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Abridged Annual Financial Results 2017
MASTER DRILLING GROUP LIMITED
Registration number: 2011/008265/06
Incorporated in the Republic of South Africa
JSE share code: MDI
ISIN: ZAE000171948
ABRIDGED ANNUAL FINANCIAL RESULTS 2017
SALIENT FEATURES FOR THE PERIOD
- USD Revenue was up by 2.8%
- USD Earnings per share decreased by 19.6% to 11.5 cents
- ZAR Earnings per share decreased by 27,1% to 153,1 cents
- USD Headline earnings per share decreased by 18.9% to 11.6 cents
- ZAR Headline earnings per share decreased by 26,5% to 154,4 cents
- Stable order book of USD 124.7 million
- Solid pipeline of USD 228.1 million
- Focus on working capital management bearing fruit
- Added geographies - India and Australia
COMMENTARY
ABOUT MASTER DRILLING
Master Drilling was established in 1986 and listed on the Johannesburg Stock Exchange in 2012. The company delivers
innovative drilling technologies worldwide and has built trusted partner relationships with blue-chip major and mid-tier
companies in the mining, civil engineering and construction sectors across various commodities for over 30 years. The
Master Drilling business model of providing drilling solutions to clients through tailor-made designs, coupled with a
flexible support and logistics chain, makes it the preferred drilling partner throughout the lifecycle of projects from
exploration to production and capital stages.
Commenting on the 2017 results, Danie Pretorius, CEO of Master Drilling, said:
"Despite 2017 having been a challenging year with various political changes across the world and a tough
local macroeconomic environment, we delivered stable operational results in 2017 with the continued
focus on working capital bearing fruit in the form of satisfactory cash generation.
"The uptick in the global economy and commodity cycle is expected to have a positive impact on our
business going forward. Our pipeline is strong and we are excited about our entry into India and Australia,
further diversifying our geographical exposure. The recent acquisition of Bergteamet Raiseboring Europe
provides a launchpad for further expansion in Europe. There are many synergies between the two
companies and this business complements our focus on providing innovative tailored technology solutions
to our clients.
"New management strategies and actions implemented in some challenging regions have turned most of
our underperforming businesses around. As a result, we expect an improvement in most global regions
where we do business during the next reporting period.
"We are particularly proud of the launch of our Mobile Tunnel Borer in February 2018. This disruptive
technology allows continuous mining and requires no blasting, significantly enhancing mining efficiencies.
Because it is as advantageous at the capital stage of mining projects, with quicker deployment and access
to the ore body, as it is at the production stage through substantial productivity increase when opening
reserves or increasing a mine's underground primary and secondary infrastructure, we believe this will
open the doors to more opportunities in future"
"Master Drilling is pleased that satisfactory cash generation has enabled us to declare an annual dividend
of ZAR26,0 cents per share
FINANCIAL OVERVIEW
Revenue increased 2.8% to USD121.4 million and operating profit decreased marginally to USD24.8 million.
This was a positive result given that one of the Group's machine categories, the XX-large machines category,
were utilized only 40%. Cost of sales increased in line with the increase in revenue bringing about a flat
gross profit percentage in USD terms.
Further investment in human resources to support future growth, lower utilisation rates due to adverse demand,
increased finance charges on additional borrowings for further expansion and the exchange rate effect of emerging
currencies had a negative impact on the profit after tax.
USD earnings per share (EPS) decreased 19.6% to 11.5 cents, and ZAR EPS decreased 27,1% to 153,1 cents. USD
headline earnings per share (HEPS) decreased 18.9% to 11.6 cents, and ZAR HEPS decreased 26,5% to 154,4 cents.
Net cash generation saw an increase to USD32.8 million, and although still not achieving management's target, is
moving in the right direction. Working capital remained fairly flat year-on-year, with minimal movement especially in
inventory and receivables. Cash resources continue to be managed stringently as market conditions improve to cater for
emerging opportunities that require specific design, planning and investment. This resulted in a healthy cash resource
balance that positions the company well for future growth.
Master Drilling's capital spend was 81.0% on expansion and 19.0% on sustaining the existing fleet.
Debt increased from USD 31.0 million to USD 44.0 million and the gearing ratio, including cash, improved from 6.4% to 2.4%
in the current year. This is due to an additional draw down of USD20 million from ABSA during the year
OPERATIONAL OVERVIEW
Despite entering 2017 amid challenging commodities markets and softer economic growth domestically paired with
escalating cost pressures in the mining sector, continuous technological innovation positioned Master Drilling well to
expand our service and product offering strategically into other industries as well as additional geographies.
South America
We are seeing some green shoots at our South American operations. Although Peru experienced a slow start to the
year, results are reported at breakeven point. In the last quarter of 2017, we confirmed targeted utilisation of our fleet,
positively impacting the outlook of our operations for 2018.
Brazil reported good results for the first time in several years mainly because of the implementation of a successful
turnaround strategy, coupled with a renewed contract with Anglo Gold Ashanti.
The competitive landscape in Chile changed with more international contractors testing the market adding pressure
to margins forcing competitors to exit the market. This emphasises the importance of in-depth market knowledge
whilst having experienced, on-the-ground teams. Having serviced the market for more than 20 years, our competitive
advantage served us well. Despite the short-term negative impact, we expect a turnaround during the next financial year.
During 2017, Master Drilling was awarded a hydroelectric energy project to the value of USD1.9 million in
Colombia. The project was completed at the end of January 2018 in line with the agreed contract terms.
Central and North America
Our business in Mexico experienced one of its best years to date. This was as a result of our marketing efforts on the
back of improved silver prices. More equipment is being shipped for future projects.
Our project in USA, involving our new machine with dual capability of blind shaft boring and raise bore drilling
shipped to the USA during 2017, is ongoing with completion anticipated during the first half of 2018. A new Business
Development Manager has also been appointed and will focus on expanding our business in the region.
Africa
Statistics show a major decline in mining's contribution to South Africa's GDP growth in recent years. A large
contributor to this remains uncertainty regarding the proposed mining charter and challenging mining conditions
associated with deep South African mines. With the election of Cyril Ramaphosa as president and the appointment of
Gwede Mantashe as the new Minister of Mineral Resources, we remain cautiously optimistic regarding the local mining
sector. We are encouraged by the continuous support from our loyal client base.
The exploration business in South Africa yielded positive results in 2017 with our biggest contract being extended for
another year, resulting in a positive outlook for the next financial year.
The initial capital extension project in the DRC is slowly coming to an end. This is being replaced with a smaller contract
due to commence in the latter part of 2018. The contract will comprise raise boring at a copper mine utilising the same
equipment, albeit with a smaller scope.
Mali and Zambia are performing as expected with no major changes anticipated.
In South Africa, Master Drilling will continue to support its loyal clients although growth will remain subdued.
We remain committed to expansion into appropriate African countries.
Scandinavia
Given the current macroeconomic environment, Sweden was disappointing and reported results at breakeven. We
recently announced our decision to exercise our call option to acquire the remaining 60% of the shares in Bergteamet
Raiseboring Europe based in Scandinavia. This transaction provides a launchpad for the company to expand our
operations in the European markets and further diversify our geographic exposure.
India
In India, we began to support Vedanta Limited, a London Stock Exchange listed, globally diversified natural resources
major with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Energy and Oil & Gas. The company deployed
one large raise bore machine to one of Hindustan Zinc's mines in India at an initial contract value of approximately
US$6 million.
Australia
In Australia, a large raise bore machine has been contracted out to Byrnecut, an internationally renowned specialist
underground mining contractor, on a polymetalic project. The rental contract, the first such agreement which sees
Master Drilling supply the machine without manpower, will run for an initial period of one year
Technology
The continuous improvement in our technology and services remains the cornerstone in providing our clients with
the one-stop solution that they require to stay ahead in their respective markets. Master Drilling is well positioned to
respond to the growing mechanisation trend within the mining industry thanks to our technological skills and proven
services offering. We believe we offer a one stop solution to clients and our agile approach to trends developing in the
mining industry allows us to provide cutting edge technological solutions to current and potential clients.
Master Drilling strengthened its internally developed technology service offering during the year and met several
development milestones on our world-first technologies that we bring to market. The company's new disruptive
Mobile Tunnel Boring ("MTB") solution was unveiled at the Investing in African Mining Indaba 2018 in Cape Town
during February 2018. The manufacturing order has been placed and the machine should be ready for commissioning
during the third quarter of 2018. Master Drilling's internally conceptualised design and internationally patented MTB
technology were developed in response to the growing demand from clients, and the mining industry at large, for a
cost effective mechanised tunnelling contract service offering that addresses safety and efficiency challenges on new
and existing operations. The new solution may also make it possible for marginal projects to pass feasibility hurdles due
to cost and time savings.
Plant and equipment
Two raise bore machines were added, contributing 3.5% growth in revenue in 2017. The fleet now consists of 107 raise
bore and 34 slim drilling rigs. The rate of new rigs coming on stream will settle with a focus on larger units which
typically generate higher income. No new slim rigs are in the pipeline at this point.
Skills development
Retaining expertise and skills development is a key priority for Master Drilling. We continue to invest in skills
development across our businesses to ensure a highly skilled and motivated work force to support our growth strategy.
Targeted interventions for management and technical training in general will remain a core focus for the business
during 2018.
As a solution driven company delivering a fully mechanised range of services to clients, we will also continue to invest in
Research and Development as new services, of which the MTB is one, are adopted and mature.
Dividend
Since listing in 2012, the Company has achieved compound annual growth in profit after taxation of 7.5% In USD terms and
delivered on the key strategic objectives set out in its listing prospectus. This, coupled with significant ongoing cash generation,
enables the company to strike a balance between continued investment in capital projects to support the company's further growth and
enhancing returns to shareholders through the payment of appropriate dividends. Thus, the Board has declared a gross dividend
of ZAR26,0 cents per share on 19 March 2018 payable to all shareholders recorded in the company's share register on 18 May 2018.
The dividend is payable from distributable reserves and is subject to dividend withholding tax of 20% which results in a net dividend
of ZAR20,8 cents per share to shareholders subject to such dividend withholding tax. This dividend represents a six times earnings cover.
Even though the level of cover for the dividend decreased, the dividend is still somewhat more conservative than the earnings cover at which
our dividend policy is likely to settle over time.
The number of shares in issue at date of declaration amount to 150 592 777 and the company's tax reference number
is 9797/433/15/9.
In order to comply with the requirements of Strate, the following details are relevant:
Last date to trade cum dividend: Tuesday 15 May 2018
Trading ex dividend commences: Wednesday 16 May 2018
Record date: Friday 18 May 2018
Payment date: Monday 21 May 2018
Shares may not be dematerialised or re-materialised between Wednesday 16 May and Friday 18 May 2018, both
dates inclusive.
OUTLOOK AND PROSPECTS
Diversification across regions, commodities, currencies and industries remains a key part of our long-term strategy. We
are experiencing strong demand with increased enquiries across the various regions and commodities and expect this to
continue.
Engagement with the Industrial Development Corporation of South Africa Limited ("IDC") for the partial funding of the
blind shaft boring system development and roll-out in 2019 has been successfully concluded. Further opportunities to
develop home-grown technologies that support cheaper and simpler drilling systems are also being explored with the IDC.
Various opportunities in first world countries such as Australia, Canada and USA are coming to fruition. A Mexican
based client recently visited our USA project, indicating an interest in implementing a similar service of reverse
circulation in Mexico.
The upswing in the commodity cycle has had a positive impact on our order book with committed orders of
USD124.7 million and a healthy pipeline of USD228.1 million. Although not immediately reflected in our numbers, we
do expect a positive impact on our revenue during the next reporting period.
Our continued focus on working capital management has borne fruit. New geographies, clients and technologies
require large initial outlays and Master Drilling's robust support approach enables optimal operations and maintenance
support that is essential to building trust with clients.
Master Drilling's technology and experience put the company in a strong position to continue to support its clients'
drive to improve productivity and efficiencies whilst reducing operational risk.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2017 2016
Note(s) USD USD
Assets
Non-current assets
Property, plant and equipment 3 119 075 667 105 316 594
Goodwill 4 3 083 427 3 043 042
Financial assets 5 3 098 512 10 068 354
Deferred tax asset 2 010 263 1 733 825
Investment in associate 6 6 022 115 6 023 825
133 289 984 126 185 640
Current assets
Inventories 23 894 609 24 437 264
Related-party loans 102 641 70 486
Trade and other receivables 7 38 191 737 39 014 664
Cash and cash equivalents 40 211 629 21 690 039
102 400 616 85 212 453
Non-current assets held for sale 8 1 255 128 1 209 520
103 655 744 86 421 973
Total assets 236 945 728 212 607 613
Equity and liabilities
Equity
Share capital 148 703 721 146 607 965
Reserves (83 855 527) (91 010 256)
Retained income 88 221 320 74 427 478
153 069 514 130 025 187
Non-controlling interest 8 255 315 16 291 360
161 324 829 146 316 547
Liabilities
Non-current liabilities
Interest bearing borrowings 36 263 625 17 806 057
Finance lease obligations 1 682 765 1 950 891
Deferred tax liability 9 189 125 9 266 022
47 135 515 29 022 970
Current liabilities
Interest bearing borrowings 4 659 387 8 650 837
Finance lease obligations 1 444 820 2 579 699
Related party loans 195 483 160 622
Current tax payable 2 098 947 1 561 045
Trade and other payables 9 20 086 747 22 998 427
Cash and cash equivalents - 1 317 466
28 485 384 37 268 096
Total liabilities 75 620 899 66 291 066
Total equity and liabilities 236 945 728 212 607 613
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
2017 2016
Note(s) USD USD
Revenue 121 424 109 118 102 983
Cost of sales (76 794 271) (75 159 529)
Gross profit 44 629 838 42 943 454
Other operating income 3 674 987 4 645 115
Other operating expenses (23 378 396) (21 743 714)
Operating profit 24 926 429 25 844 855
Investment revenue 510 325 808 845
Finance costs (2 850 878) (1 940 479)
Share of profit from equity accounted investment ( 1 710) 556 085
Profit before taxation 22 584 166 25 269 306
Taxation 10 (5 134 100) (2 949 412)
Profit for the year 17 450 066 22 319 894
Other comprehensive income that will subsequently be
classifiable to profit and loss:
Exchange differences on translating foreign operations 7 403 109 6 618 019
Other comprehensive income/(loss) for the year net of taxation 7 403 109 6 618 019
Total comprehensive income 24 853 175 28 937 913
Profit attributable to: 17 450 066 22 319 894
Owners of the parent 17 202 923 21 195 750
Non-controlling interest 247 143 1 124 144
Total comprehensive income attributable to: 24 853 175 28 937 913
Owners of the parent 24 606 032 27 813 769
Non-controlling interest 247 143 1 124 144
Earnings per share (USD) 11
Basic earnings per share (cents) 11.5 14.3
Diluted earnings per share (USD) 11
Diluted basic earnings per share (cents) 11.4 14.0
Earnings per share (ZAR)
Basic earnings per share (cents) 153,1 210,0
Diluted earnings per share (ZAR)
Diluted basic earnings per share (cents) 151,7 205,6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity due Foreign
to change currency Share-based Attributable Non- Total
Share in control of translation payments Total Retained to owners of controlling Shareholders'
USD capital interests reserve reserve reserves income the parent interest equity
Balance as at 31 December 2015 146 607 965 (58 264 013) (39 992 078) 372 467 (97 883 624) 53 231 728 101 956 069 16 309 067 118 265 136
Share-based payments - - - 255 349 255 349 - 255 349 - 255 349
Dividends declared by subsidiaries - - - - - - - (1 141 851) (1 141 851)
Total comprehensive income for the year - - 6 618 019 - 6 618 019 21 195 750 27 813 769 1 124 144 28 937 913
Total changes - - 6 618 019 255 349 6 873 368 21 195 750 28 069 118 (17 707) 28 051 411
Balance as at 31 December 2016 146 607 965 (58 264 013) (33 374 059) 627 816 (91 010 256) 74 427 478 130 025 187 16 291 360 146 316 547
Share-based payments - - - 290 858 290 858 - 290 858 - 290 858
Issue of ordinary shares 2 095 756 - - (539 238) (539 238) - 1 556 518 - 1 556 518
Dividends declared by subsidiaries - - - - - - - (306 140) (306 140)
Dividends to shareholders - - - - - (3 409 081) (3 409 081) (3 409 081)
Derecognition of non-controlling interest - - - - - - - (7 977 048) (7 977 048)
Total comprehensive income for the year - - 7 403 109 - 7 403 109 17 202 923 24 606 032 247 143 24 853 175
Total changes 2 095 756 - 7 403 109 (248 380) 7 154 729 13 793 842 23 044 327 (8 036 045) 15 008 281
Balance as at 31 December 2017 148 703 721 (58 264 013) (25 970 950) 379 436 (83 855 527) 88 221 320 153 069 514 8 255 315 161 324 829
CONSOLIDATED STATEMENT OF CASH FLOWS
2017 2016
Note(s) USD USD
Cash flows from operating activities
Cash generated from operations 12.1 32 843 989 26 551 147
Interest income 510 325 808 845
Finance costs (2 850 878) (1 940 479)
Tax paid (5 497 412) (5 840 274)
Net cash from operating activities 25 006 024 19 579 239
Cash flows from investing activities
Purchase of property, plant and equipment (15 833 126) (16 364 467)
Sale of property, plant and equipment 170 560 1 060 693
Financial assets movement 398 460 303 556
Acquisition of subsidiary 12.2 - (3 894 451)
Net cash from investing activities (15 264 106) (18 894 669)
Cash flows from financing activities
Proceeds of financial liabilities 20 000 000 8 678 685
Repayment of financial liabilities (6 574 430) (9 736 013)
Proceeds from financial leases 554 741 1 524 268
Repayment of financial leases (2 382 326) (2 891 833)
Related party loan movement 2 706 84 574
Issue of share capital 1 556 518 -
Dividends paid to shareholders (3 409 081) -
Dividends paid to BEE partners (306 140) (1 141 851)
Net cash from financing activities 9 441 988 (3 482 170)
Total cash movement for the period 19 183 906 (2 797 600)
Cash at the beginning of the period 20 372 573 22 496 770
Effect of exchange rate movement on cash balances 655 150 673 403
Total cash at end of the period 40 211 629 20 372 573
ABRIDGED AUDITED FINANCIAL RESULTS
NATURE OF BUSINESS
Master Drilling Group Limited is an investment holding company, whose subsidiary companies provide specialised
drilling services to blue chip major and mid-tier companies in the mining, civil engineering, construction and
hydro-electric power sectors, across a number of commodities and geographies.
ACCOUNTING POLICIES
1. BASIS OF PRESENTATION
The abridged audited financial results have been prepared in accordance with IAS 34: Interim Financial Reporting,
International Financial Reporting Standards, the SAICA reporting guides as issued by the Accounting Standards
Board and the requirements of the South African Companies Act, (Act No 71 of 2008), as amended and the Listings
Requirements of the JSE Limited. The audited consolidated annual financial statements have been prepared on the
historical cost basis, except certain financial instruments at fair value, and incorporate the principal
accounting policies set out below. They are presented in United States Dollar ("USD").
The significant accounting policies are consistent in all material respects with those applied in the previous
year, except for the adoption of new standards and amendments which became effective in the current year.
The audited consolidated financial statements for Master Drilling Group Limited for the period ended 31 December 2017
have been audited by Grant Thornton, who expressed an unmodified audit opinion thereon. A copy of the auditor's report
on the audited consolidated financial statements are available on www.masterdrilling.com. These abridged audited consolidated
financial results were derived from the consolidated annual financial statements.
The consolidated annual financial statements for Master Drilling Group Limited (Registration
number 2011/008265/06), for the period ended 31 December 2017, have been audited by Grant
Thornton, the Company's independent external auditors, whose unqualified audit report can be
found on pages 6 to 9 of the consolidated annual financial statements 2017, which are available
on: www.masterdrilling.com.
The audited consolidated financial statements presented have been prepared by the corporate reporting staff of Master Drilling,
headed by Willem Ligthelm CA(SA), the Group's management accountant. This process was supervised by André Jean van Deventer CA(SA),
the Group's chief financial officer.
The auditor's report does not necessarily report on all of the information contained in this abridged audited
consolidated 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.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The Group annual financial statements incorporate all entities which are controlled by the Group.
At inception the Group annual financial statements had been accounted for under the pooling of interest
method as acquisition of entities under common control is excluded from IFRS 3. The entities had been
accounted for at historical carrying values for the period presented.
Adjustments are made when necessary to the financial statements of subsidiaries to bring their accounting
policies in line with those of the Group.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised
gains and losses on transactions between Group companies. Where unrealised losses on intra-group
asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group
perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary
to ensure consistency with the accounting policies adopted by the Group.
Control is considered to exist if all of the factors below are satisfied.
(a) The investor has power over the investee, i.e. the investor has existing rights that give it the ability to direct
the relevant activities;
(b) The investor has exposure, or rights to variable returns from its involvement with the investee; and
(c) The investor has the ability to use its power over the investee to affect the amount of the investors returns.
The Group assesses its control of an investee at the time of its initial investment and again if changes in facts
and circumstances affect one or more of the control factors listed above. In assessing whether the Group has
control over an investee, consideration is given to many factors including shareholding, voting rights and their
impact on the Group's ability to direct the management, operations and returns of the investee; contractual
obligations; minority shareholder rights and whether these are protective or substantive in nature; and the
financial position of the investee.
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently at cost less any accumulated
depreciation and accumulated impairment losses.
Patents are acquired by the Group and have an infinite useful live. Patents are carried at cost less accumulated
impairment losses. Amortisation methods, useful lives and residual values are reviewed at each reporting date
and adjusted if appropriate.
Costs include costs incurred initially to acquire or construct an item of property, plant and equipment. Cost
associated with equipment upgrades that result in increased capabilities or performance enhancements of
property and equipment are capitalised. If a replacement part is recognised in the carrying amount of an item
of property, plant and equipment, the carrying amount of the replaced part is derecognised.
An asset under construction will be reclassified to the relevant asset category as soon as it is available for use.
The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is
located is also included in the cost of property, plant and equipment, where the Group is obligated to incur
such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes
other than the production of inventories.
Investment in associate
The results, assets and liabilities are incorporated in these consolidated annual financial statements using the
equity method of accounting. An investment in associate is initially recognised in the consolidated statement
of financial position at cost and adjusted for thereafter to recognise the Group's share of the profit or loss in
associate and other comprehensive income of the associate.
When a Group entity transacts with an associate of the Group, profits and losses resulting from the
transactions with the associate are recognised in the Group's consolidated annual financial statements only to
the extent of interest in the associate that is not related to the Group.
Functional and presentation currency
Items included in the financial statements of each of the Group's entities are measured using the currency
of the primary environment in which the entity operates, i.e. "functional currency". The consolidated annual
financial statements are presented in USD (the "presentation currency"). Management believes that USD
is more useful to the users of the consolidated financial statements, as this currency most reliably reflects
the global business performance of the Group as a whole.
Going concern
Based on the information available to it, the Board of Directors believes that the Group remains
a going concern.
Issued capital
There was no movement in authorised ordinary shares while 2 327 286 ordinary shares were issued during
the financial year.
Operating segments
Changes were made to the operating segments from those disclosed at 31 December 2016. The changes
will enable the chief decision maker, under the direct supervision of the resident boards, to improve the
assessment of the performances and make better informed decisions on the allocation of resources to
the different operating segments. The comparative reporting periods were adjusted accordingly as the
information was available. See note 12 for more details.
Changes to the board
There were no changes to the Board since 31 December 2016.
Annual general meeting
The annual general meeting of Master Drilling Group Limited will be held at Grant Thornton, Wanderers
Office Park, 52 Corlett Drive, Johannesburg, on Thursday, 7 June 2018 at 09:00.
Subsequent Events
The Board approved a dividend on 19 March 2018 of ZAR26,0 cents per ordinary share payable to all
shareholders recorded in the register on 18 May 2018. The dividend declared is not reflected in the financial
statements for the year ended 31 December 2017.
After 31 December 2017 financial year, the Group excercised its option to acquire the remainder of the 60%
shares in Bergteamet Raiseboring Europe AB to increase its current shareholding to 100%. The purchase of
the remainder of the shares amounted to SEK69 825 000.
3. PROPERTY, PLANT AND EQUIPMENT
Accumulated
depreciation
and
2017 impairment Carrying
USD Cost losses value
Land and buildings 4 267 124 (124 152) 4 142 972
Plant and machinery 140 270 031 (39 146 361) 101 123 670
Assets under construction 392 338 (2 567) 389 771
Furniture and fittings 1 461 158 (382 136) 1 079 022
Motor vehicles 3 434 946 (1 699 685) 1 735 261
IT equipment 743 646 (444 396) 299 250
Finance lease: Plant and equipment 13 414 269 (4 560 949) 8 853 320
Computer software 2 591 229 (1 378 429) 1 212 800
Patents 239 601 - 239 601
Total 166 814 342 (47 738 575) 119 075 667
Accumulated
depreciation
and
2016 impairment Carrying
USD Cost losses value
Land and buildings 4 003 516 (80 517) 3 922 999
Plant and machinery 108 189 065 (31 481 087) 76 707 978
Assets under construction 2 398 153 (2 566) 2 395 587
Furniture and fittings 1 403 341 (339 278) 1 064 063
Motor vehicles 3 158 777 (1 354 858) 1 803 919
IT equipment 887 221 (376 563) 510 658
Finance lease: Plant and equipment 22 349 043 (4 909 530) 17 439 513
Computer software 2 187 833 (945 456) 1 242 377
Patents 229 500 - 229 500
Total 144 806 449 (39 489 855) 105 316 594
Borrowing cost
Included in the cost of land and buildings are capitalised borrowing cost related to the acquisition of land to
the amount of 2017: USD 64 625 (2016: USD 138 978) calculated at a capitalisation rate of 5,9%.
3.1 Reconciliation of property, plant and equipment
Exchange Assets
difference on acquired Reclassifications
consolidation through and transfers
2017 Opening of foreign business to/from Impairment of
USD balance Additions subsidiaries combination inventory Disposals Depreciation fixed assets Total
Land and buildings 3 922 999 71 550 186 510 - - - (38 087) - 4 142 972
Plant and machinery 76 707 978 13 364 454 4 194 304 - 11 384 687 (150 381) (4 191 694) (185 678) 101 123 670
Assets under construction 2 395 587 1 719 392 5 548 - (3 730 756) - - - 389 771
Furniture and fittings 1 064 063 41 214 7 049 - 3 316 (2 089) (34 531) - 1 079 022
Motor vehicles 1 803 919 358 472 25 915 - (14 971) (75 197) (362 877) - 1 735 261
IT equipment 510 658 101 639 11 017 - (175 477) (9 895) (138 692) - 299 250
Finance lease: Plant and equipment 17 439 513 147 415 977 162 - (8 692 643) - (1 018 127) - 8 853 320
Computer software 1 242 377 18 889 48 265 - 175 793 (180) (272 344) - 1 212 800
Patents 229 500 10 101 - - - - - - 239 601
105 316 594 15 833 126 5 455 770 - (1 050 051) (237 742) (6 056 352) (185 678) 119 075 667
Exchange
difference on Assets acquired
consolidation through
2016 Opening of foreign business Reclassifications Impairment of
USD balance Additions subsidiaries combination and transfers Disposals Depreciation fixed assets Total
Land and buildings 3 572 664 297 042 90 182 - - - (36 889) - 3 922 999
Plant and machinery 58 950 433 12 271 956 2 743 043 4 840 001 3 417 381 (711 201) (4 535 247) (268 388) 76 707 978
Assets under construction 5 505 621 695 298 9 148 - (3 814 480) - - - 2 395 587
Furniture and fittings 797 036 291 614 106 480 8 046 - (68 967) (70 146) - 1 064 063
Motor vehicles 1 683 547 509 263 (24 152) 72 350 152 798 (47 477) (542 410) - 1 803 919
IT equipment 249 540 187 740 10 805 2 694 172 983 (2 887) (110 217) - 510 658
Finance lease: Plant and equipment 17 481 071 1 524 268 856 607 42 925 (1 317 090) - (1 148 268) - 17 439 513
Computer software 1 063 054 587 286 76 512 - - - (484 475) - 1 242 377
Patents 229 500 - - - - - - - 229 500
89 532 466 16 364 467 3 868 625 4 966 016 (1 388 408) (830 532) (6 927 652) (268 388) 105 316 594
Security
Moveable assets to the value of ZAR 1,2 billion (USD 96.9 million at closing spot rate) of the South
African subsidiaries have been bonded to ABSA Capital as security for an interest bearing loan.
3.2 Change in Estimate
Drill rods were previously depreciated using an estimated useful life of 30 000 drilling meters, which
was done based on management's best estimate of the expectancy of the drill rod's useful life.
The Group conducted a drill rod evaluation review and it was established that some of the rods still
had reasonable useful life left when the 30 000 drilling meters were reached. Therefore the current
method doesn't reflect an reasonable useful life of the rods.
It was concluded that the useful life of the rods should rather be estimated using the actual
measurement of rods rather than the straight line method.
Impairment
During 2017, the Exploration department in our African segment recognised an impairment loss of
USD185 678. The main elements were a write-down of the idle slim drilling rigs to their value in
use. The calculation of value in use is most sensitive to mining commodity cycles. The future cash
flows of the particular drill rigs were negatively affected by the current declining commodity prices
of our customers, which mainly comprise of mining operations. As a result our customers reduced
and deferred exploration slim drilling activities.
4. INTANGIBLE ASSETS
2017 2016
USD USD
Goodwill recognised from value chain business combinations 2 612 584 2 612 584
Goodwill recognised from raisebore business combinations 470 843 430 458
Goodwill recognised from business combinations 3 083 427 3 043 042
Drilling
Master Drilling Raisebore Technical
Exploration Rental (Pty) Ltd Services (Pty)
5. SUBSIDIARY (Pty) Ltd (*) Ltd Total
BEE Partner Epha Mosima Mosima
Drilling (Pty) Drilling (Pty) Drilling (Pty)
Ltd Ltd Ltd
2017
USD
Opening balance 2 617 462 7 368 303 82 589 10 068 354
Exchange rate differences
on translation 286 905 742 385 9 053 1 038 343
Preference dividends
receivable capitalised 209 324 - 401 209 725
Buy-back of financial assets - (7 977 048) - (7 977 048)
Preference dividend received (107 222) (133 640) - (240 862)
Closing balance 3 006 469 - 92 043 3 098 512
(*) Previously known as Master Drilling South Africa (Pty) Ltd
2016
USD
Opening balance 2 576 714 6 514 829 67 741 9 159 284
Exchange rate differences
on translation 337 896 865 848 8 883 1 212 627
Preference dividends
receivable capitalised 212 257 525 130 5 965 743 352
Preference dividends received (509 405) (537 504) - (1 046 909)
Closing balance 2 617 462 7 368 303 82 589 10 068 354
Variable rate cumulative redeemable preference shares. The variable rate is 72% of the prevailing South
African prime overdraft rate as published by First National Bank.
Preference shares are redeemable the earlier of 10 years from date of issue or at the election of the holder
when the BEE company ceases to be wholly-owned by black persons.
The carrying amounts of the investments are considered a reasonable approximation for the fair value.
During 2017, the transaction between Raisebore Rental (Pty) Ltd (previously known as Master Drilling South
Africa (Pty) Ltd) and Mosima Drilling (Pty) Ltd) was dissolved as the business requirements of Raisebore Rental
(Pty) Ltd changed. This will result in Mosima (Pty) Ltd not receiving the economic benefits the transaction it
was initially expected to achieve. The transaction was dissolved at fair value and all adjustments related to this
transaction have been accounted for in the Group's financial statements.
6. INVESTMENT IN ASSOCIATE
On 1 December 2015, the Group purchased a 40% equity interest in Bergteamet Raiseboring Europe AB
("Bergteamet") for SEK 46 555 000 (USD 5 333 165). Bergteamet's operations located within Sweden,
Norway, Finland and Ireland are very similar to that of the Group and will provide the Group with a strategic
footprint into the European market.
The Group does not have control of Bergteamet via the call option it has for the remainder of the shares
in Bergteamet. The call option does not give rise to the substantive control of Bergteamet until such time
as the Group exercises the call option which expires 31 March 2019 or the put option which expired
on 31 May 2017. The put option gives the option to put the current 40% owned by the Group back to the
sellers at the original purchase price thus effectively cancelling the transaction. Management considered the
valuation of the call and put option. At year end the mark to market valuation did not present a material
impact on the initial value of the call option.
The financial year end of Bergteamet is 31 August. This was the reporting date established when that
company was incorporated, and a change of reporting date is not permitted. For the purpose of applying
the equity method of accounting, the financial information of Bergteamet have been used. Appropriate
adjustments were made for fair value adjustments at acquisition, 1 December 2015, differences in accounting
policies and effects of significant transactions up to 31 December 2017.
The table below summarises and also reconciles the statement of comprehensive income's financial
information as at 31 December.
2017 2016
USD USD
Revenue 9 873 828 16 011 794
Profit from continuing operations (4 275) 1 390 213
Total comprehensive income (4 275) 1 390 213
Group's share of total comprehensive income (1 710) 556 085
Dividends received from associate 104 207 -
The table summarises and also reconciles the statement of financial position's financial information as
at 31 December to the carrying amount of the Group's interest in Bergteamet.
2017 2016
USD USD
Non-current assets 9 962 208 8 765 242
Current assets 6 456 978 7 986 687
Non-current liabilities 4 581 086 (5 134 029)
Current liabilities 3 614 112 (3 246 175)
Net assets 8 223 988 8 371 725
Group's share of net assets 3 289 595 3 348 690
Goodwill 2 734 230 2 119 050
Share of profit from equity accounted investment (1 710) 556 085
Investment in Bergteamet 6 022 115 6 023 825
7. TRADE AND OTHER RECEIVABLES
2017 2016
USD USD
Trade receivables - Normal 27 333 869 26 789 516
Trade receivables - Retention 5 021 356 3 098 167
Loans to employees 40 636 81 097
Pre-payments 1 054 572 1 372 357
Deposits 82 219 46 890
Indirect taxes 1 691 851 1 426 352
Sundry 2 967 234 6 200 285
38 191 737 39 014 664
Trade and other receivables past due but not impaired
The ageing of amounts past due but not impaired is as follows:
Outstanding on normal cycle terms 18 330 132 10 981 269
1 month past due 6 029 069 6 702 871
2 months past due 3 084 459 5 591 572
3 months and over past due 5 413 060 6 748 090
Allowance for doubtful debts (501 495) (136 119)
Normal and retention trade receivables 32 355 225 29 887 683
Trade receivables of South African subsidiaries have been ceded to ABSA Capital as security for interest
bearing loan.
The movement in allowance for doubtful debts is presented below
Balance 1 January 136 119 636 799
Exchange differences on translation of foreign operations 6 698 58 431
Amounts written off - -
Allowance for doubtful debts (reversed)/provided for 358 678 (559 111)
501 495 136 119
The carrying amount in USD of trade and other receivables are denominated in the
following currencies:
2017 2016
USD USD
United States Dollar (USD) 18 223 187 17 591 574
South African Rands (ZAR) 6 162 910 7 119 116
Brazilian Reals (BRL) 2 943 824 4 455 101
Mexican Peso (MXN) 594 427 373 151
Chilean Peso (CLP) 7 558 388 7 360 884
Peruvian Nuevo Sol (PEN) 630 645 1 289 943
CFA Franc BCEAO (XOF) 712 913 -
Chinese Yuan Renminbi (CNY) 339 833 440 543
Guatemalan Quetzal (GTQ) 3 175 -
Zambian Kwacha (ZMW) 351 527 -
Colombian Peso (COP) 594 787 217 247
Indian Rupee (INR) 43 673 -
Austalian Dollar (AUD) 32 448 -
Euro (EUR) - 167 105
38 191 737 39 014 664
8. NON-CURRENT ASSETS HELD FOR SALE
In September 2016, management committed to a plan to sell the land and building owned in Peru. Master
Drilling Peru uses the land and building to house its administrative and workshop facilities. Management's
plan is to develop another piece of land owned in Peru into offices and workshop facilities.
In the previous financial year's annual financial statements, it was indicated that management expected to
finalise the sales transaction during May 2017. Since the release of the previous year's financial statements,
the interested buyer at the time decided against finalising the transaction as a better opportunity presented
itself that satisfied their requirements. Management still has the intention to sell and is actively marketing
the land and buildings. Negotiations to sell the land and buildings are at an advanced stage with a new interested buyer.
The sale is expected to be finalised towards the end of the second quarter in 2018.
The movement in the amount disclosed as non-current asset held for sale relates to foreign exchange
differences as the property's value is denominated in PEN.
No impairment losses were recognised in profit and loss as the fair value less costs to sell exceeds the carrying
amount.
As at 31 December, the assets held for sale were comprised of the following:
2017 2016
USD USD
Land and buildings 1 255 128 1 209 520
Assets held for sale 1 255 128 1 209 520
9. TRADE AND OTHER PAYABLES
2017 2016
USD USD
Trade payables 7 956 216 9 931 942
Income received in advance - 391 683
Indirect taxes 6 654 506 5 914 578
Leave pay accruals 2 070 242 1 821 971
Other accruals 3 405 783 4 938 253
20 086 747 22 998 427
10. TAXATION
2017 2016
USD USD
Current
Normal taxation 6 040 830 2 293 305
Current taxation 5 231 760 3 936 680
Prior year tax over provided 809 070 (1 643 375)
Deferred taxation: Temporary differences (906 730) 656 107
5 134 100 2 949 412
Reconciliation of the tax expense
Accounting profit 22 584 166 25 269 306
Tax at the applicable tax rate 5 502 316 4 592 417
Prior year tax over provided 809 070 (1 643 375)
Exempt income (4 371 627) (2 336 512)
Non-deductible expenses 2 724 372 571 321
Deferred taxation: Change in tax rate 78 771 187 408
Assessed loss not recognised 741 163 1 729 360
Assessed loss from prior year (349 965) (151 207)
Taxation per statement of comprehensive income 5 134 100 2 949 412
The total unrecognised assessed loss at 31 December 2017 is
USD2 544 768 (2016: USD 4 029 099).
Normal taxation charge/(refund) per entity within the Group
DCP Properties SAC 15 129 -
Master Drilling Exploration (Pty) Ltd 409 833 609 730
Master Drilling Chile SA 275 577 318 739
Master Drilling Peru SAC 1 394 792 -
Master Drilling do Brasil Ltda 479 007 -
Master Drilling Mexico SA - -
Master Drilling Malta Limited 1 554 235 1 894 395
Master Drilling Guatemala SA - 195 253
Jiangsu Master Mining Engineering Technology Company Limited - 30 126
Master Drilling RDC SPRL 389 921 (677 929)
Master Drilling Colombia SAS 80 900 503 304
Master Drilling Zambia Limited 1 232 820 (256 579)
Master Drilling International Ltd 2 988 (655 736)
Master Drilling Changzhou Co Ltd - 213 921
Master Drilling Ecuador SA - 103 670
Master Drilling USA LLC - 14 411
Drilling Technical Services SAC 2 567 -
Martwick Ltd 18 -
Master Drilling Mali SARL 163 884 -
MD Drilling Services Tanzania SARL 39 159 -
6 040 830 2 293 305
Conservative provisions for taxation in some jurisdictions in previous years as well as raising of deferred tax
assets on historically loss making entities returning to profitability have led to a decrease in taxation expense
in the previous year. The impact on taxation as a result potential future dividends is impractical to calculate as
at 31 December.
The change in tax rate relates to Chile where the tax rate changed from 24,00% to 25,50%.
11. EARNINGS PER SHARE
2017 2016
USD USD
Reconciliation between earnings and headline earnings
Basic earnings for the year 17 450 066 22 319 894
Deduct:
Non-controlling interest (247 143) (1 124 144)
Attributable to owners of the parent 17 202 923 21 195 750
(Gain)\Loss on disposal of fixed assets 67 183 (230 161)
Impairment of plant and equipment 185 678 268 388
Tax effect on loss on disposal of fixed assets and impairments (70 801) (48 284)
Headline earnings for the year 17 384 983 21 185 693
Earnings per share (cents) 11.5 14.3
Diluted earnings per share (cents) 11.4 14.0
Headline earnings per share (cents) 11.6 14.3
Diluted headline earnings per share (cents) 11.5 14.0
Net asset value per share (cents) 107.6 98.7
Tangible net asset value per share (cents) 105.6 96.6
Dividends per share (cents) 30.0 -
Weighted average number of ordinary shares at the end of the
year for the purpose of basic earnings per share and headline
earnings per share 149 894 366 148 265 491
Effect of dilutive potential ordinary shares - employee share options 1 603 877 3 003 793
Weighted average number of ordinary shares at the end of the
year for the purpose of diluted basic earnings per share and
diluted headline earnings per share 151 498 243 151 269 284
12 CASH GENERATED FROM OPERATIONS
12.1 Cash generated from operations
2017 2016
USD USD
Profit before taxation 22 584 166 25 269 306
Adjustments for:
Depreciation and amortisation 6 056 352 6 927 652
Impairment 845 891 268 388
Share of profit from equity accounted investment 1 710 (556 085)
Translation effect of foreign operations 2 203 374 1 134 652
Share-based payment - equity settled 290 858 255 349
Share-based payment - liability - (706 681)
(Gain)/Loss on sale of assets 67 183 (230 161)
Interest received (510 325) (808 845)
Finance costs 2 850 878 1 940 479
Changes in working capital:
Inventories 542 655 (3 529 733)
Trade and other receivables 822 927 (7 479 267)
Trade and other payables (2 911 680) 4 066 093
32 843 989 26 551 147
12.2 Net cash flow on business combinations
In January 2016, the Group acquired 100% of the equity instruments of Bergteamet Latin America
SpA, a Chilean based business, thereby obtaining control. The acquisition was made to further
expand the Group's presence within Chile.
The acquisition of Bergteamet Latin America SpA was settled in cash amounting to USD4 000 000.
The purchase agreement included an amount of USD432 285 still payable. As part of the
acquisition, the Group acquired the liability of employee termination costs. The employees were
terminated as part of the previous shareholder requiring the re-assigning of these employees to
other operations within its Group. Upon settling the termination costs, the remainder of the
consideration payable will be settled.
The assets and liabilities of Bergteamet Latin America were considered to be stated at fair
value after a proper analysis was performed. This acquisition transaction resulted in goodwill of
USD430 548 which is primarily related to the expected future profitability.
2017 2016
USD USD
The fair value of assets and liabilities assumed at date of
acquisition was:
Assets
Property, plant and equipment - 4 966 016
Net Working capital - (964 189)
Trade and other receivables - 962 575
Cash and cash equivalents - 105 549
Inventory - 1 332 552
Trade and other payables - (3 364 865)
Total assets and liabilities acquired - 4 001 827
Group's share of total assets and liabilities acquired - 4 001 827
Goodwill at acquisition - 430 458
Total consideration - 4 432 285
Cash and cash equivalents on hand at acquisition - (105 549)
Consideration still payable - (432 285)
Net cash outflow on acquisition of subsidiaries - 3 894 451
Profit after tax since acquistion date included in the
consolidated results for the year - 1 769 112
Turnover since acquisition date included in the consolidated
results for the year - 3 750 069
Group profit after tax since acquistion date included in the
results for the year - 22 319 894
Group turnover since acquisition date included in the results
for the year - 118 102 983
13. CAPITAL COMMITMENTS
2017 2016
USD USD
Capital expenditure authorised by the directors and contracted for
within 12 months. Capital expenditure will be funded through cash
generated from operations. 4 579 527 4 276 175
14. SEGMENT REPORTING
14.1 Mining activity
The following table shows the distribution of the Group's combined sales by mining activity,
regardless of where the goods were produced:
2017 2016
USD USD
Sales revenue by stage of mining activity
Exploration 973 412 695 690
Capital 4 339 904 22 792 887
Production 116 110 793 94 614 406
121 424 109 118 102 983
Gross profit by stage of mining activity
Exploration 383 107 297 369
Capital 830 043 9 350 969
Production 43 416 688 33 295 116
44 629 838 42 943 454
The chief decision maker of the Group is the chief executive officer. The chief executive officer,
under the direct supervision of the resident board, manages the activities of the Group concomitant
to the inherent risks facing these activities. It is for this reason that the activities are separated
between exploration, capital and production stage drilling. The equipment and related liabilities of
the Group can be used at multiple stages and therefore cannot be presented per activity.
14.2 Geographical segments
Although the Group's major operating divisions are managed on a worldwide basis, they operate in
four principal geographical areas of the world.
2017 2016
USD USD
Sales revenue by geographical market
Africa 54 737 735 49 006 600
Central and North America 14 619 849 11 064 465
Other countries - -
South America 52 066 525 58 031 918
121 424 109 118 102 983
Gross profit by geographical market
Africa 24 880 016 21 467 899
Central and North America 4 547 869 2 011 437
Other countries - 2 131 646
South America 15 201 953 17 332 472
44 629 838 42 943 454
The gross profit percentages vary based on drilling ground conditions, competition in the markets
and the mix of in-country and foreign cost.
A customer in the African region, operating in the capital and production segments, accounts
for 14% (2016: African region 9%) of the Group's revenue.
2017 2016
USD USD
Depreciation by geographical market
Africa 2 813 563 3 594 065
Central and North America 465 299 374 197
Other countries 42 009 43 727
South America 2 735 481 2 915 663
6 056 352 6 927 652
2017 2016
USD USD
Investment revenue by geographical market
Africa 261 559 764 121
Central and North America 749 1 207
Other countries 168 101 3 169
South America 79 916 40 348
510 325 808 845
2017 2016
USD USD
Finance cost by geographical market
Africa 1 834 711 1 103 886
Central and North America 209 404 167 597
Other countries 204 635 233 814
South America 602 128 435 182
2 850 878 1 940 479
2017 2016
USD USD
Taxation by geographical market
Africa 1 334 731 762 444
Central and North America 312 205 (146 543)
Other countries 2 203 622 1 709 223
South America 1 283 542 624 288
5 134 100 2 949 412
2017 2016
USD USD
Total assets by geographical market
Africa 95 020 536 88 457 389
Central and North America 24 975 860 24 418 504
Other countries * 25 208 838 17 392 080
South America ** 91 740 494 82 339 638
Total assets as per statement of financial position 236 945 728 212 607 611
Total liabilities by geographical market
Africa 34 438 606 37 032 675
Central and North America 8 457 641 18 306 283
Other countries 6 535 299 1 082 223
South America 26 189 353 9 869 885
Total liabilities as per statement of financial position 75 620 899 66 291 066
* Assets in Other Countries includes the investment in associate.
** Assets in South America includes the non-current asset held for sale. See Note 8
15. BUSINESS COMBINATION
After 31 December 2017 financial year, the Group excercised its option to acquire the remainder of the 60%
shares in Bergteamet Raiseboring Europe AB to increase its current shareholding to 100%. The purchase of
the remainder of the shares amounted to SEK 69 825 000 (USD 8 532 621 - closing spot rate).
Due to the recent nature of the acquisition the initial accounting for the acquisition has not been finalised
as it is impractical in the limited time frame to do so. Management is still in the process of determining all
identifiable assets and liabilities, therefore, initial accounting for the business combination is incomplete and
will be finalised during the next financial period.
Refer to note 6 for more information on the Group's Investment in Associate as at 31 December 2017.
CORPORATE INFORMATION
MASTER DRILLING GROUP LIMITED
Registration number: 2011/008265/06
Incorporated in the Republic of South Africa
JSE share code: MDI
ISIN: ZAE000171948
REGISTERED AND CORPORATE OFFICE
4 Bosman Street
PO Box 902
Fochville, 2515
South Africa
DIRECTORS
Executive
Daniël (Danie) Coenraad Pretorius Chief executive officer and founder
André Jean van Deventer Financial director and chief financial officer
Barend Jacobus (Koos) Jordaan Technical director
Gareth (Gary) Robert Sheppard(#) Chief operating officer
Non-executive
Hendrik Roux van der Merwe Chairman and independent non-executive
Akhter Alli Deshmukh Independent non-executive
Jacques Pierre de Wet Independent non-executive
Johan Louis Botha Independent non-executive
Shane Trevor Ferguson Non-executive
Fred George Dixon Alternate director
(#) Resident in Peru
COMPANY SECRETARY
Andrew Colin Beaven
6 Dwars Street
Krugersdorp
1739
South Africa
PO Box 158, Krugersdorp, 1740
South Africa
JSE SPONSOR
Investec Bank Limited
(Registration number: 1969/004763/06)
100 Grayston Drive, Sandown
Sandton, 2196
South Africa
INDEPENDENT AUDITORS
Grant Thornton Johannesburg Partnership
South African member of Grant Thornton International Limited
52 Corlett Drive
Illovo
2196
South Africa
SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
(Registration number: 2004/003647/07)
Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
(PO Box 61051, Marshalltown, 2107)
South Africa
INVESTOR RELATIONS CONTACTS
Lizelle du Toit
Instinctif Partners
Telephone: +27 11 050 7506
Mobile: +27 82 465 1244
E-mail: MasterDrilling@instinctif.com
GENERAL E-MAIL QUERIES
info@masterdrilling.com
MASTER DRILLING WEBSITE
www.masterdrilling.com
COMPANY SECRETARIAL E-MAIL
Companysecretary@masterdrilling.com
Master Drilling posts information that is important to investors on the main page of its website at
www.masterdrilling.com and under the "investors" tab on the main page. The information is updated regularly and
investors should visit the website to obtain important information about Master Drilling.
www.masterdrilling.com
20 March 2018
Date: 20/03/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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