APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF-YEARLY REPORT
31 December 2001
CONTENTS
Pages
Directors' Report 2
Financial Statements 3-17
Directors' Declaration 18
Compliance Statement 19
Independent Review Report 20
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
DIRECTORS' REPORT
The Directors present their report on the consolidated financial report of
Normandy Mining Limited and its controlled entities for the half-year ended 31
December 2001.
DIRECTORS
The Directors of Normandy Mining Limited during or since the end of the
half-year are:
Mr Robert J Champion de Crespigny
Mr Michael S Hamson
Dr Pierre Lassonde
Mr Bruce G McKay
Mr John B Prescott
Mr Ken Spencer
Mr Bernard Wheelahan
REVIEW OF OPERATIONS
GROUP RESULT
The consolidated profit for the year after taxation and outside equity interests
for the half-year ended 31 December 2001 was $83.5M (2000:$62.6M).
Consolidated gold ounces sold during the half-year totalled 1,225,218 ounces
(2000: 1,049,405 ounces) at an average realised price of $577 per ounce (2000:
$552 per ounce). This compares with the average spot price for the half-year of
$537 per ounce (2000: $493 per ounce). The average cash cost was $310 per ounce
(2000: $299) and the average total production cost was $416 per ounce (2000:
$396).
For further details see Report on Activities for the Quarter to 31 December 2001
released to shareholders on 18 January 2002, and the Financial Report for the
six months released today.
ROUNDING OF AMOUNTS
The Company is a company of the kind referred to in ASIC Class Order 98/0100,
dated 10 July 1998, and in accordance with that Class Order amounts in the
directors' report and the financial report have been rounded to the nearest
hundred thousand dollars.
Signed in accordance with a resolution of the Board of Directors.
On behalf of the Directors
/s/ R J Champion de Crespigny /s/ K H Spencer
R J Champion de Crespigny K H Spencer
Director Director
Adelaide
5 February 2002
Page 2
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
Half Year Ended 31 December 2001
FOR ANNOUNCEMENT TO THE MARKET A$M
- --------------------------------------------------------------------------------
Revenues from ordinary activities (item 1.1) up 7% TO 944.6
Profit(loss) from ordinary activities after tax
(before amortisation of goodwill) attributable
to members (item 1.20) up 31% TO 85.4
Profit(loss) from ordinary activities after tax
attributable to members (item 1.23) up 33% TO 83.5
Profit(loss) from extraordinary item after tax
attributable to members (item 2.5(d)) -
Net profit(loss) for the period attributable
to members (item 1.11) up 33% TO 83.5
- --------------------------------------------------------------------------------
DIVIDENDS (DISTRIBUTIONS) AMOUNT PER Franked amount
SECURITY per security
- --------------------------------------------------------------------------------
Interim dividend NIL Not Applicable
- --------------------------------------------------------------------------------
Previous corresponding period 2.5 1.10 cents at 34%
- --------------------------------------------------------------------------------
--------
Record date for determining entitlements to the dividend N/A
--------
Brief explanation of omission of directional and percentage changes to profit in
accordance with note 1 and short details of any bonus or cash issue or other
item(s) of importance not previously released to the market
Nil
Page 3
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
-------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
-------------------------------------
1.1 Revenue from ordinary activities (SEE ITEMS 1.24) 944.6 879.3
1.2 Expenses from ordinary activities (SEE ITEMS 1.24) (797.3) (754.5)
1.3 Borrowing costs (44.9) (52.5)
1.4 Share of net profit (loss) of associates and joint
venture entities (SEE ITEM 16.7) 3.8 (1.1)
- ------------------------------------------------------------------------------------------------------
1.5 PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAX 106.2 71.2
1.6 Income tax on ordinary activities (22.3) (11.0)
- ------------------------------------------------------------------------------------------------------
1.7 PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAX 83.9 60.2
1.8 Profit (loss) from extraordinary items after tax (SEE ITEM 2.5) - -
- ------------------------------------------------------------------------------------------------------
1.9 NET PROFIT (LOSS) 83.9 60.2
1.10 Net profit (loss) attributable to outside equity interests (0.4) 2.4
- ------------------------------------------------------------------------------------------------------
1.11 NET PROFIT (LOSS) ATTRIBUTABLE TO MEMBERS 83.5 62.6
- ------------------------------------------------------------------------------------------------------
Total revenues, expenses and valuation adjustments
attributable to members recognised directly in equity (93.2) 38.7
- ------------------------------------------------------------------------------------------------------
Total changes in equity other than those resulting from
transactions with owners as owners. (9.7) 101.3
- ------------------------------------------------------------------------------------------------------
CONSOLIDATED RETAINED PROFITS
-------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
-------------------------------------
1.12 Retained profits (accumulated losses) at the
beginning of the financial period (434.8) (251.9)
1.13 Net profit (loss) attributable to members (ITEM 1.11) 83.5 62.6
1.14 Net transfers to and from reserves (94.2) -
1.15 Net effect of changes in accounting policies - -
1.16 Dividends paid or payable (0.2) (39.7)
- ------------------------------------------------------------------------------------------------------
1.17 RETAINED PROFITS (ACCUMULATED LOSSES) AT END OF
FINANCIAL PERIOD (445.7) (229.0)
- ------------------------------------------------------------------------------------------------------
PROFIT RESTATED TO EXCLUDE AMORTISATION OF GOODWILL
-------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
-------------------------------------
1.18 Profit (loss) from ordinary activities after
tax before outside equity interests
(ITEMS 1.7) and amortisation of goodwill 85.8 63.0
1.19 Plus (less) outside equity interests (0.4) 2.4
--------------------------------------
1.20 PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAX
(BEFORE AMORTISATION OF GOODWILL) ATTRIBUTABLE TO
MEMBERS 85.4 65.4
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Page 4
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
-------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
-------------------------------------
PROFIT (LOSS) FROM ORDINARY ACTIVITIES ATTRIBUTABLE TO MEMBERS
1.21 Profit (loss) from ordinary activities after tax (item 1.7) 83.9 60.2
1.22 Plus (less) outside equity interests (0.4) 2.4
1.23 PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAX, -------------------------------------
ATTRIBUTABLE TO MEMBERS 83.5 62.6
- -----------------------------------------------------------------------------------------------------
REVENUE AND EXPENSES FROM ORDINARY ACTIVITIES
-------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
-------------------------------------
1.24 Details of revenue and expenses
REVENUES
Sales revenue 839.5 756.0
Total cost of production (648.1) (581.9)
-------------------------------------
GROSS PROFIT 191.4 174.1
-------------------------------------
Other revenue from ordinary activities 9.5 10.0
Proceeds on sale of assets 41.1 113.2
Cost of assets sold (35.4) (100.8)
Share of net profit/(loss) of associates and joint
ventures accounted for using the equity method. 3.8 (1.1)
Exploration and evaluation expenses (17.8) (30.6)
Administration expenses (33.5) (29.4)
Borrowing costs (44.9) (52.5)
Other income/(expenses) from ordinary activities (9.3) (11.7)
SIGNIFICANT ITEMS INCLUDED IN RESULT
- gain on change of interest of a formerly controlled
entity (SEE ITEM 14.1) 54.5 -
- takeover costs (25.7) -
- writedown in receivables (18.0) -
- writedown in non-current assets (9.5) -
-------------------------------------
TOTAL SIGNIFICANT ITEMS 1.3 -
-------------------------------------
PROFIT FROM ORDINARY ACTIVITIES 106.2 71.2
-------------------------------------
Page 5
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
INTANGIBLE AND EXTRAORDINARY ITEMS
-----------------------------------------------------------------
Consolidated - current period
-----------------------------------------------------------------
Before tax Related tax Related outside Amount (after
$AM $AM equity interests tax) attributable
$AM to members
$AM
-----------------------------------------------------------------
2.1 Amortisation of goodwill 1.9 - - 1.9
2.2 Amortisation of other
intangibles - - - -
-----------------------------------------------------------------
2.3 Total amortisation of
intangibles 1.9 - - 1.9
- ---------------------------------------------------------------------------------------------------------
2.4 Extraordinary items (details) - - - -
-----------------------------------------------------------------
2.5 Total extraordinary items - - - -
- ---------------------------------------------------------------------------------------------------------
Page 6
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As shown in last annual
CURRENT HALF-YEAR report Previous half-year
A$M A$M A$M
------------------------------------------------------------
CURRENT ASSETS
4.1 Cash 358.1 344.8 257.2
4.2 Receivables 153.6 123.7 159.0
4.3 Inventories 166.5 169.5 167.7
4.4 Other financial assets 14.6 21.3 76.5
4.5 Prepaid mining costs 123.7 111.2 55.7
4.6 Other 35.5 29.4 33.5
------------------------------------------------------------
4.7 TOTAL CURRENT ASSETS 852.0 799.9 749.6
- --------------------------------------------------------------------------------------------------------------
NON-CURRENT ASSETS
4.8 Receivables 4.8 11.2 34.0
4.9 Tax assets 103.8 102.3 88.9
4.10 Investments (equity accounted) 348.8 244.0 293.9
4.11 Other financial assets 172.9 141.0 216.1
4.12 Development properties 151.2 499.5 546.8
4.13 Exploration and evaluation expenditure 180.4 151.7 179.9
4.14 Property, plant and equipment (net) 1,710.5 1,750.0 1,475.3
4.15 Intangibles (net) 42.3 44.2 46.1
4.16 Prepaid mining costs 24.7 25.7 74.8
4.17 Other 78.7 77.0 116.7
------------------------------------------------------------
4.18 TOTAL NON-CURRENT ASSETS 2,818.1 3,046.6 3,072.5
- --------------------------------------------------------------------------------------------------------------
4.19 TOTAL ASSET 3,670.1 3,846.5 3,822.1
- --------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
4.20 Payables 249.6 249.8 206.5
4.21 Interest bearing liabilities 127.1 114.0 110.0
4.22 Provisions 185.0 216.8 232.1
4.23 Tax liabilities 19.1 21.8 13.5
------------------------------------------------------------
4.25 TOTAL CURRENT LIABILITIES 580.8 602.4 562.1
- --------------------------------------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
4.27 Interest bearing liabilities 1,204.9 1,181.8 1,526.2
4.28 Provisions 223.0 268.9 335.0
4.29 Tax liabilities 261.2 255.0 191.9
4.30 Other 121.6 140.4 82.3
------------------------------------------------------------
4.31 TOTAL NON-CURRENT LIABILITIES 1,810.7 1,846.1 2,135.4
- --------------------------------------------------------------------------------------------------------------
4.32 TOTAL LIABILITIES 2,391.5 2,448.5 2,697.5
- --------------------------------------------------------------------------------------------------------------
4.33 NET ASSETS 1,278.6 1,398.0 1,124.6
- --------------------------------------------------------------------------------------------------------------
EQUITY
4.34 Capital/contributed equity 1,602.6 1,593.9 1,164.1
4.35 Reserves 72.5 71.4 83.7
4.36 Retained profits (accumulated losses) (445.7) (434.8) (229.0)
- --------------------------------------------------------------------------------------------------------------
4.37 EQUITY ATTRIBUTABLE TO MEMBERS OF THE
PARENT ENTITY 1,229.4 1,230.5 1,018.8
4.38 Outside equity interests in controlled entities 49.2 167.5 105.8
------------------------------------------------------------
4.39 TOTAL EQUITY 1,278.6 1,398.0 1,124.6
- --------------------------------------------------------------------------------------------------------------
4.40 Preference capital included as part of 4.37 nil nil nil
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Page 7
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
OTHER INFORMATION
---------------------------------------
Reconciliation of prima facie income tax to income tax expense CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
Operating profit before tax 106.2 71.2
=======================================
Income tax calculated at applicable rates 31.8 24.2
Tax effect of permanent differences (13.3) (8.9)
Timing differences recognised 1.3 -
Change in corporate tax rate - -
Benefit of prior year losses recouped -
Tax losses not recognised/(recognised) 3.6 -
Over allowance for tax payable in prior years (1.1) (4.3)
---------------------------------------
Income tax attributable to operating profit 22.3 11.0
---------------------------------------
EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
5.1 Opening balance 151.7 175.1
5.2 Expenditure incurred during current period 24.8 38.1
5.3 Expenditure written off during current period (22.3) (30.6)
5.4 Acquisitions, disposals, revaluation increments, etc 20.6 10.8
5.5 Expenditure transferred (to)/from mine properties 4.2 (13.5)
5.5 Foreign exchange movements 1.4 -
5.6 CLOSING BALANCE AS SHOWN IN THE CONSOLIDATED ---------------------------------------
STATEMENT OF FINANCIAL POSITION (ITEM 4.13) 180.4 179.9
- -----------------------------------------------------------------------------------------------------------------------
DEVELOPMENT PROPERTIES
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
6.1 Opening balance 499.5 310.7
6.2 Expenditure incurred during current period 22.9 21.2
6.3 Expenditure transferred from exploration and evaluation - -
6.4 Expenditure written off during current period - (16.5)
6.5 Acquisitions, disposals, revaluation increments, etc (296.1) 214.1
6.6 Foreign exchange movements 2.4 17.0
6.6 Expenditure transferred (to)/from Property, Plant & Equipment (77.5) 0.3
6.7 CLOSING BALANCE AS SHOWN IN THE CONSOLIDATED ---------------------------------------
STATEMENT OF FINANCIAL POSITION (ITEM 4.12) 151.2 546.8
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Page 8
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
=======================================
CASH FLOWS RELATED TO OPERATING ACTIVITIES
7.1 Receipts from customers 839.9 706.9
7.2 Payments to suppliers and employees (630.3) (556.9)
7.3 Dividends received from associates 11.4 10.3
7.4 Other dividends received - -
7.5 Interest and other items of similar nature received 10.3 14.4
7.6 Interest and other costs of finance paid (48.2) (59.5)
7.7 Income taxes paid (27.0) (28.0)
7.8 Other - 6.5
---------------------------------------
7.9 NET OPERATING CASH FLOWS 156.1 93.7
- -----------------------------------------------------------------------------------------------------------------------
CASH FLOWS RELATED TO INVESTING ACTIVITIES
7.10 Payment for purchases of property, plant and
equipment (104.6) (51.9)
7.11 Proceeds from sale of property, plant and equipment 1.3 0.9
7.12 Payments for exploration (24.8) (38.1)
7.12 Payments for development projects (22.9) (28.0)
7.12 Payment for purchases of investments (14.9) (9.8)
7.13 Proceeds from sale of investments 0.7 55.9
7.14 Loans to other entities (1.0) (1.9)
7.15 Loans repaid by other entities 4.5 66.0
7.16 Other - Interest capitalised on qualifying assets -
7.16 Other - Businesses acquired 0.2 0.5
7.16 Other - Businesses disposed (28.6) 9.2
---------------------------------------
7.17 NET INVESTING CASH FLOWS (190.1) 2.8
- -----------------------------------------------------------------------------------------------------------------------
CASH FLOWS RELATED TO FINANCING ACTIVITIES
7.18 Proceeds from issue of securities - -
7.19 Proceeds from borrowings 82.8 209.2
7.20 Repayment of borrowings (27.7) (238.3)
7.21 Dividends paid (7.2) (59.8)
7.22 Other - -
---------------------------------------
7.23 NET FINANCING CASH FLOWS 47.9 (88.9)
- -----------------------------------------------------------------------------------------------------------------------
7.24 NET INCREASE (DECREASE) IN CASH HELD 13.9 7.6
7.25 Cash at beginning of period 344.8 245.4
(see Reconciliation of cash)
7.26 Exchange rate adjustments to item 7.25 (0.6) 4.2
---------------------------------------
7.27 CASH AT END OF PERIOD 358.1 257.2
(see Reconciliation of cash)
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Page 9
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
NON-CASH FINANCING AND INVESTING ACTIVITIES
Details of financing and investing transactions which have had a material effect
on consolidated assets and liabilities but did not involve cash flows are as
follows.
The sale of Normandy's interest in the Ity mine and the Tasiast project resulted
in receivables being recognised totalling $33.9 million, in addition to cash
proceeds of $0.1 million.
During the period a controlled entity announced a takeover for Otter Gold Mines
Limited (Otter) whereby 1.9 of the controlled entity's shares were offered for
every 100 Otter shares. On the close of business 28 December 2001 the controlled
entity declared the offer unconditional. On this date acceptances were received
for 53.35% of shares in Otter. Otter was consolidated in Normandy's accounts
from 31 December 2001. As a result of the consolidation of Otter, Normandy's
total assets increased by $68.8 million and total liabilities increased by $47.5
million.
RECONCILIATION OF CASH
Reconciliation of cash at the end of the period (as shown in the ---------------------------------------
consolidated statement of cash flows) to the related items in the CURRENT HALF-YEAR Previous half-year
statement of financial position is as follows A$M A$M
- -----------------------------------------------------------------------------------------------------------------------
=======================================
8.1 Cash on hand and at bank 257.6 196.7
8.2 Deposits at call 52.9 42.1
8.3 Bank overdraft - -
8.4 Gold bullion 47.6 18.4
---------------------------------------
8.5 TOTAL CASH AT END OF PERIOD 358.1 257.2
- -----------------------------------------------------------------------------------------------------------------------
RATIOS
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
PROFIT BEFORE TAX / REVENUE
9.1 Consolidated profit(loss) from ordinary activities
before tax (item 1.5) as a percentage of revenue
(item 1.1) 11.24% 8.10%
- -----------------------------------------------------------------------------------------------------------------------
PROFIT AFTER TAX / EQUITY INTERESTS
9.2 Consolidated net profit (loss) from ordinary
activities after tax attributable to members (item
1.11) as a percentage of equity (similarly
attributable) at the end of the period (item 4.37) 6.79% 6.14%
- -----------------------------------------------------------------------------------------------------------------------
EARNINGS PER SECURITY (EPS)
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
10.1 Calculation of the following in accordance with
AASB 1027: Earnings per Share
(a) Basic EPS 3.7 3.6
(b) Diluted EPS 3.7 3.6
(c) Weighted average number of ordinary shares
outstanding during the period used in the
calculation of the Basic EPS 2,232,219,089 1,758,516,118
- -----------------------------------------------------------------------------------------------------------------------
NTA BACKING
11.1 Net tangible asset backing per ordinary security NOT APPLICABLE TO MINING COMPANIES
- -----------------------------------------------------------------------------------------------------------------------
Page 10
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- -----------------------------------------------------------------------------------------------------------------------
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
---------------------------------------
12.1 Interest revenue included in determining item 1.5 9.5 10.0
---------------------------------------
12.2 Interest revenue included in item 12.1 but not yet received 5.1 2.2
---------------------------------------
12.3 Interest costs excluded from borrowing costs,
capitalised in asset values - 6.8
---------------------------------------
12.4 Outlays (except those arising from the acquisition
of an existing business) capitalised in intangibles (if material) - -
---------------------------------------
12.5 Depreciation and amortisation (excluding
amortisation of intangibles) 142.5 119.5
---------------------------------------
12.6 Other specific relevant items not shown in item 1.24
- significant gain on sale of non-current assets - 14.3
---------------------------------------
CONTROL GAINED OVER ENTITIES HAVING MATERIAL EFFECT
13.1 Otter Gold Mines Limited (Otter) and controlled entities were acquired
effective 31 December 2001. Therefore the consolidated operating profit
from the acquired entities from the date of acquisition to 31 December
2001 was nil. Loss from ordinary activities and extraordinary items
after tax of Otter for the whole of the previous corresponding period
was $8.9 million.
Page 11
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
LOSS OF CONTROL OF ENTITIES HAVING MATERIAL EFFECT
14.1
(a) On 23 November 2001, Australian Magnesium Corporation Limited (AMC)
successfully completed an equity raising to fund the development of
the Stanwell Magnesium Project. New partly paid stapled securities
were issued and allotted on that date. In addition, to the fund
raising Normandy converted its loan to AMC of $25 million and
accrued interest of $2.6 million into ordinary shares in AMC.
The effect of these transactions has been that Normandy's effective
interest in AMC has been diluted from 62.6% to 22.8%, and
accordingly AMC is no longer controlled by Normandy. Consequently,
AMC has been deconsolidated from 23 November 2001, giving rise to a
gain on loss of control of $10 million.
From that date, AMC has been equity accounted in accordance with
Accounting Standard AASB 1016, "Accounting for Investments in
Associates". The effect of equity accounting AMC since original
acquisition date, including the effect of any change in ownership
interests, has been reflected in net profit or directly in reserves
(as appropriate). Where this has resulted in a net debit to a
reserve an amount has been transferred from retained earnings to
offset the debit.
MOVEMENTS IN CARRYING AMOUNT OF INVESTMENT IN AMC
A$M
Carrying amount at the beginning of the financial period -
Original cost of AMC prior to deconsolidation 119.9
Conversion of loan to equity 27.6
------------
147.5
Share of post acquisition losses and reserves (10.0)
Change in ownership interest of equity and reserves
reflected directly in equity (94.3)
Change in ownership interest in accumulated losses
reflected in net profit 54.5
------------
Total impact of initial adoption of equity accounting (49.8)
Share of net profit after tax since 23 November 2001 0.1
------------
Carrying amount of AMC at end of financial period. 97.8
============
Prior to completion of the equity raising, Normandy provided
financing arrangements to AMC, which confer certain rights to
subscribe for new equity in AMC. These rights have been
independently valued by Grant Samuel & Associates at between $28
million and $61 million.
(b) Normandy Mt Leyshon Limited ceased to be a controlled entity
effective 21 November 2001. The operating loss after tax of the
entity for the period was $1.3 million. The loss on the sale of the
entity was $1.0 million. Profit from ordinary activities and
extraordinary items after tax of Normandy Mt Leyshon Limited for the
whole of the previous corresponding period was $10.9 million.
(c) The shareholding in Societe des Mines d'Ity was disposed of in
December 2001. The operating profit after tax of the entity for the
period was $1.9 million. The profit on sale of the entity was $0.2
million. Profit from ordinary activities and extraordinary items
after tax of Societe des Mines d'Ity for the whole of the previous
corresponding period was $6.8 million.
Page 12
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
DIVIDENDS
15.1 Date the dividend is payable N/A
15.2 Record date to determine entitlements to the dividend (ie on the basis
of security holding balances established by 5.00pm) N/A
AMOUNT PER SECURITY
-------------------------------------------------------------------
Amount per Franked amount Amount per
security per security security of
foreign source
dividend
------------------------------------------------------------------------------------------------------------------
15.6 Interim dividend Current year NIL NOT APPLICABLE Nil
-----------------------------------------------
15.7 Previous year 2.5 1.10c franked at 34% Nil
------------------------------------------------------------------------------------------------------------------
TOTAL DIVIDEND PER SECURITY (INTERIM PLUS FINAL)
---------------------------------------
CURRENT HALF-YEAR Previous half-year
---------------------------------------
15.8 Ordinary securities NIL 44.1
15.9 Preference securities NIL Nil
HALF YEARLY REPORT - INTERIM DIVIDEND ON ALL SECURITIES
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
15.10 Ordinary securities 0.0 44.1
15.11 Preference securities - -
15.12 Other equity instruments - -
---------------------------------------
15.13 Total 0.0 44.1
---------------------------------------
DETAILS OF AGGREGATE SHARE OF PROFITS (LOSSES) OF ASSOCIATES AND JOINT
VENTURE ENTITIES
---------------------------------------
CURRENT HALF-YEAR Previous half-year
A$M A$M
---------------------------------------
16.1 Profit (loss) from ordinary activities before income tax 4.6 (1.0)
16.2 Income tax on ordinary activities (0.8) (0.1)
16.3 PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER INCOME TAX 3.8 (1.1)
16.4 Extraordinary items net of tax - -
16.5 NET PROFIT (LOSS) 3.8 (1.1)
16.6 Outside equity interests - -
---------------------------------------
16.7 NET PROFIT (LOSS) ATTRIBUTABLE TO MEMBERS 3.8 (1.1)
- -----------------------------------------------------------------------------------------------------------------------
Page 13
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- -------------------------------------------------------------------------------------------------------------------------------
MATERIAL INTERESTS IN ENTITIES WHICH ARE NOT CONTROLLED ENTITIES
---------------------------------------------------------------------------------------
Percentage of ownership interest Contribution to net profit (loss)
NAME OF ENTITY held at end of period or date of (item 1.9)
disposal
---------------------------------------------------------------------------------------
CURRENT HALF-YEAR Previous half-year CURRENT HALF-YEAR Previous half-year
---------------------------------------------------------------------------------------
17.1 EQUITY ACCOUNTED
ASSOCIATES AND
JOINT VENTURE
ENTITIES
Australian Magnesium Corporation
Ltd (SEE ITEM 14.1) 22.8% * 0.1 (0.2)
AGR JV Partnership 50.0% - 3.0 -
TVX Normandy Americas (Canada)
Inc. 49.9% 49.9% 0.4 (0.2)
TVX Normandy Amercias (Cayman)
Inc. 49.9% 49.9% 0.3 (0.7)
- -------------------------------------------------------------------------------------------------------------------------------
17.2 TOTAL 3.8 (1.1)
- -------------------------------------------------------------------------------------------------------------------------------
17.3 Other material interests
- -------------------------------------------------------------------------------------------------------------------------------
17.4 TOTAL 3.8 (1.1)
- -------------------------------------------------------------------------------------------------------------------------------
* As at 31 December 2000 Australian Magnesium Corporation Limited was a
controlled entity.
Page 14
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- -------------------------------------------------------------------------------------------------------------------------------
ISSUED AND QUOTED SECURITIES AT END OF THE CURRENT PERIOD
---------------------------------------------------------------------------------------
Category of Securities Total number Number quoted Issue price per Amount paid up
security (cents) per security
(cents)
---------------------------------------------------------------------------------------
18.1 PREFERENCE SECURITIES NIL NIL N/A N/A
(DESCRIPTION)
---------------------------------------------------------------------------------------
18.2 Changes during current
period
(a) increases through issues NIL NIL N/A N/A
(b) decreases through
returns of capital,
buybacks, redemptions NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
18.3 ORDINARY SECURITIES 2,237,861,347 2,237,861,347
---------------------------------------------------------------------------------------
18.4 Changes during current
period
(a) increases through issues (1) 6,567,748 6,567,748
(b) decreases through
returns of capital,
buybacks, redemptions NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
18.5 CONVERTIBLE DEBT SECURITIES NIL NIL N/A N/A
--------------------------------------------------------------------------------------
18.6 Changes during current
period
(a) increases through issues NIL NIL N/A N/A
(b) decreases through
securities matured, converted NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
18.7 OPTIONS Exercise price Expiry date
---------------------------------------
--------------------------------------------------------------------------------------
18.8 Issued during current period NIL NIL N/A N/A
--------------------------------------------------------------------------------------
18.9 Exercised during current period 6,567,748 NIL N/A N/A
--------------------------------------------------------------------------------------
18.10 Expired during current period NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
18.11 DEBENTURES NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
18.12 UNSECURED NOTES NIL NIL N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
(1) The movement in ordinary shares comprises:
Options exercised
- Unlisted - 1:1.101 basis 95,331
- Unlisted - 1:1 basis 6,472,417
-------------
6,567,748
-------------
Page 15
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
COMMENTS BY DIRECTORS
19.1 BASIS OF FINANCIAL REPORT PREPARATION
This is a general purpose financial report prepared in accordance with
the listing rules and AASB 1029: Interim Financial Reporting. It does
not include notes of the type normally included in the annual financial
report. The financial report should be read in conjunction with the last
annual report and any announcements to the market made by the entity
during the period.
19.2 MATERIAL FACTORS AFFECTING THE REVENUES AND EXPENSES OF THE ECONOMIC
ENTITY FOR THE CURRENT PERIOD Refer attached Financial Report.
19.3 A DESCRIPTION OF EACH EVENT SINCE THE END OF THE CURRENT PERIOD WHICH
HAS HAD A MATERIAL EFFECT AND IS NOT RELATED TO MATTERS ALREADY
REPORTED, WITH FINANCIAL EFFECT QUANTIFIED.
Nil
19.4 FRANKING CREDITS AVAILABLE AND PROSPECTS FOR PAYING FULLY OR PARTLY
FRANKED DIVIDENDS FOR THE NEXT YEAR Franking credits available as at 31
December 2001 were $37,685,983.
19.5 CHANGES IN ACCOUNTING POLICIES SINCE THE LAST ANNUAL REPORT ARE
DISCLOSED AS FOLLOWS
Nil
19.6 REVISIONS IN ESTIMATES ARE DISCLOSED AS FOLLOWS Changes in mineral
inventories used as a basis for determining depreciation and
amortisation and mine completion charges resulted in a reduction in
these charges of $18.2 million during the period.
19.7 CHANGE IN CONTINGENT LIABILITIES OR ASSETS ARE DISCLOSED AS FOLLOWS
Contingent liabilities existing at balance date that have changed since
last reporting date are:
Normandy Mining Limited and several of its wholly owned entities have
provided guarantees over a fully drawn financing facility provided by an
Australian bank to Australian Magnesium Corporation Limited (AMC)
totalling $72 million. This facility was used by AMC in part to repay a
fully drawn $38.6M bank facility and reduce foreign currency hedging
obligations provided by a syndicate of banks.
Wholly owned entities continue to provide guarantees over the treasury
obligations of other wholly owned entities. As at 31 December 2001 the
marked to market deferred losses in respect of these obligations
decreased to $419 million as compared to $510 million at 30 June 2001.
The following contingent liabilities have arisen since the last
reporting date:
A wholly owned entity of Normandy Mining Limited has agreed to subscribe
for $100 million of shares in AMC between 31 October 2002 and 31 January
2003. Normandy Mining Limited has guaranteed the performance of the
obligation by the wholly owned entity.
During the period the Normandy Group engaged advisors to provide advice
in relation to the takeover bid by AngloGold and any third party offer.
The terms of the engagements include fees that would become payable in
the event that more than 50% of Normandy is acquired under a higher
AngloGold or third party offer. If the current Newmont Mining
Corporation (NMC) offer were to be successful further fees payable to
advisors are estimated at not less than $22 million.
Normandy Mining Limited has agreed to pay $38.3 million to NMC as a
compensating amount in relation to costs, expenses and damages incurred
by NMC under certain predetermined circumstances in respect of its
takeover offer for the company. Normandy Mining Limited has also
indemnified the ANZ Banking Group (ANZ) in respect of a bank guarantee
issued by the ANZ to NMC to secure this arrangement.
A controlled entity of Normandy Mining Limited has indemnified various
banks in respect of guarantees and letters of credit given for
satisfactory contractual performance in relation to exploration and
mining tenements. Total indemnities given at 31 December 2001 are
NZ$8,035,740 and A$438,000. The majority relates to environmental
bonding requirements for the Martha Mine Expansion.
A former Chairman and Chief Executive Officer of a controlled entity has
made a claim in excess of $1.9 million against that controlled entity
under an employment contract. The controlled entity rejects the claim
and awaits the delivery by the claimant of points of claim, under the
arbitration process. The maximum amount to which the directors believe
the controlled entity may be exposed in respect of this claim has been
provided for in the Financial Statements.
Page 16
NORMANDY MINING LIMITED
APPENDIX 4B
ABN 86 009 295 765
HALF YEARLY REPORT
- ------------------------------------------------------------------------------------------------------------------------------------
PRIMARY REPORTING - BUSINESS SEGMENTS
---------------------------------------------------------------------------------------------------------------------
External Sales Revenue Other Revenue Total Revenue Segment Profit Total Assets Total Liabilities
---------------------------------------------------------------------------------------------------------------------
DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Gold 695.8 580.2 38.8 - 734.6 580.2 203.3 175.9 3,101.0 2,626.7 2,391.5 2,697.5
Base metals 87.9 105.8 - - 87.9 105.8 (7.1) 7.5 179.6 333.8 0.0 0.0
Industrial
minerals 0.0 32.6 54.5 - 54.5 32.6 0.6 (0.6) 97.8 381.1 0.0 0.0
Exploration 0.0 0.0 - - 0.0 0.0 (22.3) (27.9) 180.4 179.9 0.0 0.0
---------------------------------------------------------------------------------------------------------------------
783.7 718.6 93.3 - 877.0 718.6 174.5 154.9 3,558.8 3,521.5 2,391.5 2,697.5
Unallocated 55.8 37.4 11.8 123.2 67.6 160.6 (68.3) (83.7) 111.3 300.6 0.0 0.0
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated total 839.5 756.0 105.1 123.2 944.6 879.2 106.2 71.2 3,670.1 3,822.1 2,391.5 2,697.5
- ------------------------------------------------------------------------------------------------------------------------------------
Additional information;
$M
(1) Depreciation and amortisation included in Dec 2001 Segment Profit; Gold 121.7
Base metals 9.2
Unallocated 11.6
------------
Total 142.5
------------
(2) Other non-cash costs included in Dec 2001 Segment Profit; Gold 7.3
Base metals 4.9
Unallocated 0.2
------------
Total 12.4
------------
Profit Investment
(3) Information regarding associates;
Gold 3.1 288.9
Industrial Minerals 7.8 59.9
-----------------
Total 10.9 348.8
-----------------
GEOGRAPHICAL SEGMENTS
---------------------------------------------------------------------------------------------------------------------
External Sales Revenue Other Revenue Total Revenue Segment Profit Total Assets Total Liabilities
---------------------------------------------------------------------------------------------------------------------
DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000 DEC 2001 Dec 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Australia &
New Zealand 740.2 725.5 71.1 10.0 811.3 735.5 95.4 90.9 2,772.9 3,046.4 2,212.5 2,532.5
Turkey & Greece 25.3 12.4 10.4 - 35.7 12.4 8.1 (10.4) 143.8 122.4 83.4 71.7
Africa 21.1 5.6 23.6 - 44.7 5.6 (1.6) (8.4) 88.9 270.4 79.2 93.3
North America 52.9 12.5 - - 52.9 12.5 3.0 (0.2) 503.6 168.3 16.4 0.0
South America 0.0 0.0 - 113.2 0.0 113.2 1.3 (0.7) 160.9 214.6 0.0 0.0
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated total 839.5 756.0 105.1 123.2 944.6 879.2 106.2 71.2 3,670.1 3,822.1 2,391.5 2,697.5
- ------------------------------------------------------------------------------------------------------------------------------------
Page 17
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
DIRECTORS' DECLARATION
The Directors declare that:
a) The attached financial statements and notes thereto comply with Accounting
Standards;
b) The attached financial statements and notes thereto give a true and fair view
of the financial position and performance of the consolidated entity;
c) In the Directors' opinion, the attached financial statements and notes
thereto are in accordance with the Corporations Act 2001; and
d) In the Directors' opinion, there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors made pursuant to s.295
(5) of the Corporations Act 2001.
/S/ R J CHAMPION DE CRESPIGNY /S/ K H SPENCER
R J CHAMPION DE CRESPIGNY K H SPENCER
Director Director
Adelaide, 5 February 2002
Page 18
APPENDIX 4B
NORMANDY MINING LIMITED
ABN 86 009 295 765
HALF YEARLY REPORT
- --------------------------------------------------------------------------------
COMPLIANCE STATEMENT
1 This report has been prepared in accordance with AASB Standards or other
standards acceptable to ASX.
2 This report, and the accounts upon which the report is based, use the
same accounting policies.
3 This report does give a true and fair view of the matters disclosed
4 This report is based on accounts which have been subject to review.
5 The entity does have a formally constituted Audit Committee.
Ms P F Carr
SECRETARY
Enquiries to
Mr. Peter Bird
Executive General Manager - Investor Relations
(08) 8303 1700
Page 19
INDEPENDENT REVIEW REPORT TO THE MEMBERS
OF NORMANDY MINING LIMITED
SCOPE
- -----
We have reviewed the attached financial report of Normandy Mining Limited in the
form of Appendix 4B of the Australian Stock Exchange (ASX) Listing Rules,
including the directors' declaration, for the half-year ended 31 December 2001,
but excluding the following sections:
a) material factors affecting the revenues and expenses of the consolidated
entity for the current period (page 16); and
b) compliance statement (page 19).
The financial report includes the consolidated financial statements of the
consolidated entity comprising the disclosing entity and the entities it
controlled at the end of the half-year or from time to time during the half-year
The disclosing entity's directors are responsible for the financial report. We
have performed an independent review of the financial report in order to state
whether, on the basis of the procedures described, anything has come to our
attention that would indicate that the financial report is not presented fairly
in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting"
issued in Australia and other mandatory professional reporting requirements,
statutory requirements and ASX Listing Rules as they relate to Appendix 4B, so
as to present a view which is consistent with our understanding of the
consolidated entity's financial position, and performance as represented by the
results of its operations and its cash flows, and in order for the disclosing
entity to meet its obligations to lodge the financial report with the Australian
Securities and Investments Commission and the ASX.
Our review has been conducted in accordance with Australian Auditing Standards
applicable to review engagements. A review is limited primarily to inquiries of
the entity's personnel and analytical procedures applied to the financial data.
These procedures do not provide all the evidence that would be required in an
audit, thus the level of assurance provided is less than given in an audit. We
have not performed an audit and, accordingly, we do not express an audit
opinion.
STATEMENT
- ---------
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half-year financial report of Normandy
Mining Limited is not in accordance with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's
financial position as at 31 December 2001 and of its performance
for the half-year ended on that date; and
(ii) complying with Accounting Standard AASB 1029 "Interim Financial
Reporting" and the Corporations Regulations 2001; and
(b) other mandatory professional reporting requirements and ASX Listing
Rules as they relate to Appendix 4B.
/s/ DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
/s/ Timothy Biggs
Timothy Biggs
Partner
Chartered Accountants
Adelaide, 5 February 2002
The liability of Deloitte Touche Tohmatsu is limited by, and to the extent of,
the Accountants' Scheme under the Professional Standards Act 1994 (NSW)
Page 20
[LOGO]
NORMANDY MINING LIMITED
FINANCIAL REPORT
INDEX
-----
Profit Result ..................................... 2
Cash Flows ........................................ 3
Balance Sheet ..................................... 4
Investor Information .............................. 4
[GRAPHIC]
N O R M A N D Y
M I N I N G L I M I T E D ABN 86 009 295 765
- ------------------------------------------------------------------------------
Financial Report to Shareholders
Six Months to 31 December 2001
A SUSTAINED FOCUS ON THE CORE ELEMENTS OF COST MAINTENANCE, GROWTH AND VALUE
GENERATION ... DELIVERING A 31% UPLIFT IN SIX MONTH PROFIT TO A$83.5 MILLION.
- ------------------------------------------------------------------------------
PROFIT
- - $83.5 million ($62.6M) up 31% on the previous half year
- - Operating contribution $191.4 million ($174.1M)
GOLD
- - Consolidated contribution, $199.6 million ($168.0M)
- - Consolidated sales 1.225 million ounces (1.049Moz)
- - Net realised price $577 per ounce ($552/oz)
- - Total cash cost $310 per ounce ($297/oz)
NON-GOLD
- - Consolidated contribution ($8.2) million ($6.1M)
CASH FLOW
- - From operating activities $156.1 million ($93.7M)
- - Cash balance $358.1 million ($344.8M June 2001)
BALANCE SHEET
- - Net debt to net debt and equity 43% (40% June 2001)
- - Shareholder funds $1,278.6 million ($1,398.0M June 2001)
- - gearing ratio on target, allowing for a reduction in total hedged ounces from
11.2 million ounces to 9.9 million ounces
5 FEBRUARY 2002
NOTE: (1) Previous December half figures italicised in brackets.
(2) All figures in Australian dollars, unless specified otherwise.
For further information, please contact:
Peter Bird, Executive General Manager - Investor Relations
Telephone: +61 8 8303 1705 Facsimile: +61 8 8303 1994
E-mail: investor@normandy.com.au Web Site: www.normandy.com.au
PROFIT RESULT ...
- -----------------
SIMPLIFIED FINANCIAL RESULTS
(A$M) 3 mths to 3 mths to 6 mths to 6 mths to
31 Dec 30 Sep 31 Dec 31 Dec
2001 2001 2001 2000
- ------------------------------------------------------------------------------
SALES REVENUE ...................... 409.8 429.7 839.5 756.0
Cost of production ................. (251.2) (256.1) (507.3) (459.9)
Depreciation & amortisation ........ (59.7) (71.8) (131.5) (110.4)
Mine closure ....................... (4.4) (4.9) (9.3) (11.6)
------------------------------------------
GROSS PROFIT(1) .................... 94.5 96.9 191.4 174.1
------------------------------------------
Share of net profit of associates .. 1.6 2.2 3.8 (1.1)
Exploration provisions
& write-offs ..................... (8.6) (9.2) (17.8) (30.6)
Administration expenses ............ (18.3) (15.2) (33.5) (29.4)
Borrowing costs .................... (20.7) (24.2) (44.9) (52.5)
Other income/(expenses) ............ 4.3 1.6 5.9 10.7
Significant items;
Gain on change in AMC
ownership interest.............. 54.5 -- 54.5 --
Takeover costs ................... (25.7) -- (25.7) --
Asset writedowns ................. (27.5) -- (27.5) --
------------------------------------------
PROFIT/(LOSS) FROM ORDINARY
ACTIVITIES ......................... 54.1 52.1 106.2 71.2
Income tax expense relating
to ordinary activities ........... (9.8) (12.5) (22.3) (11.0)
------------------------------------------
PROFIT/(LOSS) FROM ORDINARY
ACTIVITIES AFTER RELATED INCOME
TAX EXPENSE ........................ 44.3 39.6 83.9 60.2
Outside equity interests ........... 3.8 (4.2) (0.4) 2.4
------------------------------------------
NET PROFIT/(LOSS) ATTRIBUTABLE
TO MEMBERS OF NORMANDY MINING
LIMITED .......................... 48.1 35.4 83.5 62.6
- ------------------------------------------------------------------------------
Operating profit before significant
items attributable to members
of Normandy Mining Limited ....... 46.8 35.4 82.2 62.6
Significant items included in
operating profit/(loss) before
outside equity interests (2) ..... 1.3 -- 1.3 --
Operating profit after significant
items attributable to members
of Normandy Mining Limited ....... 48.1 35.4 83.5 62.6
- ------------------------------------------------------------------------------
(1) See table on page 3 for detail by operation
(2) No outside equity interest or income tax applicable
Significant items include:
o a $54.5 million gain on change in Australian Magnesium Corporation (AMC)
ownership interest, comprising $10.0 million previously consolidated AMC
losses recognised upon loss of control and $44.5 million representing the
change in Normandy's interest in AMC's historical accumulated losses;
o takeover related costs incurred and accrued to 31 December were $25.7 million
(a minimum additional $22 million in advisor fees has been disclosed as a
contingent liability); and
o asset writedowns of $27.5 million relating to receivables, listed investments
and the Mastra project in Turkey.
Profit attributable to Normandy shareholders, excluding significant items, was
$82.2 million for the six months to December 2001, an increase of 31% over the
previous corresponding half year.
Gross profit from gold operations increased 19% to $199.6 million due to higher
consolidated gold production of 1.205 million ounces, up 11%. Higher production
at Tanami and Bronzewing, together with new contributors Ovacik and Midas, have
more than compensated for the loss of gold output from Mt Leyshon's cessation
and the lower Super Pit head grade encountered in Kalgoorlie.
The average realised gold price was $577/oz ($562/oz) based on consolidated
gold sales of 1.225 million ounces. The average spot price for the half year
was $537/oz.
Average total production cost increased by $10/oz to $416/oz. Non-cash costs
remained steady at $106/oz, however cash costs of production increased by 3% to
$310/oz mainly as a result of the difficulties at the Super Pit in the
September quarter.
Non-gold operations had a negative contribution of $8.2 million mainly
reflecting the impact of lower spot zinc prices on Golden Grove. The average
realised zinc price for the half was 65 cents/lb compared to 85 cents/lb
for the previous corresponding period.
Normandy's share of associates results includes an inaugural contribution from
the Australian Gold Refinery partnership covering the period from April 2001 in
addition to the share of results from TVX Normandy Americas.
Exploration provisions and writeoffs have decreased by 42% reflecting the
decision taken last year to decrease global expenditure and focus on
projects within 150km of existing infrastructure.
Administration expenses increased by 4% from $26.80/oz to $27.80/oz.
Borrowing costs have decreased as the Group has maintained its gearing at or
near the 40% level.
2
FINANCIAL REPORT
FOR THE TWELVE MONTHS TO 31 DECEMBER 2001
CASH FLOWS ...
- ---------------------------------------------------------------------------
SIMPLIFIED STATEMENT OF CASH FLOWS
(A$M) 6 months to 12 months to
31 December 30 June
2001 2001
- ----------------------------------------------------------------------------
OPERATING ACTIVITIES
Receipts from customers ........................ 839.9 1,576.6
Payments to suppliers & employees .............. (630.3) (1,186.9)
Dividends received from associates ............. 11.4 42.6
Interest paid .................................. (48.2) (93.8)
Income tax paid ................................ (27.0) (38.9)
Other .......................................... 10.3 22.5
-----------------------
NET OPERATING CASH FLOWS ......................... 156.1 322.1
-----------------------
INVESTING ACTIVITIES
Payments for property, plant & equipment ....... (104.6) (146.5)
Payments for exploration ....................... (24.8) (62.8)
Payments for development projects .............. (22.9) (87.8)
Payment for purchase of investments ............ (14.9) --
Proceeds from sale of investments .............. 0.7 130.3
Loans repaid by other entities ................. 4.5 113.0
Businesses acquired/disposed ................... (28.4) 120.1
Other .......................................... 0.3 13.5
-----------------------
NET INVESTING CASH FLOWS ......................... (190.1) 79.8
-----------------------
FINANCING ACTIVITIES
Net proceeds from/(repayment of) borrowings .... 55.1 (302.4)
Dividends paid ................................. (7.2) (95.2)
Proceeds from issue of securities .............. -- 93.8
-----------------------
NET FINANCING CASH FLOWS ......................... 47.9 (303.8)
-----------------------
NET INCREASE/(DECREASE) IN CASH HELD ............. 13.9 98.1
Cash at beginning of period .................... 344.8 245.4
Exchange rate adjustments ...................... (0.6) 1.3
CASH AT END OF PERIOD ............................ 358.1 344.8
-----------------------
OPERATIONAL GROSS PROFIT
(A$M) 3 mths to 3 mths to 6 mths to 6 mths to
31 Dec 30 Sep 31 Dec 31 Dec
2001 2001 2001 2000
- ------------------------------------------------------------------------------
GOLD
Yandal ........................ 12.8 9.6 22.4 28.9
Kalgoorlie .................... 22.0 19.8 41.8 52.7
Tanami ........................ 29.7 36.1 65.8 36.8
Pajingo ....................... 15.0 12.6 27.6 22.6
Boddington .................... 8.7 9.2 17.9 9.9
Midas ......................... (0.3) 3.9 3.6 --
Martha ........................ 7.5 0.2 7.7 5.3
Ovacik ........................ 5.5 2.6 8.1 --
Other ......................... (1.1) 5.8 4.7 11.8
-------------------------------------------
Total ......................... 99.8 99.8 199.6 168.0
NON-GOLD
Golden Grove .................. 1.2 (4.0) (2.8) 17.4
Other ......................... (6.5) 1.1 (5.4) (11.3)
-------------------------------------------
Total ......................... (5.3) (2.9) (8.2) 6.1
-------------------------------------------
Total ......................... 94.5 96.9 191.4 174.1
- ------------------------------------------------------------------------------
Net cash flow from operating activities was $156.1 million for the 6 months to
December 2001.
Normandy NFM's operating cash inflow before tax increased by 119% to $88.4
million, while the Group benefited from higher cash inflow from Bronzewing and
Jundee as well as new operating cash contributions from Midas and Ovacik.
The stronger underlying cash inflows from operations has more than compensated
for the decrease in dividends from TVX Normandy Americas and higher income tax
payments incurred by Normandy NFM.
Capital expenditure on property, plant and equipment includes:
o $35.6 million at Midas, including $10.1 million on underground development
and $19.9 million on mining equipment, mainly trucks;
o $17.0 million at Tanami, which includes $9.2 million on development of
Groundrush;
o $11.4 million at Jundee, mainly comprising decline and mine development; and
o $11.2 million at Pajingo on mobile equipment as part of switch to owner
mining.
Development project expenditure largely reflects costs capitalised by AMC on
the magnesium project while it was consolidated by Normandy.
Cash balances disposed as part of sales of businesses totalled $28.4 million
mainly due to Mt Leyshon and AMC.
During the half year, the Group has drawn down a further $70 million on its
syndicated corporate facility and has repaid about $15 million in project
finance debt.
3
BALANCE SHEET ...
- ------------------------------------------------------------------------------
SIMPLIFIED STATEMENT OF FINANCIAL POSITION
(A$M)
31 December 30 June
2001 2001
- -------------------------------------------------------------------------------
CURRENT ASSETS
Cash, bank bills & gold bullion .............. 358.1 344.8
Receivables .................................. 153.6 123.7
Inventories .................................. 166.5 169.5
Other ........................................ 173.8 161.9
-----------------------------
852.0 799.9
-----------------------------
NON-CURRENT ASSETS
Investments in associates .................... 348.8 244.0
Exploration & evaluation ..................... 180.4 151.7
Development properties ....................... 151.2 499.5
Property, plant & equipment .................. 1,710.5 1,750.0
Other ........................................ 427.2 401.4
-----------------------------
2,818.1 3,046.6
-----------------------------
TOTAL ASSETS ................................... 3,670.1 3,846.5
CURRENT LIABILITIES
Accounts payable ............................. 249.6 249.8
Interest-bearing liabilities ................. 127.1 114.0
Other ........................................ 204.1 238.6
-----------------------------
580.8 602.4
-----------------------------
NON-CURRENT LIABILITIES
Interest-bearing liabilities ................. 1,204.9 1,181.8
Other ........................................ 605.8 664.3
-----------------------------
1,810.7 1,846.1
-----------------------------
TOTAL LIABILITIES .............................. 2,391.5 2,448.5
NET ASSETS ..................................... 1,278.6 1,398.0
EQUITY
Contributed equity ........................... 1,602.6 1,593.9
Reserves ..................................... 72.5 71.4
Retained profits/(accumulated losses) ........ (445.7) (434.8)
-----------------------------
Equity attributable to members of
Normandy Mining Limited ...................... 1,229.4 1,230.5
Outside equity interests in
controlled entities ........................ 49.2 167.5
-----------------------------
TOTAL EQUITY ................................... 1,278.6 1,398.0
-----------------------------
The balance sheet remains strong. Net debt was largely unchanged, however
following the deconsolidations of AMC, Mt Leyshon and Ity, equity attributable
to outside equity interests reduced by $118.3 million, resulting in a slight
increase in the gearing ratio to 43%.
The increase in receivables reflects the consideration owing for the sale of
Ity in December 2001.
Investments increased due to the acquisition of the 50% interest in the AGR
partnership and the reversion to an equity investment in AMC following their
equity issue and Normandy's loss of control.
Exploration and evaluation increased as a result of the fair valuation applied
to the exploration interests of Otter Gold Mines Limited.
The decrease in development properties reflects the deconsolidation of the AMC
project and the reclassification of Ovacik to property, plant and equipment
now that it is in operation.
Interest-bearing liabilities at 31 December comprise A$270 million drawn under
a A$490 million syndicated corporate facility, US$300 million Yandal Notes
(non-recourse to Normandy), US$250 million Normandy Notes, project financing
relating to Kasese (US$40M) and Ovacik (US$37M), and A$30 million in bank
debt from Otter Gold Mines Limited.
Other liabilities decreased in line with the $46 million allocation of deferred
hedge gains to revenue.
Total equity decreased despite the $83.5 million net profit and no interim
dividend. This was due to the removal of AMC outside equity interests of
$119 million and a net $40 million reduction in retained earnings from the
deconsolidation of AMC.
HEDGING
As previously announced, Normandy has revised its gold hedging policy, reducing
the minimum hedge ratio from 60% to 45% of reserves, with Ovacik and Midas
remaining unhedged. As a consequence, the hedge book was reduced in January
2002 with the buy-back of 1.3 million ounces of long term fixed price forward
contracts on a cash neutral basis.
DIVIDENDS
Due to the currency of Newmont Mining Corporation's takeover offer for Normandy,
the Normandy Board has resolved not to declare a dividend.
INVESTOR INFORMATION
- -------------------------------------------------------------------------------
BOARD OF DIRECTORS
RJ Champion de Crespigny ..............................Chairman & CEO
MS Hamson .............................................Non-Executive Director
P Lassonde ............................................Non-Executive Director
BG McKay ..............................................Non-Executive Director
JB Prescott AC ........................................Non-Executive Director
KH Spencer AM .........................................Non-Executive Director
B Wheelahan ...........................................Non-Executive Director
REGISTERED & PRINCIPAL OFFICE
100 Hutt Street, Adelaide 5000, SA, Australia
Tel: +61 8 8303 1700; Fax: +61 8 8303 1900
E-mail: investor@normandy.com.au
PF Carr ...............................................Company Secretary
ISSUED CAPITAL
At 31 December 2001, issued capital was 2,237,861,347 shares.
SHAREHOLDER ENQUIRIES
Matters relating to shares held, change of address, tax file number and
dividends should be directed to the Share Registry:
National Shareholder Services Pty Limited
100 Hutt Street, Adelaide 5000, SA, Australia
Tel: +61 8 8232 0003; Fax: +61 8 8232 0072
E-Mail: shareregistry@normandy.com.au
STOCK EXCHANGE LISTINGS
Australian Stock Exchange ..............................Ticker Symbol NDY
Toronto Stock Exchange .................................Ticker Symbol NDY
ADS DEPOSITARY
The Bank of New York,
101 Barclay Street, New York, NY 10286
Tel: +1 212 815 2204; Fax: +1 212 571 3050
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