Aflease - 1000 % Investment - 500 Beiträge pro Seite

[nanooo]

Hi Leute

Was haltet Ihr von AFRIKANDER LEASE LTD.
Sieht sehr interessant aus.
Ist ein Optionsschein auf steigende Uran und Goldpreise.

Chart scheint einen Boden gefunden zu haben.


Viel Glueck , Nanooo

[hpoth]

#1
Der Rand muß auch hier mit spielen, halte diese Aktie auch schon länger bin leider im Minus.
mfg
hpoth

[nanooo]

Weiss jemand, wo ich gute Chart fuer Uran finde ?

Nanooo

[hpoth]

Ferdinand Lips ( Buch-Autor Die Goldverschwörung)bleibt AFL treu´, bis die Firma den Durchbruch geschafft hat.AFl ist um ein Haar der Pleite entgangen und wurde durch Kebbles gerettet.Randgold&Exploration, hat sich an AFL beteiligt und wird den Anteil voraussichtlich auf 40% hochfahren. Neben Goldvorkommen beitzt AFL die größten Uran-Lagerstätten Südafrikas- und Uran befindet sich wie Öl und Erdgas in einer Hausse.Bis der Abbau beginnen kann ,werden allerdings noch einige Jahre vergehen.Über Rangy ( Symbol) kann man sich auch an AFL beteiligen.
Mfg
hpoth

[nanooo]

Hoffe , dass Aflease nun das groebste hinter sich hat.

Der Wert scheint recht unbekannt zu sein. Hat jemand noch
irgendwelche Analysen ueber den Uranmarkt ? Oder ueber Aflease, und andere Uranmienen ?

[nanooo]

Posted: 2004/03/31 Mi 18:15 | © Mineweb 1997-2004


JOHANNESBURG (Mineweb.com) -- Randgold & Exploration (RG&E), the South African-listed explorer and investment group controlled by Johannesburg’s Kebble family, has sold about one-sixth of its shares in London-listed Randgold Resources, to fund investment in The Afrikander Lease.
Roger Kebble, the chairman of RG&E, told Mineweb the company’s share in Randgold Resources had dropped (from 43%) to its current level of 36%. The proceeds from the sale of shares was used to settle debt of about R72 -m, to boost the company’s balance sheet and to buy Aflease stock.

While the fortunes of Aflease and RG&E are fast converging - RG&E plans to splurge R82,5-m on Aflease shares, loan the company R15-m and underwrite its upcoming rights issue - it is becoming increasingly disentangled from Randgold Resources. Not only has its shareholding in Randgold Resources decreased, but RG&E has also moved out of Randgold Resources’ south Johannesburg headquarters. The shift will relieve Randgold Resources of some reputational baggage that the Kebble-connection inevitably bring to the company, a point that will not be lost on its chief executive, Mark Bristow.

Despite the smaller stake, however, RG&E will maintain more than a passing interest in its London-listed offspring, given its R2,05-bn stake in the company is by far its single biggest asset.

But Kebble’s focus is clearly on RG&E. He says the liquidation of the Randgold holding was done to give RG&E the cash to spend on “undervalued shares” and to give its balance sheet the wherewithal to aid its transformation into an operating company.

“We want this to be a real mining company and not necessarily just in gold,” says Kebble. Most of the cash from the sales, about R93,5-m, has gone to repaying R72-m of debt. The company had R11-m in cash at the end of last year.

On the bargain-hunting front, RG&E’s foray into fund management has hardly been a resounding success. Its first tranche of Aflease shares were bought at an average price of R3,25 each, while the share is now trading at R2,50. Kebble says that, notwithstanding the plunge in the share price, RG&E’s plan to build its Aflease stake still further is still on track.

“There is still unrecognised value in the uranium….We are also reaching similar stage here to the early nineties, where lots of the assets owned by the majors will come available, and Aflease could be the organisation that takes up the role as the industry’s bottom-feeder,” says Kebble.

Nevertheless, Kebble says the sale of Randgold Resources shares will halt for now, given that the share price has dipped recently. Randgold Resources opened the year at $21,77 a share and opened trade in the US today at $18,96, a level Kebble is clearly not comfortable selling at.

There is also the matter of South African Reserve Bank restrictions on RG&E’s shareholding in the London-listed company, which must remain above 34%.

Kebble confirms that the SARB restrictions are still in place. He says the rules state that if RG&E’s stake in Randgold Resources dips below 3%, it could be forced to sell the whole lot and repatriate the proceeds to South Africa.

“But I am not even sure they can do that,” says Kebble, a pugilistic executive rarely shy of a dust-up with regulators.

For the meantime, though, there appears to be little risk of a dip below the key level – at least not while Randgold remains cheap. A look at the group’s portfolio shows that at the end of last year shows it still has near-cash in the form of shares, worth: R68-m in Anglo Platinum; R10,3-m in Durban Roodepoort Deep; R34-m in Harmony Gold; and R43-m in JCI and R167-m in Western Areas, two mining groups the Kebble family controls.

An interesting aspect of the portfolio management is RG&E’s decision to increase its DRD stake during the year. DRD and Kebble have been involved in an ugly series of court battles over the past two years, involving claims and counter-claims of various improprieties. The feud even resulted in Kebble spending a night in prison, a fact that has clearly not clouded the RG&E chairman’s eye for what he considers a bargain. His DRD bet, however, is premised on a rising gold price.

“At first we got rid of all of them, then we built up our stake because at around R17 we thought they were at a low level and we all know what DRD does when there is a kick in the gold price,” says Kebble.

[nanooo]

>Kebble extends Aflease influence

By: Mineweb


Posted: 2004/02/12 Do 20:19 | © Mineweb 1997-2004


CAPE TOWN (Mineweb.com) -- Randgold & Exploration has moved to shore up the balance sheet of embattled gold junior, Afrikander Lease (Aflease), in a development that extends the influence of mining enterpreneur, Brett Kebble, over the affairs of his former colleague, Neal Froneman, the chief executive of Aflease. The two men have gone to war over Aflease before. Now, however, Randgold & Exploration stands to lift its interest in Aflease to more than 40% in return for keeping Aflease solvent.
Kebble, who is the newly appointed CE of Randgold & Exploration, has agreed to purchase 24 million Aflease shares, equal to R82.5 million. Some of the share placement programme is in options that, if converted, will raise Randgold’s stake in Aflease to around 34%. In addition, there is provision for a second share placement to Randgold, adding a further R88.5 million to Aflease’s coffers.

The background for this development is Aflease’s decision last year to shut its Klerksdorp mine, a move that more than halved Aflease’s share price. This came as Aflease attempted to buy Kalgold, a small open cast mine in South Africa’s North-West province, from Harmony Gold, a transaction valued at R270m. The consideration for Kalgold was divided equally between shares and cash. Aflease placed shares with Harmony priced at about R5/share, and was attempting to issue more shares to settle the balance. The meltdown in Aflease’s share essentially put the mockers on a rights offer.

Kebble and Froneman have crossed swords in the past over Aflease after Kebble financed an empowerment deal in the company and made comments about its strategic future. The same question of executive independence is likely to result from this latest development.

Kebble said the initial R82.5 million capital injection was to provide finance for Aflease’s longer term projects such as Modder East, a gold prospect east of Johannesburg. He added, however, that the capital would also provide Aflease with flexibility to review its purchase of Kalgold. “What this does is that we can all sit down and decide whether it wants Kalgold and if it does, on what terms,” Kebble said

Froneman said the independence of the Aflease executive was inviolable, and that the purchase of Kalgold would “… definitely go ahead”. Much rides on the deal including the participation of African Vanguard Resources, an empowerment company that hopes to buy about 12% of Kalgold from Aflease. Kebble, however, was less convinced Kalgold is a dripping roast.

Meanwhile, Kebble said he had no covert plans for Aflease. Were Randgold’s stake to rise above 40%, which would technically trigger an offer to minority shareholders, he would sell down his shares to between 25% to 30%: “You don’t want to do anything that would impair the liquidity of the stock,” he said.

The survival of Aflease has been a topic of conversation for several months in Johannesburg’s mining circle. The focus has fallen on the volatile relationship between Kebble and Froneman, who were once colleagues at JCI. Since leaving JCI, Froneman has attempted to strike out on his own, even resisting earlier attempts by Kebble to involve himself in Aflease’s affairs. Today’s share placement agreement suggests that Froneman has finally bowed to Kebble after failing to drum up sufficient support from the market.

Froneman said it was “extremely necessary” to have a strong balance sheet before completing the purchase of Kalgold. Aflease has ditched plans for a rights offer but is likely to proceed with a share placement programme and arrange debt ahead of the February 28 deadline attached to the deal. “Our people are working on a deadline tighter than that to make sure this transaction gets done,” Froneman said.

The cash injection will provide Aflease with about 18 months of survival, Froneman said. Commenting on the significant dilution – there has been a flurry of share issues by Aflease lately -, Froneman said: “When this transaction was finalised, Aflease was trading at between R2 to R3/share. So it was done at a high premium,” he said. The Aflease shares were placed with Randgold & Exploration at R5/share

[nanooo]

Free Call Option on Uranium

By: Alf Field





Afrikander Lease (quoted as AFKDY.PK on Nasdaq and AFL in Johannesburg) owns large uranium deposits and is effectively a call option on uranium as well as being a small gold mining and exploration company. Depending on how one values this company’s gold assets, Aflease could be a free call option on uranium.



Why be interested in uranium in the first place? The doyen of investment letter writers, Jim Dines, has proclaimed that uranium is in a long-term bull market and has been recommending accumulation of uranium shares. The Dines Letter is available by subscription at $195 per annum either from the web site www.dinesletter.com or from James Dines & Co. Inc, Box 22, Belvedere CA 94920 USA. Telephone [phone].



Dines states that:

“It is not our place to decide whether nuclear power is good or bad, especially since oil reserves will be used up in this century and there is no replacement in sight yet. At the end of last year there were 441 nuclear reactors in operation worldwide, with another 34 under construction. Six new reactors began commercial production in 2002 throughout the world, (three in China, two in South Korea and one in Japan), with construction having begun on six reactors in India and four in South Korea. Six units that had been mothballed in Canada are expected to return to service, with more units coming from Finland,

Russia, Ukraine, Romania, Brazil, and Bulgaria. China and India have made clear that they intend to commit more resources to nuclear-generated electricity.”



The price of uranium has doubled from $7 to $15.50 per pound over the past year. There is obviously a shortfall in the supply of uranium. Dines talks of the “coming uranium melt-up” and makes the following points:



Current annual demand for uranium is running at 155m lbs per annum (excluding growing usage by China and the old Soviet Union) compared to current supply of 94m lbs.
There are no additional pockets of supply that can come out and shock the market.
The price of uranium needs to rise by another 50% to over $22.50 to spur exploration and development.
Even then it would take many years to discover new deposits and bring them on stream.
The massive blackout in Canada and the USA in August 2003 has shocked power utilities because when they don’t pay attention, the lights really go out. They have begun immediate investment in long neglected infrastructure.
What has been under the world’s radar is that nuclear plants are concerned about a shortage of uranium, because when they run out of uranium, the lights likewise run out.
People running nuclear facilities would be out of their minds if they were not concerned about nailing down future supplies of uranium.


I have not been able to check Jim Dines’ assertions but I have no reason to doubt them. Logic suggests that he is right on the button and that the prospect is for a long-term bull run in uranium.



What is obvious is that uranium supplies that are either available now, or that can come on stream in the next few years, will command premium valuations. The premier uranium stock is Cameco Corp (CCJ), which has risen from a low of US$20 in April 2003 to a recent price of US$60. At the current price of US$45, Cameco has a market capitalisation of about US$2.5billion.



Other smaller companies with connections to uranium have seen their share prices soar, (but are not yet recommended by The Dines Letter). The hunt is on for other uranium companies that may have been overlooked. This is where Aflease comes in.



Recently Aflease made the following corporate announcement:



The Afrikander Lease Limited - Company Announcement

© 2004 Sharenet

Release Date:
07/01/2004 17:30:01

Code(s):
AFL

The Afrikander Lease Limited - Company Announcement
The Afrikander Lease Limited
(Incorporated in the Republic of South Africa)
AFL (JSE) AFKDY (NASDAQ)
(Registration number 1921/006955/06)
("Aflease")
(ISIN Number : ZAE000000253
Share Code : AFL)
COMPANY ANNOUNCEMENT
Aflease owns significant uranium deposits in the Klerksdorp area in the form of
the Dominion Reefs and Rietkuil resources. These resources were previously mined
by the Anglo American Corporation of South Africa. The Dominion Mine produced 1
143 tons of Uranium Oxide at a grade of 0,94 kg/ton between 1955 and 1961. The
Rietkuil Mine produced 16,2 tons of Uranium Oxide at a grade of 0,44 kg/t during
1988. The mining of these deposits was terminated because of a decline in the
uranium price at the time.
Aflease shareholders are advised that in light of the recent improvement in the
uranium price Aflease has decided to perform certain preliminary work the
purpose of which will be to assess the merits of developing the company’s
uranium assets.
The preliminary work is expected to continue for some months. Aflease
shareholders will be advised of any material progress in this regard.
Johannesburg
7 January 2004
Sponsor
Nedbank Corporate
Date: 07/01/2004 05:30:02 PM Produced by the JSE SENS Department





A feasibility study on the Aflease uranium resources is being conducted by Dr Charles Kingsley (Geologist) and Dawie Viljoen (Metallurgist). The first feedback in the form of an updated Resource model, plant costs and clarification of the uranium market is expected within a couple of months.



What is interesting is that the Dominion Reefs and Rietkuil deposits are well-known, having been explored and partially mined in the past by Anglo American. Considerable information about these deposits is available from old Anglo American records.



The Dominion Reefs and Rietkuil Resource Statement as determined by Anglo American many years ago is set out below.



The resource is huge. Some 464m tons containing 372m lbs of uranium plus 8.5m oz of low grade gold as a by-product. It is nearly 55% of South Africa’s total uranium resources and is an important deposit in a world context.





Anglo American Declaration of Dominion Reefs and Rietkuil Resources now owned by Aflease:








Although large sections of these deposits are relatively low grade, there must be pay shoots with higher-grade uranium and gold. This is inferred from the fact that previous mining produced grades in the region of 1kg (2.2lbs) per ton. The deposits are reputed to be shallow, from the surface to 500 feet deep, suggesting that mining costs will be low.



These assumptions were further confirmed by an interview with Neal Froneman, CEO of Aflease, published on the Mineweb web site on 14 January 2004, as follows:



“Details for the proposed operation are sketchy, but Froneman estimates the uranium mine could process as much as 4.8 million tons of ore a year – that’s twice the size of the gold operation at Klerksdorp. If grades were consistent with the earlier mining operations – about 1kg/ton – Aflease could produce as much as 4,800 tons of uranium a year (approximately 10.6m lbs).


Froneman said Aflease would aim to mine the deposit at R40/t, process the ore at a cost of R40/t and keep overheads down to R15/t. At those costs and the current uranium price of $15/lb, Aflease could make a cash operating margin of $23,560/ton of uranium. If it manages to produce the 4,800 tons of uranium each year, Aflease could turn an annual cash operating profit of US$113 million. That number could improve still further if gold by-product credits are factored into the equation.


Froneman also said Aflease would also look to produce 153,600 ounces of gold each year as a by-product of the operation, assuming it could get grades of 1 g/t”. (My emphasis.)



If the gold by-product production turned a profit of say $200 per ounce, this would add in excess of $30m per annum to the above profit figure of $113m for uranium, making a total operating profit of $143m per annum. This figure would need to be reduced by corporate overheads, amortisation, financing charges and taxation.



If we believe that uranium is in a bull market, then the price will not remain at $15.50 per lb. I believe that the price will rise to at least $30 per lb within 2 years. At that price, the prospective Aflease uranium profits would increase by 10.6m x $15 = $159m. Add the original profit figure of $143m above and we get a figure of over $300m per annum for operating profits from the uranium operation.



These figures must obviously be regarded as “back of the envelope” informal calculations until the feasibility study currently being undertaken has been completed. They do, however, give a glimpse of what management is hoping to achieve. These prospective profit figures are subject to significant fluctuations depending on a number of variables, not least of which is the ZAR/US$ exchange rate.



In the Mineweb interview Froneman indicated that the cost to restore the mine would be of the order of R100m (US$14m) with initial production commencing in 2 year’s time but ramping up to the 4,800 tons of uranium level over a further 2 years. The old Anglo American shaft was apparently built to the normal high specifications of Anglo American and should require minimal cost to restore to full capacity.









The graph on the previous page depicts the uranium price over the past 36 years. An upside break above $16 will trigger a technical buy signal for uranium with a short-term target of $24. Once $24 has been exceeded, there is no resistance until $43 per lb is reached.



The following graph reveals the supply/demand figures for uranium together with the uranium price over a similar period.







The obvious question that flows from this graph is the why the huge discrepancy (shortfall) between supply and demand has not caused the uranium price to rise more dramatically until now.



The answer is that large inventories of uranium were built up by the USA and Russia during the Cold War for defence purposes. Following the end of the Cold War and with nuclear disarmament, there was no need to maintain these stockpiles. These stocks were gradually filtered into the private market as fuel for nuclear power plants.



This additional supply caused the free market price for uranium to plunge until it reached its low point of $7 per lb in 2000. Uranium producing mines that were no longer viable closed down causing the decline in uranium production depicted above.



The huge supply deficit depicted in the above graph is now impacting the market price for uranium because the Cold War stockpiles have largely been exhausted. This is what James Dines has been referring to. When one factors in future demand likely to emanate from China and other Asian countries, it is reasonable to forecast uranium prices in excess of $43 per lb within a few years.



Aflease as a Uranium Call Option.



Aflease has 236m shares in issue (211m + 25m for Kalgold still to be issued). AFKDY traded on Nasdaq at US37c on 3rd February 2004, giving the company a market capitalisation of US$87m. This is about 3.5% of Cameco’s market capitalisation of US$2.5 billion.







The chart of the Nasdaq price of AFKDY reveals the panic sell off that took place in mid December when the company decided to moth-ball its open pit operation and CIL plant. The shares dived from around 70c to a panic low of 25c before recovering. At their current level of 37c there is obviously no froth in this market.



Cameco is a uranium producing mining company with high-grade uranium reserves. Cameco has other important assets including a holding in Bruce Power (which is an electricity producing utility) plus some gold assets. Cameco’s attributable uranium resources are of the order of 450m lbs and annual production is about 18m lbs.



Aflease is a small gold mining and exploration company in South Africa. Its gold mining assets are arguably worth more than the current market capitalisation of the company. If this proposition is accepted, the uranium assets of Aflease come free.



The Aflease situation is complicated by the fact that the company needs a capital injection of the order of US$40m to complete its various new gold mining and exploration projects. (Uranium will be funded independently.) This will result in some dilution of equity depending on how the new capital is raised. Allowing for full dilution, this would push the market capitalisation of Aflease from $87m to US$127m. This compares favourably with the informal operating profit calculations of up to $300m per annum as set out above for the uranium section only.



The recent decline in the share price of Aflease is probably related to uncertainty about how the company will raise the necessary finance to remain viable and to complete its various projects. Considering the huge potential profitability of both the uranium and the new gold mining projects of the company, it is unthinkable that the major shareholders will not ensure that Aflease is adequately funded. Failure to do so would invite an unwelcome take over bid.



Call options are all about rapidly increasing value once the strike price has been exceeded. On this basis Cameco is already “in the money”. That means that it is already profitable. The Aflease uranium deposits are probably partly “in the money” and partly “out of the money” at current uranium prices. We will only have definitive information about this when the feasibility study is completed. It will also require time and capital to bring the deposits into production again.



Once the uranium price has moved up to the point where both the Cameco and Aflease resources are “in the money” (which should happen in a uranium bull market), one can compare relative increases in the in situ value of their resources and then compare these with their respective company market capitalisations.



At the point where both deposits are “in the money”, a $10 increase in the uranium price will increase the value of uranium in situ by $4.5billion for Cameco and by $3.7billion for Aflease. Compare these figures with the current market capitalisations of $2.5 billion for Cameco and only $127m (fully diluted) for Aflease. The much bigger “bang for your uranium buck” in Aflease becomes immediately apparent.



This is a very crude comparison. Discounted net present values would be a better way to compare these stocks, but until a great deal more information is available from Aflease, such calculations cannot be done.



Call options are high risk/high reward investments and Aflease is a similar high risk/high reward investment. It should be approached on that basis.



Alf Field ([e-mail])



4 February 2004



Disclosure and Disclaimer Statement: In the interest of full disclosure, the author advises that he is not a disinterested party in that he has a personal investment in Aflease shares. The author’s objective in writing this article is to interest potential investors in this company to the point that they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this or any stock, currency or commodity. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions. The author has neither been paid nor received any other inducement to write this article.





PS. An interview with Jim Sinclair that discusses uranium and Afrikander Lease was recently published on the Moneyweb/Mineweb web site. The important portion of the interview is reproduced below. I have used yellow highlighter to emphasize the most interesting sections. Jim Sinclair makes the important point that historic stockpiles of uranium have been used and that the market in uranium is reverting to a more normal commodity type situation with supply falling short of demand, hence a bullish situation for the uranium price.





MONEYWEB: Jim, just to close off with, a year ago you were also very bullish on platinum, on the platinum price – and that has also justified your confidence in it. Do you see that continuing to rise?


JIM SINCLAIR: Platinum is like any other of a more minor metal, very much driven by the supply and demand factors. And platinum has had a number on it of approximately $1100. It would become, I believe, fully priced up into that area, basically more on the supply and demand side. But let me add another one to you right now. Uranium, believe it or not. And I would suggest that in the next three years the US purchase of enriched uranium is now being processed, and that basic purchase at the end of the cold war is what put the mines on hold. Now real supply and demand will enter the picture, and demand looks better than supply.

MONEYWEB: So you’ve got to start thinking about a little stock in South Africa called Afrikander Lease, which has got huge uranium assets.


JIM SINCLAIR: You do, certainly you do and for myself, uranium properties that had merit would be something that I would be interested in.


MONEYWEB: Jim, as far as uranium is concerned, why is there now this interest in uranium? What information has come to light that has got people excited about it?


JIM SINCLAIR: That we have processed almost all of the purchase. Part of ending the cold war was buying the enriched uranium, and part of the buying the enriched uranium was to process it. And if you’ve got enriched uranium and you’re processing it, what is the mine off-take? And when mine off-take drops, what happens to the economics of the mine operation and to production? And the answer is that it contracts. Then when the item which caused that contraction is exhausted, real supply and demand comes back into the mining operation and, as the mining people listening know, you don’t just crank up a mine on any product at the whim of a demand. It takes time and process. So, between cranking up the supply to meet the demand, prices rise. Thank God commodities are simple. Thank God commodities rarely go to zero.


MONEYWEB: Jim Sinclair, US’s Mr Gold – and there might be hope yet for Afrikander Lease.



Disclosure: GoldSeek.com does not own shares nor did it receive compensation for publishing this report.


-- Posted Wednesday, February 4 2004

[nanooo]

Rising uranium price may prompt Aflease to reopen mines
January 9, 2004

By Sherilee Bridge and Bloomberg

Johannesburg - The pick-up in the price for uranium might prompt Afrikander Lease (Aflease), the struggling junior gold producer, to reopen two uranium mines in South Africa, the company said yesterday.

This would make the Benoni-based company the second local producer of uranium besides AngloGold.
Uranium is used to fuel nuclear power stations.

Aflease, which is struggling to survive the rampant rise of the rand against the US dollar, said it would be doing preliminary work to develop its uranium assets, which have not been mined for years.

Aflease`s uranium deposits at Dominion Reefs and Rietkuil in the Klerksdorp area of the North West province constitute more than half the country`s total uranium reserves and are believed to be "among the highest-grade deposits in the world".

Dominion Reefs was closed by Anglo American 43 years ago and by Rietkuil 15 years ago.

Neal Froneman, the chief executive of Aflease, believed it would cost just R100 million to bring the large, relatively unexploited resource into production.

Over their lifetimes, the Dominion mine produced 1 143 tons of uranium oxide while the Rietkuil mine produced 16.2 tons.


Aflease warned, however, that preliminary work was expected to "continue for some months".

Froneman, who believes uranium could be the next boom commodity after platinum, said there had been a "big change in uranium demand".

Precious metal prices were also looking brighter.

According to London`s Metal Bulletin, the price of uranium has doubled to about $14.40 a pound in the last four years.

The metal has added 50 percent to its price since mid-2003 alone.

Reviving its uranium mining business could also provide Aflease with a hedge against the ravages of the stronger rand.

The company last month closed its only gold mine, laying off 600 employees, because the strength of the currency had made it too expensive to mine.

Ian Ballington, a resources analyst at Rice Rinaldi Securities, said in a November research report that uranium potential "clearly offers upside for the mining group".

He added that the company stood to benefit from the local development of the nuclear Pebble Bed Modular Reactor, with the first reactor expected to be fully operational by 2010.

[nanooo]

Aflease predicts bright future for uranium
November 24, 2003

By Sherilee Bridge

Johannesburg - Uranium could be the next big metal, junior gold producer Afrikander Lease (Aflease) said at the weekend.

The company believes it is sitting on the world`s highest grade deposits of uranium, which is the nuclear fuel used by pebble bed modular reactor technology.

Neal Froneman, the chief executive of Aflease, said bringing uranium into production at its Klerksdorp mine would cost just R100 million. But with uranium contract prices "very poor", he believed mining the element might only become viable in three to four years.


"I think we are probably three to five years away from a uranium boom, similar to the boom we are seeing in platinum," he said.

"The beauty of mining uranium is that gold is a by-product. In dominium reefs, where you mine uranium at something like 400g a ton, the gold content is about 6g a ton."

Ian Ballington, an analyst at Rice Rinaldi Securities, said this potential had been excluded from financial forecasts for Aflease due to uncertainty over the uranium market and pebble bed technology, "but this now clearly offers upside".

[nanooo]

AFL: THE AFRIKANDER LEASE LIMITED - UNAUDITED C... 14/11/2003 07:00:14 AM

THE AFRIKANDER LEASE LIMITED - UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR TH
QUARTER ENDED 30TH SEPTEMBER 2003
THE AFRIKANDER LEASE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
Share code: AFL (JSE) AFKDY (NASDAQ)
ISIN: ZAE000000253
("Aflease" or "the company")
Unaudited Consolidated Financial Results for the quarter ended 30th September
2003
Financial Results
1. Despite a reduction of 1% in the Rand gold price received, the cash operating
loss decreased by 48% from R20.2m in the June quarter to R10.5m in the September
2003 quarter.
2. In line with the trading update released on the 29th of September, the total
loss for the September quarter was slightly lower at R30m compared to R32.4m in
the June 2003 quarter.
3. The Nedcor facility has been reduced from R75m at the end of June 2003 to
R50m at the end of September 2003.
4. The decrease in capital expenditure from R48m to R26m, quarter on quarter,
was mainly as a result of the commissioning of the CIL plant during the
September 2003 quarter.
5. In line with forecasts, open pit mining costs reduced by 32% from
R73.09/tonne mined to R49.52/tonne mined. Underground mining costs of R197.30/
tonne are in line with current production volumes.
6. Improvement in financial and technical systems has enhanced prospects (in
some instances already achieved) for cost reductions and more effective
operational performance.
Operations
7. Gold production increased by 314% from the June to the September 2003 quarter
with 17,168 ounces (534kg) being produced, including 91kg"s by the CIS plant
from the re-treatment of the heap leach pads. The annualized production for the
quarter amounted to 68,636 oz"s.
8. Open Pit production increased by 28% from the June 2003 quarter to 605,882
tonnes in the September quarter, and underground production increased by 164%
from the June quarter to 47,749 tonnes in the September 2003 quarter.
9. The new CIL plant is consistently exceeding its design capacity of 200 000
tonnes per month. The CIL plant operating cost for the quarter amounted to
R38.05 per tonne milled. As the plant is fine-tuned, this cost can be expected
to decrease to about R30 per tonne milled.
10. Cash operating cost reduced by 61% to R94 779/kg, mainly as a result of the
314% increase in gold production. The total costs showed a 51% improvement to
R128 360/kg.
11. Grade remains a concern with the open pit recovered grade being 0.68g/t and
the underground recovered grade 1.37g/t. The combined CIL plant recovered grade
is 0.71g/t.
The board has taken a view that the Rand may continue to strengthen ahead of a
US$ gold price increase which could result in a short-term decrease in the Rand
gold price.
Further, in light of the lower-than-expected recovered grades management has
conducted an in-depth investigation into the recovered grades. The results of
this investigation indicate that dilution and plant efficiencies are in line
with historical averages and expectations. However, the in situ grades have
shown a substantial difference to mine plans. As such, the open pit geological
models have been brought up to date and management is finalizing plans to
restructure both the surface and underground operations in line with the current
economic environment and the new grade information.
Exploration
Modder East
The past quarter has seen exciting developments at the Modder East exploration
programme. An additional 5 holes were drilled, while results from holes drilled
in the previous quarter were returned. Results from DD13 indicate that the width
of economically interesting black reef mineralisation is wider than initially
thought. DD15 drilled in the UC prospect area confirmed the presence of the
Black reef target zone. DD16 was drilled to test the northwestern limit of the
BPLZ mineralisation, but drilled just beyond the shoreline position and
intersected waste on contact. A secondary objective of this hole was to test for
a postulated Black reef channel. It is now thought that this channel is situated
to the north east of DD16. DD17 clipped the shoreline and provided valuable
structural information which allowed for the correct positioning of DD18 which
proved the existence of an eastern extension to the Black reef mineralized zone.
DD19 is thought to have intersected a possible Black Reef channel with
significant grades over a width of over 4 m. As a result of the drilling in the
past quarter, a resource increase of approximately 1 million tonnes has been
made in the inferred and indicated categories. Initial indications are that in
situ grades in the eastern extension are of the order of 4.68g/t over 100cm.
During the next quarter, further drilling will be carried out to further define
the extent and grade of the eastern extension.
Mine planning for the deposit is at an advanced stage.
Bonanza South Central
Drilling at the Bonanza South Central project area has been virtually completed
during the quarter, with the extent of the Bonanza reefs being estimated at
approximately 450,000 tonnes on the lower reef, 300,000 tonnes on the Upper reef
and 200,000 tonnes on the Intermediate reef. Grade estimates on the various
reefs will be updated when results from the current drilling programme are
completed.
Geologically the ore zone comprises a strip of Bonanza reefs dipping to the west
at an average angle of 45. The reefs subcrop to the west in an unconformable
contact with the overlying Base of shale reef. On the eastern side of the ore
zone, the reefs are truncated by a fault/dyke structure. Additional structural
interpretation is being carried out to clarify the constraints on orebody
extent. Gold mineralisation is commonly hosted in carbon/graphite stringers
associated with the conglomerate packages, as well as in the conglomerates
themselves. High, but erratic grades have been returned, and the erratic values
can be attributed to both a nugget effect and to the unavoidable loss of carbon
during the drilling and sampling processes.
Bonanza South
An additional three boreholes have been drilled in this project area,
immediately south of the current mining operation. Borehole NB152 intersected
both upper and lower Bonanza reefs, with carbon stringers clearly evident.
Borehole NB153 drilled into footwall on the western side of the subcrop
position, where no reefs are developed. Borehole NB155 intersected lower reef at
shallow depths with good grades. The holes are intended to define the structural
boundary between the South and South Central resource blocks. Drilling to date
indicates a resource of 175,000 tonnes on Bonanza Lower Reef, grading
approximately 8 g/t in situ, with a contribution of 130,000 tonnes from upper
reef grading approximately 2.5 g/t in situ. The intermediate reef is estimated
to contribute approximately 130,000 tonnes at an in situ grade of 4.3g/t.
Kalahari Goldridge Mining Company Limited ("Kalgold")
Aflease announced on the 7th of November the acquisition of Kalgold from Harmony
for a total consideration of R275m, of which half will be paid via the issue of
25.7m shares at a price of R5.35 per share to Harmony.
The Kalgold acquisition is immediately value accretive. It is cash flow positive
and currently produces in excess of 80 000 oz"s per annum compared to Aflease"s
current annualized production rate of approximately 74 000 oz"s, which will
double as a result of the Kalgold acquisition. The Aflease Board is acutely
aware of the risks associated with managing a single mine operation. Until the
underground mines at Bonanza South and Modder East are brought into production
(currently planned for late 2004 and 2006 respectively), Aflease is entirely
dependent on production from its existing Klerksdorp operations. The acquisition
will facilitate the diversification of risk by increasing Aflease"s asset base.
Aflease is of the opinion that the strong Rand environment may require a
restructuring of the Klerksdorp operations. The acquisition of Kalgold allows
more flexibility for any such restructuring. Although no operational efficiency
improvements have been factored into the valuation of Kalgold, Aflease is
confident in being able to realize synergies between its Klerksdorp operations
and the Aflease low cost overhead structure. The extensive Aflease open pit
mining skills could also result in operational improvements which have not been
factored into the valuation. An increase in Aflease market capitalization will
also increase Aflease"s ability to continue to grow organically and by
acquisition.
Africa Vanguard Resources (Proprietary) Limited
On the 10th of September 2003 Aflease and Africa Vanguard Resources
(Proprietary) Limited ("AVR"), a broad based black economic empowerment mining
company, founded and led by entrepreneur, Sandile Zungu, concluded a strategic
alliance. In the spirit of their strategic alliance Aflease and AVR are
currently evaluating a funding mechanism aimed at effecting the acquisition of
up to 26% of Kalgold by AVR from Aflease. Aflease and AVR will keep shareholders
informed as to progress in this regard.
American Depositary Receipts ("ADR")
As indicated in the June 2003 update, the company has embarked on a process of
implementing enhanced corporate governance and operational systems. Aflease is
pleased to announce that the most important of these processes have now been
completed and is confident that the company is now aligned with the US legal
requirements it will become subject to on completion of the ADR level 2 upgrade.
A detailed time schedule for completion of the ADR upgrade will be made
available on the Company"s web site in due course.
Prospects
Aflease will continue to strive for further operational improvements in the
December quarter. The operations will be restructured in line with the new
grade information and the strengthening Rand environment. With the possible
strengthening Rand environment it is important to expedite production from
Aflease"s high quality, high margin assets at Modder East and Bonanza South. As
such the board has approved the start up of mine development at both Bonanza
South and Modder East. Aflease"s focused and structured exploration program
will continue to build up our high quality resource base. The Kalgold
acquisition will receive the necessary attention to ensure that the transaction
is completed.
Bonanza South Central - Reef drilling Results for the September 2003 quarter
Borehole From To Accepted Stoping Stope Reef type
Number Value width grade
(m) (m) (cmg/t) (cm) (g/t)
NB113 n/d n/d n/a n/a n/a Upper Reef
NB113 n/d n/d n/a n/a n/a Intermediate Reef
NB113 215.75 217.43 183 100 1.83 Lower Reef
NB121 77.07 77.41 NEG NEG NEG Upper Reef
NB121 82.96 84.22 37 100 0.37 Intermediate Reef
NB121 84.57 86.04 43 100 0.42 Lower Reef
NB127 216.43 217.39 468 100 4.68 Upper Reef
NB127 236.28 237.59 75 100 0.75 Intermediate Reef
NB127 239.82 241.37 80 100 0.80 Lower Reef
NB126 195.94 200.75 66 100 0.66 Upper reef
NB126 204.96 206.03 27 100 0.27 Intermediate Reef
NB126 206.84 208.53 679 100 6.79 Lower Reef
NB129 71.46 72.66 1221 100 12.21 Upper Reef
NB129 94.42 95.55 261 100 2.61 Intermediate Reef
NB129 101.98 103.29 136 100 1.36 Lower Reef
NB154* 192.1 193.89 602 100 6.02 Upper Reef
NB154* 194.46 195.82 441 100 4.41 Intermediate Reef
NB154* 195.82 196.89 634 100 6.34 Lower Reef
* Result excludes one or more intersections which are awaiting analysis
Notes: From/To = depth below surface in meters; Stoping width = estimated mining
stoping width; Cmg/t = centimeter grams per ton of channel; g/t = estimated face
grade.
Bonanza South - Reef drilling Results for the September 2003 quarter
Borehole From To Accepted Stoping Stope Reef type
Number Value width grade
(m) (m) (cmg/t) (cm) (g/t)
NB152* 83.72 84.75 224 100 2.24 Upper Reef
NB152* 92.4 93.5 53 100 0.53 Intermediate Reef
NB152* 93.82 94.87 454 100 4.54 Lower Reef
NB153 Beyond subcrop Upper Reef
position
NB153 Beyond subcrop Intermediate Reef
position
NB153 Beyond subcrop Lower Reef
position
NB155* N/D N/D N/D N/D N/D Upper Reef
NB155* N/D N/D N/D N/D N/D Intermediate Reef
NB155* 46.71 47.53 1281 100 12.81 Lower Reef
* Result excludes one or more intersections which are awaiting analysis
Notes: From/To = depth below surface in meters; Stoping width = estimated mining
stoping width;
Cmg/t = centimeter grams per ton of channel; g/t = estimated face grade.
Modder East drilling Results for the September 2003 quarter
Borehole From To Accepted Stoping Stope Reef type
Number Value width grade
(m) (m) (cmg/t) (cm) (g/t)
DD12** 296.06 296.48 274 100 2.74 BPLZ
DD12** 296.48 300.66 534 482 1.1 Blanket/Channel
DD13** 294.10 294.44 236 100 2.36 BPLZ
DD13** 294.44 298.83 148 395 0.38 Blanket/Channel
DD15 295.60 295.90 244 100 2.24 BPLZ
DD15 296.86 299.14 126 228 0.56 Blanket/Channel
DD16 n/a n/a n/a n/a n/a no intersection
DD16 n/a n/a n/a n/a n/a no intersection
DD17 266.53 266.61 88 100 0.88 BPLZ***
DD17 267.54 270.19 11 252 0.04 Blanket/Channel
DD18 261.33 261.81 468 100 4.68 BPLZ
DD18 262.42 263.85 91 2.27 0.40 Blanket/Channel
DD19* 252.99 253.75 182 100 1.82 BPLZ
DD19* 253.75 257.67 1119 383 2.92 Blanket/Channel
* Result excludes one or more intersections which are awaiting analysis
** Updated as a result of additional deflection information since last quarterly
report.
***DD17 intersected a poorly developed, non representative Buckshot pyrite zone,
probably due to intersection of the shoreline. It does not therefore impact on
the resource estimates.
Notes: From/To = depth below surface in meters; Stoping width = estimated mining
stoping width;
Cmg/t = centimeter grams per ton of channel (average of motherhole &
deflections); g/t = estimated face grade
Reef type: BPLZ = Buckshot Pyrite Leader Zone; Blanket/Channel = Black Reef
blanket or channel facies
UNAUDITED FINANCIAL RESULTS FOR SEPTEMBER 2003
UNAUDITED UNAUDITED UNAUDITED AUDITED
QUARTER TO QUARTER TO QUARTER TO YEAR TO
30 SEP 2003 30 JUNE 2003 30 SEP 2002 31 DEC 2002
R"000 R"000 R"000 R"000
HIGHLIGHTS:-
GOLD PRODUCED AND SOLD:-
-KILOGRAMS
(INCLUDING UNDERGROUND) 534 129 355 1,075
-OUNCES 17,168 4,150 11,414 34,562
CASH OPERATING COST PER
TON MINED* 83.53 64.09 54.38 49.29
CASH OPERATING COST:-
-RAND / KG 94,779 243,280 72,639 77,533
-$ / OZ 399 985 219 233
CASH OPERATING(LOSS)
/PROFIT(R"000) (10,550) (20,217) 11,352 28,020
OPERATING (LOSS)
/PROFIT (R "000) (28,480) (28,504) 7,044 15,593
NET(LOSS)/EARNINGS(R"000) (30,015) (32,435) 7,044 15,593
HEADLINE AND BASIC(LOSS)
/EARNINGS PER SHARE(CENTS) (15.62) (17.21) 4.79 10.53
*Excluding underground tonnage for Sept 2003 results.
OPERATING RESULTS:-
TONS MINED - OPEN PIT 605,882 471,854 474,207 1,691,068
TONS MINED - UNDERGROUND 47,749 18,070 - -
TONS STACKED - CIS * 427,666 185,484 452,376 1,728,943
TONS MILLED - CIL 620,999 140,696 - -
GOLD PRODUCED AND SOLD (KG) 534 129 355 1,075
GRADE STACKED - CIS * 0.21 0.49 0.92 1.08
GRADE MILLED - CIL 0.80 0.91 - -
GOLD PRICE RECEIVED:-
-RAND/KG(INCLUDES
UNDERGROUND PRODUCTION) 85,815 86,645 104,617 103,537
-RAND / OZ 2,669 2,695 3,254 3,222
-$ / OZ 361 356 315 312
* INCLUDES RE-HANDLING OF HEAP LEACH PADS
INCOME STATEMENT
UNAUDITED UNAUDITED UNAUDITED AUDITED
QUARTER TO QUARTER TO QUARTER TO YEAR TO
30 SEP 2003 30 JUNE 2003 30 SEP 2002 31 DEC 2002
R"000 R"000 R"000 R"000
REVENUE * 40,062 11,183 37,139 111,368
CASH OPERATING COSTS 50,612 35,702 28,842 102,892
CASH MOVEMENT IN LOCK-UP - (4,302) (3,055) (19,544)
CASH OPERATING(LOSS)/PROFIT(10,550) (20,217) 11,352 28,020
AMORTISATION AND
DEPRECIATION 4,110 3,696 2,565 9,047
NON-CASH MOVEMENT IN
LOCK-UP 4,767 - (5) (1,777)
NET FINANCE COSTS 4,238 1,262 818 1,640
GENERAL AND ADMINISTRATIVE 4,166 1,352 367 1,421
EXPLORATION EXPENDITURE 649 1,977 563 2,096
OPERATING(LOSS)/PROFIT (28,480) (28,504) 7,044 15,593
NON RECURRING AND
OTHER COSTS
DECOMMISSIONING ** - 2,602 - -
FUNDING EXPENSES
AND LEGAL FEES 1,535 1,329 - -
(LOSS)/PROFIT BEFORE
TAXATION (30,015) (32,435) 7,044 15,593
TAXATION - - - -
INCOME/(LOSS) ATTRIBUTABLE
TO ORDINARY SHAREHOLDERS (30,015) (32,435) 7,044 15,593
* Excludes revenue from underground mining which has been capitalised net of
underground capital expenditure amounting to R3,4 million.
** Net of revenue
RATIOS:-
(LOSS)/ EARNINGS PER SHARE
(CENTS):-
- CASH OPERATING (LOSS)
/PROFIT (5.49) (10.73) 7.71 18.92
- OPERATING (LOSS)/PROFIT (14.82) (15.13) 4.79 10.53
- HEADLINE AND BASIC (15.62) (17.21) 4.79 10.53
- FULLY DILUTED (14.86) (16.32) 4.69 10.34
WEIGHTED AVERAGE NUMBER
OF ORDINARY SHARES
IN ISSUE 192,189,181 188,438,191 147,150,863 148,098,027
NUMBER OF SHARES IN
ISSUE AT END OF PERIOD 199,598,406 188,569,073 163,079,123 173,329,123
THE FULLY DILUTED EARNINGS PER SHARE IS BASED UPON THE DILUTIVE EFFECT OF
EMPLOYEE SHARE OPTIONS.
UNAUDITED UNAUDITED UNAUDITED AUDITED
QUARTER AS AT QUARTER AS ATQUARTER AS ATYEAR AS AT
30 SEP 2003 30 JUNE 2003 30 SEP 2002 31 DEC 2002
R"000 R"000 R"000 R"000
ABRIDGED BALANCE SHEET:-
ASSETS
NON-CURRENT ASSETS:-
-MINING ASSETS 420,820 398,497 191,501 238,714
-OTHER ASSETS 9,890 10,151 20,739 1,421
-LEACH PADS 39,221 39,221 21,514 39,221
-INVESTMENTS 13,382 12,818 9,575 10,036
483,313 460,687 243,329 289,392
CURRENT ASSETS:-
-INVENTORIES 29,344 24,813 10,212 6,038
-LEACH PADS 5,038 9,805 5,378 9,805
-RECEIVABLES AND
PREPAYMENTS 13,284 12,647 15,098 21,799
-AMOUNTS OWING BY RELATED
THIRD PARTIES 213 835 - 817
-BANK AND CASH BALANCES 1,682 18,943 49,906 76,209
49,561 67,043 80,594 114,668
TOTAL ASSETS 532,874 527,730 323,923 404,060
EQUITY AND LIABILITIES
CAPITAL AND RESERVES:-
-ORDINARY SHARE CAPITAL 3,992 3,772 3,017 3,467
-SHARE PREMIUM 434,681 383,364 175,744 315,604
-ACCUMULATED EARNINGS (51,850) (21,835) 25,310 24,561
386,823 365,301 204,071 343,632
NON-CURRENT LIABILITIES:-
-INTEREST BEARING
BORROWINGS 73,672 78,261 20,178 26,685
-REHABILITATION AND
CLOSURE COST OBLIGATIONS 5,528 5,528 4,500 4,500
-AMOUNTS OWING TO RELATED
THIRD PARTIES 65 71 2,022 50
79,265 83,860 26,700 31,235
CURRENT LIABILITIES:-
-TRADE AND OTHER PAYABLES 29,520 32,155 18,156 14,886
-PROVISIONS 6,236 5,242 1,279 1,160
-CREDITOR IN LIEU OF SHARES - - 66,279 -
-CURRENT PORTION OF
INTEREST BEARING BORROWINGS 20,448 32,622 5,290 6,066
-BANK OVERDRAFT BALANCES 10,582 8,550 2,148 7,081
66,786 78,569 93,152 29,193
TOTAL EQUITY AND
LIABILITIES 532,874 527,730 323,923 404,060
ABRIDGED CASH FLOW STATEMENT:-
UNAUDITED UNAUDITED UNAUDITED AUDITED
QUARTER TO QUARTER TO QUARTER TO YEAR TO
30 SEP 2003 30 JUNE 2003 30 SEP 2002 31 DEC 2002
R"000 R"000 R"000 R"000
CASH FLOW(UTILISED BY)
/GENERATED FROM:-
OPERATING ACTIVITIES (39,499) (4,704) 83,858 (6,460)
INVESTING ACTIVITIES (26,736) (51,483) (93,450) (132,002)
FINANCING ACTIVITIES 46,942 50,224 43,351 195,648
NET (DECREASE)/INCREASE IN
CASH AND CASH EQUIVALENTS (19,293) (5,963) 33,759 57,186
CASH & CASH EQUIVALENTS
AT BEGINNING OF PERIOD 10,393 16,356 13,999 11,942
CASH & CASH EQUIVALENTS
AT END OF PERIOD (8,900) 10,393 47,758 69,128
SHARE SHARE ACCUM TOTAL
CAPITAL PREMIUM PROFIT EQUITY
R"000 R"000 R"000 R"000
STATEMENT OF CHANGES IN EQUITY:-
BALANCE AT 31ST DECEMBER 2002 3,467 315,604 24,561 343,632
ISSUED DURING THE PERIOD 299 - - 299
SHARE PREMIUM - 67,334 - 67,334
NET LOSS AFTER TAXATION - - (13,961) (13,961)
BALANCE AT 31ST MARCH 2003 3,766 382,938 10,600 397,304
ISSUED DURING THE PERIOD 6 - - 6
SHARE PREMIUM - 426 - 426
NET LOSS AFTER TAXATION - - (32,435) (32,435)
BALANCE AT 3OTH JUNE 2003 3,772 383,364 (21,835) 365,301
ISSUED DURING THE PERIOD 220 - - 220
SHARE PREMIUM - 51,317 - 51,317
NET LOSS AFTER TAXATION - - (30,015) (30,015)
BALANCE AT 30TH SEPTEMBER 2003 3,992 434,681 (51,850) 386,823
UNAUDITED UNAUDITED UNAUDITED AUDITED
QUARTER TO QUARTER TO QUARTER TO YEAR TO
30 SEP 2003 30 JUNE 2003 30 SEP 2002 31 DEC 2002
R"000 R"000 R"000 R"000
SUPPLEMENTARY INFORMATION:-
CAPITAL COMMITMENTS 8,000 8,000 79,143 50,000
CAPITAL EXPENDITURE 24,590 52,300 75,703 119,306
ASSET FINANCE LEASES:- 29,370 30,977 16,544 23,826
LESS:- SHORT-TERM PORTION (7,222) (6,553) (5,290) (6,003)
22,148 24,424 11,254 17,823
THE ABOVE FINANCE LEASES
ARE REPAYABLE OVER PERIODS
VARYING FROM ONE TO FIVE
YEARS AND BEAR INTEREST AT
AN AVERAGE RATE OF 13%.
LOAN-HEAP LEACH PLANT:- 8,924 8,924 8,924 8,924
THE ABOVE LOAN IS REPAYABLE
IN 2005 AND BEARS INTEREST
AT A RATE OF 15.25%.
LOAN-NEDBANK:- 50,000 67,400 - -
LESS:- SHORT-TERM PORTION (12,500) (25,000) - -
37,500 42,400 - -
THE ABOVE IS A THREE YEAR
FACILITY AND BEARS INTEREST
AT A RATE OF JIBAR PLUS A
MARGIN OF 4% DECREASING TO 3%.
TOTAL LEASES 68,572 75,748 20,178 26,747
SECURITY:-
1. THE LOAN FOR THE HEAP-LEACH PLANT IS SECURED BY MOVABLE EQUIPMENT LIMITED TO
R8M, BOND OVER MINERAL RIGHTS FOR AN AMOUNT OF R11M AND BY A PLEDGE AND CESSION
OF ALL SHORT-TERM INSURANCE POLICIES COVERING THE HEAP LEACH PLANT.
2. THE NEDBANK LOAN FACILITY IS SECURED BY A BOND OVER MINERAL RIGHTS.
NOTES TO THE FINANCIAL STATEMENTS:-
THE SAME ACCOUNTING POLICIES HAVE BEEN APPLIED TO THE CURRENT YEAR
AS WERE USED IN THE PRIOR YEAR"S ANNUAL FINANCIAL STATEMENTS.
THESE FINANCIAL RESULTS HAVE BEEN COMPILED IN ACCORDANCE WITH THE GENERALLY
ACCEPTED ACCOUNTING PRACTICE IN SOUTH AFRICA.
NO DIVIDEND HAS BEEN PROPOSED OR DECLARED FOR THE PERIOD UNDER REVIEW.
CERTAIN PRIOR PERIOD COMPARITIVES HAVE BEEN CHANGED TO REFLECT UPDATED
DISCLOSURE.
Disclaimer
Statements made in this document with respect to Aflease"s current plans,
estimates, strategies and beliefs and other statements that are not historical
facts are forward-looking statements about the future performance of Aflease.
These statements are based on management"s assumptions and beliefs in light of
the information currently available to it. Aflease cautions you that a number of
risk and assumptions could cause actual results to differ materially from those
discussed in the forward looking statements, and therefore you should not place
undue reliance on them. The potential risks and assumptions include, amongst
others, risks associated with fluctuations in the Rand-dollar exchange rate,
dollar market price of gold, gold production at operations, estimates of
reserves and resources. Aflease assumes no obligation to update the information
of this release.
Date: 14/11/2003 07:00:28 AM Produced by the JSE SENS Department

[nanooo]

Consolidation underpins gold junior’s 1m oz vision
--------------------------------------------------------------------------------

South African gold-mining junior Afrikander Lease (Aflease) believes that the local gold- mining industry will see further consolidation.

“In South African gold-mining there is still a lot of consolidation to come,” asserts Aflease CEO Neal Frone- man.

“We now have three big players with very different quality bases and I expect rationalisation on quality bases, which will create opportunities for us,” he argues.

(The Big Three are AngloGold, Gold Fields and Harmony.) “We believe that we could grow our company to a million ounces a year of gold production, in five years, due to consolidation at the top end of the industry,” he argues.

This will be achieved by a policy of identifying and, using public domain information, assessing assets that are high-value but noncore or potentially noncore for the big players.

“If such an asset meets our hurdle rate, we’d approach the owners about acquiring it from them – that’s exactly how the Kalgold deal happened,” explains Froneman.

Aflease recently acquired Kalgold from Harmony, thereby increasing its gold production by at least 100%.

“Kalgold – if you analyse its pre-vious financial statements – generally delivers cashflow and positive profits, and Harmony reported that it generated R10-million profit each quarter,” he reports.

“Harmony incurred all the capital costs to bring Kalgold to this point and no more is needed to exploit this orebody, so we get the benefit of Harmony’s investment,” he elucidates.

In addition, this orebody, known as the D Zone, is near the end of its life, with only another 4,3 years to deplete its remaining reserve of 459 000 oz.

“Towards the end of an orebody’s life, the stripping ratio normally de-creases, which lowers the costs and hence increases the profits,” forecasts Froneman.

But the depletion of D Zone will not mean the death of Kalgold.

“There is also a resource of 2,5-million ounces, which we are going to go after,” he says. “At 100 000 oz/y of gold, that gives us a life potential of up to 25 years,” he points out.

“The resource has both openpit and underground mining potential, but the ore is all shallow, so the capital expenditure requirements will be low by deep-level mining standards,” he reveals.

Aflease is also interested in small and medium sized orebodies released on to the market by the new minerals rights legislation.

“But we haven’t yet made any formal approaches to the government in this regard as we first want to get our empowerment credentials in line with the Mining Charter – hence our strategic alliance with African Vanguard Minerals,” clarifies Froneman.

Not that Aflease is or will be alone in its interest.

“There’s always competition for assets, but we have a distinct advantage at the moment as we are the only listed junior gold-mining company in South Africa and that gives us a currency that the unlisted companies do not have – it was this status which allowed us to do the Kalgold deal, which is very significant,” he affirms.

Foreign companies are also interested in these orebodies, but their appearance on the scene offers opportunities for Aflease as well as challenges.

“We can undertake exploration for these overseas companies, if need be we can operate mines on their behalf – we’re quite willing to act as agents for them,” he proposes.

“Our executive team has the skills base to manage all the different types of gold-mine found in South Africa, so we’re not concerned about operating different types of mines,” he assures.

“We have already acknowledged that we will have to manage diver-sity, whether people, systems, or oper-ations,” concludes Froneman.

[nanooo]

http://srv02.vnr.de/imperia/md/content/value_investor/geschf…

[Leh007]

Wow Aflease auferstanden aus den Ruinen.

Heute wieder 20% plus in SA