Corporate profile

Petmin is a multi-commodity mining and processing company and a market leader in the production of quality anthracite and silica. Petmin has been listed on the Johannesburg securities exchange, the JSE Limited, since 1986, and the London Stock Exchange's Alternative Investment Market (AIM) since 2006.

Petmin holds two operating assets and a development project - the SamQuarz silica mine, the Somkhele anthracite mine and an effective 34.9% interest in the Veremo pig-iron project - as well as a 100% interest in Petmin Logistics.

SamQuarz is the largest producer of high-quality silica in South Africa with run-of-mine (ROM) production of 1.4 million tonnes a year. Somkhele, which was commissioned in June 2007, is one of the country's largest producers of high-quality anthracite for local and export markets. Somkhele has plant capacity of approximately 1.4 million ROM tonnes per year. Petmin Logistics has a contractual agreement with Transnet Port Terminals for the exclusive use of an export facility for 600,000 tonnes a year at Richards Bay Dry Bulk Terminal.

The Group supplies to blue-chip customers in the metallurgical and industrial sectors, including Xstrata South Africa (Pty) Ltd, Samancor Limited, ASA Metals, Siltech, Assmang Limited, and also to the glass industry, including PFG - a division of PG Group, Consol Limited and Nampak Limited.

Petmin has SAMREC-compliant anthracite reserves and resources of 51.2 million tonnes (over Areas 1 to 3, and additional resources of approximately 24 million tonnes confirmed by Snowden Mining Industry Consultants in June 2009), and quartzite reserves of 60 million tonnes. The extent and quality of the Veremo resource will be finalised in the first quarter of 2010.

The Company has a strong balance sheet, with gearing of only 9.97%. A cash reserve position of R176 million and undrawn bank facilities of R150 million ensures that Petmin has the financial capacity to meet working capital requirements, to fund its project development pipeline, and to underpin potential acquisitions.

Petmin has an experienced corporate and operational management team with a track record of making value-enhancing acquisitions and disposals, and of improving the operational efficiencies of the businesses acquired.

The shareholding by black economic empowerment (BEE) groups is currently 33%.

Management and directors currently have a significant shareholding interest in Petmin and are aligned with shareholders' interests. The Group is actively involved in community development through its projects at SamQuarz and Somkhele. At the end of the financial year, the Company employed 652 people (including contractors).