Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --06-30 |
Entity Central Index Key | 1,023,512 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Registrant Name | DRDGOLD Ltd |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | No |
Entity Common Stock Shares Outstanding | 431,429,767 |
Trading Symbol | DRD |
CONSOLIDATED STATEMENT OF PROFI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Profit (loss) [abstract] | |||
Revenue | R 2,490,400,000 | R 2,339,900,000 | R 2,433,100,000 |
Cost of sales | (2,347,700,000) | (2,307,900,000) | (2,236,800,000) |
Gross profit from operating activities | 142,700,000 | 32,000,000 | 196,300,000 |
Other income | 0 | 12,900,000 | 10,500,000 |
Administration expenses and other costs | (90,700,000) | (69,400,000) | (87,200,000) |
Results from operating activities | 52,000,000 | (24,500,000) | 119,600,000 |
Finance income | 38,800,000 | 40,000,000 | 36,800,000 |
Finance expense | (58,400,000) | (52,200,000) | (47,600,000) |
Profit/(loss) before tax | 32,400,000 | (36,700,000) | 108,800,000 |
Income tax | (25,900,000) | 50,400,000 | (46,900,000) |
Profit for the year | 6,500,000 | 13,700,000 | 61,900,000 |
Items that will be reclassified subsequently to profit or loss, net | |||
Net fair value adjustment on available-for-sale investments | 600,000 | (300,000) | 4,400,000 |
Total other comprehensive income for the year | 600,000 | (300,000) | 4,400,000 |
Total comprehensive income for the year | R 7,100,000 | R 13,400,000 | R 66,300,000 |
Earnings per share | |||
Basic earnings per share (SA cents per share) | R 1.5 | R 3.2 | R 14.7 |
Diluted earnings per share (SA cents per share) | R 1.5 | R 3.2 | R 14.7 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ZAR (R) | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Non-current assets | R 1,734,100,000 | R 1,739,100,000 |
Property, plant and equipment | 1,452,700,000 | 1,497,600,000 |
Investments in rehabilitation obligation funds | 244,000,000 | 227,700,000 |
Financial assets | 28,700,000 | 8,800,000 |
Deferred tax asset | 8,700,000 | 5,000,000 |
Current assets | 626,300,000 | 548,300,000 |
Inventories | 233,000,000 | 180,300,000 |
Trade and other receivables | 91,200,000 | 114,300,000 |
Cash and cash equivalents | 302,100,000 | 253,700,000 |
TOTAL ASSETS | 2,360,400,000 | 2,287,400,000 |
Equity | ||
Equity | 1,267,300,000 | 1,302,400,000 |
Non-current liabilities | 772,400,000 | 728,000,000 |
Provision for environmental rehabilitation | 553,400,000 | 531,700,000 |
Deferred tax liability | 163,700,000 | 140,500,000 |
Employee benefits | 40,600,000 | 39,000,000 |
Finance lease obligation | 14,700,000 | 16,800,000 |
Current liabilities | 320,700,000 | 257,000,000 |
Trade and other payables | 303,300,000 | 251,800,000 |
Employee benefits | 13,200,000 | 0 |
Current tax Liability | 4,200,000 | 5,200,000 |
TOTAL LIABILITIES | 1,093,100,000 | 985,000,000 |
TOTAL EQUITY AND LIABILITIES | R 2,360,400,000 | R 2,287,400,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ZAR (R) | Total | Share capital [member] | Other reserves [member] | Retained earnings [member] |
Beginning balance at Jun. 30, 2015 | R 1,529,900,000 | R 4,181,400,000 | R 135,800,000 | R (2,787,300,000) |
Total comprehensive income [abstract] | ||||
Profit for the year | 61,900,000 | 61,900,000 | ||
Other comprehensive income | 4,400,000 | 4,400,000 | 0 | |
Transactions with owners of parent [abstract] | ||||
Dividend on ordinary share capital | (252,900,000) | (252,900,000) | ||
Shares issued for cash | 2,800,000 | |||
Treasury shares acquired through subsidiary | (6,500,000) | (6,500,000) | ||
Ending balance at Jun. 30, 2016 | 1,339,600,000 | 4,177,700,000 | 140,200,000 | (2,978,300,000) |
Total comprehensive income [abstract] | ||||
Profit for the year | 13,700,000 | 13,700,000 | ||
Other comprehensive income | (300,000) | (300,000) | ||
Transactions with owners of parent [abstract] | ||||
Dividend on ordinary share capital | (50,600,000) | (50,600,000) | ||
Shares issued for cash | 0 | |||
Changes in other reserves | (140,200,000) | 140,200,000 | ||
Ending balance at Jun. 30, 2017 | 1,302,400,000 | 4,177,700,000 | 0 | (2,875,300,000) |
Total comprehensive income [abstract] | ||||
Profit for the year | 6,500,000 | 6,500,000 | ||
Other comprehensive income | 600,000 | 600,000 | ||
Transactions with owners of parent [abstract] | ||||
Dividend on ordinary share capital | (42,200,000) | (42,200,000) | ||
Shares issued for cash | 0 | |||
Ending balance at Jun. 30, 2018 | R 1,267,300,000 | R 4,177,700,000 | R 0 | R (2,910,400,000) |
CONSOLIDATED STATEMENT OF CASHF
CONSOLIDATED STATEMENT OF CASHFLOWS - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash generated by operations | R 222,900,000 | R 21,500,000 | R 398,200,000 |
Finance income received | 21,900,000 | 23,800,000 | 22,300,000 |
Finance expenses paid | (3,500,000) | (3,700,000) | (5,000,000) |
Income tax (paid)/received | (7,500,000) | 10,000,000 | 400,000 |
Net cash inflow from operating activities | 233,800,000 | 51,600,000 | 415,900,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (125,900,000) | (110,600,000) | (99,800,000) |
Proceeds on disposal of property, plant and equipment | 7,000,000 | 20,500,000 | 7,000,000 |
Environmental rehabilitation payments | (21,500,000) | (11,600,000) | (10,600,000) |
Other | 0 | 5,000,000 | (3,800,000) |
Net cash outflow from investing activities | (140,400,000) | (96,700,000) | (107,200,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of loans and borrowings | 0 | 0 | (22,500,000) |
Repayment of finance lease obligation | (2,800,000) | (2,400,000) | (2,000,000) |
Dividends paid on ordinary share capital | (42,200,000) | (50,600,000) | (252,900,000) |
Proceeds from the issue of shares | 0 | 0 | 2,800,000 |
Acquisition of treasury shares | 0 | 0 | 6,500,000 |
Net cash outflow from financing activities | (45,000,000) | (53,000,000) | (281,100,000) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 48,400,000 | (98,100,000) | 27,600,000 |
Cash and cash equivalents at the beginning of the year | 253,700,000 | 351,800,000 | 324,400,000 |
Foreign exchange movements | 0 | 0 | (200,000) |
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | R 302,100,000 | R 253,700,000 | R 351,800,000 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting policies [abstract] | |
Disclosure of significant accounting policies [text block] | 1 ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS Reporting entity The DRDGOLD Group is primarily involved in the retreatment of surface gold. The consolidated financial statements comprise the C ompany and its subsidiaries who are all wholly owned subsidiaries and solely operates in South Africa (collectively the “Group” and individually “Group Companies”). DRDGOLD Limited is domiciled in South Africa with a registration number of 1895/000926/06. The registered address of the company is 1 Sixty Jan Smuts Building, 2nd Floor - North Tower, 160 Jan Smuts Avenue, Rosebank, 21 96. Basis of accounting The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) . The consolidated financial statements were approved by the board of directors on October 24, 2018 . Functional and presentation currency The Group's functional and reporting currency is South African rand. The amounts in these consolidated financ ial statements are rounded to the nearest million unless stated otherwise. Significant exchange rates applied during the year are set out in the table below: South African rand / US dollar 2018 2017 2016 Spot rate at year end 13.72 13.05 14.68 Average rate for the financial year 12.85 13.59 14.5 Basis of measurement The consolidated financial statements are prepared on the historical cost basis, unless otherwise stated. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Transactions eliminated on co nsolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. 2 USE OF ACCOUNTING ASSUMPTIONS, ESTIMATES AND JUDGEMENTS The preparation of the consolidated financial statements requires management to make accounting assumptions, estimates and judgements that affect the application of the Group's accounting policies and reported amounts of assets and liabilities, income and expenses. Accounting assumptions, estimates and judgements are reviewed on an ongoing basis. Revisions to reported amounts are recognised in the period in which the revision is made and in any future periods affected. Actual results may differ from these estimates. Information about assumptions and estimates in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 9 PROPERTY, PLANT AND EQUIPMENT NOTE 10 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 17 INCOME TAX NOTE 24 .2 LONG-TERM RECEIVABLE Information about significant judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE NOTE 24 .2 LONG-TERM RECEIVABLE NOTE 25 CONTINGENT ASSETS AND LIABILITIES 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT YET ADOPTED At the date of authorisation of these consolidated financial statements, the following relevant standards, amendments to standards and interpretations that may be applicable to the business of the Group were in issue but not yet effective and may therefore have an impact on future co nsolidated financial statements. These new standards, amendments to standards and interpretations will be adopted at their effective dates. IFRS 2 Share-based payment amendments (Effective date 1 July 2018) Measurement of cash-settled share-based payments – There is currently no guidance in IFRS 2 on how to measure the fair value of the liability in a cash-settled share based payment. The amendments clarify that a cash-settled share-based payment is measured using the same approach as for equity-settled sha re-based payments – i.e. the modified grant date method. Therefore, in measuring the liability, market and non-vesting conditions are taken into account in measuring its fair value and the number of awards to receive cash is adjusted to reflect the best es timate of those expected to vest as a result of satisfying service and any non-market performance conditions. The Group has assessed that the amendment to IFRS 2 will not have a significant impact on the Group as market and non-vesting conditions are being taken into account in measuring its fair value and the number of awards to receive cash is already adjusted to reflect the best estimate of those expected to vest as a result of satisfying service and any non-market performance conditions. IFRS 9 Financia l Instruments (Effective date 1 July 2018) The standard sets out requirements for recognising and measuring financial instruments and super s edes IAS 39 Financial Instruments . It contains new criteria for determining the classification of financial instruments which is based on the business model of the entity and the nature of cash flows. In addition, the financial instruments impairment model has been changed from an “incurr ed loss” model in IAS 39 to an “expected credit loss” model in IFRS 9. The resultant effect being that it will no longer be necessary for a loss event to occur before an impairment loss is recognised. The G roup has assessed that the following changes will occur as a result: • The new classification if applied at 30 June 2018 would not have a significant impact on the accounting of financial assets and financial liabilities. Investment in other entities (equity instruments) will be designated at fair value through other comprehensive income; and • The method of determining impairment of long - term and other receivables will have to change to reflect the “expected credit loss” model. Management has made an assessment of the magnitude of the changes to the impa irment model. This is not expected to have a significant impact. IFRS 15 Revenue from contracts with customers (Effective date 1 July 2018) The standard contains a single model that applies to contracts with customers superseding the revenue standard IAS 18 Revenue and IAS 11 Construction contracts . It contains two approaches to recognising revenue: at a point in time or over time. The model f eatures a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. The standard also introduces new qualitative and quantitative disclosures related to customer contracts and significant judgements ap plied. The G roup has assessed that there will be no impact on adopting IFRS 15, and revenue recognition will remain unchanged as follows: • Rand Refinery is assessed as being an agent, selling gold and silver on behalf of the Group; • Revenue is recognised on the date that control of gold and silver pass to the buyer , which is the date on which Rand Refinery sells the gold on the Group ’s behal f. • This is the same date as when significant risks and rewards passes under IAS 18 Revenue . IFRS 16 Leases (Effective date 1 July 2019) The standard sets out the principles for recognition, measurement, presentation and disclosure of leases for both par ties to a contract, i.e the customer (“lessee”) and the supplier (“lessor”). The standard supersedes the current leases standard IAS 17 Leases. The standard has one model for lessees which contains increased focus on the assessment of whether a transaction is a lease. Lessees will now recognise most leases on the statement of financial position. No significant changes have been included for lessors. The G roup has commenced with analysing each contract included in the register of contracts compiled by the procurement department in order to assess whether these contain a lease and the impact that the standard will have on the Group . 4 REVENUE ACCOUNTING POLICIES Revenue comprise the sale of gold bullion and silver bullion (produced as a by-product). Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue can be reliably measured. Revenue is stated at the fair value of the consideration received or receivable, which is based on the afternoon London Bul lion Market fixing price on the date the significant risks and rewards of ownership have been transferred to the buyer. The significant risks and rewards of ownership transfer to the buyer when Rand Refinery Limited (“Rand Refinery“), acting as an agent f or the sale of all gold produced by the Group, delivers the gold to the buyer and the sales price is fixed, as evidenced by the certificate of sale. 5 .2 OTHER INCOME ACCOUNTING POLICIES Income is recognised where it is probable that the economic benefits associated with a transaction will flow to the Group and they can be reliably measured. Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include gains or losses on disposal of property, plant and equipment. 6 FINANCE INCOME ACCOUNTING POLICY Finance income includes interest received , growth in the environmental rehabilitation obligation funds and the unwinding of the long-term receivable . 7 FINANCE EXPENSE ACCOUNTING POLICY Finance expenses comprise interest payable on financial instruments measured at amortised cost calculated using the effective interest method, unwinding of the provision for environmental rehabilitation , interest on finance leases and the fair value adjustment on the initial recognition of the long-term receivable . 9 PROPERTY, PLANT AND EQUIPMENT SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Impairment of property, plant and equipment The recoverable amount of the cash-generating-unit is determined using discounted future cash flows based on the life-of-mine plan. These calculations require the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include the market capitalisation of the Group, mineral reserves and resource estimates, production estimates, spot and future gold prices, foreign currency exchange rates, discount rates, estimates of costs to prod uce and future capital expenditure in determining the recoverable amount. At year-end, the market capitalisation of the Group was higher than its net asset value. The decline in the rand gold price was however considered as an impairment indicator. The G roup has only one cash generating unit ("CGU") and calculated a recoverable amount based on updated life-of-mine plans, a n average gold price of R 5 50 411 per kilogram in year one escalating at an average of approximately 5. 8 % a year over the twelve-year li fe of mine, and a weighted average cost of capital of 1 1 . 2 % . Sensitivity analysis The Group would begin impairment of the mining assets if the discount rate were to increase from 1 1 . 2 % to 2 1 . 4 %, or a 4 .1 % decrease in budgeted gold production or the rand go ld price over the remaining life of the operation. The above sensitivities do not include a positive terminal value, relating to the disposal of any assets at the end of the useful life . Depreciation The calculation of the units-of-production rate of depreciation could be affected if actual production in the future varies significantly from current forecast production. This would generally arise when there are significant changes in any of the factors or assumptions used in estimating mineral reserves and resources. These factors could include: • changes in mineral reserves and resources; • the grade of mineral reserves and resources may vary from time to time; • differences between actual commodity pr ices and commodity price assumptions; • unforeseen operational issues at mine sites including planned extraction efficiencies; and • changes in capital, operating, mining processing and reclamation costs, discount rates and foreign exchange rates . Mineral reserves and resources estimates The Group is required to determine and report mineral reserves and resources in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). In orde r to calculate mineral reserves and resources, estimates and assumptions are required about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, tra nsport costs, commodity demand, commodity prices and exchange rates. Estimating the quantity and/or grade of mineral reserves and resources requires the size, shape and depth of reclamation sites to be determined by analysing geological data such as the l ogging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data. Because the assumptions used to estimate mineral reserves and resources change from period to period and bec ause additional geological data is generated during the course of operations, estimates of mineral reserves and resources may change from period to period. Mineral reserves and resource estimates prepared by management are reviewed by an independent miner al resources expert. Changes in reported mineral reserves and resources may affect the Group’s life-of-mine plan, financial results and financial position in a number of ways including the following: • asset carrying values may be affected due to changes in estimated future cash flows; • depreciation charged to profit or loss may change where such charges are determined by the units-of-production method, or where the useful lives of assets change; • decommissioning, site restoration and environment al provisions may change where changes in estimated mineral reserves and resources affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of t he likely recovery of the tax benefits and charges. 9 PROPERTY, PLANT AND EQUIPMENT continued ACCOUNTING POLICIES Recognition and measurement Property, plant and equipment comprise mine plant facilities and equipment, mine property and development (including mineral rights) and exploration assets. These assets (excluding exploration assets) are initially measured at cost, where after they are measured at cost less accumulated depreciation and accumulated impairment losses. Exploration assets are initially measured at cost, where after they are measured at cost less impairment losses . Cost includes expenditure that is directly attributable to the acquisition or construction of the asset, as well as the costs of dismantling and removing an asset and restoring the site o n which it is located. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of th e item can be measured reliably. Exploration and evaluation costs are capitalised as exploration assets on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. Depreciation Depreciation of mine plant facilities and equipment, as well as mining property and development (including mineral rights) are calculated using the units of production method which is based on the life-of-mine of each site. The life-of-mine is primarily based on proved an d probable mineral reserves and may include some resources. It reflects the estimated quantities of economically recoverable gold that can be recovered from reclamation sites based on the gold price estimated at the end of the financial year. Changes in th e life-of-mine will impact depreciation on a prospective basis. The life-of-mine is prepared using a methodology that takes account of current information to assess the economically recoverable gold from specific reclamation sites and includes the consider ation of historical experience. The depreciation method , estimated useful lives and residual values are reassessed annually and adjusted if appropriate. Any changes to useful lives may affect prospective depreciation rates and asset carrying values. The cu rrent estimated useful lives for mine property and development, as well as mine plant facilities and equipment are based on the life-of-mine of each site, currently between four (2017: two ; 2016: six ) and 12 (2017: 1 2; 2016: 10 ) years . Impairment Non-finan cial assets The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. I f any such indication exists, the asset’s recoverable amount is estimated. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Each metallurgical plant or combinat ion of plants that, together with its deposition facility, is capable of operating independently is considered to be a CGU . The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing val ue in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized in prof it or loss if the carrying amount of an asset or CGU exceeds its recoverable amount . Exploration assets Exploration assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the recoverable amount. When a licens e is relinquished or a project is abandoned, the related costs are recognised in profit or loss immediately. Leased assets Upon initial recognition, the leased asset are measured at amounts equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in the same manner as owned property, plant and equipment. Finance lease payments Minimum lease payments are apportioned between the finance charge a nd the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. 10 PROVISION FOR ENVIRONMENTAL REHABILITATION SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Estimates of future environmental rehabilitation costs are determined with the assistance of an independent expert and are based on the Group’s environmental management plans which are developed in accordance with regulatory requirements, the life-of-mine plan and the planned method of rehabilitation which is influenced by developments in trends and technology. An average discount rate of 8. 5 % (2017: 8.8 %), average inflation rate of 5. 7 % (2017: 5.9 %) and the discount periods as per the expected life-of-min e were used in the calculation of the estimated net present value of the rehabilitation liability . ACCOUNTING POLICIES The net present value of the estimated rehabilitation cost as at reporting date is provided for in full. These estimates are reviewed ann ually and are discounted using a pre-tax risk-free rate that is adjusted to reflect the current market assessments of the time value of money and the risks specific to the obligation. Annual changes in the provision consist of financing expenses relating to the change in the present value of the provision and inflationary increases in the provision, as well as changes in estimates. The present value of dismantling and removing the asset created before production commenced (decommissioning liabilities) are capitalised to property, plant and equipment against an increase in the rehabilitation provision. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised in profit or loss. If the asset value is increased and ther e is an indication that the revised carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy dealing with impairments of property, plant and equipment. Over time, the liability is increased to reflect an i nterest element, and the capitalised cost is depreciated over the life of the related asset. Cash costs incurred to rehabilitate these disturbances are charged to the provision and are presented as investing activities in the statement of cash flows. The present value of environmental rehabilitation costs relating to activities after production commenced (restoration liabilities) as well as changes therein are expensed as incurred and presented as operating costs. Cash costs incurred to rehabilitate these disturbances are presented as operating activities in the statement of cash flows.The cost of ongoing rehabilitation is recognised in profit or loss as incurred . 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trust funds Cash and cash equivalents in environmental rehabilitation trust funds comprise low-risk, interest-bearing cash and cash equivalents and are non-derivative financial assets categorised as loans and receivables. Reimbursive right for environmental rehabilitation guarantees Funds held in the cell captive that secure the environmental re habilitation guarantees issued are recognised as a right to receive a reimbursement and is measured at the lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. 12 CASH AND CASH EQUIVALENTS ACCOUNTING POLICIES Cash and cash equivalents are non-derivative financial assets categorised as loans and receivables and comprise cash on hand, demand deposits, and highly liquid investments which are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash and cash equivalents are initially measu red at fair value. Subsequent to initial recognition, cash and cash equivalents are measured at amortised cost, which is equivalent to their fair value. 14 TRADE AND OTHER RECEIVABLES ACCOUNTING POLICIES Trade and other receivables, excluding Value Added Tax and prepayments , are non-derivative financial assets categorised as loans and receivables. These assets are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method less any impairment losses . The Group derecognises a financial asset when the co ntractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neith er transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability. Impairment A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of a debtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Any impairment losses are recognise d in the statement of profit or loss. 15 TRADE AND OTHER PAYABLES ACCOUNTING POLICIES Trade and other payables, excluding payroll accruals, accrued leave pay and provision for performance based incentives, are non-derivative financial liabilities categorised as financial liabilities measured at amortised cost. These liabilities are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest m ethod. The Group derecognises a financial liability when its contractual rights are discharged, or cancelled or expire. Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be pa id if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. 16 INVENTORIES ACCOUNTING POLICIES Gold in process is stated at the lower of cost and net realisable value. Costs are assigned to gold in process on a weighted average cost basis. Costs comprise all costs incurred to the stage immediately prior to smelting, including costs of extraction and processing as they are reliably measurable at that point. Gold b ullion is stated at the lower of cost and net realisable value. Selling and general administration costs are excluded from inventory valuation. Consumable stores are stated at cost less allowances for obsolescence. Cost of consumables is based on the weigh ted average cost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cos t of completion and selling expenses . 17 INCOME TAX SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Management periodically evaluates positions taken where tax regulations are subject to interpretation. This includes the treatment of Ergo as a single mining operation pursuant to the relevant ring-fencing legislation. The deferred tax liability is calcula ted by applying a forecast weighted average tax rate that is based on a prescribed formula. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include expected future profitability and timing of the reversal of the temporary differences. Due to the forecast weighted average tax rate being based on a prescribed formula that increases the effective tax rate w ith an increase in forecast future profitability, and vice versa , the tax rate can vary significantly year on year and can move contrary to current period financial performance. A 100 basis points increase in the effective tax rate will result in an increa se in the net deferred tax liability at June 30, 2018 of approximately R 8 . 0 million (2017: R7. 4 million; 2016: R8.1 million). The assessment of the probability that future taxable profits will be available against which the tax losses and unredeemed capita l expenditure can be utilised requires the use of assumptions and estimates and are inherently uncertain and could change materially over time. C apital expenditure is assessed by the South African Receiver of Revenue when it is redeemed against taxable min ing income rather than when it is incurred. A different interpretation by the South African Receiver of Revenue regarding the deductibility of these capital allowances may therefore become evident subsequent to the year of assessment when the capital expen diture is incurred. ACCOUNTING POLICIES Income tax expense comprises current and deferred tax. Each company is taxed as a separate entity and tax is not set-off between the companies. Current tax Current tax comprise the expected tax payable or receivable on the taxable income or loss for the year and any adjustment on tax payable or receivable in respect of the previous year is recognised in profit or loss except to the extent that it relates to items recogni sed directly in equity or OCI. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date . Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amoun ts and the tax bases of assets and liabilities. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit. Deferred tax asse ts relating to unutilised tax losses and unutilised capital allowances are recognised to the extent that it is probable that future taxable profits will be available against which the unutilised tax losses and unutilised capital allowances can be utilised. The recoverability of these assets is reviewed at each reporting date and adjusted if recovery is no longer probable. Deferred tax related to gold mining income is measured at a forecast weighted average tax rate that is expected to be applied to temporar y differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. 18 EMPLOYEE BENEFITS ACCOUNTING POLICIES Cash-settled share-based payments (“Long-Term Incentive” or “LTI”) Cash-settled share-based payments are measured at fair value and remeasured at each reporting date to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment in profit or loss. Vesting assumptions for non-ma rket conditions are reviewed at each reporting date to ensure they reflect current expectations. Post-retirement medical benefit The Group's net obligation in respect of long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine the present value. Remeasurements are recognised in profit or loss in the period in which they arise. 20 EQUITY ACCOUNTING POLICIES Ordinary share capital Ordinary shares and the cumulative preference shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effect. Repurchase and reissue of ordinary shares (treasury shares) When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from share capital. Dividends Dividends are recognised as a liability on the date on which they are declared which is the date when the share holders’ right to the dividends vest. 21 OPERATING SEGMENTS ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (CODM) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational str ucture and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants that, together with its deposition facility, is capable of operating independently. When assessing profitability, the CODM considers , inter alia , the revenue and production costs of each segment. The net of these amounts is the operating profit or loss. Therefore, operating profit has been disclosed in the segment report as the primary measure of profit or loss. The CODM also considered other costs that, in addition to the operating profit or loss, result in the working profit or loss. 22 INTEREST IN SUBSIDIARIES ACCOUNTING POLICIES Significant subsidiaries of the Group are those subsidiaries with the most significant contribution to the Group's profit or loss or assets. 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
Disclosure Of Revenue Explanatory | 4 REVENUE ACCOUNTING POLICIES Revenue comprise the sale of gold bullion and silver bullion (produced as a by-product). Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue can be reliably measured. Revenue is stated at the fair value of the consideration received or receivable, which is based on the afternoon London Bul lion Market fixing price on the date the significant risks and rewards of ownership have been transferred to the buyer. The significant risks and rewards of ownership transfer to the buyer when Rand Refinery Limited (“Rand Refinery“), acting as an agent f or the sale of all gold produced by the Group, delivers the gold to the buyer and the sales price is fixed, as evidenced by the certificate of sale. Rand Refinery performs the final refinement of all gold produced. In exchange for this service, Rand Refin ery receives a variable refining fee plus fixed marketing and administration fees which is included in operating costs . Amounts in R million 2018 2017 2016 Gold revenue 2 486.4 2 336.1 2 429.7 Silver revenue 4.0 3.8 3.4 Total revenue 2 490.4 2 339.9 2 433.1 MARKET RISK Commodity price sensitivity Combined impact of both US Dollar price of gold and South African Rand/US Dollar exchange rate The Group's profitability and the cash flows are primarily affected by changes in the market price of gold which is sold in US Dollar and then converted to Rand. The Group d id not enter into forward sales of gold production, derivatives or other hedging arrangements to establish a price in advance for the sale of future gold production during the year . A change of 10 % in the average Rand gold price received during the financial year would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables remain constant and specifically excludes the impact on income tax . Amounts in R million 2018 2017 2016 10% increase in the Rand gold price 249.0 234.0 243.3 10% decrease in the Rand gold price (249.0) (234.0) (243.3) Price protection policy After June 30, 2018 the Board approved Rand gold price protection to manage the short-term liquidity risk that will arise from the anticipated increase in borrowings to finance the development of Phase 1 of FWGR (refer to notes 19 and 28 ). |
RESULTS FROM OPERATING ACTIVITI
RESULTS FROM OPERATING ACTIVITIES | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Operating Activities [Abstract] | |
Disclosure of profit (loss) from operating activities [text block] | 5 RESULTS FROM OPERATING ACTIVITIES 5.1 COST OF SALES Amounts in R million Note 2018 2017 2016 Cost of sales (2 347.7) (2 307.9) (2 236.8) Operating costs (a) (2 207.1) (2 109.3) (2 030.2) Movement in gold in process and finished stock 24.5 4.8 (7.1) Depreciation 9 (168.0) (179.8) (180.2) Change in estimate of environmental rehabilitation 10 2.9 (0.6) (19.3) Retrenchment costs - (23.0) - (a) Operating costs The most significant components of operating costs include: Materials (784.6) (783.9) (719.5) Labour including short term incentives, excluding retrenchment costs (417.4) (351.0) (362.1) Electricity (369.0) (344.2) (325.4) Specialist service providers (326.9) (299.7) (282.4) Water (49.9) (71.1) (82.1) 5 .2 OTHER INCOME ACCOUNTING POLICIES Income is recognised where it is probable that the economic benefits associated with a transaction will flow to the Group and they can be reliably measured. Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include gains or losses on disposal of property, plant and equipment. Amounts in R million 2018 2017 2016 Profit on disposal of property, plant and equipment - 12.9 10.5 - 12.9 10.5 5.3 ADMINISTRATION EXPENSES AND OTHER COSTS Amounts in R million Note 2018 2017 2016 Included in administration expenses and other costs is the following: Increase in Long-Term Incentive ("LTI") liability 18.1 (17.2) (10.0) (29.9) Transactions costs incurred related to the acquisition of FWGR 28 (9.0) - - Loss on disposal of property, plant and equipment (0.6) - - |
FINANCE INCOME
FINANCE INCOME | 12 Months Ended |
Jun. 30, 2018 | |
Analysis Of Income And Expense [Abstract] | |
Disclosure Of Finance Income Explanatory | 6 FINANCE INCOME ACCOUNTING POLICY Finance income includes interest received , growth in the environmental rehabilitation obligation funds and the unwinding of the long-term receivable . Amounts in R million Note 2018 2017 2016 Interest on loans and receivables 12 21.8 23.6 22.3 Growth in environmental rehabilitation trust funds 11, 23 7.5 7.5 6.5 Growth in reimbursive right 11 8.8 8.9 8.0 Unwinding of long-term receivable 24.2 0.7 - - 38.8 40.0 36.8 |
FINANCE EXPENSE
FINANCE EXPENSE | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of finance expense [abstract] | |
Disclosure Of Expenses Explanatory | 7 FINANCE EXPENSE ACCOUNTING POLICY Finance expenses comprise interest payable on financial instruments measured at amortised cost calculated using the effective interest method, unwinding of the provision for environmental rehabilitation , interest on finance leases and the fair value adjustment on the initial recognition of the long- term receivable . Amounts in R million Note 2018 2017 Unwinding of provision for environmental rehabilitation 10, 23 (45.6) (46.5) Fair value adjustment on initial recognition of long-term receivable 24.2 (8.8) - Other finance expenses (4.0) (5.7) (58.4) (52.2) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Disclosure Of Earnings Per Share Explanatory | 8 EARNINGS PER SHARE Amounts in R million 2018 2017 2016 Basic earnings The calculation of earnings per ordinary share is based on the following: Profit for the year 6.5 13.7 61.9 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Number of shares 2018 2017 2016 Weighted average number of ordinary shares in issue 422 068 696 422 068 696 422 157 987 Number of staff options - - 34 075 Diluted weighted average number of ordinary shares 422 068 696 422 068 696 422 192 062 SA cents per share 2018 2017 2016 Basic earnings per share 1.5 3.2 14.7 Diluted earnings per share 1.5 3.2 14.7 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | 9 PROPERTY, PLANT AND EQUIPMENT SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Impairment of property, plant and equipment The recoverable amount of the cash-generating-unit is determined using discounted future cash flows based on the life-of-mine plan. These calculations require the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include the market capitalisation of the Group, mineral reserves and resource estimates, production estimates, spot and future gold prices, foreign currency exchange rates, discount rates, estimates of costs to prod uce and future capital expenditure in determining the recoverable amount. At year-end, the market capitalisation of the Group was higher than its net asset value. The decline in the rand gold price was however considered as an impairment indicator. The G roup has only one cash generating unit ("CGU") and calculated a recoverable amount based on updated life-of-mine plans, a n average gold price of R 5 50 411 per kilogram in year one escalating at an average of approximately 5. 8 % a year over the twelve-year li fe of mine, and a weighted average cost of capital of 1 1 . 2 % . Sensitivity analysis The Group would begin impairment of the mining assets if the discount rate were to increase from 1 1 . 2 % to 2 1 . 4 %, or a 4 .1 % decrease in budgeted gold production or the rand go ld price over the remaining life of the operation. The above sensitivities do not include a positive terminal value, relating to the disposal of any assets at the end of the useful life . Depreciation The calculation of the units-of-production rate of depreciation could be affected if actual production in the future varies significantly from current forecast production. This would generally arise when there are significant changes in any of the factors or assumptions used in estimating mineral reserves and resources. These factors could include: • changes in mineral reserves and resources; • the grade of mineral reserves and resources may vary from time to time; • differences between actual commodity pr ices and commodity price assumptions; • unforeseen operational issues at mine sites including planned extraction efficiencies; and • changes in capital, operating, mining processing and reclamation costs, discount rates and foreign exchange rates . Mineral reserves and resources estimates The Group is required to determine and report mineral reserves and resources in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). In orde r to calculate mineral reserves and resources, estimates and assumptions are required about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, tra nsport costs, commodity demand, commodity prices and exchange rates. Estimating the quantity and/or grade of mineral reserves and resources requires the size, shape and depth of reclamation sites to be determined by analysing geological data such as the l ogging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data. Because the assumptions used to estimate mineral reserves and resources change from period to period and bec ause additional geological data is generated during the course of operations, estimates of mineral reserves and resources may change from period to period. Mineral reserves and resource estimates prepared by management are reviewed by an independent miner al resources expert. Changes in reported mineral reserves and resources may affect the Group’s life-of-mine plan, financial results and financial position in a number of ways including the following: • asset carrying values may be affected due to changes in estimated future cash flows; • depreciation charged to profit or loss may change where such charges are determined by the units-of-production method, or where the useful lives of assets change; • decommissioning, site restoration and environment al provisions may change where changes in estimated mineral reserves and resources affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of t he likely recovery of the tax benefits and charges. 9 PROPERTY, PLANT AND EQUIPMENT continued ACCOUNTING POLICIES Recognition and measurement Property, plant and equipment comprise mine plant facilities and equipment, mine property and development (including mineral rights) and exploration assets. These assets (excluding exploration assets) are initially measured at cost, where after they are measured at cost less accumulated depreciation and accumulated impairment losses. Exploration assets are initially measured at cost, where after they are measured at cost less impairment losses . Cost includes expenditure that is directly attributable to the acquisition or construction of the asset, as well as the costs of dismantling and removing an asset and restoring the site o n which it is located. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of th e item can be measured reliably. Exploration and evaluation costs are capitalised as exploration assets on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. Depreciation Depreciation of mine plant facilities and equipment, as well as mining property and development (including mineral rights) are calculated using the units of production method which is based on the life-of-mine of each site. The life-of-mine is primarily based on proved an d probable mineral reserves and may include some resources. It reflects the estimated quantities of economically recoverable gold that can be recovered from reclamation sites based on the gold price estimated at the end of the financial year. Changes in th e life-of-mine will impact depreciation on a prospective basis. The life-of-mine is prepared using a methodology that takes account of current information to assess the economically recoverable gold from specific reclamation sites and includes the consider ation of historical experience. The depreciation method , estimated useful lives and residual values are reassessed annually and adjusted if appropriate. Any changes to useful lives may affect prospective depreciation rates and asset carrying values. The cu rrent estimated useful lives for mine property and development, as well as mine plant facilities and equipment are based on the life-of-mine of each site, currently between four (2017: two ; 2016: six ) and 12 (2017: 1 2; 2016: 10 ) years . Impairment Non-finan cial assets The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. I f any such indication exists, the asset’s recoverable amount is estimated. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Each metallurgical plant or combinat ion of plants that, together with its deposition facility, is capable of operating independently is considered to be a CGU . The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing val ue in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized in prof it or loss if the carrying amount of an asset or CGU exceeds its recoverable amount . Exploration assets Exploration assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the recoverable amount. When a licens e is relinquished or a project is abandoned, the related costs are recognised in profit or loss immediately. Leased assets Upon initial recognition, the leased asset are measured at amounts equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in the same manner as owned property, plant and equipment. Finance lease payments Minimum lease payments are apportioned between the finance charge a nd the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. 9 PROPERTY, PLANT AND EQUIPMENT continued Amounts in R million Note Mine plant facilities and equipment (a) Mine property and development Exploration assets Total 30 June 2018 Cost 1 689.5 1 264.5 77.3 3 031.3 Opening balance 1 667.6 1 230.0 77.4 2 975.0 Additions 82.5 40.2 3.4 126.1 Disposals (56.3) (17.4) - (73.7) Change in estimate of decommissioning asset 10 (4.3) 11.7 (3.5) 3.9 Accumulated depreciation and impairment (815.4) (753.5) (9.7) (1 578.6) Opening balance (760.8) (706.9) (9.7) (1 477.4) Depreciation 5.1 (104.3) (63.7) - (168.0) Disposals 49.7 17.1 - 66.8 Carrying value 874.1 511.0 67.6 1 452.7 30 June 2017 Cost 1 667.6 1 230.0 77.4 2 975.0 Opening balance 1 519.5 1 310.4 74.9 2 904.8 Additions 37.6 65.3 13.4 116.3 Disposals (2.8) (3.9) - (6.7) Change in estimate of decommissioning asset 10 27.0 (60.9) (0.5) (34.4) Transfers between classes of property, plant and equipment 92.1 (81.7) (10.4) - Transferred from non-current assets held for sale 23 - 0.8 - 0.8 Transferred to inventory (5.8) - - (5.8) Accumulated depreciation and impairment (760.8) (706.9) (9.7) (1 477.4) Opening balance (598.7) (693.2) (12.4) (1 304.3) Depreciation 5.1 (108.7) (71.1) - (179.8) Disposals 2.8 3.9 - 6.7 Transfers between classes of property, plant and equipment (56.2) 53.5 2.7 - Carrying value 906.8 523.1 67.7 1 497.6 (a) Leased plant and equipment Ergo leases temporary power generation equipment with a carrying value of R 13.6 million ( 2017 : R 16.8 million) from Aggreko Energy Rental Proprietary Limited under a finance lease with an outstanding balance of R 14.0 million ( 2017 : R 16.8 million) which is included in the consolidated finance lease obligation of R 14.7 milli on (2017: R 16.8 million) . The finance lease has an effective interest rate of 17.9 % and is repayable R 3.2 million in 2019 and R 10.8 million in 2020, the latter including R 9.9 million for the option to acquire the leased equipment at the end of the lease term. Interest is payable R 2.0 million in 2019 and R 0.4 million in 2020 . CONTRACTUAL COMMITMENTS Amounts in R million 2018 2017 Contracted for but not provided for in the consolidated financial statements 32.7 11.2 The contractual commitments at June 30, 2018 includes orders placed amounting to R29.2 million related to the development of phase 1 of FWGR. Capital expenditure is financed from existing cash resources and cash generated from operations, with the exception of specific growth projects for which the capital requirements are considered on a project-by-project basis. |
PROVISION FOR ENVIRONMENTAL REH
PROVISION FOR ENVIRONMENTAL REHABILITATION | 12 Months Ended |
Jun. 30, 2018 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Disclosure of provision for decommissioning restoration and rehabilitation costs [text block] | 10 PROVISION FOR ENVIRONMENTAL REHABILITATION SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Estimates of future environmental rehabilitation costs are determined with the assistance of an independent expert and are based on the Group’s environmental management plans which are developed in accordance with regulatory requirements, the life-of-mine plan and the planned method of rehabilitation which is influenced by developments in trends and technology. An average discount rate of 8. 5 % (2017: 8.8 %), average inflation rate of 5. 7 % (2017: 5.9 %) and the discount periods as per the expected life-of-min e were used in the calculation of the estimated net present value of the rehabilitation liability . ACCOUNTING POLICIES The net present value of the estimated rehabilitation cost as at reporting date is provided for in full. These estimates are reviewed ann ually and are discounted using a pre-tax risk-free rate that is adjusted to reflect the current market assessments of the time value of money and the risks specific to the obligation. Annual changes in the provision consist of financing expenses relating to the change in the present value of the provision and inflationary increases in the provision, as well as changes in estimates. The present value of dismantling and removing the asset created before production commenced (decommissioning liabilities) are capitalised to property, plant and equipment against an increase in the rehabilitation provision. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised in profit or loss. If the asset value is increased and ther e is an indication that the revised carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy dealing with impairments of property, plant and equipment. Over time, the liability is increased to reflect an i nterest element, and the capitalised cost is depreciated over the life of the related asset. Cash costs incurred to rehabilitate these disturbances are charged to the provision and are presented as investing activities in the statement of cash flows. The present value of environmental rehabilitation costs relating to activities after production commenced (restoration liabilities) as well as changes therein are expensed as incurred and presented as operating costs. Cash costs incurred to rehabilitate these disturbances are presented as operating activities in the statement of cash flows.The cost of ongoing rehabilitation is recognised in profit or loss as incurred . Amounts in R million Note 2018 2017 Opening balance 531.7 522.9 Unwinding of provision 7 45.6 45.3 Change in estimate of environmental rehabilitation recognised in profit or loss 5.1 (2.9) 0.6 Change in estimate of environmental rehabilitation recognised to decommissioning asset 9 3.9 (34.4) Environmental rehabilitation payments (24.9) (19.5) To reduce decommissioning liabilities (21.5) (11.6) To reduce restoration liabilities 13 (3.4) (7.9) Transferred from non-current liabilities held for sale 23 - 16.8 Closing balance 553.4 531.7 Environmental rehabilitation payments to reduce the liability (24.9) (19.5) Ongoing rehabilitation expenditure * 21 (26.7) (22.4) Total cash spent on environmental rehabilitation (51.6) (41.9) * The Group also performs ongoing environmental rehabilitation arising from its current activities concurrently with production. These costs do not represent a reduction of the above liability and are expensed as operating costs. Gross cost to rehabilitate The Group estimates that, based on current environmental and regulatory requirements, the total undiscounted rehabilitation cost is approximately R 670.4 million ( 2017 : R 639.5 million). |
INVESTMENTS IN REHABILITATION O
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of investments in rehabilitation obligation funds [Abstract] | |
Disclosure of investments in rehabilitation obligation funds [text block] | 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trust funds Cash and cash equivalents in environmental rehabilitation trust funds comprise low-risk, interest-bearing cash and cash equivalents and are non-derivative financial assets categorised as loans and receivables. Reimbursive right for environmental rehabilitation guarantees Funds held in the cell captive that secure the environmental re habilitation guarantees issued are recognised as a right to receive a reimbursement and is measured at the lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. Funding of environmental rehabilitation activities (refer note 10 ) Ongoing rehabilitation expenditure and environmental rehabilitation payments to reduce the environmental rehabilitation obligations are mostly funded by cash generated from operations. In addition, contributions have been made to an environmental rehabilit ation trust and a cell captive for the sole use of future environmental rehabilitation payments. Guardrisk Insurance Company Limited ("Guardrisk") issued guarantees amounting to R 427.3 million (2017: R 427.3 million) to the Departmen t of Mineral Resources ("DMR") on behalf of DRDGOLD related to the environmental obligations. The funds in the cell captive serves as collateral for these guarantees. Amounts in R million Note 2018 2017 Cash and cash equivalents in environmental rehabilitation trust funds 118.0 110.5 Opening balance 110.5 93.8 Transferred from non-current assets held-for-sale 23 - 9.9 Growth 6 7.5 6.8 Reimbursive right for environmental rehabilitation guarantees 126.0 117.2 Opening balance 117.2 108.3 Growth 6 8.8 8.9 244.0 227.7 CREDIT RISK The Group is exposed to credit risk on the total carrying value of the investments held in the environmental rehabilitation trust funds. The Group manages its exposure to credit risk by diversifying these investments across a number of major financial institutions, as well as investing funds in low-risk, interest-bearing cash and cash equivalents. MARKET RISK Interest rate risk A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equi ty and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular the balance of the funds, remain constant. The analysis excludes income tax . Amounts in R million 2018 2017 100bp increase 1.2 1.1 100bp (decrease) (1.2) (1.1) FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of the cash and cash equivalents in the environmental rehabilitation trust funds approximate their carrying value due to their short-term maturities. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Jun. 30, 2018 | |
Cash and cash equivalents [abstract] | |
Disclosure of cash and cash equivalents [text block] | 12 CASH AND CASH EQUIVALENTS ACCOUNTING POLICIES Cash and cash equivalents are non-derivative financial assets categorised as loans and receivables and comprise cash on hand, demand deposits, and highly liquid investments which are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash and cash equivalents are initially measu red at fair value. Subsequent to initial recognition, cash and cash equivalents are measured at amortised cost, which is equivalent to their fair value. Amounts in R million Note 2018 2017 Included in cash and cash equivalents is restricted cash relating to: - Cash (including interest) held in escrow relating to the electricity tariff dispute with Ekurhuleni Metropolitan Municipality ("Municipality") 25 114.2 92.7 - Environmental and other guarantees issued by the Standard Bank of South Africa Limited 17.2 16.1 Interest relating to cash and cash equivalents 6 21.8 23.6 CREDIT RISK The Group is exposed to credit risk on the total carrying value of its cash and cash equivalents.The Group manages its exposure to credit risk by investing cash and cash equivalents across a number of major financial institutions, considering the credit ratings of these financial institutions. MARKET RISK Interest rate risk A change of 100 basis points ( bp) in interest rates at the reporting date would had increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular the cash balance and foreign currency rates, remain constant. The analysis excludes income tax. Amounts in R million 2018 2017 100bp increase 3.0 2.5 100bp (decrease) (3.0) (2.5) Foreign currency risk US Dollars received on settlement of the trade debtors are exposed to fluctuations in the US Dollar/South African Rand exchange rate until it is converted to South African Rands. US Dollars not converted to South African Rands at reporting date are as follows : Figures in USD million 2018 2017 Foreign denominated cash at 30 June - - FAIR VALUE OF FINANCIAL INSTRUMENTS Cash and cash equivalents The fair value of cash and cash equivalents approximate their carrying value due to their short-term maturities. |
CASH GENERATED BY OPERATIONS
CASH GENERATED BY OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Cash flows from (used in) operating activities [abstract] | |
Disclosure of cash flows from (used in) operations [text block] | 13 CASH GENERATED BY OPERATIONS Amounts in R million Note 2018 2017 Profit/(loss) before tax 32.4 (36.7) Adjusted for Depreciation 9 168.0 179.8 Movement in gold in process and finished stock 5.1 (24.5) (4.8) Change in estimate of environmental rehabilitation 10 , 23 (2.9) 0.6 Environmental rehabilitation payments 10 , 23 (3.4) (7.9) Increase in long-term incentive liability 18.1 17.2 10.0 Profit on disposal of property, plant and equipment 5.2 - (12.9) Loss on disposal of property, plant and equipment 5.3 0.6 - Finance income 6 (38.8) (40.0) Finance expense 7 58.4 52.2 Other non-cash items 1.3 (1.0) Operating cash flows before working capital changes 208.3 139.3 Working capital changes 14.6 (117.8) Change in trade and other receivables 22.2 (57.6) Change in long-term receivable 24.2 (27.4) - Change in inventories (28.2) (14.8) Change in trade and other payables and employee benefits 48.0 (45.4) Cash generated by operations 222.9 21.5 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other receivables [abstract] | |
Disclosure of trade and other receivables [text block] | 14 TRADE AND OTHER RECEIVABLES ACCOUNTING POLICIES Trade and other receivables, excluding Value Added Tax and prepayments , are non-derivative financial assets categorised as loans and receivables. These assets are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method less any impairment losses . The Group derecognises a financial asset when the co ntractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neith er transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability. Impairment A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of a debtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Any impairment losses are recognise d in the statement of profit or loss. Trade receivables relate to gold sold on the bullion market by Rand Refinery in its capacity as an agent. Settlement is received two working days from gold sold date. Amounts in R million 2018 2017 Trade receivables 0.6 34.5 Value Added Tax 46.8 50.8 Other receivables 40.8 35.7 Prepayments 12.2 3.0 Allowance for impairment (9.2) (9.7) 91.2 114.3 14 TRADE AND OTHER RECEIVABLES continued CREDIT RISK The Group is exposed to credit risk on the total carrying value of its trade receivables and other receivables excluding Value Added Tax and prepayments. The Group manages its exposure to credit risk on trade receivables by maintaining a short term cycle to settlement of 2 working days. The Group manages its exposure to credit risk on other receivables by dealing with a number of counterparties, ensuring that these counterparties are of good credit standing and transacting on a secured or cash basis where considered necessary. Receivables are regularly monitored and assessed for recoverability. Ageing of trade receivables and other receivables: Amounts in R million 2018 2017 Receivables that are past due but not impaired at 30 June 15.3 10.4 Receivables that are past due and impaired at 30 June 9.2 9.7 Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour. Impairments were raised due to the uncertainty around the recoverability and timing of the expected cash flows. Movement in the allowance for impairment in respect of trade and other receivables during the year was as follows: Amounts in R million 2018 2017 Balance at 1 July (9.7) (11.1) Net of impairments raised and bad debt recovered 0.5 1.4 Balance at 30 June (9.2) (9.7) MARKET RISK Interest rate risk Trade and other receivables do not earn interest and are therefore not subject to interest rate risk. Foreign currency risk All g old sales during the year ended June 30, 2018 , and thus all trade receivables, wer e denominated in US Dollars and sold at spot rates and were therefore exposed to fluctuations in the US Dollar/South African Rand exchange rate. N o hedges wer e e ntered into . Figures in USD million 2018 2017 Foreign denomination of trade receivables at June 30 * - 2.7 * Foreign trade receivables as at June 30, 2018 represents less than USD0.1 million A 10% strengthening of the Rand against the US Dollar at 30 June would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables remain constant. Amounts in R million 2018 2017 Strengthening of the Rand against the US Dollar # - (3.5) Weakening of the Rand against the US Dollar # - 3.5 # The increase/(decrease) in equity and profit/(loss) for the year ended June 30, 2018 would have been less than R0.1 million FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of trade and other receivables approximate their carrying value due to their short-term maturities. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables [abstract] | |
Disclosure of trade and other payables [text block] | 15 TRADE AND OTHER PAYABLES ACCOUNTING POLICIES Trade and other payables, excluding payroll accruals, accrued leave pay and provision for performance based incentives, are non-derivative financial liabilities categorised as financial liabilities measured at amortised cost. These liabilities are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest m ethod. The Group derecognises a financial liability when its contractual rights are discharged, or cancelled or expire. Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be pa id if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Amounts in R million 2018 2017 Trade payables and accruals 227.0 200.9 Accrued leave pay 32.9 30.8 Provision for performance based incentives 24.7 2.2 Payroll accruals 18.7 17.9 303.3 251.8 Interest relating to trade payables and accruals included in profit or loss (1.5) (2.7) LIQUIDITY RISK Trade payables and accruals are expected to be settled within 12 months from reporting date. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of trade payables and accruals approximate their carrying value due to their short-term maturities. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2018 | |
Classes of current inventories [abstract] | |
Disclosure of inventories [text block] | 16 INVENTORIES ACCOUNTING POLICIES Gold in process is stated at the lower of cost and net realisable value. Costs are assigned to gold in process on a weighted average cost basis. Costs comprise all costs incurred to the stage immediately prior to smelting, including costs of extraction and processing as they are reliably measurable at that point. Gold b ullion is stated at the lower of cost and net realisable value. Selling and general administration costs are excluded from inventory valuation. Consumable stores are stated at cost less allowances for obsolescence. Cost of consumables is based on the weigh ted average cost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cos t of completion and selling expenses Amounts in R million 2018 2017 Consumable stores 129.0 101.9 Gold in process 66.2 55.1 Finished stock - Gold Bullion 37.8 23.3 Total inventories 233.0 180.3 Inventory carried at net realisable value includes: Gold in process - 45.3 Finished stock - Gold Bullion - 19.3 Write down to net realisable value included in movement in gold in process and finished stock - 10.2 |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Jun. 30, 2018 | |
Major components of tax expense (income) [abstract] | |
Income tax | 17 INCOME TAX SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Management periodically evaluates positions taken where tax regulations are subject to interpretation. This includes the treatment of Ergo as a single mining operation pursuant to the relevant ring-fencing legislation. The deferred tax liability is calcula ted by applying a forecast weighted average tax rate that is based on a prescribed formula. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include expected future profitability and timing of the reversal of the temporary differences. Due to the forecast weighted average tax rate being based on a prescribed formula that increases the effective tax rate w ith an increase in forecast future profitability, and vice versa , the tax rate can vary significantly year on year and can move contrary to current period financial performance. A 100 basis points increase in the effective tax rate will result in an increa se in the net deferred tax liability at June 30, 2018 of approximately R 8 . 0 million (2017: R7. 4 million; 2016: R8.1 million). The assessment of the probability that future taxable profits will be available against which the tax losses and unredeemed capita l expenditure can be utilised requires the use of assumptions and estimates and are inherently uncertain and could change materially over time. C apital expenditure is assessed by the South African Receiver of Revenue when it is redeemed against taxable min ing income rather than when it is incurred. A different interpretation by the South African Receiver of Revenue regarding the deductibility of these capital allowances may therefore become evident subsequent to the year of assessment when the capital expen diture is incurred. ACCOUNTING POLICIES Income tax expense comprises current and deferred tax. Each company is taxed as a separate entity and tax is not set-off between the companies. Current tax Current tax comprise the expected tax payable or receivable on the taxable income or loss for the year and any adjustment on tax payable or receivable in respect of the previous year is recognised in profit or loss except to the extent that it relates to items recogni sed directly in equity or OCI. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date . Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amoun ts and the tax bases of assets and liabilities. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit. Deferred tax asse ts relating to unutilised tax losses and unutilised capital allowances are recognised to the extent that it is probable that future taxable profits will be available against which the unutilised tax losses and unutilised capital allowances can be utilised. The recoverability of these assets is reviewed at each reporting date and adjusted if recovery is no longer probable. Deferred tax related to gold mining income is measured at a forecast weighted average tax rate that is expected to be applied to temporar y differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. 17 .1 INCOME TAX EXPENSE Tax on gold mining income is determined based on a formula: Y = 34 - 170/X where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure that bears to gold mining income derived, expressed as a percentage. Non-mining income, which consists primarily of interest accrued, is taxed at a standard rate of 28%. All mining capital expenditure is deducted in the year it is incurred to the extent that it does not result in an assessed loss. Capital expenditure not deducted from mining income is carried forward as unutilised capital allowances to be deducted from fut ure mining income. 17 INCOME TAX continued 17.1 INCOME TAX EXPENSE continued Amounts in R million 2018 2017 2016 Mining tax (23.2) 54.2 (46.9) Non-mining tax (2.7) (3.8) - (25.9) 50.4 (46.9) Comprising: Current tax - current year (6.4) (1.9) (0.5) Current tax - prior year - - (5.1) Deferred tax - current year (19.5) 53.4 (42.1) Deferred tax - prior year - (1.1) 0.8 (25.9) 50.4 (46.9) Tax reconciliation Major items causing the Group's income tax expense to differ from the statutory rate were: Tax on net (profit)/loss before tax at the South African corporate tax rate of 28% (9.0) 10.3 (30.5) Rate adjustment to reflect the actual realised company tax rates 3.5 (7.9) 4.4 Deferred tax rate adjustment (a) (12.8) 37.5 (21.7) Non-deductible expenditure (b) (9.8) (1.8) (1.8) Utilisation of tax losses for which deferred tax assets were previously unrecognised (c) 2.6 5.9 7.5 Current year tax losses for which no deferred tax was recognised (0.8) (0.3) - Exempt income and other non-taxable income - 5.4 - Tax incentives 0.4 0.2 0.7 Other temporary differences - - (1.2) Over/(under) provided in prior periods - 1.1 (4.3) Income tax (25.9) 50.4 (46.9) (a) Deferred tax rate adjustment The forecast weighted average deferred tax rate in creased from 18.6 % to 20 . 3 % as a result of a n in crease in forecast profitability of Ergo ( 2017 : decreased from 2 3 .1 % to 18.6 % due to the decrease in forecast profitability of Ergo; 2016 : increased from 20.1% to 23.1% due to the increase in forecast profitability of Ergo ). ( b ) Non-deductible expenditure The most significant non-deductible expenditure incurred by the Group includes: R 9.0 million transactions costs incurred related to the acquisition of the WRTRP Assets ; R 8.8 million fair value adjustment on initial recognition of the long-term receivable; R 7.5 million net operating cost related to Ergo Business Development Academy Not for Profit Company that is not deductible as it is exempt from income tax; and R 6.0 million expenditure that is capital in nature. ( c ) Utilisation of tax losses fo r which deferred tax assets were previously unrecognised Group entities that are not expected to generate recurring taxable income, and therefore have unrecognised deferred tax assets, generated taxable income during the year ended June 30, 2018 resulti ng in the utilisation of unrecognised losses. 17 INCOME TAX continued 17.2 DEFERRED TAX Deferred tax assets and liabilities relate to the following: Amounts in R million 2018 2017 Deferred tax asset Provisions 8.7 5.0 8.7 5.0 Deferred tax liability Property, plant and equipment (261.5) (223.8) Provisions, including rehabilitation provision 95.0 80.2 Other temporary differences (1) 2.8 3.1 (163.7) (140.5) Net deferred mining and income tax liability (155.0) (135.5) Movement in the net deferred tax liability is as follows: Amounts in R million 2018 2017 Opening balance (135.5) (187.9) Recognised in profit or loss (19.5) 52.4 Property, plant and equipment (37.7) 83.1 Provisions, including rehabilitation provision 18.5 (29.4) Other temporary differences (1) (0.3) (1.3) Closing balance (155.0) (135.5) (1) Includes the temporary differences on the finance lease obligation. Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2018 2017 Tax losses 37.3 20.5 Unredeemed capital expenditure 272.9 272.9 Capital losses 330.0 325.2 Deferred tax assets have not been recognised for Group entities that are not expected to generate future taxable profits against which the tax losses, unredeemed capital expenditure and capital losses can be utilised. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Jun. 30, 2018 | |
Employee benefits [Abstract] | |
Disclosure of employee benefits [text block] | 18 EMPLOYEE BENEFITS ACCOUNTING POLICIES Cash-settled share-based payments (“Long-Term Incentive” or “LTI”) Cash-settled share-based payments are measured at fair value and remeasured at each reporting date to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment in profit or loss. Vesting assumptions for non-ma rket conditions are reviewed at each reporting date to ensure they reflect current expectations. Post-retirement medical benefit The Group's net obligation in respect of long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine the present value. Remeasurements are recognised in profit or loss in the period in which they arise. Amounts in R million Note 2018 2017 Non-current employee benefits 40.6 39.0 Liability for long term incentive scheme 18.1 31.9 30.7 Liability for post-retirement medical benefits* 8.7 8.3 Current employee benefits 13.2 - Liability for long term incentive scheme 18.1 13.2 - 53.8 39.0 * Unfunded medical aid benefit plan 18 .1 LIABILITY FOR LONG TERM INCENTIVE SCHEME Terms of the November 2015 grant made under the DRDGOLD Group's amended long term incentive scheme are: • The scheme has a finite term of 5 years and thus no top-up awards are made when the shares vest; • The phantom shares are issued at a n exercise price of nil and will vest in 3 tranches: 20 % , 30 % and 50 % on the 3 rd , 4 th and 5 th anniversaries respectively, subject to individual service and performance conditions being met; and • The phantom shares will be settled at the 7 day volume weighted average price ("VWAP") of the DRDGOLD share. Amounts in R million Note 2018 2017 Movement in the total liability Opening balance 30.7 30.3 Increase in long-term incentive liability 5.3 17.2 10.0 Vested and paid (2.8) (9.6) Total liability for long-term incentive scheme 45.1 30.7 The total liability for long-term incentive scheme is expected to be settled as follows: 45.1 30.7 Within 12 months after reporting date 13.2 - After 12 months after reporting date 31.9 30.7 Reconciliation of outstanding phantom shares 2018 2017 Weighted Weighted average average Shares price Shares price Number R per share Number R per share Opening balance 21 144 534 23 169 191 Vested and paid (955 067) 2.93 (1 502 747) 6.39 Forfeited/lapsed - (521 910) Closing balance 20 189 467 21 144 534 Ageing of outstanding phantom shares: 30 June 2019 30 June 2020 30 June 2021 Total Granted November 2015 4 037 893 6 056 840 10 094 734 20 189 467 18 EMPLOYEE BENEFITS continued 18 .1 LIABILITY FOR LONG TERM INCENTIVE SCHEME continued Fair value The fair value of the liability for the long-term incentive scheme is mostly influenced by the DRDGOLD Limited share price. Other inputs influencing the fair value are the forward dividend yield and estimates of staff retention and performance conditions. The inputs most significantly influencing the mea surement of the fair values are as follows : 2018 2017 Grant date 7 day VWAP of the DRDGOLD Limited share 3.71 4.23 2.26 Annualised forward dividend yield 1.8% 0.7% 4.3% 18 . 2 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL Interests in contracts None of the directors, officers or major shareholders of DRDGOLD or, to the knowledge of DRDGOLD’s management, their families, had any interest, direct or indirect, in any transaction during the year ended June 30, 2018 or the preceding financial years, or in any proposed transaction which has affected or will materially affect DRDGOLD or its subsidiaries. None of the directors or officers of DRDGOLD or any associate of such director or officer is currently or has been at any time during the past financial year materially indebted to DRDGOLD . Key management personnel remuneration Amounts in R million Note 2018 2017 2016 - Board fees paid 5.6 5.0 3.7 - Salaries paid 53.6 52.9 51.5 - Short term incentives relating to this cycle 22.5 - 33.8 - Long term incentives paid during this cycle 18.1 2.8 9.6 3.9 - Pre-tax gain on share option exercised - - 1.7 84.5 67.5 94.6 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital Management | 19 CAPITAL MANAGEMENT The primary objective of managing the Group's capital is to ensure that there is sufficient capital available to support the funding requirements of the Group, including capital expenditure, in a way that optimises the cost of capital, ensures that the Gro up remains in a sound financial position and matches the Group's strategy. At June 30, 2018 the Group had no external debt in line with its aim for the existing operations to remain unleveraged. All funding requirements during the past financial year have been financed by cash resources and cash generated from operations. The Group considers the appropriate capital management strategy for specific growth projects as and when required . Lease arrangements that are not in the legal form of a finance lease, but is accounted for as such based on its terms and conditions, are not considered to be debt. Financing the development of Phase 1 of FWGR Subsequent to the acquisition of FWGR on J uly 31, 2018 (refer note 28), a R evolving Credit Facility amounting to R 300 million was secured with ABSA Bank Limited (acting through its Corporate and Investment Banking division) to finance the development of Phase 1 of FWGR, replacing the R 100 million overdraft facility that was in place during the year ended June 30, 2018 . Price protection policy After June 30, 2018 the Board approved Rand gold price protection to manage the short-term liquidity risk that will arise from the anticipated increase in borrowings to finance the development of Phase 1 of FWGR. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2018 | |
Equity [abstract] | |
Disclosure of share capital, reserves and other equity interest [text block] | 20 EQUITY ACCOUNTING POLICIES Ordinary share capital Ordinary shares and the cumulative preference shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effect. Repurchase and reissue of ordinary shares (treasury shares) When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from share capital. Dividends Dividends are recognised as a liability on the date on which they are declared which is the date when the share holders’ right to the dividends vest. Amounts in R million 2018 2017 2016 Authorised share capital 1 500 000 000 (2017 and 2016: 600 000 000) ordinary shares of no par value 5 000 000 (2017 and 2016: 5 000 000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 431 429 767 (2017 and 2016: 431 429 767) ordinary shares of no par value (a,b) 4 227.9 4 227.9 4 227.9 9 361 071 (2017 and 2016: 9 361 071) treasury shares held within the Group (c) (50.7) (50.7) (50.7) 5 000 000 (2017 and 2016: 5 000 000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 4 177.7 4 177.7 4 177.7 Dividends (c) Dividends paid during the year net of treasury shares: Prior year final dividend: 5 SA cents per share (2017: 12 SA cents per share; 2016: 10 SA cents per share) 21.1 50.6 42.2 Interim dividends: 5 SA cents per share (2017: nil; 2016: 50 SA cents per share) 21.1 - 210.7 Total 42.2 50.6 252.9 (a) Unissued shares In terms of an ordinary resolution passed at the previous annual general meeting, the remaining unissued ordinary shares in the company are under the control of the directors until the next general meeting. (b) I ssued shares No shares were issued during the year ended June 30, 2018 ( 2017 : nil) During the year ended June 30, 2016 : 546,000 shares were issued relating to share options exercised under the DRDGOLD (1996) share scheme). On July 31, 2018, the acquisition of FWGR became unconditional. On this date 265 million ordinary shares were issued to Sibanye-Stillwater as settlement of the purchase consideration for these assets. (c) Treasury shares Shares in DRDGOLD Limited are held in treasury by Ergo Mining Operations Proprietary Limited ("EMO"). No shares were acquired in the market during the year ended June 30, 2018 ( 2017 : nil; 2016 : 3 205 512 ). Dividends amounting to R 0.9 million ( 2017 : R 1.1 million ; 2016 : R 5.6 million) were received on these shares. RELATED PARTY RELATIONSHIPS : The issue of 265 million ordinary shares to Sibanye-Stillwater on July 31, 2018 as settlement of the purchase consideration for the FWGR assets, resulted in Sibanye-Stillwater owning 38 .05 % of the issued ordinary shares of DRDG OLD Limited and hence becoming a related party to DRDGOLD . |
OPERATING SGEMENTS
OPERATING SGEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Operating Segments [abstract] | |
Disclosure of entitys reportable segments [text block] | 21 OPERATING SEGMENTS ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (CODM) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational str ucture and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants that, together with its deposition facility, is capable of operating independently. When assessing profitability, the CODM considers , inter alia , the revenue and production costs of each segment. The net of these amounts is the operating profit or loss. Therefore, operating profit has been disclosed in the segment report as the primary measure of profit or loss. The CODM also considered other costs that, in addition to the operating profit or loss, result in the working profit or loss. Ergo is a surface retreatment operation and treats old slime and sand dumps to the south of Johannesburg’s central busi ness district as well as the East and Central Rand goldfields. The operation comprises three plants. The Ergo and Knights plants continue to operate as metallurgical plants. The City Deep plant continues to operate as a pump/milling station feeding the met allurgical plants. The Crown plant operated as a pump/milling station feeding the metallurgical plants until March 2017 when it ceased all operations . Corporate office and other reconciling items (collectively referred to as "Other reconciling items" ) are taken into consideration in the strategic decision-making process of the CODM and are therefore included in the disclosure here, even though they do not earn revenue. They do not represent a separate segment . Other 2018 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 490.4 - 2 490.4 Cash operating costs (2 159.7) - (2 159.7) Movement in gold in process 24.5 - 24.5 Operating profit 355.2 - 355.2 Administration expenses and general costs (1) (11.5) (78.6) (90.1) Interest income (2) 9.5 12.3 21.8 Interest expense (3) (3.1) (1.0) (4.1) Current tax (2.9) (3.5) (6.4) Working profit/(loss) before capital expenditure 347.2 (70.8) 276.4 Additions to property, plant and equipment (125.2) (0.9) (126.1) Working profit/(loss) after capital expenditure 222.0 (71.7) 150.3 (1) Administration expenses and general costs excludes loss on disposal of property, plant and equipment (2) Interest income excludes the unwinding of the long-term receivable (3) Interest expense excludes the fair value adjustment on the initial recognition of the long-term receivable Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 347.2 (70.8) 276.4 - Depreciation (167.4) (0.6) (168.0) - Movement in provision for environmental rehabilitation 2.5 0.4 2.9 - Growth in investment in environmental obligation funds 10.1 6.2 16.3 - Loss on disposal of property, plant and equipment (0.6) - (0.6) - Unwinding of provision for environmental rehabilitation (44.3) (1.3) (45.6) - Fair value adjustment on the initial recognition of long-term receivable including subsequent unwinding (8.1) - (8.1) - Ongoing rehabilitation expenditure (26.7) - (26.7) - Net other operating (costs)/income (36.2) 15.6 (20.6) - Deferred tax (23.2) 3.7 (19.5) Profit/(loss) for the year 53.3 (46.8) 6.5 Statement of cash flows Cash flows from operating activities 285.3 (51.5) 233.8 Cash flows from investing activities (140.2) (0.2) (140.4) Cash flows from financing activities (2.8) (42.2) (45.0) 21 OPERATING SEGMENTS continued Other 2017 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 339.9 - 2 339.9 Cash operating costs (2 087.9) - (2 087.9) Movement in gold in process 4.8 - 4.8 Operating profit 256.8 - 256.8 Interest income 6.8 16.8 23.6 Interest expense (3.3) (2.4) (5.7) Retrenchment costs (23.0) - (23.0) Administration expenses and general costs (4.5) (64.9) (69.4) Current tax (1.9) - (1.9) Working profit/(loss) before capital expenditure 230.9 (50.5) 180.4 Additions to property, plant and equipment (116.2) (0.1) (116.3) Additions to unlisted investments - (0.1) (0.1) Working profit/(loss) after capital expenditure 114.7 (50.7) 64.0 Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 230.9 (50.5) 180.4 - Depreciation (179.7) (0.1) (179.8) - Movement in provision for environmental rehabilitation (0.6) - (0.6) - Growth in environmental rehabilitation trust funds and reimbursive right 10.9 5.5 16.4 - Profit on disposal of property, plant and equipment 0.2 12.7 12.9 - Unwinding of provision for environmental rehabilitation (45.3) (1.2) (46.5) - Ongoing rehabilitation expenditure (22.4) - (22.4) - Net other operating (costs)/income (30.3) 31.3 1.0 - Deferred tax 54.2 (1.9) 52.3 Profit/(loss) for the year 17.9 (4.2) 13.7 Statement of cash flows Cash flows from operating activities 32.5 19.1 51.6 Cash flows from investing activities (116.6) 19.9 (96.7) Cash flows from financing activities (2.4) (50.6) (53.0) 21 OPERATING SEGMENTS continued Other 2016 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 433.1 - 2 433.1 Cash operating costs (1 991.2) - (1 991.2) Movement in gold in process (7.1) - (7.1) Operating profit 434.8 - 434.8 Interest income 2.8 19.6 22.4 Interest expense (4.1) (0.5) (4.6) Administration expenses and general costs (4.5) (82.7) (87.2) Current tax (0.5) (5.1) (5.6) - - - Working profit/(loss) before capital expenditure 428.5 (68.7) 359.8 Additions to property, plant and equipment (100.0) - (100.0) Additions to listed investments - (1.3) (1.3) - - - Working profit/(loss) after capital expenditure 328.5 (70.0) 258.5 Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 428.5 (68.7) 359.8 - Depreciation (180.1) (0.1) (180.2) - Movement in provision for environmental rehabilitation (21.4) 2.1 (19.3) - Growth in environmental rehabilitation trust funds and reimbursive right 9.8 4.7 14.5 - Profit on disposal of property, plant and equipment 9.3 1.2 10.5 - Unwinding of provision for environmental rehabilitation (41.5) (1.5) (43.0) - Ongoing rehabilitation expenditure (27.8) - (27.8) - Net other operating (costs)/income (29.6) 18.3 (11.3) - Deferred tax (46.9) 5.6 (41.3) Profit/(loss) for the year 100.3 (38.4) 61.9 Statement of cash flows Cash flows from operating activities 414.8 1.1 415.9 Cash flows from investing activities (105.6) (1.6) (107.2) Cash flows from financing activities (2.0) (279.1) (281.1) |
INTEREST IN SUBSIDIARIES
INTEREST IN SUBSIDIARIES | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of subsidiaries [abstract] | |
Disclosure of subsidiaries [text block] | 22 INTEREST IN SUBSIDIARIES ACCOUNTING POLICIES Significant subsidiaries of the Group are those subsidiaries with the most significant contribution to the Group's profit or loss or assets. Ergo Mining Proprietary Limited is the only significant subsidiary of the Group. It is primarily involved in the retreatment of surface gold and all of its operations are based in South Africa. Ergo Mining Proprietary Limited is a wholly owned subsidiary a nd is incorporated in South Africa. |
ASSETS AND LIABILITIES CLASSIFI
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE | 12 Months Ended |
Jun. 30, 2018 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Disclosure of non-current assets or disposal groups classified as held for sale [text block] | 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether the disposal is highly probable requires the exercise of significant judgement and estimates of the outcome of future events that are not wholly within the control of the Group . ACCOUNTING POLICIES Non-current assets or disposal groups, comprising non-current asset s and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than continuing use. Such assets or disposal groups are measured at the lower of their carrying amount and fair value less cost to sell. Impairment losses on initial application as held for sale and subsequent gains and losses on re-measurement are recognised in profit or loss. Non-current assets and disposal groups cease to be classified as held for sale if it is not highly p robable that they will be recovered primarily through sale rather than continuing use. Such assets that cease to be classified as held for sale are measured at the lower of their carrying amount before such assets were classified as held for sale, adjusted for any depreciation that would have been recognised had such assets not been classified as held for sale, and their recoverable amount at the date of the subsequent decision not to sell . Amounts in R million Note 2018 2017 Assets held for sale Property, plant and equipment * - - Opening balance - 5.8 Transferred to property, plant and equipment 9 - (0.8) Disposal - (5.0) Non-current investments and other assets - - Opening balance - 9.2 Growth 6 - 0.7 Transferred to cash and cash equivalents in environmental rehabilitation trust funds 11 - (9.9) - - * Consists of land that is carried at cost and is not depreciated. Liabilities held for sale Provisions - - Opening balance - 15.6 Unwinding of provision 7 - 1.2 Transferred to provision for environmental rehabilitation 10 - (16.8) - - In line with the Group’s strategy to exit underground mining operations, management committed to a plan to sell certain of the underground mining and prospecting rights held by East Rand Proprietary Mines Limited ("ERPM") including the related liabilities late during the financial year ended June 30, 2014. Since that date up to 31 December 2016, these assets and liabilities had been presented as a disposal Group held for sale due to being “high ly probable” as defined. At June 30, 2017, management concluded t hat the disposal of these underground mining and prospecting rights, including the related liabilities, was no longer “highly probable” and reclassified these assets and liabilities based on their underlying nature. The last outstanding regulatory approval , being the approval under Section 11 of the Mineral and Petroleum Resource Development Act was not fulfilled by the purchaser. Management decided not to provide any further extension to the purchaser and accordingly the agreement in respect of the disposa l of these underground mining and prospecting rights, including the related liabilities, lapsed . |
FINANCIAL ASSETS
FINANCIAL ASSETS | 12 Months Ended |
Jun. 30, 2018 | |
Financial assets other [abstract] | |
Disclosure of financial assets other total [text block] | 24 FINANCIAL ASSETS SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment to define the accounting policy and subsequent classification of the long-term receivable requires the exercise of significant jud gement of the outcome of future events that are not wholly under the control of the Group. The judicial proceedings that impacts on the long-term receivable are inherently complex legal issues that are subject to uncertainties and complexities and are sub ject to interpretation. SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The fair value determination of the long-term receivable is determined using assumptions and estimates that are inherently uncertain and can change materially over time. These assump tions and estimates include estimating the timing of concluding on the main application, the ultimate settlement terms, the discount rate applied and the credit risk assessment for impairment purposes . ACCOUNTING POLICIES Investment in other entities The G roup’s listed and unlisted investments in equity securities are classified as available-for-sale financial assets. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition they are measured at fair value and changes therein, other than impairment losses, are recognised in OCI . Long - term receivable The long-term receivable is a non-derivative financial asset categorised as loans and receivables. The asset is initially measured at fair value and any difference between the face value of payments made and the fair value of the long-term receivable on initial recognition are recognised in profit or loss as a finance expense. Subsequent to initial rec ognition, the long-term receivable is measured at amortised cost using the effective interest method less any impairment losses. Unwinding of the carrying value is accounted for as a finance income. Impairment A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of a debtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be im paired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Any impairment losses are recognised in the statement of profit or loss . Amounts in R million Note 2018 2017 Investments in other entities 24.1 9.4 8.8 Long-term receivable 24.2 19.3 - Total financial assets 28.7 8.8 24.1 INVESTMENTS IN OTHER ENTITIES Amounts in R million Shares held % held 2018 2017 Listed investments (Fair value hierarchy Level 1): 9.2 8.6 West Wits Mining Limited ("WWM") 47 812 500 6.7% 9.2 8.6 Unlisted investments (Fair value hierarchy Level 3): 0.2 0.2 Rand Refinery Proprietary Limited ("Rand Refinery") (a) 44 438 11.0% - - Guardrisk Insurance Company Limited (Cell Captive A170) (b) 20 # 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 30 160 3.0% 0.1 0.1 Rand Mutual Assurance Company Limited 1 # - - 9.4 8.8 Fair value adjustment on available for sale financial assets recognised in OCI 0.6 (0.3) # Represents a less than 1% shareholding. (b) Class A 170 shares are held in Guardrisk Insurance Company Limited that entitles the holder to 100% of the residual net equity of the Cell Captive A 170 after settlement of the reimbursive right. 24 FINANCIAL ASSETS continued 24 .1 INVESTMENT IN OTHER ENTITIES continued (a) Rand Refinery The estimated fair value of the investment in Rand Refinery shares remains de minimis due to the uncertainty regarding Rand Refinery's future free cash flows and the lack of marketability of the shares held. MARKET RISK Other market price risk Equity price risk arises from changes in quoted market prices of listed investments as well as changes in the fair value of unlisted investments due to changes in the underlying net asset values. FAIR VALUE OF FINANCIAL INSTRUMENTS Listed investments The fair value of listed investments are determined by reference to published price quotations from recognised securities exchanges and constitute level 1 instruments on the fair value hierarchy. Unlisted investments The valuations are based on either the net asset values of these companies, or the consideration of unobservable financial information which is compared to information available in the market regarding other market participants' view on the value of the company and constitute level 3 instruments on the fair val ue hierarchy. 24 .2 LONG - TERM RECEIVABLE Payments were made under protest to the Municipality (refer note 25 ) amounting to R 27.4 million (excluding VAT) , consisting of an initial payment of R22.5 million as well as subsequent payments of R4.9 million comprising the difference between the J-tariff and the Eskom tariff. The initial payment w as made from cash held in escrow relating to the electricity tariff dispute with Ekurhuleni Metropolitan Municipality (refer note 12 ). The long-term receivable resulting from these payments w as initially recognised at fair value of R 18.6 million, resulting in a fair value adjustment at initial recognition of R 8.8 million, accounted for as finance expense (refer note 7 ). The long-term receivable constitutes a level 3 instrument on the fair value hierarchy. The fair value was determined using the income approach present value technique. The calculation was based on the following assumptions: discount rate: 11.68% representing the Municipality max imum cost of borrowing on bank loans as disclosed in the ir June 30, 2017 annual report; and discount period: 3 years representing management’s best estimate of the date of conclusion of the Main Application. During the year, an unwinding of R 0.7 million was recognised, accounted for as finance income (refer note 6 ). CREDIT RISK The Group is exposed to credit risk on the total carrying value of the long-term receivable . The credit risk was considered in the determination of the fair value at initial recognition by discounting the payments made over the estimated period until the conclusion of the Main Application using the Municipality’s incremental cost of borrowing. T he Group manages the credit risk by regularly monitoring the events surrounding the outcome of the Main Application and assessing the long-term receivable for recoverability. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of the payments made resul ting in the other long-term receivable is adjusted to its fair value on an ongoing basis by initially discounting and subsequently unwinding over the estimated period until the expected conclusion of the Main Application using the Municipality’s incrementa l cost of borrowing . |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of contingent liabilities [abstract] | |
Disclosure of contingent liabilities [text block] | 25 CONTINGENT ASSETS AND LIABILITIES SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether an obligating event results in a liability or a contingent liability require the exercise of significant judgement of the outcome of future events that are not wholly within the control of the Group. Litigation and other judicial proceedings inherently entail complex legal issues that are subject to uncertainties and complexities and are subject to interpretation. ACCOUNTING POLICIES A contingent liability is a possible obligation arising from past events and whose existen ce will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and th e Group can reliably measure the obligation, a provision is recognised. Environmental Mine residue deposits may have a potential pollution impact on ground water through seepage. The Group has taken certain preventative actions as well as remedial actions in an attempt to minimise the Group’s exposure and environmental contamination. The flooding of the western and central basins have the potential to cause pollution due to Acid Mine Drainage (“AMD”) contaminating the ground water. The government has appointed Trans-Caledon Tunnel Authority (“TCTA”) to cons truct a partial treatment plant to prevent the ground water being contaminated. TCTA completed the construction of the neutralisation plant for the Central Basin and commenced treatment during July 2014. As part of the heads of agreement signed in December 2012 between EMO, Ergo, ERPM and TCTA, sludge emanating from this plant since August 2014 has been co-disposed onto the Brakpan Tailings Storage facility. Partially treated water has been discharged by TCTA into the Elsburg Spruit. This agreement includes the granting of access to the underground water basin through one of ERPM ’s shafts and the rental of a site onto which it constructed its neutralisation plant. In exchange, Ergo and its associate companies including ERPM have a set-off against any future directives to make any contribution toward costs or capital of up to R 250 million. Through this agreement, Ergo also secured the right to purchase up to 30 M l of partially treated AMD from TCTA at cost, in order to reduce Ergo’s reliance on potable water f or mining and processing purposes. While the heads of agreement should not be seen as an unqualified endorsement of the state’s AMD solution, and do not affect our right to either challenge future directives or to implement our own initiatives should it be come necessary, it is an encouraging development. DRDGOLD, through its participation in the Western Utilities Corporation initiative, provided the government with a solution for a sustainable long-term solution to AMD. This solution would have been at no cost to the mines and government. In view of the limitation of current information for the accurate estimation of a potential liability, no reliable estimate can be made for the possible obligation. 25 CONTINGENT ASSETS AND LIABILITIES continued Ekurhuleni Metropolitan Municipality (" Municipality ") Electricity Tariff Dispute The Main Application Integral to Ergo’s gold extraction operation is its metallurgical plant at Brakpan (“Ergo Plant”) located within the municipal boundaries of the Municipality. In order to operate the Ergo Plant and conduct its business operations, Ergo requires a reliable and steady feed of electricity whi ch it draws from Eskom’s Ergo Central Substation. Over the past several years the Municipality has charged Ergo for such electricity, at the Megaflex tariff , which is the rate at which Eskom charges its large power users plus an additional surcharge. P ursuant to its own investigations, and after having sought legal advice on the matter, Ergo determined that not only is it supplied by Eskom , not the Municipality, but also that the surcharges levied were inconsistent with the provisions of the Local Gover nment: Municipal Systems Act (“Systems Act”), which sets down clear and strict parameters in this regard. Ergo subsequently challenged the Municipality, Eskom and the National Energy Regulator of South Africa (“NERSA”) for declaratory relief. Included in t he application are the Minister of Energy Affairs , the Minister of Co-operative Governance & Traditional Affairs and the South African Local Government Association, the latter 4 (four) respondents against whom Ergo does not seek any relief and who have not opposed the application. Ergo seeks the following relief : 1. declaring that it is not supplied electricity by the Municipality and that the Municipality is not authorised to levy a surcharge of 40% (“the D-tariff ” ) to the rate which Eskom ordinarily char ges Ergo on its Mega f lex rate (“Eskom tariff”); 2. declaring that the Municipality is in breach of its temporary Distribution Licence (issued by NERSA) by purporting to supply electricity to Ergo at the Ergo Plant; 3. declaring that neither the Municipality nor Eskom may lawfully insist that only the Municipality may supply electricity to Ergo at the Ergo Plant; 4. declaring that Eskom presently supplies electricity to Ergo at the Ergo Plant; and 5. directing Eskom to conclude a consumer agreement with Ergo for the supply of electricity at the Ergo Plant at Eskom’s Megaflex tariff. Ergo also instituted a counterclaim against the Municipality for the recovery of the surcharges which were erroneously p aid to the Municipality in the bona fide belief that they were due and payable prior to the Main Application of approximately R4 3 million (these surcharges were expensed for accounting purposes ). Consequently, and pending the final determination of the M ain Application by the High Court, Ergo stopped paying the surcharges to the Municipality, paying and expensing only the Eskom tariff and depositing the difference comprising the D-tariff into its attorneys’ trust account as security in favour of the Munic ipality in the event that the court rules against Ergo. These surcharges were not expensed but recognised under cash and cash equivalents as restricted cash (refer note 12 ). 25 CONTINGENT ASSETS AND LIABILITIES continued Ekurhuleni Metropolitan Municipality (" Municipality ") Electricity Tariff Dispute continued The Urgent Application In May 2015 the Municipality threatened to, through an interruption to the Eskom supply grid, cause the supply of electricity to the Ergo Central Substation to be terminated. Ergo successfully interdicted the Municipality, pending the determination of the Main Application. The Municipality sought leave to appeal the interd ict, which application was rejected by the High Court. The Municipality then successfully petitioned the Supreme Court of Appeal (“SCA”) in Bloemfontein for leave to appeal thereto . Ergo subsequently, and ultimately, petitioned the Constitutional Court in Braamfontein, Johannesburg in December 2017 for leave to appeal thereto against the latter judgment of the full bench of the SCA which found in favour of the Municipality. In January 2018, the Constitutional Court rejected and refused to hear Ergo’s petit ion for a further appeal. This ruling enabled the Municipality to avail itself of the credit control measures provided for in the Systems Act by terminating the supply of electricity to Ergo, unless it paid the surcharges levied in their entirety and wh ich were retained in Ergo’s attorneys’ trust account over to the Municipality. On the date of the Constitutional Court ruling, the money held in Ergo’s attorney’s trust account amounted to approximately R 126 million. In February 2018, Ergo paid R 25.2 mil lion (including VAT) from the trust account to the Municipality, under protest and without prejudice and/or admission of liability (refer note 24 .2). This amount was the difference between the surcharge of 11 % (“the J-tariff”) over the E skom tariff which was introduced during the course of 2017 “for bulk supplies at medium and high voltage situated in a position designated by the Municipality as close-coupled to the Eskom grid” . The J-tariff, which Ergo still deems to be irregular and dis proportionate in accordance with the provisions of the Systems Act, is significantly lower than the previously imposed “D-tariff”. The balance, following the payments of the R25.2 million, remains in the trust account of Ergo’s attorneys of record. Subsequ ently, Ergo pays monthly to the Municipality, the amount calculated at the lower J-tariff in respect of its electricity consumption, under protest and without prejudice and/or admission of liability (refer note 24 .2). Ergo’s legal team is confident about the prospects of success in the Main Application on the basis that the Municipality does not supply electricity to Ergo or in any manner add value to Eskom’s supply of electricity to Ergo. Ergo is furthermore, in terms of the Main Appli cation, in addition to its contention that the Municipality does not supply electricity to it and not licensed to supply it, challenging the imposition of both the J-tariff and D-tariff on the grounds that they are, inter alia , ultra vires and beyond the s cope of the Municipality’s Electricity By-Laws, the Systems Acts as well as the Credit Control and Debt Collection By-Laws. The Main Application has been set down for hearing on December 5, 2018. Based on management’s assessment of the probability of outflows, no liability for any surcharges claimed by the Municipality has been recognised . 25 CONTINGENT ASSETS AND LIABILITIES continued Occupational Lung Diseases In January 2013, DRDGOLD, ERPM (“DRDGOLD Respondents”) and 23 other mining companies (“Other Respondents”) (collectively referred to as "Respondents") were served with a court application issued in the High Court of South Africa (“Court") for a class certification (“Certification Application”) on behalf of former mineworkers and dependents of deceased mineworkers (“Applicants”). In the application the Applicants all ege that the Respondents conducted underground mining operations in a negligent and complicit manner causing the former mineworkers to contract occupational lung diseases. The Applicants have as yet not quantified the amounts which they are demanding from the Respondents in damages. On May 13, 2016, the Court granted an order for, inter alia , (1) certification of two industry-wide classes: a silicosis class and a tuberculosis class, both of which cover current and former underground mineworkers who have contracted the respective diseases (or the dependants of mineworkers who died of those dise ases); and (2) that the common law be developed to provide that in instances where a claimant claiming general damages passed away, the claim for general damages will be transmitted to the estate of the deceased claimant. This order did not represent a rul ing on the merits of the Application brought against the Respondents. An application for leave to appeal to the Supreme Court of Appeal (“SCA”) was brought by each of the respondent mining companies against the judgment of the Court, specifically on the al legations of the certification and transmissibility of damages to the estate of a deceased mineworker. In June 2016, the Court granted leave to appeal to the SCA against the transmissibility of damages but refused leave to appeal in respect of the certifi cation. The DRDGOLD Respondents (together with each of the W orking G roup companies) served a notice of appeal to petition the SCA against the order for certification and the transmissibility of damages. The SCA granted leave to appeal thereto on both issu es in September 2016. The appeal to the SCA was set down for hearing in March 2018 but was subsequently postponed by agreement between the Applicants and the Respondent companies in light of the progress made by the Working Group as described below . The S CA endorsed and upheld the postponement. The Respondent companies formed a Working Group consisting of representatives from each company to consider and discuss issues pertaining to the action. DRDGOLD withdrew from the Working Group in January 2016. The remaining members of the Working Group have all raised accounting provisions during the calendar year 2017 due to progress made by the Working Group towards a possible settlement with the Applicants . In May 2018, the remaining members of the Working Group announced that a mediated settlement agreement had been reached. The agreement is subject to certain conditions, including the approval by the South African High Court after which an effective date of the agreement will be set. DRDGOLD is not a party to the Working Group’s mediated settlement agreement and maintains the view that it is too early to consider settlement of the matter, mainly for the following reasons: • the Applicants have as yet not issued and served a summons (claim) in the matter; • there is no indication of the number of potential claimants that may join the class action against the DRDGOLD respondents; • many principles upon which legal responsibility may be founded, are required to be substantially developed by the trial court (and possibly subsequent courts of appeal) to establish liability on the bases alleged by the applicants. In light of the above there is inadequate information to determine if a sufficient legal and factual basis exists to establish liability, and to quantify such potential liability . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of financial instruments [text block] | 26 FINANCIAL INSTRUMENTS Overview The Group has exposure to credit risk, liquidity risks, as well as other market risks from its use of financial instruments. This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives and policies and proce sses for measuring and managing risk. The Group’s management of capital is disclosed in note 19 . This note must be read with the quantitative disclosures included throughout these consolidated financial statements. Financial risk management framework The board of directors (“Board”) has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established the Audit and Risk Committee, which is responsible for developing and monitoring t he Group’s risk management policies. The committee reports regularly to the Board on its activities. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes to market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to deve lop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit and Risk Committee oversees how management monitors compliance with the Group’s risk management policies and procedures, and rev iews the adequacy of the risk management framework in relation to the risks faced by the Group. The Audit and Risk Committee is assisted in its oversight role by the internal audit function. The internal audit function undertakes both regular and ad hoc re views of risk management controls and procedures, the results of which are reported to the Audit and Risk Committee. CREDIT RISK Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables and investment securities. The Group’s financial instruments do not represent a concentration of credit risk due to the exposure to credit risk being managed as disclosed in the foll o wing notes: NOTE 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS NOTE 12 CASH AND CASH EQUIVALENTS NOTE 14 TRADE AND OTHER RECEIVABLES NOTE 24 FINANCIAL ASSETS 26 FINANCIAL INSTRUMENTS continued MARKET RISK Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest rates and equity prices will affect the consolidated profit or loss or the value of its financial instruments. The objective of market risk ma nagement is to manage and control market risk exposures within acceptable parameters, while optimising returns . Commodity price risk Additional disclosures are included in the following note: NOTE 4 REVENUE Other market risk Additional disclosures are included in the following note: NOTE 24 .1 INVESTMENTS IN OTHER ENTITIES Interest rate risk Fluctuations in interest rates impact on the value of short-term cash investments and financing activities, giving rise to interest rate risk. In the ordinary course of business, the Group receives cash from its operations and is obliged to fund working capital and capital expenditure requirements. This cash is managed to ensure surplus funds are inv ested in a manner to achieve maximum returns while minimising risks. Lower interest rates result in lower returns on investments and deposits and also may have the effect of making it less expensive to borrow funds at then current rates. Conversely, higher interest rates result in higher interest payments on loans and overdrafts. Additional disclosures are included in the following notes: NOTE 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS NOTE 12 CASH AND CASH EQUIVALENTS Fore ign currency risk The Group enters into transactions denominated in foreign currencies, such as gold sales denominated in US dollar, in the ordinary course of business. This exposes the Group to fluctuations in foreign currency exchange rates. Additional disclosures are included in the following notes: NOTE 12 CASH AND CASH EQUIVALENTS NOTE 14 TRADE AND OTHER RECEIVABLES LIQUIDITY RISK Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unaccept able losses or risking damage to the Group’s reputation. The Group ensures that it has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumst ances that cannot reasonably be predicted, such as natural disasters. Additional disclosures are included in the following note: NOTE 15 TRADE AND OTHER PAYABLES NOTE 19 CAPITAL MANAGEMENT |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Related Party [Abstract] | |
Disclosure of related party [text block] | 27 RELATED PARTIES Disclosures are included in the following notes: NOTE 18 . 2 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL NOTE 20 EQUITY NOTE 22 INTEREST IN SUBSIDIARIES |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of events after reporting period abstract | |
Disclosure of events after reporting period [text block] | 28 SUBSEQUENT EVEN TS There were no significant subsequent events between the year-end reporting date of June 30, 2018 and the date of issue of these financial statements other than described below and included in the preceding notes to the consolidated financial statements. Acquisition of FWGR On November 22, 2017, DRDGOLD Limited signed an agreement for the acq uisition of the gold assets associated with Sibanye-Stillwater’s West Rand Tailings Retreatment Project (“WRTRP”), to be known going forward as Far West Gold Recoveries Proprietary Limited (“FWGR”). On July 31, 2018 the transaction became effective on the waiver of the last outstanding condition, being the granting of the Section 102 Applications to Sibanye-Stillwater. As purchase consideration for the acquisition of these assets, DRDGOLD Limited issued 265 milli on new ordinary shares equal to 38.05 % of DRDGOLD Limited’s outstanding shares to Sibanye-Stillwater and granted Sibanye-Stillwater an option to subscribe for new ordinary shares up to a total of 50.1 % of the total issued ordinary shares of DRDGOLD Limited at a 10 % discount to the prevailing market value, to be exercised within a period of 2 years from the effective date of the acquisition. Additional disclosures are included in the following notes: NOTE 4 REVENUE NOTE 19 CAPITA L MANAGEMENT N OTE 20 EQUITY |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting policies [abstract] | |
Disclosure of basis of preparation of financial statements [text block] | Basis of accounting The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) . The consolidated financial statements were approved by the board of directors on October 24, 2018 . |
Functional and presentation currency | Functional and presentation currency The Group's functional and reporting currency is South African rand. The amounts in these consolidated financ ial statements are rounded to the nearest million unless stated otherwise. Significant exchange rates applied during the year are set out in the table below: South African rand / US dollar 2018 2017 2016 Spot rate at year end 13.72 13.05 14.68 Average rate for the financial year 12.85 13.59 14.5 |
Use of accounting assumptions, estimates and judgement | 2 USE OF ACCOUNTING ASSUMPTIONS, ESTIMATES AND JUDGEMENTS The preparation of the consolidated financial statements requires management to make accounting assumptions, estimates and judgements that affect the application of the Group's accounting policies and reported amounts of assets and liabilities, income and expenses. Accounting assumptions, estimates and judgements are reviewed on an ongoing basis. Revisions to reported amounts are recognised in the period in which the revision is made and in any future periods affected. Actual results may differ from these estimates. Information about assumptions and estimates in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 9 PROPERTY, PLANT AND EQUIPMENT NOTE 10 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 17 INCOME TAX NOTE 24 .2 LONG-TERM RECEIVABLE Information about significant judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE NOTE 24 .2 LONG-TERM RECEIVABLE NOTE 25 CONTINGENT ASSETS AND LIABILITIES |
Basis of measurement | Basis of measurement The consolidated financial statements are prepared on the historical cost basis, unless otherwise stated. |
Basis of consolidation | Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Transactions eliminated on co nsolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New standards, amendments to standards and interpretations not yet adopted | 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT YET ADOPTED At the date of authorisation of these consolidated financial statements, the following relevant standards, amendments to standards and interpretations that may be applicable to the business of the Group were in issue but not yet effective and may therefore have an impact on future co nsolidated financial statements. These new standards, amendments to standards and interpretations will be adopted at their effective dates. IFRS 2 Share-based payment amendments (Effective date 1 July 2018) Measurement of cash-settled share-based payments – There is currently no guidance in IFRS 2 on how to measure the fair value of the liability in a cash-settled share based payment. The amendments clarify that a cash-settled share-based payment is measured using the same approach as for equity-settled sha re-based payments – i.e. the modified grant date method. Therefore, in measuring the liability, market and non-vesting conditions are taken into account in measuring its fair value and the number of awards to receive cash is adjusted to reflect the best es timate of those expected to vest as a result of satisfying service and any non-market performance conditions. The Group has assessed that the amendment to IFRS 2 will not have a significant impact on the Group as market and non-vesting conditions are being taken into account in measuring its fair value and the number of awards to receive cash is already adjusted to reflect the best estimate of those expected to vest as a result of satisfying service and any non-market performance conditions. IFRS 9 Financia l Instruments (Effective date 1 July 2018) The standard sets out requirements for recognising and measuring financial instruments and super s edes IAS 39 Financial Instruments . It contains new criteria for determining the classification of financial instruments which is based on the business model of the entity and the nature of cash flows. In addition, the financial instruments impairment model has been changed from an “incurr ed loss” model in IAS 39 to an “expected credit loss” model in IFRS 9. The resultant effect being that it will no longer be necessary for a loss event to occur before an impairment loss is recognised. The G roup has assessed that the following changes will occur as a result: • The new classification if applied at 30 June 2018 would not have a significant impact on the accounting of financial assets and financial liabilities. Investment in other entities (equity instruments) will be designated at fair value through other comprehensive income; and • The method of determining impairment of long - term and other receivables will have to change to reflect the “expected credit loss” model. Management has made an assessment of the magnitude of the changes to the impa irment model. This is not expected to have a significant impact. IFRS 15 Revenue from contracts with customers (Effective date 1 July 2018) The standard contains a single model that applies to contracts with customers superseding the revenue standard IAS 18 Revenue and IAS 11 Construction contracts . It contains two approaches to recognising revenue: at a point in time or over time. The model f eatures a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. The standard also introduces new qualitative and quantitative disclosures related to customer contracts and significant judgements ap plied. The G roup has assessed that there will be no impact on adopting IFRS 15, and revenue recognition will remain unchanged as follows: • Rand Refinery is assessed as being an agent, selling gold and silver on behalf of the Group; • Revenue is recognised on the date that control of gold and silver pass to the buyer , which is the date on which Rand Refinery sells the gold on the Group ’s behal f. • This is the same date as when significant risks and rewards passes under IAS 18 Revenue . IFRS 16 Leases (Effective date 1 July 2019) The standard sets out the principles for recognition, measurement, presentation and disclosure of leases for both par ties to a contract, i.e the customer (“lessee”) and the supplier (“lessor”). The standard supersedes the current leases standard IAS 17 Leases. The standard has one model for lessees which contains increased focus on the assessment of whether a transaction is a lease. Lessees will now recognise most leases on the statement of financial position. No significant changes have been included for lessors. The G roup has commenced with analysing each contract included in the register of contracts compiled by the procurement department in order to assess whether these contain a lease and the impact that the standard will have on the Group . |
Revenue | 4 REVENUE ACCOUNTING POLICIES Revenue comprise the sale of gold bullion and silver bullion (produced as a by-product). Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue can be reliably measured. Revenue is stated at the fair value of the consideration received or receivable, which is based on the afternoon London Bul lion Market fixing price on the date the significant risks and rewards of ownership have been transferred to the buyer. The significant risks and rewards of ownership transfer to the buyer when Rand Refinery Limited (“Rand Refinery“), acting as an agent f or the sale of all gold produced by the Group, delivers the gold to the buyer and the sales price is fixed, as evidenced by the certificate of sale. |
Other Income | 5 .2 OTHER INCOME ACCOUNTING POLICIES Income is recognised where it is probable that the economic benefits associated with a transaction will flow to the Group and they can be reliably measured. Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include gains or losses on disposal of property, plant and equipment. |
Finance income and expense | 6 FINANCE INCOME ACCOUNTING POLICY Finance income includes interest received , growth in the environmental rehabilitation obligation funds and the unwinding of the long-term receivable . 7 FINANCE EXPENSE ACCOUNTING POLICY Finance expenses comprise interest payable on financial instruments measured at amortised cost calculated using the effective interest method, unwinding of the provision for environmental rehabilitation , interest on finance leases and the fair value adjustment on the initial recognition of the long-term receivable . |
Property, plant and equipment | 9 PROPERTY, PLANT AND EQUIPMENT SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Impairment of property, plant and equipment The recoverable amount of the cash-generating-unit is determined using discounted future cash flows based on the life-of-mine plan. These calculations require the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include the market capitalisation of the Group, mineral reserves and resource estimates, production estimates, spot and future gold prices, foreign currency exchange rates, discount rates, estimates of costs to prod uce and future capital expenditure in determining the recoverable amount. At year-end, the market capitalisation of the Group was higher than its net asset value. The decline in the rand gold price was however considered as an impairment indicator. The G roup has only one cash generating unit ("CGU") and calculated a recoverable amount based on updated life-of-mine plans, a n average gold price of R 5 50 411 per kilogram in year one escalating at an average of approximately 5. 8 % a year over the twelve-year li fe of mine, and a weighted average cost of capital of 1 1 . 2 % . Sensitivity analysis The Group would begin impairment of the mining assets if the discount rate were to increase from 1 1 . 2 % to 2 1 . 4 %, or a 4 .1 % decrease in budgeted gold production or the rand go ld price over the remaining life of the operation. The above sensitivities do not include a positive terminal value, relating to the disposal of any assets at the end of the useful life . Depreciation The calculation of the units-of-production rate of depreciation could be affected if actual production in the future varies significantly from current forecast production. This would generally arise when there are significant changes in any of the factors or assumptions used in estimating mineral reserves and resources. These factors could include: • changes in mineral reserves and resources; • the grade of mineral reserves and resources may vary from time to time; • differences between actual commodity pr ices and commodity price assumptions; • unforeseen operational issues at mine sites including planned extraction efficiencies; and • changes in capital, operating, mining processing and reclamation costs, discount rates and foreign exchange rates . Mineral reserves and resources estimates The Group is required to determine and report mineral reserves and resources in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). In orde r to calculate mineral reserves and resources, estimates and assumptions are required about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, tra nsport costs, commodity demand, commodity prices and exchange rates. Estimating the quantity and/or grade of mineral reserves and resources requires the size, shape and depth of reclamation sites to be determined by analysing geological data such as the l ogging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data. Because the assumptions used to estimate mineral reserves and resources change from period to period and bec ause additional geological data is generated during the course of operations, estimates of mineral reserves and resources may change from period to period. Mineral reserves and resource estimates prepared by management are reviewed by an independent miner al resources expert. Changes in reported mineral reserves and resources may affect the Group’s life-of-mine plan, financial results and financial position in a number of ways including the following: • asset carrying values may be affected due to changes in estimated future cash flows; • depreciation charged to profit or loss may change where such charges are determined by the units-of-production method, or where the useful lives of assets change; • decommissioning, site restoration and environment al provisions may change where changes in estimated mineral reserves and resources affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of t he likely recovery of the tax benefits and charges. 9 PROPERTY, PLANT AND EQUIPMENT continued ACCOUNTING POLICIES Recognition and measurement Property, plant and equipment comprise mine plant facilities and equipment, mine property and development (including mineral rights) and exploration assets. These assets (excluding exploration assets) are initially measured at cost, where after they are measured at cost less accumulated depreciation and accumulated impairment losses. Exploration assets are initially measured at cost, where after they are measured at cost less impairment losses . Cost includes expenditure that is directly attributable to the acquisition or construction of the asset, as well as the costs of dismantling and removing an asset and restoring the site o n which it is located. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of th e item can be measured reliably. Exploration and evaluation costs are capitalised as exploration assets on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. Depreciation Depreciation of mine plant facilities and equipment, as well as mining property and development (including mineral rights) are calculated using the units of production method which is based on the life-of-mine of each site. The life-of-mine is primarily based on proved an d probable mineral reserves and may include some resources. It reflects the estimated quantities of economically recoverable gold that can be recovered from reclamation sites based on the gold price estimated at the end of the financial year. Changes in th e life-of-mine will impact depreciation on a prospective basis. The life-of-mine is prepared using a methodology that takes account of current information to assess the economically recoverable gold from specific reclamation sites and includes the consider ation of historical experience. The depreciation method , estimated useful lives and residual values are reassessed annually and adjusted if appropriate. Any changes to useful lives may affect prospective depreciation rates and asset carrying values. The cu rrent estimated useful lives for mine property and development, as well as mine plant facilities and equipment are based on the life-of-mine of each site, currently between four (2017: two ; 2016: six ) and 12 (2017: 1 2; 2016: 10 ) years . Impairment Non-finan cial assets The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. I f any such indication exists, the asset’s recoverable amount is estimated. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Each metallurgical plant or combinat ion of plants that, together with its deposition facility, is capable of operating independently is considered to be a CGU . The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing val ue in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized in prof it or loss if the carrying amount of an asset or CGU exceeds its recoverable amount . Exploration assets Exploration assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the recoverable amount. When a licens e is relinquished or a project is abandoned, the related costs are recognised in profit or loss immediately. Leased assets Upon initial recognition, the leased asset are measured at amounts equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in the same manner as owned property, plant and equipment. Finance lease payments Minimum lease payments are apportioned between the finance charge a nd the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Provision for environmental rehabilitation | 10 PROVISION FOR ENVIRONMENTAL REHABILITATION SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Estimates of future environmental rehabilitation costs are determined with the assistance of an independent expert and are based on the Group’s environmental management plans which are developed in accordance with regulatory requirements, the life-of-mine plan and the planned method of rehabilitation which is influenced by developments in trends and technology. An average discount rate of 8. 5 % (2017: 8.8 %), average inflation rate of 5. 7 % (2017: 5.9 %) and the discount periods as per the expected life-of-min e were used in the calculation of the estimated net present value of the rehabilitation liability . ACCOUNTING POLICIES The net present value of the estimated rehabilitation cost as at reporting date is provided for in full. These estimates are reviewed ann ually and are discounted using a pre-tax risk-free rate that is adjusted to reflect the current market assessments of the time value of money and the risks specific to the obligation. Annual changes in the provision consist of financing expenses relating to the change in the present value of the provision and inflationary increases in the provision, as well as changes in estimates. The present value of dismantling and removing the asset created before production commenced (decommissioning liabilities) are capitalised to property, plant and equipment against an increase in the rehabilitation provision. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised in profit or loss. If the asset value is increased and ther e is an indication that the revised carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy dealing with impairments of property, plant and equipment. Over time, the liability is increased to reflect an i nterest element, and the capitalised cost is depreciated over the life of the related asset. Cash costs incurred to rehabilitate these disturbances are charged to the provision and are presented as investing activities in the statement of cash flows. The present value of environmental rehabilitation costs relating to activities after production commenced (restoration liabilities) as well as changes therein are expensed as incurred and presented as operating costs. Cash costs incurred to rehabilitate these disturbances are presented as operating activities in the statement of cash flows.The cost of ongoing rehabilitation is recognised in profit or loss as incurred . |
Investments of rehabilitation obligation funds | 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trust funds Cash and cash equivalents in environmental rehabilitation trust funds comprise low-risk, interest-bearing cash and cash equivalents and are non-derivative financial assets categorised as loans and receivables. Reimbursive right for environmental rehabilitation guarantees Funds held in the cell captive that secure the environmental re habilitation guarantees issued are recognised as a right to receive a reimbursement and is measured at the lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. |
Cash and cash equivalents | 12 CASH AND CASH EQUIVALENTS ACCOUNTING POLICIES Cash and cash equivalents are non-derivative financial assets categorised as loans and receivables and comprise cash on hand, demand deposits, and highly liquid investments which are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash and cash equivalents are initially measu red at fair value. Subsequent to initial recognition, cash and cash equivalents are measured at amortised cost, which is equivalent to their fair value. |
Trade and other receivables | 14 TRADE AND OTHER RECEIVABLES ACCOUNTING POLICIES Trade and other receivables, excluding Value Added Tax and prepayments , are non-derivative financial assets categorised as loans and receivables. These assets are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method less any impairment losses . The Group derecognises a financial asset when the co ntractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neith er transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability. Impairment A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of a debtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Any impairment losses are recognise d in the statement of profit or loss. |
Trade and other payables | 15 TRADE AND OTHER PAYABLES ACCOUNTING POLICIES Trade and other payables, excluding payroll accruals, accrued leave pay and provision for performance based incentives, are non-derivative financial liabilities categorised as financial liabilities measured at amortised cost. These liabilities are initially measured at fair value plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest m ethod. The Group derecognises a financial liability when its contractual rights are discharged, or cancelled or expire. Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be pa id if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
Inventories | 16 INVENTORIES ACCOUNTING POLICIES Gold in process is stated at the lower of cost and net realisable value. Costs are assigned to gold in process on a weighted average cost basis. Costs comprise all costs incurred to the stage immediately prior to smelting, including costs of extraction and processing as they are reliably measurable at that point. Gold b ullion is stated at the lower of cost and net realisable value. Selling and general administration costs are excluded from inventory valuation. Consumable stores are stated at cost less allowances for obsolescence. Cost of consumables is based on the weigh ted average cost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cos t of completion and selling expenses . |
Income tax | 17 INCOME TAX SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Management periodically evaluates positions taken where tax regulations are subject to interpretation. This includes the treatment of Ergo as a single mining operation pursuant to the relevant ring-fencing legislation. The deferred tax liability is calcula ted by applying a forecast weighted average tax rate that is based on a prescribed formula. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates and are inherently uncertain and could change materially ove r time. These assumptions and estimates include expected future profitability and timing of the reversal of the temporary differences. Due to the forecast weighted average tax rate being based on a prescribed formula that increases the effective tax rate w ith an increase in forecast future profitability, and vice versa , the tax rate can vary significantly year on year and can move contrary to current period financial performance. A 100 basis points increase in the effective tax rate will result in an increa se in the net deferred tax liability at June 30, 2018 of approximately R 8 . 0 million (2017: R7. 4 million; 2016: R8.1 million). The assessment of the probability that future taxable profits will be available against which the tax losses and unredeemed capita l expenditure can be utilised requires the use of assumptions and estimates and are inherently uncertain and could change materially over time. C apital expenditure is assessed by the South African Receiver of Revenue when it is redeemed against taxable min ing income rather than when it is incurred. A different interpretation by the South African Receiver of Revenue regarding the deductibility of these capital allowances may therefore become evident subsequent to the year of assessment when the capital expen diture is incurred. ACCOUNTING POLICIES Income tax expense comprises current and deferred tax. Each company is taxed as a separate entity and tax is not set-off between the companies. Current tax Current tax comprise the expected tax payable or receivable on the taxable income or loss for the year and any adjustment on tax payable or receivable in respect of the previous year is recognised in profit or loss except to the extent that it relates to items recogni sed directly in equity or OCI. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date . Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amoun ts and the tax bases of assets and liabilities. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit. Deferred tax asse ts relating to unutilised tax losses and unutilised capital allowances are recognised to the extent that it is probable that future taxable profits will be available against which the unutilised tax losses and unutilised capital allowances can be utilised. The recoverability of these assets is reviewed at each reporting date and adjusted if recovery is no longer probable. Deferred tax related to gold mining income is measured at a forecast weighted average tax rate that is expected to be applied to temporar y differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. |
Employee benefits | 18 EMPLOYEE BENEFITS ACCOUNTING POLICIES Cash-settled share-based payments (“Long-Term Incentive” or “LTI”) Cash-settled share-based payments are measured at fair value and remeasured at each reporting date to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment in profit or loss. Vesting assumptions for non-ma rket conditions are reviewed at each reporting date to ensure they reflect current expectations. Post-retirement medical benefit The Group's net obligation in respect of long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine the present value. Remeasurements are recognised in profit or loss in the period in which they arise. |
Ordinary share capital | 20 EQUITY Ordinary share capital Ordinary shares and the cumulative preference shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effect. |
Repurchase and reissue of ordinary shares (treasury shares) | Repurchase and reissue of ordinary shares (treasury shares) When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from share capital. |
Dividends | Dividends Dividends are recognised as a liability on the date on which they are declared which is the date when the share holders’ right to the dividends vest. |
Operating Segments | 21 OPERATING SEGMENTS ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (CODM) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational str ucture and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants that, together with its deposition facility, is capable of operating independently. When assessing profitability, the CODM considers , inter alia , the revenue and production costs of each segment. The net of these amounts is the operating profit or loss. Therefore, operating profit has been disclosed in the segment report as the primary measure of profit or loss. The CODM also considered other costs that, in addition to the operating profit or loss, result in the working profit or loss. |
Interest in subsidiaries | 22 INTEREST IN SUBSIDIARIES ACCOUNTING POLICIES Significant subsidiaries of the Group are those subsidiaries with the most significant contribution to the Group's profit or loss or assets. |
Financial assets | 24 FINANCIAL ASSETS SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment to define the accounting policy and subsequent classification of the long-term receivable requires the exercise of significant jud gement of the outcome of future events that are not wholly under the control of the Group. The judicial proceedings that impacts on the long-term receivable are inherently complex legal issues that are subject to uncertainties and complexities and are sub ject to interpretation. SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The fair value determination of the long-term receivable is determined using assumptions and estimates that are inherently uncertain and can change materially over time. These assump tions and estimates include estimating the timing of concluding on the main application, the ultimate settlement terms, the discount rate applied and the credit risk assessment for impairment purposes . ACCOUNTING POLICIES Investment in other entities The G roup’s listed and unlisted investments in equity securities are classified as available-for-sale financial assets. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition they are measured at fair value and changes therein, other than impairment losses, are recognised in OCI . Long - term receivable The long-term receivable is a non-derivative financial asset categorised as loans and receivables. The asset is initially measured at fair value and any difference between the face value of payments made and the fair value of the long-term receivable on initial recognition are recognised in profit or loss as a finance expense. Subsequent to initial rec ognition, the long-term receivable is measured at amortised cost using the effective interest method less any impairment losses. Unwinding of the carrying value is accounted for as a finance income. Impairment A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of a debtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be im paired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Any impairment losses are recognised in the statement of profit or loss . |
Assets and liabilities classified as held for sale | 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether the disposal is highly probable requires the exercise of significant judgement and estimates of the outcome of future events that are not wholly within the control of the Group . ACCOUNTING POLICIES Non-current assets or disposal groups, comprising non-current asset s and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than continuing use. Such assets or disposal groups are measured at the lower of their carrying amount and fair value less cost to sell. Impairment losses on initial application as held for sale and subsequent gains and losses on re-measurement are recognised in profit or loss. Non-current assets and disposal groups cease to be classified as held for sale if it is not highly p robable that they will be recovered primarily through sale rather than continuing use. Such assets that cease to be classified as held for sale are measured at the lower of their carrying amount before such assets were classified as held for sale, adjusted for any depreciation that would have been recognised had such assets not been classified as held for sale, and their recoverable amount at the date of the subsequent decision not to sell . |
Contingent liabilities | 25 CONTINGENT ASSETS AND LIABILITIES SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether an obligating event results in a liability or a contingent liability require the exercise of significant judgement of the outcome of future events that are not wholly within the control of the Group. Litigation and other judicial proceedings inherently entail complex legal issues that are subject to uncertainties and complexities and are subject to interpretation. ACCOUNTING POLICIES A contingent liability is a possible obligation arising from past events and whose existen ce will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and th e Group can reliably measure the obligation, a provision is recognised. |
IFRS 2 [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New standards, amendments to standards and interpretations not yet adopted | IFRS 2 Share-based payment amendments (Effective date 1 July 2018) Measurement of cash-settled share-based payments – There is currently no guidance in IFRS 2 on how to measure the fair value of the liability in a cash-settled share based payment. The amendments clarify that a cash-settled share-based payment is measured using the same approach as for equity-settled sha re-based payments – i.e. the modified grant date method. Therefore, in measuring the liability, market and non-vesting conditions are taken into account in measuring its fair value and the number of awards to receive cash is adjusted to reflect the best es timate of those expected to vest as a result of satisfying service and any non-market performance conditions. The Group has assessed that the amendment to IFRS 2 will not have a significant impact on the Group as market and non-vesting conditions are being taken into account in measuring its fair value and the number of awards to receive cash is already adjusted to reflect the best estimate of those expected to vest as a result of satisfying service and any non-market performance conditions. |
IFRS 9 Financial Instruments [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New standards, amendments to standards and interpretations not yet adopted | IFRS 9 Financia l Instruments (Effective date 1 July 2018) The standard sets out requirements for recognising and measuring financial instruments and super s edes IAS 39 Financial Instruments . It contains new criteria for determining the classification of financial instruments which is based on the business model of the entity and the nature of cash flows. In addition, the financial instruments impairment model has been changed from an “incurr ed loss” model in IAS 39 to an “expected credit loss” model in IFRS 9. The resultant effect being that it will no longer be necessary for a loss event to occur before an impairment loss is recognised. The G roup has assessed that the following changes will occur as a result: • The new classification if applied at 30 June 2018 would not have a significant impact on the accounting of financial assets and financial liabilities. Investment in other entities (equity instruments) will be designated at fair value through other comprehensive income; and • The method of determining impairment of long - term and other receivables will have to change to reflect the “expected credit loss” model. Management has made an assessment of the magnitude of the changes to the impa irment model. This is not expected to have a significant impact. |
IFRS 15 Revenue from contracts with customers [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New standards, amendments to standards and interpretations not yet adopted | IFRS 15 Revenue from contracts with customers (Effective date 1 July 2018) The standard contains a single model that applies to contracts with customers superseding the revenue standard IAS 18 Revenue and IAS 11 Construction contracts . It contains two approaches to recognising revenue: at a point in time or over time. The model f eatures a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. The standard also introduces new qualitative and quantitative disclosures related to customer contracts and significant judgements ap plied. The G roup has assessed that there will be no impact on adopting IFRS 15, and revenue recognition will remain unchanged as follows: • Rand Refinery is assessed as being an agent, selling gold and silver on behalf of the Group; • Revenue is recognised on the date that control of gold and silver pass to the buyer , which is the date on which Rand Refinery sells the gold on the Group ’s behal f. • This is the same date as when significant risks and rewards passes under IAS 18 Revenue . |
IFRS 16 Leases [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New standards, amendments to standards and interpretations not yet adopted | IFRS 16 Leases (Effective date 1 July 2019) The standard sets out the principles for recognition, measurement, presentation and disclosure of leases for both par ties to a contract, i.e the customer (“lessee”) and the supplier (“lessor”). The standard supersedes the current leases standard IAS 17 Leases. The standard has one model for lessees which contains increased focus on the assessment of whether a transaction is a lease. Lessees will now recognise most leases on the statement of financial position. No significant changes have been included for lessors. The G roup has commenced with analysing each contract included in the register of contracts compiled by the procurement department in order to assess whether these contain a lease and the impact that the standard will have on the Group . |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
Schedule of Revenue | 4 REVENUE Amounts in R million 2018 2017 2016 Gold revenue 2 486.4 2 336.1 2 429.7 Silver revenue 4.0 3.8 3.4 Total revenue 2 490.4 2 339.9 2 433.1 |
Schedule of Market Risk | Amounts in R million 2018 2017 2016 10% increase in the Rand gold price 249.0 234.0 243.3 10% decrease in the Rand gold price (249.0) (234.0) (243.3) |
RESULTS FROM OPERATING ACTIVI_2
RESULTS FROM OPERATING ACTIVITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Operating Activities [Abstract] | |
Cost of Sales | 5 RESULTS FROM OPERATING ACTIVITIES 5.1 COST OF SALES Amounts in R million Note 2018 2017 2016 Cost of sales (2 347.7) (2 307.9) (2 236.8) Operating costs (a) (2 207.1) (2 109.3) (2 030.2) Movement in gold in process and finished stock 24.5 4.8 (7.1) Depreciation 9 (168.0) (179.8) (180.2) Change in estimate of environmental rehabilitation 10 2.9 (0.6) (19.3) Retrenchment costs - (23.0) - (a) Operating costs The most significant components of operating costs include: Materials (784.6) (783.9) (719.5) Labour including short term incentives, excluding retrenchment costs (417.4) (351.0) (362.1) Electricity (369.0) (344.2) (325.4) Specialist service providers (326.9) (299.7) (282.4) Water (49.9) (71.1) (82.1) |
Other Income | 5 .2 OTHER INCOME Amounts in R million 2018 2017 2016 Profit on disposal of property, plant and equipment - 12.9 10.5 - 12.9 10.5 |
Administration Expenses and Other costs | 5.3 ADMINISTRATION EXPENSES AND OTHER COSTS Amounts in R million Note 2018 2017 2016 Included in administration expenses and other costs is the following: Increase in Long-Term Incentive ("LTI") liability 18.1 (17.2) (10.0) (29.9) Transactions costs incurred related to the acquisition of FWGR 28 (9.0) - - Loss on disposal of property, plant and equipment (0.6) - - |
FINANCE INCOME (Tables)
FINANCE INCOME (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Analysis Of Income And Expense [Abstract] | |
Details of finance income [text block] | 6 FINANCE INCOME Amounts in R million Note 2018 2017 2016 Interest on loans and receivables 12 21.8 23.6 22.3 Growth in environmental rehabilitation trust funds 11, 23 7.5 7.5 6.5 Growth in reimbursive right 11 8.8 8.9 8.0 Unwinding of long-term receivable 24.2 0.7 - - 38.8 40.0 36.8 |
FINANCE EXPENSE (Table)
FINANCE EXPENSE (Table) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of finance expense [abstract] | |
Disclosure of finance cost [text block] | 7 FINANCE EXPENSE Amounts in R million Note 2018 2017 2016 Unwinding of provision for environmental rehabilitation 10, 23 (45.6) (46.5) (43.0) Fair value adjustment on initial recognition of long-term receivable 24.2 (8.8) - - Other finance expenses (4.0) (5.7) (4.6) (58.4) (52.2) (47.6) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Earnings Per Share | 8 EARNINGS PER SHARE Amounts in R million 2018 2017 2016 Basic earnings The calculation of earnings per ordinary share is based on the following: Profit for the year 6.5 13.7 61.9 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Number of shares 2018 2017 2016 Weighted average number of ordinary shares in issue 422 068 696 422 068 696 422 157 987 Number of staff options - - 34 075 Diluted weighted average number of ordinary shares 422 068 696 422 068 696 422 192 062 SA cents per share 2018 2017 2016 Basic earnings per share 1.5 3.2 14.7 Diluted earnings per share 1.5 3.2 14.7 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | 9 PROPERTY, PLANT AND EQUIPMENT continued Amounts in R million Note Mine plant facilities and equipment (a) Mine property and development Exploration assets Total 30 June 2018 Cost 1 689.5 1 264.5 77.3 3 031.3 Opening balance 1 667.6 1 230.0 77.4 2 975.0 Additions 82.5 40.2 3.4 126.1 Disposals (56.3) (17.4) - (73.7) Change in estimate of decommissioning asset 10 (4.3) 11.7 (3.5) 3.9 Accumulated depreciation and impairment (815.4) (753.5) (9.7) (1 578.6) Opening balance (760.8) (706.9) (9.7) (1 477.4) Depreciation 5.1 (104.3) (63.7) - (168.0) Disposals 49.7 17.1 - 66.8 Carrying value 874.1 511.0 67.6 1 452.7 30 June 2017 Cost 1 667.6 1 230.0 77.4 2 975.0 Opening balance 1 519.5 1 310.4 74.9 2 904.8 Additions 37.6 65.3 13.4 116.3 Disposals (2.8) (3.9) - (6.7) Change in estimate of decommissioning asset 10 27.0 (60.9) (0.5) (34.4) Transfers between classes of property, plant and equipment 92.1 (81.7) (10.4) - Transferred from non-current assets held for sale 23 - 0.8 - 0.8 Transferred to inventory (5.8) - - (5.8) Accumulated depreciation and impairment (760.8) (706.9) (9.7) (1 477.4) Opening balance (598.7) (693.2) (12.4) (1 304.3) Depreciation 5.1 (108.7) (71.1) - (179.8) Disposals 2.8 3.9 - 6.7 Transfers between classes of property, plant and equipment (56.2) 53.5 2.7 - Carrying value 906.8 523.1 67.7 1 497.6 |
Disclosure of commitments [text block] | CONTRACTUAL COMMITMENTS Amounts in R million 2018 2017 Contracted for but not provided for in the consolidated financial statements 32.7 11.2 |
PROVISION FOR ENVIRONMENTAL R_2
PROVISION FOR ENVIRONMENTAL REHABILITATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Provision for decommissioning restoration and rehabilitation costs [text block] | 10 PROVISION FOR ENVIRONMENTAL REHABILITATION Amounts in R million Note 2018 2017 Opening balance 531.7 522.9 Unwinding of provision 7 45.6 45.3 Change in estimate of environmental rehabilitation recognised in profit or loss 5.1 (2.9) 0.6 Change in estimate of environmental rehabilitation recognised to decommissioning asset 9 3.9 (34.4) Environmental rehabilitation payments (24.9) (19.5) To reduce decommissioning liabilities (21.5) (11.6) To reduce restoration liabilities 13 (3.4) (7.9) Transferred from non-current liabilities held for sale 23 - 16.8 Closing balance 553.4 531.7 Environmental rehabilitation payments to reduce the liability (24.9) (19.5) Ongoing rehabilitation expenditure * 21 (26.7) (22.4) Total cash spent on environmental rehabilitation (51.6) (41.9) * The Group also performs ongoing environmental rehabilitation arising from its current activities concurrently with production. These costs do not represent a reduction of the above liability and are expensed as operating costs. |
INVESTMENTS IN REHABILITATION_2
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of investments in rehabilitation obligation funds [Abstract] | |
Sensitivity analysis for types of market risk [text block] | 11 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS Amounts in R million Note 2018 2017 Cash and cash equivalents in environmental rehabilitation trust funds 118.0 110.5 Opening balance 110.5 93.8 Transferred from non-current assets held-for-sale 23 - 9.9 Growth 6 7.5 6.8 Reimbursive right for environmental rehabilitation guarantees 126.0 117.2 Opening balance 117.2 108.3 Growth 6 8.8 8.9 244.0 227.7 Amounts in R million 2018 2017 100bp increase 1.2 1.1 100bp (decrease) (1.2) (1.1) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash and cash equivalents [abstract] | |
Sensitivity analysis for types of market risk cash [text block] | 12 CASH AND CASH EQUIVALENTS Amounts in R million 2018 2017 100bp increase 3.0 2.5 100bp (decrease) (3.0) (2.5) |
CASH GENERATED BY OPERATIONS (T
CASH GENERATED BY OPERATIONS (Tabels) | 12 Months Ended |
Jun. 30, 2018 | |
Cash flows from (used in) operating activities [abstract] | |
Dislcosure of cash generated by operations | 13 CASH GENERATED BY OPERATIONS Amounts in R million Note 2018 2017 2016 Profit/(loss) before tax 32.4 (36.7) 108.8 Adjusted for Depreciation 9 168.0 179.8 180.2 Movement in gold in process and finished stock 5.1 (24.5) (4.8) 7.1 Change in estimate of environmental rehabilitation 10, 23 (2.9) 0.6 19.3 Environmental rehabilitation payments 10, 23 (3.4) (7.9) (11.2) Increase in long-term incentive liability 18.1 17.2 10.0 29.9 Profit on disposal of property, plant and equipment 5.2 - (12.9) (10.5) Loss on disposal of property, plant and equipment 5.3 0.6 - - Reversal of accrual - - (22.7) Finance income 6 (38.8) (40.0) (36.8) Finance expense 7 58.4 52.2 47.6 Other non-cash items 1.3 (1.0) 4.6 Operating cash flows before working capital changes 208.3 139.3 316.3 Working capital changes 14.6 (117.8) 81.9 Change in trade and other receivables 22.2 (57.6) 33.7 Change in long-term receivable 24.2 (27.4) - - Change in inventories (28.2) (14.8) 1.0 Change in trade and other payables and employee benefits 48.0 (45.4) 47.2 Cash generated by operations 222.9 21.5 398.2 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tabels) | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information of trade and other receivables explanatory [table text block] | 14 TRADE AND OTHER RECEIVABLES Amounts in R million 2018 2017 Trade receivables 0.6 34.5 Value Added Tax 46.8 50.8 Other receivables 40.8 35.7 Prepayments 12.2 3.0 Allowance for impairment (9.2) (9.7) 91.2 114.3 |
Disclosure of impairment loss and reversal of impairment loss [text block] | Ageing of trade receivables and other receivables: Amounts in R million 2018 2017 Receivables that are past due but not impaired at 30 June 15.3 10.4 Receivables that are past due and impaired at 30 June 9.2 9.7 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [text block] | Amounts in R million 2018 2017 Balance at 1 July (9.7) (11.1) Net of impairments raised and bad debt recovered 0.5 1.4 Balance at 30 June (9.2) (9.7) |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables [abstract] | |
Disclosure of detailed information of trade and other payables explanatory [table text block] | 15 TRADE AND OTHER PAYABLES Amounts in R million 2018 2017 Trade payables and accruals 227.0 200.9 Accrued leave pay 32.9 30.8 Provision for performance based incentives 24.7 2.2 Payroll accruals 18.7 17.9 303.3 251.8 Interest relating to trade payables and accruals included in profit or loss (1.5) (2.7) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Classes of current inventories [abstract] | |
Disclosure of detailed information about inventories explanatory [table text block] | 16 INVENTORIES Amounts in R million 2018 2017 Consumable stores 129.0 101.9 Gold in process 66.2 55.1 Finished stock - Gold Bullion 37.8 23.3 Total inventories 233.0 180.3 Inventory carried at net realisable value includes: Gold in process - 45.3 Finished stock - Gold Bullion - 19.3 Write down to net realisable value included in movement in gold in process and finished stock - 10.2 |
INCOME TAX EXPENSE (Table)
INCOME TAX EXPENSE (Table) | 12 Months Ended |
Jun. 30, 2018 | |
Major components of tax expense (income) [abstract] | |
Deferred tax assets and liabilities | 17 INCOME TAX continued 17.2 DEFERRED TAX Deferred tax assets and liabilities relate to the following: Amounts in R million 2018 2017 Deferred tax asset Provisions 8.7 5.0 8.7 5.0 Deferred tax liability Property, plant and equipment (261.5) (223.8) Provisions, including rehabilitation provision 95.0 80.2 Other temporary differences (1) 2.8 3.1 (163.7) (140.5) Net deferred mining and income tax liability (155.0) (135.5) Movement in the net deferred tax liability is as follows: Amounts in R million 2018 2017 Opening balance (135.5) (187.9) Recognised in profit or loss (19.5) 52.4 Property, plant and equipment (37.7) 83.1 Provisions, including rehabilitation provision 18.5 (29.4) Other temporary differences (1) (0.3) (1.3) Closing balance (155.0) (135.5) (1) Includes the temporary differences on the finance lease obligation. Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2018 2017 Tax losses 37.3 20.5 Unredeemed capital expenditure 272.9 272.9 Capital losses 330.0 325.2 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Employee benefits [Abstract] | |
Liability for long term incentives and post retirement benefits | 18 EMPLOYEE BENEFITS Amounts in R million Note 2018 2017 Non-current employee benefits 40.6 39.0 Liability for long term incentive scheme 18.1 31.9 30.7 Liability for post-retirement medical benefits* 8.7 8.3 Current employee benefits 13.2 - Liability for long term incentive scheme 18.1 13.2 - 53.8 39.0 * Unfunded medical aid benefit plan |
Liability for long term incentive scheme | Amounts in R million Note 2018 2017 Movement in the total liability Opening balance 30.7 30.3 Increase in long-term incentive liability 5.3 17.2 10.0 Vested and paid (2.8) (9.6) Total liability for long-term incentive scheme 45.1 30.7 The total liability for long-term incentive scheme is expected to be settled as follows: 45.1 30.7 Within 12 months after reporting date 13.2 - After 12 months after reporting date 31.9 30.7 |
Ageing of outstanding phantom shares | Ageing of outstanding phantom shares: 30 June 2019 30 June 2020 30 June 2021 Total Granted November 2015 4 037 893 6 056 840 10 094 734 20 189 467 |
Fair value of long term incentive scheme liability | 2018 2017 Grant date 7 day VWAP of the DRDGOLD Limited share 3.71 4.23 2.26 Annualised forward dividend yield 1.8% 0.7% 4.3% |
Key management personnel remuneration | Key management personnel remuneration Amounts in R million Note 2018 2017 2016 - Board fees paid 5.6 5.0 3.7 - Salaries paid 53.6 52.9 51.5 - Short term incentives relating to this cycle 22.5 - 33.8 - Long term incentives paid during this cycle 18.1 2.8 9.6 3.9 - Pre-tax gain on share option exercised - - 1.7 84.5 67.5 94.6 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Reconciliation of outstanding phantom shares | Reconciliation of outstanding phantom shares 2018 2017 Weighted Weighted average average Shares price Shares price Number R per share Number R per share Opening balance 21 144 534 23 169 191 Vested and paid (955 067) 2.93 (1 502 747) 6.39 Forfeited/lapsed - (521 910) Closing balance 20 189 467 21 144 534 |
Phantom shares [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Reconciliation of outstanding phantom shares | Reconciliation of outstanding phantom shares 2018 2017 Weighted Weighted average average Shares price Shares price Number R per share Number R per share Opening balance 21 144 534 23 169 191 Vested and paid (955 067) 2.93 (1 502 747) 6.39 Forfeited/lapsed - (521 910) Closing balance 20 189 467 21 144 534 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [abstract] | |
Equity table | 20 EQUITY Amounts in R million 2018 2017 2016 Authorised share capital 1 500 000 000 (2017 and 2016: 600 000 000) ordinary shares of no par value 5 000 000 (2017 and 2016: 5 000 000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 431 429 767 (2017 and 2016: 431 429 767) ordinary shares of no par value (a,b) 4 227.9 4 227.9 4 227.9 9 361 071 (2017 and 2016: 9 361 071) treasury shares held within the Group (c) (50.7) (50.7) (50.7) 5 000 000 (2017 and 2016: 5 000 000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 4 177.7 4 177.7 4 177.7 Dividends (c) Dividends paid during the year net of treasury shares: Prior year final dividend: 5 SA cents per share (2017: 12 SA cents per share; 2016: 10 SA cents per share) 21.1 50.6 42.2 Interim dividends: 5 SA cents per share (2017: nil; 2016: 50 SA cents per share) 21.1 - 210.7 Total 42.2 50.6 252.9 |
OPERATING SGEMENTS (Tables)
OPERATING SGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Operating Segments [abstract] | |
Disclosure of operating segments Explanatory | 21 OPERATING SEGMENTS Other 2018 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 490.4 - 2 490.4 Cash operating costs (2 159.7) - (2 159.7) Movement in gold in process 24.5 - 24.5 Operating profit 355.2 - 355.2 Administration expenses and general costs (1) (11.5) (78.6) (90.1) Interest income (2) 9.5 12.3 21.8 Interest expense (3) (3.1) (1.0) (4.1) Current tax (2.9) (3.5) (6.4) Working profit/(loss) before capital expenditure 347.2 (70.8) 276.4 Additions to property, plant and equipment (125.2) (0.9) (126.1) Working profit/(loss) after capital expenditure 222.0 (71.7) 150.3 (1) Administration expenses and general costs excludes loss on disposal of property, plant and equipment (2) Interest income excludes the unwinding of the long-term receivable (3) Interest expense excludes the fair value adjustment on the initial recognition of the long-term receivable Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 347.2 (70.8) 276.4 - Depreciation (167.4) (0.6) (168.0) - Movement in provision for environmental rehabilitation 2.5 0.4 2.9 - Growth in investment in environmental obligation funds 10.1 6.2 16.3 - Loss on disposal of property, plant and equipment (0.6) - (0.6) - Unwinding of provision for environmental rehabilitation (44.3) (1.3) (45.6) - Fair value adjustment on the initial recognition of long-term receivable including subsequent unwinding (8.1) - (8.1) - Ongoing rehabilitation expenditure (26.7) - (26.7) - Net other operating (costs)/income (36.2) 15.6 (20.6) - Deferred tax (23.2) 3.7 (19.5) Profit/(loss) for the year 53.3 (46.8) 6.5 Statement of cash flows Cash flows from operating activities 285.3 (51.5) 233.8 Cash flows from investing activities (140.2) (0.2) (140.4) Cash flows from financing activities (2.8) (42.2) (45.0) 21 OPERATING SEGMENTS continued Other 2017 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 339.9 - 2 339.9 Cash operating costs (2 087.9) - (2 087.9) Movement in gold in process 4.8 - 4.8 Operating profit 256.8 - 256.8 Interest income 6.8 16.8 23.6 Interest expense (3.3) (2.4) (5.7) Retrenchment costs (23.0) - (23.0) Administration expenses and general costs (4.5) (64.9) (69.4) Current tax (1.9) - (1.9) Working profit/(loss) before capital expenditure 230.9 (50.5) 180.4 Additions to property, plant and equipment (116.2) (0.1) (116.3) Additions to unlisted investments - (0.1) (0.1) Working profit/(loss) after capital expenditure 114.7 (50.7) 64.0 Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 230.9 (50.5) 180.4 - Depreciation (179.7) (0.1) (179.8) - Movement in provision for environmental rehabilitation (0.6) - (0.6) - Growth in environmental rehabilitation trust funds and reimbursive right 10.9 5.5 16.4 - Profit on disposal of property, plant and equipment 0.2 12.7 12.9 - Unwinding of provision for environmental rehabilitation (45.3) (1.2) (46.5) - Ongoing rehabilitation expenditure (22.4) - (22.4) - Net other operating (costs)/income (30.3) 31.3 1.0 - Deferred tax 54.2 (1.9) 52.3 Profit/(loss) for the year 17.9 (4.2) 13.7 Statement of cash flows Cash flows from operating activities 32.5 19.1 51.6 Cash flows from investing activities (116.6) 19.9 (96.7) Cash flows from financing activities (2.4) (50.6) (53.0) 21 OPERATING SEGMENTS continued Other 2016 reconciling Amounts in R million Ergo items Total Financial performance Revenue (External) 2 433.1 - 2 433.1 Cash operating costs (1 991.2) - (1 991.2) Movement in gold in process (7.1) - (7.1) Operating profit 434.8 - 434.8 Interest income 2.8 19.6 22.4 Interest expense (4.1) (0.5) (4.6) Administration expenses and general costs (4.5) (82.7) (87.2) Current tax (0.5) (5.1) (5.6) - - - Working profit/(loss) before capital expenditure 428.5 (68.7) 359.8 Additions to property, plant and equipment (100.0) - (100.0) Additions to listed investments - (1.3) (1.3) - - - Working profit/(loss) after capital expenditure 328.5 (70.0) 258.5 Reconciliation of profit/(loss) for the year Working profit/(loss) before capital expenditure 428.5 (68.7) 359.8 - Depreciation (180.1) (0.1) (180.2) - Movement in provision for environmental rehabilitation (21.4) 2.1 (19.3) - Growth in environmental rehabilitation trust funds and reimbursive right 9.8 4.7 14.5 - Profit on disposal of property, plant and equipment 9.3 1.2 10.5 - Unwinding of provision for environmental rehabilitation (41.5) (1.5) (43.0) - Ongoing rehabilitation expenditure (27.8) - (27.8) - Net other operating (costs)/income (29.6) 18.3 (11.3) - Deferred tax (46.9) 5.6 (41.3) Profit/(loss) for the year 100.3 (38.4) 61.9 Statement of cash flows Cash flows from operating activities 414.8 1.1 415.9 Cash flows from investing activities (105.6) (1.6) (107.2) Cash flows from financing activities (2.0) (279.1) (281.1) |
ASSETS AND LIABILITIES CLASSI_2
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (Table) | 12 Months Ended |
Jun. 30, 2018 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Assets and liabilities held for sale | 23 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE Amounts in R million Note 2018 2017 Assets held for sale Property, plant and equipment * - - Opening balance - 5.8 Transferred to property, plant and equipment 9 - (0.8) Disposal - (5.0) Non-current investments and other assets - - Opening balance - 9.2 Growth 6 - 0.7 Transferred to cash and cash equivalents in environmental rehabilitation trust funds 11 - (9.9) - - * Consists of land that is carried at cost and is not depreciated. Liabilities held for sale Provisions - - Opening balance - 15.6 Unwinding of provision 7 - 1.2 Transferred to provision for environmental rehabilitation 10 - (16.8) - - |
FINANCIAL ASSETS (Table)
FINANCIAL ASSETS (Table) | 12 Months Ended |
Jun. 30, 2018 | |
Financial assets other [abstract] | |
Financial assets other | 24 FINANCIAL ASSETS Amounts in R million Note 2018 2017 Investments in other entities 24.1 9.4 8.8 Long-term receivable 24.2 19.3 - Total financial assets 28.7 8.8 |
Investment in other entities | 24.1 INVESTMENTS IN OTHER ENTITIES Amounts in R million Shares held % held 2018 2017 Listed investments (Fair value hierarchy Level 1): 9.2 8.6 West Wits Mining Limited ("WWM") 47 812 500 6.7% 9.2 8.6 Unlisted investments (Fair value hierarchy Level 3): 0.2 0.2 Rand Refinery Proprietary Limited ("Rand Refinery") (a) 44 438 11.0% - - Guardrisk Insurance Company Limited (Cell Captive A170) (b) 20 # 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 30 160 3.0% 0.1 0.1 Rand Mutual Assurance Company Limited 1 # - - 9.4 8.8 Fair value adjustment on available for sale financial assets recognised in OCI 0.6 (0.3) # Represents a less than 1% shareholding. (b) Class A 170 shares are held in Guardrisk Insurance Company Limited that entitles the holder to 100% of the residual net equity of the Cell Captive A 170 after settlement of the reimbursive right. |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | At the date of authorisation of these consolidated financial statements, the following relevant standards, amendments to standards and interpretations that may be applicable to the business of the Group were in issue but not yet effective and may therefore have an impact on future consolidated financial statements. These new standards, amendments to standards and interpretations will be adopted at their effective dates. |
IFRS 2 Share-based payment amendments [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | IFRS 2 Share-based payment amendments (Effective date 1 July 2018) Measurement of cash-settled share-based payments – There is currently no guidance in IFRS 2 on how to measure the fair value of the liability in a cash-settled share based payment. The amendments clarify that a cash-settled share-based payment is measured using the same approach as for equity-settled share-based payments – i.e. the modified grant date method. Therefore, in measuring the liability, market and non-vesting conditions are taken into account in measuring its fair value and the number of awards to receive cash is adjusted to reflect the best estimate of those expected to vest as a result of satisfying service and any non-market performance conditions. The Group has assessed that the amendment to IFRS 2 will not have a significant impact on the Group as market and non-vesting conditions are being taken into account in measuring its fair value and the number of awards to receive cash is already adjusted to reflect the best estimate of those expected to vest as a result of satisfying service and any non-market performance conditions. |
In accordance with IFRS 9 [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | IFRS 9 Financial Instruments (Effective date 1 July 2018) The standard sets out requirements for recognising and measuring financial instruments and supersedes IAS 39 Financial Instruments. It contains new criteria for determining the classification of financial instruments which is based on the business model of the entity and the nature of cash flows. In addition, the financial instruments impairment model has been changed from an “incurred loss” model in IAS 39 to an “expected credit loss” model in IFRS 9. The resultant effect being that it will no longer be necessary for a loss event to occur before an impairment loss is recognised. The Group has assessed that the following changes will occur as a result: • The new classification if applied at 30 June 2018 would not have a significant impact on the accounting of financial assets and financial liabilities. Investment in other entities (equity instruments) will be designated at fair value through other comprehensive income; and • The method of determining impairment of long-term and other receivables will have to change to reflect the “expected credit loss” model. Management has made an assessment of the magnitude of the changes to the impairment model. This is not expected to have a significant impact. |
IFRS 15 Revenue from contracts with customers [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | IFRS 15 Revenue from contracts with customers (Effective date 1 July 2018) The standard contains a single model that applies to contracts with customers superseding the revenue standard IAS 18 Revenue and IAS 11 Construction contracts. It contains two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. The standard also introduces new qualitative and quantitative disclosures related to customer contracts and significant judgements applied. The Group has assessed that there will be no impact on adopting IFRS 15, and revenue recognition will remain unchanged as follows: • Rand Refinery is assessed as being an agent, selling gold and silver on behalf of the Group; • Revenue is recognised on the date that control of gold and silver pass to the buyer, which is the date on which Rand Refinery sells the gold on the Group’s behalf. • This is the same date as when significant risks and rewards passes under IAS 18 Revenue. |
IFRS 16 Leases [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | IFRS 16 Leases (Effective date 1 July 2019) The standard sets out the principles for recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e the customer (“lessee”) and the supplier (“lessor”). The standard supersedes the current leases standard IAS 17 Leases. The standard has one model for lessees which contains increased focus on the assessment of whether a transaction is a lease. Lessees will now recognise most leases on the statement of financial position. No significant changes have been included for lessors. The Group has commenced with analysing each contract included in the register of contracts compiled by the procurement department in order to assess whether these contain a lease and the impact that the standard will have on the Group. |
REVENUE - Disaggregation (Detai
REVENUE - Disaggregation (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue [Abstract] | |||
Gold Revenue | R 2,486,400,000 | R 2,336,100,000 | R 2,429,700,000 |
Silver Revenue | 4,000,000 | 3,800,000 | 3,400,000 |
Total Revenue | R 2,490,400,000 | R 2,339,900,000 | R 2,433,100,000 |
REVENUE - Market Risk (Details)
REVENUE - Market Risk (Details) - Commodity price sensitivity [member] - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Percentage decrease [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Gains (losses) from change in fair value of derivatives recognised in proift and loss | R (249) | R (234) | R (243.3) |
Percentage increase [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Gains (losses) from change in fair value of derivatives recognised in proift and loss | R 249 | R 234 | R 243.3 |
RESULTS FROM OPERATING ACTIVI_3
RESULTS FROM OPERATING ACTIVITIES (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Operating Activities [Abstract] | |||
Cost of sales | R 2,347,700,000 | R 2,307,900,000 | R 2,236,800,000 |
Operating costs | (2,207,100,000) | (2,109,300,000) | (2,030,200,000) |
Depreciation | (168,000,000) | (179,800,000) | (180,200,000) |
Retrenchment costs | 0 | 23,000,000 | 0 |
Movement in provision for environmental rehabilitation | 2,900,000 | (600,000) | (19,300,000) |
Decrease (increase) in inventories of finished goods and work in progress | (24,500,000) | (4,800,000) | 7,100,000 |
Operating cost [abstract] | |||
Materials | (784,600,000) | (783,900,000) | (719,500,000) |
Labour including short term incentives, excluding retrenchment costs | (417,400,000) | (351,000,000) | (362,100,000) |
Electricity | (369,000,000) | (344,200,000) | (325,400,000) |
Specialist service providers | (326,900,000) | (299,700,000) | (282,400,000) |
Water | R (49,900,000) | R (71,100,000) | R (82,100,000) |
RESULTS FROM OPERATING ACTIVI_4
RESULTS FROM OPERATING ACTIVITIES - Other Income and Admin expenses (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Operating Activities [Abstract] | |||
Profit on disposal of property, plant and equipment | R 0 | R 12.9 | R 10.5 |
RESULTS FROM OPERATING ACTIVI_5
RESULTS FROM OPERATING ACTIVITIES - Aministration expenses and other costs (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Operating Activities [Abstract] | |||
Increase in long term incentive liability | R 17.2 | R 10 | R 29.9 |
Transactions costs incurred related to the acquisition of FWGR | (9) | 0 | 0 |
Losses on disposals of property, plant and equipment | R (0.6) | R 0 | R 0 |
FINANCE INCOME (Details)
FINANCE INCOME (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Analysis Of Income And Expense [Abstract] | |||
Interest on loans and receivables | R 21,800,000 | R 23,600,000 | |
Growth in environmental rehbilitation trust funds | 7,500,000 | 7,500,000 | R 6,500,000 |
Growth in reimbursive right | (8,800,000) | (8,900,000) | (8,000,000) |
Unwinding of long term receivables | 700,000 | ||
Finance income | R 38,800,000 | R 40,000,000 | R 36,800,000 |
FINANCE EXPENSE (Details)
FINANCE EXPENSE (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of finance expense [abstract] | |||
Other Finance expenses | R (4,000,000) | R (5,700,000) | R (4,600,000) |
Unwinding of provision for environmental rehabilitation | 45,600,000 | 46,500,000 | 43,000,000 |
Fair value adjustment on initial recognition of long-term receivable | 8,800,000 | 0 | 0 |
Finance expense | R (58,400,000) | R (52,200,000) | R (47,600,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic Earnings Per Share [Abstract] | |||
Basic Earnings | R 6.5 | R 13.7 | R 61.9 |
Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares [Abstract] | |||
Weighted average number of ordinary shares in issue | 422,068,696 | 422,068,696 | 422,157,987 |
Number of staff options | 0 | 0 | 34,075 |
Duluted weighted average number of ordinary shares | 422,068,696 | 422,068,696 | 422,192,062 |
SA cents per share [Abstract] | |||
Basic earnings (loss) per share | R 1.5 | R 3.2 | R 14.7 |
Diluted earnings (loss) per share | R 1.5 | R 3.2 | R 14.7 |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment beginning | R 1,497,600,000 | ||
Additions | 126,100,000 | R 116,300,000 | R 100,000,000 |
Property plant and equipment ending | 1,452,700,000 | 1,497,600,000 | |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 126,100,000 | 116,300,000 | |
Disposals | (73,700,000) | 6,700,000 | |
Change in estimate of decommissioning asset | 3,900,000 | (34,400,000) | |
Transfers between classes of property, plant and equipment | 0 | ||
Assets transferred from non-current assets held for sale | 800,000 | ||
Transferred to inventory | (5,800,000) | ||
Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation | (168,000,000) | (179,800,000) | |
Disposals | 66,800,000 | 6,700,000 | |
Transfers between classes of property, plant and equipment | 0 | ||
Machinery, equipment and transportation equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 82,500,000 | 37,600,000 | |
Disposals | (56,300,000) | 2,800,000 | |
Change in estimate of decommissioning asset | (4,300,000) | 27,000,000 | |
Transfers between classes of property, plant and equipment | 92,100,000 | ||
Assets transferred from non-current assets held for sale | 0 | ||
Transferred to inventory | (5,800,000) | ||
Machinery, equipment and transportation equipment [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation | (104,300,000) | (108,700,000) | |
Disposals | 49,700,000 | 2,800,000 | |
Transfers between classes of property, plant and equipment | (56,200,000) | ||
Mine property and development Member [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 40,200,000 | 65,300,000 | |
Disposals | (17,400,000) | 3,900,000 | |
Change in estimate of decommissioning asset | 11,700,000 | (60,900,000) | |
Transfers between classes of property, plant and equipment | (81,700,000) | ||
Assets transferred from non-current assets held for sale | 800,000 | ||
Transferred to inventory | 0 | ||
Mine property and development Member [Member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation | (63,700,000) | (71,100,000) | |
Disposals | 17,100,000 | 3,900,000 | |
Transfers between classes of property, plant and equipment | 53,500,000 | ||
Exploration and evaluation assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 3,400,000 | 13,400,000 | |
Disposals | 0 | 0 | |
Change in estimate of decommissioning asset | (3,500,000) | (500,000) | |
Transfers between classes of property, plant and equipment | (10,400,000) | ||
Assets transferred from non-current assets held for sale | 0 | ||
Transferred to inventory | 0 | ||
Exploration and evaluation assets [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation | 0 | 0 | |
Disposals | R 0 | 0 | |
Transfers between classes of property, plant and equipment | R 2,700,000 |
PROPERTY PLANT AND EQUIPMENT -
PROPERTY PLANT AND EQUIPMENT - Narrative (Details) R in Millions | 12 Months Ended | ||
Jun. 30, 2018ZAR (R)R / kg | Jun. 30, 2017ZAR (R) | Jun. 30, 2016 | |
Impairment of property, plant and equipment [abstract] | |||
Gold price | R / kg | 550,411 | ||
Percentage of escalation of recoverable amount | 5.80% | ||
Weighted average cost of capital | 11.20% | ||
Percentage decrease in gold production | 4.10% | ||
Depreciation of mine plant facilities and equipment [abstract] | |||
Ergo leases temporary power generation equipment | R 1,452.7 | R 1,497.6 | |
Effective interest rate | 17.90% | ||
Option to acquire lease equipment at the end of the term | R 9.9 | ||
Bottom of Range [member] | |||
Impairment of property, plant and equipment [abstract] | |||
Change in discount rate | 11.20% | ||
Top of range [member] | |||
Impairment of property, plant and equipment [abstract] | |||
Change in discount rate | 21.40% | ||
Ergo leases temporary power generation equipment [Member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
Ergo leases temporary power generation equipment | R 13.6 | 16.8 | |
Finance lease with an outstanding balance | 14 | 16.8 | |
Option to acquire lease equipment at the end of the term | 9.9 | ||
Ergo leases temporary power generation equipment [Member] | 2019 [member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
The finance lease installments | 3.2 | ||
Interest payable installments | 2 | ||
Ergo leases temporary power generation equipment [Member] | 2020 [member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
The finance lease installments | 10.8 | ||
Interest payable installments | 0.4 | ||
Mine property and development Member [Member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
Ergo leases temporary power generation equipment | R 511 | R 523.1 | |
Mine property and development Member [Member] | Bottom of Range [member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
Useful lives | 4 years | 2 years | 6 years |
Mine property and development Member [Member] | Top of range [member] | |||
Depreciation of mine plant facilities and equipment [abstract] | |||
Useful lives | 12 | 12 years | 10 years |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT - contractual commitments (Details) - ZAR (R) | Jun. 30, 2018 | Jun. 30, 2017 |
Property, plant and equipment [abstract] | ||
Contracted for but not provided for in the consolidated financial statements | R 32,700,000 | R 11,200,000 |
Contractual commitment for acquisition of business | R 29,200,000 |
PROVISION FOR ENVIRONMENTAL R_3
PROVISION FOR ENVIRONMENTAL REHABILITATION - Narrative (Details) - ZAR (R) R in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | ||
Discount Rate | 8.50% | 8.80% |
Inflation rate used in calculation of net present value of rehabilitation liability | 5.70% | 5.90% |
Undiscounted rehabilitation cost | R 670.4 | R 639.5 |
PROVISION FOR ENVIRONMENTAL R_4
PROVISION FOR ENVIRONMENTAL REHABILITATION (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of other provisions [line items] | |||
Opening balance | R 531,700,000 | R 522,900,000 | R 493,300,000 |
Unwinding of provision | 45,600,000 | 46,500,000 | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (2,900,000) | 600,000 | |
Change in estimate of environmental rehabilitation cost recognised to decommissioning asset | 3,900,000 | (34,400,000) | |
Environmental rehabilitation payments | 24,900,000 | 19,500,000 | |
To reduce decommissioning liabilities | 21,500,000 | 11,600,000 | |
To reduce restoration liabilities | 3,400,000 | 7,900,000 | |
Transferred from non-current liabilities held for sale` | 0 | 16,800,000 | |
Closing balance | 553,400,000 | 531,700,000 | 522,900,000 |
Environmental rehabilitation payments to reduce the liability | 24,900,000 | 19,500,000 | |
Ongoing rehabilitation expenditure | (26,700,000) | (22,400,000) | |
Total cash spent on environmental rehabilitation | (51,600,000) | 41,900,000 | |
Other environment related provision [member] | |||
Disclosure of other provisions [line items] | |||
Opening balance | 531,700,000 | 522,900,000 | 493,300,000 |
Unwinding of provision | 45,600,000 | 45,300,000 | 41,500,000 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (2,900,000) | 600,000 | 21,400,000 |
Change in estimate of environmental rehabilitation cost recognised to decommissioning asset | 3,900,000 | (34,400,000) | (12,900,000) |
Environmental rehabilitation payments | 24,900,000 | 19,500,000 | 20,400,000 |
To reduce decommissioning liabilities | 21,500,000 | 11,600,000 | 10,600,000 |
To reduce restoration liabilities | 3,400,000 | 7,900,000 | 9,800,000 |
Closing balance | 553,400,000 | 531,700,000 | 522,900,000 |
Environmental rehabilitation payments to reduce the liability | 24,900,000 | 19,500,000 | 20,400,000 |
Ongoing rehabilitation expenditure | (26,700,000) | (22,400,000) | (27,800,000) |
Total cash spent on environmental rehabilitation | R (51,600,000) | R (41,900,000) | R (48,200,000) |
INVESTMENTS IN REHABILITATION_3
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Environmental obligations (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of investments in rehabilitation obligation funds [Abstract] | |||
Opening balance | R 227,700,000 | R 202,100,000 | |
Opening balance, rehabilitation trust funds | 110,500,000 | R 87,900,000 | |
Transferred from non-current assets held-for-sale | 0 | 9,900,000 | 0 |
Growth in environmental rehbilitation trust funds | 7,500,000 | 7,500,000 | 6,500,000 |
Growth in reimbursive right | (8,800,000) | (8,900,000) | (8,000,000) |
Cash and cash equivalents in environmental rehabilitation trust funds | 118,000,000 | 110,500,000 | |
Closing balance | 244,000,000 | 227,700,000 | 202,100,000 |
Investments in rehabilitation obligation funds | R 227,700,000 | R 227,700,000 | R 202,100,000 |
INVESTMENTS IN REHABILITATION_4
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Market Risk (Details) - Interest rate risk [member] - ZAR (R) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Market Risk, Increase In 100 Basis Points Effect On Equity And Profit Loss | R 1,180,000 | R 1,105,000 |
Market Risk, Decrease In 100 Basis Points Effect On Equity And Profit Loss | R (1,180,000) | R (1,105,000) |
INVESTMENTS IN REHABILITATION_5
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Changes in methods and assumptions used in preparing sensitivity analysis | A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular the balance of the funds, remain constant. The analysis excludes income tax | |
Financial guarantee contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Estimated financial effect of contingent liabilities | R 427.3 | R 427.3 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2015 | |
Derecognised financial assets [line items] | |||
Restricted cash | R 118 | R 110.5 | R 87.9 |
Interest income on cash and cash equivalents | 21.8 | 23.6 | |
Cash (including interest) held in escrow {member] | |||
Derecognised financial assets [line items] | |||
Restricted cash | 114.2 | 92.7 | |
Guarantees [member] | |||
Derecognised financial assets [line items] | |||
Restricted cash | R 17.2 | R 16.1 |
CASH AND CASH EQUIVALENTS - Mar
CASH AND CASH EQUIVALENTS - Market Risks (Details) - Interest rate risk [member] - ZAR (R) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Market Risk, Increase In 100 Basis Points Effect On Equity And Profit Loss | R 1,180,000 | R 1,105,000 |
Market Risk, Decrease In 100 Basis Points Effect On Equity And Profit Loss | (1,180,000) | (1,105,000) |
Cash and Cash Equivalents [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Market Risk, Increase In 100 Basis Points Effect On Equity And Profit Loss | 3,021,000 | 2,537,000 |
Market Risk, Decrease In 100 Basis Points Effect On Equity And Profit Loss | R (3,021,000) | R (2,537,000) |
CASH AND CASH EQUIVALENTS - For
CASH AND CASH EQUIVALENTS - Foreign currency risks (Details) - ZAR (R) R in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Cash and cash equivalents [abstract] | |||
Foreign denominated cash | R 0 | R 0 | R 0 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) | Jun. 30, 2018 |
Cash and cash equivalents [abstract] | |
Change in variable interest rate | 10000.00% |
CASH GENERATED BY OPERATIONS (D
CASH GENERATED BY OPERATIONS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from (used in) operating activities [abstract] | |||
Profit (loss) before tax | R 32.4 | R (36.7) | R 108.8 |
Adjusted for | |||
Depreciation | 168 | 179.8 | 180.2 |
Profit on disposal of property, plant and equipment | 0.6 | (12.9) | (10.5) |
Change in estimate of environmental rehabilitation | (2.9) | 0.6 | 19.3 |
Environmental rehabilitation payments | (3.4) | (7.9) | (11.2) |
Decrease (increase) in inventories of finished goods and work in progress | (24.5) | (4.8) | 7.1 |
Increase in long term incentive liability | 17.2 | 10 | 29.9 |
Reversal of accrual | 0 | 0 | (22.7) |
Finance income | (38.8) | (40) | (36.8) |
Finance expense | 58.4 | 52.2 | 47.6 |
Other non-cash items | 1.3 | (1) | 4.6 |
Operating cash flows before working capital changes | 208.3 | 139.3 | 316.3 |
Working capital changes [abstract] | |||
Working capital changes | (14.6) | 117.8 | (81.9) |
Change in trade and other receivables | 22.2 | (57.6) | 33.7 |
Change in long-term receivable | (27.4) | 0 | 0 |
Change in inventories | (28.2) | (14.8) | 1 |
Change in trade and other payables and employee benefits | 48 | (45.4) | 47.2 |
Cash generated by operations | R 222.9 | R 21.5 | R 398.2 |
TRADE AND OTHER RECEIVABLES - D
TRADE AND OTHER RECEIVABLES - Disclosure of trade and other receivables (Details) - ZAR (R) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of financial assets that are either past due or impaired: | |||
Trade receivables | R 600,000 | R 34,500,000 | |
Value Added Tax | 46,800,000 | 50,800,000 | |
Other receivables | 40,800,000 | 35,700,000 | |
Prepayments | 12,200,000 | 3,000,000 | |
Allowance for impairment | (9,200,000) | (9,700,000) | R (11,100,000) |
Total trade and other receivables | R 91,200,000 | R 114,300,000 |
TRADE AND OTHER RECEIVABLES -_2
TRADE AND OTHER RECEIVABLES - Disclosure of ageing of trade and other receivables (Details) - ZAR (R) R in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Not impaired [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade and other receivables past due | R 15.3 | R 10.4 |
Impaired [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade and other receivables past due | R 9.2 | R 9.7 |
TRADE AND OTHER RECEIVABLES - M
TRADE AND OTHER RECEIVABLES - Movement in the allowance for impairment in respect of trade and other receivables (Details) - ZAR (R) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation Of Changes In Allowance Account For Credit Losses Of Financial Assets [Abstract] | ||
Opening balance | R (9,700,000) | R (11,100,000) |
Net of impairments raised and bad debt recovered | 500,000 | 1,400,000 |
Bad debt written off against related receivable | 0 | 0 |
Closing balance | R (9,200,000) | R (9,700,000) |
TRADE AND OTHER RECEIVABLES -_3
TRADE AND OTHER RECEIVABLES - Disclosure of foreign currency risk (Details) - ZAR (R) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Trade and other receivables [abstract] | ||
Trade receivable denominated in foreign currency | R 0 | R 2.7 |
Foreign exchange gain | 0 | (3,500,000) |
Foreign exchange loss | R 0 | R 3,500,000 |
TRADE AND OTHER RECEIVABLES - N
TRADE AND OTHER RECEIVABLES - Narrative (Details) | Jun. 30, 2018 |
Trade and other receivables [abstract] | |
Percentage increase decrease currency rate | 10.00% |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Trade and other payables [abstract] | ||
Trade payables and accruals | R 227 | R 200.9 |
Accrual classified as current, leave pay | 32.9 | 30.8 |
Short-term employee benefits accruals | 24.7 | 2.2 |
Accrual classified as current, payroll | 18.7 | 17.9 |
Total trade and other current payables | 303.3 | 251.8 |
Interest relating to trade and other payables included in profit or loss | R (1.5) | R (2.7) |
INVENTORIES (Details)
INVENTORIES (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Classes of current inventories [abstract] | ||
Consumable stores | R 129 | R 101.9 |
Gold in process | 66.2 | 55.1 |
Finished stock - Gold Bullion | 37.8 | 23.3 |
Total inventories | 233 | 180.3 |
Inventory carried at net realisable value includes: | ||
Gold in process | 0 | 45.3 |
Finished stock - Gold Bullion | 0 | 19.3 |
Write down to net realisable value included in movement in gold in process and finished stock | R 0 | R 10.2 |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current Tax And Deferred Tax Expense Income And Adjustments Of Prior Periods [Abstract] | |||
Mining tax | R (23,200,000) | R 54,200,000 | R (46,900,000) |
Non-mining tax | (2,700,000) | (3,800,000) | 0 |
Total income tax | (25,900,000) | 50,400,000 | (46,900,000) |
Current tax - current year | (6,400,000) | (1,900,000) | (500,000) |
Current tax - prior year | 0 | 0 | (5,100,000) |
Deferred tax - current year | (19,500,000) | 53,400,000 | (42,100,000) |
Deferred tax - prior year | 0 | (1,100,000) | 800,000 |
Income tax | R (25,900,000) | R 50,400,000 | R (46,900,000) |
Major items causing the Group's income tax expense to differ from the statutory rate [Abstract] | |||
South African corporate tax rate | 28.00% | 28.00% | 28.00% |
Tax on net loss/(profit) before tax at the South African corporate tax rate of 28% | R (9,000,000) | R 10,300,000 | R (30,500,000) |
Rate adjustment to reflect the actual realised company tax rates | 3,500,000 | (7,900,000) | 4,400,000 |
Deferred tax rate adjustment | (12,800,000) | 37,500,000 | (21,700,000) |
Utilisation of tax losses for which deferred tax assets were previously unrecognised | 2,600,000 | 5,900,000 | 7,500,000 |
Current year tax losses for which no deferred tax has been recognised | (800,000) | (300,000) | |
Over/(under) provided in prior periods | 0 | 1,100,000 | (4,300,000) |
Other differences | 0 | 0 | (1,200,000) |
Non-deductible expenditure | (9,800,000) | (1,800,000) | (1,800,000) |
Tax effect of tax incentives | 400,000 | 200,000 | 700,000 |
Other components of deferred tax expense (income) | 0 | 0 | (1,200,000) |
Tax expense (income), continuing operations | R 25,900,000 | R (50,400,000) | R 46,900,000 |
INCOME TAX EXPENSE - DEFERRED T
INCOME TAX EXPENSE - DEFERRED TAX (Details) - ZAR (R) R in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred tax assets and liabilities relate to the following: | |||
Deferred tax assets | R 8.7 | R 5 | |
Deferred tax liabilities | 163.7 | 140.5 | |
Net deferred mining and income tax liability | 155 | 135.5 | R 187.9 |
Provision For Deferred Tax Asset [Member] | |||
Deferred tax assets and liabilities relate to the following: | |||
Deferred tax assets | 8.7 | 5 | |
Property, plant and equipment [member] | |||
Deferred tax assets and liabilities relate to the following: | |||
Deferred tax liabilities | 261.5 | 223.8 | |
Other provisions [member] | |||
Deferred tax assets and liabilities relate to the following: | |||
Deferred tax liabilities | (95) | (80.2) | |
Other temporary differences [member] | |||
Deferred tax assets and liabilities relate to the following: | |||
Deferred tax liabilities | R 2.8 | R 3.1 |
INCOME TAX EXPENSE - Movements
INCOME TAX EXPENSE - Movements in net deferred tax liability (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | R 135.5 | R 187.9 | |
Recognised in profit or loss | (19.5) | 52.4 | R (41.3) |
Deferred tax liability (asset) | 155 | 135.5 | R 187.9 |
Deferred tax assets have not been recognised [abstract] | |||
Current year tax losses for which no deferred tax has been recognised | (0.8) | (0.3) | |
Unredeemed capital expenditure | 272.9 | 272.9 | |
Capital losses | 330 | 325.2 | |
Property, plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Recognised in profit or loss | (37.7) | 83.1 | |
Other temporary differences [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Recognised in profit or loss | R (0.3) | R (1.3) |
INCOME TAX EXPENSE - Narrative
INCOME TAX EXPENSE - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Major components of tax expense (income) [abstract] | |||
Increase in effective tax rate | 9.00% | ||
Disclosure of non-deductible epenses [abstract] | |||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | R (9) | R 0 | R 0 |
Gains (losses) on financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | (8.8) | R 0 | R 0 |
Net Operating Cost, Non Deductible For Tax | 7.5 | ||
Capital Expenditure | R 6 | ||
Decreased to [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 20.30% | 18.60% | |
Decreased from [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 18.60% | 23.10% |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - ZAR (R) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Employee benefits [Abstract] | |||
Liabilities from share-based payment transactions | R 45,100,000 | R 30,700,000 | |
Liability for post-retirement medical benefits | 8,700,000 | 8,300,000 | R 7,900,000 |
Employee benefits | R 13,200,000 | R 0 | R 6,600,000 |
EMPLOYEE BENEFITS - Long term i
EMPLOYEE BENEFITS - Long term inentive scheme (Details) | 12 Months Ended | ||
Jun. 30, 2018ZAR (R)shares | Jun. 30, 2017ZAR (R)shares | Jun. 30, 2016ZAR (R) | |
Employee benefits [Abstract] | |||
Opening balance | R 30,700,000 | ||
Increase in long term incentive liability | 17,200,000 | R 10,000,000 | R 29,900,000 |
Vested and paid | 2,800,000 | 9,600,000 | |
Total liability for long term incentive scheme | R 45,100,000 | R 30,700,000 | |
Not later than one year [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Opening balance | 0 | ||
Closing balance | 13,200,000 | 0 | |
LaterThanOneYearMember | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Opening balance | 30,700,000 | 30,300,000 | |
Closing balance | 31,900,000 | 30,700,000 | 30,300,000 |
Phantom shares [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Opening balance | 21,144,534 | 23,169,191 | |
Granted | shares | 0 | 0 | |
Vested and paid | shares | 955,067 | 1,502,747 | |
Forfeited/lapsed | shares | 0 | 521,910 | |
Closing balance | 20,189,467 | 21,144,534 | 23,169,191 |
EMPLOYEE BENEFITS - Ageing oust
EMPLOYEE BENEFITS - Ageing oustanding phantom shares (Details) R in Millions | Jun. 30, 2018ZAR (R) | Jun. 30, 2017ZAR (R)shares |
June 30 2019 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Phantom shares outstanding | R | 13.2 | 0 |
Phantom shares Granted November 2015 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Phantom shares outstanding | 20,189,467 | |
Phantom shares Granted November 2015 [Member] | June 30 2019 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Phantom shares outstanding | 4,037,893.4 | |
Phantom shares Granted November 2015 [Member] | June 30 2020 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Phantom shares outstanding | 6,056,840.1 | |
Phantom shares Granted November 2015 [Member] | June 30 2021 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Phantom shares outstanding | 10,094,733.5 |
EMPLOYEE BENEFITS - fair value
EMPLOYEE BENEFITS - fair value (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Inputs to option pricing model, share options granted [Abstract] | |||
7 day VWAP of the DRDGOLD Limited share | R 3.71 | R 4.23 | R 2.26 |
Forward dividend yield | 1.80% | 0.70% | 4.30% |
Phantom shares [Member] | |||
Inputs to option pricing model, share options granted [Abstract] | |||
7 day VWAP of the DRDGOLD Limited share | R 2.93 | R 6.39 |
EMPLOYEE BENEFITS - Short term
EMPLOYEE BENEFITS - Short term benefits/emoluments (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Total remuneration related to this cycle | R 53,600,000 | R 52,900,000 | R 51,500,000 |
EMPLOYEE BENEFITS - Key managem
EMPLOYEE BENEFITS - Key management personnel remuneration (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Short-term benefits | |||
Board fees paid | R 5,600,000 | R 5,000,000 | R 3,700,000 |
Salaries paid | 53,600,000 | 52,900,000 | 51,500,000 |
Short term incentives relating to this cycle | 22,500,000 | 0 | 33,800,000 |
Long term incentives paid during the cycle | 2,800,000 | 9,600,000 | 3,900,000 |
Total short term compensation | 84,500,000 | 67,500,000 | 94,600,000 |
Long-term benefits [abstract] | |||
Long term incentive expense | 17,200,000 | 10,000,000 | 29,900,000 |
Contributions to post-retirement medical benefit | 400,000 | 400,000 | 300,000 |
Noncurrent Incentives Expense | R 17,600,000 | R 10,400,000 | R 30,200,000 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - Phantom shares [Member] | 12 Months Ended |
Jun. 30, 2018ZAR (R) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Finite term of incentive term | 5 years |
Phantom share exercise price | R 0 |
3 years [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of shares vested | 20.00% |
4 years [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of shares vested | 30.00% |
5 years [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of shares vested | 50.00% |
CAPITAL MANAGEMENT - Narrative
CAPITAL MANAGEMENT - Narrative (Details) - ZAR (R) R in Millions | Jul. 31, 2018 | Jun. 30, 2018 |
Revolving credit facility ABSA bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R 300 | |
Overdraft borrowing facilities [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R 100 |
EQUITY (Details)
EQUITY (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Issued share capital: | |||
SA cents per share, prior year final dividend | R 5 | R 12 | R 10 |
Total, dividends current year | R 21,100,000 | R 50,600,000 | R 42,200,000 |
SA cents per share | R 5 | R 0 | R 50 |
Total, dividends prior year | R 21,100,000 | R 0 | R 210,700,000 |
Total dividends | R 42,200,000 | R 50,600,000 | R 252,900,000 |
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Authorised share capital, number of shares | 1,500,000,000 | 600,000,000 | 600,000,000 |
Value per share | R 0 | R 0 | R 0 |
Issued share capital: | |||
Number of issued share capital | 431,429,767 | 431,429,767 | 431,429,767 |
Total share capital | R 4,227,900,000 | R 4,227,900,000 | R 4,227,900,000 |
Preference shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Authorised share capital, number of shares | 5,000,000 | 5,000,000 | 5,000,000 |
Value per share | R 0.1 | R 0.1 | R 0.1 |
Authorised share capital value | R 500,000 | R 500,000 | R 500,000 |
Issued share capital: | |||
Number of issued share capital | 5,000,000 | 5,000,000 | 5,000,000 |
Total share capital | R 500,000 | R 500,000 | R 500,000 |
Treasury shares [member] | |||
Issued share capital: | |||
Number of issued share capital | 9,361,071 | 9,361,071 | 9,361,071 |
Treasury Shares | R (50,700,000) | R (50,700,000) | R (50,700,000) |
EQUITY - Narratives (Details)
EQUITY - Narratives (Details) - ZAR (R) R in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of classes of share capital [line items] | ||||
Shares issued | 265,000,000 | |||
Treasury shares acquired | 0 | 0 | 3,205,512 | |
Treasury shares dividends received | R 0.9 | R 1.1 | R 5.6 | |
Major purchases of assets [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares issued | 265,000,000 | |||
Treasury shares acquired | 265,000,000 | |||
Percentage of shares issued to related parties | 38.05% | |||
Sibanye stillwater [Member] | Major purchases of assets [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Percentage of shares issued to related parties | 38.05% | |||
DRDGOLD (1996) share scheme member [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares issued | 546,000 | |||
Treasury shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares issued | 0 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financial performance | |||
Revenue | R 2,490,400,000 | R 2,339,900,000 | R 2,433,100,000 |
Cash operating costs | (2,159,700,000) | (2,087,900,000) | (1,991,200,000) |
Movement in gold in process | (24,500,000) | (4,800,000) | 7,100,000 |
Total operating profit | 355,200,000 | 256,800,000 | 434,800,000 |
Administration expenses and other costs | 90,700,000 | 69,400,000 | 87,200,000 |
Interest income | 21,800,000 | 23,600,000 | 22,400,000 |
Interest expense | 4,100,000 | 5,700,000 | 4,600,000 |
Retrenchment costs | 0 | 23,000,000 | 0 |
Current tax - current year | (6,400,000) | (1,900,000) | (500,000) |
Total working profit/(loss) before capital expenditure | 276,400,000 | 180,400,000 | 359,800,000 |
Additions other than through business combinations, property, plant and equipment | 126,100,000 | 116,300,000 | 100,000,000 |
Additions to unlisted investments | 100,000 | 1,300,000 | |
Total working profit/(loss) after capital expenditure | 150,300,000 | 64,000,000 | 258,500,000 |
Working profit/(loss) before capital expenditure | 276,400,000 | 180,400,000 | 359,800,000 |
Depreciation | (168,000,000) | (179,800,000) | (180,200,000) |
Movement in provision for environmental rehabilitation | 2,900,000 | (600,000) | (19,300,000) |
Growth in environmental rehabilitation trust funds and reimbursive right | 16,300,000 | 16,400,000 | 14,500,000 |
Profit on disposal of property, plant and equipment | (600,000) | 12,900,000 | 10,500,000 |
Unwinding of provision for environmental rehabilitation | 45,600,000 | 46,500,000 | 43,000,000 |
Fair value adjustment on the initial recognition of other non-current asset including subsequent unwinding | (8,100,000) | ||
Ongoing rehabilitation expenditure | (26,700,000) | (22,400,000) | (27,800,000) |
Net other operating (costs)/income | (20,600,000) | 1,000,000 | (11,300,000) |
Deferred tax | (19,500,000) | 52,400,000 | (41,300,000) |
Profit for the year | 6,500,000 | 13,700,000 | 61,900,000 |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 233,800,000 | 51,600,000 | 415,900,000 |
Cash flows from (used in) investing activities | (140,400,000) | (96,700,000) | (107,200,000) |
Cash flows from (used in) financing activities | (45,000,000) | (53,000,000) | (281,100,000) |
Ergo [member] | |||
Financial performance | |||
Revenue | 2,490,400,000 | 2,339,900,000 | 2,433,100,000 |
Cash operating costs | (2,159,700,000) | (2,087,900,000) | (1,991,200,000) |
Movement in gold in process | (24,500,000) | (4,800,000) | 7,100,000 |
Total operating profit | 355,200,000 | 256,800,000 | 434,800,000 |
Administration expenses and other costs | 11,500,000 | 4,500,000 | 4,500,000 |
Interest income | 9,500,000 | 6,800,000 | 2,800,000 |
Interest expense | 3,100,000 | 3,300,000 | 4,100,000 |
Retrenchment costs | 23,000,000 | ||
Current tax - current year | (2,900,000) | (1,900,000) | (500,000) |
Total working profit/(loss) before capital expenditure | 347,200,000 | 230,900,000 | 428,500,000 |
Additions other than through business combinations, property, plant and equipment | 125,200,000 | 116,200,000 | 100,000,000 |
Total working profit/(loss) after capital expenditure | 222,000,000 | 114,700,000 | 328,500,000 |
Working profit/(loss) before capital expenditure | 347,200,000 | 230,900,000 | 428,500,000 |
Depreciation | (167,400,000) | (179,700,000) | (180,100,000) |
Movement in provision for environmental rehabilitation | 2,500,000 | (600,000) | (21,400,000) |
Growth in environmental rehabilitation trust funds and reimbursive right | 10,100,000 | 10,900,000 | 9,800,000 |
Profit on disposal of property, plant and equipment | (600,000) | 200,000 | 9,300,000 |
Unwinding of provision for environmental rehabilitation | 44,300,000 | 45,300,000 | 41,500,000 |
Fair value adjustment on the initial recognition of other non-current asset including subsequent unwinding | (8,100,000) | ||
Ongoing rehabilitation expenditure | (26,700,000) | (22,400,000) | (27,800,000) |
Net other operating (costs)/income | (36,200,000) | (30,300,000) | (29,600,000) |
Deferred tax | (23,200,000) | 54,200,000 | (46,900,000) |
Profit for the year | 53,300,000 | 17,900,000 | 100,300,000 |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 285,300,000 | 32,500,000 | 414,800,000 |
Cash flows from (used in) investing activities | (140,200,000) | 32,500,000 | (105,600,000) |
Cash flows from (used in) financing activities | (2,800,000) | (2,400,000) | (2,000,000) |
Other reconciling items [member] | |||
Financial performance | |||
Administration expenses and other costs | 78,600,000 | 64,900,000 | 82,700,000 |
Interest income | 12,300,000 | 16,800,000 | 19,600,000 |
Interest expense | 1,000,000 | 2,400,000 | 500,000 |
Current tax - current year | (3,500,000) | 0 | (5,100,000) |
Total working profit/(loss) before capital expenditure | (70,800,000) | (50,500,000) | (68,700,000) |
Additions other than through business combinations, property, plant and equipment | 900,000 | 100,000 | |
Additions to unlisted investments | 100,000 | 1,300,000 | |
Total working profit/(loss) after capital expenditure | (71,700,000) | (50,700,000) | (70,000,000) |
Working profit/(loss) before capital expenditure | (70,800,000) | (50,500,000) | (68,700,000) |
Depreciation | (600,000) | (100,000) | |
Movement in provision for environmental rehabilitation | 400,000 | 2,100,000 | |
Growth in environmental rehabilitation trust funds and reimbursive right | 6,200,000 | 5,500,000 | 4,700,000 |
Profit on disposal of property, plant and equipment | 12,700,000 | 1,200,000 | |
Unwinding of provision for environmental rehabilitation | 1,300,000 | 1,200,000 | 1,500,000 |
Net other operating (costs)/income | 15,600,000 | 31,300,000 | 18,300,000 |
Deferred tax | (3,700,000) | (1,900,000) | (5,600,000) |
Profit for the year | (46,800,000) | (4,200,000) | (38,400,000) |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | (51,500,000) | 19,100,000 | 1,100,000 |
Cash flows from (used in) investing activities | (200,000) | 19,900,000 | (1,600,000) |
Cash flows from (used in) financing activities | R (42,200,000) | R (50,600,000) | R (279,100,000) |
ASSETS AND LIABILITIES CLASSI_3
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Assets held for sale | |||
Property plant and equipment beginning | R 1,497,600,000 | ||
Property plant and equipment ending | 1,452,700,000 | R 1,497,600,000 | |
Non-current investments and other assets | 1,739,100,000 | ||
Growth | 7,500,000 | 7,500,000 | R 6,500,000 |
Transferred from non-current assets held-for-sale | 0 | 9,900,000 | 0 |
Non-current investments and other assets | 1,734,100,000 | 1,739,100,000 | |
Liabilities held for sale | |||
Unwinding of provision | (45,600,000) | (46,500,000) | (43,000,000) |
Transferred to provision for environmental rehabilitation | (24,900,000) | (19,500,000) | |
Other environment related provision [member] | |||
Liabilities held for sale | |||
Transferred to provision for environmental rehabilitation | (24,900,000) | (19,500,000) | (20,400,000) |
Assets and liabilities held for sale [member] | |||
Assets held for sale | |||
Property plant and equipment beginning | 0 | 5,800,000 | |
Transfers between classes of property, plant and equipment | (800,000) | ||
Disposals | 0 | (5,000,000) | |
Property plant and equipment ending | 0 | 5,800,000 | |
Non-current investments and other assets | 0 | 9,200,000 | |
Growth | 700,000 | ||
Transferred from non-current assets held-for-sale | (9,900,000) | ||
Non-current investments and other assets | 0 | 9,200,000 | |
Liabilities held for sale | |||
Opening balance | R 0 | 15,600,000 | |
Unwinding of provision | 1,200,000 | ||
Transferred to provision for environmental rehabilitation | (16,800,000) | ||
Closing balance | R 0 | R 15,600,000 |
ASSETS AND LIABILITIES CLASSI_4
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE - Additional Information (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Assets and liabilities held for sale [member] | ||
Assets held for sale | ||
Disposals | R 0 | R (5) |
FINANCIAL ASSETS (Details)
FINANCIAL ASSETS (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of financial assets [line items] | ||
Fair value gains (losses) on financial assets reclassified out of available-for-sale financial assets recognised in other comprehensive income | R 0.6 | R (0.3) |
West Wits Mining Limited ("WWM") [member][Member] | Level 1 of fair value hierarchy [member] | ||
Disclosure of financial assets [line items] | ||
Investments in other entities | R 9.2 | 8.6 |
Shares held in other entities | 47,812,500 | |
Percentage of interest held | 6.70% | |
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of financial assets [line items] | ||
Investments in other entities | R 0 | 0 |
Shares held in other entities | 44,438 | |
Percentage of interest held | 11.00% | |
Guardrisk Insurance Company Limited (Cell Captive A170) [member] | Top of range [member] | ||
Disclosure of financial assets [line items] | ||
Perecentage of entitlement to reimbursive right | 100.00% | |
Guardrisk Insurance Company Limited (Cell Captive A170) [member] | Level 3 of fair value hierarchy [member] | Class A Shares [Member] | ||
Disclosure of financial assets [line items] | ||
Investments in other entities | R 0.1 | 0.1 |
Shares held in other entities | 20 | |
Chamber of Mines Building Company Proprietary Limited [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of financial assets [line items] | ||
Investments in other entities | R 0.1 | R 0.1 |
Shares held in other entities | 30,160 | |
Percentage of interest held | 3.00% |
FINANCIAL ASSETS - Narratives (
FINANCIAL ASSETS - Narratives (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of financial assets [line items] | |||
Gains (losses) on financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | R (8.8) | R 0 | R 0 |
Unwinding of long term receivables | 0.7 | ||
Non-current receivable [member] | |||
Disclosure of financial assets [line items] | |||
Non-current receivable | 18.6 | ||
Gains (losses) on financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | (8.8) | 0 | |
Unwinding of long term receivables | R 0.7 | R 0 |
CONTINGENT LIABILITIES - Narra
CONTINGENT LIABILITIES - Narratives (Details) l in Millions, R in Millions | 12 Months Ended |
Jun. 30, 2018ZAR (R)l | |
Disclosure of contingent liabilities [line items] | |
Surcharge related to electricity supply (%) | 40.00% |
Agreement to purchase Mega litres of partially treated AMD | l | 30 |
Environmental [member] | |
Disclosure of contingent liabilities [line items] | |
Estimated financial effect of contingent liabilities | R 250 |
Legal proceedings provision [member] | |
Disclosure of contingent liabilities [line items] | |
Expected reimbursement other provisions | 126 |
Payment of legal dispute | R 25.2 |
Percent of J-tarrif | 11.00% |
SUBSEQUENT EVENTS - Narratives
SUBSEQUENT EVENTS - Narratives (Details) - shares shares in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2018 | Jun. 30, 2018 | |
Disclosure of non-adjusting events after reporting period [line items] | ||
Increase (decrease) in number of ordinary shares issued | 265 | |
Major purchases of assets [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Increase (decrease) in number of ordinary shares issued | 265 | |
Percentage of shares issued to related parties | 38.05% | |
Percentage of voting equity interests acquired | 50.10% | |
Discount rate on market value | 10.00% |