Wrap Text
Unaudited condensed consolidated interim financial results for the six months ended 31 August 2015
Afrimat Limited
('Afrimat' or 'the company' or 'the group')
(Incorporated in the Republic of South Africa)
(Registration Number: 2006/022534/06)
Share code: AFT
ISIN code: ZAE000086302
Unaudited condensed consolidated interim financial results
for the six months ended 31 August 2015
Growth through diversification
www.afrimat.co.za
Highlights
Contribution from operations margin 16,0%
HEPS up 24,4% to 76,0 cents
Net debt:equity ratio 14,4%
NAV per share of 671 cents
Interim dividend up 23,1% to 16,0 cents per share
Return on net operating assets 28,4%
Commentary
Basis of preparation
The unaudited condensed consolidated interim financial results ('financial statements') for
the six months ended 31 August 2015 ('the period') have been prepared in accordance with
and contain, as a minimum, the information required by IAS 34: Interim Financial Reporting.
The financial results are also prepared in accordance with the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee, the JSE Listings Requirements
and in the manner required by the South African Companies Act No. 71 of 2008, as amended.
The accounting policies and method of computation applied in preparation of the financial
statements are in accordance with International Financial Reporting Standards ('IFRS') and
are consistent with those applied in the audited annual financial statements for the year
ended 28 February 2015. The above information has not been audited or independently
reviewed on by Afrimat's auditor.
The financial statements have been prepared under the supervision of the Financial
Director, HP Verreynne BCompt (Hons) CA(SA).
Introduction
The group continues to deliver good results driven through its diversification strategy as
well as its cost reduction and efficiency improvement initiatives.
In line with the diversification strategy, Afrimat has entered into an agreement after the
reporting date to acquire lime and associated products producer, Cape Lime Proprietary
Limited ('Cape Lime').
Financial results
Headline earnings increased by 24,4%, translating into headline earnings per share of 76,0
cents (Aug 14: 61,1 cents). The solid improvement of earnings resulted from a strong
performance of mineral producing operations in all regions.
Improved efficiencies, cost reduction and disposal of marginal businesses contributed to
this improvement in earnings. A shift towards more valuable products in the product mix
enhanced earnings, but was affected by the overall lower sales volumes. Operating expenses
include the cost of additional resources required to increase the group's compliance capability
and costs associated to establish the Mozambique operations.
Operational review
All processing plants are fully operational and strategically positioned to deliver excellent
service to the group's customers. In respect of aggregates, Afrimat offers flexible services,
which are supplemented by mobile mining equipment.
Labour relations continued to be satisfactory during the period under review. This is expected
to continue as the latest wage negotiations have been concluded and workers' concerns are
receiving the required attention.
The Mining & Aggregates/Minerals segment delivered a strong performance with an improved
contribution from Infrasors Holdings Limited ('Infrasors') and the KwaZulu-Natal operations,
which generated satisfactory profits after a period of reinvestment.
Infrasors was impacted by the temporary closure of Highveld Steel but various new
initiatives were launched to recover the resultant lost sales.
Afrimat continues with the development of operations in the north of Mozambique as part
of its southern Africa expansion initiative.
The Concrete Based Products segment was impacted by lower revenue reflecting a tough
trading environment. Management is focussing on initiatives to reduce costs and to
increase market share.
Business development
New business development remains a key component of the group's growth strategy. The
dedicated business development team continues to successfully identify and pursue
opportunities in existing markets, as well as in anticipated new high growth areas in southern
Africa.
Acquisition
As published on SENS on 12 October 2015, the acquisition of Cape Lime is still subject to
a due diligence process and approval by the competition authorities and Department of
Mineral Resources. The acquisition would complement and augment Afrimat's industrial
minerals product offering and further expand its range of unique products. The due diligence
process has commenced and regulatory approvals are being sought.
B-BBEE
Existing BEE shareholders and the Afrimat BEE Trust in aggregate hold 26,1% of Afrimat's
issued shares. Transformation remains a key focus area for the group and excellent progress
has been made in meeting the Mining Charter and B-BBEE targets.
Dividend
The group's dividend policy is to maintain a 2,75 times dividend cover. An interim gross
dividend of 16,0 cents per share (Aug 2014: 13,0 cents per share) for the period was declared
on 6 November 2015. The dividend payable to shareholders who are subject to dividend tax
is 13,60 cents per share (Aug 2014: 11,05 cents per share).
Prospects
The group is well positioned to capitalise on its strategic initiatives, which include continued
growth from an excellent asset base, selective acquisitions and greenfield expansion projects.
Operational efficiency initiatives aimed at expanding volumes, reducing costs and developing
the required skill levels of all employees will continue across all operations.
Afrimat expects the current subdued business climate to continue with the group's growth
driven by the successful execution of its proven strategy, recent acquisitions and a wider
product offering to the market.
On behalf of the board
MW von Wielligh
Chairman
AJ van Heerden
Chief Executive Officer
9 November 2015
Dividend declaration
Notice is hereby given that an interim gross dividend, No. 17 of 16,0 cents per share, in
respect of the six months ended 31 August 2015, was declared on Friday, 6 November 2015.
There are 143 262 412 shares in issue at the announcement date, of which 435 447 are held
in treasury. The total dividend payable is R22,9 million (Aug 2014: R18,6 million). The board
has confirmed by resolution that the solvency and liquidity test as contemplated by the
Companies Act, No. 71 of 2008, as amended, has been duly considered, applied and satisfied.
This is a dividend as defined in the Income Tax Act, 1962, and is payable from income reserves.
The South African dividend tax rate is 15,0%. The dividend payable to shareholders who are
subject to dividend tax and shareholders who are exempt from dividend tax is 13,6 cents and
16,0 cents per share, respectively. The income tax number of the company is 9568738158.
Relevant dates pertaining to the final dividend are as follows:
Last day to trade cum dividend Friday, 4 December 2015
Commence trading ex dividend Monday, 7 December 2015
Record date Friday, 11 December 2015
Dividend payable Monday, 14 December 2015
Share certificates may not be dematerialised or rematerialised between Monday,
7 December 2015 and Friday, 11 December 2015, both dates inclusive.
Condensed consolidated statement of profit or loss and other comprehensive income
Unaudited six Unaudited six Audited
months ended months ended year ended
31 August 31 August 28 February
2015 2014 Change 2015
R'000 R'000 % R'000
Revenue 1 003 237 1 030 098 (2,6) 1 998 600
Cost of sales (701 206) (777 461) (9,8) (1 472 007)
Gross profit 302 031 252 637 19,6 526 593
Operating expenses (141 604) (125 849) 12,5 (252 360)
Profit/(loss) on disposal of
plant and equipment 496 561 (484)
Contribution from operations 160 923 127 349 26,4 273 749
Impairment of property, plant
and equipment (note 2) - - (1 555)
Impairment of goodwill (note 3) (1 300) - -
Profit on disposal of business - - 7 853
Operating profit 159 623 127 349 25,3 280 047
Investment revenue 9 779 8 159 16 604
Finance costs (10 541) (11 569) (22 464)
Share of losses of joint venture (2 723) - (987)
Share of profit of associate 17 147 178
Profit before taxation 156 155 124 086 25,8 273 378
Income tax expense (note 5) (47 156) (35 321) 33,5 (73 036)
Profit for the period 108 999 88 765 22,8 200 342
Profit attributable to:
Owners of the parent 107 526 87 606 198 104
Non-controlling interests 1 473 1 159 2 238
108 999 88 765 200 342
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Net change in fair value of
available-for-sale financial assets (361) 104 213
Income tax effect on available-
for-sale financial assets 67 (19) (58)
Currency translation differences (1 548) - (561)
Income tax effect on currency
translation differences - - 180
Other comprehensive income
for the period, net of tax (1 842) 85 (226)
Total comprehensive income
for the period 107 157 88 850 20,6 200 116
Total comprehensive income
attributable to:
Owners of the parent 105 684 87 691 197 878
Non-controlling interests 1 473 1 159 2 238
107 157 88 850 200 116
Earnings per share:
Earnings per ordinary share
(cents) 75,3 61,4 22,6 139,0
Diluted earnings per ordinary
share (cents) 74,4 60,2 23,6 136,2
Note to statement of profit or
loss and other comprehensive
income
Shares in issue:
Total shares in issue 143 262 412 143 262 412 143 262 412
Treasury shares (435 447) (187 287) (505 829)
Net shares in issue 142 826 965 143 075 125 142 756 583
Weighted average number of
net shares in issue 142 799 668 142 718 454 142 524 228
Diluted weighted average
number of shares 144 574 999 145 606 282 145 495 989
Reconciliation of headline earnings
Unaudited six Unaudited six Audited
months ended months ended year ended
31 August 31 August 28 February
2015 2014 Change 2015
R'000 R'000 % R'000
Profit attributable to owners
of the parent 107 526 87 606 198 104
(Profit)/loss on disposal of
plant and equipment (496) (561) 484
Profit on disposal of business - - (7 853)
Impairment of property, plant
and equipment (note 2) - - 1 555
Impairment of goodwill (note 3) 1 300 - -
Total income tax effects of
adjustments 139 157 992
108 469 87 202 24,4 193 282
Headline earnings per ordinary
share 'HEPS' (cents) 76,0 61,1 24,4 135,6
Diluted HEPS (cents) 75,0 59,9 25,2 132,8
Condensed consolidated statement of financial position
Unaudited six Unaudited six Audited
months ended months ended year ended
31 August 31 August 28 February
2015 2014 2015
R'000 R'000 R'000
Assets
Non-current assets
Property, plant and equipment 746 004 709 070 724 856
Investment property 3 040 3 040 3 040
Intangible assets 17 684 20 059 18 845
Goodwill 133 194 134 494 134 494
Investment in associate 200 348 380
Other financial assets (note 10) 164 420 147 868 158 228
Deferred tax 17 741 15 773 25 274
Total non-current assets 1 082 283 1 030 652 1 065 117
Current assets
Inventories 138 929 138 036 126 804
Current tax receivable 10 180 4 000 8 867
Trade and other receivables 344 278 335 305 287 976
Other financial assets (note 10) 803 - 783
Cash and cash equivalents 77 512 36 947 78 124
Total current assets 571 702 514 288 502 554
Total assets 1 653 985 1 544 940 1 567 671
Equity and liabilities
Equity
Stated capital 263 611 295 264 295 328
Business combination adjustment (105 788) (105 788) (105 788)
Treasury shares (8 334) (2 897) (8 056)
Net issued stated capital 149 489 186 579 181 484
Other reserves 4 300 5 738 7 506
Retained income 804 774 657 699 748 010
Attributable to equity holders of parent 958 563 850 016 937 000
Non-controlling interests 11 773 14 056 12 437
Total equity 970 336 864 072 949 437
Liabilities
Non-current liabilities
Borrowings (note 9) 50 614 66 649 56 775
Deferred tax 104 826 99 847 105 708
Provisions 72 097 63 530 67 323
Total non-current liabilities 227 537 230 026 229 806
Current liabilities
Borrowings (note 9) 60 542 86 258 65 646
Current tax payable 5 667 5 871 5 946
Trade and other payables 280 210 273 360 262 983
Obligation of share of joint venture's
losses 3 702 - 979
Bank overdraft 105 991 85 353 52 874
Total current liabilities 456 112 450 842 388 428
Total liabilities 683 649 680 868 618 234
Total equity and liabilities 1 653 985 1 544 940 1 567 671
Note to the statement of financial position:
Net asset value per share (cents) 671 594 656
Net tangible asset value per share (cents) 565 486 549
Total borrowings 111 156 152 907 122 421
Overdraft less cash and cash
equivalents/(surplus cash) 28 479 48 406 (25 250)
Net debt 139 635 201 313 97 171
Net debt:equity ratio (%) 14,4 23,3 10,2
Condensed consolidated statement of cash flows
Unaudited six Unaudited six Audited
months ended months ended year ended
31 August 31 August 28 February
2015 2014 2015
R'000 R'000 R'000
Cash flows from operating activities
Cash generated from operations 143 345 111 727 348 968
Interest revenue 7 458 8 840 13 621
Dividends received 197 - -
Finance costs (10 032) (10 674) (19 391)
Tax paid (42 030) (35 546) (81 552)
Net cash inflow from operating activities 98 938 74 347 261 646
Acquisition of property, plant
and equipment (64 471) (91 018) (162 468)
Proceeds on disposal of property,
plant and equipment 3 797 8 356 23 198
Purchase of financial assets (6 111) (12 949) (32 413)
Proceeds on sale of financial assets - - 14 288
Proceeds on disposal of business
(note 11) - - 10 800
Consideration paid for shares held
in treasury by Infrasors - (88) (245)
Acquisition of businesses - - (14)
Net cash outflow from investing activities (66 785) (95 699) (146 854)
Repurchase of Afrimat shares (18 253) (5 494) (14 509)
Acquisition of additional non-controlling
interest (note 13) (3 145) (4 043) (8 343)
Equity related cost on share cancellation
by Infrasors - - (220)
Net movement in borrowings (note 9.2) (11 265) (18 131) (48 617)
Dividends paid (note 6.2) (53 219) (40 263) (58 730)
Net cash outflow from financing activities (85 882) (67 931) (130 419)
Net decrease in cash, cash equivalents
and bank overdrafts (53 729) (89 283) (15 627)
Cash, cash equivalents and bank
overdrafts at the beginning of the period 25 250 40 877 40 877
Cash, cash equivalents and bank
overdrafts at the end of the period (28 479) (48 406) 25 250
Condensed consolidated statement of changes in equity
Business Non-
Stated combination Treasury Other Retained controlling Total
capital adjustment shares reserves income interests equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 March 2014 323 176 (105 788) (10 692) 6 562 610 509 14 196 837 963
Changes:
Additional non-controlling interest
acquired due to:
- Infrasors - - - - (23) (28) (51)
- Afrimat Aggregates (Trading)
Proprietary Limited - - - - (2 756) (1 236) (3 992)
Increase in effective shareholding
in Infrasors due to:
- Increase in shares held in
treasury by Infrasors - - - - (53) (35) (88)
Share-based payments - - - 1 770 - - 1 770
Purchase of treasury shares - - (5 494) - - - (5 494)
Settlement of employee Share
Appreciation Rights
exercised and reserve transfer,
net of taxation (27 912) - 13 289 (2 679) 2 679 - (14 623)
Profit for the period - - - - 87 606 1 159 88 765
Other comprehensive income
for the period - - - 85 - - 85
Net change in fair value of
available-for-sale financial assets - - - 104 - - 104
Income tax effect - - - (19) - - (19)
Dividends paid (note 6.2) - - - - (40 263) - (40 263)
Balance at 31 August 2014 295 264 (105 788) (2 897) 5 738 657 699 14 056 864 072
Balance at 1 March 2014 323 176 (105 788) (10 692) 6 562 610 509 14 196 837 963
Changes:
Additional non-controlling interest
acquired due to:
- Infrasors - - - - (751) (779) (1 530)
- Afrimat Aggregates (Trading)
Proprietary Limited - - - - (2 756) (1 236) (3 992)
- Delf Silica Coastal Proprietary
Limited - - - - (1 050) (1 771) (2 821)
Increase in effective shareholding
in Infrasors due to:
- Increase in shares held in
treasury by Infrasors - - - - (33) (212) (245)
Acquisition of non-controlling
interest in:
- Afrimat Mozambique Limitada - - - - - 1 1
Equity related cost on Infrasors
treasury shares cancelled - - - - (220) - (220)
Share-based payments - - - 10 663 - - 10 663
Purchase of treasury shares - - (14 509) - - - (14 509)
Settlement of employee Share
Appreciation Rights exercised
and reserve transfer, net of
taxation (27 912) - 13 289 (2 937) 2 937 - (14 623)
Treasury shares issued to
non-executive directors (note 12) 64 - 3 856 (6 556) - - (2 636)
Profit for the year - - - - 198 104 2 238 200 342
Other comprehensive income for
the year - - - (226) - - (226)
Net change in fair value of
available-for-sale financial assets - - - 213 - - 213
Income tax effect - - - (58) - - (58)
Currency translation differences
(note 4) - - - (561) - - (561)
Income tax effect - - - 180 - - 180
Dividends paid (note 6.2) - - - - (58 730) - (58 730)
Balance at 28 February 2015 295 328 (105 788) (8 056) 7 506 748 010 12 437 949 437
Changes:
Increase in effective shareholding
in Infrasors due to:
- Increase in shares held in
treasury by Infrasors (note 13) - - - - (1 358) (1 787) (3 145)
Share-based payments - - - 2 101 - - 2 101
Purchase of treasury shares - - (18 253) - - - (18 253)
Settlement of employee Share
Appreciation Rights exercised
and reserve transfer, net of
taxation (31 717) - 17 975 (3 465) 3 465 - (13 742)
Profit for the period - - - - 107 526 1 473 108 999
Other comprehensive income
for the period - - - (1 842) - - (1 842)
Net change in fair value of
available-for-sale financial assets - - - (361) - - (361)
Income tax effect - - - 67 - - 67
Currency translation differences
(note 4) - - - (1 548) - - (1 548)
Income tax effect - - - - - - -
Dividends paid (note 6.2) - - - - (52 869) (350) (53 219)
Balance at 31 August 2015 263 611 (105 788) (8 334) 4 300 804 774 11 773 970 336
Notes
Unaudited Unaudited
Split six six Split six six Split Audited
months months months months year year
ended ended ended ended ended ended
31 August 31 August 31 August 31 August 28 February 28 February
2015 2015 2014 2014 2015 2015
% R'000 % R'000 % R'000
1. Segment information
Revenue
External sales
Mining & Aggregates/Minerals 73,3 734 883 70,0 721 197 71,2 1 422 305
Concrete Based Products 26,7 268 354 30,0 308 901 28,8 576 295
100,0 1 003 237 100,0 1 030 098 100,0 1 998 600
Intersegment sales
Mining & Aggregates/Minerals 97,6 52 454 94,8 44 990 95,4 89 355
Concrete Based Products 2,4 1 297 5,2 2 482 4,6 4 267
100,0 53 751 100,0 47 472 100,0 93 622
Total revenue
Mining & Aggregates/Minerals 74,5 787 337 71,1 766 187 72,3 1 511 660
Concrete Based Products 25,5 269 651 28,9 311 383 27,7 580 562
100,0 1 056 988 100,0 1 077 570 100,0 2 092 222
Contribution from operations
Mining & Aggregates/Minerals 91,7 147 640 79,0 100 648 80,5 220 255
Concrete Based Products 9,9 15 935 23,3 29 683 20,1 55 051
Other (1,6) (2 652) (2,3) (2 982) (0,6) (1 557)
100,0 160 923 100,0 127 349 100,0 273 749
Contribution from operations margins
on external revenue (%) 20,1 14,0 15,5
Mining & Aggregates/Minerals 5,9 9,6 9,6
Concrete Based Products 16,0 12,4 13,7
Other Information
Assets
Mining & Aggregates/Minerals 1 019 815 966 888 951 196
Concrete Based Products 221 805 227 566 197 688
Other 412 365 350 486 418 787
1 653 985 1 544 940 1 567 671
Liabilities
Mining & Aggregates/Minerals 316 136 334 296 304 720
Concrete Based Products 66 451 64 338 56 110
Other 301 062 282 234 257 404
683 649 680 868 618 234
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 August 31 August 28 February
2015 2014 2015
R'000 R'000 R'000
2. Impairment of property, plant and
equipment
Impairment of property, plant and
equipment - - (1 555)
An impairment loss was recognised
in the previous year, relating to property,
plant and equipment items written
off at Delf Silica Coastal Proprietary
Limited after the disposal of the
assets and business of this
subsidiary as a going concern.
3. Impairment of goodwill
Impairment of goodwill (1 300) - -
An impairment was recognised
relating to goodwill at Scottburgh
Quarries Proprietary Limited due to
declining financial returns.
4. Currency translation differences
Foreign currency transactions relating
to the Mozambique operations are
translated into the presentation
currency (ZAR or R) by means of
translating assets and liabilities at
closing rate at the date of the
statement of financial position and
income and expenses at average
exchange rate for the period and
recognising all resulting exchange
differences in other comprehensive
income.
5. Income tax expense
The effective tax rate of the group
increased from 28,5% in August 2014
to 30,2% in current period mainly
due to losses made in the
Mozambique operations on which
no tax reversal was made.
6. Dividends
6.1 Dividends paid/declared in respect
of the current period profits by
Afrimat Limited
Interim dividend declared/paid 22 922 18 624 18 625
Final dividend declared - - 53 007
22 922 18 624 71 632
6.2 Net dividends paid by Afrimat Limited
Current year interim dividend paid - - 18 625
Previous year final dividend paid 53 007 40 113 40 113
Dividends (received)/reversed on
treasury shares (138) 150 (8)
52 869 40 263 58 730
Dividends paid by subsidiaries to
non-controlling shareholders 350 - -
53 219 40 263 58 730
7. Authorised capital expenditure
Not yet contracted for
- Property, plant and equipment 111 202 153 815 182 114
8. Depreciation and amortisation
Depreciation 39 030 36 459 74 048
Amortisation 1 161 1 348 2 562
40 191 37 807 76 610
9. Borrowings
9.1 Capital net movement
Opening balance 122 421 171 038 171 038
New borrowings 30 931 31 561 53 566
Repayments (42 196) (49 692) (102 183)
Closing balance 111 156 152 907 122 421
Analysis as per statement of
financial position
Borrowings non-current 50 614 66 649 56 775
Borrowings current 60 542 86 258 65 646
111 156 152 907 122 421
9.2 Analysis as per statement of
cash flows
New borrowings 30 931 31 561 53 566
Repayments (42 196) (49 692) (102 183)
Net movement in borrowings (11 265) (18 131) (48 617)
10. Other financial assets
Funding provided to Afrimat
employees (BEE share purchase
scheme) 142 035 112 737 136 200
Rehabilitation fund trusts and other 23 188 35 131 22 811
165 223 147 868 159 011
Non-current other financial assets 164 420 147 868 158 228
Current other financial assets 803 - 783
165 223 147 868 159 011
Included in the above balance, are
investments in environmental
insurance policies of R12,2 million
(Aug 2014: R19,7 million) measured
at fair value. The fair value of
unquoted unit trusts is derived using
the adjusted net asset method. The
adjusted net asset method
determines the fair value of the
investment in the unit trust by
reference to the fair value of the
individual assets and liabilities
recognised in a unit trust's statement
of financial position. The significant
inputs to the adjusted net asset
method are the fair values of the
individual assets and liabilities whose
fair value is derived from quoted
market prices in active markets. The
fair values are indirectly derived from
prices quoted in Level 1, and
therefore included in Level 2 of the
fair value hierarchy.
11. Proceeds on disposal of business
Net book value of property, plant
and equipment disposed - - 634
Net book value of inventory disposed - - 2 313
Profit on disposal of business - - 7 853
- - 10 800
The business, including all assets of Prima Quarries Namibia Proprietary Limited,
was disposed of as a going concern with effect 1 October 2014.
The business of Delf Silica Coastal Proprietary Limited was sold as a going concern
with effect from 1 September 2014.
Number of shares
31 August 31 August 28 February
2015 2014 2015
12. Movement in number of treasury
shares
Opening balance 505 829 1 048 676 1 048 676
Utilised for share appreciation rights
scheme (1 069 171) (1 214 712) (1 214 712)
Issued to non-executive directors - - (240 000)
Purchased during the period/year 998 789 353 323 911 865
Closing balance 435 447 187 287 505 829
13. Acquisition of additional non-controlling interest
Infrasors Holdings Limited
During the period, Infrasors acquired a further 2 331 265 ordinary shares on the open
market, at an average price of 135 cents per ordinary share.
Infrasors
Holdings
Limited
- Treasury
buy back
R'000
Additional non-controlling interest acquired 1 787
Premium paid on additional shares acquired in subsidiary after initial
acquisition 1 358
3 145
14. Events after reporting date
Cape Lime Proprietary Limited
Afrimat entered into an agreement in respect of the acquisition of 100% of the issued
ordinary shares of lime and associated products producer, Cape Lime on 9 October
2015. The acquisition is subject to a due diligence process and approval by the
competition authorities and the Department of Mineral Resources. To date, the
conditions precedent to the contract have not yet been satisfied and therefore Afrimat
has no control over Cape Lime.
The aggregate purchase consideration payable for the acquisition of Cape Lime is
R276,0 million to be settled in cash amounting to R252,0 million and the re-issuing of
treasury shares of R24,0 million.
Infrasors Holdings Limited
The listing of Infrasors's ordinary shares has terminated from the commencement of
business on Tuesday, 13 October 2015.
15. Contingencies
Additional guarantees to the value of R15,8 million by Standard Bank of South Africa
Limited were supplied to Eskom and the Department of Mineral Resources, respectively
during the period under review. A guarantee to the value of R4,1 million by Lombards
Insurance Group was cancelled during the current period.
A contingent liability exists due to the uncertain timing of cash flows with regards to
future local economic development ('LED') commitments made to the Department of
Mineral Resources in respect of companies with mining rights. These commitments are
dependent on the realisation of the future agreed upon LED projects. Future
commitments amount to R6,1 million (2015: R9,5 million). An accrual has been raised
in respect of commitments made up to the end of the period.
On 25 June 2013 SARS issued an adjusted income tax assessment claiming
R9,7 million additional tax, R7,2 million penalties and R2,4 million interest, relating
to the activities of Lyttelton Dolomite Proprietary Limited for the tax years 2010,
2011, 2012 based on the premise that the company is not a mining entity. The
company submitted an objection to SARS and was of the opinion that the company
is that of a mining nature. SARS informed the company on 23 July 2015 that its appeal
against the 2010, 2011, 2012 additional assessments was successful.
Directors
MW von Wielligh*# (Chairman)
AJ van Heerden (CEO)
HP Verreynne (FD)
GJ Coffee
L Dotwana*
F du Toit*
PRE Tsukudu*#
JF van der Merwe*#
HJE van Wyk*#
* Non-executive
# Independent
Registered office
Tyger Valley Office Park No. 2
Cnr. Willie van Schoor Avenue and Old Oak Road
Tyger Valley, 7530
(PO Box 5278, Tyger Valley, 7536)
Sponsor
Bridge Capital Advisors Proprietary Limited
2nd Floor, 27 Fricker Road, Illovo, 2196
(PO Box 651010, Benmore, 2010)
Auditor
Mazars
Mazars House, Rialto Road, Grand Moorings Precinct
Century City, 7441
(PO Box 134, Century City, 7446)
Transfer secretaries
Computershare Investor Services Proprietary Limited
Ground Floor, 70 Marshall Street
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Company secretary
M Swart
Tyger Valley Office Park No. 2
Cnr. Willie van Schoor Avenue and Old Oak Road
Tyger Valley, 7530
(PO Box 5278, Tyger Valley, 7536)
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