as a result of effective cost
management, improved prices achieved at Somkhele and due to the disposal of the
less profitable Springlake Colliery.
In the six months to December 2009, the Company consolidated its financial
position in anticipation of difficult financial and operational conditions in
this period and reduced its production and capital expenditure programmes
accordingly, resulting in a healthy balance sheet position at 31 December 2009.
At 31 December 2009, Petmin had R145 million cash on hand (30 June 2009: R91
million), its interest bearing debt to equity ratio was 8.90% (30 June 2009:
9.97%) and it had unutilised banking facilities of approximately R150 million
bearing interest at or below prime and currency hedging facilities of $50
million.
The operations remained cash generative and cash of R113 million (2008 excluding
Springlake: R125 million; 2008 including Springlake: R165 million) was generated
by the operations in the six months to 31 December 2009.
Capital expenditure of R56 million (2008: R170 million) was incurred in the six
months to 31 December 2009. The reduced capital spend reflects the reduced
development expenditure requirement at Somkhele as the Phase 1 development of
Somkhele is complete. The main areas of capital expenditure were capital
pre-stripping of the open pits at Somkhele of R27 million (2008: R80 million),
road and infrastructural development at Somkhele and pit development expenditure
at SamQuarz.
In the six months ended 31 December 2009, Petmin acquired 6 653 180 (2008: 4 869
390) of its own shares at an average price of 188 cents per share (2008: 200
cents per share).
Somkhele anthracite mine and Petmin Logistics
In the first three months of the period under review, the anthracite market was
severely curtailed with the local ferrochrome industry reducing production by
90% due to a significant reduction in demand in the export market. However, with
signs of the economic recovery emerging, we are pleased to report that the local
market demand is now almost at levels last seen before the worldwide financial
crisis and the export market demand has improved significantly.
Profit before tax and impairment charges was R47 million, a reduction of R20
million compared to 2008. If Springlake is excluded from the comparative period,
Somkhele's profit before tax and impairment charges increased by R12 million
over the comparative period. This improved profitability is as a result of
improved cost control and due to improved volumes and prices achieved in the
latter part of the period under review.
SamQuarz silica mine
SamQuarz produced 607 140 (2008: 815 235) and sold 547 359 (2008: 902 513)
tonnes of silica and chert in the six months ended 31 December 2009.
Revenue reduced by R28 million or 28% to R73 million (2008: R101 million) due to
a 39% reduction in sales volumes in the period under review. Reduced sales
volumes of silica rock to the metallurgical industry (down 24% from 2008) and of
lower value chert to the metallurgical and construction industry (down 64% from
2008) were the main drivers behind the reduced revenues generated.
The silica division's margins improved from 26% in 2008 to 30% in the period
under review due to the changed sales mix and, as a result, the division's
profit before tax was R22 million, down only 14% from the R26 million despite
the 39% reduction in sales volumes for the six months to 31 December 2008.
Capital expenditure of R5 million (2008: R10 million) was focused on the
development of the open-pit to ensure safe mining conditions and to ensure
continued supply of correct quality material to customers.
During the six months under review, Veremo finalised a core drilling and core
sampling programme together with a trenching campaign as part of a final
geological scoping study. The infill drill programme covered high priority areas
identified from previous drilling campaigns with the aim of delineating a
SAMREC-compliant measured resource for the weathered zone.
This drilling programme has delineated an updated measured resource of 44.3
million tonnes (previously 11.6 million tonnes) in the weathered zone of the ore
body. This weathered material is easier and cheaper to mine and process than the
fresh ore and as a result, additional weathered material is beneficial to the
project economics.
The following SAMREC compliant Resources were calculated by MSA Geoservices
(Pty) Limited for the weathered portion of the Resource:
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| | | | Combined weathered resources for Blocks |
| | | | 1 to 5 |
+-----------------------+--------+---------+------------------------------------------------------------------+
| | Tonnes | Bulk | Al2 | CaO | Fe | Fe2 | MgO | P205 | SiO2 | TiO2 | V2 |
| | | | O3 | | | O3 | | | | | O5 |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| | | Density | | | | | | | | | |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| | '000 | | % | % | % | % | % | % | % | % | % |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| Measured | 44 252 | 3.51 | 5.01 | 0.71 | 43.39 | 61.99 | 1.83 | 0.07 | 12.86 | 14.69 | 0.15 |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| Indicated | 29 099 | 3.54 | 5.19 | 0.96 | 42.99 | 61.41 | 1.80 | 0.07 | 12.54 | 15.08 | 0.15 |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| Measured and | | | | | | | | | | | |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| indicated | 73 352 | 3.52 | 5.08 | 0.81 | 43.23 | 61.76 | 1.82 | 0.07 | 12.73 | 14.84 | 0.15 |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
| Inferred | 12 825 | 3.63 | 4.48 | 0.78 | 45.70 | 65.29 | 1.79 | 0.08 | 10.22 | 15.96 | 0.15 |
+-----------------------+--------+---------+------+------+-------+-------+------+------+-------+-------+------+
(ii) Prospects
Anthracite division
The outlook for the anthracite market has significantly improved for the
remainder of the calendar year to 30 June 2010. The demand for our product in
the inland market is at our production capacity and the outlook for the export
market has also improved, with the division currently negotiating an export
contract for an additional 100 000 tonnes for the calendar year 2010 and a
domestic contract for approximately 120 000 tonnes per annum for three years at
market related prices. With the current sales profile, the production for the
2010 calendar year is almost fully committed.
Management is investigating various projects with a view to expand the
anthracite division and create new markets. This may lead to a decision to build
a second coal processing plant in order to double the existing production
capacity at Somkhele to 1.2 million sales tonnes per annum.
Management expects SamQuarz to maintain profitability levels to 30 June 2010.
Capital expenditure is forecast to increase in the six months to 30 June 2010 to
R17 million as the development expenditure in the open-pit is incurred to secure
sufficient production to meet future customer demand. Included in the R17
million is capital expenditure of R7.5 million to be spent to make a slip in the
highwall of the pit safe for future mining operations.
Veremo is considering the consolidation of the Veremo management team whose key
tasks will be to procure a bankable feasibility study and to submit a mining
right application for the project.
The presented Weathered Resource at Veremo, determined over the entire strike
length and currently subdivided into 5 structural domains, is to be reviewed and
re-calculated according to the layout of individual mining blocks. This exercise
will require mine planning/engineering input and an assessment of the potential
processing and mining costs to constrain unit costs, cut-off grades, stripping
ratios, etc.
(iii) Building a world class mining company
We have created an excellent platform for growth. Our disciplined
entrepreneurial approach combined with the operating excellence achieved at our
current operations is an ideal base from which to launch and execute our growth
strategy. The objective of this strategy is to significantly increase the size
of Petmin and to provide superior returns to our shareholders.
+-----------------------------------+---------------+
| By order of the Board | |
+-----------------------------------+---------------+
| P J Nel | J C du Preez |
+-----------------------------------+---------------+
| Chairman | Chief |
| | Executive |
| | Officer |
+-----------------------------------+---------------+
Johannesburg
1 March 2010
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*, J Taylor*, B Tanner (Financial Director)
*Non-executive #British
Registered office: Parc Nouveau, 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
Nominated adviser - AIM: Numis Securities Limited, Tel: +44 (0) 207 260 1000
Transfer secretaries: JSE: Computershare Investor Services (Proprietary)
Limited, AIM: Computershare Investor Services PLC
Auditors:KPMG Inc.
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
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