| | Published : November 18th, 2008 | Final Results Part 2o |
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RNS Number : 3421I
Lonmin PLC
18 November 2008
Lonmin Plc - Final Results Part 2o;?
Operating Statistics - 5 Year Review
|
|
Units |
2008 |
2007 |
20061 |
2005 |
2004 |
Tonnes mined |
|
|
|
|
|
|
|
|
Marikana |
Underground |
000 |
10,226 |
11,211 |
11,484 |
10,921 |
11,053 |
|
Opencast |
000 |
1,300 |
1,597 |
1,583 |
2,653 |
2,730 |
Limpopo |
Underground |
000 |
523 |
757 |
857 |
212 |
n/a |
|
Opencast |
000 |
- |
- |
14 |
- |
n/a |
Pandora attributable2 |
Underground |
000 |
124 |
128 |
100 |
54 |
7 |
|
Opencast |
000 |
275 |
286 |
176 |
- |
- |
Lonmin Platinum |
Underground |
000 |
10,875 |
12,096 |
12,441 |
11,187 |
11,060 |
|
Opencast |
000 |
1,575 |
1,883 |
1,772 |
2,653 |
2,730 |
|
Total |
000 |
12,449 |
13,979 |
14,213 |
13,840 |
13,790 |
% tonnes mined from UG2 reef |
|
% |
73.1 |
72.0 |
71.2 |
74.3 |
82.4 |
Tonnes milled3 |
|
|
|
|
|
|
|
Marikana |
Underground |
000 |
10,206 |
11,216 |
11,502 |
10,975 |
11,103 |
|
Opencast |
000 |
1,163 |
1,469 |
1,854 |
2,444 |
3,283 |
Limpopo |
Underground |
000 |
534 |
781 |
887 |
214 |
n/a |
|
Opencast |
000 |
- |
- |
14 |
- |
n/a |
Pandora4 |
Underground |
000 |
293 |
301 |
236 |
127 |
18 |
|
Opencast |
000 |
595 |
649 |
394 |
- |
- |
OrePurchases5 |
Underground |
000 |
- |
75 |
14 |
- |
- |
|
Opencast |
000 |
30 |
20 |
18 |
- |
- |
Lonmin Platinum |
Underground |
000 |
11,033 |
12,373 |
12,639 |
11,316 |
11,121 |
|
Opencast |
000 |
1,788 |
2,138 |
2,280 |
2,444 |
3,283 |
|
Total |
000 |
12,821 |
14,511 |
14,919 |
13,760 |
14,404 |
Milled head grade |
|
|
|
|
|
|
|
Marikana |
Underground |
g/t |
4.71 |
4.98 |
5.00 |
4.98 |
5.00 |
|
Opencast |
g/t |
3.06 |
4.11 |
4.25 |
4.88 |
4.86 |
Limpopo |
Underground |
g/t |
3.47 |
3.50 |
4.09 |
3.84 |
n/a |
|
Opencast |
g/t |
- |
- |
3.29 |
n/a |
n/a |
Pandora |
Underground |
g/t |
5.11 |
4.88 |
5.05 |
4.54 |
4.89 |
|
Opencast |
g/t |
5.04 |
5.33 |
4.92 |
n/a |
n/a |
OrePurchases |
Underground |
g/t |
- |
3.92 |
3.92 |
n/a |
n/a |
|
Opencast |
g/t |
2.90 |
5.16 |
4.14 |
n/a |
n/a |
Lonmin Platinum |
Underground |
g/t |
4.66 |
4.88 |
4.94 |
4.95 |
5.00 |
|
Opencast |
g/t |
3.70 |
4.39 |
4.36 |
4.88 |
4.86 |
|
Total |
g/t |
4.52 |
4.80 |
4.85 |
4.94 |
4.97 |
Metals in concentrate |
|
|
|
|
|
|
|
Lonmin Platinum |
Platinum |
oz |
732,125 |
869,832 |
964,958 |
908,972 |
n/c |
|
|
oz |
342,081 |
404,535 |
447,894 |
397,546 |
n/c |
|
Gold |
oz |
18,932 |
25,030 |
31,973 |
22,269 |
n/c |
|
Rhodium |
oz |
99,173 |
114,601 |
125,379 |
115,436 |
n/c |
|
Ruthenium |
oz |
152,772 |
182,326 |
198,491 |
187,967 |
n/c |
|
Iridium |
oz |
31,562 |
41,157 |
41,284 |
38,465 |
n/c |
|
Total PGMs |
oz |
1,376,645 |
1,637,481 |
1,809,979 |
1,670,655 |
n/c |
|
Nickel6 |
mt |
3,549 |
4,636 |
5,120 |
4,042 |
n/c |
|
Copper6 |
mt |
2,216 |
2,814 |
3,104 |
2,498 |
n/c |
|
Units |
2008 |
2007 |
20061 |
2005 |
2004 |
Metallurgical production |
|
|
|
|
|
|
Lonmin refined metal production |
|
|
|
|
|
|
Platinum |
oz |
699,942 |
695,842 |
799,070 |
796,082 |
771,913 |
|
oz |
330,209 |
318,758 |
369,859 |
348,681 |
334,371 |
Gold |
oz |
20,257 |
20,485 |
20,955 |
17,059 |
13,828 |
Rhodium |
oz |
91,063 |
88,469 |
115,453 |
87,632 |
79,877 |
Ruthenium |
oz |
158,424 |
135,873 |
174,639 |
172,610 |
144,004 |
Iridium |
oz |
31,599 |
30,430 |
40,836 |
25,110 |
27,204 |
Total PGMs |
oz |
1,331,493 |
1,289,857 |
1,520,812 |
1,447,174 |
1,371,197 |
Toll refined metal production |
|
|
|
|
|
|
Platinum |
oz |
- |
93,609 |
- |
46,354 |
61,909 |
|
oz |
- |
43,274 |
- |
21,115 |
24,334 |
Gold |
oz |
- |
- |
- |
731 |
411 |
Rhodium |
oz |
- |
12,966 |
- |
7,133 |
10,135 |
Ruthenium |
oz |
- |
20,439 |
- |
11,524 |
20,436 |
Iridium |
oz |
- |
4,090 |
- |
2,263 |
3,338 |
Total PGMs |
oz |
- |
174,378 |
- |
89,120 |
120,563 |
Total refined PGMs |
|
|
|
|
|
|
Platinum |
oz |
699,942 |
789,451 |
799,070 |
842,436 |
833,822 |
|
oz |
330,209 |
362,032 |
369,859 |
369,796 |
358,705 |
Gold |
oz |
20,257 |
20,485 |
20,955 |
17,790 |
14,239 |
Rhodium |
oz |
91,063 |
101,435 |
115,453 |
94,765 |
90,012 |
Ruthenium |
oz |
158,424 |
156,312 |
174,639 |
184,134 |
164,440 |
Iridium |
oz |
31,599 |
34,520 |
40,836 |
27,373 |
30,542 |
Total PGMs |
oz |
1,331,493 |
1,464,235 |
1,520,812 |
1,536,294 |
1,491,760 |
Base metals |
|
|
|
|
|
|
Nickel7 |
mt |
3,483 |
4,522 |
4,342 |
4,187 |
3,098 |
Copper7 |
mt |
2,009 |
2,466 |
2,452 |
2,547 |
1,965 |
Capital expenditure8 |
Rm |
2,816 |
1,923 |
1,207 |
1,180 |
1,230 |
|
$m |
378 |
276 |
182 |
190 |
187 |
|
Units |
2008 |
2007 |
20061 |
2005 |
2004 |
Sales
Refined metal sales |
|
|
|
|
|
|
Platinum |
oz |
706,492 |
786,552 |
803,471 |
838,859 |
858,211 |
|
oz |
329,460 |
362,077 |
373,303 |
364,080 |
366,988 |
Gold |
oz |
20,151 |
24,449 |
22,133 |
18,122 |
18,498 |
Rhodium |
oz |
93,337 |
102,916 |
116,281 |
93,453 |
103,641 |
Ruthenium |
oz |
158,477 |
162,853 |
179,557 |
183,372 |
192,635 |
Iridium |
oz |
32,140 |
37,858 |
38,092 |
26,676 |
36,390 |
Total PGMs |
oz |
1,340,057 |
1,476,705 |
1,532,837 |
1,524,562 |
1,576,363 |
Concentrate and other9 |
|
|
|
|
|
|
Platinum |
oz |
20,425 |
7,032 |
136,183 |
71,396 |
80,032 |
|
oz |
11,888 |
3,232 |
61,110 |
37,003 |
36,999 |
Gold |
oz |
117 |
201 |
4,641 |
2,362 |
2,887 |
Rhodium |
oz |
889 |
1,008 |
15,965 |
21,552 |
20,312 |
Ruthenium |
oz |
26,205 |
1,942 |
26,137 |
20,517 |
25,814 |
Iridium |
oz |
1,789 |
64 |
5,291 |
2,548 |
4,163 |
Total PGMs |
oz |
61,313 |
13,479 |
249,327 |
155,377 |
170,207 |
Lonmin Platinum |
|
|
|
|
|
|
Platinum |
oz |
726,918 |
793,584 |
939,654 |
910,255 |
938,243 |
|
oz |
341,348 |
365,309 |
434,413 |
401,083 |
403,987 |
Gold |
oz |
20,268 |
24,650 |
26,774 |
20,484 |
21,385 |
Rhodium |
oz |
94,227 |
103,924 |
132,246 |
115,005 |
123,953 |
Ruthenium |
oz |
184,682 |
164,795 |
205,694 |
203,889 |
218,449 |
Iridium |
oz |
33,929 |
37,922 |
43,384 |
29,224 |
40,553 |
Total PGMs |
oz |
1,401,371 |
1,490,184 |
1,782,164 |
1,679,939 |
1,746,570 |
Nickel |
mt |
3,338 |
5,308 |
4,604 |
3,892 |
4,017 |
Copper |
mt |
1,978 |
2,474 |
2,974 |
2,481 |
2,070 |
Average Prices |
Platinum |
$/oz |
1,655 |
1,213 |
1,091 |
852 |
818 |
|
|
$/oz |
372 |
339 |
300 |
185 |
228 |
|
Gold |
$/oz |
867 |
647 |
571 |
425 |
402 |
|
Rhodium |
$/oz |
7,614 |
5,757 |
3,971 |
1,684 |
762 |
|
Ruthenium |
$/oz |
340 |
404 |
134 |
66 |
46 |
|
Iridium |
$/oz |
414 |
402 |
233 |
153 |
132 |
|
Basket price of PGMs |
$/oz |
1,529 |
1,196 |
972 |
668 |
590 |
|
Nickel |
$/MT |
22,556 |
26,461 |
17,975 |
12,527 |
11,444 |
|
Copper |
$/MT |
7,212 |
6,971 |
7,882 |
3,168 |
2,261 |
|
|
Units |
2008 |
2007 |
20061 |
2005 |
2004 |
Cost per PGM ounce sold |
|
|
|
|
|
|
Group: |
|
|
|
|
|
|
Mining ? Marikana |
R/oz |
3,380 |
2,306 |
1,700 |
1,606 |
1,422 |
Mining ? Limpopo |
R/oz |
6,363 |
4,463 |
3,740 |
3,587 |
- |
Mining (weighted average) |
R/oz |
3,979 |
2,430 |
1,827 |
1,636 |
1,422 |
Concentrating ? Marikana |
R/oz |
724 |
470 |
330 |
283 |
274 |
Concentrating ? Limpopo |
R/oz |
1,743 |
1,506 |
847 |
814 |
- |
Concentrating (weighted average) |
R/oz |
761 |
526 |
361 |
291 |
274 |
Process division |
R/oz |
686 |
600 |
406 |
269 |
242 |
Shared business services |
R/oz |
845 |
612 |
463 |
345 |
316 |
Stock movement |
R/oz |
(863) |
28 |
(9) |
14 |
165 |
C1 cost per PGM ounce sold
before base metal credits |
R/oz |
5,408 |
4,196 |
3,048 |
2,555 |
2,419 |
Base metal credits |
R/oz |
(482) |
(762) |
(400) |
(242) |
(233) |
C1 cost per PGM ounce sold
after base metal credits |
R/oz |
4,926 |
3,434 |
2,648 |
2,313 |
2,186 |
Amortisation |
R/oz |
420 |
360 |
272 |
252 |
232 |
Other EBIT items |
R/oz |
- |
- |
- |
(28) |
- |
C2 costs per PGM ounce sold |
R/oz |
5,346 |
3,794 |
2,920 |
2,537 |
2,418 |
Pandora Mining cost: |
|
|
|
|
|
|
C1 Pandora mining cost (in joint venture) R/oz |
3,223 |
2,453 |
1,795 |
n/c |
n/c |
Pandora JV cost/ounce to Lonmin
(adjusting Lonmin share of profit) R/oz |
6,200 |
4,225 |
3,110 |
n/c |
n/c |
Exchange Rates |
|
|
|
|
|
|
|
Average rate for period10 |
|
|
|
|
|
|
|
R/$ |
7.45 |
7.14 |
6.63 |
6.28 |
6.60 |
|
?/$ |
0.51 |
0.51 |
0.55 |
0.54 |
0.56 |
Closing rate |
|
|
|
|
|
|
|
R/$ |
8.27 |
6.83 |
7.77 |
6.36 |
6.48 |
|
?/$ |
0.56 |
0.50 |
0.53 |
0.57 |
0.55 |
Footnotes:
1. 2006 comprised an additional 7 days mining performance for WPL and EPL arising on the change of basis to report on a calendar month. The data has been restated to remove these extra days and restate on a like for like basis.
2. Pandora attributable tonnes mined includes Lonmin?s share (42.5%) of the total tonnes mined on the Pandora joint venture. Prior years have been restated.
3. Tonnes milled excludes slag milling.
4. Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.
5. Relates to the tonnes milled and derived metal in concentrate from third-party ore purchases.
6. Corresponds to contained base metals in concentrate.
7. Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained metal. Copper is produced as refined product but typically at LME grade C.
8. Capital expenditure is the aggregate of the purchase of property, plant and equipment and intangible assets as shown in the consolidated cash flow statement.
9. Concentrate and other sales have been adjusted to a saleable ounces basis using standard industry recovery rates. Prior years have been restated. During the fourth quarter of 2008 financial year, 25,000 oz of refined Ruthenium and 1,500 oz of refined iridium were bought and sold to meet contractual commitments. The metallurgy section of the above table excludes these transactions as they relate to third party mined and processed metals but they are included in the sales section.
10. Exchange rates are based on the weighted average rates applicable over the course of the year on revenue between Rand and US$.
N/A Not applicable
N/C Not calculated
Consolidated income statement
for the year ended 30 September
Continuing operations |
Note |
2008
Underlying i
$m |
Special
items
(note 3)
$m |
2008
Total
$m |
2007
Underlying i
$m |
Special
items
(note 3)
$m |
2007
Total
$m |
Revenue |
2 |
2,231 |
- |
2,231 |
1,941 |
- |
1,941 |
EBITDAii |
|
1,059 |
(25) |
1,034 |
883 |
(2) |
881 |
Depreciation, amortisation and impairment |
|
(96) |
(174) |
(270) |
(87) |
- |
(87) |
Operating profit / (loss)iii |
|
963 |
(199) |
764 |
796 |
(2) |
794 |
Impairment of available for sale financial assets |
|
- |
(19) |
(19) |
- |
- |
- |
Finance income |
4 |
13 |
- |
13 |
25 |
- |
25 |
Finance expenses |
4 |
(6) |
- |
(6) |
(28) |
(104) |
(132) |
Share of profit of associate and
joint venture |
|
27 |
- |
27 |
18 |
- |
18 |
Profit / (loss) before taxation
Income tax expense iv |
5 |
997
(322) |
(218)
109 |
779
(213) |
811
(255) |
(106)
(42) |
705
(297) |
Profit / (loss) for the year |
|
675 |
(109) |
566 |
556 |
(148) |
408 |
|
|
|
|
|
|
|
|
Attributable to:
- Equity shareholders of Lonmin Plc
- Minority interest |
|
550
125 |
(95)
(14) |
455
111 |
453
103 |
(139)
(9) |
314
94 |
Earnings per share |
6 |
351.9c |
|
291.1c |
295.9c |
|
205.1c |
Diluted earnings per share v |
6 |
350.7c |
|
290.2c |
293.4c |
|
203.3c |
Dividends paid per share |
7 |
|
|
119.0c |
|
|
110.0c |
Consolidated statement of recognised income and expense
for the year ended 30 September
|
Note |
2008
Total
$m |
2007
Total
$m |
Profit for the year |
|
566 |
408 |
Change in fair value of available for sale financial assets |
|
(127) |
111 |
Net changes in fair value of cash flow hedges |
|
16 |
(8) |
Losses / (gains) on settled cash flow hedges released to the income statement |
|
(4) |
20 |
Foreign exchange on retranslation of associate |
|
5 |
- |
Deferred tax on items taken directly to the statement of recognised income and expense |
|
16 |
(32) |
Actuarial losses on post retirement benefit plan |
|
- |
(11) |
Total recognised income for the year |
|
472 |
488 |
Attributable to:
- Equity shareholders of Lonmin Plc
- Minority interest |
9
9 |
352
120 |
392
96 |
|
9 |
472 |
488 |
Footnotes:
i Underlying earnings are calculated on profit for the period excluding pension scheme payments relating to scheme settlements, profit on disposal of subsidiaries, revaluations and impairment of assets, takeover bid defence costs, foreign exchange on tax balances and effects of changes in corporate tax rates. For the prior period, special items also included profit on the sale of Marikana houses, pension scheme net refunds relating to scheme settlements and movements in the fair value of the embedded derivative associated with the convertible bonds as disclosed in note 3 to the accounts.
ii EBITDA is operating profit before depreciation, amortisation and impairment.
iii Operating profit is defined as revenue less operating expenses before impairment of available for sale financial assets, net finance costs and share of profit of associate and joint venture.
iv The income tax expense substantially relates to overseas taxation and includes exchange gains of $88 million (2007 - exchange losses of $51 million) as disclosed in note 5.
v In the prior period the calculation of diluted EPS included consideration of the movement in fair value of the embedded derivative within the convertible bonds subject to the limitation under IAS 33 - Earnings Per Share, that this cannot thereby create a figure exceeding basic EPS.
Consolidated balance sheet
as at 30 September
|
Note |
2008
$m |
2007
$m |
Non-current assets |
|
|
|
Goodwill |
|
113 |
186 |
Intangible assets |
|
949 |
936 |
Property, plant and equipment |
|
1,893 |
1,673 |
Investment in associate and joint venture |
|
163 |
131 |
Available for sale financial assets |
|
96 |
226 |
Other receivables |
|
19 |
22 |
|
|
3,233 |
3,174 |
|
|
|
|
Current assets |
|
|
|
Inventories |
|
319 |
186 |
Trade and other receivables |
|
326 |
338 |
Assets held for sale |
|
6 |
7 |
Tax recoverable |
|
5 |
3 |
Derivative financial instruments |
|
20 |
8 |
Cash and cash equivalents |
8 |
226 |
222 |
|
|
902 |
764 |
|
|
|
|
Current liabilities |
|
|
|
Overdraft |
8 |
- |
(1) |
Trade and other payables |
|
(346) |
(286) |
Interest bearing loans and borrowings |
8 |
- |
(237) |
Tax payable |
|
(55) |
(40) |
|
|
(401) |
(564) |
Net current assets |
|
501 |
200 |
Non-current liabilities |
|
|
|
Employee benefits |
|
(21) |
(24) |
Interest bearing loans and borrowings |
8 |
(529) |
(359) |
Deferred tax liabilities |
|
(540) |
(585) |
Provisions |
|
(50) |
(46) |
|
|
(1,140) |
(1,014) |
Net assets |
|
2,594 |
2,360 |
Capital and reserves |
|
|
|
Share capital |
9 |
156 |
156 |
Share premium |
9 |
305 |
299 |
Other reserves |
9 |
100 |
96 |
Retained earnings |
9 |
1,586 |
1,417 |
Attributable to equity shareholders of Lonmin Plc |
9 |
2,147 |
1,968 |
Attributable to minority interest |
9 |
447 |
392 |
Total equity |
9 |
2,594 |
2,360 |
|
|
|
|
Consolidated cash flow statement
for the year ended 30 September
|
Note |
2008
$m |
2007
$m |
Profit for the year |
|
566 |
408 |
Taxation |
5 |
213 |
297 |
Share of profit after tax of associate and joint venture |
|
(27) |
(18) |
Finance income |
4 |
(13) |
(25) |
Finance expenses |
4 |
6 |
132 |
Impairment of available for sale financial assets |
3 |
19 |
- |
Depreciation and amortisation |
|
96 |
87 |
Other impairment |
3 |
174 |
- |
Change in inventories |
|
(133) |
(51) |
Change in trade and other receivables |
|
12 |
58 |
Change in trade and other payables |
|
37 |
70 |
Change in provisions |
|
- |
4 |
Profit on sale of assets held for sale |
|
- |
(1) |
Profit on sale of subsidiary |
|
(2) |
- |
Share-based payments |
|
6 |
24 |
Other non cash charges |
|
(7) |
(2) |
Cash flow from operations |
|
947 |
983 |
Interest received |
|
11 |
16 |
Interest paid |
|
(23) |
(41) |
Tax paid |
|
(229) |
(266) |
Cash flow from operating activities |
|
706 |
692 |
|
|
|
|
Cash flow from investing activities |
|
|
|
Acquisition of subsidiaries (net of cash acquired) |
|
- |
(393) |
Proceeds from disposal of subsidiaries |
|
3 |
- |
Purchase of intangible assets |
|
(24) |
(6) |
Purchase of property, plant and equipment |
|
(354) |
(270) |
Proceeds from disposal of available for sale financial assets |
|
- |
51 |
Purchase of available for sale financial assets |
|
(17) |
(72) |
Proceeds from disposal of assets held for sale |
|
1 |
5 |
Cash used in investing activities |
|
(391) |
(685) |
|
|
|
|
Cash flow from financing activities |
|
|
|
Equity dividends paid to Lonmin shareholders |
9 |
(186) |
(171) |
Dividends paid to minority |
9 |
(65) |
(41) |
Proceeds from current borrowings |
8 |
- |
237 |
Repayment of current borrowings |
8 |
(237) |
- |
Proceeds from non-current borrowings |
8 |
170 |
71 |
Issue of ordinary share capital |
9 |
6 |
68 |
Cash used in financing activities |
|
(312) |
164 |
Increase in cash and cash equivalents |
|
3 |
171 |
Opening cash and cash equivalents |
8 |
221 |
43 |
Effect of exchange rate changes |
8 |
2 |
7 |
Closing cash and cash equivalents |
8 |
226 |
221 |
The financial information presented has been prepared on the basis of International Financial Reporting Standards (IFRSs) as adopted by the EU.
The Group's primary operating segment is the mining of platinum group metals. The majority of the Group's operations are based in South Africa.
|
2008 |
Analysis by business group |
Platinum
$m |
Corporate ii
$m |
Exploration
$m |
Total
$m |
Revenue ? external sales |
2,231 |
- |
- |
2,231 |
Operating profit |
892 |
(101) |
(27) |
764 |
Segment total assets |
3,369 |
25 |
741 |
4,135 |
Segment total liabilities |
(1,100) |
(267) |
(174) |
(1,541) |
Capital expenditure i |
389 |
- |
36 |
425 |
Depreciation and amortisation |
96 |
- |
- |
96 |
Share of profit of associate and joint venture |
27 |
- |
- |
27 |
Share of net assets of associate and joint venture |
163 |
- |
- |
163 |
|
|
|
|
Analysis by business group |
Platinum
$m |
Corporate ii
$m |
Exploration
$m |
Total
$m |
Revenue ? external sales |
1,941 |
- |
- |
1,941 |
Operating profit |
880 |
(63) |
(23) |
794 |
Segment total assets |
3,211 |
41 |
686 |
3,938 |
Segment total liabilities |
(1,066) |
(339) |
(173) |
(1,578) |
Capital expenditure i |
353 |
- |
19 |
372 |
Depreciation and amortisation |
87 |
- |
- |
87 |
Share of profit of associate and joint venture |
18 |
- |
- |
18 |
Share of net assets of associate and joint venture |
131 |
- |
- |
131 |
|
|
|
|
Analysis by geographical location |
South Africa
$m |
UK
$m |
Other
$m |
Total
$m |
Revenue ? external sales |
2,231 |
- |
- |
2,231 |
Segment total assets |
4,091 |
10 |
34 |
4,135 |
Capital expenditure i |
425 |
- |
- |
425 |
|
|
|
2007 |
Analysis by geographical location |
South Africa
$m |
UK
$m |
Other
$m |
Total
$m |
Revenue ? external sales |
1,941 |
- |
- |
1,941 |
Segment total assets |
3,867 |
41 |
30 |
3,938 |
Capital expenditure i |
372 |
- |
- |
372 |
Footnotes:
i Capital expenditure includes additions to property, plant and equipment (including capitalised interest), intangible assets and goodwill in accordance with IAS 14 - Segment reporting.
ii The corporate segment consists of the London head office and the Johannesburg office (including marketing and the capital programme group).
Revenue by destination is analysed by geographical area below:
|
|
2008
$m |
2007
$m |
The Americas |
580 |
419 |
Asia |
798 |
705 |
Europe |
349 |
314 |
South Africa |
496 |
482 |
Zimbabwe |
8 |
21 |
|
2,231 |
1,941 |
'Special items' are those items of financial performance that the Group believes should be separately disclosed on the face of the income statement to assist in the understanding of the financial performance achieved by the Group and for consistency with prior years.
|
2008
$m |
2007
$m |
Operating profit: |
(199) |
(2) |
- Sale of houses i |
- |
1 |
- Sale of subsidiary ii |
2 |
- |
- Pensions iii |
(9) |
2 |
- Defence costs iv |
(18) |
- |
- Impairment v |
(174) |
(5) |
|
|
|
Impairment of available for sale financial assets vi |
(19) |
- |
|
|
|
Finance costs: |
|
|
- Movement in fair value of embedded derivative vii |
- |
(104) |
|
|
|
Loss on special items before taxation |
(218) |
(106) |
Taxation related to special items (note 5) |
109 |
(42) |
Special loss before minority interest |
(109) |
(148) |
Minority interest |
14 |
9 |
Special loss for the year attributable to equity shareholders of Lonmin Plc |
(95) |
(139) |
Footnotes:
i The Company is selling houses to employees to encourage home-ownership. Any profits or losses from such sales are not deemed to represent underlying earnings.
ii During the period, the Group disposed of a subsidiary, Southern Era Mining Exploration South Africa (Pty) Limited, for consideration of $3 million resulting in a profit before tax of $2 million.
iii During 2008 the Group settled the Lonmin Superannuation Scheme (LSS) and incurred a $9 million charge. No further expense relating to the LSS is expected in future periods. In 2007 the Group finalised the winding up of the SUITS pension scheme which was settled in 2004. During the prior year a $1 million provision was made for the purchase of additional benefits for members of the scheme which was offset by a $3 million refund on final settlement.
iv In 2008 the Group incurred $18 million of defence costs relating to a takeover bid that occurred..
v Impairment charges primarily comprised the write down of property, plant and equipment of $89 million for the Baobab shaft at Limpopo together with $73 million of smelting synergies recognised as goodwill at acquisition and $7 million relating to the remaining carrying value of the Messina concentrate off-take contract. This impairment has arisen as a result of reduced reserves and weaker short-term pricing now anticipated. In 2008 the presentation of the income statement has been presented to incorporate these charges within depreciation, amortisation and impairment. In the prior year the Group carried out a review of non-mining investments resulting in a $5 million impairment charge to the income statement. This charge was not separated out in line with the 2008 presentation of the income statement on the grounds of materiality.
vi Certain available for sale financial assets have been marked to market and have fallen below original acquisition costs resulting in $19 million of impairment charges being taken to the income statement.
vii In the prior period convertible bonds existed that contained an embedded derivative which, because of the cash settlement option, was held at fair value with movements in fair value taken to the income statement. Fluctuations of fair value were mainly due to share price and as they were not considered underlying they were reported as special. The convertible bonds were fully redeemed during the 2007 fiscal year with the movement in fair value from the previous year end to the date of redemption being reported as special.
|
2008
$m |
2007
$m |
Finance income: |
13 |
25 |
Interest receivable |
5 |
16 |
Expected return on defined benefit pension scheme assets |
- |
8 |
Movement in fair value of other receivables |
1 |
1 |
Other interest receivable |
7 |
- |
|
|
|
Finance expenses: |
(6) |
(28) |
On bank loans and overdrafts |
(22) |
(40) |
Bank fees |
(1) |
(5) |
Capitalised interest |
23 |
23 |
Discounting on provisions |
(4) |
(3) |
Unwind of discounting on convertible bonds |
- |
(3) |
Exchange differences on other receivables |
(4) |
- |
Exchange differences on net debt |
2 |
7 |
Pension scheme interest payable |
- |
(7) |
|
|
|
Special items: |
- |
(104) |
Movement in fair values of derivative financial instruments (note 3) |
- |
(104) |
|
|
|
Total finance expenses |
(6) |
(132) |
Net finance costs |
7 |
(107) |
Interest expenses incurred have been capitalised on a group basis to the extent that there is an appropriate qualifying asset.
The weighted average interest rate used by the Group for capitalisation is 4.7% (2007 - 6.0%).
5. Taxation
|
2008
$m |
2007
$m |
United Kingdom: |
|
|
Current tax expense at 28% (2007 ? 30%) |
126 |
42 |
Less amount of the benefit arising from double tax relief available |
(126) |
(42) |
Total UK tax expense |
- |
- |
|
|
|
Overseas: |
|
|
Current tax expense at 28% (2007 ? 29%) |
261 |
200 |
Corporate tax expense |
224 |
186 |
Tax on dividends remitted |
37 |
14 |
|
|
|
Deferred tax expense: |
61 |
55 |
Origination and reversal of temporary differences |
49 |
55 |
Tax on dividends remitted |
12 |
- |
|
|
|
Special items ? UK and overseas: |
(109) |
42 |
Utilisation of losses from prior years to offset deferred tax liability i |
(2) |
(9) |
Exchange on current taxation ii |
(19) |
10 |
Exchange on deferred taxationii |
(69) |
41 |
Change in tax rate iii |
(19) |
- |
|
|
|
Actual tax charge |
213 |
297 |
Tax charge excluding special items |
322 |
255 |
Effective tax rate |
27% |
42% |
Effective tax rate excluding special items |
32% |
31% |
A reconciliation of the standard tax charge to the tax charge was as follows:
|
|
|
|
2008 |
2008 |
2007 |
2007 |
|
|
$m |
|
$m |
Tax charge at standard tax rate |
28% |
218 |
29% |
204 |
Overseas taxes on dividends remitted by subsidiary companies |
5% |
37 |
2% |
14 |
Overseas taxes on dividends unremitted by subsidiary companies |
2% |
12 |
- |
- |
Special items as defined above |
(14%) |
(109) |
6% |
42 |
Tax effect of impairment relating to Baobab shaft |
6% |
49 |
- |
- |
Tax effect of impairment of available for sale financial assets |
- |
5 |
- |
- |
Tax effect of movements in the fair values of financial instruments |
- |
- |
4% |
31 |
Tax effect of other timing differences |
- |
1 |
1% |
6 |
Actual tax charge |
27% |
213 |
42% |
297 |
The Group's primary operations are based in South Africa. Therefore, the relevant standard tax rate for the Group was the South African statutory tax rate of 28% (2007 - 29%). The secondary tax rate on dividends remitted by South African companies was 10.0% (2007 - 12.5%).
FootnoteS:
i The Group holds a number of available for sale financial assets which are marked to market. In the prior year the value of these investments increased significantly resulting in the recognition of unrealised gains through the statement of recognised income and expense. This resulted in the recognition of an associated deferred tax liability except to the extent that there were available losses which, in the opinion of the Directors, could be utilised to offset against such gains. In the current year most of the investment decreased in value resulting in the unwind of the associated deferred tax balances. Losses below initial carrying value have not created deferred tax assets because future profits arising in relevant statutory entities are not considered sufficiently certain.
ii Overseas tax charges are predominantly calculated based on Rand financial statements. As the Group's functional currency is US Dollar this leads to a variety of foreign exchange impacts being the retranslation of current and deferred tax balances and monetary assets, as well as other translation differences. The Rand denominated deferred tax balance in US Dollars at 30 September 2008 is $373 million (30 September 2007 - $391 million).
iii The corporation tax rate changed to 28% for the current financial year (2007 - 29%). This resulted in a net release of deferred tax liabilities of $19 million. This tax saving has been reported as special.
6. Earnings per share
Earnings per share have been calculated on the profit attributable to equity shareholders amounting to $455 million (2007 - $314 million) using a weighted average number of 156,311,052 ordinary shares in issue (2007 - 153,097,437 ordinary shares).
Diluted earnings per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive outstanding share options and shares issuable. In the prior year shares issuable on conversion of the convertible bonds were anti-dilutive and so were excluded from diluted earnings per share in accordance with IAS 33 - Earnings Per Share.
|
2008 |
2007 |
|
Profit for
the year
$m |
Number of
shares |
Per share
amount
cents |
|
Profit for
the year
$m |
Number of shares |
Per share
amount
cents |
Basic EPS |
455 |
156,311,052 |
291.1 |
|
314 |
153,097,437 |
205.1 |
Share option schemes |
- |
496,389 |
(0.9) |
|
- |
1,324,642 |
(1.8) |
Diluted EPS |
455 |
156,807,441 |
290.2 |
|
314 |
154,422,079 |
203.3 |
|
|
|
|
2008 |
2007 |
|
Profit for
the year
$m |
Number of
shares |
Per share
amount
cents |
|
Profit for
the year
$m |
Number of shares |
Per share
amount
cents |
Underlying EPS |
550 |
156,311,052 |
351.9 |
|
453 |
153,097,437 |
295.9 |
Share option schemes |
- |
496,389 |
(1.2) |
|
- |
1,324,642 |
(2.5) |
Diluted underlying EPS |
550 |
156,807,441 |
350.7 |
|
453 |
154,422,079 |
293.4 |
Underlying earnings per share has been presented as the Directors consider it important to present the underlying results of the business. Underlying earnings per share is based on the profit attributable to equity shareholders adjusted to exclude special items (as defined in note 3) as follows:
|
2008 |
|
2007 |
|
Profit for
the year
$m |
Number of
shares |
Per share
amount
cents |
|
Profit for
the year
$m |
Number of shares |
Per share
amount
cents |
Basic EPS |
455 |
156,311,052 |
291.1 |
|
314 |
153,097,437 |
205.1 |
Special items (note 3) |
95 |
- |
60.8 |
|
139 |
- |
90.8 |
Underlying EPS |
550 |
156,311,052 |
351.9 |
|
453 |
153,097,437 |
295.9 |
Headline earnings and the resultant headline earnings per share are specific disclosures defined and required by the Johannesburg Stock Exchange. These are calculated as follows:
|
Year ended
30 September
2008
$m |
Year ended
30 September
2007
$m |
Earnings attributed to ordinary shareholders (IAS 33 earnings) |
455 |
314 |
Less profit on sale of subsidiary (note 3) |
(2) |
- |
Less profit on sale of available for sale financial assets |
- |
(2) |
Add back impairment of assets (note 3) |
193 |
5 |
Tax related to the above items |
1 |
(1) |
Headline earnings |
647 |
316 |
|
2008 |
|
2007 |
|
Profit for
the year
$m |
Number of
shares |
Per share
amount
cents |
|
Profit for
the year
$m |
Number of shares |
Per share
amount
cents |
Headline EPS |
647 |
156,311,052 |
413.9 |
|
316 |
153,097,437 |
206.4 |
Diluted EPS |
- |
496,389 |
(1.3) |
|
- |
1,324,642 |
(1.8) |
Diluted Headline EPS |
647 |
156,807,441 |
412.6 |
|
316 |
154,422,079 |
204.6 |
7. Dividends
|
2008 |
2007 |
|
$m |
Cents per
share |
$m |
Cents per
share |
Prior year final dividend, paid in the year |
94 |
60.0 |
85 |
55.0 |
Interim dividend, paid in the year |
92 |
59.0 |
86 |
55.0 |
Total dividend paid in the year |
186 |
119.0 |
171 |
110.0 |
|
|
|
|
|
Interim dividend, paid in the year |
|
59.0 |
|
55.0 |
Proposed final dividend for the year |
|
0.0 |
|
60.0 |
Total dividend in respect of the year |
|
59.0 |
|
115.0 |
8. Net debt as defined by the Group
|
As at
1 October
2007
$m |
Subsidiary
acquired
$m |
Cash flow
$m |
Foreign exchange and non-cash
movements
$m |
As at
30 September
2008
$m |
|
|
|
|
|
Cash and cash equivalents |
222 |
- |
2 |
2 |
226 |
Overdrafts |
(1) |
- |
1 |
- |
- |
|
221 |
- |
3 |
2 |
226 |
Current borrowings |
(237) |
- |
237 |
- |
- |
Non-current borrowings |
(359) |
- |
(170) |
- |
(529) |
Net debt as defined by the Group |
(375) |
- |
70 |
2 |
(303) |
|
As at
1 October
2006
$m |
Subsidiary
acquired
$m |
Cash flow
$m |
Foreign exchange and non-cash
movements
$m |
As at
30 September
2007
$m |
|
|
|
|
|
Cash and cash equivalents |
61 |
20 |
134 |
7 |
222 |
Overdrafts |
(18) |
- |
17 |
- |
(1) |
|
43 |
20 |
151 |
7 |
221 |
Current borrowings |
- |
- |
(237) |
- |
(237) |
Non-current borrowings |
(288) |
- |
(71) |
- |
(359) |
Convertible bonds |
(213) |
- |
- |
213 |
- |
Net debt as defined by the Group |
(458) |
20 |
(157) |
220 |
(375) |
Net debt as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand, interest bearing loans and borrowings and convertible bonds grossed up for capitalised fees.
On 15 November 2006 Lonmin Plc gave notice to force redemption of all outstanding convertible bonds at their principal amount. This led to the issuance of 10,576,900 shares and a reduction in net debt as defined by the Group of $213 million.
9. Total Equity
Equity shareholders? funds |
|
Called up share
capital
$m |
Share
premium
account
$m |
Other
reserves
$m |
Retained earnings
$m |
Total
$m |
Minority
interests
$m |
Total
equity
$m |
At 1 October 2007 |
156 |
299 |
96 |
1,417 |
1,968 |
392 |
2,360 |
Total recognised income and expense |
- |
- |
4 |
348 |
352 |
120 |
472 |
Dividends |
- |
- |
- |
(186) |
(186) |
(65) |
(251) |
Share-based payments |
- |
- |
- |
7 |
7 |
- |
7 |
Shares issued on exercise of share options i |
- |
6 |
- |
- |
6 |
- |
6 |
At 30 September 2008 |
156 |
305 |
100 |
1,586 |
2,147 |
447 |
2,594 |
|
|
|
|
|
|
|
|
At 1 October 2006 |
143 |
26 |
84 |
836 |
1,089 |
223 |
1,312 |
Total recognised income and expense |
- |
- |
12 |
380 |
392 |
96 |
488 |
Dividends |
- |
- |
- |
(171) |
(171) |
(41) |
(212) |
Conversion of the convertible bonds ii |
11 |
205 |
- |
- |
216 |
- |
216 |
Embedded derivative movement iii |
- |
- |
- |
371 |
371 |
- |
371 |
Deferred tax on share-based payments |
- |
- |
- |
(3) |
(3) |
(1) |
(4) |
Other |
- |
- |
- |
4 |
4 |
2 |
6 |
Shares issued on exercise of share options i |
1 |
32 |
- |
- |
33 |
- |
33 |
Shares issued under the IFC option agreement iv |
1 |
36 |
- |
- |
37 |
- |
37 |
Minority interest arising on business acquisition |
- |
- |
- |
- |
- |
113 |
113 |
At 30 September 2007 |
156 |
299 |
96 |
1,417 |
1,968 |
392 |
2,360 |
Footnotes:
i During the year 231,338 share options were exercised (2007 - 1,876,433) on which $6 million of cash was received (2007 - $33 million).
ii In November 2006 the Company issued notice regarding the redemption of all outstanding convertible bonds. Conversion of the convertible bonds resulted in the issuance of 10,576,900 shares with an associated nominal share capital of $11 million and the recognition of $205 million share premium.
iii As explained in note 3, the convertible bonds contained an embedded derivative, movements in the fair value of which were recognised through the income statement. On conversion of the convertible bonds the embedded derivative was extinguished with all cumulative prior movements in fair value which had been taken through the income statement reversing in equity.
iv During the prior year 586,730 share options were exercised under the International Finance Corporation option agreement. As the shares were issued at a discount only $35 million of cash was received.
Other reserves represent the capital redemption reserve of $88 million (2007 - $88 million) and a $12 million hedging reserve asset net of deferred tax (2007 - $8 million asset).
Minority interests represent an 18% shareholding in Eastern Platinum Limited, Western Platinum Limited and Messina Limited throughout 2008 and 2007 and, from 1 February 2007, a 26% shareholding in Akanani Mining (Pty) Limited.
10. Statutory Disclosure
The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2008 and 2007 but is derived from those accounts. Statutory accounts for 2007 have been delivered to the registrar of companies, and those for 2008 will be delivered in due course. The auditors have reported on those accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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|
Lonmin PLC.
|
|
PRODUCER |
CODE : LMI.L |
ISIN : GB0031192486 |
CUSIP : 54336Q203 |
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Lonmin is a gold and platinum producing company based in United kingdom. Lonmin produces gold, platinum, palladium and rhodium in South Africa, and holds various exploration projects in Canada, in Gabon, in South Africa and in Tanzania. Its main assets in production are PANDORA JV, LIMPOPO, MARIKANA, EASTERN PLATINUM (EPL) and KAREE MINE (WPL) in South Africa and its main exploration properties are LUWUMBU in Tanzania, PANTON in Australia, MESSINA PLATINIUM and WESTERN PLATINUM in South Africa and WINDY LAKE in Canada. Lonmin is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 21.4 billions as of today (US$ 25.0 billions, € 22.0 billions). Its stock quote reached its highest recent level on August 28, 2009 at GBX 9 964.65, and its lowest recent point on June 28, 2019 at GBX 75.60. Lonmin has 282 784 288 shares outstanding. |
In the News and Medias of Lonmin PLC. |
|
Annual reports of Lonmin PLC. |
Financings of Lonmin PLC. |
Nominations of Lonmin PLC. |
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