Annual Report 2008

Non-GAAP disclosure

The group utilises certain Non-GAAP 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 for, 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 other companies use.

For the year ended 30 June
  Unaudited
(All amounts in rand millions unless otherwise stated)Group note20082007

1 Revenue per platinum ounce sold

   
US dollar sales 5 1404 375
US dollar toll refining income (25)(45)
  5 1154 330
    
Sales volumes platinum (refer to operational statistics) 1 7391 827
    
Dollar sales revenue per platinum ounce sold 2 9412 369
Average rand exchange rate achieved 7.327.20
Rand sales revenue per platinum ounce sold 21 52817 057
    

2 Cost per platinum ounce refined

   
On-mine operations247 3035 901
Concentrating and smelting operations241 4781 316
Concentrating operations 1 035936
Smelting operations 443380
Refining operations24670594
Other operating expenses21533478
  9 9848 289
*    Mine-to-market platinum ounces 1 2381 242
**  Gross platinum ounces 1 9072 026
    
On-mine operations* 5 8994 751
Concentrating operations* 836754
Smelting operations** 232187
Refining operations** 352293
Other operating expenses* 431385
Group unit cost per platinum ounce 7 7506 370
Share-based payments  
On-mine operations* 850440
Refining operations** 8441
Other operating expenses* 10891
  1 042572
Cost per platinum ounce excluding share-based payments  
On-mine operations* 5 2124 396
Concentrating operations* 836754
Smelting operations** 232187
Refining operations** 307273
Other operating expenses* 343311
  6 9305 921

3 Normalised headline earnings

   
Headline earnings3512 4857 232
BEE compensation charge291 790
  12 4859 022
    
Weighted average number of ordinary shares in issue (millions)16604.70551.40
    
Normalised earnings – cent per share2 0651 636

4 Gross margin profit

  
Gross profit17 73114 472
Gross revenue37 61931 482
    
Gross margin profit – %4746

5 Net profit margin

  
Profit attributable to owners of the parent17 5967 232
Gross revenue37 61931 482
    
Net profit margin attributable to equity holders – %4723

6 EBITDA

   
Profit before taxation 22 81711 220
Finance income27(689)(642)
Finance cost2815582
Depreciation and amortisation331 013865
EBITDA (Earnings before interest, tax and depreciation) 23 29611 525
Depreciation and amortisation33(1 013)(865)
EBIT (Earnings before interest and tax) 22 28310 660
Non-recurring/unusual transactions   
BEE compensation charge291 790
Adjustment of headline earnings35(5 111) 
  17 17212 450

7 Interest cover

   
EBIT – adjusted for non-recurring transactionsNon Gaap note 617 17212 450
Finance costs2815582
Rehabilitation obligation – unwinding of the discount28(20)(22)
Future commitments – unwinding of discount28(10)(5)
  12555
Interest cover – times 137226

8 Dividend cover

   
Normalised headline earningsNon Gaap note 32 0651 636
Dividends per share 1 475975
Dividend cover – times 1.41.7

9 Return on equity

   
Headline earnings3512 4857 232
Shareholders’ equity per statement of financial position –   
at the beginning of the year 32 96813 839
Return on equity – % 3852

10 Return on capital employed

   
Headline earnings3512 4857 232
Finance costs2815582
  12 6407 314
Capital employedNon Gaap note 1245 30334 698
Return on net capital – % 2821

11 Return on assets

   
Headline earnings3512 4857 232
Non current assets 39 60537 202
    
Return on non current assets – % 3219

12 Capital employed

   
Total assets per statement of financial position 62 10949 960
Current liabilities per balance sheet (8 547)(8 528)
  53 56241 432

13 Total capital

   
Total equity 45 30334 698
Total borrowings 1 510718
  46 81335 416

14 Cash net of debt

   
Long-term borrowings17(1 464)(685)
Short-term borrowings17(46)(33)
Total borrowings (1 510)(718)
Cash and cash equivalents1410 3933 222
Cash net of debt 8 8832 504

15 Gearing ratio

   
Total borrowings 1 510718
Total capitalNon Gaap note 1346 81335 416
    
Total gearing – % 3.22.0

16 Debt to equity

   
Total borrowings171 510718
Shareholders’ equity per statement of financial position at the end of the year45 30334 698
Total debt to ordinary shareholders equity – % 3.32.1

17 Current ratio

   
Current assets 22 50412 758
Current liabilities 8 5478 528
    
Current assets to current liabilities – :1 2.61.5

18 Acid ratio

   
Current assets 22 50412 758
Inventories12(5 893)(3 998)
  16 6118 760
Current liabilities 8 5478 528
    
Current assets excluding inventories to current liabilities – :1 21

19 Current liquidity

   
Current assets 22 50412 758
Current liabilities (8 547)(8 528)
Net current assets 13 9574 230
Inventory12(5 893)(3 998)
  8 064232

20 Free cash flow

   
Net cash inflow from operating activities per cash flow 11 2419 973
Total capital expenditure (5 291)(2 810)
  5 9507 163

21 Net asset value – cents per share

   
Net asset value per statement of financial position 43 41832 968
Number of shares issued outside the group16605.0604.1
    
Net asset value – cents per share 7 1775 457
    
Total number of ordinary shares in issue consists of:   
631 578 772 (2007: 630 899 228) ordinary shares   

22 Net tangible asset value –cents per share

   
Net asset value per statement of financial position 43 41832 968
Intangible assets7(1 018)(1 020)
  42 40031 948
Number of shares 605.0604.1
Net tangible asset value – cents per share 7 0085 289

23 Market capitalisation

   
Number of ordinary shares in issue at year-end (millions) 631.600630.900
Closing share price as quoted on the JSE (Rand) 309216
Market capitalisation (Rand million) 195 164136 274

24 Segment information

June 2008 – unaudited
(All amounts in rand millions
unless otherwise stated)
ImpalaMarulaZimplatsMimosaAfplatsTotal mining segment
Segment profit      
Revenue from:      
 Platinum12 0877741 107424 14 392
 Palladium1 17318520480 1 642
 Rhodium5 179795444140 6 558
 Nickel1 50628238234 2 006
 Other metal sales9444513980 1 208
Revenue20 8891 8272 132958 25 806
 On-mine operations(5 860)(591)(669)(183) (7 303)
 Processing operations(1 057)(101)(152)(52) (1 362)
 Refining operations(476) (476)
 Treatment charge(2)(43) (45)
 Amortisation(691)(83)(208)(31) (1 013)
 (Increase)/decrease in metal inventories7391912 770
Cost of sales(7 345)(777)(1 010)(297) (9 429)
       
Gross profit13 5441 0501 122661 16 377
       
Other operating expenses(426)(48)(33) (507)
Royalty expense(548)(36)(41)(23) (648)
Profit from operations12 5701 0141 033605 15 222
Other income/(expense)1736(61)(71)136183
Profit/(loss) from metals purchased54 54
Profit before tax12 7971 02097253413615 459
Income tax expense(4 275)(265)(153)(17)25(4 685)
Profit for the year8 52275581951716110 774

24 Segment information

June 2007 – unaudited
(All amounts in rand millions
unless otherwise stated)
ImpalaMarulaZimplatsMimosaAfplatsTotal mining segment
Segment profit      
Revenue from:      
 Platinum9 573489734344 11 140
 Palladium1 06814417372 1 457
 Rhodium4 061494323105 4 983
 Nickel1 75840408246 2 452
 Other metal sales941465976 1 122
Revenue17 40112131697843 21 154
 On-mine operations(4 798)(472)(496)(142) (5 908)
 Processing operations(918)(100)(154)(39) (1 211)
 Refining operations(377)    (377)
 Treatment charge (2) (44) (46)
 Amortisation(594)(76)(162)(32) (864)
 (Increase)/decrease in metal inventories44 43(3) 84
Cost of sales(6 643)(650)(769)(260) (8 322)
       
Gross profit10 758563928583 12 832
       
Other operating expenses(385) (30)(29) (444)
Royalty expense(1 624)(29)(31)(19) (1 703)
Profit from operations8 74953486753510 685
Other income/(expense)263(23)(22)7(9)216
Profit from metal purchased39    39
BEE compensation charge(1 790)    (1 790)
Profit before tax7 261511845542(9)9 150
Income tax expense(3 067)(113)(129)(23)(3 332)
Profit for the year4 194398716519(9)5 818

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Implats - Annual Report 2008

 | Forward-looking statements