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Unaudited interim results for the 6 months ended 31 August 2018
Mine Restoration Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share Code: MRI
ISIN Code: ZAE000164562
("MRI" or the “Company")
UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2018
The Board of Directors (the ”Board”) of MRI are pleased to announce
the interim results for the 6 months ended 31 August 2018.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited 12-
6-months to 6-months to months to
August 2018 August 2017 February 2018
R’000 R’000 R’000
Revenue - - -
Cost of Sales - - -
Other income - - -
Operating expenses (1 291) (1 151) (2 840)
Impairments - -
Operating loss (1 291) (1 152) (2 840)
Investment revenue - - -
Finance cost (692) (291) (843)
Loss before taxation (1 983) (1 442) (3 683)
Taxation - - -
Loss for the period (1 983) (1 442) (3 683)
Other comprehensive income - - -
Total comprehensive loss (1 983) (1 442) (3 683)
(Loss) attributable to:
Owners of the parent (1 983) (1 442) (3 681)
Non-controlling interests - - (2)
Total comprehensive loss
attributable to:
Equity holders (1 983) (1 442) (3 681)
Non-controlling interests - - (2)
Basic loss per share (0.23) (0.17) (0.43)
Diluted loss per share (0.23) (0.17) (0.43)
Weighted average number of
shares in issue (‘000) 863 053 863 053 863 053
Diluted weighted average
number of shares in issue
(‘000) 863 053 863 053 863 053
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited 28
31 August 31 August February
2018 2017 2018
R’000 R’000 R’000
Assets
Current Assets
Trade and other receivables 58 68 41
Cash and cash equivalents 40 107 51
98 175 92
Total Assets 98 175 92
Equity and Liabilities
Equity
Amount attributable to equity (9 864) (5 642) (7 880)
holders
Non-Controlling Interest (66) (64) (66)
(9 930) (5 706) (7 946)
Liabilities
Current Liabilities
Other financial liabilities 8 929 4 792 6 994
Trade and other payables 1 099 1 089 1 044
10 028 5 881 8 038
Total Equity and Liabilities 98 175 92
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Reverse Capital Reserve for Equity due Retained Amount Non- Total
capital Acquisition Reserve capital to change earnings attributable Controlling equity
Reserves based in to Equity Interest
payments ownership Holders
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at 28
February 2016
(restated) 85 020 - 5 000 559 (2 459) (91 282) (3 162) (105) (3 267)
Total
comprehensive -
loss for the
period - - - - (1 037) (1 037) 41 (996)
Share-based -
payment charges
reversed - - - (559) (559) - - -
Share-based
payment charges
reversed
Balance at 28
February 2017 85 020 - 5 000 - (2 459) (91 760) (4 199) (64) (4 263)
Total
comprehensive
loss for the
period - - - - (3 681) (3 681) (2) (3 683)
Balance at 28
February 201 85 020 - 5 000 - (2 459) (95 441) (7 880) (66) (7 946)
Total
comprehensive
loss for the
period - - - - (1 983) (1 983) - (1 983)
Release on Non-
Controlling
Interest on share
purchase - - - - - - - -
Issue of shares - - - - - - - -
Balance at 31
August 2018 85 020 - 5 000 - (2 459) (97 424) (9 863) (66) (9 929)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6-months 6-months 12-months
to August to August to
2018 2017 February
2018
R’000 R’000 R’000
Cash flows from operating
activities (1 944) (1 390) (3 649)
Cash flows from investing
activities - - -
Cash flows from financing
activities 1 933 1 468 3 671
Total cash movement for the
period (11) 78 22
Cash and cash equivalents at the
beginning of the period 51 29 29
Cash and cash equivalents at end
of the period 40 107 51
COMMENTARY
1. BASIS OF PREPARATION
These condensed consolidated interim financial statements have been
prepared by Ulrich Bester, the Financial Director in accordance with
IAS 34: Interim Financial Reporting, the framework concepts and the
recognition requirements of International Financial Reporting
Standards (“IFRS”), the SAICA Financial Reporting Guides as issued
by the Accounting Standards Committee and Financial Reporting
Pronouncements issued by the Financial Reporting Standards Council
and the requirements of the South African Companies Act, (Act 71 of
2008), as amended, and the Listings Requirements of the JSE Limited.
The financial statements have been prepared using accounting policies
that comply with IFRS and which are consistent with those applied in
the preparation of the audited financial statements for the year ended
28 February 2018.
These condensed consolidated interim financial statements have not
been reviewed by the Company’s external auditor.
2. FINANCIAL RESULTS AND FUTURE PROSPECTS
After closing down the coal operation, the Company focused on
eliminating all corporate costs and maintaining the Company as a
cash shell. The Board is continuing its discussions regarding the
proposed re-capitalisation of the Company, the terms of which will
be announced as soon as these have been agreed. Creditors
subordinated their claims and provided support in order to maintain
the Company's solvency and liquidity and going concern.
3. HEADLINE LOSS PER SHARE (“HLPS”)
Reconciliation of losses to headline losses attributable to equity
holders of the parent:
Unaudited Unaudited Audited
6-months to 6-months to 12-months to
August 2018 August 2017 February
2018
Loss per share (cents) (0.23) (0.17) (0.43)
diluted loss per share
(cents) (0.23) (0.17) (0.43)
Headline loss per share
(cents) (0.23) (0.17) (0.43)
Diluted headline loss per
share (0.23) (0.17) (0.43)
HLPS Calculation
(Loss)/profit for the period (1 983) (1 442) (3 681)
Impairment of intangible -
assets and goodwill - -
Impairment of property, plant
and equipment - - -
Deferred tax on impairments
of assets - - -
Headline loss (1 983) (1 442) (3 681)
Weighted average number of
shares in issue (‘000) 863 053 863 053 863 053
Actual number of shares in
issue (‘000) 863 053 863 053 863 053
There are no dilutionary instruments in issue.
4. CHANGES IN SHARE CAPITAL
Since the last reporting period there have been no changes in issued
share capital.
5. EVENTS AFTER THE END OF THE REPORTING PERIOD
Investors have subordinated their claims and provided support in order
to maintain the company’s solvency and ability to continue operating
as a going concern.
6. OTHER FINANCIAL LIABILITIES
In early 2017, an angel investor re-capitalised the Company, through
a subordinated debt facility with a balance of R4,61m at 31 August
2018, in order to settle claims and provide support so as to maintain
the Company’s solvency and to ensure that the Company is able to
continue operating as a going concern.
The Board is pursuing a transaction in the chrome industry, which
transaction will involve the parties engaged in the recapitalisation
of the Company, and the angel investor has committed to funding MRI
until transaction close. The subordinated debt facility is expected
to be repaid from the proceeds of a proposed rights offer to be
undertaken by MRI. The remaining increase in other financial
liabilities relates to trade payables in the ordinary course of
business.
7. CHANGES TO THE BOARD
During the reporting period, the following changes to the Board took
place:
o Norman Robert Preston resigned as Financial Director on 28
August 2018.
o Ulrich Bester was appointed Financial Director on 29 August
2018.
8. GOING CONCERN
The financial period under review reflects a challenging financial
period, with a net loss after tax of R1.98 million. The directors
are of the opinion that the Company will require additional funding
within the next 12 months in order to meet its commitments as they
fall due, with no revenue generating operations. These conditions
indicate the existence of a material uncertainty which may cast
doubt about the Company’s ability to continue as a going concern.
The Board, however, remains confident that the Company retains the
continued support of its major shareholders to provide additional
funding should other sources not be forthcoming.
The directors have a reasonable expectation, having regard to the
current status and the future strategy of the Company, that the
Company will have sufficient resources to continue as a going
concern and have therefore concluded that it is appropriate to
prepare the financial statements on a going concern basis.
Accordingly, the financial statements do not include the
adjustments that would result if the Company was unable to continue
as a going concern.
9. DIVIDENDS
No dividend was declared for the interim financial period ended
31 August 2018 (2018: Nil).
14 December 2018
Johannesburg
R Tait MJ Miller
Non-executive Chairman Chief Executive Officer
CORPORATE INFORMATION
Postal address: PO Box 1823, Bedfordview, 2008
Registered and Physical address: 1St Floor St James Office Park,
76 Concorde Road East, Bedfordview, Gauteng, 2008
Tel no:+27 (0) 11 036 3100
Fax no:+27 (0) 86 654 6818
Web: www.minerestoration.co.za
Board of Directors: Q George*, C Roed*, R Tait# (Chairman), S
Caddy*, M Miller (CEO), U Bester (FD), A Collins*.
(#Non-Executive, * Independent Non-Executive)
Company Secretary: Neil Esterhuysen & Associates Inc
Transfer Secretaries: Computershare Investor Services (Pty)
Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, PO
Box 61051, Marshalltown 2107
Auditor: Grant Thornton Johannesburg Partnership
Designated Adviser: Questco Corporate Advisory Proprietary Limited
Date: 18/12/2018 09:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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