Wrap Text
Reviewed Condensed Consolidated Interim Results
for the 6 months ended 31 December 2013
Village Main Reef Limited
(formerly Village Main Reef Gold Mining Company (1934) Limited)
Incorporated in the Republic of South Africa
Registration number 1934/005703/06
JSE code: VIL ISIN: ZAE000154761
INTERIM RESULTS FOR THE
SIX MONTHS ENDED
31 DECEMBER
2013
REVIEWED CONDENSED CONSOLIDATED
INTERIM RESULTS
for the 6 months ended 31 December 2013
KEY FEATURES*
- Despite the strike at Cons Murch, gold production from continuing operations increased
by 2% to 2,030kg (65,264oz) for the six months ended 31 December 2013 compared to
1,987kg (63,882oz) reported previously.
- Revenue was negatively affected by the lower realised average gold price of R421,701/kg
compared to 452,188/kg for the six months ended December 2012, a decrease of 7%.
- Antimony production was 1,289t for the six months ended 31 December 2013 compared
to 2,728t for the six months ended 31 December 2012, a decrease of 53%, which was a
direct result of the unprotected strike at Cons Murch in July 2013.
- All-in costs at our Tau operation for the six months ended 31 December 2013 amounted
to R617 million compared to R571 million for the six months ended 31 December 2012,
an increase of 8% year-on-year. On a per unit cost basis, the increase amounted to 3% at
R321,220/kg to R310,926/kg, realising a profit margin of 24%.
- Cash operating profit of R198 million from continuing operations for the six months ended
31 December 2013 compared to R324 million for the six months ended 31 December
2012, mainly due to the impact of the unprotected strike at Cons Murch, lower gold and
antimony prices and annual cost increases.
- Basic and headline earnings per share from continuing operations of 12.07 cents and
14.55 cents per share respectively, compared to 25.68 cents per share for the six months
ended 31 December 2012, a decrease of 53% and 43% respectively.
- Significant improvement in the net asset value pe share of 118.8 cents per share,
compared to 79.85 cents per share as at 30 June 2013, an increase of 49%, reflecting
the positive effects of the restructuring, the placing of Buffels on care and maintenance
and the deconsolidation of Blyvoor from the results.
* Unaudited
Condensed Consolidated STATEMENT
OF Comprehensive Income
for the 6 months ended 31 December 2013
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
Notes R'000 R'000
Revenue 914,384 1,015,073
Cost of sales (716,588) (691,926)
Gross profit/(loss) 197,796 323,147
Other income 5,017 3,330
Operating, administrative and general
expenses (63,933) (70,993)
Impairment of assets (23,842) –
Operating profit/(loss) 115,038 255,484
Finance income 3,626 22,780
Restructuring cost (2,323) –
Fair value adjustment (354) (21,600)
Finance cost (4,147) (3,640)
Profit/(loss) from continuing operations 111,840 253,024
Profit/(loss) from discontinued operations 2 298,458 (233,499)
Profit/(loss) before taxation 410,298 19,525
Taxation (596) –
Profit/(loss) for the period 409,702 19,525
Other comprehensive income:
Fair value adjustments to/(from) available-for-
sale investments – (17,086)
Total comprehensive income for the period 409,702 2,439
^ Restated as a result of reclassification of discontinued operations.
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
Notes R'000 R'000
Profit/(loss)attributable to:
Owners of the parent 318,038 58,377
Non-controlling interest 91,664 (38,852)
Profit/(loss) loss for the period 409,702 19,525
Total comprehensive income:
Owners of the parent 318,038 41,291
Non-controlling interest 91,664 (38,852)
Total comprehensive income for the period 409,702 2,439
Basic earnings/(loss) per share attributable
to owners of the parent
From continuing operations (cents per share) 3 12.07 25.68
From discontinued operations (cents per share) 3 22.25 (19.76)
Total basic earnings/(loss) per share
attributable to owners of the parent 3 34.32 5.92
Diluted earnings/(loss) per share attributable
to owners of the parent
From continuing operations (cents per share) 3 11.42 25.11
From discontinued operations (cents per share) 3 21.03 (19.77)
Total diluted earnings/(loss) per share
attributable to owners of the parent 3 32.45 5.34
^ Restated as a result of reclassification of discontinued operations.
Condensed Consolidated Statement
of Financial Position
at 31 December 2013
31 December 30 June 31 December
2013 2013 2012
R'000 R'000 R'000
Assets
Non-current assets
Property, plant and equipment 1,461,390 1,447,557 2,254,085
Investment property 20,887 24,957 17,312
Investment in rehabilitation trust fund 163,512 200,303 160,929
Intangible assets 57,338 60,401 83,063
Financial assets 14,652 34,259 13,212
Reimbursive asset 115,009 115,009 109,420
Total non-current assets 1,832,788 1,882,486 2,638,021
Current assets
Financial assets 1,552 1,906 7,489
Trade and other receivables 83,518 135,762 256,966
Inventories 58,819 98,636 62,265
Cash and cash equivalents 193,598 207,314 352,573
Total current assets 337,487 443,618 679,293
Non-current assets held-for-sale 3,591 275 8,065
Total assets 2,173,866 2,326,379 3,325,379
31 December 30 June 31 December
2013 2013 2012
R'000 R'000 R'000
Equity and liabilities
Equity
Stated capital 636,500 636,500 636,500
Treasury shares (73,316) (73,316) (30,185)
Retained earnings 718,419 400,381 1,181,068
Fair value reserve – – 3,101
Non-distributable reserve 14,044 18,180 21,689
Transactions with non-controlling interest 29,252 29,252 29,252
Non-controlling interest (88,380) (180,044) (51,597)
Total equity 1,236,519 830,953 1,789,828
Non-current liabilities
Financial liabilities 15,848 11,595 231,828
Deferred tax 151,889 151,889 246,357
Provision for environmental rehabilitation 104,363 101,039 416,342
Total non-current liabilities 272,100 264,523 894,527
Current liabilities
Financial liabilities 7,556 13,988 22,441
Trade and other payables 291,498 735,011 615,459
Retirement benefit obligations 2,756 2,900 3,124
Provision for environmental rehabilitation 327,534 442,482 –
Bank overdraft 35,903 36,522 –
Total current liabilities 665,247 1,230,903 641,024
Total liabilities 937,347 1,495,426 1,535,551
Total equity and liabilities 2,173,866 2,326,379 3,325,379
Condensed Consolidated STATEMENT
OF Changes in Equity
for the 6 months ended 31 December 2013
Treasury Retained
Stated Capital Shares Earnings
R'000 R'000 R'000
Balance as at 1 July 2012 636,500 – 1,122,691
Profit/(loss) for the period – – 58,377
Change in fair value of assets held for sale – –
Share options expensed during year – –
Treasury shares purchased – (30,185) –
Balance as at 31 December 2012 636,500 (30,185) 1,181,068
Profit/(loss) for the period – – (780,687)
Change in fair value of assets held for sale – – –
Share options expensed during year – – –
Treasury shares purchased – (43,131) –
Balance as at 30 June 2013 636,500 (73,316) 400,381
Profit/(loss) for the period – – 318,038
Share options expensed during the period – – –
Balance as at 31 December 2013 636,500 (73,316) 718,419
Transactions Equity
with non- Non- Attributable to Non-
Fair Value controlling distributable Owners of controlling
Reserve interest Reserve the Parent Interest Total Equity
R'000 R'000 R'000 R'000 R'000 R'000
Balance as at 1 July 2012 20,187 29,252 8,595 1,817,225 (12,745) 1,804,480
Profit/(loss) for the period – – – 58,377 (38,852) 19,525
Change in fair value of assets held for sale (17,086) – – (17,086) – (17,086)
Share options expensed during year – – 13,094 13,094 – 13,094
Treasury shares purchased – – – (30,185) – (30,185)
Balance as at 31 December 2012 3,101 29,252 21,689 1,841,425 (51,597) 1,789,828
Profit/(loss) for the period – – – (780,687) (128,447) (909,134)
Change in fair value of assets held for sale (3,101) – – (3,101) – (3,101)
Share options expensed during year – – (3,509) (3,509) – (3,509)
Treasury shares purchased – – – (43,131) – (43,131)
Balance as at 30 June 2013 – 29,252 18,180 1,010,997 (180,044) 830,953
Profit/(loss) for the period – – – 318,038 91,664 409,702
Share options expensed during the period – – (4,136) (4,136) – (4,136)
Balance as at 31 December 2013 – 29,252 14,044 1,324,899 (88,380) 1,236,519
Condensed Consolidated STATEMENT
OF CASH FLOW
for the 6 months ended 31 December 2013
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
R'000 R'000
Cash generated from/(utilised in) continuing operations 286,839 327,533
Finance cost (822) (630)
Investment income (3,626) 8,545
Tax paid (596) –
Cash generated from continuing operations operating
activities 281,795 335,448
Cash flow utilised in discontinued operations (218,990) (147,552)
Total cash flow generated from operating activities 62,805 187,896
Cash flow from investing activities
Purchase of property, plant and equipment (70,123) (85,381)
Proceeds on disposal of property, plant and equipment
and investment property – 4,455
Loans advanced (3,600) –
Dividend received from FIU Investment – 14,235
Investment in new projects (644) –
Proceeds from Mine Waste Solution Notes – 392,874
Cash flow (utilised in)/from investing activities from
continuing operations (74,367) 326,183
Cash flow from/(utilised in) investing activities from
discontinued operations 754 (47,051)
Total cash flow (utilised in)/generated from investing
activities (73,613) 279,132
^ Restated as a result of reclassification of discontinued operations.
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
R'000 R'000
Cash flow from financing activities
Dividend paid to shareholders – (302,608)
Payment of post employment benefit (144) (244)
Payment of financial liabilities (1,664) (78,253)
Cash flow utilised in financing activities from continuing
operations (1,808) (381,105)
Cash flow utilised in financing activities from discontinued
operations (481) –
Total cash flow utilised in financing activities (2,289) (381,105)
Net increase in cash and cash equivalents (13,097) 85,923
Cash and cash equivalents at the beginning of the period 170,792 266,650
Cash and cash equivalents at the end of the period 157,695 352,573
^ Restated as a result of reclassification of discontinued operations.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
for the 6 months ended 31 December 2013
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 General information
Village Main Reef Limited (Village) is a South African-based mining and development
company, with its ordinary shares listed for trading on the main board of the
Johannesburg Stock Exchange (JSE) under the share code VIL. The company's
assets comprise Lesego Platinum (a platinum exploration project), Cons Murch
Mine (a gold and antimony mine), Buffelsfontein Gold Mines,Tau Lekoa Gold Mining
Company and the South Plant.
1.2 Basis of preparation
The condensed consolidated interim financial statements are for the six months ended
31 December 2013 and are prepared in accordance with International Financial Reporting
Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Pronouncements as
issued by Financial Reporting Standards Council and the requirements of the Companies
Act of South Africa. The accounting policies applied in the preparation of these interim
financial statements are in terms of International Financial Reporting Standards and are
consistent with those applied in the previous annual financial statements. These interim
financial statements 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 financial statements of the Group for the
year ended 30 June 2013. The condensed consolidated interim financial statements
have been reviewed by PricewaterhouseCoopers (PwC) whose unqualified review report
is available for inspection at the Group's registered office.
1.3 Estimates and accounting policies
The accounting policies adopted are consistent with the previous annual financial
statements.
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates. In preparing these condensed
consolidated interim financial statements, the significant judgements made by
management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the consolidated
financial statements for the year ended 30 June 2013.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
for the 6 months ended 31 December 2013
1.4 Events after reporting period
No material events subsequent to reporting date have occurred.
2. Discontinued OperationS
Restated
31 December 31 December
2013 2012^
R'000 R'000
Buffelsfontein Gold Mines Limited
On 14 May 2013, Village announced the intention
to cease operations at the Buffelsfontein Mine.
Buffelsfontein Gold Mines Limited is a separate
identifiable cash-generating unit.
For the period ended 31 December 2013,
Buffelsfontein Gold Mines Limited is
reported in the North-West Segment as a
discontinued operation.
Analysis of discontinued operations of the
statement of comprehensive income
Revenue 2,471 279,972
Expenses (59,100) (365,484)
Total comprehensive (loss) before tax (56,629) (85,512)
Taxation – –
(Loss) for the year from discontinued operations (56,629) (85,512)
Analysis of cash flows of the discontinued
operations
Cash flows from operating activities (180,593) (161,607)
Cash flows from investing activities 754 (41,173)
Cash flows from financing activities 481 –
Restated
31 December 31 December
2013 2012^
R'000 R'000
Blyvooruitzicht Gold mining Company Limited
On 30 July 2013 , Village announced that its Board of Directors voted to suspend
financial assistance to Blyvooruitzicht Gold Mining Company Limited (Blyvoor)
and advised the Board of Directors of Blyvoor accordingly. The operations of
Blyvoor were discontinued and placed in provisional liquidation on 6 August 2013.
For the period ended 31 December 2013, Blyvooruitzicht is reported in the
Gauteng segment as a discontinued operation.
Village lost control of Blyvooruitzicht on the 6th of August 2013 and
Blyvooruitzicht was deconsolidated from this date.
A profit amounting to R421.4 million was recognised in the Statement of
comprehensive income as a result of the deconsolidation. This amount is included
in profit from discontinued operations on the statement of comprehensive income.
Analysis of discontinued operations of the
statement of comprehensive income
Revenue 46,621 374,895
Expenses (112,980) (522,882)
Total comprehensive (loss) before tax (66,359) (147,987)
Taxation - -
(Loss) for the year from discontinued operations (66,359) (147,987)
Profit on loss on control of discontinued operation 421,446 –
Total profit/(loss) on discontinued operation 355,087 (147,987)
Analysis of cash flows of the discontinued
operations
Cash flows from operating activities (38,417) 14,055
Cash flows from investing activities – (5,878)
Cash flows from financing activities – –
^ Restated as a result of reclassification of discontinued operations.
3. RECONCILIATION BETWEEN BASIC EARNINGS/(LOSS)
AND HEADLINE EARNINGS/(LOSS)
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
R'000 R'000
Net profit from continuing operations 111,244 253,024
Net profit from discontinued operations 298,458 (233,499)
Net profit for the period 409,702 19,525
Net profit from continuing operations 111,244 253,024
Less:
Profit attributable to non-controlling interest
from continuing operations (659) (375)
Basic earnings from continuing operations 111,903 253,399
Profit on sale of assets (938) –
Impairment of available for sale financial assets 23,842 –
Headline earnings from continuing operations
for the period 134,807 253,399
Net profit/(loss) from discontinued operations 298,458 (233,499)
Less:
Profit/(loss) attributable to non-controlling
interest from discontinued operations 92,323 (38,477)
Basic earnings from discontinued operations 206,136 (195,022)
Profit on sale of assets (52,906) –
Fair value adjustment on investment property – 130
Gain on loss of control of Blyvooruitzicht Gold mine (421,446) –
Headline loss from discontinued operations for
the period (268,217) (194,892)
Basic earnings per share (cents) from
continuing operations 12.07 25.68
Basic earnings per share (cents) from
discontinued operations 22.25 (19.76)
Total basic earnings per share (cents) 34.32 5.92
Diluted earnings per share (cents) from
continuing operations 11.42 25.11
Diluted earnings/(loss) per share (cents) from
discontinued operations 21.03 (19.76)
Total diluted earnings per share (cents) 32.45 5.35
6 months Restated
ended 6 months ended
31 December 31 December
2013 2012^
R'000 R'000
Headline earnings per share (cents) from
continuing operations 14.55 25.68
Headline earnings/(loss) per share (cents) from
discontinued operations (28.95) (19.75)
Total headline earnings/(loss) per share (14.40) 5.93
Diluted headline earnings per share (cents) from
continuing operations 13.75 25.11
Diluted headline (loss) per share (cents) from
discontinued operations (28.94) (19.75)
Total diluted headline profit/(loss) per share (cents) (15.19) 5.36
Net asset value per share (cents) 118.82 177.44
Note: All earnings/(loss) per share calculations are based on a weighted average number of shares.
Net asset value per share is based on the number of shares in issue.
Reconciliation of number of shares issued '000 '000
Reported at beginning of period 1,040,697 1,008,694
Forfeitable share plan shares/option issued at
beginning of period (53,408) (21,405)
Treasury shares at beginning of period (60,522) –
Fully paid up shares at the beginning of period 926,767 987,289
Adjusted for:
– Shares repurchased – (695)
Weighted average number of ordinary shares for
basic earnings per share 926,767 986,594
Adjust for:
Forfeitable share plan shares/options issued 53,408 21,405
Share options granted – 1,101
Weighted average number of ordinary shares for
diluted earnings per share 980,175 1,009,100
Note: 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.
The forfeitable share scheme shares are anti-dilutive instruments in respect of the diluted headline
loss per share from discontinued operations for 31 December 2013 and 31 December 2012 and the
diluted loss per share from discontinued operations for 31 December 2012.
^ Restated as a result of reclassification of discontinued operations.
6 months 6 months
ended ended
31 December 31 December
2013 2012
R'000 R'000
4. RELATED PARTIES
During the six months ended 31 December 2013 the
following related-party transactions were recorded:
Director share options
During the six months ended 31 December 2013,
Village granted an additional 12,317,263 share
options under the FSP share scheme to the directors
at a strike price of R0.46. An amount of R62,935
was expensed specifically relating to this issuing of
shares.
Related party transactions:
To the Point Properties (Pty) Ltd 75 –
To the Point Growth Specialists (Pty) Ltd 272 1,487
Umbono Financial Services (Pty) Ltd consulting
services 150 855
Key management 22,698 25,084
Salaries, bonuses and fees 19,504 17,160
Share option expenses 3,194 7,924
5. MINERAL RESOURCES AND
RESERVES
Village reports in terms of the South African code for the Reporting of Exploration
results, Mineral Resources and Ore Reserves (SAMREC).
Village employs a Group ore reserve manager who is responsible for reporting
mineral resources and reserves. He is assisted by an ore reserve manager at
each operation. There have been no material changes in the mineral reserves as
declared in our Annual Report as at 30 June 2013, except for the fact that Blyvoor
has been deconsolidated from the Village Group. The total reserves of 3.61Moz will
therefore be excluded from the Group total reserves.
6. SEGMENTAL REPORTING
Limpopo Limpopo
Lesego Cons Murch Corporate
31 December 2013 R'000 R'000 R'000
Revenue – 104,297 –
Cost of sales (2,673) (143,725) (168)
Gross profit (2,673) (39,428) (168)
Other income – 392 3,710
Operating, administrative and general – (8,083) (17,790)
Impairment of assets – – (23,842)
Operating profit/(loss) (2,673) (47,119) (38,090)
Finance income 321 125 3,180
Restructuring costs – – –
Fair value adjustment – – (354)
Finance cost – (1,801) (10)
Profit/(loss) from operations (2,352) (48,795) (35,274)
Taxation – – (596)
Profit/(loss) after tax (2,352) (48,795) (35,870)
Profit/(loss) on derecognition of Blyvoor – – –
Profit/(loss) for the period (2,352) (48,795) (35,870)
Other comprehensive income
Fair value adjustments to available-for-sale
investments – – –
Total comprehensive profit/(loss) for the year (2,352) (48,795) (35,870)
Discontinued Discontinued
Continuing operation operation
North West North West operations Gauteng North West
Tau Lekoa South Plant total Blyvoor Buffelsfontein
R'000 R'000 R'000 R'000 R'000 Total
Revenue 810,087 – 914,384 46,621 2,471 963,476
Cost of sales (574,862) 4,840 (716,588) (111,198) (94,503) (922,289)
Gross profit 235,225 4,840 197,796 (64,577) (92,032) 41,187
Other income 263 652 5,017 519 57,888 63,424
Operating, administrative and general (33,106) (4,954) (63,933) (981) (14,945) (79,859)
Impairment of assets – – (23,842) – (2,286) (26,128)
Operating profit/(loss) 202,382 538 115,038 (65,039) (51,375) (1,376)
Finance income – – 3,626 4 (706) 2,924
Restructuring costs (2,323) – (2,323) (211) – (2,534)
Fair value adjustment – – (354) – (4,385) (4,739)
Finance cost (2,099) (237) (4,147) (1,113) (163) (5,423)
Profit/(loss) from operations 197,960 301 111,840 (66,359) (56,629) (11,148)
Taxation – – (596) – – (596)
Profit/(loss) after tax 197,960 301 111,244 (66 359) (56,629) (11,744)
Profit/(loss) on derecognition of Blyvoor – – – 421,446 – 421,446
Profit/(loss) for the period 197,960 301 111,244 355,087 (56,629) 409,702
Other comprehensive income – – – – – –
Fair value adjustments to available-for-sale
investments – – – – – –
Total comprehensive profit/(loss) for the year 197,960 301 111,244 355,087 (56,629) 409,702
Limpopo Limpopo
Lesego Cons Murch
31 December 2012 R'000 R'000
Revenue – 180,710
Cost of sales (2,130) (153,529)
Gross profit (2,130) 27,181
Other income – 173
Operating, administrative and general – (13,279)
Impairment of assets – –
Operating profit/(loss) (2,130) 14,075
Finance income 789 758
Restructuring costs – –
Fair value adjustment – –
Finance cost – (1,731)
Profit/(loss) from operations (1,341) 13,102
Taxation – –
Profit/(loss) after tax (1,341) 13,102
Profit/(loss) on derecognition of Blyvoor – –
Profit/(loss) for the period (1,341) 13,102
Other comprehensive income
Fair value adjustments to available-for-sale investments – –
Total comprehensive profit/(loss) for the year (1,341) 13,102
North West Continuing Discontinued Discontinued
Tau Lekoa and operations Gauteng North West
Corporate South Plant total Blyvoor Buffelsfontein Total
R'000 R'000 R'000 R'000 R'000 R'000
Revenue – 834,363 1,015,073 374,895 279,972 1,669,940
Cost of sales – (536,267) 691,926 (525,240) (330,425) (1,547,591)
Gross profit – 298,096 323,147 (150,345) (50,453) 122,349
Other income – 3,157 3,330 3,879 8,493 15,702
Operating, administrative and general (10,529) (47,185) (70,993) (1,119) (43,954) (116,066)
Impairment of assets – – – – – –
Operating profit/(loss) (10,529) 254,068 255,484 (147,585) (85,914) 21,985
Finance income 21,233 – 22,780 771 240 23,791
Restructuring costs – – – – – –
Fair value adjustment (18,213) (3,387) (21,600) – 9,210 (12,390)
Finance cost (9) (1,900) (3,640) (1,173) (9,048) (13,861)
Profit/(loss) from operations (7,518) 248,781 253,024 (147,987) (85,512) 19,525
Taxation – – – – – –
Profit/(loss) after tax (7,518) 248,781 253,024 (147,987) (85,512) 19,525
Profit/(loss) on derecognition of Blyvoor – – – – – –
Profit/(loss) for the period (7,518) 248,781 253,024 (147,987) (85,512) 19,525
Other comprehensive income
Fair value adjustments to available-for-sale investments – – – – – (17,086)
Total comprehensive profit/(loss) for the year (7,518) 248,781 253,024 (147,987) (85,512) 2,439
7. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
The following table presents financial assets measured at fair value in the statement
of financial position in accordance with the fair value hierarchy.
This hierarchy groups financial assets into three levels based on the significance of
inputs used in measuring the fair value of the financial assets.
There are no financial liabilities mesured at fair value.
The fair value hierarchy has the following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities;
- Level 2: inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices); and
- Level 3: inputs for the asset or liability that are not based on observable market
data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based
on the lowest level of significant input to the fair value measurement.
31 December 2013 Level 1 Level 2 Level 3 Total
Available for sale financial assets
Investment in Continental Coal Limited* 10,399 – – 10,399
Financial Assets at fair value through profit or loss
Investment in AlGold Limited* 1,552 – – 1,552
31 December 2012 Level 1 Level 2 Level 3 Total
Available for sale financial assets
Investment in Continental Coal Limited* – – – –
Financial Assets at fair value through profit or loss
Investment in First Uranium Corporation* 7,489 – – 7,489
* These investments were classified as Level 2 in the 2013 annual report, due to a conversion
exchange rate being applied to the listed share price in obtaining the measurement of fair value.
With the adoption of IFRS 13, the classification of these investments was reconsidered and a
Level 1 classification was considered more appropriate.
Valuation methodology
Investment in Continental Coal Limited
The fair value of the investment in Continental Coal Limited is determined with
reference to the closing quoted Australian dollar share price on the Australian
Securities Exchange at each reporting date.
The quoted share price is converted to South African rands by applying the closing
Australian dollar to South African rand exchange rate at reporting date to the share
price quoted in Australian dollars. The fair value of the investment is obtained by
multiplying the South African rand denominated share price by Village's shareholding
in Continental Coal Limited.
Investment in Algold Resources Limited
The fair value of the investment in Algold Resources Limited is determined with
reference to the closing quoted Canadian dollar share price on the Toronto Stock
Exchange at each reporting date.
The quoted share price is converted to South African rands by applying the closing
Canadian dollar to South African rand exchange rate at reporting date to the share
price quoted in Canadian dollars. The fair value of the investment is obtained by
multiplying the South African rand denominated share price by Village's shareholding
in Algold Resources Limited.
CORPORATE INFORMATION
DIRECTORS Charles de Gaulle Street AUDITORS
Pretoria
Ferdi Dippenaar PricewaterhouseCoopers Inc
PO Box 68528. Highveld.
(Chief Executive Officer) Registered Accountants
0169
Executive and Auditors
Tel: +27 87 550 1123
Clinton Halsey Chartered Accountants (SA)
Fax: +27 86 616 6545
(Chief Financial Officer) 2 Eglin Road
Executive REGISTERED Sunninghill, 2157
Dalubuhle Ncube OFFICE (Private Bag x36,
Sunninghill, 2157)
(Operations Director) 210 Cumberland Avenue
Executive Bryanston 2191
Tel: +27 11 463 2489
Octavia Matshidiso BANKERS
Independent non-executive
director TRANSFER ABSA Bank Ltd
SECRETARIES 15 Alice Lane
Khetiwe McClain Sandton, 2196
Lead independent non- Link Market Services South
Africa (Pty) Ltd
executive director LISTING
13th Floor, Rennie House
Bernard Swanepoel PARTICULARS
19 Ameshoff Street
Non-executive Chairman Village Main Reef Ltd
Braamfontein 2001
Gerard Kemp (PO Box 4844, (formerly known as Village
Independent non-executive Johannesburg, 2000) Main Reef Gold Mining
director Tel: +27 11 713 0800 Company (1934) Ltd)
Phiway Mbuyazi Fax: +27 86 674 4381 (Registration number
Non-executive director 1934/005703/06)
Baba Njenje SPONSOR Share code: VIL
ISIN: ZAE000154761
Non-executive director Bravura Capital
(Pty) Ltd
INVESTOR AND
COMPANY 23 Fricker Road, Ground
PUBLIC RELATIONS
SECRETARY Floor, Suite 2
Illovo 2196 Russell and Associates
Fusion Corporate
PO Box 2070 Charmane Russell
Secretarial Services
Parklands 2121 Tel: +27 11 880 3924
(Pty) Ltd
Johannesburg Email:charmane@rair.co.za
1st Floor, The Greens Office
Park South Africa
Highveld Tel: +27 11 459 5000
Centurion Fax: +27 11 459 5100
www.villagemainreef.co.za
Date: 21/02/2014 09:34:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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