36
Notes to the Financial Statements
9
Dividend No dividends were paid or proposed for the year (2002: Nil).
10 Earnings per share
The calculation of earnings per share is based on earnings after tax and minority interests and the weighted average number of shares outstanding during the year of 128.5 million (2002: 119.1 million). Earnings per share has been shown before and after exceptional items in order to show the impact of the exceptional items on the underlying results of the business. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares. The Company has three categories of dilutive potential ordinary shares being, warrants (under the agreement with the Company’s hedge counterparties), share options (under the Senior Management Share Option Scheme) where the exercise price is less than the average price of the Company’s ordinary shares during the period and employee share incentive plans where shares are issued free to senior management provided certain criteria are met. 2003
2002
54.8
79.7
Weighted average number of ordinary shares (millions) Dilutive warrants (millions) Dilutive share options (millions) Dilutive employee share incentive plans (millions)
128.5 2.3 2.1 0.8
119.1 5.3 1.6 0.6
Adjusted weighted number of ordinary shares (millions)
133.7
126.6
0.43 0.41
0.67 0.63
49.2
56.2
Weighted average number of ordinary shares (millions) Dilutive warrants (millions) Dilutive share options (millions) Dilutive employee share incentive plans (millions)
128.5 2.3 2.1 0.8
119.1 5.3 1.6 0.6
Adjusted weighted number of ordinary shares (millions)
133.7
126.6
0.38 0.37
0.47 0.44
Before exceptional items Basic and diluted earnings attributable to ordinary shareholders (US$m)
Basic earnings per share (US$) Diluted earnings per share (US$) After exceptional items Basic and diluted earnings attributable to ordinary shareholders (US$m)
Basic earnings per share (US$) Diluted earnings per share (US$) 11 Intangible assets Group
Goodwill US$m
Cost At 1 January 2003 Additions Reductions
22.1 0.7 (1.1)
At 31 December 2003
21.7
Amortisation At 1 January 2003 Charge for the year
4.8 1.5
At 31 December 2003
6.3
Net book value At 31 December 2003 At 31 December 2002
15.4 17.3
The additional goodwill relates to contingent consideration of US$0.7 million which became payable in respect of the acquisition of Pioneer Goldfields Limited (Teberebie mine) in 2000 following increases in the gold price. The reduction in goodwill is in respect of a re-negotiation of the amount of deferred consideration due in respect of Teberebie.