Document EdBO53znmRGXxMrj1VzxkwVLx

FILE NAME Cape Asbestos CAPE DATE 1976 DOC CAPE169 DOCUMENT DESCRIPTION Annual Report - Charter Consolidated Ltd. Legal Tibbs Case Exhibit 67 Charter Consolidated Limited ANNUAL REPORT 1976 _023CP401759_023CP4001759 B52 COVER A'Pandrol A'Pandrol rail fastening being made at the Elastic Rail Spike Company's United Kingdom plant Offices United Kingdom 40 Holborn Viaduct London EC1P 1AJ registered 7 Rolls Buildings Fetter Lane London EC4A 1HX Charter House Park Street Ashford Kent TN24 8EQ South Africa 44 Main Street Johannesburg 2001 Canada PO Box 28 Dominion Centre Toronto Ontario M5K 1B8 Australia 26th Floor 500 Collins Street Melbourne Victoria 3000 France 9 rue de Vienne 75008 Paris Portugal 244 Avenida da Liberdade Lisbon 2 Rhodesia 70 Jameson Avenue Central Salisbury C4 Registrars United Kingdom Charter Consolidated Services Limited PO Box 102 Charter House Park Street Ashford Kent TN24 8EQ South Africa Consolidated Share Registrars Limited 62 Marshall Street Johannesburg 2001 Rhodesia Anglo American Corporation of South Africa Limited 70 Jameson Avenue Central Salisbury C4 EL TRONICALY FILED - 2023 Oct 18 12:30 12:30 PM - RIC-HLAND COMON PLEAS - 203CP41759203CP401759 ELECTRONICAL Y ELECTRONICALY ELCTRONIAY FILED - 2023 CHARTER CONSOLIDATED LIMITED Oct 18 12:30 PM - RIC-HLAND Report and Accounts Year ended 31 March 1976 COMON PLEAS PLEAS - 203CP41759203CP401759 Notice of Meeting Directorate and Administration Report of the Directors Ten Year Financial Record 12 Accounts 15 Principal Interests and Investments 31 General Information 44 EL Notice of Meeting NOTICE IS HEREBY GIVEN that the eleventh annual general meeting of members of Charter Consolidated Limited will be held at Winchester House 100 Old Broad Street London EC2N IBU on Tuesday 20 July 1976 at 12 noon for the purpose of considering and if thought fit passinthge following ordinary resolutions That the consolidated profit and loss account for the year ended 31 March 1976 and the balance sheet of the company and the consolidated balance sheet at that date together with the annexed report of the directors be and are hereby approved and adopted 2. That the final dividend of 4.25675p per share for the year ended 31 March 1976 recommended by the board of directors be and is hereby approved for payment to share holders registered at the close of business on 25 June 1976 and to persons presenting coupon no 22 detached from share warrants to bearer 3. That the following be and are hereby reappointed directors of the company Mr H. J. Stucke Mr J. Ogilvie Thompson Mr A. Smith Mr Dent Mr J. O. Hambro Mr M. W. Thomas These appointments will be dealt with in one resolution unless any member present or represented at the meeting requires otherwise 4. That the remuneration of the joint auditors for the period until the next annual general meeting be fixed by the board of directors The transfer books and registers of members in the United Kingdom the Republic of South Africa and Rhodesia will be closed from 17 to 20 July 1976 both days inclusive TRONICALY FILED - 2023 A member entitled to attend and vote Oct at the meeting is entitled to appoint 18 one or more proxies to attend and on 12:30 poll to vote instead of him A proxy need not be a member of the company A form of proxy accompanies this PM - notice Holders of share warrants to bearer RICHLAND who wish to attend in person or by proxy or to vote at any general meeting of the company must comply with the - relevant conditions governing share warrants cover to bearer see inside back COMON by order of the board PLEAS D. S. BOOTH secretary - 203CP41759 40 Holborn Viaduct London ECIP IAJ 24 June 1976 203CP401759 NOTES 1. Holders of loan stock are reminded that only shareholders are entitled to attend and vote at the meeting To be valid the form of proxy must reach the company at PO Box 102 Charter House Park Street Ashford Kent TN23 2BR not less than 48 hours before the meeting 3. There are no directors service contracts required by The Stock Exchange to be made available for inspection at the meeting Directorate and Administration Chairman S. Spiro MC Deputy Chairman Sir Philip Oppenheimer Managing Director M. B. Hofmeyr Directors F. S. Berning P. D. Burnell G. A. Smith N. Clarke H. Collins MBE DSC R. H. Dent H. Fraser O. Hambro MC H. F. Oppenheimer B. W. Pain G. W. H. Relly G. Richardson L. G. Stopford Sackville H. J. Stucke M. W. Thomas J. Ogilvie Thompson W. D. Wilson Members of Executive Committee Alternate Directors R. J. Armitage P. G. Hatch M. W. B. Heald F. J. A.Howard A. E. Oppenheimer A. J. W. Owston Managers R. J. Armitage C. D. Burnell P. G. Hatch M. W. B. Heald F. J. A. Howard A. J. W. Owston Secretary D. S. Booth Chief Accountant R. H. T. Dawkins Chief Economist L. L. C. Smets Personnel Controller H. Holmes MBE Public Relations Consultant H. E. O. Ellison Administrative Manager J. A. Pool ELCTRONIAY FILED - 2023 Director responsible for Oct technical services 18 H. J. Stucke 12:30 Consulting Engineer A. Smith PM - Assistant Consulting Engineer RICHLAND J. V. Cleasby Consulting Mechanical and - Electrical Engineers H. W. Purkiss S. Sheer COMON Consulting Metallurgist PLEAS A. K. Chant PLEAS - Consulting Geologists Dr F. W. D. Cornwall Dr J. F. Osten 203CP41759 ELETRONICAL Y ELETRONICALLY Report of the Directors The directors have pleasure in submitting their eleventh annual report with the audited accounts for the year ended 31 March 1976 Financial results The following are the major features of the consolidated profit and loss account 1976 1975 000s 000s Consolidated Deduct profit before taxation 37,291 1 Deduct Taxation + + + 14,666 27,936 9,869 Interest of outside shareholders . , 2,382 | 861 17,048 10,730 atributale Earnings atributable Earnings attributableatributable . . . . 20,24320,243 17,206 Appropriations Dividends Dividends Interim of 2.5p per share paid on January 1976 2. '. 2,620 | | Recommended final of 4.25675p | per share payable on or about | 23 July 1976 | 4,461 | 2,358 4,149 7,081 6,507 Profit for the year retained . . 13,162 10,699 3,629 8,333 Extraordinary Extraordinary . . . . Transfer . .. 9,533 2,366 Earnings after taxation and prior to extraordinary items increased to 20,243,000 equivalent to 19.32p per share compared with 17,206,000 or 16.42p per share in the year to 31 March 1975 The board has recommended a final dividend of 4.25675p per share to make a total dividend for the ELTRONICALY FILED - 2023 Oct year of 6.75675p per share The final and interim divia dends together with the tax credit of 3.63825p p-- share represent the maximum distribution which i permitted under the inflation legislation '& Investment income rose by 521,000 to 18,220,000 Although depressed metal prices reduced income derived from the Zambian copper mines through the investment in Minerals and Resources Corporation Limited and from interests in tin and platinum the major investments in mining finance houses proremarka duced further growth in revenue The United Kingdom stock market showed a remarka ababllee recovery recovreecoverry y from the extreme depdepresrion ession of 1974 1974 and this was mirrored less dramatically in the Unite States The very substantial profits on realizations of arising 6,932,000 reflect some element of the surplus through the placing in January 1976 of 10 million Tinto Zinc Corporation Limited shares of The Rio Tinto Corporation Limited being extraordinary items balance being included under extraordinary items the ' m The industrial companies had an excellent year Cap Industries Limited's performance in more than doube ling trading profits was matched by the results of theu Elastic Rail Spike and Heatrae groups 2 The company's share of the retained earnings before taxation of associated companies decreased by 2,302,000 to 3,663,000 mainly as a result of lower metal prices The taxation taxation charge increased increased by 4,797,000 to 14,666,000 which includes a provision for deferred taxation of 1,681,000 A significant element of this charge derives from the major improvement in the results of the industrial subsidiaries and from the substantial tax liability which arose as a result of the placing ofthe Rio Tinto shares However the taxable surplus arising from this placing enabled the company to claim full tax relief for the losses written off in the accounts to 31 March 1975 in respect of SOMIMA and a credit of 7,326,000 is made Report of the Directors ELCTRONIAY to extraordinary items from this recovery of taxation During the course of the year a combination of major FILED Extraordinary items show a deficit of 3,629,000 adverse external influences came to bear on the pro- FILED Reference is made below to the suspension of develop- ject The continuing depression in the copper price had - 2023 ment work on the SMTF project Charter's share of the investment expenditure on this project up to the time a serious effect on the Zaire economy and created problems in the servicing of existing debt The war in of suspension amounted to 20.9 million The directors Angola and the resulting disturbed political conditions Oct have decided in the present circumstances as a matter gave rise to anxiety and the lending institutions were 18 of financial prudence to provide 9.2 million against therefore reluctant in all the circumstances to under- 12:30 the cost of this investment and in addition to write off in full Charter's share of estimated demobilization take further commitments to disburse funds The logistical and transportation disruptions caused by the PM costs requiring a further 5.4 million Losses of war combined with an unprecedented rate of world - 1,039,000 also arise in respect of the exceptional costs inflation resulted in the likely cost of the project to resulting from the closure of plants by our industrial produce 130,000 metric tons of copper per annum and RICHLAND companies to achieve more efficient manufacturing related cobalt rising to more than 800 million com- operations The aggregate deficit in extraordinary pared with the previous estimate of 660 million on items was offset by the substantial credits arising which the financial scheme had been based - from the tax relief in respect of SOMIMA together with The shareholders reviewed this grave situation with COM ON surpluses on the disposal of long term investments and surpluses in the accounts of associated companies The continued depreciation of sterling against the the government of Zaire and with their full cooperation and agreement the decision was taken at the end of January to defer further expenditure on develop- PLEAS Deutsche mark and the French franc required the company to make further provision against the ment Up to this time an amount of 230 million had been expended on the project by the shareholders increased cost of ultimately repaying the loans raised and the additional cost of demobilization is estimated - in these currencies but this was compensated by the at around 55 million Progress work on the main increased value in sterling terms of assets held outside plant and township has ceased all major equipment the United Kingdom orders have been either suspended or terminated and 203CP41759 Shareholdings in Freight Services Holdings Limited Pretoria Portland Cement Company Limited Highveld Steel and Vanadium Corporation Limited and The activity on site reduced to minimum Despite the decision taken to suspend development of the project Charter and associates and the other share- 203CP401759 Northern posed of Lime Company Limited have been dis- holders in SMTF namely the Zaire government Standard Oil of Indiana Mitsui & Co. Bureau de Operations and investments SOCIETE MINIERE DE FUNGURUSM MTE F Full scale development work continued during 1975 on the Fungurume copper project in Zaire in anticipation that the financing arrangements which had been agreed in principle by the end of 1974 would be completed as envisaged These arrangements included loans from third parties for a total of 425 million made up of bank syndicated eurodollar credits of approximately 200 million with the balance being raised in the form of export credit finance from various government agencies Recherches G^'ologiqueset Mini^resand Leon Tempelsman & Son remain convinced that the TenkeFungurume orebodies containing 51 million metric tons of ore assaying 5.7 per cent copper and 0.46 per cent cobalt constitute one of the most attractive copper deposits in the world Feasibility work is continuing including the study of a scheme involving lower production levels initially with a view to reactivating the project as soon as possible CLEVELAND POTASH Steady progress has been made on the completion of the construction phase both on surface and underground and on development work at Cleveland Report of the Directors Potash Limited which is jointly owned by Charter and associates and by Imperial Chemical Industries It will be recalled that the completion of the rock shaft intended for hoisting ore was materially delayed because of water encountered during sinking operations The service shaft which was designed for the movement of equipment and personnel had thus to be used also for the hoisting of ore until the rock shaft was sunk to final depth and fully equipped This was achieved during the year but the extended use of the service shaft for ore hoisting has necessitated the refurbishing and rehabilitation of this shaft A substantial part of this work has now been completed but the availability of the shaft for operations continues to be restricted The extent and grade of the potash reserves calculated from original borehole information have been broadly confirmed by underground development and geological work However the potash seam exposed thus far has been undulating and varying in thickness and this coupled with poor roof conditions has resulted in a slower build of ore production and a lower ore grade than anticipated As a result of these factors it is unlikely that a rate of production sufficient to cover costs will be attained until some time in 1977. To meet the delay in building up production Charter and associates and Imperial Chemical Industries have agreed to make available to Cleveland a further 18 million this year Charter's share ofthis is 6.75 million Although the world potash market showed weakness during the latter part of the year with some falling off in consumption it is confidently expected that Cleveland will be able to dispose of its future production at satisfactory prices MALAYSIA Charter's main interest in tin mining is through shareholdings in Tronoh Mines Limited Bidor Malaya Tin Sendirian Berhad Ayer Hitam Tin Dredging Limited and The Sungei Besi Mines Limited Production from Tronoh and its subsidiary companies for the year ended 31 December 1975 was 2,582 metric tons of tin concentrate compared with 3,077 metric tons during EL CTRONICAL Y 1974 and this combined with lower prices for tin inm 1975 resulted in a decreasein profit from 1.5 millioEInLED to 0.9 million 2,6363 At Ayer Hitam production increased from metric tons to 3,127 metric tons and was reflected in the improved profit of 1.6 million for the year to 30 June 1975 compared with 1.0 million in the previous year 12:30 12:30 Although Sungei Besi's output of 2,277 metric tons in- the year to 31 March 1975 did not match the 2,579 metric tons produced in the previous 12 months profits increased to a record level of 0.7 million com pared with 0.6 million in 1973-4 mainly because the company received the benefit of the higher tin price for the first nine months of its financial year Produc- tion is expected to be lower for two years as a result Produc- an extensive development plan launched in Apri 1975 so that the mine is unlikely to contribute signifiMOcN cantly to Tronoh group profits until 1977-8 PLEA Work on the joint venture project in the Selangor state of Malaysia has been suspended while suitable arrange- ments are made to provide the finance necessary fo further development Every effort is being made to negotiate terms to enable work to be restarted on this cen important tin discovery Charter has a 36 per interest in this project and Tronoh nine per cent the balance is held by Selangor State Development Cor- poration 401759 It was announced on 1 April 1976 that as a result 4001759 negotiations which had taken place since June 1975 proposals had been formulated which implemented would result in a Malaysian company associated with Pernas Securities Sendirian Berhad an agency of the federal Malaysian government making an offer for the shares of London Tin Corporation Limited not already owned by Pernas and its subsidiaries Before the pro- posals can be implemented various consents and approvals will have to be obtained from the exchange control and revenue authorities in the United Kingdom and from those in Malaysia and Singapore As part of the proposed arrangements Pernas and Charter would merge their tin mining interests by placing them in a new Malaysian company for which a listing is en- Report of the Directors ELCTRONIAY visaged in due course The assets of this company Charter's interest is now 15 per cent Australian Anglo FILED would be managed by a new Malaysian company American's Blue Spec gold and antimony mining FILED jointly owned by Pernas and by Charter which would operation commenced production on schedule in - provide full technical and other services BERALT TIN AND WOLFRAM 2023 April In Brazil Charter has 12 per cent interest in the 49 per cent interest of Anglo American Corporation do Brasil Oct Beralt Tin and Wolfram Limited hada satisfactory year Limitada in Mineracao Morro Velho S.A. an old 18 12:30 and recorded a profit before tax of 1.4 million This compared with 3.1 million in 1974 when exceptional established gold mining company where ore produc- tion is now in excess of 40,000 metric tons a month PM profits arose through the sale of stocks which had been built up Average gold recovery is seven grams per metric ton - and this is expected to increase in 1976. An investiga- Despite greater availability of labour production at tion of bearing conglomerates at Jacobina in the RICHLAND the mine at Panasqueira suffered as a result of absen- teeism reduced working hours and the declaration of state of Bahia is being pursued by drilling and adit work additional public holidays and total output of wolfram - In the North Sea the consortium in which Charter has concentrates declined to 1,742 metric tons compared with 1,827 metric tons in 1974 a 25 per cent interest completed the drilling of second COM ON The wolfram market enjoyed a year of unusual stability Although a certain slackening in demand well in block 210/19 without any showings of hydro- carbons CAPE INDUSTRIES PLEAS occurred towards the end of the year prices remained firm and Beralt was able to sell its wolfram concen- Charter's principal industrial subsidiary Cape Indus- trates at an average price higher than in the previous tries Limited had a record year with turnover rising - year Sales volume was lower however at 1,882 to 107 million from 81.3 million and pre profits metric tons of concentrate compared with 3,032 reaching 10.2 million compared with 3.9 million for metric tons sold in 1974 1974. These results were achieved in spite of difficult trading conditions 203CP41759 During the year exchange control permission was re- ceived to transfer to the United Kingdom one third of the operating company's dividend for 1974 which enabled Beralt Tin and Wolfram to pay a dividend of 1.75p per share in respect of its own year 1975. The All divisions improved their profits the greatest increase arising in the mining division which raised total tonnage both mined and sold Together with substantial price increases effected during the year second instalment of the operating company's divi- these factors led to a much needed improvement in dend for 1974 and also dividend for 1975 expected profitability to be remitted to the parent company in the current The wages of black South African employees were year further increased in 1975 by 53 per cent and have now PROSPECTING AND OTHER ACTIVITIES risen to almost four times their level four years ago Improvements continue to be made to standards of Charter continued to participate directly and indirectly accommodation and amenities through associated companies in prospecting operations in various parts of the world principally Spain Ireland Australia Brazil Costa Rica and South Asia At home the market for external cladding materials remained at a depressed level but higher demand for resisting boards and panels for both land and marine use enabled satisfactory results to be achieved In Australia Charter's mineral activities are carried on The contracting division enlarged during the early through Australian Anglo American Limited in which part of the year by the acquisition from Turner & Report of the Directors Newall Limited of its insulation contracting business continued to prosper Despite the troubled state of the motor industry the automotive and engineering division again increased both turnover and profits As to the future the demand for asbestos fibre and for thermal insulation materials and contracting services remains strong Fire regulations will also reinforce the need for resisting boards and panels The market for friction materials may not change greatly in the United Kingdom but there are signs of an upturn in the rest of Europe Capital expenditure in 1976 will be heavy amounting to 4.8 million in the United Kingdom and 6.3 million in South Africa Towards the end of the year Cape raised 4.9 million by means of a rights issue of shares for cash in which Charter took up its entitlement in order to provide for these further capital projects and to avoid increasing the company's indebtedness Much publicity has been given to health hazards connected with asbestos Cape spends very large sums on dust control and takes a leading part in research into this problem The proposed government inquiry into the situation is welcomed ELASTIC RAIL SPIKE AND HEATRAE GROUPS Sales of Charter's wholly owned industrial subsidiaries the Elastic Rail Spike ERS Heatrae and Sadia groups rose by 5.5 million to 22.5 million in 1975 an increase of 32 per cent which was largely attributable to ERS Combined trading profits after depreciation and interest on external borrowings but before group interest taxation and minorities increased from 0.8 million to 2.1 million ERS had a particularly successful year with its trading profits increasing from 0.7 million to 1.6 million Demand in the United Kingdom for railway track fastenings weakened in the second half of 1975 coinciding with the financial problems of British Rail However exports of fastenings from the United Kingdom were buoyant The Australian subsidiary which suffered restrictions in steel supplies 1974 increased profits very considerably and the 75 per cent owned Canadian subsidiary produced a satisfactory profit in its first year of operation Exports and operations Rocksil rigid sections and slabs manufactured by Cape Insulation were installed by Cape Contracftosr the thermal insulation of pipework at BP's new oil terminal at Grangemouth Scotland ELCTRONICALY ELCTRONICALY abroad accounted for about 60 per cent of profits and should continue to do so but prospects in the United Kingdom are likely to be limited for the next year EI2L0E2D3 least Heatrae and Sadia have been maintained as separate trading groups competing in those markets in which both are represented Consolidated sales were littl changed in value compared with 1974 but volume de clined by 10 per cent in United Kingdom market which continue to be depressed Plans to expand exu ports were implemented in 1975 and some progress was made Greater benefits are expectedin 1976. Com bined trading profits increased from 0.2 million to 0.5 million mainly as a result of increased efficienc following closure of two factories The progress & Heatrae and Sadia now depends on the extent to which rising costs can be controlled in relation to price restrictions NOW MINERALS AND RESOURCES CORPORATION d The consolidated net profit of Minerals and Resources Corporation Limited MINORCO in which Charter effectively holds a 20 per cent interest dropped by 30 18.3 million to 11.4 million for the year to June 1975. This sharp declinein earnings was attributi able mainly to a substantial fall in dividend income from MINORCO's 49.98 per cent interest in Zambi Copper Investments Limited ZCI which distributed dividends of four cents a share compared with 40 centa a share in the previous financial year ZCI's earnings have been affected by the lower copper price and if addition its liquidity has been seriously impaired by the fact that over 10.5 million of the dividends declared by Nchanga Consolidated Copper Mines Limited and Roan Consolidated Mines Limited which accrued to ZCI are blocked in Zambia because of exchange control restrictions Neither of these producing copper mines has declared a dividend since the quarter ended 30 September 1974 MINORCO's principal source of earnings was its 30 per cent interest in Engelhard Minerals & Chemicals Corporation which again achieved record results with net profits of 114.7 million for 1975 compared with 110.2 million in the previous year MINORCO's other major investments are a 43 per cent interest in Trend ELCTRONIAY - ovws pues, ~. |an revsirs, FI-LED cHeah 2023 ar. be Oct 18 \ 12:30 PM - RICHLAND waenibh ts, mapnetic a - COMON PLEAS - CASE#203P41759 Report of the Directors gS International Limited a subsidiary of Hudson Bay Mining and Smelting Co. Limited through Francana Oil & Gas Ltd and a 15 per cent equity holding in Inspiration Consolidated Copper Company in which Hudson Bay has a 22 per cent interest Inspiration which is concerned with the mining and treatment of copper ores in the United States had a difficult year in 1975 with the adverse effects of the depressed copper price and a 25 per cent cut in production which resulted in a net loss of 3.9 million compared with earnings of 9.5 million in 1974 The Trend International group has extensive oil and gas production and exploration interests in North America and Indonesia and in 1975 its consolidated net earnings were 10.3 million Crude oil production in Indonesia averaged 63,000 barrels a day compared with 30,600 barrels a day in 1974. Although capacity fell short of expectations due to logistical problems and increasing water production from some wells output for the first quarter of 1976 reached an average of 67,000 barrels a day The continued absence of dividends from its indirect interests in the Zambian copper mining industry is reflected in MINORCO's net profit for the six months to 31 December 1975 which amounted to 2.6 million compared with 7.2 million in the corresponding period of 1974 ANGLO AMERICAN CORPORATION OF CANADA The consolidated net income of Anglo American Corporation of Canada Limited AMCAN in which Charter has an equity interest of 25 per cent decreased from 11.9 million in 1974 to 5.7 million in 1975 mainly as a result of lower earnings from its principal investment a 38.5 per cent interest in Hudson Bay Mining and Smelting Co. Limited Hudson Bay's reduction in earnings from 45.0 million in 1974 to 14.8 million in 1975 is largely attributable to its base metal operations which were adversely affected by rising operating costs higher taxes and low metal prices On the other hand the fertilizer and oil and gas operations increased their contribution to earnings Hudson Bay owns a 51 per cent interest in Terra Chemicals International Inc. a United States fertilizer ATIVONE and chemical company and a 55 per cent share inm inm Francana Oil & Gas Ltd a Canadian producer of oil and natural gas in which AMCAN itself now holds a direct o interest of 28.3 per cent following the dissolution the partnership with Credit Foncier FrancoCanadien in Francana Development Corporation Ltd. Francang Oil & Gas holds 57 per cent of Trend Internationa Limited in which MINORCO is the only other share- holder Hudson Bay's financial position has recently been strengthened by the issue in the United States of debentures totalling US million and by the agree ment in March 1976 to sell its interest in Western Decalta Petroleum Limited for 36.3 million BOTSWANA RST Through Anglo American Corporation NVW1HO! Botswana Limited Charter has a 4.5 per cent interest in Botswana RST Limited BRST which in turn holds an 85 per cent interest in Bamangwato Concessions Limited the operator of a copper mine at Pikwe inz z Botswana The continuing low level of production and the depres sed copper price gave rise to an operational loss for BRST of R15.2 million before financing charges of R23.3 million This resulted in a loss for the year tIot 31 December 1975 of R38.5 million after all charges is believed that the operating difficultiesin the metal are lurgical plant have now been identified and these being corrected Production during the year has con tinued to improve and in December 1975 reached approximately 70 per cent of capacity Progress was maintained during the first quarter of 1976 and it is hoped that target production will be achieved during this year Nevertheless there will be substantial additional losses in BRST's current financial year Substantial support by way of loans continued to be provided by the principal shareholders pendinga re- organization of the company's capital structure Directorate A list of the directors of the company appears on page 3 Mr M. W. Stephenson resigned as a director on 31 December 1975 and Mr H. J. Stucke was appointed in 10 Report of the Directors ELCTRONIAY his place on 1 January 1976. Mr K. Kinkead issued share capital was thereby increased to FILED resigned from the board on 31 March 1976. Mr J. 26,201,510.25 in 104,792,981 fully paid shares of 25p Ogilvie Thompson was appointed a director on 22 each and 326,500 partly paid shares of 25p each 1p - April 1976 paid up 2023 In accordance with the company's articles of associa- An analysis of investments and investment income tion Mr H. J. Stucke and Mr J. Ogilvie Thompson appears on page 35. Other particulars which constitute Oct hold office only until the forthcoming annual general part of this report are given on page 44 and a list of 18 meeting but offer themselves for reappointment Mr subsidiary companies on page 34 G. A. Smith Mr R. H. Dent Mr J. O. Hambro 12:30 PM and Mr M. W. Thomas retire by rotation and offer themselves for reappointment Auditors - RICHLAND General information Coopers & Lybrand and Deloitte & Co. will be reappointed in accordance with the provisions of section The book value of the group's fixed assets increased 159 2 of the Companies Act 1948 from 36,668,000 to 47,353,000 during the year - reflecting mainly the professional revaluation of the by order of the board land and buildings owned by Cape Industries Movements on reserves are shown in the consolidated profit and loss account on page 18 and in note 15 on the D. S. BOOTH secretary COMON accounts on page 27 PLEAS PLEAS 40 Holborn Viaduct During the year the company issued 570 fully paid London ECIP TAJ shares of 25p each against conversion of 2,371 five - per cent convertible unsecured loan stock 1984. The 8 June 1976 203CP41759 im Ten Year Financial Record ELECTRONICALY CHARTER CONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES EARNINGS year to 31 March 1976 000s 1975 000s 1974 2000s 1973 000s 1972 000s 1971 000s 1970 000s Income from investments Surplus on realizations 18,220 17,699 13,254 10.440 10,441 14,372 10,705 6,932 2,124 4,309 4,034 3,445 1,104 5,343 1969 000s 9,578 3,041 1968 000s 8,972 2,253 ELCTRONICALY 000 000 000 FILED - 202 8,218 8,218 1,619 1,619 Interest received less paid Trading profit Deduct administration and technical expenditure prospecting expenditure Add group share of retained profits less losses of associated companies Profit before taxation 2,910 14,566 36,808 2,127 1,053 3,180 33,628 3,663 37,291 758 327 129 222 15 511 539 18 12:30 6,566 -- 25.631 7. 7.198 25.088 5,716 ae 20,061 4,442 3,704 4,499 re 18,550 18,550 19,165 20,036 839 _ 13,583 871 12:30 PM 12,635 11,448 1,497 | 2,163! _ 3,660 ee 1,295 | 1 944 i | 919 | 602 602 2,214 1.546 901 778 1,679 21,971 22,874 18,515 16,871 999 | 1,237 769 1,768 _ | 1,237 | 1,349 1,283 _ 1,349 1,283 17,397 18,799 18,799 12,234 11,352 RICHLAND RICHLAND RICHLAND RICHLANDRICHLAND RICHLAND 1,135 COMMON 10,C31OMMON COMMON COMMON COMMON 5,965 3,109 ee 27.936 25,983 1.137 a 17,378 774 17,645 2,803 20,200 18,799 rn 12,234 11,352 PLEAS _ P_ LEAS 10,31 Deduct taxation Deduct amount attributable to outside shareholders and acquisition Earnings attributable Deduct dividends paid Retained 14,666 9.869 9,076 3,832 3,036 3,276 4,772 2,114 22,625 18,067 16.907 13,546 14,609 16,924 14,027 10,120 2,382 861 1,016 1,103 673 556 1,029 20,243 17,206 15,891 12,443 13,936 16,368 12,998 10,120 7,081 6,507 5,987 6,654 8,383 8,381 7,422 6,522 13,162 10,699 9,904 5,789 5,553 7,987 5,576 3,598 1,649 9,703 9,703 6,522 3,181 CASE 8,73 2023CP4001 2023CP4001 2023CP4001 2023CP4001 2023CP4001 2023CP40 1 2023CP4001 8,7 ice) 5,707 3,030 Earnings per share Dividends per share Imputed tax credit per share 19.32p 16.42p 6.76p 6.21p 15.16p 11.87p 5.715.p71p 6.35p 13.30p 8.00p 13.13p 8.00p 7.50p 10.34p = 9.92p 6.66p 6.66p 8.93p 5.83p 3.64p 10.40p 3.24pt 9.45pt 9.45pt 2.69p 2.69p 8.40p 8.40p 1.65p 8.00p _ 8.00p - 8.00p _ 7.50p _ 6.66 _ _ 6.66p 5.83p items introduced in 1972 resulting from new accounting policies 12 item included for the first time in 1973 on the introduction of the imputation tax system to two decimal places earnings recalculated on revised figures resulting from new accounting policies ELECTRONICAL Y ELECTRONICALY ELCTRONIAY CHARTER CONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES NET ASSETS at 31 March FILED 1976 000s 1975 000s 1974 000s 1973 000s 1972 000s 1971 000s 1970 000s 1969 000s 1968 000S 1967 2000s - Investments at market value or directors valuation 2023 255,606 303,863 351,347 303,863 351,347 324,189 272,637 266,785 325,959 383,226 268,929 163,286 383,226 268,929 163,286 383,226 268,929 163,286 Oct 18 Investments at book value 196,151 199,393 184,410 178,597 150,413 143,559 138,388 141,547 123,723 106,111 Fixed assets 12:30 47,353 36,668 30,075 23,640 22,000 21,556 19,578 3.315 3,015 2,664 PM Exploration and - development expenditure 657 4,442 4,069 2,250 759 Net current assets Deduct investment RICHLAND 35,532 9,269 24,531 27,177 34,425 37,760 17.969 5,424 3,986 7,177 279,693 249,772 243,085 231,664 207,597 202,875 175,935 150,286 130.724 115,952 - grants minority interest COM ON long term indebtedness and deferred taxation 67,748 52,222 48,189 46,951 35,234 35,175 33,969 14,991 1,125 1,080 Total capital and reserves 211,945 197,550 194,896 184,713 172,363 167,700 141,966 135,295 129,599 114,872 Add surplus of market value or directors PLEAS valuation of investments - over book value 59,455 104,470 166,937 145,592 122,224 123,226 187,571 241,679 145,206 57,175 Total net assets 271,400 302,020 361,833 330,305 294,587 290,926 329,537 376,974 274,805 172,047 Net assets per share ISSUED SHARE CAPITAL at 31 March 203CP41759 259p 288p 345p 315p 281p 277p 333p 385p 280p 175p 203CP401759 26,202 26,201 26,201 26,200 26,199 26,194 24,738 24,458 24,458 24,458 item introduced in 1972 resulting from new accountingaccounting policies 13 ) Underground at the Cleveland Potash mine Cleveland a Secoma drill operating in a heading preparatory to blasting ELCTRONIAY FILED 2023 Oct 18 12:30 PM - RICHLAND ACCOUNTS - COMON PLEAS PLEAS - 203CP41759 Accounting Policies 16 Consolidated Profit and Loss Account 18 Consolidated Balance Sheet 19 Balance Sheet 20 Notes on the Accounts 21 Source and Application of Funds 29 Report of the Auditors to the Members 220 ' ELCTRONIAY Accounting Policies FILED - 1. Basis of consolidation ) In order to facilitate administration the financial years of Cape Industries Limited and its subsidiaries and those of the other group manufacturing subsidiaries terminate on 31 December ii The results of subsidiaries acquired during the year are included in the consolidated profit and loss account from their effective dates of acquisition 2. Foreign currencies Profit and loss items assets and liabilities in foreign currencies are converted into sterling at the rates of exchange ruling at the dates of the respective balance sheets Differences arising from the conversion of currencies are shown as an extraordinary item 3. Income received Income from investments including where applicable the imputed tax credit is accounted for on a received basis 4. Investments ) 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 Treatment of profits less losses arising on disposal of invest- ments Profits less losses arising on disposal of portfolio investments are included in the profit and loss account as surplus on realization of investments Any profits and losses arising from the disposal of long term investments are dealt with as extraordinary items 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 extraordinary item 5. Turnover Turnover is the invoiced value of sales and excludes transactions between group companies 6. Investment and other grants Grants in respect of capital expenditure are credited to profit and loss account over the estimated average life of the relevant fixed assets Grants shown in the consolidated balance sheet represent total grants to date less the amount credited to profit and loss account 2023 7. Depreciation Oct Fixed assets are written off evenly over their expected useful lives.co with the exception that no depreciation has been provided on free- hold land 12:30 12:30 Depreciation on assets qualifying for investment and other grants PM calculated on their full cost see policy 6 PM - 8. Technical development expenditure RICHLAND Group expenditure on research and development patents and tradej marks is written off when incurred - 9. Deferred taxation COMMON Provision is made under the liability method for United Kingdom corporation tax at 52 per cent and overseas taxation at the appropriate rates on the differences between the amounts at which certain items are included in the balance sheets and the amounts at which they will rank for taxation relief in the future PLEAS Advance corporation tax on dividends payable after the balance sheet date is deducted from deferred taxation CASE 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 progress of Cape Industries Limited is valued at cost less foreseeable losses and 2023CP4001759 gress payments received and receivable Profits on such contracts are taken on completion Cost includes expenditure which is incurred in the normal course of business in bringing the product or services to their present location and condition Net realizable value is 2023CP4001759 203CP401759 estimated selling price less all costs to be incurred 11. Prospecting exploration and development expenditure Group expenditure on prospecting and on exploration and develop- ment is dealt with as follows ) Expenditure to develop existing mining areas The expenditure is considered a part of the general development of the mine and is written off to mine operating costs in the year incurred ii Expenditure on general prospecting Expenditure during the initial 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 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 evaluation the total expenditure is charged as an extraordinary item 16 ELCTRONIAY FILED - 2023 iii Expenditure on development of new mines Oct When it is decided to develop a prospect into a mine any explora- 18 tion and development expenditure relating thereto is capitalized as 12:30 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 extra- ordinary item PM - 12. Associated companies RICHLAND Associated companies are ( 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 a joint venture or consortium or iii mining companies managed by the group in which it also has a COM ON 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 PLEAS 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 shown in the list of other investments of 10 per cent or more on page 33 The group share of retained profits less losses 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 invest- 203CP41759 ments in the consolidated balance sheet It is not practicable to ascertain the group share of retained profits prior to these dates Development costs incurred by associated companies in the course of development of mines and charged to revenue by those companies are not included in the group share of retained profits less losses of associated companies The accounts used to calculate the group share of profits less losses of associated companies are the latest audited accounts available to the group with the exception of Minerals and Resources Corporation Limited for which accounts for the year to 30 June audited and accounts for the year to 31 December unaudited are used Consolidated Profit and Loss Account Year ended 31 March 1976 CHARTER CONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES Income from investments note ) Surplus on realizations of investments less amounts written off Interest received Trading profit note 4 Deduct Administration and technical expenditure note 4 Prospecting expenditure Interest paid note 3 Group share of retained profits less losses of associated companies note 2 Profit before taxation Taxation note 7 Profit after taxation and before extraordinary items Deduct Interest of outside shareholders in profits of subsidiaries acquisition profit 1975 loss Attributable to Charter Earnings per share 19.32p 1975-16.42p 1975-16.42p note 17 Dividends paid and proposed note 8 Profit for the year retained before extraordinary items Deduct Extraordinary items note 5 Retained profit transferred to reserves Profit for the year after extraordinary items totalled 16,614,000 1975 8.873,000 1976 000s 000s 2.127 1,053 5.821 18.220 6,932 2.911 14.566 42.629 9.001 33,628 3.663 37.291 14.666 22.625 2,159 223 2.382 _ 20.243 7.081 __ _ 13,162 3,629 9.533 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ' ELECTRONICALLY ELCTRONICALY ELECTRONICAL Y ELECTRONICAL Y ELECTRONICALY ELECTRONICALY ELECTRONICALLY 1975 FIL~ D 000s FIL~ D 17,699 2,124 5,022 6.5602 1.497 2.163 5.780 31.41 12:30 12:30 PM PM 9.440 21.971 C 5.965 27.936 27.936 O 9.869 899 38 . 18.067 ON PLEAS PLEAS PLEAS 861 CASE 17.2060 CASE 2023C 2023C 6,50 2023C U 10,69 10,699 4 8.333 2,366 Movements on reserves Reserves at 31 March 1975 Retained profit for the year Revaluation of properties net of deferred taxation Reserves of subsidiary and associated companies disposed of during the year Reserves at 31 March 1976 140,725 9.533 5,184 321 155.121 138.075 2.366 325 41 140.725 18 For the accounting policies see pages 16 and 17. For notes on the accounts see pages 21 to 28 Consolidated Balance Sheet ELECTRONICAL Y 0 March 1976 ELECTRONICALY CHARTER CONSOLIDATED LIMITED AND ITS SUBSIDIARY COMPANIES Fixed assets note 10 Exploration and development Investments note 9 ; expenditure Current assets 1976 000s 000s 47,353 657 196.151 ELCTRONIAY 1975 000s 000s FILED - 36.668 4.442 2023 199.393 Oct 18 Stocks and work in progress note 11 Debtors Short term loans and deposits Bank and cash balances 12:30 23,939 37,100 24.727 32,185 33.679 27,563 PM 2,024 1.489 - Current liabilities Associated companies and other deposit accounts Bank loans and overdrafts secured - 7291, 9750 720 9,00 00 Creditors note 12 Taxation Proposed final dividend Net current assets 96.742 85.964 8.595 9.352 35,274 3,528 4,461 61,210 35,532 10,412 16.690 41.923 3.521 4.149 76.695 RIC-HLAND COMON PLEAS - 9.269 Total net assets 279,693 249.772 Financed by Issued capital note 13 Share premium account note 14 Reserves note 15 Total capital and reserves Investment and other grants Minority interest Long term indebtedness note 18 Deferred taxation note 16 26.202 30,622 155.121 211,945 863 13,332 49.414 4,139 203CP4175926.201 30.624 140.725 197.550 947 7,843 42.172 1.260 279.693 249.772 S. SPIRO Chairman M. B. HOFMEYR Managing Director Directors Directors For the accounting policies see pages 16 and 17. For notes on the accounts see pages 21 to 28 19 Balance Sheet 31 March 1976 CHARTER CONSOLIDATED LIMITED Subsidiary companies Shares at cost Add Amounts due from subsidiaries Deduct Amounts due to subsidiaries Deferred asset Advance corporation tax note 16 Current asset Bank balances Financed by Issued capital note 13 Share premium account note 14 Reserves note 15 Total capital and reserves Long term indebtedness note 18 Current liabilities Creditors Taxation Proposed final dividend 1976 000s 000s 93.779 65,402 159.181 100,298 58.883 2.402 1975 000s ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALY ELCTRONIALY ELECTRONICALLY ELECTRONICAL Y ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED FILED 000si 2023 2023 2023 93,779 Oct Oct 59.595 18 153.374 12:30 153.374 12:30 12:30 PM 95.158 PM 58.216_ RICHLAND RICHLAND RICHLAND 2.234 RICHLAND 61,289 26.202 18.629 8.047 52.878 2,357 COMMON COMMON COM ON 60.454 PLEAS PLEAS PLEAS PLEAS PLEAS 26.201 18.627 7.442 2023CP400175203CP4017599 203CP401759 52,270 2023CP4001759 2023CP4001759 2023CP401759 2.360 2023CP4001759 2023CP4001759 2023CP4001759 64 1.529 4.461 6.054 61,289 102 1.573 4.149 5.824 60.454 S. SPIRO Chairman M. B. HOFMEYR Managing Director Directors 20 For the accounting policies see pages 16 and 17. For notes on the accounts see pages 21 to 28 @ Notes on the Accounts 1. Income from investments ( Associated companies see note 2 Other investments ii Arises from Listed investments Unlisted investments iii Includes franked investment income 2. Associated companies ) Those companies considered as principal associated companies as defined in accounting policy 12 on page 17 are listed on page 32. Certain companies in which the group's holding exceeds 20 per cent but which are not considered to be associated companies are listed on page 33 ii Income from investments in associated companies was 3,008,000 1975 - 4,145,000 This represents dividends received by Charter in the year ended 31 March 1976 being dividend declarations by associated companies in their financial years ended prior to 31 March 1976 of 2,390,000 1975- 3,145,000 and dividend payments by associated companies in respect of their current financial years of 618,000 1975 1.000.000 iii Group share of retained profits ated companies for their latest priotro 31 March 1976 less losses of associfinancial years ended Share of profits less losses before taxation Deduct dividends paid from these profits Group share of retained profits taxation Deduct taxation see note 7 less losses before Add extraordinary items see note 5 Group share of retained profits less losses for the year ended 31 March 1976 see note 15 iv For balance sheet details of investments in associated companies see note 9 3. Interest paid on borrowings by the group Loans repayable after more than five years Loans repayable within five years Amounts deposited with the group Bank loans and overdrafts ELCTRONIAY 1976 1975 FILED 000s 000s FILED 3,008 4.145 - 15,212 13,554 18.220 17.699 2023 Oct 14.462 14.460 3.758 3,239 18 18.220 17.699 12:30 PM 4.248 3.762 - RIC-HLAND COMON PLEAS - 1976 000s 1975 000s 203CP41759 6.846 3.183 3.663 3.218 9,764 3.799 5.965 2.916 445 1.908 3.049 5.940 2.353 8.989 1976 000s 2.876 292 994 1.659 5,821 1975 000s 2,664 581 1.224 1.311 5.780 e Notes on the Accounts ee ae ee TSE - -. 4. Trading profit and administration and technical expenditure i Expenses charged Auditors remuneration parent company - 7,000 1975- 7.000 Directors emoluments see note 6 Depreciation of fixed assets see note 10 Hire of plant and equipment Credits Investment and other grants Rents received ii Turnover of the manufacturing subsidiaries iii Administration and technical expenditure Expenditure Deduct recovered from companies outside the group 5. Extraordinary items SOMIMA ) Investment written off and liability to repay the group share of SOMIMA's guaranteed and other loans ii Taxation relief on prior years losses relating to SOMIMA Soci^'t^'Mini^rede Fungurume notes ) and ii below Provision for permanent diminution in term investment SMTF see value of long . Net effect of conversion of currencies Profits less losses on disposal of long term invest- ments net of taxation Losses and provisions relating to closure of operations net of taxation Surplus on sale of fixed assets Goodwill and acquisition profits on purchase of shares in subsidiaries Exploration and development expenditure written off net of deferred taxation Sundries Associated companies Minority interest ELCTRONIAY 1976 1975 000s 000s FILED - 218 235 4.119 715 2023 164 196 3.704 484 Oct 170 18 212 12:30 230 130.295 214 98,779 10,724 8.597 PM 9,211 - 7.714 RICHLAND 2.127 1.497 - 1976 1975 000s 000s COMON 11.408 7.326 PLEAS 14.600 - 1.153 43 17 3.230 2.395 15 203CP41759 1.039 414 592 458 390 _ 158 379 512 1.908 5.940 4.193 564 8.736 403 3.629 8.333 NOTES ) As detailed in page 5 of the report of the directors development of the SMTF project was suspended in January 1976. At 31 March 1976 Charter had contributed 22.1 million 44.0 million to the project expenditure of which 1.2 million 2.5 million was in relation to demobilization costs It is estimated that a further 4.2 million 7.6 million of demobilization costs will be incurred after 31 March 1976 It is the opinion of the directors that in view of the suspended state of the development of the project it 22 is prudent at 31 March 1976 a to write off 1.2 million in respect of the de- mobilization costs incurred to 31 March 1976 and to provide 4.2 million for the estimated costs to be incurred and b to provide for a further 9.2 million against the cost of this investment ii No credit for deferred taxation has been taken in respect of this item as such relief may be offset by restriction of relief for overseas taxation 6. Directors emoluments Directors of the parent company Fees Salaries and other remuneration including pension con- tributions Pensions to former directors Deduct fees received from other companies and refunded to the group Amounts paid to directors Chairman Mr S. Spiro Others 25.001 27,500 20,001 - 22,500 17.501 - 20,000 15.001 - 17,500 12.501 15.000 7,501 10,000 5.001 - 7,500 up to 2,500 14 directors have agreed to waive emoluments due to them from Charter Consolidated Limited and its subsidiary companies Fees waived by these directors during the year amounted to 35,000 1975 12 direc3t4o,0r0s0 7. Taxation GROUP COMPANIES On profit for the year United Kingdom corporation tax at 52 per cent including deferred taxation of 1,110,000 1975 1,052,000 Taxation at 35 per cent on United Kingdom investment income 1975-33 per cent Deduct relief for overseas taxation Overseas taxation including deferred taxation of 571.000 19751975- - 194.000 relief Deduct Adjustments in respect of previous years Estimated overspill relief 1976 E 14.000 264.000 5.000 283,000 48,000 235,000 31.898 1 5 1 1 - 279 279 279 1976 000s ELECTRONICAL Y Notes on the Accounts ELECTRONICALY 1975 ELCTRONIAY E FILED - 14,000 221.000 2023 5.000 Oct 240,000 18 44.000 12:30 196.000 12:30 PM - 30.214 RICHLAND 1422-10 1422-10 142 -10 1422-10 142-10 1422-10 1422-10 142 -10 COMON PLEAS - 1975 000s 13.898 11.056 203CP41759 1.486 15.384 5.994 9.390 1.241 12.297 5.644 6.653 3.659 1.426 13.049 - _ 1.381 220 8,079 801 325 1,601 1.126 ASSOCIATED COMPANIES 11.448 3.218 14.666 6,953 2,916 9.869 NOTES i In the event of certain overseas subsidiaries and associated companies distributing reserves or profits additional liability to United Kingdom taxation would arise ii Overseas taxation is arrived at after taking credit for exporters taxation allowance for which the South African mining subsidiaries are eligible 23 Notes on the Accounts 8. Dividends paid and proposed Interim dividend of 2.5p 2.5p per share 1975 - 2.25p paid on 2 January 1976 Proposed final dividend of 4.25675p per share 1975 3.95966p per share payable on or about 23 July 1976 9. Investments ASSOCIATED COMPANIES Listed in Great Britain Listed outside Great Britain Unlisted Advances Add group share of retained profits less losses see note 15 OTHER INVESTMENTS Listed in Great Britain Listed outside Great Britain Unlisted TOTAL INVESTMENTS Listed in Great Britain Listed outside Great Britain Unlisted including advances 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 31 March 1976 both amount to 2,989.000 1975 - 2,989,000 Any disposal of these shares would require consent under existing exchange control regulations and no income can be remitted to the company from Rhodesia iii Commitments and guarantees by the company and its subsidiaries in respect of subscriptions for shares and 1976 000s 2,620 4.461 7.081 AT COST LESS AMOUNTS WRITTEN OFF 1976 000s 1975 000s 13,623 12.973 13,624 12,973 26.596 17.770 26.597 22.844 44.366 6.858 49.441 16.401 51.224 65,842 16.711 14,549 67,935 80.391 80.949 18.721 99,670 28.546 128.216 90.973 16.726 107.699 11.303 119.002 106.631 31,706 138.337 57.814 196.151 114.935 29.704 144,639 54.754 199.393 ' ELCTRONIAY FILED 1975 000s - 2.358 4,149 2023 6,507 Oct 18 AT MARKET VALUE OR 12:30 DIRECTORS VALUATION 1976 1975 000s 000s PM - 18.642 9.947 17,294 12.098 28.589 26.688 55,277 6,568 RICHLAND29.392 27,408 - 56.800 16.401 61,845 146.607 16.995 73.201 COMON PLEAS PLEAS 200,284 17,941 163,602 30.159 193,761 165,249 26.942 192.191 63.415 218,225 12.437 230.662 203CP41759 217,578 203CP401759 30,039 247.617 56.246 255.606 303.863 loan facilities amount to 8.866.000 1975 10.189,000 iv A subsidiary company has entered into contracts for exploration expenditure to be incurred after 31 March 1976 v The greater part of the investments is of a 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 book cost vi The market value of foreign currency investments includes 75 per cent of the investment currency premium where applicable 24 ELECTRONICAL Y Notes on the Accounts 10. Fixed assets At cost or valuation at 31 March 1975 Currency realignment Additions at cost Subsidiaries acquired during the year Disposals Reallocations Revaluations Balance at 31 March 1976 ELCTRONIAY PLANT FILED FREEHOLD LONG LEASEHOLD SHORT LEASEHOLD FURNITURE AND MINING - PROPERTY PROPERTY PROPERTY FITTINGS RIGHTS TOTAL 2023 000s 19.695 000s 2,917 000s 3.435 000s 38.506 000s 1.576 000s 66.129 154 1.375 125 189 310 1.033 4.599 Oct 118 1.494 6.409 _ 324 139 56 1 1.910 _ 1 18 18 2.447 _ 7.125 71 19 71 555 _ _ 7.661 12:30 27.717 2.813 4.126 40.163 1.440 76.259 PM - Depreciation at 31 March 1975 on assets at cost or at valuation Currency realignment Charge to profit and loss account Disposals Revaluations Balance 3131 March 1976 4.103 157 634 15 2.330 2,235 Net book amounts At 31 March 1976 25.482 At 31 March 1975 15.592 586 _ 82 29 89 550 1,941 125 182 20 76 1.902 22.737 615 3,193 1.211 _ 24.104 2,263 2.331 2.224 16.059 1.494 15,769 RICHLAND 94 7 28 29.461 904 4.119 1.275 - 2.495 115 28.906 COMON 1.325 47.353 PLEAS 1.482 36.668 - NOTES ) Fixed assets are included on the following bases At cost At valuation - 1948 1970 1972 1974 1975 PLANT 203CP41759 FREEHOLD PROPERTY 000s LONG LEASEHOLD PROPERTY 000s SHORT LEASEHOLD PROPERTY 000s FURNITURE AND FITTINGS 000s 11.856 1.335 3.304 40.140 MINING RIGHTS 000s 239 1.201 203CP401759 _ 23 155 568 1,117 102 203CP401759 15.138 361 720 27.717 2.813 4.126 40.163 1.440 ii Freehold properties at valuation include an amount of 619,000 relating to land and factory premises acquired by Belgian subsidiaries and financed by secured loans see note 18 The legal title to the factory premises does not vest in the companies con- cerned until the final instalments on the loans have been paid iii The freehold and leasehold properties at valuation in 1975 were valued by Edward Rushton Son & Kenyon Brogden Barnes & Co. Du Plessis Viviers & Co. Leslie Richards and Pollock Johan Frederick Brendenkamp and Mader Van Niekerk Industrial and commercial properties were valued on an existing use basis and agricultural land in South Africa associated with mining operations at open market values on an existing use basis iv Commitments for capital expenditure of subsidiaries amount to 1.104,000 1975 2.065,000 v Estimated capital expenditure of subsidiaries authorized but not committed amounts to 3,575.000 19751,817,000 25 Notes on the Accounts 11. Stocks and work in progress Long term contracts work in progress Deduct progress payments received and receivable Raw materials and consumable stores Work in progress Finished goods 12. Creditors Creditors include the balance amounting to 2,339,000 1975 2,951.000 of a provision established by Cape Industries Limited in 1973 for compensation payments for industrial disease Since the provision was established the number of claims received has been substantially higher than the level on which the provision was based although it is possible that this is at least in part attributable to the submission of claims at an earlier time than originally expected It is not possible to say whether this experience indicates that in the final outcome the aggregate number 13. Share capital Authorized 120.000.000 shares of 25p each Issued and fully paid At 31 March 1975 Issued during year as detailed in the report of the directors 104,792,411 shares of 25p each fully paid 570 104,792,981 Issued partly paid At 31 March 1975 and 1976 326,500 shares of 25p each 1p paid up Total issued at 31 March 1976 NOTES 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 565,744 ELECTRONICAL Y ELECTRONICALY ELCTRONIAY 1976 1975 000s 000s FILED 16,610 7,915 - 16,227 383 7,372 543 2023 Oct 10,822 1.858 11.332 2.541 10,876 10,311 18 12:30 23,939 24,727 12:30 PM - RICHLAND of claims will materially exceed that originally expected The assessment of the likely sum required remains very difficult to determine and it is not possible to state with certainty that the balance of the provision will in fact be - adequate Nevertheless having reviewed the position in consultation with Cape Industries Limited and their auditors the directors consider that there is no conclusive evidence that at this stage it is necessary to set aside a further amount COMON PLEAS PLEAS - 30,000,000 26.198,103 142 26,198,245 203CP41759 3,265 26,201,510 26 14. Share premium account Balances at 31 March 1975 Premium on shares issued by the company Reduction of interest in a subsidiary company Balances at 31 March 1976 15. Reserves Reserves at 31 March 1975 Retained profit for the year Revaluation of properties net of deferred taxation Reserves of subsidiary and associated companies disposed of during the year Reserves 31 31 March 1976 16. Deferred taxation The balance of deferred taxation comprised Excess of the book value of assets qualifying for taxation allowances over their written down value for taxation purposes Taxation on capital gains on property revaluation Taxation on capital gains on assets sold and rolled over against the acquisition of new assets Taxation relief relating to provision for compensation for industrial disease Stock appreciation relief relating to industrial subsidiaries Taxation relief on prospecting expenditure Difference between book and taxation value of invest- ments arising from timing differences Advance corporation tax see note below NOTE Advance corporation tax recoverable of 2,402,000 1975 - 2,234,000 is shown as a deferred asset in the company's balance sheet 17. Earnings per share Earnings per share attributable to Charter is calculated on earnings of 20,243,000 1975 - 17.206.000 and on 104,792,981 shares 1975- 104,792,411 shares as if the additional 570 shares issued during the financial year had been issued for the whole year Notes on the Accounts ELCTRONIAY GROUP COMPANY FILED 000s 000s 30,624 18,627 - 2 2 4 2023 30.622 18,629 Oct 18 GROUP COMPANY SUBSIDIARY ASSOCIATED 12:30 COMPANIES COMPANIES 000s 000s 000s 000s PM - 140,725 7.442 118,734 14,549 9.533 605 6.575 2.353 5,184 5,184 _ RICHLAND 321 _ 130 191 155.121 8,047 130,363 16.711 - COMON 1976 1975 000s 000s PLEAS PLEAS 5,243 4,408 - 2,679 292 240 1.040 1.307 203CP41759 1,561 849 544 716 76 3.203 2.721 4.139 1.260 27 Notes on the Accounts ELCTRONICALY ELECTRONICALLY 18. Long term indebtedness Details of loans repayable over a longer period than five years Debenture stocks secured issued by ( Charter Consolidated Investments Limited 3 per 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 6 per cent debenture stock 1986/89 Unsecured loan stocks issued by i The company 5 per cent convertible loan stock 1984 ii Cape Industries Limited 7 per cent loan stock 1986/91 iii Swaziland Collieries Limited 9 per cent registered convertible notes 1972/81 Bonds issued by Charter Consolidated Overseas N.V. ) 6 per cent unsecured bonds of DM112,000,000 1968/83 ii 7 per cent guaranteed bonds of FF94,000,000 1987 ELCTRONIALY FILED 1976 1975 - 000s 000s 2023 500 500 500 500 Oct 18 2.000 2.000 12:30 600 600 2,357 2.360 PM - 3,459 3.459 RICHLAND 15 151 22,998 20.141 - 10,479 9.449 Belgian long term loans Secured repayable by annual instalments over 12 years Loans repayable in less than five years COMON 349 43.257 375 39.535 Bank loans unsecured Belgian unsecured 6.105 52 2,537 100 PLEAS - 49.414 42.172 NOTES i The company's five per cent convertible loan stock The company has guaranteed both bond issues as 1984 carries the following conversion rights Year of conversion 1976-9 Numbeorf shares 100 stock 24 203CP41759 regards repayment of principal including premium if any and payment of interest iii The Belgian loans are repayable by annual instalments and interest is payable at rates currently not exceeding 203CP401759 1980-4 23 ii The DM112,000,000 6 per cent unsecured bonds seven per cent per annum determined yearly by the Belgian authorities 1968/83 are listed on the Frankfurt stock exchange iv Included in bank loans are 2,772,000 repayable in The FF94.000.000 7per cent guaranteed bonds Belgian francs and 385,000 repayable in French 203CP401759 1987 are listed on The Stock Exchange London francs 19. Contingent liabilities For amounts not called on investments In respect of guarantees of 25.966.000 less counterguarantees 3.857.000 company net 10,658,000 14,353,000 In respect of underwriting participations and option granted Bills receivable As endorsers of bills of exchange Cape Industries Limited has been named a defendant in 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 1976 000s 168 1975 000s 374 22.109 485 516 16.160 3.632 277 1,467 23,278 21,910 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 arise as result of the actions and no provision has been made in these accounts in respect of any such liability 28 Source and Application of Funds fiYear ended March 1976 SOURCE OF FUNDS Earnings attributable to Charter Extraordinary items Adjustments for items not involving movements of funds Depreciation SMTF see note ) below Provision for diminution in value of portfolio and long term investments Changes in currency conversion rates of loans and investments Deferred taxation Minority interest in retained profits of the year Exploration and development expenditure written off Share of retained profits less losses of associated companies Funds generated Disposal of fixed assets Proceeds of rights issue received by Cape Industries Limited from minority shareholders Increase in long term indebtedness 1976 000s 000s 20,243 3.629 16.614 4.119 10.400 1,350 1,375 805 1.596 458 2,353 17,750 34.364 1.172 1,657 2,738 5.567 39.931 ELCTRONIAY 1975 FILED 000s 000s FILED - 2023 17,206 8.333 Oct 8,873 18 3.704 _ 3.441 3.459 1.574 496 8.989 12:30 PM - RICHLAND 3.685 - 12.558 COMON 499 _ PLEAS 385 114 12,672 - APPLICATION OF FUNDS Purchases of fixed assets Investments see note iii below Increase in working capital and other items see note ii below Dividends paid and proposed Increase decrease in liquid funds see note iv below 5.880 198 10.844 10.168 10.966 7,081 24.125 15,806 879 6.507 26.640 13.968 203CP41759 NOTES ) Provision against cost of investment of 9,200,000 and for demobilization costs of 1,200.000 iii Investments Purchases 1976 000s 30.546 1975 000s 35,671 ii Analysis of working capital Decrease in stocks and work in progress Increase in debtors Decrease in creditors Increase in taxation Other items 1976 000s 788 4.915 6.649 7 197 1975 000s 7,923 6.124 16.828 1.745 157 Book value of realizations iv Increasien liquid funds Increase in short term loans deposits and cash 30.348 198 25.503 10.168 1976 000s 6.651 1975 000s 1.704 10,966 879 1976 includes liability of 4,200,000 for SMTF demobilization costs 1975 included liability of 8,679,000 to repay the group share of SOMIMA's guaranteed and other loans Decrease in associated companies and other deposits Decrease in bank loans and overdrafts 1,817 7.338 15.806 3.867 8.397 13.968 29 a i Oeer. fe Report of the Auditors o_n to the Members We report on the accounts set out on pages 16 to 34 Included in Investments in the consolidated balance sheet is the investment in Soci^'t^'Mini^rede Fungurume SMTF at an amount of 11.7 million As stated in note 5 ( on page 22 development of this project has been suspended and the company has written off 1.2 million of demobilization costs incurred at 31 March 1976 and provided 4.2 million for estimated demobilization costs to be incurred after that date The company has also provided a further 9.2 million against the cost of the investment In the present circumstances it is not possible for us to assess whether the provision of 9.2 million is adequate or excessive and therefore whether the investment in SMTF is fairly stated at 11.7 million With this reservation in our opinion based on our examination and on the reports of the auditors of certain subsidiaries and associated companies not audited by us the accounts a give so far as concerns the members of Charter Consolidated Limited a true and fair view of the state of affairs at 31 March 1976 and of the profit and source and applica- tion of funds for the year ended on that date so far as is practicable having regard to the fact that the accounts of certain subsidiaries and associated companies have been made up to dates other than 31 March 1976 and b comply with the Companies Acts 1948 and 1967 COOPERS & LYBRAND DELOITTE & CO Chartered Accountants London 8 June 1976 80 ELCTRONICALY ELCTRONICALY FILED - 2023 Oct 18 12:30 PM - RICH- LAND COMON PLEAS PLEAS - 203CP41759 ELCTRONIAY FILED - 2023 Oct 18 12:30 PM - RICHLAND PRINCIPAL INTERESTS AND INVESTMENTS - COMON PLEAS PLEAS - 203CP41759 Principal Investments 32 Subsidiary Companies 34 Analysis of Investments and Investment Income 35 Interests of the Company 36 Principal Investments ASSOCIATED COMPANIES as defined in accounting policy 12 on page 17 shown by principal country of operation Bermuda Group interest in equity capital per cent Accounting date South Africa Minerals and Resources Corporation Limited Mining finance Botswana Anglo American Corporation Botswana Limited Mining finance Canada Anglo American Corporation of Canada Limited Mining finance Luxembourg Park Holdings Limited Investment 20 25 24.8 22.5 Dec Dec Dec Sep Euranglo Pty Limited Investment Switzerland Anmersales AG Marketing of metals United Kingdom Anmercosa Sales Limited Marketing of metals Cleveland Potash Limited Development of potash mine Covenant Industries Limited Marketing and manufacture of chemicals Malaysia Associated Mines Malaya Sendirian Berhad . Mine management 39.2 Ayer Hitam Tin Dredging Limited 16.4 Incorporated in England In addition 17.5 cent held by Tronoh Mines Limited Tin mining Bidor Malaya Tin Sendirian Berhad Tin mining 39.2 The Sungei Besi Mines Limited 6.3 Incorporated in England In addition 25.7 per cent held by Tronoh Mines Limited Tin mining Tronoh Mines Limited Incorporated in England Tin mining 29.7 Portugal Beralt Tin and Wolfram Limited Incorporated in England Wolfram mining 46.3 Dec June Dec Sep Dec Dec CAPE INDUSTRIES GROUP India Rane Brake Linings Limited Manufacture of friction materials Malaysia Don Eastern Sendirian Berhad Manufacture of friction materials New Zealand Don Agencies Limited Manufacture of friction materials and distribution ofautomotive components Sweden Svenska Bromsbandsfabriken AB Manufacture of friction materials where the country of incorporation is different from the principal country ofoperation this is shown beneath the company name 32 ELCTRONICALY FILED - Group Ac ountingAccountingAccounting interest in equity date 2023 Oct capital per cent 18 25 Dec 12:30 PM 37 - Sep RICHLAND 37 Sep - 37.5 Dec 33.9 Sep COMON PLEAS PLEAS - 203CP417599.5 Dec 18.9 Dec 14.6 Jan 32.5 Dec ELCTRONIAY OTHER INVESTMENTS OF 10 PER CENT OR MORE Australia Group interest in equity capital per cent South Africa FILED - Group interest in equity 2023 capital cent Oct Australian Anglo American Limited Mining finance International Pacific Corporation Limited Merchant banking 18 15 Anglo American Corporation of South Africa 39.3 Limited Mining finance 10 12:30 Anglo American Investment Trust Limited 10 PM Diamond investments - Tinnabruich Pty Limited 37 Investment vooruitzicht Gold Mining Company Limited 10 Brazil Anglo American Corporation do Brasil Limitada Gold mining and general prospecting Gold mining Union Corporation Limited Mining finance 10 RICHLAND - France Soci^'t^M'ini^red'Anglade d'Anglade Scheelite mining Republic of Ireland Tara Exploration and Development Company Limited Incorporated in Canada Lead and zinc mining 25 10.8 Union Platinum Mining Company Limited Platinum mining United Kingdom Selection Trust Limited Mining finance Zaire Soci^'t^M'ini^rede Fungurume Copper and cobalt project 11.5 COMON 28.8 PLEAS PLEAS - 14 Rhodesia Anglo American Corporation Rhodesia Limited Industrial finance Singapore Haw Par Brothers International Limited Tin mining and industrial interests 33.5 13.2 Zambia National Milling Company Limited Flour milling 203CP4175924.5 203CP401759 OTHER PRINCIPAL INVESTMENTS South Africa The Argus Printing and Publishing Company Limited Printing and publishing De Beers Consolidated Mines Limited Diamond mining Harmony Gold Mining Company Limited Gold mining Rand Selection Corporation Limited Mining finance United Kingdom The Rio Tinto Corporation Limited Mining finance Zambia Zambian government loans housing - Kariba electric scheme 33 ELECTRONICAL Y Subsidiary Companies The following are the major subsidiaries of the company including those whose activities materially affected the profit or assets of the Charter group during the year Except where otherwise stated each of these companies is wholly owned and all the shares or stock held are either unclassified or classified as ordinary ELCTRONICALY FILED 2023 Country of incorporation Country o incorporation Cape Industries group Finance and investment Oct Cape Industries Limited 66.3 per cent England 3 per cent cumulative preference - shares 100 per cent Industrial and mining Cape Asbestos Fibres Limited 66.3 per cent Marketing of asbestos fibre England Cape Asbestos Insulations Pty Limited 66.3 per cent Asbestos insulation products and friction materials South Africa Cape Asbestos South Africa Pty Limited 66.3 per cent South Africa Administration of group South African mining companies Cape Blue Mines Pty Limited 66.3 cent South Africa Mining ofblue asbestos Cape Boards and Panels Limited 66.3 per cent Insulation board for ship and building construction England Cape Contracts Limited 66.3 per cent England Fire protection thermal and acoustic insulation contracting Cape Distribution Limited 66.3 per cent Distribution ofautomotive components England Cape Insulation Limited 66.3 per cent Insulation products Scotland Cape Universal Claddings Limited 66.3 per cent Asbestos cement products and other building materials England Don International Limited 66.3 per cent England 4.2 per cent cumulative preference - shares 66.3 per cent Manufacture offriction materials Don International S.A. 66.3 per cent Manufacture of friction materials Belgium Egnep Pty Limited 66.3 per cent Mining of amosite asbestos South Africa North American Asbestos Corporation 66.3 per cent United States of America Sale of crude and processed asbestos fibre Trist Draper Limited 66.3 per cent Manufacture of friction materials England Other industrial Elastic Rail Spike Company Limited Railway track fastenings Heatrae Holdings Limited Heating equipment Sadia Limited Domestic electrical appliances and commercial refrigerators England England England Barnato Holdings U.K. Limited Englandoo The British South Africa Company The British South Africa Company Investments Limited Cecil Investments Limited England re) England England Central Mining Finance Limited The Central Mining & Investment Corporation Limited England , O England Centramic South Africa Limited Charmay Limited Chartef Limited Charter Consolidated Finance Limited South Africa Bermuda England Liberia England Charter Consolidated Investments Limited England Charter Consolidated Malaysia Sendirian Berhad Malaysia Malaysia Charter Consolidated North Sea Explorations me) Limited Charter Consolidated Overseas N.V. England~ Cura^ao , Netherlands Antilles Charter European Holdings S.A. Luxembourg The Consolidated Mines Selection Johannesburg Limited Equinox Investments Limited Africa South Africa South Africa Interlink Investments Limited Leonora Investments Limited Nimbus Investments S.A. Canada Gibraltar2 Luxembourg Raven Investments Limited Gibraltar- Shafford Holdings Limited Swaziland Collieries Limited 57.6 per cent England Swaziland Town Properties Limited South Africa Services Anglo Charter International Services Limited 51 per cent Employment services Charter Consolidated Services Limited Administrative and technical services Charter France 50.3 per cent Administration England England France shares in these companies are held directly by Charter the shares in the remaining companies are held through subsidiaries 34 ELECTRONICAL Y @ Analysis of Investments and Investment Income ELECTRONICALY ELCTRONIAY GEOGRAPHICAL FILED PER CENT OF - 2023 INVESTMENTS 1976 1975 PER CENT 1976 1975 INVESTMENT 1976 1975 000s 000s Oct United Kingdom Rest of Europe 18 25,337 31,875 9.9 10.5 6.3 6.0 12:30 12,478 10,876 4.9 3.6 14.1 6.5 12:30 North and South America South Africa PM 46,948 42,387 18.4 13.9 11.9 9.8 100,552 153,217 39.3 50.4 52.6 50.8 - Zambia Rest of Africa South Asia Australia 16,959 16,700 6.6 5.5 2.5 11.5 RICHLAND 22,178 10,045 8.7 3.3 1.8 2.0 9,507 11,476 3.7 3.8 3.9 6.9 - 21,647 27,287 8.5 9.0 6.9 6.5 BY CATEGORY 255,606 303,863 100.0 100.0 100.0 100.0 COMON PLEAS PLEAS - Mining - Finance 139,541 171,974 54.6 56.6 47.4 48.9 Diamonds 19,396 21,488 7.6 7.1 11.6 9.8 CASE Gold 14,933 32,663 5.9 10.7 12.5 13.7 2023CP4001759 Tin and wolfram 7,452 6,039 2.9 2.0 3.2 5.8 203CP41759 Copperand other minerals 36,569 32,835 14.3 10.8 1.0 4.0 Industrial commercial oil etc. 33,530 34,923 13.1 11.5 23.0 16.5 203CP401759 Long term loans 4,185 3,941 1.6 1.3 1.3 1.3 255,606 303,863 100.0 100.0 100.0 100.0 NOTES 1. The analysis geographical and by category is based on the stock exchange value of listed investments and the directors valuation of unlisted investments at 31 March 2. The geographical analysis takes into consideration direct interests and where possible major indirect interests in the areas concerned and is therefore only approximate 35 Interests of the Company ELCTRONICALY The following are brief descriptions of some of the companies in which Charter has an important interest ELCTRONICALY Anglo American Corporation of South Africa Limited Anglo American Corporation of South Africa is the head of an international group of mining industrial and investment companies to which it provides technical and other services Its overall size is estimated at approximately R5,300 million Finance Property Value cent 10 3 100 Income cent ll FILED - I 100 2023 Production by the group's gold mines declined by 14,735 kilo- Oct grams to 285,147 kilograms as a result of lower recovery grades A rise of over 25 per cent in unit working costs more than offset the higher average selling price received and working profit from gold fell by R65.3 million to R583.1 million of which taxation and state's share of profits absorbed R307 million Group production of uranium was only slightly higher than in the previous year but an improvement in sales and prices led to a sharp rise in profit FEATURES OF THE ACCOUNTS Year ended 31 December 1975 R000S Issued share capital in 131,672,300 ordinary shares of 10 cents each and R4,758,750 six per cent cumulative preferred stock 17.926 18 1974 12:30 R000s 12:30 PM - 17,897 from R1.2 million to R5.6 million Capital reserves and share premium 81,285 79,188 Coal sales by group collieries were nearly 10 per cent higher at 23 million tons accounting for about a third of South Africa's total output In spite of a severe increase in costs the combined operating profit rose from R14.5 million to R21.4 million From January 1976 eight major operating collieries in the Transvaal were merged into Anglo American Coal Corporation Limited formerly The Vereeniging Estates Limited which will initially produce about 20 million sales tons of coal a year Revenue reserves 344,970 Loan capital Group profit before taxation Taxation Group profit after taxation minorities and preferred dividends Earnings per ordinary share Dividends ordinary amount - per share 60,128 92,057 4,350 84,428 64.1 cents 43,449 33 cents 296,508 RICHLAND49,546 83,857 4,942 - 75,460 COM N 57.4 cents 38,100 29 cents Anglo American Industrial Corporation Limited AMIC increased its consolidated net profit in 1975 by R12.5 million to R40.9 million and raised its dividend from 57.5 cents to 63 cents a share AMIC's increased earnings were mainly attributable to the substantially higher profits of two of its subsidiaries Boart Inter- Market value of listed investments Directors valuation of unlisted investments Net asset value Net asset value per ordinary share 997,842 235,246 1,142,100 R8.67 1,057,818 PLEAS 218,785 1,218,000 - R9.27 national Limited and Scaw Metals Limited In January 1975 includes listed investments at market value and unlisted investments Barratt's Industries Limited became a wholly owned subsidiary of ai directors valuation Boart International and in May 1975 Stafford Mayer Company South Africa Limited and South African Board Mills Limited became wholly owned subsidiaries of AMIC AMIC's interests in Anglo American Corporation Botswana Limited freight and travel will be broadened by the merging of Freight Services Holdings Limited with companies carrying on similar activities in the Safmarine group The net income before tax of Highveld Steel and Vanadium Corporation Limited rose from R11.2 million to R20.2 million in the year to 30 June 1975 and 203CP41759 Anglo American Corporation Botswana AMBOT in which Charter holds 25 per cent has an interest of approximately 18 per cent in Botswana RST Limited BRST which in turn holds 85 per cent of Bamangwato Concessions Limited the company mining nickel and copper at Pikwe Production at Pikwe had increased reached R14.0 million in the year to 31 December 1975 by December 1975 to 70 per cent of capacity and it is expected 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 that further improvement will be made during 1976 as recent modifications are brought on line Continuing steps are being taken to correct the operating difficulties in the metallurgical plant To enable BRST to continue financing the project in terms of the completion guarantees its major shareholders are providing substantial loans An analysis by primary source of the corporation's investments at 31 December 1975 is shown below Gold Value per 41 Income cent 47 AMBOT also has an 80 per cent holding in Morupule Colliery Proprietary Limited West End Property Company Proprietary Limited a wholly owned subsidiary of AMBOT owns a multistorey office building in Gaborone FEATURES OF THE ACCOUNTS Diamonds 13 15 Year ended 31 December 1975 1974 Copper Coal Platinum Other mining Industrial 3 4 R000s R000s 5 2 Issued share capital in shares R1 R1 each 200 200 2 1 Share premium 5,568 5,568 5 2 Consolidated profit after taxation 18 17 minorities and extraordinary item 58 284 loss 36 Anglo American Corporation do Brasil Limitada Anglo American Corporation do Brasil is a member of the Anglo American Corporation group established to invest in the mining industry and to participate in mineral prospecting It conducts a widespread prospecting programme and is currently investigating in depth a gold prospect at Jacobina in Bahia In 1975 it acquired a 49 per cent interest in Mineracao Morro Velho S.A. which owns a group of producing gold mines in the state of Minas Gerais Anglo American Corporation of Canada Limited The company AMCAN which is a member of the Anglo American Corporation group holds the bulk of the Canadian assets of the Charter Consolidated Anglo American Corporation and De Beers groups These include direct and indirect investments in copper zinc cadmium gold silver potash chemicals oil and gas and prospecting operations AMCAN's major asset is its holding slightly increased during the year in Hudson Bay Mining and Smelting Co. Limited whose earnings dropped substantially in 1975 due to higher operating costs and taxes and weak metal markets In September 1975 amcan sold its 40 per cent interest in Francana Development Corporation Ltd and acquired from that company 2,205,012 shares in Francana Oil & Gas Ltd. During the year AMCAN also disposed of its holdings in Consumers Oil Limited and Agnew Lake Mines Limited At 31 December 1975 AMCAN's principal investments were Percentage Ambay Services Limited Francana Oil & Gas Ltd direct 50.0 28.3 Hudson Bay Mining and Smelting Co. Limited Lytton Minerals Limited Whitehorse Copper Mines Ltd 38.5 33.9 20.6 FEATURES OF THE ACCOUNTS Year ended 31 December 1975 000s Issued capital stock in 6,319,614'A 6,319,614'A and 3,609,931 B shares of no par value Revenue reserves 101,085 49,703 Income less expenses Provision for taxation 6,731 618 Gain on realization of investments less provision for losses Share ofincomeofeffectively controlled companies Net income 1,386 2,482 5,702 Net income per share Dividends - amount 57 cents 3,972 - per share Market value oflisted investments Book or equity cost of unlisted investments 40 cents 79,821 7,148 Net asset value per share 8.76 after extraordinary item 1974 000s 101,085 48,077 4,554 3 86 7,309 11,946 120 cents 3,972 40 cents 50,420 19,941 8.24 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 per cent of De Beers Consolidated Mines Limited and shareholdings in certain 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 northwest of Kimberley and the Koffiefontein mine in the Orange Free State and is mining on the farms Annex Kleinzee and Dreyers Pan in Namaqualand De Beers Botswana Mining Company Proprietary Limited owned jointly by De Beers and the Botswana government operates the Orapa mine and is opening the nearby Letlhakane mine which is expected to be commissioned by the end of 1976. Production at 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 is expected to start in late 1976 The De Beers company's mining subsidiaries are The Consolidated Diamond Mines of South West Africa Proprietary Limited and Premier Transvaal Diamond Mining Company Proprietary Limited which with Sea Diamond Corporation Proprietary Limited became wholly owned during the year Other subsidiaries of De Beers include The Diamond Corporation Proprietary Limited a diamond purchasing company and The Diamond Purchasing and Trading Company Proprietary Limited marketing gem and near diamonds in which ANAMINT has a direct shareholding In January 1976 ANAMINT increased its holding in The Diamond Trading Company Proprietary Limited to 50 per cent significantly enlarging the company's interest in diamond marketing Total sales by the Central Selling Organisation in the year to 31 December 1975 fell by 15 per cent to 1,066 million R793 million though there was a continued recovery during the year from the depressed levels in the second half of 1974. The consolidated net profit of De Beers rose from R201.3 million to R220.7 million but this included the benefit of a recurring tax adjustment of R29.6 million De Beers also has important mining financial and industrial investments through its 39.8 per cent holding in Rand Selection Corporation Limited and through its subsidiaries De Beers Holdings Proprietary Limited and De Beers Industrial Corporation Limited In September 1975 anamint changed its year end to 31 March to bring to account De Beers interim and final dividends for that company's latest financial year to 31 December FEATURES OF THE ACCOUNTS Fifteen months ended 31 March 1976 R000s Issued share capital in 10,000,000 ordinary shares of 50 cents each and 2,500,000 six per cent cumulative preference shares of R2 each Revenue reserves 10,000 46,071 Year ended 31 December 1974 RO00s 10,000 26,917 37 ELECTRONICAL Y ELECTRONICALY ELCTRONIAY FILED - 2023 Oct 18 12:30 12:30 PM - RICH- LAND COMON PLEAS - 203CP401759 203CP401759 ELETRONICAL Y Fifteen months ended 31 March 1976 R000s Profit before taxation 50,162 Taxation Profit after taxation and preference dividends 208 49,654 Earnings per ordinary share Dividends ordinary - amount - per share Market value of listed investments Directors valuation of unlisted 497 cents 30,500 305 cents 308,505 investments Net asset value per ordinary share 50,425 R35.66 Year ended 31 December 1974 R000s 29,967 226 29,441 294 cents 29,000 290 cents 251,224 40,972 R27.68 Australian Anglo American Limited Australian Anglo American AAA was formed in 1971 as holding company through which Charter Consolidated together with the Anglo American Corporation group and associates would seek new business opportunities in the Australian mining industry and undertake prospecting programmes in Australia and neighbouring regions AAA are managers of the joint venture project at the Blue Spec gold mine in Western Australia where commissioning of the plant on low grade development ore commenced in April FEATURES OF THE ACCOUNTS Year ended 30 June 1975 000s Issued capital in ordinary shares of 50 cents each 18,000 Share premium Consolidated loss after taxation 2,970 3,994 1974 000s 18,000 2,970 767 profit Beralt Tin and Wolfram Limited The company owns 80.55 per cent of Beralt Tin & Wolfram Portugal S.A.R.L. which operates a wolframite deposit in central Portugal to produce wolfram concentrates and small tonnages of tin and copper concentrates The wolfram market remained stable during the year and 1,882 metric tons of concentrate were sold at favourable prices against 3,032 metric tons in the previous year when heavy destocking occurred The Portuguese company has declared dividends for 1974 and 1975 but Portuguese exchange control permission is required for remittance of funds to the parent company A dividend of 1.75p per share was paid by Beralt to its shareholders on 31 December 1975 out of the proceeds of the first instalment of its share of the 1974 dividend FEATURES OF THE ACCOUNTS Year ended 31 December 1975 000s Issued share capital in ordinary shares of each Capital reserve 2,869 334 1974 000s 2,869 270 Year ended 31 December Revenue reserves Consolidated profit before taxation Taxation Consolidated net profit attributable to Beralt before extraordinary items Earnings per share Extraordinary items Dividend amount per share ELTRONICALY 1975 1974 000s 2,225 000s 1,559 FILED - 1,427 3,066 426 730 6.36p 195 201 835 2023 1,690 14.72p Oct 169 18 nil 1.75p nil 12:30 PM - Blyvooruitzicht Gold Mining Company Limited RICHLAND The company is a member of the Barlow Rand group operating a gold mine on the far west Witwatersrand which recovers uranium oxide silver and osmiridium as products Although underground production during the year to 30 June 1975 was adversely affected by a shortage of labour the tonnage COM ON milled rose slightly A decline in yield and the resultant fall in gold produced together with higher working costs was more than offset by a 25 per cent rise in the average price received for gold and the working profit from gold increased Profit from uranium also increased due to rising demand and an improvement in the PLEAS PLEAS price received Total working profit was R67.7 million compared with R64.7 million for the previous year - FEATURES OF THE ACCOUNTS Year ended 30 June 1975 R000s Issued share capital in shares of 25 cents each 6,000 Capital reserves Revenue reserves Yield per metric ton gold Profit before taxation Taxation and state's share of profits Profit after taxation and state's share of profits Dividends- amount - per share 73,682 9,533 14.40 grams 70,462 39,608 30,854 24,000 100 cents 1974 R000s 6,000 203CP4175969,867 6,701 16.34 grams 66,092 38,490 27,602 21,600 90 cents Cape Industries Limited Based in the United Kingdom the Cape Industries group manufactures building and insulation products and friction materials undertakes insulation contracting and distributes components for the automotive industry It also mines asbestos fibre in South Africa and sells it world wide The turnover of the group rose from 81.3 million in 1974 to 107.0 million in 1975 while the profit before tax increased from 3.9 million to 10.2 million The principal contribution to the improvement in profit came from the mining division which 38 ELCTRONIAY increased its tonnage mined and benefited from strong demand and FEATURES OF THE ACCOUNTS higher prices Year ended 30 September 1975 1974 FILED The building and insulation division achieved a marked increase in trading profit the continued demand for fire protection materials and insulation products more than offsetting the weakness of the general construction market The profit of Cape Contracts Limited which was enlarged by the acquisition early in 1975 of the insulation contracting business of Newalls Insulation Company Limited was more than double that for the previous year Issued share capital in ordinary shares of each Shareholders loans Reserves Consolidated profit before taxation Taxation Consolidated profit after taxation 000s 000s FILED - 92 92 2023 306 4,946 306 3,332 Oct 3,793 1,714 2,272 931 18 Notwithstanding the troubles in the motor industry the companies in the automotive and engineering division increased their profits except for Don International Limited formerly Small and Parkes minorities and extraordinary items Dividends 1,631 165 796 12:30 210 12:30 PM Limited whose profit was affected by weakness in original equip- ment markets and by reorganization costs Cape Distribution Harmony Gold Mining Company Limited - Limited having completed its initial programme of acquisitions successfully consolidated its position At 31 December 1975 the assets of the group were valued at over The company and its wholly owned subsidiaries members of the Barlow Rand group mine for gold in the Orange Free State Uranium oxide sulphuric acid silver osmiridium and pyrite are 56 million compared with 33 million at the end of 1974. The recovered as products RICHLAND increase reflected retained profits from 1975 of 4.1 million the proceeds of a rights issue in October 1975 of 4.9 million and an Operations during the year to 30 June 1975 were affected by the shortage of labour but the ore milled was only marginally less upward revaluation of the group's principal properties by than for the previous year Working costs rose steeply due to 10.3 million following a professional valuation substantial increases in wages and in the cost of stores and materials but as result of the higher average price received for gold working COM N FEATURES OF THE ACCOUNTS revenue from gold silver and osmiridium increased by R13.1 Year ended 31 December 1975 1974 million to R112.0 million Profits from uranium pyrite and Issued share capital in 24,003,260 ordinary shares of 25p each and 000s 000s sulphuric acid rose to R2.4 million compared with R0.2 million in 1974 PLEAS - 250,000 3 per cent cumulative FEATURES OF THE ACCOUNTS preference shares of each 6,251 4,643 Year ended 30 June 1975 1974 Reserves and share premium 30,315 15,900 R000s R000s Loan capital 6 per cent and 7 per cent debenture stocks and 7 per cent unsecured loan stock Consolidated profit before taxation Taxation Profit after taxation and extraordinary items Earnings per ordinary share Dividends ordinary - amount - per share 6,059 10,195 4,080 5,610 29.6p 1,488 6.6795p Issued share capital in shares of 50 cents each 13,442 13,442 6,059 Capital reserves 119,681 140,342 140,342 203CP41759 3,884 1,303 2,332 14.0p Revenue reserves Yield per metric ton gold Consolidated profit before taxation and state's share of profits Taxation and state's share of profits 22,276 6.01 grams 50,033 13,177 16,143 6.38 grams 51,403 23,429 989 Consolidated profit after taxation 5.6267p and state's share of profits 36,856 27,974 Dividends amount - per share 20,701 77 cents 15,324 57 cents Covenant Industries Limited Charter Consolidated and associates with Imperial Chemical Industries Limited jointly own Covenant Industries which operates in the chemical and allied industries field mainly in Kenya Nigeria Tanzania and Zambia It handles the merchanting of ICI products and the local formulation of some chemicals and the manufacture of paints and of explosives Consolidated profit before tax rose from 2.3 million in the year to September 1974 to 3.8 million in 1975. During the year difficult trading conditions were experienced in east and central Africa but these were more than offset by the favourable opportunities presented in Nigeria Haw Par Brothers International Limited Incorporated in Singapore the company operates in Singapore Malaysia Hong Kong and Thailand Its principal direct interests are pharmaceuticals merchanting and general trading including insurance merchant and investment banking ship leasing chartering and marine services The principal indirect activities include substantial interests in London Tin Corporation Limited the largest tin mining group in the world Island and Peninsular Development Berhad a Malaysian company whose main activities are in palm oil rubber plantations and property development and Cheung Kong Holdings Limited a large Hong Kong property company 39 Minerals and Resources Corporation Limited Minerals and Resources Corporation MINORCO a member of the Anglo American Corporation group is incorporated in Bermuda with interests in mining prospecting oil and industry It participates in new international business of the Anglo American Corporation and Charter Consolidated groups In August 1974 MINORCO as part of its expansion and diversification increased its equity interest in Engelhard Minerals & Chemicals Corporation EMC to about 30 per cent In 1974 EMC more than doubled its earnings from 52.5 million to 110.2 million and Minorco's dividend income from this source totalled 6.1 million In 1975 EMC's earnings further improved to 114.7 million MINORCO has a significant interest in the Zambian copper mining industry through its holding of just under 50 per cent in Zambia Copper Investments Limited ZCI Dividends from ZCI's two principal investments Nchanga Consolidated Copper Mines Limited 49 per cent held and Roan Consolidated Mines Limited 12.25 per cent held were sharply reduced by the lower copper price prevailing during the year to June 1975 and ZCI was also affected by Zambia's foreign exchange difficulties which prevented externalization of dividends declared by the mining companies for their financial years 1974-5 ZCI's profit after tax fell from 54.8 million to 15.9 million and dividends were reduced from 40 cents to four cents per share In June 1975 MINORCO acquired a stake in the capital of Inspiration Consolidated Copper Company ICC an integrated natural resources company based in the United States whose principal activity is the production and sale of copper ICC's net earnings were 9.5 million in 1974 but as a result of the depressed price of copper this was turned a into loss of 3.9 million in 1975 Through Trend International Limited MINORCO has a 43 per cent interest in Trend Exploration Limited an international oil and gas exploration company whose major asset is a 27 per cent interest in a production contract in Indonesia Net earnings of the Trend group for the year to 31 December 1975 rose to 10.3 million FEATURES OF THE ACCOUNTS Year ended 30 June 1975 Issued share capital in 31,668,899 ordinary 41,910,618 A ordinary and 8,572 deferred shares of 1.40 each 000s 103,023 Capital reserve and share premium Loan capital Prospecting reserve Revenue reserves 199,738 5,017 4,677 47,437 Consolidated profit before taxation Foreign taxation Consolidated profit after taxation Market valueof listed investments Book cost of unlisted investments 11,893 476 11,417 279,638 81,796 Dividends ordinary amount - per share 4,434 14 cents 1974 000s 44,336 120,236 5,035 46,868 29,769 118 29,651 62,807 51,404 22,168 70 cents Year ended 30 June Dividends A ordinaamorunyt share Net asset value 1975 000s 5,892 14.06 cents 408,900 1974 ELCTRONIALY FILED 000s _ - 2023 224,700 Oct Rand Selection Corporation Limited 18 The corporation group is a finance a member of the Anglo American Corporation and investment company with shareholdings in 12:30 PM gold diamond copper and other base metals coal platinum insurance finance industrial and property companies Within - this wide spread of investments its main strength is in gold RICHLAND The corporation's investment income for the year to 30 September 1975 rose to R57.9 million compared with R49.4 million in 1974 largely as a result of higher dividends from its gold interests in the RICHLAND first half of the year The diamond and platinum markets were RICHLAND affected by deteriorating world economic conditions and divi- - COMMON dends from platinum were sharply reduced Included for the first time in the corporation's financial results are COMMON those for a full year of Rand Selection Insurance Holdings Limited COMMON RSI formerly Schlesinger Insurance and Institutional Holdings Limited - the subsidiary acquired in 1974 whose principal interest is in African Eagle Life Assurance Society Limited The assets of PLEAS the African Eagle group increased from R355 million in June 1974 PLEAS to R417 million in September 1975 and its combined premium and PLEAS investment income rose to a record R124 million During the year the RSI group exchanged its holding in Western Bank Limited for CASE shares in Barclays National Bank Limited the largest banking CASE organization in southern Africa in which the corporation and its # associates became the principal South African shareholders 203CP41759 During the year the corporation acquired a significant interest in the new Elandsrand Gold Mining Company Limited both directly and through Anglo American Gold Investment Company Limited On 30 July 1975 the corporation issued 30 million fully paid 2023CP401759 preference shares of R1 each to help finance its participation in new 2023CP401759 investment opportunities Since the end of the financial year 475,873 ordinary shares of 50 cents each have been issued to minority shareholders in South African Townships Mining and Finance Corporation Limited which became a wholly owned subsidiary from 1 April 1975 FEATURES OF THE ACCOUNTS Year ended 30 September 1975 R000s Issued share capital in 41,774,279 ordinary shares of 50 cents each and 30,000,000 cumulative redeemable preference shares of R1 each Capital reserve and share premium Revenue reserves 50,887 212,538 114,777 Loan capital Group profit before taxation Taxation 59,143 49,659 49 1974 R000s 20,848 211,631 95,973 57,206 46,302 756 40 ELCTRONICALY Year ended 30 September Group profit after taxation and minorities 1975 R000s 48,489 ELCTRONICALY 1974 considerably lower than in 1974 owing to a fall in the average price FILED R000s received for copper a and rise in operating costs RTZ holds 66.2 per cent of Brinco Limited whose principal interest 43,911 is in mineral exploration in North America Through its wholly - 2023 Earnings per share Dividends ordina amr ouy nt 114.5 cents 31,536 113.6 cents 27,016 owned subsidiary Rio Tinto South Africa Limited RTZ has a 38.9 per cent holding in the copper producer Palabora Mining ~ per share Market value oflisted investments Directors valuation ofunlisted investments 75 cents 677,173 118,235 70 cents Company Limited and a 45.2 per cent holding in R^ssingUranium 784,319 Limited whose open pit operation is expected to come to full Oct production in 1976. The wholly owned subsidiary R.T.Z. Borax 18 100,982 Limited with interests in borax potash and industrial and Net asset value Net asset value per sharet 751,235 R17.98 12:30 850,060 R20.39 agricultural chemicals maintained its earnings in 1975 Also wholly owned by RTZ R.T.Z. Industries Limited formerly PM adjusted to reflect that profits from new subsidiaries were received R.T.Z. Europe Limited is the holding company for many of RTZ's for only a portion of the year light industrial activities particularly in the United Kingdom and - includeslisted investments at market value and unlisted investments at directors valuation the rest of Europe Its chief interests are in products made of aluminium steel glass and wood and in tin smelting and RICHLAND engineering The RTZ Industries group had a generally satisfactory year except for R.T.Z. Pillar Europe Limited which incurred sub- stantial losses in Germany and France and is to reorganize its European interests - The Rio Tinto Corporation Limited Through membership of the Hamilton Brothers consortium COM ON The Rio Tinto Corporation RTZ and 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 products borax coal copper gold R.T.Z. Oil and Gas Limited a wholly owned subsidiary of RTZ has a 25 per cent interest in the Argyll field the first producing oil field in the United Kingdom sector of the North Sea industrial and agricultural chemicals iron ore lead oil silver FEATURES OF THE GROUP ACCOUNTS PLEAS specialty steels tin uranium and zinc The much lower copper price prevailing in 1975 had a sharp impact on the group's results and profit before tax showed a reduction of 125 million compared with 1974. Of that reduction approximately 100 million was attributable to the copper operations at Bougainville Palabora and Lornex In March 1975 RTZ raised 33 million by means of a rights issue Year ended 31 December Issued share capital of RTZ in 237,275,815 ordinary shares of 25p each 12,667,659 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 1 each 1975 000s 73,300 PLEAS 1974 000s - 66,100 Conzinc Riotinto of Australia Limited CRA 80.6 per cent owned by RTZ is a holding company for the RTZ group's interests in Australia New Zealand and Papua New Guinea The earnings of Bougainville Copper Limited 53.6 per cent owned by CRA for 1975 were substantially lower than for 1974 primarily as result of Capital reserves and share premium Revenue reserves Loan capital Profit before taxation Taxation 174,400 309,800 326,100 153,700 68,700 203CP41759130,800 265,400 256,100 279,100 135,800 the considerable decrease in the realized price of copper and a Net profit attributable to RTZ significant escalation in operating costs Hamersley Iron Pty shareholders before extraordinary Limited 54 per cent owned by CRA improved its trading results in 1975 when higher realized prices and increased productivity items Earnings per ordinary share of RTZ 38,600 15.57p 62,500 27.91p outweighed the rise in production costs Earnings of Australian Extraordinary items 22,300 7,200 Mining & Smelting Limited 73.5 per cent owned by CRA were reduced because of a decline in sales lower prices for lead and Dividends amount - per ordinary share 13,300 5.42p 10,100 4.97p adverse exchange rate movements Comalco Limited 45 per cent owned by CRA with interests in bauxite alumina and alu- minium improved the value of its sales but prices did not fully compensate for higher costs Interest charges and increased bauxite royalties also had an adverse effect Selection Trust Limited The company and its subsidiaries form a British mining finance group with net assets valued at 31 March 1975 at 176 RTZ has a 51.4 per cent interest in Rio Algom Limited a Canadian million Its main business is investment and participation in company with interests in copper and uranium mining and in mining enterprises and the conduct of its own mining and stainless and specialty steels During 1975 Rio Algom raised capital minerals exploration ventures giving rise to interests in a wide for its Elliot Lake uranium mining operations and for new steel range of metals and minerals principally in Australia North production facilities and increased to 66.5 per cent its stake in America and Africa and to interests related to North Sea oil and Lornex Mining Corporation Ltd whose pre earnings were gas 41 During the year ended 31 March 1975 the company expanded within the United Kingdom by acquiring the whole of the issued share capital of Amari Limited formerly 18.3 per cent held a group of companies primarily engaged in metals stockholding and distribution and by effecting a merger with Consolidated African Selection Trust Limited CAST in which the company's previous interest was 36.5 per cent Although CAST's income continues to be derived mainly from its interests in diamond mines in Ghana and Sierra Leone it has in recent years widened its interests in activities not connected with diamonds particularly in the United Kingdom These include quarrying operations and services to the offshore gas and oil industry In the Netherlands sector of the North Sea the Noordwinning group continued to develop its 13 gas field in which the company has an interest of 5.55 per cent and production of gas began in March 1976. In February 1976 an outline plan was announced for the development of the Agnew nickel deposit in Western Australia on a limited scale Subject to satisfactory financing arrangements and receipt of the necessary government approvals in Australia the Agnew joint venturers expect to be ready to proceed with the project by August 1976 The company has a significant interest in AMAX Inc. a diversified natural resources company operating internationally As a result of lower metal prices and reduced demand sales by AMAX for the year to 31 December 1975 declined to 962 million from 1,167 million in the previous year Net earnings were 134.4 million compared with 144.5 million in 1974 Tsumeb Corporation Limited in which the company has a direct interest as well as an indirect interest through AMAX owns mines in South West Africa producing mainly copper and lead Depressed metal prices and higher costs resulted in Tsumeb recording a net loss of R158,000 for its year ended 31 December 1975. Net income for the previous year was R14.5 million Metal sales fell by R17.7 million to R55 million The principal business of Western Mining Corporation Limited is nickel mining and processing in Western Australia Although sales of nickel for the year to 30 June 1975 declined by 5,000 metric tons to 39,000 metric tons sales revenue from nickel and products increased by 21.8 million to 123.5 million as a result of world price increases a devaluation of the Australian dollar Con- solidated net profit for the first haol f tf he year ending 30 June 1976 was AS5.5 million compared with 9.8 million for the first half of the previous year Selection Trust's other principal equity investment interests are in Unisel Gold Mines Limited a company in the Union Corporation group engaged in the development of a gold mine in the Orange Free State and Southvaal Holdings Limited The total revenue of the group for the year to 31 March 1975 rose from 13.7 million to 18.4 million and included improved operating profits from the expanding Mount Newman iron ore project in Western Australia and the company's share of earnings from the first full year's work of its craneship in the North Sea In the halfyear to September 1975 revenue declined to 8.6 million from 10.4 million in the year to September 1974 owing to lower operating profit and reduced dividend income Combined with higher interest and other expenditure this resulted in a fall in the profit after taxation from 4.0 million to 1.9 million In May 1976 the company raised 20 million by means of a rights issue of ordinary shares to facilitate foreign currency borrowings for the Agnew and Detour projects and to meet capital requirements in the United Kingdom ELCTRONICALY FILED - 2023 FEATURES OF THE ACCOUNTS Year ended 31 March 1975 000s Issued share capital in 23,172,678 ordinary shares of 25p each and 24,444 ordinary shares of 25p each 5.625p paid Capital reserves and share premium Revenue reserves 5,794 36,285 10,757 Consolidated profit before taxation Taxation Consolidated profit after taxation and deduction of minority interests and acquisition profits Earnings per share Dividends - amount 10,565 4,490 5,080 24.9p 3,105 - per share Net assets at book value 14p 52,836 at market value or directors valuation 176,229 Net asset value per share 7.60 including net assets of both CAST and Amari Oct 1974 18 000s 12:30 12:30 PM 5,100 - 25,421 9,628 RICHLAND9,802 3,751 - 5,269 25.8p 2,621 12.8505p 40,149 COM N 145,807 7.15 PLEAS - Tara Exploration and Development Company 203CP41759 Limited The company which is incorporated in Canada is engaged in mineral exploration in the Republic of Ireland through its wholly owned subsidiary Tara Prospecting Limited The company's major subsidiary Tara Mines Limited 75 per cent 2023CP4001759 owned having secured the necessary state mining lease is carrying forward the development of a lead mine at Navan in the Republic of Ireland Estimated total costs of bringing the mine to production are 150 million and the company has recently completed arrangements for the senior financing of the project Start is scheduled for the spring of 1977 and production is scheduled to build up to an annual rate of 500,000 short tons of zinc and lead concentrates Tronoh Mines Limited group Tronoh Mines and its subsidiary Bidor Malaya Tin Sendirian Berhad operate mines in Malaysia producing tin and products in concentrate form Production of tin concentrate fell from 3,077 metric tons in 1974 to 2,582 metric tons in 1975. The reduc- tion in the group's profitability was due to the drop in production and the lower tin prices prevailing in 1975 42 Associated companies are Ayer Hitam Tin Dredging Limited and The Sungei Besi Mines Limited in Malaysia and Aokam Tin Berhad in Thailand all of which are tin mining companies FEATURES OF THE ACCOUNTS Year ended 31 December 1975 000s Issued share capital in shares of each Capital reserves and share premium Revenue reserves 2,579 1,942 4,090 Group profit before taxation Taxation Group net profit attributable to Tronoh before extraordinary items Earnings per share Extraordinary items Dividends amount - per share 2,167 1,158 878 8.5p 123 443 4.29p 1974 000s 2,579 1,900 3,532 4,423 2,430 1,533 14.9p 231 415 4.02p FEATURES OF THE ACCOUNTS Year ended 31 December 1975 R000s Issued share capital in ordinary shares of 6.25 cents each Capital reserve including share premium Revenue reserves 3,631 79,463 78,499 Loan capital 6 per cent registered unsecured notes 1974/83 Consolidated profit before taxation Taxation Consolidated profit after taxation Earnings per share Dividends - amount - per share Market value oflisted investments Directors valuation of unlisted 2,800 36,481 1,617 34,864 60 cents 24,402 42 cents 310,898 investments Net asset value 90,042 418,473 Net asset value per share R7.20 ELECTRONICAL Y ELECTRONICALY ELCTRONIAY1974 FILED R000s FILED - 3,631 79,358 2023 Oct 69.540 3,200 18 42,832 12:30 4,085 38,747 12:30 67 cents 24,402 PM - 42 cents 426,374 RICHLAND 71,449 514,050 R8.85 - Union Corporation Limited Union Corporation is a mining finance company whose main interests are in the South African gold mining industry and in mining and refining ofplatinum nickel and copper Other interests of the group include property construction shipping and paper packaging and printing In South Africa it administers two investment companies with mining finance and industrial portfolios It also explores for new sources of metals and minerals and for oil and natural gas At the gold mines in the group working costs per ton milled rose by 26 per cent due mainly to substantial wage increases However the average price received for gold improved from R3,340 to R3,655 per kilogram largely offsetting the higher costs and enabling four of the group's seven producing gold mines to raise their dividends Development continued at Unisel Gold Mines Limited in the Orange Free State where the capital required to bring the mine to production in 1978 is now estimated at R49 million The reduced level of industrial demand for platinum group metals during 1975 resulted in lower prices and in fall in sales by Impala Platinum which has reduced its annual production rate to 600,000 ounces of platinum Although there was an increase in the corporation's dividend income from gold and from its South African industrial interests this was more than offset by the decline in receipts from its platinum and copper investments Total dividend income accordingly decreased by R1.1 million to R32.6 million The fall in the market value of listed investments was due primarily to the decline in gold and mining financial share prices during 1975 Union Platinum Mining Company Limited The company's revenue income from Rustenburg owns 37.3 per cent consists almost Platinum Mines entirely of dividend Limited of which it The volume of platinum sales in Rustenburg's financial year ended August 1975 was slightly lower than in 1974 although the gross value of all metals sold was two per cent higher Interest charges and a major escalation in costs in spite of improved productivity resulted in a decrease in the profit after tax from R56.9 million to R47.3 million and the dividend was substantially reduced from R21.84 to R5.45 per share In February 1975 Rustenburg announced a cutback in production of approximately 25 per cent because of the decline in demand for platinum but production is now being stepped up with a view to increasing saleable stocks FEATURES OF THE ACCOUNTS Year ended 31 October 1975 R000s Issued share capital in shares of 10 cents each 4,570 Capital reserves Revenue reserves 35,807 51 Profit before taxation 2,307 Taxation Profit after taxation 14 2,293 Dividends amount 2,267 - per share 4.96 cents 1974 R000s 4,570 35,807 25 9,340 9 9,331 9,327 20.41 cents COMON PLEAS - 203CP401759 203CP401759 43 ELL General Information ELL Directors interests The following are the interests of the directors of the company who held office on 31 March 1976 as notified to the company in terms of the Com- panies Act 1967 DIRECTORS FULLY PAID SHARES OF 25p EACH 1 April 1975 31 March 1976 S. Berning P. C. D. Burnell appointed G. A. Carey N. Clarke 3 June 197n5 il 100 100 100 100 100 100 100 H. Collins 100 100 H. Dent 1.155 1,155 H. Fraser 100 100 J. O. Hambro 1,131 1.131 1,745 1.745 M. B. Hofmeyr N. K. Kinkead 100 100 100 100 H. F. Oppenheimer Sir Philip Oppenheimer B. W. Pain G. W. Relly 5.000,100 5.000,100 9.798 100 * 500 100 5,000,100 5,000,100 9,798 100 500 100 G. Richardson 100 100 S. Spiro L. G. Stopford Sackville H. J. Stucke appointed 1 January 197n6 il M. W. Thomas 100 4,750 100 100 4,750 100 100 W. D. Wilson 100 100 ALTERNATE DIRECTORS R. J. Armitage 222 nil G. Hatch 222 nil M. W. Heald 222 nil F. J. A. Howard appointed 20 January 1976 nil nil A. E. Oppenheimer A. J. W. Owston 22 nil 22 nil these interests are beneficially owned the remainder are not beneficially owned of which 5,000,000 being shares held by a body corporate are notified pursuant to section 28 of the Companies Act 1967 Of these directors and alternate directors the following had beneficial interests in the partly paid shares of the company issued under its share incentive scheme the effect of which was to enable executive directors and senior employees to subscribe for shares which after a qualifying period could be fully paid up at a price determined at the time of subscription N. Clarke N. K. Weekes B. W. Pain G. Richardson L. G. Stopford Sackville R. J. Armitage G. Hatch M. W. Heald A. J. W. Owston PARTLY PAID SHARES OF 25p EACH 1 April 1975 31 March 1976 7,500 12,500 12,500 7,500 12,500 12,500 10,000 10,000 10,000 7,500 10,000 7,500 3,500 5,000 3,500 5,000 6,000 6,000 Mr R. H. Dent also had a beneficial interest in 4,000 and 4,750 ordinary shares of 25p each in Cape Industries Limited a subsidiary of the company at 1 April 1975 and 31 March 1976 respectively Between the end of the financial year and 24 May 1976 being one month prior to the date of the notice of annual general meeting Mr N. K. KinkeadWeekes disposed of his interest in 100 fully paid shares of the company No other change was notified in any of the abovementioned interests There were no contracts or arrangements subsisting during the financial year which require to be disclosed in terms of section 16 of the Companies Act 1967 as interpreted by the Council of The Stock Exchange Substantial shareholding Anglo American Corporation of South Africa Limited and its associated TRONICALY companies held an interest of 36.1 per cent in the issued share capital of the company at 24 May 1976 Taxation FILED - i Capital gains tax 2023 The market price of the company's shares on 6 April 1965 was Registered shares - 98.75p Shares represented by renounceable letters of allotment 100p Oct Share warrants to bearer - 100p ii The company is not a close company within the provisions of the Income and Corporation Taxes Act 1970 and this position has not changed since 18 the end of the financial year Turnover 12:30 PM The following is an analysis of the turnover shown in note 4 on the accounts and the amount of profit attributable to each different class of business undertaken by the group's manufacturing subsidiaries - Contribution to group trading Building and insulation products RICHLAND Turnover 000s 52,351 profit before taxation 000s 3,994 - Automotive and engineering products 28,740 1,355 Mining and sale ofasbestos fibre 29,081 6,863 Railway track fastenings mine roof bolting systems galvanizing etc. Heating and catering equipment Coal mining 12,857 9,656 743 1,645 587 122 COMON 133,428 14,566 PLEAS Deduct sales between different classes of business 3,133 _ PLEAS - 130,295 14,566 Geographical analysis of turnover and trading profit Turnover 00Qs Trading profit 000s United Kingdom Rest of Europe Australasia and South Asia Africa and Middle East North and South America 77,224 6,515 203CP41759 23,297 11,400 10,687 7,687 130,295 584 950 6,060 457 14,566 Exports The aggregate value of goods exported by the group's United Kingdom manufacturing subsidiaries during the year was 15,795,000 Number and remuneration of employees The average number of employees per week of the company and its subsidiaries working wholly or mainly in the United Kingdom was 9,935 during the year The aggregate amount of the remuneration paid to such employees during the year was 30,618,000 Political and charitable contributions The company's subsidiaries made contributions for political purposes during the year totalling 12,000 consisting of payments of 10,000 to The City and Industrial Liaison Council 1,000 to British United Industrialists and 1,000 by Cape Industries Limited to the Conservative and Unionist Party Contributions for charitable purposes made by the company and its subsidiaries during the year totalled 48,000 44 ELCTRONIAY Proc^'durepermettant aux d^'tenteursde certificats Procedure for holders of share warrants to bearer FILED d'actions au porteur d'assister ^ une assembl^'eg^'n^'rale to attend a general meeting Les d^'tenteursde certificats d'actions au porteur d^'sirantassister Holders of share warrants to bearer wishing to attend as members - 2023 en leur qualit^'de membre ^ une assembl^'eg^'n^'ralseont tenus de d^'poserleurs certificats d'actions trois jours ouvrables francs au at a general meeting must deposit their share warrants at least three clear normal business days before the meeting at the offices of the moins avant la date de l'assembl^'e au bureau du directeur du company's registrars in the United Kingdom or any of the com- registre de la soci^'t^a ' u Royaume ou ^ ceux des agents de la pany's overseas paying agents Oct soci^'t^^' l'^'tranger The directors may accept lieu of the deposit of a share warrant a 18 Les administrateurs acceptent qu'^ la place du certificat d'actions certificate from an authorized depositary or other approved 12:30 soit d^'pos^'uene attestation d^'livr^'pear un d^'positaireautoris^' ou par toute autre personne d^'clarant avoir re^u le d^'p^tdu person to the effect that the share warrant has been deposited with him The authorized depositary or approved person must give an PM certificat d'actions Le d^'positaire autoris^' ou la personne undertaking not to surrender the share warrant to the depositor habilit^'e doit s'engager ^ ne remettre le certificat d'actions au except against return of the certificate of deposit and the under- - d^'posantque contre remise de l'attestation de d^'p^ett d'engage- taking ment The company will deliver to the person depositing a share warrant RICHLAND 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 ses nom et adresse de m^"meque le nombre d'actions 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 or - repr^'sent^'par le certificat correspondant Cette carte lui per- by proxy at a meeting COM ON mettra de ce fait d'assister et de voter en personne ou par mandataire ^ une assembl^'eg^'n^'rale des formulaires peuvent ^"treobtenus aupr^sdes bureaux indiqu^'s dessus forms are available from the abovementioned offices Copies of the conditions governing share warrants to bearer are available from the registered office of the company and the office of its registrars in the United Kingdom and from PLEAS MM les actionnaires peuvent se procurer des exemplaires the company's overseas paying agents Cr^'dit Lyonnais des conditions r^'gissantles certificats d'action au porteur en 19 boulevard des Italiens 75002 Paris and Banque Roths- s'adressant soit au si^gesocial ou au bureau du directeur du child 21 rue Laffitte 75009 Paris - registre de la soci^'t^'soit aux bureaux des agents de la soci^'t^a'ux adresses suivantes Cr^'ditLyonnais 19 boulevard des Italiens 75002 Paris Banque Rothschild 21 rue Laffitte 75009 Paris 203CP41759 MM les actionnaires sont inform^'squ'ils peuvent se procurer un exemplaire en fran^ais de ce rapport en s'adressant soit au Secr^'taire CHARTER CONSOLIDATED LIMITED 40 Holborn Viaduct London ECIP IAJ soit ^ CHARTER FRANCE 9 rue de Vienne 75008 Paris soit au CREDIT LYONNAIS soit la BANQUE ROTHSCHILD 19 boulevard des Italiens 75002 Paris 21 rue Laffitte 75009 Paris Printed in England by Westerham Press