Wrap Text
Reviewed condensed consolidated interim results for the 12 months ended 31 March 2016
Sentula Mining
Incorporated in the Republic of South Africa
(Registration number 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
("Sentula" or "the Company" or "the Group")
Reviewed condensed consolidated interim results for the 12 months ended 31 March 2016
FINANCIAL OVERVIEW
- Cash flow from operating activities increased by 80,9% to R85 million (2015: R47 million)
- Debt reduced by R126 million to R81 million during the period (2015: R139 million to R207 million)
- Basic loss per share from operations increased to 56,46 cents (Re-presented 2015*: 49,18 cents)
- Headline loss per share improved to 39,87 cents (Re-presented 2015*: 40,22 cents)
- Net asset value per share of 41 cents (2015*: 123 cents)
*Re-presented for the rights issue and classification of assets held-for-sale.
The Group’s earnings for the 12-month period were impacted by the following:
- Start-up of Coal mining operations at Nkomati Anthracite mine;
- A decrease in corporate head office overheads and other service costs of R18 million;
- Benicon Opencast Mining operating losses of R104 million;
- Impairment of Benicon Opencast Mining plant and equipment of R103 million; and
- Provision for claims and receivable impairment in Megacube of R129 million.
Benicon Opencast Mining Proprietary Limited (“Benicon”)
During November the operational management of Benicon was taken over by a new executive team. The team was faced with
escalating repairs and maintenance costs and lower equipment availability due to ageing of equipment.
In order to deliver into the secured Anglo Coal contracts, the bulk of the aging equipment will require replacement.
As an alternative to the significant investment required replacing the equipment, a merger opportunity with an existing
opencast mining company, Close-Up Mining Proprietary Limited (“Close-Up”), was identified.
Shareholders are referred to the SENS announcement on 27 June 2016 in which the transaction was announced.
Sentula currently holds 50,5% of the shares in Sentula Coal Proprietary Limited (“Sentula Coal”) with the remaining
shares held by the Sentula Employee Trust. Sentula Coal is currently 62,91% black owned. Sentula Coal’s opencast mining
activities commenced during 2015 when Sentula Coal secured its first opencast mining contract with Anglo Coal. Sentula
Coal appointed Benicon as its main subcontractor.
Sentula Coal is in the process of employing a substantial number of Benicon employees as well as acquiring certain
selected plant and equipment previously owned by Benicon. From 1 July 2016 Sentula Coal will be responsible for all
Anglo Coal contracts historically executed by Benicon.
The ultimate result of the announced transaction is that Sentula will hold 40% of the shares in Close-Up, which will,
in addition to its existing opencast mining operations, hold 50,5% of the shares in Sentula Coal, with Sentula Coal
owning selected plant and equipment previously owned by Benicon.
In addition, and as a direct consequence, Benicon will commence with an orderly process of disposing of the majority
of its ageing equipment.
Megacube claims
During the 2013 financial year, Megacube Mining Proprietary Limited (“Megacube”) instituted arbitral proceedings
against Keaton Mining Proprietary Limited (“Keaton”) for the recovery of R41,5 million owing to Megacube. In response
Keaton raised five counterclaims based on alleged breaches of contract by Megacube, which allegedly resulted in losses
totalling R80 million. Shortly before the arbitration commenced, Keaton abandoned one of its claims of R33,6 million.
During April 2016 the arbitrator dismissed Megacube’s claim despite Keaton not disputing its liability and found
Megacube to be liable to Keaton in respect of three of Keaton’s claims, including legal costs. The quantum of that liability
is to be determined separately in later arbitral proceedings before the arbitrator. Even though the quantum is yet to be
determined, based on the award made, Megacube has estimated a possible loss in favour of Keaton’s three counterclaims
of R92 million as well as R42 million in respect of Megacube’s receivable. Both amounts have been provided for in the
results.
Megacube has launched a high court application to set aside the award on the basis of gross irregularities as well as
the arbitrator exceeding his powers. This includes the dismissal of Megacube’s claim, which was never disputed by
Keaton. In addition and included in the R92 million provision, the arbitrator awarded Keaton an estimated R45 million more
damages than claimed. The high court will be requested to direct that the disputes be referred to a new arbitration before
three arbitrators.
Megacube is currently not operational and has a negative net asset value of R107 million. There is no known recourse
to Sentula or any other Sentula subsidiary in respect of Keaton’s claims. As Megacube is a subsidiary of Sentula,
accounting standards require that the award against Megacube be provided for in the results for the period under review.
OPERATIONAL REVIEW
Mining services
The Group operates mainly in five operating segments broadly defined as opencast mining services, overburden drilling
and blasting, mobile crane hire, exploration drilling and coal mining.
Opencast mining services
The bulk earth moving businesses of Benicon and Classic Challenge Trading Proprietary Limited (“CCT”) have continued
to experience difficult trading conditions. Repairs and maintenance costs have escalated significantly in Benicon due to
the age of the equipment and margins remain under pressure across the opencast mining contracting sector.
The objective of the announced transaction as well as the unwinding of Benicon is to cease the operating losses in
Opencast mining services as promptly as possible.
Overburden drilling and blasting
JEF Drill and Blast Proprietary Limited (“JEF”) provides overburden drilling and blasting services to Sentula Group
companies and external customers. The loss of certain external blasting contracts, combined with a reduction in coal
mining volumes, has negatively affected JEF’s performance. JEF, however, remains profitable and continues to secure new
overburden drilling contracts to compensate for the loss of some of the blasting contracts.
Mobile crane hire
Ritchie Crane Hire Proprietary Limited (“Ritchie”) continued to gain new customers, which partly offset the decline in
work experienced over the past 12 months as a result of a key client entering into business rescue proceedings. Ritchie’s
gross margins and crane availability were sustained but lower utilisation negatively affected the bottom line.
Exploration drilling
All restructuring measures were successfully implemented during the year, with all three Geosearch subsidiaries
positioned to operate profitably from current levels. In South Africa, Buenti’s Mogalakwena contract remains profitable and
has been extended for two years. Agua Terra in Mozambique has secured an attractive long-term bush clearing contract while
its exploration drilling activities are recovering gradually. Geosearch Botswana is operating on minimal overheads and
is awaiting adjudication on various contracts with a major customer.
Coal mining
Production at the Nkomati Anthracite mine recommenced at the end of the previous financial year after an offtake agreement
with Glencore Alloys was secured. During the 12-month period, the opencast operations produced a total of 218 880 run of mine
tonnes (“ROM”). Steady state production of 40 000 ROM per month was subsequently achieved.
STRATEGIC REVIEW
The Group’s current strategic focus areas are:
- settle outstanding senior Group debt of R37,5 million in order to allow for the release of Group securities;
- replace Group short-term banking facilities with operating subsidiary facilities;
- unlock value in Nkomati Anthracite mine;
- reduce the Group’s exposure to opencast mining services; and
- investment in future growth opportunities in existing and new sectors.
DIVIDENDS
The Board has decided not to declare a dividend for the period under review.
DIRECTORATE
The following resignation occurred during the 12 months under review to date of this report:
- RC Berry resigned as Chief Executive Officer and executive director on 7 October 2015.
The following appointments occurred during the 12 months under review to date of this report:
- JC Badenhorst was appointed as a non-executive director on 8 May 2015 and appointed as acting Chief Executive
Officer on 7 October 2015. He was appointed as the permanent Chief Executive Officer effective 1 March 2016; and
- T de Bruyn was appointed as a non-executive director effective 15 June 2016.
On behalf of the Board
Ralph Patmore Jacques Badenhorst
Non-executive Chairman Chief Executive Officer
Woodmead
27 June 2016
CONDENSED CONSOLIDATED INCOME STATEMENT
for the 12 months ended 31 March 2016
Audited
Reviewed March
March 2015
R’000 2016 Re-presented
Revenue 1 186 405 1 374 753
Loss from operations (105 406) (153 880)
Net profit/(loss) on disposal of assets 971 (52 099)
Megacube arbitration award (129 051) -
Impairment of plant and equipment (103 240) (14 795)
Impairment of assets held-for-sale - (815)
Operating loss (336 726) (221 589)
Finance charges (35 723) (52 918)
Fair value adjustment on interest rate cap - (159)
Loss before taxation (372 449) (274 666)
Taxation 24 215 (16 244)
Loss for the period from continuing operations (348 234) (290 910)
Discontinued operations
Loss for the period from discontinued operations (attributable to
the owners of the parent) - (275)
Loss on disposal of discontinued operations - (3 727)
Total loss for the period (348 234) (294 912)
Loss attributable to:
- Owners of the parent (348 234) (293 445)
- continuing operations (348 234) (289 443)
- discontinued operations - (4 002)
- Non-controlling interest - (1 467)
- continuing operations - (1 467)
- discontinued operations - -
Weighted basic and diluted loss per share (cents) (56,46) (49,18)
- continuing operations (cents) (56,46) (48,51)
- discontinued operations (cents) - (0,67)
Shares in issue at the end of the period (’000) 1 167 564 586 559
Shares in issue at the end of the period excluding treasury shares (’000) 1 162 011 581 005
Weighted average shares in issue at the end of the period excluding
treasury shares (’000) (2015 restated for the rights issue) 616 787 596 708
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 12 months ended 31 March 2016
Audited
Reviewed March
March 2015
R’000 2016 Re-presented
Loss for the period (348 234) (294 912)
Other comprehensive (expenses)/income
Items that may be subsequently reclassified to profit or loss
Foreign currency translation differences for foreign operations (7 006) 2 339
Other comprehensive (expenses)/income for the period, net of income tax (7 006) 2 339
Total comprehensive loss for the period (355 240) (292 573)
Loss attributable to:
- Owners of the parent (355 240) (291 106)
- continuing operations (355 240) (287 104)
- discontinued operations - (4 002)
- Non-controlling interest - (1 467)
- continuing operations - (1 467)
- discontinued operations - -
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the 12 months ended 31 March 2016
Reviewed Audited
March March
R’000 2016 2015
Assets
Total non-current assets 799 130 801 617
Property, plant and equipment 731 504 749 942
Restricted investments 1 995 -
Intangible assets - 672
Goodwill 37 427 37 427
Deferred income tax assets 28 204 13 576
Total current assets 336 674 403 328
Inventories 40 457 70 492
Trade and other receivables 209 193 312 947
Cash and cash equivalents 81 896 19 245
Current tax receivable 5 128 644
Assets of disposal group classified as held-for-sale - 219 490
Total assets 1 135 804 1 424 435
Equity and liabilities
Total equity attributable to equity holders of the parent 479 480 732 012
Share capital and premium 2 097 114 1 994 406
Reserves 101 131 110 689
Accumulated loss (1 718 765) (1 373 083)
Non-controlling interest - -
Total equity 479 480 732 012
Liabilities
Total non-current liabilities 158 047 114 856
Loans and borrowings 933 3 699
Rehabilitation provision 69 249 -
Finance lease obligations 22 275 44 356
Deferred income tax liabilities 65 590 66 801
Total current liabilities 498 277 509 534
Trade and other payables 213 277 191 594
Provisions 103 399 17 271
Loans and borrowings 40 019 133 134
Finance lease obligations 17 716 26 260
Bank overdraft 89 234 81 214
Current income tax liabilities 34 632 60 061
Liabilities of disposal group classified as held-for-sale - 68 033
Total liabilities 656 324 692 423
Total equity and liabilities 1 135 804 1 424 435
Net asset value per share (excluding treasury shares) (cents)
(2015 restated for the rights issue) 41 123
Tangible net asset value per share (excluding goodwill) -
excluding treasury shares (cents) (2015 re-presented for the
rights issue) 38 116
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the 12 months ended 31 March 2016
Reviewed Audited
March March
R’000 2016 2015
Cash flows from operating activities 85 068 47 138
Cash generated from operating activities 126 600 119 808
Income taxes paid (9 297) (20 622)
Interest paid (32 235) (52 048)
Cash flows from investing activities (19 603) (3 534)
Interest received 1 309 769
Purchase of property, plant and equipment (37 856) (103 959)
Proceeds from disposal of property, plant and equipment 16 607 42 021
Capitalised exploration expenditure - (1 187)
Additions to assets held-for-sale - (830)
Proceeds from disposal of assets held-for-sale 2 332 27 279
Proceeds from disposal of subsidiary - 23 680
Movement in restricted investment (1 995) 8 693
Cash flows from financing activities (12 319) (139 033)
Increase in borrowings - 77 476
Decrease in borrowings (115 027) (216 509)
Proceeds from the rights issue 104 581 -
Payment of transaction costs related to rights issue (1 873) -
Net increase/(decrease) in cash and cash equivalents 53 146 (95 429)
Cash and cash equivalents at the beginning of the period (60 569) 33 744
Exchange gain on cash and cash equivalents 85 1 116
Cash and cash equivalents at the end of the period (7 338) (60 569)
Cash and cash equivalents classified as discontinued operations - 1 400
Cash and cash equivalents per statement of financial position (7 338) (61 969)
Cash and cash equivalents at the end of the period (7 338) (60 569)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Foreign
capital Share-based currency
and payment Treasury translation
R’000 premium reserve shares reserve
Restated balance as at 31 March 2014 2 020 304 36 684 (25 898) 74 166
Loss for the year - - - -
Other comprehensive income - - - 2 339
Transactions with owners, recorded directly in equity
Disposal of subsidiary - (2 500) - -
Balance as at 31 March 2015 2 020 304 34 184 (25 898) 76 505
Loss for the year - - - -
Other comprehensive loss - - - (7 006)
Transactions with owners, recorded directly in equity
Shares issued for cash 104 581 - - -
Rights issue transaction costs (1 873) - - -
Share options forfeited - (2 552) - -
Total contributions by and distributions to owners 102 708 (2 552) - (7 006)
Balance as at 31 March 2016 2 123 012 31 632 (25 898) 69 499
Total
Non- ordinary
Accumulated controlling shareholders’
R’000 loss Total interest funds
Restated balance as at 31 March 2014 (1 080 639) 1 024 617 1 467 1 026 084
Loss for the year (293 445) (293 445) (1 467) (294 912)
Other comprehensive income - 2 339 - 2 339
Transactions with owners, recorded directly in equity
Disposal of subsidiary 1 001 (1 499) - (1 499)
Balance as at 31 March 2015 (1 373 083) 732 012 - 732 012
Loss for the year (348 234) (348 234) - (348 234)
Other comprehensive loss - (7 006) - (7 006)
Transactions with owners, recorded directly in equity
Shares issued for cash - 104 581 - 104 581
Rights issue transaction costs - (1 873) - (1 873)
Share options forfeited 2 552 - - -
Total contributions by and distributions to owners (345 682) (252 532) - (252 532)
Balance as at 31 March 2016 (1 718 765) 479 480 - 479 480
INFORMATION ABOUT REPORTABLE SEGMENTS
The Group is organised in five operating segments, namely Opencast mining services, exploration drilling, overburden
drilling and blasting, mobile crane hire and coal mining. Benicon, CCT, Sentula Coal, and Benicon Sales Proprietary Limited
(“Benicon Sales”) are included in the Opencast mining services. Sentula Coal and Benicon Sales are now included in Opencast
mining services due to a change in the structure of the organisation, previously Sentula Coal was included in the coal
mining segment and Benicon Sales was included in corporate and other services. Benicon Coal Proprietary Limited (“Benicon”)
and Nkomati Anthracite Proprietary Limited (“Nkomati”) are included in the coal mining operations, Benicon Coal and Nkomati
have been represented in the prior year as they are no longer classified as held-for-sale. Even though Megacube is no longer
operational it has been disclosed separately due to its materiality. Segment performance is measured based on the segment
profit before interest and income tax. Intersegment revenue is priced on an arm’s length basis.
Opencast Overburden
mining Exploration drilling and Crane
R’000 services drilling blasting hire
Reviewed 12 months ended 31 March 2016
Total segment revenue 748 772 196 721 311 612 72 665
Inter-segment revenue 95 196 5 934 110 925 1 518
External revenue 653 576 190 787 200 687 71 147
Total segment results pre-impairment (110 324) (5 650) 22 680 23 369
Impairment of plant and motor vehicles (103 240) - - -
Net gain on disposal of assets (764) 1 544 192 (3)
Segment results (214 328) (4 106) 22 872 23 366
Segment assets 353 263 143 011 191 420 156 932
Current and deferred tax assets - 15 518 1 356 -
Total assets 353 263 158 529 192 776 156 932
Segment liabilities 137 263 16 439 61 398 11 540
Current and deferred tax liabilities 40 120 4 795 14 686 23 564
Total liabilities 177 383 21 234 76 084 35 104
Audited re-presented 12 months ended 31 March 2015
Total segment revenue 815 212 269 170 358 549 100 620
Inter-segment revenue 69 956 2 659 101 092 1 202
External revenue 745 256 266 511 257 457 99 418
Continuing operations
Total segment results pre-impairment (134 508) (58 927) 41 782 47 433
Net loss on disposal of assets (50 225) 1 192 1 600 (321)
Impairment of property, plant and equipment (11 803) (2 992) - -
Impairment of assets transferred to held-for-sale - (815) - -
Total segment results from continuing operations (196 536) (61 542) 43 382 47 112
Segment assets 579 881 173 379 208 922 165 010
Assets classified as held-for-sale 2 553 2 790 - -
Current and deferred tax assets - 11 746 - 233
Total assets 582 434 187 915 208 922 165 243
Segment liabilities 137 466 47 177 55 240 15 521
Liabilities classified as held-for-sale - - - -
Current and deferred tax liabilities 40 857 24 510 16 311 -
Total liabilities 178 323 71 687 71 551 15 521
Corporate
Coal and other
R’000 mining Megacube services Total
Reviewed 12 months ended 31 March 2016
Total segment revenue 135 799 (36 719) 550 1 429 400
Inter-segment revenue 28 872 - 550 242 995
External revenue 106 927 (36 719) - 1 186 405
Total segment results pre-impairment (12 203) (129 199) (23 130) (234 457)
Impairment of plant and motor vehicles - - - (103 240)
Net gain on disposal of assets (4) - 6 971
Segment results (12 207) (129 199) (23 124) (336 726)
Segment assets 202 618 5 340 49 888 1 102 472
Current and deferred tax assets 14 729 - 1 729 33 332
Total assets 217 347 5 340 51 617 1 135 804
Segment liabilities 83 231 95 252 150 979 556 102
Current and deferred tax liabilities - 16 802 255 100 222
Total liabilities 83 231 112 054 151 234 656 324
Audited re-presented 12 months ended 31 March 2015
Total segment revenue 6 111 - 950 1 550 612
Inter-segment revenue - - 950 175 859
External revenue 6 111 - - 1 374 753
Continuing operations
Total segment results pre-impairment (14 648) 2 076 (37 088) (153 880)
Net loss on disposal of assets - - (4 345) (52 099)
Impairment of property, plant and equipment - - - (14 795)
Impairment of assets transferred to held-for-sale - - (815)
Total segment results from continuing operations (14 648) 2 076 (41 433) (221 589)
Segment assets 69 42 207 21 257 1 190 725
Assets classified as held-for-sale 213 947 200 - 219 490
Current and deferred tax assets - - 2 241 14 220
Total assets 214 016 42 407 23 498 1 424 435
Segment liabilities 1 034 1 484 239 606 497 528
Liabilities classified as held-for-sale 68 033 - - 68 033
Current and deferred tax liabilities - 41 424 3 760 126 862
Total liabilities 69 067 42 908 243 366 692 423
RECONCILIATION OF HEADLINE LOSS
Reviewed Audited re-presented
March 2016 March 2015
Continuing Discontinued
R’000 Group operations operations Group
Loss for the period attributable to equity holders of the parent (348 234) (289 443) (4 002) (293 445)
Adjusted for:
Profit on disposal of plant and equipment (1 742) (2 762) - (2 762)
Loss on disposal of subsidiary - - 3 727 3 727
Loss on disposal of plant and equipment 771 54 861 - 54 861
Scrapping of assets - 1 357 - 1 357
Profit on disposal of held-for-sale assets - - - -
Impairment of property, plant and equipment 103 240 14 795 - 14 795
Impairment of assets held-for-sale - 815 - 815
Tax effect of above adjustments 53 (19 338) - (19 338)
Headline loss attributed to ordinary shareholders (245 912) (239 715) (275) (239 990)
Weighted headline loss per share (cents) (2015 re-presented for the rights issue) (39,87) (40,17) (0,05) (40,22)
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION
1 Basis of preparation
The condensed consolidated interim financial statements for the 12 months ended 31 March 2016 have been prepared
under the supervision of Mr JC Lemmer (CA)SA in accordance with International Financial Reporting Standards IAS 34,
Interim Financial Reporting, the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee
and Financial Pronouncements as issued by the Financial Reporting Standards Council, the requirements of the
Companies Act of South Africa and the Listings Requirements of the JSE Limited.
The condensed consolidated interim financial statements do not include all the information and disclosures required
in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements
as at 31 March 2015, which have been prepared in accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IASB).
The accounting standards and amendments to issued accounting standards and interpretations, which are relevant to
the Group, but not yet effective on 31 March 2016 have not been early adopted.
2 Change in year-end
As announced by the Company on SENS on 22 March 2016, Sentula has, with effect from 30 June 2016, amended its
financial year-end from 31 March to 30 June. These interim financial results reflect the financial results of the
Group for the 12-month interim period ended 31 March 2016, as required in terms of paragraph 3.15(b) of the JSE
Listings Requirements.
3 Accounting policies
The significant accounting policies, judgements, estimates and methods of computation are in terms of IFRS and are
consistent in all material respects with those applied in the annual financial statements for the year ended
31 March 2015 and are presented in South African rand, which is the functional and presentational currency.
There have been no material changes to the items measured at fair value as disclosed in the financial statements
subsequent to 31 March 2015. The directors consider that the carrying amounts of financial assets and liabilities
recorded at amortised cost approximate their fair values.
4 Review conclusion
These condensed consolidated interim financial statements for the 12 months to 31 March 2016 have been reviewed by
PricewaterhouseCoopers Inc. who expressed an unmodified review conclusion. A copy of the auditor’s review conclusion
is available for inspection at the Company’s registered office together with the interim financial statements identified
in the auditor’s report.
The auditor’s report does not necessarily report on all of the information contained in this announcement/financial
results. 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.
5 Assets and liabilities classified as held-for-sale
Benicon Coal and its subsidiary, Nkomati Anthracite can no longer be classified as held-for-sale as the requirements
of IFRS 5 are no longer met.
The prior year numbers on the income statement, statement of comprehensive income, basic and headline loss per share
have been re-presented to include Benicon Coal and Nkomati in continuing operations. In terms of IFRS 5, the statement
of financial position for March 2016 includes these operations on a line by line basis.
Transferred
Reviewed (from)/to Audited
March held-for- March
R’000 2016 Disposal sale 2015
Assets held-for-sale
Property, plant and equipment - (5 544) (184 202) 189 746
Deferred tax asset - - (14 729) 14 729
Inventories - - (10 384) 10 384
Trade and other receivables - - (3 231) 3 231
Cash and cash equivalents - - (1 400) 1 400
- (5 544) (213 946) 219 490
Liabilities held-for-sale
Rehabilitation provision - - (66 899) 66 899
Trade and other payables - - (1 134) 1 134
- - (68 033) 68 033
6 Rights issue
During the first quarter of 2016, Sentula embarked on a partially underwritten renounceable rights offer in terms of
which 100 rights offer shares were issued for every 100 shares held at a subscription price of 18 cents per rights
offer share. The Company raised R104,58 million. Following the issue of the rights offer shares, the number of
Sentula shares in issue is 1 167 564 491.
7 Contingent assets
During the year judgment was granted in favour of the Golden Autumn Trust against Argent Industrial Limited (“Argent”)
for payment of the sum of R8,8 million with interest on this sum a tempore more, as well as costs of the suit. Argent
was granted leave to appeal this matter on 8 May 2015. Any funds recovered through the Golden Autumn Trust, net of
costs, are paid over to Megacube Mining.
Argent’s claim against Sentula and Megacube was dismissed with costs.
8 Contingent liabilities
Keaton sought, in one of its claims in the arbitration, compensation for the value of ROM coal allegedly not
extracted amounting to R39,5 million based on 386 592 tonnes. As an alternative to this claim Keaton claimed an
amount of R48,6 million in respect of the cost to remove the overburden above the coal allegedly not extracted. The
higher amount of R48,6 million was provided for.
However, the arbitrator awarded Keaton tonnages substantially in excess of what it sought, namely for 657 583 tonnes
ROM coal allegedly not extracted.
The additional 270 991 tonnes of ROM coal awarded under this claim, estimated at R45 million, is challenged in the
mentioned high court application. As a result no further provision has been made above the compensation originally
sought by Keaton.
9 Events after the reporting period
The directors are not aware of any subsequent events that occurred between the reporting period up to the date of
this report, not otherwise dealt within this report.
10 Going concern
The financial statements have been prepared on the going-concern basis as the directors have every reason to believe
that the Company has adequate resources in place to continue in operation for the foreseeable future. The basis presumes
that funds will be available to finance future operations and that the realisation of assets and settlement of
liabilities, contingent obligations and commitments will occur in the ordinary course of business.
Directors: RB Patmore* (Chairman), JC Badenhorst (Chief Executive Officer),
JC Lemmer (Financial Director), DR Zihlangu*, SP Naudé*, ME Gama*, T de Bruyn#
*Independent non-executive #Non-executive
Company Secretary: GC Cross
Transfer secretaries: Computershare Investor Services Proprietary Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown
Tel (011) 370-5000
Sponsor: Questco Proprietary Limited
Auditor: PricewaterhouseCoopers Inc.
Registered address: Ground Floor, Building 14, Woodlands Office Park, Woodmead, 2080
PO Box 76, Woodmead, 2080
Tel (011) 656-1303
www.sentula.co.za
Date: 27/06/2016 07:30:00 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.