- Part 6: For the preceding part double click ID:nPRrS055Ee
3,750
mortgage debenture
stock 2018 at 11.6
per cent
Bank overdrafts 2,234 - 2,119 -
(secured) (Bisichi)
£1 million term bank - - 201 -
loan (unsecured)
£10 million first - 9,888 - 9,871
mortgage debenture
stock 2022 at 8.109
per cent*
Other loans - - - 111
(Bisichi)
£6 million term bank - 5,940 - 5,902
loan (secured)
repayable by 2019
(Bisichi)*
£1.9 million - - - 1,900
revolving credit
facility term bank
loan (secured)
(Dragon)
£34.897 million term - 34,296 - 34,124
bank loan (secured)
repayable by 2019*
£10.105 million term - 9,881 - 9,818
bank loan (secured)
repayable by 2019*
2,267 64,951 3,590 65,476
* The £10 million debenture and bank loans are shown after deduction of
un-amortised issue costs.
Interest payable on the term bank loans is variable being based upon the London
inter-bank offered rate (LIBOR) plus margin.
During the year the Group repaid early £1.25 million of the £5 million first
mortgage debenture stock 2018, at an additional cost of £158,000.
First Mortgage Debenture Stocks August 2018 and 2022 and the £34.897 million
and £10.105 million term bank loans repayable in July 2019 are secured by way
of a charge on specific freehold and leasehold properties which are included in
the financial statements at a value of £87.1 million.
The Bisichi United Kingdom bank loans and overdraft are secured by way of a
first charge over the investment properties in the UK which are included in the
financial statements at a value of £11.6 million.
The Bisichi South African bank loans are secured by way of a first charge over
specific pieces of mining equipment, inventory and the debtors of the relevant
company which holds the loan which are included in the financial statements at
a value of £4.8 million.
The £1.9 million bank loan (Dragon) was repaid in 2015. A new bank loan of £
1.25 million which is repayable in November 2020 is secured by way of a first
charge on specific freehold property and which is included in the financial
statements at a value of £2.6 million.
The Group's objectives when managing capital are:
- To safeguard the Group's ability to continue as a going concern, so that
it may provide returns for shareholders and benefits for other stakeholders;
and
- To provide adequate returns to shareholders by ensuring returns are
commensurate with the risk.
22. Provisions
2015 2014
£'000 £'000
At 1 January 930 874
Exchange adjustment (162) (31)
Unwinding of discount 79 87
At 31 December 847 930
The above provision relates to mine rehabilitation costs in Bisichi.
23. Financial instruments
Total financial assets and liabilities
The Group's financial assets and liabilities and their fair values are as
follows:
Fair 2015 Fair 2014
value Carrying value Carrying
£'000 value £'000 value
£'000 £'000
Cash and cash equivalents 4,809 4,809 9,237 9,237
Assets held for sale 2,335 2,335 - -
Investments held to maturity 1,995 1,995 2,196 2,196
Loan to joint venture 900 900 1,040 1,040
Other investments 14 14 152 152
Investments held for trading 20 20 918 918
Available for sale investments 594 594 - -
Derivative assets 15 15 - -
Other assets 5,480 5,480 5,485 5,485
Derivative liabilities (587) (587) (656) (656)
Bank overdrafts (2,234) (2,234) (2,119) (2,119)
Bank loans (52,286) (51,346) (53,137) (52,076)
Present value of head leases on (4,784) (4,784) (4,788) (4,788)
properties
Other liabilities (5,603) (5,603) (5,689) (5,689)
Total financial liabilities (49,332) (48,392) (47,361) (46,300)
before debentures
Fair value of debenture stocks
Fair value of the Group's debenture liabilities:
Book Fair 2015 2014
value value Fair value Fair Value
£'000 £'000 adjustment adjustment
£'000 £'000
Debenture stocks (13,750) (17,325) (3,575) (4,320)
Tax at 20 per cent (2014: 20 per 715 864
cent)
Post tax fair value adjustment (2,860) (3,456)
Post tax fair value adjustment - (3.3)p (4.0)p
basic pence per share
There is no material difference in respect of other financial liabilities or
any financial assets.
The fair values were calculated by the directors as at 31 December 2015 and
reflect the replacement value of the financial instruments used to manage the
Group's exposure to adverse rate movements.
The fair values of the debentures are based on the net present value at the
relevant gilt interest rate of the future payments of interest on the
debentures. The bank loans and overdrafts are at variable rates and there is no
material difference between book values and fair values.
Investments held for trading and available for sale fall under level 1 of the
fair value hierarchy into which fair value measurements are recognised in
accordance with the levels set out in IFRS 7. Other investments are held at
cost. The directors are of the opinion that the difference in value between
cost and fair value of other investments is not significant or material. The
comparative figures for 2014 fall under the same category of financial
instrument as 2015.
Treasury policy
The Group enters into derivative transactions such as interest rate swaps and
forward exchange contracts in order to help manage the financial risks arising
from the Group's activities. The main risks arising from the Group's financing
structure are interest rate risk, liquidity risk and market price risk, credit
risk, commodity price risk and foreign exchange risk. The policies for managing
each of these risks and the principal effects of these policies on the results
are summarised below.
Sensitivity analysis
As all variable interest term debt has been covered by derivatives it is not
considered that there is any material sensitivity for the Group to changes in
interest rates.
Interest rate risk
Treasury activities take place under procedures and policies approved and
monitored by the Board to minimise the financial risk faced by the Group. The £
34.897 million bank loan and Bisichi United Kingdom bank loans and overdraft
are secured by way of a first charge on certain fixed assets. The rates of
interest vary based on LIBOR in the UK.
The £10.105 million term bank loan is secured by way of a second charge on
certain fixed assets. This loan is based on a fixed interest rate.
The Bisichi South African bank loans are secured by way of a first charge over
specific pieces of mining equipment, inventory and the debtors of the relevant
company which holds the loan. The rates of interest vary based on PRIME in
South Africa.
The £1.25 million bank loan (Dragon) is secured by way of a first charge on
specific freehold property. The rate of interest varies based on LIBOR in the
UK.
Liquidity risk
The Group's policy is to minimise refinancing risk by balancing its exposure to
interest risk and to refinancing risk. In effect the Group seeks to borrow for
as long as possible at the lowest acceptable cost. Efficient treasury
management and strict credit control minimise the costs and risks associated
with this policy which ensures that funds are available to meet commitments as
they fall due. Cash and cash equivalents earn interest at rates based on LIBOR
in the UK. These facilities are considered adequate to meet the Group's
anticipated cash flow requirements for the foreseeable future.
In South Africa, an increase in the structured trade facility from R60 million
(South African Rand) to R80 million was signed by Black Wattle Colliery (Pty)
Limited with Absa Bank Limited, a South African subsidiary of Barclays Bank
PLC. The facility is renewable annually at 30 June and is secured against
inventory, debtors and cash that are held by Black Wattle Colliery (Pty)
Limited.
The table below analyses the Group's financial liabilities into maturity
Groupings and also provides details of the liabilities that bear interest at
fixed, floating and non-interest bearing rates.
2015 Less than 2-5 years Over
Total 1 year £'000 5 years
£'000 £'000 £'000
Bank overdrafts (floating) 2,234 2,234 - -
Debentures (fixed) 13,638 - 3,750 9,888
Bank loans (fixed) 9,881 - 9,881 -
Bank loans (floating)* 41,465 33 41,432 -
Trade and other payables 6,646 5,776 737 133
(non-interest)
73,864 8,043 55,800 10,021
2014 Less than 2-5 years Over
Total 1 year £'000 5 years
£'000 £'000 £'000
Bank overdrafts (floating) 2,119 2,119 - -
Debentures (fixed) 14,871 1,250 3,750 9,871
Bank loans (fixed) 9,818 - 9,818 -
Bank loans (floating)* 42,258 221 42,037 -
Trade and other payables 6,572 5,689 749 134
(non-interest)
75,638 9,279 56,354 10,005
The Group would normally expect that sufficient cash is generated in the
operating cycle to meet the contractual cash flows as disclosed above through
effective cash management.
*Certain bank loans are fully hedged with appropriate interest derivatives.
Details of all hedges are shown below.
23. Financial instruments continued
Market price risk
The Group is exposed to market price risk through interest rate and currency
fluctuations.
Credit risk
At the balance sheet date there were no significant concentrations of credit
risk. The maximum exposure to credit risk is represented by the carrying amount
of each financial asset in the balance sheet. The Group only deposits surplus
cash with well-established financial institutions of high quality credit
standing.
Commodity price risk
Commodity price risk is the risk that the Group's future earnings will be
impacted adversely by changes in the market of commodities. Bisichi is exposed
to commodity price risk as its future revenues will be derived based on a
contract with a physical off-take partner at prices that will be determined by
reference to market prices of coal at the delivery date.
From time to time Bisichi may manage its exposure to commodity price risk by
entering into forward sales contracts with the goal of preserving future
revenue streams.
Foreign exchange risk
Only Bisichi is subject to this risk. For Bisichi all trading is undertaken in
the local currencies. Funding is also in local currencies other than
inter-company investments and loans and it is not the Group's policy to obtain
forward contracts to mitigate foreign exchange risk on these amounts. During
2015 and 2014 the Group did not hedge its exposure of foreign investments held
in foreign currencies.
The table below shows the Bisichi currency profiles of cash and cash
equivalents:
2015 2014
£'000 £'000
Sterling 1,135 1,697
South African Rand 470 1,138
US Dollar 3 3
1,608 2,838
Cash and cash equivalents earn interest at rates based on LIBOR in Sterling and
Prime in Rand.
The tables below shows the Bisichi currency profiles of net monetary assets and
liabilities by functional currency:
2015: UK South
£'000 Africa
£'000
Sterling (3,221) -
South African Rand 89 (136)
US Dollar 13 -
(3,119) (136)
2014: UK South
£'000 Africa
£'000
Sterling (2,515) -
South African Rand 153 618
US Dollar 20 -
(2,342) 618
The directors consider there to be no significant risk from exchange rate
movements of foreign currencies against the functional currencies of the
reporting companies within the Group. As such no sensitivity analysis is
prepared.
Borrowing facilities
At 31 December 2015 the Group was within its bank borrowing facilities and was
not in breach of any of the covenants. Term loan repayments are as set out
below. Details of other financial liabilities are shown in Notes 20 and 21.
Interest rate and hedge profile
2015 2014
£'000 £'000
Fixed rate borrowings 23,855 25,105
Floating rate borrowings
- Subject to interest rate swap 36,148 34,898
60,003 60,003
Average fixed interest rate 9.24% 9.36%
Weighted average swapped interest rate 3.41% 4.79%
Weighted average cost of debt on overdrafts, bank loans 5.71% 5.90%
and debentures
Average period for which borrowing rate is fixed 4.8 years 5.5 years
Average period for which borrowing rate is swapped 3.5 years 4.5 years
The Group's floating rate debt bears interest based on LIBOR for the term bank
loans and bank base rate for the overdraft.
At 31 December 2015 the Group had hedges totalling £35 million to cover the £
34.9 million bank loan. These consisted of a 5 year swap for £17.5 million,
taken out in July 2014 at 2.25% and a £17.5 million cap agreement taken out in
July 2014 at 2.25% until 29 January 2016 and a swaption at 2.25% on the capped
portion from 29 January 2016 to 1 July 2019. Since the year end the swaption
was not exercised and was replaced in January 2016 with a £17.4 million cap
agreement to 1 July 2019.
Under IFRS 13 the hedges are not deemed to be eligible for hedge accounting and
any movement in the value of the hedges is therefore charged directly to the
consolidated income statement.
At the year end the fair value liability in the accounts was £587,000 (2014: £
656,000) as valued by the hedge provider.
At 31 December 2015, Dragon had hedges of £1.25 million to cover the £1.25
million bank loan. This consists of a 5 year £1.25 million cap agreement taken
out in November 2015 at 2.5%. At the year end, the fair value asset in the
accounts was £15,000, as valued by the hedge provider.
Fair value of financial instruments
Fair value estimation
The Group has adopted the amendment to IFRS 7 for financial instruments that
are measured in the balance sheet at fair value. This requires the methods of
fair value measurement to be classified into a hierarchy based on the
reliability of the information used to determine the valuation, as follows:
- Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1).
- Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (level 2).
- Inputs for the asset or liability that are not based on observable market
data (that is unobservable inputs) (level 3).
Level 1 Level 2 Level 3 Total 2015
£'000 £'000 £'000 £'000 Gain/loss
to income
statement
£'000
Financial assets
Other financial assets
held for trading and
available for sale
Quoted equities 614 - - 614 (12)
Derivative financial
instruments
Interest rate swaps 15 15 -
Financial liabilities
Derivative financial
instruments
Interest rate swaps - 587 - 587 84
Level 1 Level 2 Level 3 Total 2014
£'000 £'000 £'000 £'000 loss
to income
statement
£'000
Financial assets
Other financial assets
held for trading and
available for sale
Quoted equities 918 - - 918 (86)
Financial liabilities
Derivative financial
instruments
Interest rate swaps - 656 - 656 (1,086)
Capital structure
The Group sets the amount of capital in proportion to risk. It ensures that the
capital structure is commensurate to the economic conditions and risk
characteristics of the underlying assets. In order to maintain or adjust the
capital structure, the Group may vary the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets
to reduce debt.
The Group considers its capital to include share capital, share premium,
capital redemption reserve, translation reserve and retained earnings, but
excluding the interest rate derivatives.
Consistent with others in the industry, the Group monitors its capital by its
debt to equity ratio (gearing levels). This is calculated as the net debt
(loans less cash and cash equivalents) as a percentage of the equity calculated
as follows:
2015 2014
£'000 £'000
Total debt 67,218 69,066
Less cash and cash equivalents (4,809) (9,237)
Net debt 62,409 59,829
Total equity 49,652 53,598
125.7% 111.6%
The Group does not have any externally imposed capital requirements.
Financial assets
The Group's principal financial assets are bank balances and cash, trade and
other receivables and investments. The Group has no significant concentration
of credit risk as exposure is spread over a large number of counterparties and
customers. The credit risk in liquid funds and derivative financial instruments
is limited because the counterparties are banks with high credit ratings
assigned by international credit-rating agencies. The Group's credit risk is
primarily attributable to its trade receivables. The amounts presented in the
balance sheet are net of allowances for doubtful receivables, estimated by the
Group's management based on prior experience and the current economic
environment.
Financial assets maturity
Cash and cash equivalents all have a maturity of less than three months.
2015 2014
£'000 £'000
Cash at bank and in hand 4,809 9,237
These funds are primarily invested in short term bank deposits maturing within
one year bearing interest at the bank's variable rates.
Financial liabilities maturity
Repayment of borrowings
2015 2014
£'000 £'000
Bank loans and overdrafts:
Repayable on demand or within one year 2,267 2,340
Repayable between two and five years 51,313 51,855
53,580 54,195
Debentures:
Repayable within one year - 1,250
Repayable between two and five years 3,750 3,750
Repayable in more than five years 9,888 9,871
67,218 69,066
Certain borrowing agreements contain financial and other conditions that if
contravened by the Group, could alter the repayment profile.
24. Deferred tax asset
2015 2014
£'000 £'000
Balance at 1 January 2,324 5,651
Transferred to consolidated income statement 66 (3,327)
Balance at 31 December 2,390 2,324
The deferred tax balance comprises the following:
Revaluation of properties (2,226) (3,211)
Accelerated capital allowances (952) (1,052)
Fair value of interest derivatives 111 131
Short-term timing differences (131) (143)
Loss relief 5,588 6,599
Deferred tax asset provision at end of period: 2,390 2,324
The directors consider the temporary differences arising in connection with the
interests in joint ventures are insignificant. There is no time limit in
respect of the Group tax loss relief.
25. Deferred tax liabilities
2015 2014
£'000 £'000
Balance at 1 January 2,410 2,070
Transferred to consolidated income statement 29 378
Transferred to other comprehensive income (41) -
Exchange adjustment (292) (38)
Balance at 31 December 2,106 2,410
The deferred tax balance comprises the following:
Revaluation of properties 724 929
Accelerated capital allowances 1,490 1,421
Short-term timing differences (111) 60
Fair value of interest derivatives 3 -
Deferred tax liability provision at end of period: 2,106 2,410
26. Share capital
Number of Number of
ordinary ordinary
10p 10p 2015 2014
shares shares £'000 £'000
2015 2014
Authorised: ordinary shares of 110,000,000 110,000,000 11,000 11,000
10p each
Allotted, issued and fully paid 85,542,711 85,542,711 8,554 8,554
share capital
Less: held in Treasury (see (734,816) (1,032,991) (73) (103)
below)
"Issued share capital" for 84,807,895 84,509,720 8,481 8,451
reporting purposes
The Company has one class of ordinary shares which carry no right to fixed
income.
Treasury shares
Number of ordinary Cost/issue value
10p shares
2015 2014 2015 2014
£'000 £'000
Shares held in Treasury at 1 1,032,991 1,254,738 883 1,159
January
Issued to meet directors bonuses (431,476) (264,257) (369) (244)
(Jan 2015 - 37.75p) 2014: (Feb 14
- 58.25p)
Issued to meet staff bonuses (Jan (111,678) (91,728) (95) (84)
2015 - 37.75p) 2014: (Feb 14 -
58.25p)
Issued for new directors share (7,947) (5,150) (7) (5)
incentive plan (Jan 2015 -
37.75p) 2014: (Feb 14 - 58.25p)
Issued for new staff share (47,271) (30,368) (40) (28)
incentive plan (Jan 2015 -
37.75p) 2014: (Feb 14 - 58.25p)
Purchase of shares (Jun 2015 - 133,333 171,674 50 87
37.69p) 2014: (Apr 14 - 50.65p)
Purchase of shares (Oct 2015 - 166,864 - 60 -
36.18p)
Issued to meet staff bonuses (Dec - (1,918) - (2)
14 - 39.5p)
Shares held in Treasury at 31 734,816 1,032,991 482 883
December
Share Option Schemes
Employees' share option scheme (Approved scheme)
At 31 December 2015 there were no options to subscribe for ordinary shares
outstanding, issued under the terms of the Employees' Share Option Scheme.
This share option scheme was approved by members in 1986, and has been approved
by Her Majesty's Revenue and Customs (HMRC).
There are no performance criteria for the exercise of options under the
Approved scheme, as this was set up before such requirements were considered to
be necessary.
A summary of the shares allocated and options issued under the scheme up to 31
December 2015 is as follows:
Changes during the year
At 1 At 31
January Options Options Options December
2015 Exercised granted lapsed 2015
Shares issued to date 2,367,604 - - - 2,367,604
Shares allocated over 1,549,955 - - - 1,549,955
which options have not
been granted
Total shares allocated 3,917,559 - - - 3,917,559
for issue to employees
under the scheme
Non-approved Executive Share Option Scheme (Unapproved scheme)
A share option scheme known as the "Non-approved Executive Share Option Scheme"
which does not have HMRC approval was set up during 2000. At 31 December 2015
there were no options to subscribe for ordinary shares outstanding.
The exercise of options under the Unapproved scheme is subject to the
satisfaction of objective performance conditions specified by the remuneration
committee which confirms to institutional shareholder guidelines and best
practice provisions.
A summary of the shares allocated and options issued under the scheme up to 31
December 2015 is as follows:
Changes during the year
At 1 At 31
January Options Options Options December
2015 Exercised granted lapsed 2015
Shares 450,000 - - - 450,000
issued to
date
Shares 550,000 - - - 550,000
allocated
over which
options have
not yet been
granted
Total shares 1,000,000 - - - 1,000,000
allocated
for issue to
employees
under the
scheme
The Bisichi Mining PLC Unapproved Option Schemes
Details of the share option schemes in Bisichi are as follows:
Number of
Number of share Number of
Period within shares options shares
Subscription which options for which issued/ for which
Year of price per exercisable options exercised/ options
grant share outstanding (cancelled) outstanding
at during year at
31 December 31 December
2014 2015
2006 237.5p Oct 2009 - Oct 325,000 - 325,000
2016
2010 202.5p Aug 2013 - Aug 80,000 - 80,000
2020
2012 34.0p Oct 2012 - Sep 193,000 (193,000) -
2022
2015 87.0p Sep 2015 - Sep - 300,000 300,000
2025
The exercise of options under the Unapproved Share Option Schemes, for certain
option issues, is subject to the satisfaction of objective performance
conditions specified by the remuneration committee, which will confirm to
institutional shareholder guidelines and best practice provisions in force from
time to time. The performance conditions for the 2010 scheme, agreed by members
on 31 August 2010 respectively, requires growth in net assets over a three year
period to exceed the growth of the retail prices index by a scale of
percentages. There are no performance or service conditions attached to the
other schemes.
The 2015 options were valued at £118,000 at date of grant using the
Black-Scholes-Merton model with the following assumptions:
Expected volatility 36.30%
Expected life 4 years
Risk free rate 0.994%
Expected dividends 4.47%
Expected volatility was determined by reference to the historical volatility of
the share price over a period commensurate with the option's expected life. The
expected life used in the model is used on the risk-average balance likely to
be required by the option holders.
2015 2014
Weighted Weighted
2015 average 2014 average
Number exercise Number exercise
price price
Outstanding at 1 January 598,000 167.1p 718,000 157.7p
Granted during year 300,000 87.0p - -
Cancelled during the year (193,000) 34.0p (80,000) (149.0p)
Exercised during the year - 0.0p (40,000) (34.0p)
Outstanding at 31 December 705,000 133.1p 598,000 167.1p
Exercisable at 31 December 705,000 133.1p 598,000 167.1p
27. Non-controlling interest ("NCI")
2015 2014
£'000 £'000
As at 1 January 10,826 10,001
Share of (loss)/profit for the year (147) 745
Share of gain on available for sale investments (94) 24
Dividends received (250) (292)
Shares issued 18 313
Shares cancelled (64) -
Exchange movement (718) (76)
Other changes in equity 3 111
As at 31 December 9,574 10,826
The following subsidiaries had material NCI:
Bisichi Mining PLC
Black Wattle Colliery (Pty) Ltd
Summarised financial information for these subsidiaries is set out below. The
information is before inter-company eliminations with other companies in the
Group.
BISICHI MINING PLC 2015 2014
£'000 £'000
Revenue 25,655 26,500
Profit for the year attributable to owners of the (259) 458
parent
Profit for the year attributable to NCI 4 745
Profit for the year (255) 1,203
Other comprehensive income attributable to owners of (1,241) (67)
the parent
Other comprehensive income attributable to NCI (87) (13)
Other comprehensive income for the year (1,328) (80)
Balance sheet
Non-current assets 20,480 21,924
Current assets 10,635 12,289
Total assets 31,115 34,213
Current liabilities (6,501) (7,148)
Non-current liabilities (8,983) (9,346)
Total liabilities (15,484) (16,494)
Net current assets at 31 December 15,631 17,719
Cash flows
From operating activities 1,979 3,406
From investing activities (2,773) (1,903)
From financing activities (947) 488
Net cash flows (1,741) 1,991
The non-controlling interest comprises of a 37.5% shareholding in Black Wattle
Colliery (Pty) Ltd, a coal mining company incorporated in South Africa.
Summarised financial information reflecting 100% of the underlying subsidiary's
relevant figures, is set out below.
Black Wattle Colliery (Pty) Limited ("Black Wattle") 2015 2014
£'000 £'000
Revenue 24,608 25,536
Expenses (24,582) (24,866)
Profit for the year 26 670
Total comprehensive income for the year 26 670
Balance sheet
Non-current assets 5,355 6,030
Current assets 5,932 8,054
Current liabilities (7,156) (9,125)
Non-current liabilities (1,988) (2,260)
Net assets at 31 December 2,143 2,699
The non-controlling interest relates to the disposal of a 37.5% shareholding in
Black Wattle in 2010. The total issued share capital in Black Wattle Colliery
(Pty) Ltd was increased from 136 shares to 1,000 shares at par of ZAR1 (South
African Rand) through the following shares issue:
- a subscription for 489 ordinary shares at par by Bisichi Mining
(Exploration) Limited increasing the number of shares held from 136 ordinary
shares to a total of 675 ordinary shares;
- a subscription for 110 ordinary shares at par by Vunani Mining (Pty) Ltd;
- a subscription for 265 "A" shares at par by Vunani Mining (Pty) Ltd
Bisichi Mining (Exploration) Limited is a wholly owned subsidiary of Bisichi
Mining PLC incorporated in England and Wales.
Vunani Mining (Pty) Ltd is a South African Black Economic Empowerment company
and minority shareholder in Black Wattle.
The "A" shares rank pari passu with the ordinary shares save that they will
have no dividend rights until such time as the dividends paid by Black Wattle
Colliery (Pty) Ltd on the ordinary shares subsequent to 30 October 2008 will
equate to ZAR832,075,000.
A non-controlling interest of 15% in Black Wattle is recognised for all profits
distributable to the 110 ordinary shares held by Vunani Mining (Pty) Ltd from
the date of issue of the shares (18 October 2010). An additional
non-controlling interest will be recognised for all profits distributable to
the 265 "A" shares held by Vunani Mining (Pty) Ltd after such time as the
profits available for distribution, in Black Wattle Colliery (Pty) Ltd, before
any payment of dividends after 30 October 2008, exceeds ZAR832,075,000.
28. Related party transactions
Cost Amounts Advanced
recharged owed to
to (by) by (to) (by)
related related related
party party party
£'000 £'000 £'000
Related party:
Langney Shopping Centre Unit
Trust
Current account 99 (i) 12 -
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