South African resources group Mvelaphanda Resources on Thursday reported a sharp rise in headline earnings per share for the year to end June to 1 663 cents from 91 cents a year ago, largely due to a R3,4-billion increase in the value of its Gold Fields investment to R7,4-billion.
Adjusted earnings per share, which exclude all non-cash items including the tax effects of these, rose 74% from 62 cents last year to 108 cents in the year ended in June 2006. This increase was largely attributable to the strong performance of Northam, which reported a 183% increase in earnings in the financial year ended in June 2006, the company said.
Mvela Resources CEO Pine Pienaar noted that commodities, including the precious metals suite, continued to rise strongly throughout the year and this impacted positively on the value of Mvela Resources’ core mining investments and significantly enhanced attributable cash flow from Northam in the form of dividends paid and declared.
The value of Mvela Resources’ investment in Gold Fields has risen from R4,1-billion, to R7,4-billion in just over two years and dividends from Northam have more than tripled compared to the previous reporting period. On receipt of R85-million in dividends from Northam on August 28, Mvela Resources’ cash position will have risen to R260-million, he added.
“This robust cash flow and improvement in the underlying value of its investments significantly enhances Mvela Resources’ ability to meet its strategic growth objectives,” added Pienaar. – I-Net Bridge