Wrap Text
Results for the half-year ended 31 December 2018
ASSORE LIMITED
Registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000146932
(Assore or group or company)
RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018
- Headline earnings 20% higher
- Interim dividend of R10 per share
- Iron ore and manganese ore prices remain firm
- Continuous commitment to overall safety performance
CEO Charles Walters says:
"We are pleased to report a healthy increase in earnings for the first half of our financial
year. During the first 6 months, we experienced an improved price basket and a weaker exchange
rate which were countered by some difficulties with inland logistics on certain product lines.
Following the 60% increase in the interim dividend last year, we have maintained the interim
dividend at R10 per share whilst continuing to build the Group’s reserves to fund our future
growth ambitions."
Commentary
Safety
Assore operations
Dwarsrivier Chrome Mine Proprietary Limited (Dwarsrivier) achieved an improvement in its lost-time injury
frequency rate (LTIFR) to 0,18 for the six months to 31 December 2018 (the current period, or H1 FY19) from
0,23 for the six months to 31 December 2017 (the previous period, or H1 FY18). However, incidents at Assore’s
other operations, resulted in an overall increase in the LTIFR from 0,21 to 0,29 over the same period.
Assmang operations
The combined LTIFR of the Assmang Proprietary Limited (Assmang) operations, which is jointly controlled by
Assore and African Rainbow Minerals Limited (ARM), has deteriorated slightly to a level of 0,13 for the
current period, compared to 0,12 for the previous period.
The group remains committed to the pursuit of continued, sustainable improvement in our overall safety
performance.
Group financial performance
Headline earnings for H1 FY19 increased by 20% to R2,92 billion, compared to R2,43 billion for the
H1 FY18. Assmang, in which Assore has a 50% interest, recorded headline earnings of R4,29 billion
(H1 FY18: R3,47 billion), an increase of 23%, on a 100% basis. This contributed R2,14 billion towards the
group's headline earnings. In accordance with International Financial Reporting Standards (IFRS), Assmang is
classified as a joint venture and accordingly, its financial results are equity accounted. The rest of the
group's operations reported headline earnings that were 15% higher than the previous period, at R0,77 billion,
of which Dwarsrivier contributed R327 million (H1 FY18: R440 million), with commissions and interest earned
making up most of the balance. Attributable earnings amounted to R2,92 billion, 19% higher than H1 FY18.
The average SA rand/US dollar exchange rate for the current period was R14,06, 5% weaker than the level that
prevailed during H1 FY18. The index price for iron ore (62% iron content, fines grade, delivered in China
(the index price)) was stable, while the lump premium for the current period increased to US dollar 20,49
from US dollar 15,03 in H1 FY18. Manganese ore price indices were higher for both quoted grades (44% and
37% manganese content) compared to H1 FY18. Sales volumes of iron ore and chrome ore were lower than in
the previous corresponding period due to unforeseen inland logistical challenges while sales volumes of
manganese ore and alloys were higher.
Production and sales volumes achieved by the group were as follows:
Six months to Six months to %
31 December 31 December (decrease)/
Metric tons '000 2018 2017 increase
Production volumes (100%)
Iron ore 8 742 9 143 (4)
Manganese ore 1 737 1 865 (7)
Manganese alloys 194 190 2
Chrome ore 765 717 7
Sales volumes (100%)
Iron ore 8 752 9 130 (4)
Manganese ore* 1 605 1 556 3
Manganese alloys 164 162 1
Chrome ore 757 794 (5)
* Excluding intragroup sales
Strong cash generation resulted in group net cash increasing by 16% to R7,65 billion at December 2018
(December 2017: R6,6 billion). The board has declared an interim dividend of 1 000 cents
(H1 FY18: 1 000 cents) per share, which will be paid to shareholders on or about 18 March 2019.
Market conditions
The markets into which the group sells its products were generally stronger in comparison to the 2017
calendar year. World crude steel demand is estimated to have grown by 3,9% in the 2018 calendar year (CY18),
resulting in favourable iron ore and manganese ore prices for the current period. The world stainless-steel
production is estimated to have grown by 6,1% in CY18. However, the demand for stainless steel eased towards
the end of CY18 resulting in a decrease in the average index price for chrome ore compared to the previous period.
Assmang (iron ore and manganese)
Attributable earnings increased by 23% over the previous period to R4,28 billion (100% basis, H1 FY18:
R3,47 billion). Iron ore delivered R2,43 billion (H1 FY18: R1,75 billion) while manganese ore and alloys
contributed R1,85 billion (H1 FY18: R1,74 billion). This was driven mostly by increased turnover which
was 17% up on the previous period to R16,29 billion on the back of the weaker average SA rand/US dollar
exchange rate, an improved price basket and an increase in the volume of manganese ore sold.
Capital expenditure in Assmang amounted to R1,98 billion for the period (H1 FY18: R1,17 billion).
Approximately half of this amount was spent in Assmang's Iron Ore division, including R443 million spent on
waste stripping and R404 million on replacement capital. A further R225 million was spent in the Manganese division
on the Black Rock Expansion Project (BREP) and R167 million was spent at Gloria. At 31 December 2018, 92% of the
capital approved (R6,7 billion) for the BREP had been committed. The capital expenditure in the Manganese division,
on the BREP and at Gloria, will provide Assmang with the capacity to produce up to 5,0 million tons per annum of
manganese (subject to market conditions), while simultaneously optimising the Black Rock resource and providing
grade flexibility.
Iron ore
The average index price for iron ore for the current period remained stable, at US dollar 69 per ton
compared to the previous period. However, the lump premium increased by 36% to an average of US dollar 20 per
ton, compared to the previous period. This was primarily due to Chinese steel mills utilising increased volumes
of higher grade ore amid ongoing environmental restrictions. In addition, there was an increase in the premium
achieved for spot sales during the current period.
Assmang's iron ore operations achieved total production of 8,74 million tons and total sales volumes were
8,75 million tons (H1 FY18: 9,14 million tons), 4% lower due to logistical challenges experienced on the export
rail line to Saldanha.
Manganese ore and alloys
During the current period, demand and prices for manganese ore remained elevated, driven by China's
increased reliance on imported ore. The world market for manganese ore remained undersupplied during the period.
Robust levels of Chinese steel production, which were reported to have increased by 6,6% year-on-year in CY18,
resulted in higher alloy production, and this continued to support elevated price indices for the period for
both higher grade (44% manganese content) and medium grade (37% manganese content) ores.
On the contrary, the world manganese alloy market experienced a period of oversupply which has resulted in
pressure on prices. This, together with the sustained elevated prices of manganese ore (as a key input cost to
alloy production), has led to some production cut backs by the manganese alloy industry.
Assmang's total sales volumes of manganese ore increased by 3% from the previous period to 1,6 million tons.
However, export volumes from Saldanha were negatively impacted by the logistical challenges experienced on
the export rail line, which necessitated the use of the road network.
Dwarsrivier (chrome ore)
Increased beneficiation plant utilisation gave rise to a 7% increase in production volumes at Dwarsrivier to
765 000 tons, compared to 717 000 tons produced in the previous period. The Chinese markets for chrome ore
(and ferrochrome) were weaker compared to the prior period, resulting in the average US dollar price decreasing
by 10% to USD186 per ton (44% chrome content material,delivered China).
Sales volumes decreased by 5% to 757 000 tons (H1 FY18: 794 000 tons) due to inland logistical challenges
resulting mainly from community unrest in the vicinity of the mine, as well as congestion experienced in the
port of Maputo during the latter quarter of the year. Dwarsrivier thus recorded a reduction in turnover of
8% and a reduction in earnings of 26%. Capital expenditure amounted to R214 million (H1 FY18: R121 million)
of which R92,6 million was replacement and the balance being on improving efficiencies and compliance.
Marketing and shipping
Consolidated marketing commissions earned by the group increased over H1 FY18 in line with Assmang's
turnover. Interest earned on the group's cash resources amounted to R308 million (H1 FY18: R219 million).
Other
The group increased its interest in IronRidge Resources Limited (IronRidge), an Australian minerals
exploration company listed on London's Alternative Investment Market (AIM) from 28,9% to 31,27% in November 2018,
following a rights issue to the value of R56,6 million. IronRidge has a portfolio of gold, lithium, bauxite and
iron ore prospects in Africa and Australia. During the current period, the activities of IronRidge were focused
mainly on lithium and gold exploration prospecting in Ghana, Chad and Ivory Coast.
Outlook
World economic growth remained strong for CY18. However, this growth momentum has started to wane with
growth in CY19 forecast to be marginally lower. The expected decline in growth is reflected in the slowdown
observed in some of the major advanced economies towards the end of CY18 as a result of ongoing trade actions
and the uncertain geopolitical environment. Chinese stimulus measures are being put in place to cushion the
slowdown in that economy.
Chinese environmental policies are expected to continue to impact high grade iron ore and manganese ore
markets positively thereby supporting the demand for the group's high quality products. The demand for lump iron
ore and pellets is expected to remain firm, which should be supportive for premiums on these products. However,
the recent decline in steel prices and reduced steel mill profitability in China is anticipated to result in
a substitution in favour of ore with lower iron content. This is likely to result in a narrowing of price
differentials between the various grades of the group's products.
The growing oversupply in the ferrochrome market and the subsequent pressure on chrome ore prices is set to
constrain any major upward chrome ore price movements.
The group remains confident that its portfolio of mines and marketing operations are well positioned for the
future.
The outlook statement has not been reviewed and reported on by the group's external auditors.
Accounting policies and basis of preparation
The directors of Assore take full responsibility for the preparation of this announcement. The financial
results for the period under review have been prepared under the supervision of Mr RA Davies, CA(SA) and in
accordance with IAS 34 Interim Financial Reporting and comply with IFRS, the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee, the Financial Pronouncements as issued by Financial Reporting
Standards Council, the Listings Requirements of the JSE Limited (JSE) and the Companies Act, No 71 of 2008
(as amended). The accounting policies applied are consistent with those adopted in the financial year ended
30 June 2018 except for the new accounting standards, as described on the following page, that became effective
from 1 July 2018.
Ernst & Young Inc., the group's independent external auditor, has reviewed the condensed consolidated
half-year results included in this announcement and their modified report on the review is available for
inspection at the registered office of the company. The modified opinion in the report is only in respect
of comparability to unreviewed results in the previous period. The review was conducted in terms of
ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
The auditor's report does not necessarily report on all of the information contained in this announcement.
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 company's registered office.
New accounting standards
The following accounting standards, as published by the International Accounting Standards Board (IASB) have
become effective for the group from 1 July 2018:
IFRS 15 Revenue from contracts with customers (IFRS 15)
IFRS 15 was issued in May 2014, and amended in April 2016, and will supersede all current revenue
recognition requirements under IFRS. IFRS 15 establishes a five-step model to account for revenue arising
from contracts with customers. The core principle of IFRS 15 is that an entity shall recognise revenue at an
amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring
goods or services to a customer.
The group's revenue is primarily derived from the sale of commodity products. The timing of the revenue
recognition is dependent on the sales contract terms as documented in the International Commercial terms
(incoterms). In terms of IFRS 15, there was no change in the revenue recognised for free on board (FOB) shipments.
The shipping service for all export sales shipped using the cost, insurance and freight (CIF) and cost and freight
(CFR) incoterms, represents a separate performance obligation, ie the sale and shipment of goods represent
two performance obligations. The primary performance obligation is the supply of the commodity, in which
instance the revenue will be recognised once the buyer takes control of the goods. This will not result in a
change in revenue recognition from IAS 18 Revenue to IFRS 15. The other performance obligation is the delivery
of the shipping service where the revenue earned will be recognised over the period that the service is rendered.
In December 2018 and December 2017 most of the sales were FOB and therefore the deferral of revenue component
was negligible. The application of IFRS 15 did not result in changes to the revenue recognised arising from
commission income.
The group has elected to adopt a full retrospective approach to the adoption of the standard. The impact on
the reported gross profit for the H1 FY18 is negligible and did not require adjustment. The group will be
making additional disclosure in the notes to the financial statements, setting out the respective components
of revenue as reported at 30 June 2019.
IFRS 9 Financial Instruments (IFRS 9)
IFRS 9 has replaced IAS 39 Financial Instruments: Recognition and Measurement and applies to the
classification and measurement of financial assets and financial liabilities, their impairment and hedge
accounting. The group adopted the new standard on 1 July 2018 which is the group's effective date of adoption
and no comparative information was restated. The classification and measurement of financial assets and
liabilities adopted by the group will remain mostly unchanged, except for available-for-sale investments,
which will be classified as financial assets measured at fair value through other comprehensive income.
The impact of this is that all fair value gains and losses will not be recognised in the income statement
but will remain in other comprehensive income. This represents a change from the previous treatment of
gains and losses recorded on remeasurement of these investments, which required impairment losses as well
as gains and losses on disposal to be recognised in the income statement.
The impact of the expected credit losses on financial assets classified at amortised cost in the group was
determined as being negligible.
Subsequent event
On 6 February 2019, all conditions precedent for the conclusion of the sale of Assmang's smelter operations
at Machadodorp had been met, and the assets (which had been previously fully impaired) are due to be disposed
of, by 28 February 2019.
Declaration of interim dividend
Shareholders are advised that on 25 February 2019, the board approved interim dividend number 124 (the
dividend), of 1 000 cents per share (gross) for the half-year ended 31 December 2018.
In terms of paragraph 11.17 of the Listings Requirements of JSE Limited, shareholders are advised of the
following with regard to the declaration:
1. the dividend has been declared from retained earnings
2. the local dividend tax (dividend tax) rate of 20% will apply
3. the net local dividend amount is 800 cents per share for shareholders liable to pay the dividend tax
4. the issued ordinary share capital of Assore is 139 607 000 shares, of which 36 460 825 (H1/18: 36 455 970)
shares are accounted for as treasury shares in terms of IFRS and are therefore excluded from earnings per
share calculations; and
5. Assore's income tax reference number is 9045/018/84/4.
The salient dates are as follows:
- Last day for trading to qualify and participate in the interim dividend; Tuesday, 12 March 2019
- Trading "ex dividend" commences; Wednesday, 13 March 2019
- Record date; Friday, 15 March 2019
- Dividend payment date; and Monday, 18 March 2019
- Dates (inclusive) between which share certificates may not be Wednesday, 13 March 2019 to
dematerialised or rematerialised. Friday, 15 March 2019
On behalf of the board
Desmond Sacco Charles Walters
Chairman Chief Executive Officer
Johannesburg
26 February 2019
CONDENSED CONSOLIDATED INCOME STATEMENT
Half-year Half-year Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
R'000 Reviewed Unaudited Audited
Revenue 3 947 562 3 841 588 7 804 737
Turnover 3 073 911 3 138 720 6 305 587
Cost of sales (2 509 512) (2 416 102) (4 800 780)
Gross profit 564 399 722 618 1 504 807
Commissions on sales and technical fees 560 423 458 174 979 005
Foreign exchange gains 84 109 - -
Other income 340 430 291 731 648 564
Impairment of financial and non-financial assets - (21 564) (31 083)
Foreign exchange losses - (81 998) (6 896)
Other expenses (381 968) (336 003) (762 531)
Finance costs (19 384) (8 912) (19 394)
Profit before taxation and joint venture 1 148 009 1 024 046 2 312 472
Taxation (335 280) (262 764) (645 546)
Profit after taxation, before joint venture 812 729 761 282 1 666 926
Share of profit from joint venture, after taxation 2 133 162 1 728 868 3 524 287
Share of loss from associate, after taxation (13 889) (8 404) (16 211)
Profit for the period 2 932 002 2 481 746 5 175 002
Attributable to:
Shareholders of the holding company 2 915 592 2 454 375 5 119 329
Non-controlling shareholders 16 410 27 371 55 673
As above 2 932 002 2 481 746 5 175 002
Earnings as above 2 915 592 2 454 375 5 119 329
Impairment of non-financial assets in
joint venture and subsidiaries 19 628 21 564 48 929
Gain on disposal of subsidiary (2 669) - -
Profit on disposal of property, plant and equipment
in joint venture and subsidiaries (12 952) (5 619) (4 348)
Profit on sale of available-for-sale investments - (42 565) (42 432)
Taxation effect of above items (2 595) 1 258 (12 726)
Headline earnings 2 917 004 2 429 013 5 108 752
Earnings per share (basic and diluted - cents) 2 827 2 379 4 963
Headline earnings per share (basic and diluted - cents) 2 828 2 355 4 953
Dividends per share declared in respect of the
profit for the period (cents) 1 000 1 000 2 200
- Interim 1 000 1 000 1 000
- Final 1 200
Weighted average number of ordinary shares (million)
Ordinary shares in issue 139,61 139,61 139,61
Weighted impact of treasury shares held in trust (36,46) (36,45) (36,46)
103,15 103,16 103,15
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half-year Half-year Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
R'000 Reviewed Unaudited Audited
Profit for the period (as above) 2 932 002 2 481 746 5 175 002
Items that may be reclassified into the income
statement dependent on the outcome of a future event 38 204 22 086 162 862
Gains on revaluation to market value of
available-for-sale investments after taxation - 30 186 32 933
Gain on revaluation to market value of
available-for-sale investments - 38 900 77 024
Deferred capital gains tax thereon - (8 714) (44 091)
Exchange differences on translation of foreign operations 38 204 (8 100) 129 929
Items that may not be reclassified into the
income statement dependent on the outcome of a future event 1 625 - 17 206
Gain on revaluation to market value of financial
assets measured at fair value through other
comprehensive income after taxation 1 625 - -
Gain on revaluation to market value of financial
assets measured at fair value through other
comprehensive income 2 096 - -
Deferred capital gains tax thereon (471) - -
Actuarial gain on pension fund, after taxation - - 17 206
Total comprehensive income for the period, net of tax 2 971 831 2 503 832 5 355 070
Comprehensive income attributable to
non-controlling shareholders (19 859) (40 166) (57 709)
Attributable to shareholders of the holding company 2 951 972 2 463 666 5 297 361
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At At At
31 December 31 December 30 June
2018 2017 2018
R'000 Reviewed Unaudited Audited
ASSETS
Non-current assets
Property, plant and equipment and intangible assets 1 943 713 1 662 604 1 793 865
Investments
- joint venture 16 410 049 16 278 970 15 984 321
- financial assets measured at fair value through
other comprehensive income (2017: available-for-sale
investments) 264 096 223 876 262 003
- associate 199 371 172 297 154 896
- other 7 772 21 559 7 568
Long-term loans 9 300 - 6 000
Pension fund surplus 129 245 93 144 129 245
Total non-current assets 18 963 546 18 452 450 18 337 898
Current assets
Inventories 1 830 318 1 049 715 1 361 954
Trade and other receivables 1 155 033 625 364 1 222 327
Cash resources 8 754 832 7 115 272 8 449 797
Assets held-for-sale as part of identified disposal groups 213 - 1 351
Total current assets 11 740 396 8 790 351 11 035 429
TOTAL ASSETS 30 703 942 27 242 801 29 373 327
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders' interest 27 844 362 24 524 354 26 091 352
Non-controlling shareholders' deficit (62 184) (1 877) (40 990)
Total equity 27 782 178 24 522 477 26 050 362
Non-current liabilities
Net deferred taxation liabilities 411 095 264 871 345 440
Non-interest-bearing liabilities 197 541 135 925 184 152
Total non-current liabilities 608 636 400 796 529 592
Current liabilities
Interest-bearing 1 108 262 513 874 584 472
Non-interest-bearing 1 204 328 1 805 654 2 191 727
Liabilities associated with assets held-for-sale 538 - 17 174
Total current liabilities 2 313 128 2 319 528 2 793 373
TOTAL EQUITY AND LIABILITIES 30 703 942 27 242 801 29 373 327
FAIR VALUES OF FINANCIAL INSTRUMENTS
The group uses the following hierarchy for determining and disclosing the fair value inputs of
financial instruments:
Level 1 - quoted prices in an active market that are unadjusted for identical assets or liabilities;
Level 2 - valuation techniques using inputs, which are directly or indirectly observable; and
Level 3 - valuations based on data that is not observable (not applicable to the Group).
The values of all other financial instruments recognised, but not subsequently measured at fair value,
approximate fair value.
Half-year Half-year Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
Reviewed Unaudited Audited
R'000 Level 1 Level 1 Level 1
Assets measured at fair value
Financial assets measured at fair value through
other comprehensive income
(2017: available-for-sale investments) 264 096 223 876 262 003
Other investments 7 772 21 559 7 568
271 868 245 435 269 571
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Half-year Half-year Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
R'000 Reviewed Unaudited* Audited
Cash (utilised by)/generated from operations (1 691 418) 595 079 185 515
Net cash (utilised by)/generated from operations (517 904) 1 427 050 2 342 134
Net finance costs and taxation flows 64 970 (6 555) (225 550)
Net dividend flows (1 238 484) (825 416) (1 931 069)
Cash retained from investing activities 1 472 663 958 900 2 632 751
Dividends received from joint venture entity 1 750 000 1 000 000 3 000 000
Net capital expenditure (277 337) (41 100) (367 249)
Cash generated/(utilised) by financing activities 523 790 (65 485) 4 753
Increase in cash for the period 305 035 1 488 494 2 823 019
Cash resources at beginning of period 8 449 797 5 626 778 5 626 778
Cash resources per statement of financial position 8 754 832 7 115 272 8 449 797
* The net cash generated from operations, net finance costs and taxation flows, net dividend flows, dividends
received from joint venture entity and net capital expenditure lines were included in these results with
H1 FY18 being restated accordingly to clarify the movements in cash generated from operations and cash
retained from investing activities.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half-year Half-year Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
R'000 Reviewed Unaudited Audited
Share capital, share premium and other reserves
Balance at beginning of period 523 327 563 925 341 223
Other comprehensive income for the period 77 434 26 055 182 104
Net increase in the market value of financial assets
measured at fair value through other comprehensive
income (2017: net increase in the market value of
available-for-sale investments) 1 625 30 186 32 933
Actuarial gains on pension plan after taxation - - 17 206
Foreign currency translation reserve arising on consolidation 75 809 (4 131) 131 965
Balance at end of period 600 761 589 980 523 327
Treasury shares
Balance at beginning of period (5 065 510) (5 062 848) (5 062 848)
Acquired during the period (1 532) (2 662) (2 662)
Balance at end of period (5 067 042) (5 065 510) (5 065 510)
Retained earnings
Balance at beginning of period 30 633 535 27 370 925 27 370 925
Profit for the period attributable to shareholders 2 915 592 2 454 375 5 119 329
Ordinary dividends declared during the period (1 238 484) (825 416) (1 856 719)
- total dividends declared (1 675 284) (1 116 856) (2 512 926)
- dividends on treasury shares held in BEE trusts 436 800 291 440 656 207
Balance at end of period 32 310 643 28 999 884 30 633 535
Ordinary shareholders' interest 27 844 362 24 524 354 26 091 352
Non-controlling shareholders' deficit
Balance at beginning of period (40 990) (24 348) (24 348)
Share of total comprehensive (loss)/income (21 194) 22 471 (16 642)
Total comprehensive (loss)/income for the period (21 194) 23 402 57 709
- profit for the period 16 410 27 371 55 673
- other comprehensive (loss)/income (37 604) (3 969) 2 036
- dividends paid to non-controlling shareholders - (931) (74 351)
Balance at end of period (62 184) (1 877) (40 990)
Total equity 27 782 178 24 522 477 26 050 362
SEGMENTAL INFORMATION
Joint venture mining and beneficiation
R'000 Iron ore Manganese Chrome Sub-total
Half-year ended
31 December 2018 - Reviewed
Revenues by source
Third party 9 110 948 7 178 070 - 16 289 018
Inter-segment - - - -
Total revenues 9 110 948 7 178 070 - 16 289 018
Revenues from contracts
with customers: 8 603 078 7 168 880 15 771 958
Cost, insurance and
freight (CIF) and cost
and freight (CFR) 4 254 863 4 912 382 - 9 167 245
Free on board (FOB) and
free carrier (FCA) 4 348 215 2 256 498 - 6 604 713
Commissions - - -
Other revenues3 294 984 9 190 - 304 174
Fair value adjustments to
contract revenues2 212 886 - - 212 886
Total revenues 9 110 948 7 178 070 - 16 289 018
Contribution to profit 2 431 917 1 853 903 (7 021) 4 278 799
Impairment of financial and
non-financial assets - 28 264 - 28 264
Half-year ended
31 December 2017 - Unaudited
Revenues
Third party 7 900 942 5 962 454 82 860 13 946 256
Inter-segment - - - -
Total revenues 7 900 942 5 962 454 82 860 13 946 256
Revenues from contracts
with customers: 7 640 328 5 962 454 82 860 13 685 642
Cost, insurance and
freight (CIF) and cost
and freight (CFR) 3 417 145 3 254 457 81 782 6 753 384
Free on board (FOB) and
free carrier (FCA) 4 223 183 2 707 997 1 078 6 932 258
Commissions - - - -
Other revenues3 321 216 - - 321 216
Fair value adjustments to
contract revenues2 (60 602) - - (60 602)
Total revenues 7 900 942 5 962 454 82 860 13 946 256
Contribution to profit 1 745 668 1 743 077 (18 536) 3 470 209
Impairment of financial and
non-financial assets - - - -
Other mining activities include the group's pyrophyllite and related business and the remainder of its operations.
Notes:
1 The majority of adjustments to revenues give effect to joint venture revenues, which are not disclosed
as Assmang is equity accounted.
2 Provisional to final price adjustments.
3 Mainly dividends and interest.
4 Local sales made by Minerais US LLC in the USA.
SEGMENTAL INFORMATION (continued)
Other
mining
activities,
Marketing eliminations
and and
R'000 Dwarsrivier shipping adjustments1 Consolidated
Half-year ended
31 December 2018 - Reviewed
Revenues by source
Third party 1 852 017 2 041 156 (16 234 629) 3 947 562
Inter-segment - 64 045 (64 045) -
Total revenues 1 852 017 2 105 201 (16 298 674) 3 947 562
Revenues from contracts
with customers: 1 800 306 1 805 344 (15 771 958) 3 605 650
Cost, insurance and
freight (CIF) and cost
and freight (CFR) 88 026 - (9 167 245) 88 026
Free on board (FOB) and
free carrier (FCA) 1 712 280 1 244 9214 (6 604 713) 2 957 201
Commissions - 560 423 - 560 423
Other revenues3 51 711 299 857 (313 830) 341 912
Fair value adjustments to
contract revenues2 - - (212 886) -
Total revenues 1 852 017 2 105 201 (16 298 674) 3 947 562
Contribution to profit 274 853 503 396 (2 125 046) 2 932 002
Impairment of financial and
non-financial assets - - (14 132) 14 132
Half-year ended
31 December 2017 - Unaudited
Revenues
Third party 1 981 955 1 862 603 (13 949 226) 3 841 588
Inter-segment - 69 182 (69 182) -
Total revenues 1 981 955 1 931 785 (14 018 408) 3 841 588
Revenues from contracts
with customers: 1 949 026 1 613 466 (13 685 642) 3 562 492
Cost, insurance and
freight (CIF) and cost
and freight (CFR) 800 601 - (6 753 384) 800 601
Free on board (FOB) and
free carrier (FCA) 1 148 425 1 155 2924 (6 932 258) 2 303 717
Commissions - 458 174 - 458 174
Other revenues3 32 929 318 319 (393 368) 279 096
Fair value adjustments to
contract revenues2 - - 60 602 -
Total revenues 1 981 955 1 931 785 (14 018 408) 3 841 588
Contribution to profit 440 045 375 774 (1 804 283) 2 481 746
Impairment of financial and
non-financial assets - - (21 564) (21 564)
Other mining activities include the group's pyrophyllite and related business and the remainder of its operations.
Notes:
1 The majority of adjustments to revenues give effect to joint venture revenues, which are not disclosed
as Assmang is equity accounted.
2 Provisional to final price adjustments.
3 Mainly dividends and interest.
4 Local sales made by Minerais US LLC in the USA.
CORPORATE INFORMATION
Directors
Executive
Desmond Sacco (Chairman)
CE Walters (Chief Executive Officer)
PE Sacco (Deputy Chief Executive Officer)
RA Davies (Chief Financial Officer)
BH van Aswegen (Group Technical and Operations Director)
Non-executive
EM Southey* (Deputy Chairman and Lead Independent Director)
DN Aitken*,TN Mgoduso*, S Mhlarhi*, WF Urmson*
*Independent
Registered office
Assore House, 15 Fricker Road
Illovo Boulevard
Johannesburg, 2196
Company Secretary
African Mining and Trust Company Limited
Transfer office
Singular Systems Proprietary Limited
28 Fort Street
Birnam
Johannesburg, 2196
Sponsor
The Standard Bank of South Africa Limited
30 Baker Street
Rosebank
Johannesburg, 2196
For more information please visit
www.assore.com
Date: 26/02/2019 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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