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PRESS RELEASE
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15 March 2010 |
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Simplified Financial Results for 1st Semester 2009-2010
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Improved Market Conditions at the End of 2009Market conditions in the diamond industry, where rough diamond prices fell dramatically since the end of 2008, showed signs of improvement during the last months of 2009. As a result, demand for diamonds increased and there was an improvement in rough diamond prices, albeit far from the levels of early 2008.
32% Margin at EBITDA Level for 1st Semester of 2009-2010Batla Minerals for the 6 months ending 31 December 2009 was €2,5 million, compared with €1,3 million during the comparative period of the 2009 financial year, and €5,3 million during the first half of the 2009 financial year. These revenues were realised by the exploitation of diamond deposits.
The implementation of strategic measures in the course of the second half of the current financial year (placing non-economic mines on care and maintenance, and making adjustments to the workforce) allowed Batla Minerals to have a positive EBITDA (earnings Before Interest, Taxes, Depreciation and Amortisation) of €0,8 million, representing 32% of revenues for the semester, against a loss at EBITDA level of €2 million during the 2nd semester of 2008-2009.
Operating profit for the semester was close to breakeven at €24,000, compared to a loss of €2,0 million during the course of the 2nd semester of 2008-2009.
On 30 September 2009, the Group capital reached €15,8 million and net cash levels reached €0,5 million.
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Areas of Activity for Batla Minerals at 31 December 2009
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DiamondsThe Group continued its diamond mining operations in Lesotho during the first semester of 2009-2010. The mine increased productivity and adapted to the difficult economic conditions, thanks to significant investments that were made during the current and prior periods. While waiting for economic conditions to improve, operations at the Windsorton, Grootdrink and Boesmanland mines all remain on care and maintenance. In the Democratic Republic of Congo, Batla Minerals is still in the process of selling the 70% stake it holds in Hanheka SPRL, the owner of a diamond concession in the DRC. After some administrative delays, this process is back on track. The selling of Batla Minerals' stake in Hanheka SPRL will allow it to focus all its resources in South Africa and neighbouring countries. As was announced in early January, preparations for the new mine at Shishila, formerly known as Kao, are in full swing. The infrastructure needs to be put in place, and production is due to start in the course of the second semester of the current financial year. UraniumBatla Minerals, through its wholly owned subsidiaries, holds an efffective 74% stake in Paddy's Pad, the owner of a uranium prospecting permit in South Africa. Batla Minerals is deciding whether to mine the uranium itself, or bring in a sub-contractor, or do an outright sale. The initial test results indicate that the site has more than 1000 tons of uranium, of which 870 tons are accessible and extractable. Paddy's Pad has, in the interim, received three more prospecting permits, which make the operation more viable.
Tungsten / Molybdenum
The environmental impact assessment at the Riviera site is taking its course, but has been held up due to administrative reasons. When the environmental process is completed, the Group intends to apply for a mining right for this site, in which there are large deposits of tungsten (the potential reserve is estimated at 100 000 tons) and molybdenum (potential reserve is estimated at 10 000 tons). Coalbed methane
The Group acquired the rights for coalbed methane in South Africa and Namibia. In Namibia, it entered into a joint venture in Aranos Gas, and in South Africa, its investment is held through Great Force Investments 120.
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Nomination of Directors - Batla Minerals
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About Batla Minerals
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Batla Minerals is an international company that specializes in the research, exploration, and operation of diamond mines in Lesotho and South Africa. Batla Minerals is pursuing its strategy of portfolio diversification. Batla Minerals had revenues of €6,7 million for the year ended 31 March 2009. Batla Minerals is listed on the Marché Libre of the NYSE Euronext Paris (code ISIN: FR0010436170 - MLBAT). Classification ICB: 1773 - Diamonds & Precious Stones. The share capital of Batla Minerals consists of 5 350 000 shares. For additional information, please contact: Batla Minerals - www.batlaminerals.com
Johannes van der Walt - (27) 21 887 9184 Jean Retief - (27) 21 887 9184 Arnaud Vercruysse - (33) 4 67 98 71 59 Actus Finance Mathieu Omnes, Investor Relations (33) 1 72 74 81 87 Nicolas Bouchez, Press Relations (33) 1 77 35 04 37
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El Nino Mining (Pty) Ltd - A wholly owned subsidiary of
Batla Minerals SA PO Box 340 Stellenbosch 7599 South Africa
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