Unaudited condensed results for the six months ended 27 June 2017 DELTA EMD LIMTED Registration number: 1919/006020/06 Income tax number: 9375057719 Share code: DTA ISIN: ZAE000132817 ("DELTA EMD" or "the Group") UNAUDITED CONDENSED RESULTS FOR THE SIX MONTHS ENDED 27 JUNE 2017 SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited six months six months Audited year to to June to June December 2017 2016 2016 Note R'000 R'000 R'000 Interest received 3 182 4 638 9 374 Administrative expenses (1 147) (1 202) (1 920) (Expenses)/Income related to shut down of business (4 517) (7 151) 3 784 Other income 878 486 1 370 (Loss)/Profit for the period before taxation (1 604) (3 229) 12 608 Taxation (587) - 1 341 Total comprehensive (loss)/profit for the period (2 191) (3 229) 13 949 Attributable to equity holders of parent company (Loss)/Profit for the period (2 191) (3 229) 13 949 Total comprehensive (loss)/profit for the period (2 191) (3 229) 13 949 Headline (loss)/profit attributable to ordinary shareholders 1 (2 191) (3 229) 13 949 Number of shares in issue ('000) 49 166 49 166 49 166 Weighted number of shares in issue ('000) 49 166 49 166 49 166 Attributable (loss)/earnings per share (cents) - basic and diluted (4.5) (6.6) 28.4 Dividend per share (cents) - 100.0 100.0 SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited six months six months Audited year to to June to June December 2017 2016 2016 R'000 R'000 R'000 ASSETS Current assets Trade and other receivables 945 789 928 Bank balances and cash 80 997 111 888 103 830 Taxation receivable 141 101 141 Non-current assets held for sale 25 949 25 949 25 949 Total assets 108 032 138 727 130 848 EQUITY AND LIABILITIES Total shareholders' funds 89 825 74 789 92 016 Current liabilities Trade and other payables 2 808 27 971 22 797 Short-term provisions 15 399 34 413 16 035 Taxation payable - 1 554 - Total equity and liabilities 108 032 138 727 130 848 Net asset value per share (cents) 183 152 187 SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Unaudited six months six months Audited year to to June to June December 2017 2016 2016 R'000 R'000 R'000 Cash (utilised by)/generated from operations (4 785) (7 867) 3 235 Movement in current and non-current provision (637) (22 398) (40 778) (Increase)/Decrease in working capital (20 006) 1 126 (4 139) Cash utilised by operations (25 428) (29 139) (41 682) Net interest received 3 182 4 638 9 374 Taxation paid (587) - (252) Cash outflow from operating activities (22 833) (24 501) (32 559) Net cash outflow before financing activities (22 833) (24 501) (32 559) Dividend paid - ordinary - (49 164) (49 163) Net decrease in cash and cash equivalents (22 833) (73 665) (81 723) Cash and cash equivalents at beginning of period 103 830 185 553 185 553 Cash and cash equivalents at end of period 80 997 111 888 103 830 SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital Accumulated and premium profit Total R'000 R'000 R'000 Balance at 27 December 2015 4 856 122 326 127 182 (Loss) for the period - (3 229) (3 229) Dividend paid - (49 164) (49 164) Balance at 27 June 2016 4 856 69 933 74 789 Profit for the period - 17 179 17 179 Prior year unclaimed dividend reversed - 48 48 Balance at 27 December 2016 4 856 87 160 92 016 (Loss) for the period - (2 191) (2 191) Balance at 27 June 2017 4 856 84 969 89 825 NOTES Unaudited Unaudited six months six months Audited year to to June to June December 2017 2016 2016 R'000 R'000 R'000 1. Reconciliation between attributable earnings and headline earnings Attributable (loss)/profit after taxation (2 191) (3 229) 13 949 Headline (loss)/earnings attributable to ordinary shareholders (2 191) (3 229) 13 949 Attributable headline earnings/(loss) per share - basic and diluted (4.5) (6.6) 28.4 2. Basis of presentation The Group is domiciled in South Africa. The unaudited summarised consolidated financial results at and for the period ended 27 June 2017 comprise the Company and its subsidiaries (the "Group"). The Group's principal accounting policies have been applied consistently over the current and prior financial periods. On 5 March 2014 the Company announced that the board of directors had taken the decision, subject to approval by the Company's shareholders, to discontinue the operations in a phased and orderly manner during 2014 and to realise value for the Company's assets during 2014 and 2015. The decision was approved at the Annual General Meeting of the Company held on 9 May 2014. The Company will be wound down and deregisted in due course. The above information highlights that the going concern principle is not applicable in the preparation of the Company's financial statements. When the Company ceases trading the directors are of the opinion that the Company will be in a position to discharge all of its liabilities, due to the Company's cash resources and to recover the assets at their carrying amounts. The effect, if any, of preparing the financial statements, other than on the going concern basis will be negligible. Consequently, the financial statements have been prepared on a basis consistent with IFRS which among other things, requires writing assets down to their recoverable amounts. It also requires recognising a liability for contractual commitments that may have become onerous as a consequence of the decision to cease trading. The Group's condensed summarised financial results have been prepared in accordance with the requirements of the JSE Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to condensed financial statements. The Listings Requirements require interim reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council as well as, the information required by IAS 34: Interim Financial Reporting. COMMENTARY The Group realised a loss for the period of R2.2 million compared to a loss of R3.2 million for the same period last year. The main contributor to the reduction in the loss was reduced expenses for the shutdown of the business, R4.5 million compared to R7.2 million for the same period last year. Those expenses included R900 000 for management salaries, R700 000 for general works, R1.4 million for administrative expenses, and R1.1 million for continuing the Nelspruit plant site's committed electrical supply. Total interest earned during the period on cash investments was R3.2 million (2016: R4.6 million). Net cash utilised by operations during the period totalled R4.8 million (2016: R7.9 million). Working capital increased during the period by R20.0 million as a result of the payment during the period of the short-term payable associated with the purchase last year of a parcel of land within the Nelspruit plant site from Manganese Metal Company (2016: decrease of R1.1 million). The Group's period end cash balances decreased by R22.8 million from R103.8 million to R81.0 million, reflecting net cash utilised to pay for the land purchased from Manganese Metal Company. The directors are not aware of any material event which occurred after 27 June 2017 and up to the date of this report. PROSPECTS The only remaining non-current asset held by the Group is the plant site in Nelspruit. No bids for the site were made at the auction held on 29 June 2017. Efforts to market and sell the Nelspruit site continue. Following the sale of the Nelspruit plant site, the Group intends to delist and deregister the Company and to pay a final dividend. Any forward statement has not been reviewed or reported on by the companies auditors for the period under review. DIRECTORATE No change. PREPARER OF FINANCIAL STATEMENTS These summarised consolidated financial statements have been prepared by EJ Nel CA(SA) in her capacity as Financial Director of the Group. TG Atkinson (Executive Chairman) EJ Nel (Financial director) 8 September 2017 DELTA EMD LIMTED Registration number 1919/006020/06 Income tax number 9375057719 Share code: DTA ISIN: ZAE000132817 ("DELTA EMD" or "the Group") Registered office 15 Heyneke Street, Industrial Site, Nelspruit, 1200 Transferred Secretaries Computershare Investor Services Proprietary Limited Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Directors Independent non-executive: AC Hicks, BR Wright, L Matteucci Non-executive: P Baijnath Executive Chairman: TG Atkinson*(Chairman) *USA Executive: EJ Nel CA(SA) (Financial Director) Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited Date: 08/09/2017 12:09:00 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.