Mazor

Interim results for the six months ended 31 August 2009
HIGHLIGHTS
* Revenue up 45.8%
* Operating profit up 69.6%
* Core HEPS up 54.4%
* Introduction of strategic equity partner
* Expanded national and cross-border footprint
The directors are pleased to present the unaudited consolidated results for the six months ended 31 August 2009, which continue to reflect robust top and bottom line growth. Being a scalable business with an established and flexible infrastructure, Mazor successfully weathered the challenging economic environment to maintain its record of consistent growth.
During the period the group concluded a R27.3 million share buy-in agreement with boutique investment banking and private equity specialist, Global Capital (Pty) Limited. The investment introduced a strategic shareholder with a proven track record of partnering growth companies, adding impetus to Mazor's diversification and acquisition strategy.
Group profile
Founded in the Western Cape nearly 30 years ago, the group now also operates in Gauteng, KwaZulu-Natal and the Eastern Cape following a successful geographical expansion programme.
Mazor comprises three key divisions:
* Mazor Steel which designs, supplies and erects structural steel frames;
* Mazor Aluminium which designs, manufactures and installs aluminium structures such as doors, windows, shopfronts, facades and balustrades for major blue-chip construction groups. Mazor Aluminium is South Africa's leading specialist in the technique of glass facade cladding, capitalising on vertical integration opportunities within the group; and
* Glass which manufactures and distributes laminated and toughened safety glass and double-glazed units.
Introduction of strategic partner
As previously announced on 6 August 2009 Mazor concluded an agreement with Global Capital to acquire 12 284 722 Mazor shares, at a price of R2.225 per share, amounting to an aggregate consideration of R27 333 506. The Global Capital transaction was approved by shareholders in a general meeting on 18 September 2009. The sale of shares to Global Capital generated net after-tax profit (included in equity) of R6.8 million.
The shares, constituting 10% of the entire issued share capital of Mazor, were previously held as treasury shares in terms of section 89 of the South African Companies Act, 1973.
Global Capital's skill and expertise is expected to support Mazor's strategy of identifying acquisitions that diversify its revenue stream. The group is currently pursuing a number of opportunities in this regard while being cognisant of the relevant risk profile. Global Capital's proven track record highlights its ability to add value through strategic input.
Directorate
Following the Global Capital transaction, Global Capital CEO Frank Boner was appointed as a non-executive director to the board of Mazor. We welcome him to the board and look forward to his contribution.
Review of operations
Mazor Steel and Mazor Aluminium continue to account for the majority of group revenue and profitability and again performed well despite tough market conditions. The divisions expanded further into high-growth regions such as Port Elizabeth and KwaZulu-Natal to counter the impact of a flailing economy in Mazor's traditional base of operation, the Western Cape. Following the downscaling of projects in traditional markets the group is seeking larger-scale, higher margin projects outside of South Africa and is currently making inroads into Namibia and Angola. No major capital expenditure was incurred by either division during the period. Notwithstanding the industry downturn the performance of the Glass Division was encouraging with a steady increase in revenue. The wider product range and geographic expansion are expected to help boost performance going forward. The weak economy has enabled the division to secure a number of strong new personnelto drive future growth. Mazor continued its investment in plant and equipment tofurther bolster the division's capacity, with capital expenditure for the periodtotalling R6 million.
Financial results
Revenue for the period increased by 45.8% on the comparative period to R180.2 million from R123.6 million. Net profit grew 26.9% to R32.2 million from R25.4 million, generating headline earnings per share of 29.19 cents compared to 20.75cents in the comparative period. Operating profit grew 69.6% to R48.3 million from R28.5 million. Earnings per share increased 40.75% to 29.16 cents from 20.72 cents.
Core headline earnings per share increased 54.4% from 20.75 cents per share to 32.03 cents per share. (Core headline earnings is calculated after adjusting forthe share-based payment that arose as a result of the Global Capital transaction- see "Introduction of strategic partner" above.)
The share-based payment charge is purely an accounting entry as required in terms of IFRS 2 and has no effect on the cash flows or net asset value of the group.
Mazor remains cash flush with cash on hand of R115.4 million. The cash inflow from the Global Capital transaction only occurred post the end of the period during September 2009.
At 31 August 2009, the group had issued guarantees amounting to R44.4 million compared with R33.9 million at 31 August 2008. These guarantees have arisen in the ordinary course of business and it is not expected that any loss will arisetherefrom. Net asset value increased 35.6% from 140.9 cents per share (31 August 2008) to 191 cents per share.
Share transactions
During the period 1 938 401 shares were repurchased at an average price of R1.64 per share, bringing the number of Mazor shares held as treasury shares to13 698 627. The group sold 12 284 722 shares (see "Introduction of strategic partner") and cancelled 1 345 669 shares. At 31 August 2009, 68 236 Mazor shareswere held as treasury shares.
Ordinary shares in issue at 31 August 2008 and 28 February 2009 have been restated to take into account treasury shares. This has no effect on published results.
Prospects
Notwithstanding prevailing market conditions the board maintains a positive outlook for the full year to February 2010. Mazor will continue to expand geographically in all three divisions, particularly targeting new opportunitiesin high-growth areas such as Gauteng and Africa. The expanded and upgraded product range in the Glass Division should further contribute to a continually improving performance. Backed by positive cash holdings, Mazor continues to identify acquisition opportunities within the construction industry either for geographic expansion or additional product differentiation. The group will continue to assess diversification into untapped markets such as the industrial and motor sectors.
Dividends
A dividend of 17.5 cents per share in respect of the year ending 28 February 2009, totalling R21.3 million, was paid on 13 July 2009 and is reflected in these results net of treasury share dividends received. In line with company policy no interim dividend has been declared for the period. It isthe intention of the board to declare a dividend for the full year ending.

African Eagle Resources plc - Latest Drilling Results From African

First assay results from 2009 drilling programme
- Results received from first 17 of approximately 120 planned holes.
- Key mineralised intersections include
- 18m at 1.2% nickel including 9m @ 1.7%
- 15m at 1.1% nickel
- 27m at 0.9% nickel
- Option exercised on the Ngasamo deposit
- Deposit modelling contract awarded to Snowden Mining Services
- Logistics study awarded to Drum Resources Limited
African Eagle's Managing Director Mark Parker comments, "We are pleased to report that we have successfully completed our drilling programme to define the margins of the Wamangola Hill Deposit at the Dutwa Nickel Project in Tanzania. We recently received preliminary assay results from the first few drill holes, which are in line with our expectations. The rig will now move to Ngasamo Hill, where our recently completed surface surveys have confirmed that the laterite is nickel bearing. As a result, we have exercised our option to earn an interest in Ngasamo.
"The appointment of Snowden Mining Industry Consultants to conduct the deposit modelling and Drum Resources Limited to carry out the logistics study gets our feasibility study well under way."
Drilling
The programme of step-out and infill Reverse Circulation (RC) drilling at the main Wamangola deposit was completed last week, with 62 RC holes drilled for a total of 3299m, to an average depth of 53m.The programme was designed to improve the definition of the deposit, especially around the edges, which were not fully investigated by previous drilling campaigns. The results should allow an upgrade of the resource estimate to JORC indicated category and may also add to the 31 million tonnes, 1.1% nickel resource announced last November. Preliminary assay results for nickel have now been received from the first 17 drill holes and the results are in line with our expectations for the deposit margins, where the laterite is somewhat thinner and lower grade than in the centre. The samples are now being prepared for assay for a wider suite of chemical elements.
Ngasamo Option Exercised
Having completed the Wamangola step-out and infill programme, drilling will move 7km west to Ngasamo Hill. African Eagle recently completed surface surveys over this area, which supported the Company's view that the laterite at Ngasamo Hill is geologically very similar to that at Wamangola and holds a potentially significant nickel endowment. African Eagle has therefore exercised its option with Ngasamo's owners, (Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd), to earn an interest in the prospect.Under the earn-in Agreement, announced 7 April 2009, the Company will now earn an initial 35% interest by conducting and co-funding the current RC drilling programme to delineate a JORC inferred resource at Ngasamo. It can then increase this to 50% by sole-funding the promotion of the resource to indicated category and to 75% by including the Ngasamo deposit in the global feasibility study. On completion of the feasibility study, Safina will convert its interest in Ngasamo into an interest in the whole project, according to the ratio of the two companies' attributable interests in the global resources.
Deposit modelling and logistics contracts
African Eagle has awarded two significant contracts which will form key parts of the Dutwa feasibility study. The Company has appointed Snowden Mining Industry Consultants to carry out deposit modelling and mine planning on the drill results. Snowden has one the best records of any consulting group in nickel laterite advanced deposit modelling, resource estimation and/or mine engineering studies including Koniambo in New Caledonia (Xstrata Nickel, formerly Falconbridge); Caldag in Turkey and Acoje in the Philippines (European Nickel); Ravensthorpe (BHP Billiton) and Murrin Murrin (Anaconda Nickel) both in Australia. Other recent Snowden clients include Heron Resources, Intex Resources, Toledo Mining(Berong and Ipilan).
African Eagle has also awarded the contract for a logistics and transport study to Drum Resources Limited, a UK based group specialising in logistics in Africa. Drum has extensive experience of providing logistics services to the mineral industry, including copper supply chain management from the Democratic Republic of Congo and for chrome and manganese mines in South Africa, as well as expertise in broader commodity import and export logistics.

First Uranium Corporation

First Uranium Continues To Operate And Ramp Up Production At Its Mine Waste Solutions Tailing Recovery Operation.
First Uranium Corporation reports, that contrary to a recent report in the South African media, gold production and construction of future gold and uranium plant modules continue unabated at the Company's Mine Waste Solutions tailings recovery operation ("MWS") in South Africa. The Company has, however, temporarily suspended its work in preparation of the site for a new Tailings Storage Facility ("TSF"), which is designed to accommodate future tailings deposition capacity requirements. After granting an authorization to proceed with the new TSF, regulators have withdrawn that authorization pending further discussions with the Company.
First Uranium takes seriously the near-term issues facing the Company regarding environmental authorization of its TSF. The Company continues to act in accordance with widely accepted mining practices in the regulators' jurisdiction and is optimistic that the withdrawal will be lifted. Having the approval to proceed with a new tailings deposition site is vital to ensuring the significant economic benefit for the region that is expected to stem from MWS and to the future stability of approximately 5,000 jobs at MWS and neighbouring companies.
This new TSF has been designed to significantly reduce the environment impact of mining in the area and to improve the site's visual appeal as the new TSF is planned to have:
- a more environmentally benign impact than the existing tailings sites as a significant amount of certain metals and minerals present in the existing tailings, such as uranium, pyrite and sulphur are to be removed during re-processing of these tailings;
- reduced risk of erosion as the side slopes that will be built at a lower gradient and gradually vegetated as the facility is built;
- contours that will be more rounded to blend with the surrounding natural landscape;
- systems that will recycle and reuse the water used to transport the tailings to the new site wherever possible; and
- been built on impermeable soils, unlike the porous dolomites which host much of the historical tailings.
The older tailings deposits, that the TSF is replacing, are to be rehabilitated once the tailings from each such deposit are reprocessed. While the Company engages in appropriate discussions with public officials to address any and all queries that have arisen regarding the TSF, First Uranium continues to remain focused on its operations at both MWS and the Ezulwini Mine.
"First Uranium remains confident that this interruption in the development of the TSF will not diminish the Company's ability to execute its mine plans at both of its gold and uranium assets," explained Gordon Miller, President and CEO of First Uranium. "As with the development of all mines, there are operational issues to overcome. However, we anticipate that this development
with the new tailings storage facility will, in hindsight, be characterized as one example in a series of challenges that, once overcome, have brought two exceptional assets into full, long-life production." About First Uranium Corporation First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming a significant low-cost producer of uranium and gold through the expansion of the underground development to feed the new uranium and gold plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions tailings recovery facility, both operations situated in South Africa. First Uranium also plans to grow production by pursuing value-enhancing acquisition and joint venture opportunities in South Africa and elsewhere.