Wrap Text
Unaudited Interim Results for the Six Months Ended 31 August 2021
Mine Restoration Investments Limited
Incorporated in the Republic of South Africa
(Registration number 1987/004821/06)
Share Code: MRI
ISIN Code: ZAE000164562
("MRI", “the Company" or “the Group”)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2021
The board of directors of MRI (”the Board”) hereby presents the
interim financial results for the six months ended 31 August
2021(“Results”).
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6-months to 6-months to 12-months
August 2021 August 2020 to February
2021
R’000 R’000 R’000
Revenue - - -
Other income 266 386 956
Impairment reversal - - 3 705
Administration and other
(1 069) (1 201) (3 520)
operating expenses
Operating Profit/(Loss) (803) (815) 1 141
Finance costs (1 430) (1 540) (2 635)
Gain on disposal of
- - 429
subsidiaries
Loss before Taxation (2 233) (2 355) (1 065)
Taxation - - -
Loss for the Year (2 233) (2 355) (1 065)
Other Comprehensive Income:
Reversal of capital reserve - - 5 000
Total Comprehensive
(2 233) (2 355) 3 935
Income/(Loss) for the Year
Total Comprehensive Income
Attributable to:
Owners of the parent (2 233) (2 355) 3 935
Non-controlling interest - - -
Basic Earnings/(Loss) per
(0.25) (0.27) 0.45
Share
Diluted Earnings/(Loss) per
(0.25) (0.27) 0.45
Share
Headline Loss per Share (0.25) (0.27) (0.17)
Weighted average number of
863 053 863 053 863 053
shares in issue (‘000)
Diluted weighted average
number of shares in issue 863 053 863 053 863 053
(‘000)
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at 31 as at 31 as at 28
August August February
2021 2020 2021
R’000 R’000 R’000
Assets
Current Assets
Short-term loan - - 1 085
Trade and other receivables 362 538 316
Cash and cash equivalents 5 27 4
367 565 1 405
Total Assets 367 565 1 405
Equity and Liabilities
Equity
Amount attributable to equity
(24 599) 85 020 (22 366)
holders
Non-controlling interest - (108 247) -
(24 599) (23 227) (22 366)
Liabilities
Current Liabilities
Other financial liabilities 19 856 18 103 18 404
Trade and other payables 5 110 5 689 5 367
24 966 23 792 23 771
Total Equity and Liabilities 367 565 1 405
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Equity due Accumulated Amount Non- Total
capital reserve to change earnings attributabl controlling equity
in (loss) e to Equity interest
ownership Holders
R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at
85 020 5 000 (2 459) (108 831) (21 270) (31) (21 301)
29 February 2020
Total
comprehensive
- (5 000) - 3 935 (1 065) - (1 065)
earnings/(loss)
for the period
Disposal of
subsidiaries
recognised - - (2 459) (2 490) (31) 31 -
directly in
equity
Issue of shares - - - - - - -
Balance at
85 020 - - (107 386) (22 366) - (22 366)
28 February 2021
Total
comprehensive
- - - (2 233) (2 233) - (2 233)
earnings/(loss)
for the period
Disposal of
subsidiaries
recognised - - - - - - -
directly in
equity
Balance at
31 August 2021 85 020 - - (109 619) (24 599) - (24 599)
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6-months 6-months 12-months
to 31 to 31 to 28
August August February
2021 2020 2021
R’000 R’000 R’000
Cash flows from operating
activities (1 138) (4) (2 602)
Cash flows from investing
activities 1 139 - 3 233
Cash flows from financing
activities - 43 (615)
Total cash movement for the
period 1 39 16
Cash and cash equivalents at the
beginning of the period 4 (12) (12)
Cash and cash equivalents at end
of the period 5 (27) 4
COMMENTARY
1. BASIS OF PREPARATION
These condensed consolidated unaudited interim financial results have
been prepared by Thato Makgolane, the Financial Director of the
Company, in accordance with IAS 34 – Interim Financial Reporting, the
framework concepts and the recognition requirements of International
Financial Reporting Standards (“IFRS”), the South African Institute
of Chartered Accountants (“SAICA”) Financial Reporting Guides, as
issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by Financial Reporting Standards Council,
International Financial Reporting Interpretations Committee (“IFRIC”)
and the requirements of the South African Companies Act (Act 71 of
2008), as amended, and the Listings Requirements of the JSE Limited
(“JSE”).
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 2021.
These condensed consolidated interim financial statements have not
been reviewed by the Company’s external auditor.
Notwithstanding the insolvency of the Company and the fact that it
has limited activity, the directors are satisfied that the Group will
still be able to settle its obligations and realise its assets as
measured in terms of IFRS as applicable to going concern.
Shareholders are advised that the information contained in the
announcement is also available at:
https://senspdf.jse.co.za/documents/2021/jse/isse/mri/interim21.pdf
2. FINANCIAL RESULTS AND FUTURE PROSPECTS
MRI operated as a cash shell throughout the period. The Board focused
on reducing all corporate costs whilst continuing to pursue the
acquisition of Langpan Mining Co Proprietary Limited (“Langpan”).
The Board has satisfied themselves that the Group is in a position
to continue as a going concern and that it has access to sufficient
borrowing facilities to meet its foreseeable cash requirements.
The Board is confident that the acquisition of Langpan will
recapitalise the Company and allow for the Company’s successful
reinstatement on the Alternative Exchange of the JSE.
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
31 August 31 August 31 August
2021 2020 2021
Earnings/(loss) per share
(cents) (0.26) (0.27) 0.45
Diluted earnings/(loss) per
share (cents) (0.26) (0.27) 0.45
Headline loss per share
(cents) (0.26) (0.27) (0.17)
Diluted headline loss per
share (0.26) (0.27) (0.17)
Headline loss Calculation
Earnings/(Loss) for the
period (R’000) (2 233) (2 355) 3 935
Reversal of capital reserve - - (5 000)
Gain on disposal of
subsidiaries - - (429)
Deferred tax on impairments
of assets - - -
Headline loss (2 233) (2 355) (1 494)
Weighted average number of
863 053 863 053 863 053
shares in issue (‘000)
Actual number of shares in
863 053 863 053 863 053
issue (‘000)
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
Directorate change:
• On 15 October 2021 Alistair Collins tendered his resignation as
an independent non-executive director of the Company with effect
from 3 November 2021, post the Company’s Annual General Meeting.
The Board is in the process of identifying suitable replacements
to fill the vacancy and reconstitute subcommittees accordingly.
The Company continues to evaluate the Board and its subcommittees,
and following the AGM and the conclusion of the Langpan Transaction,
will be looking to include additional independent members to
strengthen the governance structures of the Company.
6. OTHER FINANCIAL LIABILITIES
In early 2017, an angel investor re-capitalised the Company through
a subordinated debt facility in order to settle claims, cover working
capital and transaction related costs for the Langpan Transaction,
providing support so as to maintain the Company’s solvency and to
ensure that the Company is able to continue operating as a going
concern. This support had been maintained throughout the period under
review.
The remaining increase in other financial liabilities relates to trade
payables in the ordinary course of business including interest
charges.
7. OTHER FINANCIAL ASSETS
With respect to supporting the Langpan Transaction, on 1 September
2018, R3,71 million was provided on an unsecured short term debt basis
to Langpan to cover transactional related expenses. As at 31 August
2021, the full loan amount has been repaid.
8. GOING CONCERN
The financial period under review reflects a challenging financial
period, with a net loss after tax of R2.2 million (2020: R2.4 million)
and the Group’s total liabilities exceeding its assets by R24.6
million (2020: R23.2 million). The Board is confident that the
acquisition of Langpan will adequately recapitalise the Company and
ensure the successful reinstatement of MRI’s listing on the JSE
Alternative Exchange. The Board remains confident that the Company
retains the continued support of its major shareholders to provide
additional funding should other sources not be forthcoming.
The Board has 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 2021 (2020: Nil).
10. CHANGES TO THE BOARD
Mr Vincent Madlela was appointed to the Board as the Lead Independent
Non-Executive Director of MRI with effect from 23 July 2021.
CORPORATE INFORMATION
Postal address: PO Box 866, Rivonia, 2128
Registered and Physical address: Lower Ground Floor Block F,
Pinmill, 164 Katherine Street, Sandton, Gauteng, 2196
Tel no:+27 (0) 11 036 3100
Fax no:+27 (0) 86 654 6818
Web: www.minerestoration.co.za
Board of Directors: V Madlela*, A Collins*, MJ Miller#
(Chairman), MM Movundlela (CEO), TA Makgolane (FD).
(#Non-Executive, *Independent Non-Executive)
Company Secretary: Neil Esterhuysen & Associates Inc
Transfer Secretaries: Computershare Investor Services
Proprietary Limited, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196, PO Box 61763, Marshalltown 2107
Auditor: Ngubane & Co (JHB) Inc.
Johannesburg
18 October 2021
Designated Adviser
Merchantec Capital
Date: 18-10-2021 12:00:00
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