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Year ended 30 June | |
| | (All amounts in rand million unless otherwise stated) | 2005 | 2004 | |
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| 1 | Investments in subsidiaries, associates and joint venture | | | |
| | | | | |
| | Associates | 861.5 | 1,046.7 | |
| | Subsidiaries and joint venture (Annexure A) | 1,119.7 | 1,093.6 | |
| | | 1,981.2 | 2,140.3 | |
| | Associates | | | |
| | At cost | | | |
| | | | | |
| | Zimbabwe Platinum Mines (Private) Limited (formerly Makwiro Platinum Mines (Private) Limited) | – | 247.0 | |
| | Two Rivers Platinum (Proprietary) Limited | 399.1 | 316.8 | |
| | Aquarius Platinum (South Africa) (Proprietary) Limited | 462.4 | 482.9 | |
| | Total investments in associates | 861.5 | 1,046.7 | |
| | | |
| 2 | 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. The offset amounts are as follows: | | | |
| | | | | |
| | Deferred tax (liability)/assets: | | | |
| | – Deferred tax asset to be recovered after more than 12 months | (4.0) | 9.4 | |
| | | | | |
| | 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: | |
| | | | | |
| | At the beginning of the year | 9.4 | – | |
| | Tax (charge)/credit to equity
(Note 7) | (13.4) | 9.4 | |
| | Net deferred tax (liability)/assets at the end of the year | (4.0) | 9.4 | |
| | | |
| 3 | Available-for-sale financial investments | |
| | | |
| | Investments in listed shares | |
| | Comprise shares in the following listed company | |
| | | |
| | Aquarius Platinum Limited | |
| | | | | |
| | Beginning of the year | 171.7 | 229.7 | |
| | Exchange differences | 38.7 | (27.7) | |
| | Share price movement | 51.3 | (30.3) | |
| | End of the year | 261.7 | 171.7 | |
| | | | | |
| | During the year, the group maintained its strategic shareholding in Aquarius Platinum Limited, holding 7,141,966 shares (2004: 7,141,966) which amounts to approximately 8.6% (2004: 8.6%) of the issued share capital of that company. The shares are listed on the Australian Stock Exchange and the London Stock Exchange. The fair value of these shares as at the close of business on 30 June 2005 by reference to stock exchange quoted prices and closing exchange rates was R261.7 million (2004: R171.7 million). | | | |
| | | |
| | Investment in unlisted shares | |
| | Shares beneficially owned in the undermentioned concern at fair value: | | | |
| | Silplat (Proprietary) Limited | 14.7 | 14.7 | |
| | | 276.4 | 186.4 | |
| | | | | |
| 4 | Trade and other receivables | | | |
| | Other receivables | 88.8 | 8.4 | |
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| 5 | Cash and cash equivalents | |
| | | | | |
| | For the purposes of the cash flow statement, the cash and cash equivalents comprise cash and bank balances. | 0.0 | 0.0 | |
| | | | | |
| 6 | Share capital | |
| | | | | |
| | Authorised amount | 20.0 | 20.0 | |
| | | | | |
| | The total authorised ordinary share capital comprise 100 million (2004: 100 million) shares with a par value of 20 cents each. All issued shares are fully paid. | | | |
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Year ended 30 June | |
| | (All amounts in rand million unless otherwise stated) | 2005 | 2004 | |
| | | | | | |
| | | | |
| 7 | Other reserves | |
| | | |
| | Fair value adjustment investments | |
| | | | | |
| | Balance 1 July 2003 | 200.6 | 393.4 | |
| |
Revaluation – gross (Note 3) | (48.6) | (192.8) | |
| | Balance 30 June 2004 | 152.0 | 200.6 | |
| |
Revaluation – gross (Note 3) | 90.0 | (58.0) | |
| |
Revaluation – tax (Note 2) | (13.4) | 9.4 | |
| | Balance 30 June 2005 | 228.6 | 152.0 | |
| | | |
| 8 | Trade and other payables | |
| | | | | |
| | Trade payables | 26.1 | 10.2 | |
| | | |
| 9 | Other expenses | |
| | | | | |
| | Exploration expenditure | (6.4) | (8.9) | |
| | Restructuring of investment in associate | (2.1) | – | |
| | Provision for write-down of investment in subsidiary | (248.2) | – | |
| | Professional fees | (6.2) | (26.0) | |
| | Net foreign exchange transaction gains | 0.9 | – | |
| | Other | (7.3) | (8.7) | |
| | | (269.3) | (43.6) | |
| | | |
| 10 | Other gains | |
| | | |
| | Other gains consist of the following principal categories: | |
| | Interest income | 1.8 | 26.2 | |
| | Dividends received – investments | 0.7 | 2.8 | |
| | Dividends received – subsidiaries | 1,456.4 | 1,455.2 | |
| | | 1,458.9 | 1,484.2 | |
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| 11 | Profit before tax | |
| | | |
| | The following items have been charged in arriving at profit before tax: | |
| | | |
| | Auditors' remuneration | |
| |
Fees for audit services | 0.5 | 0.3 | |
| | Professional fees | 6.2 | 26.0 | |
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| 12 | Income tax expense | |
| | | |
| | Current tax | |
| | Charge for the year | 1.3 | 7.5 | |
| | | | | |
| | The tax of the company's profit differs as follows from the theoretical charge that would arise using the basic tax rate: | | | |
| | | % | % | |
| | Normal tax rate for companies | 29.0 | 30.0 | |
| | Adjusted for: |
| | Disallowable expenditure | 6.6 | 0.8 | |
| | Exempt income | (35.5) | (30.3) | |
| | Effective tax rate | 0.1 | 0.5 | |
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| 13 | Dividends per share | |
| | | | | |
| | At the Board meeting on 26 August 2005, a final dividend in respect of 2005 of 1,800 cents per share amounting to a total dividend of R1,203.2 million was approved. Secondary Tax on Companies
(STC) on the dividend will amount to R150.4 million. | | | |
| | | | | |
| | 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 2006. | | | |
| | | | | |
| | Dividends paid | | | |
| | | | | |
| | Final dividend No. 73 for 2004 of 1,600 (2003: 1,750) cents per share | 1,065.8 | 1,165.4 | |
| | Interim dividend No. 74 for 2005 of 500 (2004: 500) cents per share | 333.4 | 332.6 | |
| | | 1,399.2 | 1,498.0 | |
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| 14 | Cash generated from operations | |
| | | |
| | Reconciliation of net profit to cash generated from operations: | |
| | | | | |
| | Profit | 1,188.3 | 1,433.1 | |
| | | |
| | Adjustments for: | |
| | Income tax expense
(Note 12) | 1.3 | 7.5 | |
| | Interest income
(Note 10) | (1.8) | (26.2) | |
| | Dividend income
(Note 10) | (0.7) | (2.8) | |
| | | |
| | Changes in working capital: | |
| | Trade and other receivables | (80.4) | 34.2 | |
| | Trade and other payables | 15.9 | 7.1 | |
| | Cash generated from operations | 1,122.6 | 1,452.9 | |
