REG - South32 Limited - Final Results <Origin Href="QuoteRef">S32.AX</Origin> - Part 4
25/08/2016 07:08
- Part 4: For the preceding part double click ID:nRSY0873Ic
of Australian tax balances post
demerger and the Brazil Alumina tax accounting adjustments of US$481M.
The following table reconciles pro forma and statutory operating cash flows before financing activities and tax, and after
capital expenditure for FY15.
FY15 South32 statutory Demerger related pro forma adjustments(a) South32 pro forma consolidated financial information
consolidated
cash flow statement
US$M
Profit/(loss) from continuing operations (331) 850 519
Non-cash items 1,036 391 1,427
(Profit)/loss from equity accounted investments 70 (64) 6
Change in working capital (110) (4) (114)
Cash generated from continuing operations 665 1,173 1,838
Dividends received (including equity accounted investments) - 472 472
Capital expenditure (454) (175) (629)
Operating cash flows from continuing operations before financing activities and tax and after capital expenditure 211 1,470 1,681
(a) The significant items contained in the demerger related pro forma adjustments comprise:
· The results of the current South32 Group operations between 1 July 2014 and their date of acquisition during the
financial year as part of the Internal Restructure;
· Exclusion of the results of New Mexico Coal for the period 1 July 2014 to 27 October 2014 being the date that it
ceased to be part of the South32 Group as a result of the Internal Restructure;
· Presenting South32 manganese operations (comprising South Africa Manganese, Australia Manganese and Samancor AG)
on an equity accounted basis from 1 July 2014 including associated depreciation;
· Additional corporate costs associated with South32 Limited becoming a stand-alone group of US$46M; and
· Exclusion of demerger related set up costs, stamp duty on the acquisition of assets, and major corporate
restructuring costs of US$269M.
FY15 pro forma SEGMENT information
FY15 Worsley Alumina South Africa Aluminium Mozal Aluminium Brazil Alumina South Africa Energy Coal Illawarra Metallurgical Coal Australia Manganese(a) South Africa Manganese(a) Cerro Matoso Cannington Group and unallocated items/ elimination Statutory adjustment(a) Group
US$M
Revenue
Group production 656 1,541 630 497 1,315 814 595 410 593 902 - (1,005) 6,948
Third party products(b) - - - - - - - - - - 795 - 795
Inter-segment revenue 635 - - - - - - 10 - - (635) (10) -
Total revenue 1,291 1,541 630 497 1,315 814 595 420 593 902 160 (1,015) 7,743
Underlying EBITDA 325 317 149 259 276 167 243 32 133 342 (117) (277) 1,849
Depreciation and amortisation (151) (67) (37) (78) (182) (197) (120) (52) (75) (55) (6) 172 (848)
Underlying EBIT 174 250 112 181 94 (30) 123 (20) 58 287 (123) (105) 1,001
Comprising:
Group production 174 250 112 181 93 (31) 123 (20) 58 287 (151) (103) 973
Third party products(b) - - - - - - - - - - 28 - 28
Share of profit/(loss) of equity accounted investments(c) - - - - 1 1 - - - - - (2) -
Underlying EBIT from continuing operations 174 250 112 181 94 (30) 123 (20) 58 287 (123) (105) 1,001
Net finance cost(d) (194)
Income tax (expense)/benefit (232)
Underlying earnings 575
Earnings adjustments(e) (547)
Profit/(loss) after taxation from continuing operations 28
Capital expenditure(f) 62 35 14 8 98 308 98 41 36 39 29 (139) 629
Equity accounted investments - - - - 12 - - - - - - 1,695 1,707
Total assets(g) 3,720 1,475 730 1,039 1,414 1,782 1,649 748 997 453 2,271 (789) 15,489
Total liabilities(g) 359 324 104 111 1,019 264 265 218 234 173 2,202 (819) 4,454
(a) The segment information reflects South32's interest in the manganese operations and is presented on a proportional
consolidation basis, which is the measure used by South32's management to assess their performance. The manganese
operations are equity accounted in the consolidated financial statements. The statutory adjustment column reconciles the
proportional consolidation to equity accounting position.
(b) Third party product sold comprises US$394 million for aluminium, US$147 million for alumina, US$88 million for coal,
US$40 million for freight services and US$126 million for aluminium raw materials. Underlying EBIT on third party products
comprise US$1 million for aluminium, US$22 million for alumina, US$1 million for coal, US$ nil for freight services and
US$4 million for aluminium raw materials.
(c) Share of profit/(loss) of equity accounted investments includes the impacts of earnings adjustments to Underlying
EBIT.
(d) Excludes interest income and interest expense on borrowings with BHP Billiton.
(e) Refer page 45 for details of pro forma earnings adjustments.
(f) Capital expenditure excludes the purchase of intangibles and capitalised exploration expenditure.
(g) Total assets and liabilities for each operating segment represent operating assets and liabilities which
predominately exclude the carrying amount of equity accounted investments, cash, interest bearing liabilities and tax
balances.
disclaimer
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements, including statements about trends in commodity prices and currency
exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; capital costs
and scheduling; operating costs; anticipated productive lives of projects, mines and facilities; and provisions and
contingent liabilities. These forward-looking statements reflect expectations at the date of this release, however they are
not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors,
many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the
statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. Except
as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any
forward looking statements, whether as a result of new information or future events. Past performance cannot be relied on
as a guide to future performance.
NON-IFRS FINANCIAL INFORMATION
This release includes certain non-IFRS financial measures, including Underlying earnings, Underlying EBIT and Underlying
EBITDA, Underlying basic earnings per share, Underlying effective tax rate, Underlying EBIT margin, Underlying EBITDA
margin, Underlying return on capital, Free cash flow, net debt, net operating assets and ROIC. These measures are used
internally by management to assess the performance of our business, make decisions on the allocation of our resources and
assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as
an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.
NO OFFER OF SECURITIES
Nothing in this release should be read or understood as an offer or recommendation to buy or sell South32 securities, or be
treated or relied upon as a recommendation or advice by South32.
NO FINANCIAL OR INVESTMENT ADVICE - SOUTH AFRICA
South32 does not provide any financial or investment 'advice' as that term is defined in the South African Financial
Advisory and Intermediary Services Act, 37 of 2002, and we strongly recommend that you seek professional advice.
CERRO MATOSO MINERAL RESOURCES AND ORE RESERVES
Nickel
Mineral Resources
As at 30 June 2016 As at 30 June 2015
Measured Resources Indicated Resources Inferred Resources Total South32 Interest Total
Resources Resources
Deposit Ore Type Mt % Ni Mt % Ni Mt % Ni Mt % Ni % Mt % Ni
Cerro Matoso (1) Laterite (2) 48 1.2 130 0.9 42 0.8 220 0.9 99.94 280 0.9
SP (3) 15 1.0 43 0.9 - - 59 0.9 52 1.1
MNR - Ore 17 0.2 - - - - 17 0.2 17 0.2
Ore Reserves
As at 30 June 2016 As at 30 June 2015
Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Reserve Life South32 Interest Total Ore Reserves Reserve Life
Deposit Ore Type Mt % Ni Mt % Ni Mt % Ni Years % Mt % Ni Years
Cerro Matoso (1)(4)(5) Laterite 12 1.1 4.9 1.2 17 1.1 13 99.94 20 1.1 14
SP 9.1 1.1 16 1.1 25 1.1 25 1.3
(1) Cut-off grade
Mineral Resources Ore Reserves
Laterite 0.6% Ni 0.6% Ni
SP 0.6% Ni 0.6% Ni
MNR-Ore 0.12% Ni
(2) Decrease in Mineral Resources for Laterite due to application of updated metallurgical constraints.
(3) Increase in stockpile Mineral Resources due to additional drilling, density adjustment and application of updated metallurgical constraints.
(4) Ore delivered to process plant.
(5) Metallurgical Recovery: 84% (reserves to metal).
FURTHER INFORMATION
INVESTOR RELATIONS
Alex VolanteT +61 8 9324 9029M +61 403 328 408E Alex.Volante@south32.net Rob WardT +61 8 9324 9340M +61 431 596 831E Robert.Ward@south32.net
MEDIA RELATIONS
Tony Johnson James Clothier
T +61 8 9324 9190M +61 439 500 799E Tony.Johnson@south32.net T +61 8 9324 9697M +61 413 319 031E James.Clothier@south32.net
Further information on South32 can be found at www.south32.net.
South32 Limited (ABN 84 093 732 597)
Registered in Australia
(Incorporated in Australia under the Corporations Act 2001)
Registered Office: Level 35, 108 St Georges Terrace
Perth Western Australia 6000 Australia
ISIN: AU000000S320
JSE Sponsor: UBS South Africa (Pty) Ltd
25 August 2016
This information is provided by RNS
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