Earnings per share

Basic earnings per share

The calculation of basic earnings per share for the year ended

December 31, 2017

was based on the adjusted profit attributable to shareholders of

$9,174

(

2016:

$8,288;

2015:

$4,679

), and a weighted average number of shares outstanding of

10,607,882

(

2016:

10,457,242;

2015:

10,419,017

Weighted average number of shares

(In number of shares)	Note	2017			2016			2015

Issued shares at beginning of year	19		52,787,428			52,078,908			52,117,908
Share consolidation (note 19)			(42,135,492	)		(41,663,126	)		(41,694,326	)
Issued shares post consolidation			10,651,936			10,415,782			10,423,582
Weighted average shares repurchased			(60,978	)		-			-
Weighted average cancellation during the year			-			-			(4,565	)
Weighted average shares issued			16,924			41,460			-
Weighted average number of shares at December 31			10,607,882			10,457,242			10,419,017

	2017			2016			2015
Profit attributable to shareholders		9,384			8,526			4,779
Blanket Mine Employee Trust Adjustment		(210	)		(238	)		(100	)
Adjusted profit attributable to shareholders		9,174			8,288			4,679
Basic earnings per share - $		0.86			0.79			0.45

Basic earnings are adjusted for the amounts that accrue to other equity holders of subsidiaries upon the full distribution of post-acquisition earnings to shareholders.

Diluted earnings is calculated on the basis that the unpaid ownership interests of Blanket Mine’s Indigenisation shareholders are effectively treated as options whereby the weighted average fair value for the period of the Blanket Mine shares issued to Indigenous Zimbabweans and which are subject to settlement of the loan accounts is compared to the balance of the loan accounts and any excess portion is regarded as dilutive. The difference between the number of Blanket Mine shares subject to the settlement of the loan accounts and the number of Blanket Mine shares that would have been issued at the average fair value is treated as the issue of shares for

consideration and regarded as dilutive shares. The calculated dilution is taken into account with additional earnings attributable to the dilutive shares in Blanket Mine, if any.

The interest of NIEEF and Fremiro shareholding were anti-dilutive in the current and prior year (i.e. the value of the options was less than the outstanding loan balance) and accordingly there was

adjustment to fully diluted earnings attributable to shareholders.

The calculation of diluted earnings per share at

December 31, 2017

was based on the adjusted profit attributable to shareholders of

$9,174

(

2016:

$8,288;

2015:

$4,679

), and a weighted average number of shares and potentially dilutive shares outstanding of

10,617,504

(

2016:

10,480,691;

2015:

10,440,651

), calculated as follows:

Weighted average number of shares (In number of shares)	2017		2016		2015
Weighted average shares at December 31		10,607,882		10,457,242		10,419,017
Effect of dilutive options		9,622		23,449		21,634
Weighted average number of shares (diluted) at December 31		10,617,504		10,480,691		10,440,651
Diluted earnings per share - $		0.86		0.79		0.45

The average market value of the Company’s shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the year during which the options were outstanding. Options of

18,378

(

2016:

68,795;

2015:

426,550

), were excluded from the dilutive earnings per share calculation as these options were anti-dilutive. The quantity of options outstanding as at year end that were out of the money and that had an anti-dilutive effect amounted to

5,000

(

2016:

18,000;

2015:

386,184

) options.