The group’s principal investment is a 50% (2016: 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 and
manganese 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 2017.
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| Consolidated income statement of Assmang (accounting for Dwarsrivier as a discontinued operation in 2016) |
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| Turnover |
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26 280 018 |
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| Cost of sales |
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(14 810 082) |
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| Gross profit |
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11 469 936 |
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| Other operating income |
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625 165 |
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| Other operating expenses |
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(3 926 871) |
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| Profit from operations |
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8 168 230 |
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| Loss from joint-venture entity |
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(46 137) |
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| Income from investments |
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1 074 176 |
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| Finance costs |
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(95 001) |
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| Profit before taxation |
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9 101 268 |
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| Taxation |
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(2 543 755) |
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| Profit for the year from continuing operations, net of taxation |
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6 557 513 |
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| Discontinued operations |
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| Profit after taxation for the year from discontinued operation |
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— |
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| Other comprehensive income |
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(445 405) |
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| Total comprehensive income for the year, net of taxation (group interest therein 50% (2016: 50%)) (refer “Equity accounting results for Assmang”) |
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6 112 108 |
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| Dividends declared during the year |
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5 607 730 |
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| Abridged consolidated statement of financial position of Assmang Total assets |
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| Non-current assets |
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25 073 561 |
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| Current assets |
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| Inventories |
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3 647 687 |
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| Trade and other receivables |
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4 317 489 |
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| Financial assets |
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275 632 |
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| Cash resources |
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6 330 426 |
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| Assets held-for-sale |
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— |
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39 644 795 |
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| Total liabilities |
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| Non-current liabilities |
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| Deferred taxation liability |
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5 471 270 |
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| Long-term provisions |
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916 300 |
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| Trade and other payables |
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94 439 |
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| Current liabilities |
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| Trade and other payables |
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1 572 077 |
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| Short-term provisions |
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750 612 |
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| Taxation |
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392 374 |
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| Liabilities directly associated with the assets held-for-sale |
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— |
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9 197 072 |
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| Net assets |
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30 447 723 |
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| Proportion of the group’s ownership |
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50% |
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| Carrying amount of investment |
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| Opening balance |
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15 094 529 |
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| Share of profit after taxation |
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3 266 282 |
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| Sale of Dwarsrivier |
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(560 709) |
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| Share of other comprehensive income, net of taxation |
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(222 702) |
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| Less: Dividends received |
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(2 250 000) |
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| Carrying amount of investment in statement of financial position |
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15 327 400 |
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| Capital expenditure |
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2 816 981 |
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| Capital commitments |
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2 586 774 |
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| – contracted for |
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857 218 |
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| – not contracted for |
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1 729 556 |
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| Equity accounting results of Assmang |
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| Total comprehensive income for the year, net of taxation |
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6 112 107 |
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| Add/(less): Other comprehensive income/(loss) from continuing and
discontinued operations |
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445 405 |
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6 557 512 |
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| Less: Depreciation not recorded in Assmang as assets held-for-sale (Dwarsrivier), effective 25 June 2015, required for group |
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— |
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| Assmang profit after taxation accounting for Dwarsrivier as a continuing operation |
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6 557 512 |
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| 50% thereon |
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3 278 756 |
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| Group consolidation adjustments |
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(12 474) |
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| Share of profit from joint-venture entity after taxation per income statement |
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3 266 282 |
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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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| – Dwarsrivier, upon sale to joint venture partner |
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749 347 |
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| – one furnace and associated assets at Cato Ridge Works |
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124 626 |
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| – manganese export storage facility at Cato Ridge Works |
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68 396 |
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| – mine properties and associated assets at Machadodorp Works |
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— |
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| – design work, on the training facility and sorter plant at Black Rock |
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— |
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942 369 |
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