Rio Tinto Subsidiary Palabora Mining Announces Unaudited Group Results.Business Editors LONDON--(BUSINESS WIRE)--July 20, 2001 Rio Tinto Rio Tinto may refer to:
See: New York Stock Exchange : RTP (1) (Rapid Transport Protocol) The protocol used in IBM's High Performance Routing (HPR) system. (2) (Realtime Transport Protocol) An IP protocol that supports real time transmission of voice and video. ) Palabora Mining Unaudited Group Results
Six Months Six Months Year
Abridged Income Statement 30.6.01 30.6.00 2000
R000 R000 R000
Revenue 1 118 741 719 039 1 747 685
Operating Costs 758 754 496 574 1 305 600
Depreciation 83 802 66 294 124 302
Operating Profit 276 185 156 171 317 783
Interest Received 351 5 636 12 723
Interest Payable (15 560) (11 516) (11 545)
Foreign Exchange
Gains / (Losses) (6 172) (1 306) 28 081
Amortisation Of Discount
Related To Provisions (9 812) (918) (19 642)
Profit Before Taxation 244 992 148 067 327 400
Taxation 88 253 56 521 90 658
Current 13 169 24 717 7 738
Deferred Tax 75 084 31 804 82 920
Profit After Taxation 156 739 91 546 236 742
Notes:
1. Accounting principles
The accounting policies used in the preparation of the interim
report are consistent with those used in the audited financial
statements for the year ended 31 December 2000. The interim report
has been prepared in accordance with accounting standard AC127,
"Interim Reports".
Six Months Year
30.06.01 2000
2. Long-term loan
Long tem loan 1 002 230 595 100
Current portion - (405 850)
1 002 230 189 250
Six Months Six Months Year
30.6.01 30.6.00 2000
R000 R000 R000
Summarised Cash Flow
Cash Flow From
Operating Activities 366 827 174 207 317 239
Cash Flow From
Investing Activities (250 648) (288 395) (599 423)
Replacement Of Mining Assets (36 314) (48 911) (132 447)
Development Expenditure (214 455) (248 089) (476 673)
Other Investing Activities 121 8 605 9 697
Cash Flow From
Financing Activities 396 868 65 684 (225 192)
Long-Term Loans Raised - Net 407 130 82 673 (191 213)
Other Financing Activities (10 262) (16 989) (33 979)
Net Increase In Cash
And Cash Equivalents 513 047 (48 504) (507 376)
Cash And Cash Equivalents
At Beginning Of Period (587 168) (79 792) (79 792)
Cash And Cash Equivalent
At End Of Period (74 121) (128 296) (587 168)
Share Capital Other Distributable Total
& Premium Reserves Reserves
R000 R000 R000 R000
Statement of changes
in equity for the
six months ended 30
June 2001
Balance 1 January 2001 28 891 109 419 1 386 356 1 524 666
Net Gains And Losses
Not Recognised In
Income Statement:
Currency Translation
Difference 1 087 1 087
Net Profit For
The Period 156 739 156 739
Dividends (16 990) (16 990)
Balance 30 June 2001 28 891 110 506 1 526 105 1 665 502
Comparative statement of changes in equity
for the six months ended 30 June 2000
Balance 1 January 2000 28 891 79 648 1 183 593 1 292 132
Net Gains And Losses
Not Recognised In
Income Statement:
Currency Translation
Difference (1 269) (1 269)
Net Profit For The Period 91 546 91 546
Dividends (16 990) (16 990)
Balance 30 June 2000 28 891 78 379 1 258 149 1 365 419
Six Months Year
Abridged Balance Sheet 30.6.01 2000
R000 R000
Employment Of Capital
Current Assets 740 991 945 748
Mining Assets 3 189 841 2 935 660
Deferred Expenditure 14 813 26 126
Investments - (Unlisted) 41 967 41 967
Total Assets 3 987 612 3 949 501
Liabilities And
Shareholders' Equity
Current Liabilities 246 029 1 250 497
Provision For Close-Down
And Restoration Costs 151 913 142 092
Provision For Post-Retirement
Medical Benefits 147 994 141 490
Deferred Taxation 773 944 701 506
Long-Term Loans 1 002 230 189 250
Total Liabilities 2 322 110 2 424 835
Total Shareholders' Equity 1 665 502 1 524 666
Total Equity And Liabilities 3 987 612 3 949 501
The company has arranged a long-term loan with a group of national
and international banks for an unsecured facility agreement of US$125
million. This facility, which is being used for the underground mine
development and the repayment of other short term loans, is repayable
in six equal half yearly instalments starting on 11 June 2003 and the
interest rate is based on Libor/Jibor + 1,5%. The balance owing on the
Chase Manhattan loan, being US$50 million was repaid on 29 June 2001.
SELECTED STATISTICS
Six Months Six Months Year
30.6.01 30.6.00 2000
Production
And Sales
Materials Mined
(Millions Of Tons) 7,7 10,1 21,8
Copper In Concentrate
(Thousands Of Tons) 29,3 57,9 117,0
Cathode Produced
(Thousands Of Tons) 44,5 32,2 87,7
Cathode Sold
(Thousands Of Tons) 53,5 36,7 84,2
Contained Copper Sold
(Thousands Of Tons) 54,3 37,6 89,7
Average Rand/Dollar
Exchange Rate 7,93 6,58 6,93
Average Copper
Price Realised
Per Ton (ZAR) 14 446 11 983 12 949
Cash Cost
- Delivered (ZAR) 10 426 8 830 7 682
Average Copper
Price Realised (Usc/Lb) 82,6 82,6 84,8
All Tons Are Metric Tons
Capital Expenditure
(R Million) 251 262 505
Capital Commitments
(R Million)
Approved Expenditure
At End Of Each Period 828 958 999
Contracts Placed At
End Of Each Period 391 607 621
Share Capital (R 000)
Ordinary Shares Of
R1 Each (Thousands) - 28 500 28 500 28 500
Authorised
Ordinary Shares Of R1 Each
(Thousands) - Issued 28 316 28 316 28 316
The Directors Are
Authorised To Issue Unissued
Shares Until The Next
Annual General Meeting
Investments - (Unlisted)
Fair Value Of
Unlisted Investments 75 728 60 947 70 078
Dividends Paid (R000)
2000 Final Dividend
30 Cents Per Share 8 495
(1999 : 30 Cents Per Share) 8 495
2000 Total Dividend
120 Cents Per Share 33 980
2001 First Interim
Dividend : 30 Cents Per Share 8 495
(2000 : 30 Cents Per Share) 8 495
Earnings Per Share, Based On
The Net Profit After R5,54 R3,23 R8,36
Tax
Fully Diluted Earnings Per
Share, Based On The R5,54 R3,23 R8,36
Net Profit After Tax
Headline Earnings Per
Share, Based On The Net R5,54 R3,23 R7,91
Profit After Tax Adjusted
For Non-Operational
Gains/Losses
Net Asset Value Per Share R58,82 R48,22 R53,85
Segment reporting Copper Industrial Minerals
R000 R000
30.6.01 30.6.00 30.6.01 30.6.00
Profit And Loss
Revenues 784 728 450 345 228 797 171 745
Cost And Expenses 633 693 392 617 164 727 106 901
Operating Profit 151 035 57 728 64 070 64 844
Before Tax
Taxation
Net Income For The
Six Months
Other Total
R000 R000
30.6.01 30.6.00 30.6.01 30.6.00
Profit And Loss
Revenues 105 216 96 949 1 118 741 719 039
Cost And Expenses 75 329 71 455 873 749 570 972
Operating Profit 29 887 25 494 244 992 148 067
Before Tax
Taxation 88 253 56 521
Net Income For The 156 739 91 546
Six Months
The segmental split on a geographical basis is based on the
country in which the order is received. Total assets are presented by
geographical area according to where the assets are located.
South Africa America
R000 R000
30.6.01 30.6.00 30.6.01 30.6.00
Profit And Loss
Revenues 892 358 486 463 82 742 79 190
Cost And Expenses 698 487 398 593 72 261 68 605
Operating Profit 193 871 87 870 10 481 10 585
Before Tax
Taxation 72 495 37 988 4 055 4 041
Net Income For The 121 376 49 882 6 426 6 544
Six Months
Balance Sheet
Total Assets 3 780 137 3 157 137 76 274 77 604
Total Liabilities 2 283 487 1 633 165 7 868 12 665
United Kingdom Singapore
R000 R000
30.6.01 30.6.00 30.6.01 30.6.00
Profit And Loss
Revenues 109 464 124 880 34 177 28 506
Cost And Expenses 82 480 88 345 20 521 15 429
Operating Profit 26 984 36 535 13 656 13 077
Before Tax
Taxation 8 523 11 271 3 180 3 221
Net Income For The 18 461 25 264 10 476 9 856
Six Months
Balance Sheet
Total Assets 110 027 166 537 21 174 34 288
Total Liabilities 27 382 32 315 3 373 6 018
Total
R000
30.6.01 30.6.00
Profit And Loss
Revenues 1 118 741 719 039
Cost And Expenses 873 749 570 972
Operating Profit 244 992 148 067
Before Tax
Taxation 88 253 56 521
Net Income For The 156 739 91 546
Six Months
Balance Sheet
Total Assets 3 987 612 3 435 566
Total Liabilities 2 322 110 2 070 147
COMMENTARY Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Group Profit for the first half of 2001 was R157 million, compared with R92 million achieved for the equivalent period last year. The increase in profit was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in revenue on account of the benefit derived from a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the
Rand/US$ exchange rate and an increase in the contained copper sold.
Operating costs operating costs npl → gastos mpl operacionales were R759 million compared to R497 million for the first
six months in 2000. The increase was attributable to the increase in
sales volumes and increased operating costs due to industrial action.The Company and the National Union of Mineworkers
The National Union of Mineworkers is a trade union for coal miners in the United Kingdom. It was formed in 1945 as a reorganisation of the Miners' Federation of Great Britain (MFGB). failed to reach agreement on wages and conditions of employment conditions of employment that part of an employment that sets out the duties, responsibilities, hours of work, salary, leave and other privileges to be enjoyed by persons employed, for example a veterinary nurse, in private practice. negotiations in May 2001. This resulted in a protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. strike by the union and a simultaneous lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout by the company, which lasted 24 days from 22 May to 14 June June: see month. 2001. Sales and production volumes of all products were impacted by the industrial action. The Rand Rand See Witwatersrand. rand 1 n. See Table at currency. [Afrikaans, after(Witwaters)rand. copper price achieved for the first half of 2001 was R14 446/ton against R11 983/ton for the equivalent period in 2000. Revenue of R1 119 million was R400 million more than the R719 million achieved for the equivalent period in 2000. Contained copper sold increased from 37 583 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. in 2000 to 54 323 tons over the comparable period. There is a concern that the current low copper price of approximately US$0.70 per lb and the inventory effects of the strike will have an impact on second half earnings. Copper in concentrate produced was 29 307 tons, a decrease of 49% compared with the same period in 2000. This decrease was mainly the result of low concentrate grades associated with the processing of reverberatory re·ver·ber·a·to·ry adj. 1. Produced or operating by reverberation; deflected or diverted, as flame or heat, onto material being treated. 2. Of, relating to, or being a reverberatory furnace. n. pl. slag and low matte grades linked to high pyrrhotite pyrrhotite (pĭr`ətīt) or magnetic pyrites, bronze-yellow to bronze-red mineral, a sulfide of iron sometimes containing nickel. It tarnishes easily and is somewhat magnetic. levels in the ex-pit ex-pit Of or relating to a futures transaction that takes place away from the trading floor. For example, a person long a futures contract on coffee may agree to take delivery of the commodity from an investor who is short an identical contract. ores and the flooding of the open pit in the first quarter of the year. The last two months of the period under review were dominated by the strike and previously stockpiled concentrate was used to maintain smelter production at a reduced level. Production of copper cathode increased from 32 170 to 44 503 tons over the comparable period due to improved smelter performance compared to the first six months of 2000 when production was down due to smelter operational problems coupled with a planned extensive smelter overhaul. The company announced in April 2001 that mining in its present form in the open pit would come to an end on 31 January January: see month. 2002. By this date, the pit will be virtually exhausted and will have reached its final planned depth although some "scavenging scavenging of anesthetic. See anesthetic scavenging. " of the ramps will subsequently take place. It was also announced at the same time that the Zirconium zirconium (zərkō`nēəm), metallic chemical element; symbol Zr; at. no. 40; at. wt. 91.22; m.p. about 1,852°C;; b.p. 4,377°C;; sp. gr. 6.5 at 20°C;; valence +2, +3, or +4. Sulphate sulphate: see sulfate. Tetrahydrate A tetrahydrate is a molecule surrounded by four (4) molecules of water, forming a hydrate. The notation for a tetrahydrate is anhydrous molecule's formula·4H2O, where the 4 represents tetrahydrate, and the H2O represents the tetrahydrate. (ZST ZST Zone Standard Time ZST Zeta Sedimentation Rate ZST Zinc Sulfide Tracer ) plant would cease operations in its current form on 31 May 2001 as the expected reduction in zirconia available to the baddeleyite Noun 1. baddeleyite - a mineral consisting of zirconium oxide atomic number 40, zirconium, Zr - a lustrous grey strong metallic element resembling titanium; it is used in nuclear reactors as a neutron absorber; it occurs in baddeleyite but is obtained chiefly from plants is occurring earlier than anticipated and has rendered the ZST plant uneconomic. In anticipation of reduced copper output it was also determined that across the property there would be a number of positions which will no longer be required over the next two years. As a consequence of the above it was decided to offer voluntary early retirement to all employees who had reached the age of 53 years by 30 April 2001, and had 10 years service with the company. A total of 261 employees took up this offer. The company was successful in arranging a new four-and-a-half year unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. of US$125 million with a consortium of nine local and international banks. The loan has been used to repay the Chase Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). loan outstanding of US$50 million and other short term loans incurred to finance the underground mine development. The first of six half-yearly Half´-year`ly a. 1. Two in a year; semiannual. Adj. 1. half-yearly - occurring or payable twice each year biannual, semiannual, biyearly instalments is due on 11 June 2003. On 25 April 2001 the Company announced on the declaration of Dividend No. 136 that the payment of future dividends may be deferred in the light of the continuing need to finance the development of the underground mining project. One of the conditions pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the granting of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. loan was that of dividend control. The company undertook that it would not, in respect of either of the calendar years 2001 and 2002, distribute any of its Distributable Profits for each such calendar year except for the dividends already declared on 25 January 2001 and 25 April 2001. The directors ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. this agreement at the Board meeting held on 19 July July: see month. 2001. It is with regret that we have to report that a fatality fa·tal·i·ty n. 1. A death resulting from an accident or disaster. 2. One that is killed as a result of such an occurrence. occurred in the underground mine on 14 June 2001. A total of 11 lost time injuries (including the fatality) were reported during the first half of 2001. This is a small improvement over the 12 lost time injuries reported in the first half of 2000. The overall underground mine project schedule for the achievement of a sustainable production rate of 30 000 tons per day by November November: see month. 2002 is on target. A total of 39 262 square metres Noun 1. square metre - a centare is 1/100th of an are centare, square meter area unit, square measure - a system of units used to measure areas have been undercut undercut, n 1. the portion of a tooth that lies between its height of contour and the gingivae, only if that portion is of less circumference than the height of contour. 2. to date. Hand over of drawpoints has been consistent at a rate of one per week, since the end of April. This will enable the target of 100 drawpoints/drawbells to be achieved by November 2002. A total of ten drawbells are now available for production. Civil work to the first crusher crusher, machine used to reduce materials such as ore, coal, stone, and slag to particle sizes that are convenient for their intended uses. Crushers operate by slowly applying a large force to the material to be reduced. is almost complete. The civil contractor has taken over the second crusher chamber and has commenced concrete placement. Website: www.riotinto.com |
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