TIDMTHS
RNS Number : 1823F
Tharisa PLC
16 May 2017
THARISA PLC
Incorporated in the Republic of Cyprus with limited
liability
Registration number: HE223412
JSE share code: THA
LSE share code: THS
ISIN: CY0103562118
Tharisa 2017
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 31 MARCH 2017
CORPORATE INFORMATION
THARISA PLC TRANSFER SECRETARIES
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Incorporated in the Republic Computershare Investor Services
of Cyprus with limited liability Proprietary Limited
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Registration number: HE223412 Registration number: 2004/003647/07
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JSE share code: THA Rosebank Towers, 15 Biermann
Avenue, Rosebank
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LSE share code: THS Johannesburg 2196
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ISIN: CY0103562118 (PO Box 61051, Marshalltown
2107)
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South Africa
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REGISTERED ADDRESS
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Cymain Registrars Limited
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Office 108 - 110 Registration number: HE174490
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S. Pittokopitis Business Centre 26 Vyronos Avenue
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17 Neophytou Nicolaides and 1096 Nicosia
Kilkis Streets
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8011 Paphos Cyprus
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Cyprus
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JSE SPONSOR
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POSTAL ADDRESS
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Investec Bank Limited
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PO Box 62425 Registration number: 1969/004763/06
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8064 Paphos 100 Grayston Drive
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Cyprus Sandown, Sandton 2196
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(PO Box 785700 Sandton 2146)
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WEBSITE South Africa
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www.tharisa.com
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AUDITORS
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DIRECTORS
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KPMG Limited (Cyprus)
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Loucas Christos Pouroulis Registration number: HE132527
(Executive Chairman)
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Phoevos Pouroulis (Chief Executive 14 Esperidon Street
Officer)
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Michael Gifford Jones (Chief 1087 Nicosia
Finance Officer)
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John David Salter (Lead Independent Cyprus
Non-executive Director)
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Antonios Djakouris (Independent
Non-executive Director)
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Omar Marwan Kamal (Independent JOINT BROKERS
Non-executive Director)
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Carol Bell (Independent Non-executive
Director)
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Joanna Ka Ki Cheng (Non-executive Peel Hunt LLP
Director)
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Moore House
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JOINT COMPANY SECRETARIES 120 London Wall
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EC 2Y 5ET
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Lysandros Lysandrides England
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26 Vyronos Avenue Contact: Matthew Armitt/Ross
Allister
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1096 Nicosia +44 207 7418 8900
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Cyprus
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BMO Capital Markets Limited
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Sanet de Witt 95 Queen Victoria Street
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The Crossing London
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372 Main Road EC4V 4HG
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Bryanston, Johannesburg 2021 England
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South Africa Contact: Jeffrey Couch/Neil
Haycock/Thomas Rider
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Email: secretarial@tharisa.com +44 020 7236 1010
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INVESTOR RELATIONS FINANCIAL PUBLIC RELATIONS
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Sherilee Lakmidas Buchanan
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The Crossing 100 Cheapside
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372 Main Road London
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Bryanston, Johannesburg 2021 EC2V 6DN
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South Africa England
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Email: ir@tharisa.com Contact: Bobby Morse/Anna
Michniewicz
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+44 020 7466 5000
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MISSION
To maximise shareholder returns through innovative exploitation
of mineral resources in a responsible manner
INTRODUCTION
Tharisa is an integrated resource group incorporating mining and
the processing, beneficiation, marketing, sales and logistics of
PGM and chrome concentrates
VALUES
- The safety and health of our people is a priority
- We take responsibility for the effect that our operations may
have on the environment
- We are committed to the upliftment of our local
communities
- We conduct ourselves with integrity and honesty
- We strive to achieve superior returns for our shareholders
- We originate new opportunities and will continue to challenge
convention through innovation
STRATEGIC INITIATIVES
- Implementation of optimisation initiatives to maximise value
extraction
- Growth through innovative research and development
- To generate value by becoming a globally significant low-cost
producer of strategic commodities
- Leveraging off the established platform for expansion into
multi-commodities with geographic diversity
- Capital discipline with an annual dividend policy of 10% of
NPAT and capital allocation to low risk projects
HIGHLIGHTS H1 FY2017
REEF MINED Up 3.8% to 2.45 Mt (2016: 2.36 Mt)
PGM PRODUCTION (5PGE+Au) Up 15.2% to 69.1 koz (2016: 60.0
koz)
CHROME CONCENTRATE PRODUCTION Up 5.4% to 636.8 kt (2016: 604.4
kt)
Including production of 152.5 kt of higher
margin chemical and foundry grade
concentrates (2016: 105.8 kt)
REVENUE Up 103.6% to US$175.1m (2016: US$86.0m)
OPERATING PROFIT Up 559.4% to US$69.9m (2016: US$10.6m)
EBITDA Up 451.0% to US$81.0m (2016: US$14.7m)
PROFIT BEFORE TAX Up 1 417.8% to US$68.3m (2016: US$4.5m)
HEADLINE EARNINGS PER SHARE Up 1 500.0% to US$ 16 cents (2016:
US$ 1 cent)
NET CASH GENERATED FROM OPERATIONS Up 142.9% to US$44.2m (2016:
US$18.2m)
GROUP STATISTICS
Unit H1 FY2017 H1 FY2016 Change
----------------------- ------------------------ -------------- ------------- ---------
Reef mined kt 2 449.1 2 358.6 3.8%
----------------------- ------------------------ -------------- ------------- ---------
m3 waste:
Stripping ratio m3 reef 8.4 6.8 23.5%
----------------------- ------------------------ -------------- ------------- ---------
Reef milled kt 2 417.7 2 197.0 10.0%
----------------------- ------------------------ -------------- ------------- ---------
PGM flotation feed kt 1 783.0 1 708.1 4.4%
----------------------- ------------------------ -------------- ------------- ---------
PGM rougher feed
grade g/t 1.54 1.68 (8.3%)
----------------------- ------------------------ -------------- ------------- ---------
5PGE+Au
PGM ounces produced koz 69.1 60.0 15.2%
----------------------- ------------------------ -------------- ------------- ---------
PGM recovery % 78.3 65.0 20.5%
----------------------- ------------------------ -------------- ------------- ---------
Average PGM basket
price US$/oz 760 686 10.8%
----------------------- ------------------------ -------------- ------------- ---------
Average PGM basket
price ZAR/oz 10 306 10 448 (1.4%)
----------------------- ------------------------ -------------- ------------- ---------
Cr2O3 ROM grade % 17.5 18.4 (4.9%)
----------------------- ------------------------ -------------- ------------- ---------
Chrome recovery % 63.4 62.8 1.0%
----------------------- ------------------------ -------------- ------------- ---------
Chrome yield % 26.3 27.5 (4.4%)
----------------------- ------------------------ -------------- ------------- ---------
Chrome concentrates
produced kt 636.8 604.4 5.4%
----------------------- ------------------------ -------------- ------------- ---------
Metallurgical grade kt 484.3 498.6 (2.9%)
----------------------- ------------------------ -------------- ------------- ---------
Specialty grades kt 152.5 105.8 44.1%
----------------------- ------------------------ -------------- ------------- ---------
Metallurgical grade
chrome concentrate
----------------------- ------------------------ -------------- ------------- ---------
US$/t CIF
contract price China 278 106 162.3%
----------------------- ------------------------ -------------- ------------- ---------
Metallurgical grade
chrome concentrate
----------------------- ------------------------ -------------- ------------- ---------
ZAR/t CIF
contract price China 3 783 1 562 142.2%
----------------------- ------------------------ -------------- ------------- ---------
Average exchange
rate ZAR:US$ 13.6 15.0 (9.3%)
----------------------- ------------------------ -------------- ------------- ---------
Group revenue US$ million 175.1 86.0 103.6%
----------------------- ------------------------ -------------- ------------- ---------
Gross profit US$ million 82.4 21.1 290.5%
----------------------- ------------------------ -------------- ------------- ---------
Net cash flows from
operating activities US$ million 44.2 18.2 142.9%
----------------------- ------------------------ -------------- ------------- ---------
Net profit for the
period US$ million 51.1 3.1 1 548.4%
----------------------- ------------------------ -------------- ------------- ---------
EBITDA US$ million 81.0 14.7 451.0%
----------------------- ------------------------ -------------- ------------- ---------
Headline earnings
per share US$ cents 16 1 1 500.0%
----------------------- ------------------------ -------------- ------------- ---------
Gross profit margin % 47.0 24.6 91.1%
----------------------- ------------------------ -------------- ------------- ---------
EBITDA margin % 46.3 17.1 170.8%
----------------------- ------------------------ -------------- ------------- ---------
Net debt US$ million 7.0 30.9 (77.3%)
----------------------- ------------------------ -------------- ------------- ---------
Capital expenditure* US$ million 8.5 6.4 32.8%
----------------------- ------------------------ -------------- ------------- ---------
Debt to total equity
ratio** % 13.0 24.2 (46.3%)
----------------------- ------------------------ -------------- ------------- ---------
Net debt to total
equity ratio** % 2.7 17.8 (84.8%)
----------------------- ------------------------ -------------- ------------- ---------
* Includes deferred stripping of US$nil million (2016: US$3.1
million)
** Net of the debt service reserve account
INTERIM MANAGEMENT REPORT
DEAR SHAREHOLDER
Tharisa has demonstrated its potential of being a strong cash
generative business supported by a marked increase in chrome
concentrate prices underpinned by solid operational performance. In
the six months ended 31 March 2017, the Group, through its low cost
co-production business model, delivered stable operational and
excellent financial results.
The Group reported a profit before tax of US$68.3 million for
the interim period with net cash flows from operating activities of
US$44.2 million, an improvement of 142.9%, resulting in a headline
earnings per share of US$ 16 cents (H1 FY2016: US$ 1 cent).
Production milestones included:
- reef mining exceeded the steady state required run rate of 4.8
Mt on an annualised basis
- mill throughput performing at nameplate design capacity of 400
ktpm
- improved PGM recoveries to 78.3%, an increase of 20.5%, and an
increase in chrome recoveries of 1.0%
- increased specialty chrome production from 17.5% to 23.9% of
total chrome concentrate production
The unprecedented increase in chrome concentrate prices,
delivered to China within the last 12 months, reaching highs of
US$390/t, was welcomed by a chrome industry that has experienced
suppressed prices since 2011. Prices soared while liquidity from
end-users, consumers and traders was limited, impacting the ability
to sell forward and even execute on bulk sales at these levels. The
average metallurgical grade chrome concentrate price for the
six-month period was US$278/t, an increase of 162.3% relative to
the comparable period. Platinum prices continued to remain under
pressure, however, the basket price of PGMs was supported by higher
palladium and rhodium prices. The average PGM basket price (on a
5PGE+Au basis) for the six-month period was US$760/oz, an increase
of 10.8% relative to the comparable period.
Tharisa's continued focus on optimisation yielded positive
production results with a 15.2% increase in production of PGM
contained metal on a 5PGE+Au basis of 69.1 koz and a 5.4% increase
in chrome concentrate production of 636.8 kt. Of the chrome
concentrate production, specialty grade production increased by
44.1% to 152.5 kt.
Safety remains a top priority and Tharisa continues to strive
for zero harm at its operations. Tharisa achieved a Lost Time
Injury Frequency Rate (LTIFR) of 0.17 per 200 000 man hours worked
at 31 March 2017. This is among the lowest LTIFRs in the PGM and
chrome industries in South Africa. Tharisa continues to implement
appropriate risk management processes, strategies, systems and
training to promote a safe working environment for all.
Tharisa continues to strengthen its competitive position,
benefiting from the shallow open pit and large-scale co-production
of PGMs and chrome concentrates.
OPERATIONAL OVERVIEW
MINING
31 March 31 March
------------- ------- ----------- ------------ ----------
Unit 2017 2016 Change
------------- ------- ----------- ------------ ----------
Reef mined kt 2 449.1 2 358.6 3.8%
------------- ------- ----------- ------------ ----------
Reef milled kt 2 417.7 2 197.0 10.0%
------------- ------- ----------- ------------ ----------
The Tharisa Mine is unique in that it mines multiple mineralised
layers with different, but defined, PGM and chrome contents. The
mine is a large-scale open pit with a life of mine of up to 18
years and the potential to extend the mine by a further 40 years by
mining underground.
During the six months under review, 2.4 Mt of ore at an average
grade of 1.54 g/t PGMs on a 5PGE+Au basis and 17.5% chrome was
mined. Nameplate processing capacity is 4.8 Mtpa of ROM with
planned annual production for FY2017 of 147.4 koz of PGMs and 1.33
Mt of chrome concentrates. Tharisa has achieved the required mining
run rate for five consecutive quarters.
The focus on opening up access to the full mining strike length
and the benefits of maintaining the correct multi-reef layer
profile are being realised and this contributed to providing stable
feed grades for processing.
Over the last 18 months, Tharisa has been insourcing a number of
mining functions and increased its supervision and specialist
skills in anticipation of gearing up towards an owner mining
operational model. The change in operating model is the logical
progression given the long life of the open pit mine.
Tharisa has commenced the transition to an owner mining
operational model. Subsequent to the reporting period, Tharisa has
reached agreement with its current contractor, MCC Contracts
Proprietary Limited (MCC), to purchase the requisite fleet from MCC
and to employ the employees currently in service at the Tharisa
Mine.
The transition will allow Tharisa to take direct control over
its mining operations, eliminating the contractor's risk premiums
and profit margins. By controlling the reef grades, Tharisa can
deliver improved quality ore to the processing plants, thereby
optimising the feed and recovery within the plants. Over the longer
term this should allow for the reduction in mining costs and
improve the recovery and production of PGMs and chrome
concentrates. Tharisa expects the transition in operating model to
be completed within FY2017.
PROCESSING
Tharisa has two processing plants, the Genesis and Voyager
standalone concentrator plants, which have a combined nameplate
capacity of 400 ktpm ROM. The Genesis Plant incorporates the
Challenger Plant on the feed circuit for the extraction of
specialty grade chrome concentrates principally from natural
fines.
During the six-month period, 2.4 Mt of reef was processed
through the two plants producing 69.1 koz of contained PGMs on a
5PGE+Au basis and 636.8 kt of chrome concentrates. Of the 636.8 kt
of chrome concentrates produced, 152.5 kt or 23.9% of total chrome
concentrate production was specialty grade chrome concentrates, up
from 17.5% for the comparable period.
Plant throughput achieved the combined nameplate capacity of the
plants.
Overall PGM recovery was at 78.3%, an improvement of 20.5% on
the H1 FY2016 PGM recovery of 65.0%, and demonstrates the benefits
of stability in the plant feed grades and the increase in competent
ores being processed with a lower feed of "weathered" ore. The
target recovery is 80.0%.
The average chrome recovery across all plants was 63.4%, a 1.0%
improvement from the 62.8% recovery recorded for H1 FY2016 and
bringing chrome recoveries within reach of the 65.0% target.
There are a number of optimisation initiatives currently being
implemented while others are being evaluated with a focus on
improving chrome recoveries and increasing PGM recoveries even
further. The primary spiral replacement programme at the Genesis
Plant will be completed within FY2017 and should improve stability
and recovery within this plant. The PGM flotation upgrade within
the Genesis Plant is under way with high-energy flotation
mechanisms combined with additional cleaner capacity being
installed.
The benefits of these two initiatives should be seen
in FY2018.
COMMODITY MARKETS AND SALES
31 March 31 March
--------------- ------- --------- ---------- -------
Unit 2017 2016 Change
--------------- ------- --------- ---------- -------
PGM basket
--------------- ------- --------- ---------- -------
price US$/oz 760 686 10.8%
--------------- ------- --------- ---------- -------
PGM basket
--------------- ------- --------- ---------- -------
price ZAR/oz 10 306 10 448 (1.4%)
--------------- ------- --------- ---------- -------
42%
--------------- ------- --------- ---------- -------
metallurgical
--------------- ------- --------- ---------- -------
grade chrome
--------------- ------- --------- ---------- -------
concentrate
--------------- ------- --------- ---------- -------
contract
--------------- ------- --------- ---------- -------
price - CIF US$/t 278 106 162.3%
--------------- ------- --------- ---------- -------
42%
--------------- ------- --------- ---------- -------
metallurgical
--------------- ------- --------- ---------- -------
grade chrome
--------------- ------- --------- ---------- -------
concentrate
--------------- ------- --------- ---------- -------
contract price
--------------- ------- --------- ---------- -------
- CIF ZAR/t 3 783 1 562 142.2%
--------------- ------- --------- ---------- -------
Both PGM and chrome concentrate commodity prices have improved
compared to the first six months of the last financial year. The
average US$ PGM contained metal basket price increased by 10.8% and
metallurgical grade chrome concentrate prices significantly
improved by 162.3%, from the low point in the market seen last year
of US$81/t. The ZAR strengthened by 9.3% relative to the US$ during
the period, impacting on ZAR commodity pricing received by Tharisa
Minerals.
The platinum price has remained flat over the period while
palladium remains above the US$750/oz mark and rhodium has
continued to increase, reaching levels just above US$1 000/oz. The
increase in the PGM basket price is attributed to the increased
palladium and rhodium prices.
The metallurgical grade chrome concentrate market is showing
signs of weakness in price and liquidity, which was to be expected
following the rapid increase in prices. The South African
producers' supply discipline has resulted in excess stocks building
up through-out the pipeline with the Chinese users having slowed
production and sourcing materials from existing stocks and
alternate sources.
The demand for chrome concentrate is driven by the increasing
demand for stainless steel, which fundamentally remains robust. In
2016, global stainless steel production increased by 10.2% year on
year and China achieved a record melt shop production of 24.9 Mt
(15.7% increase year on year), according to the International
Stainless Steel Forum. The increase in Chinese supply of stainless
steel is largely attributed to increased domestic demand.
Chinese port stocks continued to be restocked from critically
low levels seen in August 2016 and reached levels of approximately
2.0 Mt in April 2017. With domestic Chinese requirements of
approximately 1.0 Mtpm, this equates to eight weeks' supply.
The fundamentals of the global stainless steel market remain
sound with continued growth expected in 2017, further supporting
demand for chrome units in the form of ferrochrome and chrome
ores.
PGM production continued to be sold to Impala Refining Services
under the off-take agreement and a total of 69.3 koz was sold
during the period. The Tharisa Mine's PGM prill split is
significant in terms of platinum content at 54.6%, with palladium
and rhodium contributions of 16.3% and 9.7%, respectively.
Tharisa prill 31 March 31 March
split by
--------------- --------------- -----------
mass % 2017 2016
--------------- --------------- -----------
Platinum 54.6 56.1
--------------- --------------- -----------
Palladium 16.3 15.7
--------------- --------------- -----------
Rhodium 9.7 9.5
--------------- --------------- -----------
Gold 0.2 0.2
--------------- --------------- -----------
Ruthenium 14.3 13.9
--------------- --------------- -----------
Iridium 4.9 4.4
--------------- --------------- -----------
Chrome concentrate sales for the period totalled 502.4 kt an
increase of 4.3% compared to H1 FY2016 (2016: 481.7 kt).
However, inventory levels increased during the period by 19.4%
as at end March 2017.
LOGISTICS
31 March 31 March
------------- ------- ------------ --------- -------
Unit 2017 2016 Change
------------- ------- ------------ --------- -------
Average
------------- ------- ------------ --------- -------
transport
costs
------------- ------- ------------ --------- -------
per tonne
------------- ------- ------------ --------- -------
of chrome
------------- ------- ------------ --------- -------
concentrate
-
------------- ------- ------------ --------- -------
CIF main
ports
------------- ------- ------------ --------- -------
China basis US$/t 50.0 40.0 25.0%
------------- ------- ------------ --------- -------
The chrome concentrate destined for main ports in China is
shipped either in bulk from the Richards Bay Dry Bulk Terminal or
via containers from Johannesburg and transported by road to Durban
from where it is shipped. The economies of scale and in-house
expertise have ensured that Tharisa's transport costs, a major cost
to the Group, remained competitive.
China remains the main market for metallurgical grade chrome
concentrate and 360.2 kt of chrome concentrate produced by the
Tharisa Mine was sold to China on a CIF main ports basis. The
majority was shipped in bulk with a negligible quantity being
shipped in containers. Specialty grade chrome concentrate sales
were 142.2 kt for the period.
Negotiations over a planned public private partnership with
Transnet for an on-site railway siding at the Tharisa Mine
continue.
FINANCIAL OVERVIEW
There were a number of key financial highlights for the interim
period:
Firstly, the all in sustaining cost(1) per Pt ounce was negative
at (US$1 123) (i.e. this assumes that the Group is a pure platinum
producer thereby off-setting the credits from the chrome
concentrate sales and receipts from the other platinum group basket
metals) compared to the comparable period cost of US$402/Pt oz and
similarly if one assumed the Group to be a pure metallurgical grade
chrome concentrate producer the all in sustaining cost
delivered
on a CIF main ports China basis per tonne was US$88/t compared
to the comparable period of US$85/t. This positions the Group
firmly in the lowest cost production quartile for both PGM and
chrome producers.
(1)Calculated as the sum of the operating costs, administrative
expenses and capital expenditure less the "by-product" credits.
Secondly, the Group generated positive net cash flows from
operating activities of US$44.2 million compared to the comparable
period of US$18.2 million.
Thirdly, there was a significant reduction in interest-bearing
debt with interest bearing debt as at 31 March 2017 totalling
US$38.4 million, resulting in a debt to total equity ratio of
14.8%. By off-setting the balance in the debt service reserve
account of US$4.8 million, the debt to total equity ratio is
reduced to 13.0%.
This performance was achieved in a period of a global recovery
in commodity prices with the Group benefiting particularly from the
recovery in chrome concentrate prices. There was, however, a
strengthening of the ZAR, being the cost base currency for the
Group's mining operations in South Africa, with the ZAR
strengthening from ZAR15.0 to ZAR13.6 against the US$, an average
strengthening of 9.3%, impacting on the overall cost base of the
Group.
Subsequent to the reporting period, South Africa's foreign debt
was downgraded to sub-investment grade impacting on its currency
and reversing the strengthening trend (although the downgrade was
considered to be priced into the currency). Interest rates are also
expected to increase going forward. The Group's commodities are
priced in US$ and the cost base is mainly in ZAR and therefore the
Group is positioned as a Rand hedge stock.
Group revenue totalled US$175.1 million of which US$40.0 million
was derived from the sale of PGM concentrates and US$135.1 million
was derived from
the sale of chrome concentrates. This is an increase of 103.6%
relative to the comparable period revenue of US$86.0 million. The
strong recovery in commodity prices and particularly the chrome
concentrate price, which increased from an average of US$106/t (on
a CIF main ports China basis) to US$278/t for metallurgical grade
chrome concentrate, was on the back of demand fundamentals for
stainless steel and a restocking of port stocks in China.
There has been no non-recurring or exceptional income sources
during the interim period.
Against the increased revenue, the gross profit increased from
US$21.1 million to US$82.4 million with the gross profit percentage
increasing from 24.6% to 47.0%.
The allocation of shared costs of production for segmental
reporting purposes was revised for the current period taking into
account the relative contribution to revenue on an ex-works basis
and, in accordance with the accounting policy of the Group and
IFRS, the allocation was amended to 75% for the chrome segment and
25% for the PGM segment. The comparable period shared costs were
allocated on an equal basis.
The increase in the gross profit was notwithstanding an increase
of 25% in the average transport costs for transporting the
metallurgical grade chrome concentrate from the mine to main ports
in China. This on the back of suppressed freight prices during H1
2016. The major constituents of the on-mine cash cost of sales are
depicted in the graph below:
Mining 50.3%
--------------------- ----------------
Utilities 6.0%
--------------------- ----------------
Reagents 2.5%
--------------------- ----------------
Steel balls 4.5%
--------------------- ----------------
Labour 9.6%
--------------------- ----------------
Diesel 12.1%
--------------------- ----------------
Overheads and other 15.0%
--------------------- ----------------
The mining is currently outsourced to a mining contractor. The
diesel cost, however, should be considered part of the overall
mining cost. The mining contractor labour cost is included in
"mining" as Tharisa pays on a per cube mined basis.
The mining cost per reef tonne mined for the period was US$19.5
(2016: US$15.7). This may be attributed in part to the increased
stripping ratio of 8.4 (on a m3: m3 basis), which is more in line
with the life of the open pit stripping ratio of 9.7, compared to
the comparable period stripping ratio of 6.8, and the strengthening
of the ZAR over the period.
After accounting for administrative expenses of US$12.5 million
(2016: US$10.7 million) the Group achieved an operating profit of
US$69.9 million (2016: US$10.6 million). There was a significant
increase in the equity settled share-based payment expense included
in the administrative expenses which increased from US$1.0 million
to US$2.2 million following the recovery in the share price of
Tharisa. This share-based payment expense relates to the long-term
incentive plan and share appreciation right scheme for employees of
the Group and is limited to 5% of issued share capital as per the
rules of the scheme.
The Group's cost base is mainly in ZAR (other than for selling
and freight expenses) and where the Group benefited from a
weakening ZAR in the comparable period, the ZAR strengthened in the
current period thereby negating the benefits of operating in an
"emerging market" weak currency environment. The ZAR strengthened
from ZAR15.0 to ZAR13.6 against the US$, an average strengthening
of 9.3%.
EBITDA amounted to US$81.0 million (2016: US$14.7 million).
The consolidated cost per tonne milled excluding selling
expenses was US$34.0 (2016: US$28.7). The increase in cost per
tonne milled may be attributed in part to the increased mining cost
and the impact of the strengthening of the ZAR on the cost
base.
As a consequence of the strengthening ZAR, finance income, which
includes foreign currency movements on working capital amounts,
increased to US$4.0 million.
Finance costs principally relate to the senior debt facility
secured by Tharisa Minerals for the construction of the Voyager
Plant and the expansion of the mining footprint. Project completion
as defined in the contractual terms of the senior debt facility was
achieved on 14 November 2016 and the interest rate was reduced by
150 basis points to JIBAR plus 340 basis points.
The tax charge amounted to US$17.3 million, an effective tax
rate of 25.3%, of which US$1.9 million was cash tax paid. The Group
has fully utilised its tax losses. As at the period-end the Group
had unredeemed capex for tax purposes of US$99.3 million. The net
deferred tax liability
totalled US$18.2 million.
Profit for the period amounted to US$51.0 million (2016: US$3.1
million).
Foreign currency translation differences for foreign operations,
arising where Tharisa has funded the underlying subsidiaries with
US$ denominated funding and the reporting currency of the
underlying subsidiary is not in US$, amounted to a favourable
US$5.4 million (2016: charge of US$9.0 million) following the
strengthening of the ZAR.
Basic and diluted earnings per share for the period were US$0.16
(2016: US$0.01).
No dividends are proposed for the interim period as it is the
policy of Tharisa to declare and pay an annual dividend of at least
10% of consolidated net profit after tax.
Following shareholder approval and the obtaining of the
necessary Cypriot court approvals and lodgement of the requisite
documentation with the Cyprus Registrar of Companies, the share
premium of Tharisa was reduced by an amount of US$179.6 million
which was credited to revenue reserves. This allows Tharisa to
return an amount of US$2.6 million or US$ 1 cent per share to
shareholders. The amount due to shareholders will be paid during
the third quarter of FY2017.
Interest-bearing debt as at 31 March 2017 totalled US$38.4
million, resulting in a debt to total equity ratio of 14.8%.
Following the achievement of project completion, the senior debt
providers agreed that the Group reduce the amount held in the debt
service reserve account to be equal to one quarter's debt repayment
with the amount being released applied as a mandatory prepayment.
Off-setting the balance in the debt service reserve account of
US$4.8 million, reduces the debt to total equity ratio to 13.0%.
The long-term targeted debt to total equity ratio is 15.0%.
The Group complied with the senior debt facility financial
covenants as at 31 March 2017.
Inventories on hand at 31 March 2017 increased to US$36.4
million with finished goods, principally chrome concentrates,
contributing US$25.6 million of this amount.
There has been an improvement in the working capital position
with the current ratio improving to 2.0 times.
During the interim period, the Group generated net cash from
operations of US$44.2 million (2016: US$18.2 million). Additions to
plant and equipment totalled US$8.5 million (2016: US$6.4 million).
The depreciation charge was US$8.4 million (US$4.6 million).
Cash on hand amounted to US$26.6 million. In addition, the Group
holds US$4.8 million in a debt service reserve account.
SUBSEQUENT EVENTS
Subsequent to the reporting period, with effect from 17 April
2017, as an integral part of the transition to an owner mining
model, Tharisa purchased four interburden and reef rock drills and
drilling equipment from a drilling sub-contractor for a purchase
consideration of ZAR24.4 million. The 53 on-site employees of the
drilling sub-contractor were transferred to Tharisa.
In addition, Tharisa has subsequent to the reporting period,
subject to the fulfilment of certain conditions precedent which
includes, inter alia, regulatory approvals as well as MCC
shareholder approval, entered into a binding term sheet with MCC in
terms of which, inter alia, Tharisa will purchase certain
equipment, strategic components, site infrastructure and spares
from MCC for a purchase consideration of ZAR303.3 million. The 153
"yellow fleet" machines being purchased includes excavators, off
highway dump trucks, articulated dump trucks and support vehicles,
being substantially all of the equipment at the Tharisa Mine, as
well as 17 additional machines from another MCC site. In addition,
Tharisa will accept assignment in respect of leased equipment
comprising drill rigs, excavators and off highway dump trucks and
will continue to lease these 14 machines. The settlement amount for
the leased equipment as at 1 June 2017 is approximately ZAR100.2
million.
Approximately 900 on-site employees of MCC will be transferred
to Tharisa under section 197 of the Labour Relations Act.
The purchase consideration for the transaction will be settled
through a cash payment of ZAR250.0 million, the cession of the
lease obligations of approximately ZAR100.2 million, the deduction
of certain liabilities relating to the transfer of the employees
such as the leave pay provision and the deduction of costs that
have been incorporated into the mining rate to date, such as future
equipment de-mobilisation costs. The balance owing will be
paid in cash in six equal monthly instalments.
The purchase consideration will be funded by bridge financing
currently being arranged, OEM supplier financing, traditional
banking and available cash resources.
The successful conclusion of the agreement with MCC will result
in Tharisa achieving its objective of becoming an owner miner at
the Tharisa Mine, a logical progression in its development with the
long life of the open pit. The change in the operating model is
expected to have both cost and
operational benefits as well as providing financial flexibility,
thereby cementing Tharisa's low cost high margin position.
Tharisa has developed a long-term capital replacement strategy,
which will form part of the sustaining capital programme in the
ordinary course of business.
PRINCIPAL BUSINESS RISKS
Material risks to the Group are those that substantially affect
the Group's ability to create and sustain value in the short,
medium and long term. Material risks determine how the Group
devises and implements its strategy since each risk has the
potential to impact the Group's ability to achieve its strategic
objectives. Each risk also carries with it challenges and
opportunities. The Group's strategy takes into account known risks,
but risks may exist of
which the Group is currently unaware. An overview of the
material risks which could affect the Group's operational and
financial performance was included in the Group's 2016 annual
report which is available on the Group's website. The following
risks have been identified as having the potential to impact the
Group over the next six months.
Regulatory compliance
In April 2016, the South African Government released a draft
amendment to the Mining Charter for public comment. There is no
assurance that the Mining Charter will be adopted in its draft form
or be revised again to, inter alia, set new, higher or different
Historically Disadvantaged South Africans (HDSA) or Black Economic
Empowerment ownership targets, or that the definition of persons
who constitute HDSAs will not be changed or substituted. If there
is any future increase in HDSA ownership targets or any change or
substitution in the definition of HDSAs, the Group may have to
amend the ownership structure
of Tharisa Minerals in order to comply with the new
requirements. The Mining Charter was scheduled to be gazetted at
the end of March 2017, however, it has been delayed, with no
further information available on the estimated timetable and level
of review.
The Group is required to comply with a range of Health and
Safety Laws and Regulations in connection with its mining,
processing and on mine logistics activities. Regular inspections
are conducted by the Department of Mineral Resources to ensure
compliance. Any perceived violation of the Regulations could lead
to a temporary shutdown of all or a portion of the Group's mining
operations.
Political instability in South Africa
The political uncertainty and subsequent downgrades of the South
African credit ratings to sub-investment grade have resulted in
increased volatility in the exchange rate. The downgrades are
expected to lead to longer term interest rate increases and
inflationary pressures.
Tharisa is a Rand hedge company with sales being made in US$ and
the majority of the cost base being ZAR denominated. To mitigate
the longer term interest rate and inflationary pressure, Tharisa
will continue to focus on maintaining its targeted debt level
policy and manage its costs.
Labour unrest in South Africa
While labour relations are currently stable, the risk of
potential unrest remains, particularly with the current political
climate which may contribute to heightened labour and community
unrest regionally.
In 2015, the Group concluded a collective agreement with the
National Union of Mineworkers, the majority trade union at the
Tharisa Mine, which determined wage increases over the next three
years until June 2018.
MCC, the primary mining contractor, which negotiates wages
through the South African Forum of Civil Engineering Contractors,
is in the second of a three-year wage agreement, which determines
pay increases until September 2018. MCC's employees at the Tharisa
Mine are represented by the Association of Mineworkers and
Construction Union (AMCU).
Owner mining model
Subsequent to the reporting period, the Group has announced its
to transition to an owner miner model and that it has reached
agreement with its mining contractor to purchase certain fleet
(owned by the mining contractor) as well as transfer the on-site
employees to the Group. Such transition may have an impact on
mining as the employees are being transferred and certain of the
equipment needs to be mobilised to the site and demobilised from
the site. In
addition, additional fleet is planned to be acquired and the
availability and mobilisation of the equipment may impact on the
mining production.
The Group will also be required to finance the fleet purchase
which will impact on the gearing levels of the Group.
Tharisa, in the normal course of managing its mining operations,
has developed engineering and geological skills that are integral
to in-house mining. The fleet on site currently mines at the
required mine call rate and the employees are already skilled in
the operating procedures of the Tharisa Mine. In addition, there is
both an in-pit stock pile and ROM stock pile ahead of the plants to
mitigate against any short-term mining disruptions.
Unscheduled breakdowns
The Group's performance is reliant on the consistent production
of PGM and chrome concentrates from the Tharisa Mine. Any
unscheduled breakdown leading to a prolonged reduction in
production may have a material impact on the Group's financial
performance and results of operations.
Currency risk
The Group's reporting currency is US$. The Group's operations
are predominantly based in South Africa with a ZAR cost base while
the majority of the revenue stream is in US$ exposing the Group to
the volatility and movements in the currencies. Fluctuations in the
US$ and ZAR, which may be more volatile following the recent credit
rating downgrade of South Africa to sub-investment grade, may have
a significant impact on the performance of the roup.
Commodity prices
The Group's revenues, profitability and future rate of growth
depend on the prevailing market prices of PGMs and chrome. A
sustained downward movement in the market price for PGMs and/or
chrome may negatively affect the Group's profitability and cash
flows.
Financing and liquidity
The activities of the Group exposes it to a variety of financial
risks including market, commodity prices, credit, foreign exchange
and interest rate risks. The Group closely monitors and manages
these risks. Cash forecasts are regularly updated and reviewed
including sensitivity scenarios with reference to the above
risks.
BOARD APPOINTMENT
Brian Cheng, a non-executive director, retired by rotation at
the Annual General Meeting and did not make himself available for
re-election. The Board thanks Brian for the invaluable contribution
he has made to the Group.
Tharisa welcomed Brian Cheng's alternate director, Joanna Ka Ki
Cheng, as a non-executive director with effect from 1 February
2017.
OUTLOOK
Tharisa expects continued strong operational performance for the
remainder of the year with a focus on improving the ROM chrome feed
grades and continued improvement in recoveries for both PGM and
chrome concentrates. Tharisa remains on track to achieve production
of 147.4 koz of PGMs
(on a 5PGE+Au basis) and 1.3 Mt of chrome concentrates of which
0.3 Mt are specialty grade chrome concentrates for FY2017.
These interim results reinforce the Group's sustainable
competitive advantage of being a profitable co-producer of PGM and
chrome concentrates from a large-scale, long life open pit
operation. Having de-risked the business operationally and being
firmly positioned in the lowest cost quartile has allowed the Group
to maximise the benefit from buoyant commodity prices. The current
volatility within the chrome market is placing downward pressure
on
prices, however, Tharisa is competitively positioned to be
profitable throughout the cycle.
The planned transition to an owner mining model presents a
unique beneficial opportunity to Tharisa with its large-scale open
pit operation having an open pit life of 18 years.
Tharisa would like to thank its team and directors for their
continued support in achieving these interim results.
Apart from the IFRS reviewed condensed consolidated financial
statements prepared for submission to the JSE, the Group also needs
to prepare reviewed condensed consolidated financial statements for
Cyprus regulatory purposes which are in accordance with IFRS as
adopted by the EU. A number of new and revised IFRS standards and
interpretations have not yet been adopted by the EU while the Group
may elect to early adopt such interpretations and standards in
terms of IFRS. There are no numerical differences in this
regard.
STATEMENT BY THE MEMBERS OF THE BOARD OF DIRECTORS AND THE
COMPANY OFFICIALS RESPONSIBLE FOR THE DRAFTING OF THE CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS ACCORDING TO THE CYPRUS
SECURITIES AND EXCHANGE COMMISSION LEGISLATION
In accordance with sections 10(3)(c) and 10(7) of Law No.
190(I)/2007, as amended, providing for the transparency
requirements of issuers whose securities are admitted to trading on
a regulated market (the Transparency Law), we, the members of the
Board of Directors of Tharisa plc, responsible for the preparation
of the condensed consolidated interim financial statements of
Tharisa plc for the period ended 31 March 2017, hereby declare that
to the best of our knowledge:
a) the condensed consolidated interim financial statements for the period ended 31 March 2017:
- have been prepared in accordance with International Accounting
Standard 34: Interim Financial Reporting and as
stipulated for under section 10(4) of the Transparency Law,
and
- give a true and fair view of the assets and liabilities, the
financial position and profit or losses of Tharisa plc and its
undertakings, as included in the condensed consolidated interim
financial statements as a whole; and
b) the adoption of a going concern basis for the preparation of
the financial statements continues to be appropriate based
on the foregoing and having reviewed the forecast financial
position of the Group; and
c) the interim management report provides a fair review of the
information required by section 10(6) of the Transparency Law.
Loucas Pouroulis Executive Chairman
------------------- ---------------------------------------------
Phoevos Pouroulis Chief Executive Officer
------------------- ---------------------------------------------
Michael Jones Chief Finance Officer
------------------- ---------------------------------------------
David Salter Lead Independent Non-executive Director
------------------- ---------------------------------------------
Antonios Djakouris Independent Non-executive Director
------------------- ---------------------------------------------
Omar Kamal Independent Non-executive Director
------------------- ---------------------------------------------
Carol Bell Independent Non-executive Director
------------------- ---------------------------------------------
Joanna Ka Ki Cheng Non-executive Director
------------------- ---------------------------------------------
Paphos
15 May 2017
SUMMARISED PRODUCTION DATA
Quarter Quarter Quarter Half Half Financial
year year year
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
ended ended ended ended ended ended
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
31 31 December 31 March 31 March 31 March 30 September
March
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Unit 2017 2016 2016 2017 2016 2016
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Reef mined kt 1 219.2 1 229.9 1 234.2 2 449.1 2 358.6 4 837.2
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
m(3) waste:
m(3)
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Stripping
ratio reef 7.5 9.0 7.1 8.4 6.8 7.3
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Reef milled kt 1 211.3 1 206.4 1 199.6 2 417.7 2 197.0 4 656.3
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
PGM flotation
feed
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
tonnes kt 897.9 885.1 942.3 1 783.0 1 708.1 3 575.6
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
PGM rougher
feed
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
grade g/t 1.56 1.52 1.74 1.54 1.68 1.65
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
5PGE +Au
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
PGMs produced koz 34.3 34.8 36.0 69.1 60.0 132.6
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
PGM recovery % 76.2 80.5 68.5 78.3 65.0 69.9
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Average PGM
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
contained
metal
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
basket price US$/oz 783 740 685 760 686 736
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Average PGM
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
contained
metal
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
10
basket price ZAR/oz 355 10 287 10 849 10 306 10 448 10 881
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Cr2O3 ROM
grade % 17.5 17.5 18.3 17.5 18.4 18.0
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Chrome recovery % 62.5 64.3 63.9 63.4 62.8 62.7
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Chrome yield % 26.0 26.7 27.7 26.3 27.5 26.7
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Chrome
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
concentrates
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
produced kt 314.6 322.2 332.3 636.8 604.4 1 243.7
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Metallurgical
grade kt 239.2 245.1 259.9 484.3 498.6 974.3
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Specialty
grades kt 75.4 77.1 72.4 152.5 105.8 269.4
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Metallurgical
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
grade chrome
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
concentrate US$/t CIF
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
contract
price China 338 250 81 278 106 120
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Metallurgical
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
grade chrome
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
concentrate ZAR/t CIF
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
contract
price China 4 430 3 488 1 262 3 783 1 562 1 751
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
Average exchange
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
rate ZAR:US$ 13.2 13.9 15.8 13.6 15.0 14.8
------------------ ------------------- --------- ------------ ---------- ----------- ----------- --------------
INDEPENT AUDITORS' REVIEW REPORT ON INTERIM FINANCIAL STATEMENTS
TO THE SHAREHOLDERS OF THARISA PLC
TO THE SHAREHOLDERS OF THARISA PLC
We have reviewed the condensed consolidated financial statements
of Tharisa plc, on pages 16 to 33 contained in the accompanying
interim report, which comprise the condensed consolidated statement
of financial position as at 31 March 2017 and the condensed
consolidated statements of profit or loss and other comprehensive
income, changes in equity and cash flows for the six months then
ended, and selected explanatory notes.
BOARD OF DIRECTORS' RESPONSIBILITY FOR THE INTERIM FINANCIAL
STATEMENTS
The Board of Directors are responsible for the preparation and
presentation of these interim financial statements in accordance
with the International Accounting Standard, (IAS) 34 Interim
Financial Reporting, and for such internal control as the directors
determine is necessary to enable the preparation of interim
financial statements that are free from material misstatement,
whether due to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express a conclusion on these interim
financial statements. We conducted our review in accordance with
International Standard on Review Engagements (ISRE) 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity. ISRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the
interim financial statements are not prepared in all material
respects in accordance with the applicable financial reporting
framework. This standard also requires us to comply with relevant
ethical requirements.
A review of interim financial statements in accordance with ISRE
2410 is a limited assurance engagement. We perform procedures,
primarily consisting of making inquiries of management and others
within the entity, as appropriate, and applying analytical
procedures, and evaluate the evidence obtained.
The procedures performed in a review are substantially less than
and differ in nature from those performed in an audit conducted in
accordance with International Standards on Auditing. Accordingly,
we do not express an audit opinion on these financial
statements.
CONCLUSION
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying condensed consolidated
interim financial statements of Tharisa plc for the six months
ended 31 March 2017 are not prepared, in all material respects, in
accordance with IAS 34 Interim
Financial Reporting.
Michael M. Antoniades FCA
Certified Public Accountants and Registered Auditor
For and on behalf of
KPMG Limited
Certified Public Accountants and Registered Auditors
14 Esperidion Street
1087 Nicosia
Cyprus
15 May 2017
CONDENSED CONSOLIDATED STATEMENT OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME
for the six months ended 31 March 2017
Six months ended Year ended
-------------------------------------- ------- ------------------------------------------- -----------------------
31 March 31 March 30 September
2017 2016 2016
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Reviewed Reviewed Audited
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Notes US$'000 US$'000 US$'000
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Revenue 4 175 119 85 997 219 653
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Cost of sales 4 (92 755) (64 863) (165 177)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Gross profit 4 82 364 21 134 54 476
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Other income 83 182 438
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Administrative expenses 5 (12 530) (10 709) (22 775)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Results from operating
activities 69 917 10 607 32 139
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Finance income 4 042 410 770
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Finance costs (5 090) (5 738) (11 815)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Changes in fair value
of financial assets at
fair value
-------------------------------------- ------- ---------------------- ------------------- -----------------------
through profit or loss (540) 3 503
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Changes in fair value
of financial liabilities
at fair
-------------------------------------- ------- ---------------------- ------------------- -----------------------
value through profit or
loss - (813) 368
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Net finance costs (1 588) (6 138) (10 174)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Profit before tax 68 329 4 469 21 965
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Tax 6 (17 316) (1 371) (6 172)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Profit for the period/year 51 013 3 098 15 793
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Other comprehensive income
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Items that may be classified
subsequently to profit
-------------------------------------- ------- ---------------------- ------------------- -----------------------
or loss:
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Foreign currency translation
differences for foreign
-------------------------------------- ------- ---------------------- ------------------- -----------------------
operations, net of tax 5 422 (9 034) 4 212
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Other comprehensive income,
net of tax 5 422 (9 034) 4 212
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Total comprehensive income/(expense)
-------------------------------------- ------- ---------------------- ------------------- -----------------------
for the period/year 56 435 (5 936) 20 005
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Profit for the period/year
attributable to:
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Owners of the Company 41 925 2 900 13 809
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Non-controlling interest 9 088 198 1 984
-------------------------------------- ------- ---------------------- ------------------- -----------------------
51 013 3 098 15 793
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Total comprehensive income
for the period/year
-------------------------------------- ------- ---------------------- ------------------- -----------------------
attributable to:
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Owners of the Company 46 188 (3 882) 17 103
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Non-controlling interest 10 247 (2 054) 2 902
-------------------------------------- ------- ---------------------- ------------------- -----------------------
56 435 (5 936) 20 005
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Earnings per share
-------------------------------------- ------- ---------------------- ------------------- -----------------------
Basic and diluted earnings
per share (US$ cents) 7 16 1 5
-------------------------------------- ------- ---------------------- ------------------- -----------------------
The notes on pages 23 to 33 are an integral part of these
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2017
31 March 31 March 30 September
2017 2016 2016
------------------------------- ------- ----------------- ------------------ ------------------------
Reviewed Reviewed Audited
------------------------------- ------- ----------------- ------------------ ------------------------
Notes US$'000 US$'000 US$'000
------------------------------- ------- ----------------- ------------------ ------------------------
Assets
------------------------------- ------- ----------------- ------------------ ------------------------
Non-current assets
------------------------------- ------- ----------------- ------------------ ------------------------
Property, plant and equipment 8 225 992 204 126 220 534
------------------------------- ------- ----------------- ------------------ ------------------------
Goodwill 876 843 883
------------------------------- ------- ----------------- ------------------ ------------------------
Long-term deposits 9 4 796 9 754 9 846
------------------------------- ------- ----------------- ------------------ ------------------------
Other financial assets 3 696 2 282 2 585
------------------------------- ------- ----------------- ------------------ ------------------------
Deferred tax assets 10 2 127 664 1 397
------------------------------- ------- ----------------- ------------------ ------------------------
Total non-current assets 237 487 217 669 235 245
------------------------------- ------- ----------------- ------------------ ------------------------
Current assets
------------------------------- ------- ----------------- ------------------ ------------------------
Inventories 11 36 353 15 408 15 767
------------------------------- ------- ----------------- ------------------ ------------------------
Trade and other receivables 52 581 25 546 51 184
------------------------------- ------- ----------------- ------------------ ------------------------
Other financial assets 590 46 1 176
------------------------------- ------- ----------------- ------------------ ------------------------
Current taxation 61 203 134
------------------------------- ------- ----------------- ------------------ ------------------------
Cash and cash equivalents 26 620 11 119 15 826
------------------------------- ------- ----------------- ------------------ ------------------------
Total current assets 116 205 52 322 84 087
------------------------------- ------- ----------------- ------------------ ------------------------
Total assets 353 692 269 991 319 332
------------------------------- ------- ----------------- ------------------ ------------------------
Equity and liabilities
------------------------------- ------- ----------------- ------------------ ------------------------
Share capital 12 257 256 257
------------------------------- ------- ----------------- ------------------ ------------------------
Share premium 12 277 005 452 512 456 181
------------------------------- ------- ----------------- ------------------ ------------------------
Other reserve 47 245 47 245 47 245
------------------------------- ------- ----------------- ------------------ ------------------------
Foreign currency translation
reserve (69 148) (83 487) (73 411)
------------------------------- ------- ----------------- ------------------ ------------------------
Revenue reserve 28 077 (202 791) (193 521)
------------------------------- ------- ----------------- ------------------ ------------------------
Equity attributable to
owners of the Company 283 436 213 735 236 751
------------------------------- ------- ----------------- ------------------ ------------------------
Non-controlling interests (24 645) (39 848) (34 892)
------------------------------- ------- ----------------- ------------------ ------------------------
Total equity 258 791 173 887 201 859
------------------------------- ------- ----------------- ------------------ ------------------------
Non-current liabilities
------------------------------- ------- ----------------- ------------------ ------------------------
Provisions 6 327 3 633 4 607
------------------------------- ------- ----------------- ------------------ ------------------------
Borrowings 13 10 495 28 543 24 008
------------------------------- ------- ----------------- ------------------ ------------------------
Deferred tax liabilities 10 20 280 168 5 275
------------------------------- ------- ----------------- ------------------ ------------------------
Total non-current liabilities 37 102 32 344 33 890
------------------------------- ------- ----------------- ------------------ ------------------------
Current liabilities
------------------------------- ------- ----------------- ------------------ ------------------------
Borrowings 13 23 080 18 554 38 408
------------------------------- ------- ----------------- ------------------ ------------------------
Other financial liabilities - 534 -
------------------------------- ------- ----------------- ------------------ ------------------------
Current taxation 505 91 54
------------------------------- ------- ----------------- ------------------ ------------------------
Trade and other payables 34 214 44 581 45 121
------------------------------- ------- ----------------- ------------------ ------------------------
Total current liabilities 57 799 63 760 83 583
------------------------------- ------- ----------------- ------------------ ------------------------
Total liabilities 94 901 96 104 117 473
------------------------------- ------- ----------------- ------------------ ------------------------
Total equity and liabilities 353 692 269 991 319 332
------------------------------- ------- ----------------- ------------------ ------------------------
The condensed consolidated financial statements were authorised
for issue by the Board of Directors on 15 May 2017.
Phoevos Pouroulis Michael Jones
------------------ --------------
Director Director
------------------ --------------
The notes on pages 23 to 33 are an integral part of these
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2017
ATTRIBUTABLE TO OWNERS OF THE COMPANY
---------------- ----- ----------------------------------------------------------------- ---------------- --------
Foreign Non-controlling
currency
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Share Share Other translation Revenue Total interest Total
capital premium reserve reserve reserve equity
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Note US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Balance at 30
September (193
2016 257 456 181 47 245 (73 411) 521) 236 751 (34 892) 201 859
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total
comprehensive
income for the
period
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Profit for the
period - - - - 41 925 41 925 9 088 51 013
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Other
comprehensive
income
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Foreign
currency
translation
differences - - - 4 263 - 4 263 1 159 5 422
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total
comprehensive
income for the
period - - - 4 263 41 925 46 188 10 247 56 435
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Transactions
with
owners of the
Company
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Contributions
by and
distributions
to owners
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Reduction of
share (179
premium 12 - 176) - - 176 606 (2 570) - (2 570)
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Equity-settled
share-based
payments - - - - 3 067 3 067 - 3 067
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Contributions
by owners (179
of the Company - 176) - - 179 673 497 - 497
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total
transactions
with owners of
the (179
Company - 176) - - 179 673 497 - 497
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Balance at 31
March
2017
(Reviewed) 257 277 005 47 245 (69 148) 28 077 283 436 (24 645) 258 791
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Balance at 30
September (206
2015 256 452 512 47 245 (76 705) 566) 216 742 (37 794) 178 948
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total
comprehensive
income for the
period
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Profit for the
period - - - - 2 900 2 900 198 3 098
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Other
comprehensive
income
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Foreign
currency
translation
differences - - - (6 782) - (6 782) (2 252) (9 034)
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total
comprehensive
income for the
period - - - (6 782) 2 900 (3 882) (2 054) (5 936)
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Transactions
with
owners of the
Company
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Contributions
by and
distributions
to owners
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Equity-settled
share-based
payments - - - - 875 875 - 875
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Contributions
by owners
of the Company - - - - 875 875 - 875
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Total - -
transactions
with owners of
the
Company
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
Balance at 31
March
2016
(Reviewed) 256 452 512
---------------- ----- -------- --------- --------- ------------ --------- -------- ---------------- --------
The notes on pages 23 to 33 are an integral part of these
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2017
ATTRIBUTABLE TO OWNERS OF THE COMPANY
-------------------- ----------------------------------------------------------------------- ------------- --------
Foreign Non-
currency controlling
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Share Share premium Other translation Revenue Total interest Total
capital reserve reserve reserve equity
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Balance at 30
September (76 (206 216 (37 178
2015 256 452 512 47 245 705) 566) 742 794) 948
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Total comprehensive
income
for the year
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Profit for the year - - - - 13 809 13 809 1 984 15 793
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Other comprehensive
income
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Foreign currency
translation
differences - - - 3 294 - 3 294 918 4 212
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Total comprehensive
income
for the year - - - 3 294 13 809 17 103 2 902 20 005
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Transactions with
owners
of the Company
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Contributions by
and distributions
to owners
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Equity-settled
share-based
payments - - - - (1 045) (1 045) - (1 045)
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Issue of ordinary
shares 1 3 669 - - 281 3 951 - 3 951
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Contributions by
owners
of the Company 1 3 669 - - (764) 2 906 - 2 906
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Total transactions
with
owners of the
Company 1 3 669 - - (764) 2 906 - 2 906
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Balance at 30
September (73 (193 236 (34 201
2016 (Audited) 257 456 181 47 245 411) 521) 751 892) 859
-------------------- --------- -------------- --------- ------------ --------- -------- ------------- --------
Companies which do not distribute 70% of their profits after
tax, as defined by the Special Contribution for the Defence of the
Republic Law, during
the two years after the end of the year of assessment to which
the profits refer, will be deemed to have distributed this amount
as dividend. Special
contribution for defence at 20% for the tax years 2012 and 2013
and 17% for 2014 and thereafter will be payable on such deemed
dividend to the extent
that the shareholders (individuals and companies) at the end of
the period of two years from the end of the year of assessment to
which the profits refer
are Cyprus tax residents. The amount of this deemed dividend
distribution is reduced by any actual dividend paid out of the
profits of the relevant year
at any time. This special contribution for defence is paid by
the Company for the account of the shareholders. These provisions
do not apply for ultimate
beneficial owners that are non-Cyprus tax resident
individuals.
The notes on pages 23 to 33 are an integral part of these
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 31 March 2017
Six months ended Year ended
---------------------------------- ------- ----------------------------------- ------------------
31 March 31 March 30 September
2017 2016 2016
---------------------------------- ------- ---------------- ----------------- ------------------
Reviewed Reviewed Audited
---------------------------------- ------- ---------------- ----------------- ------------------
Notes US$'000 US$'000 US$'000
---------------------------------- ------- ---------------- ----------------- ------------------
Cash flows from operating
activities
---------------------------------- ------- ---------------- ----------------- ------------------
Profit for the period/year 51 013 3 098 15 793
---------------------------------- ------- ---------------- ----------------- ------------------
Adjustments for:
---------------------------------- ------- ---------------- ----------------- ------------------
Depreciation of property,
plant and equipment 8 8 366 4 599 10 167
---------------------------------- ------- ---------------- ----------------- ------------------
Loss on disposal of property,
plant and equipment - 67 584
---------------------------------- ------- ---------------- ----------------- ------------------
Impairment losses on goodwill 28 25 51
---------------------------------- ------- ---------------- ----------------- ------------------
Impairment losses on inventory 36 183 15
---------------------------------- ------- ---------------- ----------------- ------------------
Impairment losses on other
financial assets - - 12
---------------------------------- ------- ---------------- ----------------- ------------------
Changes in fair value of
financial assets at fair
value
---------------------------------- ------- ---------------- ----------------- ------------------
through profit or loss 540 (3) (503)
---------------------------------- ------- ---------------- ----------------- ------------------
Changes in fair value of
financial liabilities at
fair
---------------------------------- ------- ---------------- ----------------- ------------------
value through profit or
loss - 813 (368)
---------------------------------- ------- ---------------- ----------------- ------------------
Interest income (598) (410) (770)
---------------------------------- ------- ---------------- ----------------- ------------------
Interest expense 4 355 5 172 10 287
---------------------------------- ------- ---------------- ----------------- ------------------
Tax 6 17 315 1 371 6 172
---------------------------------- ------- ---------------- ----------------- ------------------
Equity-settled share-based
payments 2 196 1 049 2 542
---------------------------------- ------- ---------------- ----------------- ------------------
83 251 15 964 43 982
---------------------------------- ------- ---------------- ----------------- ------------------
Changes in:
---------------------------------- ------- ---------------- ----------------- ------------------
Inventories (22 178) (6 845) (4 634)
---------------------------------- ------- ---------------- ----------------- ------------------
Trade and other receivables (211) 12 433 (12 657)
---------------------------------- ------- ---------------- ----------------- ------------------
Trade and other payables (16 167) (2 946) (4 100)
---------------------------------- ------- ---------------- ----------------- ------------------
Provisions 1 377 (250) 71
---------------------------------- ------- ---------------- ----------------- ------------------
Cash from operations 46 072 18 356 22 662
---------------------------------- ------- ---------------- ----------------- ------------------
Income tax paid (1 852) (126) (472)
---------------------------------- ------- ---------------- ----------------- ------------------
Net cash flows from operating
activities 44 220 18 230 22 190
---------------------------------- ------- ---------------- ----------------- ------------------
Cash flows from investing
activities
---------------------------------- ------- ---------------- ----------------- ------------------
Interest received 540 384 892
---------------------------------- ------- ---------------- ----------------- ------------------
Additions to property, plant
and equipment 8 (8 458) (6 375) (12 307)
---------------------------------- ------- ---------------- ----------------- ------------------
Proceeds from disposal of
property, plant and
---------------------------------- ------- ---------------- ----------------- ------------------
equipment - 107 124
---------------------------------- ------- ---------------- ----------------- ------------------
Additions to other financial
assets (911) (744) (700)
---------------------------------- ------- ---------------- ----------------- ------------------
Net cash flows used in investing
---------------------------------- ------- ---------------- ----------------- ------------------
activities (8 829) (6 628) (11 991)
---------------------------------- ------- ---------------- ----------------- ------------------
Cash flows from financing
activities
---------------------------------- ------- ---------------- ----------------- ------------------
Refund of long-term deposits 5 437 575 1 369
---------------------------------- ------- ---------------- ----------------- ------------------
Changes in non-current trade - 769 -
and other payables
---------------------------------- ------- ---------------- ----------------- ------------------
(Repayments of )/proceeds
from bank credit and
---------------------------------- ------- ---------------- ----------------- ------------------
other facility borrowings (15 790) (15 490) 1 648
---------------------------------- ------- ---------------- ----------------- ------------------
Net proceeds from loan advances - 1 698 2 310
---------------------------------- ------- ---------------- ----------------- ------------------
Repayment of secured bank
borrowings and loan
---------------------------------- ------- ---------------- ----------------- ------------------
to third party (10 961) (9 694) (19 166)
---------------------------------- ------- ---------------- ----------------- ------------------
Interest paid (3 574) (1 507) (4 371)
---------------------------------- ------- ---------------- ----------------- ------------------
Net cash flows used in financing
---------------------------------- ------- ---------------- ----------------- ------------------
activities (24 888) (23 649) (18 210)
---------------------------------- ------- ---------------- ----------------- ------------------
Net increase/(decrease)
in cash and
---------------------------------- ------- ---------------- ----------------- ------------------
cash equivalents 10 503 (12 047) (8 011)
---------------------------------- ------- ---------------- ----------------- ------------------
Cash and cash equivalents
at the beginning of the
---------------------------------- ------- ---------------- ----------------- ------------------
period/year 15 826 24 265 24 265
---------------------------------- ------- ---------------- ----------------- ------------------
Effect of exchange rate
fluctuations on cash held 291 (1 099) (428)
---------------------------------- ------- ---------------- ----------------- ------------------
Cash and cash equivalents
at the end of
---------------------------------- ------- ---------------- ----------------- ------------------
the period/year 26 620 11 119 15 826
---------------------------------- ------- ---------------- ----------------- ------------------
The notes on pages 23 to 33 are an integral part of these
financial statements.
NOTES TO THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
for the six months ended 31 March 2017
1. REPORTING ENTITY
Tharisa plc (the Company) is a company domiciled in Cyprus.
These condensed consolidated interim financial statements
for the six months ended 31 March 2017 comprise the Company and
its subsidiaries (together referred to as the
Group). The Group is primarily involved in platinum group metals
(PGM) and chrome mining, processing, trading and the
associated logistics. The Company is listed on the main board of
the Johannesburg Stock Exchange and has a secondary
standard listing on the main board of the London Stock
Exchange.
2. BASIS OF PREPARATION
Statement of compliance
These condensed consolidated interim financial statements have
been prepared in accordance with International
Financial Reporting Standards (IFRS), International Accounting
Standard 34 Interim Financial Reporting, the Listings
Requirements of the Johannesburg Stock Exchange and the Cyprus
Companies Law, Cap. 113. Selected explanatory
notes are included to explain events and transactions that are
significant to obtain an understanding of the changes
in the financial position and performance of the Group since the
last consolidated financial statements as at and for
the year ended 30 September 2016. These condensed consolidated
interim financial statements do not include all
the information required for full consolidated financial
statements prepared in accordance with IFRS. The condensed
consolidated interim financial statements should be read in
conjunction with the annual consolidated financial statements
for the year ended 30 September 2016, which have been prepared
in accordance with IFRS.
These condensed consolidated interim financial statements were
approved by the Board of Directors on 15 May 2017.
Use of estimates and judgements
Preparing the condensed consolidated interim financial
statements requires management to make judgements, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities,
income and expenses. Actual results may differ from these
estimates.
In preparing these condensed consolidated interim financial
statements, significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those applied
to the consolidated financial statements as at and for the year
ended 30 September 2016.
Functional and presentation currency
The condensed consolidated interim financial statements are
presented in United States Dollars (US$) which is the
Company's functional currency and amounts are rounded to the
nearest thousand.
Going concern
After making enquiries which include reviews of current cash
resources, forecasts and budgets, timing of cash flows,
borrowing facilities and sensitivity analyses and considering
the associated uncertainties to the Group's operations, the
Directors have a reasonable expectation that the Group has
adequate financial resources to continue in operational
existence for the foreseeable future. For this reason, they
continue to adopt the going concern basis in preparing the
condensed consolidated interim financial statements.
New and revised International Financial Reporting Standards and
Interpretations
As from 1 October 2016, the Group adopted all changes to IFRS,
which are relevant to its operations. The adoption did
not have a material effect on the accounting policies of the
Group.
The following Standards, Amendments to Standards and
Interpretations have been issued but are not yet effective
for annual periods beginning on 1 October 2016. The Board of
Directors is currently evaluating the impact of these
on the Group.
- IFRS 15 Revenue from Contracts with Customers (effective for
annual periods beginning on or after 1 January 2018)
- IFRS 16 Leases (effective for annual periods beginning on or
after 1 January 2019)
- Amendments to IAS 12: Recognition of Deferred Tax Assets for
Unrealised Losses (effective for annual periods beginning
on or after 1 January 2017)
- Amendments to IAS 7: Disclosure Initiatives (effective for
annual periods beginning on or after 1 January 2017)
- IFRS 9 Financial Instruments (effective for annual periods
beginning on or after 1 January 2018)
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are in terms
of IFRS and are the same as those applied by the Group in its
audited consolidated financial statements as at and for
the year ended 30 September 2016.
4. OPERATING SEGMENTS
Segmental performance is measured based on segment revenue, cost
of sales and gross profit or loss, as included in
the internal management reports that are reviewed by the Group's
management.
PGM Chrome Total
-------------------------------------- ------------- ---------------- -------------
Six months ended 31 March 2017 US$'000 US$'000 US$'000
(Reviewed)
-------------------------------------- ------------- ---------------- -------------
Revenue 40 053 135 066 175 119
-------------------------------------- ------------- ---------------- -------------
Cost of sales
-------------------------------------- ------------- ---------------- -------------
Cost of sales excluding selling
costs 20 837 48 280 69 117
-------------------------------------- ------------- ---------------- -------------
Selling costs 180 23 458 23 638
-------------------------------------- ------------- ---------------- -------------
21 017 71 738 92 755
-------------------------------------- ------------- ---------------- -------------
Gross profit 19 036 63 328 82 364
-------------------------------------- ------------- ---------------- -------------
Six months ended 31 March 2016
(Reviewed)
-------------------------------------- ------------- ---------------- -------------
Revenue 35 904 50 093 85 997
-------------------------------------- ------------- ---------------- -------------
Cost of sales
-------------------------------------- ------------- ---------------- -------------
Cost of sales excluding selling
costs 23 663 24 712 48 375
-------------------------------------- ------------- ---------------- -------------
Selling costs 98 16 390 16 488
-------------------------------------- ------------- ---------------- -------------
23 761 41 102 64 863
-------------------------------------- ------------- ---------------- -------------
Gross profit 12 143 8 991 21 134
-------------------------------------- ------------- ---------------- -------------
Year ended 30 September 2016
(Audited)
-------------------------------------- ------------- ---------------- -------------
Revenue 81 514 138 139 219 653
-------------------------------------- ------------- ---------------- -------------
Cost of sales
-------------------------------------- ------------- ---------------- -------------
Cost of sales excluding selling
costs 57 135 64 710 121 845
-------------------------------------- ------------- ---------------- -------------
Selling costs 218 43 114 43 332
-------------------------------------- ------------- ---------------- -------------
57 353 107 824 165 177
-------------------------------------- ------------- ---------------- -------------
Gross profit 24 161 30 315 54 476
-------------------------------------- ------------- ---------------- -------------
The shared costs relating to the manufacturing of the PGM and
the chrome concentrates are allocated to the relevant
operating segments based on the relative sales value per product
on an ex-works basis. During the period ended
31 March 2017, the relative sales value of chrome concentrates
increased compared to the relative sales value of
PGM concentrate and consequently the allocation basis of shared
costs was amended to 75% (chrome concentrates)
and 25% (PGM concentrate) respectively. The allocated percentage
for PGM concentrate and chrome concentrates
accounted for in the comparative period was 50% for each
segment.
Geographical information
The following table sets out information about the geographical
location of the Group's revenue from external customers.
The geographical location analysis of revenue from external
customers is based on the country of establishment of
each customer.
Six months ended Year ended
------------------- ---------------------------------------- ---------------------
31 March 31 March 30 September
2017 2016 2016
------------------- ------------------- ------------------- ---------------------
Reviewed Reviewed Audited
------------------- ------------------- ------------------- ---------------------
US$'000 US$'000 US$'000
------------------- ------------------- ------------------- ---------------------
China 57 986 9 673 37 392
------------------- ------------------- ------------------- ---------------------
South Africa 73 612 46 410 110 698
------------------- ------------------- ------------------- ---------------------
Singapore 3 215 4 540 13 670
------------------- ------------------- ------------------- ---------------------
Hong Kong 37 601 22 605 55 045
------------------- ------------------- ------------------- ---------------------
South Korea - 1 532 1 523
------------------- ------------------- ------------------- ---------------------
Other countries 2 705 1 237 1 325
------------------- ------------------- ------------------- ---------------------
175 119 85 997 219 653
------------------- ------------------- ------------------- ---------------------
Revenue represents the sales value of goods supplied to
customers, net of value-added tax.
5. ADMINISTRATIVE EXPENSES
Six months ended Year ended
-------------------------------------- --------------------------------------- ----------------
31 March 31 March 30 September
2017 2016 2016
-------------------------------------- -------------------- ----------------- ----------------
Reviewed Reviewed Audited
-------------------------------------- -------------------- ----------------- ----------------
US$'000 US$'000 US$'000
-------------------------------------- -------------------- ----------------- ----------------
Directors and staff costs
-------------------------------------- -------------------- ----------------- ----------------
Non-executive directors 254 245 499
-------------------------------------- -------------------- ----------------- ----------------
Executive directors 788 561 1 267
-------------------------------------- -------------------- ----------------- ----------------
Key management 552 417 930
-------------------------------------- -------------------- ----------------- ----------------
Employees 4 361 3 798 8 029
-------------------------------------- -------------------- ----------------- ----------------
5 955 5 021 10 725
-------------------------------------- -------------------- ----------------- ----------------
Audit - external audit services 142 169 384
-------------------------------------- -------------------- ----------------- ----------------
Consulting 884 1 122 1 737
-------------------------------------- -------------------- ----------------- ----------------
Corporate and social investment 50 66 108
-------------------------------------- -------------------- ----------------- ----------------
Depreciation 256 157 320
-------------------------------------- -------------------- ----------------- ----------------
Discount facility and related
fees 257 205 457
-------------------------------------- -------------------- ----------------- ----------------
Equity-settled share-based
payment expense 2 196 1 049 2 542
-------------------------------------- -------------------- ----------------- ----------------
Fees for professional services
of the listing - 328 942
-------------------------------------- -------------------- ----------------- ----------------
Health and safety 122 101 236
-------------------------------------- -------------------- ----------------- ----------------
Impairment losses 28 - 63
-------------------------------------- -------------------- ----------------- ----------------
Insurance 458 335 781
-------------------------------------- -------------------- ----------------- ----------------
Legal and professional 127 133 186
-------------------------------------- -------------------- ----------------- ----------------
Loss on disposal of property,
plant and equipment - - 584
-------------------------------------- -------------------- ----------------- ----------------
Rent and utilities 282 370 697
-------------------------------------- -------------------- ----------------- ----------------
Security 485 411 930
-------------------------------------- -------------------- ----------------- ----------------
Telecommunications and IT related
costs 308 278 645
-------------------------------------- -------------------- ----------------- ----------------
Training 151 254 465
-------------------------------------- -------------------- ----------------- ----------------
Travelling and accommodation 195 165 285
-------------------------------------- -------------------- ----------------- ----------------
Sundry expenses 634 545 688
-------------------------------------- -------------------- ----------------- ----------------
12 530 10 709 22 775
-------------------------------------- -------------------- ----------------- ----------------
6. TAX
Six months ended Year ended
------------------------------------ ---------------------------------------- -----------------------
31 March 31 March 30 September
2017 2016 2016
------------------------------------ ------------------ -------------------- -----------------------
Reviewed Reviewed Audited
------------------------------------ ------------------ -------------------- -----------------------
US$'000 US$'000 US$'000
------------------------------------ ------------------ -------------------- -----------------------
Corporate income tax for the
year
------------------------------------ ------------------ -------------------- -----------------------
Cyprus 992 45 309
------------------------------------ ------------------ -------------------- -----------------------
South Africa 1 381 16 128
------------------------------------ ------------------ -------------------- -----------------------
Special contribution for defence
in Cyprus 3 1 4
------------------------------------ ------------------ -------------------- -----------------------
Deferred tax
------------------------------------ ------------------ -------------------- -----------------------
Originating and reversal of
temporary differences 14 940 1 309 5 731
------------------------------------ ------------------ -------------------- -----------------------
Tax charge 17 316 1 371 6 172
------------------------------------ ------------------ -------------------- -----------------------
Tax is recognised on management's best estimate of the weighted
average annual income tax rate expected for the
full financial year applied to the pre-tax income of the interim
period. The corporation tax rate is 12.5% in Cyprus and
28.0% in South Africa.
Under certain conditions interest income may be subject to
defence contribution at the rate of 30.0% in Cyprus. Such
interest income is treated as non-taxable in the computation of
corporation taxable income. In certain instances,
dividends received from abroad may be subject to defence
contribution at the rate of 17.0%.
The Group's consolidated effective tax rate for the six months
ended 31 March 2017 was 25.3% (31 March 2016: 30.7%;
30 September 2016: 28.1%).
7. EARNINGS PER SHARE
Basic and diluted earnings per share
The calculation of basic and diluted earnings per share has been
based on the following profit attributable to the
ordinary shareholders of the Company and the weighted average
number of ordinary shares outstanding.
Six months ended Year ended
----------------------------------- ------------------------------------- ---------------------
31 March 31 March 30 September
2017 2016 2016
----------------------------------- ---------------- ------------------- ---------------------
Reviewed Reviewed Audited
----------------------------------- ---------------- ------------------- ---------------------
Profit attributable to ordinary
shareholders (US$'000) 41 925 2 900 13 809
----------------------------------- ---------------- ------------------- ---------------------
Weighted average number of
ordinary shares ('000) 256 178 255 892 256 178
----------------------------------- ---------------- ------------------- ---------------------
Basic and diluted earnings
per share (US$ cents) 16 1 5
----------------------------------- ---------------- ------------------- ---------------------
LTIP and SARS awards were excluded from the diluted weighted
average number of ordinary shares calculation
because their effect would have been anti-dilutive.
Headline and diluted headline earnings per share
The calculation of headline and diluted headline earnings per
share has been based on the following headline earnings
attributable to the ordinary shareholders and the weighted
average number of ordinary shares outstanding.
Six months ended Year ended
---------------------------------- --------------------------------------- ----------------------
31 March 31 March 30 September2016
2017 2016
---------------------------------- ----------------- -------------------- ----------------------
Reviewed Reviewed Audited
---------------------------------- ----------------- -------------------- ----------------------
Headline earnings attributable
to ordinary shareholders
---------------------------------- ----------------- -------------------- ----------------------
(US$'000) 41 953 2 925 14 281
---------------------------------- ----------------- -------------------- ----------------------
Weighted average number of
ordinary shares ('000) 256 178 255 892 256 178
---------------------------------- ----------------- -------------------- ----------------------
Headline and diluted headline
earnings per share (US$
---------------------------------- ----------------- -------------------- ----------------------
cents) 16 1 6
---------------------------------- ----------------- -------------------- ----------------------
Reconciliation of profit to headline earnings
Six months ended Year ended
------------------------------------ --------------------------------------- ---------------------
31 March 31 March 30 September
2017 2016 2016
------------------------------------ ------------------ ------------------- ---------------------
Reviewed Reviewed Audited
------------------------------------ ------------------ ------------------- ---------------------
US$'000 US$'000 US$'000
------------------------------------ ------------------ ------------------- ---------------------
Net Net Net
------------------------------------ ------------------ ------------------- ---------------------
Profit attributable to ordinary
shareholders 41 925 2 900 13 809
------------------------------------ ------------------ ------------------- ---------------------
Adjustments:
------------------------------------ ------------------ ------------------- ---------------------
Impairment losses on goodwill 28 25 51
------------------------------------ ------------------ ------------------- ---------------------
Loss on disposal of property,
plant and equipment - - 421
------------------------------------ ------------------ ------------------- ---------------------
Headline earnings 41 953 2 925 14 281
------------------------------------ ------------------ ------------------- ---------------------
8. PROPERTY, PLANT AND EQUIPMENT
31 March 31 March 30 September
2017 2016 2016
-------------------------------------- ------------------ ------------------ ---------------------
Reviewed Reviewed Audited
-------------------------------------- ------------------ ------------------ ---------------------
US$'000 US$'000 US$'000
-------------------------------------- ------------------ ------------------ ---------------------
Cost 281 409 236 578 266 368
-------------------------------------- ------------------ ------------------ ---------------------
Accumulated depreciation (55 417) (32 452) (45 834)
-------------------------------------- ------------------ ------------------ ---------------------
Net book value 225 992 204 126 220 534
-------------------------------------- ------------------ ------------------ ---------------------
Reconciliation of net book
value
-------------------------------------- ------------------ ------------------ ---------------------
Opening net book value 220 534 214 518 214 518
-------------------------------------- ------------------ ------------------ ---------------------
Additions 8 458 6 375 12 307
-------------------------------------- ------------------ ------------------ ---------------------
Disposals - (174) (708)
-------------------------------------- ------------------ ------------------ ---------------------
Depreciation (8 366) (4 599) (10 167)
-------------------------------------- ------------------ ------------------ ---------------------
Exchange adjustment on translation 5 366 (11 994) 4 584
-------------------------------------- ------------------ ------------------ ---------------------
Closing net book value 225 992 204 126 220 534
-------------------------------------- ------------------ ------------------ ---------------------
There were no additions (31 March 2016: US$3.1 million; 30
September 2016: US$2.4 million) to the deferred stripping
asset during the period ended 31 March 2017.
The estimated economically recoverable proved and probable
mineral reserve was reassessed at 30 September
2016 which gave rise to a change in accounting estimate. The
remaining reserve that management had previously
assessed was 106.4 Mt and at 30 September 2016 was assessed to
be 98.9 Mt. As a result, the expected useful life
of the plant decreased. The effect of the change on the actual
depreciation expense, included in cost of sales, is an
additional US$1.2 million.
Capital commitments
At 31 March 2017, the Group's capital commitments for contracts
to purchase property, plant and equipment amounted
to US$3.2 million (31 March 2016: US$2.4 million; 30 September
2016: US$1.8 million).
Securities
At 31 March 2017, an amount of US$205.6 million (31 March 2016:
US$185.1 million; 30 September 2016:
US$200.8 million) of the carrying amount of the Group's tangible
property, plant and equipment was pledged as
security against secured bank borrowings.
9. LONG-TERM DEPOSITS
31 March 31 March 30 September
2017 2016 2016
---------------------- ----------------- -------------------- --------------------
Reviewed Reviewed Audited
---------------------- ----------------- -------------------- --------------------
US$'000 US$'000 US$'000
---------------------- ----------------- -------------------- --------------------
Long-term deposits 4 796 9 754 9 846
---------------------- ----------------- -------------------- --------------------
The long-term deposits represent restricted cash which is
designated as a "debt service reserve account" as required
by the terms of the Common Terms Agreement for the senior debt
facility of Tharisa Minerals Proprietary Limited.
Effective 31 March 2017, the Common Terms Agreement was amended
by reducing the amount of restricted cash
required as a debt service reserve account. The released funds
were utilised as a mandatory prepayment on the
outstanding capital, reducing the repayment term of the senior
debt facility (refer to note 13).
10.DEFERRED TAX
31 March 31 March 30 September
2017 2016 2016
-------------------------------------- ------------------ ------------------- --------------------
Reviewed Reviewed Audited
-------------------------------------- ------------------ ------------------- --------------------
US$'000 US$'000 US$'000
-------------------------------------- ------------------ ------------------- --------------------
Deferred tax assets 2 127 664 1 397
-------------------------------------- ------------------ ------------------- --------------------
Deferred tax liabilities (20 280) (168) (5 275)
-------------------------------------- ------------------ ------------------- --------------------
Net deferred tax (liability)/asset (18 153) 496 (3 878)
-------------------------------------- ------------------ ------------------- --------------------
Deferred tax assets and deferred tax liabilities are not offset
unless the Group has a legally enforceable right to offset
such assets and liabilities.
The recoverability of deferred tax assets was assessed in
respect of each individual legal entity. The estimates used to
assess the recoverability of recognised deferred tax assets
include a forecast of the future taxable income and future
cash flow projections based on a three-year period. The Group
did not have tax losses and temporary differences for
which deferred tax was not recognised.
11.INVENTORIES
31 March 31 March 30 September
2017 2016 2016
--------------------- ------------------ --------------------- --------------------
Reviewed Reviewed Audited
--------------------- ------------------ --------------------- --------------------
US$'000 US$'000 US$'000
--------------------- ------------------ --------------------- --------------------
Finished products 25 594 8 586 6 116
--------------------- ------------------ --------------------- --------------------
Ore stockpile 5 177 3 341 4 729
--------------------- ------------------ --------------------- --------------------
Consumables 5 582 3 481 4 922
--------------------- ------------------ --------------------- --------------------
36 353 15 408 15 767
--------------------- ------------------ --------------------- --------------------
Inventories are stated at the lower of cost or net realisable
value. The Group impaired US$0.1 million
(31 March 2016: US$0.2 million; 30 September 2016: US$0.1
million) relating to certain consumables and spares as the
operational use
became doubtful with no anticipated recoverable amount or value
in use. There were no write-downs to net realisable
value during the period (31 March 2016 and 30 September 2016: no
write-downs). Inventories are subject to a general
notarial bond in favour of the lenders of the senior debt
facility.
12.SHARE CAPITAL AND RESERVES
Share capital
The Company did not issue any ordinary shares during the six
months ended 31 March 2017 and 31 March 2016.
Allotments during the year ended 30 September 2016 were in
respect of the award of 1 089 685 ordinary shares
granted in terms of the Share Award Scheme.
Share premium
The share premium represents the excess of the issue price of
the ordinary shares over their nominal value, to the
extent that it is registered at the Registrar of Companies in
Cyprus, less share issue costs and any registered transfers
to the revenue reserve.
During the period ended 31 March 2017, the share premium account
was reduced by US$179.2 million with a
corresponding increase in the revenue reserve to reduce the
accumulated losses to US$nil. The required Court
Order was obtained on 8 March 2017 and filed at the Registrar of
Companies on 9 March 2017. The distribution of
US$2.6 million (US$ 1 cent per share) (31 March 2016 and 30
September 2016: no distribution) was approved by way
of a Special Resolution on 1 February 2017 which further reduced
the share premium. The Special Resolution was
ratified by the abovementioned Court Order on 8 March 2017.
During the year ended 30 September 2016, the increase in the
share premium account related to the issue and
allotment of ordinary shares granted in terms of the Share Award
Schemes.
13.BORROWINGS
31 March 31 March 30 September
2017 2016 2016
------------------------------------ ------------------ ------------------ --------------------
Reviewed Reviewed Audited
------------------------------------ ------------------ ------------------ --------------------
US$'000 US$'000 US$'000
------------------------------------ ------------------ ------------------ --------------------
Non-current
------------------------------------ ------------------ ------------------ --------------------
Secured bank borrowings 10 495 27 214 22 103
------------------------------------ ------------------ ------------------ --------------------
Finance leases - 551 246
------------------------------------ ------------------ ------------------ --------------------
Deferred supplier - 778 1 659
------------------------------------ ------------------ ------------------ --------------------
10 495 28 543 24 008
------------------------------------ ------------------ ------------------ --------------------
Current
------------------------------------ ------------------ ------------------ --------------------
Secured bank borrowings 14 852 13 595 14 443
------------------------------------ ------------------ ------------------ --------------------
Finance leases 611 1 369 677
------------------------------------ ------------------ ------------------ --------------------
Bank credit and other facilities 6 709 1 808 23 012
------------------------------------ ------------------ ------------------ --------------------
Guardrisk loan 908 - 169
------------------------------------ ------------------ ------------------ --------------------
Loan payable to related party - 1 782 107
------------------------------------ ------------------ ------------------ --------------------
23 080 18 554 38 408
------------------------------------ ------------------ ------------------ --------------------
Secured bank borrowings
The secured bank borrowings relate to financing of ZAR1 billion
obtained from a consortium of banks in South Africa
during the year ended 30 September 2012. The financing was
obtained by Tharisa Minerals Proprietary Limited, a
subsidiary of the Group, and was for a period of seven years
repayable in twenty two equal quarterly instalments with
the first repayment date at 31 December 2013.
Repayments are subject to a cash sweep which will reduce the
repayment period to a minimum of five years. Tharisa
Minerals Proprietary Limited is required to maintain funds in a
debt service reserve account (refer to note 9). Effective
31 March 2017, the financing terms were amended to reduce the
required amount of the debt service reserve balance.
The released funds from the debt service reserve balance were
utilised as a mandatory prepayment on the outstanding
capital, reducing the repayment term of the senior debt
facility. At 31 March 2017, the estimated remaining term is
equal to seven quarterly instalments.
The financing bears interest at 3 month JIBAR plus 4.9% pa until
achievement of project completion on 14 November
2016 whereafter the interest rate reduced to JIBAR plus 3.4%
pa.
As at 31 March 2017 and 30 September 2016, Tharisa Minerals
Proprietary Limited complied with all covenant ratios.
The senior debt providers condoned the breach of the debt
service cover ratio as at 31 March 2016.
Deferred supplier
During the period ended 31 March 2017, an agreement was reached
with the deferred supplier to repay the outstanding
balance in full.
Guardrisk loan
The loan payable at 30 September 2016 was settled in full during
the period ended 31 March 2017. Tharisa Minerals
Proprietary Limited obtained a loan for the amount of ZAR18
million repayable in twelve monthly instalments
commencing on 1 December 2016. The loan bears interest at a rate
of 10.63% pa. The final instalment is due on
1 November 2017.
Loan payable to related party
The loan payable to the Langa Trust was settled in full during
the period ended 31 March 2017.
14.FINANCIAL INSTRUMENTS
31 March 31 March 30 September
2017 2016 2016
---------------------------------------- ---------------- ------------------- -----------------------
Reviewed Reviewed Audited
---------------------------------------- ---------------- ------------------- -----------------------
US$'000 US$'000 US$'000
---------------------------------------- ---------------- ------------------- -----------------------
Financial assets - carrying
amount
---------------------------------------- ---------------- ------------------- -----------------------
Loans and receivables 45 271 21 859 46 104
---------------------------------------- ---------------- ------------------- -----------------------
Long-term deposits 4 796 9 754 9 846
---------------------------------------- ---------------- ------------------- -----------------------
Cash and cash equivalents 26 620 11 119 15 826
---------------------------------------- ---------------- ------------------- -----------------------
Investments at fair value through
profit or loss* 42 46 43
---------------------------------------- ---------------- ------------------- -----------------------
Financial instruments at fair
value through profit or
---------------------------------------- ---------------- ------------------- -----------------------
loss** 4 244 2 282 3 718
---------------------------------------- ---------------- ------------------- -----------------------
80 973 45 060 75 537
---------------------------------------- ---------------- ------------------- -----------------------
Financial liabilities - carrying
amount
---------------------------------------- ---------------- ------------------- -----------------------
Borrowings 33 575 47 097 62 416
---------------------------------------- ---------------- ------------------- -----------------------
Trade payables 23 231 39 261 35 513
---------------------------------------- ---------------- ------------------- -----------------------
Discount facility** - 534 -
---------------------------------------- ---------------- ------------------- -----------------------
Income received in advance 1 657 935 3 102
---------------------------------------- ---------------- ------------------- -----------------------
Other payables 4 897 4 418 4 703
---------------------------------------- ---------------- ------------------- -----------------------
63 360 92 245 105 734
---------------------------------------- ---------------- ------------------- -----------------------
* Level 1 of the fair value hierarchy - quoted prices in active markets for the same instrument
** Level 2 of the fair value hierarchy - significant inputs are
based on observable market data for similar financial
instruments
The Board of Directors considers that the fair values of
financial assets and liabilities approximate their carrying
values at each reporting date.
15.RELATED PARTY TRANSACTIONS
31 March 31 March 30 September
2017 2016 2016
----------------------------------------- ---------------------- ---------------------- ----------------------
Reviewed Reviewed Audited
----------------------------------------- ---------------------- ---------------------- ----------------------
US$'000 US$'000 US$'000
----------------------------------------- ---------------------- ---------------------- ----------------------
Key management compensation
----------------------------------------- ---------------------- ---------------------- ----------------------
Non-executive directors' remuneration 254 245 499
----------------------------------------- ---------------------- ---------------------- ----------------------
Executive directors' remuneration 788 561 1 267
----------------------------------------- ---------------------- ---------------------- ----------------------
Other key management remuneration 552 417 930
----------------------------------------- ---------------------- ---------------------- ----------------------
1 594 1 223 2 696
----------------------------------------- ---------------------- ---------------------- ----------------------
16.CONTINGENT LIABILITIES
There is no litigation, current or pending, which is considered
likely to have a material adverse effect on the Group.
17.EVENTS AFTER THE REPORTING PERIOD
The Board of Directors are not aware of any matter or
circumstance arising since the end of the period that will
impact
these condensed consolidated interim financial results.
The Group announced on 4 April 2017 its intention to acquire a
requisite portion of the existing mining fleet at the
Tharisa Mine from subcontractor MCC Contracts Proprietary
Limited (MCC).
Tharisa Minerals Proprietary Limited (Tharisa Minerals) has
subsequent to the reporting period, subject to the
fulfilment of certain conditions precedent which includes, inter
alia, regulatory approvals as well as MCC shareholder
approval, entered into a binding term sheet with MCC in terms of
which, inter alia, Tharisa Minerals will purchase
certain equipment, strategic components and spares from MCC for
a purchase consideration of ZAR303.3 million.
The 153 "yellow fleet" machines being purchased include
excavators, off-highway dump trucks, articulated dump trucks
and support vehicles, being substantially all of the equipment
at the Tharisa Mine, as well as 17 additional machines from
another MCC site. In addition, Tharisa Minerals will accept
assignment in respect of leased equipment comprising drill
rigs, excavators and off-highway dump trucks and will continue
to lease these 14 machines. The settlement amount for
the leased equipment as at 1 June 2017 is approximately ZAR100.2
million.
The on-site employees of MCC will be transferred to Tharisa
Minerals.
The purchase consideration for the transaction will be settled
through a cash payment of ZAR250.0 million, the cession
of the lease obligations of approximately ZAR100.2 million, the
deduction of certain liabilities relating to the transfer
of the employees such as the leave pay provision and the
deduction of costs that have been incorporated into the
mining rate to date, such as future equipment demobilisation
costs. The balance owing will be paid in cash in six equal
monthly instalments.
The purchase consideration will be funded by bridge financing
currently being arranged, OEM supplier financing,
traditional banking and available cash resources.
Subsequent to the reporting period, as an integral part of the
transition to an owner mining model, Tharisa Minerals
purchased certain rock drills and drilling equipment from a
sub-contractor of MCC for a purchase consideration of
ZAR24.4 million. The on-site employees of the sub-contractor
were transferred to Tharisa Minerals.
18.REDUCTION OF SHARE PREMIUM
A distribution of US$2.6 million (US$ 1 cent per share) (31
March 2016 and 30 September 2016: no distribution) was
declared on 1 February 2017 as a reduction of share premium.
LEGAL DISCLAIMER
Some of the information in these materials may contain
projections or forward-looking statements regarding future events,
the future financial performance of the Group, its intentions,
beliefs or current expectations and those of its officers,
directors and employees concerning, among other things, the Group's
results of operations, financial condition, liquidity, prospects,
growth, strategies and business. You can identify forward-looking
statements by terms such as "expect", "believe", "anticipate",
"estimate", "intend", "will", "could", "may" or "might" or the
negative of such terms or other similar expressions. These
statements are only predictions and actual results may differ
materially. Unless otherwise required by applicable law, regulation
or accounting standard, the Group does not intend to update these
statements to reflect events and circumstances occurring after the
date hereof or to reflect the occurrence of unanticipated events.
Many factors could cause the actual results to differ materially
from those contained in projections or forward-looking statements
of the Group, including, among others, general economic conditions,
the competitive environment, risks associated with operating in
South Africa and market change in the industries the Group operates
in, as well as many other risks specifically related to the Group
and its operations.
www.tharisa.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AAMITMBABBPR
(END) Dow Jones Newswires
May 16, 2017 02:00 ET (06:00 GMT)
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