RNS Number:5538K
Dimension Resources Ld
25 September 2001
DIMENSION RESOURCES LIMITED
CHAIRMAN'S STATEMENT
6 MONTHS ENDED 30 JUNE 2001
The slow improvement in the Company's prospects to which I referred in my last
statement has continued since then. Although the Group has yet to reach
profitability, quarrying operations have been profitable towards the end of
the six months under review.
The Directors continue to believe that its "Cape Rainbow" granite deposit,
which is unique in colour, has great potential. Mining permission was received
earlier this year, allowing the Group to plan the opening of the quarry. The
Group is discussing concluding an exclusive agreement with a leading Italian
stone company, under which that company will purchase the whole production
from this quarry, expected to be between 200 and 300 cu.m. per month of raw
blocks. Previous experience indicates that profitable production will not be
achieved, however, for approximately six months after start up.
A contract was also signed earlier this year with Antolini Luigi & Cie SpA
for the supply of Bowenite in block form from the quarry near Steinkopf. It
was decided that this quarry had been badly opened up under previous
ownership, and a substantial amount of unusable material has had to be removed
prior to commercial production, on the advice of the Italian quarry master
specifically employed for this project. This process is now complete, and
commercial supply of Bowenite is expected to commence in the near future.
Earlier this year the Group negotiated a distributorship agreement with C J
Petrow (Pty) Limited, a leading South African industrial minerals company,
giving C J Petrow the exclusive right to distribute "Cape Red" and "Cape
Autumn" granites from the Zwartmodder quarries near Pofadder, in the Northern
Cape Province of South Africa. "Cape Autumn" is a newly opened deposit, so
called due to its similarity to autumn leaves on a dark background, and the
majority of the stone supplied to C J Petrow has been this granite, which is
expected to be featured at the influential stone show at Verona later this
month. Although samples have been supplied to consumers around the world,
orders have built up more slowly than hoped, and C J Petrow has asked the
Group to agree a reduction from contracted levels of sales over the next few
months.
The Group's travertine quarry near Douglas in Northern Cape Province was
opened in the period under review. However, although the trial blocks produced
were satisfactory both in terms of stone quality and colour, cash flow
considerations made the Directors decide to concentrate the available
resources on the Bowenite quarry, leaving the travertine material for
subsequent exploitation.
The processing plant at Vredendal has continued to operate at a very low level
of activity. While the are continuing to seek ways of matching tile production
with block sales by third parties, the long term answer is to obtain a marble
deposit in the area of the plant. Agreement has been reached in principle to
acquire a black marble deposit north of Vredendal, but it is likely to be a
considerable time before all agreements to operate this deposit are likely to
be in place. In the meantime the Group is negotiating a contract to supply
Desert Rose marble strips and tiles to Antolini, based on that company
purchasing blocks direct from the quarry, which is not under the Group's
control.
The Directors intend in due course to re-domicile the Company into the United
Kingdom, as it is felt that the inability to trade the Ordinary Shares through
CREST, due to the Bermudan domicile, severely restricts liquidity. However,
the cost of doing this at present is not considered to be justified.
Although the prospects for the Group are considered to be better than at any
previous time in its history, the delayed orders described above have the
effect of straining an otherwise satisfactory cash flow situation. The Company
is discussing a small share placing with its brokers, Hoodless Brennan &
Partners PLC. The costs of publishing a full prospectus mean that an offer to
shareholders generally is impossible, but the company could issue shares
direct to any holder who writes to me at the London office address. I intend
to subscribe in any such placing. The Directors are also discussing an
acquisition which would bring cash generative quarries into the Group, as well
as strengthening the management team. Shareholders will be kept informed.
Brian Moritz
(Chairman)
24 September 2001
Grant Thornton House
Melton Street
London NW1 2EP
DIMENSION RESOURCES LIMITED
and its subsidiaries
Summarised Balance Sheet
30 June 2001 30 June 2000 31 December 2000
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Non-current assets 16,212,282 16,207,982 16,148,747
Tangible assets 1,723,521 1,812,017 1,743,773
Stone deposits 14,389,988 14,334,101 14,306,101
Pre-production costs 98,873 61,864 98,873
Current assets 370,742 1,070,488 637,321
Stocks 199,692 209,052 245,493
Debtors 51,063 137,045 55,596
Cash at bank and on hand 119,987 724,390 336,232
Current liabilities
Creditors - amounts (63,230) (108,367) (62,534)
falling due within 1 year
Net current assets 307,512 962,120 574,787
16,519,894 17,170,102 16,723,534
Capital and reserves
Called up share capital 6,478,000 6,665,890 6,478,000
Share premium 11,577,856 11,394,223 11,577,857
Profit and loss (1,695,085) (901,082) (1,513,018)
Shareholders' funds 16,360,771 17,159,031 16,542,839
Discount on acquisition of - 402 -
subsidiary
Foreign currency 69,283 10,669 80,371
translation reserve
Creditors - amounts 89,840 0 100,324
falling due after
more than 1 year
16,519,894 17,170,102 16,723,534
NOTES TO THE FINANCIAL INFORMATION
1. The interim results are unaudited and do not comprise full accounts
within the meaning of Section 240 of the Companies Act 1985.
2. No interim dividend is being proposed or paid.
3. Earnings per share have been calculated on 81,242,498 ordinary shares
in issue.
DIMENSION RESOURCES LIMITED
and its subsidiaries
Profit and Loss Account
30 June 2001
30 June 2001 30 June 2000 31 December 2000
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Turnover 139,267 102,419 98,391
Cost of sales 134,289 114,769 64,364
Gross (loss) / Profit 4,978 (12,350) 34,027
Administrative expenses (165,437) (134,198) (871,200)
Operating loss (160,459) (146,548) (837,173)
Interest received 4,548 6,314 28,099
Interest payable (184) (1,451) (4,216)
Net loss for the period (156,095) (141,685) (813,290)
Loss per share (0.19p) (0.23p) (1.00p)
Weighted average number of 81,242,498 62,670,830 81,242,498
shares in issue
Total number of shares in 81,242,498 62,670,830 81,242,498
issue
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