The group’s principal investment is a 50% (2017: 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 2018.
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2018
R’000 |
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2017
R’000 |
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| Consolidated income statement of Assmang |
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| Turnover |
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27 548 235 |
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26 280 018 |
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| Cost of sales |
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(16 206 770) |
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(14 810 082) |
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| Gross profit |
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11 341 465 |
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11 469 936 |
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| Other operating income |
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1 356 756 |
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625 165 |
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| Other operating expenses |
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(3 469 816) |
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(3 926 871) |
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| Profit from operations |
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9 228 405 |
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8 168 230 |
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| Profit/(loss) from joint-venture entity |
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236 606 |
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(46 137) |
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| Income from investments |
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597 514 |
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1 074 176 |
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| Finance costs |
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(68 046) |
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(95 001) |
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| Profit before taxation |
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9 994 479 |
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9 101 268 |
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| Taxation |
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(2 920 956) |
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(2 543 755) |
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| Profit for the year, net of taxation |
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7 073 523 |
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6 557 513 |
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| Discontinued operations |
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| Other comprehensive income/(loss) |
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265 267 |
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(445 405) |
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| Total comprehensive income for the year, net of taxation (group interest therein 50% (2017: 50%)) (refer “Equity accounted results for Assmang” below) |
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7 338 790 |
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6 112 108 |
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| Dividends declared during the year |
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6 000 000 |
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5 607 730 |
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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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26 509 377 |
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25 073 561 |
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| Current assets |
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| Inventories |
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4 392 486 |
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3 647 687 |
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| Trade and other receivables |
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5 522 327 |
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4 317 489 |
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| Financial assets |
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228 367 |
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275 632 |
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| Cash resources |
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5 014 065 |
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6 330 426 |
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| Total liabilities |
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41 666 622 |
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39 644 795 |
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| Non-current liabilities |
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| Deferred taxation |
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5 809 009 |
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5 471 270 |
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| Long-term provisions |
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897 397 |
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916 300 |
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| Trade and other payables |
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89 217 |
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94 439 |
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| Current liabilities |
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| Trade and other payables |
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1 819 476 |
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1 572 077 |
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| Short-term provisions |
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960 674 |
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750 612 |
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| Taxation |
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206 184 |
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392 374 |
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9 781 957 |
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9 197 072 |
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| Net assets |
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31 884 665 |
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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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50% |
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| Carrying amount of investment |
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| Opening balance |
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15 327 400 |
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15 094 529 |
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| Share of profit after taxation |
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3 524 287 |
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3 266 282 |
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| Sale of Dwarsrivier |
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— |
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(560 709) |
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| Share of other comprehensive income/(loss), net of taxation |
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132 634 |
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(222 702) |
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| Less: Dividends received |
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(3 000 000) |
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(2 250 000) |
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| Carrying amount of investment in statement of financial position |
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15 984 321 |
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15 327 400 |
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| Capital expenditure |
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3 082 204 |
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2 816 981 |
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| Capital commitments |
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2 844 692 |
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2 586 774 |
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| – contracted for |
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941 078 |
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857 218 |
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| – not contracted for |
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1 903 614 |
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1 729 556 |
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| Equity accounted results of Assmang |
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| Total comprehensive income for the year, net of taxation |
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7 338 790 |
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6 112 107 |
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| Less: Other comprehensive (income)/loss from operations |
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(265 267) |
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445 405 |
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| Assmang profit after taxation |
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7 073 523 |
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6 557 512 |
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| 50% thereof |
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3 536 761 |
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3 278 756 |
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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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3 524 287 |
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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 |
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| economic benefits were expected to arise from these operations: |
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| – feasibility studies relating to manganese operations |
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51 900 |
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— |
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| – Dwarsrivier, upon sale to joint venture partner |
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— |
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749 347 |
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| – one furnace and associated assets at Cato Ridge Works |
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— |
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124 626 |
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| – manganese export storage facility at Cato Ridge Works |
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— |
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68 396 |
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51 900 |
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942 369 |
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