COMMENTARY
Earnings for
the
f1nancial
year to 30 June
2012 have mcreased by
25,3% on the
previous year to
R4,0 b!llion. The
mcrease is
mainly due
to the increased
earnings of
Assmang
Lim1ted
(Assmang), wh1ch
increased
by 19,0% to
R6,9 b!ll!on,
based on the
tradmg
condit!Ons
described
below Assore
holds a 50%
interest
1n Assmang,
which 1s
proportionate
ly consol!dated
1n accordance
with
lnternation
al Financial
Reportmg
Standards
(IFRS)
commiss1ons
earned on the
higher
sales of
Group
products 1ncreased
by 23,2% compared to
the prev1ous
f1nanc1a1 year
and also contnbuted
pos1t1ve1 y to the
Group's
earnmgs.
The 1ncreased
leve l of
earn1ngs for the
year was
due mostly
to h!gher sales
volumes of 1ron
ore and desp1te
lower us
Dollar
sales pnces
for ali of the
Group's
products, the
weaker Rand/US
Dollar
exchange
rate offset
these lower
sales prices to
a large
degree.
This
resulted 1n
revenues from
1ron ore
mcreasmg
substantiall
y; wh!le those
for the other
products
of the
Group
were at
s1milar
levels
compared
to the
prev1ous
financ1a1 year.
Sales volumes
Sales of 1ron ore 1ncreased ma1n1 y as a result of Assmang's Khuman1 lron ore Mme ramp1ng up 1ts product1on to 14 m!lllon tons per annurn. Product!on efflclenc!es led to mcreased volumes of manganese alloys 1n Ime Wlth the Group's strategy to mcrease 1ts ferromanganese capac1ty WhIle the closure of ehrome furnaces at Machadodorp works for the1r convers1on to manganese furnaces led to decreased sales of charge chrome, it did however result in additional chrome ore volumes bemg available for export
Assmang's turnover for the year under rev1ew mcreased to R23) bill1on (2011 R19,1 bill!on), and the following table sets out the sales volumes of Assmang's products for the year under rev1ew:
Year ended 30 June lncrease/
Finat resutts for the y.ear ended 30 June 2012• Headline earnings up
15,2% to a recordexchange rates, makes 1t difflcult to comment on the performance of the Group for the next s1x months w1th any conf1dence.
Dividends
The results 1n th1s
announcement Include
the mter1m
diV!dend
of 250 cents
(2011 200
cents) per share
wh!ch was declared on
16 Aprii 2012 and
pa1d to
shareholder
s on 14 May 2012. In
11ne w1th the
results for the
year, the Board has
declared
a f1na1
dlvidend
of 300 cents
(2011 250
cents) per
share,
makmg a
total
dlvidend 1n
respect of
proflt for the
year of 550 cents
(2011 450
cents) per
share.
The fina l d!VIdend
w111 be pa1d to
shareholders on
or about 1
october 2012
and, 1n
accordance
w1th IFRS, 1s
not
1ncluded 1n the
results
conta1ned 1n
th1s
announcement as
1t was declared after
year end
Review by auditors
Ernst &
Young lnc, the
Group's
auditors,
have reviewed
and issued
an
unmodlfied
report on
the
condensed
f1nanc1al results
1ncluded 1n th!s
announcement 1n
accordance w1th ISRE
241o- Rev1ew of lntenm
F1nanc1a1
1nformat1on Performed
by the lndependent
Aud1tor of the
Ent1ty A copy
of the1r report
1s
available
for
mspect1on
at the
reg1stered
offlce of the
company
Accounting policies and basis of preparation
The condensed
fmanc1a1
results for the
year under
rev1ew
have been
prepared under the
superv1s1on
of Mr CJ
cory; CA(SA)
and 1n accordance
w1th lAS 34- lntenm
Fmanc1a1
Report1ng as 1t
appl!es to fmal
results. The
accountmg
poi!Cies
appl!ed are
cons1stent
w1th
those
adopted
1n the
financial
year ended
30 June
2011.
Revisions
and
amendme
nts to,
and
interpretat!Ons
of IFRS
effectiv
e in the
year and
adopted early;
have not had a
matena1 1mpact on the
results or
d1sc1osures of the
Group
Directors
Since the intenm results announcement on 15 February 2012, the following changes to the Board have taken piace
• 3 May 2012 - Mr DMJ Ncube res1gned as lndependent non-execut1ve director,
• 31 August
2012- Mr PC (Phll)
crous
res1gned as
Group Techn1ca1
and
operat1ons
Director,
followmg
Metr1c tons
'000
*Excludmg mtra-group sa/es to al/oy plants
capitai expenditure
2012 2011 (decrease)%
R3,7 billion• Record iron ore
h1s
decis1on
to take
early
retirement
, and
• 1
september
2012 -
Messrs AD
(Aiastair)
Stalker and
BH (Tiaan) van
Aswegen,
both
prev1ousl
y alternate
d1rectors,were
appointed
as Group
Marketing
Director and
Group Techn1ca1
and operations
Director respect1ve1
y
Declaration of final dividend
Sharehold
ers are
adv1sed
that the board of
directors
("the
Board")
has
declared
Fmal Dividend
Number
111 ("the
DIVIdend"), of
300 cents
(2011; 250) per
share (gross) for
the year ended
30 June 2012 on
31 August 2012.
In terms of paragraph 11.17 of the Listings Requirement s of JSE L!mited, shareho lders are advised of
The bulk of the Group' s capitai expend1tur e occurs in Assmang and amounted to R4,5 bill!on (2011: R4,1 bill!on) for the year under review R3 bill!on was spent at the Khuman1 lron ore Mine, with R1,3 bill!on bemg spent on the Khuman1 EXpans1on Pro]ect (KEP), des1gned to produce 16 million tons of ore per annum. The KEP has been completed on schedule and w1thm budget A further R1,2 billlon was spent on development of the m1ne, largely on waste-stnpp1ng . Assmang's Manganese ore Mmes spent R450 m!ll!on, most of whlch was for replacement capitai 1tems and mobile mmmg equ1pment The amount 1ncludes R86 m1111on of the R5,6 billlon 1ntended spend on the expans1on of the manganese mines. R153 m!llion was spent on the ongoing developm ent of the Nchwanmg Manganese Mme. A further R150 mlllion was spent at cato R1dge works on enwonm ental and other sustamabil!ty pro]ect s. The convers1 on oftwo chrome furnaces to ferromanganese furnaces at Machadodorp works
volumes• Capitai expansion programme on schedule
the follow ing with regard to the dec1arat 1on
1. the Dlvidend has been declar ed from accumulated reven ue;
2. the l ocal DIVIdend Tax rate 1s 15%,
3. the company does not have any secondary compan1 es Tax (STC) cred!t avallable to reduce the impact ofthe Dlvidend Tax;
4. the net local divlde nd amount 1s 255 cents per share for shareholde rs 11able to pay the
DIVIdends Tax,
5. the 1ssued ordmary share capitai of Assore 1s 139 607 ooo shares; and
6. Assore's 1ncome Tax re ference number 1s 9045/018/84/ 4
The sal!ent dates are as follows
contmu es and it is expected that the furnaces w111 be comm1ssi oned in the third calendar quarter of
2012. Apart from the expenditur e in Assmang, R39 million has been spent on the developm ent of two underground chrom1te mmes at Rustenburg Mlnerals, the scheduled comm!ss1onmg of wh!ch 1s expected to meet the1r planned product1on volumes dunng calendar 2013.
• Last day for tradmg to quallfy and part1c1pate 1n the final d!VIdend
• Trad1ng "ex dIVIdend" commences
• Record date
• Dividend payment date
Thu rsday; 20
september
2012
Fnday; 21
september
2012
Fnday; 28 september 2012
Monday,1 october 2012
Outlook
sovere1gn debt issues 1n Europe,the apparent econom1c slowdown in China and subdued recovery 1n
the un1ted States, continue to hamper world economie growth, which is cntical to the level of globa l
• Final dividend increased to R3,00 per share
Share cert1f1cates may not be dematenal!sed or rematenal!s ed between Fnday; 21 september 2012 and Fnday; 28 september 2012, both days mc1us1 ve.
on behalf of the Board
steel product1 on and pred1ctin g the Group's perform ance. Although world steel product ion in the first
half of calend ar 2012 was at record l evels, this leve l 1s expected to decime over the next six months, wh!ch could result 1n a reduct1on 1n demand for the Group's products. In add1t1on, global supply of the Group's products has 1ncreased wh!ch has put pressure on pnces Th!s, together w1th the volatlllty 1n
consolidated income statementDesmond sacco
Cha1rman
Johannesburg
3 september 2012
consolidated statement of cash flowCJ Cory
ChJef Executwe Offlcer
Revenue
Year ended Year ended
30 June 30 June
2012 2011
Reviewed AUdlted
R'OOO R'OOJ
13 762 351 11 180 035
ASSETS
At At
30June 30 June
2012 2011
Reviewed AUdl ted
R'OOO R'OOO
Cash generated from operat1ons
Year ended
30 June
2012
Reviewed
R'OOO
3 757 225
Year ended
30 June
2011
AUdlted
R'OOJ
3 521 328
Turnover 12 947 766 10 547 805
Cost of sales (7 337 643) (6 044 740)
Gross proflt 5 610 123 4 503 056
Other 1ncome 1 984 313 848 731
F1nance costs (217 244) (77 790) Proflt before taxat1o n 5 584 726 4816 210
Taxation (1 537 692) (1 566 524)
Non-current assets
Property, plant and equipment, mvestment
propert1es and 1ntang1b le assets 9 529 499 8 027 352 lnvestme nts
- avallable- for-sale 239 332 887 249
- other 34 725 30 789
Cash
ut1llsed in
mvestmg
activit1es
Treasury
shares
acqu1red
Proceeds on
disposa l of
ava!lable-for
-sale
investments
Long-te
rm f1nance
ra1sed
Long ter m liabilitie s repa1d
lncrease 1n cash for the year
(2 318 977)
(2 692 555)
663 650
2 310 000 (713 900)
989 703
(2 193 127)
(894 555)
426 825
Profit for the year
4 047 034 3 249 686
Other non-current f1nanc1a l assets 106 665 53 051
Cash resource s at begmning of year
2 334 734
1 907 909
Attributable to
Sharehol ders of the holding company 4 033 013 3 219 754
Non-cont rolllng shareho lders 14 021 29 932
As above 4 047 034 3 249 686
Total non-cur rent assets 9 910 221 8 998 441
Current assets
cash resources per statement of financial position
3 324 437 2 334 734
Earnmgs as above 4 033 013 3 219 754
1mpa1rment of non-fm anc1al asset s 82 705
lnventon es 2 177 066 2 005 577
Trade and other receivab les 2 049 782 1 632 270
consolidated statement of changes in equityYear ended Year ended
Proflt on d!sposal of f1 xed assets
(1 863) (407)
cash resources 3 324 437 2 334 734
30 June 30June
Headline earnings for the year 3 707 763 3 219 347
Earnmgs per share (basic and dlluted) - cents 3 827 2 691
Headllne earnings per share (basic and diluted) - cents 3 519 2 690
D1v1dends per share declared 1n respect of the proflt for
Total current assets 7 551 285 5 972 581
TOTAL ASSETS 17 461 506 14 971 022
lShare capitai, share premium and other reserves
2012 2011
R'OOO R'OOJ
the year
(cents)
550 450
- lntenm 250
200
- Fmal
300 250
We1ght ed average number of ord1nary shares (mllllon)
Ordmary shares 1n 1ssue 139,61 139,61
Welght ed impact of treasury share s held 1n trust (34,24) (19,94)
105,37 119,67
EQUITY ANO LIABILITIES Share capitai and reserves
Ordmary shareho lders' 1nterest 11 200 402 10 765 524
Non-contr olling 1nteres ts 126 858 114 287
Total equ1ty 11 327 260 10879 811
Non-current liabilities
Deferre d taxat1on llabillt1es 2 357 001 2 173 621
Balance at begmning of year 734 092 529 210
Other
comprehen
sive
(loss)/incom
e (389 544)
204
882
Balance at end of year 344 548 734 092
Treasury shares
Balanc e at begmn1ng of year (2 359 028) (2 359 028) Acqu1red during the year (2 692 555)
Balance at end of year (5 051 583) (2 359 028)
Retained earnings
Balance at begmning of year 12 390 460 9 697 261
Profit for the year (as above)
net of tax
Proflt on d1sposa l of avallable- for-sa le invest ments recogn1 sed
Net ga1n on reva1uat1 on to market value of avallable -for-sal e
!nVestments
Deferre
d capita i
gains
taxat1
on
Attributabl
e to
Shareho lders of the holding company
Non-controllln g 1nterests
Year ended
30 June
Reviewed
3 643 469
14 021
Year ended
30 June
AUdlted
3 424 636
29 932
Long-te rm liabillt1e s 1 938 844 222 888
Total non-curr ent l!abillt1es 4 295 845 2 396 509
current liabilities
lnterest -bearmg 192 019 154 1 47
Non-mte rest-bear ing 1 646 382 1 540 555
Total
current
llab!llt!es
1 838 401 1
69 4
702
TOTAL EQUITY ANO LIABILITIES 17 461
506 14 971 022
cap1tal
expend1t
ure (R
mllllon) 2
312,5 2
112,5
Capitai commitment s (R milllon) 3 357,4 3 282,4
Segmental information
Prof1t for the year 4 033 013 3219 754
D1 v1dends pa1d (net of d1v1dend s on treasury shares)
numbers 109 and 11o aggregatmg RS,OO per share
(2011 R 4,40 per share) (516 036) (526 555) Balance at end of year 15 907 437 12 390 460
Ordinary shareholders' interest 11 200 402 10 765 524
Non-controlling interests
Balance at begmni ng of year 114 287 102 035
Total comprehe ns1ve mcome 14 021 29 932
D1 v1dend s pa1d to mmont1es (8 046) (14 153) Foreign currency transla t1on reserve aris1 ng on consol idat1on 6 596 (3 527)
Balance at end of year 126 858 114 287
Total equity 11 327 260 10 879 811
As above
Assore Limited
3 657 490 3
454 568
Joint venture mining and beneficiation
Other
Marketing mining and
Company registration number 1950!037394!06
Shar e code. ASR /SIN ZAE000146932 (Assore" or "Group" or "Company")
Directors:
Executive
l>=smon d Sacco (Chairman), CJ Cory (Chief Executive Officer), AD Stal ker (Marketing), BH van Aswegen
(Technica/ and Operations)
Alternate
PE Sacco
Non-executive
EM Southey * (Oe puty Chairman and Lead lndependent Director) , RJ Carpen ter, WF Urmson*
*lndepe ndent
Registered office
Assore House,15 Fncker Road,lllovo Boulevard, Johannesb urg, 2196
company secretaries
African Mming and Trust Company Lim1ted
Transfer office
Comput ershare lnvest or Services (Propriet ary) Lim1ted,70 Marsha ll Street, Johann esburg, 2001
Sponsor
The Standa rd Bank of South Afnca Lim1ted
R'OOO
Revenues
lron ore
Manganese
Chrome
sub-total and shipping beneficiation Eliminations*
Group
www.assore.com
*E /iminaHons comprise of the eliminatio n of the 50% share attributa ble to the }Oint venture party in Assmang and inter- segmental tr ansacHons
BASTIO N GRAPHICS
distributed by |