Company operational and financial review
Revenue was higher than 2021 by 14%, despite sales volumes being 14% lower than prior year. The lower sales volumes resulted from lower production in the current year, significantly impacted by the prolonged unplanned desalination water outage during December, despite being partially mitigated by the additional Rössing water reservoirs capacity. However, the macro-economic parameters assisted to achieve an exceptional financial performance. While a weaker local currency, high inflation and commodity price spikes had a significant negative impact on costs, the uranium price also increased and the combination of being able to capitalise on the higher spot price, combined with a strong US dollar, resulted in a strong revenue stream, ultimately mitigating the negative cost challenges. This enabled the company to achieve an increased net profit after tax from normal operations of N$840 million (2021: N$193 million), which also resulted in the company declaring a total interim dividend of N$49.7 million (2021: NIL). Further details of the company’s financial performance are set out in the summary statement of profit or loss and other comprehensive income.
Production of uranium oxide for the year was 2,659 metric tonnes compared to 2,882 metric tonnes in 2021. A total of 16,581,950 metric tonnes (2021: 20,721,716 metric tonnes) were mined from the open pit and 8,972,925 metric tonnes (2021: 9,622,798 metric tonnes) of ore were milled. The mine is currently operating on an approved Life-of-Mine Plan to 2026 (2021: 2026).
An interim dividend of 30 cents per share was approved by the Board of Directors on 18 August 2022 to the value of N$49,680,000 (2021: NIL) and paid out during August 2022.
Holding Company and Ultimate Holding Company
The company’s immediate holding company is CNUC Namibia Mining Limited, a company registered in Namibia. China National Nuclear Corporation Limited, registered in China, is the company’s ultimate holding company.
The annual financial statements were prepared on a going concern basis. The directors have no reason to believe that the company will not be a going concern in the foreseeable future based on forecasts and available cash resources. The viability of the company is supported by the annual financial statements.
Other than the dividend of 47.0 cents per share that was recommended by the Board of Directors on 22 February 2023 to the value of N$77,832,000, the directors are not aware of any other material events which occurred after the reporting date and up to the date of this report. 22 February 2023
The summary results for the year ended 31 December 2022 have been audited by Ernst & Young Namibia. The auditor’s unqualified opinion is available for inspection at the company’s registered office.
S S Galloway (Chairman), D Sauls-Deckenbrock (Vice Chairperson), J S Coetzee (Managing Director)*, J Chang** (Executive), S Gao**, Y Li**, H P Louw, O S Netta, G N Simubali (alternate C W H Nghaamwa), Y Zhang**
* South African
S S Galloway (Chairman) : 16 February 2022
D Sauls-Deckenbrock (Vice Chairperson) : 16 February 2022
O S Netta : 16 February 2022
S Gao : 16 February 2022
J Chang : 8 June 2022
Y Zhang : 8 June 2022
Z Fang (alternate) : 14 January 2022
F Li : 31 May 2022
J M Buys
P O Box 22391
Ernst & Young
P O Box 1857
J M Buys (Secretary) : 1 July 2022
G D Labuschagne (Secretary) : 30 June 2022