SENS Note - 25 April 2013

Trading statement the year ended 28 February 2013

 

Infrasors Holdings Limited

(Incorporated in the Republic of South Africa)

(Registration number: 2007/002405/06)

Share Code on the JSE: IRA ISIN: ZAE000101507

("Infrasors" or "the Company")

 

TRADING STATEMENT

 

In terms of the JSE Listings Requirements, companies are required to

publish a trading statement as soon as they are satisfied within a

reasonable degree of certainty that the financial results of the period

to be reported upon will differ by 20% or more from the financial

results of the previous corresponding period.

 

Accordingly, Infrasors shareholders are advised that for the year ended

28 February 2013 (“the year”):

 

-   Earnings per share (“EPS”) is expected to decrease by between 185.0

    cents per share and 165.0 cents per share, compared to the earnings

    of 2.8 cents per share for the previous corresponding period as

    restated (previously reported profit of 14.9 cents per share);

-   Headline earnings per share (“HEPS”) is expected to decrease by

    between 33.0 cents per share and 23.0 cent per share, compared to

    the loss of 1.8 cents per share for the previous corresponding

    period as restated (previously reported earnings of 10.3 cents per

    share); and

-   Net asset value per share as at 28 February 2013 amounts to 50.4

    cents per share.

 

The key reasons for the decline in EPS and HEPS include:

 

-   Impairment of non-core property in use, investment property and

    mineral rights due to a change in future intended use, as a result

    of difficulties in obtaining regulatory approvals by Infrasors and

    tough general market conditions, amounting to R296.4 million. A

    strategy to deal with non-core assets will be developed in due

    course;

-   Change in accounting policy in respect of IFRS 6 expenditure. The

    adoption of the new policy requires the expensing of mine

    development and mineral right-related costs which have previously

    been capitalised. R14.0 million has been expensed for the year (and

    in respect of the previous year as restated, R30.6 million);

-   Write down of obsolete stock and additional costs to supplement the

    shortage of raw materials due to its mineral reserves having been

    depleted to a large extent, amounting to R11.5 million;

-   Impairment of the loan receivable from the Infrasors BEE Empowerment

    Trust to a net realisable value amounting to R46.5 million;

-   Additional depreciation on plant and equipment reaching the end of

    their useful life in mining operations, and obsolete plant and

    equipment amounting to R9.0 million;

-   Lyttelton Dolomite experiencing extraordinarily high repair and

    maintenance costs, amounting to R4.6 million;

-   Write down of deferred tax assets in dormant subsidiaries which are

    unlikely to generate profits in the short term, amounting to R5.8

    million.

 

The financial information on which this trading statement is based has

not been reviewed, audited and reported on by the Company’s auditors.

 

 

Shareholders are advised that the results for the year ended 28 February

2013 will be released mid-May 2013.

 

By Order of the Board of Directors

Johannesburg

25 April 2013

 

Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)

 

Date: 25/04/2013 01:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').

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