Normalised earnings

for the year ended

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Rand million Unaudited 
31 December 
2016 		   Unaudited 
31 December 
2015 		  
Reconciliation of normalised earnings        
Headline earnings attributable to owners of Kumba 8,724     3,792    
Gain on lease receivable  –     (418)   
(Recognition)/derecognition of deferred tax asset  (86)    801    
   8,638     4,175    
Taxation effect of adjustments  –     117    
Non-controlling interest in adjustments  20     (115)   
Normalised earnings  8,658     4,177    
Normalised earnings (Rand per share)            
Basic  27.10     13.02    
Diluted  26.96     13.02    
The calculation of basic and diluted normalised earnings per share is based on the weighted average number of ordinary shares in issue as follows:             
   Weighted average number of ordinary shares  319,520,658     320,817,364    
   Diluted weighted average number of ordinary shares  321,163,523     320,817,364   

This measure of earnings is specific to Kumba and is not required in terms of International Financial Reporting Standards or the JSE Listings Requirements. Normalised earnings represents earnings from the recurring activities of the group.

This is determined by adjusting the headline earnings attributable to the owners of Kumba for non-recurring expense or income items incurred during the year. The recognition of the deferred tax asset is a non-recurring item and has therefore been adjusted in determining normalised earnings.