Annual Report 2007
Non-GAAP disclosure

Non-GAAP information


Year ended 30 June
(All amounts in rand millions unless otherwise stated)Group note 20072006
The group utilises certain Non-GAAP (Generally Accepted Accounting Procedures) performance measures and ratios in managing the business and may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or cash flow from operations or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures used by other companies. 
1Revenue per platinum ounce sold    
 US dollar sales  4,374.82,745.2
 US dollar toll refining income  (45.3)(21.8)
    4,329.52,723.4
      
 Sales volumes platinum (refer to operational statistics)  1,827.2221,582.101
 Dollar sales revenue per platinum ounce refined   2,369.41,721.4
 Average rand exchange rate achieved  7.206.37
 Rand sales revenue per platinum ounce sold  17,059.710,965.3
2Cost per platinum ounce refined    
 On-mine operations23 5,900.74,708.6
 Concentrating and smelting operations24 1,315.81,129.6
   Concentrating operations  936.4772.0
   Smelting operations  379.4357.6
 Refining operations25 594.1523.4
 Other operating expenses27 478.0340.0
    8,288.66,701.6
 Mine-to-market platinum ounces (1)  1,242.11,284.4
 Gross platinum ounces (2)  2,026.21,846.3
   On-mine operations (1)  4,750.63,666.0
   Concentrating operations (1)  753.9601.1
   Smelting operations (2)  187.2193.7
   Refining operations (2)  293.2283.5
   Other operating expenses (1)  384.8264.7
 Group unit cost per platinum ounce  6,369.75,009.0
 Share-based payments    
   On-mine operations (1)  440.074.8
   Refining operations (2)  41.120.1
   Other operating expenses (1)  91.464.5
    572.5159.4
 Cost per platinum ounce excluding share-based payments    
   On-mine operations (1)  4,396.33,607.8
   Concentrating operations (1)  753.9601.1
   Smelting operations (2)  187.2193.7
   Refining operations (2)  272.9272.6
   Other operating expenses (1)  311.1214.5
    5,921.44,889.7
(1) Refers to costs incurred at Implats’ mine-to-market operations.
(2) Refers to costs incurred at the smelter and refining operations to produce gross refined platinum.
3Normalised headline earnings    
 Headline earnings36 7,231.83,946.5
 BEE compensation charge  1,790.095.3
    9,021.84,041.8
 Weighted average number of ordinary shares in issue (millions)15 551.400526.148
 Normalised earnings - cent per share  1,636768
4Gross margin profit    
 Gross profit  14,472.07,330.3
 Gross revenue  31,481.517,500.2
 Gross margin profit – %  46.041.9
5Net profit margin    
 Profit attributable to equity holders of the company  7,232.24,341.9
 Gross revenue  31,481.517,500.2
 Net margin profit attributable to equity holders – %  23.024.8
6EBITDA    
 Profit before taxation  11,220.06,996.1
 Net finance cost  (530.5)(346.3)
   Interest received32 (612.4)(425.3)
   Interest paid33 81.979.0
 Depreciation and amortisation34 865.7644.9
 EBITDA (Earnings before interest, taxation and depreciation)  11,555.27,294.7
   Depreciation and amortisation34 (865.7)(644.9)
 EBIT (Earnings before interest and taxation)  10,689.56,649.8
 Non-recurring/unusual transactions    
   BEE compensation charge31 1,790.095.3
   Reversal of impairment of assets5  (583.1)
    12,479.56,745.1
7Interest cover    
 EBIT – adjusted for non-recurring transactionsNon-GAAP note 6 12,479.56,745.1
 Finance costs33 81.979.0
 Rehabilitation obligation – unwinding of the discount20 (22.1)(18.1)
    59.860.9
 Interest cover – times  209111
8Dividend cover    
 Normalised headline earningsNon-GAAP note 3 1,636768
 Dividends per share per the income statement (excluding special dividend)  975400
 Dividend cover  1.71.9
9Return on equity    
 Headline earnings36 7,231.83,946.5
 Shareholders’ equity per balance sheet - at the beginning of the year  13,839.914,103.6
 Return on equity – %  52.328.0
10Return on capital employed (normalised)    
 Headline earnings36 7,231.83,946.5
 Interest paid33 81.979.0
    7,313.74,025.5
 Capital employedNon-GAAP note 12 41,322.517,708.9
 Return on net capital – %  17.722.7
11Return on assets    
 Headline earnings36 7,231.83,946.5
 Non-current assets per balance sheet  37,200.615,083.9
 Return on non-current assets – %  19.426.2
12Capital employed    
 Non-current assets  37,200.615,083.9
 Current assets  12,757.68,386.0
    49,958.223,469.9
 Current liabilities  (8,635.7)(5,761.0)
    41,322.517,708.9
13Cash net of debt    
 Borrowings – long-term portion17 (685.6)(174.0)
 Borrowings – short-term portion17 (32.1)(27.8)
 Total borrowings  (717.7)(201.8)
 Cash and cash equivalents13 3,221.91,864.4
 Cash net of short term borrowings  2,504.21,662.6
14Debt to equity    
 Borrowings – long-term portion17 685.6174.0
 Borrowings – short-term portion17 32.127.8
    717.7201.8
 Shareholders’ equity per balance sheet at the end of the year  34,699.214,054.8
 Total debt to ordinary shareholders equity – %  2.11.4
15Current ratio    
 Current assets  12,757.68,386.0
 Current liabilities  8,635.75,761.0
 Current assets to current liabilities – :1  1.51.5
16Acid ratio    
 Current assets  12,757.68,386.0
 Inventories11 (3,997.4)(2,936.0)
    8,760.25,450.0
 Current liabilities  8,635.75,761.0
 Current assets excluding inventories to current liabilities – :1  1.00.9
17Current liquidity    
 Current assets  12,757.68,386.0
 Current liabilities  (8,635.7)(5,761.0)
 Net current assets  4,121.92,625.0
 Inventory11 (3,997.4)(2,936.0)
    124.5(311.0)
18Free cash flow    
 Net cash inflow from operating activities per cash flow  9,936.04,918.8
 Total capital expenditure  (2,810.2)(2,176.7)
    7,125.82,742.1
19Net asset value – cents per share    
 Net asset value per balance sheet  34,699.214,054.8
 Weighted average number of ordinary shares (millions) issued outside the group15 630.9553.9
 Net asset value – cents per share  5,5002,538
 Total number of ordinary shares in issue consists of:    
 630,899,228 (2006: 553,876,920) ordinary shares    
20Net tangible asset value – cents per share    
 Net asset value per balance sheet15 34,699.214,054.8
 Intangible assets6 (1,020.2)
    33,679.014,054.8
 Weighted average number of ordinary shares (millions) issued outside the group  630.9553.9
 Net tangible asset value – cents per share  5,3382,538
21Market capitalisation    
 Number of ordinary shares in issue at year-end (millions)  630.899553.877
 Closing share price as quoted on the JSE (Rand)  216.00164.98
 Market capitalisation (Rand million)  136,274.291,378.6


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Non-GAAP disclosure

Impala Platinum Holdings Limited — Annual Report 2007