Final Results
SouthernEra Releases 2002 Year-End Results
(All amounts are in United States dollars unless otherwise noted)
Shares Issued and Outstanding: 61,593,793
TSX: SUF
AIM: SRE
TORONTO, April 10 /CNW/ - The Board of SouthernEra Resources Limited
today reported on the Company's 2002 year-end results. This follows the
release last week of the year-end results of SouthernEra's 70.9 percent
subsidiary, Messina Limited.
Highlights of progress at Messina Platinum include:
- Completion of construction and commissioning of the main Voorspoed
concentrator providing processing capacity of 120,000 tonnes per month
- Completion of shaft construction to a depth of 425 metres; shaft
deepening to 625 metres underway
- Completion of the Doornvlei Feasibility Study (Phase 2)
Patrick Evans, President and CEO of SouthernEra said that 2002 was a
break-through year for SouthernEra as Messina Platinum progressed towards its
objective of becoming a significant low-cost producer of platinum group metals
(PGMs). 'The year 2002 witnessed the successful development, construction and
commissioning of the Phase 1 shaft complex and main concentrator plant at
Voorspoed. Mining and processing results already achieved at Messina indicate
that the technical and economic results predicted in the original feasibility
study will not only be met, but will likely be exceeded.'
During 2002 construction of the decline ramp system at SouthernEra's 50
percent controlled Klipspringer Diamond Mine was completed with production
building up steadily through the year, achieving the planned full production
rate of 30,000 tonnes per month during the final quarter.
Diamond sales generated revenues of $3.2 million in 2002 compared to
$3.8 million in 2001, reflecting a marginal reduction in carats produced and
average selling prices. 2002 mining and treatment was almost exclusively from
underground fissure material, whereas 2001 revenue was limited to that of
diamond sales from the treatment of low-grade stockpile and tailing materials
and limited underground fissure material. The Company's share of diamond
production for the year was 45,566 carats at an average selling price of $74
compared to 45,840 carats at a price of $80 in 2001.
Loss before taxes from mining operations in 2002 was $3.3 million,
compared to $4.1 million in 2001. The Company's net loss in 2002 was
$9 million, compared to the net loss of $8.3 million recorded in 2001. The
loss per share was $0.19 in 2002 compared to $0.25 in 2001.
SouthernEra's asset growth has been substantial in 2002, mainly as a
result of development at the Messina Platinum Mine Project, with assets
increasing from $73m in 2001 to $161 million in 2002. This growth was financed
through a structured long-term debt facility and capital raised during the
year.
Exploration and development project cost write-downs in 2002 amounted to
$1.2 million compared to $3.6 million in 2001. In 2002, the Company wrote down
the carrying value of certain exploration projects in South Africa and Canada,
which the Company has discontinued as exploration results did not match the
criteria for continued involvement. In 2001, the higher write-down included
Brazilian, Canadian and South African projects. The Company has continued with
exploration activities in Canada, South Africa, Gabon and Australia, which
continue to meet the Company's criteria for involvement.
Subsequent to December 31, 2002, SouthernEra's cash balances were
increased by approximately $44 million with a completed bought deal equity
issue of 9 million shares at an issue price of C$7.75 per share.
With the commencement of production of PGMs, 2002 also witnessed the
inception of a five-year metal supply agreement with a major automotive
company. This agreement provides for a minimum weighted average floor price of
US$400 per ounce for platinum and US$370 per ounce for palladium. The
agreement also provides for a weighted average ceiling price of US$600 per
ounce for 80% of platinum production and US$658 per ounce for 100% of
palladium production.
'We are increasingly confident that as we continue to expand the Greater
Messina Project, it will become one of the largest and lowest cost PGM
producers in the industry. As we implement our plans for Phases 2 through 4,
we expect total PGM production at Messina to eventually exceed 500,000 ounces
per year,' said Mr. Evans.
The Annual Report is expected to be mailed to shareholders on May 2,
2003. The text and complete financial statements will be available on the
Company's website at www.southernera.com
SouthernEra Resources is an independent producer of platinum group metals
and diamonds. The company also has an extensive PGM and diamond exploration
program. The common shares are listed on the Toronto Stock Exchange and the
London Stock Exchange's AIM market.
For further information: SouthernEra Resources Limited, Patrick C.
Evans, President and CEO; or Dr. Sally Eyre, Vice President, Corporate
Affairs, Telephone: (416) 359-9282, Fax: (416) 359-9141, E-mail:
inbox(at)southernera.com
(SUF. SRE)
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