Village Main Reef HY 2014 results

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Village Main Reef HY 2014 results

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Village Main Reef HY 2014 results

  1. 1. MANAGING RISK Ta k i n g a d i f f e r e n t v i e w INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 a
  2. 2. CONTENTS Key features 1 Condensed consolidated statement of comprehensive income 2 Condensed consolidated statement of financial position 4 Condensed consolidated statement of changes in equity 6 Condensed consolidated statement of cash flow 8 Notes to the condensed interim financial statements Corporate information The financial information was prepared by Jacques le Roux (qualified chartered accountant) in his capacity as Group financial controller under the supervision of Clinton Halsey (qualified chartered accountant) in his capacity as Chief Financial Officer. 10 BC
  3. 3. REVIEWED CONDENSED CONSOLIDATED INTERIM RESULTS for the 6 months ended 31 December 2013 KEY FEATURES* • espite the strike at Cons Murch, gold production from continuing operations increased D by 2% to 2,030kg (65,264oz) for the six months ended 31 December 2013 compared to 1,987kg (63,882oz) reported previously. • evenue was negatively affected by the lower realised average gold price of R421,701/kg R compared to 452,188/kg for the six months ended December 2012, a decrease of 7%. • Antimony production was 1,289t for the six months ended 31 December 2013 compared to 2,728t for the six months ended 31 December 2012, a decrease of 53%, which was a direct result of the unprotected strike at Cons Murch in July 2013. • All-in costs at our Tau operation for the six months ended 31 December 2013 amounted to R617 million compared to R571 million for the six months ended 31 December 2012, an increase of 8% year-on-year. On a per unit cost basis, the increase amounted to 3% at R321,220/kg to R310,926/kg, realising a profit margin of 24%. • ash operating profit of R198 million from continuing operations for the six months ended C 31 December 2013 compared to R324 million for the six months ended 31 December 2012, mainly due to the impact of the unprotected strike at Cons Murch, lower gold and antimony prices and annual cost increases. • asic and headline earnings per share from continuing operations of 12.07 cents and B 14.55 cents per share respectively, compared to 25.68 cents per share for the six months ended 31 December 2012, a decrease of 53% and 43% respectively. • ignificant improvement in the net asset value pe share of 118.8 cents per share, S compared to 79.85 cents per share as at 30 June 2013, an increase of 49%, reflecting the positive effects of the restructuring, the placing of Buffels on care and maintenance and the deconsolidation of Blyvoor from the results. * Unaudited 1
  4. 4. Condensed Consolidated STATEMENT OF Comprehensive IncomE for the 6 months ended 31 December 2013 Notes Revenue Cost of sales Gross profit/(loss) Other income Operating, administrative and general expenses Impairment of assets Operating profit/(loss) Finance income Restructuring cost Fair value adjustment Finance cost Profit/(loss) from continuing operations Profit/(loss) from discontinued operations Profit/(loss) before taxation Taxation Profit/(loss) for the period Other comprehensive income: Fair value adjustments to/(from) available-forsale investments Total comprehensive income for the period 2 6 months Restated ended 6 months ended 31 December 31 December 2012^ 2013 R’000 R’000 914,384 1,015,073 (716,588) (691,926) 197,796 323,147 5,017 3,330 (63,933) (23,842) 115,038 3,626 (2,323) (354) (4,147) 111,840 298,458 410,298 (596) 409,702 (70,993) – 255,484 22,780 – (21,600) (3,640) 253,024 (233,499) 19,525 – 19,525 – 409,702 (17,086) 2,439 ^ Restated as a result of reclassification of discontinued operations. 2 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
  5. 5. Notes Profit/(loss)attributable to: Owners of the parent Non-controlling interest Profit/(loss) loss for the period Total comprehensive income: Owners of the parent Non-controlling interest Total comprehensive income for the period Basic earnings/(loss) per share attributable to owners of the parent From continuing operations (cents per share) From discontinued operations (cents per share) Total basic earnings/(loss) per share attributable to owners of the parent Diluted earnings/(loss) per share attributable to owners of the parent From continuing operations (cents per share) From discontinued operations (cents per share) Total diluted earnings/(loss) per share attributable to owners of the parent 6 months Restated ended 6 months ended 31 December 31 December 2012^ 2013 R’000 R’000 318,038 91,664 409,702 58,377 (38,852) 19,525 318,038 91,664 409,702 41,291 (38,852) 2,439 3 3 12.07 22.25 25.68 (19.76) 3 34.32 5.92 3 3 11.42 21.03 25.11 (19.77) 3 32.45 5.34 ^ Restated as a result of reclassification of discontinued operations. 3
  6. 6. Condensed Consolidated Statement of Financial Position at 31 December 2013 31 December 2013 4 31 December 2012 R’000 Assets Non-current assets Property, plant and equipment Investment property Investment in rehabilitation trust fund Intangible assets Financial assets Reimbursive asset Total non-current assets Current assets Financial assets Trade and other receivables Inventories Cash and cash equivalents Total current assets Non-current assets held-for-sale Total assets 30 June 2013 R’000 R’000 1,461,390 20,887 163,512 57,338 14,652 115,009 1,832,788 1,447,557 24,957 200,303 60,401 34,259 115,009 1,882,486 2,254,085 17,312 160,929 83,063 13,212 109,420 2,638,021 1,552 83,518 58,819 193,598 337,487 3,591 2,173,866 1,906 135,762 98,636 207,314 443,618 275 2,326,379 7,489 256,966 62,265 352,573 679,293 8,065 3,325,379 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
  7. 7. 31 December 2013 31 December 2012 R’000 Equity and liabilities Equity Stated capital Treasury shares Retained earnings Fair value reserve Non-distributable reserve Transactions with non-controlling interest Non-controlling interest Total equity Non-current liabilities Financial liabilities Deferred tax Provision for environmental rehabilitation Total non-current liabilities Current liabilities Financial liabilities Trade and other payables Retirement benefit obligations Provision for environmental rehabilitation Bank overdraft Total current liabilities Total liabilities Total equity and liabilities 30 June 2013 R’000 R’000 636,500 (73,316) 718,419 – 14,044 29,252 (88,380) 1,236,519 636,500 (73,316) 400,381 – 18,180 29,252 (180,044) 830,953 636,500 (30,185) 1,181,068 3,101 21,689 29,252 (51,597) 1,789,828 15,848 151,889 104,363 272,100 11,595 151,889 101,039 264,523 231,828 246,357 416,342 894,527 7,556 291,498 2,756 327,534 35,903 665,247 937,347 2,173,866 13,988 735,011 2,900 442,482 36,522 1,230,903 1,495,426 2,326,379 22,441 615,459 3,124 – – 641,024 1,535,551 3,325,379 5
  8. 8. Condensed Consolidated STATEMENT OF Changes in Equity for the 6 months ended 31 December 2013 Stated Capital R’000 Balance as at 1 July 2012 Profit/(loss) for the period Change in fair value of assets held for sale Share options expensed during year Treasury shares purchased Balance as at 31 December 2012 Profit/(loss) for the period Change in fair value of assets held for sale Share options expensed during year Treasury shares purchased Balance as at 30 June 2013 Profit/(loss) for the period Share options expensed during the period Balance as at 31 December 2013 6 636,500 – – – – 636,500 – – – – 636,500 – – 636,500 Treasury Shares R’000 – – (30,185) (30,185) – – – (43,131) (73,316) – – (73,316) INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 Retained Earnings R’000 1,122,691 58,377 – – – 1,181,068 (780,687) – – – 400,381 318,038 – 718,419
  9. 9. Fair Value Reserve R’000 20,187 – (17,086) – – 3,101 – (3,101) – – – – – – Transactions with noncontrolling interest 29,252 – – – – 29,252 – – – – 29,252 – – 29,252 Equity Non- Attributable to distributable Owners of the Parent Reserve R’000 R’000 8,595 – – 13,094 – 21,689 – – (3,509) – 18,180 – (4,136) 14,044 1,817,225 58,377 (17,086) 13,094 (30,185) 1,841,425 (780,687) (3,101) (3,509) (43,131) 1,010,997 318,038 (4,136) 1,324,899 Noncontrolling Interest R’000 Total Equity R’000 (12,745) (38,852) – – – (51,597) (128,447) – – – (180,044) 91,664 – (88,380) 1,804,480 19,525 (17,086) 13,094 (30,185) 1,789,828 (909,134) (3,101) (3,509) (43,131) 830,953 409,702 (4,136) 1,236,519 7
  10. 10. Condensed Consolidated STATEMENT OF CASH FLOW for the 6 months ended 31 December 2013 6 months ended 31 December 2013 R’000 Cash generated from/(utilised in) continuing operations Restated 6 months ended 31 December 2012^ R’000 286,839 327,533 (822) Finance cost (630) (3,626) Tax paid Cash generated from continuing operations operating activities Cash flow utilised in discontinued operations Total cash flow generated from operating activities 8,545 (596) Investment income – 281,795 335,448 (218,990) (147,552) 62,805 187,896 Cash flow from investing activities Purchase of property, plant and equipment Proceeds on disposal of property, plant and equipment and investment property (70,123) – (3,600) Loans advanced Dividend received from FIU Investment Investment in new projects Proceeds from Mine Waste Solution Notes Cash flow (utilised in)/from investing activities from continuing operations Cash flow from/(utilised in) investing activities from discontinued operations Total cash flow (utilised in)/generated from investing activities – (644) – (74,367) 754 (73,613) ^ Restated as a result of reclassification of discontinued operations. 8 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 (85,381) 4,455 – 14,235 – 392,874 326,183 (47,051) 279,132
  11. 11. 6 months ended 31 December 2013 Restated 6 months ended 31 December 2012^ R’000 R’000 Cash flow from financing activities Dividend paid to shareholders – (302,608) (144) (244) Payment of financial liabilities (1,664) (78,253) Cash flow utilised in financing activities from continuing operations (1,808) (381,105) Payment of post employment benefit Cash flow utilised in financing activities from discontinued operations Total cash flow utilised in financing activities (481) (2,289) – (381,105) Net increase in cash and cash equivalents (13,097) 85,923 Cash and cash equivalents at the beginning of the period 170,792 266,650 Cash and cash equivalents at the end of the period 157,695 352,573 ^ Restated as a result of reclassification of discontinued operations. 9
  12. 12. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS for the 6 months ended 31 December 2013 1. SIGNIFICANT ACCOUNTING POLICIES 1.1 General information Village Main Reef Limited (Village) is a South African-based mining and development company, with its ordinary shares listed for trading on the main board of the Johannesburg Stock Exchange (JSE) under the share code VIL. The company’s assets comprise Lesego Platinum (a platinum exploration project), Cons Murch Mine (a gold and antimony mine), Buffelsfontein Gold Mines,Tau Lekoa Gold Mining Company and the South Plant. 1.2 Basis of preparation The condensed consolidated interim financial statements are for the six months ended 31 December 2013 and are prepared in accordance with International Financial Reporting Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting Standards and are consistent with those applied in the previous annual financial statements. These interim financial statements do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2013. The condensed consolidated interim financial statements have been reviewed by PricewaterhouseCoopers (PwC) whose unqualified review report is available for inspection at the Group’s registered office. 1.3 Estimates and accounting policies The accounting policies adopted are consistent with the previous annual financial statements. The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 June 2013. 10 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
  13. 13. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS for the 6 months ended 31 December 2013 1.4 Events after reporting period No material events subsequent to reporting date have occurred. 2. Discontinued OperationS 31 December 2013 R’000 Restated 31 December 2012^ R’000 Buffelsfontein Gold Mines Limited On 14 May 2013, Village announced the intention to cease operations at the Buffelsfontein Mine. Buffelsfontein Gold Mines Limited is a separate identifiable cash-generating unit. For the period ended 31 December 2013, Buffelsfontein Gold Mines Limited is reported in the North-West Segment as a discontinued operation. Analysis of discontinued operations of the statement of comprehensive income Revenue Expenses Total comprehensive (loss) before tax Taxation (Loss) for the year from discontinued operations 2,471 (59,100) (56,629) – (56,629) 279,972 (365,484) (85,512) – (85,512) (180,593) (161,607) Analysis of cash flows of the discontinued operations Cash flows from operating activities Cash flows from investing activities 754 Cash flows from financing activities 481 (41,173) – ^ Restated as a result of reclassification of discontinued operations. 11
  14. 14. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS continued for the 6 months ended 31 December 2013 2. Discontinued OperationS continued 31 December 2013 R’000 Restated 31 December 2012^ R’000 Blyvooruitzicht Gold mining Company Limited On 30 July 2013 , Village announced that its Board of Directors voted to suspend financial assistance to Blyvooruitzicht Gold Mining Company Limited (Blyvoor) and advised the Board of Directors of Blyvoor accordingly. The operations of Blyvoor were discontinued and placed in provisional liquidation on 6 August 2013. For the period ended 31 December 2013, Blyvooruitzicht is reported in the Gauteng segment as a discontinued operation. Village lost control of Blyvooruitzicht on the 6th of August 2013 and Blyvooruitzicht was deconsolidated from this date. A profit amounting to R421.4 million was recognised in the Statement of comprehensive income as a result of the deconsolidation. This amount is included in profit from discontinued operations on the statement of comprehensive income. Analysis of discontinued operations of the statement of comprehensive income Revenue 46,621 Expenses 374,895 (112,980) Total comprehensive (loss) before tax Taxation (522,882) (66,359) (147,987) _ _ (Loss) for the year from discontinued operations (66,359) Profit on loss on control of discontinued operation 421,446 Total profit/(loss) on discontinued operation Analysis of cash flows of the discontinued operations 355,087 (147,987) Cash flows from operating activities (38,417) 14,055 Cash flows from investing activities – Cash flows from financing activities – ^ Restated as a result of reclassification of discontinued operations. 12 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 (147,987) – (5,878) –
  15. 15. 3. RECONCILIATION BETWEEN BASIC EARNINGS/(LOSS) AND HEADLINE EARNINGS/(LOSS) 6 months ended 31 December 2013 R’000 Restated 6 months ended 31 December 2012^ R’000 Net profit from continuing operations Net profit from discontinued operations Net profit for the period 111,244 298,458 409,702 253,024 (233,499) 19,525 Net profit from continuing operations Less: Profit attributable to non-controlling interest from continuing operations Basic earnings from continuing operations Profit on sale of assets Impairment of available for sale financial assets 111,244 253,024 (659) 111,903 (938) 23,842 (375) 253,399 – – Headline earnings from continuing operations for the period 134,807 253,399 298,458 (233,499) 92,323 206,136 (52,906) – (421,446) (38,477) (195,022) – 130 – (268,217) (194,892) Net profit/(loss) from discontinued operations Less: Profit/(loss) attributable to non-controlling interest from discontinued operations Basic earnings from discontinued operations Profit on sale of assets Fair value adjustment on investment property Gain on loss of control of Blyvooruitzicht Gold mine Headline loss from discontinued operations for the period Basic earnings per share (cents) from continuing operations Basic earnings per share (cents) from discontinued operations Total basic earnings per share (cents) Diluted earnings per share (cents) from continuing operations Diluted earnings/(loss) per share (cents) from discontinued operations Total diluted earnings per share (cents) 12.07 25.68 22.25 34.32 (19.76) 5.92 11.42 25.11 21.03 32.45 (19.76) 5.35 ^ Restated as a result of reclassification of discontinued operations. 13
  16. 16. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS continued for the 6 months ended 31 December 2013 3. RECONCILIATION BETWEEN BASIC EARNINGS/(LOSS) AND HEADLINE EARNINGS/(LOSS) ontinued c 6 months ended 31 December 2013 R’000 Restated 6 months ended 31 December 2012^ R’000 14.55 25.68 (28.95) (14.40) (19.75) 5.93 Headline earnings per share (cents) from continuing operations Headline earnings/(loss) per share (cents) from discontinued operations Total headline earnings/(loss) per share Diluted headline earnings per share (cents) from continuing operations Diluted headline (loss) per share (cents) from discontinued operations Total diluted headline profit/(loss) per share (cents) 13.75 25.11 (28.94) (15.19) (19.75) 5.36 Net asset value per share (cents) 118.82 177.44 Note: All earnings/(loss) per share calculations are based on a weighted average number of shares. Net asset value per share is based on the number of shares in issue. Reconciliation of number of shares issued Reported at beginning of period Forfeitable share plan shares/option issued at beginning of period Treasury shares at beginning of period Fully paid up shares at the beginning of period Adjusted for: – Shares repurchased Weighted average number of ordinary shares for basic earnings per share Adjust for: Forfeitable share plan shares/options issued Share options granted Weighted average number of ordinary shares for diluted earnings per share ’000 1,040,697 (53,408) (60,522) 926,767 – ’000 1,008,694 (21,405) – 987,289 (695) 926,767 986,594 53,408 – 21,405 1,101 980,175 1,009,100 Note: Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year. The forfeitable share scheme shares are anti-dilutive instruments in respect of the diluted headline loss per share from discontinued operations for 31 December 2013 and 31 December 2012 and the diluted loss per share from discontinued operations for 31 December 2012. ^ Restated as a result of reclassification of discontinued operations. 14 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
  17. 17. 6 months ended 31 December 2013 R’000 4. 6 months ended 31 December 2012 R’000 RELATED PARTIES During the six months ended 31 December 2013 the following related-party transactions were recorded: Director share options During the six months ended 31 December 2013, Village granted an additional 12,317,263 share options under the FSP share scheme to the directors at a strike price of R0.46. An amount of R62,935 was expensed specifically relating to this issuing of shares. Related party transactions: To the Point Properties (Pty) Ltd 75 – To the Point Growth Specialists (Pty) Ltd 272 1,487 Umbono Financial Services (Pty) Ltd consulting services 150 855 Key management 22,698 25,084 Salaries, bonuses and fees 19,504 17,160 3,194 7,924 Share option expenses 5. MINERAL RESOURCES AND RESERVES Village reports in terms of the South African code for the Reporting of Exploration results, Mineral Resources and Ore Reserves (SAMREC). Village employs a Group ore reserve manager who is responsible for reporting mineral resources and reserves. He is assisted by an ore reserve manager at each operation. There have been no material changes in the mineral reserves as declared in our Annual Report as at 30 June 2013, except for the fact that Blyvoor has been deconsolidated from the Village Group. The total reserves of 3.61Moz will therefore be excluded from the Group total reserves. 15
  18. 18. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS continued for the 6 months ended 31 December 2013 6. SEGMENTAL REPORTING Limpopo Lesego R’000 Revenue Corporate R’000 – 31 December 2013 Limpopo Cons Murch R’000 104,297 – Cost of sales (2,673) (143,725) (168) Gross profit (2,673) (39,428) (168) – Other income Operating, administrative and general – Impairment of assets – Operating profit/(loss) (2,673) 321 Finance income 392 (8,083) – (47,119) 125 Restructuring costs – – Fair value adjustment – – Finance cost – Profit/(loss) from operations (2,352) – Taxation Profit/(loss) after tax Profit/(loss) on derecognition of Blyvoor Profit/(loss) for the period (2,352) – (2,352) 3,710 (17,790) (23,842) (38,090) 3,180 – (354) (1,801) (10) (48,795) (35,274) – (48,795) – (48,795) (596) (35,870) – (35,870) Other comprehensive income Fair value adjustments to available-for-sale investments Total comprehensive profit/(loss) for the year 16 – (2,352) – (48,795) INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 – (35,870)
  19. 19. North West Tau Lekoa R’000 North West South Plant R’000 Continuing operations total R’000 810,087 – 914,384 Discontinued operation Gauteng Blyvoor R’000 Discontinued operation North West Buffelsfontein R’000 Total 46,621 2,471 963,476 (111,198) (94,503) (922,289) (64,577) (92,032) 41,187 63,424 (574,862) 4,840 (716,588) 235,225 4,840 197,796 263 652 5,017 519 57,888 (63,933) (981) (14,945) (79,859) (2,286) (26,128) (51,375) (1,376) (33,106) (4,954) – – 202,382 538 115,038 – – 3,626 – (2,323) – (354) (2,323) – (2,099) (237) (23,842) (4,147) 111,840 – (65,039) 4 (211) – – 2,924 (2,534) (4,385) (4,739) (1,113) (163) (5,423) (66,359) (56,629) (11,148) 197,960 301 – – 197,960 301 111,244 – – – 421,446 197,960 301 111,244 355,087 – – – – 197,960 301 111,244 355,087 (596) (706) – (66 359) – (56,629) – (56,629) – (56,629) (596) (11,744) 421,446 409,702 – 409,702 17
  20. 20. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS continued for the 6 months ended 31 December 2013 6. SEGMENTAL REPORTING continued Limpopo Lesego R’000 – 31 December 2012 Revenue Limpopo Cons Murch R’000 180,710 Cost of sales (2,130) (153,529) Gross profit (2,130) 27,181 Other income – Operating, administrative and general – Impairment of assets – Operating profit/(loss) Finance income (2,130) 173 (13,279) – 14,075 789 758 Restructuring costs – – Fair value adjustment – Finance cost – Profit/(loss) from operations Taxation (1,341) – Profit/(loss) after tax Profit/(loss) on derecognition of Blyvoor Profit/(loss) for the period (1,341) – (1,341) – (1,731) 13,102 – 13,102 – 13,102 Other comprehensive income Fair value adjustments to available-for-sale investments Total comprehensive profit/(loss) for the year 18 – (1,341) INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 – 13,102
  21. 21. Corporate R’000 North West Tau Lekoa and South Plant R’000 Continuing operations total R’000 Discontinued Gauteng Blyvoor R’000 Discontinued North West Buffelsfontein R’000 Total R’000 – 834,363 1,015,073 374,895 279,972 1,669,940 – (536,267) 691,926 (525,240) (330,425) (1,547,591) – 298,096 323,147 (150,345) (50,453) – 3,157 3,330 3,879 8,493 15,702 (47,185) (70,993) (1,119) (43,954) (116,066) (10,529) – – – 254,068 255,484 21,233 – 22,780 771 240 – – – – – – 9,210 (12,390) (1,173) (9,048) (13,861) (147,987) (85,512) 19,525 (10,529) (18,213) (3,387) (21,600) (9) (1,900) (3,640) (7,518) – (7,518) – (7,518) – (7,518) 248,781 253,024 – – 248,781 253,024 – – 248,781 253,024 – – 248,781 253,024 – (147,585) – (147,987) – (147,987) – (147,987) – 122,349 (85,914) – (85,512) – (85,512) – (85,512) – 21,985 23,791 – – 19,525 – 19,525 (17,086) 2,439 19
  22. 22. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS continued for the 6 months ended 31 December 2013 7. Fair value measurement of financial instruments The following table presents financial assets measured at fair value in the statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets into three levels based on the significance of inputs used in measuring the fair value of the financial assets. There are no financial liabilities mesured at fair value. The fair value hierarchy has the following levels: • evel 1: quoted prices (unadjusted) in active markets for identical assets or L liabilities; • evel 2: inputs other than quoted prices included within Level 1 that are observable L for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • evel 3: inputs for the asset or liability that are not based on observable market L data (unobservable inputs). The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. 31 December 2013 Level 1 Available for sale financial assets Investment in Continental Coal Limited* 10,399 Financial Assets at fair value through profit or loss Investment in AlGold Limited* 1,552 Level 2 31 December 2012 Available for sale financial assets Investment in Continental Coal Limited* Financial Assets at fair value through profit or loss Investment in First Uranium Corporation* Level 3 Total – – 10,399 – – 1,552 Level 1 Level 2 Level 3 Total – – – – 7,489 – – 7,489 * hese investments were classified as Level 2 in the 2013 annual report, due to a conversion T exchange rate being applied to the listed share price in obtaining the measurement of fair value. With the adoption of IFRS 13, the classification of these investments was reconsidered and a Level 1 classification was considered more appropriate. 20 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
  23. 23. Valuation methodology Investment in Continental Coal Limited The fair value of the investment in Continental Coal Limited is determined with reference to the closing quoted Australian dollar share price on the Australian Securities Exchange at each reporting date. The quoted share price is converted to South African rands by applying the closing Australian dollar to South African rand exchange rate at reporting date to the share price quoted in Australian dollars. The fair value of the investment is obtained by multiplying the South African rand denominated share price by Village’s shareholding in Continental Coal Limited. Investment in Algold Resources Limited The fair value of the investment in Algold Resources Limited is determined with reference to the closing quoted Canadian dollar share price on the Toronto Stock Exchange at each reporting date. The quoted share price is converted to South African rands by applying the closing Canadian dollar to South African rand exchange rate at reporting date to the share price quoted in Canadian dollars. The fair value of the investment is obtained by multiplying the South African rand denominated share price by Village’s shareholding in Algold Resources Limited.
  24. 24. CORPORATE INFORMATION DIRECTORS Ferdi Dippenaar (Chief Executive Officer) Executive Clinton Halsey (Chief Financial Officer) Executive Dalubuhle Ncube (Operations Director) Executive Octavia Matshidiso Independent non-executive director Khetiwe McClain Lead independent nonexecutive director Bernard Swanepoel Non-executive Chairman Gerard Kemp Independent non-executive director Phiway Mbuyazi Non-executive director Baba Njenje Non-executive director COMPANY SECRETARY Fusion Corporate Secretarial Services (Pty) Ltd 1st Floor, The Greens Office Park Highveld Centurion Charles de Gaulle Street Pretoria PO Box 68528. Highveld. 0169 Tel: +27 87 550 1123 Fax: +27 86 616 6545 REGISTERED OFFICE 210 Cumberland Avenue Bryanston 2191 Tel: +27 11 463 2489 TRANSFER SECRETARIES Link Market Services South Africa (Pty) Ltd 13th Floor, Rennie House 19 Ameshoff Street Braamfontein 2001 (PO Box 4844, Johannesburg, 2000) Tel: +27 11 713 0800 Fax: +27 86 674 4381 SPONSOR Bravura Equity Services (Pty) Ltd 23 Fricker Road, Ground Floor, Suite 2 Illovo 2196 PO Box 2070 Parklands 2121 Johannesburg South Africa Tel: +27 11 459 5000 Fax: +27 11 459 5100 AUDITORS PricewaterhouseCoopers Inc Registered Accountants and Auditors Chartered Accountants (SA) 2 Eglin Road Sunninghill, 2157 (Private Bag x36, Sunninghill, 2157) BANKERS ABSA Bank Ltd 15 Alice Lane Sandton, 2196 LISTING PARTICULARS Village Main Reef Ltd (formerly known as Village Main Reef Gold Mining Company (1934) Ltd) (Registration number 1934/005703/06) Share code: VIL ISIN: ZAE000154761 INVESTOR AND PUBLIC RELATIONS Russell and Associates Charmane Russell Tel: +27 11 880 3924 Email: charmane@rair.co.za www.villagemainreef.co.za

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