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 commodity 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
Dwarsrivier is a 100% owned mine, producer and beneficiator of chrome ores.
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 Development Company Proprietary Limited,
Zeerust Chrome Mines Limited (both on care and maintenance), 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. These adjustments were previously disclosed separately.
| |
|
|
Joint venture mining
and beneficiation |
|
|
|
|
|
|
|
|
|
| R'000 |
|
|
Iron
Ore
division |
Manganese
division |
Chrome
division |
|
Sub-total |
|
Dwarsrivier |
Marketing
and
distribution |
Other mining
activities,
eliminations
and
adjustments |
|
Total |
|
| Year to 30 June 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third party |
|
|
15 135 316 |
12 859 636 |
180 309 |
|
28 175 261 |
|
3 892 752 |
3 974 210 |
(28 237 486) |
|
7 804 737 |
|
| Inter-segment |
|
|
– |
– |
– |
|
– |
|
– |
18 305 |
(18 305) |
|
– |
|
| Total revenues |
|
|
15 135 316 |
12 859 636 |
180 309 |
|
28 175 261 |
|
3 892 752 |
3 992 515 |
(28 255 791) |
|
7 804 737 |
|
| Contribution to profit/(loss) for the year* |
|
|
3 343 512 |
3 771 662 |
(41 650) |
|
7 073 524 |
|
875 378 |
703 879 |
(6 985 855) |
|
1 666 926 |
|
| Contribution to headline earnings# |
|
|
3 343 350 |
3 807 585 |
(41 650) |
|
7 109 285 |
|
875 378 |
710 733 |
(3 586 644) |
|
5 108 752 |
|
| Impairment of financial and non-financial assets |
|
|
– |
(51 900) |
– |
|
(51 900) |
|
– |
(9 519) |
12 490 |
|
(48 929) |
|
| Statement of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated total assets |
|
|
23 149 661 |
17 988 956 |
524 319 |
|
41 662 936 |
|
3 884 794 |
25 300 630 |
(41 475 033) |
|
29 373 327 |
|
| Consolidated total liabilities |
|
|
6 076 881 |
3 190 147 |
426 352 |
|
9 693 380 |
|
1 071 744 |
1 859 703 |
(9 301 862) |
|
3 322 965 |
|
| Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
578 044 |
19 471 |
– |
|
597 515 |
|
87 554 |
407 224 |
(572 147) |
|
520 146 |
|
| Finance costs |
|
|
33 855 |
34 191 |
– |
|
68 046 |
|
5 304 |
12 474 |
(66 430) |
|
19 394 |
|
| Depreciation and amortisation |
|
|
1 400 776 |
593 768 |
8 287 |
|
2 002 831 |
|
130 794 |
16 066 |
(2 024 455) |
|
125 236 |
|
| Taxation |
|
|
1 431 656 |
1 489 299 |
– |
|
2 920 955 |
|
277 438 |
317 189 |
(2 870 036) |
|
645 546 |
|
| Capital expenditure |
|
|
1 780 830 |
1 285 846 |
15 528 |
|
3 082 204 |
|
333 804 |
32 971 |
(3 044 858) |
|
404 121 |
|
| |
|
|
Joint venture mining
and beneficiation |
|
|
|
|
|
|
|
|
|
| R'000 |
|
|
Iron
Ore
division |
Manganese
division |
Chrome
division |
|
Sub-total |
|
Marketing |
Other
mining and
beneficaition |
Adjustments
arising on
consideration |
|
Total |
|
| Year to 30 June 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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.
Geographical information
Geographical segment by location of customers
An analysis of the geographical locations to which product is supplied is set out below:
| |
|
|
2018 |
|
|
2017 |
|
| |
|
|
Assmang
revenue
by segment
R'000 |
Subsidiaries’
revenue
by segment
R'000 |
Total
R'000 |
|
|
|
Assmang
revenue
by segment
R'000 |
Subsidiaries’
revenue
by segment
R'000 |
Total
R'000 |
|
| Customers
by location |
|
|
|
|
|
|
|
|
|
|
|
|
| Far East |
|
|
19 960 513 |
3 352 102 |
23 312 615 |
|
|
|
20 155 728 |
3 070 845 |
23 226 573 |
|
| Europe |
|
|
2 507 924 |
77 110 |
2 585 034 |
|
|
|
1 583 640 |
40 191 |
1 623 831 |
|
| USA |
|
|
976 274 |
2 740 625 |
3 716 899 |
|
|
|
550 246 |
2 421 439 |
2 971 685 |
|
| South Africa |
|
|
4 625 716 |
1 634 900 |
6 260 616 |
|
|
|
3 946 475 |
1 486 862 |
5 433 337 |
|
| Other – foreign |
|
|
104 834 |
– |
104 834 |
|
|
|
43 929 |
204 622 |
248 551 |
|
| Total |
|
|
28 175 261 |
7 804 737 |
35 979 998 |
|
|
|
26 280 018 |
7 223 959 |
33 503 977 |
|
Notes:
1. There are no customers whose off-take represents more than 10% of revenue (2017: Rnil 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: Joint
arrangements. |