FULL YEAR PROFIT GUIDANCE
The Preliminary Final Report for Independence Group NL [theCompany] will be released in the week commencing Monday 29 August 2011. The information for that Report is still in the process of being compiled. The Company s financial statements for the year ended 30 June 2011 have not yet been finalised and the audit is nearing completion. The Board has just completed its own review of the expected accounting and tax issues arising from the recent takeover of Jabiru Metals Ltd [Jabiru]. The successful takeover of low-cost copper/zinc/silver producer Jabiru provides the Company with diversification and is expected to enhance group cash flow generation.
The Company is at a stage in the completion of its financial statements where it is able to estimate the impact on the Company s Net Profit After Tax of one-off costs resulting from the acquisition of Jabiru. It is evident that the impact of these one-off costs will be significantly greater than market consensus earnings forecasts. Accordingly, the Company provides the following preliminary operational and financial information and commentary.
Cash Position
The Company is in a strong financial position, with cash of $227.8 million and debt of $28.5 million at 30 June 2011. Cash flow from operating activities in the year ended 30 June 2011 was $52.8 million prior to interest received.
Net Profit After Tax
The Company s net profit after tax for the year ended 30 June 2011 is estimated to be approximately $5.5M (2010: $28.7M). The result is explained by a number of outcomes that arose as a consequence of the acquisition of Jabiru. The results of the acquisition have been consolidated in the financial statements from the date of assumed control, being 4 April 2011 through to 30 June 2011.
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