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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2016
R’000 |
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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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18 927 093 |
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| Cost of sales |
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(14 810 082) |
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(14 374 497) |
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| Gross profit |
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11 469 936 |
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4 552 596 |
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| Other operating income |
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625 165 |
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796 369 |
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| Other operating expenses |
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(3 926 871) |
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(2 185 862) |
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| Profit from operations |
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8 168 230 |
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3 163 103 |
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| Loss from joint-venture entity |
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(46 137) |
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(17 741) |
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| Income from investments |
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1 074 176 |
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416 251 |
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| Finance costs |
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(95 001) |
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(59 258) |
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| Profit before taxation |
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9 101 268 |
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3 502 355 |
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| Taxation |
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(2 543 755) |
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(950 181) |
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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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2 552 174 |
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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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103 183 |
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| Other comprehensive income |
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(445 405) |
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206 442 |
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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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2 861 799 |
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| Dividends declared during the year |
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5 607 730 |
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1 750 000 |
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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 |
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25 073 561 |
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24 918 898 |
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| Current assets |
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| Inventories |
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3 647 687 |
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3 712 093 |
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| Trade and other receivables |
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4 317 489 |
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3 557 556 |
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| Financial assets |
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275 632 |
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71 450 |
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| Cash resources |
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6 330 426 |
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4 798 476 |
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| Assets held-for-sale |
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— |
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1 843 269 |
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39 644 795 |
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38 901 742 |
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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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5 097 914 |
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| Long-term provisions |
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916 300 |
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802 695 |
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| Trade and other payables |
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94 439 |
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96 381 |
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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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1 320 541 |
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| Short-term provisions |
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750 612 |
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698 627 |
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| Taxation |
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392 374 |
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213 125 |
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| Liabilities directly associated with the assets held-for-sale |
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— |
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630 964 |
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9 197 072 |
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8 860 247 |
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| Net assets |
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30 447 723 |
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30 041 495 |
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| Proportion of the group’s ownership |
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50% |
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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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14 585 308 |
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| Share of profit after taxation |
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3 266 282 |
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1 281 000 |
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| Sale of Dwarsrivier |
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(560 709) |
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— |
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| Share of other comprehensive income, net of taxation |
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(222 702) |
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103 221 |
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| Less: Dividends received |
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(2 250 000) |
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(875 000) |
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| Carrying amount of investment in statement of financial position |
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15 327 400 |
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15 094 529 |
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| Capital expenditure |
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2 816 981 |
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2 974 678 |
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| Capital commitments |
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2 586 774 |
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3 521 805 |
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| – contracted for |
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857 218 |
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1 123 409 |
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| – not contracted for |
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1 729 556 |
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2 398 396 |
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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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6 557 512 |
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2 861 799 |
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| Less: Other comprehensive income from continuing and discontinued operations |
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— |
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(206 442) |
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6 557 512 |
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2 655 357 |
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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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(68 410) |
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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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2 586 947 |
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| 50% thereon |
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3 278 756 |
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1 293 474 |
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| Group consolidation adjustments |
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(12 474) |
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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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1 281 000 |
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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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— |
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| – one furnace and associated assets at Cato Ridge Works |
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124 626 |
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— |
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| – manganese export storage facility at Cato Ridge Works |
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68 396 |
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— |
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| – mine properties and associated assets at Machadodorp Works |
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— |
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333 110 |
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| – design work, on the training facility and sorter plant at Black Rock |
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— |
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72 308 |
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942 369 |
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405 418 |
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