RNS Number:7163R
Metorex Ld
05 November 2003

Metorex Limited

Registration number 1934/005478/06

Incorporated in the Republic of South Africa

Listed on the JSE Securities Exchange South Africa and London Stock Exchange

Share code MTX

ISIN code ZAE000022745 Issuer code MEMTX

www.metorexgroup.com ("the Group")



Unaudited consolidated results for the quarter ended 30 September 2003



Barberton exceeds expectations

Chibuluma South underground development commences

Middelburg Townlands project progressing

Group generates cash of R22,4 million during the quarter

O'Okiep operations under review



Consolidated income statement
                                                                               Quarter ended               Quarter ended
                                                                           30 September 2003                30 June 2003
                                                                                 (Unaudited)                 (Unaudited)
                                                                                        R000                        R000
Mineral sales
 Copper                                                                               53 719                      68 992
 Zinc                                                                                 18 493                      18 706
 Coal                                                                                 45 330                      47 091
 Fluorspar                                                                            33 012                      28 273
 Gold                                                                                103 519                      31 992
 Antimony                                                                             24 888                      28 791
 Other                                                                                 2 283                       1 851
Gross revenue                                                                        281 244                     225 696
Realisation costs                                                                     35 452                      35 103
On-mine revenue                                                                      245 792                     190 593
Cost of production                                                                   246 321                     196 540
 cash costs                                                                          221 678                     163 163
 stock movement                                                                        7 669                      22 542
 depreciation                                                                         16 974                      10 835
Mining loss                                                                            (529)                     (5 947)
Other income                                                                           6 122                       2 818
Income/(loss) before
finance costs                                                                          5 593                     (3 129)
Net finance costs                                                                      8 228                       4 055
Loss before taxation                                                                 (2 635)                     (7 184)
Taxation                                                                               1 161                       (851)
Loss after taxation                                                                  (3 796)                     (6 333)
Income attributable to
outside shareholders                                                                   3 683                         737
Loss attributable to
ordinary shareholders                                                                (7 479)                     (7 070)
Weighted average shares
in issue (000's)                                                                     175 019                     144 889
Earnings per share (cents)                                                            (4,27)                      (4,88)
Headline earnings per
share (cents)                                                                         (4,16)                      (4,25)
Headline earnings is
calculated as follows:
Loss attributable to
ordinary shareholders                                                                (7 479)                     (7 070)
Profit on sale of assets                                                               (712)                           -
Goodwill amortisation                                                                    915                         915
Headline earnings                                                                    (7 276)                     (6 155)



Abridged consolidated cash flow statement
                                                                               Quarter ended               Quarter ended
                                                                           30 September 2003                30 June 2003
                                                                                 (Unaudited)                 (Unaudited)
                                                                                        R000                        R000
Cash inflow from operating
Activities                                                                            13 633                      14 215
 Cash generated by operations                                                         22 438                      21 264
 Dividends paid                                                                      (5 251)                       (450)
 Taxation refunded/(paid)                                                              4 674                     (2 544)
 Net finance costs                                                                   (8 228)                     (4 055)
Cash outflow from investing
Activities                                                                          (10 282)                    (24 452)
Cash outflow from financing
Activities                                                                           (7 420)                     (9 893)
Net decrease in cash                                                                 (4 069)                    (20 130)
Opening cash                                                                         (2 056)                      18 074
Closing cash                                                                         (6 125)                     (2 056)



Abridged consolidated balance sheet
                                                                           30 September 2003                30 June 2003
                                                                                 (Unaudited)                   (Audited)
                                                                                        R000                        R000
Assets
Non-current assets                                                                   757 211                     782 165
Current assets                                                                       177 799                     196 034
Total assets                                                                         935 010                     978 199
Equity and liabilities
Capital and reserves                                                                 402 675                     428 816
Minority interest                                                                     20 382                      16 699
Non-current liabilities                                                              301 309                     308 768
Current liabilities                                                                  210 644                     223 916
Total equity and liabilities                                                         935 010                     978 199



Share information
                                                                               Quarter ended               Quarter ended
                                                                           30 September 2003                30 June 2003
Shares in issue (000's)                                                              175 019                     175 019
Shares traded (000's)                                                                  5 430                      14 806
Share price (cents) - high                                                               280                         245
Share price (cents) - low                                                                215                         205
Closing price (cents)                                                                    240                         220
Commodity sales statistics
                                                                               Quarter ended               Quarter ended
                                                                           30 September 2003                30 June 2003
Copper (t)                                                                             4 229                       5 556
Zinc (t)                                                                               3 073                       3 172
Coal (t)                                                                             352 955                     350 741
Fluorspar (dmt)                                                                       40 349                      33 349
Gold - Barberton Mines (kg)                                                              875                         138
Gold - other (kg)                                                                        175                         214
Antimony (mtu)                                                                       148 754                     148 100



Commodity prices achieved (averaged)
                                                                               Quarter ended               Quarter ended
                                                                           30 September 2003                30 June 2003
Copper ($/t)                                                                           1 707                       1 602
Zinc ($/t)                                                                               809                         761
Coal (R/t)                                                                               128                         134
Fluorspar (all grades) ($/t)                                                             110                         109
Gold - Barberton Mines (R/kg)                                                        101 356                     101 896
($/oz)                                                                                   424                         409
Gold - other (R/kg)                                                                   84 438                      83 970
($/oz)                                                                                   353                         337
Antimony ($/mtu)                                                                          22                          25
Exchange rate (average) (R/$)                                                           7,44                        7,75



Segmental report - Quarter ended 30 September 2003
                                                                                     Revenue                      Mining
                                                                                                           profit/(loss)
                                                                                           %                        R000
Gold - Barberton Mines                                                                    32                      18 062
Antimony / Gold                                                                           14                     (5 341)
Copper                                                                                    19                    (15 253)
Fluorspar                                                                                 12                         584
Coal                                                                                      16                         304
Zinc                                                                                       7                       (191)
Other                                                                                      -                       1 306
                                                                                         100                       (529)

COMMENTARY

The sustained strength of the Rand resulted in a challenging quarter for the
base metal operations, which was compounded by problems with the copper grades
at both O'Okiep Copper Company and Chibuluma West. The Barberton Mines
acquisition during the last month of the previous quarter has outperformed
expectations and has largely negated the losses from the base metal operations.

A management action programme has been implemented with focus on increased
production and reduced operating costs in all of the Group operations. This
programme is yielding benefits with the quarter-on-quarter escalation of
operating expenses, excluding the impact of the Barberton Mines acquisition,
amounting to just 3% after the implementation of salary and wage increases.

OPERATING PERFORMANCE

The performance from Barberton Mines for the quarter exceeded expectations with
sales of 875 kg at an average price of R101356/kg.

Cash costs are presently at R74 332/kg produced and further cost reductions are
in prospect for the forthcoming quarter.

Production problems at both Chibuluma West and O'Okiep resulted in lower metal
realisation. While action to improve performance has been implemented, it is not
anticipated that these problems will be wholly overcome. In these circumstances
the recent improvement in base metal prices will, if maintained, be most
helpful.

The coal operations continued to contribute to the Group's earnings.

Fluorspar operations at Vergenoeg had a successful quarter notwithstanding the
impact of the strong Rand. Vergenoeg is beginning to benefit from improvements
in the product quality, resulting in increased pricing and volume demand.

Gold production at Consolidated Murchison was lower than anticipated due to
lower grades, however antimony production achieved internal target levels.

FINANCIAL POSITION AND CASH FLOW

The Group incurred a mining loss of R529 000 during the quarter compared with a
loss of R5,95 million the previous quarter. The contribution from Barberton
Mines was the main contributor to this improvement. The increase in revenue from
R226 million to R281 million and the increase in cash costs from R163 million to
R222 million are primarily attributable to the inclusion of Barberton Mines. The
loss attributable to ordinary shareholders of R7,5 million is comparable with
that of the previous quarter.

Cash generated by operations increased marginally from R21,3 million to R22,4
million for the quarter. Dividends, taxation refunds and financing costs
absorbed R8,8 million of this cashflow and capital expenditure and debt
repayments absorbed a further R17,6 million resulting in a net decrease in cash
for the quarter of R4,1 million.

FUTURE PROSPECTS

The recent strength in commodity prices combined with the gold hedges in
Barberton Mines should contribute to increased revenues in the forthcoming
quarter. The effect of sustained strength in the Rand/Dollar exchange rate has
had, and will continue to have a significant affect on the Group's earnings.
During this period management is focused on cost reductions and volume
increases.

CURRENT DEVELOPMENTS

Barberton Mines

The Group has commenced collating mine exploration data prior to embarking on a
regional exploration programme to expand existing mine reserves and delineate
potential future ore bodies.

Chibuluma South

The financing and conditions precedent for the development of the Chibuluma
South mine have been finalised and development of the decline shaft has
commenced. This project is expected to commence production from the sulphide
orebody within twelve months. As a high-quality orebody with an established life
of fifteen years, this project is expected to make a significant contribution to
the future of the Group.

Middelburg Townlands

The Company has applied for a mining authorisation from the Department of
Minerals and Energy. Site establishment has commenced, a processing plant has
been purchased for re-siting at Middelburg and a plant consultant appointed.
This project should commence production during the last quarter of the financial
year and is expected to produce a proportion of its production in the form of a
premium-priced lower phosphorus coal product for use in the ferrochrome and
ferroalloy industries.

Future prospects

Discussions are being held with various parties with regard to the involvement
in projects in the platinum and nickel industries. The Group is in addition
embarking upon a more aggressive exploration programme in the regions
surrounding the existing mines to potentially discover extensions to the
existing ore reserves or new orebodies. The Group is targeting longer life,
quality ore bodies for future development.

CAPITAL EXPENDITURE

Group capital expenditure for the quarter totalled R10,3 million (previous
quarter: R3,9 million), mainly on underground development and equipment at
Barberton Mines, expenditure on Middelburg Townlands, Chibuluma South project
expenditure and equipment at Vergenoeg.

SAFETY

The Group is saddened to report that its safety record has recently been marred
by the tragic loss of three employees at Consolidated Murchison Mine through an
underground accident involving a fall of ground. The directors and staff express
their sincere condolences to the families of the deceased.

The Group reiterates its commitment to operating its mining activities with due
regard to the safety and health of its employees.

By order of the Board
ASMALONE                                   CDSNEEDHAM
Chairman                                   Financial Director

5 November 2003

Contact details for Metorex Limited and Corporate Advisers
Metorex Limited

Postal: PO Box 2814 Saxonwold 2132

Republic of South Africa

Telephone: (+27 11) 880-3155

Facsimile: (+27 11) 880-3322

website: www.metorexgroup.com e-mail info@metorexgroup.com

Registrars: Ultra Registrars (Pty) Limited

PO Box 4844 Johannesburg 2000
South Africa Telephone: (+27 11) 834-2266

Capita Group plc The Registry 34 Beckenham Road Beckenham Kent BR 34TU England

Telephone: 0944 208 639-2486 Fax 0944 208 639-2279

Company Secretaries: Moore Stephens MWM

PO Box 1574 Houghton, 2041 Telephone (+27 11) 728-7240

Auditors: Deloitte & Touche

Private Bag X6 Gallo Manor, 2052 RSA

Telephone: (+27 011) 806-5000


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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