7/29/2019 GBH Unaudited results for HY ended 30 Jun 13.pdf

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CHAIRMAN S STATEMENT

RECTORS:

ABRIDGED UNAUDITED FINANCIAL RESULTSF OR T H E H A LF Y EA R E ND ED 3 0 J UN E 2 0 13

G.G. Nhema chena ( Cha irma n) , S .P. Ba ngo ( Deput y Cha irpers o n) , W. Ts uro h* ( Ma na ging Direct o r) , C.E. Dhlembeu, O. MMo y o , P.C.C. Mo y o , I. Murefu, Ald. A. M. S iba nda

P. Muny a ny i * ( Fina nce ) , R. Ma v engere, T. Kufa zv inei * execut iv e

STATEMENT OF CHA NGES IN EQUITYfor the hal f ye ar e nde d 30 June 2013

N o t e s o n t h e F i n an c i a l s t a t e me n t s

Unau dited Unau dited Au dite30.06.13 30.06.12 31.12.1

US$ US$ US

Ba l ance at s tar t of peri od 4 271 629 6 378 565 6 378 56To tal comp rehensi ve inco me f or pe rio d (72 7 767) ( 616 009) ( 2 106 936

3 54 3 862 5 762 5 56 4 271 62

1 . A c co u nt i ng p o l ic i esT h e a c c o u nt i n g p o l i c ie s a p p l i ed i n t h e p r e p a ra t i o n o f t h e s e i n t e r im f i n an c i a l s t a t e me n t s a r e c o n s i s te n t w i t h t hu s e d i n t h e p r e p a ra t i o n o f t h e c o m p a ny s a u d i t e d f i n an c i a l s t at e m e n ts i n t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 2

Unau dited Unaudited Audite30.06.13 30.06.12 31.12.1

US$ US$ US

3 . D ep re ci at io n 330 068 333 464 656 274 . Capitalexpenditu r e - ( 11 291) (16 149

2 . B a s i s o f p r e s e nt a t i o nT h e f i n a nc i a l S t a t em e n t s h a v e b e e n p r e p a re d i n c o n f o r mi t y w i t h I n t e r n at i o n al F i n a nc i a l R e p o r t i n g S t a n da( I F R S ' s ), p r o m u l ga t e d b y t h e I n t e r na t i o na l S t a n d a r d s B o a r d ( I A S B ), w h i c h i n c l ud e s s t a n d ar d s a n d i n t e r p r et a ta p pr o ve d b y t h e I A SB a s w e l l a s t h e I n te r n at i on a l A c c o un t in g S t an d ar d s ( I AS ' s ) a n d S Ta n di n g I n te r pr e ta tC o m m i t ee ( S I C ) i n t e r p r et a t i o n i s s u e d u n d e r p r e v i o u s c o n s t i t ut i o n s .

T h e f i n a nc i a l s t a t e me n t s a r e b a s e d o n s t a t ut o r y r e c o r d s t h a t a r e m a i n ta i n e d u n d e r t h e h i s t o ri c a l c o s t c o n v e na n d e x p r e s s e d i n U n i t e d S t a t e s d o l l a r s ( U S $ ) .

TEMENT OF FINA NCIA L P OSITIONt 3 0 J un e 2 0 13

TEMENT OF COMPREHENSIVE INCOMEhe hal f ye ar e nde d 30 June 2013

TEMENT OF CA SH FLOWShe hal f ye ar e nde d 30 June 2013

Unau dited Unau dited Au dited30.06.13 30.06.12 31.12.12

US$ US$ US$ET S

cu r r entas s etse r ty, pl a nt a nd equip ment 9 392 724 10 050 553 9 722 792

entas s etstori es 1 758 696 1 376 367 1 316 424

unts recei v abl e 1 594 219 1 387 135 932 903 a nd ca sh 37 503 25 727 142 240

3 390 418 2 789 229 2 391 567

as sets 1 2 783 142 12 8 39 78 2 12 114 359

T YAND LIABILIT IES

tye ca pita l 536 588 536 588 5 36 588e opti ons rese r v e 19 200 19 2 00 19 200

di s tr ibutab le rese r ve 9 464 397 9 464 3 97 9 4 64 397mula ted l oss ( 6 476 323) (4 257 629) ( 5 748 5 56)

3 543 862 5 762 5 56 4 2 71 629

cu r r entliabilitiesr re d tax 1 690 083 2 385 3 57 1 84 6 311

te rm Bor ro wings 400 000 - 33 0 0002 090 083 2 385 3 57 2 17 6 311

entliabilitest ter m l oa ns 911 167 80 00 0 19 2 500

unts pa y abl e 6 110 411 3 973 51 8 5 38 1 941 o verdr af t 127 619 638 35 0 91 978

7 1 49 197 4 691 86 8 5 666 419

liabilities 9 2 39 280 7 077 22 5 7 842 730

equ ity and liabilities 12 783 142 12 83 9 782 12 114 3 59

Unaudited Unau dited Audite d30.0 6.13 3 0.06.12 31.12 .12

US$ US$ US$

r evenu e 2 0 49 299 2 930 916 5 067 696

s pro fi t 43 6 683 687 754 684 310

ati ng los s (781 0 69) (65 8 632) ( 2 601 680 )

na ncing c ost (102 9 28) (7 3 672) ( 160 593 )

b efo re ta x (883 9 97) (73 2 304) ( 2 762 273 )

me c redi t 15 6 230 116 295 655 337

a f ter tax (727 76 7) (61 6 009) (2 106 936)

compr ens ive income for the period (727 767) (61 6 009 ) (2 106 9 36)

ber o f share s i n i ssue (000s ) 536 589 536 589 536 589c ea r nings per s ha re ( cents ) (0.0013 6) (0 .00115) ( 0.00393)

Unau dited Unau dited Au dited30.06 .13 30 .06.12 31.12. 12

US$ US$ US$

a s h f lo w f rom opera tio ns ( 826 12 6) (3 135) 133 447a s h o utf lo ws fro m se r vi ci ng fi na nce ( 102 928 ) (73 672) -a sh o utf lo ws fro m i nv es ting a ctiv i ti es - (11 287) ( 1 173)a sh infl ows /( outfl ows ) from fi na nci ng acti vi ti es 788 667 (260 000) 182 500

as h (ou tflow)/inflows (140 3 87) (348 094) 3 14 77 4

Introducti on t he co m pa n y ' s ma r ket po s it i o ni ng T he r es ul ts f or t he h al f y ea r t o 3 0 J un e 2 0 13 a re c o mp e ti t iv e ne s s . D u e to l ow l e ve l sp re se nt ed to y ou a ga in st t he b ac kd ro p o f i nve st me nt i n p lan t a nd m ac hi ne ry sm ul ti pl e e co no mi c e nv ir on me nt al c ha ll en ge s d ol la ri za ti on , th e s ou gh t f un ds w il l be a ppd om i na te d b y a c ut e l ow l iq u id i ty l e ve l s. t ow ar d s a dd it io na l w or ki ng c ap it al a nd p

E c on om i c g ro wt h f or ec as ts w er e r ev is e d f ro m o pt im is a ti on . T hi s e f fo r t i s e xp e ct ed t o a d d4 % t o 3 . 4 % w h il e y e a r o n y e a r i n f la t io n c l os e d t h e a n ti c i pa t ed i m pr o ve d d e m an d o f

t he firs t ha lf a t 1 .8 7 % . The expect ed co mpa ny ' s pro duct s fro m bo t h t he miningr e s u r g e n c e o f t h e m i n i n g s e c t o r a n d a gr i cu lt ur al s ec to rs w hi c h a re e x pe c te di m pl em e nt at io n o f i nf r as tr u ct ur al w at er p ro je c ts r eb ou nd i n t h e s h or t t er m .d i d n o t t a k e o f f a s w a s e x p e ct e d a t l a s t y e a r e n d .

A lt ho ug h c om pe ti ti on f ro m i mp or t s w il lP e rformance i n ev i ta b le , t h e c o m pa n y b e li e ve s t h at w i thT h e f i r st h a lf o f t h e y e ar f o cu s e d m o re o n f u nd a p pr o pr i at e f u nd i n g i t c a n f e nd o f f c o m pe tr a i s i n g i n i t i a ti v e s w h i c h r e s u l t ed i n t h e c o m p a ny t hro ugh co mpet it iv e pricing, pro ducta c c e s s i ng U S D 1 m f r o m t h e D I M A F ( D i s t r e s s e d a d e q u a te t e c h n ic a l s u p p o r t .a n d M a r g i na l i s e d A r e a s F u n d ) f a c i l it y i n M a r c h2 0 1 3 . T h e f u n d s w e r e a p p l i e d t o w a r d s Di vi de nde co nom ic s ou rc ing of r a w m ate ri al s th er eb y A t a me et in g h el d o n 1 7 S ep te mb er 2 01 3e nh an ci ng t he c om pa ny 's c om pe ti ti ve ne ss i n B oa rd c on si de re d th at i n l i gh t o f t he c om pa

t he ma rket . perfo rm a nce in t he perio d under rev iew a ndn e e d f o r a s uc c e ss f u l t u rn a ro u nd i t w a s

D ue t o t he l ow r aw m at er ia ls s to c k l ev el s a nd p r ud en t t o d e cl ar e a d iv id en d f or t he p e ri oo rd er b o ok i n t he f i rs t h al f o f t he y e ar, v ol um es a t 3 0 J un e 2 01 3.4 4 7 m e t r i c t o n ne s w e re 3 0 % l o w er t h an t h e 6 4 1

t o nnes reco rded in t he s a me perio d prio r y ea r. Di re ctorateT he t ur no ve r a t U S$ 2 m il li on w as a ls o 3 0% O n t h e 2 6 th o f J un e 2 0 13 M r I s ra el M ur ef ul ow er t ha n p ri or y ea r' s U S$ 2. 9 m il li on . C os t a pp oi nt ed t o t he B o ar d a nd w e w el co me h i mr e d u c t io n i n i t i at i v e s r e s u l t ed i n s a v i n gs o f 1 0% .T h e a c c e s s i ng o f c h e a p e r D I M A F f u n d s r e s u l t e d A ppre ci ati on

T h e p e r s e v e ra n c e o f e m p l o y e e s , m a n a g emi n s av in gs i n t he c os t o f f un d s. H o we ve r, t h es u p po r t f r om a l l ou r s t ak e h ol d e rs a n d th e wi n c r e a se d b o r r ow i n g s r e s u l t ed i n f i n a n ce c o s t sc ou ns el f ro m m y f el lo w D ir ec to rs i s g reb ei ng 3 9% ab ov e p ri or y ea r a t U S$ 10 3 0 00 .a p p re c ia t ed . I t h an k y o u a l l f o r s u p po r t i ngT h e o p e r at i ng l o ss f o r t h e h a l f y e ar a t

t hro ugh t his difficult perio d.U S $ 8 8 3 0 0 0 w a s a d e c li n e o f 2 1 % c o m p a re d t ot he US $ 7 3 2 0 0 0 reco rded in t he prio r y ea r a sc a p a c it y u t i l is a t i o n r e d u c e d to a n a v e r a ge 1 5 % . B y Orde r Of The B oard

Outl ookF un d r ai s in g i ni ti at iv es w il l c on ti nu e i n t he Chai rman

s e co nd h a lf o f t h e y ea r i n a n e f fo r t t o i m pr ov e 17 Se pte mbe r 2013

For the hal f year ended 30 June 2013