| 9. |
Inventories |
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Refined metals |
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Metal inventories are measured at the lower of cost, on the weighted average basis, or net realisable value. The cost per
ounce or tonne is determined as follows: |
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platinum, palladium, rhodium and nickel are treated as joint products and are measured by dividing the mine output into
total mine production cost, determined on a 12-month rolling average basis, less net revenue from sales of other metals,
in the ratio of the contribution of these metals to gross sales revenue; |
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gold, copper and cobalt sulphate are measured at net realisable value; and |
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iridium and ruthenium are measured at a nominal value of R1 per ounce. |
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Work-in-progress |
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Work-in-progress is valued at the average cost of production or purchase less net revenue from sales of other metals.
Production cost is allocated to joint products in the same way as is the case for refined metals. Work-in-progress includes
purchased and produced concentrate. |
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Stores and materials |
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Stores and materials consist of consumable stores and are valued at cost on the first-in first-out (FIFO) basis. Obsolete and
redundant items are written off to operating costs. |
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| 10. |
Revenue recognition |
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Revenue from the sale of metals and intermediary products is recognised when the risk and rewards of ownership are
transferred to the buyer. Gross sales revenue represents the invoiced amounts excluding value-added tax.
Dividends are recognised when the right to receive payment is established.
Interest is recognised on a time proportional basis, which takes into account the effective yield on the asset over the period
it is expected to be held.
Royalties are recognised when the right to receive payment is established. |
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| 11. |
Dividends declared |
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The liability for dividends and related taxation thereon is raised only when the dividend is declared. |
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| 12. |
Provisions |
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A provision is recognised when there is a legal or constructive obligation as a result of a past event for which it is probable
that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. |
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| 13. |
Taxation |
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The charge for current tax is based on the profit before tax for the year as adjusted for items, which are exempt or disallowed.
It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Current and deferred tax is charged or credited to the income statement, except when it relates to items credited or charged
directly to equity, in which case the taxation effect is also recognised within equity.
Deferred tax is provided on the balance sheet liability method.
Deferred tax assets and liabilities are measured using tax rates that are expected to apply to the period when the asset is
realised and the liability is settled.
Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the
extent that it is probable that taxable profits will be available against which deductible temporary differences or assessed or
calculated losses can be utilised. However, such assets or liabilities are not recognised if the temporary differences arise from
the initial recognition of goodwill or an asset or liability in a transaction (other than in a business combination) that affects
neither the taxable income nor the accounting profit.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis. |
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| 14. |
Research and exploration cost |
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Research expenditure is written off when incurred. Exploration expenditure is written off when incurred, except when it is
probable that a mining asset will be developed for commercial production as a result of the exploration work. In such cases,
the capitalised exploration expenditure is amortised on a UOP basis over the expected useful life of the constructed mining
asset.
Capitalised exploration expenditure is assessed for impairment when there are indicators that these assets might be impaired.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the
impairment (if any). Any impairment is recognised immediately in other net expenditure. When an impairment subsequently
reverses, the reversal is recognised in the income statement immediately. |
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| 15. |
Leased metal |
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When metal is leased to fulfil marketing commitments and the settlement is through physical delivery of metal, the market
value of the metal, at the inception date of the lease, is charged to the income statement as purchased metal cost and reflected
as a current liability in the balance sheet. On the maturity of the lease the liability is credited to purchased metal costs.
The leasing costs associated with borrowed metal are charged on a time proportional basis. |
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| 16. |
Financial instruments |
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A financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument
in another entity.
The Group's financial instruments consist primarily of the following financial assets: non-current receivables, cash and cash
equivalents, accounts receivable; and the following financial liabilities: borrowings, preference shares, accounts payable and
certain derivative instruments. |
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Fair value |
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Where financial instruments are recognised at fair value, the instruments are measured at the amount for which an asset
could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
Fair values have been determined as follows: |
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| • |
where market prices are available, these have been used; and |
| • |
where there are no market prices available, fair values have been determined using valuation techniques incorporating
observable market inputs or discounting expected cash flows at market rates. |
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The fair value of the accounts receivables, cash and cash equivalents and accounts payables approximates its carrying amount
due to the short maturity period of these instruments. |
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Effective interest method |
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The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of
allocating interest income or expense over the period of the instrument.
Effectively this method determines the rate that exactly discounts the estimated future cash payments or receipts through
the expected life of the financial instrument or, if appropriate, a shorter period, to the net carrying amount of the financial
asset or liability. |
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Financial assets |
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The Group classifies financial assets into the following categories: |
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| • |
at fair value through profit and loss (FVTPL); |
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loans and receivables; |
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held to maturity (HTM); and |
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available for sale (AFS). |
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The classification of the financial assets is dependent on the purpose and characteristics of the particular financial assets and
is determined at the date of initial recognition. Management will reassess the classification of financial assets on a biannual
basis. |
