Document 998pvb31YRoX7oG60YDg1pBv5

FILE NAME Cape Asbestos CAPE DATE 1977 Mar 31 DOC CAPE125 DOCUMENT DESCRIPTION Charter Consolidated Ltd. - Annual Reports & Accounts Legal - Tibbs Case Exhibit 23 _ . . | eo: Income from investments note 1 Surplus on realizations realizations of investments Interestpayable expenditure 3 Groupshare of retainedprofitprosfits less losses of associated companiesnote 2 : Profit Profit before before taxation taxation items taxation and beforeextraordinary extraordinary items subsidiaries profits of Deduct Interestof outside shareholdersin acquisition profiprtofit Attributable to Charter Charter share Earnings per proposed Dividends paid and proposed 16.64p 1976-18.501976-18p.50p 1976-18.50p note 8 note 9 Profit for the year retained before extraordinary items Deduct Extraordinary items note 4 Retained profit transferred to reserves Profit for year after extraordinary items totalled 8,057,000 1976- 1976- 16,614,000 Movements on reserves note 17 Reserves at 31 March 1976 Retained profit for the year - Revaluation of properties net of deferred taxation shareholdings Dilution and disposals of inin subsidiary and associated companies Reserves at 31 March 1977 7,789 9,652 9,384 268 155,121 268 1,724 153,665 19,389 _ ... ...| A ... e jaaneys ... sents cakes ... ... ... 140,725 9,533 5,184 321 155,121 The accounting policies on pages 18 and 19 and the notes on pages 23 to 31 form part of these accounts The report of the auditorsis on page 17 * Short term loans deposits Bank and cash balances balances Current liabilities Net current assets 8 Financed by * Share capital note 14 Share premium account note 15 Reserves note 17 ts Total capital and reserves : , fess : Capital expenditure grants Interest of outside shareholders in subsidiaries Long term indebtedness note 16 Deferred taxation note 18 2 37,755 37,755 288,524 Z 26,202 30,631 153,665 34,765 AE 278,926 . s 26.202 30,622 155,121 210,498 211,945 988 . 15,946 53,230 s 7,862 863 13,332 49,414 3,372 > 288,524 278,926 M. B. HOFMEYR + B. W. PAIN Directors pages The accounting policies on pages 13 and 19 and the notes on The report of the auditorsis on page 17 23 to 31 form part of these accounts we . - . * Subsidiary Subsidiary Subsidiary companies mes Shares at cost or valuation aS Amounts due from subsidiaries Amounts due tosubsidiaries subsidiaries Deferred asset aAdvancecorporation taxnote 18 ts Current 3 eS ae BL FReisneravnesced cee << Share capital note 14 : - Share premium account note 15 a note 17 Total capital and reserves Long term indebtedness note 16 Current liabilities Creditors Taxation Proposed final dividend 6,015 62,261 ..M HOFMEYR - " PAIN : Directors 64 1,529 4,461 6,054 61,289 The accounting policies on pages 18 and 19 and the the notes on pages 23 to 31 form part of these accounts The report of the auditorsis on page 17 Contents . Notice of Meeting Directorate and Administration Report of the Directors Review by the Chairman Ten Year Financial Record Accounts Principal Investments Subsidiary Companies Analysis of Assets and Income Interests of the Company NOTICE the the HEREBY member > GIVEN that twelfth annual general A : entitled entitled to attend and vote at meet- meetingof members of Charter Consolidated ing is entitled to appoint one or more to proxies Winchester Limited will be held House 100 Old attend and on poll to vote instead of him A proxy July member EC2N 18U Broad Street London on Tuesday 19 need not be a of the company A form of 1977 at 12 noon for the following purposesTuesday proxyacaompaniesccompanies this notice m 1. To consider the accounts andthe reportof the directors for the year to 31 March 1977 by order of the board : 2. To declare afinal dividend To reappoint as directors Mr G. W. H. Relly Mr Burnell H. Fraser P. C. : and Mr. F. Oppenheimer 40 Holborn Viaduct London ECIP.1A " June 1977 reappoint Coopers 4. To * & Lybrand and Deloitte & =. Co. as joint auditors and authorize the board to BOOTH |. secretary fix their remuneration NOTES 1. H^ldersof share warrants to bearer who wistho attend * in person or by proxy or to vote at the meeting must comply with the relevant conditions : governing warrants to bearer see page 48 share : 2. Holders of loan stock reminded that only shareholders are entitled to attend and vote at the meeting 3. To be valid the form of proxy must reach the company at PO Box 102 Charter House Park Street Ashford Kent TN23 20R not less than 48 hours before the meeting 4. There are no directors service contracts required by The Stock Exchange to be made available forinspection at the meeting : Chairman and ~. Managing Director M. Hofmeyr Deputy Chairman Sir Philip Oppenheimer Directors P. D. Burnell A. Smith J.N. Clarke J. H. Collins MBE DSC H. Dent H. Fraser O. Hambro MC H. F. Oppenheimer B. W. Pain G.W.H. Relly G. Richardson : Spiro | G. Stopford Sackville Stucke M.W. Thomas J. Ogilvie Thompson W. Wilson Alternate Directors R. J. Armitage F. J. A. Howard A. Oppenheimer A. W. Owston aa ' Executive Committee M. Hofmeyr Sir Philip Oppenheimer N. Clarke B. W. Pain -: G. Richardson G. Stopford Sackville Managers R. J. Armitage D. Burnell F. A. Howard A. W. Owston Secretary D. Booth Chief Accountant H. Dawkins Administrative Manager J. A. Pool Chief Economist C. Smets Personnel Consultant D. McVean Public Relations Consultant H. O. Ellison Director responsible for technical services Stucke Consulting Engineers * J. V. Cleasby Smith Consulting Geologist Osten Consulting Mechanical and Electrical Engineers W. Purkiss : S. Sheer Consulting Metallurgist * R.M. Chaston The directors have pleasure in submitting their twelfth annual report with the March audited accounts for the year ended 31 March 1977 : The company's operations during the year are dealt with by the chairman in his review on pages 7 to 13 Financial results The following are the major features of the consolidated profit loss account 1977 1976 000 000 Consolidated profit . before taxation ~ Deduct Taxation 38,731 36,437 18,693 | 14,666 Interest of outside : shareholders 2,597 2,382 21,290 17,048 Earnings attributable Dividends Interim of 2.75p per share paid on 3 January 1977 Recommended final of 4.68242p per share payable on or about 22 July 1977 17,441 19,389 4,907 7,789 4,461 7,081 distribution which is permitted under the - . inflation legislation If the fore- shadowed changein the rate of tax credit from 65ths to 67ths takes place the final divi- * dend would stand increased by 0.14408p per share and the : tax crea correspondingly reduced Arrangements for payment of the additional amount of dividend would be announced in the press as soon practicable This adjustment wouldincrease the cost the -- dividend shownin the accounts by 151,000 151,000 to : 5,058,0005,058,000 DirectorateDirectorate list of the directors of the company appears on page 3 Mr J. Ogilvie Thompson was appointed to the . board on 22 April 1976 and Berning resigned as director on 31 December 1976 . Mr. S. Spiro relinquished the chairmanship of company on 31 July 1976 while remaining a executive director and Mr M. Hofmeyr elected in his place from 1 August 1976 retaining his position as managing director In accordance with the company's articles of association Mr S. Spiro retires by rotation at the forthcoming annual general meeting and does not wish to be reappointed Mr G. W. H. Relly Mr H. Fraser Mr P. C. D. Burnell and Mr H. F. Oppenheimer retire by rotation and offer themselves for reappointment Profit for the year retained Extraordinary items Transfer to reserves 9,652 9,384 268 12,308 2,775 9,533 Earnings per share after taxation and prior to extraordinary items were 16.64p compared with 18.50p in the year to 31 March 1976 The board has a recommended final dividend of 4.68242p per share to make a total dividend for the year of 7.43242p per share The final and interim dividends together with the tax credit of 4.00208p per share represent the maximum Inflation accounting The directors consider that the adoption of a form of current cost accounting is appropriate under conditions of inflation However considerable controversy has arisen over certain proposals contained in the exposure draft ED18 published following the Sandilands committee report on inflation accounting and until such time as the application of the principles of current cost accounting have been estab- lished it is considered that it would not be meaningful to attempt to provide an indication of Charter's results based on this method of accounting e rag General information * The book value of the group's fixed assets increased from 47,353,000 to 54,199,000 during the year Details are shown on page 27 in note 10 on the accounts Movements on reserves are shown the consolidated profit and loss account on page 20 and in note 17 on the accounts on page 31 - During the year the company issued 1,800 fully paid shares of 25p each against conversion of 7,499 five per cent convertible unsecured loan stock 1984. The issued share capital was thereby increased to 26,201,960.25 in 104,794,781 fully paid shares of 25p each and 326,500 partly paid shares of 25p each 1p paid up An analysis of assets and income appears on page 37. Other particulars which constitute part of this report are given on page 47 and a list of subsidiary companies on page 36 40 Holborn Viaduct London EC1P _ by order of the board BOOTH secretary 9 June 1977 Financial results consolidated The profiprtofit before was 38.7 million compared with 36.4 millionlast year However substantially increased tax charges taken place in fees earned from projects high clients serious impact of the of inflation rate resulted in net earnings falling from 19.4 million equivalent to 18.50p - per share to The tax charge was very much higher at 18.718.7 million compared with 14.7 million last year 17.4 million equivalent to 16.64p 16.64p share Greatly increased tax charges were borne by E The appreciably lower gold price led to reduced _. -. dividends from direct gold mining interests - these offset by increased dividends Anglo from American Corporation of South fi > Africaand from the diamond interests held mainly Anglo through American Investment inter- Trust Increased dividend income was also received from Malaysian tin mininginter- ests and from Beralt Tin and Wolfram as result of the higher tin and wolfram prices and these were also reflected an increase in ~ Charter's share of the retained earnings of associated companies I refer later to the con- absence of income from the Zambian copper mining interests held through Minerals and Resources Corporation the Canadian associated companies and Cape . Industries suffered higher South African tax Includedin the tax charge was amount for deferred taxation of 4.4 million Charter con- * tinued follow the principles for deferred taxation set out in the recently withdrawn Statement of Standard Accounting Practice but will review its accounting policy this regard during the current year following the : evolution of accepted practice - provision We have: made a further : under extraordinary items of 7.9 millionthe investment in the Soci^'t^'Mini^re Fungurume SMTF copper project in Zaire Including demobilization costs our vestment in SMTF amounted 24.2 million Profits on the realization of investments were of a similar order to last allowing for the contribution which arose in 1975-6 from the placing of Rio Tinto Corporation shares We have this year included under this heading the effect of currency differences resulting from the conversion of foreign currency loans financing portfolio investments which in previous years had been included in extraordinary items The comparative figures for last year have been adjusted to bring them into line with this new practice The industrial subsidiaries achieved most satisfactory performances and these are reflected in the increase in trading profits from 14.6 million to 18.9 million After a record year in 1975 Cape Industries made a further substantial advance and the Elastic Rail Spike and Heatrae groups both achieved higher profits A provisioonf 14.6 million was made last year and we are now reducing thefigure at which 1.7 the investment is held in our books to million US million During the year the Indonesian government unilaterally required Trend International - to renegotiate its oil production sharing contract and subsequently a full reassessment of the available reserves of Trend was carried out In the light of this a substantial reduction was made in the valuation of Trend in the books of our associates MINORCO and Anglo American Corporation of Canada AMCAON ur share of this amounted to 4.5 million These write- downs together with certain other smaller items and the effect of currency realignment on conversion of the group equity interest in associated companies into sterling resulted in deficit under extraordinary items of 9.4 million At 31 March 1977 the value of Charter's net The net charge in respect of administration and technical expenditure rose sharply Measures were taken last year to reduce the overall level of costs but the considerable savings achieved only partially offset the reduction which has assets adjusted for the market and directors value of investments was 267.3 million equivalent to 255p per share compared with 271.4 million equivalent to 259p per share at 31 March 1976 The number 2 dredge at Ayer Hitam tin mine in Selangor state Malaysia LD etal TTT CSET ET Mining CLEVELAND POTASH been established by the exchange of Charter's . Malaysian tin mining interests for 28.6 per - cent holding in New Tradewinds balance Boulby At the Cleveland Potash mine at Cleveland work on refurbishing and rehabilitating the service shaft was finished in March . 1977. This substantially completed the initial construction of the mine and both shafts are now fully available to develop production operations . The main objectives over the past year have - been increase the number of mining faces to adapt the conventional mining techniques which entail blasting deal with the difficult conditions and to introduce con- geological which mine by tinuous mining machines cutting rock and have a higher production potential The development of new mining areas has been impeded by a relatively steeply inclined ~ section of the seam south of the shaft pillar and of in addition the ore in the available mining areas contained large quantities of insoluble materials with resulting poor recoveries in the treatment plant Although production has shown some in recent months the current improvement level of some 14,000 tonnes product per I less than 20 per cent of month represents : design capacity of the capital being held by Pernas Securities New Tradewinds has also acquired the entire share capital of London Tin Corporation management A new management company owned jointly by Pernas Securities h; aasndbeeCnhaersttaebrliPseherdnatso Charter Management services provide technical and to the mines in the New Tradewinds group the businesses and personnel of the absorb of the Tronoh and management companies LE ; London Tin groups The new group which forms the largest tin in has interests mining group in the world 18 tin mining companies predominantly in Malaysia but with some investments in Thai- land and Nigeria The group produced 27,322 tin concentrate in tonnes of 70-75 1976 representing approximately per cent ee world of production . generally The operating companies of the group achieved higher profits as a result of the for tin which rose from an of improved price in 1975 to 4,242 average of 3,090 per tonne tonne in 1976. Prices continued to increase per tonne on during 1977 and stood at 5,566 per On the other hand the adaptation of conventional mining techniques and the introduction of three continuous mining machines have produced encouraging results and in addition a novel technique of long hole horizontal workings drilling has been introduced which probes up to 1,000 metres ahead of the current This is proving to be valuable by providing advance information on the elevation thick- ness and quality of the seam on which future mining operations can be planned The delay in the build of production has necessitated additional finance to meet development expenditure and operating deficits and it has been agreed in principle 11 June : a Efforts in the field of future development are being concentrated on two projects Malaysia 139 in Perak state which is a proven prospect new dredging operation and joint venture in state which shows considerable .: Selangor promise Development work on the latter was , \ held up initially because of the failure by the Selangor State Development Corporation to . contribute its share of prospecting and deve- expenditure but further discussions that lopment are currently taking place and it is hoped work on development can recommence with- - out undue delay 4 subject to review to make available to the project in 1977 a further sum of up to 20 million of which Charter's share is 7.5 million Potash prices have continued to be weak with substantial stocks overhanging the world market but there are prospects of improvement towards the end of this year and in 1978 MALAYSIA Our partnership with the Malaysian federal Pernas Securities has government agency FUNGURUME referred to the suspension of Last year we Soci^'t^M'ini^rede development work on the Fungurume SMTF project in January 1976. At that time we hoped that the depressed and the unfavourable economic copper price the world in and political conditions affecting particular and Zaire in which made it generalimposible to finance the project would show imposible some improvement during the latter half of 1976. However the outlook for metal prices 2s remains uncertain and this combined with : further problems in Angola and central Africa and the continuing effects of a world recession has not eased the financing problems Over the past year the care and maintenance of the property has been provided for out of the proceeds of equipment sales and in addition much effort gone into further feasibility studies based on various production levels While the quality of the orebody and its amenability to treatment unquestioned : the continuing escalation in capital and the unsatisfactory for raising finance . must cause grave doubts about the possibility of reactivating the project for some years In the circumstances we havde ecid to e mad ke the further provision of 7.9 million against our . investment BERALT AND ANGLADE Market prices wolfram concentrates rose substantially during 1976 with the result that Beralt and Wolfram in which Charter has a 46.3 per cent interest had successful year despite a decline in the volume of concentrates produced and sold by the Portuguese operating company Profit before tax amounted 1975 to 2.6 million compared with 1.4 million in 1975 Production of wolfram concentrates amounted to 1,597 tonnes in 1976 compared with 1,742 tonnes in the previous year Studies are being made of the possibility of establishing new plant and equipment in Portugal for beneficiating the wolfram concentrates into upgraded tungsten products As part of a major development plan to secure the future of the mine work has also commenced on the installation of an incline shaft to open up a new lower level to rock hoisting and man transport The improved tungsten price also helped Soci^'t^'Mini^red'Anglade in which Charter has a 25 per cent interest Production at the company's scheelite mine in the Pyrenees increased to 1,573 tonnes of concentrates containing 673 tonnes of wolfram and trading profits amounted to 1.6 million before tax and depreciation These results have enabled Anglade to repay its debts and shareholders other than advances long term liabilities during the year and to declare a maiden dividend of FF15 per share A new orebody blocked out during the year has increased the life of the mine to at least five years at the present pro- duction rate and increased average grade of reserves TARA aa Charter holds 10.8 per cent Tara Exploration and Development Company which through is its subsidiary Tara Mines bringing com- pletion the development of a lead mine at Navan in the Republic of Ireland capital cost has been held within the budget of 150 million and production commenced this month The mine and concentrator are designed to produce about 500,000 short tons of lead and zinc concentrates annually from 2.5 million tons ore current price levels the contribution to revenue by zinc and lead : would be in the ratio of five to one Tara which has contracted to supply a sub- stantial part of its concentrates to European smelters will become an important source of zinc There is every cause to believe that it will be most successful mine given reasonable price levels for zinc and lead ; woe EXPLORATION : have maintained base metal explora- in tion programmes Ireland and Spain where number of lead prospects are being drilled Charter continued to participate in exploration campaigns in Australia and Brazil through its interests in Australian Anglo American and in Anglo American Corporation do Brasil AMBRAS The Australian programme includes activity in Tasmania New Zealand Papua New Guinea and Fiji as well as Australia evaluation Australia In Western continues of possibly economic copper mineralization at Sally Malay In Fiji further drilling is planned in 1977 at the promising Namosi copper prospect which is being investigated in a joint venture with Amax Inc. and Preussag AG The main prospecting interest in Brazil centres on the Jacobina gold prospect in Bahia state where diamond drilling and adit development have delineated significant medium grade reserves of ore AMBRAS has a 49 per cent interest in the group of gold mines owned by Minera^^Moorro Velho which had a difficult year as a result of low grades of ore recovered and high inflation in Brazil In the fifth round of United Kingdom North Sea exploration licences a company group which includes Charter has been provisionally awarded two contiguous blocks 14/16 and 14/17 in the Moray Firth area Charter's interest in the blocks will be 8.2 cent after 51 per cent participation by British National Oil . Corporation which will be operator for the , group Industrial : CAPE INDUSTRIES Our principal industrial subsidiary Cape Industries had another successful in 1976 with turnover rising by 24 per cent to 133.1 million and tax profit by 39 per cent from 10.2 million 14.2 million Currency gains accounted for 1.5 million of the year's profit The mining division again performed excep- tionally well producing a 44 per cent gain in though trading profits demand for amosite fibre weakened towards the end of the year Prospects for the current year depend to a great extent on the activity in the construction industry throughout the world In the auto- motive and engineering division trading profits rose by 33 per cent mainly due a sharp increase in exports Although there are continu- ing difficulties in the United Kingdom economy the export market remains buoyant and pros- pects for increased sales and profits in 1977 are good The building and insulation companies achieved a 16 per cent increase in profits virtually all of this arising from the insulation contracting operations This was a satisfactory performance against a background of depressed conditions in the United Kingdom construction industry Capital spending in 1977 is again expected to be heavy requiring some 14 million This will be met out of cash flow and borrowing resources at present unutilized Last year reference was made to the health hazards associated with the use of asbestos Since then the Advisory Committee on Asbestos has been set up and has published an interim statement Cape has given written evidence to the committee and will cooperate with it to the full At the same time through the Asbestosis Research Council research into the causes and prevention of industrial disease continues ERS AND HEATRAE In year of uncertain economic conditions which inevitably affected United Kingaom markets the Elastic Rail Spike ERS and Heatrae groups both wholly owned by Charter have made solid progress and it is particularly encouraging that their efforts to increase exports are producing satisfactory . results a . Qe Trading profits of ERS increased from 1.6 million 1.8 million In the United Kingdom the home market for railway track fastenings continued the lower level experienced in 1975. Export business was sustained by deliveries of the Pandrol rail fastening assembly not only to traditional users abroad but also to new markets in Peru Spain Taiwan the United States and Yugoslavia Pandrol wholly owned subsidiary is to be congratulated on receiving in April Queen's Award for Export Achievement Torque Tension whichis concerned with mine roof bolting systems made a much improved contribution to ERS group profits Heatrae group increased sales by 23 per cent trading profits from 0.6 million to 0.9 million After two years of decline very satisfactory increase in the volume of sales was achieved in markets which continued to . be weak and unpredictable throughout the year Export business has now reached a firm base from which progress in the future will be more rapid Associated companies MINORCO Minerals and Resources Corporation MINORCO in which we have a 20 per cent interest had a disappointing financial year to 30 June 1976 with consolidated net profits declining by 33 per cent to 6.9 million Although record results were again achieved by Engelhard Minerals & Chemicals Corporation EMC in which MINORCO has a 30 per cent holding adverse developments affected its oil interests held through Trend International and due to the low copper price no dividends were declared by the Zambian copper mining companies EMC's excellent profit growth has continued in the face of stagnant world trading conditions and net earnings rose by 10.2 million to 124.9 million during the year to 31 December 1976 Trend International in which MINORCO has a 43 per cent interest is engaged in the production of crude oil in Indoriesia through a joint venture operating under a production sharing contract with the Indonesian state oil agency Pertamina Trend also holds producing Stainless steel clad insulation installed by Cape Contracts Limited on plant and pipework for machine modules destined for an offshore oil production platform  producing and non ; properties in the United national an extraordinary 10.8 States and Canada 1976 the Indonesian HUDBAY of million government required a renegotiation of the ~ 3.3 million was made against its investment production sharing agreement increasing the in the Verde copper project in Mexico ' government's share to 85 per cent together These charges were partially offset thegain ' - -, with other significantmodifications the light : after taxes of 3.0 million on the sale of of production problemsencountered and the Western Decalta with the result that HUDBAY'S : ~ ~ changed economics arising from the revised loss the year after extraordinary items of : production sharing contract has been million amounted to 8.3 million necessary to reduce the estimated recoverable Outlook reserves and has accordingly accordingly been deemed wise by MINORCO AMCAN to write down ee pO substantially the book value of their direct and .. indirectinvestments in this company Zambia Copper Investments ZCI in which MINORCO has a 49.9 per cent interest made a loss of 0.3 million during the year to 30 June 1976 a result of the absence of - dividend income from its principal copper producing investments Nchanga Consolidated Copper Mines and Roan Consolidated Mines Furthermore the 20 per cent devaluation of the Zambian kwacha against the United States dollar on 9 July 1976 had the effect of reducing from 10.6 million to 8.4 million the dollar value of dividends due to ZCI but await- Bank ing externalization permission from the of Zambia _. Despite the continuing depressed markets for most metals and minerals for copper in particular Charter the past year has been able to increase its profits before tax This is attributable to the broad spread our investments the success of our industrial operations both of which are encouraging aspects for the future In particular the major ~ developments now in progress within the Anglo American Corporation group especially the fields of uranium and coal South Africa are of considerable importance to us The outlook for Charter however has to be seen against the background of the general business climate for the mining finance in- dustry as wholein turn inevitably 1} The United States company Inspiration Con- solidated Copper Company interest in which MINORCO has 15 per cent interest produced net earnings for 1976 of 126,000 com- dominated by the level of metal prices under the influence of the continuing sluggish process of world economic recovery and the very large metal stocks overhanging the market " pared with a net loss of 3.9 million in the These low metal prices the absence of an previous year overall mood of business confidence the potentially high political risk involved Kin AMCAN mining investment particularly in the less The major asset of Anglo American Corpora- developed areas of the world have combined tion of Canada AMCAN in which Charter for the time being to produce stagnation has a 24.8 per cent interest is a 38 per cent during a period when in fact a high level of holding in Hudson Bay Mining and Smelting investment is required if world metal needs are Co. HUDBAY a diversified natural resource to be met in the medium to long term The |, company HUDBAY reported net earnings before extraordinary items of 2.8 million compared with 14.8 million in 1975. This decline was mainly attributable to continuing weak markets for metals and exceptionally high levels of taxation on potash mining In April result is that the skills and tech- experience . nical resources available to the mining industry are employed when in contrast work. should now already be in progress on pre- liminary development of many significant known mineral deposits this year HUDBAY sold its potash assets to the Saskatchewan government body for 144 million in cash excluding certain liquid and marketing assets Lower fertilizer prices in the United States led to a fall in the profits of HUDBAy's 51 per cent subsidiary Terra Chemi- cals International from 18.6 million in 1975 The potential longer term dangers the present trends are all too obvious both for the less developed countries in terms of mineral resources left undeveloped and for the indus- trialized nations in terms of future raw material shortages and exorbitant prices to 12.0 million last year The decision to write down the investment in Trend Inter- Webelieve however that this situation cannot last There has been for some considerable gle time an enormous unprecedented gap between current price levels and the prices _ required to open mines Copper is typical example in that all known undeveloped deposits require prices at least per cent above prospect current level to shortages them viable As the prospect of future shortages becomes more certain this gap close No doubt prices will continue to be volatile but the trend will be upwards and Charter will in due course participate in this recovery terms both of its activities and of its earnings We have certainly had more than our fair share of the problems faced by the mining industry over the past few years but with our considerable technical resources our strong asset base and our in- vestments across the whole range mining notably those held through associated com- panies covering operations in Europe Malaysia central and southern Africa and North America we are very well placed to participate in the opportunities which lie ahead ; Mr Sidney Spiro who served the companays deputy chairman and managing director - and subsequently as chairman over period 1969 to 76 has indicated his wish retire from the board at the forthcoming annual general meeting I would like to express to him my gratitude and that the board for the great contribution he has made to the affairs of the company and [ t" icularly in the extremely trying circumstances of the past few years He has done most valuable work in immensely difficult times and we wish him all success for the future ; During the year F.S. Berning resigned from the board for personal reasons and should also like to express to him our appreciation of his services and good wishes for the future 14 June 1977 M. HOFMEYR . Chairman Meanwhile the prospects for our industrial interestsgood and although it will be difficult to maintain the rate of growth of the past few years we can certainly expect a steady overall improvement Despite the con- tinuing uncertainties surrounding British in- dustry we believe there are opportunities for "} Charter to enlarge its industrial base and steps are being taken to accomplish this by pro- is moting the expansion of our existing industrial . companies Active consideration is also being given to our entering new sectors of industry in \ the United Kingdom and if this bears fruit the company will in addition achieve a better balance between United Kingdom earnings and its income from mining which arises largely overseas with consequent financial and tax advantages ee TS Directorate and personnel In accepting the implications of the govern- ment's pay restraints over the past two years aT the company and its employees have had to face considerable difficulties I am most grateful to all our employees for the understanding they have shown in these circumstances and for their continuing loyalty and dedication to the company It is to be hoped that the next phase of pay restraint will give sufficient se attention to the need to restore differentials and to provide appropriate incentives at all levels vs . Ten Year Financial Record Charter Consolidated Limited and subsidiary companies . , ned Earnings Earnings year to 31 March Ya ey, Income from investments Surplus on realizations Interest receivable less payable . Trading profit : a 3 Deduct Administration and technical expenditure Prospecting expenditure a : : : Add Group share of retained profits less losses of associated companies aan 5 Profit before taxation Deduct Taxation Deduct Amount attributable to outside shareholders and acquisition Earnings attributable Deduct Dividends paid Earnings per share Dividends per share A Imputed tax credit per share 2,3 2,375 3,031 18,936 36,861 3,674 825 4,499 32,362 a .. 6,369 38,731 18,693 20,038 Bay ay 2,597 17,441 7,789 9,652 16.64pt 7.43pt 4.00pt 11.43pt Net assets fat March Investments at market value or directors valuation Investments at book value Fixed assets Exploration and development expenditure Net current assets Deduct Capital expenditure grants minority interest long term indebtedness and deferred taxation Total capital and reserves Add Surplus of market value or directors valuation of investments over book value Total net assets Net assets per share 252,792 195,969 54,199 601 37,755 288,524 78,026 210,498 56,823 267,321 255p Issued share capital fat March reflects change in accounting policy for foreign currencies items introduced in 1972 resulting from new accounting policies 26,202 .. 000 1975 .-, 000 2 1974 ,, 000 - 18,220 ~ 22! 17,699 6,0781 2,124 2,910 758 14,566 6,566 35,954 =. 25,631 13,254 4,309 327 7,198 ~ 25,088 2,127 1,053 1,497 2,163 1,295 919 3,180 32,774 3,663 36,437 14,666 3,660 21,971 5,965 27,936 9,869 2,214 22,874 3,409 25,983 9,076. 21,771 18,067 16,907 2,382 19,389 7,081 .861 '." + 17,206 6,507 1016 15,891 5.987 * 12,308 18.50p 6.76pt 3.64pt 10,699 9,904 16.42p te < 1516p 6.21pt 3.24pt 5.71pt 269pt 10.40pt 9.45pt BAGpt 602 1,546 18,515 1,137 17.378 3,832 13,546 1,103 12,443 6,654 5,789 11.87p 6.35p 1.65p 8.00p 1972 000 10,441 3,445 222 4,442 18,550 901 778 1,679 16,871 774 1971 000 1970 000 14,372 1,104 15 3,704 19,165 999 769 1,768 17,397 2,803 20,200 3,276 16,924 10,705 5,343 511 4,199 20,036 1,237 18,799 4,772 14,027 3,041 125 839 13,583 1,349 1,349 12,234 12,234 2,114 10,120 556 76,368 8,381 7,987 15.84ptt 8.00p 1,029 12,998 7,422 5,576 13.13p 7.50p 10,120 6,522 3,598 ' 10.34p 6.66p 8.00p 7.50p 6.66p 539 871 12,635 1,283 1,283 11,352 11,352 11,352 1,649 9,703 9,703 6,522 3,181 9.92p .6.66p 6.66 255,606 196,151 47,353 657 34,765 278,926 66,981 211,945 59,455 271,400 259p 303,863 199,393 36,668 4,442 249,7 2 197,550 302,020 351,347 184,410 30,075 4,069 24,531 243,085 48,189 194,896 166,937 361,833 345p 324,189 178,597 23,640 2,250 27,177 231,664 46,951 184,713 145,592 330,305 315p 272,637 150,413 22,000 759 34,425 207,597 35,234 172,363 266,785 143,559 21,556 37,760 202,875 35,175 167,700 123,226 290,926 277p 325,959 138,388 19,578 17,969 175,935 33,969 141,966 187,571 329,537 333p 383,226 141,547 3,315 5,424 .150,286 14,991 135,295 241,679 376,974 385p 268,929 123,723 3,015 3,986 130,724 1,125 129,599 145,206 274,805 280p 26,194 24,738 24,458 items included for the first time in 1973 on the introduction of the imputation tax system tto two decimal places Hearnings recalculated on revised figures resulting from new accounting policies . as -s : . : gta ecortiag 3 inane One of two Heliminers continuous mining machines machines operation the BoulBb ouly by of raise Cleveland Potash cuts the rock using picks on rotating below tem ocrmnsina sete Accounts senemrpen Accounting Policies ce : Consolidated Profit and Loss Account Consolidated Balance Sheet 85.0 Balance Sheet ~ Notes the Accounts Source and Application of Funds 18 20 21 ~~ 22 23 32 Report of the Auditors to the Members 18 to 32 and 34 to 36. These have been prepared on the historical We report on the accounts set out on pages included at revaluation . cost basis of accounting except for certain assets funds consolidated balance sheet is an investment in Soci^'t^M'ini^rede Tenke- Included in investments in the 4 24 development of this project SMTF at an amount of 1.7 million As stated in note on page 7.9 million Fungurume have considered it prudent to provide a further _ remains suspended and as a result the directors of 22.5 million In the present circumstances it - against the cost of the investment resulting in total provision excessive and therefore for us to assess whether the amounts provided are adequate or is not possible whether the investment in SMTF is fairly stated at 1.7 million on the basis of accounting described above a true and in our opinion the accounts give and of for the year With this reservation view of the state of affairs at 31 March 1977 and of the profit and source application fair ended on that date and comply with the Companies Acts 1948 and 1967 COOPERS & LYBRAND DELOITTE & CO Chartered Accountants London 9 June 1977 o Accounting Policies 1. Basis of consolidation - ) The accounts are prepared on the historical cost basis of accounting except for certain assets included at revaluation ii In order to facilitate administration the financial years Industries of Cape Limited and its subsidiaries and those of ~ the other group manufacturing subsidiaries terminate on 31 December iii The results of subsidiaries acquired during the year are included in the consolidated profit and loss account from . their effective dates of acquisition dealt with as extraordinary items in the profit and loss ae account : cen : iii Investments are included at cost unless the aggregate .~ of market value and directors valuation is less than book value or when in the opinion of the directors a permanent loss in value has arisen on any investment The diminution in value of long term investments is charged as an extra- ordinary item in the profit and loss account 5. Turnover oa Turnover is the invoiced value of sales and excludes both ~~ transactions between group companies and sales turn- over taxes 2. Foreign currencies i Profit and loss items assets and liabilities are converted into sterling at the rates of exchange ruling at the dates of the respective balance sheets -. ii Differences from the conversion into sterling of foreign currency loans financing foreign portfolio invest~ ments are included with sterling profits less losses arising on the realization of those investments accordance policy 4 these differences and the profits less realizations losses arising from the realizations of foreign portfolio ae investments are included in the profit and loss account as surplus realizations of investments Previously such differences were dealt with as extraordinary items The comparative figures for 1976 have been restated to reflect this change in policy and accordingly a loss of 854,000 has been transferred from extraordinary items to surplus on realizations of investments iii Differences arising from the conversion into sterling of all other foreign currency items are shown as an extraordinary item in the profit and loss account Income received Income from investments including where applicable the imputed tax credit is accounted for on received basis 4. Investments i Investments have been classified into portfolio which includes investments in prospecting companies and long term holdings The latter are deemed to be long term when they are considered to be of strategic importance to the group and as such are held with no intention of resale If due to changed circumstances long term investments cease to be of strategic importance they are reclassified as portfolio investments ii Profits less losses arising on disposal of portfolio investments are included in the profit and loss account as surplus on realizations of investiments Any profits and losses arising from the disposal of long term investments are 6. Capital expenditure grants Grants in respect of capital expenditure are credited to and loss account over the estimated average life of profit the assets Grants shown the consolidated relevant fixed balance sheet represent total grants to date less the 7 amount credited to profit and loss account 7. Depreciation - Fixed assets are written off evenly over their expected use- ful lives with the exception that no depreciation has been ue provided on freehold land The following rates are normally applied Freehold buildings - per cent per annum proety- Leasehold property- the period of the lease or 2 per cent per annum for leases in excess of 50 years Plant furniture and fittin-g1s0 to 20 per cent per annum Motor vehicles - 25 per cent per annum Depreciation on assets qualifying for capital expenditure grants is calculated on their full cost see policy 6 : i 8. Technical development expenditure Group expenditure on research and development patents and trade marks is written of when incurred 9. Deferred taxation Provision is made under the liability method for United Kingdom corporation tax and overseas taxation at the appropriate rates on the differences between the amounts at which certain items are included in the consolidated balance sheet and the amounts at which they will rank for taxation relief in the future Advance corporation tax on dividends payable after the balance sheet date is deducted from deferred taxation 10. Stocks and work in progress Stocks and work in progress are valued at the lower of cost and net realizable value Long term contract work in is valued at cost less foreseeable losses and progress 18 progress payments received and receivable Profits on + such contracts be assessed with reasonable certainty before the completion of the contract and are therefore taken on completion Cost includes expenditure which is incurred in the normal course of business in - bringing theproduct or serviceto its present location and condition Net realizable value is the estimated selling price all costs to be incurred 11. Prospecting exploration and development ~ expenditure Group expenditure on prospecting and on exploration and development dealt with as follows ( Expenditure to develop existing mining areas The expenditure is considered part of the general development of the mine and is written off to mine operating costsin the year incurred which are reflectedin trading profitin the profit and loss account ii Expenditure on general prospecting Expenditure during the exploration stage is written ' off in full in the profit and loss account of the year Further expenditure on prospects which after the initial stage appear promising is carried forward as an asset in the consolidated balance sheet under the heading of exploration and development expenditure while an evaluation is carried out to establish its commercial viability In the event that any prospect is abandoned after such evalua tion the total expenditure is charged as an extraordinary item in the profit and loss account iii Expenditure on development of new mines When it is decided to develop a prospect into a mine any exploration and development expenditure relating thereto is capitalized as an investment or fixed asset All further expenditure on development of the mine is capitalized If any project has to be abandoned in the development stage the total expenditure is charged as an extraordinary item in the profit and loss account investments of 10 per cent more on page3s4 and 35 Mine development costs of companies in the course of developing mines includingcharged to revenue by profit those companies are not accounted for in the loss account ' profit and associated The group accounts for its share of profits less losses as follows company * 0 Dividends from associated companies are accounted for on received basis and this income is included in income from investments in the profit and loss account ii In addition the group share of retained profits less ~ losses for the year is accounted for separately in the profit and loss account The accounts used to calculate the group share of retained profits less losses of associated companies are the latest audited accounts available to the group with the exception of certain associated companies whose audited accounts have been made up to dates which are more than six months before the group's ii year end For details of these exceptions see note on page 35 ii The group share of retained profits lesslosses of associated companies since 1 April 1971 or the date when they were first treated as associated companies is included in the book values of the investments in the consolidated balance sheet It is not practicable to ascertain the group share of retained profits prior to these dates 12. Associated companies Associated companies are i those in which the group owns 20 per cent or more of the issued equity capital or ii those in which the group's investment is effectively that of a partner in joint venture or consortium or iii mining companies managed by the group in which it also has a significant holding and in which the group exercises a significant influence over management and participates in the commercial and financial policy decisions of the companies concerned Certain other companies in which the group owns 20 per cent or more of the issued equity capital are not considered to be associated companies as the group does not exercise a significant influence over their management These companies are identified in the list of principal . . - poet - ios eh 1977 Gent ~ Consolidated Profit and Loss Account Year ended 31 March mth CHARTER CONSOLIDATECDONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES vie Oar eA openr 000 000 000 ) Income from investments note Surplus on realizations of investments . Interest receivable Trading profit note 5 _ oe as Deduct Administration and technical expenditure note 5 : Prospecting expenditure Interest payable note 3 ; ~ 18,581 2,375 2,746 > 18,936 ; 18,220 6,078 =". 28 291 see 44,566, 42,638 3,674 825 5,777 . 10,276 4U773 2,127 Ss Me 1,053 os : 5,821 9,001 32,362 32,774 vee share of retained profits less losses of associated Group companies note 2 Profit before taxation : 6,369 , 38,731 18,693 3,663 ; 36,437 : 14,666 | Taxation note 7 Deduct . ' _- Profit after taxation and before extraordinary items Interest of outside shareholders in profits of subsidiar:ies 2,597 acquisition profit _ " 20,038 fo 5 2,159 223 2,597 21,771 21,771 Ls 2,382 Attributable to Charter 1976-18.50p Earnings per share 16.64p 1976-18.50p note 8 Dividends paid and proposed note 9 Profit for the year retained retained before extraordinary Extraordinary items note 4 items Retained profit transferred to reserves 17,441 7,789 9,652 9,384 268 19,389 ... - 2,775 oe enen ' ina Profit for the year after extraordinary items totalled 8,057,000 1976- 1976- 16,614,000 Movements on reserves note 17 Reserves at 31 March 1976 Retained profit for the year Revaluation of properties net of deferred taxation - Dilution and disposals of shareholdings in subsidiary and associated companies Reserves at 31 March 1977 140,725 155,121 gue 268 9,533 _ 5,184 poten 1,724 153,665 153,665 321 155,121 23 to form part of these accounts 18 and 19 and the notes on pages The accounting policies on pages The report of the auditors is on page 17 ; Consolidated Consolidated Balance Sheet 31 March CHARTER CONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES Fixed assets note 10 expenditure Exploration and development Investments note 11 . Current -: assets Stocks and workin progressnote 12 Debtors Short term loans and deposits Bank and cash balances : . : ue : 1977 * ; 000 * 000 54,199 601 195,969 ~ 000 47,353 657 196,151 : 32,756 : 41,405 28,667 . 1,978 _ 23,939 - 37,100 33,679 2,024 4 104,806 Current liabilities Associated companies and other deposit accounts 4,710 Bank loans and overdrafts secured - 2,696,000 1976- 528,000 16,379 Creditors note 13 4, 2 -35,582 ,. Taxation 5,473 Proposed final dividend a ., 4,907 96,742 8,595 9,352 35,274 = 4,295 4,461 4,461 67,051 61,977 Net current assets Financed by Share capital note 14 Share premium account note 15 Reserves note 17 Total capital and reserves Capital expenditure grants Interest of outside shareholders in subsidiaries Long term indebtedness note 16 Deferred taxation note 18 37,755 288,524 26,202 30,631 153,665 210,498 988 15,946 53,230 7,862 288,524 34,765 278,926 26,202 30,622 155,121 211,945 863 13,332 49,414 3,372 278,926 M. HOFMEYR B. W. PAIN Directors The accounting policies on pages 18 and 19 and the notes on pages 23 to 31 form part of these accounts The report of the auditors is on page 17 31 Balance SheeMartch 1977 LIMITED CHARTER CONSOLIDATED 5 Subsidiary companies a ~ Shares at cost or valuation Amounts due from subsidiaries * 7 Deduct |. Amounts due to subsidiaries s : a Bee ; Deferred asset : : Advance corporation tax note 18 oa - Current ' | Bank balances . . eo 1977 000 93,779 4,050 97,829 38,212 59,617 i 2,642 Financed by . Share capital note 14 Share premium account note 15 Reserves note 17 Total capital and reserves Long term indebtedness note 16 Current liabilities Creditors Taxation Proposed final dividend 6,015 62,261 M. HOFMEYR W. PAIN Directors form The accounting policies on pages 18 and 19 and the notes on pages 23 to 31 part of these accounts : The report of the auditors is on page 17 > . vies . yo : . - Acounts AccountAsccounts 1. Income investments ) Associated companies see note 2 ~ Other investments ii Arising from ; Listed Investments , Unlisted investments iii Includes franked investment income - 2. Associated companies i Companies considered to be principal associated com- policy 19 panies as definedin accounting listed on pages34 and 35 12 on 19 page ii Income frominvestments in associated companies was : 3,247,000 1976 - 3,008,000 This represents divi- A ' . dends received by Charter in the year ended 31 March i ; 1977 being dividend declarations by associated com- panies relating to accounting periods which have been dealt with in these accounts of 3,110,000 1976 - A * 2,390,000 and dividend payments by associated companies in respect of subsequent periods of 137,000 1976-- 618,000 ; . Soe te : iii Group share of retained profits less losses of associated 5 . 1977 1976 . companies : ; . 000 000 ; Share of profits less losses before taxation Deduct Dividends declared from these profits : * 9,626 | ws 6,846 3,257 3,183 . - Group share of retained profits less losses before taxation Taxation see note 7 . oO : 6,369 * 6,079 3,663 3,218 . Extraordinary items see note 4 290 445 . 1,955 1,908 Group share of losses less retained profits for the year ended 31 March 1977 see note177 For balance sheet details of investmerits in associated 7 companies see note 11 . 1,665 2,353 .23 ') BaltiterestPayable on borrowingsby the group .- Interest payable borrowings more than five years "Loans repayable within than five |" repayable after more years years Loans repayable repayable years 3t ner " Extraordinary items Extraordinary Extraordinary items Fungurume SMTF notes Soci^'t^Soc'i^'t^'Mini^re de de notes Soci^'t^'and below below years Fungurume losses . _ Tax relief prior years relating SOMIMA SOMIMA ~ oPf rofits losses relating relating term net investments taxation and development Exploration Exploration and mining rights written acquisition in Goodwill ~ and expenditure and Oo profits on purchase shares shares currencies Net subsidiaries subsidiaries conversion conversion . : Net effect of Losses conversion relating to closure of operations net taxation taxation Provision Provision Provisiponepremramanneenntt 1d9i7m6inution in value of invest- ments ments no longer of provision assets Surplus : Sundry companies companies see note below Interest Interest Interest shareholders NOTES (7,039) yaya 8,907 477 (1,153) jemewr HERITY 4147, Are, 379 1,908 . AE te (6,907) 9,384 ) 564 ee (9,384) _ _ (2,775) the {US$3.0 US fi) No ii No item relief may offset by restriction this item this overseas taxation taxation be offset respect of Overseas overseas by restriction of relief for {iii}foflollolwoinwgi:ng companies extraordinary 000 000 the Effect currency Net currency currency realignment realignment of investments Sundry Sundry Sundry fealizations of Ffect of currency realignment Sundry 125 3,212 2 166 1,838 21 1,955 1,955 Qn 1,908 1838 - (96) {1,955) _ 1908 poner i i ie 1 F R7,ei & : | administration expenditure 5.Trading profitand and technical charged i Expenses : 1976-7,0007,000 company- 10,000 Auditors remuneration parent company- 10,000 Directors emoluments see note 6 = : Depreciation of fixed assets see note 10 : Hire of plant and equipment BE : Credits : Capital expenditure grants Rents receivable ii Turnover of the manufacturingsubsidiaries iii Administration and technical expenditure _ Expenditure Deduct Recovered from companies outside the group 267 OS 218 we 5,139 2 801 ft 542 160,013 oo. 30. 130,295 5 4 10,224 fo - e-2 | |o 6,550 10,724 8,597 2,127 iv subsidiary has a commitment to make an annual payment of Consolidated 187,000 to the Charter eight years pension scheme for the next 6. Directors emoluments _ Directors of the parent company Directors Uf Fees Salaries and her remuneration including pension contributions Pensions to former directors Deduct Fees received from other companies and refunded to the grouj 1977 ee . eo 76 1976 | 17,000 236,000 6,000 =. ~~. 14,000 266,000 5,000 259,000 41,000 285,000 48,000 218,000 237,000 Amounts paid to directors Chairmen Mr B. Hofmeyr note ) Mr S. Spiro Others 25,001- 27,500 22,50120,001- 17,50115,001- 7,501- 10,000 5,001 7,500 up to 2,500 NOTES i Including 8,627 as highest paid director to 31 July 1976 when he was appointed chairman = ii 13 directors have agreed to waive emoluments due to them 29,117 13,984 : _ 31,898 _ 1 1 fae a 3 5 Na 1 7 2 1 1 2 -_ 1 11 9 : from Charter Consolidated Limited and its subsidiary companies Fees waived by these directors during the year amounted to 34,000 1976 15 directors- 37,000 GROUP COMPANIES On profit for the year : income United Kingdom corporation taxat 52 per cent including deferred taxation of 3,185,000 1976 1976 1,110,000 : Taxation at 35 per cent on United Kingdom investment . ": 2a es to : a ee ee 11,749 11,749 ee ; 1,484 Deduct Relief for overseas taxation "<2 Overseas taxation including deferred taxation of 1,257,000 1976 571,000 Deduct Adjustments in respect of previous years Estimated overspill relief s cen ASSOCIATED COMPANIES woo: oS & oe . NOTES and In the event of certain overseas subsidiaries associated companies distributing reserves or profits additional liability to United Kingdom and overseas taxation would arise ii Overseas taxation is arrived at after taking for credit exporters taxation allowance for which the South African mining sidiaries are eligible sub- 12,614 : 6,079 | 18,693 8. Earnings per share Earnings per share attributable to Charter is calculated on earnings of 17,441,000 1976 - 19,369,000 and on 104,794,781 shares 1976 - 104,792,981 104,792,981 shares as if the additional 1,800 shares issued curingcuring the financial year had been issued for the whole year 9. Dividends paid and proposed Interim dividend of 2.75p per share 1976 2.5p paid on 3 January 1977 Proposed final dividend of 4.68242p per share 1976 4.25675p per share payable on or about 22 July 1977 see the report of the directors page 4 ' \ sy a |e od ' 10. Fixed assets . : eae ei th COST OR VALUATION At March 1976 a Currency realignment Ble 2 Additions at cust Subsidiaries acquired Disposals Revaluations J At March 1977 i up : A 220 LONG . FREEHOLD LEASEHOLD PROPERTY .. PROPERTY PROPERTY (nee ATE AND 2 MINING 7 Ny Boe! el Be, . : * . OS 6 27,717 1,017 2,813 Come 4,126 504 40,163 3,273 1,337 0 oF * 303 626 Ce 22 _ 8,051 .90 1,432 25 Soa 29,743 2,851 50,145 . : = DEPRECIATION ON ASSETS AT COST : OR AT VALUATION : At 31 March 1976 Currency realignment . ... . ... ... 550 ... i o 1,902 305 Charge to profit and loss account ... ... (47) 226 Subsidiaries acquired : Disposals as an ... = { 5} -- At March 1977 498- 2,433 29,104 NET BOOK AMOUNTS At 31 March 1977 At 31 March 1976 . } i 26,518 2,353 2,845 21,041 1,442 54,199 25,482 2,263 2,224 16,059 1,325 47,353 NOTES : i Fixed assets are included on the following bases At cost At valuation 1948 1970 1972 1974 1975 1976 LONG SHORT FURNITURE FREEHOLD LEASEHOLD LEASEHOLD AND MINING PROPERTY . PROPERTY 000 000 13,274 - 1,409 _ PROPERTY 000 4,456 _ FITTINGS 000 50,116 - RIGHTS 000 186 1,426 23 - _ _ : 152 = - _ 4 268 1,117 102 _ - t - 15,849 325 720 _ _ : 200 _ _ 6 _- : 29,743 2,851 5,278 50,145 1,612 : ii Freehold properties at valuation include an amount of iii Commitments for capital expenditure of subsidiaries amount 824,000 relating to land and factory premises acquired by to 2,745,000 1,11976014,1,040,00000 subsidiary the Belgian and financed by secured loans see iv Estimated capital of subsidiaries but authorized amounts 1976 1976 note 16 The legal title to the factory premises does not vest not committed to 5,090,000 3,575,000 5,090,000 3,575,000 in the company concerned until the final instalments on the i loans have been paid b 7. \ \ . : e . 11. Investments ASSOCIATED COMPANIES Listed in Great Britain - Listed outside Great Britain Unlisted Advances Add Group share of retained profits less losses see note 17 OTHER INVESTMENTS Listed in Great Britain Listed outside Great Britain Unlisted AT COST LESS AMOUNTS WRITTEN OFF 1977 - 1976 AT MARKET VALUE OR =. : DIRECTORS VALUATION 1977 8 1976 22,707 13,623 0. ' 163 12,973 24,183 254 22,870 33,861 26,596 17,770 24,437 38,275 56,731 1,055 44,366 6,858 62,712 *. 8 977 57,786 | 51,224 63,689 13,326 16,711 71,112 |. 67,935 85,099 21,175 80,949 18,721 152,272 19,703 106,274 18,583 = 99,670 28,546 _ 171,975 ~~ 17,128 124,857 128,216 189,103 146,607 16,995 163,602 30,159 - 193,761 TOTAL INVESTMENTS Listed in Great Britain Listed outside Great Britain Unlisted including advances 117,133 21,386 138,519 57,450 195,969 106,631 31,706 138,337 57,814 196,151 176,455 19,957 165,249 , 26,942 196,412 56,380 192,191 63,415 252,792 252,792 , 255,606 OF NOTES ( in the case of listed South African securities London stock exchange prices have been taken where the securities are held in the United Kingdom and Johannesburg stock exchange prices where the securities are held in South Africa ii Included in other unlisted investments are shares in Anglo American Corporation Rhodesia Limited The book value and directors valuation at March 1977 both amount to 2,989,000 1976-1976- 2,989,000 Any disposal of these shares would require consent under existing exchange control regulations and no income can be remitted to the group from Rhodesia ii Commitments and guarantees by the company and its sub- sidiaries in respect of subscriptions for shares and loan facilities amount to 8,141,000 8,81976686,8,660,00000 os iv A subsidiary company has entered into contracts for exploration expenditure to be incurred after 31 March 1977 v The greater part of the investments is a of permanent nature but in the event of their realization at the current market values there would be a corporation tax liability on the resultant profit based approximately on the surplus of market values over cost vi The market value eign currency investments includes 75 per investment currency premium where os applicable - 12. Stocks and work in progress ~ Long term contract work progress . . . 2 Deduct Progress payments received and receivable Raw materials and consumable stores . Work in progress Finished goods 13. Creditors Creditors include the balance amounting to 1,779,000 industrial disease 1976 - 2,339,000 of a provision established by Cape Industries Limited in 1973 for compensation payments for Since the provision was established the number of claims received has been substantially higher although than the level on which the provision was attributable it is possible that this is at least in part submission of claims at an earlier time than to the originally expected The experience to date however indicates that the final outcome the aggregate number of claims =! The ' may exceed that originally expected assessment of wer the likely sum required remains very difficult to determine and it is not possible to state that the balance of the provision will fact be adequate Having consulted : the... directors consider board of Cape Industries who have reviewed the position with their auditors the that there no conclusive evidence that at this stage it is necessary aside a further material amount and accordingly no we : additional provision has been made 14. Share capital Authorized At 31 March 1976 and 1977 Issued and fully paid At March 1976 Issued during year as detailed in the report of the directors 120,000,000 shares of 25p each ns 104,792,981 shares of 25p each fully paid . 1,800 104,794,781 Issued partly paid At 31 March 1976 and 1977 Total issued at 31 March 1977 326,500 shares of 25p each 1p paid up 30,000,000 26,198,245 450 26,198,695 3,265 26,201,960 i Under the share incentive scheme adopted in 1970 and the share option scheme designed to supersede it in 1973 the directors can at their discretion issue to senior employees up to a further 2,642,088 partly paid shares under the former scheme or options to subscribe for up to 2,873,500 shares ii The maximum number of shares which may be issued on conversion of the company's five per cent convertible loan stock 1984 is 563,944 a 15. Share premium account . * : Balances at 31 March 1976 Premium on shares issued by the company Gain on currency conversion Balanceast 31 March 1977 . : vote GROUP ' +. |. COMPANY Oo 30,622 : we 7 ee 2 18,629 30,631 indebtedness 16. Long term Details ofloalns oans repayable over a longer period than five years Debenture stocks secured issued by i Charter Consolidated Investments Limited 44per cent first debenture stock 1978/83 4 per cent second debenture stock 1978/83 ii Cape Industries Limited 7 per cent debenture stock 1986/89 % per cent debenture stock 1986/89 Unsecured loan stocks issued by i The company cent convertible loan stock 1984 -- . ii Cape Industries Limited1986/91 % per cent loan stock 1986/91: ii Swaziland Collieries Limited 9per cent registered convertible notes 1972/81 Bonds issued by Charter Consolidated Overseas N.V. i 6cent unsecured bonds of DM110,000,000DM110,000,000 1968/83 ii 7per cent guaranteed bonds of FF92,000,000 1987 Belgian long term loans Secured repayable by annual instalments over 10 years Bank loans unsecured : 26,764 5,884 22,998 10,479 349 43,257 6,157 49,414 NOTES ) The company'sfive per cent carries the following conversion Year of conversion convertible loan stock 1984 rights Number of shares per 100 stock 1977-9 24 1980-4 23 ii The DM110,000,000 % per cent unsecured bonds 1968/83 are listed on the Frankfurt stock exchange The FF92,000,000 7 per cent guaranteed bonds 1987 are listed on The Stock Exchange London The company has guaranteed both bond issues as regards repayment of principal including premium if any and pay- ment ofinterest loans iii The Belgian loans are repayable by annual instalments and exceeding interest is payable at rates currently not seven per cent per annum determined yearly by the Belgian authorities iv Bank loans are repayable in the following currencies 1977 1976 Belgian francs US dollars Sterling French francs Swedish kroner 000 3,076 1,181 1,000 348 279 000 2,772 _ 3,000 385 _ 5,884 6,157 17. Reserves eens eee 22 BEN es ae : BE . EE 1976 Reserves at March Retained profit for the year in subsidiary +. Dilution disposals of shareholdings in and . associated companies . : ~ Reserves at March 1977 Bo oan : NE GROUP i COMPANY-s SUBSIDIARY ASSOCIATED " COMPANIES | COMPANIES ROATE So 155,121 268 : Ye 1,724 s 8,047 130,363 16,711 1,011 922 1,665 bose SSL a TL : : ae 4 1,720 re 2 ; 153,665 7 .9,058 7 131,281 13,326 18. Deferred taxation The balance deferred of taxation comprised Excess of the bock value assets qualifying for taxation allowances over their written down value for taxation purposes Taxation on capital gains on property revaluation Taxation capital gains on assets sold and over rolled compensation of against the acquisitionof new assets - Taxation relier relating to for for industrial provision disease Stock appreciation relief relating to certain industrial subsidiaries Taxation relief on prospecting expenditure not yet claimed invest- Difference between book and taxation value of ments arising from timing differences . Advance corporation tax see note below NOTE Advance corporation 2,402,000 is shown balance sheet tax recoverable of 2,642,000 1976 as a deferred asset in the company's | . : : : 308 2 650 rs 292 ron 1,040 an Joe 3,907 . 837 1,561 1,561 == 849 mle : : 774 ay : 544 4,915 3,970 7,862 3,372 19. Contingent liabilities For amounts not called on investments In respect of guarantees of 28,158,000 less counter- guarantees 5,129,000 company - net 14,259,000 1976 10,658,000 In respect of underwriting participations and options granted Bills receivable Other items actions commenced in the USA which seek the recovery of very substantial damages These actions are being strenuously contested In the opinion of American legal advisers the amounts claimed are highly speculative and 000 168 23,029 226 593 600 24,895 22,109 485 516 _ 23,278 conjectural and have only a tenuous basis in law or in fact In the light of this advice the directors believe that no material liability is likely to aris asea result of the actions and no provision has been made in these accounts in respect of any such liability ' Beralt SOURCE OF FUNDS shareholders ProfitProfit before taxation Extraordinary items before interest of outside and adjusted for taxation of 278,000 for *: 2,142,000 for 1976 1977 and Adjustments foritems not involving movements of funds Depreciation SMTF - Provision for diminutionin value of portfolio investmentcsurency loans investments Changes conversion inin currency and fixed assets rates of and long term : Exploration and development expenditurewritten off Share of retained profits less losses of associated companies Funds generated Cape Disposal offixed assets Proceeds of rightsissue received by from minority shareholders . Industries Limited Decreasein long term indebtedness APPLICATION OF FUNDS Purchases of fixed assets Investments see note ) below Taxation paid Increase in working capital and other items see note ii below Dividends paid Decrease increase in liquid funds see note iii below 38,731 36,437 2 8,629 30,102 4,414 667 5,481 ~ 30,956 4,119 10,400 1,350 1,964 458 5,571 12,720 43,676 1,928 1,261 = 39,700 33,437 15,806 NOTES Investments Long term purchases -book -book value of realizations Portfolio realizations at book vvalue alue 1977 000 13,391 2,069 1976 000 23,310 7,359 11,322 15,951 1,467 15,753 9,855 198 iii Decrease in liquid funds Decrease in short term loans deposits and cash Decrease in associated companies and other deposits Increase in bank loans and overdrafts 1977 000 5,058 3,885 7,027 8,200 1976 000 6,651 1,817 7,338 15,806 ii Analysis of working capital Increase in stocks and work in progress Increase in debtors Increase in creditors Other items 791 11,567 Principal Investments ; PRINCIPAL INVESTMENTS OF 10 PER CENT OR MORE o . INCLUDING ASSOCIATED COMPANIES ~ Australia Bermuda Brazil Canada France Republic Ireland Malaysia - Portugal Rhodesia Singapore South Africa Australian Ariglo American Limited Mining finance ** International Pacific Corporation Limited Merchant banking : . : Tinnabruich Pty Limited Investment Minerals and Resources Corporation Limited Mining finance , . Anglo American Corporation do Brasil Limitada Gold mining and general prospecting Anglo American Corporation of Canada Limited Mining finance : Soci^'t^M'ini^red'Anglade Scheelite mining Company Tara Exploration and Development Incorporated inin Canada Lead and zinc mining Limited Limited New Tradewinds Sdn Bhd Tin mining see ote i below Beralt Tin and Wolfram Limited Incorporated in England Wolfram mining Anglo American Corporation Rhodesia Limited Industrial finance Haw Par Brothers International Limited General trading insurance shipping and investment Anglo American Corporation of South Africa Limited Mining finance Group interest in equity capital reduced to 6.5 per cent on 9 May 1977 as result of the merger with Rand Selection Corporation Limited Anglo American Investment Trust Limited Diamond investments Switzerland United Kingdom Blyvooruitzicht Gold Mining Company Limited Gold mining Euranglo Pty Limited : Investment Anmersales AG Marketing of metals Anmercosa Sales Limited Marketing of metals Charter Mineral Services Limited Technical services Cleveland Potash Limited , Development of potash mine Group interest in 10 per cent redeemable participating preference shares -- 50 per cent Covenant Industries Limited Marketing and manufacture of chemicals Group interest Accounting date ~ equity capital - cent for inclusion of associated company results '. 15 .37.4 . 37 20 11.6 : 24.8 . 25 December December| 2 .10.8 28.6 January 5 46.3 December December nes September September December December , 33.9 September United Kingdom ; ; Zaire Zambia Limited Selection Trust . Mining finance Soci^'t^M'ini^rede Fungurume Copper and cobalt project National Milling Company Limited Flour milling associated companies as defined in accounting policy 12 on page 19 OTHER PRINCIPAL INVESTMENTS interest - Accounting date in equity capital = Acounting for inclusion of fo per cent capital associated '... . company results - " Ae 28.1 Botswana South Africa United Kingdom Zambia Botswana RST Limited Nickel and copper mining . The Argus Printing and Publishing Company Limited Printing and publishing Limited De Beers Consolidated Mines Diamond mining Harmony Gold Mining Company Limited Gold mining Rustenburg Platinum Holdings Limited Platinum mining Union Corporation Limited Mining finance The Rio Tinto Corporation Limited Mining finance Zambian government - loans housing -Kariba -Kariba electric scheme NOTES The holding of 28.6 per cent of the equity in New Tradewinds Sdn exchange Bhd was received on 10 March 1977 in investments in the following associated companies for Associated Mines Malaya Sendirian Berhad Ayer Hitam Tin Dredging Limited Bidur Malaya Tin Sendirian Berhad " The Sungei Besi Mines Limited Tronoh Mines Limited Equity exchanged cent 12.5 4.3 26.1 The group share of retained profits less losses of associated companies has been accounted for up December 1976 these to 31 The accounts used to calculate the group share of retained companies profits less losses of associated whose audited accounts have been made up to dates which are more than six months before the group's year end are as follows Minerals and Resources Corporation Limited - year to year 30 June based on audited accounts and half December based on unaudited accounts to 31 Ayer Hitam Tin Dredging - Limited year to 30 June based on audited accounts and year to 31 December based on unaudited accounts The Sungei Besi Mines Limited - three months to 31 March based on audited accounts and nine months to 31 December based on unaudited accounts iii Companies are shown by principal country of operation where they are incorporated in a different country this is shown after the company name 7 affected assets Charter The following arethe major subsidiaries of the company includingthose whose activitiesmaterially the profit or wholly owned stock group during year Except where otherwise stated each of these companies is and all the shares or the 4 held are either oo unclassifiedclassifiedas ordinary : : * : Countroyf Industries groupt Cape groupt a we cumulative cent shares 100 cent preference Cape Industries Limited 663 cent per Cape Asbestos Fibres Limited 66.3 per cent Marketing of asbestos fibre - per incorporation Industrial Industrial mining '. . England England Cape Asbestos South Africa Pty Limited 66.3 per cent of * Administration group mining Cape Blue Mines Pty Limited 66.3 per cent MiningMining of blue asbestos 0): building Cape Boards and Panels Limited 66.3 cent InsulationInsulation board for ship and South African construction . companies . : : South Africa ft South Africa : England . Cape Building Services Limited 66.3 per cent Fire protection and insulation contracting i : on England | and contracting Cape Contracts Limited 66.3 per cent Fire protection thermal acoustic insulation j _ v England Cape Distribution Limited 66.3 per cent Insulation Distribution of automtive components England ' Cape Insulation Limited 66.3 cent Insulation products Scotland Cape Investments S.A. 66.3 per cent Holding company for industrial subsidiaries inSouth Africa So we South Africa cement products Manufcture cent Cape Universal Claddings Limited 66.3 cent Asbestos cumulative materials Don International Limited 66.3 per cent cent materials Don International S.A. 66.3 cent Manufacture of friction and other building materials preferenceshares . cent 66.3 per Manufacture friction ats : . England England Belgium Egnep Pty Limited 66.3 cent Mining amosite asbestos South Africa ~ North American Asbestos Corporation 66.3 per cent Sale of crude and processed Manufcture fricton asbestos Trist Draper Limited 66.3 per cent Manufacture of friction materials fibre . United of States America . os England = . Other industrial : Flastic Rail Spike Company Limited Railway track fastenings and mine roof bolting systems England . Heatrae Holdings Limited HeatingHeating equipment domestic electrical appliances and commercial refrigerators England Finance and investment Barnato HoldingU.sK. Limited : The British South Africa Company The British South Africa Company Investments Limited Central Mining Finance Limited The Central Minin&g Investment Corporation Limited Centramic South Africa Limited Charmay Limited Chartel Limited . Charter Consolidated Finance Lirnited Charter Consolidated Investments Limited Charter Consolidated Malaysia Sendirian Berhad Charter Consolidated U.K. Offshore Oil Exploration Limited Charter Consolidated Overseas N.V. Charter Furopean Holdings S.A. The Consolidated Mines Selection Johannesburg Limited Equinox Investments Limited . Interlink Investments Limited Leonora Investments Limited Nimbus Investments S.A. Raven Investments Limited Shafford Holdings Limited Swaziland Collieries Limited 57.6 per cent Town Properties Limited : vf , Pe . : : : . . : England .2? England . England England England > South Africa : Bermuda Liberia England England - Malaysia England Cura^aoNetherlands Antilles | . Luxembourg South Africa 5 South Africa Canada Cibraltar Luxembourg Gibraltar England Swaziland , South Africa Services Anglo Charter International Services Limited cent Employment services Charter Consolidated Services Limited Administrative and technical services ve England England * Shares in these companies are held directly by Charter the shares in the remaining companies are held through subsidiaries The accounts of the Cape Industries group and Charter Consolidated Overseas N.V. are not audited by the Charter group auditors These accounts are available on application Geographical analysiosf total assets and revenue aoe : Assets - 1977 1976 United Kingdom SS 92,271 Rest of Europe "2: 23,468 North and South America See South Africa 60,754 118,228 Zambia Africa 5,086 , 9,234 86,477 20,845 45,853 119,965- 12,226 20,956 South - Asia Australia : 14,331 11,711 - 21,975 20,349 345,347 ' 338,382 : : Per cent of assets . 1977 .1976 oe . of Per cent > revenue 1977 1976 26.7 25.6 25.0 : 6.8 6.2 17.6 13 34.2 35.4 1.5 3.6 7.5 13.1 41.2 1.4 9.5 10.9 .37.6 0.9 2.7 338 2.3 1.1 4.1 338 6.B 3.8 > 6.4 338 5 2.7 .4.9 Pee 100.0 100,0 Analysis by category of investments and investment income Investments 1977 1976 000 000 F: inance ms Diamonds Gold Tin and wolfram 137,102 23,689 15,567 6,597 139,541 19,396 14,933 7,452 Copper potash and other minerals Industrial commercial etc. Long term loans . 34,410 32,178 3,249 36,569 33,530 4,185 252,792 255,606 Per cent of investments 1977 1976 54.2 9.4 6.2 2.6 13.6 12.7 1.3 54.6 7.6 5.9 2.9 14.3 13.1 1.6 cent of investment income 1977 1976 49.9 16.3 6.6 6.1 47.4 11.6 12.5 3.2 - 17.7 1.3 1.0 23.0 .1.3 100.0 NOTES The investments included in the analysis geographical and by category are the stock exchange value of listed investments and the directors valuation of unlisted investments at 31 March The geographical analysis takes into consideration interests and where possible major indirect interests areas concerned and is therefore only approximate direct in the iii The analysis of investments does not include the industrial subsidiaries Interests of the Company The following are brief descriptions of some of the companies in which Charter has animportant interest Anglo American Corporation of South Africa Limited Anglo American Corporation of South Africa is the head of an international group of mining industrial and invest- ment companies to which it provides technical and other services Its size overali is estimated at approximately R4,900 million An analysis by primary source of the corporation's investments at 31 December 1976 is shown below 8 Gold Diamonds a . . , Value cent .33 15 Income > percent cae 33 20 Production by the group's gold mines fell slightly from 285,147 kilograrns to 278,355 kilograms due to a decline in the grade recovered An increase of 14 per cent in unit gold working costs and a lower average price received for combined to reduce working profit by 34 per cent to R383 profits million of which taxation and state's share of absorbed R158 million Group production of uranium in creased from 1,073 to 1,153 tons and profit attributable to uranium more than doubled to R13.4 million Copper Coal Platinum Other mining Industrial Finance Property and gas : : 3 . : 7 3 6 .19 10 2 . 2 100 Operating profit group collieries rose from R21.4 million to R49.1 million largely because of higher export sales and improved domestic selling prices In its first full year of operation Anglo American Coal Corporation Limited increased its earnings from R14.9 million to R40.5 million cb The group's industrial interests had a successful year Highveld Steel and Vanadium Corporation Limited increased its pre profit from R20.2 million to R28 million spite of the recessionary conditions in steel markets and the Boart and Scaw Metals groups also increased their earnings During the year Sigma Motor Corporation Proprietary Limited with assets of approximately R100 million was formed as the result of a merger between _ Chrysler South Africa Proprietary Limited and illings Proprietary Limited The group holds slightly more than 75 per cent of Sigma with Chrysler holding the balance The corporation's interest in diamonds lies mainly in its holding in De Beers Consolidated Mines Limited through Anglo American Investment Trust Limited and its investment in the Zambian copper mining industry is held through the Bermudian company Minerals and Resources Corporation Limited FEATURES OF THE ACCOUNTS Year ended 31 December 1976 : Issued share capital in 131,725,300 ordinary shares of 10 cents each and R4,758,750 six per cent cumulative preferred stock distributable reserve and share premium Distributable reserves Loan capital Group profit before taxation Taxation Equity earnings .R000 17,931 81,036 367,104 60,038 93,865 4,647 85,992 Earnings per ordinary share Dividends ordinary -amount cents 43,465 -per Market value of listed 33 cents investments - Directors valuation of unlisted . investments Net asset value 934,221 > 168,059 1,037,300 17,926 81,285 344,970 60,128 92,057 4,350 84,428 64.1 cents 43,449 33 cents 997,842 235,246 1,142,100 On 9 May 1977 Rand Selection Corporation Limited be- came a wholly owned 2 sidiary of the corporation ordinary following the cancellation of the 34,999,828 shares in Rand S^'lectionnot already held by the corpora- tion and its subsidiaries and the issue in consideration of such cancellation of 69,999,656 ordinary shares in the corporation In addition Rand Selection on behalf of the subscribers to the right offer of 25 new Rand Selection ordinary shares for every 100 held at a price of R8 a share accepted an offer made to it by the corporation for the issue to such subscribers of two ordinary shares in the corporation for every Rand Selection ordinary share subscribed includes investments at market value or directors'valuation directors'valuation Anglo American Corporation do Brasil Limitada Anglo American Corporation do Brasil is a member of the Anglo American Corporation group established to invest the mining industry and to search for mineral deposits It is conducting a widespread exploration programme throughout Brazil and is continuing its investigation in depth of the gold prospect at Jacobina in Bahia It has a 49 per cent interest in Minera^^Moorro Velho S.A. which owns a group producing gold mines in the state of ~~ Minas Gerais Anglo American Corporation of Canada Limited . Year ended 31December . 1976 000 1975 000 | The company AMCAN a member of the Anglo Ameri- can Corporation group is a mining and industrial invest- company -ment with direct and indirect interests in copper zinc cadmium gold silver potash chemicals oil and gas _ and prospecting operations Net asset valuet Net asset value per sharet 93,388 9.41 87,056 8.76 : extraordinary after items - tincludes listed investments at market value and unlisted investments at lower of cost or directors valuation major asset AMCAN's its holding in Hudson Bay Mining and Smelting Co. Limited whose earnings before extra- Cordinary items declined from 14.8 million 2.8 million in 1976 chiefly because of weak markets for metals and fertilizers and increased operating costs After deduct- ing extraordinary items largely attributable to its 55 per cent holding in Francana Oil & Gas Ltd Hudson Bay incurred a loss of 8.3 million In April 1977 Hudson Bay sold its potash assets in Saskatchewan for 144: million in : cash AMCAN's substantial loss for the year was due mainly to provision for a possible decline in the value of its investment in Lytton Minerals Limited and to the extraordinary loss incurred by Francana Oil & Gas in writing down the investment in Trend International Limited _ At 31 December 1976 AMCAN's principal investments were Percentage direct Francana Oil & Gas Ltd Hudson Bay Mining and Smelting Co. Limited 28.3 38.1 Lytton Minerals Limited Tombill Mines Limited Whitehorse Copper Mines Limited joint venture SSE In January 1977 AMCAN acquired Hudson Bay's sixth interest in the Whitehorse joint venture and thereby in- creased its interest to 33.3 per cent FEATURES OF THE ACCOUNTS Year ended 31 December Issued capital in 6,319,614 A < and 3,609,931 shares of no par value Retained earnings Income less expenses Provision for taxation 1976 000 101,085 32,701 3,659 1,643 Provision for losses on investments less gains on realization 4,709 Share of losses of effectively controlled companies Net income loss Net income loss per share Dividends - amount , per share Market value of investments 12,490 14,166 1.43 3,972 40 cents 83,648 Book or equity cost of unlisted investments 2,348 000 101,085 49,703 6,741 678 1,376 2,482 5,702 57 cents 3,972 40 cents 79,821 7,148 Anglo American Investment Trust Limited The company ANAMINT is the principal holding company for the diamond interests of the Anglo American Corporation group having 26.37 per cent of De Beers Consolidated Mines Limited and shareholdings in certain | pt diamond trading companies At Kimberley De Beers Consolidated Mines owns the De Beers and Wesselton mines and leases the Dutoitspan and Bultfontein mines from subsidiary companies It also operates the Finsch mine north of Kimberley the Koffiefontein mine in the Orange Free State and is mining the farms Annex Kleinzee and Dreyers Pan in Namaqua- land De Beers Botswana Mining Company Proprietary : Limited owned jointly by De Beers and the Botswana government operates the Orapa mine and the nearby Letlhakane mine commissioned in November 1976. The new diamond mine at Letseng in which De Beers and the Lesotho government have interests of 75 per cent and 25 per cent respectively was brought to production in : the first quarter of 1977 The De Beers company's wholly owned mining subsidiaries are The Consolidated Diamond of Mine Sous th West Africa Proprietary Limited Premier Transvaal Diamond Mining Company Proprietary Limited and Sea Diamond Corporation Proprietary Limited Other subsidiaries of De Beers include The Diamond Corporation Proprietary Limited a diamond purchasing company Propietaryand The Diamond Purchasing and Trading Company Proprietary Limited marketing gem and near diamonds in which ANAMINT has a direct shareholding In spite of the slow recovery from recession by the major industrial economies total sales by the Central Selling Organisation in the year to 31 December 1976 were 46 per cent higher at 1,555 million R1,352 million principally because of the vigorous demand for small diamonds particularly in the United States The consolidated net profit of De Beers rose from R220.1 million in 1975 to R308.5 million in 1976 and dividends on the deferred shares were increased by seven cents to 35 cents a share De Beers also has important mining financial and industrial investments through its 33.12 per cent holding in Anglo American Corporation of South Africa Limited and through its subsidiary De Beers Industrial Corporation Limited FEATURES OF THE ACCOUNTS central Portugal producing concentrates of wolfram tin : : and copper Year ended March 1977 , Issued share capital in 10,000,000 ordinary shares of 50 cents each ~ and 2,500,000 six per cent cumulative preference shares of each Distributable reserves Profit before taxation Taxation Profit after taxation and preference dividends Earnings per ordinary share Dividends ordinary -amount share Market value of listed investments Directors valuation of unlisted investments Net asset value Net asset value per ordinary sharet ROOD us 10,000 48,894 44,243 120 43,823 cents 41,000 410 cants 398,345 47,943 446,800 R44.68 10,000 46,071 50,162 208 49,654 497 cents 30,500 305 cents 308,505 50,425 356,600 R35.66 Production of wolfram concentrates declined from 1,742 ~ tonnes in 1975 to 1,597 tonnes in 1976. Sales including some during disposals of stocks fell from 1,882 to 1,731 ones but the substantial rise in the price of wolfram the year led to an increase in turnover from 6.3 million to 8.6 million Further funds accruing from the Portuguese operating company's earnings in 1974 enabled the company to pay an interim dividend of 1p per share in July 1976. A second interim dividend of 3p per share was paid in December 1976 following receipt of the company's full share of the operating company's 1975 earnings FEATURES OF THE ACCOUNTS Year ended 31 December Issued share capital in ordinary shares of 25p each Capital reserve . General reserve and retained earnings Consolidated profit before taxation Taxation a. 1976 000 * reflects income from three dividends from De Beers tincludes investments at market value or directors valuation Consolidated net profit attributableto Beralt before extraordinary items 4 Earnings per share Australian Anglo American Limited Australian Anglo American AAA is a holding company owned by the Anglo American Corporation group Minerals and Resources Corporation Limited and Charter Consolidated whose business is to seek investment opportunities in the Australian mining industry and to explore for mineral deposits in Australia and neighbouring regions Through its subsidiary Mulga Mines Proprietary Limited AAA has a beneficial interest of approximately 77 per cent in the Blue Spec gold and antimony mine in Western Australia which commenced production in the first half of 1976 FEATURES OF THE ACCOUNTS Year ended 30 June Issued capital in ordinary shares of 50 cents each Capital reserve and share premium Group profit loss after taxation 1976 000 18,000 5,314 88 1975 000 18,000 2,970 3,994 Extraordinary items Consolidated net profit after extraordinary items and appropriation to statutory reserve Dividends - amount per share Blyvooruitzicht Gold Mining Company Limited The company a member of the Barlow Rand group operates a gold mine in the Transvaal which recovers uranium oxide silver and osmiridium as products There was some increase in the tonnage milled in the year to 30 June 1976 but a fall in the yield from 14.40 to 12.79 grams per tonne led to a decline in gold produced Working expenditure rose by about 20 per cent due mainly to higher wages and costs of stores and materials As a result of these factors together with the marginally lower average price received for gold in terms of rand working profit from gold dropped substantially There was a small loss on uranium operations the entire output Beralt Tin and Wolfram Limited The company owns 80.55 per cent of Beralt Tin & Wolfram Portugal S.A.R.L. which operates a mine and plant in being used to repay uranium borrowed in previous years from another producer Total working profit fell by R17.5 million to R50.2 million FEATURES OF THE ACCOUNTS Year ended 30 June 7976 R000 Issued share capital in shares of 25 cents each Hf Appropriations for expenditure on mining assets Distributable reserves Profit before taxation and state's share of profits Taxation and state's share of profits Profit after taxation and state's share of profits Dividends - amount - per share 6,000 83,031 9,822 52,851 24.670 28,181 18,000 75 cents 1975 R000 6,000 73,682 9,533 70,462 39,608 30,854 24,000 100 cents Cape Industries Limited Based in the United Kingdom the Cape Industries group manufactures building and insulation products and fric- It tion materials undertakes insulation contracting and dis- tributes components for the automotive industry also mines asbestos fibre in South Africa and sells it world wide The group had another successful year with all divisions contributing to a rise in turnover from 107.0 million in 1975 to 133.1 million in 1976 and an increase in profit before tax of 4.0 million of which approximately 1.5 million arose from currency conversion gains The tax charge as percentage of profit was much higher than in recent years due mainly to an increased rate of South African tax higher dividend remittances from overseas and prior year adjustments Net profit after extraordinary items rose by 26 per cent Botswana RST Limited The company BRST has an interest of 85 per cent in Bamangwato Concessions Limited BCL a company conducting a copper mining operation at SelebiPikwe in Botswana The remaining 15 per cent interest in BCL is held by the Botswana government The first phase of the Pikwe project which includes mining at Pikwe and smelting and concentrating facilities for the whole project has been completed and second phase comprising underground mine development at Selebi is expected to be completed during 1979. Produc > tion for the year rose from 16,513 to 32,506 tonnes of copper matte BCL significantly improved its performance during the million year by achieving an operating profit of PO.3 compared with a loss in 1975 of P15.2 million However after charging interest payable and losses on change the net loss for the year was P25.7 million 1975 P38.5 on million Progress continues proposals for the restructur- ing of BCL's financial and marketing arrangements to reduce the high burden of interest but even if these proposals are implemented it is likely to be some time before BCL will be able to generate a positive cash flow after making third party loan repaymerits The building and insulation division increased its insulation contracting operations but with the recession in the United Kingdom construction industry the market for most building materials remained depressed Cape Contracts Limited had an excellent year with major insulation work in hand for the power petrochemical and marine industries In the automotive and engineering division there was a substantial increase in the profit from manufacturing Limited operations attributable largely to a sharp rise in export sales However the results of Cape Distribution were disappointing with the replacement market for automotive parts quiet and overheads tending to increase disproportionately to sales The mining division performed well though the demand for amosite fibre weakened towards the end of the year ues, FEATURES OF Year ended 31 December THE ACCOUNTS 1976 000 issued share capital 24,003,260 ordinary shares of 25p each and 250,000 3per cent cumulative preference shares of each Reserves and share premium Loan capital 6 per cent and 734 per cent debenture stocks and % per cent unsecured loan stock 6,059 1975 000 6,059 FEATURES OF THE ACCOUNTS Year ended 31 December 1976 P000 Issued share capital in shares of P2 each Share premium Long term loans Loss attributable to BRST 35,959 838 227,295 29,394 The currency of Botswana is the pula 1975 PO0Q 35,959 838 203,196 33,241 Consolidated profit before taxation Taxation Profit after taxation and extraordinary items Earnings per ordinary share Dividends ordinary- amount : share 14,204 7,015 7,091 29.9p 1,764 7.3474p 10,195 4,080 5,610 29.6p 1,488 6.6795p calculated on profit before extraordinary items 1975 ligure calculated on weighted average of 20,645,858 ordinary shares in issue during the year Covenant Industries Limited The company which is jointly owned by Charter Consoli* dated and associates and by Imperial Chemical Industries Limited imports and markets chemicals and related products andmanufactures and formulates agricultural chemicals paints and commercial explosives It operates mainly in Kenya Nigeria Tanzania and Zambia The consolidated profit . after taxation Septmbr increased to 2.2 million in the year ended 30 September 1976 from 1.6 million in the previous year This increase mainly arose in the company's 60 per cent owned Nigerian continued subsidiary where crading opportunities to : expand due to Nigeria's oil revenue There are exchange control restrictions in all the coun- tries where Covenant's subsidiaries trade on the amount of profit which can be remitted to the United Kingdom FEATURES OF THE ACCOUNTS Year ended 30 September Issued share capital in ordinary shares of each 1976 * - 000 .92 Shareholders loan 306 Reserves . . Consolidated profit before taxation Taxation Consolidated profit after taxation and minorities Dividends 3 1975 000 92 306 4,946 _ 3,793 1,714 1,631 165 Harmony Gold Mining Company Limited The company a member of the Barlow Rand group mines for gold in the Orange Free State Silver and osmiridium are recovered as products and uranium oxide pyrite and sulphuric acid are also produced Additional ore was milled in the year to 30 June 1976 but this was drawn as planned from the lower grade sections and resulted in a drop in yield from 6.01 to 5.26 grams per tonne and consequent decline in working revenue The average price received for gold dropped from 164.5 to 126.5 per ounce but as a result of the devaluation of the rand in September 1975 the average local price received was only marginally lower However there was a steep increase in working costs from R65.9 million to R83.0 million and working profit from gold fell sharply from R46.0 million to R19.9 million Higher sales and an improved price led to a substantial rise in the profit from uranium from R2.4 million to R4.8 million To conserve the company's cash resources and facilitate completion of the capital expenditure programme to expand the productive capacity of the mine no dividend was declared in September 1976. FEATURES OF THE ACCOUNTS ~ ended a 1976 ROOD ' Issued share capital in shares of 2. 50 cents each . 13,442 Appropriations for expenditure on mining assets Distributable reserves 142,709 142,709 14,399 Consolidated profit before taxation and state's share of profits 36,511 Taxation and state's share of profits 3,462 - Consolidated profit after taxation and state's share of profits ~ 33,049 Dividends amount per share 17,475 65 cents 1975 R000 * 13,442 | 119,681 22,276 50,033 13,177 36,856 20,701 77 cents Haw Par Brothers International Limited Limited The company Singapore which is incorporated in Singapore operates in Singapore Malaysia and Hong Kong Its principal activities are direct and indirect investment trading manufacturing insurance property rubber palm SS oil marine transportation merchant banking and phar ~ . maceutical products The operating losses experienced by the company 1976 reflected adverse trading conditions during the year particularly for the marine division The extraordinary items charged to the profit and loss account included foreign exchange losses of 5.5 million a deficit on revaluation of properties of 13.4 million and a deficit on revaluation of ships of 7.2 million FEATURES OF THE ACCOUNTS Year ended 31 December 1976 Issued share capital in ordinary shares of $ each 000 106,973 Consolidated loss before taxation . Taxation 9,770 2,252 Consolidated loss after taxation Consolidated loss after taxation and extraordinary items Net asset value Net asset value per share Dividends 12,022 48,197 110,642 1.03 nil includes investments at book value 1975 000 106,970 18,695 2,848 21,543 34,368 145,130 1.36 nil Minerals and Resources Corporation Limited Minerals and Resources Corporation MINORCO a member of the Anglo American Corporation group is a Bermudian _ based mining and industrial investment company whose purpose is to invest in natural resources and industrial projects throughout the world MINORCO has an of interest about 30 per cent in Engelhard Minerals & Chemicals Corporation EMCa United States company marketing ores minerals and metal refining processing and fabricating precious metals mining and processing metallic minerals In spite of the downturnin mineral and metal prices EMC's net earnings rose to 114.7 millionin 1975 andin | ; 1976 reached a record level of 124.9 million Through Trend International Limited MINORCO has an interest of just over 43 per cent in Trend Exploration Limited an oil and exploration company operating principallyin Indonesia and North America Trend has a 27 per cent interestin and acts as operator of a joint venture consortium which has a production sharing contract with Pertamina the Indonesian state oil agency In August 1976 agreement Trend was obliged to sign an with Pertamina amending the terms of that contract and these amend- ments are likely to cause a material reductionin Trend's cash flow and earnings from 1977. As a result of the lower evaluation of recoverable oil and the changes in the pro- duction sharing contract the investment in Trend is to be written down by 26.0 million MINORCO holds just under 50 per cent of Zambia Copper Investments Limited ZCI Neither of ZCI's two principal investments Nchanga Consolidated Copper Mines Limited 49 per cent held and Roan Consolidated Mines Limited 12.25 per cent held has declared a dividend since the September quarter of 1974 and ZCI continues to be affected by Zambia's foreign exchange difficulties which prevent the externalization of dividends declared by those companies for their financial years 1974-5 ZCI showed a Inss after taxation of 0.3 million for the year to 30 June 1976 compared with a profit of 15.8 million for the previous year MINORCO has a holding of 15 per cent in Inspiration Consolidated Copper Mines ICC whose principal activity is the production and sale of copper from its operations in the American state of Arizona As a result of the low demand for copper ICC reduced its output to two thirds of capacity and incurred a loss during 1975 of 3.9 million With some improvement in the copper price ICC showed a small profit for the year to 31 December 1976 FEATURES OF THE ACCOUNTS Year ended 30 June i 1976 000 Issued share capital in 31,668,899 ordinary 41,910,618 A ordinary and 8,572 deferred shares of 1.40 each Capital reserve and share premium Loan stock : 103,023 200,153 5,017 Prospecting reserve Revenue reserves 7 3,210 47,484 103,023 199,738 5,017 4,677 47,555 ended Year 30 June : : . ' 1976 -* 000 Consolidated profit before taxation 7,137 taxation Foreign taxation Consolidated profit after 193 : 6,944 investments : Market value of listedinvestments 363,203 | Book cost of unlistedinvestments 81,876 81,876 Dividends ordinary -amount 633 share 2 cents Dividends A ordinary cara - amount 7,717 Net asset valuet share 18.41 cents 487,500 1975 000 10,810 | = 376 220 10,434 279,638 -' 81,796 4,434 14 cents os : ': 5,892 14.06 cents 409,000 redesignated as ordinary shares on 16 October 1976 fincludes listed investments at market value and unlisted investments at book value Corporation Limted The Rio Tinto Limited The Rio Tinto Corporation RTZ its subsidiary companies is a British international group of mining and industrial companies with interests in almost every major metal and fuel including aluminium and its pro- ducts borax coal copper gold industrial and agricultural silver chemicals iron ore lead oil uranium and zinc specialty steels tin Net profit attributable to RTZ reached a record level in 1976 the chief reasons for the increase being the higher level of metal prices and the increase in sales by the group's operating companies from 1,184.0 million in 1975 to 1,672.5 million Exemption from the dividend restriction legislation enabled the company to increase its ordinary dividend by nearly 50 per cent Conzinc Riotinto of Australia Limited CRA 72.6 per cent owned by RTZ is the holding company for most of the RTZ group's interests in Australia New Zealand and Papua New Guinea as well as having considerable interests in Europe The earnings of Bougainville Copper Limited 53.6 per cent owned by CRA in 1976 were lower than in 1975 due mainly to the lower average price of gold and the rise in production costs Hamersley Iron Pty Limited 54 per cent owned by CRA considerably improved its trading results principally because of an increase in the volume of ore shipped enhanced by higher selling prices in the last quarter of the year Australian Mining & Smelting Limited which became a wholly owned subsidiary of CRA during the year improved its earnings in 1976 owing to increased sales of lead and zinc and the higher average Australian dollar price realized for lead The profit of Comalco Limited 45 per cent owned by CRA with interests in bauxite alumina and aluminium was appreciably higher in 1976 an improvement in market conditions being reflected in a rise in sales which compensated for the effect of higher costs RTZ has a 51.3 per cent interest in Rio Algom Limited a Canadian company with interests in copper and uraniurn mining and in stainless and specialty steels Lornex Mining Corporation Ltd 66.5 per cent owned by Rio Algom contained its unit operating costs through improved operating efficiencies and higher production and an increase in the average price realized for copper resulted in tax earnings considerably higher than in 1975. Earnings from uranium oxide production at Elliot Lake were reduced because lower ore grades and substantially higher operating costs could not be fully offset by adjustments in prices RTZ holds 66.2 per cent of Brinco Limited whose principal interest is in mineral exploration in North N America Through its wholly owned subsidian Rio Tinto South Africa Limited RTZ has a 38.9 per cent holding in the copper producer Palabora Mining Company Limited and a 45.5 per cent holding in R^ssingUranium Limited where plant commissioning problems have delayed the achieve~ ment of full design output possibly until 1978 The wholly owned subsidiary R.T.Z. Borax Limited with interests in borax potash and industrial and agricultural chemical significantly increased its turnover and earnings : . in 1976 Also wholly owned by RTZ R.T.Z. Industries Limited is the holding company for many of RTZ's light industrial activities particularly in the United Kingdom North America and Australia Its chief interests are in products made of aluminium steel glass and wood and in tin smelting and light engineering The RTZ Industries group had a successful year in spite of difficult and depressed conditions in nearly all the countries in which it operated and its results showed a substantial improvement Through membership of the Hamilton Brothers consortium R.T.Z. Oil and Gas Limited a wholly owned _. subsidiary of RTZ has a 25 per cent interest in the Argyll oil field in the United Kingdom sector of the North Sea where production exceeded eight million barrels in 1976 FEATURES OF THE GROUP ACCOUNTS Year ended 31 December Issued share capital of RTZ in 239,604,568 ordinary shares of 25p each 10,724,849 accumulating ordinary shares of 25p each and 7,732,967 3.325 per cent A and 3,143,750 3.5 per cent B cumulative preference shares of each Capital reserves and share premium Revenue reserves Loan capital Profit before taxation Taxation 1976 000 73,400 202,300 386,600 357,800 278,800 131,300 Year ended 31 December : Net profit attributable to RTZ shareholders before - - extraordinary items | ~ Earnings per ordinary share of ; : i RTZ 5 Extraordinary items Dividends ordinary -amount : per share 000 81,300 32.34p ** 10,400 19,200 ~ 8p 1975 | 000 . 38,600 15.57p 22,300 12,900 5.42p Rustenburg Platinum Holdings Limited The company's revenue consists almost entirely of dividend income from Rustenburg Platinum Mines Limited RPM which operates three platinum mines in the Transvaal On 31 August 1976 the company RPH changed its name from Union Platinum Mining Company Limited and RPM and Potgietersrust Platinums Limited became its : : wholly owned subsidiaries Although industrial demand for platinum was weak during most of the financial year to August 1976 sales by RPM were slightly higher than in the previous financial year due principally to a substantial increase in sales made to the automobile industry for use in emission control devices The modest rise in sales revenue was more than - offset by higher costs and there was a sharp decline in the profit after tax Production is gradually being stepped up from 0.9 million to 1.1 million ounces per annum The rate of expansion is being determined by developments in the market FEATURES OF THE ACCOUNTS Year ende3d1 August 1976 R000 1975 RO00 Issued share capital in shares of 10 cents each 12,300 distributable reserves 245,100 Distributable reserves Consolidated profit taxation 2,900 44,100 Taxation 7,200 Consolidated profit taxation Dividends 36,900 12,300 , 12,300 230,900 100 52,900 5,700 47,200 6,100 10 cents per share declared by RPH plus interim dividends declared by other former shareholding companies of RPM final dividends declared by all shareholding companies of Selection Trust Limited The company and its subsidiaries form a British mining finance group with net assets valued at 31 March 1976 at 180 million Its main business is investment and participation in mining enterprises and the conduct of its own mining and minerals exploration ventures giving rise to interests in a wide range of metals and minerals princi- pally in Australia North America and Africa and to interests related to North Sea oil and gas In the year to 31 March 1976 the company concentrated largely on the further development of existing activities and the reorganization of its additional interests following the merger with Consolidated African Selection Trust Limited at the end of the previous year Western Australia arrangements have been completed to enable the Agnewnickel project to proceed to production late in 1978 an initial rate of 10,000 tonnes per annum In the North Noordwinning group's 13 gas field which the company has a 5.55 per cent interest was brought to production in Febru19a76ry is producing its scheduled 120 million cubic feet per day At the Mt Newman iron ore project in Western Australia costs were increased by the high rate of Australian by inflation but improved improved efficiencies ef iciencies efficiencies and higher higher pric pric by helped to maintain margins The proceeds derived the Selection Trust group from its five cent direct interest amounted to 2.67 million In Canada the South Bay copper mine in western Ontario was affected by lower tonnage throughput and reduced copper prices and suffered a fall in profit from 4.6 million to 2.9 million Exploration work continued on the Detour copper discovery in Quebec The company has a significant interest in AMAX Inc. a diversified natural resources company operating internationally Sales by AMAX for the year to 31 December 1976 rose to 1,170.5 million compared with 962.1 million in the previous year due chiefly to higher sales of molybdenum base metals and coal Net earnings increased from 134.4 million in 1975 to 150.1 million Selection Trust's other principal equity investment interests are in Southvaal Holdings Limited Tsumeb Corporation Limited Western Mining Corporation Limited and Unisel Gold Mines Limited a company in the Union Corporation group engaged in the development of a gold mine in the Orange Free State In June 1976 the company acquired a 90 per cent interest in Alexander Shand Holdings Limited whose principal business is contract coal mining and civil and mechanical engineering and building a The total revenue of the group for the year to 31 March 1976 rose from 18.3 million to 21.0 million the fall in the profit from operations being more than offset by the increase in realization profits and by the higher dividend income arising mainly from the inclusion for the first time of dividends from the diamond mining interests in Ghana and Sierra Leone In the year to 30September 1976 there was a substantial increase in operating profit compared with the year to September 1975 attributable primarily to inclusion of the figures from the Shand group and revenue from the company's participation in the 13 uy gas operation Profit after taxation rose from 1.9 million to 4.0 million "= ; BO FEATURES OF ACCOUNTS Year ended 31 March rn 1! 1976 yw 000 Issued share capital in 23,172,678 ordinary shares of 25p each fully paid and 24,444 ordinary shares of 25p each 5.625p paid . 5,794 Capital reserve and share premium 35,7931 General reserve and unappropriated profits 14,855 Consolidated profit before taxation 12,214 Taxation . Consolidated net profit before extraordinary item .- 5,991 6,565 _ Earnings per share Po 28.3p Dividends - amount 3,522 -per share Net asset value Net asset value per share 15.2p 180,721 7.80 |. 5,794 36,285 10,757 10,565 4,490 5,080 24.9p 3,105 14p 176,229 * 7.60 includes investments at market value or directors'valuation directors'valuation Tara Exploration and Development Company Limited The company which is incorporated in Canada owns 75 per cent of Tara Mines Limited which is completing development of an underground zinc mine at Navan in the Republic of Ireland at cost within the 150 million arranged Production commenced in June 1977 and at its planned capacity the mine is expected to provide some 2.5 million tons of ore annually to the concentrator giving rise to an output of 500,000 short tons of zinc and lead concentrates Union Corporation Limited > waa Union Corporation is a mining finance company whe main interests are in the South African gold mining industry and in mining and refining of platinum group metals nickel and copper Other interests of the group are in paper together with packaging and printing shipping and construction It administers a South African investment company with interests in mining finance and property and explores for mineral deposits including oil and natural gas General Mining and Finance Corporation Limited controls 50.1 per cent of the share capital At the gold mines in the group working costs rose by 16 per cent in 1976 and the average price received for gold fell by seven per cent Dividends were sharply reduced and the corporation's income from gold fell by R6 million Dividends from base metal interests were also lower but there was a recovery in the income derived from platinum Impala Platinum Limited made a satisfactory profit in ' of the depressed market for platinum and increased spite to 75 cents per share The anti- its dividend frocmo3s0t cofenbtrsinging Unisel Gold Mines Limited cipated capitalin 1978 rose steeply and is now estimated at to production certain items currently estimated R61 million excluding be financed from to amount to R9 million which are to : working profit after the start of production were simplify During the measures were implemented to the structure of the group Shares the corporation for those in Geduld Investments issued iwnhiecxhchbaencgaeme a wholly owned subsidiary and a sub- Limited also became . companies number of associated includes the sidiaries The corporation's attributable profit * amount of R6.6 million representing Union Corpor}ation's share of profit retained by these companies iy FEATURES OF THE ACCOUNTS Year ended 31 December 1976 R000 1975 R000 : Issued share capital in ordinary shares of 6.25 cents each distributable reserves and share premium s 3,805 93.119 3,631 79,463 : Distributable and exploration 114,952 78,499 reserves Consolidated profit before taxation 77,223 _ 20,420 36,481 36,481 1,617 _ Taxation Consolidated profit after . taxation attributable to ordinary shareholders Earnings per share Dividends amount per share Market value of listed investments 39,195 64 cents 21,648 36 cents 212,654 212,654 34,864 60 cents 24,402 cents 310,898 Directors valuation of unlisted investments Ve Net asset value Net asset value per share 96,039 413,307 R6.79 90,042 418,473 R7.20 directors includes investments at market value or valuation following The are the interests of the directors of the company company notified 2who held office on 31 March 1977 as to the : 1967 terms of the Companies Act a es Taney . we a =: FULLY PAID SHARES 25p EACH April 1976 31 March 1977 . 100 Collins R.H.Dent R.H.Dent H. Fraser Hambro M.B. Hofmeyr : HF Oppenheimer Sir Philip Oppenheimer : W. Pain 7 : . its Limited Substantial shareholding Limited and and * Anglo American Corporation of South Africa 35.8 its cent in the - associated companie held an interest of per issued share capitaolf the company at 23 May 1977 i Capital gains tax The market price of the company's shares 6 April 1965 was Registered 98.75p renounceable Shares represented by of allotment Share warrants to -" provisions bearer 100p ii The company is not a close company the provisions the Income and Corporation Taxes Act 1970 and this position not changed since the end of the financial year : 5 Turnover The i} follow is an analysis of the turnover shown in note accounts and the amount of profit attributable attributable to each by group's class of business undertaken the 5 subsidiaries ene Contribution 0 G.W.H. Relly: J.G. Richardson . 2 . : Spiro ; L.G. Stopford Sackville 7 H.J. Stucke 100 4,750 .100 W. Thomas 100 1976 J. Ogilvie Thompson appointed 22 April 5 . 100 W.D. Wilson ALTERNATE DIRECTORS ' R. Armitage F. A. Howard 0: A. Oppenheimer > A. Owston ey mil Ho 2222 . 2222 cs nil nil 2222 2222 F these interests are beneficially owned the remainder are not bene- | . . . ficially owned which 5,000,000 being shares held by a body corporate are tof of the Companies 1967 Act notified pursuant to section 28 trading profit : _S group Turnover + 000 before taxation 0003 Building and insulation products 65,896 ' Automotive and engineering 4 ve products : Mining and sale of asbestos fibre : 34,997 34,771 Railway track fastenings and mine ag roof bolting systems Heating and catering equipment ' Sos Coal mining 2 a 13,800 11,997 1,10-1 Deduct between + different classes of business 162,565 2,552 160,013 Areas to which external sales were made United Kingdom Of these directors and alternate directors the following had issued beneficial interests in the partly paid shares of the company under its scheme the effect of which was to enable share incentive executive directors and senior employees to subscribe for shares which after a qualifying period could be fully paid up at a price x time determined at the of subscription PARTLY PAID SHARES OF 25p EACH April 1976 31 March 1977 D. Burnell N. Clarke W. Pain J.G. Richardson G. Stopford Sackville R. J. Armitage J.W. Owston 7,500 7,500 12,500 10,000 10,000 7,500 6,000 7,500 7,500 12,500 10,000 10,000 7,500 6,000 1 Mr R. H. Dent also had a beneficial interest 4,750 ordinary shares of 25p each in Cape Industries Limited a subsidiary of the company at April 1976 and 31 March 1977 Between the end of the financial year and 23 May 1977 being one month prior to the date o* the notice of annual general meeting */ ceased to have an interest in 5,000,000 Mr H. F. Oppenheimer con- fully paid shares of the company held by a body corporate the transfer of those shares in terms of the merger sequent uApnognlo American Corporation of South Africa Limited and between Limited Mr L. G. Stopford Sackville's Rand Selection Corporation interest in the fully paid shares of the company was reduced to 4,000 following the disposal of 750 shares by a member of his family There were no contracts or arrangements subsisting during the financial which require to be disclosed in terms of section 16 of ytehaerCompanies Act 1967 as interpreted by the Council of - The Stock Exchange Rest of Europe South Africa Australasia North and South America Rest of Africa ( Geographical analysis of trading profit United Kingdom Rest of Europe South Africa Australasia North and South America Rest of Africa Exports 7 The aggregate value of goods exported by the group's United Kingdom manufacturing subsidiaries during the year was 7 18,692,000 Number and remuneration of employees 33,141,000 The average number of employees per week of the company and its subsidiaries working wholly or mainly in the United Kingdom was 9,544 during the year The aggregate amount of the remunera- tion paid to such employees during the year was | - an Political charitable contributions the and amounted to Contributions for political purposes during year 1,000 consisting of one payment made through a subsidiary . : Industrialists company to British United Contributions for charitable made by the subsidiaries its subsidiaries durtihenyeg ar 47,000 totalled and company company au g^'n^'rale Proc^'dure aux de certificats . d'actions porteur d'assister ^ une assembl^'e Les d^'tenteursde certificats d'actions au porteur d^'sirantassister en leur qualit^'de membre ^ une assembl^'e g^'n^'rale sont tenus de d^'poserleurs certificats d'actions trois jours ouvrables francs au moins avant la date de l'assembl^'eau bureau du directeur du registre de la soci^'t^a'u Royaume ou ^ ceux des agents de la po soci^'t^l''^'tranger Les administrateurs acceptent qu'^ la place du certificat d'actions avoir re^u soit d^'pos^'u ene attestation d^'livr^'pear un d^'positaireauto- ris^'ou par toute autre personne d^'clarant le d^'p^dtu certificat d'actions Le d^'positaireautoris^'ou la personne habilit^'e et doit s'engager ^ ne remettre le certificat d'actions au d^'posantque l'atestation remise de contre de d^'pd^ 'engagemtent La soci^'t^r'emettra au d^'posantd'un certificat d'actions ou d'une attestation de d^'p^tet d'engagement une carte d'admission portant nom et adresse de m^"meque le nombre d'actions _ r^'sent^p'ar le certificat correspondant Cette carte per ttra de ce fait d'assister de voter en personne ou par : mandataire^ une assembl^'eg^'n^'rale : des formulaires peuvent ^"treobtenus aupr^sdes bureaux indiqu^'s dessus : ik a . oo . procurer MM les actionnaires peuvent procurer des exemplaires des r^'gisant les certificats conditions d'action au porteur en de des agents registre s'adressant soit au si^gesocial ou au bureau du directeur.du la soci^'t^s'oit aux bureaux de la soci^'t^' aux adresses suivantes Cr^'dit Lyonnais 19 boulevard des Italiens 75002 Paris Banque Rothschild 21 rue Laffitte 75009 Paris for Procedure holders general meeting |. of share attend Do Holders of share warrants to bearer wishing to attend as members .. at at a general meeting must deposit their share warrants at least - three clear normal business days before the meeting the offices - of the company's registrars in the United Kingdom or any of the . fe company's overseas paying agents UO RAED The directors may accept in lieu of the deposit - certificate from an authorized depositary of a share warrant or other approved deposited person to the effect that the share warrant has been with him The authorized depositary or approved person must give an undertaking not to surrender the share warrant the depositor except against return of the certificate of deposit and the undertaking to The company will deliver the person a depositing share , or certificate of deposit and an undertaking an admission card ': stating his name address and the number of shares represented by the relative warrant to enable him to attend and vote in person oe or by proxy at a meeting eneres forms are available from the abovementioned offices Copies the bearer are governing share conditions of to company of available from the registered office the company and the office of its registrars in the United Kingdom and from the company's -* overseas paying agents Cr^'dit Lyonnai1s9 boulevard des Italiens 75002 Paris and Banque Rothschild 21 rue oe Laffiti:te aa 75009 Paris peuvent MM les actionnaires sont inform^'squ'ils se procurer un exemplaire en fran^aisde ce rapport en s'adressant soit ^ EC1P1A EC1P1A Charter Consolidated Limited 40 Holborn Viaduct London soit ^ Charter France 9 rue de Vienne 75008 Paris ^ soit ^ Cr^'ditLyonnais 19 boulevard des Italiens 75002 Paris soit la Banque Rothschild 21 rue Laffitte 75009 Paris Offices 40 Holborn Viaduct London EC1 1A registered Charter House Park Street Ashford Kent TN24 44 Main Street Johannesburg 2001 South Africa PO Box 28 Dominion Centre Toronto Ontario M5K Canada . 26th Floor 500 Collins Street Melbourne Victoria 3000 Australia 9 rue de Vienne 75008 Paris France 244 Avenida da Liberdade Lisbon 2 Portugal 70 Jameson Avenue Central Salisbury C4 Rhodesia Registrars ym Charter Consolidated Services Limited PO Box 102 Charter House Park Street Ashford Kent TN24 8EQ Consolidated Share Registrars Limited 62 Marshall Street Johannesburg 2001 South Africa Anglo American Corporation of South Africa Limited 73 Jameson Avenue Central Salisbury C4 Rhodesia Printed in England by Westerham Press