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es are monitored on an ongoing basis to ensure that they remain within the negotiated terms and conditions offered. Credit quality of trade receivables Not past due 48 95 Past due 0 to 30 days - - Past due 31 to 60 days - - Past due 61 to 90 days - - 48 95 Currency analysis of trade receivables SA Rand 48 95 48 95 20. Cash and cash equivalents Bank balances 19,502 17,759 Bank balances included in a disposal group held for sale (refer note 21) 21 123 19,523 17,882 Restricted cash 249 1,023 Restricted cash included in a disposal group held for sale (refer note 21) 219 264 468 1,287 The restricted cash balance of $0.2 million(2015 - $1.0 million) is held on behalf of subsidiary companies in respect of the rehabilitation guarantees issued to the DMR in respect of environmental rehabilitation costs of $6.3 million (2015: $10.1 million). This cash is not available for use other than for those specific purposes. Credit risk Cash at bank earns interest at a floating rate based on daily bank deposit rates. Cash is deposited at highly reputable financial institutions of a high quality credit standing within Australia, the United Kingdom and the Republic of South Africa. The fair value of cash and cash equivalents equates to the values as disclosed in this note. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 21. Assets classified as held for sale Carrying amounts of Holfontein Investments Proprietary Limited ('Holfontein') - - Langcarel Proprietary Limited ('Mooiplaats') 11,835 14,764 11,835 14,764 Assets classified as held for sale Holfontein - - Mooiplaats 14,567 18,118 14,567 18,118 Liabilities associated with assets held for sale Holfontein - - Mooiplaats 2,732 3,354 2,732 3,354 Holfontein Net assets of Holfontein Investments Proprietary Limited - - Impairment on assets held for sale - - - - During the year, the Company received R2.5 million ($0.2 million) of the balance outstanding of R17.2 million ($1.2 million) from the prior year for the sale of the undeveloped Opgoedenhoop mining right. The Company has agreed on new settlement terms for the balance of R15.9 million ($1 million) outstanding at 30 June 2016, which includes, R1 million ($0.1 million) to be settled in September 2016 and the balance remaining to be settled in full in December 2016. The outstanding balance will accrue interest at the South African prime rate. Any default in the payment terms will result in interest at the South African prime rate plus 4%. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Assets classified as held for sale Property, plant and equipment 14,069 16,770 Other financial assets 202 710 Restricted cash 219 264 Inventories - 13 Trade and other receivables 56 238 Cash and cash equivalents 21 123 14,567 18,118 Liabilities classified as held for sale Provisions 2,332 2,855 Trade payables and accrued expenses 400 499 2,732 3,354 Net assets of Mooiplaats 11,835 14,764 22. Deferred consideration Deferred consideration 16,016 18,687 16,016 18,687 Opening balance 18,687 29,800 Loan advanced - 65 Repaid during the year (4,066) (10,000) Interest accrued 1,443 33 Gain on valuation at amortised cost - (1,303) Foreign Exchange (48) 92 Balance at end of year 16,016 18,687 Current 16,016 3,265 Non-Current - 15,422 16,016 18,687 The Deferred Consideration relates to the second tranche (part of the total acquisition price of $75 million for Chapudi and Kwezi) of $30 million payable to Rio Tinto. During the year the Company renegotiated the payment term of this loan. The Company was required to pay a minimum payment of $100,000 a month as well as additional committed money on the sale of non-core assets. In May 2016, the monthly payment was revised to $650,000 per month, with an additional $1 million payable on 15 May 2016 and $2 million payable on 15 September 2016. This arrangement includes interest at 4% as per the original agreement. Full and final settlement of the outstanding balance plus all accrued interest remains 15 June 2017. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 23. Borrowings Yishun Brightrise Investment PTE Limited loan Loan advanced 10,000 - During the period, a loan for $10 million was provided to the Company by its shareholder Yishun. The loan bears no interest and is only repayable in limited circumstances, including conditions relating to Baobab Mining and Exploration Proprietary Limited. Investec bank facility Loan advanced - 6,372 Loan repaid - (5,909) - 463 Foreign exchange differences - (463) - - The Company, through its wholly owned subsidiary GVM Metals Administration (South Africa) (Pty) Ltd had secured an 18-month, ZAR210 million (approximately US$20.0 million) working capital facility from Investec. The facility was repaid in full during the prior financial year. In addition, CoAL had issued 20 million options to Investec which are exercisable at ZAR1.32 before October 2018. 24. Provisions Employee provisions 207 221 Biodiversity offset provision 1,856 2,773 Rehabilitation provisions 2,338 3,033 4,401 6,027 Employee provisions The provision for employees represents unused annual leave entitlements. Biodiversity offset provision The Biodiversity offset agreement("BOA") was signed by the Department of Environmental Affairs ("DEA"), South African National Parks Board and the Company to the value of R55 million ($4.7 million) over a 25 year period. The BOA commits the Company to pay R55 million ($4.4 million) to the South African National Parks Board over a period of 25 years. The following payment arrangement has been agreed: Phase 1 - R2 million paid in 2015 Phase 2 - R15 million from year 2016 to 2021 (R2.5 million annually) Phase 3 - R13 million from year 2022 to 2028 (R1.8 million annually) Phase 4 - R13 million from 2029 to 2033 (R2.6 million annually) Phase 5 - R12 million from 2034 to 2038 (R2.4 million annually) For the purpose of the present value calculation these payments have been assume as equal annual payment and discounted at the South Africa inflation rate of 6%. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Rehabilitation provision Balance at beginning of year 3,033 4,643 Unwinding of discount - 86 Change in assumptions on rehabilitation provisions (186) (1,051) Foreign exchange differences (509) (645) Balance at end of year 2,338 3,033 The rehabilitation provision represents the current cost of environmental liabilities as at the respective year end. An annual estimate of the quantum of closure costs is necessary in order to fulfil the requirements of the DMR, as well as meeting specific closure objectives outlined in the mine's Environmental Management Programme ('EMP'). Although the ultimate amount of the obligation is uncertain, the fair value of the obligation is based on information that is currently available. This estimate includes costs for the removal of all current mine infrastructure and the rehabilitation of all disturbed areas to a condition as described in the EMP. The period assumed in the calculation of the present value of the obligation is the aggregate of the construction period of the mine and the total estimated LOM. The current estimate available is inflated by the South African inflation rate of 6% annually and the discount rate applied to establish the current obligation is a South Africa government bond rate at 30 June 2016 of 8.75% (2015: 8.32%) annually. Due to the delay on the Vele Colliery start-up the estimated LOM has been extended causing a decrease in the present value of the environmental obligation. The Makhado Project is still in Exploration phase and no formal decision to mine is currently in place. Provisions have been analysed between current and non-current as follows: Current 398 294 Non-current 4,003 5,733 4,401 6,027 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 25. Deferred tax Deferred tax asset 4,773 2,320 4,773 2,320 The gross movement on the deferred tax account is as follows: Balance at beginning of year 2,320 2,694 Recognised on tax losses 1,437 - Provisions (5) - Capital allowances 1,488 - Exchange differences (467) (374) Balance at end of year 4,773 2,320 The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows: Deferred tax assets Capital allowances on development assets(1) 3,378 2,320 Tax losses 1,400 - Balance at end of year 4,778 2,320 Deferred tax liabilities Provisions (5) - Balance at end of year (5) - Net deferred tax assets (4,773) - Deferred income tax assets are recognised for tax loss carry-forwards to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group did not recognise deferred income tax assets of $99 million (2015: $97 million) in respect of losses amounting to $207 million (2015: $158 million) and unredeemed capital expenditure of $134 million (2015: $176 million) that can be carried forward against future taxable income. 1 - The deferred tax asset recognised on capital allowances relates to a portion of the capital expenditure on the construction of the Vele plant. The deferred tax asset recognised on assessed losses relates to taxable losses for the Vele plant. The recognition of the asset is supported by the LOM model as future profits will be available to utilise the deferred tax asset. 26. Trade and other payables Trade payables 956 1,237 Accrued expenses 1,333 1,134 Other 34 348 2,323 2,719 The average credit period is 30 days. Interest at the South African prime overdraft rate is charged on overdue creditors. 27. Issued capital Fully paid ordinary shares 1,927,001,328 (2015: 1,743,568,613) fully paid ordinary shares 1,006,435 992,374 Movements in fully paid ordinary shares Number $'000 At 30 June 2014 1,048,368,613 935,891 Issue of shares, net of issuance costs 695,200,000 56,483 At 30 June 2015 1,743,568,613 992,374 Issue of shares, net of issuance costs 183,432,715 14,061 At 30 Jun 2016 1,927,001,328 1,006,435 Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders meetings. In the event of winding up of the Company ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of liquidation. Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 1 July 1998. Therefore, the Company does not have a limited amount of authorised capital and issued shares do not have a par value. Share options granted Share options granted under the Company's employee share option plan carry no rights to dividends and no voting rights. Further details of the employee share option plan are provided in note 30. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 28. Accumulated deficit Accumulated deficit at the beginning of the financial year (718,081) (790,964) Net loss attributed to Owners of the Company (23,445) (6,711) Transferred from share based payment reserve 5,123 79,594 Accumulated deficit at the end of the financial year (736,403) (718,081) 29. Reserves Capital profits reserve 91 91 Share based payment reserve 2,248 7,205 Foreign currency translation reserve (36,495) (7,609) (34,156) (313) Movements for the year can be reconciled as follows: Share-based payments reserve Opening balance 7,205 82,464 Share options issued during the year 275 4,335 Transfer from share based payment reserve (5,123) (79,594) Share options cancelled (83) - Closing balance 2,274 7,205 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Foreign currency translation reserve Opening balance (7,609) 52,263 Exchange differences on translating foreign operations (28,921) (59,872) Closing balance (36,530) (7,609) Nature and purpose of reserves: Capital reserve The capital profits reserve contains capital profits derived during previous financial years. Share-based payment reserve Share based payments represent the value of unexercised share options to directors and employees. Foreign currency translation reserve The foreign currency translation reserve records the foreign currency differences arising from the translation of foreign operations. 30. Share-based payments Employee share option plan The Group maintains certain Employee Share Option Plans ('ESOP's') for executives and senior employees of the Group as per the rules approved by shareholders on 30 November 2009. In accordance with the terms of the schemes, eligible executives and senior employees may be granted options to purchase ordinary shares. Share options granted to Directors and Officers The Group also grants share options to directors, officers, lenders and equity funders of the Group outside the ESOP. In accordance with the Group's policies, directors and officers may be granted options to purchase ordinary shares. Share Option Terms, Vesting Requirements and Options Outstanding at 30 June 2016 Each option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options hold no voting or dividend rights, and are not transferable. Upon exercise of the options the ordinary shares received rank equally with existing ordinary shares. The following share-based payment arrangements existed during the financial period ended 30 June 2016: - 2,670,000 options were issued on 16 September 2011 to eligible employees of CoAL as part of the ESOP. The options issued are exercisable prior to 14 February 2017 and have an exercise price of A$1.40 or ZAR7.60. The options vest in equal tranches on 1 July 2012, 1 July 2013 and 1 July 2014. Upon conversion the shares will rank equally with existing shares, are not transferable and hold no voting or dividend rights. At reporting date, none of the options had been taken up or had lapsed. - 3,932,928 options were granted on 22 November 2013 to eligible employees of CoAL as part of the ESOP. The options are exercisable prior to 30 June 2017 and have an exercise price of ZAR1.75. Two thirds of the options vested immediately and the remaining third on 1 July 2014. Upon conversion the shares will rank equally with existing shares, are not transferable and hold no voting or dividend rights. At reporting date, none of the options had been taken up or had lapsed. - The Company finalised an 18-month, ZAR210 million working capital facility from Investec Bank Limited during October 2013 and announced that it would issue 20,000,000 Options to Investec. The 20,000,000 shareholder approved options were issued on 30 January 2015 and have an exercise price of ZAR1.32 and expire on 21 October 2018. Upon conversion the shares will rank equally with existing shares, are not transferable and hold no voting or dividend rights. At reporting date, none of the options had been taken up or had lapsed. - 10,575,000 options were awarded to Mr Brown on his appointment as Chief Executive Officer and Executive Director of the Company. The options were approved by shareholders on 28 November 2014 and issued on 1 February 2015 under the ESOP vesting in three equal tranches of 3,525,000 options on 1 February 2015, 1 February 2016 and 1 February 2017 respectively. The Options will expire on 1 February 2019 and are otherwise subject to the terms of the ESOP. Upon conversion the shares will rank equally with existing shares, are not transferable and hold no voting or dividend rights. At reporting date, none of the options had been taken up or had lapsed. - On 27 November 2015, 1,000,000 options were awarded and vested to each of the five independent non- executive directors at a price of GBP0.055 per option. The options expire on 27 November 2018. Upon conversion the shares will rank equally with existing shares, are not transferable and hold no voting or dividend rights. At reporting date, none of the options had been taken up or had lapsed. There has been no alteration of the terms and conditions of the above share based payment arrangements since the grant date. The following share-based payment arrangements were in existence at the end of the current year: Weighted Fair value average at grant remaining Exercise price date contractual Option series Number Grant date Expiry date life ESOP unlisted options 2,670,000 16/09/2011 14/02/2017 A$1.40/ZAR7.60 ZAR3.46 0.6 years ESOP unlisted options 3,932,928 22/11/2013 30/06/2017 ZAR1.75 ZAR0.52 1.0 years Investec options 20,000,000 30/01/2015 21/10/2018 ZAR1.32 ZAR0.75 2.3 years ESOP unlisted options 3,525,000 28/11/2014 01/02/2019 ZAR1.20 ZAR0.15 2.6 years ESOP unlisted options 3,525,000 28/11/2014 01/02/2019 ZAR1.32 ZAR0.14 2.6 years ESOP unlisted options 3,525,000 28/11/2014 01/02/2019 ZAR1.40 ZAR0.12 2.6 years Non-executive director options 5,000,000 27/11/2015 27/11/2018 GBP0.055 ZAR0.77 2.4 years 42,177,928 Fair value of share options granted during the year The weighted average fair value of share options granted during the financial year is A$0.024 (2015: A$0.07). Options were priced using a binomial option pricing model and the Black-Scholes option pricing model was used to validate the price calculated. Where relevant, the expected life used in the model has been adjusted based on management's best estimate of the effects of non-transferability, exercise restrictions (including the probability of meeting market conditions attached to the option), and behavioural considerations. Expected volatility is calculated by Hoadley's volatility calculator for one, two and three year periods and a future estimated volatility level of 100% was used in the pricing model. Inputs into the binomial option pricing model for the current financial year were as follows (validated using the Black-Scholes valuation model): NED grants(1) Closing share price on issue date AUD0.051 Exercise price GBP0.055 Expected volatility 100% Option life remaining 3.01 years Dividend yield 0% Risk free interest rate 2.09% (1) Options granted to non-executive directors. The total share based payment expense recognised in the current financial year is $0.1 million. Inputs into the binomial option pricing model for the prior financial year were as follows (validated using the Black- Scholes valuation model): ESOP ESOP ESOP Investec TMM grants(1) grants(1) grants(1) grant(2) grant(3) Closing share price on issue ZAR0.53 ZAR0.53 ZAR0.53 ZAR1.35 ZAR1.04 Exercise price date ZAR1.20 ZAR1.32 ZAR1.45 ZAR1.32 ZAR0.30 Expected volatility 55.0% 55.0% 55.0% 55.0% 80.0% Option life remaining 4.2 years 4.2 years 4.2 years 5.0 years 1.0 years Dividend yield 0% 0% 0% 0% 0% Risk free interest rate 6.92% 6.92% 6.92% 6.64% 6.7% 1. Options granted to Mr D Brown under the ESOP in terms of his appointment as Chief Executive Officer. 2. Options granted to Investec in terms of the working capital facility. 3. Options granted to TMM in terms of the three stage equity raise process. Movement in share options Year ended Year ended 30 June 2016 30 June 2015 Number Number Options outstanding at beginning of year 85,993,989 21,168,990 Options expired (47,441,061) (3,000,001) Options cancelled (1,375,000) (2,750,000) Options granted 5,000,000 70,575,000 Options outstanding at end of year 42,177,928 85,993,989 Weighted average exercise price (A$) 0.08 0.17 Options exercisable 38,652,928 78,943,989 Share options exercised during the year No share options were exercised during the period. Share options outstanding at the end of the year The share options outstanding at the end of the year had a weighted average exercise price of A$0.08 (2015: A$0.17) and a weighted average contractual life of 1.32 years (2015: 1.86 years). Performance rights Plan On 27 November 2015, 33,449,124 Performance Rights were issued to senior management. The Performance Right factors in a hurdle rate based on the compound annual growth rate of total shareholder return across the period from the grant date, 30 November 2015, ending on 1 December 2018. The Performance Rights were valued using a hybrid employee share option pricing model to simulate the total shareholder return of CoAL at the expiry date using a Monte-Carlo model. Inputs into the model for the current financial year were as follows: Performance rights Spot 5 day VWAP AUD0.047 Exercise price Nil Expiry date 1 December 2018 Performance period 3.01 Risk free interest rate 2.09% The total share based payment expense recognised in relation to the performance rights in the current financial year is $0.1 million. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 31. Non-controlling interest Non-controlling interests comprise the following: Freewheel Trade and Invest 37 Proprietary Limited 575 575 575 575 32. Financial instruments 32.1 Capital management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group's overall strategy remains unchanged. The capital structure of the Group consists of net debt (borrowings as detailed in note 23) and equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling interests as detailed in notes 27 to 29). The Group is not subject to any externally imposed capital requirements. The Group's risk management committee reviews the capital structure of the Group on a semi-annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Group is above its target gearing ratio of 0% determined as the proportion of net debt to equity. During 2016 the gearing ratio was higher than the target range due to the loan agreement entered into with Yishun which is a short term arrangement in terms of the subscription agreement entered into with Yishun for the subscription of shares in CoAL. Debt(1) 10,000 - Net debt 10,000 - Equity(2) 235,867 273,980 Net debt to equity ratio 0.04 - 1. Debt is defined as long-term and short-term borrowings as described in note 23. 2. Equity includes all capital and reserves of the Group that are managed as capital. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 32.2 Categories of financial instruments The accounting policies for financial instruments have been applied to the line items below: Financial assets Other receivables 1,013 1,746 Trade and other receivables 666 792 Cash and cash equivalents 19,502 17,759 Restricted cash 249 1,023 Other Financial Assets 7,221 3,879 Total financial assets 28,651 25,199 Financial liabilities Deferred consideration 16,016 18,687 Borrowings 10,000 - Trade and other payables 2,323 2,719 Total financial liabilities 28,339 21,406 Fair value of financial assets and liabilities The fair value of a financial asset or a financial liability is the amount at which the asset could be exchanged or liability settled in a current transaction between willing parties in an arm's length transaction. The fair values of the Group's financial assets and liabilities approximate their carrying values, as a result of their short maturity or because they carry floating rates of interest. All financial assets and liabilities recorded in the consolidated financial statements approximate their respective fair values. The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to 3, based on the degree to which the fair value is observable. Level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities. Level 1 financial assets comprise deposits and listed securities (note 17). Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 financial assets comprise investments with investment firms. These investments serve as collateral for rehabilitation guarantees. The fair value has been determined by the investment firms' fund statement (note 17). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data. There were no assets reclassified into / out of FVTPL during the year nor were any assets transferred between levels. As at 30 June 2016 Level 1 Level 2 Level 3 Total Financial assets at FVTPL 188 5,545 - 5,733 As at 30 June 2015 Level 1 Level 2 Level 3 Total Financial assets at FVTPL 468 3,145 - 3,613 32.3 Financial risk management objectives The Group's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Corporate Treasury function reports quarterly to the Group's risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures. 32.4 Market risk Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Australian dollar and the US dollar. Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that is not the functional currency. Most of the Company's purchases are denominated in SA rand. However, certain items during the exploration, development and plant construction phase as well as long lead-capital items are denominated in US dollars, Euros or Australian dollars. These have to be acquired by the South African operating company due to the South African Reserve Bank's Foreign Exchange Control Rulings. This exposes the South African subsidiary companies to changes in the foreign exchange rates. The Group's cash deposits are largely denominated in US dollar and SA rand. A foreign exchange risk arises from the funds deposited in US dollar which will have to be exchanged into the functional currency for working capital purposes. The Group generally does not enter into forward sales, derivatives or other hedging arrangements to manage this risk. At financial period end, the financial instruments exposed to foreign currency risk movements are as follows: Held in ZAR Held in GBP Held in AUD Held in USD Total Balances at 30 June 2016 $'000 $'000 $'000 $'000 $'000 Financial assets Other receivables 1,013 - - - 1,013 Trade and other receivables 616 - 50 - 666 Cash(1) and cash equivalents 3,642 4,692 22 11,395 19,751 Total financial assets 5,271 4,692 72 11,395 21,430 (1) Cash includes restricted cash Financial liabilities Deferred consideration - - - 16,016 16,016 Borrowings - - - 10,000 10,000 Trade and other payables 1,199 1,124 - 2,323 Total financial liabilities 1,199 - 1,124 26,016 28,339 Held in ZAR Held in GBP Held in AUD Held in USD Total $'000 $'000 $'000 $'000 $'000 Balances at 30 June 2015 Financial assets Other receivables 1,746 - - - 1,746 Trade and other receivables 701 - 91 - 792 Cash and cash equivalents(1) 13,698 597 44 4,443 18,782 Total financial assets 16,145 597 135 4,443 21,320 (1) Cash includes restricted cash Financial liabilities Deferred consideration - - - 18,687 18,687 Borrowings - - - - - Trade and other payables 1,462 1,257 - 2,719 Total financial liabilities 1,462 - 1,257 18,687 21,406 Balances classified as held for sale are not included in the above tables, or discussed in the subsequent narrative. The following table details the Group's sensitivity to a 10% increase and decrease in the US dollar against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the US dollar strengthens 10% against the relevant currency. For a 10% weakening of the US dollar against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative. Year ended Year ended 30 June 2016 30 June 2015 Impact on profit/(loss) $'000 $'000 Judgements on reasonable possible movements USD/ZAR increase by 10% (2,345) (2,355) USD/ZAR decrease by 10% 2,345 2,355 32.5 Interest rate risk management The Group's interest rate risk arises mainly from short-term borrowings, cash and bank balances and restricted cash. The Group has variable interest rate borrowings. Variable rate borrowings expose the Group to cash flow interest rate risk. The Group has not entered into any agreements, such as hedging, to manage this risk. The following table summarises the sensitivity of the financial instruments held at the reporting date, following a movement in variable interest rates, with all other variables held constant. The sensitivities are based on reasonably possible changes over a financial period, using the observed range of actual historical rates. Year ended Year ended 30 June 2016 30 June 2015 Impact on profit/(loss) $'000 $'000 Judgements on reasonable possible movements Increase of 0.2% in LIBOR 38 40 Decrease of 0.2% in LIBOR (38) (40) Increase of 1.0% in JIBAR 188 202 Decrease of 1.0% in JIBAR (188) (202) The impact is calculated on the net financial instruments exposed to variable interest rates as at reporting date and does not take into account any repayments of short-term borrowings. 32.6 Credit risk Credit risk is the risk that a contracting entity will not complete its obligation under a financial instrument that will result in a financial loss to the Group. The carrying amount of financial assets represents the maximum credit exposure. Receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant. At year end there is no significant concentration of credit risk represented in the cash and cash equivalents, restricted cash and trade accounts receivables balance. The Group manages its credit risk by predominantly dealing with counterparties with a positive credit rating. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. 32.7 Liquidity risk The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet financial commitments in a timely and cost effective manner. The Group's Executive continually reviews the liquidity position including cash flow forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels. The concentration of cash balances on hand in geographical areas was as follows: United Kingdom Australia South Africa Total Balances at 30 June 2016 $'000 $'000 $'000 $'000 Cash and cash equivalents and restricted cash 16,096 22 3,633 19,751 16,096 22 3,633 19,751 United Kingdom Australia South Africa Total Balances at 30 June 2015 $'000 $'000 $'000 $'000 Cash and cash equivalents and restricted cash 5,020 45 13,717 18,782 5,020 45 13,717 18,782 The contractual maturities of the Group's financial liabilities at the reporting date were as follows: Less than 6 Between 6 - 12 Greater than 12 Total months months months Balances at 30 June 2016 $'000 $'000 $'000 $'000 Deferred consideration 5,250 10,766 - 16,016 Borrowings(1) - 10,000 - 10,000 Trade and other payables 2,323 - - 2,323 7,573 20,766 - 28,339 1. Not interest bearing Less than 6 Between 6 - Greater than 12 Total months 12 months months Balances at 30 June 2016 $'000 $'000 $'000 $'000 Other receivables - - 1,013 1,013 Trade and other receivables 666 - - 666 Cash and cash equivalents 19,502 - - 19,502 Restricted cash 249 - - 249 Other financial assets 188 - 7,033 7,221 20,605 - 8,046 28,651 Less than 6 Between 6 - Greater than 12 Total months 12 months months Balances at 30 June 2015 $'000 $'000 $'000 $'000 Deferred consideration 2,600 665 15,422 18,687 Borrowings(1) - - - - Trade and other payables 2,719 - - 2,719 5,319 665 15,422 21,406 2. Interest bearing at rates between 4% and 10% Less than 6 Between 6 - Greater than 12 Total months 12 months months Balances at 30 June 2015 $'000 $'000 $'000 $'000 Other Receivables 1,746 - - 1,746 Trade and Other Receivables 792 - - 792 Cash and Cash Equivalent 17,759 - - 17,759 Restricted Cash 1,023 - - 1,023 Other financial assets 468 - 3,411 3,879 21,788 - 3,411 25,199 33. Notes to the statement of cash flows Year ended Year ended 30 June 2016 30 June 2015 Note $'000 $'000 Reconciliation of cash For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on hand and in banks, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial position as follows: Cash and bank balances 20 19,523 17,882 Reconciliation of loss before tax to net cash used in operations Loss before tax (continuing and discontinuing operations) (24,876) (6,711) Add back: Depreciation 351 497 Amortisation 848 975 Impairment losses 360 - Share-based payment 193 3,064 Re-valuation of investments 76 281 Write off of inventory 198 847 Sundry income (non-cash) - (487) Gain on revaluation of Deferred Consideration - (1,303) Movement in provisions (181) 368 Finance costs (net) 849 1,504 (Profit) on sale of assets (8) - Foreign exchange (gains) / losses on operating activities 9,568 (14,504) Changes in working capital Decrease in inventories 8 4 Decrease in trade and other receivables 265 1,282 (Decrease) / increase in trade and other payables (788) (935) Cash used in operations (13,137) (15,121) 34. Contingencies and commitments Contingent liabilities The Group is currently involved in litigation as outlined below ($ amounts presented within have been computed using the exchange rate as of 30 June 2016 unless otherwise stated): Ferret Mining & Environmental Services Proprietary Limited During the prior financial year, Ferret's 26% shareholding in Mooiplaats Mining Limited was re-instated. Although they are not entitled to any assets or claims in the Mooiplaats group, they are entitled to receive ZAR15million (US$1.0 million) upon the successful disposal of the Mooiplaats Colliery. Issue of Share Options to De Wet Schutte In terms of his appointment as Chief Financial officer, Mr Schutte is entitled to receive 6,600,000 options in three equal tranches over a three year period (Year 1: 2,200,000 at ZAR 1, 20, Year 2: 2,200,000 at ZAR 1, 32, Year 3: 2,200,000 at ZAR 1, 45) These are granted in accordance with the Company's employee share option plan and are subject to shareholder approval. Makhado Water Commitment CoAL has agreed to acquire water allocation for the Makhado Project from water users situated near the proposed colliery and the Company has undertaken to increase supply assurance without impacting negatively on the water available for agriculture. The parties have in principle agreed to avoid endangering local agriculture by creating new water, primarily by reducing losses, improving distribution and countering leakages and evaporation. The creation of new water will be financed either through CoAL's funds, outside funding or a Public-Private-Partnership with one or more organs of State or other appropriate entities. The overall objective is the co-existence of mining and agriculture and includes a feasibility study and the completion of projects identified in the study which will facilitate the creation of new water. In terms of the agreement, the Company will be required to pay a total of $7.9 million. The first payments of $1.8 million are due 90 and 180 days after the granting of the IWUL, a further $0.6 million is payable eight months after the IWUL is granted and the balance within five years of the granting. Commitments In addition to the commitments of the parent entity as disclosed under note 38, subsidiary companies have financial commitments in terms of the NOMR granted by the South African DMR. The commitments are based on the revenue generated by the colliery during the financial year, and/or quantities of coal sold by the colliery during the financial year. There are no other significant contingent liabilities as at 30 June 2016. 35. Related party disclosures The aggregate compensation made to directors and other members of key management personnel of the Company and the Group is set out below: Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Short-term employee benefits 1,223 1,289 Post-employment benefits 9 10 Termination benefits - - Share-based payments 209 131 1,441 1,430 The Group has not provided any of its key management personnel with loans. Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation

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