2nd May 2007 07:01
Lonmin PLC02 May 2007 www.lonmin.com Interim Results (Part 2 of 2) Operating Statistics and Financial Statements Operational statistics _______________________________________________________________________________________________________ 6 months 6 months to 31 to 31 March 2007 March 2006(1)_______________________________________________________________________________________________________ MiningTonnes mined Marikana Underground 000 5,580 5,676 Opencast 000 704 899 Total 000 6,284 6,575 Limpopo Underground 000 390 461 Opencast 000 - 14 Total 000 390 475 JV attributable(2) Underground 000 60 50 Opencast 000 150 35 Total 000 210 85 Lonmin Platinum Underground 000 6,030 6,187 Opencast 000 854 948 Total 000 6,884 7,135_______________________________________________________________________________________________________Tonnes milled(3) Marikana Underground 000 5,581 5,622 Opencast 000 738 1,196 Total 000 6,319 6,818 Limpopo Underground 000 397 487 Opencast 000 - 14 Total 000 397 501 JV(4) Underground 000 141 117 Opencast 000 336 68 Total 000 477 185 Ore purchases(5) Underground 000 72 - Lonmin Platinum Underground 000 6,191 6,226 Opencast 000 1,074 1,278 Total 000 7,265 7,504_______________________________________________________________________________________________________Metals in concentrate(6) Lonmin Platinum Platinum oz 450,894 484,263 Palladium oz 210,175 233,145 Gold oz 12,901 13,797 Rhodium oz 59,242 65,903 Ruthenium oz 95,312 95,249 Iridium oz 20,024 19,901 Total PGMs oz 848,548 912,258 Nickel(7) MT 2,395 2,514 Copper(7) MT 1,471 1,571_______________________________________________________________________________________________________Metallurgical production Lonmin refined metal production Platinum oz 259,434 356,351 Palladium oz 116,581 159,536 Rhodium oz 31,019 56,773 Total PGMs oz 470,015 680,158 Toll refined metal production Platinum oz 23,872 - Palladium oz 10,862 - Rhodium oz 3,447 - Total PGMs oz 44,653 - Total refined PGMs Platinum oz 283,306 356,351 Palladium oz 127,443 159,536 Rhodium oz 34,466 56,773 Total PGMs oz 514,668 680,158 Base metals Nickel(8) MT 1,604 - Copper(8) MT 826 -_______________________________________________________________________________________________________Capital expenditure Rm 750 544 $m 105 85_______________________________________________________________________________________________________Sales Lonmin Platinum Platinum oz 274,440 411,328 Palladium oz 125,380 191,752 Gold oz 9,597 12,083 Rhodium oz 37,216 64,910 Ruthenium oz 56,582 97,946 Iridium oz 14,003 18,645 Total PGMs oz 517,218 796,664 Nickel(8) MT 2,232 2,457 Copper(8) MT 774 1,314_______________________________________________________________________________________________________PricesAverage price received per ounce Platinum $/oz 1,103 968 Palladium $/oz 325 266 Gold $/oz 602 511 Rhodium $/oz 5,325 3,142 Ruthenium $/oz 305 79 Iridium $/oz 392 176 Nickel(8) $/MT 25,067 10,431 Copper(8) $/MT 6,558 4,149Basket price of PGMs $/oz 1,102 847_______________________________________________________________________________________________________Cost per PGM ounce soldGroup: +----------------------+Mining - Marikana R/oz | 2,134 1,586 |Mining - Limpopo R/oz | 4,405 2,854 | +----------------------+Mining (weighted average) R/oz 2,270 1,675 +----------------------+Concentrating - Marikana R/oz | 408 269 |Concentrating - Limpopo R/oz | 1,171 759 | +----------------------+Concentrating (weighted average) R/oz 454 303Process division R/oz 722 442Shared business services R/oz 685 365Stock movement R/oz (83) 7 ________________________C1 cost per PGM ounce sold before base metal credits R/oz 4,048 2,792Base metal credits R/oz (867) (259) ________________________C1 cost per PGM ounce sold after base metal credits R/oz 3,181 2,533Amortisation R/oz 367 296 ________________________C2 costs per PGM ounce sold R/oz 3,548 2,829 ________________________Pandora mining cost:C1 Pandora mining cost (in joint venture) R/oz 1,921 2,518Pandora JV cost / ounce to Lonmin (adjusting Lonmin share of profit) R/oz 3,686 3,370_______________________________________________________________________________________________________Exchange Rates Average rate for period SA Rand R/$ 7.31 6.29 Sterling £/$ 0.51 0.58 Closing rate SA Rand R/$ 7.24 6.15 Sterling £/$ 0.51 0.58_______________________________________________________________________________________________________ Footnotes:(1) The 6 months to March 2006 comprised an additional 7 days mining performance for WPL and EPL arising on the change of basis to report on a calendar month.(2) JV attributable tonnes mined includes Lonmin's share (42.5%) of the total tonnes mined on the Pandora joint venture.(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) Metals in concentrate has been changed from the previously reported definition of full contained metal to adjust for industry standard downstream processing losses.(7) Corresponds to contained base metals in concentrate.(8) 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.(9) Concentrate and other sales have been adjusted to a saleable ounces basis using standard industry recovery rates. Consolidated income statementfor the 6 months ended 31 March 2007 ________________________________________________________________________________________________________________________ 6 months 6 months 6 months 6 months Year to Year to to to to to 30 30 31 March Special 31 March 31 March Special 31 March September Special September 2007 items 2007 2006 items 2006 2006 items 2006 Underlying (note 3) Total Underlying (note 3) Total Underlying (note 3) Total (i) (i) (i)Continuing operations Note $m $m $m $m $m $m $m $m $m________________________________________________________________________________________________________________________Revenue 2 631 - 631 708 - 708 1,855 - 1,855________________________________________________________________________________________________________________________EBITDA (ii) 271 1 272 335 7 342 911 12 923Depreciation and amortisation (43) - (43) (38) - (38) (81) - (81)________________________________________________________________________________________________________________________Operating profit (iii) 2 228 1 229 297 7 304 830 12 842Finance income 4 9 - 9 5 - 5 12 - 12Finance expenses 4 (12) (104) (116) (17) (214) (231) (34) (206) (240)Share of profit of associateand joint venture 10 - 10 3 - 3 19 - 19________________________________________________________________________________________________________________________Profit / (loss) before taxation 235 (103) 132 288 (207) 81 827 (194) 633Income tax expense (iv) 5 (84) (28) (112) (96) (14) (110) (280) 78 (202)________________________________________________________________________________________________________________________Profit / (loss) for the period 151 (131) 20 192 (221) (29) 547 (116) 431________________________________________________________________________________________________________________________Attributable to:- Equity shareholders ofLonmin Plc 123 (126) (3) 157 (224) (67) 445 (132) 313- Minority interest 28 (5) 23 35 3 38 102 16 118 Earnings / (loss) per share 6 81.5c (2.0)c 110.3c (47.1)c 312.1c 219.5c________________________________________________________________________________________________________________________Diluted earnings/ (loss) pershare (v) 6 80.7c (2.0)c 109.0c (47.1)c 307.7c 216.4c________________________________________________________________________________________________________________________Dividend per share paid inperiod 7 55.0c 42.0c 87.0c________________________________________________________________________________________________________________________ Consolidated statement of recognised income and expensefor the 6 months ended 31 March 2007 _______________________________________________________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 Note $m $m $m_______________________________________________________________________________________________________________________Profit/(loss) for the period 20 (29) 431Change in fair value of available for sale financial assets 72 - 46Effective portion of changes in fair value of cash flow hedges (35) - (4)Net change in fair value of cash flow hedges transferred to income statement 10 - -Actuarial losses on the post retirement benefit plan - - (6)_______________________________________________________________________________________________________________________Total recognised income for the period 67 (29) 467_______________________________________________________________________________________________________________________Attributable to:- Equity shareholders of Lonmin Plc 9 49 (68) 350- Minority interest 9 18 39 117_______________________________________________________________________________________________________________________ 9 67 (29) 467_______________________________________________________________________________________________________________________ Footnotes: (i) Underlying earnings are calculated on profit for the period excluding movements in the fair value of the embedded derivative associated with the convertible bond, exchange on tax balances, profit on the sale of Marikana houses and an adjustment to the interest capitalised in prior periods as disclosed in note 3. (ii) EBITDA is operating profit before depreciation and amortisation. (iii) Operating profit is defined as revenue and other operating expenses before net finance costs and before share of profit of associate and joint venture. (iv) The income tax expense relates to overseas only and includes exchange losses of $28 million (March 2006 - losses of $12 million) as disclosed in note 5. (v) The calculation of diluted EPS includes adjustments for the movement in fair value of the embedded derivative within the convertible bond subject to the limitation under IAS 33 - Earnings Per Share, that this cannot thereby create a figure exceeding basic EPS. Consolidated balance sheetas at 31 March 2007 ____________________________________________________________________________________________ As at As at As at 31 March 31 March 30 September 2007 2006 2006 Note $m $m $m____________________________________________________________________________________________ Non-current assetsGoodwill 113 113 113Intangible assets 8 879 323 328Property, plant and equipment 1,526 1,399 1,463Investment in associate and joint venture 123 94 113Financial assets:- Available for sale financial assets 170 49 98- Other receivables 22 24 19Employee benefits 9 12 6____________________________________________________________________________________________ 2,842 2,014 2,140____________________________________________________________________________________________ Current assetsInventories 256 173 135Trade and other receivables 171 144 396Assets held for sale 8 16 6Tax recoverable 4 5 3Cash and cash equivalents 48 27 61____________________________________________________________________________________________ 487 365 601____________________________________________________________________________________________ Current liabilitiesBank overdraft repayable on demand (1) (6) (18)Trade and other payables (149) (123) (209)Financial liabilities:- Interest bearing loans and borrowings (332) (128) -- Derivative financial instruments (29) - (4)Tax payable (18) (36) (91)____________________________________________________________________________________________ (529) (293) (322)____________________________________________________________________________________________Net current assets (42) 72 279____________________________________________________________________________________________ Non-current liabilitiesEmployee benefits (10) - (7)Financial liabilities:- Interest bearing loans and borrowings (380) (481) (499)- Derivative financial instruments - (276) (268)Deferred tax liabilities (489) (362) (294)Provisions (43) (44) (39)____________________________________________________________________________________________ (922) (1,163) (1,107)____________________________________________________________________________________________Net assets 1,878 923 1,312____________________________________________________________________________________________ ____________________________________________________________________________________________Capital and reservesCalled up share capital 9 155 143 143Share premium account 9 249 23 26Other reserves 9 64 88 84Retained earnings 9 1,190 480 836____________________________________________________________________________________________Attributable to equity shareholders of Lonmin Plc 9 1,658 734 1,089Attributable to minority interest 9 220 189 223____________________________________________________________________________________________Total equity 9 1,878 923 1,312____________________________________________________________________________________________ Consolidated cash flow statementfor the 6 months ended 31 March 2007___________________________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 Note $m $m $m___________________________________________________________________________________________Profit/(loss) for the period 20 (29) 431Taxation 5 112 110 202Finance income 4 (9) (5) (12)Finance expenses 4 116 231 240Share of profit after tax of associate and joint venture (10) (3) (19)Depreciation and amortisation 43 38 81Change in inventories (121) (63) (25)Change in trade and other receivables 225 5 (249)Change in trade and other payables (60) (10) 74Change in provisions 4 2 (2)Profit on sale of assets held for sale (1) (7) (12)Other non cash charges 3 5 13___________________________________________________________________________________________Cash flow from operations 322 274 722Interest received 4 - 1Interest paid (15) (23) (32)Tax paid (149) (77) (185)___________________________________________________________________________________________Cash flow from operating activities 162 174 506___________________________________________________________________________________________Cash flow from investing activitiesAcquisition of subsidiaries (net of cash acquired) 11 (393) (14) (14)Purchase of intangible assets 8 (4) (6) (21)Purchase of property, plant and equipment (101) (79) (161)Purchase of other financial assets (3) (33) (36)Proceeds from disposal of assets held for sale 3 19 28___________________________________________________________________________________________Cash used in investing activities (498) (113) (204)___________________________________________________________________________________________ Cash flow from financing activitiesEquity dividends paid to Lonmin shareholders 9 (85) (60) (124)Dividends paid to minority 9 (21) (18) (62)Proceeds from current borrowings 332 42 -Repayment of current borrowings - - (86)Proceeds from non-current borrowings 10 92 - 288Repayment of non-current borrowings 10 - (26) (296)Issue of ordinary share capital 9 19 12 15___________________________________________________________________________________________Cash used in financing activities 337 (50) (265)___________________________________________________________________________________________ Increase in cash and cash equivalents 1 11 37 Opening cash and cash equivalents 10 43 10 10Effect of exchange rate changes 3 - (4)___________________________________________________________________________________________Closing cash and cash equivalents 10 47 21 43___________________________________________________________________________________________ Notes to the Accounts 1. Statement on accounting policies Basis of preparation The interim accounts have been prepared on the same basis and using the same accounting policies as those used to prepare the financial statements of the Lonmin Group for the year ended 30 September 2006 and those standards and amendments that have been endorsed and will be applied at 30 September 2007. 2. Segmental analysis________________________________________________________________________ 6 months to 31 March 2007 _____________________________________________ Platinum Corporate Exploration TotalAnalysis by business group $m $m $m $m________________________________________________________________________Revenue - external sales 631 - - 631Operating profit 255 (18) (8) 229Segment total assets 3,279 50 - 3,329Segment total liabilities (1,109) (342) - (1,451)Capital expenditure(i) 111 - - 111Depreciation and amortisation 43 - - 43________________________________________________________________________ ________________________________________________________________________ 6 months to 31 March 2006 _____________________________________________ Platinum Corporate Exploration TotalAnalysis by business group $m $m $m $m________________________________________________________________________Revenue - external sales 708 - - 708Operating profit 325 (16) (5) 304Segment total assets 2,296 83 - 2,379Segment total liabilities (684) (772) - (1,456)Capital expenditure(i) 85 - - 85Depreciation and amortisation 38 - - 38________________________________________________________________________ ________________________________________________________________________ Year ended 30 September 2006 _____________________________________________ Platinum Corporate Exploration TotalAnalysis by business group $m $m $m $m________________________________________________________________________Revenue - external sales 1,855 - - 1,855Operating profit 877 (19) (16) 842Segment total assets 2,596 145 - 2,741Segment total liabilities (926) (503) - (1,429)Capital expenditure(i) 232 1 - 233Depreciation and amortisation 81 - - 81________________________________________________________________________ ________________________________________________________________________ 6 months to 31 March 2007 _____________________________________________ South UK Other Total AfricaAnalysis by geographical location $m $m $m $m________________________________________________________________________Revenue - external sales 631 - - 631Segment total assets 3,277 50 2 3,329Capital expenditure(i) 111 - - 111________________________________________________________________________ ________________________________________________________________________ 6 months to 31 March 2006 _____________________________________________ South UK Other Total Africa Analysis by geographical location $m $m $m $m________________________________________________________________________Revenue - external sales 708 - - 708Segment total assets 2,293 83 3 2,379Capital expenditure(i) 85 - - 85________________________________________________________________________ ________________________________________________________________________ Year ended 30 September 2006 _____________________________________________ South UK Other Total AfricaAnalysis by geographical location $m $m $m $m________________________________________________________________________Revenue - external sales 1,855 - - 1,855Segment total assets 2,594 145 2 2,741Capital expenditure(i) 232 1 - 233________________________________________________________________________ Revenue by destination is analysed by geographical area below:_________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 $m $m $m_________________________________________________________________________The Americas 76 190 435Asia 300 219 518Europe 60 89 291South Africa 184 207 602Zimbabwe 11 3 9_________________________________________________________________________ 631 708 1,855_________________________________________________________________________Footnote:(i) Capital expenditure includes additions to plant, property and equipment (including capitalised interest), intangible assets and goodwilI in accordance with IAS 14 - Segment Reporting. 3. Special items 'Special items' are those items of financial performance that the Group believesshould be separately disclosed on the face of the income statement to assist inthe understanding of the financial performance achieved by the Group._____________________________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 $m $m $m_____________________________________________________________________________________________EBITDA - Sale of houses 1 7 12Finance costs:- Calculation of capitalised interest - 21 21- Movement in fair value of embedded derivative (104) (235) (227)_____________________________________________________________________________________________Special loss before taxation (103) (207) (194)Taxation on above items (note 5) - (2) (4)Exchange on tax balances (note 5) (28) (12) 82_____________________________________________________________________________________________Special loss before minority interest (131) (221) (116)Minority interest 5 (3) (16)_____________________________________________________________________________________________Special loss for the period attributable to equity shareholders of Lonmin Plc (126) (224) (132)_____________________________________________________________________________________________ • Sale of houses: we currently accommodate a substantial number of our employees in hostels and married quarters with the remainder living in their homes. We are selling houses to employees to encourage home-ownership. Any profits or losses from such sales at fair value are not deemed to represent underlying earnings. • Capitalised interest in 2006 represents an adjustment to the interest capitalised in prior years of $21 million. • The convertible bond contained an embedded derivative which was held at fair value. Due to the cash settlement option the bond was classified within non-current liabilities and movements in fair value were taken to the income statement. Fluctuations in fair value were mainly due to changes in share price. • Group entities hold both current and deferred tax balances in Rand which is not the functional currency of the Company or any of its material entities or the reporting currency of the Group. Given the volatility of the Rand to US dollar exchange rate the revaluation of such tax balances can cause significant variations in the tax charge and therefore profitability. Consequently the directors feel that such foreign exchange impacts should be treated as special. 4. Net finance costs____________________________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 $m $m $m____________________________________________________________________________________________Finance income: 9 5 12 +-------------------------------------+Interest receivable | 4 - 2 |Expected return on defined benefit pension | |scheme assets | 4 4 8 |Movement in fair value of non-current other | |receivables | 1 1 2 | +-------------------------------------+ Finance expenses: (12) (17) (34) +-------------------------------------+Interest on bank loans and overdrafts | (13) (19) (35)|Bank fees | (2) (1) (3)|Capitalised interest | 6 8 16 |Discounting on provisions | - (1) (2)|Unwind of discounting on convertible bond | (2) (1) - |Interest cost of defined benefit pension scheme | |liabilities | (4) (3) (6)|Exchange differences on net debt | 3 - (4)| +-------------------------------------+ Special items (note 3): (104) (214) (206) +-------------------------------------+Prior years' capitalised interest | - 21 21 |Movement in fair values of derivative financial | |instruments | (104) (235) (227)| +-------------------------------------+____________________________________________________________________________________________Net finance costs (107) (226) (228)____________________________________________________________________________________________ 5. Taxation________________________________________________________________________________________ 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 $m $m $m________________________________________________________________________________________United Kingdom: Current tax expense at 30% (2006 - 30%) 42 36 122Less amount of the benefit arising from double tax relief available (42) (36) (122)________________________________________________________________________________________Total UK tax expense - - -________________________________________________________________________________________Overseas:Current tax expense at 29% (2006 - 29%) excludingspecial items 67 82 259 +-----------------------------------+Corporate tax expense | 53 70 217 |Tax on dividends remitted | 14 12 43 |Prior year items | - - (1)| +-----------------------------------+ Deferred tax expense: 17 14 21 +-----------------------------------+Origination and reversal of temporary | |differences | 17 14 21 | +-----------------------------------+ Special items (note 3): 28 14 (78) +-----------------------------------+Current tax on sale of houses | - 2 4 |Exchange on current taxation | 6 - (15)|Exchange on deferred taxation | 22 12 (67)| +-----------------------------------+________________________________________________________________________________________Actual tax charge 112 110 202________________________________________________________________________________________Tax charge excluding special items (note 3) 84 96 280________________________________________________________________________________________Effective tax rate 85% 136% 32%________________________________________________________________________________________Effective tax rate excluding special items (note 3) 36% 33% 34%________________________________________________________________________________________ A reconciliation of the standard tax charge to the tax charge was as follows: ___________________________________________________________________________________________________________ 6 months 6 months 6 months 6 months Year Year to to to to ended 30 ended 30 31 March 31 March 31 March 31 March September September 2007 2007 2006 2006 2006 2006 % $m % $m % $m___________________________________________________________________________________________________________Tax charge at standard tax rate 29 38 29 23 29 184Overseas taxes on dividends remitted by subsidiary companies 11 14 15 12 7 43Exchange on current and deferred tax 21 28 15 12 (13) (82)Tax effect of movements in the fair values of financial instruments 23 30 76 62 10 66Tax effect of capitalised interest adjustment - - - - (1) (6)Tax effect of other timing differences 1 2 1 1 - (3)___________________________________________________________________________________________________________Actual tax charge 85 112 136 110 32 202___________________________________________________________________________________________________________ The Group's primary operations are based in South Africa. Therefore, therelevant standard tax rate for the Group was the South African statutory taxrate of 29% (2006 - 29%). The secondary tax rate on dividends remitted by SouthAfrican companies was 12.5% (2006 - 12.5%). 6. Earnings per share Earnings per share have been calculated on the loss for the period attributableto equity shareholders amounting to $3 million (March 2006 - $67 million) usinga weighted average number of 150,911,303 ordinary shares in issue for the 6months to 31 March 2007 (6 months to 31 March 2006 - 142,308,120 ordinaryshares). Diluted earnings per share are based on the weighted average number of ordinaryshares in issue adjusted by dilutive outstanding share options and sharesissuable on conversion of the convertible bonds. Shares issuable on conversionof the convertible bonds were anti-dilutive in the current and prior periods andhave been excluded from diluted earnings per share in accordance with IAS 33 -Earnings Per Share.________________________________________________________________________________________________________________________ 6 months to 31 March 2007 6 months to 31 March 2006 Year ended 30 September 2006 _____________________________________________________________________________________________________ Loss for Per share Loss for Per share Profit for Per share the period Number of amount the period Number of amount the year Number of amount $m shares cents $m shares cents $m shares cents________________________________________________________________________________________________________________________Basic EPS (3) 150,911,303 (2.0) (67) 142,308,120 (47.1) 313 142,594,539 219.5Share option schemes - - - - - - - 2,021,331 (3.1)________________________________________________________________________________________________________________________Diluted EPS (3) 150,911,303 (2.0) (67) 142,308,120 (47.1) 313 144,615,870 216.4________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ 6 months to 31 March 2007 6 months to 31 March 2006 Year ended 30 September 2006 _____________________________________________________________________________________________________ Profit for Per share Profit for Per share Profit for Per share the period Number of amount the period Number of amount the year Number of amount $m shares cents $m shares cents $m shares cents________________________________________________________________________________________________________________________Underlying EPS 123 150,911,303 81.5 157 142,308,120 110.3 445 142,594,539 312.1Share option schemes - 1,448,157 (0.8) - 1,747,259 (1.3) - 2,021,331 (4.4)________________________________________________________________________________________________________________________Diluted Underlying EPS 123 152,359,460 80.7 157 144,055,379 109.0 445 144,615,870 307.7________________________________________________________________________________________________________________________ Underlying earnings per share have been presented as the Directors consider itto give a fairer reflection of the underlying results of the business.Underlying earnings per share are based on the profit attributable to equityshareholders adjusted to exclude special items (as defined in note 3) asfollows: ________________________________________________________________________________________________________________________ 6 months to 31 March 2007 6 months to 31 March 2006 Year ended 30 September 2006 __________________________________________________________________________________________________ Profit/ Per Profit/ Per Per (loss) for share (loss) for share Profit for share the period Number of amount the period Number of amount the year Number of Amount $m shares cents $m shares cents $m shares cents________________________________________________________________________________________________________________________Basic EPS (3) 150,911,303 (2.0) (67) 142,308,120 (47.1) 313 142,594,539 219.5Reverse special items(note 3) 126 - 83.5 224 - 157.4 132 - 92.6________________________________________________________________________________________________________________________Underlying EPS 123 150,911,303 81.5 157 142,308,120 110.3 445 142,594,539 312.1________________________________________________________________________________________________________________________ 7. Dividends The final dividend for the year ended 30 September 2006 of 55.0 cents per share(42.0 cents per share for the year ended 30 September 2005) was declared inJanuary 2007, paid on 9 February 2007 and is reflected in the 6 months to 31March 2007. An interim dividend of 55.0 cents per share will be paid on 3 August 2007 toshareholders on the registers at the close of business on 6 July 2007 (45.0cents per share for the 6 months to 31 March 2006 to shareholders on theregisters at the close of business on 7 July 2006). In accordance with IFRS thedividend has not been accrued at 31 March 2007. Aggregate amounts of dividends paid are shown as a deduction from retainedearnings in note 9. 8. Intangible assets _____________________________________________________________ $m_____________________________________________________________Net book value at 30 September 2005 319Additions 9Amortisation charge (5)_____________________________________________________________Net book value at 31 March 2006 323Additions 12Amortisation charge (7)_____________________________________________________________Net book value at 30 September 2006 328Acquisition 551Other additions 4Amortisation charge (4)_____________________________________________________________Net book value at 31 March 2007 879_____________________________________________________________ During the period the Company capitalised $555 million of intangiblesrepresenting $551 million exploration and evaluation assets obtained through theacquisition of AfriOre Limited (see note 11) on 26 January 2007 and $4 million software development costs. 9. Total equity ______________________________________________________________________________________________________________ Equity shareholders' funds ____________________________________________ Called Share up share premium Other Retained Minority Total capital account reserves earnings Total interests equity $m $m $m $m $m $m $m______________________________________________________________________________________________________________ At 1 October 2005 142 12 88 596 838 166 1,004Total recognised income and expense - - - (68) (68) 39 (29)Deferred tax on items taken directly to equity - - - 7 7 1 8Buy-out of minority interests in Messina - - - - - 1 1Dividends - - - (60) (60) (18) (78)Other - - - 5 5 - 5Shares issued on exercise of share options 1 11 - - 12 - 12_____________________________________________________________________________________________________________At 31 March 2006 143 23 88 480 734 189 923_____________________________________________________________________________________________________________ At 1 April 2006 (i) 143 23 88 480 734 189 923Total recognised income and expense - - (4) 422 418 78 496Dividends - - - (64) (64) (44) (108)Other - - - (2) (2) - (2)Shares issued on exercise of share options - 3 - - 3 - 3_____________________________________________________________________________________________________________At 30 September 2006 143 26 84 836 1,089 223 1,312_____________________________________________________________________________________________________________ At 1 October 2006 143 26 84 836 1,089 223 1,312Total recognised income and expense - - (20) 69 49 18 67Dividends - - - (85) (85) (21) (106)Conversion of the convertible bond 11 205 - - 216 - 216Embedded derivative transfer - - - 371 371 - 371Other - - - (1) (1) - (1)Shares issued on exercise of share options 1 18 - - 19 - 19_____________________________________________________________________________________________________________At 31 March 2007 155 249 64 1,190 1,658 220 1,878_____________________________________________________________________________________________________________ During the period 11,618,792 shares were issued. This included the exercise of1,041,848 share options through which $19 million of cash was received (6 monthsto 31 March 2006 - 761,407 options exercised through which $12 million cash wasreceived). During the period Lonmin Plc gave notice to force redemption of all of theoutstanding convertible bonds at their existing principal amount. This led tothe issue of 10,576,944 shares and a reduction in non-current financialliabilities of $211 million being the total convertible bond liability at 30September 2006. Footnote: (i) Figures for the 6 months to 30 September 2006 are unaudited. 10. Analysis of net debt ______________________________________________________________________________________________________ As at As at 1 October Non cash 31 March 2006 Cash flow movements 2007 $m $m $m $m______________________________________________________________________________________________________ +-------------------------------------------+Cash and cash equivalents | 61 (16) 3 48 |Overdrafts | (18) 17 - (1)| +-------------------------------------------+Cash and cash equivalents in the statement of cash flows 43 1 3 47Current borrowings - (332) - (332)Non-current borrowings (288) (92) - (380)Convertible bonds (213) - 213 -______________________________________________________________________________________________________Net debt as defined by the Group (458) (423) 216 (665)______________________________________________________________________________________________________ ______________________________________________________________________________________________________ As at As at 30 1 April Non cash September 2006 Cash flow movements 2006 $m $m $m $m______________________________________________________________________________________________________ +-------------------------------------------+Cash and cash equivalents | 27 38 (4) 61 |Overdrafts | (6) (12) - (18)| +-------------------------------------------+Cash and cash equivalents in the statement of cash flows 21 26 (4) 43Current borrowings (128) 128 - -Non-current borrowings (270) (18) - (288)Convertible bonds (213) - - (213)______________________________________________________________________________________________________Net debt as defined by the Group (590) 136 (4) (458)______________________________________________________________________________________________________ ______________________________________________________________________________________________________ As at As at 1 October Non cash 31 March 2005 Cash flow movements 2006 $m $m $m $m______________________________________________________________________________________________________ +-------------------------------------------+Cash and cash equivalents | 11 16 - 27 |Overdrafts | (1) (5) - (6)| +-------------------------------------------+Cash and cash equivalents in the statement of cash flows 10 11 - 21Current borrowings (86) (42) - (128)Non-current borrowings (296) 26 - (270)Convertible bonds (213) - - (213)______________________________________________________________________________________________________Net debt as defined by the Group (585) (5) - (590)______________________________________________________________________________________________________ Net debt comprises cash and cash equivalents, bank overdrafts repayable ondemand and interest bearing loans and borrowings grossed up for capitalisedfees. 11. Business combinations On 26 January 2007 the Group acquired 94% of AfriOre Limited. This increased to 96.5% on 8 February 2007 and to 100% on 16 February 2007. AfriOre's primaryasset is a 74% stake in the Akanani PGM deposit. The acquisition was accountedfor with an effective date of 1 February 2007 using the acquisition method ofaccounting. The assets and liabilities of AfriOre Limited and the provisional fair valuesattributed were as follows: ____________________________________________________________________________________ Provisional Provisional Book value fair value fair value on acquisition adjustment 2007 $m $m $m____________________________________________________________________________________ Intangible assets 13 538 551Trade and other payables (2) - (2)Cash and cash equivalents 20 - 20Deferred tax liability - (156) (156)____________________________________________________________________________________ 31 382 413____________________________________________________________________________________ The Company has carried out a provisional fair value assessment at acquisition.This has resulted in the recognition of $538 million of additional explorationand evaluation assets and a deferred tax liability of $156 million as requiredby IAS 12 - Income Taxes. The fair values will be amended as necessary, inaccordance with IFRS 3 - Business Combinations, in light of subsequent knowledgeor events to the extent that these reflect conditions as at the date ofacquisition. The total consideration paid for the acquisition of AfriOre Limited amounted to$413 million comprising cash consideration of $409 million, and expenses on thetransaction of $4 million, all paid in the period. Cash acquired with the entityamounted to $20 million resulting in a net consideration paid of $393 million. The acquisition has had no material impact on the operating results of the Groupfor the period. If the acquisition had taken place at the beginning of theperiod it is estimated that some $10 million of exploration and evaluation costswould have been incurred. 12. Events after the balance sheet date After the period end, Lonmin Plc has taken the decision to close the definedbenefit Lonmin Superannuation Scheme (LSS) to future accrual with effect from 30June 2007. In place of membership of the LSS the Company will make availablemembership of the Lonmin Retirement Plan, a defined contribution pension scheme.The expected impact resulting from the closure of the LSS is not material and isexpected to impact the income statement in the second half of the year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonmin