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HVL
HVL
HVL - Highveld - Group Reviewed Financial Results
Highveld Steel and Vanadium Corporation Limited
Registration No. 1960/001900/06
(Incorporated in the Republic of South Africa)
("Highveld" or "the Corporation")
Share code: HVL
ISIN code: ZAE000003422
GROUP REVIEWED FINANCIAL RESULTS
Acting Chairman And CEO`s Review
Financial Results
As a result of the weakened market and lower steel prices, the Corporation`s
headline earnings for the quarter ended 31 March 2009 were R130 million,
compared to the headline earnings for the three months ended 31 December 2008 of
R562 million and for the quarter ended 31 March 2008 of R463 million. Profit
for the period under review amounted to R129 million, which was 70 per cent
lower than the profit for the three months ended 31 December 2008 of R432
million and 80 per cent lower than the profit for the quarter ended 31 March
2008.
The operating profit before depreciation from continuing operations for the
period amounted to R178 million, representing a 74 per cent reduction from the
three months ended 31 December 2008 and a 74 per cent reduction from the quarter
ended 31 March 2008. The net cash position as at 31 March 2009 was R1 098
million, compared to the net cash position as at 31 December 2008 of R1 601
million.
Business Risks
The main business risks remain, the depressed markets with very low orders for
steel products as well as the declining steel prices. The reliability of rail
transport remains a grave concern.
Operations
Steel
The Corporation`s rolled steel output decreased substantially in the period
under review compared to the three months ended 31 December 2008 with an 18.3
per cent decrease in continuously cast blocks, a 75.2 per cent decrease in
sections, 31.9 per cent decrease in plates and a 60.6 per cent decrease in
coils.
Vanadium
The vanadium prices continued its fall from 2008 with the average price of
ferrovanadium for January 2009 of US$26.26 per kg V in ferrovanadium declining
to US$22.82 per kg V in ferrovanadium in March 2009.
The vanadium slag sales volumes continued to decrease as a result of the
continually weakening demand for vanadium.
Safety, Health, Environment and Quality
The lost time injury frequency rate at the end of January 2009 was 0.73, which
substantially decreased to 0.38 and to 0.35 at the end of February and March
2009, respectively.
Black Economic Empowerment of the Mapochs Mine and Mining Rights Conversion
Applications
Following the Joint Announcement regarding a 26 per cent black economic
empowerment (BEE) transaction in respect of the Mapochs Mine with Umnotho
weSizwe, the BEE partner of Mapochs Mine (Proprietary) Limited dated 9 April
2009, the Corporation subsequently submitted its application for the conversion
of its old order mining right of Mapochs Mine to a new order mining right in
terms of the Mineral and Petroleum Resources Development Act prior to the cut-
off date of 30 April 2009. Together with the said application an application
for ministerial consent for the transfer of the newly converted right to Mapochs
Mine (Proprietary) Limited, a special purpose vehicle (company) created as a
subsidiary of the Corporation, had been submitted.
Outlook
The outlook for the steel market remains uncertain with no indication as yet as
to whether demand will improve or whether prices will stabilise. The
Corporation will continue to maintain its reduced production in line with the
weak demand of the market. In order to ensure the sustainability of its
operations, the Corporation has intensified the current strategy of implementing
further cost cuttings and reduction of its working capital and decreasing its
inventory and work-in-progress levels.
Subsequent to the reduced market demand, the Corporation implemented a labour
restructuring programme, effective October 2008. It has initiated retrenchment
negotiations with the unions. It is expected that this retrenchment process
would be completed within a period of three months.
The Corporation evaluates the viability of the business as a going concern on a
continuous basis taking into consideration all the relevant financial,
operational and other assumptions. With due and proper management of the cost
cutting strategy referred to above as well as remaining focused on cash
preservation, the Board concludes that the Corporation will remain a going
concern in the foreseeable future.
J W Campbell W G Ballandino
(Acting Chairman) (Chief Executive Officer)
Group Reviewed Financial Results
Basis of preparation
The Group`s interim condensed consolidated financial statements for the quarter
ended 31 March 2009 set out below have been prepared in accordance with IAS34
Interim Financial Reporting. The interim condensed consolidated financial
statements to not include all the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Group`s
annual financial statements as at 31 December 2008.
Significant accounting policies
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group`s annual financial statements for the year ended 31
December 2008, except for the adoption of new Standards and Interpretations as
of 1 January 2009, noted below:
- IFRS 2 Share-based Payment - Vesting Conditions and Cancellations
The Standard has been amended to clarify the definition of vesting
conditions and to prescribe the accounting treatment of an award that is
effectively cancelled because a non-vesting condition is not satisfied. The
adoption of this amendment did not have any impact on the financial
position or performance of the Group.
- IFRS 7 Financial Instruments: Disclosures
The amended Standard requires additional disclosure about fair value
measurement and liquidity risk. These amendments did not have any
significant impact on the Group`s results.
- IAS 1 Revised Presentation of Financial Statements
The revised Standard separates owner and non-owner changes in equity. The
statement of changes in equity includes only details of transactions with
owners, with non-owner changes in equity presented as a single line. In
addition, the Standard introduces the statement of comprehensive income: it
presents all items of recognised income and expense, either in one single
statement, or in two linked statements. The Group has elected to present
two statements.
- IAS 39 and IFRS 7 Amendment - Reclassification of Financial Assets
The Standards have been amended to permit an entity to reclassify non-
derivative financial assets (other than those designated at fair value
through profit or loss by the entity upon initial recognition) out of the
fair value through profit or loss category in particular circumstances. The
amendment also permits an entity to transfer from the available-for-sale
category to the loans and receivables category a financial asset that would
have met the definition of loans and receivables (if the financial asset
had not been designated as available-for-sale), if the entity has the
intention and ability to hold that financial asset for the foreseeable
future. The adoption of these amendments did not have any impact on the
financial position or performance of the Group.
- IAS 32 Financial Instruments: Presentation and IAS 1 Puttable Financial
Instruments and Obligations Arising on Liquidation
The Standards have been amended to allow a limited scope exception for
puttable financial instruments to be classified as equity if they fulfill a
number of specific criteria. The adoption of these amendments did not have
any impact on the financial position or performance of the Group.
- IFRIC 13 - Customer Loyalty Programmes
This interpretation requires customer loyalty credits to be accounted for
as a separate component of the sales transaction in which they are granted.
As the Group has no customer loyalty programmes this interpretation had no
impact on the Group.
- IFRIC 9 Reassessment of Embedded Derivatives and IAS 39 Financial
Instruments: Recognition and Measurement
These amendments to IFRIC 9 require an entity to assess whether an embedded
derivative must be separated from a host contract when the entity
reclassifies a hybrid financial asset out of the fair value through profit
or loss category. This assessment is to be made on circumstances that
existed on the later of the date the entity first became party to the
contract and the date of any contract amendments that significantly change
the cash flows of the contract. IAS 39 now states that if an embedded
derivative cannot be reliably measured, the entire hybrid instrument must
remain classified as at fair value through profit or loss. As the Group has
no embedded derivatives, these amendments had no impact on the Group`s
results.
- IFRIC 15 - Agreement for the Construction of Real Estate
This interpretation clarifies when and how revenue and related expenses
from the sale of a real estate unit should be recognised if an agreement
between a developer and a buyer is reached before the construction of the
real estate is completed. As the Group has no real estate under
construction, this interpretation has had no impact in the financial
position or results.
- IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRIC 16 provides guidance on the accounting for a hedge of a net
investment in terms of identifying the foreign currency risks that qualify
for hedge accounting in the hedge of a net investment. As the Group does
not hedge any net investment in a foreign operation, this interpretation
had no impact on the financial position or results.
The IASB has issued improvements to IFRS - a collection of amendments to
International Financial Reporting Standards in line with their annual
improvement project. It deals with amendments to certain accounting standards
contained in this document which are effective to annual periods beginning on or
after 1 January 2009 except for IFRS 5 amendment which is effective 1 July 2009.
The Group adopted the amendments which are effective 1 January 2009 with no
material impact on the results of the Group.
The financial information has been reviewed by Ernst & Young Inc. in accordance
with ISRE 2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity", whose unmodified review report is available
for inspection at the Corporation`s registered office.
CONDENSED CONSOLIDATED INCOME STATEMENTS
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended
31 Mar 31 Mar 31 Dec
2009 2008 2008
Notes Rm Rm Rm
CONTINUING OPERATIONS
Revenue from the sale of 927 1 697 8 022
goods
========= ========= ========
Operating profit before 178 586 3 321
depreciation (EBITDA)
Depreciation, scrapping ( 60) ( 64) ( 252)
and changes in estimated
useful lives of
property, plant and
equipment
--------- --------- --------
Operating profit 118 522 3 069
Interest and investment 33 37 161
income received
Finance charges ( 17) ( 8) ( 39)
--------- --------- --------
Profit before taxation 134 551 3 191
Taxation ( 4) ( 165) (1 015)
--------- --------- --------
Profit after taxation 130 386 2 176
from continuing
operations
--------- --------- --------
DISCONTINUED OPERATIONS
Revenue from the sale of - 354 1 288
goods
========= ========= ========
Operating profit before - 105 610
depreciation (EBITDA)
Depreciation, scrapping - - -
and changes in estimated
useful lives of
property, plant and
equipment
--------- --------- --------
Operating profit - 105 610
Profit on disposal of 4 - 221 13
discontinued operations
Interest and investment - 1 8
income received
Finance charges - ( 5) ( 16)
--------- --------- --------
Profit before taxation - 322 615
Taxation - ( 64) ( 252)
--------- --------- --------
Profit after taxation
from discontinued - 258 363
operations
--------- --------- --------
TOTAL OPERATIONS
Revenue from the sale of 5 927 2 051 9 310
goods
========= ========= ========
Operating profit before 178 691 3 931
depreciation (EBITDA)
Depreciation, scrapping ( 60) ( 64) ( 252)
and changes in estimated
useful lives of
property, plant and
equipment
--------- --------- --------
Operating profit 118 627 3 679
Profit on disposal of 4 - 221 13
discontinued operations
Interest and investment 33 38 169
income received
Finance charges ( 17) ( 13) ( 55)
--------- --------- --------
Profit before taxation 134 873 3 806
Taxation 6 ( 4) ( 229) (1 267)
--------- --------- --------
Profit for the period / 130 644 2 539
year
--------- --------- --------
Earnings per share - Cents Cents
basic and diluted
From continuing 131.0 389.3 2 194.6
operations
From discontinued - 260.2 366.1
operations
--------- --------- --------
From total operations 131.0 649.5 2 560.7
--------- --------- --------
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended
31 Mar 31 Mar 31 Dec
2009 2008 2008
Rm Rm Rm
Profit for the period/year 130 644 2 539
Other comprehensive income:
Currency translation ( 10) 62 97
differences
-------- --------- ---------
TOTAL COMPREHENSIVE INCOME 120 706 2 636
FOR THE PERIOD/YEAR
======== ========= =========
HEADLINE EARNINGS PER SHARE
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended
31 Mar 31 Mar 31 Dec
2009 2008 2008
Reconciliation of headline Rm Rm Rm
earnings
Profit for the period / year 130 644 2 539
Add/(deduct) after tax effect of:
Loss / (profit) on disposal of - ( 181) 73
discontinued operations
Impairment losses recognised - - 5
Net loss on disposal and scrapping 1 - 11
of property, plant and equipment
-------- --------- -------
Headline earnings 131 463 2 628
-------- --------- -------
Headline earnings - from 131 322 2 192
continuing operations
Headline earnings - from - 141 436
discontinued operations
-------- --------- -------
Headline earnings 131 463 2 628
-------- --------- -------
Earnings per share - headline and Cents Cents
diluted
From continuing operations 132.8 324.9 2 210.6
From discontinued operations - 143.3 439.5
-------- --------- -------
From total operations 132.8 468.2 2 650.1
-------- --------- -------
Number of shares Million Million Million
Ordinary shares in issue as at end 99.2 99.2 99.2
date *
Weighted average number of 99.2 99.2 99.2
ordinary shares *
Diluted number of ordinary shares 99.2 99.2 99.2
*
* Rounded to nearest hundred thousand
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Reviewed Unaudited Audited
as at as at as at
31 Mar 31 Mar 31 Dec
2009 2008 2008
Notes Rm Rm Rm
ASSETS
Non-current assets 1 979 1 738 1 956
-------- --------- --------
Property, plant and 1 957 1 737 1 956
equipment
Deferred taxation 22 - -
Available-for-sale - 1 -
investments
-------- --------- --------
Current assets 2 794 3 493 3 381
-------- --------- --------
Inventories 895 466 831
Trade and other 585 1 309 769
receivables
Prepaid expenditure 199 - 180
Cash and cash equivalents 3 1 115 1 718 1 601
-------- --------- --------
Assets of disposal group
classified as held-for-
sale 7 - 677 -
-------- --------- --------
TOTAL ASSETS 4 773 5 908 5 337
======== ========= ========
EQUITY AND LIABILITIES
Shareholders` equity 2 962 4 085 2 842
Non-current liabilities 749 727 739
-------- --------- --------
Long-term provisions 432 361 422
Deferred taxation 317 366 317
-------- --------- --------
Current liabilities 1 062 1 012 1 756
-------- --------- --------
Taxation 6 306 149 722
Other current liabilities 756 863 1 034
-------- --------- --------
Liabilities directly 7 - 84 -
associated with the assets
classified as held-for-
sale
-------- --------- --------
TOTAL LIABILITIES 1 811 1 823 2 495
-------- --------- --------
-------- --------- --------
TOTAL EQUITY AND 4 773 5 908 5 337
LIABILITIES
======== ========= ========
Net cash 3 1 098 1 718 1 601
Net asset value - cents 2 987 4 120 2 866
per share
======== ========= ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended 31 Dec
31 Mar 31 Mar 2008
2009 2008 Rm
Rm Rm
Cash flows from operating activities
Cash generated by operations 9 729 3 994
before taxation paid
Taxation paid ( 442) ( 19) ( 530)
-------- --------- -------
Net cash (used in)/generated ( 433) 710 3 464
from operating activities
-------- --------- -------
Cash flows from investing activities
Proceeds from disposal of - 301 1 055
discontinued operations
Additions to property, plant and ( 62) ( 88) ( 543)
equipment
-------- --------- -------
Net cash (used in)/generated by ( 62) 213 512
investing activities
-------- --------- -------
Cash flows from financing activities
Decrease in loan to joint - 17 17
venture
Dividends paid - - (3 173)
-------- --------- -------
Net cash used in financing - 17 (3 156)
activities
-------- --------- -------
Effects of exchange rate changes ( 8) 10 13
on cash held in foreign
currencies
-------- --------- -------
Net (decrease)/increase in cash ( 503) 950 833
and cash equivalents
Cash and cash equivalents at the 1 601 768 768
beginning of the period/year
-------- --------- -------
Cash and cash equivalents at the 1 098 1 718 1 601
end of the period/year - note 3
======== ========= =======
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Share Trans- Fair Retained Total
capital lation value earnings Rm
and and reserves Rm
share other Rm
premium reserves
Rm Rm
2008
Balance at 1 585 94 - 2 700 3 379
January 2008 -
Audited
Total 62 644 706
comprehensive
income for the
quarter
-------- -------- -------- --------- -------
Balance at 31 585 156 - 3 344 4 085
March 2008 -
Unaudited
Total 2 821 823
comprehensive
income for the
quarter
Dividends (1 785) (1 785)
-------- -------- -------- --------- -------
Balance at 30 585 158 - 2 380 3 123
June 2008 -
Reviewed
Total ( 12) ( 1) 642 629
comprehensive
income for the
quarter
Dividends (1 388) (1 388)
-------- -------- -------- --------- -------
Balance at 30 585 146 ( 1) 1 634 2 364
September 2008 -
Unaudited
Total 45 1 432 478
comprehensive
income for the
quarter
-------- -------- -------- --------- -------
Balance at 31 585 191 - 2 066 2 842
December 2008 -
Audited
Total
comprehensive
income for the ( 10) 130 120
quarter
-------- -------- -------- --------- -------
Balance at 31 585 181 - 2 196 2 962
March 2009 -
Reviewed
======== ======== ======== ========= =======
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended 31 Dec
31 Mar 31 Mar 2008
2009 2008
Dividends per Cents Cents Cents
share
Dividends - - 3 200
declared and
paid
CONDENSED CONSOLIDATED SEGMENTAL REPORTS
The Group is organised into business units based on their products and has three
reportable segments as follows:
Steelworks
The major products of the steel segment are magnetite iron ore, vanadium slag,
structural steel, plate and coil.
Vanadium
The major product of the continuing vanadium segment is ferrovanadium. Vanadium
pentoxide, ferrovanadium and various vanadium chemicals are included in the
discontinued
vanadium segment.
Ferro-alloys
The major products of the ferro-alloys segment are ferrosilicon, char,
ferromanganese and silicomanganese and this segment is included under
discontinued operations.
No operating segments have been aggregated to form the above reportable
operating segments. Management monitors the operating results of its business
units separately for the purposes of making decisions about resource allocation
and performance assessment. Segment performance is evaluated based on operating
profit.
The following tables present the revenue, operating profit and total assets
information regarding the Group`s operating segments.
Reviewed for the three
months ended
31 Mar 2009
Continuing operations
Steelworks Vanadium Total
Rm Rm Rm
Revenue from the sale of goods
Revenue from external 641 286 927
customers
Intersegmental revenue 66 - 66
---------- --------- --------
Total segment revenue 707 286 993
---------- --------- --------
Unaudited for the three months
ended
31 Mar 2008
Continuing operations
Steelworks Vanadium Total
Rm Rm Rm
Revenue from the sale of goods
Revenue from external 1 136 561 1 697
customers
Intersegmental revenue 170 - 170
---------- --------- ----------
Total segment revenue 1 306 561 1 867
---------- --------- ----------
Discontinued Operations
Vanadium Ferro- Total
Rm alloys Rm
Rm
Revenue from the sale of goods
Revenue from external 334 20 354
customers
Intersegmental revenue 1 6 7
---------- --------- ----------
Total segment revenue 335 26 361
---------- --------- ----------
Audited for the year ended
31 Dec 2008
Continuing operations
Steelworks Vanadium Total
Rm Rm Rm
Revenue from the sale of goods
Revenue from external 5 542 2 480 8 022
customers
Intersegmental revenue 529 - 529
---------- --------- ----------
Total segment revenue 6 071 2 480 8 551
---------- --------- ----------
Discontinued operations
Vanadium Ferro- Total
Rm alloys Rm
Rm
Revenue from the sale of goods
Revenue from external 1 268 20 1 288
customers
Intersegmental revenue 4 6 10
---------- --------- ----------
Total segment revenue 1 272 26 1 298
Intersegmental revenues are eliminated on consolidation.
Reviewed for the three months ended
31 Mar 2009
Continuing Discontinued Total
operations operations
Operating profit
Steelworks 71 - 71
Vanadium 47 - 47
Ferro-alloys - - -
----------- ------------ -----------
Total 118 - 118
----------- ------------ -----------
Unaudited for the three months ended
31 Mar 2008
Continuing Discontinued Total
operations operations
Operating profit
Steelworks 339 - 339
Vandadium 183 87 270
Ferro-alloys - 18 18
----------- ------------ -----------
Total 522 105 627
----------- ------------ -----------
Audited for the year ended
31 Dec 2008
Continuing Discontinued Total
operations operations
Operating profit
Steelworks 2 105 - 2 105
Vanadium 964 577 1 541
Ferro-alloys - 33 33
----------- ------------ -----------
Total 3 069 610 3 679
----------- ------------ -----------
Reviewed as at
31 Mar 2009
Continuing Discontinued Total
operations operations
Total assets
Steelworks 4 253 - 4 253
Vanadium 520 - 520
----------- ------------ -----------
Total 4 773 - 4 773
----------- ------------ -----------
Unaudited as at
31 Mar 2008
Continuing Discontinued Total
operations operations
Total assets
Steelworks 4 676 - 4 676
Vandadium 555 677 1 232
----------- ------------ -----------
Total 5 231 677 5 908
----------- ------------ -----------
Audited as at
31 Dec 2008
Continuing Discontinued Total
operations operations
Total assets
Steelworks 4 891 - 4 891
Vanadium 446 - 446
----------- ------------ -----------
Total 5 337 - 5 337
----------- ------------ -----------
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 Companies Act and JSE Limited Listings Requirements
Compliance with the Companies Act No. 61 of 1973 as well as the Listings
Requirements of the JSE Limited has been maintained throughout the
reporting periods.
2 Related party transactions
Transactions entered into between the Group and its related parties during
the reporting periods were arms length transactions between knowledgeable,
willing parties at fair value.
3 Net cash
Net cash is calculated as follows:
Reviewed Unaudited Audited as
as at as at at
31 Mar 31 Mar 31 Dec
2009 2008 2008
Rm Rm Rm
Cash and cash equivalents 1 115 1 718 1 601
Overdraft included in other
current liabilities
( 17) - -
-------- --------- --------
Net cash 1 098 1 718 1 601
======== ========= ========
4. (Loss) / profit on disposal Reviewed Unaudited Audited
of discontinued operations for the for the for the
three three year ended
months months 31 Dec
ended ended 2008
31 Mar 31 Mar Rm
2009 2008
Rm Rm
Total proceeds - 305 1 244
Net asset value disposed of - ( 84) (1 231)
-------- --------- --------
Profit on disposal before - 221 13
taxation
Taxation charge - ( 40) ( 86)
-------- --------- --------
(Loss) / profit on disposal - 181 ( 73)
after taxation
======== ========= ========
5. Supplementary revenue For the For the For the
information - Unaudited three three year ended
months months 31 Dec
ended ended 2008
31 Mar 31 Mar
2009 2008
Sales volumes of major products
Continuing operations
Total steel Tons 77 735 183 033 668 116
Ferrovanadium kg V 1 075 513 1 601 362 5 194 834
Vanadium slag Tons - 794 783 13 580
V2O5
Fines ore Tons 108 352 - 130 225
Weighted average selling prices achieved for major products
Continuing operations
Total steel $/t 695 747 953
Ferrovanadium $/kg 27 47 60
V
Fines ore $/t 19 - 42
Average R/$ exchange 9.95 7.53 8.00
rate
6 Income tax
The Group has assessable tax losses which arose in its foreign operations.
These tax losses arose as a result of tax deductions exceeding taxable
profit.
A deferred tax asset has been recognised in respect of these losses as
management believes that these losses will be recoverable in the
foreseeable future.
These losses have been reflected in the computation of the Group estimated
average annual effective income tax rate and caused the income tax expense
(which is based on the best estimate of the weighted average annual income
tax rate for the full financial year) to be very low.
7. Financial ratios - Unaudited
Current ratio 2.63 3.80 1.93
Market capitalisation - Rm 7 040 6 821 6 345
8 Disposal groups
In terms of a European Union competition ruling Highveld is required to
dispose of the Vanchem division and its interest in South Africa Japan
Vanadium (Proprietary) Limited ("SAJV"). The Vanchem division and the
interest in SAJV had been treated as disposal groups for the period to 30
June 2008 and were reported as discontinued operations. The sale agreements
for the Vanchem division and SAJV have been concluded and the effective
date of sale for the Vanchem division was 29 August 2008. The assets and
related liabilities and cash flows of these disposal groups were as
follows:
Reviewed Unaudited Audited
31 Mar 31 Mar 31 Dec
2009 2008 2008
Rm Rm Rm
ASSETS
Non-current assets classified as - 552 -
held-for-sale
Current assets classified as held-- 125 -
for-sale
-------- --------- --------
- 677 -
-------- --------- --------
EQUITY AND LIABILITIES
Liabilities directly associated - 84 -
with assets classified as held-
for-sale
-------- --------- --------
Reviewed Unaudited Audited
for the for the for the
three three year
months months ended
ended ended 31 Dec
31 Mar 31 Mar 2008
2009 2008 Rm
Rm Rm
The cash flows were as follows:
Cash inflow from operating - 71 323
activities
Cash (outflow)/ inflow from - (11) ( 58)
investing activities excluding
disposal proceeds
Cash outflow from financing - - -
activities
-------- --------- --------
Total cash inflow - 60 265
======== ========= ========
9 Contingent liabilities
As required by the Mineral and Petroleum Resources Development Act, a
guarantee amounting to R191 million (2008: R191 million) was issued in
favour of the Department of Minerals and Energy for the unscheduled closure
of Mapochs Mine.
In terms of the Corporation`s employment policies, certain employees could
become eligible for post retirement medical aid benefits at any time in the
future prior to their retirement subject to certain conditions. The
potential liability should they become medical scheme members in the future
is R55 million (2008: R55 million).
10 Subsequent events
There have been no reportable events after the reporting period up to the
date of this announcement.
28 May 2009
Sponsor:
J.P. Morgan Equities Limited
Date: 28/05/2009 16:00:02 Produced by the JSE SENS Department.
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