Quarterly Update Announcement
EFORA ENERGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: EEL
(“Efora” or “the Company” or together with its subsidiaries “the Group”)
QUARTERLY UPDATE ANNOUNCEMENT
Shareholders of the Company (“Shareholders”) are referred to the ongoing suspension in trading of the Company’s shares on the Johannesburg Stock Exchange (“JSE”) which came into effect on 9 October 2020 following the late publication of the consolidated annual financial results for the year ended 28 February 2021 (“2021 Annual Results”). Efora published the 2021 Annual Results on 16 May 2023, however trading in the Company’s shares remains suspended due to the resultant late publication of the financial results for the six-month periods ended 31 August 2021 (“2022 Interim Results”) and 31 August 2022 (“2023 Interim Results”), and the consolidated annual financial statements for the years ended 28 February 2022 (“2022 EEL AFS”) and 28 February 2023 (“2023 EEL AFS”). The purpose of this announcement is to provide an update on the current state of affairs of the Company and the progress made to date in working towards achieving the reinstatement of trading in the Company’s shares.
2022 Interim Results and 2022 EEL AFS
In the Company’s last quarterly update issued on the Stock Exchange News Service on 26 July 2023, Efora anticipated that SizweNtsalubaGobodo Grant Thornton Inc. (“SNG GT”), its external auditor, would complete review and audit work relating to the 2022 Interim Results and 2022 EEL AFS, respectively, by 31 August 2023. The 2022 Interim Results and 2022 EEL AFS are undergoing final reviews by SNG GT and Efora anticipates publishing these results by 30 November 2023.
2023 Interim Results and 2023 EEL AFS
The publication of the 2022 Interim Results and 2022 EEL AFS will enable the Company to focus on the finalisation and publication of the financial results for the 2023 financial year – the 2023 Interim Results and 2023 EEL AFS. Review and audit work relating to these results is yet to commence. Efora will in due course provide further updates regarding the expected timing of the publication of these outstanding financial results.
In Efora’s Integrated Annual Report for the year ended 28 February 2021, which was dispatched to Shareholders and published on the Company’s website on 16 May 2023, Efora informed its Shareholders that it commenced the wholesaling of fuel products in December 2022 through its wholly owned subsidiary, Efora Holdings Proprietary Limited (“EH”), which obtained a fuel wholesaling licence in May 2022. EH sells mainly diesel and illuminated paraffin to commercial customers in various industries.
On 22 August 2023, EH concluded a 37-month lease agreement under the terms of which it is renting a fuel depot in Alrode, south of Johannesburg (“Alrode Depot”). The lease will terminate on 21 September 2026, however EH has the option to acquire the depot under the terms of the lease agreement. The Alrode Depot has been undergoing refurbishment and will become operational in November 2023.
The Alrode Depot has storage capacity which will enable EH to service its existing customers, target new customers in selected industries and earn incremental revenue and margins from the following:
•Cash before collection sales;
•Break bulk deliveries;
•Milk run drops;
•Stock purchased and stored before price increases.
Efora is also looking at opportunities to trade crude oil and other niche products. The Company will provide further updates on its operating activities in due course.
31 October 2023
For further information please contact:
Efora Energy Limited
+27 (0)10 591 2260
IMPORTANT NOTICE TO SHAREHOLDERS REGARDING THEIR SHARES
If you are in any doubt as to what action you should take, consult your CSDP, Broker, Banker, Legal Adviser, Accountant or other professional advisers immediately.
Or visit our Shareholder Information page for more information regarding your shareholding and share certificate.