Wrap Text
Reviewed interim results for the six months ended 31 August 2021
Mantengu Mining Limited
(formerly Mine Restoration Investments Limited)
Incorporated in the Republic of South Africa
(Registration number 1987/004821/06)
Share Code: MTU
ISIN Code: ZAE000302360
("MTU" or “the Company")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2021
The board of directors of MTU (”the Board”) hereby present the
reviewed interim financial results for the six months ended 31 August
2021(“Results”). Shareholders are advised that for purposes of the
Circular relating to the proposed transaction of Langpan Mining Co
Proprietary Limited as announced on SENS on 22 April 2022, the interim
financial results of MTU for the six months ended 31 August 2021 have
been reviewed. These reviewed results differ from the unaudited
interim results for the six months ended 31 August 2021 as published
on SENS on 18 October 2021.
SUMMARISED STATEMENT OF COMPREHENSIVE INCOME
Reviewed 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
operating expenses (1 788) (1 201) (3 520)
Operating (Loss)/Profit (1 522) (815) 1 141
Finance costs (1 430) (1 540) (2 635)
Gain on disposal of
subsidiaries - - 429
Loss before Taxation (2 952) (2 355) (1 065)
Taxation - - -
Loss for the period (2 952) (2 355) (1 065)
Other Comprehensive Income:
Reversal of capital reserve - - 5 000
Total Comprehensive (Loss)/
Income for the period (2 952) (2 355) 3 935
Total Comprehensive (Loss)/
Income Attributable to:
Owners of the parent (2 952) (2 355) 3 935
Non-controlling interest - - -
Basic (Loss)/Earnings per
Share (0.34) (0.27) 0.45
Diluted (Loss)/Earnings per
Share (0.34) (0.27) 0.45
Headline Loss per Share (0.34) (0.27) (0.17)
Weighted average number of
Shares in issue (‘000) 863 053 863 053 863 053
Diluted weighted average
number of Shares in issue 863 053 863 053 863 053
(‘000)
SUMMARISED STATEMENT OF FINANCIAL POSITION
Reviewed 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
holders (25 318) (23 625) (22 366)
Non-controlling interest - (31) -
(25 318) (23 656) (22 366)
Liabilities
Current Liabilities
Other financial liabilities 19 856 18 532 18 404
Trade and other payables 5 829 5 689 5 367
25 685 24 221 23 771
Total Equity and Liabilities 367 565 1 405
SUMMARISED 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
29 February 2020 85 020 5 000 (2 459) (108 831) (21 270) (31) (21 301)
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
- - - - - - -
Balance at 85 020 - - (107 386) (22 366) - (22 366)
28 February 2021
Total
comprehensive
earnings/(loss) - - - (2 952) (2 952) - (2 952)
for the period
Balance at
31 August 2021 85 020 - - (110 338) (25 318) - (25 318)
SUMMARISED STATEMENT OF CASH FLOWS
Reviewed 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 reviewed interim financial results have been prepared
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 the 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 interim results 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 results have been prepared by the Financial
Director, Mr TA Makgolane.
Notwithstanding the insolvency of the Company and the fact that it
has limited activity, the directors are satisfied that the Company
will still be able to settle its obligations and realise its assets
as measured in terms of IFRS as applicable to a going concern.
Shareholders are advised that the information contained in the
announcement is also available at:
https://senspdf.jse.co.za/documents/2022/jse/isse/mtue/interim21.pdf
2. FINANCIAL RESULTS AND FUTURE PROSPECTS
The Company previously published unaudited interim results for the
six months ended 31 August 2021 on 18 October 2021. These interim
results have since been reviewed by the Company’s Auditor, Ngubane &
Co (JHB) Inc as part of the Circular requirements relating to the
Langpan acquisition. The reviewed interim financial results for the
six months ended 31 August 2021 contain an increase of R0.7 million
in admin and other operating expenses due to increased accruals.
There were no other changes to the interim results published on
18 October 2021.
The Company 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 itself that the Company 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:
Reviewed Unaudited Audited
6-months to 6-months to 12-months to
31 August 31 August 31 August
2021 2020 2021
(Loss)/Earnings per share
(cents) (0.34) (0.27) 0.45
Diluted (loss)/earnings
per share (cents) (0.34) (0.27) 0.45
Headline loss per share
(cents) (0.34) (0.27) (0.17)
Diluted headline loss per
share (0.34) (0.27) (0.17)
Headline loss Calculation
(Loss)/Earnings for the
period (R’000) (2 952) (2 355) 3 935
Reversal of capital
reserve - - (5 000)
Gain on disposal of - - (429)
subsidiaries
Headline loss (2 952) (2 355) (1 494)
Weighted average number of
863 053 863 053 863 053
shares in issue (‘000)
Actual number of shares in
issue (‘000) 863 053 863 053 863 053
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 R2.9 million (28 February 2021:
R1.0 million) and the Company’s total liabilities exceeding its
assets by R25.3 million (28 February 2021: R22.4 million). The Board
is confident that the acquisition of Langpan will adequately
recapitalise the Company and ensure the successful reinstatement of
the Company’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 reviewed interim results 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 (28 February 2021: Nil).
10. CHANGES TO THE BOARD
Mr Vincent Madlela was appointed to the Board as the Lead Independent
Non-Executive Director of the Company with effect from 23 July 2021.
No forward looking statements in the announcement have been reviewed or
reported on by the Company’s auditor.
The condensed interim financial statements for the six months ended 31
August 2021 have been reviewed by the Company’s auditor, Ngubane & Co
(JHB) Inc., who expressed an unmodified opinion thereon.
A copy of the review opinion on the condensed interim financial
statements is available for inspection at the Company’s registered
office, together with the interim financial statements identified in
the report.
Ngubane & Co (JHB) Inc’s unmodified review opinion does not necessarily
report on all of the information contained in this reviewed condensed
results announcement. Shareholders are therefore advised that in order
to obtain a full understanding of the nature of Ngubane & Co (JHB) Inc’s
engagement, they should obtain a copy of Ngubane & Co (JHB) Inc’s
unmodified review opinion together with the accompanying financial
information from the Financial Director at the Company's registered
office, which is also available on Mantengu’s website at:
www.mantengu.com.
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
20 May 2022
Designated Adviser
Merchantec Capital
Date: 20-05-2022 04:24:00
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