CSM cosmo gold limited

Consolidated Minerals (CSM) - Profit announcement

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    Ah yes, CSM continue to out perform. 2.5c Fully Franked final div!

    CSM - $14.1 Million Full-Year Net Profit 1/1 (P)
    CSM - ASX Company Announcement
    7 August 2002
    Part 1/1

    HOMEX - Perth
    $14.1 Million Full-Year Net Profit

    Consolidated Minerals Limited (ASX: CSM) will pay a 2.5 cents a share
    fully franked final dividend, increasing its full year payout to 5
    cents, after posting a 13% increase in unaudited full-year net profit
    after tax to $14.1 million - its third successive year of profit

    The profit was struck on a 31% increase in sales revenue to $80.7
    million (compared with $61.4 million last year) and equated to
    earnings per shae of 10.96 cents (10.78 cents last year). This
    represents a 65% return on equity, based on shareholders' equity of
    $21.8 million at 30 June 2001.

    The strong result, which included maiden revenue contributions from
    the Company's newly commissioned Coobina Chromite Project, was
    achieved on full-year production of 365,702 tonnes of manganese lump
    ore from the Woodie Woodie Manganese Project and 73,731 tonnes of
    chromite ore from Coobina following its recent startup.

    "This is an excellent result which reflects a strong and consistent
    performance by the Woodie Woodie Project and cements Consolidated's
    position as one of Australia's emerging profitable resource
    companies," said the Company's Managing Director, Michael Kiernan.

    The Board is pleased to continue its dividend policy with the
    payment of a 2.5 cent final dividend, representing our first-ever
    fully-franked payment to shareholders," he said. The full-year
    dividend of 5 cents represents a yield of over 8% based on the recent
    trading range of Consolidated shares.

    Consolidated's Board has decided to also recommend the implementation
    of a Dividend Reinvestment Plan, under which shares are proposed to
    be issued at a 3% discount to prevailing market prices. The plan will
    be put to shareholders for approval at the Company's Annual General

    "The implementation of this scheme is in line with Consolidated's
    established position as a regular dividend-paying company and
    provides shareholderswith a mechanism to further enhance their
    holdings in the Company," Kiernan said.

    He said the growth outlook for the next 12 months was solid thanks to
    the recent diversification of the production base with the addition
    of chromite production and the Company's strategically important
    position as an independent supplier of both manganese and chromite

    "Some 80% of our business comes from key markets in China and Eastern
    Europe, where both economies are growing at more than 7% annually -
    providing us with a good hedge against potential uncertainties facing
    the global economy," Kiernan added.

    Released by: On behalf of:

    Jan Hope / Nicholas Read Michael Kiernan
    Jan Hope & Partners MANAGING DIRECTOR
    Telephone: (+61-8) 9388-1474 Consolidated Minerals Limited
    Mobile: (0419) 929 046 Telephone: (+61-8) 9321-3633
    Mobile: (0418) 904 165


    Consolidated Minerals is a diversified Australian resource group with
    a solid growth outlook in the bulk industrial minerals industry.
    Consolidated has a strong profit base founded on its successful West
    Australian manganese operations at the Woodie Woodie mine in the
    State's Pilbara region.

    Woodie Woodie has a secure position as a reliable supplier of 350,000
    tonnes per annum of high-grade 48% manganese ore with low
    phosphorous and iron impurities to markets in Asia and Europe,
    representing sustainable 5% share of the world market.
    Consolidated's position as an independent supplier gives it an
    important strategic advantage in the world manganese market.

    The Company's Coobina chromite project, also in the Pilbara region,
    commenced production in February 2002 at an expected annual rate of
    250,000 tonnes of 42% chromite ore.

    Both Woodie Woodie and Coobina are long-life operations, with recent
    exploration having established mine lives of 10 years at Woodie
    Woodie and 10 years at Coobina.

    Consolidated has a strong shareholder base with major shareholders
    comprising the Hong Kong-based commodity trader Noble Group Ltd with
    18.7%, Portfolio Partners Ltd with 11.9%, Directors with 9.5%, AMP
    Life Ltd with 6.5% and DM Decometal with 4.2%.

    Consolidated currently has 148,107,624 shares, 12,500,000 convertible
    notes and 4,475,000 unlisted options on issue.

    ends - AAP

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