In its first set of results since converting from a cash shell to an operating mining company, Petra Mining Limited (Petmin) has announced a profit after tax of R28.3 million for the year ended 30 June 2005 (FY05).
Earnings per share (EPS) were 16.74 cents compared with a loss per share of 0.27 cents in the previous year. Headline earnings per share (HEPS) were 3.24 cents compared with a loss of 0.27 cents.
On a fully diluted basis, EPS increased to 16.36 cents from a loss of 0.27 cents and HEPS to 3.17 cents from a loss of 0.27 cents.
At the close of business yesterday (Thursday, 29 September 2005), Petmin shares were trading at 94 cents per share compared with 30 cents per share when control of the company changed hands during February 2004.
Company CEO Dawie Warmenhoven says that, over the past 18 months, Petmin has acquired a quality asset base comprising silica sand producer SamQuartz and has announced its acquisition, for R108 million, of Springlake Holdings (Pty) Limited, holder of various South African coal and anthracite mining interests. It is anticipated that this acquisition will be completed by the end of October 2005 Petmin's net asset value and net tangible asset value per share has increased by 107% from 25.88 cents to 53.53 cents.
"In SamQuartz we have a long-term, stable cash generative business; a market leader with a disciplined management team," Warmenhoven says.
"During the year, PFG – a major customer- announced a R700 million expansion programme involving the establishment of a second production line, for which SamQuartz will be the exclusive supplier of silica sand."
Springlake comprises:
Springlake will bring strong cash generative capacity to Petmin's balance sheet, says Warmenhoven.
The vendors have warranted average profits after tax of R23 million a year for the 2006 and 2007 financial years.
Somkhele, he says, will be developed over the next 18 months and is expected to produce at least 480 000 run-of-mine tonnes of high-quality anthracite a year for local and export markets. Both the resource and planned plant capacity allow for a significant increase in production over time.
During and subsequent to year-end, Warmenhoven says, Petmin has completed an initiative with material shareholder the New Africa Mining Fund (NAMF) and exisiting BEE shareholder Dark Capital (Pty) Limited to establish an anchor BEE shareholding in Petmin.
On conclusion of the Springlake transaction, the BEE anchor shareholders will control 38.14% of the issued share capital of Petmin. They, with other BEE shareholders in Petmin, will control 52.74% of the company's share capital.
Bradley Doig, Executive Director of NAMF, which has invested a total of R81 million in Petmin's assets, is pleased with the company's financial performance to date: "This is an investment that has fulfilled a very important component of NAMF's mandate to facilitate sustainable participation by Historically Disadvantaged South Africans in South Africa's junior mining sector."
"Looking ahead, Petmin intends to enhance its position as a premier BEE-controlled junior mining company, acquiring high-quality, cash-producing assets in the industrial and base minerals sectors and managing these so to optimise performance," Warmenhoven says.
© 2008 Petmin Limited