Normandy Mining Limited: Financial Report To Shareholders.Business Editors ADELAIDE Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. , Australia--(BUSINESS WIRE)--Feb. 4, 2002 Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NDY NDY Not Dead Yet NDY Not Done Yet .) Financial Report to Shareholders Six Months to 31 December December: see month. 2001 A sustained focus on the core elements of cost maintenance, growth and value generation ... delivering a 31% uplift in six month profit to A$83.5 million. PROFIT -- $35.6 million at Midas, including $10.1 million on underground development and $19.9 million on mining equipment, mainly trucks; -- $17.0 million at Tanami, which includes $9.2 million on development of Groundrush; -- $11.4 million at Jundee, mainly comprising decline and mine development; and -- $11.2 million at Pajingo on mobile equipment as part of switch to owner mining. GOLD -- Consolidated contribution, $199.6 million ($168.0M) -- Consolidated sales 1.225 million ounces (1.049Moz) -- Net realised price $577 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. ($552/oz) -- Total cash cost $310 per ounce ($297/oz) NON-GOLD -- Consolidated contribution ($8.2) million ($6.1M) CASH FLOW -- From operating activities $156.1 million ($93.7M) -- Cash balance $358.1 million ($344.8M June 2001) BALANCE SHEET -- Net debt to net debt and equity 43% (40% June 2001) -- Shareholder funds $1,278.6 million ($1,398.0M June 2001) -- gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. on target, allowing for a reduction in total hedged ounces from 11.2 million ounces to 9.9 million ounces 5 February 2002 NOTE: (1) Previous December half figures italicised in brackets brackets: see punctuation. . (2) All figures in Australian dollars Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents , unless specified otherwise. PROFIT RESULT ... Profit attributable to Normandy shareholders, excluding significant items, was $82.2 million for the six months to December 2001, an increase of 31% over the previous corresponding half year. Gross profit from gold operations increased 19% to $199.6 million due to higher consolidated gold production of 1.205 million ounces, up 11%. Higher production at Tanami and Bronzewing Bronzewing standard domestic turkey; black with bronzing on neck and back, and bronze barring on tail, which has a wide, white end-stripe. The female has white end-stripes on breast, back and wing bows, and secondary bows. Shanks are blackish-pink. , together with new contributors Ovacik and Midas, have more than compensated for the loss of gold output from Mt Leyshon's cessation cessation Vox populi The stopping of a thing. See Smoking cessation. and the lower Super Pit head grade encountered in Kalgoorlie. The average realised gold price was $577/oz ($562/oz) based on consolidated gold sales of 1.225 million ounces. The average spot price for the half year was $537/oz. Average total production cost increased by $10/oz to $416/oz. Non-cash costs remained steady at $106/oz, however cash costs of production increased by 3% to $310/oz mainly as a result of the difficulties at the Super Pit in the September quarter. Non-gold operations had a negative contribution of $8.2 million mainly reflecting the impact of lower spot zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. prices on Golden Grove
Normandy's share of associates results includes an inaugural contribution from the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. Gold Refinery partnership covering the period from April 2001 in addition to the share of results from TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas. Exploration provisions and writeoffs have decreased by 42% reflecting the decision taken last year to decrease global expenditure and focus on projects within 150km of existing infrastructure. Administration expenses increased by 4% from $26.80/oz to $27.80/oz. Borrowing costs have decreased as the Group has maintained its gearing at or near the 40% level. Significant items include: -- a $54.5 million gain on change in Australian Magnesium magnesium (măgnē`zēəm, –zhəm), metallic chemical element; symbol Mg; at. no. 12; at. wt. 24.305; m.p. about 648.8°C;; b.p. about 1,090°C;; sp. gr. 1.738 at 20°C;; valence +2. Corporation (AMC (Advanced Mezzanine Card) See AdvancedTCA. ) ownership interest, comprising $10.0 million previously consolidated AMC losses recognised upon loss of control and $44.5 million representing the change in Normandy's interest in AMC's historical accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. losses; -- takeover related costs incurred and accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. to 31 December were $25.7 million (a minimum additional $22 million in advisor fees has been disclosed as a contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. ); and -- asset writedowns of $27.5 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , listed investments and the Mastra project in Turkey.
SIMPLIFIED FINANCIAL RESULTS
(A$M) 3 mths to 3 mths to 6 mths to 6 mths to
31 Dec 30 Sep 31 Dec 31 Dec
2001 2001 2001 2000
----------------------------------------------------------------------
Sales revenue 409.8 429.7 839.5 756.0
Cost of production (251.2) (256.1) (507.3) (459.9)
Depreciation & amortisation (59.7) (71.8) (131.5) (110.4)
Mine closure (4.4) (4.9) (9.3) (11.6)
-----------------------------------------
Gross Profit (1) 94.5 96.9 191.4 174.1
-----------------------------------------
Share of net profit
of associates 1.6 2.2 3.8 (1.1)
Exploration provisions
& write-offs (8.6) (9.2) (17.8) (30.6)
Administration expenses (18.3) (15.2) (33.5) (29.4)
Borrowing costs (20.7) (24.2) (44.9) (52.5)
Other income/(expenses) 4.3 1.6 5.9 10.7
Significant items;
Gain on change in
AMC ownership interest 54.5 - 54.5 -
Takeover costs (25.7) - (25.7) -
Asset writedowns (27.5) - (27.5) -
-----------------------------------------
Profit/(loss) from
ordinary activities 54.1 52.1 106.2 71.2
Income tax expense relating
to ordinary activities (9.8) (12.5) (22.3) (11.0)
-----------------------------------------
Profit/(loss) from ordinary
activities after related
income tax expense 44.3 39.6 83.9 60.2
Outside equity interests 3.8 (4.2) (0.4) 2.4
-----------------------------------------
Net profit/(loss)
attributable to members of
Normandy Mining Limited 48.1 35.4 83.5 62.6
----------------------------------------------------------------------
Operating profit before
significant items
attributable to members
of Normandy Mining Limited 46.8 35.4 82.2 62.6
Significant items included
in operating profit/(loss)
before outside equity
interests (2) 1.3 - 1.3 -
Operating profit after
significant items
attributable to members
of Normandy Mining Limited 48.1 35.4 83.5 62.6
----------------------------------------------------------------------
(1) See table on page 3 for detail by operation
(2) No outside equity interest or income tax applicable
CASH FLOWS ... Net cash flow from operating activities was $156.1 million for the 6 months to December 2001. Normandy NFM's operating cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. before tax increased by 119% to $88.4 million, while the Group benefited from higher cash inflow from Bronzewing and Jundee as well as new operating cash contributions from Midas and Ovacik. The stronger underlying cash inflows from operations has more than compensated for the decrease in dividends from TVX Normandy Americas and higher income tax payments incurred by Normandy NFM NFM Nebraska Furniture Mart NFM Network File Management NFM Network Fault Management NFM No Further Message NFM Near Field Monitor NFM National Firearms Museum (Fairfax, Virginia) NFM NATOPS Flight Manual NFM Northern Fowl Mite . Capital expenditure on property, plant and equipment includes: -- $35.6 million at Midas, including $10.1 million on underground development and $19.9 million on mining equipment, mainly trucks; -- $17.0 million at Tanami, which includes $9.2 million on development of Groundrush; -- $11.4 million at Jundee, mainly comprising decline and mine development; and -- $11.2 million at Pajingo on mobile equipment as part of switch to owner mining. Development project expenditure largely reflects costs capitalised by AMC on the magnesium project while it was consolidated by Normandy. Cash balances disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. as part of sales of businesses totalled $28.4 million mainly due to Mt Leyshon and AMC. During the half year, the Group has drawn down a further $70 million on its syndicated corporate facility and has repaid about $15 million in project finance debt.
SIMPLIFIED STATEMENT OF CASH FLOWS
(A$M) 6 months to 12 months to
31 December 30 June
2001 2001
--------------------------------------------------------------------
Operating activities
Receipts from customers 839.9 1,576.6
Payments to suppliers & employees (630.3) (1,186.9)
Dividends received from associates 11.4 42.6
Interest paid (48.2) (93.8)
Income tax paid (27.0) (38.9)
Other 10.3 22.5
---------------------------
Net operating cash flows 156.1 322.1
---------------------------
Investing activities
Payments for property, plant & equipment (104.6) (146.5)
Payments for exploration (24.8) (62.8)
Payments for development projects (22.9) (87.8)
Payment for purchase of investments (14.9) -
Proceeds from sale of investments 0.7 130.3
Loans repaid by other entities 4.5 113.0
Businesses acquired/disposed (28.4) 120.1
Other 0.3 13.5
---------------------------
Net investing cash flows (190.1) 79.8
---------------------------
Financing activities
Net proceeds from/(repayment of) borrowings 55.1 (302.4)
Dividends paid (7.2) (95.2)
Proceeds from issue of securities - 93.8
---------------------------
Net financing cash flows 47.9 (303.8)
---------------------------
Net increase/(decrease) in cash held 13.9 98.1
Cash at beginning of period 344.8 245.4
Exchange rate adjustments (0.6) 1.3
Cash at end of period 358.1 344.8
--------------------------------------------------------------------
Operational Gross Profit
(A$M) 3 mths to 3 mths to 6 mths to 6 mths to
31 Dec 30 Sep 31 Dec 31 Dec
2001 2001 2001 2000
----------------------------------------------------------------------
GOLD
Yandal 12.8 9.6 22.4 28.9
Kalgoorlie 22.0 19.8 41.8 52.7
Tanami 29.7 36.1 65.8 36.8
Pajingo 15.0 12.6 27.6 22.6
Boddington 8.7 9.2 17.9 9.9
Midas (0.3) 3.9 3.6 -
Martha 7.5 0.2 7.7 5.3
Ovacik 5.5 2.6 8.1 -
Other (1.1) 5.8 4.7 11.8
-------------------------------------------
Total 99.8 99.8 199.6 168.0
NON-GOLD
Golden Grove 1.2 (4.0) (2.8) 17.4
Other (6.5) 1.1 (5.4) (11.3)
-------------------------------------------
Total (5.3) (2.9) (8.2) 6.1
-------------------------------------------
Total 94.5 96.9 191.4 174.1
----------------------------------------------------------------------
BALANCE SHEET ... The balance sheet remains strong. Net debt was largely unchanged, however following the deconsolidations of AMC, Mt Leyshon and Ity, equity attributable to outside equity interests reduced by $118.3 million, resulting in a slight increase in the gearing ratio to 43%. The increase in receivables reflects the consideration owing for the sale of Ity in December 2001. Investments increased due to the acquisition of the 50% interest in the AGR AGR advanced gas-cooled reactor partnership and the reversion reversion: see atavism. to an equity investment in AMC following their equity issue and Normandy's loss of control. Exploration and evaluation increased as a result of the fair valuation applied to the exploration interests of Otter Gold Mines Limited. The decrease in development properties reflects the deconsolidation of the AMC project and the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of Ovacik to property, plant and equipment now that it is in operation. Interest-bearing liabilities at 31 December comprise A$270 million drawn under a A$490 million syndicated corporate facility, US$300 million Yandal Notes (non-recourse to Normandy), US$250 million Normandy Notes, project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. relating to Kasese (US$40M) and Ovacik (US$37M), and A$30 million in bank debt from Otter Gold Mines Limited. Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. decreased in line with the $46 million allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of deferred hedge gains to revenue. Total equity decreased despite the $83.5 million net profit and no interim dividend. This was due to the removal of AMC outside equity interests of $119 million and a net $40 million reduction in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. from the deconsolidation of AMC. Hedging As previously announced, Normandy has revised its gold hedging policy, reducing the minimum hedge ratio Hedge Ratio 1. A ratio comparing the value of a position protected via a hedge with the size of the entire position itself. 2. A ratio comparing the value of futures contracts purchased or sold to the value of the cash commodity being hedged. Notes: 1. from 60% to 45% of reserves, with Ovacik and Midas remaining unhedged. As a consequence, the hedge book was reduced in January 2002 with the buy-back of 1.3 million ounces of long term fixed price forward contracts on a cash neutral basis. Dividends Due to the currency of Newmont Mining Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in, Nevada, Indonesia, Australia/New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Corporation's takeover offer for Normandy, the Normandy Board has resolved not to declare a dividend.
SIMPLIFIED STATEMENT OF FINANCIAL POSITION
(A$M)
31 December 30 June
2001 2001
-------------------------------------------------------------
Current assets
Cash, bank bills & gold bullion 358.1 344.8
Receivables 153.6 123.7
Inventories 166.5 169.5
Other 173.8 161.9
-------------------------
852.0 799.9
Non-current assets
Investments in associates 348.8 244.0
Exploration & evaluation 180.4 151.7
Development properties 151.2 499.5
Property, plant & equipment 1,710.5 1,750.0
Other 427.2 401.4
-------------------------
2,818.1 3,046.6
-------------------------
Total assets 3,670.1 3,846.5
Current liabilities
Accounts payable 249.6 249.8
Interest-bearing liabilities 127.1 114.0
Other 204.1 238.6
-------------------------
580.8 602.4
Non-current liabilities
Interest-bearing liabilities 1,204.9 1,181.8
Other 605.8 664.3
-------------------------
1,810.7 1,846.1
Total liabilities 2,391.5 2,448.5
Net assets 1,278.6 1,398.0
Equity
Contributed equity 1,602.6 1,593.9
Reserves 72.5 71.4
Retained profits/(accumulated
losses) (445.7) (434.8)
-------------------------
Equity attributable to members of
Normandy Mining Limited 1,229.4 1,230.5
Outside equity interests in
controlled entities 49.2 167.5
-------------------------
Total equity 1,278.6 1,398.0
-------------------------------------------------------------
INVESTOR INFORMATION
Board of Directors
RJ Champion de Crespigny Chairman & CEO
MS Hamson Non-Executive Director
P Lassonde Non-Executive Director
BG McKay Non-Executive Director
JB Prescott AC Non-Executive Director
KH Spencer AM Non-Executive Director
B Wheelahan Non-Executive Director
Registered & Principal Office
100 Hutt Street, Adelaide 5000, SA, Australia
Tel: +61 8 8303 1700; Fax: +61 8 8303 1900
E-mail: investor@normandy.com.au
PF Carr Company Secretary
Issued Capital At 31 December 2001, issued capital was 2,237,861,347 shares. Shareholder Enquiries Matters relating to shares held, change of address, tax file number and dividends should be directed to the Share Registry The configuration database in all 32-bit versions of Windows that contains settings for the hardware and software in the PC it is installed in. The Registry is made up of the SYSTEM.DAT and USER.DAT files. Many settings previously stored in the WIN.INI and SYSTEM. : National Shareholder Services Pty Limited 100 Hutt Street, Adelaide 5000, SA, Australia Tel: +61 8 8232 0003; Fax: +61 8 8232 0072 E-Mail: shareregistry@normandy.com.au Stock Exchange Listings Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. Ticker Symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors NDY Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. Ticker Symbol NDY ADS Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , 101 Barclay Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10286 Tel: +1 212 815 2204; Fax: +1 212 571 3050 |
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