METALS X LIMITED The Boardof Metals XLimited("Metals X") ispleasedtoreleaseitshalf-yearresultsfortheperiodended 31 December 2016, which include the gold business unit up until 30 November 2016.
KEY FINANCIAL HIGHLIGHTS | HALF-YEAR TO 31 / 12 / 2016 A$M | HALF-YEAR TO 31 / 12 / 2015 A$M |
Revenue | 128.0 | 36.4 |
Operating (EBITDA) | 30.1 | 7.0 |
Profit before impairments and gain on Demerger | 14.4 | 0.7 |
Gain on Westgold Demerger (2) | 237.8 | - |
Impairments (1) | (72.9) | (0.2) |
Net profit after tax | 145.2 | 0.8 |
Cashflow from operating activities | 1.8 | 12.5 |
Cash outflow used in investing activities | (120.6) | (70.4) |
Cashflow from/(used in) financing activities | 107.8 | (10.8) |
Cash and working capital (at 31.12.2016) | 114.5 | 34.4 |
Net assets (at 31.12.2016) | 213.4 | 392.1 |
Earnings per share (cents per share) | 24.96 | 0.19 |
Metals X has undertaken an assessment of the carrying value of all of its assets that has resulted in an impairment charge for the Central Musgrave Nickel Project of $72.9M. Metals X's strategy is to further enhance the value of the project by continuing to assess metallurgical processing alternatives and advancing discussions with potential joint venture parties for the co-development of the project, while nickel prices remain depressed.
On 24 November 2016 Metals X shareholders approved the demerger of Metals X's gold assets via a capital reduction and in specie distribution of all the shares in Westgold Resources Limited ("Westgold"). On 6 December 2016 Westgold commenced trading on the ASX. The fair value of Westgold at demerger was
$513.1M, which was determined by multiplying the number of Westgold shares on issue (304,671,487) by the volume weighted average price of Westgold shares over the first five days of trading on the ASX ($1.684 per share). Net profit after tax for the gold division for the period was $9.3M and net assets at demerger were
$284.6M resulting in a gain on demerger of $237.8M.
Commenting on the results, Metals X Managing Director, Warren Hallam, said:
"The financials demonstrate a robust half-year performance for the Company. The demerger of the gold division was completed as planned in the last quarter of 2016, with the Company now focussed on being a diversified base metals miner. Metals X is in a strong financial position with two profitable divisions (copper and tin), a world-class nickel development project, no debt and cash and working capital of $115 million."
ENQUIRIESWarren Hallam Rod Corps
Managing Director Manager - Investor Relations
e: warren.hallam@metalsx.com.au e: rod.corps@metalsx.com.au
ASX Code: MLX Level 3, 18-32 Parliament Place
West Perth WA 6005 Australia
reception@metalsx.com.au www.metalsx.com.au
Metals X Limited published this content on 28 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 February 2017 08:25:14 UTC.
Original documenthttps://www.metalsx.com.au/system/announcements/815/20170228_Half_Year_Results.pdf
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