Corporate profile

Petmin is a multi-commodity mining and processing company and one of the leading producers of quality anthracite and silica in South Africa. The Company is primarily focused on a mix of quality, cash-producing assets and projects, with a diverse geographical spread of commodities that feed into infrastructure growth and urbanisation.

Petmin has been listed on the JSE Limited (JSE) since 1986 and the London Stock Exchange’s Alternative Investment Market (AIM) since 2006. Petmin aims to move its London listing to the Main Board and to become part of the FTSE Top 250 Index within three years.

Petmin currently holds two operating assets, SamQuarz Silica Mine and Somkhele Anthracite Mine; a 25% interest in the Veremo Pig Iron Development Project; and a 100% interest in Petmin Logistics.

SamQuarz is the largest producer of high-quality silica in South Africa with run-of-mine (ROM) production of 1.3 million tonnes a year. Somkhele is one of the country's largest producers of high-quality anthracite for local and export markets and has a current plant capacity of approximately 1.4 million ROM tonnes per year.

Petmin Logistics has a contractual agreement with Transnet Port Terminals for the exclusive use of an export facility for 600,000 tonnes a year at Richards Bay Dry Bulk Terminal.

The Group supplies to blue-chip customers in the metallurgical and industrial sectors, including Xstrata South Africa (Pty) Ltd, Samancor Limited, ASA Metals, Siltech, Assmang Limited, and also to the glass industry, including PFG - a division of PG Group, Consol Limited and Nampak Limited.

Somkhele has SAMREC-compliant anthracite Resources of 51.2 million tonnes over Areas 1 to 3, with additional Resources of approximately 22 million tonnes; SamQuarz has quartzite Reserves of 60.6 million tonnes and chert Reserves of 11.8 million tonnes; and Veremo has SAMREC-compliant Measured Weathered Resources of over 44.3 million tonnes.

The Company has a strong balance sheet, with current gearing of only 7.55%. Its cash reserve position of R283 million and undrawn bank facilities of R110 million ensure that Petmin has the financial capacity to meet working capital requirements; to fund its project development pipeline; and to underpin potential acquisitions.

Petmin has an experienced corporate and operational management team with a track record of making value-enhancing acquisitions and disposals, and of improving the operational efficiencies of the businesses acquired.

The shareholding by black economic empowerment (BEE) groups is currently 28.3%.

Management and directors currently have a shareholding interest in Petmin of 20.4%, and can thus keep their interests well aligned with those of other shareholders. The Group is actively involved in community development through projects at both SamQuarz and Somkhele. At the end of the 2010 financial year, the Company employed 663 people (including contractors).