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INVESTMENT IN JOINT-VENTURE ENTITY |
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The group’s principal investment is a 50% (2015: 50%) interest in Assmang Proprietary Limited (Assmang), a South African company which it jointly controls with African Rainbow Minerals (ARM) which is also listed on the JSE. Assmang mines iron, manganese and chrome ores and produces manganese and chrome alloys. In accordance with IFRS, the results of Assmang are accounted for by Assore using the equity method. The financial information set out below has been extracted from the audited financial statements of Assmang and its subsidiary companies for the year ended 30 June 2016. |
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2016 |
2015* |
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R’000 |
R’000 |
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Consolidated income statement of Assmang (accounting for Dwarsrivier as a discontinued operation) |
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Turnover |
18 927 093 |
19 512 919 |
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Cost of sales |
(14 374 497) |
(14 369 081) |
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Gross profit |
4 552 596 |
5 143 838 |
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Other operating income |
796 369 |
656 844 |
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Other operating expenses |
(2 185 862) |
(2 754 964) |
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Profit from operations |
3 163 103 |
3 045 718 |
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(Loss)/income from joint-venture entity |
(17 741) |
101 684 |
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Income from investments |
416 251 |
434 164 |
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Finance costs |
(59 258) |
(55 157) |
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Profit before taxation |
3 502 355 |
3 526 409 |
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Taxation |
(950 181) |
(988 902) |
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Profit for the year from continuing operations, net of taxation |
2 552 174 |
2 537 507 |
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Discontinued operations |
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Profit after taxation for the year from discontinued operation (refer note 36) |
103 183 |
121 716 |
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Other comprehensive income |
206 442 |
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Total comprehensive income for the year, net of taxation (group interest therein 50% (2015: 50%)) (refer
"Equity accounting results for Assmang"? below) |
2 861 799 |
2 659 223 |
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Dividends declared during the year |
1 750 000 |
3 000 000 |
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Abridged consolidated statement of financial position of Assmang |
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Total assets |
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Non-current assets |
24 918 898 |
23 728 211 |
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Current assets |
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Inventories |
3 712 093 |
4 448 860 |
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Trade and other receivables |
3 557 556 |
3 532 558 |
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Financial assets |
71 450 |
85 017 |
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Cash resources |
4 798 476 |
4 942 638 |
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Assets held-for-sale |
1 843 269 |
1 585 709 |
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38 901 742 |
38 322 993 |
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Total liabilities |
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Non-current liabilities |
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Deferred taxation liability |
5 097 914 |
5 035 202 |
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Long-term provisions |
802 695 |
959 828 |
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Trade and other payables |
96 381 |
92 344 |
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Current liabilities |
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Trade and other payables |
1 320 541 |
1 857 782 |
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Short-term provisions |
698 627 |
608 367 |
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Taxation |
213 125 |
369 778 |
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Liabilities directly associated with the assets held-for-sale |
630 964 |
469 996 |
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8 860 247 |
9 393 297 |
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Net assets |
30 041 495 |
28 929 696 |
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Proportion of the group’s ownership |
50% |
50% |
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Carrying amount of investment |
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Opening balance |
14 585 308 |
14 768 170 |
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Share of profit after taxation |
1 281 000 |
1 317 138 |
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Share of other comprehensive income, net of taxation |
103 221 |
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Less: Dividends received |
(875 000) |
(1 500 000) |
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Carrying amount of investment in statement of financial position |
15 094 529 |
14 585 308 |
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2016 |
2015 |
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R’000 |
R’000 |
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Carrying amount of investment (continued) |
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Capital expenditure |
2 974 678 |
3 836 808 |
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Capital commitments |
3 521 805 |
5 035 856 |
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– contracted for |
1 123 409 |
2 286 424 |
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– not contracted for |
2 398 396 |
2 749 432 |
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Equity accounting results of Assmang |
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Total comprehensive income for the year, net of taxation |
2 861 799 |
2 659 223 |
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Less: Other comprehensive income from continuing and discontinued operations |
(206 442) |
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2 655 357 |
2 659 223 |
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Less: Depreciation not recorded in Assmang as assets held-for-sale (Dwarsrivier), effective 25 June 2015, required for group |
(68 410) |
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Assmang profit after taxation accounting for Dwarsrivier as a continuing operation |
2 586 947 |
2 659 223 |
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50% thereon |
1 293 474 |
1 329 612 |
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Group consolidation adjustments |
(12 474) |
(12 474) |
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Share of profit from joint-venture entity after taxation per income statement |
1 281 000 |
1 317 138 |
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Impairment of assets |
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The carrying values of the following assets were fully impaired at year-end, as no future economic benefits were expected to arise from these operations: |
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– furnaces and associated assets at Cato Ridge Works |
333 110 |
302 956 |
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– mine properties and associated assets at Machadodorp Works |
72 308 |
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– one ferromanganese furnace at Machadodorp Works and associated assets |
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362 306 |
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– the off-grade plant at Khumani Iron Ore Mine |
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147 114 |
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405 418 |
812 376 |
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