governance annual financial statements
annual report 2014 annual re mwana africa annual report 2014
d
many african cultures revere ndlovu elephant in ndebele as a 
symbol of strength and power ndlovu is also praised for its size 
longevity stamina mental faculties cooperative spirit and loyalty 
mwana africa plc in adopting the image of the african elephant in its 
company branding recognises the powerful and positive attributes 
of this majestic creature and strives to imbue the company with at 
least some of these same characteristics
in 2005 mwana africa became the ﬁrst africanowned african
managed resource company to be listed on the london stock 
exchange’s alternative investment market aim through a reverse 
takeover of african gold plc by a privatelyheld mining company 
mwana africa holdings proprietary limited 
connecting ndlovu and mwana strategic report
strategic report• contents
governance annual financial statements
mwana africa annual report 2014
01
contents
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shares in issue 1397780675
market capitalisation £2097 million
 as at 31 march 2014
strategic report
about mwana africa plc 2
vision and strategy 3
managing our risks and uncertainties 4
fy2014 highlights 5
chairman’s letter 6
chief executive ofﬁcer’s review 8
review of operations and exploration 10
financial review 19
overview of social and environmental responsibility 22
governance
board of directors 26
directors’ report 28
directors’ remuneration report 32
statement of directors’ responsibilities 37
statement of corporate governance 38
independent auditor’s report to the members of mwana africa plc 41
annual financial statements
annual ﬁnancial statements 42
notes to the annual ﬁnancial statements 51
corporate information ibc about mwana africa plc 
stra stra trategi tegi tegic re c re c report port port • • • abou abou about mw t mw t mwana ana ana afri afri africa ca ca
mwana africa annual report 2014
02
mwana africa plc is a panafrican multicommodity 
mining and development company mwana’s principal 
operations and exploration activities involve gold 
nickel copper and diamonds in zimbabwe the 
democratic republic of the congo drc south africa 
angola and botswana 
in zimbabwe mwana africa’s interests are the trojan and shangani nickel mines 
and the freda rebecca gold mine mwana’s nickel and gold projects include hunter’s 
road and maligreen with the makaha deposit being a gold exploration prospect
•  th e freda rebecca gold mine in zimbabwe restarted operations in  
2009 and in the 12 months ending march 2014 produced 58704oz of gold
•  th e trojan nickel mine is owned by mwana’s zimbabwe subsidiary 
bindura nickel corporation bnc after a four year period of being under  
care and maintenance in 2012 bnc carried out a us23m restructuring  
and recapitalisation programme which allowed it to restart the trojan mine  
the ﬁrst sale of concentrate to glencore took place in april 2013
in the drc mwana africa has exploration programmes in katanga copper  
zanikodo gold and a 20 stake in société minière de bakwanga miba
diamonds  
•  copper licence areas in the katanga province mwana has a joint venture 
agreement with zhejiang hailiang company limited to jointly explore some of 
these areas the katanga concessions are otherwise known as semhkat société 
d’exploration minière du haut katanga
•  the joint venture zanikodo project has a gold mineral resource of 297moz
klipspringer diamond mine is mwana’s south african interest 
•  mwana holds a 6977 interest in klipspringer which is currently on care  
and maintenance but involved in a tailings retreatment project and investigating 
the viability of underground mining strategic report
mwana africa annual report 2014
03
governance annual financial statements
strategic report • vision and strategy
our vision
mwana africa intends to create value by developing a broadbased portfolio of operations and exploration programmes in a range of 
commodities and countries across the african continent securing production and cash ﬂow building trusted partnerships and being the 
preferred vehicle for african investors and entrepreneurs
mwana africa is well positioned to build a truly panafrican resources group that brings strong returns for its shareholders and contributes 
signiﬁcantly to the beneﬁt of the african people and their continent
our strategy
mwana africa’s strategy is based on
panafrican reach activities in a portfolio of countries across the african continent
 multicommodity exposure production and exploration assets in a range of commodities including gold nickel copper 
cobalt and diamonds
 development of synergies value creation through the transfer of skills and realisation of synergies across the portfolio
 trusted partnerships being the preferred vehicle for african investors entrepreneurs and partners
 highquality management led by a highlyskilled and experienced management team able to secure beneﬁcial deals 
projects and returns mwana africa annual report 2014
04
strategic report • managing our risks and uncertainties
managing our risks and uncertainties 
the principal risks and uncertainties to which the group is 
exposed relate to changes in the market prices of gold nickel 
and diamonds resource and reserves risk processing risk 
environmental risk mining and operating risk ﬁnancing risk and 
political risk
metal price risk
fluctuations in metal prices can clearly affect the proﬁtability 
of mining operations the group seeks to protect itself from 
adverse ﬂuctuations by investing in projects which can operate 
economically in lower metal price environments and by controlling 
operating costs the group uses no ﬁnancial instruments or 
hedging products to ﬁx metal prices
the impact of the metal prices on the performance of the period is 
assessed in note 34
resource and reserve risk
there is a risk that estimates of mineral resources and reserves 
overstate their economic potential this uncertainty could give rise 
to a situation where a mine is or becomes commercially unviable
the group manages risk by ensuring that all mineral resource and 
reserve estimates are calculated by reference to internationally 
accepted standards in this case the australian code for reporting 
of exploration results mineral resources and ore reserves ‘jorc’
in addition all mineral resource estimates published by the group 
are signed off by an independent qualiﬁed person
information about the resources and reserves is included in the 
review of operations and exploration 
processing risk
there is a risk that the processing of ore to recover metal fails 
to deliver recoveries expected and this may have the effect of 
reducing projected proﬁtability all of the group’s existing mining 
operations have a long history of economic production and the 
processing techniques used are well understood when the group 
invests in new projects the metallurgical processes are thoroughly 
tested and reviewed by independent consultants before any 
investment is made
environmental risk
exploration and development of a project can be adversely 
affected by environmental legislation and the unforeseen results 
of environmental studies carried out during evaluation of a 
project once a project is in production unforeseen events can 
give rise to environmental liabilities andor temporary closure of 
mining operations
the group takes every care to comply with environmental 
legislation in the countries in which it operates and designs its 
training and procedures to minimise the environmental impact 
of operations
the impact of the existing environmental obligations on the 
ﬁnancial statements is disclosed in note 29 the details of the 
mitigating actions undertaken by the group during the period 
are disclosed in environmental impacts and mitigation in the 
overview of social and environmental responsibility on page 25 
of this report
mining and operating risk
mining is an inherently risky activity and can involve ground 
instability failure of machinery and human error the group makes 
every effort to ensure that these risks are minimised by ensuring 
that mining operations are professional that a high level of 
workforce training and education is maintained and by prompt 
reporting of incidents to management
information about the health and safety framework at freda 
rebecca and bnc is included in the overview of social and 
environmental responsibility on page 22 of this report
financing risk
mining is a capital intensive business and there is a risk that if 
ﬁnance is not available for the development or further exploration 
of a project then the value of the project may not be realised 
mwana’s ﬁnancing risk is linked to the availability of funding in the 
capital and debt market which are impacted by their perception of 
commodity and country risk mwana seeks to mitigate its ﬁnancing 
risk by diversifying its sources of ﬁnance for the development of 
its projects
political risk
there are political risks impacting the group’s operations in africa 
including indigenisation regulations in zimbabwe details of this 
risk and the actions undertaken to mitigate it are detailed on page 
29  of the directors’ report regarding zimbabwean indigenisation strategic report governance annual financial statements
strategic report • fy2014 highlights
mwana africa annual report 2014
05
fy2014 highlights
financial highlights
• group revenue up 305 to 1425m 2013 1092m 
• group ebitda up 404 to 250m 2013 178m
•  group net proﬁt for the year of 506m after a 280m reversal of impairment on bnc 2013 loss of 435m 
after a 437m impairment charge on bnc
•  attributable group net proﬁt for the year of 366m 2013 net loss of 286m which equated to a basic 
earnings per share for the year of 289 us cents 182 gb pence prior year 2013 loss per share of 262 
us cents 166 gb pence
• corporate costs cut from 78 to 45 of revenue
• group net cash from operating activities up 605 to 61m 2013 38m
• exploration spend decreased by 654 to 53m 2013 153m
operational highlights
• freda rebecca gold sales of 58704 ounces for the year 2013 65350 ounces
•  freda rebecca cash costs c1 959oz 2013 897oz allin sustaining costs c3 1186oz  
2013 1115oz
• freda rebecca gold recoveries up to 82 2013 81
• bnc ﬁrst concentrate shipped april 2013 and new mining plan adopted july 2013
• bnc production resumed proﬁtably with nickel sales of 7129t for the year
• bnc cash costs c1 11567t allin sustaining cost c3 12462t
• chinese partner initiated katanga copper buyin by funding 7m exploration
post period highlights
• freda rebecca investigates viability of gold recovery from tailings
• bnc smelter restart plan in place subject to funding to produce nickel alloy by calendar 2015
•  transfer of zani kodo mining licences into mizako sarl mwana africa plc is 80 shareholder from 
sokimo sarl
• klipspringer investigates viability of underground mining mwana africa annual report 2014
06
stra stra strategi tegi teg c re c re eport port r • chai chai hairman rman rma ’s l ’s l s ette ette etter r r
chairman’s letter
the past year has probably been one of the most signiﬁcant in our 
company’s history both strategically and operationally 
strategically we afﬁrmed our position and goal to be a multi 
commodity multicountry panafrican mining group after several 
years of building our asset portfolio with shareholder funding to 
achieve a position where we are capable of achieving income 
selfsufﬁciency our business model has moved into its next logical 
phase of generating future growth organically seeking funding 
and if appropriate partners on a speciﬁc project by project basis 
rather than by general capital raising our focus is ﬁrmly set on 
rewarding shareholders through growth in asset value
operationally we undertook a fundamental restructuring founded 
on the premise that in mining the lowestcost producer wins the 
day this was motivated by falling prices for the commodities we 
produce gold nickel and diamonds by the understanding that 
raising further development capital could be difﬁcult without 
offering increased foreseeable value and by the imperative of 
matching our projects to our capacity in laying the groundwork for 
this during the 12 months under review we
• trimmed our head count from board level down
• reduced the scale of our london ofﬁce
• reduced salaries voluntarily
• reduced our reliance on professional services
• cut operating costs and
• improved operating efﬁciencies
our activities are being directed towards the consolidation of our 
diversiﬁcation strategy reducing overheads derisking technical 
mining and exploration issues increasing our operational cash 
generation capabilities such that of our ﬁve major projects two 
– bindura nickel and freda rebecca gold mine – are income 
generating two – copper and diamonds – have reduced their burn 
rates and one the zanikodo gold project in the eastern drc is 
advancing at limited cost to mwana as regards corporate costs 
we are on track to achieve our target in annual savings after 
allowing for onceoff retrenchment and other costs of reduction 
or closure
we have the assets in our portfolio capable of delivering on our 
evolving strategic objectives at bnc the operational plan allows 
earlier mining access and the blending of higher grade massives 
with disseminated ore to ensure a sustainable improved feed 
grade through the trojan life of mine plan we have restarted the 
deepening project and organic growth will centre on reopening 
the smelter subject to funding to add value through beneﬁciation 
most of the legacy labour liabilities at bnc should be discharged 
by december 2014 and the other liabilities by december 2015 
freeing cash ﬂows to be applied to investment and operational 
purposes at freda rebecca we will complement our underground 
production by concentrating on improving the performance of 
our plant and complete our testing programme of the recently 
commissioned tailings retreatment plant at semhkat the labour 
force has been substantially cut and our chinese partner hailiang 
has assumed responsibility for exploration expenditure at 
klipspringer diamonds the joint venture to treat residue material is 
generating income while the restart of the mine is being evaluated 
at zani kodo we are assessing the prospects of feasibility studies 
and a small pilot plant for gold production
our emphasis upon becoming a multicommodity company is 
bearing fruit through the reduction of risks associated with being 
dependant on a single metal we have already enjoyed some 
beneﬁts from this commodity diversiﬁcation with bnc production 
having supported the group and freda rebecca pre2009 while 
freda rebecca production supported the group and bnc post2009 
i am conﬁdent of the sound longterm prospects of our two 
principal metals though the immediate future is likely to exhibit 
price volatility the nickel price has been bolstered by indonesia’s 
stuart morris – interim chairman strategic report
mwana africa annual report 2014
07
governance annual financial statements
strategic report • chairman’s letter
ban on exports of nickel ore whilst the gold price has been lower 
as investors anticipate interest rate increases that raise the cost of 
holding bullion as an investment
as the past year’s results have shown we have demonstrated 
an ability to contain costs to acceptable levels we are fortunate 
that the majority of both our revenues and costs are denominated 
in us dollars as this relieves us of some of the distraction of 
managing exchange rate ﬂuctuations our strategy is to mine 
proﬁtably we will not pursue new ventures unless they display 
clear prospects of sound returns on investment
careful cashﬂow management is central to our business plan and 
we will direct investment to those projects and operations that 
offer the best prospects of returns this applies as much to our 
exploration initiatives in the drc as to our developed mines in 
zimbabwe and this is dealt with more fully by my colleague and 
ceo kalaa mpinga in his ceo’s report
in zimbabwe – the central point of our mining and processing 
operations – the outcome of the general election in july 2013 
lifted much of the political uncertainty that preceded it like the 
governments of many other countries dependent on primary 
products zimbabwe’s is aware of the need to foster mining and 
investment at the same time being mindful of its responsibility to 
ensure that the local populace should share fairly in the fruits of 
their country’s own resources it is pleasing that we are in a position 
to resume smelting at bnc as it represents cooperation with the 
zimbabwean government and its beneﬁciation objectives we 
believe that this too can contribute to the indigenisation policy by 
creating more jobs for local people by increasing purchases from 
local suppliers and through generating higher taxable revenues
i have been interim chairman since only february 2014 but 
have always appreciated the skills and expertise that my board 
colleagues and executives bring to the management of our 
company during the year my longserving predecessor oliver 
baring retired along with john anderson and etienne denis and 
i thank them for the direction they gave during their tenure on 
the board oliver was succeeded albeit brieﬂy by mark wellesley
wood who we would also like to thank for his contribution 
i would also like to thank donald mcalister who left in september 
for his contribution during his time on the board and to welcome 
our new finance director yim kwan to the board these departures 
mean that we are seeking to appoint a permanent chairman as 
well as improving the balance of our board and that search will 
be completed as expeditiously as possible i would like to express 
my sincere thanks to my colleagues on the board our senior 
executives and all of our staff in many countries for their support 
during the past challenging year i also express my gratitude to our 
shareholders and stakeholders for their continued support which 
has contributed to the successes already mentioned above
safety is our priority and it is with deep regret that i record the 
unfortunate deaths of two of our colleagues lovemore nyanusanu 
and shepherd muradzi in accidents at freda rebecca and trojan 
my condolences go to the families friends and colleagues of both 
men i assure all of our employees that our efforts to ensure safety 
are a priority and remain unremitting
i make no forecast of our group’s nearterm performance particularly 
given the current uncertainties over commodity prices there remains 
some distance to travel before we are generating positive cash 
ﬂows at all of our projects but while we will be patient in achieving 
this we remain mindful of our commitment to deliver wealth to 
our shareholders we shall build on our assets that are generating 
positive cash ﬂows and carefully develop those that are still in 
their infancy or are being maintained in anticipation of proﬁtable 
development stakeholders may rest assured that we will work hard 
to implement our strategy and focus on the sound development of 
our assets
stuart morris
interim chairman
8 july 2014 mwana africa annual report 2014
08
stra stra strategi tegi tegic re c re c report port p • • • chie chie ef ex f ex e ecut ecut cutive ive iv offi offi f cer’ cer’ cer s re s re sreview view view
the performance of mwana’s people during the past ﬁnancial year 
underscores our capacity to position our company as a leading 
emerging miner on the african continent it was a performance 
that overcame difﬁculties and setbacks while taking new projects 
forward this demonstrated our ability to contain costs and to 
optimise our return on assets
but the past year was also one which delivered personal tragedies 
at the freda rebecca gold mine excavator operator lovemore 
nyanusanu 32 died on 13 october 2013 in a mud rush at the 
trojan nickel mine shepherd muradzi 35 a support rig assistant 
lost his life in an underground tramming accident on 16 march 
2014 i join with all of my colleagues in sending my most profound 
condolences to the families of lovemore and shepherd and to their 
friends and colleagues 
apart from these two unfortunate losses our overall safety record 
measured in the lost time injury frequency rates ltifrs improved 
at the two producing mines safety comes second to nothing at 
our operations we ensure that our employees and contractors are 
equipped and trained to work safely and to ensure the safety of 
their colleagues
as the past year started members of the technical staff at freda 
rebecca were engaged on replacing a leach tank that had failed 
in the previous year the replacement was ﬁnished in the year’s 
second quarter and complemented by a second leach tank 
simultaneously the team completed the pilot treatment plant 
for retreating tailings despite some difﬁculties with the tailings 
pilot plant’s capital equipment commissioning was nearing 
completion as the ﬁnancial year ended at the time of writing 
commissioning had been completed which will allow thorough 
testing of the project
an important part of our emphasis at freda rebecca has been and 
continues to be on containing costs while cash costs per ounce of 
gold remained comfortably below gold prices for the entire year 
by the fourth quarter allin sustaining costs c3 were close to the 
gold price due to the operation not achieving its volume targets 
i am however conﬁdent that by maximising gold production 
and with careful cost controls the mine will continue to operate 
proﬁtably our policy is to mine proﬁtable ore – we are not in the 
business of producing at any cost
while freda rebecca was being brought up to steadystate 
proﬁtable operations production at bnc’s newly reopened trojan 
mine was being ramped up to full capacity the year under review 
was the ﬁrst operating period since operations were placed on a 
careandmaintenance basis in 2008 as the ﬁnancial year began 
we were faced with having to reevaluate our operating strategy in 
the light of sharplydeclining nickel prices 
we had hoped to raise additional capital to build operations but 
this proved to be impractical as investors shied away from nickel 
as the metal’s price fell sharply our response was to introduce 
a modiﬁed mining sequence based on the results from drilling 
carried out during care and maintenance this mining method 
was evaluated thoroughly by our consultants srk who conﬁrmed 
it as safe feasible and not impacting on the life of mine lom 
this strategy has proved its worth as nickel prices rose towards 
the year’s end in response to indonesia’s restrictions on exports 
of nickel ore our conﬁdence in the sustainability of nickel’s price 
advance and the successful restart of trojan has allowed us to 
reverse a substantial part of the previous year’s impairment of 
bnc’s assets
while this reversal has a signiﬁcant positive effect on the year’s 
reported headline earning it is perhaps best to remember that this 
has no effect on the group’s cash ﬂow for the foreseeable future 
bnc will be conserving cash to fund the trojan mine’s deepening 
and capacity development from internal resources cash ﬂow will 
continue to be directed at clearing bnc’s legacy liabilities or debt 
strengthening the balance sheet and laying the foundation for the 
ﬁrst proﬁts to be reported since 2008
once that is completed and adding to the beneﬁts of the mining 
developments we are embarking on the current project to restart 
the bnc smelter to move our nickel operations up the value chain 
preliminary planning started in the year under review and 
based on the restart plan reviewed by consultant hatch goba 
chief executive officer’s review
kalaa mpinga – chief executive ofﬁcer strategic report
mwana africa annual report 2014
09
governance annual financial statements
strategic report • chief executive officer’s review
we estimate that the project can come on stream in the ﬁrst 
half of 2015 with a capacity to process an annual 160000t of 
concentrate of which approximately onethird will be drawn 
from other local nickel miners the capital cost is estimated at 
265m of which half will be debt and the remainder will come 
from bnc’s improved cash resources and cash ﬂow the project is 
expected to generate ﬁnancial beneﬁts on two important fronts 
– an increase in proﬁt from selling nickel leach alloy rather than 
concentrate and a reduction in transport costs as we ship leach 
alloy rather than concentrate
in south africa the management of our diamond interests reﬂects 
our careful approach to operations following extensive damage 
caused by the ﬂooding of underground workings in 2010 and 
2011 the klipspringer mine was placed on care and maintenance 
where it remains pending our securing funding to reestablish 
underground mining 
we remain however conﬁdent of the longerterm potential of 
klipspringer’s diamondiferous kimberlite ﬁssure deposits and will 
retain the asset in october 2013 we entered into an agreement 
with greenhurst mining  exploration to recover diamonds from 
the old marsfontein slimes dumps greenhurst brought in a new 
process for recovering microdiamonds a process that has proved 
its worth at the slimes recovery operation during the second half 
of the year under review 28600 carats of small diamonds were 
recovered and sold at an average price of 21 per carat revenue 
from this recovery operation is directed at covering the property’s 
careandmaintenance costs
continuing care and maintenance has ensured that underground 
workings could be restored to initial production within four months 
followed three months later by the preliminary sales of diamonds 
in round ﬁgures we estimate that the capital investment required 
will be approximately 4m and the payback on the project will 
be 28 months discussions are taking place with a number of off
takers to source funding
full details are contained elsewhere in this report but at our 
zanikodo gold prospect in the ituri district of the northeastern 
drc where we are partnered by the stateowned mining 
company société minière de kilomoto sokimo drilling allowed 
us to increase the size of our gold resource to 297m ounces 
metallurgical testing was largely completed in the year under 
review and we have entered the current year examining various 
plantdesign options to be built into a project feasibility study 
based initially on the kodo main property the area is a highly
prospective zone of goldbearing greenstone deposits with other 
major gold companies actively drilling and exploring near our 
permit areas
our other interests in diamonds are limited to minority stakes 
in prospects in the drc angola and botswana though they 
are comparatively small interests at present they do not involve 
mwana investing in exploration and development and we look 
upon them as longterm projects to be undertaken with our 
partners at some point in the future
while our understanding of our zimbabwean and south 
african resources is well developed we also see opportunities 
in prospective ventures under exploration in the katanga and 
orientale provinces of the drc again we are adopting a cautious 
approach steadily adding to the value of our properties’ resources 
while not wanting to overextend our ﬁnances on exploration
i believe it bears repeating that our strategy is to contain costs and 
when appropriate to partner with others with whom we can share 
them this is particularly the case with our coppercobalt prospect 
in the drc’s katanga province where we are partnered in a joint 
venture between semhkat and zhejiang hailiang company 
limited the shanghai listed copper tubes fabricator in terms of the 
agreement hailiang will ﬁnance the costs of exploring and drilling 
28 of our 34 copper permit areas at a total cost of 25m over four 
years thereby buying into an interest in the venture in the year 
under review hailiang spent 7m on exploration which amount is 
subject to audit and veriﬁcation targets have been selected based 
on data collected from the year’s ﬁeld prospecting season drilling 
and further regional prospecting has just begun
from a personal standpoint i have again found working with 
my colleagues to be stimulating and i thank them sincerely for 
their contributions to the development of mwana africa in a 
year which has seen the company and our future potential and 
prospects change dramatically their contributions have been 
made at a sometimes substantial individual personal cost the 
board and staff members have voluntarily made salary sacriﬁces 
which have helped mitigate falling commodity prices i express 
my sincere thanks to each of the individuals who have made 
these sacriﬁces and contributed to the company’s continued 
progress during the year
there have been difﬁculties but they have been overcome with 
conﬁdence and dedication and the company is now on a sound 
footing from which to develop further
kalaa mpinga
chief executive ofﬁcer
8 july 2014 stra stra s tegi tegi teg c re c re report port po • • • revi revi rev ew o ew o ew f op f op f erat erations ions on and and a exp exp explora lora lo tion tion
mwana africa annual report 2014
10
4 angola
 commodity diamonds
exploration prospect 
camafuca project
2 drc
commodities base metals  
gold and diamonds
 exploration programmes 
katanga  zanikodo and  
20 stake in miba
5 botswana
commodity diamonds
exploration prospect bk16
3 south africa
commodity diamonds
operation klipspringer mine
1 zimbabwe
commodities base metals 
and gold
operations bindura nickel 
corporation’s trojan and 
shangani mines and freda 
rebecca gold mine
project hunter’s road  
and maligreen
exploration prospects  
makaha deposit
1
3
5
4
2
africa
review of operations and exploration strategic report
mwana africa annual report 2014
11
governance annual financial statements
strategic report • review of operations and exploration
gold
freda rebecca gold mine – zimbabwe
the freda rebecca gold mine freda rebecca is situated near the 
town of bindura some 90km northeast of harare 
total gold production for the year ending 31 march 2014 
was 58704oz 73 down on the previous year’s production 
of 63350oz a signiﬁcant contributor to the variance was a 
leach tank failure in the last quarter of fy2013 which affected 
recovery during the ﬁrst quarter of fy2014 the failed leach tank 
was replaced during the past year and a new additional leach 
tank has also been commissioned recoveries have now been 
restored closure for the environmental cleanup was successful 
with additional lined spill containment ponds being completed 
in the year
average quarterly production for the ﬁnancial period was 14676oz 
of gold and the highest level of quarterly gold production was 
17536oz achieved in the second quarter 
tailings retreatment project
the mine which has been in production since 1988 has 
accumulated some 13mt of goldbearing tailings in three main 
storage facilities within the mine lease area during fy2013 the 
economic potential of recovering gold from freda rebecca’s tailings 
dumps was evaluated and the construction of a pilot recovery plant 
initiated the plant was completed and commissioning began in 
the year ended 31 march 2014 
the objective of the pilot scale test plant is to prove that gold can 
be recovered economically from the tailings with little reprocessing 
and low mining and handling costs an augering programme over 
the dumps is expected to result in a jorccompliant mineral 
resource that has the potential to add signiﬁcantly to freda 
rebecca’s gold production
freda rebecca continues to focus on mining and processing 
efﬁciencies particularly on increasing plant throughput and 
recovery improvement 
freda rebecca production results
year ended 
march 2014 
fy2014
year ended 
march 2013 
fy2013
tonnes mined t 1098244 1043764
tonnes milled t 1060561 958568
head grade gt 210 264
recovery  82 81
gold sales oz 58704 65350
average gold price received oz 1319 1654
cash cost c1 oz 959 897
allin sustaining cost c3 oz 1186 1115
freda rebecca resources
classiﬁcation cutoff gt tonnes ‘000t grade au gt gold ‘000oz
indicated 15 21043 248 1675
inferred 15 8746 228 640
total 15 29789 242 2315
the effective date for the freda rebecca resource estimate is april 2011 mwana africa annual report 2014
12
strategic report • review of operations and exploration
review of operations and exploration continued
zanikodo project – democratic republic of congo drc
the zanikodo gold exploration project in the ituri district of the drc 
covers gold mining rights over 1605 square kilometres in the orientale 
province mwana is in a joint venture with the stateowned sokimo 
which holds a 20 freecarry interest the licence areas contain a 
series of greenstone belts of kibalian age which have the potential 
to host worldclass gold deposits zanikodo is situated between the 
kibali formerly moto mines project randgold resourcesanglogold 
ashanti joint venture and the mongbwalu project anglogold 
ashanti
the zanikodo project total combined jorccompliant gold 
resource now stands at 297moz at 243gt based on a cutoff  
grade of 05gt this is an increase of 13 on the february 2013 
resource statement which was itself a 30 increase on the 
february 2012 resource statement 
zanikodo resources as at august 2013
sub area category tonnes t  grade gt au oz 
kodo main indicated 4799487 363 560197
  inferred 10330969 352 1169293
lelumodi indicated 111864420674097
 inferred 8154092181474563
lelumodi north inferred 1150062 234 86532
badolite inferred 2806940234211197
zani central inferred 9683455 128 398547
total 38043649 2432974426
in response to lower commodity prices and in line with the company’s strategy of cutting costs mwana suspended exploration drilling 
at zanikodo during q2 of fy2014 prior to the cessation of drilling 42 diamond core drill holes for a total of 11268m were completed 
results include 9m  646gt au and 4m  833gt
test work carried out on samples taken from the kodo main orebody found the ore to be nonrefractory and showed higher than 90 gold 
extraction across all the recovery methods tested
as part of feasibility work underway at kodo main a resourceconversion drilling programme was completed in 2014 this will be followed 
by a geotechnical drilling programme and regional ﬁeld investigations will continue during fy2015 strategic report
mwana africa annual report 2014
13
governance annual financial statements
nickel
bindura nickel corporation bnc  zimbabwe
bnc has been listed on the zimbabwe stock exchange since 1971 
located near the freda rebecca gold mine close to the town of 
bindura northeast of harare bnc is africa’s only integrated nickel 
mining smelting and reﬁning operation historically ore from the 
company’s shangani and trojan mines with a combined hoisting 
capacity in excess of 2mt of ore per year was concentrated and 
fed along with concentrate from third parties to bnc’s smelter 
and reﬁnery 
bnc’s mines smelter and reﬁnery were placed on care and 
maintenance in 2008 and remained so until the conclusion of 
bnc’s rights issue and restructuring in september 2012 when 
mining restarted at the trojan nickel mine 
the restart involved the refurbishment of the handling facilities for 
the surface milling ﬂotation tailings and concentrate the cold 
commissioning of the electrical and mechanical circuits of the feed 
conveyors mills ﬂotation circuits concentrate handling and tailings 
handling was completed in january 2013 by passing water through the 
processing plant circuits the hot commissioning with the introduction 
of ore into the milling circuit commenced shortly afterwards
progress on surface was matched by a successful ramp up 
of underground operations in april 2013 bnc sold its ﬁrst 
shipment of nickel concentrate since the restart to glencore 
bnc’s offtake partner
as a result of depressed nickel prices additional ﬁnancing to fund 
full ramp up was not secured bnc began reviewing options to 
resolve this cash shortfall including considering alternative mine 
plans at trojan and seeking bridging ﬁnance 
during q1 of fy2014 the trojan mine plan was revised to target 
the highergrade zones of the orebody known as ‘massives’ with 
the aim of reducing the cost per tonne of nickel produced the 
impact of this was already being seen in the ﬁrst six months with 
a drop in cash costs from 19251t in q1 to 9689t in q2 in 
october 2013 a competent person’s review of bnc’s business plan 
for trojan’s operations concluded that the plan was realistic and 
achievable this enabled bnc to update its ore reserves statement 
to total proven and probable reserves of 3168mt at an average 
grade of 104 for 32975t of contained nickel this denotes 
a 28 increase on the previously reported trojan reserves of 
25810t of contained nickel
work has commenced on the trojan shaft redeepening project 
which had been suspended while the mine was on care and 
maintenance the redeepening will extend the operating horizon 
of trojan from 35 level to 45 level and secure the life of mine of 
the trojan asset
trojan mine is making continued progress towards steady
state processing of 195000t per quarter and the increase in 
tonnes milled indicates more consistent efficient operation of 
the mills
bnc trojan mine production results for fy2014
total q4 q3 q2 q1
tonnes mined t 595656 161964 159600 158694 115398
tonnes milled t 589637 153451 133221 154552 148413
nickel head grade  1382 1621 1730 1597 0652
recovery  862 888 875 886 707
ni in concentrate t 7026 2207 2016 2117 686
nickel sales t 7129 2250 2651 1505 723
average nickel price t 14298 14075 13870 13787 15460
cash cost c1 t 11567 11333 11181 9689 19251
allin sustaining cost c3 t 12462 12220 11819 10390 21521
strategic report • review of operations and exploration mwana africa annual report 2014
14
review of operations and exploration continued
bnc reserves
classiﬁcation  of reserves tonnes ‘000t grade  nickel t
proved 
trojan 1908 0707 13485
shangani – – –
hunter’s road – – –
probable
trojan 1002 137 13721
shangani – – –
hunter’s road – – –
total 2910 093 27206
bnc resources
classiﬁcation  of resources tonnes ‘000t grade  nickel t
measured 
trojan 235810725185
shangani 184005810750
hunter’s road – – –
total 419808535935
indicated 
trojan 150714121883
shangani 4800592840
hunter’s road  36437 055 200404
total 38424058225127
inferred 
trojan 375516963407
shangani 971005654280
hunter’s road – – –
total 13465087117687
notes  srk completed a competent person’s report on the trojan resource in march 2013 and this resource is based on that report less the depletion from 
mining april 2013 to 31 march 2014 based on mining shapes from stoping and development 
  the effective date for the trojan resource statement is 31 march 2014 and the effective date for the shangani resource statement is august 2008
   the effective date for the hunter’s road resource estimate is may 2006 the jorccompliant hunter’s road resource of 36437kt is found in the west 
orebody of hunter’s road and includes 2377kt of resource which forms part of a 30m cap of oxide ore mineralisation in addition in 1993 an anglo 
american minred estimate showed 11000kt grading 043 ni approximately 600m east of the west orebody of hunter’s road which is not included in 
the resource shown above
strategic report • review of operations and exploration strategic report
mwana africa annual report 2014
15
governance annual financial statements
mwana licence
mwana licence  hailiang jv
mwana project
deposit
town
railway
country boundary
pleistocene cover
kundelungu sediments
kundelungu conglomerate
roan sediments
katanga group
granites
kibaran basement
zambia
democratic
republic of
congo
kansanshi
lutobwe
lombe
kapande
kipushi
lupoto
ruashi
etoile
musoshi
konkola
0 kilometres 50
nchanga
chambishi
mufulira
kinsenda
lufira
mukema
kamungoti
kintungu
lunsano
luisha
mifumbi
kitemena
kibolwe
kiamato
kaleta
dikuluwe
kamoto
kolwezi
kolwezi
likasi
lubumbashi
kitwe
mutanda
kisamfu
kalakundi
kakanda
tenke fungurume
kambove
shinkolobwe
lufungu
mwombe
katanga prospect areas
copper
semhkat – katanga drc
the mwana group holds a 100 interest in 33 exploration 
concessions covering 4845 square kilometres in the southeast 
of the drc the katanga concessions are otherwise known as 
semhkat société d’exploration minière du haut katanga 
exploration is focusing on sedimenthosted stratiform copper
cobalt ironoxidecoppergold iocg occurrences as well as on 
showings of lead and zinc
the hailiang joint venture signed in february 2013 covers  
27 licence areas with a commitment by hailiang to spend 
25m over a fouryear period in terms of the jv agreement the 
licences will be transferred into a development company in which 
mwana will hold a 38 nondilutable stake also under the joint 
venture agreement hailiang had a sixmonth option over the 
kibolwe licence which has expired
kibolwe is the most advanced of the semhkat concessions and is 
located approximately 150 kilometres northwest of lubumbashi 
and 86 kilometres southwest of the town of likasi kibolwe is 
a near surface secondary enriched sedimenthosted stratiform 
copper deposit the dominant oxide mineral is malachite 
with minor amounts of cuprite and tenorite occurring within 
weathered argillaceous limestones the drilling programmes 
have outlined nearsurface ﬂatlying mineralised units up to 40m 
thick extending over a strike of 1500m
the exploration programme to date includes
•  a highresolution aeromagnetic and radiometric survey ﬂown 
over the bulk of the area 54000 line km
• 12000m of drilling at the advanced kibolwe surface deposit
• 5700m drilling on extensions of kibolwe
• 7000m drilling at satellite targets within 10km of kibolwe
•  soil geochemical sampling of an area of approximately 1500km
2
• geophysical and geological mapping surveys
following completion of the phase 1 programme which resulted 
in the statutory shedding of 50 of ground holdings the phase 2 
work programme commenced in july 2013 the programme has 
been executed by three hailiang subcontractors huakuan inner 
mongolian and sinomine and the semhkat technical team 
a target generation exercise was conducted and deﬁned high
priority targets for followup exploration during 2014 eight 
targets were delineated at lunsano and reverse circulation drilling 
started other important targets were delineated at kitemena east 
kawesitu north lutobwe kiﬁta and lukosombi 
semhkat commenced an exploration programme on lutobwe 
lombe kapande and mifumbi
our joint venture partner will mobilise for the second year’s 
exploration programme this includes six targets with geochemistry 
and geophysics followed by drilling 
strategic report • review of operations and exploration mwana africa annual report 2014
16
diamonds
klipspringer – south africa
the project consists of several en echelon staggered or 
overlapping kimberlite ﬁssures and blows trending in a northeast 
orientation and includes the leopard fissure the sugarbird 
fissure the sugarbird blow the kudu fissure and the kudu blow 
amongst others
as a result of severe weather incidents in december 2010 and 
january 2011 which ﬂooded the shaft bottom and lower 7 
level of the leopard ﬁssure the mine was placed on care and 
maintenance ultimate funding from mwana has continued to 
maintain the asset in a ready state and at the same time the 
interest in the joint venture has increased to almost 70 due 
to noninvestment by the bee partner in the working capital 
requirements of klipspringer 
care and maintenance will continue until a source of ﬁnance is 
secured to restart the mine and has ensured that the mine will be 
in a position to take advantage of favourable market conditions 
the evaluation of options to reopen the underground operation 
along the leopard ﬁssure will continue
klipspringer resource – leopard ﬁssure
gross net attributable
tonnes 
millions
gross grade 
cpht
 1
contained 
diamonds 
mcts
tonnes 
millions
grade 
cpht
 1
contained 
diamonds 
mcts
measured 0211 5157 0109 0148 5157 0076
indicated 0433 5157 0223 0303 5157 0156
inferred 1565 8300 1299 1095 8300 0909
total 2209 7383 1631 1546 7383 1141
1  
carats per hundred tonnes
notes   211000t of proven reserves at a grade of 5157cpht have been transferred to measured resources while the mine is on care and maintenance 
433000t of probable reserves at a grade of 5157cpht have been transferred to indicated resources while the mine is on care and maintenance
slimes retreatment project
in october 2012 an agreement was signed with greenhurst mining 
and exploration to retreat ﬁneresidue tailings at klipspringer on 
a proﬁtsharing basis construction and commissioning of the 
processing plant with a capacity of 50t per hour was completed by 
the end of september 2013 at steady state the plant is projected 
to produce from 15000 to 20000 carats per month from the old 
marsfontein ﬁne residue tailings deposit 
in november 2013 klipspringer sold its ﬁrst parcel of diamonds 
1512cts under the greenhurst agreement during fy2014 
production of diamonds more than doubled quarter on quarter as 
a result of the treatment of 16000t of ﬁneresidue tailings at an 
average grade of 885cts100t an average selling price of 21ct 
was achieved following process changes in the plant including 
screening improvements and a dms surge bin a substantial 
increase in throughput is expected and thus a signiﬁcant 
contribution to klipspringer’s monthly careandmaintenance costs 
should follow in fy2015
review of operations and exploration continued
strategic report • review of operations and exploration strategic report
strategic report• contents
mwana africa annual report 2014
17
governance annual financial statements
klipspringer slimes retreatment project
 year ended – 
march 2014
tonnes treated 23019
carats recovered 20386
grade cpht
 1
8860
revenue 334972
carats – unsold 4444
1 
carats per hundred tonnes
the project will also be exploring other revenuegenerating opportunities such as diamond recovery from the tailings dump and the sale of 
washed aggregate material for the building industry
other interests – angola drc botswana
angola – camafuca project
five kimberlitic pipes intrude a valley and outcrop in the chicapa 
river bed and both sides of the river contained diamond content 
for the ﬁve pipes a total surface area of 167ha quoted down to a 
depth of 145 metres is 23million carats
in 2005 the government approved the formation of the operating 
company sociedade mineira do camafuca lda which was issued 
the mining licence for the camafuca project in terms of the 
shareholders agreement mwana will provide the technical skills 
and manage the project implementation
mwana africa has no further ﬁnancial commitments to the 
development of camafuca and retains a free carried interest of 
18 in the camafuca project through southernera diamonds 
drc – mbuyi maya miba
the mbuji maya cluster in kasaioriental province of the drc was 
recognised in 1946 28 years after diamonds were recovered in the 
surrounding rivers the cluster consists of 11 elliptical kimberlites 
totalling in excess of 39 ha with associated elluvial and alluvial 
deposits
mwana holds a minority interest of 20 in this project through 
the société minière de bakwanga miba the company is in 
discussions with the drc government about the recapitalisation 
and restructuring of miba
botswana – bk16
in june 2008 firestone diamonds entered into an agreement 
with mwana under which it can acquire an 875 interest in the 
bk16 kimberlite in return for carrying all costs to completion of 
bankable feasibility
at present mwana holds 55 of the shares in this project through 
a botswana registered company kenrod engineering
strategic report • review of operations and exploration strategic report• contents
mwana africa annual report 2014
18 strategic report
mwana africa annual report 2014
19
governance annual financial statements
strategic report • financial review
financial review
income statement
freda rebecca bnc
other mwana  
africa group total group
 million 2014 2013 2014 2013 2014 2013 2014 2013 
revenue 775 1081 650 10 – – 1425 1091
cost of sales 542 579 297 06 – 04 839 589
gross profitloss 233 502 353 04 – 04 586 502
other income 02 01 03 03 01 – 06 04
freight and insurance expenses 04 – 117 05 – – 121 05
general and administrative 
expenses 69 75 33 30 10 11 112 116
care and maintenance expenses – – 13 121 06 09 19 130
corporate costs – – – – 64 85 64 85
operating profit 162 428 193 149 79 109 276 170
retrenchment and restructuring 
expenses – – – – 20 – 20 –
dividends received – – – 01 – – – 01
lossproﬁt on sale of assets 05 01 – 02 11 – 16 03
fair value adjustment – – – – – 04 – 04
foreign exchange gain – – 01 05 09 03 10 08
ebitda
1
157 429 194 141 101 110 250 178
impairment loss – 03 – 437 07 – 07 440
impairment reversal – – 280 – – – 280 –
depreciation 67 55 09 – 01 02 77 57
finance income 01 – 02 03 – 03 03 06
finance expense 05 07 05 01 – – 10 08
profitloss before income tax 86 364 462 576 109 109 439 321
income tax creditexpense 39 96 109 – 03 18 67 114
net profitloss for the year 47 268 571 576 112 127 506 435
noncontrolling interest 05 08 135 157 – – 140 149
net profitloss attributable to 
owners of the parent 42 260 436 419 112 127 366 286
1
 earnings before interest impairments tax depreciation and amortisation
the group reported revenue for the year of 1425m 2013 1091m and an ebitda before impairments for the year of 250m  
2013 178m the net proﬁt for the year is 506m 2013 loss of 435m
freda rebecca
during the year freda rebecca sold 58704 ounces of gold 2013 65350 ounces at an average price of 1319 per ounce  
2013 1654 per ounce as well as byproducts generating revenue of 775m 2013 1081m operating costs during the period 
totalled 613m 2013 653m for the year proﬁt before tax for the year was 86m 2013 364m
bindura nickel corporation
revenue of 650m 2013 10m was generated through the sale of nickel in concentrate 2013 sale of inprocess inventories operating 
costs were 457m 2013 159m increased from the previous year due to the restart of the trojan mine bnc reported ebitda before 
impairments of 194m 2013 loss of 141m
in the prior year 100 of bnc’s noncurrent assets have been impaired in the group financial statements which resulted in an impairment 
loss of 437m during the current ﬁnancial year 280m of the impairment relating to the trojan mine was reversed during the current 
year it became probable that bnc would make taxable proﬁts in the future and that deferred tax should be recognised in their accounts 
a net deferred taxation credit of 36m was included in proﬁt during the ﬁnancial year in respect of impairments see note 35 which 
provides background and ﬁnancial impact of this impairment and reversal
other mwana africa group
the group excluding bnc and freda rebecca incurred operating costs of 79m 2013 109m mwana africa annual report 2014
20
strategic report • financial review
financial review continued
cash flow statement 
freda rebecca bnc
other mwana africa 
group total group
 million 2014 2013 2014 2013 2014 2013 2014 2013 
opening cash at  
1 april 2013 34 24 55 04 63 39 152 67
financing 61 232 15 378 129 221 53 367
equity issues – – – – 66 328 66 328
loan ﬁnance net 19 17 – 47 – – 19 30
cash transferred tofrom 
group 40 200 23 311 63 111 – –
sale of equity investments – – – – – 04 – 04
share issuance to nci – – 08 20 – – 08 20
dividends paid to nci 02 15 – – – – 02 15
operations 48 242 02 327 164 197 114 282
operating cash ﬂow 146 428 128 158 129 107 145 163
change in working capital 01 19 57 75 22 84 36 10
capital expenditure 57 86 69 94 – 04 126 184
capitalised exploration – – – – 53 153 53 153
taxation 40 81 – – 04 17 44 98
closing cash at  
31 march 2014 21 34 42 55 28 63 91 152
freda rebecca
positive cashﬂow of 146m 2013 428m was generated by operations during the year 01m 2013 19m was invested in additional 
working capital 57m 2013 86m was invested in capital expenditure
bindura nickel corporation
positive cash of 128m was generated from operations compared to a negative 158m utilised in the previous year capital expenditure 
was 57m 2013 75m an additional 08m was generated by a share issue to the nci shareholder 2013 20m from the rights issue
other mwana africa group
mwana africa excluding bnc and freda saw operating cash outﬂow of 129m 2013 107m outﬂow during the year mwana 
africa invested 53m 2013 153m on its portfolio of exploration prospects 15m in semhkat 2013 38m and 38m in zani  
2013 115m
balance sheet
 million
freda rebecca bnc
other mwana africa 
group total group
2014 2013 2014 2013 2014 2013 2014 2013
noncurrent assets 494 493 525 05 648 615 1667 1113
current assets excl cash 173 137 131 90 14 14 318 241
cash 21 34 42 55 28 63 91 152
noncurrent liabilities 188 194 189 212 15 16 392 422
current liabilities 113 84 243 228 33 53 389 365
total equity 387 386 266 290 642 623 1295 719
noncontrolling interest 30 26 09 134 – – 39 108
equity attributable to 
owners of the parent 357 360 257 156 642 623 1256 827 strategic report
mwana africa annual report 2014
21
governance annual financial statements
strategic report • financial review
at 31 march 2014 the group had cash balances of 91m  
2013 152m comprising 42m 2013 55m held by bnc 
and 49m 2013 97m held by freda rebecca and other mwana 
africa group entities the book value of shareholders’ equity for 
the group at the yearend was 1256m 2013 828m whereas 
for the company it was 1755m 2013 1391m the reason for 
the company equity being more than group equity is because of 
equity deﬁcits included in the consolidated ﬁgure
freda rebecca
noncurrent assets of 494m were in line with the prior year 
2013 increase of 37m to 493m current assets increased 
by 36m 2013 17m decrease to 173m 2013 137m 
this amount includes an increase in trade debtors of 37m 
2013 33m decrease a decrease in spares and inventory of 
01m 2013 19m increase and no change in other debtors 
2013 03m decrease 
the movement in noncurrent liabilities to 188m 2013 194m 
is contributed to the interest on the idc loan the continued 
repayment of the idc loan facility as well as the increase in the 
environmental provision
bindura nickel corporation
the value of current assets increased by 41m 2013 17m 
increase to 131m 2013 90m still being the result of the 
restart programme which necessitates increased inventory in the 
prior year noncurrent assets excluding investments of 05m of 
bnc was impaired and the noncurrent assets of trojan impaired 
in 2013 was reversed in the current ﬁnancial year as described 
in note 35 
other mwana africa group
the value of noncurrent assets increased to 648m 2013 615m 
additional exploration expenditure was capitalised during the year 
in accordance with the group’s policy
group liquidity
at 31 march 2014 the group held cash of 91m 2013 152m 
included in the group cash balance is 18m 2013 17m 
reserved for loan repayments in relation to the idc loan facility 
in freda rebecca at 30 june 2014 the group held cash of 73m  
30 june 2013 52m
idc facility
freda rebecca gold mine has drawn down the full 10m of the 
idc project loan facility
idc project loan
 millions 2014 2013
opening balance 61 79
interest 04 06
draw down – –
repayments 22 24
closing balance 43 61
the facility is repayable in 10 equal instalments over a ﬁveyear 
period and attracts an interest rate of uslibor plus 5 with ﬁnal 
repayment in 2016
going concern
the directors after making enquiries and considering the 
uncertainties described further in note 3 basis of preparation to the 
ﬁnancial statements ‘going concern’ believe that the company and 
the group will be able to access the ﬁnancial resources to continue 
in operational existence for the foreseeable future accordingly they 
continue to adopt the going concern basis in preparing the annual 
report and ﬁnancial statements and these ﬁnancial statements 
do not include any adjustments that would result from the going 
concern basis of preparation being inappropriate  mwana africa annual report 2014
22
strategic report • overview of social and environmental responsibility
overview of social and environmental responsibility
mwana africa’s social and environmental responsibility is driven by 
its passion for creating a synergy between sustainable investments 
sustainable mining and sustainable communities mwana has 
consistently encouraged this synergy by creating safe working 
environments for staff by positively affecting the communities in 
which it operates and by minimising the environmental impact 
of its activities the company’s major contribution to surrounding 
communities and social partners is through a multifaceted approach 
of driving job creation technical support of local businesses the 
empowerment of local contractors and the purchase of goods and 
services from local suppliers 
the katanga concessions or semhkat which has 27 of its 33 
exploration licences in a joint venture with the hailiang group is 
actively involved with the daily management of the joint venture 
to ensure that standard operating procedures are implemented
the three main pillars of mwana africa’s corporate social 
responsibility csr continue to be education health and support 
of small and medium enterprises smes to help empower local 
business enterprises this resonates with government policies 
of requiring every investor to play a role in the development of 
disadvantaged communities
stakeholder engagement
stakeholder engagement with investors employees customers 
community partners and regulators and others is actively pursued 
this is done through a variety of formal and informal engagements 
brieﬁngs surveys and feedback sessions on issues raised 
workplace safety
mwana africa recognises that exploration and mining have 
inherent levels of risk we regret deeply the loss of two workers 
this year  excavator operator lovemore nyanusanu 32 at freda 
rebecca mine and support rig assistant shepherd muradzi 35 at 
the trojan nickel mine we extend our sincere condolences to their 
families colleagues and friends
at freda rebecca gold mine the implementation of proactive safety 
management programmes resulted in a losttime injury frequency 
rate ltifr of 053 in fy2014 compared with 091 in 2013 
bnc achieved an ltifr of 252 the company had progressed well 
until march 2014 when the fatality took place which resulted in 
6000 lost shifts as we moved to assess safety issues the lost
time injury severity rate ltisr increased from 26 to 45553 some 
600 managerial and nonmanagerial employees were trained 
on behaviour based safety and the system is currently in the 
implementation phase
all our mines and exploration operations achieved extended periods 
in which no losttime injuries were reported no exploration related 
incidents or accidents were reported during fy2014
freda rebecca mine maintained ohsas 18001 health and safety 
certiﬁcation the trojan mine is in the process of achieving similar 
accreditation in the very near future
operations at klipspringer remained on care and maintenance 
at the mine’s slimes retreatment project no safety health or 
environment issues were recorded during fy2014 the mine 
recorded zero lost time injuries during the same period
employee and community health
the principal health issues faced in the regions where mwana 
africa operates are malaria hivaids and waterborne diseases 
such as typhoid and cholera the company provides medicines 
education and training for the prevention and treatment of these 
diseases as well as associated infections such as tuberculosis 
mwana africa’s social 
and environmental 
responsibility is driven  
by its passion for creating 
a synergy between 
sustainable investments 
sustainable mining and 
sustainable communities strategic report
mwana africa annual report 2014
23
governance annual financial statements
strategic report • overview of social and environmental responsibility
during fy2014 there were two reports of malaria in semhkat’s 
lunsano camp the contractors concerned were treated timeously 
and returned to work within a week
freda rebecca gold mine acts in partnership with the local bindura 
municipality to provide technical support for water reticulation the 
mine also complements municipal efforts in the provision of clean 
water programmes for outlying communities to ensure access to safe 
water supplies to date 10 boreholes with manual pumps have been 
donated to local communities bnc runs its own water treatment 
plant and has oxidation ponds for handling sewage
mwana’s mine operations have all implemented communitywide 
hivaids management strategies linked to the concept of overall 
wellness they include awareness and education campaigns 
voluntary counselling and testing vct and healthcare training 
at bnc and at freda rebecca mwana africa staffs and funds the 
running of clinics for employees and their families freda rebecca 
and trojan mine clinics are certiﬁed opportunistic infections 
clinics shangani mine has also applied for this status and is 
being monitored trojan and freda rebecca are also certiﬁed as 
antiretroviral therapy art clinics and dispense antiretroviral 
arvs medication supplied by the government to affected 
employees and their dependents as well as to members of the 
local community both freda rebecca and bnc receive assistance 
from the zimbabwean business council on aids zbca bnc also 
runs an hivaids assistance project coordinated by the swedish 
workplace hiv and aids programme swhap the ﬁrst phase of 
cooperation involves the review and implementation of hivaids 
and wellness policies and practices 
at bnc a wellness programme is scheduled to be launched in 
the second quarter of the new ﬁnancial year this intervention is 
expected to result in a signiﬁcant reduction in aidsrelated psycho
social problems faced by employees and their families and also in 
problems ensuing from the period of care and maintenance safety 
health environment and quality sheq management systems 
certiﬁcation is planned for december 2015
unicef donates primary healthcare drugs to freda rebecca gold 
mine which passes on the unused portions to the local provincial 
hospital mine teams assist where required with ambulance 
services for critical health emergencies 
all semhkat personnel have access to one of two hospitals – the 
panda hospital in likasi and cmc in lubumbashi
klipspringer does not have any employee and community health 
programmes running at present due to the underground mining 
operation not being in production
at the zanikodo gold project a freshwater borehole source has 
resulted in a dramatic decrease in waterborne disease in zani 
village mosquito nets have been distributed to all employees 
and their families we give monthly ﬁnancial support to the two 
local clinics and give mwana staff free access to medication from 
the hospital
employment and labour relations
at the year’s end mwana africa employed 1605 people  
2013 1560
diversity
preference during recruitment is given to members of the local 
community especially for unskilled and semiskilled positions at 
the freda rebecca mine in zimbabwe 60 of the workforce is from 
the local town of bindura one third of all staff members at bnc 
are drawn from the surrounding communities with the exception 
of some of the senior expatriate management all employees in our 
exploration operations come from the surrounding communities 
all casual employees at semhkat are recruited locally at the 
end of fy2014 klipspringer mine employed 70 people both 
employees and contractors more than 80 of whom are from 
local communities a formal relationship with local leaders helps 
ensure that local community members beneﬁt from preferential 
recruitment opportunities
mwana employee diversity
male  female 
directors 6 1000 – 00
senior managers 165 882 22 118
employees 1368 969 44 31
labour relations
in all operations joint consultative forums with employee leaders 
and unions are conducted regularly and this has the effect of 
creating healthy labour relations the areas of mutual interest are 
generally wages conditions of employment occupational health and 
safety and serious diseases such as hivaids no work stoppages 
were reported due to industrial action across the group
the hailiang joint venture is actively assisted and encouraged to 
respect relevant drc law in connection with employees contractors 
and local casual workers regular meetings and inspections take 
place to monitor employment processes mwana africa annual report 2014
24
overview of social and environmental responsibility continued
bnc has an active workers’ committee at the trojan nickel mine and 
the workers are free to join the trade union 
community development
education
freda rebecca mine has continued to enhance its corporate 
social responsibility csr footprint in the area of education this 
is being done in partnership with other stakeholders such as the 
ngo terre des hommes tdh tdh provides school fees for some 
100 children at the batanai early childhood development centre 
freda rebecca mine is also sponsoring ﬁve students working 
towards their degrees at the zimbabwe school of mines and 
offers scholarships on a casebycase basis to academicallygifted 
students from the local community 
bnc provides onsite primary school education funds secondary 
schooling and grants a number of scholarships to higher education 
institutions for employees’ children the company also provides 
training opportunities for undergraduates from different learning 
institutions with bindura university being given the ﬁrst priority
the exploration project at zanikodo in the drc has constructed 
several classrooms for schools in the vicinity and has refurbished the 
dormitory at the adjacent secondary school in addition the project 
has also commissioned a local carpenter to construct desks for local 
primary and secondary schools the project has also been involved in 
donating stationery to local schools and has refurbished numerous 
community ofﬁces staff training in computer literacy takes place on 
a continual basis
klipspringer does not provide any assistance in this regard due to 
its being under care and maintenance detailed programmes are 
included in our social and labour plan and will be implemented once 
the mine returns to steady state production
in katanga two local workers were provided with opportunities 
for parttime study in english and management during 2013 
this programme will continue and be extended to benefit more 
local workers
enterprise development
the exploration projects continue to reach out to surrounding 
communities in the areas of routine road upgrades and the 
construction of access bridges bnc donates material such as 
waste rock to the local authority and other institutions for road 
construction and building
freda rebecca mine has consistently maintained the proportion 
of its local procurement with about 60 of total procurement 
sourced from local suppliers a considerable number of small 
business enterprises continue to be assisted by freda rebecca mine 
in providing services to the mine and mine villages the mine also 
encourages and supports local entrepreneurial ventures 
bnc similarly sourced 76 of its total procurement locally the 
remoteness of mwana’s operations in zanikodo necessitates that 
many supplies have to be imported from uganda though fuel and 
some foodstuffs are sourced locally when they are available 
the operations in katanga source 15 of goods and services from 
local villages with the remaining 85 split between the towns 
of likasi and lubumbashi villagers provide guard services for the 
camps house and ofﬁce
despite the limited nature of operations at klipspringer the 
mine strives to ensure that goods and services are sourced from 
local suppliers we estimate that between 65 and 75 of 
procurement spend was sourced from local suppliers
in 2012 bindura estates a whollyowned subsidiary of freda 
rebecca mine began establishing a commercial farm on 
the arable portions of the mine’s lease areas bindura estates 
successfully completed its ﬁrst farming season in fy2014 and 
the results are encouraging in the areas of potato soya bean 
and maize farming enhancing the local economy of bindura 
and improving food security so far this venture has provided 
employment for more than 300 women who have been engaged 
on a seasonal labour basis 
the limited income derived from diamond sales at klipspringer 
does not allow the mine to invest in infrastructure support or small 
business enterprises at present klipspringer mine personnel and 
equipment are on standby during the dry winter months to assist 
neighbouring land owners in combating the threat of runaway veld 
ﬁres that may damage property or lives including wildlife
since the yearend mwana’s freda rebecca gold mine and bnc 
have embarked on further empowerment plans in the areas of 
education and mining in collaboration with zimbabwe’s ministry 
of youth indigenisation and economic empowerment the two 
companies have offered to adopt and partner with bindura 
vocational college providing 200000 sponsorship for the 
college’s refurbishment over a period of ﬁve years in the area of 
mining freda rebecca will be assisting young people by making 
available on a tribute basis its special grant claim on areas adjacent 
to the mining lease the mine will also consider purchasing a stamp 
mill for the site for use by the beneﬁciaries and offering initial set
up technical training
artisanal and smallscale mining
where operations interact with artisanal gold miners the 
company has undertaken studies to better understand the issues 
of and challenges faced by these populations this is a prelude to 
formulating a strategy aimed at improving these miners’ working 
conditions at zanikodo in the drc pact an american ngo is 
assisting mwana with this process
strategic report • overview of social and environmental responsibility strategic report
mwana africa annual report 2014
25
governance annual financial statements
mwana africa recognises its obligation to rehabilitate the sites 
where it has operated the company has put ﬁnancial provisions 
in place for costs associated with the closure of the company’s 
operations in zimbabwe and south africa as prescribed by local 
laws these provisions are audited and reviewed annually by 
independent consultants as prescribed by regulations
anticorruption measures
the uk bribery act of 2010 updated and enhanced existing uk 
law on bribery and ensured conformity with the requirements of 
the 1997 oecd antibribery convention  it is now among the 
strictest laws governing international bribery prohibiting actively 
bribing entities or persons in the context of international business 
transactions and imposing heightened liability for companies 
directors and individuals  mwana africa plc as a company 
incorporateddoing business in the uk supports the law and has 
implemented procedures to ensure compliance with the act’s 
requirements for strong effective antibribery policies and systems  
mwana africa’s proactive measures protect it from strict liability 
that the act would otherwise impute to a company in the event of 
an unacceptable bribery attempt by any of its individual ofﬁcials  
all of mwana’s executives have signed personal commitments to 
respect the provisions and the intent of the uk bribery act of 2010 
and best practices
supply chain management
mwana africa has also been an active participant in and 
contributor to the icglroecd un goe joint forum on 
responsible mineral supply chains from conﬂictedaffected and 
highrisk areas process which started with the ﬁrst consultation 
meeting with the mining sector on december 8 2009 in paris  
the forum’s gold supplement provides speciﬁc recommendations 
for gold producers reﬁners and exporters to establish controls 
and transparency in their supply systems to ensure identiﬁable 
chain of custody  the recommendations vary depending on the 
company’s activity within the chain reﬁning mined gold original 
recycledscrap gold consolidated recycledscrap gold melted 
recycledscrap gold andor mixed gold because the risks of 
leakage are related to the speciﬁc activities involved  mwana 
africa has regularly reviewed its procedures to ensure its ongoing 
compliance with these recommendations and best practices
this strategic report
was approved by the board on 8 july 2014 and is signed on 
their behalf by
kalaa mpinga yim kwan
chief executive ofﬁcer                                                  finance director
mwana africa has also made progress with granting claims on a 
tributary basis to more than 200 applicants on its ground holdings 
near kwe kwe zimbabwe this exercise is being conducted in 
conjunction with traditional leaders and the relevant regulatory 
authorities the potential exists to assist smallscale miners with 
the viable exploitation of mineral resources and in turn provide 
employment and improve the local economy
environmental impacts and mitigation
mwana africa limits the impact of its operations on the environment 
through responsible waste disposal and prevention of pollution and 
by optimising the use of resources such as water fuel and electricity 
proactive measures are taken to conserve local biodiversity and to 
reestablish habitats disrupted by vehicle movement wasterock 
dumps and tailings dams 
in all but one of our operations internal and external environmental 
audits were completed no signiﬁcant noncompliances were 
found by zimbabwe’s environmental management authority 
freda rebecca mine has maintained its iso14001 certiﬁcation for 
environmental practices continued airquality monitoring shows 
that the dust generated by mining activities is not at a level that 
impacts negatively on employees’ or community health
bnc and the zimbabwean environmental management authority 
continue to monitor discharges from the permitted sources of 
efﬂuent the restart at bnc operations involved the reestablishment 
of sound environmental practices including programmes to reduce 
impacts and the trojan mine aims to obtain iso and ohsas 
certiﬁcation by december 2015
klipspringer continued during the year with external audits 
being conducted on our environmental impacts including water 
abstraction and water disposal no signiﬁcant areas of non
compliance were recorded
regular inspections by semhkat have been set up to monitor 
the environmental impact of the joint venture’s operations 
followed by minuted meetings
strategic report • overview of social and environmental responsibility mwana africa annual report 2014
26
gove gove gov rnan rnan nance ce ce • • • boar boar a d of d of dir dir recto ecto tors rs
board of directors as at 31 march 2014
executive directors
nonexecutive directors
kalaa mpinga 53 – chief executive ofﬁcer yim kwan 59 – finance director
yuan ching hu 40 – nonexecutive director johan botha 65 – nonexecutive director
yat hoi ning 58 – nonexecutive director stuart morris 68 – interim nonexecutive chairman mwana africa annual report 2014
27
strategic report governance financials
governance • board of directors
kalaa mpinga 53
chief executive ofﬁcer
kalaa mpinga who is a citizen of the drc has held a number of 
senior positions in different locations around the world his career 
has included working for bechtel corporation in san francisco and 
anglo american corporation of south africa from 1991 in 1995 
he joined the new mining division the division responsible for 
exploration and the acquisition of resources in africa he was 
appointed a director of anglo american corporation in 1997 kalaa 
left the group in december 2001 to pursue business opportunities 
in mining founding mwana africa holdings proprietary limited 
the forerunner of mwana africa in 2003 he is also a non
executive director of group five limited a south african leasing 
engineering and construction company
yim kwan 59
finance director
yim kwan joined the board in october 2013 mr kwan a 
chartered accountant has over 30 years of experience in ﬁnance 
commercial auditing taxation and corporate ﬁnance accumulated 
from senior positions in accounting ﬁrms and private and public 
corporations he also has extensive exposure to different business 
environments in asia africa and north america he has previously 
held the position of chief ﬁnancial ofﬁcer and board director of 
mbmi resources inc a canadian mining company focused on the 
exploration and development of nickel projects in the philippines
stuart morris 68
interim nonexecutive chairman
stuart morris was appointed to the board in december 2005 
he became a partner of kpmg south africa in 1976 later 
becoming senior partner and a member of the kpmg international 
executive and board he was chairman of the south african 
institute of chartered accountants ethics committee president of 
the johannesburg chamber of commerce and industry a public 
investment commissioner and a council member of witwatersrand 
university from 1999 until 2004 when he retired stuart was 
group ﬁnancial director of nedbank group limited he is currently 
an independent nonexecutive chairman and director including 
chairman of the audit and risk and remuneration committees of 
several other listed and unlisted entities
yat hoi ning 58
nonexecutive director
mr yat hoi ning joined the board in june 2012 he is the chairman 
of hoi mor industrial group limited china international mining 
group corporation hong kong mining exchange company 
limited and mbmi resources inc mr ning also sat as the vice 
chairman of china nonferrous metals council he has more than 
20 years’ experience in the trading investing and managing of 
nonferrous and precious metals businesses
he is the founder of a number of mining companies including 
congo international mining corporation sprl african pgm 
processing sprl and fareast nickel mining corporation
yuan ching hu 40
nonexecutive director
mr yuan ching hu joined the board in july 2012 he was born in 
1974 in taipei taiwan he studied architecture and environment 
design graduating from taiwan shu te university in 2000 he also 
has a fiduciary broker licence a marketing immovable property 
licence and is a qualiﬁed professional ﬁnancial supervisor
between 2001 and 2006 he was general manager of taiwan alife 
company where he was made an executive director in 2005 and 
in 2006 he established taiyou investment co ltd in hong kong
johan botha 65
nonexecutive director
johan botha joined the board in january 2012 johan is a south 
african citizen with over 40 years’ experience in the african 
mining sector 26 years of which were spent working across 
anglogold’s portfolio as well as working as manager in the 
technical development division since leaving anglo johan has 
assisted and managed in the development and bringing into 
production of a number of mines working for bhp and randgold 
in more recent years johan was the vice president for gold fields 
ghana ltd and then joined banro to initiate the build of the 
twangiza mine in the drc
note for details of board movements during fy2014 please go to the directors’ report on page 30 mwana africa annual report 2014
28
governance • directors’ report
directors’ report 
the directors present their report and ﬁnancial statements for the year ended 31 march 2014 
principal activities 
the group’s main activities are exploration development and production of gold nickel copper and diamonds further information concerning the activities 
of the group and its future prospects are contained in the chairman’s letter on page 6 and the review of operations and exploration on pages 10 to 17 
business review
the group proﬁt before tax was 439m 2013 321m loss the proﬁt for the year attributable to shareholders of the parent company was 366m  
2013 286m loss the directors do not recommend the payment of a dividend on ordinary shares as required by the companies act 2006 the company 
must provide a fair review of the development and performance of the group during the year ended 31 march 2014 its ﬁnancial position at the end of the year 
and likely future developments in the group’s business the information which satisﬁes these requirements is to be found in the chairman’s letter on page 6 
the chief executive ofﬁcer’s review on pages 8 to 9 the review of operations and exploration on pages 10 to 17 and the financial review on pages 19 to 21 
principal risks and uncertainties 
the principal risks and uncertainties to which the group is exposed relate to changes in the market prices of gold nickel and diamonds resource and reserves 
risk processing risk environmental risk mining and operating risk ﬁnancing risk and political risk
metal price risk
fluctuations in metal prices can clearly affect the proﬁtability of mining operations the group seeks to protect itself from adverse ﬂuctuations by investing 
in projects which can operate economically in lower metal price environments and by controlling operating costs the group uses no ﬁnancial instruments or 
hedging products to ﬁx metal prices
the impact of the metal prices on the performance of the period is assessed in note 34
resource and reserve risk
there is a risk that estimates of mineral resources and reserves overstate their economic potential this uncertainty could give rise to a situation where a 
mine is or becomes commercially unviable
the group manages risk by ensuring that all mineral resource and reserve estimates are calculated by reference to internationallyaccepted standards in this 
case the australian code for reporting of exploration results mineral resources and ore reserves ‘jorc’
in addition all mineral resource estimates published by the group are signed off by an independent qualiﬁed person 
information about the resources and reserves is included in the review of operations and exploration
processing risk
there is a risk that the processing of ore to recover metal fails to deliver recoveries expected and this may have the effect of reducing projected proﬁtability 
all of the group’s existing mining operations have a long history of economic production and the processing techniques used are well understood when the 
group invests in new projects the metallurgical processes are thoroughly tested and reviewed by independent consultants before any investment is made
environmental risk
exploration and development of a project can be adversely affected by environmental legislation and the unforeseen results of environmental studies carried 
out during evaluation of a project once a project is in production unforeseen events can give rise to environmental liabilities andor temporary closure of 
mining operations
the group takes every care to comply with environmental legislation in the countries in which it operates and designs its training and procedures to minimise 
the environmental impact of operations
the impact of the existing environmental obligations on the ﬁnancial statements is disclosed in note 29 the details of the mitigating actions undertaken by 
the group during the period are disclosed in the section environmental impacts and mitigation of the overview of social and environmental responsibility
mining and operating risk
mining is an inherently risky activity and can involve ground instability failure of machinery and human error the group makes every effort to ensure that these 
risks are minimised by ensuring that mining operations are professional that a high level of workforce training and education is maintained and by prompt 
reporting of incidents to management
information about the health and safety framework at freda rebecca and bnc is included in the overview of social and environmental responsibility on 
page 22 of this report
financing risk
mining is a capital intensive business and there is a risk that if ﬁnance is not available for the development or further exploration of a project then the value 
of the project may not be realised mwana’s ﬁnancing risk is linked to the availability of funding in the capital and debt market which are impacted by their 
perception of commodity and country risk mwana seeks to mitigate its ﬁnancing risk by diversifying its sources of ﬁnance for the development of its projects financials • contents
mwana africa annual report 2014
29
financials • contents
strategic report governance financials
governance • directors’ report
political risk
there are political risks impacting the group’s operations in africa including indigenisation regulations in zimbabwe details of this risk and the actions 
undertaken to mitigate it are detailed below
zimbabwean indigenisation
in 2007 the zimbabwean government published the indigenisation and economic empowerment act which made provision for the indigenisation of up to 
51 of all foreign owned businesses operating in zimbabwe regulations in support of the indigenisation act were published in february 2010 in preparation 
for the implementation of the act
on 25 march 2011 the minister of youth development indigenisation and empowerment published a notice in the government gazette promulgating the 
indigenisation and economic empowerment general regulations in statutory instrument 21 of 2010 the document sets out the requirements for the 
implementation of the indigenisation act and its supporting regulations as they pertain to the mining sector these regulations include the requirement to sell a 
sufﬁcient shareholding so that 51 or a controlling interest is owned by indigenous zimbabweans andor provides for foreign investors to earn indigenisation 
credits to meet the ownership requirements
during the year ended 31 march 2013 mwana had disposed of 15 of freda rebecca to an indigenous zimbabwean 
a community trust has been established in the year ended 31 march 2013 and discussions are underway with this trust about a disposal of some shareholding 
in freda rebecca to this trust furthermore discussions remain ongoing with the zimbabwean government to determine any further impact on mwana’s 
shareholding in its zimbabwean assets 
the board has considered the impact of the uncertainties stemming from indigenisation risk on the ﬁnancial statements as disclosed in note 3 regarding the 
basis of preparation of the ﬁnancial statements and in the note 22 regarding investments 
key performance indicators
management monitors the group’s liquidity requirement on a weekly basis financial and operational performance is measured regularly and operational 
updates are published quarterly
key performance indicators are speciﬁc to each area of the business
freda rebecca
key performance indicators include tonnes mined and processed grade of material delivered to plant gold recovery operating costs per ounce produced ounces 
of gold produced ﬁnancial performance and management of assets health safety and environmental incidents including lost time events due to injury refer to 
page 11 in the review of operations and exploration
bindura nickel
key performance indicators in respect of the trojan mine include tonnes mined and processed grade of nickel delivered to the plant nickel recovery operating 
costs per lb tonnes of nickel in concentrate within speciﬁcations both in mgo and moisture content other measures considered are ﬁnancial performance 
and management of assets health safety and environmental incidents including lost time events due to injury the remainder of the bnc operations remain on 
care and maintenance and the key performance areas include maintenance and the operating integrity of all the assets and the ﬁnancial performance against 
the care and maintenance budget refer to pages 13 to 14 in the review of operations and exploration
exploration projects
key performance indicators include the addition of resource ounces in the case of zani and the identiﬁcation of drill targets at semhkat refer to pages 12 
and 15 in the review of operations and exploration
changes in share capital
details of changes in the share capital during the year are set out in note 27 to the ﬁnancial statements 
creditor payment policy
each operating company in the group is responsible for agreeing the terms of transactions including payment terms with suppliers and provided 
that suppliers perform in accordance with the agreed terms it is the group’s policy that payment is made accordingly trade creditors of the group at  
31 march 2014 represented 76 days 2013 65 days of annual purchases including capital expenditure
subsequent events 
the post balance sheet events are described in note 36 to the ﬁnancial statements  mwana africa annual report 2014
30
governance • directors’ report
directors 
the current directors of the company are as follows 
executive directors nonexecutive directors
kk mpinga chief executive ofﬁcer sg morris interim chairman appointed as interim chairman  
24 february 2014
yc kwan finance director – appointed 1 october 2013 yh ning
yc hu
jl botha
the directors who left during the year were as follows
oag baring resigned 1 september 2013
ja anderson retired 27 september 2013
e denis retired 27 september 2013
dar mcalister resigned 30 september 2013
m wellesleywood was appointed a director on 3 september 2013 and left on 24 february 2014  
jl botha and sg morris are retiring by rotation and being eligible offer themselves for reelection 
yc kwan was appointed as a director after the last annual general meeting and in accordance with the articles  association retires at the forthcoming 
annual general meeting being eligible mr kwan offers himself for reelection
the interests of the directors and their remuneration are described in the directors’ remuneration report which is on pages 32 to 36 
major shareholdings 
the share register records that the following shareholders held 3 or more of the issued share capital of the company at 5 may 2014
shareholder number of shares  interest
china international mining group corporation 299424282 214
hsbc client holdings nominee uk limited 126665392 91
yat hoi ning 106709262 76
lynchwood nominees limited 49381326 35
barclayshare nominees limited 44241658 32
smart landscape holdings limited 43980796 32
directors’ report continued financials • contents
mwana africa annual report 2014
31
financials • contents
strategic report governance financials
governance • directors’ report
international financial reporting standards 
the group has prepared its consolidated accounts for the year ended 31 march 2014 in accordance with international financial reporting standards as 
endorsed by the european union ifrss
directors’ and officers’ liability insurance 
the company has purchased directors’ and ofﬁcers’ liability insurance which remains in place at the date of this report
political contributions and charitable donations 
total contributions of 113512 2013 799205 were made during the year 58914 2013 237162 as political contributions and 54599  
2013 562043 as charitable donations 
disclosure of information to auditors 
the directors who held ofﬁce at the date of approval of this directors’ report conﬁrm that so far as they are each aware there is no relevant audit information 
of which the company’s auditors are unaware and each director has taken all the steps that he ought to have taken as a director to make himself aware of 
any relevant audit information and to establish that the company’s auditors are aware of that information 
auditors 
in accordance with section 418 of the companies act 2006 a resolution to appoint kpmg llp as auditors of the company is to be proposed at the 
forthcoming annual general meeting
by order of the board 
s gilbert
company secretary
8 july 2014 mwana africa annual report 2014
32
governance • directors’ remuneration report
remuneration committee 
the remuneration committee comprising nonexecutive directors jl botha chairman and sg morris reviews the performance of the executive directors 
and sets and reviews the scale structure and basis of their remuneration and the terms of their service agreements paying due regard to the interests of 
shareholders as a whole and the performance of the company 
in determining the remuneration of executive directors the remuneration committee seeks to enable the company to attract and retain executives of the 
highest calibre the remuneration committee also makes recommendations to the board concerning the allocation of share options to employees no director 
is permitted to participate in discussions or decisions concerning his own remuneration 
remuneration policy 
the policy on directors’ remuneration is that the overall remuneration package should be sufﬁciently competitive to attract and retain individuals of a quality 
capable of achieving the group’s objectives 
the remuneration policy is designed such that individuals are remunerated on a basis that is appropriate to their position experience and value to the company
the remuneration committee determines the contract terms basic salary and other remuneration for each of the executive directors including performance 
related share options bonuses pension rights and any compensation payments 
executive remuneration package 
the details of individual components of the remuneration package and service and employment contracts are discussed below 
basic salary and beneﬁts 
the policy is to review salary and beneﬁts annually against competitive market data and analysis and adjust accordingly 
bonus scheme 
there is no formal bonus scheme in place bonus awards in respect of the year ended 31 march 2014 are set out in the directors’ remuneration report 
share options 
the company has outstanding options under an unapproved share option scheme adopted in 1997 1997 scheme and a new scheme which was approved 
by shareholders at the company’s annual general meeting on 31 july 2007 2007 scheme details of option awards made under these schemes are detailed 
in note 33
1997 scheme 
under the 1997 scheme unapproved share options were granted to directors and employees by the board the company’s policy on the granting of share 
options is to make such awards that are necessary to recruit and retain executives 
the company has operated this scheme since 1997 where options were granted to any employee ofﬁcer or director of the company or any subsidiary of the 
company the limit for options granted under this scheme was not to exceed 15 of the number of issued ordinary shares from time to time 
the board granted options at its discretion the subscription price was fixed by the board at the price per share on the dealing day preceding the date 
of grant 
these options vest immediately and may be exercised at any time within a sevenyear period from the date of the grant unless the board determines 
otherwise the options lapse if not exercised by the seventh anniversary of the grant it was the board’s policy to spread the vesting period for options granted 
to employees over two to three years 
unless the board agrees otherwise the right to exercise an option terminates on the holder ceasing to be a participant subject to certain exceptions which 
broadly apply in the event of death of the option holder or where the option holder ceases to be a participant due to retirement ill health accident or 
redundancy in such a case the option may be exercised within six months of such event provided such exercise will take place within seven years of the 
original date of grant 
2007 scheme 
the 2007 scheme allows for awards of both tax approved options approved options to be made to employees resident in the united kingdom and 
unapproved options unapproved options to be made to both resident and nonresident employees the company’s policy on the granting of share options is 
to make such awards that are necessary to recruit and retain executives details of option awards made under this scheme are detailed in note 33 
the company has operated this scheme since december 2007 where options may be granted to fulltime employees and directors of the company or any 
subsidiary of the company the overall limit for options granted under this scheme and any other employees’ share scheme adopted by the company is in any 
rolling 10year period 10 of the issued ordinary share capital including treasury shares of the company for the time being plus 8100000 ordinary shares 
there is an individual limit of a maximum of ordinary shares to the value of £30000 in respect of approved options 
directors’ remuneration report financials • contents
mwana africa annual report 2014
33
financials • contents
strategic report governance financials
governance • directors’ remuneration report
options may be granted when the remuneration committee determines within 42 days of the announcement by the company of its full or interim results 
options may be granted outside the 42day period if the remuneration committee considers there to be exceptional circumstances options must be granted 
subject to performance conditions being satisﬁed the performance conditions must be objective and save where the remuneration committee determines 
there to be exceptional circumstances the performance conditions must relate to the overall ﬁnancial performance of the company or the market value of 
ordinary shares over a period of at least three years the performance conditions can be waived or amended by the remuneration committee if it determines 
that a change of circumstances means that the performance conditions cannot reasonably be met no consideration is payable on the grant of an option and 
no option may be granted after 31 july 2017 
the remuneration committee determines the exercise price before the options are granted which cannot be less than the market value of the shares on the 
date of grant 
the options can be exercised only on or after the third anniversary of the date of grant provided the performance conditions have been satisﬁed or waived by 
the remuneration committee the options lapse if not exercised by the 10th anniversary of the grant 
these options lapse when the option holder ceases to be an eligible employee in the case of death a participant’s personal representatives may exercise 
hisher options within 12 months after the date of death where an option holder ceases to be an employee by reason of injury disability redundancy the 
company that employs the option holder ceasing to be a subsidiary of the company retirement pregnancy or in any other circumstances determined by the 
remuneration committee the options may be exercised within six months of the termination of employment or such longer period as may be determined by 
the remuneration committee
share incentives 
the share incentive scheme was approved by shareholders at the company’s annual general meeting on 31 july 2007 the share incentive scheme is designed 
to complement the share option scheme to facilitate awards to selected executives and managers the share incentive scheme permits the award of any one 
or a combination of the following incentives
• the sale of ordinary shares on deferred payment terms
• share awards as part of a bonus scheme by way of nil cost options in consideration of cash bonuses forgone on terms that would be determined by the 
remuneration committee of the company and
• the issue of share appreciation rights either by the company or ebt as deﬁned below
the company has also adopted an employees’ beneﬁt trust ebt which will operate in conjunction with the share option scheme and share incentive scheme 
the ebt has not yet been utilised for this purpose and there have been no awards under the share incentive scheme since it was approved by shareholders
pensions 
the company does not operate a pension scheme for executive directors but does according to the director’s preference contribute to the personal pension 
plan of each executive director or pays cash in lieu of such contributions up to a speciﬁed maximum of 125 of salary no pension contributions are made 
in respect of nonexecutive directors
fees 
the fees for nonexecutive directors are determined by the board having taken independent expert advice on appropriate levels and are reviewed on an 
annual basis 
service contracts 
the service and employment contracts of the executive directors are not of a ﬁxed duration and therefore have no unexpired terms but continuation in ofﬁce 
as a director is subject to reelection by shareholders as required under the company’s articles of association the company’s policy is for executive directors 
to have service and employment contracts with provision for termination of no longer than 12 months’ notice  
the nonexecutive directors do not have service contracts letters of appointment provide for termination of the appointment with up to three months’ notice 
by either party 
details of the current directors’ contracts or appointment dates are as follows
executive directors employer date of contract
kk mpinga mwana africa holdings limited 16 december 2009
yc kwan mwana africa holdings limited 30 september 2013
nonexecutive directors employer date of appointment
sg morris mwana africa plc 6 december 2005
jl botha mwana africa plc 4 january 2013
yh ning mwana africa plc 7 june 2013
yc hu mwana africa plc 4 july 2013 mwana africa annual report 2014
34
governance • directors’ remuneration report
directors’ remuneration report continued
directors’ remuneration
the remuneration of the directors who held ofﬁce during the year is as follows 
director
salary 
fee
 12

annual  
bonus
 5

beneﬁts in  
kind
 6

sharebased 
payments

2014
total

2013
total

kk mpinga 480189 – 82954 149454 712597 1269686
yc kwan
 8
119104 – – 4163 123267 –
sg morris
 3
49627––– 49627 158028
jl botha
 3 10
27354––– 27354 79014
yh ning
 3
24813––– 24813 72429
yc hu
 3
24813––– 24813 69137
oag baring
 4 11
14999 – 43781 13265 72045 312885
dar mcalister
 11 12
729304 – 36417 63496 829217 943088
ja anderson
 3 11
22332––– 22332 118520
e denis
 3 7 11
14888––– 14888 79014
m wellesleywood
 9 10 12
81467––– 81467 –
total 1588890 – 163152 230378 1982420 3101801
1
 salaries for mr mpinga and mr mcalister were increased with effect from 1 april 2013
2
 salary for mr mpinga was reduced by 25 with effect from 1 september 2013
3
 the fees payable to mr morris mr anderson mr denis mr botha mr ning and mr hu were decreased by 50 with effect from 1 july 2013
4
 mr baring was in receipt of a fee until june 2013 and beneﬁts in kind in respect of his role as nonexecutive chairman until 31 august 2013
5
  no bonuses were awarded to any directors in respect of the year ended 31 march 2014 in august 2013 mr mpinga waived his bonus award of £330000 541492 in respect 
of the year to 31 march 2013 
6
  beneﬁts in kind relate to life and medical insurance and pension contributions for mr mcalister until 30 september 2013 to life and medical insurance for mr baring until 
31 august 2013 and to pension contributions and security services for mr mpinga
7
 the fee is paid to sapiensa sprl a company in which mr denis has an interest
8
 mr kwan was appointed a director on 1 october 2013
9
  mr wellesleywood was appointed nonexecutive chairman on 3 september 2013 and left the board on 24 february 2014
10
  mr botha and mr wellesleywood were paid additional fees of £800 for attendance at each board committee meeting since the beginning of december 2013 when these 
payments were approved by the board 
11
  mr baring resigned from the board on 1 september 2013 mr anderson and mr denis retired from the board on 27 september 2013 and mr mcalister resigned from the board 
on 30 september 2013
12
 basic salary includes ex gratia payments to mr mcalister of £322743 in september 2013 and to mr wellesleywood of £15000 in march 2014
contributions in lieu of director’s pensions were as follows
2014 
’000
2013
’000
director
kk mpinga 60 65
yc kwan – –
sg morris – –
jl botha – –
yh ning – –
yc hu – –
ja anderson – –
e denis – –
oag baring – 21
dar mcalister 25 49
m wellesleywood – –
total 85 135
all contributions were either made to personal pension schemes of directors or accrued for future payment to personal pension schemes  financials • contents
mwana africa annual report 2014
35
financials • contents
strategic report governance financials
governance • directors’ remuneration report
directors and directors’ share interests 
the directors during the year and their beneﬁcial interests at the yearend were as follows
ordinary shares of 1p each at 31 march 2014 ordinary shares of 1p each at 31 march 2013
number  number 
palanka trust
 1
16227260 116 16227260 145
katema mukubayi trust
 2
19981415 143 19981415 178
kk mpinga
 3
3000000 021 3000000 027
yc kwan – 000 – 000
sg morris 2409090 017 2409090 022
jl botha 954545 007 954545 009
yh ning
 4
406133544 2910 242878827 2170
yc hu 454545 003 454545 004
oag baring
 5 7
2652976 018 3080879 028
dar mcalister
 7
1000000 007 1000000 009
ja anderson
 7
1190909 009 1190909 011
e denis
 6 7
1454545 010 1454545 013
m wellesleywood – 000 – 000
1
 mr mpinga controls the voting rights in palanka trust 
2
 related to mr mpinga 
3
 in addition to the shares in mwana africa plc mr mpinga also holds 666667 shares in bnc this equates to 006 in bnc
4
 includes 299424282 shares held by china international mining group corporation a company in which mr ning has an interest
5
 held through mr baring’s personal pension fund
6
 includes 454545 shares held by sapiensa sprl a company in which mr denis has an interest
7
 presented to the date of ceasing to be a director
directors’ share options 
aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the company granted to or held by 
the directors details of directors’ interests in shares held under option are shown below
ofﬁcer
options  
held at  
31 march 
2013
options 
granted 
during the 
year
options 
lapsed 
cancelled 
during the 
year
options 
exercised 
during the 
year
options  
held at  
31 march 
2014
exercise 
price
 1
latest  
expiry  
date
unapproved options –  
1997 scheme 
kk mpinga 1000000 – – – 1000000 79p 12072014
yc kwan
 2
–––––––
sg morris – – – – – – –
jl botha –––––––
yh ning –––––––
yc hu –––––––
oag baring
 3
 –––––––
dar mcalister
 3
–––––––
ja anderson
 3
–––– –––
e denis
 3
 –––– –––
m wellesleywood
 3
––––––– mwana africa annual report 2014
36
governance • directors’ remuneration report
ofﬁcer
options  
held at  
31 march 
2013
options 
granted 
during the 
year
options 
lapsed 
cancelled 
during the 
year
options 
exercised 
during the 
year
options  
held at  
31 march 
2014
exercise 
price
 1
latest  
expiry  
date
unapproved options –  
2007 scheme 
20000000 – – – 20000000 10p 10122022
yc kwan
 2
– 3000000 – – 3000000 16p 03102023
sg morris – – – – – – –
jl botha –––––––
yh ning –––––––
yc hu –––––––
oag baring
 3
 2800000 – – –2800000 9p30092014
dar mcalister
 3
7679684 – – – 7679684 7p 10122022
ja anderson
 3
–––– –––
e denis
 3
 –––– –––
m wellesleywood
 3
– 8000000 8000000––––
approved options –  
2007 scheme
kk mpinga –––––––
yc kwan
 2
–––––––
sg morris – – – – – – –
jl botha –––––––
yh ning –––––––
yc hu –––––––
oag baring
 3 
–––––––
dar mcalister
 3
574861 – – – 574861 9p 10122022
ja anderson
 3
–––– –––
e denis
 3
 –––– –––
m wellesleywood
 3
–––––––
1
 exercise price is the weighted average of all share options held based on the price at the grant date
2
 presented from the date of appointment as a director
3
 presented to the date of ceasing to be a director the options are still held by these previous directors where shown as held above
no share options were exercised during the current or prior year
the intrinsic values of all options which have vested during the year were nil 2013 nil
no options have been awarded to directors between the yearend and the signing of these accounts 
the market price of the company’s shares on 31 march 2014 was 15 pence per ordinary share and the highest and lowest share prices during the year were 
465 pence and 11 pence respectively 
the agreements covering directors’ options are available for inspection at the company’s registered ofﬁce premier house 10 greycoat place london 
sw1p 1sb the company’s register of directors’ interests which is also open to inspection contains full details of the directors’ shareholdings and options 
to subscribe 
signed on behalf of the board by 
sg morris
chairman
8 july 2014
directors’ remuneration report continued financials • contents
mwana africa annual report 2014
37
financials • contents
strategic report governance financials
governance • statement of directors’ responsibilities
statement of directors’ responsibilities
to the shareholders of mwana africa plc 
the directors are responsible for preparing the annual report and the group and parent company ﬁnancial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare group and parent company ﬁnancial statements for each ﬁnancial year as required by the aim rules of the 
london stock exchange they are required to prepare the group ﬁnancial statements in accordance with ifrss as endorsed by the eu and applicable law and 
have elected to prepare the parent company ﬁnancial statements on the same basis 
under company law the directors must not approve the ﬁnancial statements unless they are satisﬁed that they give a true and fair view of the state of affairs 
of the group and parent company and of their proﬁt or loss for that period in preparing each of the group and parent company ﬁnancial statements the 
directors are required to
• select suitable accounting policies and then apply them consistently
• make judgments and estimates that are reasonable and prudent
• state whether they have been prepared in accordance with ifrss as endorsed by the eu and
• prepare the ﬁnancial statements on the going concern basis unless it is inappropriate to presume that the group and the parent company will continue  
in business
the directors are responsible for keeping adequate accounting records that are sufﬁcient to show and explain the parent company’s transactions and disclose 
with reasonable accuracy at any time the ﬁnancial position of the parent company and enable them to ensure that its ﬁnancial statements comply with the 
companies act 2006 they have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to 
prevent and detect fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and ﬁnancial information included on the company’s website legislation in 
the uk governing the preparation and dissemination of ﬁnancial statements may differ from legislation in other jurisdictions 
on behalf of the board
yc kwan
finance director
8 july 2014 mwana africa annual report 2014
38
governance • statement of corporate governance
statement of corporate governance
statement of corporate governance
the directors support the principles of good corporate governance while not mandatory for an aim company the directors have implemented where 
practical for a company of this size and nature certain provisions of the principles of good governance and code of best practices set out in the uk corporate 
governance code the disclosures presented herein are limited and are not intended to constitute a corporate governance statement as prescribed by the 
disclosures and transparency rules or the companies act
the board has also considered the guidance published by the financial reporting council concerning the internal control requirements of the uk corporate 
governance code in line with the turnbull report the board regularly reviews key business risks via a number of properly constituted committees in addition 
to the ﬁnancial risks facing the group in the operations of the business
the board
the board meets at least quarterly throughout the year the board is responsible for formulating reviewing and approving the group’s strategy planning 
budgets acquisitions risk and environmental management
the nonexecutive directors mr sg morris and mr jl botha are considered by the board to be independent of management and free from any business or other 
relationship which could materially affect the exercise of their independent judgement messrs yh ning and yc hu have an interest in the group’s largest 
shareholder china international mining group corporation
directors have the facility to take external independent advice in furtherance of their duties at the group’s expense and have access to the services of the 
company secretary
the board delegates certain of its responsibilities to the audit remuneration and nomination committees under clearly deﬁned terms of reference
audit committee 
the audit committee meets at least twice during the year and is responsible for ensuring that the ﬁnancial performance of the company is properly reported 
on and monitored and for meeting the auditors and reviewing the auditors’ reports relating to the accounts the committee also recommends the appointment 
of and reviews the fees of the external auditors it meets once a year with the auditors without executive board members present the audit committee 
comprises at least three members two of whom shall be nonexecutive the current membership of the committee is mr sg morris chairman and mr jl botha 
both of whom are nonexecutive and mr yc kwan
remuneration committee
the remuneration committee meets at least twice per year it reviews the performance of the executive directors and sets and reviews the scale structure and 
basis of their remuneration and the terms of their service agreements paying due regard to the interest of shareholders as a whole and the performance of 
the company the remuneration committee comprises two nonexecutive directors mr jl botha chairman and mr sg morris the directors’ remuneration 
report appears on pages 32 to 36
nomination committee
the role of the nomination committee is to recommend any new appointment of directors to the board based on the merits of the candidates and the 
relevance of their background and experience it periodically reviews the structure size and composition of the board
the committee comprises at least three members two of whom shall be nonexecutive directors the committee is chaired by the chairman of the board 
mr sg morris mr jl botha is the other nonexecutive member and mr kk mpinga is also a member of the committee
the nomination committee met twice during the year the appointments of mr yc kwan as finance director and mr m wellesleywood as nonexecutive 
chairman were considered and approved by the full board financials • contents
mwana africa annual report 2014
39
financials • contents
strategic report governance financials
governance • statement of corporate governance
internal controls
the directors have overall responsibility for the group’s internal control effectiveness in safeguarding the assets of the group internal control systems are 
designed to identify and mitigate the particular type of business operational and safety risks to which the group is exposed internal controls can only provide 
a reasonable but not absolute assurance against material misstatements or loss
the board reviews the effectiveness of the internal controls through the audit committee and through executive management reporting to the board business 
plans budgets and authorisation limits for the approval of signiﬁcant expenditure including investments are appraised and approved by the board the board 
also seeks to ensure that there is a proper organisational and management structure with clear responsibilities and accountability
it is the board’s policy to ensure that the management structure and the quality and integrity of the personnel are compatible with the requirements of 
the group
the company complies with rule 21 of the aim rules for companies regarding dealings in the company’s shares and has adopted a share dealing code to 
ensure compliance by the directors and applicable employees
shareholder relationships
during the year the executive directors met frequently with shareholders and the investment community this included formal road shows and presentations 
onetoone meetings analysts meetings and press interviews the chief executive ofﬁcer and finance director regularly brief the board on these contacts and 
relay the views expressed 
antibribery and corruption
following introduction of the uk antibribery  corruption act the board introduced a group policy in relation thereto the board takes a zero tolerance 
approach to bribery and corruption and will uphold all laws relevant to countering bribery and corruption in all jurisdictions in which the group operates 
the board expect the highest standard of personal and professional behaviour from all employees within the group and from external contractors and third 
parties working or performing services on behalf of the group the board will not tolerate any incidence of bribery and will take action against anyone 
employed within the group or associated with the group who commits bribery
the group’s policy on bribery and corruption has been communicated to all employees and contractors
the board has delegated oversight of the policy to the audit committee and has appointed the ﬁnance director to act as the group’s antibribery 
compliance ofﬁcer 
the group regularly monitors and investigates all allegations of fraud and bribery and corruption and reports on all issues arising to the board mwana africa annual report 2014
40 financials • contents
mwana africa annual report 2014
41
financials • contents
strategic report governance financials
governance • independent auditor’s report to the members of mwana africa plc
independent auditor’s report to the members of mwana africa plc
we have audited the ﬁnancial statements of mwana africa plc for the year ended 31 march 2014 set out on pages 42 to 80 the ﬁnancial reporting 
framework that has been applied in their preparation is applicable law and international financial reporting standards ifrss as adopted by the eu and as 
regards the parent company ﬁnancial statements as applied in accordance with the provisions of the companies act 2006 
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006 our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose 
to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company and the company’s members as a body 
for our audit work for this report or for the opinions we have formed 
respective responsibilities of directors and auditor  
as explained more fully in the statement of directors’ responsibilities set out on page 37 the directors are responsible for the preparation of the ﬁnancial 
statements and for being satisﬁed that they give a true and fair view our responsibility is to audit and express an opinion on the ﬁnancial statements in 
accordance with applicable law and international standards on auditing uk and ireland those standards require us to comply with the auditing practices 
board’s ethical standards for auditors 
scope of the audit of the financial statements  
a description of the scope of an audit of ﬁnancial statements is provided on the financial reporting council’s website at wwwfrcorgukauditscopeukprivate
opinion on financial statements  
in our opinion 
• the ﬁnancial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 march 2014 and of the group’s 
proﬁt for the year then ended 
• the group ﬁnancial statements have been properly prepared in accordance with ifrss as adopted by the eu 
• the parent company ﬁnancial statements have been properly prepared in accordance with ifrss as adopted by the eu and as applied in accordance with 
the provisions of the companies act 2006 and 
• the ﬁnancial statements have been prepared in accordance with the requirements of the companies act 2006 
emphasis of matter – carrying value of company investments 
in forming our opinion on the ﬁnancial statements which is not modiﬁed we have considered the adequacy of the disclosures made in note 22 to the ﬁnancial 
statements concerning the carrying value of investments held by the company in the zimbabwean operation of 965m 2013 746m as disclosed in 
note 22 there are uncertainties linked to the implementation of the indigenisation law in zimbabwe the possible impact of this law is uncertain and causes 
doubt over the carrying value of the investments held by the company the ﬁnancial statements do not include the adjustments that would result from the 
impact of the zimbabwe indigenisation legislation on the carrying value of the investment held by the company 
opinion on other matter prescribed by the companies act 2006 
in our opinion the information given in the strategic report and the directors’ report for the ﬁnancial year for which the ﬁnancial statements are prepared is 
consistent with the ﬁnancial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our opinion 
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from branches not 
visited by us or 
• the parent company ﬁnancial statements are not in agreement with the accounting records and returns or 
• certain disclosures of directors’ remuneration speciﬁed by law are not made or 
• we have not received all the information and explanations we require for our audit 
j lowes
senior statutory auditor 
for and on behalf of kpmg llp  statutory auditor 
chartered accountants 
15 canada square canary wharf
8 july 2014  mwana africa annual report 2014
42
annual financial statements • consolidated statement of profit and loss
note
2014 
’000
2013 
’000
revenue 8 142460 109159
cost of sales 10 83850 59051
gross proﬁt 58610 50108
other income 620 393
freight and insurance expenses 12098 514
general and administrative expenses 11240 11594
care and maintenance expenses 1890 12956
corporate expenses 6442 8504
operating proﬁt 10 27560 16933
retrenchment and restructuring expenses
 1
2004 –
dividends received – 83
lossproﬁt on sale of assets 11 1636 257
fair value adjustment 6 388
foreign exchange gain 1055 790
ebitda
 2
24969 17675
impairment loss 35 671 43949
impairment reversal 35 27987 –
depreciation 7631 5651
finance income 15 319 645
finance expense 15 1033 784
net proﬁtloss before income tax 43940 32064
income tax creditexpense 16 6655 11397
net proﬁtloss for the year 50595 43461
net proﬁtloss attributable to
owners of the parent 36605 28641
noncontrolling interest 13990 14820
net proﬁtloss for the year 50595 43461
earningsloss per share
basic earningsloss per share us cents 19 289 262
diluted earningsloss per share us cents 19 289 262
the notes on pages 51 to 80 are an integral part of these consolidated ﬁnancial statements
1
  following a decision to reduce corporate costs certain staff retrenchment and onceoff costs in respect of restructuring costs were incurred during the year in respect of london 
johannesburg and drc semhkat
2
 earnings before interest impairments tax depreciation and amortisation
consolidated statement of profit and loss
for the year ended 31 march 2014 mwana africa annual report 2014
43
strategic report governance annual financial statements
annual financial statements • consolidated statement of comprehensive income
2014 
’000
2013 
’000
proﬁtloss for the year 50595 43461
other comprehensive loss
items that are or may be reclassiﬁed subsequently to proﬁt or loss 
foreign currency translation differences 884 1277
other comprehensive loss for the year net of income tax 884 1277
total comprehensive proﬁtloss for the year 49711 44738
total comprehensive proﬁtloss  attributable to
owners of the parent 35721 29918
noncontrolling interest 13990 14820
total comprehensive proﬁtloss for the year 49711 44738
these ﬁnancial statements were approved by the board of directors on 8 july 2014 and were signed on its behalf by
sg morris yc kwan
chairman finance director 
 
consolidated statement of comprehensive income
for the year ended 31 march 2014 mwana africa annual report 2014
44
annual financial statements • statement of financial position
consolidated statement of financial position
as at 31 march 2014
note
2014 
’000
2013 
’000
assets
noncurrent assets
property plant and equipment 20 81355 49283
intangible assets   21 62986 58262
investments 22 615 1354
deferred tax assets 17 19406 1186
noncurrent receivables 23 2288 1268
total noncurrent assets 166650 111353
current assets
inventories 24 12994 11206
trade and other receivables 25 18832 12911
cash and cash equivalents 26 9089 15194
total current assets 40915 39311
total assets 207565 150664
equity
issued share capital 27 99572 95162
share premium 69536 69088
reserves 97157 96526
retained earnings 140628 177949
total equity attributable to equity holders of the parent 125637 82827
noncontrolling interest 3284 10793
total equity 128921 72034
liabilities
noncurrent liabilities
loan payable 28 2446 4273
rehabilitation provisions 29 17847 18893
other payables – 8537
deferred tax liabilities 17 18878 10506
total noncurrent liabilities 39171 42209
current liabilities
trade payables 15300 10825
accruals and other payables 30 21568 16481
provisions 31 2605 9115
total current liabilities 39473 36421
total liabilities 78644 78630
total equity and liabilities 207565 150664
the notes on pages 51 to 80 are an integral part of these ﬁnancial statements 
these ﬁnancial statements were approved by the board of directors on 8 july 2014 and were signed on its behalf by 
sg morris yc kwan
chairman finance director 
  mwana africa annual report 2014
45
strategic report governance annual financial statements
annual financial statements • statement of financial position
company statement of financial position
as at 31 march 2014
note
2014 
’000
2013 
’000
assets
noncurrent assets
property plant and equipment 20 34 399
investments 22 97505 76823
total noncurrent assets 97539 77222
current assets 
trade and other receivables 25 80902 63598
cash and cash equivalents 26 1420 1585
total current assets 82322 65183
total assets 179861 142405
equity
issued share capital 27 99572 95162
share premium 69536 69088
reserves 2933 1418
retained earnings 3416 26607
total equity attributable to equity holders of the company 175457 139061
liabilities
current liabilities
accruals and other payables 30 4404 3344
total liabilities 4404 3344
total equity and liabilities 179861 142405
these ﬁnancial statements were approved by the board of directors on 8 july 2014 and were signed on its behalf by
sg morris yc kwan
chairman finance director 
  mwana africa annual report 2014
46
annual financial statements • consolidated statement of cash flows
consolidated statement of cash flows
for the year ended 31 march 2014
note
2014 
’000
2013 
’000
cash ﬂows from operating activities
proﬁtloss before income tax 43940 32064
adjustments for
foreign exchange movements 1055 349
depreciation 7631 5943
fair value adjustments 6 413
charge in relation to sharebased payments 512 342
decreaseincrease in rehabilitation provisions 1046 210
decrease in other provisions 9947 1743
increase in environmental assets – 96
impairment loss 671 43949
impairment reversal 27987 –
lossproﬁt on sale of noncurrent assets 1636 257
finance income 319 1435
finance costs 1033 784
15075 15697
increase in inventories 1788 3153
increasedecrease in trade and other receivables 10813 2766
increasedecrease in trade and other payables 9074 980
11548 14330
finance costs 1033 743
income tax paid 4421 9784
net cash from operating activities 6094 3803
cash ﬂows from investing activities
additions to property plant and equipment 12770 18389
investment in intangible exploration assets 5235 15331
proceeds from sale of property plant and equipment 49 340
proceeds on sale of investments – 412
finance income 319 1435
net cash used in investing activities 17637 31533
cash ﬂows from ﬁnancing activities
proceeds from issue of share capital 6990 33845
share issue expenses 413 1054
dividends paid to noncontrolling interests 150 1462
share issuance to nci 837 2015
loans advanced – 4708
loans repaid 1827 1734
net cash from ﬁnancing activities 5437 36318
net decreaseincrease in cash and cash equivalents 6106 8588
cash and cash equivalents at beginning of the year 15194 6696
exchange rate movement on cash and cash equivalents at beginning of year 1 90
cash and cash equivalents at end of the year 26 9089 15194 mwana africa annual report 2014
47
strategic report governance annual financial statements
annual financial statements • company statement of cash flows
company statement of cash flows
for the year ended 31 march 2014
note
2014 
’000
2013 
’000
cash ﬂows from operating activities
proﬁtloss before income tax 29307 39872
adjustments for
depreciation 88 74
fair value adjustments 395 –
foreign exchange movements 2234 314
loss on sale of noncurrent assets 1080 4
charge in relation to sharebased payments 512 225
impairment loss – 35107
impairment reversal 35044 –
finance income 776 715
6672 5491
increase in trade and other receivables 972 5348
increase in trade and other payables 63 1204
net cash used in operating activities 7581 9635
cash ﬂows from investing activities
additions to property plant and equipment 10 412
acquisition of investments – 24982
proceeds from sale of noncurrent assets 17 4
finance income 776 715
net cash generated byused in investing activities 783 24675
cash ﬂows from ﬁnancing activities
proceeds from issue of share capital 6990 33845
share issue expenses 413 1054
net cash from ﬁnancing activities 6577 32791
net decrease in cash and cash equivalents 221 1519
cash and cash equivalents at beginning of the year 1585 3104
exchange rate movement on cash at beginning of year 56 –
cash and cash equivalents at end of the year 26 1420 1585 mwana africa annual report 2014
48
annual financial statements • consolidated statement of changes in equity
consolidated statement of changes in equity
for the year ended 31 march 2014
share  
capital  
’000
share  
premium  
’000
balance as  at 31 march 2012 88817 42641
loss for the year ––
foreign currency translation differences ––
total comprehensive loss for the year ––
contributions by and distributions to owners
issue of ordinary shares 6345 27501
share issue expenses – 1054
sale of interest in subsidiary ––
participation in subsidiary rights issue ––
dividends paid by subsidiary ––
sharebased payment transactions ––
sharebased payment reversals ––
total contributions by and distributions to owners 6345 26447
balance as at 31 march 2013 95162 69088
balance as at 31 march 2013 95162 69088
proﬁt for the year ––
foreign currency translation differences ––
total comprehensive income for the year – –
contributions by and distributions to owners
issue of ordinary shares 4410 –
dividends ––
premium on share issue less expenses – 2101
disposal of treasury stock – 1653
sharebased payment transactions ––
sharebased payment reversals ––
total contributions by and distributions to owners 4410 448
balance as at 31 march 2014 99572 69536
1
 the treasury stock reserve represents the market value of mwana africa plc shares which were purchased but not cancelled this is held at the value on the date of purchase
2
 all of the treasury shares were sold by the company pursuant to the 20 september 2013 placing  mwana africa annual report 2014
49
strategic report governance annual financial statements
annual financial statements • consolidated statement of changes in equity
translation 
reserve  
’000
treasury  
stock
 1 2
  
’000
share based 
payments 
’000
total  
reserves  
’000
retained  
earnings  
’000
total equity 
attributable to 
equity holders 
of the parent 
’000
non 
controlling 
interest  
’000
total  
equity  
’000
96385 1719 5177 231301 149810 81491 3527 77964
–––– 28641 28641 14820 43461
1277 – – 1277 – 1277 – 1277
1277 – – 1277 28641 29918 14820 44738
– – – 33846 – 33846 – 33846
– – – 1054 – 1054 – 1054
–––– 2849 2849 3254 405
–––– 969 969 5764 6733
–––––– 1464 1464
– – 342 342 – 342 – 342
– – 2382 2382 2382–––
– – 2040 30752 502 31254 7554 38808
95108 1719 3137 260776 177949 82827 10793 72034
95108 1719 3137 260776 177949 82827 10793 72034
–––– 36605 36605 13990 50595
884 – – 884 – 884 – 884
884 – – 884 36605 35721 13990 49711
– – – 4410 – 4410 837 5247
–––––– 750 750
– – – 2101 – 2101 – 2101
– 1719 – 66 – 66 – 66
– – 512 512 – 512 – 512
– – 716 716 716–––
– 1719 204 6373 716 7089 87 7176
94224 – 2933 266265 140628 125637 3284 128921 mwana africa annual report 2014
50
annual financial statements • company statement of changes in equity
company statement of changes in equity
for the year ended 31 march 2014
share  
capital
’000
share 
premium
’000
treasury 
stock 
1
’000
share based 
payments
 2
’000
retained 
earnings
’000
total  
equity
’000
balance as at 31 march 2012 88817 42641 1719 5177 10883 145799
loss for the year –––– 39872 39872
total comprehensive loss for the year –––– 39872 39872
contributions by and distributions  
to owners
issue of ordinary shares 6345–––– 6345
premium on share issue less expenses – 26447––– 26447
sharebased payment transactions – – – 342 – 342
sharebased payment reversals – – – 2382 2382 –
total contributions by and distributions  
to owners 6345 26447 – 2040 2382 33134
balance as at 31 march 2013 95162 69088 1719 3137 26607 139061
proﬁt for the year –––– 29307 29307
total comprehensive proﬁt for the year –––– 29307 29307
contributions by and distributions  
to owners
issue of ordinary shares 4410–––– 4410
premium on share issue less expenses – 2101––– 2101
disposal of treasury stock 1653 1719 – – 66
sharebased payment transactions – – – 512 – 512
sharebased payment reversals – – – 716 716 –
total contributions by and distributions  
to owners 4410 448 1719 204 716 7089
balance as at 31 march 2014 99572 69536 – 2933 3416 175457
1  
the treasury stock reserve represents the market value of mwana africa plc shares which were purchased but not cancelled this is held at the value on the date of purchase  
all of the treasury shares were sold by the company pursuant to the 20 september 2013 placing 
2  
the sharebased payments reserve represents the accrued employee entitlements to share awards that have been charged to the income statement as well as accrued group 
employee entitlements that have been debited to investments in subsidiaries mwana africa annual report 2014
51
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
notes to the annual financial statements
for the year ended 31 march 2014
1  reporting entity
mwana africa plc ‘the company’ is a company domiciled in the uk the address of the company’s registered ofﬁce is premier house 10 greycoat place 
london sw1p 1sb the consolidated ﬁnancial statements of the company as at and for the year ended 31 march 2014 comprise the company and its 
subsidiaries together referred to as ‘the group’ and individually as ‘group entities’ and the group’s interest in jointly controlled entities the group primarily 
is involved in the mining of gold and nickel
2  adoption of international financial reporting standards as endorsed by the european union 
the consolidated ﬁnancial statements of the parent company the company and its subsidiaries together the group and the ﬁnancial statements of the 
company have been prepared in accordance with international financial reporting standards ifrs as endorsed by the european union eu 
3  basis of preparation
basis of preparation 
with the exception of certain items noted below which are carried at fair value the ﬁnancial statements have been prepared under the historical cost 
convention
the company and consolidated ﬁnancial statements have been prepared in accordance with applicable law and international financial reporting standards 
as adopted by the eu ‘ifrss’ and as regards the company ﬁnancial statements as applied in accordance with the provisions of the companies act 2006 
under section 408 of the companies act 2006 the company has elected not to present its own income statement 
going concern 
the directors having considered the group’s and the company’s current trading activities funding position and the zimbabwean environment for the period 
of at least twelve months from the date of approval of these financial statements consider it appropriate to adopt the going concern basis in preparing the 
financial statements for the year ended 31 march 2014
the group’s activities together with the factors likely to affect its future development performance and position are set out in the business review on page 28  
the ﬁnancial position of the group its cash ﬂows and liquidity position are as set out in the financial review on pages 19 to 21
during the year to 31 march 2014 operations at bnc have restarted successfully and the operating cash inﬂows from bnc together with signiﬁcant cost 
cutting measures achieved during the year have signiﬁcantly improved the group’s cash position and outlook
the directors’ cash ﬂow forecasts assume
• an average nickel price of 18500 per tonne and average gold price of 1250 per ounce
• settlement in full of the legacy creditors at bnc in line with agreements concluded last ﬁnancial year staff creditors will be settled by december 2014 and 
trade creditors in december 2015
• all planned capital expenditure to maintain existing operations with any additional capital expenditure to be funded from external sources the directors 
also plan to restart the smelter at bnc and expand the milling capacity at freda rebecca if debt funding is obtained from external sources these projects 
would impact positively the cash ﬂow forecast if achieved during the period considered for the going concern analysis
• the group’s other activities are assumed to be funded from internally generated cash resources however in line with other mining companies the group 
retains a high degree of ﬂexibility over its expenditure and will continue to pursue alternative funding options for its main exploration projects from time to 
time including potential farmout or joint venture arrangements where appropriate  
these forecasts indicate that the group will have sufﬁcient cash available to continue in operation for at least a year from the date of approval of these 
ﬁnancial statements
the directors are aware that various uncertainties outside the group’s control might impact the validity of their forecasts these uncertainties include future 
gold and nickel prices mining and processing risks resource and reserve risks and customer risks in addition to the political and indigenisation risks in 
zimbabwe which may constrain the ability of the company to control the movement of cash between entities or receive dividends nickel prices in particular 
have been historically volatile however absent a structural change in the market such as a decision by indonesia to reverse the export ban forecasts are 
considered to be achievable reasonably expected variations in nickel price would not cause the going concern assumption to be inappropriate
the directors consider that they have a number of actions available to them in the event of any of these uncertainties eventuating including constraining cash 
expenditure at operations curtailing exploration expenditure and arranging additional debt ﬁnancing
the directors after making enquiries and considering the uncertainties described above believe that the company and the group have adequate resources 
to continue in operational existence for the foreseeable future  accordingly they continue to adopt the going concern basis in preparing the annual report 
and ﬁnancial statements and these ﬁnancial statements do not include any adjustments that would result from the going concern basis of preparation  
being inappropriate mwana africa annual report 2014
52
annual financial statements • notes to the annual financial statements
3  basis of preparation continued
basis of consolidation 
subsidiaries
subsidiaries are those entities over whose ﬁnancial and operating policies the group has the ability to exercise control the group ﬁnancial statements 
incorporate the assets liabilities and results of operations of the company and its subsidiaries the acquisition method of accounting has been adopted under 
this method the results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the date of acquisition 
or up to the date of disposal 
noncontrolling interests
noncontrolling interests exist in less than whollyowned subsidiaries of the company and represent the outside interest’s share of the carrying values of the 
subsidiaries noncontrolling interests are recorded at their proportionate share of the identiﬁable net assets acquired as at the date of acquisition and are 
presented immediately after the shareholder’s equity section of the consolidated balance sheet when the subsidiary company issues its own shares to outside 
interests a dilution gain or loss arises as a result of the difference between the company’s share of the proceeds and the carrying value of the underlying 
equity if the change in ownership does not result in loss of control it is accounted for as an equity transaction
jointly controlled entities
a joint venture is an entity in which the group holds a long term interest and in which the group has the ability to exercise joint control in terms of a 
contractual arrangement the group’s interest in a jointly controlled entity is accounted for by proportionate consolidation in terms of this method the group 
includes its share of the income and expenses assets and liabilities and cash ﬂows on a line by line basis with similar items in the group’s ﬁnancial statements
transactions eliminated on consolidation
intergroup balances and transactions and any unrealised income and expenses arising from intergroup transactions are eliminated in the consolidated 
ﬁnancial statements
companies with different yearends than the parent company
the following drc subsidiaries of mwana africa plc have 31 december year ends as required by drc legislation
• mwana africa congo gold sprl zani kodo
• semhkat sprl
4  significant estimates and judgements
the preparation of ﬁnancial statements in conformity with ifrss requires management to make judgements estimates and assumptions that affect the 
application of accounting policies and reported amounts of assets liabilities income and expenses actual results may differ from these estimates 
estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in the period in which the 
estimates are revised and in any future periods affected
derivation of assumptions used in the estimation of the recoverable values of assets requires a signiﬁcant amount of judgement the assumptions underlying 
the estimated recoverable values include amongst others the technical performance revenue operating costs and discount rate for discounted cash ﬂow 
based valuations and are based on management’s best judgements at the date of signing the accounts 
the life of mine periods used for the purpose of calculating estimated recoverable values are based on resources and reserves these judgements used by 
management correspond to realistic scenarios taking into account the information available the impairment note discloses a sensitivity analysis with regard 
to the assumptions which the board deems most susceptible to variances against forecast
in particular information about signiﬁcant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most signiﬁcant 
effect on the amounts recognised in the ﬁnancial statements is included in the following notes
property plant and equipment note 20 including
assets’ useful lives and depreciation rates for property plant and equipment and mineral interests
depreciation depletion and amortisation rates are calculated on a straightline basis based on the estimated assets’ useful lives
should the assets’ useful lives differ from the initial estimate an adjustment would be made the assets’ useful lives are estimated based on the shorter of the 
life of the mine and the useful life of the speciﬁc component of the asset
commencement of commercialoperating level production
as a mine is developed and until it reaches an operating level that is consistent with the use intended by management costs incurred are capitalised as 
property plant and equipment the company exercises judgement to determine the commencement of commercial production that is deﬁned as the date 
when a mine achieves a sustainable level of production that provides a basis for a reasonable expectation of proﬁtability along with various qualitative 
factors including but not limited to the achievement of mechanical completion whether production levels are sufﬁcient to be at least capable of generating 
sustainable positive cash ﬂow and whether the product is of sufﬁcient quantity to be sold
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
53
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
deferred tax note 17
in assessing the probability of realising deferred income tax assets management makes estimates related to expectations of future taxable income expected 
timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax 
authorities where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations it is reasonably possible that changes in 
these estimates can occur that materially affect the amounts of income tax assets recognised also future changes in tax laws could limit the company from 
realising the tax beneﬁts from the deferred tax assets the company reassesses unrecognised deferred income tax assets at each reporting period
inventories note 24
the assumptions used in the valuation of workinprogress and ﬁnished goods inventories include estimates of gold contained in the leach tanks the amount 
of gold in the mill circuits recovery percentage and the estimation of the gold price expected to be realised when the gold is recovered 
rehabilitation provisions note 29
the cost estimates are updated annually during the life of a mine to reﬂect known developments eg revisions to cost estimates and to the estimated lives of 
operations and are subject to review at regular intervals rehabilitation liabilities are estimated based on the company’s interpretation of current regulatory 
requirements constructive obligations and are measured at fair value fair value is determined based on the net present value of estimated future cash 
expenditures for the settlement of decommissioning restoration or similar liabilities that may occur upon rehabilitation of the mine site such estimates are 
subject to change based on changes in laws and regulations technology and negotiations with regulatory authorities
provisions note 31
the use of estimates regarding the probability of the outﬂow of economic beneﬁts as well as whether the company has an obligation which needs to  
be settled 
sharebased payments note 33
the use of valuation models to fair value sharebased payments require assumptions regarding the estimated term of the option share price volatility and 
expected dividend yield
5  accounting policies
the accounting policies set out below have been applied consistently to all periods presented in these consolidated ﬁnancial statements
foreign currencies
a functional and presentation currency 
the individual ﬁnancial statements of each group entity are prepared in its functional currency which is the currency of the primary economic environment 
in which that entity operates for the purpose of the consolidated ﬁnancial statements the results and ﬁnancial position of each entity are translated into  
us dollars which is the presentational currency of the group 
b reporting foreign currency transactions in functional currency 
transactions in currencies other than the entity’s functional currency foreign currencies are initially recorded at the rates of exchange prevailing on the dates 
of the transactions at each subsequent balance sheet date 
• foreign currency monetary items are retranslated at the rates prevailing at the balance sheet date exchange differences arising on the settlement or  
retranslation of monetary items are recognised in the income statement
• nonmonetary items measured at historical cost in a foreign currency are not retranslated and 
• exchange differences arising on the retranslation of nonmonetary items carried at fair value are included in the income statement except for differences 
arising on the retranslation of nonmonetary items in respect of which gains and losses are recognised in the other comprehensive income in which case 
any exchange component of that gain or loss is also recognised directly in equity 
the directors have prepared the ﬁnancial statements on the basis of their judgement that the functional currency under ias 21 of the group’s zimbabwean 
subsidiaries is the us dollar the directors judge that the functional currency of these subsidiaries is the us dollar based on revenue capital expenditure and 
the majority of costs being denominated in us dollars 
c translation from functional currency to presentational currency 
when the functional currency of a group entity is different from the group’s presentational currency us dollars its results ﬁnancial position and cash ﬂows 
are translated into the presentational currency as follows 
• assets and liabilities are translated using exchange rates prevailing at the balance sheet date
• income and expense items are translated at average exchange rates for the year except where the use of such an average rate does not approximate the 
exchange rate at the date of the transaction in which case the transaction rate is used  
• all resulting exchange differences are recognised in translation reserves as a separate component of equity and are recognised in the income statement in 
the period in which the foreign operation is disposed of and 
• cash ﬂows are translated using average exchange rates during the period and the effect of exchange rate changes on the balances of cash and cash 
equivalents is presented as part of the reconciliation of movements therein mwana africa annual report 2014
54
annual financial statements • notes to the annual financial statements
5  accounting policies continued
intangible assets – exploration and evaluation expenditure 
all expenditure directly related to mineral exploration is capitalised on a projectbyproject basis pending the determination of the feasibility of the project 
exploration costs include certain administration and salary costs if a project is ultimately deemed commercially and technically viable the related exploration 
costs remain capitalised and are reclassiﬁed to tangible assets whilst the asset is developed and are then written off over the life of the estimated ore reserve 
on a unitofproduction basis if it is determined that a project is not expected to be successful whether relinquished abandoned or uncommercial the related 
exploration costs are written off 
once a decision is made to develop then the related exploration and evaluation costs are transferred from intangible to tangible assets
depreciation of property plant and equipment used in exploration activities is capitalised to intangible exploration and evaluation assets 
for the purpose of impairment assessment capitalised exploration and evaluation expenditures are allocated to the cash generating units on the basis of the 
exploration ﬁeld in which the costs have been incurred
property plant and equipment
items of property plant and equipment is measured at cost less accumulated depreciation and any accumulated impairment losses
cost includes expenditure that is directly attributable to the acquisition or development of the asset
capitalised mine development costs include expenditure incurred to develop new ore bodies to deﬁne further mineralisation in existing ore bodies and to 
build or expand the capacity of a mine or to enhance its future economic beneﬁts 
development projects are stated at cost net of depreciation and any provision for impairment the costs capitalised under development projects will include 
an allocation of salary costs materials and any other costs directly attributable to the project this does not include administration and general expenses which 
would have been incurred irrespective of whether the project was taking place 
any sales taking place within the development project period would be shown as revenue with corresponding costs allocated to cost of sales
when signiﬁcant parts of an item of property plant and equipment have different useful lives they are accounted for as separate items major components 
of property plant and equipment
items of property plant and equipment are depreciated from the date they are available for use or in respect of capitalised cost from the date that commercial 
production is reached
depreciation is calculated to write off the cost of items of property plant and equipment less their estimated residual values using the straightline basis over 
their estimated useful lives as set out below 
• mining assets mining assets consists of plant and equipment used in mining operations and is depreciated at varying rates on a straightline basis over 
the expected useful lives deﬁned by reference to the life of mine which range from three to 17 years it also includes capitalised mine development costs 
and development projects 
  the group’s policy is to depreciate the cost in equal instalments over the estimated economic life of the project these costs are depreciated from the date 
on which commercial production begins 
• smelter and refinery assets smelter and reﬁnery assets are depreciated at varying rates on a straightline basis over the expected useful lives which 
range from 5 to 40 years
• plant and equipment and motor vehicles plant and equipment and motor vehicles are depreciated on a straight line basis over their estimated useful 
lives at the annual rate of 10 and 20 respectively
• buildings buildings are depreciated on a straightline basis over the expected useful lives currently 40 years
• depreciation is generally recognised in proﬁt and loss unless the amount is included in the carrying amount of another asset
• land is not depreciated
  depreciation methods useful lives and residual values are reviewed at each reporting date and adjusted if appropriate
subsequent expenditure is capitalised only when it is probable that future economic beneﬁts associated with the expenditure will ﬂow to the group ongoing 
repairs and maintenance are expensed as incurred
impairment 
i nonﬁnancial assets
the carrying amounts of the group’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment if any such 
indication exists the asset’s recoverable amount is estimated  
exploration and evaluation assets are also assessed for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed 
its recoverable amount 
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
55
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
an impairment loss is recognised to the extent that the carrying amount of an asset or cashgenerating unit “cgu” exceeds its recoverable amount 
the recoverable amount of an asset or cgu is the higher of i its fair value less costs to sell and ii its value in use which is the present value of the future 
cash ﬂows expected to be derived from the asset or cgu discounted using a pretax discount rate that reﬂects current market assessments of the time value 
of money and the risks associated with the asset or cgu impairment losses are recognised in the income statement 
impairment losses recognised in respect of cashgenerating units are allocated ﬁrst to reduce the carrying amount of any goodwill allocated to cashgenerating 
units and then to reduce the carrying amount of the other assets in the unit a cash generating unit is the smallest identiﬁable group of assets that generates 
cash inﬂows that are largely independent of the cash inﬂows from other assets or groups of assets it usually corresponds to the exploration ﬁeld or the 
production unit 
in respect of other assets an impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been a 
change in the estimates used to determine the recoverable amount an impairment loss is reversed only to the extent that the asset’s carrying amount does 
not exceed the carrying amount that would have been determined net of depreciation or amortisation if no impairment loss had been recognised  reversals 
of impairment relating to other assets are recognised in the income statement
ii nonderivative ﬁnancial assets
when a decline in the fair value of an availableforsale ﬁnancial asset has been recognised directly in equity and there is objective evidence that the asset 
is impaired the cumulative loss that had been recognised directly in equity is recognised in proﬁt or loss even though the ﬁnancial asset has not been  
derecognised the amount of the cumulative loss that is recognised in the income statement is the difference between the acquisition cost and current fair 
value less any impairment loss on that ﬁnancial asset previously recognised in the income statement
the company assesses for impairment the value of its investments in and loans to its subsidiaries when there are indicators of impairment
an impairment loss in respect of an investment in an equity instrument classiﬁed as availableforsale is not reversed through the income statement if the 
fair value of a debt instrument classiﬁed as availableforsale increases and the increase can be objectively related to an event occurring after the impairment 
loss was recognised in the income statement the impairment loss is reversed through the income statement  an impairment loss in respect of goodwill is 
not reversed 
financial instruments
a nonderivative financial assets
the group initially recognises loans and receivables on the date that they are originated all other ﬁnancial assets including assets designated at fair value 
through proﬁt and loss are recognised initially on trade date which is the date that the group becomes a party to the contractual provisions of the instrument
the group derecognises a ﬁnancial asset when the contractual rights to the cash ﬂows from the asset expire or it transfers the rights to receive the contractual 
cash ﬂows in a transaction in which substantially all the risks and rewards of ownership of the ﬁnancial asset are transferred
financial assets and liabilities are offset and the net amount presented in the statement of ﬁnancial position when and only when the group has a legal right 
to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously
the group classiﬁes nonderivative ﬁnancial assets into the following categories ﬁnancial assets at fair value through proﬁt and loss heldtomaturity ﬁnancial 
assets loans and receivables and availableforsale ﬁnancial assets
i loans and receivables
loans and receivables are ﬁnancial assets with ﬁxed or determinable payments that are not quoted in an active market such assets are recognised initially 
at fair value plus any directly attributable transaction costs subsequent to initial recognition loans and receivables are measured at amortised cost using the 
effective interest rate method less any impairment losses
loans and receivables comprise cash and cash equivalents and trade and other receivables
cash and cash equivalents
cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from acquisition date that are subject to an 
insigniﬁcant risk of changes in their fair value and are used by the group in the management of its shortterm commitments
b nonderivative financial liabilities
the group initially recognises debt securities issued and subordinated liabilities on the date that they are originated all other ﬁnancial liabilities are recognised 
initially on the trade date that the group becomes a party to the contractual provisions of the instrument
the group derecognises a ﬁnancial liability when its contractual obligations are discharged cancelled or expire
the group classiﬁes nonderivative ﬁnancial liabilities into the other ﬁnancial liabilities category such ﬁnancial liabilities are recognised initially at fair value 
less any directly attributable transaction costs subsequent to initial recognition these ﬁnancial liabilities are measured at amortised cost using the effective 
interest rate method mwana africa annual report 2014
56
annual financial statements • notes to the annual financial statements
5  accounting policies continued
other ﬁnancial liabilities comprise loans and borrowings bank overdrafts and trade and other payables
investments 
joint ventures
the group holds a 6977 interest in the klipspringer diamond mine joint venture the assets liabilities income and expenses of which are consolidated on 
a proportional basis
investments in subsidiaries 
the company has investments in its various subsidiaries these are accounted for at cost less impairment all intergroup loans are repayable on demand or 
at arm’s length basis 
inventories 
inventories are measured at the lower of cost and net realisable value
in determining the cost of raw materials consumables and goods purchased for resale the weighted average purchase price is used
for ﬁnished goods and work in progress which includes quantities of gold in process cost includes an appropriate share of production overheads based on 
normal capacity
net realisable value is calculated based on market prices prevailing as at the yearend less costs to sell 
rehabilitation provision 
a provision is recognised when the group has a present legal or constructive obligation as a result of past events and when it is probable that an outﬂow 
of resources embodying economic beneﬁts will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made 
estimated longterm environmental obligations comprising pollution control rehabilitation and mine closure are based on the group’s environmental 
management plans in compliance with current technology environmental and regulatory requirements 
on initial recognition the net present value of estimated future decommissioning costs are capitalised to property plant and equipment and the concomitant 
provisions are raised these estimates are reviewed annually and discounted using a pretax rate that reﬂects current market assessments of the time value of 
money and the risks speciﬁc to the liability the unwinding of the discount is recognised as ﬁnance cost any increases in such revised estimates are capitalised 
to property plant and equipment while decreases in estimates are recognised as an impairment of the asset in the period in which they are incurred
revenue recognition 
revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable net of returns 
trade discounts and volume rebates 
revenue represents the sale of gold nickel and diamonds net of discounts and taxes revenue also includes toll reﬁning and processing of material on behalf 
of or purchased from nongroup companies
revenue is recognised when signiﬁcant risks and rewards of ownership have been transferred to the customer recovery of the consideration is probable the 
associated costs and possible return of goods can be estimated reliably there is no continuing management involvement with the goods and the amount of 
revenue can be measured reliably if it is probable that discounts will be granted and the amount can be measured reliably then the discount is recognised as 
a reduction of revenue as the sales are recognised
the timing of the transfer of risks and rewards and measurement varies depending on the item sold which occurs as follows
• revenue from the sale of gold is based on the spot price on the date of delivery which is also the point at which the company recognises the revenue for 
gold sales
• revenue from the sale of nickel is recognised on delivery and the measurement based on the international market price of nickel
• diamond revenue is based on negotiated prices and recognised on delivery
leases 
leases where the lessor retains the risks and rewards of ownership of the underlying asset are classiﬁed as operating leases operating lease rentals are 
charged to the income statement on a straightline basis over the period of the lease 
the group has not entered into any ﬁnance lease arrangements 
employee beneﬁts
a defined contribution pension scheme 
certain companies in the group operate deﬁned contribution pension schemes the assets of the schemes are held separately from those of the group in 
independently administered funds 
obligations for contributions to deﬁned contribution plans are expensed as the related service is provided prepaid contributions are recognised as an asset to 
the extent that a cash refund is available or a reduction in future payments is available
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
57
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
b sharebased payments 
the share option programmes allow employees to acquire shares of the company the grantdate fair value of the sharebased payment award is recognised 
as employee expenses with a corresponding increase in equity over the period that the employees become unconditionally entitled to the awards the fair 
value of the options granted is measured using an option pricing model taking into account the terms and conditions upon which the options were granted 
the amount recognised as an expense is adjusted to reﬂect the actual number of share options that vest except where variations are due only to share prices 
not achieving the threshold for vesting 
taxation 
the tax expense represents the sum of the current tax including withholding tax and deferred tax  
a current tax 
current tax payable is based on taxable proﬁt for the year taxable proﬁt differs from proﬁt before tax as reported in the income statement because it excludes 
items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible the group’s liability 
for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the balance sheet date current tax also includes 
any tax liability arising from withholding tax on dividends
b deferred tax 
deferred tax is measured on temporary differences between the carrying amounts of assets and liabilities in the ﬁnancial statements and the corresponding 
tax bases used in the computation of taxable proﬁt and are accounted for using the balance sheet liability method deferred tax liabilities are generally 
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable proﬁts will be available 
against which deductible temporary differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from goodwill 
or from the initial recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the taxable proﬁt nor 
the accounting proﬁt  
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in joint ventures except 
where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the 
foreseeable future 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufﬁcient taxable 
proﬁts will be available to allow all or part of the asset to be recovered 
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax rates and 
laws that have been enacted or substantively enacted by the balance sheet date deferred tax is charged or credited to the income statement except when 
it relates to items charged or credited directly to equity in which case the associated deferred tax is also dealt with in equity 
deferred tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets against current tax liabilities and when 
they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and liabilities on a net basis 
6  revised and amended standards and interpretations
the following revised and amended standards which have been endorsed by the eu have been adopted by the group in these consolidated ﬁnancial 
statements the adoption has had no material impact on the group’s net cash ﬂows ﬁnancial position total comprehensive income or earnings per share
• amendments to ifrs 7 – ‘offsetting financial assets and financial liabilities’ issued december 2011 and endorsed by the eu december 2012 
additional disclosures for ﬁnancial assets and liabilities within the scope of the common disclosures
• amendments to ias 1 – ‘presentation of items of other comprehensive income’ issued may 2012 and endorsed by the eu in june 2012 
the amendment deals with the clariﬁcation of the requirements for comparative information
• amendments to ias 19 – ‘employee benefits’ issued in june 2011 endorsed by the eu in june 2012 the amendments include clariﬁcation of 
miscellaneous issues and enhanced disclosure
• ifrs 13 ‘fair value measurement’ issued in may 2011 and endorsed by the eu in december 2012 is a new standard that aims to improve consistency 
and reduce complexity of fair value measurement techniques adopted in ﬁnancial statements
• ifric 20 ‘stripping costs in the production phase of a surface mine’ issued in october 2011 and endorsed by the eu in december 2012 is 
effective for the accounting period beginning on 1 january 2013 this interpretation applies to the treatment of waste removal stripping costs incurred in 
surface mining activity during the production phase of a mine
standards amendments and interpretations that are not yet effective
the following new revised and amended standards and interpretations have been issued and endorsed by the eu unless otherwise stipulated but are not yet 
effective and have not been adopted by the group in these consolidated ﬁnancial statements 
• ifrs 9 ‘financial instruments hedge accounting and amendments to ifrs 9 ifrs 7 and ias 39’ issued in november 2013 but not yet 
endorsed by the eu the standard is iasb effective for periods beginning on or after 1 january 2018 the standard introduces a new hedge accounting 
chapter and makes improvements to the reporting of changes in the fair value of an entity’s own debt the group is yet to assess ifrs 9’s full impact on its 
ﬁnancial position or performance mwana africa annual report 2014
58
annual financial statements • notes to the annual financial statements
6  revised and amended standards and interpretations continued
• ifrs 10 ‘consolidated financial statements’ issued in may 2011 replaces the consolidation requirements in sic12 ‘consolidation – special purpose 
entities’ and ias 27 ‘consolidated and separate financial statements’ this standard builds on existing principles by identifying the concept of control as 
the determining factor in whether an entity should be included within the consolidated ﬁnancial statements of the parent company the standard provides 
additional guidance to assist in the determination of control where this is difﬁcult to assess the standard has been endorsed by the eu and is effective for 
the accounting period beginning on 1 january 2014 the group is yet to assess ifrs 10’s full impact on its ﬁnancial position or performance
• ifrs 11 ‘joint arrangements’ issued in may 2011 replaces ias 31 ‘interests in joint ventures’ the standard establishes accounting principles based on 
the rights and obligations of the joint arrangement rather than its legal form the standard introduces two types of joint arrangement – joint operations and 
joint ventures – and eliminates proportionate consolidation for any form of joint arrangement the standard has been endorsed by the eu and is effective 
for the accounting period beginning on 1 january 2014 the group is yet to assess ifrs 11’s full impact on its ﬁnancial position or performance
• ifrs 12 ‘disclosure of interests in other entities’ issued in may 2011 is a new standard that establishes the disclosure requirements for all entities 
that a group has an interest in including subsidiaries joint arrangements associates special purpose vehicles and other offbalance sheet vehicles the 
standard has been endorsed by the eu and is effective for the accounting period beginning on 1 january 2014 the group is yet to assess ifrs 12’s full 
impact on its ﬁnancial position or performance
• ifrs 15 ‘revenue from contracts with customers’ issued in may 2014 iasb effective for periods beginning on or after 1 january 2017 but not yet 
endorsed by the eu the standard introduces a new revenue recognition model that recognises revenue either at a point in time or over time the group is 
yet to assess ifrs 15’s full impact on its ﬁnancial position or performance
• ias 27 2011 ‘separate financial statements’ issued in may 2011 and endorsed by the eu in december 2012 consolidation requirements 
previously forming part of ias 27 2008 have been revised and are now contained in ifrs 10 ‘consolidated financial statements’ and
• improvements to ifrss there are a number of amendments to certain standards following the 2011 annual improvements project of which some have 
been endorsed by the eu and others not the impact of any consequential changes to the consolidated ﬁnancial statements is not likely to be signiﬁcant 
the following amendments have been endorsed by the eu
• amendments to ias 28 2008 investments in associates and joint ventures
• amendments to ias 32 – offsetting financial assets and financial liabilities
• amendments to ias 36 – recoverable disclosures for nonﬁnancial assets
• investment entities amendments to ifrs 10 ifrs 12 and ias 27 and
• transition guidance amendments to ifrs 10 ifrs 11 and ifrs 12
7  financial risk management
overview
the group has exposure to the following risks in relation to its operating and ﬁnancial activities 
• credit risk
• liquidity risk 
• market risk and
• currency risk
this note presents information about the group’s exposure to each of the above risks the group’s objectives policies and processes for measuring and 
managing risk and the group’s management of capital further quantitative disclosures are included within note 34 
the board of directors has overall responsibility for the establishment and oversight of the group’s risk management framework the subsidiaries report 
regularly to the board of directors on their activities and their risk management procedures 
the group audit committee oversees how management monitors compliance with the group’s risk management policies and procedures and reviews the 
adequacy of the risk management framework in relation to the risks faced by the group 
credit risk
credit risk is the risk of ﬁnancial loss to the group if a customer or counterparty to a ﬁnancial instrument fails to meet its contractual obligations and arises 
principally from the group’s receivables from customers 
the company’s cash balances are held in investments and with institutions considered by the directors to have a low risk of default the group’s policy on 
credit risk is to seek to the extent possible to deal with customers with a strong ﬁnancial position and to ensure that appropriate measures are taken to 
reduce the level of counterparty credit risk such measures may include limiting shipments of material while balances are outstanding requesting the use of 
bank andor corporate guarantees and where appropriate retention of amounts owed by the group to its counterparties by way of offset against amounts 
owed to the group at yearend the group’s principal customers are fidelity printers and reﬁneries who purchases gold production from freda rebecca as 
well as glencore who purchases nickel production from bnc
liquidity risk 
liquidity risk is the risk that the group will not be able to meet its ﬁnancial obligations as they fall due and is measured by reference to cash levels and 
forecasted cash ﬂows the group’s approach to managing liquidity is to seek to ensure as far as possible that it will have sufﬁcient liquidity to meet its 
liabilities when due under both normal and stressed conditions without incurring unacceptable losses or risking damage to the group’s reputation the group 
monitors its current and forecasted cash and cash equivalents positions to ensure that it will be able to meet its ﬁnancial commitments
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
59
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
market risk 
market risk is the risk that changes in market prices such as foreign exchange rates and commodity prices will affect the group’s income the group’s earnings 
are exposed to movements in the prices of gold nickel and diamonds that it produces the group is also exposed to movements in interest rates on cash 
and cash equivalents as well as the risk related to market price of the investments held the objective of market risk management is to manage and control 
market risk exposures within acceptable parameters while optimising the return the group’s policy is not to hedge commodity price risk  consequently as at 
31 march 2014 and during the year the group did not have any long term commodity price hedges in place
currency risk 
the group operates internationally and is exposed to foreign exchange risk arising from transactions and investments that are denominated in currencies 
other than the us dollar including pound sterling and the south african rand such risks include the effect of movements in exchange rates on the group’s 
forecasts of capital and operating expenditure and on the group’s forecasts of revenue the group’s policy is not to hedge currency risk consequently as at  
31 march 2014 and during the year the group did not have any currency hedges in place
capital management
the group considers its capital to be equal to the sum of its total equity the board is committed to maintaining a capital base that maintains creditors’ 
conﬁdence in mwana’s ability to meet its commitments
the company’s primary objectives when managing its capital are 
• to ensure that the company is able to operate as a going concern
• to have available both the necessary ﬁnancial resources and the appropriate equity to allow the company to make investments including where necessary 
further investment in existing subsidiaries that will deliver acceptable future returns to the company’s shareholders and 
• to maintain sufﬁcient ﬁnancial resources to mitigate against risks and unforeseen events
there were no changes in the company’s approach to capital management in the year  neither the company nor any of its subsidiaries are subject to externally 
imposed capital requirements
8  segmental information
the group has four reportable segments as described below which are the group’s strategic business units
the strategic business units offer different products and services and are managed separately because they require different technology and marketing 
strategies the ceo reviews internal management reports for each of the strategic business units the following summary describes the operations in each of 
the group’s reportable segments
• gold gold mining and prospecting activities
• nickel nickel mining smelting and reﬁning activities partially on care and maintenance
• diamonds diamond mining activities currently on care and maintenance
• exploration gold and base metal exploration activities
information about reportable segments – operations
gold nickel diamonds exploration total
freda rebecca
bindura nickel  
corporation
klipspringer  
diamond mine
for reportable 
segments
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
external revenue 77449 108116 65011 1026 – 17 – – 142460 109159
ebitda 15684 42904 19398 14188 880 1536 1372 845 32830 26335
impairment reversalloss – 280 27987 43669 118 – 553 – 27316 43949
reportable segment proﬁt
loss before income tax 8577 36436 46196 57552 1027 1581 1925 844 51821 23541
reportable segment assets 68873 66486 69844 14966 1224 1528 65263 59201 205204 142181
reportable additions 
to property plant and 
equipment 5723 8586 7030 9365 – 1 7 13 12760 17965
reportable additions to 
intangible assets – – – – – – 5278 15331 5278 15331 mwana africa annual report 2014
60
annual financial statements • notes to the annual financial statements
8  segmental information continued
reconciliation of reportable segments information
total for  
reportable segments
corporate not a  
reportable segment
total per  
financial statements
 
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
external revenue 142460 109159 – – 142460 109159
ebitda 32830 26335 7861 8660 24969 17675
impairment reversalloss 27316 43949 –  27316 43949
reportable segment proﬁtloss  
before income tax 51821 23541 7881 8523 43940 32064
reportable segment assets 205204 142181 2361 8483 207565 150664
reportable additions to property plant and 
equipment 12760 17965 10 424 12770 18389
reportable additions to intangible assets 5278 15331 – – 5278 15331
information about reportable segments – geographical
south africa and 
zimbabwe
democratic republic 
of the congo ghana united kingdom total
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
external revenue 142460 109159 – – – – – – 142460 109159
ebitda 31264 24483 1372 844 33 25 4956 5939 24969 17675
reportable segment proﬁt
loss before income tax 50866 25231 1925 844 33 25 5034 5964 43940 32064
reportable noncurrent 
segment assets 101973 51393 63500 58816 5 14 36 1130 165514 111353
reportable segment assets 140272 87825 65263 59201 16 14 2014 3624 207565 150664
reportable additions 
to property plant and 
equipment 12753 17964 7 13 – – 10 412 12770 18389
reportable additions to 
intangible assets – – 5278 15331 – – – – 5278 15331
the main products at freda rebecca and bnc during the year were gold and nickel respectively and the major customers were wellestablished commodities 
traders
9  loss from joint venture 
included in the group income statement are the following amounts relating to the klipspringer diamond mine joint venture
2014 
’000
2013 
’000
revenue – –
cost of sales – –
gross loss – –
other income 67 48
care and maintenance expenses 630 1355
selling and distribution expenses – 1
impairment loss 118 –
general and administrative expenses 346 273
loss before tax 1027 1581
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
61
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
the group holds a 6977 interest 2013 6893 in the klipspringer diamond mine joint venture the group does not have control over the joint venture 
as the decision making is still shared between the joint venture partners the mine which is situated in south africa’s limpopo province was placed on care 
and maintenance in february 2011 following a number of severe weather incidents which occurred in december 2010 and january 2011 ﬂooding the shaft 
bottom lower 7 level mwana africa is currently the sole funder of the operation and the joint venture partners’ interest is being diluted in accordance with 
the contractual agreement
10  operating profit 
proﬁt from operating activities is stated after charging
2014 
’000
2013 
’000
cost of goods sold 64623 50439
provision for closure costs 598 226
selling and distribution expenses
 1
19825 8386
cost of sales 83850 59051
other income items 631 418
loss on sale of availableforsale ﬁnancial assets 11 25
other income 620 393
operations technical 10837 10827
exploration 403 767
general and administrative expenses 11240 11594
1
 selling and distribution expenses are not comparable as in fy2013 bnc was not operational
in the current year some costs were reclassiﬁed to show what management believes to be a more accurate reﬂection of the expenses incurred prior year 
ﬁgures have been reclassiﬁed to be comparable to the current year the effect is not signiﬁcant and does not affect the proﬁtloss incurred by the group
11  lossprofit on sale of assets
the loss on sale of assets for the current year includes a loss of 810k on the disposal of shares held in mantle diamonds ltd that were disposed of during the 
year in return for shares in kimberley diamonds ltd with no cash effect the current year loss also includes losses on disposal of property plant and equipment 
to the value of 824k mostly relating to freda rebecca
in the prior year the proﬁt on sale of assets 257k related to property plant and equipment disposed of in bnc and freda rebecca
12  amounts payable to kpmg 
 
2014 
’000
2013 
’000
audit of these ﬁnancial statements 144 205
audit of ﬁnancial statements of subsidiaries pursuant to legislation 152 172
other services relating to taxation – 30
services relating to corporate ﬁnance transactions – 49
all other services 7 23
total auditors’ remuneration 303 479 mwana africa annual report 2014
62
annual financial statements • notes to the annual financial statements
13  remuneration of key management personnel
key management personnel are people responsible for the direction of the business and comprise the executive and nonexecutive directors of mwana africa 
plc the remuneration of key management personnel is set out below in aggregate for each of the categories as speciﬁed in ias 249 
2014     
director
salaryfee
’000
annual  
bonus
 1
’000
beneﬁts  
in kind
’000
sharebased 
payments
’000
total
’000
kk mpinga 480 – 83 149 712
y kwan 119 – – 4 123
sg morris 50 – – – 50
jl botha 27 – – – 27
yh ning 25 – – – 25
yc hu 25 – – – 25
oag baring
 2
15 – 44 13 72
dar mcalister
 2 4
730 – 36 64 830
ja anderson
 2
22 – – – 22
e denis
 2
15 – – – 15
m wellesleywood
 3 4
81 – – – 81
total 1589 – 163 230 1982
2013     
director
salaryfee
’000
annual  
bonus
 1
’000
beneﬁts 
in kind 
’000
sharebased 
payments
’000
total
’000
kk mpinga 521 541 94 112 1268
sg morris 79 79 – – 158
jl botha 39 40 – – 79
yh ning 33 40 – – 73
yc hu 30 40 – – 70
oag baring 33 134 113 33 313
dar mcalister 411 411 66 55 943
ja anderson 59 59 – – 118
e denis 40 40 – – 80
total 1245 1384 273 200 3102
1
  no bonuses were awarded to any directors in respect of the year ended 31 march 2014 in august 2013 mr mpinga waived his bonus award of £330000 541492 in respect 
of the year to 31 march 2013 
2
  mr baring resigned from the board on 1 september 2013 mr anderson and mr denis retired from the board on 27 september 2013 and mr mcalister resigned from the board 
on 30 september 2013
3
 mr wellesleywood was appointed nonexecutive chairman on 3 september 2013 and left the board on 24 february 2014
4
 basic salary includes ex gratia payments to mr mcalister of £322743 in september 2013 and to mr wellesleywood of £15000 in march 2014
14  employee benefits expense 
group company
2014
’000
2013
’000
2014
’000
2013
’000
wages and salaries 21456 20146 865 1797
decrease in labour accrual
 1
– 5365 – –
equitysettled sharebased payment transactions see note 33 512 342 276 225
compulsory social security contributions 438 566 220 219
contributions to deﬁned contribution plans 1350 671 158 176
total employee beneﬁts expense 23756 16360 1519 2417
1
 in the prior year the release of the labour accrual was due to the settlement agreement as part of the trojan mine restart in september 2013
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
63
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
staff numbers 
number of employees
group
2014 2013
management and administration 193 184
operatives 1412 1376
total 1605 1560
the employee beneﬁts expense includes remuneration of key management personnel as disclosed in note 13 
15  net finance income and costs 
group company
2014
’000
2013
’000
2014
’000
2013
’000
interest income on bank deposits 319 645 10 –
loans – – 766 715
finance income 319 645 776 715
interest costs 1033 784 – –
finance costs 1033 784 – –
finance income of the company was received from bnc 2000000 of a 10 million loan facility to bnc was repaid during the year 2013 4707969 
drawn down refer to note 25 trade and other receivables for details of the loan balances outstanding at yearend
16  income tax creditexpense
2014
’000
2013
’000
current tax expense
current year tax 3195 11105
prior periods tax 2 48
deferred tax expense
origination and reversal of temporary differences 12107 340
recognition of previously unrecognised tax losses 21955 –
total income tax creditexpense 6655 11397
reconciliation of effective tax rate
proﬁtloss before income tax 43940 32064
income tax using the company’s domestic tax rate – 23 2013 24 10107 7695
effect of tax rates in foreign jurisdictions 1843 1563
nondeductible expenses 2149 5330
prior year current tax 2 48
prior year deferred tax previously not recognised 20955 –
utilised tax losses brought forward 418 2814
current year losses for which no deferred tax asset was recognised 324 6029
impairment reversals nontaxablelosses nondeductible 449 10510
other temporary differences not recognised 746 1478
total tax creditexpense as per consolidated income statement 6655 11397 mwana africa annual report 2014
64
annual financial statements • notes to the annual financial statements
16  income tax creditexpense continued
deferred taxation impacts are described more fully in note 17 
reductions in the uk corporation tax rate from 26 to 24 effective from 1 april 2012 and to 23 effective 1 april 2013 were substantively enacted on 
26 march 2012 and 3 july 2012 respectively further reductions to 21 effective from 1 april 2014 and 20 effective from 1 april 2015 were substantively 
enacted on 2 july 2013 changes to the company’s domestic tax rate are unlikely to have a signiﬁcant impact on the group’s current tax charge as the majority 
of taxable income is incurred in foreign jurisdictions
signiﬁcant factors affecting the tax charge relate to the taxation regimes for the mining sector in the uk zimbabwe south africa and the drc changes in 
any of these areas could adversely or positively impact the group’s tax charge in the future
17  deferred tax assets and liabilities 
2014
’000
2013
’000
net deferred tax liability at beginning of year 9320 8980
charge to the income statement 9848 340
exchange rate adjustment – –
net deferred tax assetliability at end of the year 528 9320
deferred tax assets 19406 1186
deferred tax liabilities 18878 10506
the elements of deferred taxation are as follows
difference between accumulated depreciation and amortisation and capital allowances 18734 10496
unutilised losses 19213 –
other timing differences 49 1176
528 9320
the deferred tax liability represents the difference between the carrying amount of property plant and equipment and the corresponding tax bases on those 
assets the deferred tax asset principally relates to unutilised tax losses at bindura nickel corporation the full taxation loss has been fully recognised in the 
current year since the restart of the trojan mine as management is now of the opinion that the full tax loss will be utilised against future taxable generated 
by the operation
unrecognised deferred taxes
2014
’000
2013
’000
deferred taxes have not been recognised in respect of the following items
difference between accumulated depreciation and amortisation and capital allowances 981 1105
intangible asset 6743 6577
tax losses 11722 39514
other timing differences 1174 4063
20620 51259
deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable proﬁt will be available against which the 
group can utilise the beneﬁts
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
65
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
recognised deferred tax assets and liabilities
group deferred tax assets and liabilities are attributable to the following 
asset liability net
2014
’000
2013
’000
2014
’000
2013
’000
2014
’000
2013
’000
property plant and equipment – – 18734 10496 18734 10496
mine rehabilitation provision – 1186 – – – 1186
tax loss 19213 – – – 19213 –
others 193 – 144 10 49 10
total 19406 1186 18878 10506 528 9320
18  dividends 
no dividends were declared during the 2014 ﬁnancial year 2013 nil 
19  earnings per share 
basic earnings per share eps is computed by dividing the proﬁt or loss after taxation for the year attributable to ordinary shareholders by the sum of the 
weighted average number of ordinary shares in issue ranking for dividend during the year
diluted earnings per share is computed by dividing the proﬁt or loss after taxation for the year attributable to ordinary shareholders by the sum of the weighted 
average number of ordinary shares in issue adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year
2014
’000
2013
’000
earnings
proﬁtloss attributable to ordinary shareholders 36605 28641
number number
weighted average number of shares
issued ordinary shares at the beginning of the year 1119727051 720567308
effect of shares issued 146596861 373104337
weighted average shares at the end of the year for basic and diluted eps 1266323912 1093671645
basic earningsloss per share 289c 262c
diluted earningsloss per share 289c 262c
the effect of shares issued reﬂects the number of shares in issue during the year weighted for the number of days that the shares were in issue for the 
ﬁnancial year share placements were made on 12 september 2013 130254717 shares 17 september 2013 109913459 shares and on 23 october 
2013 37885448 shares
no dilutive effect was recognised for the 2014 ﬁnancial year as the exercise price of all potentially dilutive instruments at yearend were higher than the 
average share price for the portion of the year that these instruments were in issue
no dilutive effect was recognised for the 2013 ﬁnancial year as the dilutive potential ordinary shares would have reduced the loss per share mwana africa annual report 2014
66
annual financial statements • notes to the annual financial statements
notes to the annual financial statements continued
for the year ended 31 march 2014
20  property plant and equipment
mining 
assets
’000
smelter and 
reﬁnery 
plant and 
equipment
’000
plant and 
equipment
’000
exploration 
assets
’000
building  
leasehold
’000
motor 
vehicles
’000
total
’000
cost or deemed cost
balance at 1 april 2012 121843 33991 3241 4217 31645 14010 208947
additions 17288 – 929 13 – 159 18389
additions of environmental assets 839––––– 839
disposals 375 340 92 – – 29 836
effect of movements in exchange rates – – 158 – – – 158
balance at 31 march 2013 139595 33651 3920 4230 31645 14140 227181
additions 7433 – 5002 – – 335 12770
disposals 1 – 2458 – – 125 2584
impairment reversal –––––––
effect of movements in exchange rates – – 99 – – – 99
balance at 31 march 2014 147027 33651 6365 4230 31645 14350 237268
depreciation and impairment 
losses
balance at 1 april 2012 60869 20099 2941 4014 27128 13826 128877
depreciation for the year 5466 – 312 – – 82 5860
depreciation capitalised to intangible 
assets – – – 83 – – 83
disposals 95 295 68 – – 16 474
impairment loss 25570 13847 – – 4097 155 43669
effect of movements in exchange rates  – 117––– 117
balance at 31 march 2013 91810 33651 3068 4097 31225 14047 177898
depreciation for the year 3119 – 4446 – – 66 7631
depreciation capitalised to intangible 
assets – – – 43 – – 43
disposals – – 1636 – – 71 1707
impairment loss – – 112 – – – 112
impairment reversal 24221––– 3766 – 27987
effect of movements in exchange rates – – 77 – – – 77
balance at 31 march 2014 70708 33651 5913 4140 27459 14042 155913
carrying amounts
at 31 march 2012 60974 13892 300 203 4517 184 80070
at 31 march 2013 47785 – 852 133 420 93 49283
at 31 march 2014 76319 – 452 90 4186 308 81355
property plant and equipment includes rehabilitation assets of 37 million for freda rebecca 
in the previous ﬁnancial year an impairment loss to the value of 437m was recognised on all property plant and equipment held by bnc in the current year 
280m of the impairment relating to the assets of the trojan mine was reversed as disclosed in note 35 
the net book value of the company’s property plant and equipment as at 31 march 2014 amounted to 34137 2013 398817 depreciation charged 
to the income statement of the company during the year amounted to 87602 2013 73829 and capital expenditure for the year to 10157  
2013 411939 
mining assets are a separate category of ppe deﬁned in note 5 mwana africa annual report 2014
67
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
21  intangible assets 
exploration 
and evaluation 
assets
’000
total
’000
cost or deemed cost
balance at 1 april 2012 71437 71437
capitalised exploration costs 15248 15248
capitalised depreciation 82 82
impairment losses transferred from amortisation and impairment losses – –
effect of movements in exchange rates ––
balance at 31 march 2013 86767 86767
capitalised exploration costs 5235 5235
capitalised depreciation 43 43
effect of movements in exchange rates ––
balance at 31 march 2014 92045 92045
amortisation and impairment losses
balance at 1 april 2012 28505 28505
impairment losses transferred to cost ––
effect of movements in exchange rates ––
balance at 31 march 2013 28505 28505
impairment loss refer to note 35 554 554
effect of movements in exchange rates ––
balance at 31 march 2014 29059 29059
carrying amounts
at 31 march 2012 42932 42932
at 31 march 2013 58262 58262
at 31 march 2014 62986 62986
the carrying amount of the intangible assets relates to capitalised exploration on the semhkat and zanikodo exploration projects   
22  investments
group
ownership 
2014
’000
2013
’000
mantle diamonds ltd nil 2013 373 – 780
kimberley diamonds ltd 004 2013 nil 50 –
other 565 574
total investments 615 1354
the group has certain investments which include a 20 interest in société miniére de bakwanga miba in the drc an 18 interest in the camafuca project 
in angola and a 125
1
 interest in the bk16 project in botswana these investments are carried at nil value 2013 nil
the directors consider that the group does not have signiﬁcant inﬂuence over the entities classiﬁed as investments as it cannot inﬂuence the operating policy 
of these entities 
the group’s exposure to credit currency and interest rate risks related to other investments is disclosed in note 34
1
  the group currently holds 55 of bk16 and has entered into an agreement with firestone diamonds whereby firestone can earn up to 875 of bk16 for ﬁnancing and 
carrying out all work up to the completion of a bankable feasibility study firestone diamonds have sole management authority over the project mwana africa annual report 2014
68
annual financial statements • notes to the annual financial statements
22  investments continued
company
shares in 
nongroup 
undertakings
’000
shares  
in group  
undertakings
’000
total
’000
cost
at beginning of year 780 219697 220477
cumulative impairments – 143654 143654
net book value at beginning of the year 780 76043 76823
fair value adjustment
 1
80 475 395
reversal of impairment
 2
– 21887 21887
disposal of share investment
 3
853 – 853
additional investments 43 – 43
at end of year 50 97455 97505
net book value
at 31 march 2012 1228 72835 74063
at 31 march 2013 780 76043 76823
at 31 march 2014 50 97455 97505
1
 the fair value adjustment was in relation the investment in mantle diamonds ltd and kimberley diamonds ltd
2
 the impairment reversal was in relation to all investments held in bnc refer to note 35 impairments
3
 the disposal of share investment related to all the shares held in mantle diamonds ltd on 24 february 2014
the recoverable value of the investments in the zimbabwean operation exceeds its carrying value but developments in the zimbabwe indigenisation legislation 
which are explained in more detail in the directors’ report on page 29 may have an impact on the recoverable value of the investments
the impact cannot be reliably measured as there are uncertainties regarding the implementation of this legislation which the directors consider may 
impact the carrying value amounting to 965m 2013 746m of the investments relating to zimbabwean subsidiaries consolidated in the group 
financial statements
these ﬁnancial statements do not include any adjustments that would result from the impact of the zimbabwe indigenisation legislation on the carrying value 
of the investment held by the company and on the entities that are included by consolidation in the group ﬁnancial statements
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
69
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
in addition to the company’s investments in shares in group undertakings loans to group undertakings totalling 77708300 2013 62698297 are 
included in trade and other receivables within note 25 below the major subsidiaries in which the group’s interest at the yearend is more than 20 are 
as follows 
subsidiary undertakings country activity
percentage of 
shares held by 
group 
semhkat sprl
 1
 democratic republic of congo base metal exploration 100
bindura nickel corporation limited zimbabwe holding company 75
trojan nickel mine limited zimbabwe nickel mining 75
freda rebecca gold mine limited zimbabwe gold mining 85
mwana africa holdings limited mauritius holding company 100
mwana africa holdings proprietary limited south africa holding company 100
basilik trading proprietary limited south africa management services 100
sibeka sa belgium holding company 100
mwana africa congo gold sprl
1
 democratic republic of congo exploration of gold 100
southernera diamonds inc canada diamond exploration 100
southernera international limited cayman islands holding company 100
southernera management services south africa 
proprietary limited
south africa management services and diamond 
exploration
100
zimnick mauritius holding company 100
congo copper ltd mauritius holding company 100
mwana africa congo limited mauritius exploration of gold 100
 companies in which mwana africa plc has a direct holding
1  
the yearend of these subsidiaries is 31 december as required by drc legislation and appropriate adjustments were made to recognise movements to 31 march to bring the 
reporting date of these entities in line with the group’s ﬁnancial yearend 
the group holds a 6977 interest 2013 6893 in the klipspringer diamond mine joint venture situated in south africa’s limpopo province information 
regarding the group loss from the joint venture has been disclosed in accordance with ias31 interests in joint ventures and can be found in note 9 the group 
had no other material interest in an associate or joint venture 
as at 31 march 2014 27 exploration licences within semhkat formed part of an unincorporated joint venture agreement entered into with hailiang mining 
congo sprl the group retained a 100 interest in these licences at yearend and its interest may dilute based on the venture partner’s investment
additionally the joint venture partner can require the group to transfer these licences into a development company that will be held at 38 by the group  mwana africa annual report 2014
70
annual financial statements • notes to the annual financial statements
23  noncurrent receivables
group company
2014
’000
2013
’000
2014
’000
2013
’000
loan to community trust
 1
1136 – – –
loans and other receivables 2 5 – –
environmental investment 1150 1263 – –
total 2288 1268 – –
1
 previously the loan to community trust was included in current receivables
the environmental investment relates to the klipspringer diamond mine which has placed funds into an investment account for the purpose of funding 
rehabilitation costs upon closure of the mine
24  inventories 
group
2014
’000
2013
’000
raw materials and consumables 11355 10370
work in progress 1054 821
finished goods 585 15
total 12994 11206
during the year raw materials consumables and changes in ﬁnished goods and workinprogress recognised as cost of sales amounted to 19752694  
2013 18144471 no raw materials were written down to net realisable value during the year 2013 nil 
25  trade and other receivables
group company
2014
’000
2013
’000
2014
’000
2013
’000
trade receivables 10765 3133 – –
receivables from group undertakings – – 80248 62699
loans and other receivables 6589 8940 516 639
prepayments 600 838 138 260
tax receivable 878 – – –
total 18832 12911 80902 63598
all current trade and other receivables are due within 12 months of the ﬁnancial yearend at 31 march 2014 no trade receivables were outstanding past their 
due repayment date receivables from group undertakings are due and payable on demand
the group’s exposure to credit and currency risks and impairment losses related to trade and other receivables is disclosed further in note 34 
26  cash and cash equivalents
group company
2014
’000
2013
’000
2014
’000
2013
’000
cash and cash equivalents 9089 15194 1420 1585
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
71
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
net cash and cash equivalents were represented by the following major currencies
group company
2014
’000
2013
’000
2014
’000
2013
’000
british pound 292 607 292 607
euro 7 7 – –
south african rand 211 527 3 7
united states dollar 8579 14053 1125 971
net cash and cash equivalents 9089 15194 1420 1585
included in the group’s cash and cash equivalents is an amount of 1796277 2013 1746683 which represents restricted cash of which 39510  
2013 15103 is being held by banking institutions as guarantees and 1756767 2013 1731579 is reserved for loan repayments
the group’s exposure to interest rate risks and sensitivity analysis for ﬁnancial assets and liabilities is disclosed in note 34
27  issued share capital 
number of shares nominal value of shares
2014
’000
2013
’000
2014
’000
2013
’000
allotted called up and fully paid
opening balance 1119727051 720567308 17943 11598
split to deferred shares – – – –
issued during the year 278053624 399159743 4410 6345
closing balance 1397780675 1119727051 22353 17943
deferred shares
opening balance 535141760 535141760 77219 77219
split from ordinary shares – – – –
closing balance 535141760 535141760 77219 77219
total 1932922435 1654868811 99572 95162
on 12 september 2013 130254717 ordinary shares were issued to new and existing investors by the company and were admitted to the aim market of the 
london stock exchange at a subscription price of 157 pence per share raising a total of £2044999 on 20 september 2013 109913459 ordinary shares 
were issued to new and existing investors by the company and were admitted to the aim market of the london stock exchange at a subscription price of 
157 pence per share raising a total of £1725611
on 23 october 2013 the company implemented previously accrued bonus arrangements in respect of the year ended 31 march 2013 pursuant to which 
37885448 ordinary shares were admitted to the aim market of the london stock exchange and were issued at a price of 157 pence per share in lieu of cash 
bonuses none of which were issued to directors of the company
the deferred shares have no voting rights no rights to dividends and only very limited rights to a return on capital whereas ordinary shares have 
these rights
no shares were issued but not fully paid as at 31 march 2014 2013 nil
warrants
warrants were granted to liberum capital ltd under the terms of a warrant agreement dated 20 april 2012 the warrants provide the warrant holder with the 
right to subscribe for 5624727 ordinary shares at an exercise price of 6 pence per share at any time up to 3 years from 20 april 2012 mwana africa annual report 2014
72
annual financial statements • notes to the annual financial statements
28  loan payable 
2014
’000
2013
’000
total liability 4269 6066
current portion included in note 30 1823 1793
long term portion 2446 4273
the loan is secured by a mortgage bond registered over moveable and immovable assets of freda rebecca gold mine
the following table illustrates the contractual maturities of ﬁnancial liabilities including estimated interest payments
2014
’000
2013
’000
cashﬂow proﬁle
within one year 2121 2250
two to ﬁve years 2577 4717
over ﬁve years – –
contracted 4698 6967
29  rehabilitation provisions 
2014
’000
2013
’000
balance at beginning of year 18893 18064
exchange rate adjustments 189 224
provisions made during the year 46 1014
provisions reversed during the year 949 –
unwinding of discount 46 39
balance at end of the year 17847 18893
the rehabilitation provision relates principally to the estimated closure and rehabilitation costs of the business operations of bnc freda rebecca and the 
klipspringer diamond mine joint venture settlement of this provision will occur at the end of life of each mining operation
30  accruals and other payables 
2014
’000
2013
’000
accrued expenses and other payables 19745 14338
tax payable – 350
current portion of loan payable 1823 1793
balance at end of the year 21586 16481
the company’s other payables and accrued expenses as at 31 march 2014 amounted to 4404213 2013 3344145
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
73
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
31  provisions 
provisions at 
beginning of 
year
’000
effect of 
movements 
in exchange 
rates
’000
additional 
provisions
’000
amounts 
settled during 
the year
’000
provisions re
versed during 
the year
’000
provisions at 
end of year
’000
2014
legal
 1
1387 – 264 153 247 1251
rbz surrender provision
 2
5065 – – – 5065 –
other
 3
2663 20 2375 3004 660 1354
total 9115 20 2639 3157 5972 2605
2013
legal 3727 – 693 596 2437 1387
rbz surrender provision
 2
5065–––– 5065
other 1887 29 2280 1233 242 2663
total 10679 29 2973 1829 2679 9115
1
 contingent liabilities are disclosed in note 38 relating to these legal provisions
2
 the rbz surrender provision was presented as a contra against a corresponding receivable during the current ﬁnancial year
3
 the provisions relate to various claims raised against the group’s zimbabwean subsidiaries
32  pension scheme
group 
certain of the group’s zimbabwean subsidiaries contribute towards deﬁned contribution plans details of which are provided below 
mining industry pension fund 
the mining industry pension fund is a deﬁned contribution plan the group’s obligations under the scheme are limited to 5 of pensionable emoluments for 
lower grade employees and 10 for higher grade employees 
others 
the group contributes towards personal pension schemes of certain of its employees
the pension charge for the year represents contributions payable by the group to the various schemes and amounted to 1349912 2013 670814 
there were no unaccrued or prepaid contributions at either the beginning or end of the ﬁnancial year 
company
the company does not operate any pension schemes but does make contributions towards personal pension schemes of its employees including 
certain directors 
the pension charge for the year represents contributions payable by the company to the personal pension schemes and amounted to 158338 
2013 175543 
there were no unaccrued or prepaid contributions at either the beginning or end of the ﬁnancial year  mwana africa annual report 2014
74
annual financial statements • notes to the annual financial statements
33  sharebased payments 
share options – employees
the company has outstanding options under an unapproved share option scheme adopted in 1997 which expired in september 2007 the 1997 scheme and 
a new scheme which was approved by shareholders at the company’s annual general meeting on 31 july 2007 the 2007 scheme 
1997 scheme
the company has operated this scheme since 1997 where options were granted to any employee ofﬁcer or director of the company or any subsidiary of the 
company the limit for options granted under this scheme was not to exceed 15 of the number of issued ordinary shares from time to time 
the board granted options at its discretion the subscription price was ﬁxed by the board at the price per share on the dealing day preceding the date of grant  
for the directors these options vest immediately and may be exercised at any time within a sevenyear period from the date of the grant unless the board 
determines otherwise the options lapse if not exercised by the seventh anniversary of the grant 
for the employees there is a vesting period of one to three years from the date of grant once vested the options may be exercised at any time within a seven
year period from date of grant unless the board determines otherwise the options lapse if not exercised by the seventh anniversary of the grant 
the right to exercise an option terminates on the holder ceasing to be a participant subject to certain exceptions which broadly apply in the event of death 
of the option holder or where the option holder ceases to be a participant due to retirement ill health accident or redundancy in such a case the option may 
be exercised within six months of such event provided such exercise will take place within seven years of the original date of grant 
2007 scheme 
the 2007 scheme allows for both tax approved options approved options to be made to employees resident in the united kingdom and unapproved options 
unapproved options which can be made to both resident and nonresident employees 
the company has operated this scheme since december 2007 where options may be granted to fulltime employees and directors of the company or any 
subsidiary of the company the overall limit for options granted under this scheme and any other employees’ share scheme adopted by the company is in any 
rolling tenyear period 10 of the issued ordinary share capital including treasury shares of the company for the time being plus 8100000 ordinary shares 
there is an individual limit of ordinary shares to a maximum of £30000 in value in respect of approved options 
options may be granted when the remuneration committee determines within 42 days of the announcement by the company of its full or interim results 
options may be granted outside the 42day period if the remuneration committee considers there to be exceptional circumstances options must be granted 
subject to performance conditions being satisﬁed the performance conditions must be objective and save where the remuneration committee determines 
there to be exceptional circumstances the performance conditions must relate to the overall ﬁnancial performance of the company or the market value of 
ordinary shares over a period of at least three years the performance conditions can be waived or amended by the remuneration committee if it determines 
that a change of circumstances means that the performance conditions cannot reasonably be met the current performance condition in relation to these 
options is that the market value of the company’s shares must increase above the exercise price by not less than 10 per annum on a compound basis 
no consideration is payable on the grant of an option and no option may be granted after 31 july 2017 
the remuneration committee determines the exercise price before the options are granted and cannot be less than the market value of the shares on the 
date of grant 
the options can only be exercised on or after the third anniversary of the date of grant provided the performance conditions have been satisﬁed or waived by 
the remuneration committee the options lapse if not exercised by the tenth anniversary of the grant 
these options lapse when the option holder ceases to be an eligible employee in the case of death a participant’s personal representatives may exercise 
hisher options within 12 months after the date of death where an option holder ceases to be an employee by reason of injury disability redundancy the 
company that employs the option holder ceasing to be a subsidiary of the company retirement pregnancy or in any other circumstances determined by the 
remuneration committee the options may be exercised within six months of the termination of employment or such longer period as may be determined by 
the remuneration committee 
share incentives 
the share incentive scheme was approved by shareholders at the company’s annual general meeting on 31 july 2007 the share incentive scheme the share 
incentive scheme is designed to complement the share option scheme to facilitate awards to selected executives and managers the share incentive scheme 
permits the award of any one or a combination of the following incentives 
• the sale of ordinary shares on deferred payment terms 
• share awards as part of a bonus scheme by way of nil cost options in consideration of cash bonuses forgone on terms that would be determined by the 
remuneration committee of the company and 
• the issue of share appreciation rights either by the company or ebt as deﬁned below
the company has also adopted an employees’ beneﬁt trust ebt which will operate in conjunction with the share option scheme and share incentive scheme 
the ebt has not yet been utilised for this purpose and there have been no awards under the share incentive scheme since it was approved by shareholders 
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
75
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
the share options have been valued using a black scholes model 
2014 2013
weighted 
average 
exercise price
number of 
options
weighted 
aver age  
exercise price
number of 
options
unapproved ptions – 1997 scheme
outstanding at the beginning of the year 55p 5900000 54p 19090000
granted during the year –– ––
exercised during the year –– ––
lapsedcancelled during the year 426p 3900000 52p 13190000
outstanding at the end of the year 79p 2000000 55p 5900000
exercisable at the end of the year 79p 2000000 55p 5900000
unapproved options – 2007 scheme
outstanding at the beginning of the year 8p 62813094 15p 33652144
granted during the year 16p 11125000 55p 34135950
exercised during the year –– ––
lapsedcancelled during the year 18p 8434000 38p 4975000
outstanding at the end of the year 8p 65504094 8p 62813094
exercisable at the end of the year 22p 11690715 41p 11690715
approved options – 2007 scheme
outstanding at the beginning of the year 9p 2442374 17p 936702
granted during the year 16p 1875000 55p 1627595
exercised during the year –– ––
lapsedcancelled during the year –– 36p 121923
outstanding at the end of the year 56p 4317374 9p 2442374
exercisable at the end of the year 22p 351208 41p 351208
the total expenses recognised for the year arising from sharebased payments related to share options is 511566 2013 342224
no options were exercised during current or previous year 
the options outstanding at the yearend have a range of exercise prices of 16p to 79p 2013 5p to 79p and a weighted average contractual life of 76 years 
2013 80 years 
the following assumptions have been used in valuing the share options 
2014 2013
weighted average fair value at measurement date 001 002
weighted average share price 002 006
weighted average exercise price 002 006
expected volatility 35 35
expected option life 45 years 45 years
expected dividends – –
riskfree interest rate 30 30
the expected volatility is primarily based on the historic volatility 
since the yearend no share options have been awarded exercised or have lapsed  mwana africa annual report 2014
76
annual financial statements • notes to the annual financial statements
34  financial instruments 
the directors determine as required the degree to which it is appropriate to use ﬁnancial instruments commodity contracts other ﬁnancial instruments or 
techniques to mitigate risks the principal risks for which such instruments may be appropriate are interest rate risk liquidity risk foreign currency risk and 
commodity price risk the most signiﬁcant of these is foreign currency risk which comprises transactional exposure on operating activities some translation 
exposure also exists in respect of the investments in overseas operations since these have functional currencies other than the group’s reporting currency  
the group is also exposed to commodity price risk since its sales are dependent on the price of gold nickel and diamonds 
the group has not currently engaged in any instruments to mitigate or hedge any such risks although the directors keep this regularly under review 
exposure to currency risk
the group’s exposure to currency risk was as follows based on notional amounts
2014 2013
zar
’000
gbp
’000
other
’000
total
’000
zar
’000
gbp
’000
other
’000
total
’000
receivables 68 558 – 626 436 899 – 1335
net cash and cash equivalents 211 292 7 510 526 607 7 1140
payables 337 1733 – 2070 866 3210 – 4076
gross balance sheet exposure 58 883 7 934 96 1704 7 1601
the following signiﬁcant exchange rates applied against the us dollar during the year
average rate balance sheet rate
2014 2013 2014 2013
eur 07464 07768 07271 07799
gbp 06297 06328 06009 06575
zar 101238 84948 105833 92451
sensitivity analysis 
a 10 weakening of the us dollar against the following currencies at 31 march and the average rate for the year ended 31 march would have increased
decreased equity and results before noncontrolling interest by the amounts shown below this analysis assumes that all other variables in particular interest 
rates remain constant the analysis is performed on the same basis for 2013 
equity results
2014
’000
2013
’000
2014
’000
2013
’000
eur 2 2 – 1
gbp 1 – 1 31
zar 495 744 207 74
a 10 strengthening of the us dollar against the above currencies would have had a similar but opposite effect to the amounts shown above on the basis 
that all other variables remain constant 
credit risk 
the company’s maximum exposure to credit risk is the value of its trade receivables and loans and other receivables which are reﬂected in note 25
in freda rebecca trade receivables of 4513938 2013 2927307 were due by fidelity printers and reﬁneries 2013 zimbabwe chamber of mines none 
of which was outstanding past its due date
in bnc trade receivables of 6024342 2013 nil were due by glencore which were due within normal terms of agreement
there is a concentration of risk in respect of trade receivables from fidelity printers and reﬁneries as well as glencore being the two major customers of the 
respective subsidiaries
based on historical default rates the group believes that no impairment allowance is necessary in respect of trade receivables as explained in note 7
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
77
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
commodity price risk 
for the 2014 ﬁnancial year the group’s earnings were mainly exposed to changes in the prices of gold and nickel a 10 increase and decrease in these prices 
would have increaseddecreased equity and results by the amounts shown below this analysis assumes that all other variables in particular interest rates 
remain constant the analysis is performed on the same basis for 2013 
equity results
2014
’000
2013
’000
2014
’000
2013
’000
10 increase in nickel price 6501 103 6501 103
10 decrease in nickel price 6501 103 6501 103
10 increase in gold price 7729 10780 7729 10780
10 decrease in gold price 7729 10780 7729 10780
liquidity risk 
the group analysis of the liquidity risk is based on an 18month term cash ﬂow projection this is disclosed in detail in note 3 along with the risks and 
uncertainties included within the forecasts
financial risk management
fair values
fair value is deﬁned as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants 
at the measurement date wherever possible fair value is calculated by reference to quoted prices in active markets for identical instruments where no such 
quoted prices are available other observable inputs are used and if there are no observable inputs then fair values are calculated by discounting projected 
future cash ﬂows at prevailing rates translated at yearend exchange rates
fair values for ﬁnancial assets and liabilities recognised at cost in the group balance sheet
book value fair value
2014
’000
2013
’000
2014
’000
2013
’000
financial assets
investments held at fair value through profit or loss
investments 615 1354 615 1354
loans and receivables
noncurrent receivables 2288 1267 2288 1267
trade and other receivables 18832 12911 18832 12911
cash and cash equivalents 9089 15194 9089 15194
30209 29372 30209 29372
financial liabilities
loan payable
 1
2446 4273 2446 4273
trade payables 15300 10825 15300 10825
accruals and other payables 21568 16481 21568 16481
39314 31579 39314 31579
1 
management is of the opinion that the expected recoverable amount is equal to the book value
fair value hierarchy
the table below analyses ﬁnancial instruments measured at fair value into a fair value hierarchy based on the valuation technique used to determine fair value 
• level 1 quoted prices unadjusted in active markets for identical assets or liabilities
• level 2 inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly ie as prices or indirectly 
ie derived from prices
• level 3 inputs for the asset or liability that are not based on observable market data unobservable inputs mwana africa annual report 2014
78
annual financial statements • notes to the annual financial statements
34  financial instruments continued
2014 2013
level 1 
’000
level 2 
’000
level 3 
’000
total 
’000
level 1 
’000
level 2 
’000
level 3 
’000
total ’000
mantle diamonds ltd – ––– – – 779 779
kimberley diamonds ltd 50 – – 50 – –––
others 6 – 559 565 16 – 559 575
total investments 56 – 559 615 16 – 1338 1354
total loans and receivables – – 30209 30209 – – 29372 29372
total ﬁnancial liabilities – – 39314 39314 – – 31579 31579
during the ﬁnancial year there were no transfers between levels in order to determine the fair value of investments management used a valuation technique 
in which all signiﬁcant inputs were based on observable market data for level 1 including quoted share prices 
the group’s only ﬁnancial asset held at fair value through proﬁt or loss is its investment in kimberley diamonds ltd which is categorised as level 1
reconciliation of level 3 fair value measurements of ﬁnancial assets for the group is as follows
2014
’000
2013
’000
opening balance 1338 1785
fair value adjustment recognised in proﬁt or loss – 387
disposal of ﬁnancial assets 853 –
foreign exchange adjustments 74 60
closing balance 559 1338
35 impairment
group
an impairment indicator was identiﬁed for freda rebecca being the low gold price management calculated the valueinuse for the cashgenerating unit 
of freda rebecca gold mine by applying a discounted cash ﬂow model to the future expected cash ﬂows expected to arise from the operation the key 
assumptions of the discounted cash ﬂow model were a gold price of 1250oz at an average yearly production of around 62000oz pa for another seven 
years of the mine still being in production a pretax discount rate ranging between 20 and 25 was used and was calculated as a discounting rate for 
similar mining operations in developing countries adjusted for the speciﬁc risks of the freda rebecca gold mine management was satisﬁed that the value
inuse exceeded the carrying amount of the assets despite the lower current gold price and no impairment of freda rebecca’s assets was deemed necessary
in the prior year all of bnc’s noncurrent assets were impaired after the falling nickel price was deemed a trigger event for impairment testing and a discounted 
cash ﬂow model was applied to the trojan life of mine model in the current year nickel prices have steadily been increasing and with the trojan mine becoming 
fully operational another discounted cashﬂow model was applied to the updated trojan life of mine plan the key assumptions for the model was a longterm 
nickel price of 18500 for the remaining life of mine of an estimated eight years a pretax discount rate ranging between 20 and 25 which was calculated 
as a discounting rate for similar mining operations in developing countries adjusted for the speciﬁc risks of bnc the trojan mine operates independently and 
is regarded as a separate cash generating unit cgu from other bnc assets this resulted in a reversal of the impairment of the noncurrent assets of trojan 
mine recorded in the prior year to the amount of 280m before tax this value represents the fair value less costs of disposal for the cgu the bsr smelter 
and shangani mine are still under care and maintenance and no impairment reversal was deemed appropriate
during the year semhkat exploration licences for asma pachalu and kinkombe sites expired were not renewed and no future plans to explore these 
areas are expected this was a trigger event for impairment testing these licences were for speciﬁc geographical areas and are regarded as separate cgus 
management is of the opinion that no future beneﬁts or cash ﬂows will come from the past costs capitalised to these projects and the full value of these 
intangible assets were fully impaired to the amount of 553824
the klipspringer diamond mine is currently on care and maintenance and this in conjunction with current issues regarding the renewal of the diamond 
licence was deemed a trigger event for impairment testing a decision was made to impair the full value of the noncurrent assets to the value of 117514
company
during the year the company reversed impairments relating to loans and investments of bnc directly and indirectly after management was satisﬁed that 
bnc will be able to repay these loans and the full value of the investment is expected to be recovered from future cash ﬂows
notes to the annual financial statements continued
for the year ended 31 march 2014 mwana africa annual report 2014
79
strategic report governance annual financial statements
annual financial statements • notes to the annual financial statements
the effect of the impairment reversallosses on the balance sheet is as follow
group company
2014
’000
2013
’000
2014
’000
2013
’000
property plant and equipment
 1
27870 43949 – –
intangible assets 554 – – –
investments – – 21887 21887
trade and other receivables – – 13157 13157
net assets 27316 43949 35044 35044
retained earnings 20269 33709 35044 35044
noncontrolling interest 7047 10240 – –
net equity and liabilities 27316 43949 35044 35044
1
  the current year impairment for property plant and equipment includes an impairment charge of 118k shown as net of an impairment reversal of 27987 which amounts to 
a total impairment charge for the year of 671k and a total impairment reversal for the year of 27987
36  events after the reporting period 
subsequent to the end of the reporting period the zani kodo mining licences have been transferred into mizako sarl mwana africa plc is 80 shareholder 
from sokimo sarl
this is a nonadjusting balance sheet event which therefore does not impact the ﬁnancial statements as at 31 march 2014
37  related party disclosures
group 
transactions between group subsidiaries which are related parties have been eliminated on consolidation and are not disclosed in this note remuneration 
of key management personnel are disclosed in note 13
company 
the company provided funding to subsidiary companies which are disclosed as current receivables in note 25 investments in subsidiaries are disclosed in 
note 22
related party transactions during the year
management fees paidreceived were in relation to management time spent onby these companies during the year
2014
’000
management fees received
mwana africa holdings pty ltd 32
basilik trading pty ltd 28
management fees paid
mwana africa holdings pty ltd 202
interest received
bindura nickel corporation ltd 767
transactions with key management personnel and director transactions are disclosed in note 13 mwana africa annual report 2014
80
annual financial statements • notes to the annual financial statements
38  commitments and contingent liabilities
commitments
capital commitments at the end of the ﬁnancial year relating principally to property plant and equipment for bnc and freda rebecca for which no provision 
has been made are as follows
group company
2014
’000
2013
’000
2014
’000
2013
’000
contracted 1220 1253 – –
the group and company have the following total minimum lease payments under noncancellable operating leases
group company
2014
’000
2013
’000
2014
’000
2013
’000
operating leases which expire
within one year 281 168 178 96
two to ﬁve years 615 842 448 572
over ﬁve years – – – –
contracted 896 1010 626 668
contingent liabilities
the group and company monitor contingent liabilities including inter alia those relating to taxation in the various jurisdictions in which the company operates 
environmental closure and other contingent liabilities on an ongoing basis provision for such liabilities is raised in the ﬁnancial statements when the necessary 
recognition criteria have been satisﬁed
the following contingencies exist at the yearend
group 
there are a number of legal claims which have been brought against bnc and freda rebecca these have been provided for when the obligation relating to 
these liabilities met the criteria for recognition under ias 37 and are disclosed in note 31 
company
the company has committed to a death in service beneﬁt of ﬁve times executive annual salary for mr kk mpinga twice the annual salary is covered by an 
insurance policy leaving the company with a remaining exposure of three years
the company has issued a guarantee to the industrial development corporation of south africa for the loan given to freda rebecca
notes to the annual financial statements continued
for the year ended 31 march 2014 annual financial statements • corporate information
corporate information
registration number 
02167843 
offices 
registered and corporate johannesburg
premier house
10 greycoat place  
london sw1p 1sb
united kingdom
1st floor block b
sandton place
100 west street  68 wierda road east
sandton 2146  
south africa
po box 78278
sandton 2146  
south africa                             
telephone 44 0207 654 5580
facsimile 44 0207 654 5581
telephone 27 011 883 95501
facsimile 27 011 883 9511
directors 
sg morris 
kk mpinga 
yc kwan 
yh ning 
yc hu 
jl botha
company secretary 
s gilbert 
auditors 
kpmg llp  
15 canada square 
london e14 5gl  
united kingdom 
bankers 
barclays bank plc 
nominated advisor and broker 
peel hunt
moor house
120 london wall
london ec2y 5et
united kingdom
investor relations 
russell  associates
42 glenhove road
johannesburg 2196
south africa  strategic report• contents
wwwmwanaafricacom


Summary:
 mwana africa annual report 2014
06
stra stra strategi tegi teg c re c re eport port r • chai chai hairman rman rma ’s l ’s l s ette ette etter r r
chairman’s letter
the past year has probably been one of the most signiﬁcant in our 
company’s history both strategically and operationally 
strategically we afﬁrmed our position and goal to be a multi 
commodity multicountry panafrican mining group after several 
years of building our asset portfolio with shareholder funding to 
achieve a position where we are capable of achieving income 
selfsufﬁciency our business model has moved into its next logical 
phase of generating future growth organically seeking funding 
and if appropriate partners on a speciﬁc project by project basis 
rather than by general capital raising our focus is ﬁrmly set on 
rewarding shareholders through growth in asset value
operationally we undertook a fundamental restructuring founded 
on the premise that in mining the lowestcost producer wins the 
day this was motivated by falling prices for the commodities we 
produce gold nickel and diamonds by the understanding that 
raising further development capital could be difﬁcult without 
offering increased foreseeable value and by the imperative of 
matching our projects to our capacity in laying the groundwork for 
this during the 12 months under review we
• trimmed our head count from board level down
• reduced the scale of our london ofﬁce
• reduced salaries voluntarily
• reduced our reliance on professional services
• cut operating costs and
• improved operating efﬁciencies
our activities are being directed towards the consolidation of our 
diversiﬁcation strategy reducing overheads derisking technical 
mining and exploration issues increasing our operational cash 
generation capabilities such that of our ﬁve major projects two 
– bindura nickel and freda rebecca gold mine – are income 
generating two – copper and diamonds – have reduced their burn 
rates and one the zanikodo gold project in the eastern drc is 
advancing at limited cost to mwana as regards corporate costs 
we are on track to achieve our target in annual savings after 
allowing for onceoff retrenchment and other costs of reduction 
or closure
we have the assets in our portfolio capable of delivering on our 
evolving strategic objectives at bnc the operational plan allows 
earlier mining access and the blending of higher grade massives 
with disseminated ore to ensure a sustainable improved feed 
grade through the trojan life of mine plan we have restarted the 
deepening project and organic growth will centre on reopening 
the smelter subject to funding to add value through beneﬁciation 
most of the legacy labour liabilities at bnc should be discharged 
by december 2014 and the other liabilities by december 2015 
freeing cash ﬂows to be applied to investment and operational 
purposes at freda rebecca we will complement our underground 
production by concentrating on improving the performance of 
our plant and complete our testing programme of the recently 
commissioned tailings retreatment plant at semhkat the labour 
force has been substantially cut and our chinese partner hailiang 
has assumed responsibility for exploration expenditure at 
klipspringer diamonds the joint venture to treat residue material is 
generating income while the restart of the mine is being evaluated 
at zani kodo we are assessing the prospects of feasibility studies 
and a small pilot plant for gold production
our emphasis upon becoming a multicommodity company is 
bearing fruit through the reduction of risks associated with being 
dependant on a single metal we have already enjoyed some 
beneﬁts from this commodity diversiﬁcation with bnc production 
having supported the group and freda rebecca pre2009 while 
freda rebecca production supported the group and bnc post2009 
i am conﬁdent of the sound longterm prospects of our two 
principal metals though the immediate future is likely to exhibit 
price volatility the nickel price has been bolstered by indonesia’s 
stuart morris – interim chairman strategic report
mwana africa annual report 2014
07
governance annual financial statements
strategic report • chairman’s letter
ban on exports of nickel ore whilst the gold price has been lower 
as investors anticipate interest rate increases that raise the cost of 
holding bullion as an investment
as the past year’s results have shown we have demonstrated 
an ability to contain costs to acceptable levels we are fortunate 
that the majority of both our revenues and costs are denominated 
in us dollars as this relieves us of some of the distraction of 
managing exchange rate ﬂuctuations our strategy is to mine 
proﬁtably we will not pursue new ventures unless they display 
clear prospects of sound returns on investment
careful cashﬂow management is central to our business plan and 
we will direct investment to those projects and operations that 
offer the best prospects of returns this applies as much to our 
exploration initiatives in the drc as to our developed mines in 
zimbabwe and this is dealt with more fully by my colleague and 
ceo kalaa mpinga in his ceo’s report
in zimbabwe – the central point of our mining and processing 
operations – the outcome of the general election in july 2013 
lifted much of the political uncertainty that preceded it like the 
governments of many other countries dependent on primary 
products zimbabwe’s is aware of the need to foster mining and 
investment at the same time being mindful of its responsibility to 
ensure that the local populace should share fairly in the fruits of 
their country’s own resources it is pleasing that we are in a position 
to resume smelting at bnc as it represents cooperation with the 
zimbabwean government and its beneﬁciation objectives we 
believe that this too can contribute to the indigenisation policy by 
creating more jobs for local people by increasing purchases from 
local suppliers and through generating higher taxable revenues
i have been interim chairman since only february 2014 but 
have always appreciated the skills and expertise that my board 
colleagues and executives bring to the management of our 
company during the year my longserving predecessor oliver 
baring retired along with john anderson and etienne denis and 
i thank them for the direction they gave during their tenure on 
the board oliver was succeeded albeit brieﬂy by mark wellesley
wood who we would also like to thank for his contribution 
i would also like to thank donald mcalister who left in september 
for his contribution during his time on the board and to welcome 
our new finance director yim kwan to the board these departures 
mean that we are seeking to appoint a permanent chairman as 
well as improving the balance of our board and that search will 
be completed as expeditiously as possible i would like to express 
my sincere thanks to my colleagues on the board our senior 
executives and all of our staff in many countries for their support 
during the past challenging year i also express my gratitude to our 
shareholders and stakeholders for their continued support which 
has contributed to the successes already mentioned above
safety is our priority and it is with deep regret that i record the 
unfortunate deaths of two of our colleagues lovemore nyanusanu 
and shepherd muradzi in accidents at freda rebecca and trojan 
my condolences go to the families friends and colleagues of both 
men i assure all of our employees that our efforts to ensure safety 
are a priority and remain unremitting
i make no forecast of our group’s nearterm performance particularly 
given the current uncertainties over commodity prices there remains 
some distance to travel before we are generating positive cash 
ﬂows at all of our projects but while we will be patient in achieving 
this we remain mindful of our commitment to deliver wealth to 
our shareholders we shall build on our assets that are generating 
positive cash ﬂows and carefully develop those that are still in 
their infancy or are being maintained in anticipation of proﬁtable 
development stakeholders may rest assured that we will work hard 
to implement our strategy and focus on the sound development of 
our assets
stuart morris
interim chairman
8 july 2014