- Approvals
- Directors’ report
- Consolidated financial statements
- Principal subsidiaries and joint venture
- Report of the independent auditors
- Remuneration report
- Company financial statements
Company financial statements
- Statement of financial position
- Income statement
- Statement of total comprehensive income
- Statement of changes in equity
- Cash flow statement
- Notes to the company annual financial statements
1 Basis of preparation and accounting policies
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.
For the year ended 30 June
| R millions | 2009 | 2008 |
|---|---|---|
2 Investment in associates | ||
| Associates | ||
| Two Rivers Platinum (Proprietary) Limited (group note 8(i)) | ||
| Beginning of the year | 680 | 669 |
| (Repayment)/advance to shareholder's loan | (96) | 11 |
| End of the year | 584 | 680 |
| Aquarius Platinum (South Africa) (Proprietary) Limited (group note 8(ii)) | ||
| Beginning of the year | – | 204 |
| Repayment of shareholders loan | – | (160) |
| Repayment of capital | – | (42) |
| Disposal of investment | – | (2) |
| End of the year | – | – |
| During the 2008 financial year, the group disposed of its entire | ||
| interest in Aquarius Platinum (South Africa) (Proprietary) Limited. | ||
| Silplat (Proprietary) Limited | ||
| Transferred from available-for-sale financial assets (note 3) | – | 15 |
| Acquisition of additional shareholding | – | 9 |
| Fair value write off | – | (24) |
| End of the year | – | – |
| Total investments in associates | 584 | 680 |
3 Available-for-sale financial assets | ||
| Investment in listed shares | ||
| Comprises shares in the following listed company | ||
| Aquarius Platinum Limited | ||
| Beginning of the year | – | 1 543 |
| Fair value gains transferred to equity | – | 650 |
| Disposal of investment (note 8) | – | (2 193) |
| End of the year | – | – |
| During the 2008 financial year, the group disposed of its entire | ||
| interest of 7 141 966 shares in Aquarius Platinum Limited. | ||
| Investment in unlisted shares | ||
| Silplat (Proprietary) Limited | ||
| Beginning of year | – | 15 |
| Transferred to investment in associates (note 2) | – | (15) |
| – | – | |
4 Receivables and prepayments | ||
| Loans to BEE companies | ||
| Non-current | 40 | 40 |
| Loans granted to Tubatse Platinum (Pty) Limited, Marula Community Trust and Mmakau Platinum Mining (Pty) Limited 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. | ||
5 Deferred tax assets | ||
| 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 are attributable to the following items: | ||
| Deferred tax assets to be recovered within 12 months | – | 357 |
| There are no unrecognised temporary differences in the company (2008: nil) | ||
| Deferred income taxes are calculated at the prevailing tax rates of the different fiscal authorities where the asset of liability originates. | ||
| The movement on the deferred income tax account is as follows: | ||
| Beginning of the year | 357 | (190) |
| Charge to the income statement (note 11) | (357) | 357 |
| Charge to equity | – | 190 |
| End of the year | – | 357 |
| Deferred tax assets are attributable to the following items: | ||
| Secondary tax on companies credit | – | 351 |
| Unrealised foreign currency losses | – | 6 |
| – | 357 | |
6 Share capital | ||
| The authorised share capital of the holding company is as follows: | ||
| 844 008 000 (2008: 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 2007 | 631 | 16 | 16 072 | 1 890 | 17 978 |
| Issued to the share option scheme | 0 | - | 41 | - | 41 |
| Cost of equity compensation plan | - | - | - | 5 | 5 |
| Balance at 30 June 2008 | 631 | 16 | 16 113 | 1 895 | 18 024 |
| Share issue expenses | - | (1) | (1) | ||
| Cost of equity compensation plan | 0 | 0 | |||
| Balance at 30 June 2009 | 631 | 16 | 16 112 | 1 895 | 18 023 |
| R millions | 2009 | 2008 |
|---|---|---|
7 Fees payable to Bakwena Ba Mogopa | ||
| Raised in the current year | 34 | – |
| Transferred to current | (3) | – |
| Non-current | 31 | – |
| Future payments (eight annual payments of R7.5 million) were fair valued using a discount rate of 13%. The discount will be unwound at the same rate. | ||
8 Profit on sale of investments | ||
| Sale of investment in Aquarius Platinum (South Africa) (Proprietary) Limited | ||
| Proceeds from disposal of investment in associate | – | 3 509 |
| Disposal of investment in associates (note 2) | – | (2) |
| Profit on sale of investment in associate | – | 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 3) | – | (2 193) |
| Net gains transferred from equity | – | 2 164 |
| Profit on sale of investment | – | 2 154 |
| Sale of an additional 4.5% of Marula Platinum (Proprietary) Limited | ||
| Proceeds from disposal of investment in subsidiary | – | 221 |
| Cost of shares | – | (37) |
| Profit on sale of investment in subsidiary | – | 184 |
| Profit on sale of investment | – | 5 845 |
9 Finance income | ||
| Interest income (note 15) | 75 | 74 |
| South African Revenue Services | 0 | 2 |
| 75 | 76 | |
| Dividend received – investments | 0 | 64 |
| Dividend received – subsidiaries | 654 | 6 345 |
| 729 | 6 485 | |
10 Other income/(expense) | ||
| Net foreign exchange transaction gains (losses) | 39 | (69) |
| Guarantee fees | 39 | – |
| Corporate costs | (17) | (37) |
| Other expenses | (19) | (11) |
| Exploration expenditure | (56) | (42) |
| (14) | (159) | |
11 Income tax expense | ||
| Current tax | ||
| South African company tax | ||
| Non-mining | 35 | 51 |
| Prior year over provision | (2) | - |
| 33 | 51 | |
| STC | 452 | - |
| Deferred tax (1) | ||
| Income statement charge | 357 | (357) |
| Tax for the year | 842 | (306) |
| (1) The Secondary Tax on Companies credit represents the future tax benefit on dividends received that realised when dividends were declared. | ||
| The tax on the group's profit differs as follows from the theoretical charge that would arise using the basic tax rate for South African companies: |
| % | % | |
|---|---|---|
| Normal tax rate for companies | 28.0 | 28.0 |
| Adjusted for: | ||
| Exempt income | (20.0) | (14.6) |
| Non-taxable income | (5.8) | (13.4) |
| Capital gains tax | - | 0.3 |
| STC(credits)/STC credits utilised | 49.1 | - |
| STC paid | 63.3 | - |
| Other | 3.2 | (2.8) |
| Average effective tax rate | 117.8 | (2.5) |
| R millions | 2009 | 2008 |
|---|---|---|
12 Profit before tax | ||
| The following disclosure items have been charged in arriving at profit before tax: | ||
| Auditors' remuneration | ||
| Fees for audit | 1 | 1 |
| Professional fees | 18 | 10 |
| Foreign exchange gain/(loss) | 39 | (69) |
13 Dividends per share | ||
| At the board meeting on 27 August 2009, a board sub-committee declared a final dividend in respect of 2009 of 200 cents per share amounting to R1.2 billion. The STC on the dividend will amount to R120 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 2010. | ||
| Dividends paid | ||
| Final dividend No. 81 for 2008 of 1175 (2007: 700) cents per share | 7 412 | 4 237 |
| Interim dividend No 82 for 2009 of 120 (2008: 300) cents per share | 757 | 1 818 |
| 8 169 | 6 055 | |
14 Contingent liabilities and guarantees | ||
| Guarantees | ||
| At year-end the group 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 (Proprietary) Limited | 64 | 70 |
| Marula BEE parties | 817 | 813 |
| Zimbabwe Platinum Mines (Pvt) Limited | 849 | 404 |
| Department of Minerals and Energy | 397 | 391 |
| Total guarantees | 2 127 | 1 678 |
15 Cash generated from operations | ||
| Reconciliation of net profit to cash generated from operations: | ||
| Adjustment to profit before tax: | ||
| Foreign exchange gain | (39) | - |
| Fair value write off (note 2) | - | 24 |
| Interest income (note 9) | (75) | (76) |
| Dividend income (note 9) | (654) | (64) |
| Profit on sale of financial assets (note 8) | - | (5 845) |
| (768) | (5 961) | |
| Changes in working capital (excluding the effects of acquisition and disposal of subsidiaries): | ||
| Trade and other receivables | 52 | 4 |
| Trade and other payables | 2 | (17) |
| Cash from changes in working capital | 54 | (13) |
16 Related party transactions | ||
| The following transactions were carried out with related parties: | ||
| Loans to related parties | ||
| Advances to associates (refer note 2) | ||
| Guarantees provided (note 14) | ||
| Subsidiaries (refer to Principal subsidiaries and joint venture) | ||
| No interest were levied or paid to subsidiaries. | ||
| Share options granted to directors | ||
| The aggregate number of share options granted to key management (directors and key management) is disclosed in the Directors' Report. | ||
17 Financial risk management | ||
| The company manages its risk on a group-wide basis. Refer to note 2 in the consolidated financial statements. | ||
| Credit risk | ||
| No debtors are past due. Credit risk mostly relates to group companies and is therefore limited. | ||
| Liquidity risk | ||
| The company does not have any significant creditors. |