Wrap Text
Reviewed provisional condensed consolidated annual financial statements as at 30 June 2012
VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)
(Registration Number 1934/0057034/06)
Share code: VIL ISIN: ZAE000154761
Reviewed provisional condensed consolidated annual financial statements as at 30 June 2012
Highlights
- Earnings per share of 34.73 cents for 2012 compared to a loss of (290.32) cents for 2011, a turnaround of 112%.
- Special dividend of 30 cents per ordinary share declared and paid.
- Total gold production over a comparable 12 month period increased by 6.6% to 176,278oz (5,483kg)
- Significantly better gold price achieved of R417,267/kg in 2012 compared to R305,397/kg in 2011, a 37% year-
on-year increase.
- Antimony production at Cons Murch Mine for the year totalled 4,540 tonnes in the first year under Village
ownership.
- Operating profit increased by 348% to R315.3 million in 2012 compared to R127.1 million operating loss in 2011.
- Net cash generated of R99.4 million in 2012 compared to net cash outflow of R444.8 million in 2011
representing a year-on-year improvement of 122%.
- Village successfully disposed of a 19.79% equity interest in First Uranium Corporation (FIU) to AngloGold Ashanti
for R205 million.
- Settlement reached over long-standing dispute with Aberdeen International.
- Part A closure of the Blyvooruitzicht Gold Mining Company Limited (Blyvoor) acquisition successfully concluded
and Blyvoor consolidated with effect from 1 June 2012.
- Secured Convertible Rand Denominated Mine Waste Solution Rand Notes (MWS Notes) were redeemed in full.
With an exception of an increase in mineral resources as a result of a business combination of Blyvoor as previously
reported, there has been no material changes in the resources as disclosed in the prior year annual report.
Joint CEO Marius Saaiman commented: “We have made significant progress in our first year of operation, which is
evident in our annual results. We report an EPS of 34.73 cents representing a 112% improvement over last year. Our
Tau operations continued to perform well and we are starting to realise the benefits of the improvement project as
anticipated. Profitability has been restored at Consolidated Murchison Mine (Pty)Limited (“Cons”) and at
Buffelsfontein Gold Mines Limited (“Buffels”).We are implementing measures to reduce costs and increase
production. We have made good progress in delivering our promises, we have strengthened our balance sheet and
paid our first dividend. Our focus will now turn to delivery and to realising the value created in our assets.”
Events after the reporting date
On 21 June 2012, Village declared a special dividend amounting to 30 cents per ordinary share to shareholders. On 7
August 2012, the special dividend was paid to shareholders.
The financial information presented was prepared by Jacques Le Roux (qualified chartered accountant), in his
capacity as group financial controller, under the supervision of Sandeep Gandhi (qualified chartered accountant), in
his capacity as chief financial officer.
Reviewed provisional condensed consolidated statement of financial position as at 30 June 2012
30 June Restated
2012 30 June
2011*
Notes R’000 R’000
Assets
Non-current assets
Property, plant and equipment 2 2,274,359 1,701,234
Investment property 17,312 28,859
Investment in rehabilitation trust fund 160,101 124,558
Intangible assets 83,063 83,063
Financial assets 30,310 343,362
Reimbursive asset 106,338 95,553
Total non-current assets 2,671,483 2,376,629
Current assets
Financial assets 418,576 4,750
Trade and other receivables 217,296 103,181
Inventories 127,712 44,119
Cash and cash equivalents 294,736 196,011
Total current assets 1,058,320 348,061
Non-current assets held for sale 8,620 251,995
Total assets 3,738,423 2,976,685
Equity and liabilities
Equity
Stated capital 636,500 486,500
Retained earnings 1,255,270 1,242,278
Fair value reserve 20,187 12,146
Non-distributable reserve 8,595 32,462
Equity loans 29,252 -
Minority interest (12,745) 44,714
Total equity 1,937,059 1,818,100
Non-current liabilities
Financial liabilities 172,734 223,510
Deferred tax 113,778 20,458
Provision for environmental rehabilitation 404,511 282,760
Total Non-current liabilities 691,023 526,728
Current liabilities
Financial liabilities 170,590 160,890
Trade and other payables 605,689 392,744
Shareholders for dividends 302,608 -
Retirement benefit obligations 3,368 3,723
Bank overdraft 28,086 28,811
Total current Liabilities 1,110,341 586,168
Non-current liabilities held for sale - 45,689
Total liabilities 1,801,364 1,158,585
Total equity and liabilities 3,738,423 2,976,685
*In the comparative figures, an amount of R59,8 million has been reclassified from non-current to current assets, to
provide a more accurate and meaningful disclosure. Refer to note 2 for additional details.
Reviewed provisional condensed consolidated statement of comprehensive income for the 12 months ended 30
June 2012
12 Months 15 Months
Ended ended
30 June 30 June
2012 2011
Notes R’000 R’000
Revenue 2,502,099 1,755,258
Cost of sales (2,072,241) (1,685,090)
Gross profit 429,858 70,168
Other income 78,003 25,492
Operating, administrative and
general expenses (192,571) (222,760)
Operating profit/(loss) 315,290 (127,100)
Investment revenue 49,287 77,667
Restructuring costs 9,018 (49,629)
Fair value adjustments (63,096) 36,156
Gain on bargain purchase 4 27,371 154,532
Impairment of assets and associate (27,011) (1,436,895)
Share of loss in associate - (326,265)
Recycling of FCTR on disposal of
investment in associate 32,462 -
Finance cost (28,655) (68,951)
Profit/(Loss) from continuing operations 314,666 (1,740,485)
Loss from discontinuing operations (55) (43,014)
Profit/(Loss )before taxation 314,611 (1,783,499)
Taxation 355 -
Profit/(loss) for the period 314,966 (1,783,499)
Other comprehensive income:
Fair value adjustments to available
for sale investments 8,041 408
Foreign currency translation reserve(FCTR) (32,462) (57,303)
Total comprehensive income for the period 290,545 (1,840,394)
Profit/(loss)attributable to:
Owners of the parent 315,600 (1,783,499)
Non-controlling interest (634) -
Profit/(loss) for the period 314,966 (1,783,499)
Total comprehensive income attributable to:
Owners of the parent 291,179 (1,840,394)
Non-controlling interest (634) -
Total comprehensive income for the period 290,545 (1,840,394)
Basic earnings/(loss) per share
From continuing operations
(cents per share) 3 34.73 (290.32)
From discontinuing operations
(cents per share) (0.01) (7.17)
Diluted earnings/(loss) per share
From continuing operations
(cents per share) 3 34.49 (290.32)
From discontinuing operations
(cents per share) (0.01) (7.17)
Reviewed provisional condensed consolidated statement of cash flows for the 12 months ended 30 June 2012
12 Months 15 Months
Ended ended
30 June 30 June
2012 2011
R’000 R’000
Cash generated from operations 251,388 217,244
Finance cost (6,946) (59,359)
Investment income 49,287 74,180
Tax paid - -
Cash generated from operating activities 293,729 232,065
Cash flow from investing activities
Purchase of property, plant and equipment (245,976) (268,406)
Proceeds on disposal of assets 16,323 2,305
Cash paid in respect of acquisition of Tau Lekoa - (450,000)
Cash invested in MWS Notes - (296,084)
Proceeds from sale of MWS Notes - 59,500
Proceeds from disposal of FIU shares 205,061 -
Payment on behalf of subsidiaries (16,111)
Repayment from First Uranium 409
Cash and cash equivalents acquired in
business combination/reverse acquisition 8,270 88,027
Net cash used in investing activities (32,024) (864,658)
Cash flow from financing activities
Loan received from Rand Merchant Bank - 220,000
Repayment of loan from Rand Merchant Bank - (227,000)
Proceeds from Domestic Medium Term Notes - 155,000
Repayment of Domestic Medium Term Notes - (157,029)
Advances to pre-sold gold loan - (95,091)
Loans received from Deutsche Bank - 291,831
Aberdeen loan settlement (73,129) -
Repayment of Deutsche Bank loan 2 (92,763) -
Repayment of Deutsche Bank loan 1 (44,332) -
Repayment of finance lease liability (840) -
Repayment of retirement fund obligation (356) -
Settlement of call options for Cons Murch (4,906) -
Increase in IDC Funding for Lesego 54,071 -
Net cash (used in)/generated from
financing activities (162,255) 187,711
Net increase/(decrease) in cash
and cash equivalents 99,450 (444,882)
Cash and cash equivalents at the
beginning of the period 167,200 612,082
Cash and cash equivalents at the
end of the period 266,650 167,200
Reviewed provisional condensed consolidated statement of changes in equity for the 12 months ended 30 June 2012
Stated Retained Fair value
Capital Earnings reserve
2012
Group R’000 R’000 R’000
Balance as at 1 July 2011 486,500 1,242,278 12,146
Profit/(Loss) for the period - 315,600 -
Recycling of FCTR to the statement
of comprehensive income statement - - -
Other comprehensive income - - 8,041
Business combination - - -
Inflow of IDC loan drawdown - - -
Dividend declared - (302,608) -
Share options expensed during the year - - -
Share capital issued during the year 150,000 - -
Balance as at 30 June 2012 636,500 1,255,270 20,187
Foreign
Currency Share
Translation Equity option
Reserve Loans reserve
Group R’000 R’000 R’000
Balance as at 1 July 2011 32,462 - -
Profit/(Loss) for the period - - -
Release of FCTR to the statement of
comprehensive income statement (32,462) -
Other comprehensive income - - -
Business combination - - -
Inflow of IDC loan drawdown - 29,252 -
Dividend declared - - -
Share options expensed during the year - - 8,595
Share capital issued during the year - - -
Balance as at 30 June 2012 - 29,252 8,595
Equity Non-
Attributable controlling Total
to owners of the parent interest Equity
Group R’000 R’000 R’000
Balance as at 1 July 2011 1,773,386 44,714 1,818,100
Profit/(Loss) for the period 315,600 (634) 314,966
Release of FCTR to the statement
of comprehensive income statement (32,462) (32,462)
Other comprehensive income 8,041 - 8,041
Business combination - (81,644) (81,644)
Inflow of IDC loan drawdown 29,252 24,819 54,071
Dividend declared (302,608) - (302,608)
Share options expensed during the year 8,595 - 8,595
Share capital issued during the year 150,000 - 150,000
Balance as at 30 June 2012 1,949,804 (12,745) 1,937,059
Stated Retained Fair value
capital Earnings reserve
2011
Group R’000 R’000 R’000
Balance as at 1 April 2010 - 3,025,777 11,738
Reverse acquisition share issue 486,500 - -
Loss for the period - (1,783,499) -
Other comprehensive income for the period - - 408
Balance as at 30 June 2011 486,500 1,242,278 12,146
Foreign
Currency Share
Translation Equity option
Reserve Loans reserve
Group R’000 R’000 R’000
Balance as at 1 April 2010 89,765 - -
Reverse acquisition share issue - - -
Loss for the period - - -
Other comprehensive income (57,303) - -
Balance as at 30 June 2011 32,462 - -
Equity Non-
Attributable controlling Total
to owners of the parent interest Equity
Group R’000 R’000 R’000
Balance as at 1 April 2010 3,127,280 - 3,127,280
Reverse acquisition share issue 486,500 44,714 531,214
Loss for the period (1,783,499) - (1,783,499)
Other comprehensive income for the period(56,895) - (56,895)
Balance as at 30 June 2011 1,773,386 44,714 1,818,100
NOTES TO THE REVIEWED PROVISIONAL CONDENSED ANNUAL FINANCIAL STATEMENTS FOR THE 12 MONTHS
ENDED 30 JUNE 2012
1 Significant accounting policies
1.1 General information
Village is a mining group with mining assets in 3 gold operations, Buffelsfontein, Blyvoor and Tau Lekoa, and an
antimony/gold producer in Cons Murch as well as a gold processing plant at Buffelsfontein.
It also has a brownfields Platinum project Lesego Limited (Lesego).
1.2 Basis of Preparation
The reviewed provisional condensed consolidated financial statements are for the twelve months ended 30 June
2012 and have been prepared in accordance with IAS 34 Interim Financial Reporting as well as the AC 500 standards
as issued by the Accounting Practices Board, the JSE Listings Requirements and the requirements of the Companies
Act of South Africa, as amended. They do not include all of the information required in annual financial statements in
accordance with International Financial Reporting Standards, and should be read in conjunction with the
consolidated annual financial statements of the group for the year ended 30 June 2012. These accounting policies
are consistent with the previous annual financial statements. The reviewed provisional condensed consolidated
financial information is a fair and true reflection of the financial position and performance of the company. These
annual financial statements have been reviewed by PricewaterhouseCoopers (PwC) whose unqualified review report
is available for inspection at the group’s registered office.
2 Property, plant and equipment
Group Land and buildings Plant and equipmentFurniture and fittings Motor vehicles
2012 R’000 R’000 R’000 R’000
Cost as at 1 July 2011 138,118 131,600 34,280 4,657
Accumulated depreciation and
impairment losses as at 1 July 2011 (11,673) (28,001) (17,931) (683)
Carrying value as at July 2011 126,445 103,599 16,349 3,974
Depreciation (4,852) (16,514) (4,769) (128)
Additions - 22,661 3,673 -
Additions by Business combinations 133,818 51,323 - 3,053
Carrying value as at 30 June 2012 255,411 161,069 15,253 6,899
Cost as at 30 June 2012 271,936 205,584 37,953 7,710
Accumulated depreciation and impairment
losses as at 30 June 2012 (16,525) (44,515) (22,700) (811)
Carrying value as at 30 June 2012 255,411 161,069 15,253 6,899
2011
Cost as at 1 April 2010 7,981 118,818 25,410 1,273
Accumulated depreciation and
impairment losses as at 1 April 2010 (1,970) (20,425) (8,737) (477)
Carrying value as at 1 April 2010 6,011 98,393 16,673 796
Depreciation (2,250) (7,576) (4,782) (1)
Impairment (7,453) - (4,412) (205)
Additions 42,610 9,048 11,765 3,894
Additions by business combination 87,527 3,734 96 -
Disposals - - (2,991) (510)
Reclassification - - - -
Carrying value as at 30 June 2011 126,445 103,599 16,349 3,974
Cost as at 30 June 2011 138,118 131,600 34,280 4,657
Accumulated depreciation and impairment
losses as at 30 June 2011 (11,673) (28,001) (17,931) (683)
Carrying value as at 30 June 2011 126,445 103,599 16,349 3,974
Group Mining assets Computer equipment Exploration costs Total
and software
2012 R’000 R’000 R’000 R’000
Cost as at 1 July 2011 1,242,125 8,661 398,874 1,958,315
Accumulated depreciation and
impairment losses as at 1 July 2011 (191,211) (7,582) - (257,081)
Carrying value as at July 2011 1,050,914 1,079 398,874 1,701,234
Depreciation (99,557) (1,193) - (127,013)
Additions 169,265 3,174 63,252 262,025
Additions by Business combinations 249,919 - - 438,113
Carrying value as at 30 June 2012 1,370,541 3,060 462,126 2,274,359
Cost as at 30 June 2012 1,661,309 11,835 462,126 2,658,453
Accumulated depreciation and
impairment losses as at 30 June 2012 (290,768) (8,775) - (384,094)
Carrying value as at 30 June 2012 1,370,541 3,060 462,126 2,274,359
2011
Cost as at 1 April 2010 558,839 9,677 1,437 723,435
Accumulated depreciation and
impairment losses as at 1 April 2010 (100,883) (7,011) - (139,503)
Carrying value as at 1 April 2010 457,956 2,666 1,437 583,932
Depreciation (84,017) (510) - (99,136)
Impairment (6,311) (61) - (18,442)
Additions 647,716 1,140 2,233 718,406
Additions by business combination 35,570 - 455,000 581,927
Disposals - (2,156) - (5,657)
Reclassification (59,796)
(59,796)
Carrying value as at 30 June 2011 1,050,914 1,079 398,874 1,701,234
Cost as at
30 June 2011 1,242,125 8,661 398,874 1,958,315
Accumulated depreciation and
impairment losses as at 30 June 2011 (191,211) (7,582) - (257,081)
Carrying value as at 30 June 2011 1,050,914 1,079 398,874 1,701,234
Pledged as security
Carrying value of assets pledged as security:
The lower grade gold plant at Buffelsfontein Gold Mines Limited (BGM), which is fully impaired, has been
encumbered as security against the Aberdeen loan.
- -
Motor vehicles 1,632 3,575
Secured by a lease
A register containing the information as required by section 25(3) of the companies regulation of the Companies Act
is available for inspection at the registered office of the Company.
In the prior year comparative figures, an amount of R59,8 million has been reclassified from Non-current Assets to
Current Assets, to provide a more accurate disclosure of the balances.
Previously reported Restated
Property, Plant and Equipment 1,761,030 1,701,234
Cash and Cash Equivalent 170,298 196,011
Trade receivables 69,098 103,181
3.Earnings per share
Reconciliation between earnings /(loss) and headline earnings /(loss):
Net profit/(loss) from continuing operations 315,021 (1,740,485)
Net loss from discontinuing operations (55) (43,014)
Profit/(loss) for the year 314,966 (1,783,499)
Add back:
Non-controlling interest (634) -
Attributable to the owners of the parent 315,600 (1,783,499)
Impairment of property, plant and equipment - 18,442
Impairment of investment in associate - 1,251,213
Impairment in non-current assets held for sale 22,362 145,835
Impairment of loans 27,011 33,536
Gain on disposal of property, plant and equipment (12,527) (1,865)
Profit on sale of non-current assets held for sale (51,299) -
FCTR released through profit and loss (32,462) -
Fair value adjustment on investment property 2,151
Gain on Bargain Purchase (27,371) (154,532)
Headline earnings/(loss) for the year 243,465 (490,870)
Basic earnings/(loss) per share (cents) from continuing operations* 34.73 (290.32)
Basic loss per share (cents) from discontinuing operations* (0.01) (7.17)
Total basic earnings/(loss) per share (cents)* 34.72 (297.49)
Diluted earnings/(loss) per share (cents) from continuing operations* 34.49 (290.32)
Diluted loss per share (cents) from discontinuing operations* (0.01) (7.17)
Total diluted earnings/(loss) per share (cents)* 34.48 (297.49)
Headline earnings/(loss) per share (cents) from continuing operations* 26.79 (76.73)
Headline loss per share (cents) from discontinuing operations* (0.01) (5.15)
Diluted earnings profit/(loss) per share (cents) from
continuing operations* 26.61 (76.73)
Diluted headline loss per share (cents) from discontinuing operations* (0.01) (5.15)
* Based on weighted average number of shares in issue
Weighted average number of ordinary shares in issue
(excl dilution shares) 901,575 599,513
Adjusted for:
- Blyvoor acquisition 7,045 -
Weighted average number of ordinary shares for earnings per share 908,620 599,513
Forfeitable share scheme shares issued 6,413 -
Weighted average number of ordinary shares for diluted
earnings per share 915,033 599,513
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year.
4. Business combination (Blyvoor)
On 1 June 2012, the group acquired 74% control of Blyvoor. A binding agreement was concluded, whereby Village,
through its wholly owned subsidiary, Business Venture Investments no 1557 (Proprietary) Ltd acquired all of the
amounts owed to DRDGOLD by Blyvoor (“sale claims”) and all of the ordinary shares in Blyvoor, held by DRDGOLD
(“sale shares”) for a total consideration of R 150 million for the sale claims and R1 respectively. Blyvoor acquisition is
in line with the group’s strategy, to increase Village’s presence in the gold mining industry. The acquisition is also
expected to contribute significantly to the group’s gold delivery.
The negotiated agreement is divided into 2 parts, viz. the Part A and the Part B, sale.
Upon receiving unconditional approval from the Competition Commission on 24 May 2012, the Part A conditions
precedent were successfully concluded. DRDGOLD transferred the Sale Claims to the Purchaser and Village issued 85
714 286 new Village ordinary shares (“Consideration Shares”) to DRDGOLD, on the basis that 65 714 286 of the
Consideration Shares will be held directly by DRDGOLD whilst the remaining 20 000 000 Consideration Shares will be
held by an escrow agent pending the outcome of the conditions precedent applicable to the Part B Sale. DRDGOLD
ceded to Village its right to receive any dividend declared by Blyvoor in respect of the Sale Shares. This was seen as
settling the purchase price of R150 million by way of issuing shares in Village.
The effect being that Village controls 74% of the issued share capital of Blyvoor.
The Part B Sale remains subject to certain conditions precedent.
In accordance with IFRS 3 Blyvoor, which is involved in Gold Mining activities, was acquired and consolidated into
Village with effect from 1 June 2012.
The assets consolidated by Village consisted of
- Non Current Assets comprising Plant, Property and Equipment, Environmental Trust Fund and Financial Assets
- Current Assets comprising Inventories and Trade and other Receivables and cash and cash equivalents
The liabilities assumed by Village were as follows:
- Non current financial liabilities comprising a Shareholder’s loan payable to Village
- Current financial liabilities comprising trade and other payables
The fair value of the net liabilities, shareholder’s loan and non controlling interest acquired total R177,4 million
resulting in a gain on bargain purchase of R27,4million
Blyvoor Blyvoor Village
carrying values Fair values Consolidated
R’000 R’000 R’000
Non-current assets
Property, plant and equipment 104,431 438,113 438,113
Environmental rehabilitation trust fund 35,136 35,136 35,136
Financial assets 11,852 11,852 11,852
Total non-current assets 151,419 485,101 485,101
Inventories 62,081 62,081 62,081
Other Current Assets 20,460 20,460 20,460
Total current assets 82,541 82,541 82,541
Non-current assets held for sale - - -
Financial liabilities - Shareholder Loan (409,744) (409,744) -
Financial liabilities - Preference Shares Loan - (143,964) (143,964)
Environmental rehabilitation provision (46,002) (77,000) (77,000)
Deferred Tax Liability - (94,976) (94,976)
Total non current liabilities (455,746) (725,684) (315,940)
Trade and other payables (155,975) (155,975) (155,975)
Financial liabilities
Total current liabilities (155,975) (155,975) (155,975)
Non-current liabilities held for sale - - -
Total net assets (377,760) (314,017) 95,727
Non Controlling interest 81,644
Purchase price (150,000)
Gain on Bargain Purchase 27,371
In terms of the subscription agreement dealing with the preference shares A to C, which has been accounted for as a
contingent liability, there are no fixed terms of repayment in terms of the preference shares. The preference shares
merely provide the preference shareholder with a right to receiving 26 cents in the Rand for every Rand that Blyvoor
repays on its shareholders loan, to a maximum of R409 million in total on the shareholder loan.
In the event that the shareholder loan increases beyond the R 409 million, the preference shareholders do not
participate in any additional repayment.
Transaction costs amounting to R 1.3 million were incurred.
The revenue included in the consolidated statement of comprehensive income since 1 June 2012 amounted to R109
million. Blyvoor contributed to a profit of R1.5 million.
Had Blyvoor been consolidated from 1 July 2011, the consolidated statement of comprehensive income would have
shown revenue of R1,350 million and a profit of R118.8 million as a contribution from Blyvoor.
Accounting for the Business Combination is provisional. This is due to the fact that the determination of the fair
value of assets and liabilities, including the mineral right is still ongoing.
Therefore the results of the Business Combination reflected are subject to change.
5 Segmental reporting
The group’s mining and exploration activities are conducted mainly in the Gauteng, Limpopo and North West
provinces of South Africa. An analysis of the group’s operating segments is geographically set out below. The
segments have been determined from a geographical and product perspective. The group includes operating assets
in three gold operations, Buffelsfontein, Tau Lekoa (the “North West” segment)and Blyvoor (the “Gauteng”
segment), an antimony/gold producer in Cons Murch (the “Limpopo–Cons Murch” segment) and a very exciting
brownflields platinum exploration project in Lesego Platinum Limited (the “Limpopo–Lesego” segment). During the
current financial year the entire group’s gold was sold to the Rand Refinery, while Cons Murch exports its antimony
to India. The board of directors has determined the operating segments, based on the reports that are used to make
strategic decisions. It was determined that an operating segment consists of a shaft or a group of shafts managed by
a single general manager and management team. When assessing performance, the Board considers the revenue,
cash production and operating costs of each segment. Segment assets and liabilities consist of mining assets which
can be attributed to the shaft or group of shafts. Products produced by the operations are not sold internally
between operations. Sales between operations are limited and in such events comprise of plant and equipment and
consumables.
An analysis of the group’s operating segments is geographically set out below based on the requirements of IFRS8:
Segment reporting
2012
Limpopo Limpopo North West
Buffelsfontein/
Lesego Cons Murch Tau
R’000 R’000 R’000
Figures in Rand thousand
Profit/(loss)
Revenue - 331,849 2,060,274
Cost of production (3,274) (312,264) (1,649,333)
Gross profit/(loss) (3,274) 19,586 410,941
Other income - 3,286 25,906
General administrative and overhead expenditure(2,867) (11,063) (129,730)
Operating profit (6,141) 11,809 307,117
Finance income 1,628 3,370 146
Restructuring costs - - 9,018
Net movement in fair value - - (98,283)
Impairment of assets and associate investment - - (27,011)
Share of losses of associate - - -
Gain on bargain purchase - - -
Foreign currency translation reserve - - -
Finance charges - (3,309) (24,847)
Profit/(loss) on ordinary activities (4,513) 11,869 166,139
Loss from discontinuing operations - - -
Taxation (1,300) - -
Profit/(loss) for the Year (5,813) 11,869 166,139
Other comprehensive income 8,041
Fair value adjustments to available
for sale investments - - -
Foreign currency translation reserve - - -
Total comprehensive profit/(loss) for the year (5,813) 11,869 174,180
2012
Gauteng Duff Scott
Blyvoor and Corporate Total
R’000 R’000 R’000
Figures in Rand thousand
Profit/(loss)
Revenue 109,976 - 2,502,099
Cost of production (107,370) - (2,072,241)
Gross profit/(loss) 2,606 - 429,858
Other income/(expense) (2,640) 51,451 78,003
General administrative and overhead
expenditure (28) (48,883) (192,571)
Operating profit/(loss) (62) 2,568 315,290
Finance income 157 43,986 49,287
Restructuring costs - - 9,018
Net movement in fair value - 35,188 (63,096)
Impairment of assets and associate investment - - (27,011)
Share of losses of associate - - -
Gain on bargain purchase - 27,371 27,371
Foreign currency translation reserve - 32,462 32,462
Finance charges (199) (300) (28,655)
Profit/(loss) on ordinary activities (104) 141,275 314,666
Loss from discontinuing operations - (55) (55)
Profit/(loss) before tax (104) 141,220 314,611
Taxation 1,655 - 355
Net Profit/(loss) after tax 1,551 141,220 314,966
Other comprehensive income - - 8,041
Fair value adjustments to available
for sale investments - - -
Foreign currency translation reserve - (32,462) (32,462)
Total comprehensive profit/ (loss) for the year 1,551 108,758 290,545
2011
Limpopo Limpopo North West
Buffelsfontein/
Lesego Cons Murch Tau
R’000 R’000 R’000
Figures in Rand thousand
Profit/(loss)
Revenue - - 1,755,258
Cost of production - - (1,685,090)
Gross profit - - 70,168
Other income - - 25,045
General administrative and overhead expenditure - - (104,335)
Operating loss - - (9,122)
Finance income - - 6,793
Restructuring costs - - (49,629)
Net movement in fair value - - 36,156
Impairment of assets and associate investment - - (40,256)
Share of losses of associate - - -
Gain on bargain purchase - - -
Finance charges - - (57,056)
Loss on ordinary activities - - (113,114)
Loss from discontinuing operations - - -
Other comprehensive income
Fair value adjustments to available
for sale investments - - 408
Foreign currency translation reserve - - -
Total comprehensive loss for the year - - (112,706)
2011
Gauteng Duff Scott
Blyvoor and Corporate Total
R’000 R’000 R’000
Figures in Rand thousand
Revenue - - 1,755,258
Cost of production - - (1,685,090)
Gross profit - - 70,168
Other income - 447 25,492
General administrative and overhead expenditure - (118,425) (222,760)
Operating loss - (117,978) (127,100)
Finance income - 70,874 77,667
Restructuring costs - - (49,629)
Net movement in fair value - - 36,156
Impairment of assets and associate investment - (1,396,639) (1,436,895)
Share of losses of associate - (326,265) (326,265)
Gain on bargain purchase - 154,532 154,532
Finance charges - (11,895) (68,951)
Loss on ordinary activities - (1,627,371) (1,740,485)
Loss from discontinuing operations - (43,014) (43,014)
Other comprehensive income
Fair value adjustments to available
for sale investments - - 408
Foreign currency translation reserve - (57,303) (57,303)
Total comprehensive loss for the year - (1,727,688) (1,840,394)
By order of the Board
VILLAGE MAIN REEF LIMITED
Johannesburg
21 September 2012
Transfer secretaries
Link Market Services South Africa (Pty) Ltd
Auditor
PricewaterhouseCoopers (PwC) Inc
Sponsor
Java Capital
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