Go Back Email this Link to a friend


Keaton Energy Holdings Limited - Reviewed Provisional Condensed Consolidated Results For The Year Ended 31 March 2016

Release Date: 27/06/2016 08:30:00      Code(s): KEH     
Keaton Energy Holdings Limited 
(Incorporated in the Republic of South Africa) 
Registration number: 2006/011090/06
JSE share code: KEH ISIN ZAE000117420
(?Keaton Energy? or ?the company? or ?the group?)

Reviewed provisional condensed consolidated results for the year ended 31 March 2016

Preparation of provisional condensed consolidated financial statements
The provisional condensed consolidated financial statements for the year ended 31 March 2016 have been reviewed in
terms of the Companies Act of South Africa. Their preparation was supervised by the Chief Financial Officer, Jacques
Rossouw, a Chartered Accountant (SA). The directors of the company take responsibility for these results. The provisional
condensed consolidated financial statements were published on 27 June 2016 and can be found on the company?s website.

Commentary
Dear shareholder
The year ended 31 March 2016 proved to be another year of mixed results. There was continued excellent performance at
one asset, Vanggatfontein, and a disappointing performance at the other, Vaalkrantz. Keaton (KEH), however, successfully
concluded a transaction to dispose of Vaalkrantz and its other KwaZulu-Natal anthracite assets during February 2016,
which awaits only the Minister?s consent under section 11 of the MPRDA. In addition, KEH concluded the acquisition of the
minority interests in all but one subsidiary. Subsequent to year-end, the long-standing dispute with Megacube Mining
Proprietary Limited (Megacube) relating to several breaches of the contract mining agreement at Vanggatfontein was resolved
in KEH?s favour at arbitration.

Safety
Zero harm remains a key focus for the group and safety is of paramount importance. The lost-time injury frequency rate
(per 200 000 hours worked) was 0.14 at Vanggatfontein (FY15: 0.10) and 0.06 at Vaalkrantz (FY15: 0.22). Management
commends all for this achievement and their adherence to safety standards and protocols.

Operational review
Vanggatfontein
KEH?s prime asset continued to perform superbly. Vanggatfontein sold 2 237 595t of washed 2 and 4-seam thermal coal to
Eskom, only 2% down on last year?s record sales of 2 278 761t. Sales of 5-seam metallurgical coal was 98 252t 
(FY15: 126 107t) in line with the geological model. Discard, slurry and B-grade sales were negligible. 

Vaalkrantz
As was previously announced, Vaalkrantz operation was classified as a disposal group ?held-for-sale? during the year
and a sale process was initiated. In February 2016, KEH concluded an agreement with Bayete Energy Resources Proprietary
Limited (BER) to dispose of its wholly owned subsidiaries Leeuw Mining and Exploration Proprietary Limited (LME) and
Amalahle Exploration Proprietary Limited thereby exiting the group?s exposure to anthracite operations and projects
entirely. The Braakfontein thermal coal project, held by Leeuw Braakfontein Colliery Proprietary Limited (LBC), a wholly owned
subsidiary of LME, was specifically excluded from the transaction. LBC, which will be unbundled from LME, will become a
direct wholly owned subsidiary of KEH. Post-year-end, Vaalkrantz Colliery was placed on care and maintenance
notwithstanding continuous efforts by both LME and BER to minimise the losses exacerbated by the ongoing global decline in coal
prices, force majeure declared on LME by its biggest customer and the unavailability of water due to the continued drought
in the region. LME and BER?s associated operating company Witbank Mineral Resources Proprietary Limited jointly decided
to place Vaalkrantz Colliery on care and maintenance with effect from 1 May 2016. LME embarked on a section 189A process
for the retrenchment of all employees during April 2016 which was finalised and became effective on 31 May 2016. Coal
sales for the year were 45 556t domestic (FY15: 142 176t), 70 600t export (FY15:138 300t) and 185 799t high ash 
(FY15: 114 974t).

Group financial performance
Group revenue from continuing operations decreased by 13%, from R1 181.1 million in FY15 to R1 032.1 million in FY16.
The decrease was mainly as a result of a 36% decrease in transport revenue as a result of reduced transport rates from
Eskom and shorter delivery distances. This, however, resulted in a decrease of 36% in transport costs paid to suppliers
referred to below. In addition, coal sales at Vanggatfontein decreased overall by 4%.

Cost of sales decreased by 10% from R968.9 million in FY15 to R868.8 million in FY16. The decrease is mainly
attributable to a decrease in transport costs of R103.2 million and a decrease in waste volumes mined at Vanggatfontein of 7%.
Pleasingly the strip ratio achieved at Vanggatfontein, excluding rehandle of waste dumps and spoils, decreased to 2.8 from
2.9 in FY15. Fuel costs of R89.5 million were substantially lower when compared to the prior year of R122.7 million,
due to lower volumes mined as well as a decrease in diesel prices. The remaining cash cost components included in cost of
sales were in line with budget and that of the prior year as detailed in note 3 to the provisional condensed
consolidated financial statements and again reflects the group?s continued focus in keeping costs under control.

The gross profit of R163.3 million or 16% of revenue decreased slightly year-on-year mainly as a result of the
decrease in sales at Vanggatfontein. In addition, management took the decision in the second half of the financial year to
accelerate mining of Pit 2 in order to minimise re-handling of future life-of-mine overburden and consequently reduce future
cash outflow. Unfortunately coal qualities and planned yield in the last remaining cuts decreased significantly to that
experienced previously in Pit 2. This not only resulted in a decrease in the expected cash generated from these last
cuts but also resulted in accelerated depreciation. 

Included in other income for FY16 is a credit of R37.5 million relating to the reversal of the Megacube liability
previously included under trade and other payables. Refer to note 19 to the provisional condensed consolidated financial
statements for additional disclosure regarding this matter. 

The increase in mining and related expenses relates to a once-off impairment charge of R159.2 million recorded for the
LBC project as disclosed in notes 5 and 10 to the provisional condensed consolidated financial statements. To date the
LBC project was evaluated on the basis of both an export and domestic thermal coal operation. Continued depressed export
coal pricing and a bleak medium-term outlook on the Richards Bay API4 Index has had a material impact on the economics
of the project. We continue to evaluate alternative feasible options around an exclusive domestic supply project. 

The remaining mining and related expenses were in line with budget and that of the prior year.

The increase in administrative expenses relates to the once-off initial recognition of a financial liability at fair
value of R66.9 million and the derecognition of the deferred income liability of R5.4 million as reported in FY15. During
FY14, the group entered into a pre-offtake finance arrangement with Gunvor SA, a fellow subsidiary of the group?s
largest shareholder Plusbay Limited, a wholly owned subsidiary of Gunvor Group Limited, for the supply of 600 000 tonnes of
coal to be delivered from the group?s Moabsvelden Project over a 22-month period from 1 January 2015 to 31 October 2016
in return for a prepayment of USD4 million. In terms of the agreement the group had to deliver the first coal volumes to
Gunvor by 31 December 2015 from Moabsvelden. The group was unable to achieve this target as the development of
Moabsvelden is still being delayed by the award of an integrated water use licence (IWUL) by the Department of Water and
Sanitation despite every effort by the group to obtain same. The group applied for the IWUL in 2014 when it acquired the project
through the acquisition of Xceed Resources Limited. As a result of not being able to supply first coal by 31 December
2015 to Gunvor, this breach resulted in the derecognition of the deferred income liability and the recognition of the
financial liability. For more detailed disclosure refer to notes 5 and 13 to the provisional condensed consolidated
financial statements.

Other than the above, administrative expenses were in line with budget and that of the prior year.

The group net loss for the year was R297.3 million compared to a net loss of R71.9 million in FY15, mainly as a result
of the once-off charges referred to above. Consequently, group headline earnings per share declined to a loss of 26.9 cents 
per share from 0.4 cents per share in FY15. 

Operations generated net cash of R470.2 million in FY16 compared to R536.9 million in FY15 after taking working
capital outflow of R33.3 million (FY15: R34.1 million) and net finance cost of R19.4 million (FY15: R18.4 million) into 
account. The decrease in operational cash was as a result of the poor operational performance at Vaalkrantz, and the 
effect of Pit 2 at Vanggatfontein referred to above. 

Cash invested in investing activities decreased from R508.9 million in FY15 to R404.4 million in FY16. The decrease in
investing activities relates mainly to the year-on-year decrease in capital spend at Vanggatfontein of R39.8 million
(FY15 included the construction of the Vanggatfontein filter press plant of R34.8 million) and R10.9 million at the
Vaalkrantz operation. Group capital spend on intangible assets also decreased year-on-year by R11.5 million, mainly relating
to the implementation of the Enterprise Resource Planning (ERP) system of R5.9 million in FY15. The group further
liquidated R20.8 million of its restricted investments during the year as a result of an overfunded position.

Financing activities utilised cash of R89.5 million in FY16 compared to R25 million in FY15. This is mainly due to
borrowings repaid of R80.4 million (FY15: R59.8 million), dividends paid to minority shareholders at subsidiary level of 
R7.5 million (FY15: R13.7 million) and the acquisition of the 26% minority shareholding in certain subsidiaries for 
R18.6 million. These were offset by an additional drawdown of R20 million on the Investec Bank Limited term facility.

Projects
Moabsvelden remains our short-term growth priority. The initiation of construction of this expansion to Vanggatfontein
awaits the grant of its IWUL and the conclusion of a Coal Supply Agreement (CSA) with Eskom. Moabsvelden will
essentially be operated as a satellite pit to Vanggatfontein with similar ROM stripping ratios to Vanggatfontein. ROM will be
transported to the Vanggatfontein Colliery site where a new CHPP is planned to process the Moabsvelden feed. Once the IWUL
and CSA processes are concluded, mine construction will take approximately 12 months to complete.

Coal Resource and Coal Reserve statement
Other than normal coal depletion as a result of mining activities during the 12 months to 31 March 2016, Coal Reserves
at Vanggatfontein Colliery reduced by an additional 2.2% and Coal Resources by 4.7% due to slightly lower recovery,
fringe peripherals near wetlands not mined as well as pillars left for safety reasons. Vaalkrantz Colliery was placed on
care and maintenance during 2016 and as a result the previously reported Coal Reserve estimate was withdrawn. The
previously reported ROM Coal Reserve estimate reported for Vaalkrantz accounted for only 2.2% of the total group ROM Coal
Reserve. An updated Resource and Reserve Statement for the group is expected to be released in August 2016 as part of the
Integrated Annual Report. The full report will be available on the company?s website at www.keatonenergy.co.za.

Directorate
Gunvor SA, the group?s largest shareholder, changed its nominated directors during the year. Jeroen Schurink resigned
with effect from 30 June 2015 and Gia Mai, Gunvor SA Chief Investment Officer, was appointed as a Non-Executive Director 
effective 1 July 2015. The Board thanks Mr Schurink for his contribution to the company. 

Changes to roles and responsibilities
During FY16, the Board approved a reduction of five members to the Social and Ethics Committee. The Committee now
consists of APE Sedibe (chairman), LX Mtumtum, Dr JD Salter, J Rossouw and AB Glad.

Looking ahead 
In the short term our focus will be on the continued excellent operations at Vanggatfontein. With the company
refocused on a single, profitable mine with a pending attractive expansion and with a simplified corporate structure it 
is well placed for the future.

On behalf of the Board

 
David Salter                 Mandi Glad
Non-Executive Chairman       Chief Executive Officer

Bryanston
24 June 2016


Provisional condensed consolidated statement of profit or loss and other comprehensive income
for the year ended 31 March 2016


                                                               Notes                    Year ended             Year ended          
                                                                                          31 March               31 March           
                                                                                              2016                   2015          
                                                                                         (Reviewed)             (Restated)*          
                                                                                                 R                      R          
   CONTINUING OPERATIONS                                                                                                            
   Revenue                                                         2                  1 032 079 534         1 181 054 551          
   Cost of sales                                                   3                   (868 776 745)         (968 938 863)          
   Gross profit                                                                         163 302 789           212 115 688          
   Other income                                                    4                     41 192 246            11 335 914          
   Mining and related expenses                                     5                   (181 966 055)          (21 140 910)          
   Administrative expenses                                         5                   (139 036 414)          (75 002 334)          
   Operating (loss)/profit before net finance cost                                     (116 507 434)          127 308 358          
   Net finance cost                                                                     (54 159 822)          (48 103 717)          
   Finance income                                                                         4 045 902             5 277 590          
   Finance cost                                            13 and 14                    (58 205 724)          (53 381 307)          
   Net (loss)/profit before taxation                                                   (170 667 256)           79 204 641          
   Income taxation credit/(expense)                                6                      2 167 629           (42 188 623)          
   Net (loss)/profit from continuing operations                                        (168 499 627)           37 016 018          
   DISCONTINUED OPERATIONS                                                                                                          
   Loss from discontinued operations, net of taxation              7                   (128 776 357)         (108 870 925)          
   Net loss for the year                                                               (297 275 984)          (71 854 907)          
   Other comprehensive income                                                                                                       
   Items that may be reclassified to profit or loss                                                                                 
   Foreign currency translation differences                                               1 840 820              (130 247)          
   Total comprehensive income                                                          (295 435 164)          (71 985 154)          
   Net loss attributable to:                                                                                                       
   Owners of the company                                                               (250 587 708)          (31 028 870)          
   Non-controlling interest                                                             (46 688 276)          (40 826 037)          
                                                                                       (297 275 984)          (71 854 907)          
   Total comprehensive income attributable to:                                                                                      
   Owners of the company                                                               (248 746 888)          (31 159 117)          
   Non-controlling interest                                                             (46 688 276)          (40 826 037)          
                                                                                       (295 435 164)          (71 985 154)          
   Earnings per share                                                                                                              
   Basic earnings per share (cents)                                8                          (99.7)                (13.8)          
   Diluted earnings per share (cents)                              8                          (99.7)                (13.8)          
   Earnings per share - continuing operations                                                                                       
   Basic earnings per share (cents)                                8                          (62.2)                 12.6          
   Diluted earnings per share (cents)                              8                          (62.2)                 12.4          
                                                                                                                                    
   The accompanying notes are an integral part of these provisional condensed consolidated financial statements.                       


* The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
  Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
  within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
  provisional condensed consolidated statement of changes in equity for this period is not required to be restated.

  
Provisional condensed consolidated statement of financial position at 31 March 2016


                                                                Notes                    At                  At                 
                                                                                   31 March            31 March           
                                                                                       2016                2015               
                                                                                  (Reviewed)           (Audited)          
                                                                                          R                   R                  
   ASSETS                                                                                                              
   Property, plant and equipment                                    9           668 297 215         768 617 910       
   Intangible assets                                               10           504 568 494         716 434 140       
   Investments and loans                                                          5 221 048           5 216 499         
   Restricted cash                                                                7 423 204          10 780 613        
   Restricted investments                                                        35 225 869          68 305 506        
   Total non-current assets                                                   1 220 735 830       1 569 354 668     
   Restricted cash                                                                4 167 503                   -                  
   Inventory                                                                     36 650 671          54 110 477        
   Trade and other receivables                                                  105 148 757         179 455 807       
   Taxation                                                                         916 892           1 901 772         
   Cash and cash equivalents                                                     43 379 396          72 546 393        
   Assets held-for-sale                                            11            83 812 338                   -                  
   Total current assets                                                         274 075 557         308 014 449       
   Total assets                                                               1 494 811 387       1 877 369 117     
   EQUITY                                                                                                              
   Stated capital                                                  12           850 050 607         692 928 553       
   Share-based payment reserve                                                   33 664 877          26 546 123        
   Other reserves                                                                20 925 337          19 084 517        
   (Accumulated loss)/retained earnings                                        (465 810 406)        103 072 976       
   Total equity attributable to owners of the company                           438 830 415         841 632 169       
   Non-controlling interest                                                      54 012 482          (3 374 543)       
   Total equity                                                                 492 842 897         838 257 626       
   LIABILITIES                                                                                                         
   Borrowings                                                      13           189 605 397         251 740 913       
   Mine closure and environmental rehabilitation provision         14           263 471 962         270 058 375       
   Vendor liability                                                              30 225 541          31 768 646        
   Deferred taxation                                                            124 275 448         129 179 335       
   Deferred income                                                                        -           5 417 691         
   Total non-current liabilities                                                607 578 348         688 164 960       
   Borrowings                                                      13           201 682 303         109 375 308       
   Financial liabilities                                                                  -              67 816            
   Trade and other payables                                                     106 183 447         216 843 420       
   Taxation                                                                       2 731 642                   -                  
   Provisions                                                                             -          24 659 987        
   Liabilities held-for-sale                                       11            83 792 750                   -                  
   Total current liabilities                                                    394 390 142         350 946 531       
   Total equity and liabilities                                               1 494 811 387       1 877 369 117     
                                                                                                                       
   The accompanying notes are an integral part of these provisional condensed consolidated financial statements.                             


Provisional condensed consolidated statement of changes in equity for the year ended 31 March 2016

                                                           Stated            Share-             Other              (Accu-        
                                                          capital             based          reserves             mulated         
                                                                R           payment                 R              loss)/        
                                                                            reserve                              retained        
                                                                                  R                              earnings        
                                                                                                                        R             
   Balance at 31 March 2014                           692 928 553        18 788 161        19 214 764         134 101 846        
   Net loss for the year                                        -                 -                 -         (31 028 870)        
   Other comprehensive income for the year                      -                 -          (130 247)                  -        
   Dividends(1)                                                 -                 -                 -                   -        
   Transactions with owners of the company 
   recognised directly in equity                                                                                              
   Share-based payments                                         -         7 757 962                 -                   -        
   Balance at 31 March 2015                           692 928 553        26 546 123        19 084 517         103 072 976        
   Net loss for the year                                        -                 -                 -        (250 587 708)       
   Other comprehensive income for the year                      -                 -         1 840 820                   -        
   Dividends(1)                                                 -                 -                 -                   -        
   Transactions with owners of the company 
   recognised directly in equity                                                                                              
   Ordinary shares issued (note 12)                   159 697 224                 -                 -                   -        
   Share issue expenses                                (2 575 170)                -                 -                   -        
   Share-based payments                                         -         7 118 754                 -                   -        
   Changes in ownership interest in subsidiaries(2)             -                 -                 -        (318 295 674)        
   Balance at 31 March 2016                           850 050 607        33 664 877        20 925 337        (465 810 406)       
                     

Provisional condensed consolidated statement of changes in equity for the year ended 31 March 2016 (continued)

                                                           Total                Non-                Total     
                                                           equity        controlling               equity    
                                                     attributable           interest                   R    
                                                        to owners               (NCI)                       
                                                           of the                  R                        
                                                          company                                           
                                                                R                                           
   Balance at 31 March 2014                           865 033 324         51 183 265         916 216 589    
   Net loss for the year                              (31 028 870)       (40 826 037)        (71 854 907)    
   Other comprehensive income for the year               (130 247)                 -            (130 247)    
   Dividends(1)                                                 -        (13 731 771)        (13 731 771)    
   Transactions with owners of the company 
   recognised directly in equity                                    
   Share-based payments                                 7 757 962                  -           7 757 962    
   Balance at 31 March 2015                           841 632 169         (3 374 543)        838 257 626    
   Net loss for the year                             (250 587 708)       (46 688 276)       (297 275 984)   
   Other comprehensive income for the year              1 840 820                  -           1 840 820    
   Dividends(1)                                                 -         (7 532 912)         (7 532 912)    
   Transactions with owners of the company 
   recognised directly in equity                                    
   Ordinary shares issued (note 12)                   159 697 224                  -         159 697 224    
   Share issue expenses                                (2 575 170)                 -          (2 575 170)    
   Share-based payments                                 7 118 754                  -           7 118 754    
   Changes in ownership interest in subsidiaries(2)  (318 295 674)       111 608 213        (206 687 461)    
   Balance at 31 March 2016                           438 830 415         54 012 482         492 842 897    
                                        
    (1) On subsidiary level, Keaton Mining Proprietary Limited (Keaton Mining) declared and paid dividends of R29 million 
       (FY15: R52.8 million) to its shareholders during the year. The company held a 74% interest in Keaton Mining when 
       these dividends were declared. On 13 November 2015, the company acquired the remaining 26% interest in Keaton Mining 
       (refer to note 12).                                                                                                     
   (2) The premium paid for the non-controlling interests in Keaton Mining, Leeuw Mining and Exploration Proprietary 
       Limited (LME), Amalahle Exploration Proprietary Limited (Amalahle) and Labohlano Trading 46 Proprietary Limited 
       (Labohlano) was recorded as an adjustment against retained earnings in terms of IFRS 10 Consolidated Financial 
       Statements, due to the controlling interests of 74% held in these subsidiaries by the group prior to these 
       transactions. Had the group not held a controlling interest in these subsidiaries, this premium would have been 
       allocated to the relevant assets and liabilities, based on fair value, with the residual being allocated to 
       goodwill. Refer to note 12 for additional information.                                     


Provisional condensed consolidated statement of cash flows for the year ended 31 March 2016
                                                                              Year ended          Year ended    
                                                                                31 March            31 March     
                                                                                    2016                2015    
                                                                               (Reviewed)           (Audited)   
                                                                                       R                   R    
 Cash flows from operating activities(1)                                     470 183 922         536 917 578    
 Cash flows from investing activities(2)                                    (404 355 752)       (508 882 899)    
 Cash flows from financing activities(3)                                     (89 489 251)        (25 044 330)    
 Net (decrease)/increase in cash and cash equivalents                        (23 661 081)          2 990 349    
 Cash and cash equivalents at the beginning of the year                       72 546 393          69 556 044    
 Cash and cash equivalents at the end of the year                             48 885 312          72 546 393    
                                                                                                                
   (1) Operations generated net cash of R470.2 million in FY16 compared to R536.9 million in FY15 after taking working 
       capital outflow of R33.3 million (FY15: R34.1 million) and net finance cost of R19.4 million (FY15: R18.4 million) 
       into account. The decrease in operational cash was as a result of the poor operational performance at Vaalkrantz.             
   (2) Cash invested in investing activities decreased from R508.9 million in FY15 to R404.4 million in FY16. The 
       decrease in investing activities relates mainly to the year-on-year decrease in capital spend at Vanggatfontein of 
       R39.8 million (FY15 included the construction of the Vanggatfontein filter press plant of R34.8 million) and 
       R10.9 million at the Vaalkrantz operation. Group capital spend on intangible assets also decreased year-on-year by 
       R11.5 million, mainly relating to the implementation of the Enterprise Resource Planning (ERP) system of R5.9 million 
       in FY15. The group further liquidated R20.8 million of its restricted investments during the year as a result of an 
       overfunded position.                                                       
   (3) Financing activities utilised cash of R89.5 million in FY16 compared to R25 million in FY15. This is mainly due 
       to borrowings repaid of R80.4 million (FY15: R59.8 million), dividends paid to minority shareholders at subsidiary 
       level of R7.5 million (FY15: R13.7 million) and the acquisition of the 26% minority shareholding in certain 
       subsidiaries for R18.6 million. These were offset by an additional drawdown of R20 million on the Investec Bank 
       Limited term facility.                                                       


Segment report for the year ended 31 March 2016
                                                                   Revenue             Operating profit/(loss) before     Depreciation/amortisation    
                                                                                          depreciation/amortisation                                    
                                                         Year ended       Year ended      Year ended      Year ended      Year ended      Year ended   
                                                          31 March         31 March        31 March        31 March        31 March        31 March    
                                                               2016             2015            2016            2015            2016            2015   
                                                                  R                R               R               R               R               R   
   Vanggatfontein Colliery(1)(4)                      1 032 079 534    1 181 054 551     620 227 785     626 861 710   (442 377 223)   (423 026 499)   
   Vaalkrantz Colliery(1)(5)(7)(9)                      176 821 851      266 646 732    (138 869 519)   (88 810 932)      (3 992 228)   (18 327 526)   
   Sterkfontein Project                                           -                -               -               -               -               -   
   Keaton Energy Holdings Limited(2)(10)                130 081 591      144 701 219    (169 248 281)   (26 702 168)               -               -   
   Keaton Administrative and Technical Services 
   Proprietary Limited(2)                                35 621 484       38 137 163     (9 377 923)       5 261 187     (3 267 157)       (899 670)   
   Leeuw Braakfontein Project(11)                                 -                -    (174 517 839)    (8 643 883)               -               -   
   Koudelager Project(7)(9)                                       -                -               -               -               -               -   
   Moabsvelden Project(2)                                         -           87 500    (59 428 359)         635 262               -               -   
   Other segments(2)(3)(8)(9)                                     -          225 000        (18 540)     (3 454 020)           (397)        (17 524)   
                                                                                                                                                       
   Total segments                                     1 374 604 460    1 630 852 165      68 767 324     505 147 156    (449 637 005)  (442 271 219)   
   Reconciliation to statements of profit or loss 
   and other comprehensive income and financial 
   position                                                                                                                                            
   Intersegment, deferred taxation assets and 
   liabilities and other consolidation adjustments     (165 703 075)   (183 150 882)     134 723 377    (27 661 283)         862 513               -   
                                                      1 208 901 385    1 447 701 283     203 490 701     477 485 873    (448 774 492)  (442 271 219)   
   Net finance cost(6)                                                                                                                                 
   Elimination of discontinued operations                                                                                                              
   Net (loss)/profit before taxation                                                                                                                   
   Total assets and liabilities                                                                                                                        


Segment report for the year ended 31 March 2016 (continued)

                                                           Operating profit/(loss) after                Segment assets               Segment liabilities         
                                                             depreciation/amortisation 
                                                            Year ended       Year ended              At               At               At              At     
                                                             31 March         31 March         31 March         31 March         31 March        31 March     
                                                                  2016             2015             2016             2015             2016            2015    
                                                                     R                R                R                R                R               R    
   Vanggatfontein Colliery(1)(4)                           177 850 562      203 835 211      881 546 501      937 240 995    1 051 402 348   1 150 738 857    
   Vaalkrantz Colliery(1)(5)(7)(9)                        (142 861 747)    (107 138 458)     137 062 919      137 443 556      469 253 210     357 638 745    
   Sterkfontein Project                                              -                -       66 042 942       66 014 112       74 971 455      72 702 768    
   Keaton Energy Holdings Limited(2)(10)                  (169 248 281)     (26 702 168)     954 510 501      961 940 903       24 009 463      23 966 952    
   Keaton Administrative and Technical Services 
   Proprietary Limited(2)                                  (12 645 080)       4 361 517       11 623 121       17 254 237       56 443 669      47 865 641    
   Leeuw Braakfontein Project(11)                         (174 517 839)      (8 643 883)     153 526 867      305 464 569      124 128 641      98 613 931    
   Koudelager Project(7)(9)                                          -                -        3 729 601       26 140 496                -               -    
   Moabsvelden Project(2)                                  (59 428 359)         635 262      342 107 050      339 984 582      134 367 095      72 453 903    
   Other segments(2)(3)(8)(9)                                  (18 937)      (3 471 544)     334 043 081      333 232 451      129 484 659     113 421 178    
                                                                                                                                                              
   Total segments                                         (380 869 681)      62 875 937    2 884 192 583    3 124 715 901    2 064 060 540   1 937 401 975    
   Reconciliation to statements of profit or loss 
   and other comprehensive income and financial 
   position                                                                         
   Intersegment, deferred taxation assets and 
   liabilities and other consolidation adjustments         135 585 890      (27 661 283)  (1 389 381 196)  (1 247 346 784)  (1 062 092 050)   (898 290 484)    
                                                          (245 283 791)      35 214 654    1 494 811 387    1 877 369 117    1 001 968 490   1 039 111 491    
   Net finance cost(6)                                     (54 159 822)     (48 103 717)                                                                           
   Elimination of discontinued operations                  128 776 357       92 093 704                                                                            
   Net (loss)/profit before taxation                      (170 667 256)      79 204 641                                                                            
   Total assets and liabilities                                                            1 494 811 387    1 877 369 117     1 001 968 490  1 039 111 491     
 
 
 
   (1) Revenue represents sales to external customers only.                                                                                                    
   (2) Revenue represents intersegment sales only.                                                                                                               
   (3) Includes the subsidiaries Amalahle Exploration Proprietary Limited, Labohlano Trading 46 Proprietary Limited, 
       Ausco Finance Proprietary Limited, Ausco Services Proprietary Limited, Focus Coal Investments Proprietary Limited, 
       Xceed Resourced Limited and the Balgray Prospecting Rights.    
   (4) Coal sales to a major customer as a percentage of revenue exceeded 92% (31 March 2015: 90%).                                  
   (5) Coal sales to three major customers as a percentage of revenue amounted to 73%, 14% and 10% (two major customers 
       31 March 2015: 39% and 37%).                                                                                                   
   (6) Net finance cost is not reported as forming part of each segment profit or loss as these are not measured or 
       reported to the chief operating decision maker (CODM) in connection with the segment but rather on a collective 
       company/group basis.                                                
   (7) Classified as a discontinued operation. Refer to note 7.                                                                                
   (8) Amalahle Exploration Proprietary Limited and the Balgray Prospecting Rights included in other segments are 
       classified as discontinued operation. Refer to note 7.                                                                               
   (9) Includes impairment charge of R85.9 million (2015: R56.5 million relating to Vaalkrantz), allocated as follows: 
       Vaalkrantz R53.4 million, Koudelager R27 million and other segment R5.5 million (Amalahle R0.5 million and Balgray 
       R5 million).                                             
   (10)Includes impairment charge of R260.5 million (2015: R126.6 million).                                         
   (11)Includes impairment charge of R159.2 million (2015: Rnil), as disclosed in note 5.                                                                 


Notes to the provisional condensed consolidated financial statements
for the year ended 31 March 2016


1    Basis of preparation and accounting policies                                                    
     The condensed consolidated financial statements are prepared in accordance with the requirements of the JSE 
     Limited Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. 
     The Listings Requirements require provisional reports to be prepared in accordance with the framework concepts 
     and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the 
     SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements 
     as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information 
     required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the 
     condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in 
     the previous consolidated financial statements.                                                      
                                                                                
                                                                                Year ended           Year ended           
                                                                                  31 March             31 March             
                                                                                      2016                 2015                 
                                                                                 (Reviewed)           (Restated)*          
                                                                                         R                    R                    
2      Revenue                                                                                                        
       Coal sales                                                              829 945 776          865 723 757       
       Transportation income                                                   202 133 758          315 330 794       
                                                                             1 032 079 534        1 181 054 551     
    
     * The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
       Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
       within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
       provisional condensed consolidated statement of changes in equity for this period is not required to be restated. 
   
                                                                                Year ended           Year ended           
                                                                                  31 March             31 March             
                                                                                      2016                 2015                 
                                                                                 (Reviewed)           (Restated)*          
                                                                                         R                    R      
3       Cost of sales                                                                                               
        Mining contractors                                                     504 839 492          490 410 175      
        Depreciation                                                           428 054 868          430 131 768       
        Fuel                                                                    89 531 394          122 702 113      
        Labour                                                                  11 277 393           11 755 624       
        Other direct mining costs                                               10 916 214            9 503 369        
        Transport costs                                                        181 954 225          285 193 420      
        Inventory movement                                                      13 532 521            3 705 610         
        Deferred stripping capitalised(1)                                     (375 488 648)        (388 801 090)    
        Royalty taxation                                                         4 159 286            4 337 874        
                                                                               868 776 745          968 938 863
   
        (1) The deferred stripping credit relates to costs incurred, in an opencast operation, in advance to pre-strip 
            an area of waste in order to expose the Coal Reserve. The costs are capitalised to mine development costs in 
            property, plant and equipment until such time as the coal exposed is subsequently mined. The stripping activity 
            asset is depreciated on the units-of-production method, over the expected production life of the identified 
            component of the Coal Reserve.    

        * The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
          Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
          within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
          provisional condensed consolidated statement of changes in equity for this period is not required to be restated.

                                                                                Year ended           Year ended           
                                                                                  31 March             31 March             
                                                                                      2016                 2015                 
                                                                                 (Reviewed)           (Restated)*          
                                                                                         R                    R                      
4       Other income                                                                                                
        Discard sales                                                             987 796             1 423 839        
        Sundry income(1)                                                       40 204 450             9 912 075        
                                                                               41 192 246            11 335 914       
        (1) Included in sundry income for the current financial year is a credit of R37.5 million relating to the reversal 
            of the Megacube liability previously included under trade and other payables. Refer to notes 15 and 19 for additional 
            information.                                                                                                      
  
         * The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
           Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
           within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
           provisional condensed consolidated statement of changes in equity for this period is not required to be restated.

                                                                               Year ended           Year ended           
                                                                                 31 March             31 March             
                                                                                     2016                 2015                 
                                                                                (Reviewed)           (Restated)*          
                                                                                        R                    R           
5       Operating (loss)/profit before net finance cost                                                            
        Operating (loss)/profit before net finance cost are stated after:                                          
        Impairment of intangible assets(1)                                    159 161 739                    -               
        Loss on initial recognition of a financial liability(2)                61 525 698                    -  

        (1) Impairment recognised on intangible assets of the Leeuw Braakfontein Project, refer to note 10 for additional 
            disclosure. This impairment charge, included in mining and related expenses, is the main reason for the increase in 
            mining and related expenses year-on-year.                                                   
        (2) The loss on initial recognition of the Gunvor SA loan as disclosed in note 13, is the main reason for the increase 
            in administrative expenses year-on-year.                                                   
      
         * The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
           Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
           within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
           provisional condensed consolidated statement of changes in equity for this period is not required to be restated.
                                                                                                 
                                                                               Year ended           Year ended        
                                                                                 31 March             31 March          
                                                                                     2016                 2015              
                                                                                (Reviewed)           (Restated)*       
                                                                                        R                    R                 
6       Income taxation (credit)/expense                                                                              
        Current taxation expense                                                                                      
        Current year                                                            2 736 258                    -               
        Deferred taxation                                                                                             
        Origination and reversal of temporary differences                      (4 903 887)          42 188 623     
                                                                               (2 167 629)          42 188 623  
  
        The income taxation credit of R2.2 million for the year ended 31 March 2016 is mainly attributable to:                                   
        - Keaton Mining?s deferred taxation expense of R38.7 million, in line with that of FY15, as a result of the continued
          profitable performance at Vanggatfontein. The deferred taxation liability in the statement of financial position accordingly 
          increased by the same amount.                                                   
        - Keaton Energy Holdings Limited?s taxation expense of R3.7 million of which R2.7 million relates to current taxation.                       
        - LBC?s deferred taxation credit of R44.6 million after the reversal of the previously recognised deferred taxation 
          liability. The reversal is as a result of the impairment loss recognised on intangible assets of R159.2 million 
          (refer to notes 5 and 10). The deferred taxation liability in the statement of financial position accordingly decreased 
          by the same amount.  
                                                 
         * The audited 31 March 2015 group results have been restated for the effects of the application of IFRS 5 Non-current
           Assets Held-for-sale and Discontinued Operations following management?s decision to dispose of certain operations
           within the group (refer to note 7). The provisional condensed consolidated statement of financial position and the
           provisional condensed consolidated statement of changes in equity for this period is not required to be restated.        
                          
7      Discontinued operations                                                                                                                   
       The Vaalkrantz operation (part of LME) continued experiencing challenging geological conditions during the current financial 
       year. This, coupled with the closure of two production sections as a result of safety and difficult mining conditions, continued 
       depressed coal prices, increased costs and lower than expected yields resulted in the Board of Directors committing to a plan 
       to dispose of the Vaalkrantz operation in September 2015. In addition, a decision was taken to dispose of the Balgray Project 
       and the Koudelager Project (both part of LME) as they are seen as life extensions to the Vaalkrantz operation, as well as the
       Mooiklip Coal project (part of Amalahle). This disposal group is classified as a discontinued operation as this sale is part 
       of a single co-ordinated plan to dispose of the group?s anthracite assets (separate major line of business) which are all 
       situated in KwaZulu-Natal (geographic area of operations).   
   
       The Braakfontein Thermal Coal Project, held by LBC, a wholly owned subsidiary of LME, is specifically excluded from the 
       transaction. LBC, which will be unbundled from LME, will become a direct wholly owned subsidiary of the company.
   
       The company entered into a Sale of Shares and Claims Agreement with Bayete Energy Resources Proprietary Limited (BER) on or 
       about 11 February 2016 as announced on 15 February 2016. There are still a number of suspensive conditions which have to be 
       met for the sale to become effective, including section 11 consent from the Minister of Mineral Resources in terms of the 
       Mineral Petroleum and Resources Development Act, 28 of 2002 (MPRDA). The company also simultaneously entered into a management 
       agreement with Witbank Mineral Resources Proprietary Limited (WMR), a related party to BER for the management of LME up to and 
       until the Sale of Shares and Claims Agreement with BER becomes unconditional.
   
       As a consequence of the occurrence of a force majeure event, namely the drought which has resulted in Vaalkrantz Colliery 
       having no water within which to conduct its operations, management decided to place Vaalkrantz Colliery on care and maintenance 
       with effect from 1 May 2016 (refer to note 19 for additional information). The Sale of Shares and Claims Agreement as well as 
       the Management Agreement are still effective with some of the clauses of the Management Agreement being temporarily suspended. 
       Management expects that the sale with BER will be completed within the next 12 months. 
   
       These segments were not previously classified as held-for-sale or as discontinued operations. The comparative statements of 
       profit or loss and other comprehensive income have been restated to show the discontinued operations separately from continuing 
       operations.                                                             

       Results of discontinued operations                                                                         
                                                                           Year ended          Year ended              
                                                                             31 March            31 March                
                                                                                 2016                2015                    
                                                                            (Reviewed)          (Reviewed)              
                                                                                    R                   R                       
       DISCONTINUED OPERATIONS                                                                                         
       Revenue                                                            176 821 851         266 646 732            
       Cost of sales                                                     (209 022 228)       (275 243 408)          
       Gross loss                                                         (32 200 377)         (8 596 676)            
       Other income                                                         4 715 000           8 595 246              
       Operating expenses                                                 (99 650 936)        (90 453 422)           
       Operating loss before net finance cost                            (127 136 313)        (90 454 852)           
       Net finance cost                                                    (1 640 044)         (1 638 852)            
       Finance income                                                       1 101 540             872 881                
       Finance cost                                                        (2 741 584)         (2 511 733)            
       Net loss before taxation                                          (128 776 357)        (92 093 704)           
       Income taxation expense                                                      -         (16 777 221)           
       Net loss from discontinued operations                             (128 776 357)       (108 870 925)                       
       Net loss attributable to:                                                                                       
       Owners of the company                                              (94 325 973)        (59 193 962)           
       Non-controlling interest                                           (34 450 384)        (49 676 963)           
                                                                         (128 776 357)       (108 870 925)          
       Cash flows from discontinued operations                                                                       
       Cash flows from operating activities                               (36 920 578)         20 784 986             
       Cash flows from investing activities                               (13 700 452)        (28 265 695)           
       Cash flows from financing activities                                   (73 764)         (3 641 176)            
                                                                                                                  
                                                           
                                                                           Year ended         Year ended             
                                                                             31 March           31 March               
                                                                                 2016               2015                   
                                                                            (Reviewed)          (Audited)              
8       Earnings and net asset value per share                                                                                
        The calculation of basic earnings per share is based on           
        net (loss)/profit for the year, attributable to owners            
        of the company, divided by the weighted average number            
        of ordinary shares in issue during the year.                      
        Net (loss)/profit attributable to owners of the company (rand)   (250 587 708)       (31 028 870)          
        Continuing operations                                            (156 261 735)        28 165 092            
        Discontinued operations                                           (94 325 973)       (59 193 962)          
        Weighted average number of ordinary shares in issue               251 263 124        224 354 265           
        Basic earnings per share (cents)                                        (99.7)             (13.8)                
        Continuing operations                                                   (62.2)              12.6                  
        Discontinued operations                                                 (37.5)             (26.4)                
        Diluted earnings per share                                                                                                       
        The calculation of diluted earnings per share is based on net 
        (loss)/profit for the year attributable to owners of the 
        company. The weighted average number of shares in issue is 
        adjusted to assume conversion of all potential dilutive shares 
        as a result of share options granted under the share option 
        schemes in issue. A calculation is performed to determine the 
        number of shares that could have been acquired at fair value, 
        determined as the average annual market share price of the 
        company?s shares, based on the monetary value of the 
        subscription rights attached to the outstanding share options. 
        The number of shares calculated as above is compared with 
        the number of shares that would have been issued assuming 
        the exercise of the share options.                                                            
        Weighted average number of ordinary shares in issue               251 263 124        224 354 265           
        Potential shares                                                           -           3 673 899             
        Weighted average number of shares for diluted earnings per share  251 263 124        228 028 164           
        Diluted earnings per share (cents)(1)                                   (99.7)             (13.8)                
        Continuing operations(2)                                                (62.2)              12.4                  
        Discontinued operations(1)                                              (37.5)             (26.4)                
                                                                                                                             
        (1) Anti-dilutive.                                                                                                    
        (2) Anti-dilutive in the current year.                                                    

                                                                                                                               
       Headline earnings per share                                                                                                      
       The calculation of headline earnings, net of taxation and NCI, per share is based on the basic earnings 
       per share calculation adjusted for the following items:                                                              
                                                                                                                    
                                                                             Year ended       Year ended       Year ended        Year ended             
                                                                          31 March 2016    31 March 2016    31 March 2015     31 March 2015          
                                                                                  Gross              Net            Gross               Net         
                                                                              (Reviewed)       (Reviewed)        (Audited)         (Audited)              
                                                                                      R                R                R                 R          
       Continuing operations                                                                                                                         
       Net (loss)/profit for the year attributable to owners            
       of the company                                                                       (156 261 735)                        28 165 092     
       Adjusted for:                                                                                                                                 
       Loss/(profit) on disposal of property, plant and equipment             166 124            135 425           (67 738)         (35 668)              
       Impairment of intangible assets                                    159 161 739        114 596 453                 -                -          
       Headline earnings - continuing operations                                             (41 529 857)                        28 129 424            
       Discontinued operations                                                                                                                       
       Net loss for the year attributable to owners of the company                           (94 325 973)                       (59 193 962)          
       Adjusted for:                                                                                                                                 
       Loss on disposal of property, plant and equipment                            -                  -         3 600 000        1 918 080             
       Impairment of assets                                                85 938 540         68 307 641        56 532 043       30 120 273            
       Headline earnings - discontinued operations                                           (26 018 332)                       (27 155 609)          
       Total headline earnings                                                               (67 548 189)                           973 815               
                                                                                                   Cents                              Cents                 
       Headline earnings per share                                                                 (26.9)                               0.4                   
       Continuing operations                                                                       (16.5)                              12.5                  
       Discontinued operations                                                                     (10.4)                             (12.1)                
       Diluted headline earnings per share(2)                                                      (26.9)                               0.4                   
       Continuing operations(2)                                                                    (16.5)                              12.3                  
       Discontinued operations(1)                                                                  (10.4)                             (12.1)                
                                                                                                                                                  
       (1) Anti-dilutive.                                                                                                                                
       (2) Anti-dilutive in the current year.                                                                                                            
                                                                                                                  
                                                                           Year ended         Year ended       
                                                                             31 March           31 March         
                                                                                 2016               2015             
                                                                            (Reviewed)          (Audited)        
      Net asset value per share                                                                               
      Number of shares in issue                                           291 994 256        224 442 642      
      Net asset value per share (cents)                                           169                373              
                                                                                                              
                                                                            Number of          Number of        
                                                                               shares             shares           
                                                                                 2016               2015             
                                                                            (Reviewed)          (Audited)        
      Weighted/weighted diluted average number of ordinary shares:                                            
      Shares in issue at 1 April 2015 (1 April 2014)                      224 442 642        224 310 979     
      Effect of shares issued 2 December 2014                                       -             43 286          
      Effect of shares issued 11 August 2015                                2 442 231                  -               
      Effect of shares issued 13 November 2015                             24 378 251                  -               
      Weighted number of ordinary shares at reporting date                251 263 124        224 354 265     
      Potential diluted shares                                                      -          3 673 899       
      Diluted number of ordinary shares in issue at reporting date        251 263 124        228 028 164     
                                                                                                                  

                                                                                 Land,                  Mine             Assets          Plant and   
                                                                             buildings           development              under          equipment    
                                                                         and leasehold                     R       construction                  R   
                                                                          improvements                                        R                      
                                                                                     R                                                               
9     Property, plant and equipment                                                                                                                    
      Cost                                                                                                                                             
      31 March 2016                                                                                                                                    
      Opening balance                                                       35 243 620         1 618 181 752         34 829 528        239 736 649     
      Reclassification to assets held-for-sale (refer to note 11)          (12 120 000)         (200 406 749)                 -        (85 675 108)     
      Additions(1)                                                              72 360           379 877 839          6 392 910          3 898 036     
      Change in estimates - environmental rehabilitation assets                      -            11 690 416                  -           (101 000)     
      Reclassification(2)                                                            -                     -        (41 222 438)        41 222 438     
      Disposals                                                                      -                     -                  -                  -     
      Closing balance                                                       23 195 980         1 809 343 258                  -        199 081 015     
      31 March 2015                                                                                                                                    
      Opening balance                                                       38 818 599         1 167 097 812                  -        234 979 584     
      Additions                                                                 25 021           408 959 920         34 829 528          4 489 999     
      Change in estimates - environmental rehabilitation assets                      -            42 124 020                  -            267 066     
      Disposals                                                             (3 600 000)                    -                  -                  -     
      Closing balance                                                       35 243 620         1 618 181 752         34 829 528        239 736 649     
      Accumulated depreciation and impairment losses                                                                                                   
      31 March 2016                                                                                                                                    
      Opening balance                                                      (10 344 242)       (1 144 563 243)                 -        (83 744 609)     
      Reclassification to assets held-for-sale (refer to note 11)            6 045 862           166 889 286                  -         70 974 438     
      Depreciation expense                                                    (507 642)         (425 644 604)                 -        (11 403 986)     
      Disposals                                                                      -                     -                  -                  -     
      Closing balance                                                       (4 806 022)       (1 403 318 561)                 -        (24 174 157)     
      31 March 2015                                                                                                                                    
      Opening balance                                                       (3 440 152)         (668 685 871)                 -        (60 553 729)     
      Depreciation expense                                                    (858 228)         (434 285 950)                 -        (18 167 598)     
      Impairment loss                                                       (6 045 862)          (41 591 422)                 -         (5 023 282)     
      Disposals                                                                      -                     -                  -                  -     
      Closing balance                                                      (10 344 242)       (1 144 563 243)                 -        (83 744 609)     
      Carrying amount                                                                                                                                  
      31 March 2016                                                         18 389 958           406 024 697                  -        174 906 858     
      31 March 2015                                                         24 899 378           473 618 509         34 829 528        155 992 040     
      All plant and equipment, except leasehold improvements, are owned.                                                                               

                                                                        
                                                                                  Mine       Furniture and             Other                 Total     
                                                                        infrastructure           equipment                 R                     R    
                                                                                     R                   R                                                     
                                                                                                                                                            
9     Property, plant and equipment (continued)                                                                                                                 
      Cost                                                                                                                                            
      31 March 2016                                                                                                                                   
      Opening balance                                                     109 221 019            4 310 325         7 252 026         2 048 774 919    
      Reclassification to assets held-for-sale (refer to note 11)         (13 461 262)          (1 933 736)       (2 183 486)         (315 780 341)    
      Additions(1)                                                             44 000              339 913           594 647           391 219 705    
      Change in estimates - environmental rehabilitation assets            (2 242 757)                   -                 -             9 346 659    
      Reclassification(2)                                                           -                    -                 -                     -    
      Disposals                                                                     -             (133 260)         (929 892)           (1 063 152)    
      Closing balance                                                      93 561 000            2 583 242         4 733 295         2 132 497 790    
      31 March 2015                                                                                                                                   
      Opening balance                                                     109 024 051            3 708 461         5 169 055         1 558 797 562    
      Additions                                                               730 412              659 776         2 622 843           452 317 499    
      Change in estimates - environmental rehabilitation assets              (533 444)                   -                 -            41 857 642    
      Disposals                                                                     -              (57 912)         (539 872)           (4 197 784)    
      Closing balance                                                     109 221 019            4 310 325         7 252 026         2 048 774 919    
      Accumulated depreciation and impairment losses                                                                                                  
      31 March 2016                                                                                                                                   
      Opening balance                                                     (36 068 745)          (2 353 208)       (3 082 962)       (1 280 157 009)    
      Reclassification to assets held-for-sale (refer to note 11)          11 245 557            1 817 348         1 879 918           258 852 409    
      Depreciation expense                                                 (4 329 576)            (507 356)         (831 920)         (443 225 084)    
      Disposals                                                                     -               77 969           251 140               329 109    
      Closing balance                                                     (29 152 764)            (965 247)       (1 783 824)       (1 464 200 575)    
      31 March 2015                                                                                                                                   
      Opening balance                                                     (24 871 878)          (1 677 011)       (2 413 841)         (761 642 482)    
      Depreciation expense                                                 (7 414 681)            (707 678)         (831 877)         (462 266 012)    
      Impairment loss                                                      (3 782 186)             (24 828)          (64 463)          (56 532 043)    
      Disposals                                                                     -               56 309           227 219               283 528    
      Closing balance                                                     (36 068 745)          (2 353 208)       (3 082 962)       (1 280 157 009)    
      Carrying amount                                                                                                                                 
      31 March 2016                                                        64 408 236            1 617 995         2 949 471           668 297 215    
      31 March 2015                                                        73 152 274            1 957 117         4 169 064           768 617 910    
      All plant and equipment, except leasehold improvements, are owned.                                                                                          
 
  
      (1) Deferred stripping additions of R375.5 million (2015: R388.8 million) are included in mine development. 
          The deferred stripping additions relate to costs incurred, in an opencast operation, in advance to pre-strip an 
          area of waste in order to expose the Coal Reserve. The costs are capitalised to mine development costs in property, 
          plant and equipment until such time as the coal exposed is subsequently mined. The stripping activity asset is 
          depreciated on the units-of-production method, over the expected production life of the identified component of 
          the Coal Reserve.                                                                                                                   
      (2) The reclassification from assets under construction to plant and equipment relates to the commissioning 
          of the filter press plant at the Vanggatfontein operation during the current year.                             
                                                                                                            

                                                                   Exploration and evaluation assets                        Other           
                                                                Mineral and       Drilling          Other      Richards Bay       Computer           Total    
                                                                Prospecting       expenses     evaluation     Coal Terminal       software               R    
                                                                     Rights              R       expenses           Quattro              R                    
                                                                   acquired                             R            Scheme                             
                                                                          R                                   participation
                                                                                                                          R 
10      Intangible assets                                                                                                                                     
        Cost                                                                                                                                                  
        31 March 2016                                                                                                                                         
        Opening balance                                         611 145 957     20 141 021     61 403 891       22 717 726       5 947 720     721 356 315    
        Reclassification to assets held-for-sale (refer to      (24 772 826)      (207 120)   (12 750 069)     (22 717 726)              -     (60 447 741)    
        note 11)                                                                                                                                              
        Additions                                                         -        250 777      4 172 320                -         571 800       4 994 897    
        Closing balance                                         586 373 131     20 184 678     52 826 142                -       6 519 520     665 903 471    
        31 March 2015                                                                                                                                         
        Opening balance                                         611 145 957     18 573 644     51 658 576       22 717 726               -     704 095 903    
        Additions                                                         -      1 567 377      9 745 315                -       5 947 720      17 260 412    
        Closing balance                                         611 145 957     20 141 021     61 403 891       22 717 726       5 947 720     721 356 315    
        Accumulated amortisation and impairment losses                                                                                                        
        31 March 2016                                                                                                                                         
        Opening balance                                                   -              -              -       (4 922 175)              -      (4 922 175)    
        Reclassification to assets held-for-sale (refer to                -              -              -        4 922 175               -       4 922 175    
        note 11)                                                                                                                                              
        Amortisation                                                      -              -              -                -      (2 173 238)     (2 173 238)    
        Impairment loss(1)                                     (145 530 060)             -    (13 631 679)               -               -    (159 161 739)   
        Closing balance                                        (145 530 060)             -    (13 631 679)               -      (2 173 238)   (161 334 977)   
        31 March 2015                                                                                                                                         
        Opening balance                                                   -              -              -       (3 407 661)              -     (3 407 661)    
        Amortisation                                                      -              -              -       (1 514 514)              -     (1 514 514)    
        Closing balance                                                   -              -              -       (4 922 175)              -     (4 922 175)    
        Carrying amount                                                                                                                                       
        31 March 2016                                           440 843 071     20 184 678     39 194 463                -       4 346 282    504 568 494    
        31 March 2015                                           611 145 957     20 141 021     61 403 891       17 795 551       5 947 720    716 434 140

        (1) To date, the Leeuw Braakfontein Project (reported as a separate segment) has been evaluated on the basis 
            of both an export and domestic thermal coal operation. Continued depressed export coal pricing and a bleak
            medium-term view on the Richards Bay API4 index has had a material impact on the economics of Braakfontein. 
            We continue to evaluate feasibility options around exclusive domestic supply. However, until the pricing and 
            delivery schedule for such supply are firmed up, the economics of Braakfontein remain depressed in line with 
            global seaborne coal prices. Taking into account the aforementioned information, using the updated life-of-mine 
            plan of 17 years, market-related coal prices and a real discount rate of 13%, the group calculated the recoverable 
            amount for LBC (using a value-in-use model) of R115.3 million, which resulted in an impairment charge of 
            R159.2 million recorded in mining and related expenses in the statement of profit or loss.             


11      Disposal group held-for-sale                                                                  
        As disclosed in note 7, the Board committed to a plan to sell the Vaalkrantz operation, the Balgray Coal Project, the 
        Koudelager Coal Project and the Mooiklip Coal Project (disposal group). The disposal group is accordingly presented 
        as held-for-sale. At 31 March 2016, the disposal group comprised the following assets and liabilities:  

                                                                     Notes                     At              
                                                                                         31 March        
                                                                                             2016            
                                                                                        (Reviewed)      
                                                                                                R               
        Assets                                                                                        
        Property, plant and equipment                                 11.1             26 578 141     
        Intangible assets                                             11.2              5 961 689      
        Restricted investments                                                         29 650 899     
        Inventory                                                                       4 633 734      
        Trade and other receivables                                                    11 481 959     
        Cash and cash equivalents                                                       5 505 916      
                                                                                       83 812 338     
        Liabilities                                                                                   
        Borrowings                                                                         72 234         
        Mine closure and environmental rehabilitation provision                        34 648 900     
        Trade and other payables                                                       28 786 616     
        Provisions                                                                     20 285 000     
                                                                                       83 792 750 

        An impairment loss of R22 million was recognised on property, plant and equipment (refer to note 11.1) and an impairment 
        loss of R47.8 million was recognised on intangible assets (refer to note 11.2) in terms of IAS 36 immediately before the 
        assets were classified as held-for-sale in terms of IFRS 5 in September 2015. The recoverable amount of R4.2 million was 
        determined using fair value less costs to sell based on the offer received at arm?s length from an unrelated party for 
        the discontinued operations. The impairment losses were recognised in operating expenses (refer to note 7).

        On 31 March 2016, an additional impairment loss of R16.1 million was recognised on remeasurement of the disposal group 
        to fair value less costs to sell in terms of IFRS 5. The fair value less costs to sell was determined based on the Sale 
        of Shares and Claims Agreement concluded at arm?s length with an unrelated party, BER (refer to notes 7 and 19), as well 
        as taking into account the fact that the Vaalkrantz operation has been placed on care and maintenance. The fair value less 
        costs to sell of the disposal group was determined by management to be Rnil.

        There are no cumulative income or expenses included in OCI relating to the disposal group.                                       

                                                                      Land, buildings            Mine  Assets under       Plant and 
                                                                        and leasehold     development  construction       equipment 
                                                                         improvements               R             R               R 
                                                                                    R                                                                 
11.1      Property, plant and equipment                                                                                             
          Cost                                                                                                                      
          31 March 2016                                                                                                             
          Opening balance - reclassified as assets held-for-sale           12 120 000     200 406 749             -      85 675 108 
          Additions                                                                 -       5 372 558       411 548       1 302 000 
          Change in estimates - environmental rehabilitation assets                 -        (308 916)            -               - 
          Disposals                                                                 -               -             -               - 
          Closing balance                                                  12 120 000     205 470 391       411 548      86 977 108 
          Accumulated depreciation and impairment losses                                                                            
          31 March 2016                                                                                                             
          Opening balance - reclassified as assets held-for-sale           (6 045 862)   (166 889 286)            -     (70 974 438) 
          Depreciation expense(1)                                                   -      (1 302 731)            -        (767 434) 
          Impairment loss(2)                                               (5 781 505)    (19 584 328)     (144 492)     (8 965 107) 
          Disposals                                                                 -               -             -               - 
          Closing balance                                                 (11 827 367)   (187 776 345)     (144 492)    (80 706 979) 
          Carrying amount                                                                                                           
          31 March 2016                                                       292 633      17 694 046       267 056       6 270 129 


                                                                                Mine    Furniture and         Other           Total     
                                                                      infrastructure       equipment              R               R    
                                                                                   R               R                                   
                                            
11.1      Property, plant and equipment (continued)                                                                                                
          Cost                                                                                                                         
          31 March 2016                                                                                                                
          Opening balance - reclassified as assets held-for-sale          13 461 262       1 933 736     2 183 486      315 780 341    
          Additions                                                        1 276 591          15 978       244 242        8 622 917    
          Change in estimates - environmental rehabilitation assets                -               -             -         (308 916)    
          Disposals                                                                -         (19 806)            -          (19 806)    
          Closing balance                                                 14 737 853       1 929 908     2 427 728      324 074 536    
          Accumulated depreciation and impairment losses                                                                               
          31 March 2016                                                                                                                
          Opening balance - reclassified as assets held-for-sale         (11 245 557)     (1 817 348)   (1 879 918)    (258 852 409)    
          Depreciation expense(1)                                           (119 861)        (44 619)      (82 258)      (2 316 903)    
          Impairment loss(2)                                              (1 733 216)        (26 365)      (99 222)     (36 334 235)    
          Disposals                                                                -           7 152             -            7 152    
          Closing balance                                                (13 098 634)     (1 881 180)   (2 061 398)    (297 496 395)    
          Carrying amount                                                                                                              
          31 March 2016                                                    1 639 219          48 728       366 330       26 578 141    

      (1) Includes depreciation up to date of classification as assets held-for-sale on 30 September 2015.                 
      (2) Includes impairment loss of R22 million recognised on 30 September 2015 in terms of IAS 36 and 
          impairment loss of R14.3 million recognised on 31 March 2016 for remeasurement of the disposal group 
          to fair value less costs to sell.    

                                                                         Exploration and evaluation assets                   Other                            
                                                                        Mineral        Drilling          Other     Richards Bay    Computer         Total    
                                                                            and        expenses     evaluation    Coal Terminal    software             R    
                                                                    Prospecting               R       expenses          Quattro           R                  
                                                                         Rights                              R           Scheme                             
                                                                       acquired                                   participation                             
                                                                              R                                               R                             
11.2      Intangible assets                                                                                                                                 
          Cost                                                                                                                                              
          31 March 2016                                                                                                                                     
          Opening balance - reclassified as assets held-for-sale     24 772 826         207 120     12 750 069       22 717 726          -    60 447 741    
          Additions                                                           -               -        797 686                -          -       797 686    
          Closing balance                                            24 772 826         207 120     13 547 755       22 717 726          -    61 245 427    
          Accumulated amortisation and impairment losses                                                                                                    
          31 March 2016                                                                                                                                     
          Opening balance - reclassified as assets held-for-sale              -               -              -      (4 922 175)          -   (4 922 175)    
          Amortisation(1)                                                     -               -              -        (757 258)          -     (757 258)    
          Impairment loss(2)                                       (24 772 826)       (207 120)    (7 586 066)     (17 038 293)          -  (49 604 305)    
          Closing balance                                          (24 772 826)       (207 120)    (7 586 066)     (22 717 726)          -  (55 283 738)    
          Carrying amount                                                                                                                                   
          31 March 2016                                                       -               -      5 961 689                -          -     5 961 689
  
          (1) Includes amortisation up to date of classification as assets held-for-sale on 30 September 2015.           
          (2) Includes impairment loss of R47.8 million recognised on 30 September 2015 in terms of IAS 36 and 
              impairment loss of R1.8 million recognised on 31 March 2016 for remeasurement of the disposal group to 
              fair value less costs to sell.                                                                                                                     


12       Change in interests in subsidiaries                                                                                                                
         During the year, the company acquired the following additional interests in subsidiaries:                                                    
                                                               Leeuw Mining             Amalahle          Labohlano   Keaton Mining           Total          
                                                            and Exploration          Exploration         Trading 46     Proprietary                            
                                                                Proprietary          Proprietary        Proprietary         Limited*                               
                                                                    Limited              Limited            Limited                                                
         Additional % interest acquired                                 26%                  26%                26%             26%                                     
         Effective date                                        30 September             7 August          11 August     13 November                             
                                                                       2015                 2015               2015            2015                                   
         Consideration paid to NCI                               38 490 237            1 000 000         10 548 198     156 649 026     206 687 461          
         Cash                                                    38 490 237            1 000 000          1 500 000       6 000 000      46 990 237          
         Shares issued(1)                                                 -                    -          9 048 198     150 649 026     159 697 224          
         Carrying amount of NCI acquired                        (40 588 803)          (3 536 563)         2 440 078     (69 922 925)   (111 608 213)          
         Decrease in equity attributable to owners of the group (79 079 040)          (4 536 563)        (8 108 120)   (226 571 951)   (318 295 674)          

         (1) 63 731 714 ordinary no par value shares were issued to Rutendo Mining Proprietary Limited 
             (Rutendo Mining), in exchange for Rutendo Mining?s 26% shareholding in Keaton Mining, at an issue 
             price of R2.3638 per share totalling R150.6 million, net of transaction costs of R2.6 million. Rutendo 
             Mining is a related party to the group, as APE Sedibe and AB Glad are directors and shareholders of 
             Rutendo Mining. In addition 3 819 900 ordinary no par value shares were issued to Moneybox Investments 
             156 Proprietary Limited (Moneybox), in exchange for Moneybox?s 26% shareholding in Labohlano, at an
             issue price of R2.3687 per share totalling R9 million.                                                                                        
                                                                                                                                                    
         * As at 31 March 2016, R3 million of the cash purchase consideration was paid with the remaining 
           R3 million repayable in monthly instalments of R1 million in terms of the agreement with the non-controlling 
           shareholders.                                                                                                                       


13       Borrowings                                                                                                          
         Investec Bank Limited - loan                                                                    
         On 17 January 2014, Keaton Mining (cedent or borrower) concluded a facility agreement with Investec Bank Limited 
         acting through its corporate and institutional banking division (lender or arranger) to settle the project finance 
         facility with Nedbank Limited and to partially fund the acquisition of Xceed. The original loan facility comprised 
         a term facility of R300 million and a working capital facility of R50 million.                                                                         
         During February 2016, Keaton Mining and Investec Bank Limited amended some of the terms of the existing facility 
         agreement:                                                                                                                                               
         - The term facility was increased from R300 million to R320 million.                                                                                      
         - The working capital facility was reduced from R50 million to R20 million.                                                                       
         - Compliance to debt covenants are to be performed quarterly (previously bi-annually).                       
         - The debt to EBITDA ratio was reduced to a maximum of 2.5 (previously 4).
         - Current assets to current liabilities ratio was removed.                                                            
         - A minimum cash balance of R20 million is to be maintained per quarter.                                                 
         - Distributions to companies within the Keaton group have been limited to R18 million per quarter.  
 
         At reporting date, R320 million of the term facility had been drawn. The loan bears interest at the three-month 
         JIBAR plus a margin of 4% (interest rate). Commitment fees of 1% annually of undrawn facilities applies relating 
         to the first R300 million and 1.2% annually to the remaining R20 million, which is payable to the lender. The 
         facility is repayable in quarterly payments which commenced on 31 July 2014 and end on 31 October 2018. Total 
         interest accrued for the year ended 31 March 2016 amounted to R22.9 million (2015: R28.2 million). In the event 
         that the borrower defaults, interest will be levied at a margin of 2% above the interest rate. In the event that 
         the group?s EBITDA on a six-monthly basis does not exceed R200 million, the interest rate will be increased by a 
         margin of 0.5% until such time that the group again achieves the targeted EBITDA.
 
         At reporting date, R5.5 million (2015: R5.5 million) of the working capital facility had been drawn. The 
         facility bears interest at the one-month JIBAR plus a margin of 3.75%. Total interest accrued for the year 
         ended 31 March 2016 amounted to R0.6 million (2015: R0.04 million). Commitment fees of 0.75% annually of 
         undrawn facilities applies, which is payable to the lender. The working capital facility is renewable annually.                         


      The debt covenant tests for the group are as follows:                           
      Maximum total debt to equity                                  1:1                  
      Loan life cover ratio (minimum)                             1.5:1                
      Reserve tail ratio (minimum)                                  25%                  
      Debt service cover ratio (minimum)                          1.3:1                
      Maximum total debt to EBITDA                                2.5:1                
      Minimum cash balance (quarterly basis)                R20 million          
      Maximum distributions to the group (per quarter)      R18 million
  
      The debt covenant tests were performed bi-annually during the year and will be performed quarterly from March 2016. 
      At 31 March 2016 and 2015, there were no breaches of the covenants.                           

      Gunvor SA - US dollar loan                                                                                         
      During the 2014 financial year, the company entered into a coal sale agreement with Gunvor SA for the supply of 
      600 000 tonnes of coal to be delivered from the group?s Moabsvelden Project over a 22-month period from 1 January 
      2015 to 31 October 2016. This agreement had a prefinance loan clause where Gunvor SA paid an amount of USD4 million 
      to the company to assist with the development of the Moabsvelden Project within Neosho Trading 86 Proprietary 
      Limited (Neosho) and to enable the company to meet its obligations to supply coal under the agreement.
  
      As at 31 March 2014, the group recognised a receivable of R37.6 million which represented the discount to the fair 
      value of its shares issued to Plusbay Limited, a wholly owned subsidiary of Gunvor Group Limited (as part of the 
      acquisition of Xceed Resources Limited which included Neosho) which was accounted for as a share-based payment. 
      The discount was recognised as an asset as it then related to future financing to be obtained in the form of the 
      USD4 million prepayment for coal.
  
      During the 2015 financial year, the prepayment of USD4 million (R43 million) was received by Neosho from Gunvor SA, 
      with the difference of R5.4 million recognised as deferred income on group level, relating to the coal to be 
      delivered to Gunvor SA, once production at the Moabsvelden Project commenced. 
  
      In terms of the coal sale agreement the prepayment of USD4 million is immediately repayable to Gunvor SA, should 
      Moabsvelden fail to commence with production and subsequently fail to deliver coal to Gunvor SA by 31 December 2015. 
      Due to delays beyond the control of the group, being the granting of an Integrated Water Use Licence and the 
      conclusion of a coal supply agreement with Eskom, production could not commence by 31 December 2015 as required. 
      A financial liability therefore had to be recognised at 31 December 2015 at fair value of R66.9 million resulting 
      in a loss on initial recognition of R61.5 million recorded in administrative expenses in profit or loss. The 
      prepayment is repayable plus interest at a nominal rate of 5.31% compounded monthly in arrears. Total interest 
      accrued for the year ended 31 March 2016 amounted to R0.9 million.    
                                                                                                                                      
                                                                                             At                 At                     
                                                                                       31 March           31 March               
                                                                                           2016               2015                   
                                                                                      (Reviewed)          (Audited)              
                                                                                              R                  R                      
        Interest-bearing borrowings                                                                                           
        Non-current borrowings                                                                                                
        Investec Bank Limited - Loan                                                130 247 791        184 803 934           
        Balance at the beginning of the year                                        184 803 934        249 731 047           
        Drawdown                                                                     20 000 000                  -                      
        Interest                                                                     22 885 531         28 220 365            
        Repayments (interest and capital)                                           (91 490 316)       (72 743 239)          
        Issue costs                                                                    (350 000)                 -                      
        Amortisation of issue costs                                                     999 877          1 329 429             
        Net adjustments to current portion                                           (6 601 235)       (21 733 668)          
                                                                                                                              
        Investec Bank Limited - Working capital facility (WCF)                                -                  -                      
        Balance at the beginning of the year                                                  -                  -                      
        Drawdown                                                                              -          5 500 000             
        Interest                                                                        564 103             38 378                
        Net adjustments to current portion                                             (564 103)        (5 538 378)           
                                                                                                                              
        Gunvor SA - Loan                                                                      -                  -                      
        Balance at the beginning of the year                                                  -                  -                      
        Initial recognition of financial liability                                   66 943 389                  -                      
        Interest                                                                        913 399                  -                      
        Foreign exchange gain                                                        (2 569 112)                 -                      
        Net adjustments to current portion                                          (65 287 676)                 -                      
                                                                                                                              
        Industrial Development Corporation - Loan                                             -                  -                      
        Balance at the beginning of the year                                                  -          2 338 168             
        Interest                                                                              -            121 198               
        Repayments (interest and capital)                                                     -         (4 331 000)           
        Net adjustments to current portion                                                    -          1 871 634             
                                                                                                                               
        Industrial Development Corporation - LME preference shares                            -                  -                      
        Balance at the beginning of the year                                                  -         27 989 417            
        Dividends accrued                                                             4 978 146          4 183 696             
        Net adjustments to current portion                                           (4 978 146)       (32 173 113)          
                                                                                                                              
        Vitol SA - Loan                                                              59 207 937         66 665 511            
        Balance at the beginning of the year                                         66 665 511         61 556 110            
        Interest                                                                      2 937 858          2 235 181             
        Repayments (interest and capital)                                           (10 775 786)       (5 696 384)           
        Foreign exchange loss                                                        15 323 399          8 570 604             
        Net adjustments to current portion                                          (14 943 045)                 -                      
                                                                                                                              
        Other borrowings                                                                149 669            271 468               
        Balance at the beginning of the year                                            271 468            223 029               
        Reclassification to assets held-for-sale                                       (124 802)                 -                      
        Lease agreements concluded                                                      233 118            382 940               
        Interest                                                                         21 999             24 124                
        Repayments                                                                     (319 324)          (269 694)             
        Net adjustments to current portion                                               67 210            (88 931)              
        Total non-current borrowings                                                189 605 397        251 740 913           
                                                                                              
        Current borrowings                                                                                                   
        Investec Bank Limited - Loan                                                 77 984 594         71 383 359            
        Investec Bank Limited - WCF                                                   6 102 481          5 538 378             
        Gunvor SA - Loan                                                             65 287 676                  -                      
        Vitol SA - Loan                                                              14 943 045                  -                      
        Industrial Development Corporation - LME preference shares                   37 151 259         32 173 113            
        Instalment sale agreements with other borrowers                                 213 248            280 458               
        Total current borrowings                                                    201 682 303        109 375 308           
        Total interest-bearing borrowings                                           391 287 700        361 116 221           
               
                                                                                                              
                                                                                             At                 At                     
                                                                                       31 March           31 March               
                                                                                           2016               2015                   
                                                                                      (Reviewed)          (Audited)              
                                                                                              R                  R    
 14      Mine closure and environmental rehabilitation provision
 
         Balance at the beginning of the year                                       270 058 375        215 181 397           
         Reclassification to assets held-for-sale                                   (32 273 256)                 -                      
         Increase in provision                                                       25 686 843         54 876 978            
         Additional provision due to new disturbances allocated               
         to property, plant and equipment                                             9 346 659         41 857 642            
         Change in estimate recognised in profit or loss                             (4 557 835)        (4 669 408)           
         Unwinding of discount (included in finance cost)                            20 898 019         17 688 744            
                                                                                                                              
         Balance at the end of the year                                             263 471 962        270 058 375           
                                                                                                                             

15     Contingencies, commitments and legal disputes                                                                                 
       The group has the following contingencies, commitments and legal disputes:                                         
       (i)  During July 2015, the company and its subsidiary, Keaton Mining concluded an agreement with Moneybox regarding 
            the grant of call options by the company and Keaton Mining to Moneybox to acquire all of the ordinary shares, 
            preference shares and associated preference dividends rights held by the company in Labohlano, and the Prospecting 
            Rights and related geological and technical reports owned by Keaton Mining relating to the Sterkfontein Project. 
            The total purchase price for the sale will be R152 million plus accrued preference dividends to the effective date. 
            The options shall only become effective on the fulfilment of the last condition precedent (including, inter alia, 
            approval being obtained from the Board of Directors of the various parties, shareholders? approval, compliance with 
            the JSE Listings Requirements and the relevant provisions of the Companies Act, 2008, and approval being obtained 
            from Investec Bank Limited in accordance with Keaton Mining?s facility agreement). The option is exercisable by 
            Moneybox until 31 January 2017.      
       (ii) Keaton Mining vs Megacube                                                                                                  
            The legal dispute between Keaton Mining and Megacube was settled subsequent to year-end (refer to note 19). The 
            following award was made in favour of Keaton Mining on 28 April 2016 regarding the merits of the dispute. The more 
            substantial claims awarded in favour of Keaton Mining are listed below:                                                               
            - Megacube?s claim of R42.5 million is dismissed with cost.                                                                  
            - Megacube is liable to compensate Keaton Mining for the damages which flow from its failure to mine and deliver                       
              300 000 tonnes of run-of-mine (ROM) coal per month.                                                                                  
            - Megacube is liable to make payment to Keaton Mining in such an amount equalling the present value of 657 583.8 tonnes 
              of ROM coal not mined.                                                                                                               
            - Megacube is directed to pay Keaton Mining?s costs, such costs to include the employment of two counsel and the 
              qualifying fees of expert witnesses.                                   
       
            The quantum of the claims awarded will be dealt with in the coming months. A reliable estimate of the amount to be 
            received can only be made once the outcome of the quantification portion of the arbitration has been finalised/settled.              
            On 10 June 2016, Megacube filed an application in the High Court of Gauteng to have the arbitration award reviewed 
            and set aside. This application will be opposed. The company?s management and its legal advisors strongly believe 
            that this application is without merit.                                                                                          

       (iii) Neosho Trading 86 Proprietary Limited (Neosho) and Focus Coal Investments Proprietary Limited (FCI) vs Thebe 
             Mining Resources Proprietary Limited and Main Street 1055 Proprietary Limited (Thebe)                                        
             Thebe have commenced arbitration (litigation) against Neosho and FCI in which they are claiming that the transaction 
             previously entered into with Thebe for the acquisition of 30% of the shareholding in Neosho, becomes unconditional 
             and therefore effective resulting in Thebe becoming a 30% shareholder of Neosho, failing which they are claiming 
             alleged damages of R59 million and associated costs in respect of alleged breaches by FCI and Neosho in the 
             fulfilment of the suspensive conditions to such transaction (the subscription agreement entered into between the 
             companies). Neosho and FCI are defending the arbitration (litigation) proceedings and believe that there is no 
             reasonable basis for the claim and believe that a provision for this potential cost is not required at 31 March 2016.                
                                                                                 
                                                                  At                At              
                                                            31 March          31 March        
                                                                2016              2015            
                                                           (Reviewed)         (Audited)       
                                                                   R                 R               
      Capital commitments                                                                  
      Authorised but not contracted                       22 628 750        44 548 617     
      Authorised and contracted                            5 696 211        16 830 134     

      All contracted amounts will be funded through existing funding mechanisms within the group and cash generated from operations.          

16      Financial risk management activities                                                                                               
        The table below presents the group?s fair value measurement hierarchy:                                                                 
        Level 1: Quoted prices (unadjusted) in active markets for identical assets;                                                      
        Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly 
        or indirectly (that is, as prices) or indirectly (that is derived from prices); and    
        Level 3: Inputs for the asset that are not based on observable market data (that is unobservable inputs).               

                                                                                                                   Fair value                       
                                             Accounting classification                       Carrying         Level 1         Level 2     Level 3    
                                                                                               amount               R               R           R    
                                                                                                    R                                               
      At 31 March 2016                                                                                                                             
      Financial assets                                                                                                                             
      Restricted investments                 At fair value through profit 
                                             or loss financial assets (designated)          35 225 869     35 225 869               -           -    
      Restricted investments (held-for-sale) At fair value through profit 
                                             or loss financial assets (designated)          29 650 899     29 650 899               -           -    
      Financial liabilities                                                                                                                        
      Borrowings (IDC preference shares)     Financial liabilities at amortised cost        37 151 259              -      39 132 476           -    
      At 31 March 2015                                                                                                                             
      Financial assets                                                                                                                             
      Restricted investments                 At fair value through profit or loss 
                                             financial assets (designated)                 68 305 506      68 305 506               -           -    
      Trade and other receivables 
      (forward exchange contracts)           At fair value through profit or loss 
                                             financial assets                                 433 134               -         433 134           -    
      Financial liabilities                                                                                                                        
      Short-term financial liabilities       At fair value through profit or loss 
                                             financial liabilities                             67 816               -          67 816           -    
      Borrowings (IDC preference shares)     Financial liabilities at amortised cost       32 173 113               -      32 245 303           -    


    Basis for determining fair values                                                                                                                               
    The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the 
    significant unobservable inputs used.                                                                                                         
                                                                                                             Interrelationship between
                                                                                                             unobservable inputs and fair
      Type                      Valuation technique                     Significant unobservable inputs      value measurement  
  
      Financial assets          Valued by an independent financial      - Forward looking market rates.      The estimated fair value would        
      Forward exchange          institution using forward looking                                            (increase)/decrease pending
      contracts (FECs)          market rates until the realisation                                           changes to the unobservable inputs.                           
                                date of the relevant instruments. 

      Financial liabilities     Discounted cash flows: considers        - Risk adjusted rate of 9.25%        The estimated fair value would        
      Borrowings (IDC           the present value of the expected         (2015: 9.25%).                     (increase)/decrease pending
      preference shares)        payments discounted using risk                                               changes to the unobservable inputs.             
                                adjusted discount rates.

      The carrying values (less any impairment allowance) of restricted cash, cash and cash equivalents, investments and loans, 
      trade and other receivables, borrowings, vendor liability and trade and other payables approximate their fair values.                        

17    Dividends                                                                                                         
      No dividends have been declared nor are any proposed for the year ended 31 March 2016 (31 March 2015: Rnil).

18    Going concern
      At 31 March 2016 the group?s current liabilities exceeded its current assets by R120.3 million (2015: R42.9 million).

     This increase in current liabilities in the group is attributable mainly to the initial recognition of a financial 
     liability of R66.9 million payable to Gunvor SA (Gunvor), as described in more detail in note 13 to the condensed 
     consolidated financial statements. At 31 March 2016 the entire liability was included in current liabilities as the 
     group had entered into commercial negotiations with Gunvor to agree revised repayment terms, but was unable to reach 
     agreement by year end. Subsequent to year end, the group and Gunvor agreed terms that will see a significant portion 
     of the liability being reclassified to non-current liabilities, thus alleviating the net current liability position 
     of the group.
 
     The group continues to generate cash in line with budget consistently from its long-life Vanggatfontein colliery 
     whereby it delivers coal under a long term off-take agreement to Eskom and through sales to its domestic metallurgical 
     customers. Cash generated from this operation, the disposal of the significant loss making Vaalkrantz colliery, the 
     directors? authority to issue further shares for cash and the group?s undrawn overdraft facility will ensure adequate 
     funding for the group to continue to operate for the foreseeable future.

     Accordingly, the condensed consolidated financial statements of the group continue to be prepared on the going
     concern basis.

19    Significant events after 31 March 2016 up to the date of this report
      (i) Included in trade and other payables for the year ended 31 March 2015 was an amount of R42.5 million for contract 
          mining services rendered by Megacube to Keaton Mining. As a result of several alleged breaches of the contract mining 
          agreement, Keaton Mining disputes that this amount is due and owing to Megacube. As a result of Megacube?s breaches 
          of the contract mining agreement, Keaton Mining has lodged several counterclaims against Megacube for damages and 
          losses sustained. Keaton Mining delivered a notice of termination of the agreement to Megacube on 16 May 2012 in 
          accordance with the provisions of the agreement and subsequently terminated the agreement on 5 July 2012. The matter 
          was referred to arbitration which took place during February 2016 and March 2016. On 9 March 2016, and by agreement 
          between the parties, an interim award was made in terms whereof the merits of the dispute were separated from the 
          quantum. Closing arguments regarding the merits were heard in April 2016. On 28 April 2016, an award was made in 
          favour of Keaton Mining regarding the merits of the dispute. Refer to note 15 for additional disclosure. The quantum 
          of the claims awarded will be dealt with in the coming months. A reliable estimate of the amount to be received can 
          only be made once the outcome of the quantification portion of the arbitration has been finalised/settled.
          On 10 June 2016, Megacube filed an application in the High Court of Gauteng to have the arbitration award reviewed 
          and set aside. This application will be opposed. The company?s management and its legal advisors strongly believe 
          that this application is without merit.

     (ii) The company has entered into a Sale of Shares and Claims Agreement with BER on or about 11 February 2016 as announced 
          on 15 February 2016 to dispose of its wholly owned subsidiary LME and its wholly owned subsidiary Amalahle. There are still 
          a number of suspensive conditions which have to be met for the sale to become effective, including Section 11 consent from 
          the Minister of Mineral Resources in terms of the MPRDA.
          The company also simultaneously entered into a management Agreement with WMR, a related party to BER for the management of 
          LME up to and until the Sale of Shares and Claims Agreement with BER becomes unconditional.
          Notwithstanding continuous efforts by both LME and WMR to minimise losses exacerbated by the ongoing global decline in coal prices, 
          force majeure declared on LME by its biggest customer and the unavailability of water due to the continued drought in the region, 
          management decided to place Vaalkrantz Colliery on care and maintenance with effect from 1 May 2016. LME has embarked on a 
          Section 189A process for the retrenchment of all employees during April 2016 which was finalised and became effective from 
          31 May 2016. The Sale of Shares and Claims Agreement as well as the Management Agreement are still effective. As a consequence 
          of the occurrence of a force majeure event, namely the drought which has resulted in Vaalkrantz Colliery having no water within
          which to conduct its operations, some of the clauses of the Management Agreement had been temporarily suspended.

20    Review Report
      These provisional condensed consolidated financial statements for the year ended 31 March 2016 have been reviewed by KPMG Inc, 
      in accordance with ISRE 2410, who expressed an unmodified review conclusion. The auditor?s review does not necessarily report 
      on all of the information contained in this announcement. Any reference to future financial information included in this 
      announcement has not been reviewed or reported on by the auditor. Shareholders are advised, that in order to obtain a full 
      understanding of the nature of the auditor?s engagement they should obtain a copy of that review together with the 
      accompanying financial information from the company?s registered office.


Registered office
Ground Floor, Eland House, The Braes, 3 Eaton Avenue
Bryanston, South Africa 
Postnet Suite 464, Private Bag X51, Bryanston, 2021
Tel: +27 11 317 1700
Telefax:  +27 11 463 4759
Email: info@keatonenergy.co.za

Directors
Non-Executive
Dr JD Salter (Chairman)* 
LX Mtumtum (Lead Independent Director)
P Pouroulis** 
OP Sadler (Independent)
APE Sedibe
GH Kemp (Independent)
MT Witteveen***
HG Mai****

Executive
AB Glad (Chief Executive Officer)
J Rossouw (Chief Financial Officer)

*British **South African/Cypriot ***Dutch ****Swiss

Company Secretary
Anelia Schutte-Bouwer

Sponsor
Investec Bank Limited
100 Grayston Drive, Sandown, Sandton, 2196
South Africa
PO Box 785700, Sandton, 2146, South Africa

Transfer secretaries
Computershare Investor Services South Africa Proprietary Limited 
Ground Floor, 70 Marshall Street, Johannesburg, South Africa 
PO Box 61051, Marshalltown, 2107

Auditors
KPMG Inc. 1226 Francis Baard Street, Hatfield, Pretoria

www.keatonenergy.co.za


Date: 27/06/2016 08:30:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.


                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.