1st Quarter Results
May 01 2007 - 5:56AM
UK Regulatory
RNS Number:8489V
GVM Metals Ltd
01 May 2007
GVM METALS LIMITED
QUARTERLY REPORT
GVM Metals Limited ("GVM" or "the Company") is pleased to announce its
operational report for the 1st quarter ended 31 March 2007. A full copy of this
report, as released today on the ASX, is available at the Company's website,
www.gvm.com.au.
Highlights
* Unaudited Group profit before interest and tax for the quarter of A$1.8
million.
* Cash balance at the end of the quarter was A$10.1 million.
* Nimag (Pty) Ltd's nickel magnesium alloy business again operated well
ahead of budget with earnings before interest and tax (EBIT) for the quarter
of A$2.1 million. The smaller FeSiMag business returned a small profit for
the nine month period after recording a loss for the first half of the year.
* Negotiations to acquire a 70% interest in Coal of Africa Limited (CoAL)
were successfully completed. CoAL owns the Mooiplaats coal project which is
situated two kilometres from the re-commissioned Camden Power Station and is
adjacent to the rail line to the Richards Bay export coal terminal.
* Allotment of 12,200,000 GVM shares to Global Coal Management plc (formerly
Asia Energy plc) and an invitation to Steve Bywater and Graham Taggart
(Global Coal Management's CEO and CFO) to join the Board of GVM.
* Placement of 8,333,333 GVM shares with professional London based
investors, raising GBP2.5 million (A$6.2 million). The funds are to be
applied to the acquisition of 50% of the Baobab JV.
Discussion of Results
Nimag Group of Companies (100%)
The Nimag Group's unaudited profit before interest and tax for the first nine
months of the 2007 financial year was ZAR32 million (A$5.5 million). The nickel
magnesium business continued to outperform its budget and the smaller FeSiMag
business returned to profitability for the nine month period. The Fibres
business reported a profit of AU$41k for the quarter and Management continue to
identify means to improve the Fibres business.
Operational cash flow generated during the quarter combined with favourable
management of working capital resulted in an A$1.2 million improvement in the
cash position at the end of March. During the third quarter, cash of A$382k was
used to repay term loans.
Current exchange rate levels combined with high nickel prices suggest a positive
outlook for the remainder of the financial year.
Coal Activities
Holfontein Coal Project
(49% now - 100% on completion of Motjoli transaction)
The initial Holfontein drilling schedule was completed during the third quarter.
Analysis of the drilling results has identified metallurgical and thermal coal
deposits typical to the region. Additional in-fill drilling to bring the coal
resource to a 'Measured' resource category according to the JORC/ SAMREC code
has commenced. Management envisages that the in-fill drilling programme will be
completed in the current quarter. A mining feasibility study will be completed
during the September quarter.
Baobab Coal Project
(100% on completion of acquisitions)
The acquisition of Petmin's 50% interest in the Baobab Coal Project through the
issue of 8,333,333 GVM shares to raise the required purchase price of GBP 2.5
million (A$6.2 million) will be put to shareholders at the May 2007 General
Meeting. The proposed acquisition will allow GVM to purchase 100% of Baobab
Mining & Exploration (Pty) Ltd, a Petmin subsidiary company. The purchase is
subject to GVM shareholder approval, ASX (if required) and South African Reserve
Bank approval. Approval in terms of Section 11 of the Mineral and Petroleum
Resources Development Act of South Africa was obtained in March 2007.
During the quarter, a Data Terrain Model of the Baobab Coal Project was
commissioned and completed. The model will provide guidance for the proposed
drilling project due to commence once shareholder approval of the project is
obtained.
Limpopo Coal Project
(74%)
Additional exploration of the Limpopo Coal area was commissioned during the
third quarter of the financial year in the form of a Data Terrain Model. The
data collected will be used to generate a geological model of the project and to
identify potential drilling targets.
Preliminary discussions with various infra-structure participants are underway
to ascertain the capacity for the export of coal mined in the Limpopo Coal
Project. Management have initiated consultations with the current surface
rights' owners and will continue these discussions in the next quarter.
Mooiplaats Coal Project
(70% on completion of the Kelso transaction)
The Sale of Shares Agreement to purchase 70% of CoAL, which holds the Mooiplaats
project, was signed in March 2007. In-fill drilling activities on the property
continue and a feasibility study will commence during the June quarter.
Kalbara Tenement
(GVM 21.31%)
No exploration work was conducted on the Kalbara tenement during the quarter.
Kanowna West Tenements
(GVM 23.68%)
No exploration work was conducted on the Kanowna West tenements during the
quarter.
For more information contact:
Simon Farrell, Managing Director - GVM - +61 417 985 383 or +61 8 9322 6776
Leesa Peters / Jos Simson - Conduit PR - +44(0) 20 7429 6606
Olly Cairns / Romil patel - Blue Oar Securities Plc* - +44(0) 20 7448 4400
* Blue Oar Securities was formerly Corporate Synergy Plc and acts as Nominated
Advisor and Joint Broker for the Company.
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
GVM Metals Limited
ABN Quarter ended ("current quarter")
98 008 905 388 31 March 2007
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A'000 (9 months)
$A'000
1.1 Receipts from product sales and related debtors 11,580 34,020
1.2 Payments for (a) exploration and (105) (310)
evaluation
(b) development
(c) production (9,527) (30,414)
(d) administration (1,111) (4,203)
1.3 Dividends received
1.4 Interest and other items of a similar nature 97 254
received
1.5 Interest and other costs of finance paid (78) (406)
1.6 Income taxes paid (598) (896)
1.7 Other
Net Operating Cash Flows 258 (1,955)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments (625) (625)
(c) other fixed assets (37) (126)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets 0 29
1.10 Loans to other entities
1.11 Loans repaid by other entities 74 423
1.12 Other (provide details if material)
Net investing cash flows (588) (299)
1.13 Total operating and investing cash flows
(carried forward) (330) (2,254)
1.13 Total operating and investing cash flows
(brought forward) (330) (2,254)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 0 14,180
(net) -see note below
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings (304) (1,645)
1.18 Dividends paid 0 (260)
1.19 Other (Exchange rate related movements in
foreign borrowings and reserves)
Net financing cash flows (304) 12,275
Net increase (decrease) in cash held (634) 10,021
1.20 Cash at beginning of quarter/year to date 10,705 50
1.21 Exchange rate adjustments to item 1.20 3 3
1.22 Cash at end of quarter 10,074 10,074
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 107
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which
the reporting entity has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities 3,662 613
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation (500)
4.2 Development -
Total (500)
Reconciliation of cash
Reconciliation of cash at the end of the quarter Current quarter Previous quarter
(as shown in the consolidated statement of cash
flows) to the related items in the accounts is as $A'000 $A'000
follows.
5.1 Cash on hand and at bank 10,687 10,705
5.2 Deposits at call - -
5.3 Bank overdraft (613) -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 10,074 10,705
Changes in interests in mining tenements
Tenement reference Nature of Interest at Interest at
interest beginning of end of
quarter quarter
(note (2))
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
Tenement reference Nature of Interest at Interest at
interest beginning of end of
quarter quarter
(note (2))
6.2 Interests in mining
tenements acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total number Number quoted Issue price per Amount paid up per
security (see note security (see note 3)
3) (cents) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital,
buy-backs,
redemptions
7.3 +Ordinary 93,559,228 93,559,228
securities
7.4 Changes during
quarter
(a) Increases
through issues 12,200,000 12,200,000
(b) Decreases
through returns
of capital,
buy-backs
7.5 +Convertible debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description and
conversion 9,000,000 - See Note 6 See Note 6
factor)
7.8 Issued during Nil Nil Exercise price Expiry date
quarter
See Note 6 See Note 6
7.9 Exercised during Nil Nil
quarter
7.10 Expired during Nil Nil
quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters
disclosed.
Sign here: ...............................................
Date: 26 April 2007
(Director)
Print name: Simon Farrell
Notes
1 The quarterly report provides a basis for informing the market how
the entity's activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in
respect of interests in mining tenements acquired, exercised or lapsed during
the reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage interest in
a mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up
is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards used
do not address a topic, the Australian standard on that topic (if any) must be
complied with.
6 Issued and Quoted Securities as at 31 March 2007:
Number Issued Number Quoted Exercise Price Expiry Date Lapsed Since End of
quarter
9,000,000 - 50.0 30 September 2011 -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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