Sharenet Sites 
Sharenet Sites
Unaudited interim financial results for the six months ended 31 August 2014
METMAR LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/007269/06)
Share code: MML
ISIN code: ZAE000078747
(“Metmar” or “the Company” or “the Group”)
Unaudited interim financial results for the six months ended 31 August 2014
Highlights
• Core trading business profitable in challenging market environment
• Sefateng Chrome project issued with Mining Right
• Long-term chrome off-take agreement signed with Sefateng Chrome
• Shipment of manganese sinter from Kalagadi tolling commences
• Turnover up 11%
• Operating expenses down 4%
Financial performance (See also divisional performance report hereunder)
Description %
Unit of August August increase/
measurement 2014 2013 (decrease)
Volumes Tonnes 336 350 321 197 5
Revenue R’m 1 035,4 933,0 11
Gross margin % 5,0 7,1 (30)
Trading margin (non-IFRS)^ % 5,1 7,9 (35)
Operating expenses (excluding impairments) R’m (60,8) (63,3) (4)
EBITDA R’m 11,1 29,9 (63)
Net impairments and fair value adjustments R’m (6,6) 7,5 (188)
Attributable loss per share Cents (11,4) (17,4) (34)
Headline loss per share Cents (22,5) (11,0) 105
Closing net cash balance R’m 14,2 85,4 (83)
Total assets R’m 1 386,2 1 597,3 (13)
Net asset value R’m 410,5 600,2 (32)
^Trading margin is calculated as gross margin less contract expenses (including contract finance costs
and realised gain/loss on forex) that are not cost of sales per IFRS.
Owing to commencement of sale of manganese sinter, turnover increased by 11%. A general decline in commodity prices
such as manganese and iron ore, which in the last 12 months have declined by 23% and 25% respectively, led to margin
contraction. A gross margin of 5% was achieved, which is 30% below the same period last year. This equates to a R15,2 million
decline in gross profit in absolute terms. Trading margin of 5,1% is lower than the 7,9% achieved in the previous
period due to the aforementioned drop in key commodity prices.
Operating expenses declined by 4% to R60,8 million reflecting an effective cost containment strategy critical in the
midst of weak commodity prices. EBITDA of R11,1 million is 63% down from the previous period as a result of low gross
margins.
Fair value adjustments relate to mark-to-market losses of R23,0 million arising from Alphamin Resources share price
decline from 39 CAD cents to 21 CAD cents and Afarak Group share price decline from 37 EUR cents to 31 EUR cents. The
investment in Afarak Group is non-core and its disposal is in progress.
An impairment reversal amounting to R29,6 million was implemented following the award of the mining right to Sefateng
Chrome. The recently signed off-take agreement will be valued at financial year end.
Finance costs of R40,8 million, 6% up from the previous period, are expected to reduce in the second half as manganese
sinter sales become more regular. As a result of the above, the attributable loss for the period decreased by 34% to
R30,4 million, while headline loss increased to R60,1 million.
Divisional performance and prospects
The Group comprises two reportable segments which are trading and investments.
Trading
The trading activities are further subdivided into Core trading and Kalagadi tolling project.
Key area Unit of August August %
measurement 2014 2013 (decrease)/
increase
Core trading
Revenue R’m 839,5 917,1 (8)
Gross margin % 4,7 6,3 (25)
EBITDA R’m 21,1 33,7 (37)
Profit/(loss) before discontinued operations R’m 11,1 (1,9) 684
Discontinued operations R’m - (22,0) 100
Kalagadi tolling project
Revenue R’m 182,6 - 100
Gross margin % 3,7 - 100
EBITDA R’m 3,1 - 100
Loss after tax R’m (13,0) - (100)
Core trading
Core trading revenue decreased by 8% to R839,5 million. Volumes (excluding sinter) were 23% down on the prior year
mainly due to volume decreases in zinc, chrome and manganese ore, tin, coal, and iron ore volumes increased compared to the
prior period.
Gross margins of 4,7% were 25% down as a result of unfavourable product mix and reduced prices in commodities such as
iron ore.
Although EBITDA was down 37%, profit before discontinued operations was R11,1 million compared to a loss of R1,9
million in the previous year.
Tolling project
The Kalagadi tolling project made a loss of R13,0 million mainly due to high interest charges arising from financing
inventory. Manganese commodity prices decreased significantly over the period resulting in lower profit margins than
forecast. After solving numerous commissioning issues, the sinter plant is now stable and we expect higher production to
drive increased sales volumes in the second half, as well as decreasing inventory levels and finance charges.
Investments
Description Unit of August August %
measurement 2014 2013 decrease
Operating expenses R’m (13,6) (32,3) (58)
Net finance charges R’m (6,1) (8,2) (26)
Investments revenue was negative in the current year following the reversal of intercompany sales and profits with
Metmar Trading. Operating expenses are down 58% to R13,6 million and this trend is expected to continue into the second
half.
Net finance costs have decreased by 26% and are expected to further decrease as coke breeze is consumed in the sinter
tolling project.
Over the past two years various investments were impaired, and where uncertainties existed, non-core investments were
identified and transferred to non-current assets held for sale. Our investment portfolio is now streamlined to withstand
market fluctuations.
The five core investments are:
• Kalagadi Manganese (effective 4,6% interest - Manganese)
• Sefateng Chrome Mine (effective 19,9% interest - Chrome)
• Alphamin Resources (3,5% interest - Tin)
• FPT Minerals (26% interest - Container handling facility)
• Steelpoort Chrome Mines (51% interest - Chrome)
Core investments gained traction during the period. The signing of a long-term off-take agreement for chrome following
the award of a Mining Right to Sefateng Chrome will result in significant additional volumes going forward. The
off-take will require minimal cash investment from Metmar Trading to commence mining, as well as providing stability to future
trading volumes.
FPT Minerals, a 26% held investment in a container handling facility located in Maputo, completed its commissioning in
January 2014 and material from Sefateng Chrome will fully utilise its current capacity of 30 000 tonnes per month.
The Kalagadi Manganese sinter plant began production during the period. Commissioning issues have been addressed and
the plant is now running at a production level to match improving outbound logistics. Production volumes are expected to
be higher in the second half as the technical team fine tunes the production process.
Alphamin Resources declared further drilling results which firmed up its resource status. An updated resource
statement is expected in the second half of the financial year.
Steelpoort Chrome is currently completing an application for a water use licence which will be submitted in the
second half of the financial year. Upon award of this licence, Steelpoort Chrome will commence mining under its existing
mining right and deliver chrome to Metmar as per the signed off-take agreement.
The process of disposing non-core assets gained momentum during the period. Most of the property, plant and equipment
previously disclosed as non-current assets held for sale were successfully disposed of during the period. All other
non-core investments are held at minimal investment balances, pending sale or conversion to cash-generating assets.
The appointment of Mr Rob Still as Chairman of the Company has further strengthened the board and enabled the removal
of acting positions.
Metmar Trading China has been in operation since January 2014 allowing further upward integration for the company. Its
effectiveness is already benefiting the business through agents’ fees cost savings, increased access and interaction
with customers and quick turnaround times.
Our strategy over the last year has been and still is to refocus on Core trading activities. We will continue to take
further steps to clarify and expand our strategic intent as part of improving accountability and ownership. The key
areas of focus going forward are:
• Core trading
• Kalagadi tolling project
• Sefateng Chrome off-take
• Core investments including chrome, manganese, tin and container handling facility
We believe the business is appropriately resourced and structured to deliver on our strategy. The departure of Mr
Michael Golding comes after fulfilling his intentions of successfully trimming, restructuring and streamlining the
Investments business, which we believe is now better positioned to deliver on its objectives by the remaining investments team.
Directorate
Our non-executive Chairman, Mr Rob Still, was appointed by the board on 1 May 2014. Luigi Matteucci stepped down
as an acting chairman of the Company and reverted back to his role as chairman of the audit and risk committee.
Subsequent to the period end Adv KD Moroka tendered her resignation as an independent non-executive director of the company, as
well as a member of the audit and risk committee of the board. This follows her decision to scale down on her
commitments, board positions and business activities. The board and the management of Metmar are grateful for her contribution and
take this opportunity to wish her all the best in her future endeavours.
Subsequent events
There are no major events subsequent to the period end that warrant being reported on.
Outlook
Declining growth rates in China reflect a subdued commodity market. Chinese buyers have been opportunistic as
commodity prices have weakened during the period. Many mines and commodity trading companies are not sustainable at these
reduced commodity prices and hence natural attrition has prevailed which provides opportunities for the Company.
Going forward we intend to continue ramping up and exploiting signed off-take agreements, deliver profits from the
sinter tolling agreement, reduce costs and seek diversified profitable opportunities.
Condensed consolidated statements of financial position
Note Unaudited Unaudited Audited
at at at
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
ASSETS
Non-current assets
Property, plant and equipment 83 069 33 213 82 463
Goodwill and other intangible assets 48 222 102 207 48 222
Investment in associates 3 60 897 89 750 32 316
Other long-term financial assets 4 213 395 211 409 230 521
Deferred tax 12 461 18 864 23 238
418 044 455 443 416 760
Current assets
Inventories 536 859 501 536 547 832
Other short-term financial assets 4 - 44 132 28 436
Current tax receivable - 2 558 2 314
Trade and other receivables 361 630 474 395 512 541
Cash and cash equivalents 6 38 036 85 664 53 275
936 525 1 108 285 1 144 398
Non-current assets classified as held for sale 4 31 611 33 550 9 180
Total assets 1 386 180 1 597 278 1 570 338
EQUITY AND LIABILITIES
Capital and reserves 410 518 600 159 442 349
Non-current liabilities
Borrowings 1 626 13 413 2 759
Other liabilities - 2 930 -
Deferred tax liabilities 26 206 32 958 26 206
27 832 49 301 28 965
Current liabilities
Trade and other payables 5 915 205 941 208 1 086 672
Current tax liabilities 2 406 - 5 947
Bank overdraft 6 23 790 211 6
941 401 941 419 1 092 625
Non-current liabilities classified as held for sale 6 429 6 399 6 399
Total liabilities 975 662 997 119 1 127 989
Total equity and liabilities 1 386 180 1 597 278 1 570 338
Net asset value per share (cents) 153,58 224,52 165,48
Net tangible asset value per share (cents) 135,54 186,28 147,44
Number of shares in issue 267 306 552 267 306 552 267 306 552
Condensed consolidated statements of comprehensive income
Note Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
Continuing operations
Revenue 1 035 430 933 015 2 097 435
Cost of sales (984 139) (866 518) (1 962 293)
Gross profit 51 291 66 497 135 142
Other income 7 13 968 12 574 20 748
Operating expenses 8 (60 830) (63 333) (121 673)
Operating profit 4 429 15 738 34 217
Finance income 8 593 11 819 13 417
Impairment reversals/(loss) 29 634 (4 171) (155 372)
Fair value adjustments (23 032) (3 319) 18 606
Loss from equity accounted investment (1 053) (6 379) (12 245)
Finance costs 9 (40 769) (38 583) (64 337)
Loss before taxation (22 198) (24 895) (165 714)
Taxation 10 (8 518) (1 908) 4 936
Loss for the period from continuing operations (30 716) (26 803) (160 778)
Discontinued operations
Loss before taxation - (22 528) (20 348)
Taxation - 1 244 (1 651)
Loss for the period from discontinued operations 2 - (21 284) (21 999)
Total
Loss before taxation (22 198) (47 423) (186 062)
Taxation (8 518) (664) 3 285
Loss for the period (30 716) (48 087) (182 777)
Other comprehensive (loss)/income: (1 656) 3 696 (25 423)
Revaluations of investments and deferred tax on financial assets - - (31 932)
Movement in foreign currency reserves (1 656) 3 696 6 509
Total comprehensive loss for the period (32 372) (44 391) (208 200)
Loss attributable to:
Owners of the parent (30 418) (46 625) (162 729)
Non-controlling interests (298) (1 462) (20 048)
(30 716) (48 087) (182 777)
Total comprehensive loss attributable to:
Owners of the parent (32 074) (42 929) (182 777)
Non-controlling interests (298) (1 462) (25 423)
(32 372) (44 391) (208 200)
Loss per share:
Basic and diluted (cents) (11,4) (17,4) (60,9)
Headline (cents) 11 (22,5) (11,0) (17,6)
Weighted average number of shares 267 306 552 267 306 552 267 306 552
Condensed consolidated statements of changes in equity
Share Foreign Re- Acquisition Share- Retained Non- Total
capital currency valuation of shares holders’ earnings controlling equity
and translation reserve in sub- loans R’000 interests R’000
premium reserve R’000 sidiary R’000 R’000
R’000 R’000 R’000
Balance at 1 March 2013 160 004 1 191 22 055 (27 547) 72 885 463 912 (48 098) 644 402
Total comprehensive loss for - 3 696 - - (46 625) (1 462) (44 391)
the period
Increase in shareholders' loans - - - - 148 - - 148
Balance at 31 August 2013 160 004 4 887 22 055 (27 547) 73 033 417 287 (49 560) 600 159
Total comprehensive loss for the period - 316 (24 059) - (116 104) (23 962) (163 809)
Transfer of reserves into equity - - 78 396 - (78 396) - -
Realisation of capital gain on investment - - - - 5 999 - - 5 999
Movement in shareholders' loans - - - (6 192) - 6 192 -
in subsidiaries
Balance at 28 February 2014 160 004 5 203 76 392 (33 739) 79 032 222 787 (67 330) 442 349
Total comprehensive loss for the period - (1 656) - - (30 418) (298) (32 372)
Increase in shareholders' loans - - - - 541 - - 541
Balance at 31 August 2014 160 004 3 547 76 392 (33 739) 79 573 192 369 (67 628) 410 518
Condensed consolidated statements of cash flows
Note Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
Net cash used in operating activities
Cash (used in)/generated from operations 12 (4 934) (11 434) 41 883
Net finance costs (32 176) (26 764) (50 920)
Taxation (paid)/received (1 188) 445 (10 373)
Cash flows of held-for-sale/discontinued operation - - 5 763
Net cash used in operating activities (38 298) (37 753) (13 647)
Net cash (used in)/generated from investing activities
Net expenditure on property, plant and equipment (133) (1 086) 6 821
Net movement in financial assets - (3 809) -
Business combinations - - (1 327)
Sale of businesses 13 - 66 537 66 537
Purchase of derivative financial instruments - - (6 078)
Investment in associates - (6 334) (19 581)
Net cash (used in)/generated from investing activities (133) 17 555 46 372
Net cash used in financing activities
Net movement in financial liabilities - (885) (48 839)
Net movement in borrowings (1 133) (6 081) (5 937)
Increase in shareholder loans 541 - -
Net cash used in financing activities (592) (6 966) (54 776)
Total cash movement for the period (39 023) 10 589 (22 051)
Cash/(overdraft) at the beginning of the period 53 269 (19 742) (19 742)
Overdraft cancelled following discontinued operation 13 - 94 606 94 606
Cash from business combination - - 456
Cash and cash equivalents at the end of the period 6 14 246 85 453 53 269
Notes to the unaudited interim financial statements
1. Basis of preparation
The unaudited consolidated interim financial results have been prepared in accordance with, and containing the information
required by IAS 34 Interim Financial Reporting, International Financial Reporting Standards (IFRS), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council the South African Companies Act, as amended, and the JSE Listings Requirements.
Except for the new standards adopted below, all accounting policies applied by the Group in the preparation of these condensed
consolidated interim financial statements are consistent with those applied by the Group in its consolidated financial statements
for the year ended 28 February 2014.
The Group has adopted the following new standards:
Amendment to IFRS 2 - Share-Based Payments
Amendment to IFRS 3 - Business Combinations
Amendment to IFRS 8 - Operating Segments
Amendment to IFRS 13 - Fair Value Measurements
Amendments to IAS 16 - Property, Plant and Equipment
Amendments to IAS 19 - Employee Benefits
Amendments to IAS 24 - Related Party Disclosures
Amendments to IAS 38 - Intangible Assets
Amendments to IAS 40 - Investment Properties
There was no material impact on the interim financial statements identified based on management’s assessment of these standards.
Unaudited Unaudited Audited
six months to six months to year to
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
2. Discontinued operations
Revenue - 176 952 182 268
Expenses - (171 588) (176 877)
Profit before taxation - 5 364 5 391
Taxation - (1 668) (1 651)
Profit for the period from discontinued operations (before impairments) - 3 696 3 740
Profit on sale of discontinued operation - 19 170 19 170
Impairment of goodwill and intangible assets (net of tax) - (44 150) (44 909)
Loss for the period from discontinued operations (after impairments) - (21 284) (21 999)
3. Investment in associates
Sefateng Chrome Mine Proprietary Limited 28 799 61 851 61 851
Kivu Resources Limited (Registered in Mauritius) - 32 810 26 476
FPT Mineral Terminal Limitada (Registered in Mozambique) 3 517 1 468 1 468
32 316 96 129 89 795
Loss from associate - Sefateng Chrome Mine Proprietary Limited (667) (29) (1 435)
Loss from associate - Kivu Resources Limited - (5 015) (8 052)
Loss from associate - FPT Mineral Terminal Limitada (386) (1 335) (2 758)
31 263 89 750 77 550
Loans to associate - Sefateng Chrome Mine Proprietary Limited - - 3 157
Loans to associate - Kivu Resources Limited - - 11 617
Loans to associate - FPT Mineral Terminal Limitada - - 4 807
31 263 89 750 97 131
Reversal of impairment/(impairment) of associate - Sefateng Chrome Mine 29 634 - (34 774)
Impairment of associate - Kivu Resources Limited - - (30 041)
60 897 89 750 32 316
4. Other financial assets and non-current assets classified as held for sale
Other long-term financial assets
Kalahari Resources Proprietary Limited 192 900 166 000 192 900
SA Metals Equity Proprietary Limited - 28 500 -
Zimbabwe Alloys Chrome (Private) Limited - 16 909 -
Alphamin Resources Corp (Canada) 20 495 - 37 621
10 013 121 shares of CAD$0,21 each
213 395 211 409 230 521
Other short-term financial assets
Alphamin Resources Corp (Canada) - 17 308 -
9 884 606 shares of CAD$0,18 each
Afarak Group OYJ (Finland) (previously Ruukki Group Plc (Finland)) - 26 824 28 436
5 211 916 listed shares of EUR0,38 each
- 44 132 28 436
Investment in Alphamin Resources Corporation options and shares as well as Afarak Group Plc shares are level 1 fair value measurements
since their fair value is determined from quoted prices in the active Toronto Stock Exchange and Helsinki Stock Exchange markets respectively.
Other financial assets are classified as level 3 fair value measurements since its fair value determination is not based on observable
market data. Discounted cash flow valuation methods were used to determine fair value. An independent valuation was performed at 28 February 2014
year end for level 3 fair value measurements.
No independent valuation of level 3 transactions was undertaken at the two interim reporting periods and the next independent valuation
will be undertaken for the financial year ending 28 February 2015.
All financial assets are carried at fair value.
Non-current assets classified as held for sale
Property, plant and equipment - 7 600 100
Pering Base Metals Proprietary Limited 1 000 25 870 1 000
SA Metals Equity Proprietary Limited 8 000 - 8 000
Intangible assets 80 80 80
Afarak Group OYJ (Finland) (previously Ruukki Group Plc (Finland)) 22 531 - -
5 211 916 listed shares of EUR0,31 each
31 611 33 550 9 180
The Company owns 20% of Pering Base Metals which owns a lead and zinc mining project. This project is not operational and seeks injection of
funding to purchase capital equipment and resume mining. The Company will not participate in further fund raising and is divesting from the
project in line with its strategy to refocus on core trading activities.
The Company owns 20% of SA Metals Equity Proprietary Limited which runs a project to develop a pig iron recovery operation. This project is
up for disposal in line with our strategy to refocus on core trading activities and divest from projects which are unlikely to be cash
generative within the next 12 months.
Afarak Group OYJ is non-core to the Company’s activities and is in the process of being disposed in the Helsinki Stock Exchange.
5. Trade and other payables
Trade and other payables 229 713 226 290 231 955
Trade finance facilities 685 492 714 918 854 717
915 205 941 208 1 086 672
6. Cash and cash equivalents
Cash and cash equivalents 38 036 85 664 53 275
Less: Bank overdrafts (23 790) (211) (6)
14 246 85 453 53 269
7. Other income
Includes:
Profit on sale of 24 Sloane Street Properties Proprietary Limited - 9 107 9 124
Rental income 3 018 - -
Profit on foreign exchange 8 185 - -
Gain on disposal of property, plant and equipment 107 4 -
Other 2 658 3 463 11 624
13 968 12 574 20 748
8. Operating expenses
Consulting and professional fees 2 826 3 610 6 578
Depreciation 1 934 2 945 6 217
Employee costs 28 732 29 616 56 638
Legal fees 732 2 253 2 016
Operating lease charges 1 110 4 806 6 481
Repairs and maintenance 928 1 176 2 017
Travel and accommodation (local and overseas) 1 146 2 156 4 752
Logistics and handling fees 5 867 3 502 23 240
Loss on foreign exchange 4 758 3 059 -
Other 12 797 10 210 13 734
60 830 63 333 121 673
9. Finance costs
Includes:
Contract interest 33 517 19 944 22 978
Bank overdrafts 2 642 15 617 7 859
Financing effect on purchases and trade and other payables 4 610 3 022 33 500
40 769 38 583 64 337
10. Taxation
Normal taxation 1 088 2 405 18 134
Capital gains taxation - 1 271 1 269
Deferred taxation 7 430 (1 768) (24 339)
8 518 1 908 (4 936)
11. Reconciliation of headline loss
Loss for the period (30 418) (46 625) (162 729)
Adjustments for:
- Loss/(gain) on disposal of property, plant and equipment (77) 117 1 106
- Gain on disposal of 24 Sloane Street Properties Proprietary Limited - (7 892) (7 892)
- Gain on disposal on West African Group Division - (19 170) (19 170)
- Write-off of goodwill following discontinued operation - - 36 906
- Write-off of intangible assets (net of taxation and
non-controlling interest) 32 504
- Impairment of goodwill and intangibles (West African Group Division) - 44 150 -
- (Reversal)/impairment of associates (29 634) - 64 815
- Impairment of property, plant and equipment - - 3 574
- Impairment of non-current assets held for sale - - 3 900
Headline loss (60 129) (29 420) (46 986)
Headline (loss)/earnings per share (cents) (22,5) (11,0) (17,6)
Weighted average number of shares in issue* 267 306 552 267 306 552 267 306 552
* Weighted average number of shares is equal to the number of shares in issue as at 31 August 2014.
12. Cash (utilised in)/generated from operations
Loss before taxation (22 198) (24 895) (165 714)
Adjustments for:
- Non-cash items 24 305 26 (7 747)
- Net finance costs 32 176 26 764 50 920
- Impairment (reversal)/loss (29 634) 4 171 155 372
Changes in working capital:
- Inventories 10 973 (169 001) (233 395)
- Trade and other receivables 150 911 (124 244) (144 758)
- Trade and other payables (171 467) 275 745 387 205
(4 934) (11 434) 41 883
13. Disposal of West African Group (division of Metmar
Trading Proprietary Limited)
Total net asset value - 34 577 34 577
Gain on disposal of division - 19 170 19 170
Consideration received - 53 747 53 747
Bank overdraft facility reduced division being sold - 94 606 94 606
Net increase in cash and cash equivalents - 148 353 148 353
Disposal of 24 Sloane Street Properties Proprietary Limited
- Trade and other receivables 1 1
- Property, plant and equipment 3 642 3 642
- Current tax receivable 51 51
- Deferred tax (20) (20)
- Trade and other payables (8) (8)
Total net asset value 3 666 3 666
Gain on disposal of 24 Sloane Street Properties Proprietary Limited 9 124 9 124
Consideration received 12 790 12 790
Total consideration received 66 537 66 537
Write-off of goodwill and intangible assets
- Goodwill - 36 906 36 906
- Intangible assets - 10 156 10 156
Total - 47 062 47 062
- Deferred tax on intangibles - (2 912) (2 153)
Net write-off of goodwill and intangibles - 44 150 44 909
14. Segment report
In identifying its operating segments, management generally distinguishes investment in resource-based operations from the trading activities of the Group.
The following factors have been used to identify reportable segments of the Group:
- distinction between the investments and trading activities;
- investment segment includes investment in equity, property, plant and equipment; and
- trading segment relates to the traditional core trading activities of the Group together with the resource-based activities emanating from
off-take agreements and arrangements in place as a result of investment in equity, property, plant and equipment.
There has been no aggregation of the two segments identified as:
- investments; and
- trading.
Unaudited six months to 31 August 2014
Segmental report - Group Trading Investment Adjust- Total
R’000 R’000 ments R’000
and elimi-
nations
R’000
Segment revenues 1 022 139 (105 635) 118 926 1 035 430
Finance costs (30 086) (6 269) (4 414) (40 769)
Finance income 8 386 201 6 8 593
Depreciation, amortisation and impairments of (368) 28 661 (593) 27 700
non-financial assets
1 000 071 (83 042) 113 925 1 030 954
The totals presented for the Group’s operating segments reconcile
to the entity’s key financial results as presented:
Segment revenues 1 022 139 (105 635) 118 926 1 035 430
Other income 811 2 024 11 133 13 968
1 022 950 (103 611) 130 059 1 049 398
Segment profit or (loss)
Segment operating profit/(loss) 19 085 (48 068) 33 412 4 429
Impairments - 29 634 - 29 634
Fair value adjustments - (18 813) (4 219) (23 032)
Finance costs (30 086) (6 269) (4 414) (40 769)
Finance income 8 386 201 6 8 593
Discontinued operations - - - -
Loss from equity accounted investment - (1 053) - (1 053)
Total (loss)/profit before taxation (2 615) (44 368) 24 785 (22 198)
Taxation 647 1 612 (10 777) (8 518)
(Loss)/profit for the period (1 968) (42 756) 14 008 (30 716)
Segment assets 1 175 754 767 218 (556 792) 1 386 180
Segment liabilities 810 728 804 543 (639 609) 975 662
Unaudited six months to 31 August 2013
Segmental report - Group (continued) Trading Investment Adjust- Total
R’000 R’000 ments R’000
and elimi-
nations
R’000
Segment revenues 917 143 113 641 (97 769) 933 015
Finance costs (27 487) (9 996) (1 100) (38 583)
Finance income 9 973 1 838 8 11 819
Depreciation, amortisation and impairments of (1 484) (1 461) (47 062) (50 007)
non-financial assets
898 145 104 022 (145 923) 856 244
The totals presented for the Group’s operating segments reconcile
to the entity’s key financial results as presented:
Segment revenues 1 094 095 113 641 (97 769) 1 109 967
Other income 17 258 4 451 (9 135) 12 574
1 111 353 118 092 (106 904) 1 122 541
Segment profit or (loss)
Segment operating profit/(loss) 14 986 14 249 (13 497) 15 738
Impairments (4 171) (4 171)
Fair value adjustments (1 289) (1 260) (770) (3 319)
Finance costs (27 487) (9 996) (1 100) (38 583)
Finance income 9 973 1 838 8 11 819
Discontinued operations (22 495) - (33) (22 528)
Loss from equity accounted investment - (6 379) - (6 379)
Total (loss)/profit before taxation (26 312) (5 719) (15 392) (47 423)
Taxation 2 426 - (3 090) (664)
(Loss)/profit for the period (23 886) (5 719) (18 482) (48 087)
Segment assets 853 574 750 930 (7 226) 1 597 278
Segment liabilities 561 953 754 745 (319 579) 997 119
Audited year to 28 February 2014
Segmental report - Group (continued) Trading Investment Adjust- Total
R’000 R’000 ments R’000
and elimi-
nations
R’000
Segment revenues 2 059 801 234 001 (196 367) 2 097 435
Finance costs (41 149) (18 398) (4 790) (64 337)
Finance income 10 035 3 373 9 13 417
Depreciation, amortisation and impairments of (1 303) (3 468) (1 446) (6 217)
non-financial assets
2 027 384 215 508 (202 594) 2 040 298
The totals presented for the Group’s operating segments reconcile
to the entity’s key financial results as presented:
Segment revenues 2 059 801 234 001 (196 367) 2 097 435
Other income 8 212 14 318 (1 782) 20 748
2 068 013 248 319 (198 149) 2 118 183
Segment profit or (loss)
Segment operating profit/(loss) 80 737 46 172 (92 692) 34 217
Impairments (7 944) (145 486) (1 942) (155 372)
Fair value adjustments 8 792 (28 918) 38 732 18 606
Finance costs (41 149) (18 398) (4 790) (64 337)
Finance income 10 035 3 373 9 13 417
Discontinued operations (19 833) (515) - (20 348)
Loss from equity accounted investment - (12 245) - (12 245)
Total (loss)/profit before taxation 30 638 (156 017) (60 683) (186 062)
Taxation (15 682) 15 346 5 272 4 936
(Loss)/profit for the period 14 956 (140 671) (55 411) (181 126)
Segment assets 1 346 655 488 251 (264 568) 1 570 338
Segment liabilities 979 661 685 520 (537 192) 1 127 989
15. Corporate governance
The Metmar Group complies with the Code of Good Corporate Practice and Conduct published in the King III Report on Corporate Governance.
16. Related party transactions
During the period, the Company and its subsidiaries in the ordinary course of business, entered into various transactions with their
associates. These transactions were subject to terms that are no less favourable than those arranged with third parties.
R G Still D J EllwoodNon-executive Chairman Chief Executive Officer
28 October 2014
These results may be viewed on the internet on http://www.metmar.co.za
Directors: R Still* (Chairman), L Matteucci*, DJ Ellwood (Chief Executive Officer), TI Borman**,
PP Boshoff, D Earp*, GP Lotis, D Mashile-Nkosi**, SMS Nkosi (Chief Financial Officer)
* Independent non-executive ** Non-executive
Company Secretary: AC Swart
Sponsor: Nedbank Capital
Registered office: 25 Culross Road, corner Main and Culross, Bryanston, 2191 (PO Box 98549, Sloane Park, Bryanston 2152)
Transfer Secretaries: Computershare Investor Services Proprietary Limited(PO Box 61051, Marshalltown, 2107)
Auditors: EY
Date: 28/10/2014 08:00:00 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.
