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Trading Update - interim results for the six months ended 31 December 2016

Monday, 20 February 2017

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by 20% or more from the financial results of the previous corresponding period.

Shareholders are advised that Petmin’s basic earnings per share for the six months ended 31 December 2016 is expected to be approximately 8.3 cents per share, a 216% increase from the loss of 7.15 cents per share for the six months ended 31 December 2015. The loss for the six months ended 31 December 2015 was due to the impairment of the investment in the Veremo project of R115 million.

Headline earnings per share for the six months ended 31 December 2016 is expected to be 8.3 cents per share, down 42% from the 14.32 cents for the six months ended 31 December 2015.

Headline earnings per share was impacted by a 27% reduction in the average Rand prices achieved on the export market compared to 2015. This reduction was in line with the reduction in international coal prices which saw the API4 benchmark reach $50 per tonne during the six months ended 31 December 2016.

Production costs per tonne increased by 16% compared to 2015 as a result of illegal activities of a few individuals that prevented access to the KwaQubuka mining area, resulting in a court interdict being obtained against the individuals. This stoppage was despite Somkhele having all the required regulatory approvals to commence mining. A decision was made to delay accessing the new mining area in favour of dealing with the community which remains supportive of the mine. The delay necessitated the mining of additional tonnages from deeper, more expensive mining pits. A roadmap agreement for the future sustainable development of Somkhele was concluded with the various community interest groups (including the Traditional Council, the Nkosi, indunas and the Mtubatuba Municipality) and mining has now commenced in KwaQubuka.

This trading statement and SENS announcement has not been reviewed or audited by the Company`s auditors.

The Company's interim results for the six months ended 31 December 2016 are expected to be published on SENS on 23 February 2017. An update on the status of the offer to acquire all or a portion of Petmin’s issued share capital will be provided separately.

Investors, analysts and media are invited to join a 10h00 call with Petmin management on Thursday 23 February 2017 following the release of Petmin’s interim results for the six months ended 31 December 2016.

Dial in details for Petmin results call 10h00 Thursday 23 February 2017:

Country Access Number
South Africa - Johannesburg Neotel 011 535 3600
South Africa - Johannesburg Telkom 010 201 6800
UK - Toll-Free 0808 162 4061
USA and Canada - Toll Free 1 855 481 5362
Australia - Toll-Free 1 800 350 100
Other Countries - International +27 11 305 2030
Other Countries - International +27 10 201 6800
   
Playback Access Numbers (code 11324#)  
Country Access Number
Other Countries - International +27 11 305 2030
South Africa 011 305 2030
UK - Toll Free 0 808 234 6771
USA and Canada - Toll Free 1 855 481 5363

Enquiries:
Petmin: Bradley Doig

+27 11 706 1644

Media: Jonathon Rees (Communications and investor relations)
Jonathon Rees (Communications and investor relations)
+27 76 185 1827

Sponsor and Corporate Adviser
River Group
Johannesburg
20 February 2017

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