17. Share capital and reserves
 

Share capital

     30 September 2018       30 September 2017    
    Number 
of shares 		     US$'000      Number 
of shares 		     US$'000    
Authorised – ordinary shares of US$0.001 each                         
As at 30 September   10 000 000 000      10 000      10 000 000 000      10 000    
Authorised – convertible redeemable preference shares of US$1 each                          
As at 30 September   1 051      1      1 051      1    
Issued                         
Ordinary shares                         
Balance at the beginning of the year  261 000 000     261     256 981 571     257    
Issued as part of management share award plans  –     –      2 984 853      3    
Issued to treasury shares   4 000 000      4      1 033 576      1    
Balance at the end of the year   265 000 000      265      261 000 000      261    
Treasury shares                         
Balance at the beginning of the year   987 274      1     –      –    
Issued   4 000 000      4      1 033 576      1    
Transferred as part of management share award plans   (889 703)     (1)     (46 302)     –    
Balance at the end of the year   4 097 571      4      987 274      1    
Issued and fully paid   260 902 429      261      260 012 726      260    

Share premium

     30 September 2018       30 September 2017    
    Number 
of shares 		     US$'000      Number 
of shares 		     US$'000    
Balance at the beginning of the year  260 012 726     280 082     256 981 571     456 181    
Capital reduction  –     –     –     (179 175)   
Shares issued  889 703     463     3 031 155     3 076    
Balance at the end of the year  260 902 429     280 545     260 012 726     280 082    

Share capital

Allotments during the year were in respect of 4 000 000 (2017: 1 033 576) ordinary shares issued as treasury shares to satisfy the vesting of conditional awards and potential future settlement of appreciation rights of the participants’ of the Tharisa Share Award Plan. Allotments during the previous year were in respect of the award of 2 984 853 ordinary shares granted in terms of the Share Award Plan (conditional awards) of the participants’ of the Tharisa Share Award Plan.

During the year ended 30 September 2018, 889 703 (2017: 46 302) ordinary shares were transferred from treasury shares to satisfy the exercise of appreciation rights by the participants of the Tharisa Share Award Plan.

At 30 September 2018, 4 097 571 (2017: 987 274) ordinary shares were held in treasury.

All shares rank equally with regard to the Company’s residual assets. The holders of ordinary shares, other than treasury shares, are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Share premium

The share premium represents the excess of the issue price of ordinary shares over their nominal value, to the extent that it is registered at the Registrar of Companies in Cyprus, less share issue costs. The share premium is not distributable for dividend purposes.

During the year ended 30 September 2017, the share premium account was reduced by US$179.2 million with a corresponding increase in the retained earnings to reduce the accumulated losses to US$nil. The required Court Order was obtained on 8 March 2017 and filed at the Registrar of Companies on 9 March 2017.

The distribution during the year ended 30 September 2017 of US$2.6 million (US$1 cent per share) was approved by way of a special resolution on 1 February 2017. The special resolution was ratified by the Court Order on 8 March 2017.

During the years ended 30 September 2018 and 30 September 2017, the increases in the share premium account related to the issue and allotment of ordinary shares granted in terms of the Share Award Plan.

Other reserve

Other reserve represents the discount between the fair value and the acquisition consideration paid at the time for the Company’s 74.0% shareholding in Tharisa Minerals Proprietary Limited. The Company acquired the shares from its noncontrolling shareholders and in accordance with the requirements of IAS 1, the gain on bargain purchase was recognised in equity.

Retained earnings

The retained earnings includes the accumulated retained profits or losses of the Group and the share-based payment reserve. Retained earnings are distributable for dividend purposes.