| SEGMENTAL INFORMATION
The following segments are separately monitored by management and form the group’s reportable segments:
Joint venture mining and beneficiation
Assore’s principal investment is its 50% share in Assmang Proprietary Limited (Assmang).
Assmang’s operations are managed by commodities mined and, where applicable, beneficiated at various works operations.
Accordingly, this segment is further analysed as follows:
- iron ore (Iron Ore division);
- manganese ore and alloys (Manganese division); and
- charge chrome (Chrome division).
For purposes of presenting segmental information, disclosure is made of the entire value of the information pertaining to
Assmang, with the portion attributable to the other joint-venture partner (50%) shown as part of the consolidation adjustments.
Dwarsrivier
With effect from 1 July 2016, Assore owns 100% of Dwarsrivier, which mines and beneficiates chrome ores. Dwarsrivier is
managed on an independent basis by executive management.
Marketing and shipping
In terms of the joint-venture arrangement with Assmang, Assore and certain of its subsidiaries are responsible for the marketing
and shipping of Assmang’s product. In addition, another subsidiary provides consulting and engineering expertise to Assmang
and other group companies.
Other mining activities, eliminations and adjustments
This segment contains the chrome operations managed by Rustenburg Minerals, Zeerust, the pyrophyllite and ceramic
operations of Wonderstone Limited and adjustments necessary to give effect to the impact of equity-accounting the results of
Assmang and other consolidation adjustments. The operations referred to have become immaterial, due to the chrome
operations no longer being in commercial production and therefore these adjustments were previously disclosed separately.
| R’000 |
|
|
| Year to 30 June 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third party |
|
|
16 398 968 |
10 238 065 |
207 764 |
|
26 844 797 |
|
3 410 363 |
3 573 061 |
(26 604 262) |
|
7 223 959 |
|
| Inter-segment |
|
|
— |
— |
— |
|
— |
|
— |
121 286 |
(121 286) |
|
— |
|
| Total revenues |
|
|
16 398 968 |
10 238 065 |
207 764 |
|
26 844 797 |
|
3 410 363 |
3 694 347 |
(26 725 548) |
|
7 223 959 |
|
| Contribution to profit/ (loss) for the year* |
|
|
4 372 631 |
2 181 569 |
(6 746) |
|
6 547 454 |
|
843 199 |
1 071 298 |
(6 573 094) |
|
1 888 857 |
|
| Contribution to headline earnings# |
|
|
4 373 877 |
2 321 686 |
749 337 |
|
7 444 900 |
|
843 199 |
653 423 |
(3 732 476) |
|
5 209 046 |
|
| Impairment of financial and non-financial assets |
|
|
— |
(138 976) |
(746 007) |
|
(884 983) |
|
— |
— |
442 491 |
|
(442 492) |
|
| Statement of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated total assets |
|
|
25 571 400 |
13 519 306 |
554 089 |
|
39 644 795 |
|
1 511 650 |
23 589 330 |
(39 201 542) |
|
25 544 233 |
|
| Consolidated total liabilities |
|
|
5 930 711 |
2 754 092 |
414 120 |
|
9 098 923 |
|
824 167 |
1 823 961 |
(9 050 472) |
|
2 696 579 |
|
| Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
531 544 |
12 120 |
— |
|
543 664 |
|
29 897 |
312 508 |
(536 746) |
|
349 323 |
|
| Finance costs |
|
|
54 997 |
40 004 |
— |
|
95 001 |
|
5 838 |
9 176 |
(90 353) |
|
19 662 |
|
| Depreciation and amortisation |
|
|
1 417 197 |
465 250 |
— |
|
1 882 447 |
|
137 439 |
6 409 |
(1 871 807) |
|
154 488 |
|
| Taxation |
|
|
1 864 503 |
911 241 |
(2 622) |
|
2 773 122 |
|
297 014 |
273 031 |
(2 759 747) |
|
583 420 |
|
| Capital expenditure |
|
|
1 168 975 |
1 648 006 |
— |
|
2 816 981 |
|
140 581 |
2 361 |
(2 810 064) |
|
149 859 |
|
| * |
Profit after taxation, before joint venture entity and foreign listed associate. |
| # |
Includes equity-accounted results of Assmang and IronRidge. |
| R’000 |
|
Iron Ore
division |
Manganese
division |
Chrome
division |
|
Sub-total |
|
Marketing
and
shipping |
Other
mining and
benefi-
ciation |
Adjust-
ments
arising on
con-
solidation |
|
Total |
|
| Year to 30 June 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third party |
|
12 532 603 |
6 666 055 |
1 893 709 |
|
21 092 367 |
|
2 650 817 |
290 230 |
(21 092 367) |
|
2 941 047 |
|
| Inter-segment |
|
— |
— |
— |
|
— |
|
5 542 |
— |
(5 542) |
|
— |
|
| Total revenues |
|
12 532 603 |
6 666 055 |
1 893 709 |
|
21 092 367 |
|
2 656 359 |
290 230 |
(21 097 909) |
|
2 941 047 |
|
| Contribution to profit/(loss) for the year* |
|
2 440 236 |
103 748 |
42 962 |
|
2 586 946 |
|
367 384 |
(143 457) |
(2 586 946) |
|
223 927 |
|
| Contribution to headline earnings# |
|
2 429 137 |
394 758 |
42 965 |
|
2 866 860 |
|
377 106 |
(66 360) |
(1 433 430) |
|
1 744 176 |
|
| Impairment of financial and non-financial assets |
|
— |
(405 418) |
— |
|
(405 418) |
|
— |
(117 412) |
202 709 |
|
(320 121) |
|
| Statement of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated total assets |
|
25 982 501 |
11 044 725 |
1 576 180 |
|
38 603 406 |
|
1 217 940 |
308 893 |
(19 301 703) |
|
20 828 536 |
|
| Consolidated total liabilities |
|
5 853 111 |
2 153 428 |
222 742 |
|
8 229 281 |
|
1 859 704 |
57 223 |
(8 229 281) |
|
1 916 927 |
|
| Otherinformation |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
406 383 |
9 868 |
667 |
|
416 918 |
|
204 257 |
6 189 |
(416 918) |
|
210 446 |
|
| Finance costs |
|
25 173 |
34 084 |
3 219 |
|
62 476 |
|
32 324 |
6 252 |
(62 476) |
|
38 576 |
|
| Depreciation and amortisation |
|
1 517 071 |
472 161 |
105 764 |
|
2 094 996 |
|
9 492 |
17 603 |
(2 094 996) |
|
27 095 |
|
| Taxation |
|
917 170 |
30 823 |
23 273 |
|
971 266 |
|
170 467 |
5 909 |
(971 266) |
|
176 376 |
|
| Capital expenditure |
|
901 037 |
1 927 538 |
146 103 |
|
2 974 678 |
|
25 133 |
698 |
(2 974 678) |
|
25 831 |
|
| * |
Profit after taxation, before joint venture entity and foreign listed associate. |
| # |
Includes equity-accounted results of Assmang and IronRidge |
Geographical information
Geographical segment by location of customers
An analysis of the geographical locations to which product is supplied is set out below:
| |
|
|
|
| |
|
|
Assmang
revenue
by segment
R’000 |
Subsidiaries
revenue
by segment
R’000 |
Total
R’000 |
|
| Customers by locations |
|
|
|
|
|
|
|
|
|
|
|
| Far East |
|
|
20 155 728 |
3 070 845 |
23 226 573 |
|
|
12 476 319 |
21 613 |
12 497 932 |
|
| Europe |
|
|
1 583 640 |
40 191 |
1 623 831 |
|
|
2 306 454 |
2 629 |
2 309 083 |
|
| USA |
|
|
550 246 |
2 421 439 |
2 971 685 |
|
|
1 716 791 |
1 745 749 |
3 462 540 |
|
| South Africa |
|
|
3 946 475 |
1 486 862 |
5 433 337 |
|
|
2 969 603 |
1 170 155 |
4 139 758 |
|
| Other – foreign |
|
|
43 929 |
204 622 |
248 551 |
|
|
1 623 200 |
901 |
1 624 101 |
|
| Total |
|
|
26 280 018 |
7 223 959 |
33 503 977 |
|
|
21 092 367 |
2 941 047 |
24 033 414 |
|
| Notes: |
| 1. |
There are no customers whose off-take represents more than 10% of revenue (one customer in 2016: R2 607 million). |
| 2. |
The revenue of Assmang (refer note 1) is excluded from the group’s reported revenue, in terms of the application of IFRS 11. |
|