Village Main Reef
joint CEO Marius
Johannesburg, South Africa — 21 September 2012 – Village Main Reef (Village) has reported a 348% increase in operating profit to R315.3 million, as well as a 112% increase in earnings per share to 34.73 SA cents for the period ended 30 June 2012.

Commenting on the year’s developments, joint CEO Marius Saaiman said that it had been a busy year on many fronts for Village. “We have made significant progress in our first year of full ownership of our operating assets, which is evident in our annual results,” he added.

“Going forward our focus will now be to deliver sustained operational performance, build a track record and unlock value for some of our assets. While recent market circumstances have resulted in a challenging environment for resource companies, Village has continued to provide a unique ‘private equity’ option in the resource sector, offering an attractive investment opportunity. Saaiman pointed out.”

Village is focused on delivering value, and in so doing will seek to deliver the optimal level of performance from its assets. Total gold production over a comparable 12 month period increased by 6.6% to176,278oz. The average rand gold price received was higher at R417,267/kg compared to R305,397/kg in 2011, representing a 37% year-on-year increase. Antimony production for the year totalled 4,540t resulting in a turn-around to profitability at Cons Murch in the first year under Village ownership.

Net cash generated was significantly higher at R99.4 million compared to a net cash outflow of R444.5 million in 2011 – representing a 122% year-on-year improvement.

Village successfully disposed of its 19.8% equity interest in First Uranium Corporation to AngloGold Ashanti for R205 million. The cash realised from the disposal of the Secured Convertible Rand Denominated Mine Waste Solution Notes of R393 million enabled Village to declare a special dividend of 30 SA cents per share on 21 June 2012.

Village furthermore settled a long-standing dispute with Aberdeen International which resulted in the group having to pay US$9 million to Aberdeen in a full and final settlement, effectively dealing with the last of the historic liabilities related to its assets.

The group successfully concluded the Part A closure of the Blyvooruitzicht Gold Mining Company Limited (Blyvoor) acquisition and consolidated Blyvoor with effect from 1 June 2012.

“We have solidified our foundation to deliver on our strategy to return value to shareholders in the forthcoming year,” concluded Saaiman.

Source: Village Main Reef. For more information, click here.