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within operating cash flows. 2.23. Revenue recognition Revenue is recognised at fair value of the consideration received net of the amount of applicable sales tax. Sale of goods Revenue from the sale of goods is recognised when all the following conditions are satisfied: - the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; - the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the economic benefits associated with the transaction will flow to the Group; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably. Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. Many of the Group's sales are subject to an adjustment based on inspection of the shipment by the customer. In such cases, revenue is recognised based on the Group's best estimate of the grade at the time of shipment, and any subsequent adjustments are recorded against revenue when advised. Historically, the differences between estimated and actual grade have not been significant. Interest income Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate. Interest income is recognised in investment income on the consolidated statement of profit or loss and other comprehensive income. 2.24. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. 2.25. Employee benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. 2.26. Segment information Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Company's executive committee. Management has determined the reportable segments of the Group based on the reports reviewed by the Company's executive committee that are used to make strategic decisions. The Group has three reportable segments: Exploration, Development and Mining (see note 4). 2.27. Adoption of new and revised Accounting Standards and Interpretations The key new and amended reporting requirements that must be applied for the first time this year include: - AASB 2015-3 Amendments to Australian Accounting Standards arising from the withdrawal of AASB 1031 Materiality: this amendment completes the withdrawal of AASB 1031 in all Australian Accounting Standards and Interpretations, allowing the standard to be effectively withdrawn. The application of these amendments does not have any material impact on the disclosures or the amounts recognised in the Group's consolidated financial statements. At the date of the authorisation of the financial report, a number of Standards and Interpretations were in issue but not yet effective. The potential effect of the revised Standards / Interpretations on the Groups' financial statement has not yet been determined. Standard Effective for the Expected to be annual reporting initially applied in periods beginning on the financial year or after ending - AASB 9 'Financial Instruments' and the relevant amending standards 1 January 2018 30 June 2019 - AASB 15 Revenue from Contracts with Customers 1 January 2018 30 June 2019 - AASB 16 Leases 1 January 2019 30 June 2020 - AASB 2014-3 Amendments to Australian Accounting Standards - Accounting for Acquisitions of Interest in Joint operations 1 January 2016 30 June 2017 - AASB 2014-4 Amendments to Australian Accounting Standards - Clarification of Acceptable Methods of Depreciation and 1 January 2016 30 June 2017 Amortisation - AASB 2015-1 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards - Annual Improvements to Australian Accounting Standards 2012-2014 Cycle - AASB 2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 101 1 January 2016 30 June 2017 - AASB 2016-1 Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets for Unrealised 1 January 2017 30 June 2018 Losses 3. Critical accounting estimates and key judgements Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The primary areas in which estimates and judgements are applied are discussed below. Asset carrying values and impairment charges The Group assesses impairment at the end of each reporting period by evaluating conditions and events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. Key assumptions include future coal prices, future operating costs, discount rates, foreign exchange rates and coal reserves. Refer to note 13. Coal reserves Economically recoverable coal reserves relate to the estimated quantity of coal in an area of interest that can be expected to be profitably extracted, processed and sold. The Group determines and reports coal reserves under the Australasian Code of Reporting of Mineral Resources and Ore Reserves (the 'JORC Code'). This includes estimates and assumptions in relation to geological, technical and economic factors, including: quantities, grades, production techniques, recovery rates, production costs, transport costs, exchange rates and expected coal demand and prices. Because the economic assumptions used to estimate reserves change from period to period, and because additional geological data is generated during the course of operations, estimates of reserves may change from period to period. Changes in reported reserves may affect the Group's financial results and financial position in a number of ways, including the following: - asset carrying values may be affected due to changes in estimated future cash flows; and - depreciation and amortisation charges may change where such charges are determined by the units of production basis, or where the useful economic lives of assets change. Depreciation and amortisation charges in the consolidated statement of profit or loss may change where such charges are determined by the units of production basis, or where the useful economic lives of assets change. Exploration and evaluation assets Determining the recoverability of exploration and evaluation expenditure capitalised requires estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. The Group applies the principles of AASB 6 and recognises exploration and evaluation assets when the rights of tenure of the area of interest are current, and the exploration and evaluation expenditures incurred are expected to be recouped through successful development and exploitation of the area. If, after having capitalised the expenditure under the Group's accounting policy, a judgment is made that recovery of the carrying amount is unlikely, an impairment loss is recorded in profit or loss. Refer to note 13. Development expenditure Development activities commence after the commercial viability and technical feasibility of the project is established. Judgment is applied by management in determining when a project is commercially viable and technically feasible. Any judgments may change as new information becomes available. If, after having commenced the development activity, a judgment is made that a development asset is impaired, the appropriate amount will be written off to the consolidated statement of comprehensive income. Refer to note 13. The Company considers the following items as pre-requisites prior to concluding on commercial viability: - All requisite regulatory approvals from government departments in South Africa have been received and are not subject to realistic legal challenges. - The Company has the necessary funding to engage in the construction and development of the project as well as general working capital until the project is cash generative. - A JORC compliant resource proving the quantity and quality of the project as well as a detailed Mine Plan reflecting that the colliery can be developed and will deliver the required return hurdle rates. - The Company has secured off-take and/or logistics agreements for a significant portion of the product produced by the mine and the pricing has been agreed. - The Company has the appropriate skills and resources to develop and operate the project. Rehabilitation and restoration provisions Certain estimates and assumptions are required to be made in determining the cost of rehabilitation and restoration of the areas disturbed during mining activities and the cost of dismantling of mining infrastructure. The amount the Group is expected to incur to settle its future obligations includes estimates regarding: - the future expected costs of rehabilitation, restoration and dismantling. - the expected timing of the cash flows and the expected life of mine (which is based on coal reserves noted above); - the application of relevant environmental legislation; and - the appropriate rate at which to discount the liability. Changes in the estimates and assumptions used could have a material impact on the carrying value of the rehabilitation provision and related asset. The provision is reviewed at each reporting date and updated based on the best available estimates and assumptions at that time. The carrying amount of the rehabilitation provision is set out in note 24. Recoverability of non-current assets As set out in note 13, certain assumptions are required to be made in order to assess the recoverability of non- current assets where there is an impairment indicator. Key assumptions include future coal prices, future operating costs, discount rate, foreign exchange rates and estimates of coal reserves. Estimates of coal reserves in themselves are dependent on various assumptions (refer above). Changes in these assumptions could therefore affect estimates of future cash flows used in the assessment of recoverable amounts, estimates of the life of mine and depreciation. Refer to note 13. Contingent liabilities - litigation Certain claims have been made against the Group. Judgments about the validity of the claims have been made by the Directors. Further details are included in note 34. 4. Segment information The Group has three reportable segments: Exploration, Development and Mining. The Exploration segment is involved in the search for resources suitable for commercial exploitation, and the determination of the technical feasibility and commercial viability of resources. As of 30 June 2016, projects within this reportable segment include three exploration stage coking and thermal coal complexes, namely the Chapudi Complex (which comprises the Chapudi project, the Chapudi West project and the Wildebeesthoek project), the Soutpansberg Complex (which comprises the Voorburg project, the Mt Stuart project and the Jutland project) and the Makhado Complex (comprising the Makhado project, the Makhado Extension project and the Generaal project). The Development segment is engaged in establishing access to and commissioning facilities to extract, treat and transport production from the mineral reserve, and other preparations for commercial production. As of 30 June 2016, projects included within this reportable segment include project, namely the Vele Colliery, in the early operational and development stage. The Mining segment is involved in day to day activities of obtaining a saleable product from the mineral reserve on a commercial scale and consists of the Mooiplaats Colliery. As of 30 June 2016 the Mooiplaats Colliery has been classified as operations held for sale. The accounting policies of the reportable segments are the same as those described in Note 2, Accounting policies. The Group evaluates performance on the basis of segment profitability, which represents net operating (loss) / profit earned by each reportable segment. Each reportable segment is managed separately because, amongst other things, each reportable segment has substantially different risks. The Group accounts for intersegment sales and transfers as if the sales or transfers were to third parties, i.e. at current market prices. The Group's reportable segments focus on the stage of project development and the product offerings of coal mines in production. In order to reconcile the segment results with the consolidated statement of profit or loss and other comprehensive income, the discontinuing operations should be deducted from the segment total and the corporate results (as per the reconciliation later in the note should be included. Discontinuing Continuing operations operations Exploration Development Mining Total For the year ended 30 June 2016 $'000 $'000 $'000 $'000 Revenues from external customers - - - - Inter-segment revenues - - - - Revenue(1) - - - - Segment loss (5,246) (136) (973) (6,355) Items included within the Group's measure of segment profitability - Depreciation and amortisation (63) (42) - (105) - Finance income - - 150 150 - Finance cost (1,455) (112) (1) (1,568) - Income tax expense - 1,431 - 1,431 (1) Revenues represent sale of product Segment assets 112,242 105,941 14,567 232,750 Items included within the Group's measure of segment assets - Additions to non-current assets 1,169 18 - 1,187 Segment liabilities 16,947 4,076 2,732 23,755 Discontinuing Continuing operations operations Exploration Development Mining Total For the year ended 30 June 2015 $'000 $'000 $'000 $'000 Revenues from external customers - - - - Inter-segment revenues - - - - Revenue - - - - Segment loss (4,387) (1,958) (2,176) (8,521) Items included within the Group's measure of segment profitability - Depreciation and amortisation (84) (63) - (147) - Finance income 22 47 97 166 - Finance cost (978) (80) (605) (1,663) Segment assets 124,715 117,160 18,118 259,993 Items included within the Group's measure of segment assets - Additions to non-current assets 2,454 145 - 2,599 Segment liabilities 20,788 5,153 3,354 29,295 Reconciliations of the total segment amounts to respective items included in the consolidated financial statements are as follows: Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Total loss for reportable segments 6,355 8,521 Reconciling items: Unallocated corporate costs 8,654 15,681 Depreciation and amortisation 1,094 1,325 Foreign exchange loss/(gain) 7,342 (18,816) Loss for the year 23,445 6,711 Total segment assets 232,750 259,993 Reconciling items: Unallocated property, plant and equipment 3,379 10,336 Intangible assets 10,489 11,682 Other financial assets 5,611 3,879 Other receivables 1,013 1,745 Unallocated current assets 19,921 18,992 Total assets 273,163 306,627 Total segment liabilities 23,755 29,295 Reconciling items: Borrowings 10,000 - Unallocated liabilities 2,966 2,777 Total liabilities 36,721 32,072 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 The Group operates in two principal geographical areas - Australia (country of domicile) and South Africa. The Group's revenue from external customers by location of operations and information about its non-current assets by location of assets are detailed below. Revenue by location of operations South Africa - - Australia - - Total revenue - - Non-current assets by location of operations South Africa 238,235 269,254 Australia - - Total non-current assets 238,235 269,254 5. Revenue The following is an analysis of the Group's revenue for the year from continuing operations (excluding investment income - see note 6) Revenue from the rendering of services - - - - 6. Investment income Continuing operations Rental income 172 134 Interest income Bank deposits 479 646 Interest on loans 90 48 Interest on other financial assets 12 - Total interest income 581 694 Total investment income 753 828 7. Loss for the year from continuing operations Loss for the year from continuing operations has been arrived at after (charging) or crediting: Other income Non-refundable deposits received for sale of non-core assets 250 324 (Holfontein - refer note 11) Other 7 - Total other income 257 324 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Other (losses)/gains Profit on disposal of property, plant and equipment 8 - Fair value gain on renegotiated Rio Tinto deferred consideration - 1,303 Revaluation of investments (80) 277 Fair value adjustment 78 - Impairment of investment (360) - Total other gains and (losses) (354) 1,580 Depreciation and amortisation Depreciation Depreciation of property, plant and equipment (note 14) (351) (497) Total depreciation (351) (497) Amortisation Amortisation of intangible asset (note 15) (848) (975) Total amortisation (848) (975) Total depreciation and amortisation (1,199) (1,472) Foreign exchange (loss)/profit Unrealised (9,568) 18,991 Realised (1,086) (4,487) (10,654) 14,504 Employee benefits expenses Share-based payments (193) (131) Super-annuation (9) (10) Salaries and wages (3,563) (4,795) Total employee benefits expense (3,765) (4,936) 8. Auditors' remuneration Deloitte - Australia Audit and review of financial reports 77 102 Non-audit related services 11 - 88 102 Deloitte - Johannesburg Audit and review of financial reports 176 229 Non-audit related services 96 - 272 229 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 9. Finance cost Finance costs Interest on loans 1,457 1,191 Interest on overdraft 9 9 Unwinding of interest 112 86 1,578 1,286 10. Income tax and deferred tax Income tax recognised in profit or loss from continuing operations Current tax Current tax expense in respect of the current year - - - - Deferred tax (note 25) Recognition of deferred tax assets on assessed losses 1,431 - 1,431 - Total income tax credit recognised 1,431 - The Group's effective tax rate for the year from continuing operations was (6%) (2015: 0%). The tax rate used for the 2016 and 2015 reconciliations below is the corporate tax rate of 30% for Australian companies. The income tax expense for the year can be reconciled to the accounting profit as follows: Loss from continuing operations before income tax (23,903) (4,535) Income tax benefit calculated at 30% (2015: 28%) 7,171 1,270 Tax effects of: Expenses that are not deductible for tax purposes (1,195) (753) Differences in tax rates (442) - Income that are not taxable - 91 Other temporary differences not recognised (5,106) (608) Recognition of deferred tax asset - Losses 1,003 - ome tax credit 1,431 - Income tax recognised on the loss from discontinuing operations Current tax Current tax expense in respect of the current year - - - - Deferred tax (note 25) Recognition of deferred tax assets on assessed losses - - - - Total income tax credit recognised - - Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Income tax recognised in profit or loss from discontinued operations Current tax Current tax expense in respect of the current year - - - - Deferred tax (note 25) Recognition of deferred tax assets on assessed losses - - - - Total income tax credit recognised - - The Group's effective tax rate for the year from discontinued operations was (0%) (2015: 0%). The tax rate used for the 2016 and 2015 reconciliations below is the corporate tax rate of 30% payable by Australian corporate entities. The income tax expense for the year can be reconciled to the accounting profit as follows: Loss before income tax from discontinued operations (973) (5,005) Income tax benefit calculated at 30% (2015: 28%) 292 1,401 Tax effects of: Expenses that are not deductible for tax purposes 13 (483) Difference in tax rates (19) - Other temporary differences not recognized (286) (918) Income tax credit - - 11. Discontinuing operations 11.1 Holfontein (Pty) Ltd ('Holfontein') The Company is in the process of finalising agreements for the disposal of the Holfontein thermal coal project near Secunda in Mpumalanga. 11.2 Plan to dispose of Langcarel (Pty) Ltd ('Mooiplaats') The Company has announced a long-term strategy to dispose of its thermal assets in order to focus on the development of the coking coal assets. The Company is actively seeking a buyer for this business and expects to complete a sale during the next financial year. The Group has not recognised any impairment on the Mooiplaats colliery during the current financial year. (2015: $nil - note 21). 11.3 Analysis of loss for the year from discontinuing operations The combined results of the operations held for sale included in the loss for the year are set out below. The comparative losses and cash flows from operations held for sale have been re-presented to include those operations classified as held for sale in the current year. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Loss for the year from operations held for sale Revenue - - Other gains - 427 - 427 Expenses (973) (2,603) Loss before tax (973) (2,176) Loss for the year from operations held for sale (attributable to owners of the Company) (973) (2,176) Cash flows from operations held for sale Net cash outflows from operating activities (951) (1,400) Net cash inflows from investing activities 1 1,024 Net cash inflows from financing activities 1,400 729 Net cash inflows 450 353 These operations have been classified and accounted for at 30 June 2016 as a disposal group held for sale (see note 21). Impairment testing Non-current assets held for sale As of 30 June 2016 the net book value of the following project assets were classified as non-current assets held for sale: - Holfontein Colliery: $ nil - Mooiplaats Colliery: $14.1 million The Company is in the process of finalising agreements for the disposal of the Holfontein Colliery, and has announced a strategy to dispose of the Mooiplaats Colliery within the next 12 months. Consequently, these project assets have been classified as non-current assets held for sale and have been written down to their fair value less costs to sell represented by indicative offers received. Cents per share Cents per share 12. Loss per share attributable to owners of the Company 12.1 Basic loss per share From continuing operations 1.19 0.32 From discontinuing operations 0.05 0.15 1.24 0.47 $'000 $'000 Loss for the year attributable to owners of the Company (23,445) (6,711) Less: Loss for the year from operations held for sale 973 2,176 Loss used in the calculation of basic loss per share from continuing operations (22,472) (4,535) '000 shares '000 shares Weighted number of ordinary shares Weighted average number of ordinary shares for the purposes of basic loss per share 1,896,412 1,414,768 12.2 Diluted loss per share Diluted loss per share is calculated by dividing loss attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of diluted ordinary share that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. As at 30 June 2016, 75,627,052 options (2015 - 85,993,989 options) were excluded from the computation of the loss per share as their impact is anti-dilutive. Furthermore at 30 June 2016, the TMM options had expired and is not included in the calculation. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 12.3 Headline loss per share (in line with JSE requirements) The calculation of headline loss per share at 30 June 2016 was based on the headline loss attributable to ordinary equity holders of the Company of $22.0 million (2015: $6.7 million) and a weighted average number of ordinary shares outstanding during the period ended 30 June 2016 of 1,896,412,421 (2015: 1,414,768,613). The adjustments made to arrive at the headline loss are as follows: Loss for the period attributable to ordinary shareholders (23,445) (6,711) Adjust for: Impairment losses 360 - Profit on sale of property, plant and equipment (8) - Headline earnings (23,093) (6,711) Headline loss per share (cents per share) (1.22) (0.47) 13. Development, exploration and evaluation expenditure Development, exploration and evaluation expenditure comprises: Exploration and evaluation assets 104,893 118,498 Development expenditure 103,030 114,315 Balance at end of year 207,923 232,813 A reconciliation of development, exploration and evaluation expenditure is presented below: Exploration and evaluation assets Balance at beginning of year 118,498 139,991 Additions 1,187 145 Movement in Rehabilitation asset (18) - Foreign exchange differences (14,774) (21,638) Balance at end of year 104,893 118,498 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 Development assets Balance at beginning of year 114,315 131,720 Additions - 2,454 Transfer from property, plant and equipment 6,501 - Movement in Rehabilitation asset (167) - Deferred tax asset (1,488) - Foreign exchange differences (16,131) (19,859) Balance at end of year 103,030 114,315 Impairment testing Exploration and Evaluation Assets As of 30 June 2016, the net book value of the following project assets were classified as Exploration and Evaluation assets: - Greater Soutpansberg Project: $54.4 million - Makhado Project: $50.5 million In terms of AASB 6 - Exploration for and Evaluation of Mineral Resource management have performed an assessment of whether facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. In performing its assessment, management have considered its exploration rights to the exploration areas, its planned & budgeted exploration activities and the likelihood of the recoverability of the net book value from the successful development of the areas of interest. Management have concluded that no indicators of impairment for its Exploration and Evaluation assets exist as at 30 June 2016. Development Assets As of 30 June 2016 the net book value of the following project assets were included in Development assets: - Vele Colliery: $103 million In terms of AASB 136 - Impairment of Assets management has identified the coal commodity price as an indicator that the Vele assets may be impaired and have performed a formal impairment assessment. Management have adopted the fair value less costs of disposal approach to estimate the recoverable amount of the project, before comparing this amount with the carrying value of the associated assets and liabilities in order to assess whether an impairment of the carrying value is required under AASB 136. Management formed the view that impairment is not likely. In calculating the fair value less costs of disposal, management have forecast the cash flows associated with the project over its expected life of 17 years until 2033. The cash flows are estimated for the assets of the colliery in its current condition together with capital expenditure required for the colliery to resume operation and discounted to its present value using a post-tax discount rate that reflects the current market assessments of the risks specific to the Vele Colliery. The identification of impairment indicators and the estimation of future cash flows require management to make significant estimates and judgments. Details of the key assumptions used in the fair value less costs of disposal calculation at 30 June 2016 are included below. Key assumptions 2017 2018 2019 2020 LT Thermal coal price (USD, nominal)(1) 63.6 65.1 66.8 68.4 67.8(2) Hard coking coal price (USD, nominal)(3) 86.5 91.3 97.2 105.6 111.2(4) Exchange rate (USD / ZAR, nominal) 17.9 18.5 19.3 20.0 20.0(5) Discount rate(6) 16.1% Inflation rates USD 2.5% ZAR 6.0% Production start date(7) February 2018 (1) Management's assumptions reflect the Richards Bay export thermal coal (API4) price. (2) LT thermal coal price equivalent to USD 60 per tonne in 2016 dollars (3) Management's assumption of the hard coking coal price is made after considering relevant broker forecasts (4) LT hard coking coal price equivalent to USD 111 per tonne in 2016 dollars (5) From 2021, the exchange rate is derived with reference to the 2020 assumption, and inflated by the compounding differential between USD and ZAR inflation rates (6) Management prepared a nominal ZAR-denominated, post-tax discount rate, which was calculated with reference to the Capital Asset Pricing Model (CAPM). (7) The recoverable amount is based on obtaining project financing in order for production to commence in February 2018. Management has assumed the project will be financed in the time frame required and has determined the recoverable amount on that basis. Any delay to the production start date will impact the recoverable value. Impairment Assessment USD million Value of Vele using the discounted cash flow method based on the current life of mine 99 model Value of resources not currently included in the life of mine model(8) 11 Total value attributed to Vele 110 Carrying Value of Vele cash-generating unit 103 (8) Excluded from the value of the Vele Colliery derived from the discounted cash flow model, is any value attributable to resources remaining after the projections made in the current life of mine ("LOM") model. In order to assess the potential value of resources outside of the current LOM model, a resource valuation was undertaken by management in January 2016 in consultation with external independent valuations experts. This valuation applied a weighted average multiple of ZAR 3.8/tonne of resources, or USD 0.25/tonne which resulted in an indicative valuation of $57 million at that time. An alternative valuation of the resources outside of the LOM model has been performed by extending the discounted cash flow model by ten years, which results in a valuation of $11 million. The value of the resources outside of the LOM model could therefore be in the range of $11 million to $57 million. Sensitivity Analysis Changes in key assumptions in the table below would have the following approximate impact on the recoverable amount of the Vele Colliery as calculated using the discounted cash flow method and excluding the effect of the value attributable to resources outside the LOM. Sensitivity Change in variable Effect on fair value less costs of disposal using discounted cash flow method (USD million) Long term coal prices +10.0% 18 -10.0% (17) Long term exchange rate +10.0% 23 -10.0% (24) Discount rate +1.0% (7) -1.0% 7 Operating costs +10.0% (16) -10.0% 17 Delays in production start date +12 months (14) 14. Property, plant and equipment Mining Land and Leasehold Motor Other Total property, buildings improvements vehicle plant and equipment $'000 $'000 $'000 $'000 $'000 $'000 2016 Cost At beginning of year 50 16,701 463 732 1,831 19,777 Additions - - - 56 58 114 Transferred to - (6,501) - - - (6,501) development assets Disposals - - - (59) - (59) Exchange differences (8) (2,832) (73) (124) (292) (3,329) At end of year 42 7,368 390 605 1,597 10,002 Accumulated depreciation At beginning of year 36 857 462 517 1,646 3,518 Depreciation charge - 171 - 103 77 351 Accumulated - - - (37) - (37) depreciation on disposals Exchange differences (6) (148) (73) (89) (269) (585) At end of year 30 880 389 494 1,454 3,247 Net carrying value at end of year 2016 12 6,488 1 111 143 6,755 Mining Land and Leasehold Motor Other Total property, buildings improvements vehicles plant and equipment $'000 $'000 $'000 $'000 $'000 $'000 2015 Cost At beginning of year 28 17,403 540 828 2,048 20,847 Additions 28 1,824 - 20 75 1,947 Disposals - - - - - - Exchange differences (6) (2,526) (77) (116) (292) (3,017) At end of year 50 16,701 463 732 1,831 19,777 Accumulated depreciation At beginning of year 11 714 537 447 1,725 3,434 Depreciation charge - 230 1 130 136 497 Accumulated - - - - - - depreciation on disposals Exchange differences 25 (87) (76) (60) (215) (413) At end of year 36 857 462 517 1,646 3,518 Net carrying value at end of year 2015 14 15,844 1 215 185 16,259 Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 15. Intangible assets Balance at beginning of year 11,682 15,488 Amortisation (848) (975) Foreign exchange differences (345) (2,831) Balance at end of year 10,489 11,682 In August 2008 the Company entered into a throughput agreement with TCM, a subsidiary of Grindrod, the operator of the Matola Terminal, and CMR Engineers & Project Managers Proprietary Limited. This agreement granted the Company one mtpa of port capacity through the Matola terminal commencing 1 January 2009, for an initial term of five years. This capacity was increased to approximately three mtpa in March 2011 and the Company has the right to renew the agreement (subject to certain conditions) at the end of the initial term, for further periods of 3 successive periods of 5 years each for a total of 15 years. During the prior year the Company reached an agreement with Grindrod to settle the current liabilities to date as well as cover all future take or pay obligation until 31 December 2016. The settlement of $10.3 million was paid during the prior financial year. The terms of the Throughput Agreement can be renegotiated if required to facilitate any production by its Vele Colliery and Makhado Project. 16. Other receivables Carrying amount of: Nimag loan 811 1,503 Other loans 202 243 1,013 1,746 Balance at beginning of year 1,746 2,245 Loans repaid (444) - Other - (312) Foreign exchange differences (289) (187) Balance at end of year 1,013 1,746 Nimag loan CoAL provided a loan as part of the NiMag disposal to settle the balance of the purchase consideration. The loan bears interest at the South African prime overdraft rate less 0.5%, payable quarterly in arrears. Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 17. Other financial assets Carrying value of financial assets at fair value through profit or loss Listed securities - Equity securities 188 468 Unlisted securities - Equity securities in investment funds* 5,545 3,145 5,733 3,613 Fair value movements in other financial assets are recognised in other (losses)/gains in the consolidated statement of profit or loss. Refer note 7. *Listed investments are carried at the market value as at the reporting date and unlisted investments are valued with reference to the investment company's fund statement. Deposits 1,488 266 7,221 3,879 Other financial assets have been analysed between current and non- current as follows: Current 188 468 Non-current 7,033 3,411 7,221 3,879 18. Inventories Consumable stores 5 218 Finished goods - 18 5 236 The cost of inventories recognised as an expense during the year in respect of continuing operations was $0.05 million (2015: $0.5 million). Year ended Year ended 30 June 2016 30 June 2015 $'000 $'000 19. Trade and other receivables Trade receivables 48 95 Other receivables 963 1,111 Allowance for doubtful debts (345) (414) 666 792 The carrying amount of trade and other receivables approximate their fair value due to their short-term maturity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables as disclosed in note 19. The Group does not hold any collateral as security. Movements on the allowance for doubtful debts are as follows: Balance at beginning of year 414 484 Allowance for bad debts - 6 Foreign exchange differences (69) (76) Balance at end of year 345 414 Trade receivables are exposed to the credit risk of end-user customers within the coal mining industry. The Group has an established credit policy under which customers are analysed for creditworthiness before the Group's payment and delivery terms and conditions are offered. Customer balanc

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