9. Earnings per share
 

Basic and diluted earnings per share

The calculation of basic and diluted earnings per share has been based on the following profit attributable to the ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding. Treasury shares are excluded from the weighted average number of ordinary shares outstanding. Vested share appreciation rights (‘SARS’) issued to employees at award prices lower than the current share price, results in a potential dilutive impact on the weighted average number of issued ordinary shares and have been included in the calculation of dilutive weighted average number of issued ordinary shares. Vested SARS issued to employees at award prices higher than the current share price, were excluded from the calculation of diluted weighted average number of issued ordinary shares because their effect would have been anti-dilutive. Vested but unissued conditional awards (‘LTIP’) have been included in the calculation of dilutive weighted average number of issued ordinary shares. The average market value of the Company’s shares for the purposes of calculating the potential dilutive effect of SARS was based on quoted market prices for the year during which the options were outstanding.

  2018   2017  
Profit for the year attributable to ordinary shareholders (US$’000) 48 433   57 601  
Weighted average number of issued ordinary shares for basic earnings per share (‘000) 260 329   257 393  
Weighted average number of issued ordinary shares for diluted earnings per share (‘000) 264 531   257 393  
Earnings per share        
Basic (US$ cents) 19   22  
Diluted (US$ cents) 18   22  

Headline and diluted headline earnings per share

The calculation of basic and diluted headline earnings per share has been based on the following profit attributable to the ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding. Treasury shares are excluded from the weighted average number of ordinary shares outstanding. Vested SARS issued to employees at award prices lower than the current share price, results in a potential dilutive impact on the weighted average number of issued ordinary shares and have been included in the calculation of dilutive weighted average number of issued ordinary shares. Vested SARS issued to employees at award prices higher than the current share price, were excluded from the calculation of diluted weighted average number of issued ordinary shares because their effect would have been anti-dilutive. Vested but unissued LTIP have been included in the calculation of dilutive weighted average number of issued ordinary shares.

  2018   2017  
Headline earnings for the year attributable to ordinary shareholders (US$’000) 49 134   57 799  
Weighted average number of issued ordinary shares for basic headline earnings per share (‘000) 260 329   257 393  
Weighted average number of issued ordinary shares for diluted headline earnings per share (‘000) 264 531   257 393  
Headline earnings per share        
Basic (US$ cents) 19   22  
Diluted (US$ cents) 19   22  
  2018   2017  
  Gross 
US$’000 		   Tax 
US$’000 		   Non-controlling 
interest 
US$’000 		   Net 
US$’000 		   Net 
US$’000 		  
Reconciliation of profit to headline earnings                    
Profit attributable to ordinary shareholders                    48 433     57 601    
Adjustments:                               
   Gain on bargain purchase  (1 884)    –     490     (1 394)    –    
   Impairment of property, plant and equipment  3 897     (1 091)    (730)    2 076     –    
   Impairment losses on goodwill  –           –     –     57    
   Loss on disposal of property, plant and equipment  36     (10)    (7)    19     141    
Headline earnings                    49 134     57 799