Wrap Text
Reviewed Condensed Consolidated Provisional Financial Results for the year ended 29 February 2016
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
Reviewed condensed consolidated provisional financial results
for the year ended 29 February 2016
Highlights
Contribution from operations margin 16,3%
HEPS up 15,5% to 156,6 cents
Net debt: equity ratio 3,5%
NAV per share of 720 cents
Final dividend per share 41 cents
Return on net operating assets 32,5%
Commentary
Basis of preparation
The reviewed condensed consolidated provisional financial results ("financial statements") for the year
ended 29 February 2016 ("year") contain, as a minimum, the information required by IAS 34: Interim
Financial Reporting and have been prepared in accordance with the frameworks concepts and measurement
and recognition requirements of the International Financial Reporting Standards ("IFRS"), the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee, 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 IFRS and are consistent with those applied in the audited annual financial statements for the year
ended 28 February 2015.
The financial statements have been prepared under the supervision of the Financial Director,
PGS de Wit CA(SA).
Introduction
The group continues to deliver good results driven by its diversification strategy as well as its cost
reduction and efficiency improvement initiatives.
In line with the diversification strategy, Afrimat entered into an agreement on 9 October 2015 to acquire
lime and associated products producer, Cape Lime Proprietary Limited ("Cape Lime"). The conditions
precedent to this agreement were met on 31 March 2016.
Financial results
Headline earnings increased by 15,2%, translating into headline earnings per share of 156,6 cents
(2015: 135,6 cents). This solid improvement in earnings resulted from a strong performance of the mineral
producing operations across all regions. The group was successful in increasing its operating margin to
16,3% from 14,0% and improving its cash generated from operations to R320,3 million from
R261,6 million through its efficiency improvement drive.
Improved efficiencies, cost reduction and the disposal of marginal businesses in the prior year,
contributed further to this improvement in earnings. A shift towards more valuable products in the
product mix enhanced earnings, but was affected by 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 operations in Mozambique.
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 and crushing equipment.
Labour relations continued to be satisfactory during the year under review. The group is committed to
creating and sustaining harmonious relationships in the workplace and addressing issues pro-actively.
The Mining & Aggregates/Minerals segment benefited from a good improvement from the traditional
aggregates business. However, after the closure of Highveld Steel and other market dynamics, the
Gauteng market showed a marginal slowdown.
In line with Afrimat's strategy to diversify, new greenfield projects were initiated in the Northern
Cape, Mpumalanga and Mozambique. These projects were impacted by the decline in commodity prices, which
resulted in the postponement of major projects.
The Concrete Based Products segment was impacted by lower revenue reflecting a tough environment.
Management has been focusing on initiatives to reduce costs and to increase market share, resulting in
positive results during the second half of the year.
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
Subsequent to the reporting date, the acquisition of Cape Lime became unconditional following the
regulatory approval for the acquisition. The effective date of the acquisition is 31 March 2016.
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. A final dividend of 41,0 cents
per share (2015: 37,0 cents per share) for the year was declared on 18 May 2016. The dividend payable
to shareholders who are subject to dividend tax is 34,85 cents per share (2015: 31,45 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. The acquisition
of Cape Lime effective 31 March 2016, will complement and augment Afrimat's industrial minerals product
offering and further expand its range of unique products.
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.
Auditor's review
This report has been reviewed by the company's auditor, Mazars. Their unmodified opinion is available
for inspection at the company's registered office. Their review was conducted in accordance with
ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity".
The auditor's report does not necessarily report on all of the information contained in this report.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the
auditor's engagement they should obtain a copy of the auditor's report together with the accompanying
financial information, from the issuer's registered office.
On behalf of the board
MW von Wielligh
Chairman
AJ van Heerden
Chief Executive Officer
19 May 2016
Dividend declaration
Notice is hereby given that a final gross dividend, No. 18 of 41,0 (2015: 37,0) cents per share, in
respect of the year ended 29 February 2016, was declared on Wednesday, 18 May 2016.
There are 143 262 412 shares in issue at reporting date of which 1 918 751 are held in treasury.
The total dividend payable is R58,7 million (2015: R53,0 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 34,85 cents and 41,0 cents per share, respectively.
The income tax number of the company is 9568738158.
Relevant dates to the final dividend are as follows:
Last day to trade cum dividend Friday, 3 June 2016
Commence trading ex dividend Monday, 6 June 2016
Record date Friday, 10 June 2016
Dividend payable Monday, 13 June 2016
Share certificates may not be dematerialised or rematerialised between Monday, 6 June 2016 and Friday,
10 June 2016, both dates inclusive.
Condensed consolidated statement of profit or loss and other comprehensive income
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015 Change
R'000 R'000 %
Revenue 1 969 786 1 998 600 (1,4)
Cost of sales (1 349 584) (1 472 007)
Gross profit 620 202 526 593 17,8
Operating expenses (299 445) (252 360)
Profit/(loss) on disposal of plant and equipment 931 (484)
Contribution from operations 321 688 273 749 17,5
Impairment of property, plant and equipment (note 2) - (1 555)
Impairment of goodwill (note 3) (1 300) -
Profit on disposal of business (note 11) - 7 853
Operating profit 320 388 280 047 14,4
Investment revenue 21 779 16 604
Finance costs (22 625) (22 464)
Share of losses of joint venture (4 487) (987)
Share of profit of associate 67 178
Profit before tax 315 122 273 378 15,3
Income tax expense (note 5) (90 930) (73 036) 24,5
Profit for the year 224 192 200 342 11,9
Profit attributable to:
Owners of the parent 222 128 198 104
Non-controlling interests 2 064 2 238
224 192 200 342
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Net change in fair value of available-for-sale
financial assets 91 213
Income tax effect on available-for-sale financial assets (17) (58)
Currency translation differences (note 4) 91 (561)
Income tax effect on currency translation differences (7) 180
Other comprehensive income for the year, net of tax 158 (226)
Total comprehensive income for the year 224 350 200 116 12,1
Total comprehensive income attributable to:
Owners of the parent 222 286 197 878
Non-controlling interests 2 064 2 238
224 350 200 116
Earnings per share:
Earnings per ordinary share (cents) 156,2 139,0 12,4
Diluted earnings per ordinary share (cents) 153,8 136,2 12,9
Note to statement of profit or loss and other
comprehensive income:
Shares in issue:
Total shares in issue 143 262 412 143 262 412
Treasury shares (note 12) (1 918 751) (505 829)
Net shares in issue 141 343 661 142 756 583
Weighted average number of net shares in issue 142 239 928 142 524 228
Diluted weighted average number of shares 144 451 506 145 495 989
Reconciliation of headline earnings
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015 Change
R'000 R'000 %
Profit attributable to owners of the parent 222 128 198 104
(Profit)/loss on disposal of plant and equipment attributable to
owners of the parent (935) 484
Profit on disposal of business (note 11) - (7 853)
Impairment of property, plant and equipment (note 2) - 1 555
Impairment of goodwill (note 3) 1 300 -
Total income tax effects 261 992
222 755 193 282 15,2
Headline earnings per ordinary share ("HEPS") (cents) 156,6 135,6 15,5
Diluted HEPS (cents) 154,2 132,8 16,1
Condensed consolidated statement of financial position
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015
R'000 R'000
Assets
Non-current assets
Property, plant and equipment 763 156 724 856
Investment property 3 040 3 040
Intangible assets 16 550 18 845
Goodwill 133 194 134 494
Investment in associate 250 380
Other financial assets (note 10) 156 424 158 228
Deferred tax 20 754 25 274
Total non-current assets 1 093 368 1 065 117
Current assets
Inventories 132 702 126 804
Current tax receivable 7 968 8 867
Trade and other receivables 295 552 287 976
Other financial assets (note 10) 875 783
Cash and cash equivalents 117 241 78 124
Total current assets 554 338 502 554
Total assets 1 647 706 1 567 671
Equity and liabilities
Equity
Stated capital 263 611 295 328
Business combination adjustment (105 788) (105 788)
Treasury shares (40 181) (8 056)
Net issued stated capital 117 642 181 484
Other reserves 8 619 7 506
Retained earnings 892 088 748 010
Attributable to equity holders of parent 1 018 349 937 000
Non-controlling interests 6 737 12 437
Total equity 1 025 086 949 437
Liabilities
Non-current liabilities
Borrowings (note 9) 47 321 56 775
Deferred tax 108 387 105 708
Provisions 75 565 67 323
Total non-current liabilities 231 273 229 806
Current liabilities
Borrowings (note 9) 65 564 65 646
Current tax payable 2 607 5 946
Trade and other payables 277 832 262 983
Obligation of share of joint venture's losses 5 466 979
Bank overdraft 39 878 52 874
Total current liabilities 391 347 388 428
Total liabilities 622 620 618 234
Total equity and liabilities 1 647 706 1 567 671
Note to statement of financial position:
Net asset value per share (cents) 720 656
Net tangible asset value per share (cents) 615 549
Total borrowings 112 885 122 421
Overdraft less cash and cash equivalents/(surplus cash) (77 363) (25 250)
Net debt 35 522 97 171
Net debt: equity ratio (%) 3,5 10,2
Condensed consolidated statement of cash flows
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015
R'000 R'000
Cash flows from operating activities
Cash generated from operations 399 373 348 968
Interest revenue 25 429 13 502
Dividends received 197 119
Finance costs (18 465) (19 391)
Tax paid (86 195) (81 552)
Net cash inflow from operating activities 320 339 261 646
Acquisition of property, plant and equipment (131 264) (162 468)
Proceeds on disposal of property, plant and equipment 14 310 23 198
Purchase of financial assets (2 101) (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 (note 13) - (245)
Acquisition of businesses - (14)
Net cash outflow from investing activities (119 055) (146 854)
Repurchase of Afrimat shares (50 100) (14 509)
Acquisition of additional non-controlling interest (note 13) (3 747) (8 343)
Infrasors treasury buy back (note 13) (9 647) -
Equity related cost on share cancellation by Infrasors - (220)
Net movement in borrowings (note 9.2) (9 536) (48 617)
Dividends paid (note 6.2) (76 141) (58 730)
Net cash outflow from financing activities (149 171) (130 419)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts 52 113 (15 627)
Cash, cash equivalents and bank overdrafts at the beginning of the year 25 250 40 877
Cash, cash equivalents and bank overdrafts at the end of the year 77 363 25 250
Condensed consolidated statement of changes in equity
Business Non-
Stated combination Treasury Other Retained controlling Total
capital adjustment shares reserves earnings 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
Holdings Limited
(note 13) - - - - (751) (779) (1 530)
- Afrimat Aggregates
(Trading)
Proprietary Limited
(note 13) - - - - (2 756) (1 236) (3 992)
- Delf Silica Coastal
Proprietary Limited
(note 13) - - - - (1 050) (1 771) (2 821)
Increase in effective
shareholding in
Infrasors due to:
- Increase in shares
held in treasury by
Infrasors (note 13) - - - - (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 tax (27 912) - 13 289 (2 937) 2 937 - (14 623)
Treasury shares issued
to non-executive
directors 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:
Additional
non-controlling
interest acquired
due to:
- Infrasors Holdings
Limited (note 13) - - - - (1 899) (1 848) (3 747)
Increase in effective
shareholding in
Infrasors due to:
- Increase in shares
held in treasury by
Infrasors(note 13) - - - - (4 331) (5 316) (9 647)
Share-based payments - - - 4 676 - - 4 676
Purchase of
treasury shares - - (50 100) - - - (50 100)
Settlement of
employee Share
Appreciation Rights
exercised and reserve
transfer, net of tax (31 717) - 17 975 (3 721) 3 721 - (13 742)
Profit for the year - - - - 222 128 2 064 224 192
Other comprehensive
income for the year - - - 158 - - 158
Net change in fair
value of available-for-
sale financial assets - - - 91 - - 91
Income tax effect - - - (17) - - (17)
Currency translation
differences (note 4) - - - 91 - - 91
Income tax effect - - - (7) - - (7)
Dividends paid
(note 6.2) - - - - (75 541) (600) (76 141)
Balance at
29 February 2016 263 611 (105 788) (40 181) 8 619 892 088 6 737 1 025 086
Notes
Reviewed Audited
year ended year ended
29 February 28 February
Change 2016 2015
% R'000 R'000
1. Segment information
Revenue
External sales
Mining & Aggregates/Minerals* (0,9) 1 409 937 1 422 305
Concrete Based Products (2,9) 559 849 576 295
(1,4) 1 969 786 1 998 600
Intersegment sales
Mining & Aggregates/Minerals* 30,2 116 374 89 355
Concrete Based Products (36,0) 2 733 4 267
27,2 119 107 93 622
Total revenue
Mining & Aggregates/Minerals* 1,0 1 526 311 1 511 660
Concrete Based Products (3,1) 562 582 580 562
(0,2) 2 088 893 2 092 222
Contribution from operations
Mining & Aggregates/Minerals* 281 838 220 255
Concrete Based Products 40 878 55 051
Other (1 028) (1 557)
321 688 273 749
Contribution from operations split (%)
Mining & Aggregates/Minerals* 87,6 80,5
Concrete Based Products 12,7 20,1
Other (0,3) (0,6)
100,0 100,0
Contribution from operations margins on
external revenue (%)
Mining & Aggregates/Minerals* 20,0 15,5
Concrete Based Products 7,3 9,6
Overall contribution 16,3 13,7
Other Information
Assets
Mining & Aggregates/Minerals* 981 224 951 196
Concrete Based Products 219 012 197 688
Other 447 470 418 787
1 647 706 1 567 671
Liabilities
Mining & Aggregates/Minerals* 303 175 304 720
Concrete Based Products 67 375 56 110
Other 252 070 257 404
622 620 618 234
Capital expenditure (excluding acquisitions
through business combinations)
Mining & Aggregates/Minerals* 105 880 136 144
Concrete Based Products 23 411 19 138
Other 1 973 7 186
131 264 162 468
* Comprising Industrial Minerals, Contracting Services and Aggregates. Segment header named to
include "Minerals", with no change to segment composition.
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015
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 year and recognising all resulting exchange
differences in other comprehensive income.
5. Income tax expense
The effective tax rate of the group increased from 26,7% in February
2015 to 28,9% in the current year mainly due to losses made in the
Mozambique operations on which no tax reversal was made and
deferred tax assets which had been recognised for the first time in the
previous year.
6. Dividends
6.1 Afrimat Limited dividends paid/declared in respect of the
current year profits
Interim dividend paid 22 922 18 625
Final dividend declared/paid 58 738 53 007
81 660 71 632
6.2 Dividends cash flow
Current year interim dividend paid 22 922 18 625
Previous year final dividend paid 53 007 40 113
Dividends received on treasury shares (388) (8)
75 541 58 730
Dividends paid by subsidiaries to non-controlling shareholders 600 -
76 141 58 730
7. Authorised capital expenditure
Not yet contracted for
- Property, plant and equipment 123 996 182 114
8. Depreciation and amortisation
Depreciation 79 585 74 048
Amortisation 2 296 2 562
81 881 76 610
9. Borrowings
9.1 Capital net movement
Opening balance 122 421 171 038
New borrowings 68 754 53 566
Repayments (78 290) (102 183)
Closing balance 112 885 122 421
Analysis as per statement of financial position
Borrowings non-current 47 321 56 775
Borrowings current 65 564 65 646
112 885 122 421
9.2 Analysis as per statement of cash flows
New borrowings 68 754 53 566
Repayments (78 290) (102 183)
(9 536) (48 617)
10. Other financial assets
Funding provided to Afrimat employees (BEE share purchase scheme) 137 775 136 200
Rehabilitation fund trusts and other 19 524 22 811
157 299 159 011
Analysis as per statement of financial position
Non-current other financial assets 156 424 158 228
Current other financial assets 875 783
157 299 159 011
Included in the above balance, are investments in environmental
insurance policies of R13,2 million (2015: R11,8 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 quoted prices 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 has been
disposed of as a going concern with effect from 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
29 February 28 February
2016 2015
12. Movement in number of treasury shares
Opening balance 505 829 1 048 676
Utilised for share appreciation rights scheme (1 069 171) (1 214 712)
Issued to non-executive directors - (240 000)
Purchased during 2 482 093 911 865
Closing balance 1 918 751 505 829
13. Acquisition of additional non-controlling interest
Infrasors Holdings Limited
During the year, Afrimat acquired a further 2 774 774 ordinary shares on the open market at an
average price of 135 cents per ordinary share. Infrasors acquired a further 7 135 511 ordinary
shares on the open market, at an average price of 135 cents per ordinary share.
Afrimat Infrasors
Aggregates Delf Silica Holdings
(Trading) Coastal Infrasors Limited
Proprietary Proprietary Holdings - Treasury
Limited Limited Limited buy back Total
R'000 R'000 R'000 R'000 R'000
2016
Additional non-controlling
interest acquired - - 1 848 5 316 7 164
Premium paid on additional
shares acquired in subsidiary
after initial acquisition - - 1 899 4 331 6 230
- - 3 747 9 647 13 394
2015
Additional non-controlling
interest acquired 1 236 1 771 779 212 3 998
Premium paid on additional
shares acquired in subsidiary
after initial acquisition 2 756 1 050 751 33 4 590
3 992 2 821 1 530 245 8 588
14. Business combination
The group acquired 100% of the issued ordinary shares of Cape Lime Proprietary Limited ("Cape
Lime acquisition") for R282,6 million, settled in shares of R23,6 million and cash of
R259,0 million, with effect from 31 March 2016. The effect of the acquisition will be reflected
in the results for the financial year ending 28 February 2017.
Cape Lime
R'000
Acquisition information is as follows:
Unaudited pro forma profit after tax assuming the business combination for full year 29 542
Unaudited pro forma revenue assuming the business combination for full year 156 381
Acquisition costs included in operating expenses for the year ended 29 February
2016 209
The initial accounting for this business combination was incomplete at the time of this
announcement. Further disclosure required in terms of IFRS 3, such as the fair value of assets
acquired and liabilities assumed, have not been disclosed as the effective date financials and
valuations have not been finalised.
15. 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
was subject to a due diligence process and approval by the competition authorities and the
Department of Mineral Resources. At the reporting date, the conditions precedent to the contract
had not yet been satisfied and therefore Afrimat had no control over Cape Lime.
All conditions were met on 31 March 2016 and the aggregate purchase consideration paid for the
acquisition of Cape Lime was R282,6 million and was settled in cash amounting to R259,0 million
and the reissuing of treasury shares of R23,6 million. Included in the purchase consideration was
an interest amount of R6,6 million. The original cash consideration of R252,4 million bore
interest at the Standard Bank of South Africa Limited's prime overdraft rate less 2 percent from
10 December 2015 in the event that all approvals were received from the authorities.
Infrasors Holdings Limited
On 31 March 2016, a special shareholders' meeting was held and the following special resolutions
were passed without modification: conversion of the company to a private company; conversion of
ordinary shares to no par value ordinary shares; cancellation of 7 333 011 treasury shares held
by Infrasors Management Services Proprietary Limited; and replacing the company's Memorandum
of Incorporation.
16. Contingencies
Guarantees to the value of R80,9 million (2015: R64,0 million) were supplied by Standard Bank of
South Africa Limited to various parties, including the Department of Mineral Resources and Eskom.
Guarantees to the value of R9,8 million (2015: R9,8 million) were supplied by FirstRand Bank
Limited to various parties, including the Department of Mineral Resources and Eskom.
Guarantees to the value of R23,5 million (2015: R27,6 million) by Lombard's Insurance Group,
R1,4 million (2015: R0,6 million) by ABSA Bank Limited and R2,7 million (2015: R2,7 million) by
SIG Guarantee Acceptances Proprietary Limited were supplied to various parties, including the
Department of Mineral Resources, Eskom and Chevron South Africa Proprietary Limited.
These guarantees are in respect of environmental rehabilitation and will only be payable in the
event of default by the group.
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 R5,3 million
(2015: R7,5 million). An accrual has been raised in respect of commitments made up to the end
of the financial year.
Reviewed Audited
year ended year ended
29 February 28 February
2016 2015
R'000 R'000
17. Related parties
Loan balance owing by associate 8 811 2 997
Loan balance owing by joint venture 19 565 2 896
Interest received from associate 588 48
Directors
MW von Wielligh*^ (Chairman)
AJ van Heerden (CEO)
PGS de Wit (FD)
GJ Coffee
L Dotwana*
F du Toit*
PRE Tsukudu*^
JF van der Merwe*^
HJE van Wyk*^
* Non-executive director ^ Independent
Registered office
Tyger Valley Office Park No. 2
Cnr. Willie van Schoor Avenue and Old Oak Road
Bellville, 7530
(PO Box 5278, Tyger Valley, 7536)
Sponsor
Bridge Capital Advisors Proprietary Limited
27 Fricker Road
Illovo, 2196
(PO Box 651010, Benmore, 2010)
Auditors
Mazars
Mazars House
Rialto Road
Grand Moorings Precinct
Century City, 7441
(PO Box 134, Century City, 7446)
Transfer secretaries
Computershare Investor Services Proprietary Limited
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
Bellville, 7530
(PO Box 5278, Tyger Valley, 7536)
www.afrimat.co.za
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