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The basis of preparation and principal accounting policies are disclosed in the Notes to the consolidated financial statements. Subsidiaries, associated undertakings and joint ventures are accounted for at cost less any impairment provision in the company financial statements.
| (All amounts in rand millions unless otherwise stated) | 2008 | 2007 |
1.Investments in associates | ||
| Associates | ||
| At cost | ||
| Two Rivers Platinum (Proprietary) Limited (group note 8i) | 680 | 669 |
| Aquarius Platinum (South Africa) (Proprietary) Limited (group note 8ii) | ||
| Beginning of the year | 204 | 204 |
| Shareholders loan repaid | (160) | – |
| Repayment of capital | (42) | – |
| Disposal of investment (note 6) | (2) | – |
| End of the year | – | 204 |
| During the year, the company disposed of its entire interest in Aquarius | ||
| Platinum South Africa (Proprietary) Limited | ||
| Silplat (Proprietary) Limited | ||
| Transfer from available-for-sale financial investments (note 2) | 15 | – |
| Acquisition of additional shareholding | 9 | – |
| Fair value write off | (24) | – |
| End of the year | – | – |
| Total investment in associates | 680 | 873 |
2.Available-for-sale financial assets | ||
| Investment in listed shares | ||
| Comprise shares in the following listed company | ||
| Aquarius Platinum Limited | ||
| Beginning of the year | 1 543 | 746 |
| Fair value gains transferred to equity | 650 | 797 |
| Disposal of investment (note 6) | (2 193) | – |
| End of the year | – | 1 543 |
| During the year, the company disposed of its entire interest of 7 141 966 shares in Aquarius Platinum Limited, which amounted to approximately 8.6% of the issued share capital of that company. | ||
| Investment in unlisted shares | ||
| Silplat (Proprietary) Limited | ||
| Beginning of the year | 15 | 15 |
| Transferred to investment in associates (note 1) | (15) | – |
| End of the year | – | 15 |
| Total available for sale financial assets | – | 1 558 |
3.Other receivables and prepayment | ||
| Loans to BEE Companies | 40 | 40 |
| Non-current | ||
| Loans granted to Tubatse Platinum (Pty) Limited, Marula Community Trust and Mmakau Platinum Mining (Pty) Ltd in terms of a BEE transaction. The loan is repayable on approval and adoption by the board of directors of Marula Platinum (Pty) Limited of a feasibility study on any aspect and/or portion of the non-cash producing portion of the Marula Mine. | ||
4.Deferred income tax | ||
| Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. | ||
| Deferred tax assets and liabilities are attributable to the following items: | ||
| Deferred tax assets | ||
| Deferred tax asset to be recovered within 12 months | 357 | – |
| Deferred tax liabilities | ||
| Deferred tax liability to be recovered within 12 months | – | (190) |
| Deferred tax assets/(liabilities) – net | 357 | (190) |
| There are no unrecognised temporary differences in the company (2007: nil) | ||
| Deferred income taxes are calculated at the prevailing tax rates of the different fiscal authorities where the asset or liability originates. | ||
| The movement on the deferred income tax account is as follows: | ||
| Beginning of the year | (190) | (74) |
| Charge to income statement (note 9) | 357 | – |
| Charge from/(to) equity | 190 | (116) |
| End of the year | 357 | (190) |
| Deferred tax assets and liabilities are attributable to the following items: | ||
| Deferred tax liabilities | ||
| Market value adjustment of listed investments | – | (190) |
| Deferred tax assets | ||
| Secondary tax on companies credit | 351 | – |
| Other | 6 | – |
| 357 | (190) | |
5.Share capital | ||
| The authorised share capital of the holding company is as follows: | ||
| 844 008 000 (2007: 844 008 000) ordinary shares with a par value of 2.5 cents each | 21 | 21 |
| The issued share capital of the holding company is as follows: | ||
| R millions | Number of shares issued | Ordinary shares | Share premium | Share based payment reserve | Total |
| Balance at 30 June 2006 | 538 | 14 | 880 | 83 | 977 |
|---|---|---|---|---|---|
| Issued to the share option scheme | 2 | - | 113 | - | 113 |
| Issued to the employee share ownership programme | 16 | - | 2 615 | - | 2 615 |
| Issued to the Royal Bafokeng Nation | 75 | 2 | 12 482 | - | 12 484 |
| Share issue cost | - | - | (18) | - | (18) |
| Cost of equity compensation plan | - | - | - | 17 | 17 |
| BEE compensation charge | - | - | - | 1 790 | 1 790 |
| Balance at 30 June 2007 | 631 | 16 | 16 072 | 1 890 | 17 978 |
| Issued to the share option scheme | 1 | - | 41 | - | 41 |
| Cost of equity compensation plan | - | - | - | 5 | 5 |
| Balance at 30 June 2008 | 632 | 16 | 16 113 | 1 895 | 18 024 |
| (All amounts in rand millions unless otherwise stated) | 2008 | 2007 | |
|---|---|---|---|
6.Profit on sale of investments | |||
| Sale of investment in Aquarius Platinum (South Africa) | |||
| (Proprietary) Limited | |||
| Proceeds from disposal of investment in associates | 3 509 | – | |
| Disposal of investment in associates (note 1) | (2) | – | |
| Profit on sale of investment in associates | 3 507 | – | |
| Sale of investment in Aquarius Platinum (Proprietary) Limited | |||
| Proceeds from disposal of available for sale financial asset | 2 193 | – | |
| Transaction costs | (10) | – | |
| Carrying value of available-for-sale financial asset (note 2) | (2 193) | – | |
| Net gains transferred from equity | 2 164 | – | |
| Total profit on sale of investment | 2 154 | – | |
| Sale of an additional 4.5% of Marula Platinum (Pty) Ltd | |||
| Proceeds from disposal of investment in subsidiary | 221 | – | |
| Cost of shares | (37) | – | |
| Profit on sale of investment in subsidiary | 184 | – | |
| Profit on sale of investments | 5 845 | – | |
7.Other (expenses) / income | |||
| Net foreign exchange transaction losses | (69) | (15) | |
| Corporate costs | (37) | (12) | |
| Other expenses | (11) | (29) | |
| Exploration expenditure | (42) | (30) | |
| (159) | (86) | ||
8.Finance income | |||
| Interest income – associate (note 14) | 74 | 58 | |
| South African Revenue Service | 2 | – | |
| 76 | 58 | ||
| Dividend received – investments | 64 | 15 | |
| Dividend received – subsidiaries | 6 345 | 3 170 | |
| 6 485 | 3 243 | ||
9.Income tax | |||
| Current tax | |||
| South Africa company tax | 51 | 18 | |
| Deferred tax (1) | (357) | – | |
| (306) | 18 | ||
| (1) | The Secondary Tax on Companies credit represents the future tax benefit on dividends received that will realise when future dividends are declared. | ||
The tax of the group's profit differs as follows from the theoretical charge that would arise using the basic tax rate for South African companies:
| 2008 % | 2007 % | |
|---|---|---|
| Normal tax rate for companies | 28.0 | 29.0 |
| Adjusted for: | ||
| Exempt income | (14.6) | (29.1) |
| Non taxable income | (13.4) | – |
| Capital gains tax | 0.3 | – |
| Other | (2.8) | 0.5 |
| Average effective tax rate | (2.5) | 0.4 |
During the current year, a reduction in the South African Corporate Tax rate was effected from 29% to 28%.
| (All amounts in rand millions unless otherwise stated) | 2008 | 2007 |
|---|---|---|
10.Profit before taxation | ||
| The following disclosure items have been charged in arriving at profit before tax: | ||
| Auditors' remuneration | ||
| Fees for audit services | 1 | 1 |
| Professional fees | 10 | 28 |
11.Dividends per share | ||
| At the board meeting on 28 August 2008, a final dividend in respect of 2008 of 1 175 cents per share amounting to R7 109 million was approved. The Secondary Tax on Companies (STC) on the dividend will amount to R711 million, before taking the deferred tax asset into account. | ||
| These financial statements do not reflect this dividend and related STC payable. The dividend will be accounted for in shareholders' equity as an appropriation of retained earnings in the year ending 30 June 2009. | ||
| Dividends paid | ||
| Final dividend No. 79 for 2007 of 700 (2006: 700) cents per share | 4 237 | 1 452 |
| Interim dividend No 80 for 2008 of 300 (2007: 275) cents per share | 1 818 | 1 660 |
| 6 055 | 3 112 | |
12.Contingent liabilities and guarantees | ||
| Guarantees | ||
| At year end the company had contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise. | ||
| Related party contingencies | ||
| Two Rivers Platinum (Pty) Ltd | 57 | 325 |
| Marula BEE parties | 813 | 468 |
| Zimbabwe Platinum Mines (Pvt) Ltd | 404 | – |
| Department of Minerals and Energy | 391 | 293 |
| Total guarantees | 1 665 | 1 086 |
Contingencies | ||
| No compensation was received for the financial guarantees issued on behalf of Two Rivers Platinum (Pty) Ltd, the Marula BEE parties and Zimbabwe Platinum Mines (Pvt) Ltd, and as it had no material fair value on the date of issue, no liability was recognised. | ||
| The City of Johannesburg Metropolitan Council has proceeded with legal action against Impala Platinum Holdings Limited in respect of Regional Services Council levies, claiming an amount of R50 million. The company is of the opinion that this amount is not due and will defend the legal action. | ||
| (All amounts in rand millions unless otherwise stated) | 2008 | 2007 |
|---|---|---|
13.Cash generated from operations | ||
| Reconciliation of net profit to cash generated from operations: | ||
| Profit before tax | 12 171 | 3 157 |
| Adjustments for: | ||
| Fair value write off (note 1) | 24 | – |
| Interest income (note 8) | (76) | (58) |
| Dividend income (note 8) | (64) | (15) |
| Profit on sale of financial assets (note 6) | (5 845) | – |
| 6 210 | 3 084 | |
| Changes in working capital (excluding the effects of acquisition and | ||
| disposal of subsidiaries): | ||
| Trade and other receivables | 4 | (18) |
| Trade and other payables | (17) | 22 |
| Cash generated from operations | 6 197 | 3 088 |
14.Related party transactions | ||
| Loans to related parties | ||
| Loans to associates: | ||
| Interest received (note 8) | 74 | 58 |
| End of the year (group note 8 i) | 635 | 785 |
| Guarantees provided (note 12) | ||
| Subsidiaries (refer to Principal subsidiaries and joint venture) | ||
| No interest were levied or paid to subsidiaries. | ||
The aggregate number of share options granted to key management (directors and key management) is disclosed in the Directors' Report.
The company manages its risk on a group-wide basis. Refer to note 2 in the consolidated financial statements.
No debtors are past due. Credit risk mostly relates to group companies and is therefore limited.
The company does not have any significant creditors.
| (All amounts in rand millions unless otherwise stated) | Issued share | Effective group interest % | Book value in holding company Shares | Loans | |||
|---|---|---|---|---|---|---|---|
| capital | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |
| Company and description | |||||||
| Impala Holdings Limited | 18 019 | 11 522 | |||||
| Investment holding company | |||||||
| Impala Platinum Limited | * | 100 | 100 | ||||
| Mines, refines and markets PGMs | |||||||
| Impala Platinum Investments (Pty) Ltd | * | 100 | 100 | ||||
| Impala Platinum Properties (Rustenburg) (Pty) Ltd | * | 100 | 100 | ||||
| Impala Platinum Properties (Johannesburg) (Pty) Ltd | * | 100 | 100 | ||||
| Own properties | |||||||
| African Platinum Ltd (1) | |||||||
| Owns mineral rights and platinum mine | |||||||
| development | £46.6m | 74 | 74 | 4 155 | 4 157 | 755 | 774 |
| Barplats Holdings (Pty) Ltd | * | 100 | 100 | 68 | 68 | (358) | (360) |
| Investment holding company | |||||||
| Gazelle Platinum Limited | * | 100 | 100 | 235 | 235 | ||
| Investment holding company | |||||||
| Impala Refining Services Limited | * | 100 | 100 | ||||
| Provides toll refining services | |||||||
| Impala Platinum Japan Limited (2) | ¥ 10m | 100 | 100 | 2 | 2 | – | – |
| Marketing representative | |||||||
| Impala Platinum Zimbabwe (Pty) Ltd | * | 100 | 100 | 73 | 73 | 351 | 351 |
| Investment holding company | |||||||
| Impala Platinum BV (4) | 0.02 | 100 | – | 900 | |||
| Investment holding company | |||||||
| Zimplats Holdings Limited** (3) | US$ 10.8m | 87 | 87 | 900 | |||
| Owns mineral rights and mines PGMs | |||||||
| Zimbabwe Platinum Mines (Pvt) Limited (6) | US$30.1m | 87 | 87 | ||||
| Owns mineral rights and mines PGMs | |||||||
| Mimosa Investments Limited (5) | US$48.0m | 50 | 50 | 376 | 376 | ||
| Investment holding company | |||||||
| Mimosa Holdings (Pvt) Ltd (6) | US$28.8m | 50 | 50 | ||||
| Investment holding company | |||||||
| Mimosa Platinum (Pvt) Ltd (6) | US$28.8m | 50 | 50 | ||||
| Owns mineral rights and mines PGMs | |||||||
| Marula Platinum (Pty) Ltd | * | 73 | 78 | 607 | 644 | 607 | 684 |
| Owns mineral rights and mines PGMs | |||||||
| Sundry and dormant companies | * | 100 | 100 | 4 | 4 | 0 | |
| Total | 6 185 | 6 224 | 19 609 | 13 206 | |||
| Total investment at cost | 25 794 | 19 430 | |||||
| * Share capital less than R50 000 | |||||||
| ** Listed on the Australian Securities Exchange | |||||||
| 1 Incorporated in United Kingdom | 4 Incorporated in Netherlands | ||||||
| 2 Incorporated in Japan | 5 Incorporated in Mauritius and is a joint venture | ||||||
| 3 Incorporated in Guernsey | 6 Incorporated in Zimbabwe | ||||||
Implats - Annual Report 2008
| Forward-looking statements