Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2020shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --06-30 |
Entity Central Index Key | 0001023512 |
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 | 864,588,711 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity address | Constantia Office Park Cnr 14th Avenue and Hendrik Potgieter Road Cycad House, Building 17, Ground Floor Weltevreden Park 1709 |
Entity Address Country | ZA |
CONSOLIDATED STATEMENT OF PROFI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Profit (loss) [abstract] | |||
Revenue | R 4,185 | R 2,762.1 | R 2,490.4 |
Cost of sales | (2,937.9) | (2,553.9) | (2,347.7) |
Gross profit from operating activities | 1,247.1 | 208.2 | 142.7 |
Other income | 0.7 | 7.9 | 0 |
Administration expenses and other costs | (309.9) | (90.9) | (90.7) |
Results from operating activities | 937.9 | 125.2 | 52 |
Finance income | 109.8 | 58.3 | 38.8 |
Finance expense | (68.8) | (78.4) | (58.4) |
Profit before tax | 978.9 | 105.1 | 32.4 |
Income tax | (343.9) | (26.6) | (25.9) |
Profit for the year | 635 | 78.5 | 6.5 |
Items that will not be reclassified to profit or loss, net of tax | |||
Net fair value adjustment on equity investments at fair value through other comprehensive income | 190.6 | (5.9) | 0 |
Fair value adjustment on equity investments at fair value through other comprehensive income | 191.8 | (5.9) | 0 |
Deferred tax thereon | (1.2) | 0 | 0 |
Items that will be reclassified subsequently to profit or loss, net of tax | |||
Net fair value adjustment on available-for-sale investments | 0 | 0 | 0.6 |
Total other comprehensive income for the year | 190.6 | (5.9) | 0.6 |
Total comprehensive income for the year | R 825.6 | R 72.6 | R 7.1 |
Earnings per share | |||
Basic earnings per share (SA cents per share) | R 82.5 | R 11.8 | R 1.5 |
Diluted earnings per share (SA cents per share) | R 81 | R 11.5 | R 1.5 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
ASSETS | ||
Non-current assets | R 3,485.4 | R 3,403.9 |
Property, plant and equipment | 2,621.1 | 2,775.3 |
Investments in rehabilitation obligation funds | 626 | 587.5 |
Payment made under Protest | 35 | 27.6 |
Other investments | 195.3 | 3.5 |
Deferred tax assets | 8 | 10 |
Current assets | 2,189.8 | 656.1 |
Inventories | 323.4 | 304.6 |
Current tax receivable | 4.9 | 4.1 |
Trade and other receivables | 146.4 | 67.9 |
Cash and cash equivalents | 1,715.1 | 279.5 |
TOTAL ASSETS | 5,675.2 | 4,060 |
EQUITY AND LIABILITIES | ||
Equity | 4,040.2 | 2,688.6 |
Stated share capital | 6,157.9 | 5,072.8 |
Other reserves | 0 | 453.6 |
Retained earnings | (2,117.7) | (2,837.8) |
Non-current liabilities | 889.1 | 913.2 |
Provision for environmental rehabilitation | 568.9 | 682.6 |
Deferred tax liabilities | 273.1 | 193.2 |
Employee benefits | 10.1 | 37.4 |
Lease liabilities (2019: finance lease obligation) | 37 | 0 |
Current liabilities | 745.9 | 458.2 |
Trade and other payables | 478.8 | 419.2 |
Employee benefits | 227.6 | 22.6 |
Current portion of lease liabilities (2019: current portion of finance lease obligation ) | 10.1 | 11 |
Current tax liability | 29.4 | 5.4 |
TOTAL LIABILITIES | 1,635 | 1,371.4 |
TOTAL EQUITY AND LIABILITIES | R 5,675.2 | R 4,060 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ZAR (R) R in Millions | Total | Stated share capital [member] | Other reserves [member] | Retained earnings [member] |
Beginning balance at Jun. 30, 2017 | R 1,302.4 | R 4,177.7 | R 0 | R (2,875.3) |
Total comprehensive income [abstract] | ||||
Profit for the year | 6.5 | 6.5 | ||
Other comprehensive income | 0.6 | 0.6 | ||
Total comprehensive income | 7.1 | 7.1 | ||
Contributions and distributions | ||||
Treasury shares acquired through subsidiary | 0 | 0 | ||
Dividend on ordinary share capital | (42.2) | (42.2) | ||
Total contributions and distributions | (42.2) | (42.2) | ||
Ending balance at Jun. 30, 2018 | 1,267.3 | 4,177.7 | 0 | (2,910.4) |
Total comprehensive income [abstract] | ||||
Profit for the year | 78.5 | 78.5 | ||
Other comprehensive income | (5.9) | (5.9) | ||
Total comprehensive income | 72.6 | 72.6 | ||
Contributions and distributions | ||||
Equity instruments issued as purchase consideration for the FWGR Acquisition | 1,349.3 | 895.7 | 453.6 | |
Expenses incurred on issue of ordinary shares | (0.3) | (0.3) | ||
Treasury shares acquired through subsidiary | (0.3) | (0.3) | ||
Dividend on ordinary share capital | 0 | 0 | ||
Total contributions and distributions | 1,348.7 | 895.1 | 453.6 | |
Ending balance at Jun. 30, 2019 | 2,688.6 | 5,072.8 | 453.6 | (2,837.8) |
Total comprehensive income [abstract] | ||||
Profit for the year | 635 | 635 | ||
Other comprehensive income | 190.6 | 190.6 | ||
Total comprehensive income | 825.6 | 825.6 | ||
Contributions and distributions | ||||
Issue of ordinary shares | 1,085.6 | 1,085.6 | ||
Equity instruments issued as purchase consideration for the FWGR Acquisition | 0 | 0 | ||
Expenses incurred on issue of ordinary shares | (0.5) | (0.5) | ||
Reallocation of the equity instruments on exercise of the Sibanye-Stillwater option | 0 | (453.6) | 453.6 | |
Treasury shares acquired through subsidiary | 0 | 0 | ||
Dividend on ordinary share capital | (565.1) | (565.1) | ||
Equity-settled share-based payment | 6 | 6 | ||
Total contributions and distributions | 526 | 1,085.1 | (453.6) | (105.5) |
Ending balance at Jun. 30, 2020 | R 4,040.2 | R 6,157.9 | R 0 | R (2,117.7) |
CONSOLIDATED STATEMENT OF CASHF
CONSOLIDATED STATEMENT OF CASHFLOWS - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash generated from operations | R 1,309.6 | R 282 | R 222.9 |
Finance income received | 63.8 | 16.8 | 21.9 |
Dividend received | 4.3 | 0 | 0 |
Finance expenses paid | (8.7) | (9.3) | (3.5) |
Income tax paid | (240.1) | (1.2) | (7.5) |
Net cash inflow from operating activities | 1,128.9 | 288.3 | 233.8 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (181.1) | (347.4) | (125.9) |
Environmental rehabilitation payments to reduce decommissioning liabilities | (22.1) | (16.6) | (21.5) |
Proceeds on disposal of property, plant and equipment | 0.7 | 5.8 | 7 |
Funds received from environmental obligation funds | 0 | 55.2 | 0 |
Net cash outflow from investing activities | (202.5) | (303) | (140.4) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from the issue of shares | 1,085.6 | 0 | 0 |
Share issue expenses | (0.5) | (0.3) | 0 |
Acquisition of treasury shares | 0 | (0.3) | 0 |
Dividends paid on ordinary shares | (564.5) | 0 | (42.2) |
Borrowings raised | 0 | 192 | 0 |
Borrowings paid | 0 | (192) | 0 |
Initial fees incurred on borrowings | 0 | (3.6) | 0 |
Repayment of lease liabilities (2019: repayment of finance lease obligations) | (11.4) | (3.7) | (2.8) |
Net cash inflow/(outflow) from financing activities | 509.2 | (7.9) | (45) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 1,435.6 | (22.6) | 48.4 |
Cash and cash equivalents at the beginning of the year | 279.5 | 302.1 | 253.7 |
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | R 1,715.1 | R 279.5 | R 302.1 |
ABOUT THESE CONSOLIDATED FINANC
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Jun. 30, 2020 | |
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS | |
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS | Reporting entity The DRDGOLD Group is primarily involved in the retreatment of surface gold. The consolidated financial statements comprise DRDGOLD Limited (the “ Company ”) and its subsidiaries who are all wholly owned subsidiaries and solely operate in South Africa (collec tively the “ Group ” and individually “ Group Companies ”). The Company is domiciled in South Africa with a registration number of 1895/000926/06. The registered address of the C ompany is Constantia Office Park , Cnr 14th Avenue and Hendrik Potgieter Road , Cyca d House, Building 17, Ground Floor , Weltevreden Park , 1709 . The DRDGOLD Group is 50.1 % held by Sibanye Gold Limited, which in turn is a wholly owned subsidiary of Sibanye Stillwater Limited (“ Sibanye-Stillwater ”) . 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 ap proved by the board for issuance on October 29, 2020 . Functional and presentation currency The functional and presentation currency of DRDGOLD and its subsidiaries is South African rand. The amounts in these consolidated financial 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 2020 2019 2018 Spot rate at year end 17.32 14.07 13.72 Average rate for the financial year 15.66 14.18 12.85 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 statement s from the date that control commences until the date that control ceases. Transactions eliminated on consolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eli minated in preparing the consolidated financial statements. |
USE OF ACCOUNTING ASSUMPTIONS,
USE OF ACCOUNTING ASSUMPTIONS, ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Jun. 30, 2020 | |
USE OF ACCOUNTING ASSUMPTIONS, ESTIMATES AND JUDGEMENTS | |
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 e stimates. 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 11 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 18 INCOME TAX NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS Information about significant judgement s 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 24 PAYMENTS MADE U NDER PROTEST NOTE 26 CONTINGE NC IES |
NEW STANDARDS, AMENDMENTS TO ST
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT YET ADOPTED | 12 Months Ended |
Jun. 30, 2020 | |
New standards amendments to standards and interpretations [abstract] | |
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT YET ADOPTED | New standards, amendments to standards and interpretations effective for the year ended June 30, 2020 During the financial period, the following new and revised accounting standards, amendments to standards and new interpretation were adopted by the Group: IFRS 16 Leases (Effective date July 1, 2019 ) The Group adopted IFRS 16 Leases (“ IFRS 16 ”) on July 1, 2019 , using the modified retrospective method. The Group elected to measure the right of use asset at an amo unt equal to the lease liabilities for leases previously expensed as operating leases . The nature of the leases include property rentals, vehicle rental s , and equipment hire. The equipment hire includes the rental of an electricity generator which was previously classified as a finance lease under IAS 17 Leases (“ IAS 17 ”). The carrying amount of the right-of-use asset and the lease liability at the date of initial application was measured using the carrying amount of the lease asset and lease liability immediately before under IA S 17 . The Group applied the following practical expedients : the Group elected not to separate non-lease components and account for the lease and non-lease component as a single lease component ; leases for which the underlying asset is of low value ; and short-term leases defined as less than 12 months . The Group applied the following judgements : assessing whether an arrangement contains a lease ; w here the Group has the option to terminate a contract with no more than an insignificant penalty, the lease is no longer deemed to be enforceable. However, in making this assessment management will in addition, take into account the nature of the asset, the alternative procurement of the asset and the general economics of the contract in assessing its enforceability ; where a lease is on a month to month basis, the lease term is limited to one month’s enforceable period, therefore that lease is excluded from the lease population ; w here a contract includes an option to renew, management will consider whether it is reasonably certain that the option will be exercised. In making this assessment, the historical renewal behaviour will be considered, considering the str ategic nature of that asset ; t he determination of the right of use asset to be equal to the lease liability, adjusted for prepaid or accrued lease payments immediately before the date of initial application. This resulted in there being no impact on retai ned earnings at adoption date ; and to use the Group’s incremental borrowing rate in discounting the future payments. The weighted average discount rate applied was 10.31 % per annum . There ha ve been no significant changes under IFRS 16 for lessors. The impact of the adoption of IFRS 16 on the Group’s financial statements is as follows Amounts in R million 2020 Operating lease commitments at June 30, 2019 37.6 Operating lease commitments at July 1, 2019 discounted using the weighted average incremental borrowing rate at July 1, 2019 (6.7) Operating lease commitments recognised as lease liabilities on the statement of financial position at July 1, 2019 (not previously recognised) 30.9 Finance lease liabilities previously recognised under IAS 17 at June 30, 2019 11.0 Total lease liabilities recognised at July 1, 2019 41.9 IFRIC 23 Uncertainty over Income Tax Treatments (Effective date July 1, 2019 ) IFRIC 23 Uncertainty over Income Tax Treatments (“ IFRIC 23 ”) clarifies the accounting for income tax treatments that have yet to be accepted by tax authorities. Specifically, IFRIC 23 provides clarity on how to incorporate this uncertainty into the measurement of tax as reported in the financial statements. IFRIC 23 does not introduce any new disclosures but reinforces the need to comply with existing disclosure r equirements about: judg e ments made; assumptions and other estimates used; and the potential impact of uncertainties that are not reflected. Information about significant judgements, assumptions and estimates related to uncertainties with regard to the measurement of tax as reported in the financial statements are included in the following note: NOTE 18 INCOME TAX Annual Improvements to IFRS Standards 2015/2017 Cycle various standards (effective July 1, 2019 ) As part of its process to make non-urgent but necessary amendments to IFRS, the IASB has issued the Annual Improvements to IFRS Standards 2015–2017 Cycle. This did not have a material impact on the Group. 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS continued New standards, amendments to standards and interpretations not yet effective 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. Definition of Material (Amendments to IAS 1 and IAS 8) (Effective July 1, 2020) The amendment clarifies the definiti on of material to make it easier to understand and provides guidance on how the definition should be applied. The changes in the definition now ensures that the definition is consistent across all IFRS standards and the Conceptual Framework. old definition (IAS 1): Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements; n ew definition (IAS 1) : Information is material if omitting, misstating or obscuring it could reasonabl y be expected to influence the decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reportin g entity. The definition of material omissions or misstatements from IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been removed. M anagement has performed a preliminary assessment of the new definition of materiality and has as sessed that it is not expected that significant changes will result from the adoption of the new definition of materiality . Amendments to References to Conceptual Framework in IFRS (Effective July 1, 2020) The IASB decided to revise the Conceptual Framewor k because certain important issues were not covered and certain guidance was unclear or out of date. The revised Conceptual Framework, issued by the IASB in March 2018, includes: n ew concepts on measurement including factors to be considered when selecting the measurement basis; n ew concepts on presentation and disclosure, including when to classify income and expenses in other comprehensive income; n ew guidance on when assets and liabilities are removed from financial statements; u pdated definitions of an asset and liability; u pdated recognition criteria for including assets and liabilities in financial statements; the revised framework c larified the concepts of prudence, stewardship, measurement uncertainty and substance over form; and t he IASB also update d references to the Conceptual Framework in IFRS by issuing Amendments to References to the Conceptual Framework in IFRS. M anagement has performed a preliminary assessment of the amendments to the References to the Conceptual Framework and has assessed th at it is not expected that significant changes will result from the new references to the Conceptual Framework. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
REVENUE | ACCOUNTING POLICIES Revenue comprise s the sale of gold bullion and silver bullion (produced as a by-product). Revenue is measured based on the consideration specified in a contract with the customer, which is based on the London Bullion Market fixing price on the date when it transfers control over the goods to the customer. The Group recognises revenue at a poin t in time when Rand Refinery, acting as an agent for 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. It is at this point that the revenue can be measured reli ably and the recovery of the consideration is probable. Rand Refinery is contractually obliged to make payment to the Group within two business days after the sale of the gold and silver and therefore no significant financing component exists. Amounts in R million 2020 2019 2018 Gold revenue 4,179.3 2,758.8 2,486.4 Silver revenue 5.7 3.3 4.0 Total revenue 4,185.0 2,762.1 2,490.4 A disaggregation of revenue by operating segment is presented in note 23 OPERATING SEGMENTS. MARKET RISK Commodity price sensitivity The Group's profitability and the cash flows are significantly affected by changes in the market price of gold and silver which are sold in US Dollar s . The Group d id not enter into forward sales of gold production, derivatives or other hedging arrangements to establish a commodity price in advance for the sale of future gold production during the year . A change of 20 % in the average US Dollar 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 2020 2019 2018 20% increase in the US Dollar gold price 837.0 552.4 498.1 20% decrease in the US Dollar gold price (837.0) (552.4) (498.1) Exchange rate sensitivity The Group's profitability and the cash flows are significantly affected by changes in the Rand to the US Dollar exchange rate . The Group d id not enter into forward sales of US Dollars , derivatives or other hedging arrangements to establish a n exchange rate in advance for the sale of US Dollars to be received in the future . A change of 10 % in the average Rand to US Dollar exchange rate 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 2020 2019 2018 10% increase in the Rand to US Dollar exchange rate 418.5 276.2 249.0 10% decrease in the Rand to US Dollar exchange rate (418.5) (276.2) (249.0) |
RESULTS FROM OPERATING ACTIVITI
RESULTS FROM OPERATING ACTIVITIES | 12 Months Ended |
Jun. 30, 2020 | |
Analysis of income and expense [abstract] | |
RESULTS FROM OPERATING ACTIVITIES | Amounts in R million Note 2020 2019 2018 Cost of sales (2,937.9) (2,553.9) (2,347.7) Operating costs (a) (2,692.1) (2,471.1) (2,207.1) Movement in gold in process and finished inventories - Gold Bullion 3.1 32.6 24.5 Depreciation 9 (270.8) (169.1) (168.0) Change in estimate of environmental rehabilitation 11 21.9 60.0 2.9 Retrenchment costs (b) - (6.3) - (a) Operating costs The most significant components of operating costs include: Consumable stores (801.0) (866.5) (784.6) Labour including short term incentives (573.0) (476.7) (417.4) Electricity (420.9) (399.4) (369.0) Specialist service providers (447.5) (437.1) (326.9) Water (47.0) (44.1) (49.9) Pre-production costs capitalised - 93.7 - (b) Retrenchment costs Voluntary staff retrenchments - (6.3) - RELATED PARTY TRANSACTIONS FWGR entered into a smelting agreement with Sibanye-Stillwater on July 31, 2018 to smelt and recover gold from gold loaded carbon produced at FWGR , and deliver the gold to Rand Refinery. As consideration for this service, Sibanye-Stillwater receives a fee based on the smelting costs plus 10 % of the smelting costs. Rand Refinery performs the final refinement and marketing of all gold and silver produced by the Group . As consideration for this service, Ran d Refinery receives a variable refining fee plus fixed marketing and administration fees. All transactions and outstanding balances with related parties are to be settled in cash within 30 days of the invoi ce date. None of the balances are secured. No expense has been recognised in the current year as a credit loss allowance in respect of amounts charged to related parties . Amounts in R million 2020 2019 Services rendered by related parties and included in operating costs: Supply of water and electricity 1 50.0 16.9 Gold smelting and related charges 1 19.8 12.9 Other charges 1 1.6 - Charges to Sibanye-Stillwater 2 (0.2) (6.5) Gold refining and related charges 3 4.9 3.6 76.1 26.9 1 Paid to Sibanye-Stillwater by FWGR 2 2019 charges relate to material processed on behalf of Sibanye-Stillwater in terms of a toll treatment agreement and recovered the related costs from Sibanye-Stillwater. 2020 charges relate to miscellaneous items 3 Paid to Rand Refinery subsequent to July 31, 2018 ACCOUNTING POLICIES Other i ncome is recognised where it is probable that the economic benefits associated with a transaction will flow to the Group and it 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 on disposal of property, plant and equipment and gains on financial instruments at fair value through profit or loss . Amounts in R million 2020 2019 2018 Gain on disposal of property, plant and equipment 0.7 5.8 - Gain on financial asset at fair value through profit or loss - 2.1 - 0.7 7.9 - Amounts in R million Note 2020 2019 2018 Included in administration expenses and other costs are the following: Share based payment expenses (224.1) (21.4) (17.2) Cash settled Long-Term Incentive (" LTI ") scheme 19.1 (218.1) (21.4) (17.2) Equity settled Long-Term Incentive (" LTI ") scheme 19.2 (6.0) - - Transactions costs (1.4) - (9.0) Loss on disposal of property, plant and equipment - - (0.6) |
FINANCE INCOME
FINANCE INCOME | 12 Months Ended |
Jun. 30, 2020 | |
Finance Income [Abstract] | |
FINANCE INCOME | ACCOUNTING POLICY Finance income includes interest received , growth in cash and cash equivalents in environmental rehabilitation trust funds, growth in the reimbursive right for environmental rehabilitation guarantees, dividends received and the unwinding of the Payments made under protest . Amounts in R million Note 2020 2019 2018 Interest on financial assets measured at amortised cost 13 63.1 17.0 21.8 Growth in cash and cash equivalents in environmental rehabilitation trust funds 12 33.3 30.5 7.5 Growth in reimbursive right for environmental rehabilitation guarantees 12 5.2 7.8 8.8 Dividends received 25 4.3 - - Unwinding of Payments made under protest 24 3.9 3.0 0.7 109.8 58.3 38.8 |
FINANCE EXPENSE
FINANCE EXPENSE | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of finance expense [abstract] | |
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 lease liabilities and the discount recognised on Payments made under protest . Amounts in R million Note 2020 2019 2018 Interest on financial liabilities measured at amortised cost (2.0) (10.2) - Interest on financial liabilities measured at amortised cost capitalised 9 - 9.4 - Unwinding of provision for environmental rehabilitation 11 (52.0) (66.3) (45.6) Discount recognised on Payments made under protest 24 (7.1) (6.5) (8.8) Interest on lease liabilities 10.2 (5.1) (2.0) (2.5) Other finance expenses (2.6) (2.8) (1.5) (68.8) (78.4) (58.4) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2020 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | Amounts in R million 2020 2019 2018 The calculations of basic and diluted earnings per ordinary share are based on the following: Profit for the year 635.0 78.5 6.5 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Note 2020 2019 2018 Weighted average number of ordinary shares in issue 769,941,874 664,553,283 422,068,696 Effect of Sibanye-Stillwater Option 21.1 9,464,684 15,387,695 - Effect of equity-settled share-based payment expense 19.2 4,283,001 - - Diluted weighted average number of ordinary shares 783,689,559 679,940,978 422,068,696 SA cents per share 2020 2019 2018 Basic earnings per share 82.5 11.8 1.5 Diluted earnings per share 81.0 11.5 1.5 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES 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 order 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, transport 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 logging 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 because 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 p repared by management are reviewed by an independent mineral 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 environmental 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 liabil ities may change due to changes in estimates of the likely recovery of the tax benefits and charges. 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. 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 accumulated impairment losses . Cost includes expenditure that is directly attributable to the acq uisition or construction of the asset, borrowing costs capitalised, as well as the costs of dismantling and removing an asset and restoring the site on which it is located. Subsequent costs are included in the asset’s carrying amount or recognised as a sep arate 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 the 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. Exploration assets consists of costs of acquiring rights, activities associated with converting a mineral resource to a mineral reserve - the process thereof includes drilling, sampling and other processes necessary to evaluate the technical feasibility and commercial viability of a mineral resource to prove whether a mineral reserve exists. Exploration assets also include geological, geo chemical and geophysical studies associated with prospective projects and tangible assets which comprise of property, plant and equipment used for exploratory activities. Costs are capitalised to the extent that they are a directly attributable exploration expenditure and classified as a separate class of assets on a project by project basis. Once a mineral reserve is determined or the project ready for development, the asset attributable to the mineral reserve or project is tested for impairment and then reclassified to the appropriate class of assets. Depreciation commences when the assets are available for use . 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 and probable mineral reserves. It reflects the estimated quantities of economically recoverable gold that c an be recovered from reclamation sites based on the estimated gold price. Changes in the 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 consideration of historical experience. The depreciation method, estimated useful lives and residual values are reassessed annually and adjusted if appropriate. Any changes to u seful lives may affect prospective depreciation rates and asset carrying values. The current estimated useful lives are based on the life-of-mine of each site, currently between four ( 2019 : three ; 2018 : four ) and 13 ( 2019 : 11 ; 2018 : 12 ) years for Ergo mining assets and between four ( 2019 : five) and 20 ( 2019 : 15 ) years for FWGR mining assets . Impairment 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 eve nts or changes in circumstances indicate that the carrying amount may not be recoverable. If 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 whic h there are separately identifiable cash flows (CGUs). The key assets of a surface retreatment operation which constitutes a CGU are a reclamation site, a metallurgical plant and a tailings storage facility. These key assets operate interdependently to pro duce gold. The Ergo and FWGR operations each have separately managed and monitored reclamation sites, metallurgical plants and tailings storage facilities and are therefore separate CGUs. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The recoverable amount was determined by estimating the value in use. T he 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 recognised in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amou nt . Amounts in R million Note Mine plant facilities and equipment Mine property and development Exploration assets Total June 30, 2020 Cost 2,203.5 2,147.0 266.3 4,616.8 Balance at the beginning of the year 2,156.2 2,106.8 256.7 4,519.7 Impact of adopting IFRS 16 on July 1, 2019 10.1 7.5 23.4 - 30.9 Additions - property, plant and equipment owned 121.2 46.5 15.0 182.7 Additions - right-of-use assets 10.1 3.8 14.2 - 18.0 Lease modifications 10.1 - 7.5 - 7.5 Lease derecognitions 10.1 (26.7) (0.1) - (26.8) Disposals (1.6) - - (1.6) Change in estimate of decommissioning asset 11 (56.7) (51.5) (5.4) (113.6) Transfers between classes of property, plant and equipment (0.2) 0.2 - - Accumulated depreciation and impairment (1,017.5) (968.5) (9.7) (1,995.7) Balance at the beginning of the year (909.9) (824.8) (9.7) (1,744.4) Depreciation 5.1 (127.1) (143.7) - (270.8) Lease derecognitions 17.9 - - 17.9 Disposals 1.6 - - 1.6 Carrying value at end of the year 1,186.0 1,178.5 256.6 2,621.1 Comprising: Property, plant and equipment owned 1,177.8 1,141.8 256.6 2,576.2 Right-of-use assets 10.1 8.2 36.7 - 44.9 Carrying value at end of the year 1,186.0 1,178.5 256.6 2,621.1 June 30, 2019 Cost 2,156.2 2,106.8 256.7 4,519.7 Balance at the beginning of the year 1,689.5 1,264.5 77.3 3,031.3 Acquisition of FWGR 198.4 849.9 177.3 1,225.6 Additions - property, plant and equipment owned 284.5 66.7 2.5 353.7 Borrowing costs capitalised 9.4 - - 9.4 Disposals (1.6) (1.7) - (3.3) Change in estimate of decommissioning asset 11 (24.0) (75.3) 2.3 (97.0) Transfers between classes of property, plant and equipment - 2.7 (2.7) - Accumulated depreciation and impairment (909.9) (824.8) (9.7) (1,744.4) Balance at the beginning of the year (815.4) (753.5) (9.7) (1,578.6) Depreciation 5.1 (96.1) (73.0) - (169.1) Disposals 1.6 1.7 - 3.3 Carrying value at end of the year 1,246.3 1,282.0 247.0 2,775.3 CONTRACTUAL COMMITMENTS Contractual commitments not provided for in the consolidated financial statements at June 30, 2020 amounted to R 130.6 million ( 2019 : R 18.6 million) . Capital expenditure related to specific growth projects are financed on a project-by-project basis. Other c apital expenditure is financed from existing cash resources and cash generated from operations. |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES | 12 Months Ended |
Jun. 30, 2020 | |
Right of use assets and leases [abstract] | |
Right of assets and leases | SIGNIFICANT ACCOUNTING JUDGEMENTS At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. T he contract must also be enforceable. To assess whether a contract conveys the right to control the use of an identified asset, requires judgement particularly on contracts with service contractors, which may contain embedded leases . The Group assesses whe ther : the contract involves the use of an identified asset ; the Group has the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and the Group has the right to direct the use of the asset . At incepti on or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relevant stand-alone prices. However, for the lease of land and buildings in which it i s a lessee, the Group has elected not to separate non-lease components and account for the lease and non-lease component as a single lease component . Some property leases contain options to renew under the contract. Judgement is applied in whether the renewable option periods must be included in the lease term i.e. it is reasonably certain that the options to renew will be exercised. In applying judgement, the Group also considers whether the lease term is commensurate with estimated future mine plans r equirements and environmental rehabilitation obligations associated with the property post reclamation ACCOUNTING POLICIES The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The impact of the adoption of the standard is disclosed in Note 3 . Accounting policy before July 1, 2019 Leased assets Upon initial recognition, the leased asset is measured at an amount 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 and 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 ba lance of the liability. Accounting policy after July 1, 2019 Right of use asset The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability and is adjusted by any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received . The Group recognises a right of use asset and lease liability at the lease commencement date. The right of use asset is subsequently depreciated using the straightline method from the commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated useful lives of the right of use assets are determined on the same basis as those of property, plant and equipment. In addition, the right of use asset carrying value is allocated to the CGU it belongs to and the CG U is reviewed at each reporting date to determine whether there is any indication of impairment. The carrying value is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. Lease liability The lease liability is initially measured at the present value of the outstanding lease payments at commencement date over the lease term, discounted using the interest rate implicit in the lease or if that rate is undeterminable, the Group’s incremental borrowing r ate. The lease term includes the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when the Group is reasonably certain to exercise an option to extend a lease. Lease payments comprise fixed payments, variable lease payments that depend on an index or rate, initially measured using the index or rate as at the commencement date, and the exercise price under a purchase option that the Group is reasonably certain to exercise . T he lease liability is measured using the effective interest rate method and is remeasured when there is a change in future lease payments. Upon remeasurement, a corresponding adjustment is made to the carrying amount of the right of use asset or is record ed in profit or loss if the carrying amount of the right of use asset has been reduced to zero. Right of use assets are presented in “property, plant and equipment” and lease liabilities are separately disclosed in the s tatement of financial position. ACCOUNTING POLICIES continued Accounting policy after July 1, 2019 continued Short term leases and leases of low value assets The Group has elected not to recognise right of use assets and lease liabilities for short-term leases of machinery and equipment that have a lease term of 12 months or less and leases of low value assets which include IT equipment, security equipment and administration equipment . 10 .1 RIGHT OF USE ASSETS Included in property, plant and equipment are the following leased assets: Amounts in R million Note Mine plant facilities and equipment Mine property and development Total June 30, 2020 Cost 11.1 45.0 56.1 Impact of adopting IFRS 16 on July 1, 2019 Right-of-use assets recognised on July 1, 2019 7.5 23.4 30.9 Transfers and other movements 1 26.5 - 26.5 Additions 3.8 14.2 18.0 Lease modifications - 7.5 7.5 Lease derecognitions (26.7) (0.1) (26.8) Accumulated depreciation (2.9) (8.3) (11.2) Impact of adopting IFRS 16 on July 1, 2019 Transfers and other movements 1 (15.9) - (15.9) Depreciation (4.9) (8.3) (13.2) Lease derecognitions 17.9 - 17.9 Carrying value 8.2 36.7 44.9 1 Relates to contracts previously classified as leases under IAS 17 and presented as property, plant and equipment which the Group has reassessed as right-of-use assets upon adoption of IFRS 16 as of July 1, 2019 Amounts in R million Note 2020 2019 Reconciliation of the lease liabilities balance: Balance at the beginning of the year 11.0 14.7 Impact of adopting IFRS 16 on July 1, 2019 9 30.9 - New leases 9 18.0 - Lease modifications 7.5 - Leases derecognised (8.9) - Interest charge on lease liabilities 7 5.1 2.0 Repayment of lease liabilities (2019: repayment of finance lease obligations) (11.4) (3.7) Interest repaid (5.1) (2.0) Balance at the end of the year 47.1 11.0 Current portion of lease liabilities (10.1) (11.0) Non-current lease liabilities 37.0 - Maturity analysis of undiscounted contractual cash flows: Less than a year 13.0 - One to five years 37.0 - More than 5 years 9.0 - Total undiscounted lease liabilities at June 30, 2020 59.0 - Lease payments not recognised as a liability but expensed during the year: Short-term leases 2.4 - Leases of low value assets 5.0 - Cash flows included in cash generated from operating activities 7.4 - |
PROVISION FOR ENVIRONMENTAL REH
PROVISION FOR ENVIRONMENTAL REHABILITATION | 12 Months Ended |
Jun. 30, 2020 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
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 ranging between 8.1 % and 9.5 % ( 2019 : between 7.6 % and 8.0 %), average inflation rate of 5.1 % ( 2019 : 5.5 %) and the discount periods as per the expected life-of-mine were used in the calculation of the es timated 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 annually 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 (decommissioning liabilities) are capitalised to property, plant and equ ipment 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 there is an indication that the revised car rying 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 interest element, and the capitalised co st 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 the production of inventories and sites without related assets (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 2020 2019 Opening balance 682.6 553.4 Acquisition of FWGR - 247.4 Unwinding of provision 7 52.0 66.3 Change in estimate of environmental rehabilitation recognised in profit or loss (a) 5.1 (21.9) (60.0) Change in estimate of environmental rehabilitation recognised to decommissioning asset (b) 9 (113.6) (97.0) Environmental rehabilitation payments (c) (30.2) (27.5) To reduce decommissioning liabilities (22.1) (16.6) To reduce restoration liabilities 14 (8.1) (10.9) Closing balance 568.9 682.6 Environmental rehabilitation payments to reduce the liability (30.2) (27.5) Ongoing rehabilitation expenditure 1 23 (24.3) (18.3) Total cash spent on environmental rehabilitation (54.5) (45.8) 1 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 (a) Change in estimate of environmental rehabilitation recognised in profit or loss The change in estimate of environmental rehabilitation recognised in profit or loss is mainly as a result of updated vegetation and machine hire rates to recent service level agreements and actual rates incurred and the discount rate (real rate) which was higher as a result of higher long-term SA government bond rates and lower inflation rates than in the prior year . (b) Change in estimate of environmental rehabilitat ion recognised to property, plant and equipment The change in estimate of environmental rehabilitation recognised to property, plant and equipment is mainly as a result of a change in the current life of mine plan which influenced the method of rehabilitat ion. The decrease is also as a result of an increase in the discount rate (real rate) which was higher as a result of higher long-term SA government bond rates and lower inflation rates than in the prior year . (c) Environmental rehabilitation payments The payments made against the provision for environmental rehabilitation consist mainly of rehabilitation work performed on the Brakpan/Withok Tailings Storage Facility and on the Crown Complex. GROSS COST TO REHABILITATE The Group estimates that, based on current environmental and regulatory requirements, the total undiscounted rehabilitation cost is approximately R 752.5 million ( 2019 : R 824.3 million). |
INVESTMENTS IN REHABILITATION O
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of investments in rehabilitation obligation funds [Abstract] | |
Investments in rehabilitation obligation funds | Amounts in R million Note 2020 2019 Cash and cash equivalents in environmental rehabilitation trust funds 542.2 508.9 Opening balance 508.9 118.0 Acquisition of FWGR - 360.4 Growth 6 33.3 30.5 Reimbursive right for environmental rehabilitation guarantees 83.8 78.6 Opening balance 78.6 126.0 Funds received - (55.2) Growth 6 5.2 7.8 626.0 587.5 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) 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 Amounts in R million 2020 2019 100bp increase 5.4 5.1 100bp (decrease) (5.4) (5.1) 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, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | ACCOUNTING POLICIES Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to cash without significant risk of changes in value and comprise cash on hand, demand deposits, and highly liquid investments which are readily convertibl e to known amounts of cash . Cash and cash equivalents are non-derivative financial assets categorised as financial assets measured at amortised cost. Cash and cash equivalents are initially measured at fair value. Subsequent to initial recognition, cash an d cash equivalents are measured at amortised cost, which is equivalent to their fair value. Amounts in R million Note 2020 2019 Cash on hand 63.5 125.2 Access deposits and income funds 1 1,632.3 136.0 Restricted cash 2 19.3 18.3 1,715.1 279.5 Interest earned on cash and cash equivalents 6 63.1 17.0 1 These consist of access deposit notes and conservatively managed income funds that are diversified across the major financial institutions in South Africa. At reporting date all of these instruments had same day or next day liquidity and effective annual yields of between 5.5% and 7% 2 These consist of cash held on call to fund environmental and other guarantees issued by the Standard Bank of South Africa Limited. 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 several major financial institutions, considering the credit ratings of the respective financial institutions , funds and underlying instruments . MARKET RISK Interest rate risk A change of 100 basis points (bp) in the interest rates would ha ve increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis is performed on the average balance of cash and cash equivalents for the year and assumes that all other variable s remain constant. The analysis excludes income tax Amounts in R million 2020 2019 100bp increase 10.0 2.8 100bp (decrease) (10.0) (2.8) Foreign denominated cash is held in a foreign currency bank account accruing negligible interest and is usually converted to South African Rand on the day of receipt. Foreign cash is therefore not exposed to significant interest rate risk. Foreign currency risk US Dollars received on settlement of the trade receivables are exposed to fluctuations in the US Dollar/South African Rand exchange rate until it is converted to South African Rands. The Group was not exposed to any fluctuations in the US Dollar/South African Rand exchange rate on any US Dollars at the current or previous reporting date as all the US Dollars held were converted to South African Rands . FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of cash and cash equivalents approximate s their carrying value due to their short-term maturities. |
CASH GENERATED FROM OPERATIONS
CASH GENERATED FROM OPERATIONS | 12 Months Ended |
Jun. 30, 2020 | |
Cash generated from operations [abstract] | |
Cash generated from operations | Amounts in R million Note 2020 2019 2018 Profit for the year 635.0 78.5 6.5 Adjusted for Income tax 18 343.9 26.6 25.9 Depreciation 9 270.8 169.1 168.0 Movement in gold in process and finished inventories - Gold Bullion 5.1 (3.1) (32.6) (24.5) Change in estimate of environmental rehabilitation 11 (21.9) (60.0) (2.9) Environmental rehabilitation payments 11 (8.1) (10.9) (3.4) Share-based payment expense 5.3 224.1 21.4 17.2 (Gain)/loss on disposal of property, plant and equipment 5.2 (0.7) (5.8) 0.6 Finance income 6 (109.8) (58.3) (38.8) Finance expense 7 68.8 78.4 58.4 Other non-cash items 2.6 1.8 1.3 Operating cash flows before other changes 1,401.6 208.2 208.3 Changes in (92.0) 73.8 14.6 Trade and other receivables (79.0) 22.5 22.2 Consumable stores and stockpiles (26.4) (24.8) (28.2) Payments made under protest 24 (10.6) (11.7) (27.4) Trade and other payables and employee benefits 24.0 87.8 48.0 Cash generated from operations 1,309.6 282.0 222.9 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Jun. 30, 2020 | |
Trade and other receivables [abstract] | |
Trade and other receivables | ACCOUNTING POLICIES Recognition and measurement Trade and other receivables, excluding Value Added Tax and prepayments, are non-derivative financial assets categorised as financial assets at amortised cost. 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 expected credit losses using the Group’s business model for managing its financial asset s. The Group derecognises a financial asset when the contractual 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 owner ship of the financial asset are transferred, or it neither 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 crea ted or retained by the Group is recognised as a separate asset or liability. Impairment The Group recognises loss allowances for trade and other receivables at an amount equal to expected credit losses (“ECLs”). The Group uses the simplified ECL approach. When determining whether the credit risk of a financial asset has increased since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This inc ludes both quantitative and qualitative information and analysis, based on informed credit assessments and including forward-looking information. The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is e xposed to credit risk. ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). The Group assesses whether the financial asset is credit impaired at each reporting date. A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cas h flows of the financial asset have occurred, including but not limited to financial difficulty or default of payment. The Group will write off a financial asset when there is no reasonable expectation of recovering it after considering whether all means t o recovery the asset have been exhausted, or the counterparty has been liquidated and the Group has assessed that no recovery is possible. Any impairment losses are recognised 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 usually received two working days from gold sold date. Amounts in R million 2020 2019 Trade receivables 23.1 - Value Added Tax 83.5 42.0 Other receivables 1 17.3 25.3 Prepayments 25.1 5.5 Allowance for impairment (2.6) (4.9) 146.4 67.9 1 Other receivables consist of a number of individually insignificant amounts receivable 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 establishing a maximum payment period of 30 days , an d ensuring that counterparties are of good credit standing and transacting on a secured or cash basis where considered necessary. The majority of other receivables comprises of balances with counterparties who have been transacting with the Group for over 5 years and in some of these cases, the counterparties are also suppliers of the Group. Receivables are regularly monitored and assessed for recoverability. The balances of counterparties who have been assessed as being credit impaired at reporting date are as follows: 2020 2019 Amounts in R million Non-credit impaired Credit impaired Non-credit impaired Credit impaired Trade receivables 23.1 - - - Other receivables 14.7 2.6 23.2 2.1 37.8 2.6 23.2 2.1 Loss allowance - (2.6) (2.8) (2.1) Movement in the allowance for impairment in respect of trade and other receivables during the year was as follows : Amounts in R million 2020 2019 Balance at the beginning of the year (4.9) (9.2) Impact of adopting IFRS 9 on July 1, 2018 Impairment recognised on other receivables included in operating costs - (3.2) Balance at the beginning of the year after adoption of IFRS 9 Financial Instruments (4.9) (12.4) Credit loss allowance/impairments recognised included in operating costs (0.2) (3.1) Credit loss allowance/impairments reversed included in operating costs 0.4 5.3 Credit loss allowance written off against related receivable 2.1 5.3 Balance at the end of the year (2.6) (4.9) MARKET RISK Interest rate risk Trade and other receivables do not earn interest and are therefore not subject to interest rate risk. F oreign currency risk Gold is sold at spot rates and is denominated in US Dollars. Gold sales and thus trade receivables, are therefore exposed to fluctuations in the US Dollar/South African Rand exchange rate. All foreign currency transactions are entered into during the year ended June 30, 2020 were at spot rates and no hedges are entered into . Figures in USD million 2020 2019 Foreign denomination of trade receivables at June 30 1.3 - 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 2020 2019 Strengthening of the Rand against the US Dollar (2.3) - Weakening of the Rand against the US Dollar 2.3 - 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, 2020 | |
Trade and other payables [abstract] | |
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 method. 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 paid if the Group has a present legal or constructive obligati on 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 Note 2020 2019 Trade payables and accruals 348.0 324.4 Accrued leave pay 46.9 39.0 Provision for short term performance based incentives 50.5 32.5 Payroll accruals 33.4 23.3 478.8 419.2 Interest relating to trade payables and accruals included in profit or loss (1.9) (2.0) RELATED PARTY BALANCES Trade payables and accruals include the following amounts payable to related parties: Sibanye-Stillwater 14.0 4.1 Rand Refinery 0.2 0.2 LIQUIDITY RISK Trade payables and accruals are all 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, 2020 | |
Inventories [abstract] | |
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 and stockpile materia l is based on the weighted 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 cost of completion and selling expenses . Amounts in R million 2020 2019 Consumable stores 165.6 145.2 Gold in process (a) 95.6 99.6 Finished inventories - Gold Bullion 62.2 59.8 Total inventories 323.4 304.6 Gold in process Gold in process at June 30, 2020 includes stockpiles of sand material trucked to the City Plant amounting to R 13.7 million ( June 30, 2019 : R 20.3 million). |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2020 | |
Major components of tax expense (income) [abstract] | |
Income tax | SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Management periodically evaluates positions taken where tax regulations are subject to interpretation. This includes the treatment of both Ergo and FWGR as single mining operation s respectively, pursuant to the relevant ring-fencing legislation. The deferred tax liability is calculated 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 over time. These assumptions and estimates include expected future profitability and timing of the reversal of the temporary differences. Due to the forecast weighted ave rage tax rate being based on a prescribed formula that increases the effective tax rate with 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 pe rformance. A 100 basis points increase in the effective tax rate will result in an increase in the net deferred tax liability at June 30, 2020 of approximately R 10.3 million ( 2019 : R 8.6 million; 2018 : R 8.0 million). The assessment of the probability that future taxable profits will be available against which the tax losses and unredeemed capital expenditure can be utilised requires the use of assumptions and estimates and are inh erently uncertain and could change materially over time. C apital expenditure is assessed by the South African Revenue Service (“ SARS ”) when it is redeemed against taxable mining income rather than when it is incurred. A different interpretation by SARS regarding the deductibility of these capital allowances may therefore become evident subsequent to the year of assessment when the capital expenditure 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 comprises 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 p revious year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised 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 d ate . Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts 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 assets 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 temporary differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. 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 % for all periods presented . All mining capital expenditure is deducted in the year it is incurred to the extent that it does not result in an a ssessed loss. Capital expenditure not deducted from mining income is carried forward as unutilised capital allowances to be deducted from future mining income . Amounts in R million 2020 2019 2018 Current tax (263.2) 1.6 (6.4) Mining tax (263.2) - - Non-Mining, company and capital gains tax - 1.6 (6.4) Deferred tax (80.7) (28.2) (19.5) Deferred tax charge - Mining tax (59.1) (14.8) (10.4) Deferred tax charge - Non-mining, company and capital gains tax (2.1) 1.6 3.7 Deferred tax rate adjustment (20.7) (15.0) (12.8) Recognition of previously unrecognised tax losses of a capital nature 1.2 - - (343.9) (26.6) (25.9) Tax reconciliation Major items causing the Group's income tax expense to differ from the statutory rate were: Tax on net profit before tax at the South African corporate tax rate of 28% (274.1) (30.2) (9.0) Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula (0.9) 7.4 3.5 Deferred tax rate adjustment (a) (20.7) (15.0) (12.8) Non-deductible expenditure (b) (29.3) (11.9) (9.8) Utilisation of tax losses for which deferred tax assets were previously unrecognised - - 2.6 Current year tax losses for which no deferred tax was recognised (c) (23.5) (2.7) (0.8) Exempt income and other non-taxable income 2.4 4.4 - Other items 0.4 16.8 - Tax incentives 0.6 1.7 0.4 Recognition of previously unrecognised tax losses of a capital nature 1.2 - - Over provided in prior periods - 2.9 - Income tax (343.9) (26.6) (25.9) (a) Deferred tax rate adjustment The forecast weighted average deferred tax rate increased from 22.0 % to 25.0 % as a result of a n in crease in forecast taxable income of Ergo ( 2019 : increased from 20.3 % to 22.0 % due to the in crease in forecast taxable income of Ergo; 2018 : in creased from 18 . 6 % to 20.3 % due to an in crease in forecast taxable income of Ergo ). ( b ) Non-deductible expenditure The most significant non-deductible expenditure incurred by the Group during the year includes : R 73.2 million depreciation on fair value of property, plant and equipment of FWGR to which the initial recognition exemption applies in terms of IAS 12 Income Taxes ( 2019 : R 16.6 million) ; R 7.1 million discount recognised on Payments made under protest ( 2019 : R 6.5 million ; 2018 : R 8.8 million ) ; R 14.6 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 ( 2019 : R 11.3 million; 2018 : R 7.5 million) ; and R 2.7 million expenditure not incurred in generation of taxable income ( 2019 : R 6.0 million; 2018 : R 15.0 million). Amounts in R million 2020 2019 Included in the statement of financial position as follows: Deferred tax assets 8.0 10.0 Deferred tax liabilities (273.1) (193.2) Net deferred tax liabilities (265.1) (183.2) Reconciliation of the deferred tax balance: Balance at the beginning of the year (183.2) (155.0) Recognised in profit or loss (80.7) (28.2) Recognised in other comprehensive income (1.2) - Balance at the end of the year (265.1) (183.2) The detailed components of the net deferred tax liabilities which result from the differences between the amounts of assets and liabilities recognised for financial reporting and tax purposes are: Amounts in R million 2020 2019 Deferred tax liabilities Property, plant and equipment (excluding unredeemed capital allowances) (422.4) (380.2) Environmental rehabilitation obligation funds (51.4) (32.0) Other temporary differences 1 - (0.6) Investments (1.2) - Gross deferred tax liabilities (475.0) (412.8) Deferred tax assets Environmental rehabilitation obligation 126.5 112.6 Other provisions 72.6 33.8 Other temporary differences 1 8.5 - Estimated capital losses 1.2 - Estimated unredeemed capital allowances 1.1 83.2 Gross deferred tax assets 209.9 229.6 Net deferred tax liabilities (265.1) (183.2) 1 Includes the temporary differences on the lease liability Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2020 2019 Provisions 20.3 - Estimated tax losses 22.0 19.4 Estimated tax losses - Capital nature 324.0 329.9 Unredeemed capital expenditure 254.7 254.8 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, 2020 | |
Employee benefits [Abstract] | |
Employee benefits | ACCOUNTING POLICIES Cash settled share-based payments (“ outgoing l ong- t erm i ncentive ) 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-market conditions are reviewed at each reporting date to ensure they reflect current expectations. Equity settled share-based payments (“ new l ong- t erm i ncentive ) The grant date fair value of equity settled share-based payment arrangements is recognised as a n expense, with a corresponding increase in equity, over the vesting period of the awards. The expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amo unt ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at vesting date . Post-retirement medical benefit The Group's net obligation in respect of long - term employee benefits is the amou nt 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 2020 2019 Non-current employee benefits 10.1 37.4 Liability for long-term incentive scheme 19.1 - 28.4 Liability for post-retirement medical benefits 1 10.1 9.0 Current employee benefits 227.6 22.6 Liability for long-term incentive scheme 19.1 227.6 22.6 Total employee benefits 237.7 60.0 1 Unfunded medical aid benefit plan 19 .1 CASH SETTLED LONG - TERM INCENTIVE SCHEME (“outgoing LTI scheme”) Terms of the November 2015 grant made under the DRDGOLD Group's outgoing LTI 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 2020 2019 Movements in the total liability for long-term incentive scheme is as follows: Opening balance 51.0 45.1 Increase in long-term incentive liability 5.3 218.1 21.4 Vested and paid (41.5) (15.5) Total liability for long-term incentive scheme 227.6 51.0 The total liability for long-term incentive scheme is expected to be settled as follows: 227.6 51.0 Within 12 months after reporting date 227.6 22.6 After 12 months after reporting date - 28.4 Reconciliation of outstanding phantom shares 2020 2019 Weighted Weighted average average Shares price Shares price Number R per share Number R per share Opening balance 16,157,058 20,189,467 Granted - - 388,547 3.37 Vested and paid (5,674,252) 7.31 (4,037,883) 3.82 Forfeited (637,168) 7.08 (383,073) 4.37 Closing balance 9,845,638 16,157,058 19 EMPLOYEE BENEFITS continued 19 .1 CASH SETTLED LONG-TERM INCENTIVE SCHEME (“outgoing LTI 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 : 2020 2019 Grant date 7-day VWAP of the DRDGOLD Limited share 25.14 4.37 2.26 Annualised forward dividend yield 1.0% 4.3% 4.3% On December 2, 2019 , the shareholders approved a new equity settled long-term incentive scheme to replace the cash settled long-term incentive scheme established in November 2015 . Under the new LTI scheme, qualifying employees are awarded conditional shares on an annual basis, comprising performance shares ( 80 % of the total conditional shares awarded) and retention shares ( 20 % of the total condit ional shares awarded). Conditional shares will vest 3 years after grant date and will be settled in the form of DRDGOLD shares at a zero-exercise price. The first grant was made on December 2, 2019 and will vest in two tranches, 50 % on the 2 nd anniversary and the remaining 50 % on the 3 rd anniversary of the grant date respectively, provided the employee is still within the employ ment of the Group until the respective vesting dates . The key conditions of the December 2019 grant made under the long-term incen tive scheme are : Retention shares: 100 % of the retention shares will vest if the employee remains in the employ of the Company at vesting date and individual performance criteria are met. Performance shares: Total shareholder’s r eturn (TSR) measured against a hurdle rate of 15 % referencing DRDGOLD’s Weighted Average Cost of Capital “WACC” : • 50 % of the performance shares are linked to this condition ; and • all of these performance shares will vest if DRDGOLD’s TSR exceeds the hurdle rate o ver the vesting period TSR measured against a peer group of 3 peers (Sibanye-Stillwater, Harmony Limited and Pan-African Resources Limited) : • 50 % of the performance shares are linked to this condition ; and • The number of performance shares which vest is based on DRDGOLD’s actual TSR performance in relation to percentiles of peer group’s performance as follows: Percentile of peers % of performance shares vesting < 25th percentile 0% 25th to < 50th percentile 25% 50th to < 75th percentile 75% ≥ 75th percentile 100% Movement in the number of conditional shares for the reporting period are as follows: Conditional shares Grant date December 2, 2019 Vesting date Total December 2, 2021 December 2, 2022 Opening balance - - - Granted 5,860,760 2,930,380 2,930,380 Closing balance 5,860,760 2,930,380 2,930,380 19 EMPLOYEE BENEFITS continued 19 .2 EQUITY-SETTLED LONG-TERM INCENTIVE SCHEME continued Fair value The weighted average fair value of the performance and retention shares at grant date were determined using the Monte Carlo simulation pricing model applying the following key inputs : Conditional shares Grant date December 2, 2019 Vesting date December 2, 2021 December 2, 2022 Weighted average fair value of 80% performance shares 1 4.26 4.12 Weighted average fair value of 20% retention shares 5.69 5.49 Expected term (years) 2 3 Grant date share price of a DRDGOLD share 6.15 6.15 Expected dividend yield 3.86% 3.81% Expected volatility 2 53.80% 53.80% Expected risk free rate 6.68% 6.80% 1 The performance conditions are included in the measurement of the grant date fair value as they are classified as market-based performance conditions 2 Expected volatility has been based on an evaluation of the historical volatility of DRDGOLD’s share price, commensurate with the expected term of the options 19 . 3 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL Inte rests 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 entered into during the year ended June 30, 2020 or the preceding financial years, or in any proposed transaction which has affected or will materially affect DRDGOLD or its subsidiaries other than disclosed in these financial statements . None of the directors or officers of DRDGOLD or any associate of such director or o fficer 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 2020 2019 2018 - Board fees paid 6.2 5.8 5.6 - Salaries paid 67.3 61.7 53.6 - Short term incentives relating to this cycle 63.6 31.5 22.5 - Long term incentives paid during the cycle 19.1 41.5 15.5 2.8 - Retrenchments - 1.6 - 178.6 116.1 84.5 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital Management | 20 CAPITAL MANAGEMENT The primary objective of the Group's capital management policy is to ensure that adequate capital is available to meet the requirements of the Group from time to time , including capital expenditure. The Group consider s the appropriate capital management strategy for specific growth projects as and when required. Lease liabilities are not considered to be debt . Liquidity management At June 30, 2020 and June 30, 2019 t he Group’s facilities include d a n undrawn R 300 million Revolving Credit Facility (“ RCF ”) which was initially secured to finance the development of Phase 1 of FWGR as well as the general working capital requirements of the Group . In December 201 8 , R 125 million of the RCF was committed to issue a guaran tee to Ekurhuleni Local Municipality (refer note 24 ). In September 2020, the RCF was amended to a R 200 million uncommitted facility and extended for an additional term of 2 years with a final repayment date of September 14, 2022. The initial and amended RCF permits a consolidated debt ratio (net debt to adjusted EBITDA) of at most 2:1 and a consolidated interest coverage ratio (net interest to adjusted EBITDA) of at least 4:1 calculated on a twelve-month rolling basis respectively. Man agement monitors the covenant ratio levels to ensure compliance with the covenants, as well as maintain sufficient uncommitted facilities to ensure satisfactory liquidity for the Group. The covenant ratios were not breached during the year ended June 30, 2020 . The amendment included the reduction of the initial interest rate margin of 3.25 % to 2.75 %. A pledge and cession of DRDGOLD’s shares in and shareholder claims against Ergo Mining Proprietary Limited and Far West Gold Recoveries Proprietary limited rem ains in place as security for the RCF . |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2020 | |
Equity [abstract] | |
Equity | ACCOUNTING POLICIES Stated 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 share capital (treasury shares) When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognised a s a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from stated share capital. Dividends Dividends are recognised as a liability on the date on which they are declared which is the date when the shareholders’ right to the dividends vest s . All ordinary shares rank equally regarding the Company’s residual assets. Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. All rights attached to the Company’s shares held by the Group are suspended until those shares are reissued . In terms of an ordinary resolution passed at the previous annual general meeting, the r emaining unissued ordinary shares in the company are under the control of the directors until the next general meeting. Amounts in R million 2020 2019 2018 Authorised share capital 1,500,000,000 (2019 and 2018: 1,500,000,000) ordinary shares of no par value 5,000,000 (2019 and 2018: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 864,588,711 (2019: 696,429,767, 2018: 431,429,767) ordinary shares of no par value (a) 6,208.4 5,123.3 4,227.9 9,474,920 (2019: 9,474,920, 2018: 9,361,071) treasury shares held within the Group (b) (51.0) (51.0) (50.7) 5,000,000 (2019 and 2018: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 6,157.9 5,072.8 4,177.7 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (a) Ordinary shares issued Sibanye-Stillwater and its subsidiaries and associates became related parties to the Group on July 31, 2018 when the a cquisition of FWGR became unconditional. DRDGOLD issued 265 million new ordinary shares ( 38.05 % of its outstanding shares) and an option t o subscribe for new ordinary shares up to a total of 50.1 % of the total issued ordinary shares of DRDGOLD (“ Option ”) as purchase consideration for these assets . On January 8 , 2020 Sibanye-Stillwater exercised the O ption and on January 22, 2020 it subscribed for 168,158,944 S hares (“ Subscription Shares ”) at an aggregate subscription price of R 1,085.6 million . The Subscription Shares were allotted and issued at a price of R 6.46 per Share, being a 10 % discou nt to the 30-day volume weighted average traded price of a Share on the day immediately prior to the date of exercise of the Option. (b) 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, 2020 ( June 30, 2019 113,849 shares were acquired at an average price of R 2 . 68 ; 2018 : nil s hares acquired ). D ividends amounting to R 6 . 6 million were received on these shares during the current year ( 2019 : nil ; 2018 : R 0.9 million). Amounts in R million 2020 2019 2018 Dividends paid during the year net of treasury shares: Final dividend declared relating to prior year: 20 SA cents per share (2019: nil SA cents per share; 2018: 5 SA cents per share) 137.5 - 21.1 First interim dividend: 25 SA cents per share (2019: nil SA cents per share; 2018: 5 SA cents per share) 213.8 - 21.1 Second interim dividend 25 SA cents per share (2019: nil SA cents per share; 2018: nil SA cents per share) 213.8 - - Total 565.1 - 42.2 After June 30, 2020 , a dividend of 35 cents per qualifying share amounting to R 299.3 million was approved by the directors as a final dividend for the year ended June 30, 2020 . The dividend has not been provided for and does not have any tax impact on the C ompany. |
INTEREST IN SUBSIDIARIES
INTEREST IN SUBSIDIARIES | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of subsidiaries [abstract] | |
Disclosure of subsidiaries [text block] | 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 and Far West Gold Recoveries Proprietary Limited are the only significant subsidiaries of the Group. They are both wholly owned subsidiaries and are incorporated in South Africa, are primarily involved in the retreatment of surface gold and all their operations are based in South Africa. |
OPERATING SGEMENTS
OPERATING SGEMENTS | 12 Months Ended |
Jun. 30, 2020 | |
Operating Segments [abstract] | |
Disclosure of entitys reportable segments [text block] | 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 t he Group’s Executive Committee. The Group has one revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational structure and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants and reclamation sites that, together with its tailings storage facility, is capable of operating independently. When assessing profitability, the CODM considers , inter alia , the revenue and production c osts 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 ope rating profit or loss, result in the working profit or loss. Ergo is a surface gold retreatment operation which treats old slime dams and sand dumps to the south of Johannesburg’s central business 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 metallurgical plants . FWGR is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields. Phase 1, which entails the reconfiguration of the Driefontein 2 plant and relevant infrastructure to process tailings from the Driefontein 5 slimes dam and depo sit residues on the Driefontein 4 Tailings Storage Facility, was commissioned on 1 April 2019. 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 chief operating decision maker and are therefore included in the disclosure here, even though they do not earn revenue. This includes taking into consideration the Group’s adjusted EBITDA for the purpose of the covenants impo sed by the Company’s b orrowings that was initially entered into to finance the development of Phase 1 of FWGR and working capital requirements of the Group (refer note 20 ) . Other 2020 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 3,064.3 1,120.7 - 4,185.0 Cash operating costs (2,274.0) (352.0) - (2,626.0) Movement in gold in process and finished inventories - Gold Bullion 1.8 1.3 - 3.1 Operating profit 792.1 770.0 - 1,562.1 Administration expenses and other costs (131.6) (20.7) (157.6) (309.9) Interest income 1 13.9 2.9 50.6 67.4 Interest expense 2 (5.2) - (4.5) (9.7) Current tax (145.8) (117.4) - (263.2) Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Additions to property, plant and equipment (114.4) (68.0) (0.3) (182.7) Working profit/(loss) after additions to property, plant and equipment 409.0 566.8 (111.8) 864.0 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 297.1 424.9 (87.0) 635.0 - Deferred tax (6.6) 86.5 0.8 80.7 - Net other operating costs/(income) 51.5 14.8 (24.5) 41.8 - Ongoing rehabilitation expenditure 22.3 2.0 - 24.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.2 - - 3.2 - Unwinding of provision for environmental rehabilitation 36.5 14.3 1.2 52.0 - Growth in investment in environmental obligation funds (11.2) (25.2) (2.1) (38.5) - Other income (0.7) - - (0.7) - Change in estimate of environmental rehabilitation recognised in profit or loss (19.1) (2.1) (0.7) (21.9) - Depreciation 150.4 119.6 0.8 270.8 Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Statement of cash flows Cash inflows from operating activities 546.1 563.1 19.7 1,128.9 Cash outflows from investing activities (135.7) (60.1) (6.7) (202.5) Cash (outflows)/inflows from financing activities (405.5) (500.8) 1,415.5 509.2 Reconciliation of adjusted EBITDA Profit for the year 635.0 Income tax 343.9 Profit before tax 978.9 Finance expense 68.8 Finance income (109.8) Results from operating activities 937.9 Depreciation 270.8 Share-based payment expense 224.1 Change in estimate of environmental rehabilitation recognised in profit or loss (21.9) Gain on disposal of property, plant and equipment (0.7) Transaction costs 1.4 Adjusted EBITDA 1 1,411.6 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. Other 2019 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 2,577.5 184.6 - 2,762.1 Cash operating costs (2,311.1) (111.8) - (2,422.9) Movement in gold in process and finished inventories - Gold Bullion 16.4 16.2 - 32.6 Operating profit 282.8 89.0 - 371.8 Retrenchment costs (1.6) (4.7) - (6.3) Administration expenses and other costs (12.0) (2.3) (76.6) (90.9) Interest income 1 6.5 - 10.4 16.9 Interest expense 2 (2.4) - (3.2) (5.6) Current tax 1.6 - - 1.6 Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Additions to property, plant and equipment (22.8) (330.7) (0.2) (353.7) Working profit/(loss) after additions to property, plant and equipment 252.1 (248.7) (69.6) (66.2) 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 82.3 28.7 (32.5) 78.5 - - - - - Deferred tax 16.2 13.4 (1.4) 28.2 - Net other operating costs/(income) 40.2 15.4 (25.7) 29.9 - Ongoing rehabilitation expenditure 16.6 1.7 - 18.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.5 - - 3.5 - Unwinding of provision for environmental rehabilitation 45.4 19.6 1.3 66.3 - Growth in investment in environmental obligation funds (11.3) (22.5) (4.6) (38.4) - Other income (2.2) - (5.7) (7.9) - Change in estimate of environmental rehabilitation recognised in profit or loss (58.6) - (1.4) (60.0) - Depreciation 142.8 25.7 0.6 169.1 - - - - Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Statement of cash flows Cash inflows/(outflows) from operating activities 221.7 89.3 (22.7) 288.3 Cash (outflows)/inflows from investing activities (39.4) (324.4) 60.8 (303.0) Cash (outflows)/inflows from financing activities (291.7) 236.7 47.1 (7.9) Reconciliation of adjusted EBITDA Profit for the year 78.5 Income tax 26.6 Profit before tax 105.1 Finance expense 78.4 Finance income (58.3) Results from operating activities 125.2 Depreciation 169.1 Share-based payment expense 21.4 Change in estimate of environmental rehabilitation recognised in profit or loss (60.0) Gain on financial instruments at fair value through profit or loss (2.1) Gain on disposal of property, plant and equipment (5.8) Retrenchment costs 6.3 - - - - Adjusted EBITDA 1 254.1 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. 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 and finished inventories - Gold Bullion 24.5 - 24.5 Operating profit 355.2 - 355.2 Administration expenses and other 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 additions to property, plant and equipment 347.2 (70.8) 276.4 Additions to property, plant and equipment (125.2) (0.9) (126.1) - - - Working profit/(loss) after additions to property, plant and equipment 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 Payments made under protest 3 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 53.3 (46.8) 6.5 - Deferred tax 23.2 (3.7) 19.5 - Net other operating (costs)/income 36.2 (15.6) 20.6 - Ongoing rehabilitation expenditure 26.7 - 26.7 - Discount recognised on Payments made under protest including subsequent unwinding 8.1 - 8.1 - Unwinding of provision for environmental rehabilitation 44.3 1.3 45.6 - Loss on disposal of property, plant and equipment 0.6 - 0.6 - Growth in environmental rehabilitation obligation funds (10.1) (6.2) (16.3) - Change in estimate of provision for environmental rehabilitation recognised in profit or loss (2.5) (0.4) (2.9) - Depreciation 167.4 0.6 168.0 Working profit/(loss) before additions to property, plant and equipment 347.2 (70.8) 276.4 Statement of cash flows Cash inflows/(outflows) from operating activities 285.3 (51.5) 233.8 Cash outflows from investing activities (140.2) (0.2) (140.4) Cash outflows from financing activities (2.8) (42.2) (45.0) |
PAYMENTS MADE UNDER PROTEST
PAYMENTS MADE UNDER PROTEST | 12 Months Ended |
Jun. 30, 2020 | |
Payments made under protest [abstract] | |
Payments made under protest | SIGNIFICANT ACCOUNTING JUDGEMENTS Payments made under protest The determination of whether the payments made under protest give rise to an asset or a contingent asset or neither, required the use of significant judgement. The definition of an asset in the conceptual framework was applied, with the consideration of the facts and circumstances surrounding the payments made under protest. In applying the definition of an asset management considered the following: p ayments were made under protest and without p rejudice or admission of liability. S uch payments were not made as a settlement of deb t or recognition of expenditure; t he Group therefore retains a right to recover the payments from the City of Ekurhuleni Metropolitan Municipality (“ Municipality ”) if the Group is suc cessful in the Main Application; i f the G roup is not successful in the Main Application, the payments will be used to settle the resultant liability to the Municipality ; and t hese two possible outcomes (i.e. success in the Main Application or not) therefore, will lead to economic benefits to the Group. Therefore, the right to recover the payments made under protest is not a contingent asset because it meets the definition and recognition criteria of an asset . No specific guidanc e exists in developing an accounting policy for such asset. Therefore management applied judgement in developing an accounting policy that would lead to information that is relevant to the users of these financial statements and information that can be rel ied upon . Contingent liabilities The assessment of whether an obligating event results in a liability or a contingent liability requires 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. SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The discounted amount of the Payments made under protest is determined using assumptions about the future that are inherently uncertain and can change materially over time and includes the discount rate and discount period. These assumptions about the future include estimating the ti ming of concluding on the main application, i.e. the discount period, the ultimate settlement terms, the discount rate applied and the assessment of recoverability . ACCOUNTING POLICIES Payments made under protest Recognition and measurement The asset that arises from the Municipality Electricity Tariff Dispute and that are payments made under protest is initially measured at a discounted amount and any difference between the face value of payments made under protest and the discounted amount on initial recognition is recognised in profit or loss as a finance expense. Subsequent to initial recognition, the Payments made under protest is measured using the effective interest method to unwind the discounted amount to the original face value less any write downs for recovery. Unwinding of the carrying value and changes in the discount period are recognised in profit or loss. Assessment of recoverability The discounted amount of the payments under protest is assessed at each reporting date to determ ine whether there is any objective evidence that the full amount is no longer expected to be recovered. The Group considers the reasonable and supportable information related to the creditworthiness of Ekurhuleni Metropolitan Municipality and events surrou nding the outcome of the Main Application. Any write down is recognised in profit or loss. Contingent liabilities A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occu rrence 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 th e 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 the Group can reliably measure the obligation, a prov ision is recognised. Ekurhuleni Metropolitan Municipality (" Municipality ") Electricity Tariff Dispute There are primarily 3 (three) legal proceedings for which relief has been sought in the appropriate legal fora and all of which fall within the jurisdiction of the High Court of South Africa, Gauteng Local Division, Johannesburg. These comprise of an application brought by Ergo and actions brought under two summons es by the Municipality. In order to operate the Ergo Plant and conduct its business operations, Ergo requires a reliable and steady feed of electricity which it draws from the Ergo Central Substation. Over the past several years the Municipality has charged Ergo for such electricity, at the Megaflex tariff at which E SKOM Holdings SOC Limited (“ ESKOM ”) charges its large power users plus an additional surcharge, as it still does; and Ergo paid therefor. Pursuant to its own investigations, and after having sought legal advice on the matter, Ergo determined that only ESKOM may legitimately charge it for the electricity so drawn and consumed at the Ergo Plant, specifically from the Ergo Central Substation. Despite this, ESKOM refused to either accept payment from Ergo in respect of such electricity consumption or to conclude a consumer agreement with it. In December 2014, Ergo instituted legal proceedings by way of an application (“ Main Application ”) against the Municipality and ESKOM as well as the National Energy Regulator of South Africa (“ NERSA ”), the Minister of Energy, 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. Ergo seeks the undermentioned relief: declaring that the Municipality does not supply electricity to it at the Ergo Plant; 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; declaring that neither the Municipality nor E SKOM may lawfully insist that only the Municipality may supply electricity to Ergo at the Ergo Plant; declaring that E SKOM presently supplies electricity to Ergo at the Ergo Plant; and directing E SKOM to conclude a consumer agreement with Ergo for the supply of electricity at the Ergo Plant at its Megaflex tariff. The Municipality has since issued two summonses (“ Summonses ”) for the recovery of arrears it alleges it is owed amounting to R 74 .0 m illion and R 31.6 m illion, respectively . In the interest of the proper administration of justice, the Main Application was postponed by agreement between the parties and a case manager was appointed to deter mine a collaborative process to facilitate the effective and efficient court scheduling and coordination of both the Main Application and the Summonses. In order to secure uninterrupted supply of electricity, Ergo has made payment and continues to pay for consumption at the amended and lower “J-Tariff”, albeit under protest and without prejudice and/or admission of liability. Whilst still deemed to be disp roportionate, the J-Tarif is significantly lower than the previously imposed “D-Tariff”. The Group recognised an asset for these payments that are made “under protest”. Ergo has also brought an application for the consolidation of both the Main Applicatio n and the actions brought under the Summonses. The group supported by the external legal team is confident that there is a high probability that Ergo will be successful in the Main Application and defending the Summonses. Therefore, there is no present obl igation as a result of a past event to pay the amounts claimed by the Municipality Amounts in R million Note 2020 2019 Balance at the beginning of the year 27.6 19.4 Payments made under protest 10.6 11.7 Discount on initial payment made under protest 7 (7.1) (6.5) Unwinding 6 3.9 3.0 Balance at the end of the year 35.0 27.6 The balance at the end of the year was based on the following assumptions : d iscount rate: 11.68 % ( 2019 : 11.68 % ) representing the Municipality maximum cost of borrowing on bank loans as disclosed in the ir June 30, 2019 annual report; and discount period: June 30, 202 2 ( 2019 : June 30, 202 1 ) representing management’s best estimate of the date of conclusion of the Main Application. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Jun. 30, 2020 | |
Other Investments [abstract] | |
Other investments | SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The fair value of the listed equity instrument is determined based on quoted prices on an active market. Equity instruments which are not listed on an active market are measured using other applicable valuation techniques depending on the extent to which the technique maximises the use of relevant observable inputs and minimizes the use of unobservable inputs. Where discounted cash flows are used, the estimated cash flows are based on management’s best estimate based on readily available information at measurement date. The discounted cash flows contain assumptions about the future that are inherently uncertain and can change materially over time. ACCOUNTING POLICIES On initial recognition of an equity i nvestment that is not held for trading, the Group may make an irrevocable election to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis. 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 are recognised in OCI, and are never reclassified to profit or loss , with dividends recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. The Group’s listed and unlisted investments in equity securities are classified as equity instruments at fair value throug h other comprehensive income (OCI). Amounts in R million Shares held % held 2020 2019 Listed investments (Fair value hierarchy Level 1): West Wits Mining Limited (" WWM ") 1 47,812,500 5.1% 12.0 3.3 Total listed investments 12.0 3.3 Unlisted investments (Fair value hierarchy Level 3): Rand Refinery Proprietary Limited (" Rand Refinery ") 2 44,438 11.3% 178.4 - Rand Mutual Assurance Company Limited B Share Business Fund (" RMA ") 2,3 12,659 1.3% 4.7 - Guardrisk Insurance Company Limited (Cell Captive A170) 2,4 20 # 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 2 42,292 4.5% 0.1 0.1 Total unlisted investments 183.3 0.2 Balance at the end of the year 195.3 3.5 Dividends received on equity instruments at fair value through OCI (RMA) 6 (4.3) - Fair value adjustment on equity instruments at fair value through OCI 191.8 (5.9) 1 Listed 2 Unlisted 3 The 1 "B Share Business Fund" share relates to all the businesses of the RMA Group that do not relate to the Compensation for Occupational Injuries and Diseases Act 4 The shares held entitles the holder to 100% of the residual net equity of Cell Captive A 170 after settlement of the reimbursive right 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 s of listed investments are determined by reference to published price quotations from recognised securities exchanges and constitute level 1 instruments i n the fair value hierarchy. Unlisted investmen ts The fair values of un listed investments are determined through valuation techniques that include inputs that are not based on observable market data and constitute level 3 instruments i n the fair value hierarchy. Investment in Rand Refinery During the current reporting period, Rand Refinery demonstrated increased stability in its operations, continued ability to meet budget and made a substantial redemption of redeemable preference shares to its other shareholders, therefore strengthening its financial position. DRDGOLD does not hold any redeemable preference shares in Rand Refinery. Rand Refinery also benefited from significant increases in Krugerrand sales and the increase in the Rand denominated gold price . Historically the fair value of Rand Refinery was estimated to be de minimus , however because of the above aforementioned factors, the fair value of Rand Refinery has been significantly impacted and it is no longer reasonable to estimate fair value as de minimus . The fair value of DRDGOLD’s 11.3 % interest in Rand Refinery at year end is estimated to be R 178.4 million. The investment is designated as an equity instrument at fair value through other comprehensive income . In accordance with IFRS 13 Fair Value Measurement , the income approach has been established to be the most appropriate basis to estimate the fair value in the current year. This method relies on the future budgeted cash flows as determined by Rand Refinery . Management engaged the u se of an independent external valuation expert to assist with the valuation. The Rand Refinery operations (excluding Prestige Bullion) were valued using the Free Cash Flow model, whereby an enterprise value using a Gordon Growth formula for the terminal va lue was estimated. The dividends received by Rand Refinery from joint v enture – Prestige Bullion were valued using a finite life dividend discount model as Rand Refinery’s shareholding will be reduced to nil in 2032. The fair value measurement uses signifi cant unobservable inputs and relates to a fair value hierarchy level 3 financial instrument . Key observable/unobservable inputs into the model include : Amounts in R million Observable/unobservable input Rand Refinery operations Average gold price Observable input R852,098/kg Average silver price Observable input R9,453/kg Average South African CPI Observable input 4.8% Terminal growth rate Unobservable input 5.0% Weighted average cost of capital Unobservable input 15.1% Investment in Prestige Bullion Discount period Unobservable input 13 years Cost of equity Unobservable input 13.2% Marketability and minority discounts (both unobservable inputs) were also applied of 16.5 % and 17 .0 % respectively. The latest budgeted cash flow forecasts provided by Rand Refinery as at June 30, 2020 was used, and therefore classified as an unobservable input into the models . Sensitivity analysis The fair value measurement is most sensitive to the R and denominated gold price and volumes. The higher the gold price and volumes, the higher the fair value of the investment in Rand Refiner y . The below table indicates the extent of sensitivity of the fair value to the inputs : Input % change in OCI, net of tax Amounts in R million Increase Decrease Increase Decrease Rand Refinery operations Rand US Dollar exchange rate Observable inputs 1% (1%) 2.1% (2.2%) Commodity prices (Gold and silver) Observable inputs 1% (1%) 1.7% (1.8%) Volumes Unobservable inputs 1% (1%) 2.0% (2.0%) Weighted average cost of capital Unobservable inputs 1% (1%) (1.7%) 2.0% Minority discount Unobservable inputs 1% (1%) (1.2%) 1.2% Marketability discount Unobservable inputs 1% (1%) (1.2%) 1.2% Investment in Prestige Bullion = Cost of equity Unobservable inputs 1% (1%) (1.3%) 1.4% Prestige Bullion dividend forecast Unobservable inputs 1% (1%) 0.4% (0.4%) Impact of the COVID 19 pandemic The COVID-19 pandemic had an impact on the gold market and the operations of Rand Refinery as a result of the South African national lockdown. The first-year budget cash flows have been adjusted based on relevant information available as at June 30, 2020 , regarding the estimated impact going forward and on the assumption that operations will normalise by November 2020 . |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 30, 2020 | |
Contingencies [abstract] | |
Disclosure of other provisions, contingent liabilities and contingent assets [text block] | 26 CONTINGENCIES SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether an obligating event results in a liability or a contingent liability require s 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 Contingent liabilities A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain futur e 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 probabl e, 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 the Group can reliably measure the obligation, a provision is recognised. Contingent asset s Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. Contingent assets are not recognised, but they are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain an asset is recognised in the statement of financial position, because that asset is no longer considered to be contingent . 26 .1 CONTINGENT LIABILITY FOR OCCUPATIONAL LUNG DISEASES On May 3, 2018, former mineworkers and dependents of deceased mineworkers (“ Applicants ”) and Anglo American South Africa Limited, AngloGold Ashanti Limited, Sibanye Gold Limited trading as Sibanye-Stillwater, Harmony Gold Mining Company Limited, Gold Fields Limited , African Rainbow Minerals Limited and certain of their affiliates (“ Settling Companies ”) settled the class certification application in which the Applicants in each sought to certify class actions against gold mining houses cited therein on behalf of mineworkers who had worked for any of the particular respondents and who suffer f rom any occupational lung disease, including silicosis or tuberculosis. The DRDGOLD Respondents, comprising DRDGOLD Limited and East Rand Proprietary Mines Limited, are not a party to the settlement between the Applicants and Settling Companies. The settle ment agreement is not binding on the DRDGOLD Respondents. The dispute, insofar as the class certification application and appeal thereof is concerned, still stands and has not terminated in light of the settlement agreement. DRDGOLD 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 c lass action against the DRDGOLD Respondents; • many principles upon which legal responsibility is 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. 26 .2 CONTINGENT LIABILITY FOR ENVIRONMENTAL REHABILITATION 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 fl ooding of the western and central basins ha s 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 construct a partial treatment plant to p revent 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 TC TA, 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 under ground 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 setoff against any future directives to make any contribution t oward 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, to reduce Ergo’s reliance on potable water for mining and processing purposes. While the h eads 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 become necessary, it is an encouraging developme nt. 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. 26 .3 CONTINGENCIES REGARDING EKURHULENI METROPOLITAN MUNICIPALITY ELECTRICITY TARIFF DISPUTE Refer note 24 PAYMENTS MADE UNDER PROTEST for a full description of the matter . Contingent liability The Municipality has issued two summonses for the recovery of arrears it alleges it is owed amounting to R 74.0 million and R 31.6 million, respectively. The group supported by the external legal team is confident that there is a high probability that Ergo will be successful in defending the Summonses. Therefore, there is no present obligation as a result of a past event to pay the a mounts claimed by the Municipality. Contingent asset Ergo instituted a counterclaim against the Municipality for the recovery of the surcharges which were erroneously paid to the Municipality in the bona fide belief that they were due and payable prior to the Main Application of approximately R 43 million (these surcharges were expensed for accounting purposes). |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of financial instruments [text block] | 27 FINANCIAL INSTRUMENTS CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting pe riod following the change in business model. A financial asset shall be measured at amortised cost if both the following conditions are met: the financial asset is held within a business model whose objective is to hold financial assets in order to collec t contractual cash flows; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. An investment is measured at fair value through other comprehensive income if it meets both of the following conditions and is not designated as at fair value through profit or loss: It is held with a business model whose objective achieved by both collecting contractual cash flows and selling financial assets; and Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. FINANCIAL RISK MANAGEMENT FRAMEWORK 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 20 . This note must be read with the quantitative disclosures included throughout these consolidated financial statements. The board of directors (“ Bo ard ”) has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established the Audit and Risk Committee (“ ARC ”) , which is responsible for developing and monitoring the Group’s risk management po licies. 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 adheren ce 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 develop a disciplined and constru ctive control environment in which all employees understand their roles and obligations. The ARC oversees how management monitors compliance with the Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The ARC is assisted in its oversight role by the internal audit function. The internal audit function undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the ARC. 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 trade and other receivabl es. 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 following notes: NOTE 12 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES 27 FINANCIAL INSTRUMENTS continued FINANCIAL RISK MANAGEMENT FRAMEWORK 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 management 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 25 OTHER INVESTMENTS 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 invested in a manner to achieve maximum returns while minimising r isks. 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 12 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS NOTE 13 CASH AND CASH EQUIVALENTS Foreign 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 followi ng notes: NOTE 15 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 unacceptable losses or risking damage to the Group’s reputation. The Group ensures that it has suffici ent cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Additional disclosures are included in the following note: NOTE 10 .2 LEASES NOTE 16 TRADE AND OTHER PAYABLES NOTE 20 CAPITAL MANAGEMENT |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Related Party [Abstract] | |
Disclosure of related party [text block] | 28 RELATED PARTIES Disclosures are included in the following notes: NOTE 5 COST OF SALES NOTE 16 TRADE AND OTHER PAYABLES NOTE 19 . 3 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL NOTE 21 EQUITY NOTE 22 INTEREST IN SUBSIDIARIES |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent events [abstract] | |
Disclosure of events after reporting period [text block] | 29 SUBSEQUENT EVEN TS There were no significant subsequent events between the year-end reporting date of June 30, 2020 and the date of issue of these financial statements other than described below and included in the preceding notes to the consolidated financial statements. Declaration of dividend On September 1, 2020 , the Board declared a final dividend for the year ended June 30, 2020 of 35 SA cents per qualifying share amounting to R 299.3 million , which was paid on September 28, 2020 . |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting policies [abstract] | |
Reporting entity | Reporting entity The DRDGOLD Group is primarily involved in the retreatment of surface gold. The consolidated financial statements comprise DRDGOLD Limited (the “ Company ”) and its subsidiaries who are all wholly owned subsidiaries and solely operate in South Africa (collec tively the “ Group ” and individually “ Group Companies ”). The Company is domiciled in South Africa with a registration number of 1895/000926/06. The registered address of the C ompany is Constantia Office Park , Cnr 14th Avenue and Hendrik Potgieter Road , Cyca d House, Building 17, Ground Floor , Weltevreden Park , 1709 . The DRDGOLD Group is 50.1 % held by Sibanye Gold Limited, which in turn is a wholly owned subsidiary of Sibanye Stillwater Limited (“ Sibanye-Stillwater ”) . |
Basis of accounting | 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 ap proved by the board for issuance on October 29, 2020 . |
Functional and presentation currency | Functional and presentation currency The functional and presentation currency of DRDGOLD and its subsidiaries is South African rand. The amounts in these consolidated financial 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 2020 2019 2018 Spot rate at year end 17.32 14.07 13.72 Average rate for the financial year 15.66 14.18 12.85 |
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 statement s from the date that control commences until the date that control ceases. Transactions eliminated on consolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eli minated in preparing the consolidated financial statements. |
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 e stimates. 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 11 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 18 INCOME TAX NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS Information about significant judgement s 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 24 PAYMENTS MADE U NDER PROTEST NOTE 26 CONTINGE NC IES |
Revenue | ACCOUNTING POLICIES Revenue comprise s the sale of gold bullion and silver bullion (produced as a by-product). Revenue is measured based on the consideration specified in a contract with the customer, which is based on the London Bullion Market fixing price on the date when it transfers control over the goods to the customer. The Group recognises revenue at a poin t in time when Rand Refinery, acting as an agent for 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. It is at this point that the revenue can be measured reli ably and the recovery of the consideration is probable. Rand Refinery is contractually obliged to make payment to the Group within two business days after the sale of the gold and silver and therefore no significant financing component exists. |
Other Income | ACCOUNTING POLICIES Other i ncome is recognised where it is probable that the economic benefits associated with a transaction will flow to the Group and it 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 on disposal of property, plant and equipment and gains on financial instruments at fair value through profit or loss . |
Finance income and expense | ACCOUNTING POLICY Finance income includes interest received , growth in cash and cash equivalents in environmental rehabilitation trust funds, growth in the reimbursive right for environmental rehabilitation guarantees, dividends received and the unwinding of the Payments made under protest . 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 lease liabilities and the discount recognised on Payments made under protest |
Property, plant and equipment | 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 order 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, transport 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 logging 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 because 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 p repared by management are reviewed by an independent mineral 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 environmental 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 liabil ities may change due to changes in estimates of the likely recovery of the tax benefits and charges. 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 accumulated impairment losses . Cost includes expenditure that is directly attributable to the acq uisition or construction of the asset, borrowing costs capitalised, as well as the costs of dismantling and removing an asset and restoring the site on which it is located. Subsequent costs are included in the asset’s carrying amount or recognised as a sep arate 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 the 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. Exploration assets consists of costs of acquiring rights, activities associated with converting a mineral resource to a mineral reserve - the process thereof includes drilling, sampling and other processes necessary to evaluate the technical feasibility and commercial viability of a mineral resource to prove whether a mineral reserve exists. Exploration assets also include geological, geo chemical and geophysical studies associated with prospective projects and tangible assets which comprise of property, plant and equipment used for exploratory activities. Costs are capitalised to the extent that they are a directly attributable exploration expenditure and classified as a separate class of assets on a project by project basis. Once a mineral reserve is determined or the project ready for development, the asset attributable to the mineral reserve or project is tested for impairment and then reclassified to the appropriate class of assets. Depreciation commences when the assets are available for use . Impairment 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 eve nts or changes in circumstances indicate that the carrying amount may not be recoverable. If 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 whic h there are separately identifiable cash flows (CGUs). The key assets of a surface retreatment operation which constitutes a CGU are a reclamation site, a metallurgical plant and a tailings storage facility. These key assets operate interdependently to pro duce gold. The Ergo and FWGR operations each have separately managed and monitored reclamation sites, metallurgical plants and tailings storage facilities and are therefore separate CGUs. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The recoverable amount was determined by estimating the value in use. T he 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 recognised in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amou nt . |
Depreciation | 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. 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 and probable mineral reserves. It reflects the estimated quantities of economically recoverable gold that c an be recovered from reclamation sites based on the estimated gold price. Changes in the 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 consideration of historical experience. The depreciation method, estimated useful lives and residual values are reassessed annually and adjusted if appropriate. Any changes to u seful lives may affect prospective depreciation rates and asset carrying values. The current estimated useful lives are based on the life-of-mine of each site, currently between four ( 2019 : three ; 2018 : four ) and 13 ( 2019 : 11 ; 2018 : 12 ) years for Ergo mining assets and between four ( 2019 : five) and 20 ( 2019 : 15 ) years for FWGR mining assets . |
Right of use assets and leases | ACCOUNTING POLICIES The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The impact of the adoption of the standard is disclosed in Note 3 . Accounting policy before July 1, 2019 Leased assets Upon initial recognition, the leased asset is measured at an amount 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 and 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 ba lance of the liability. Accounting policy after July 1, 2019 Right of use asset The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability and is adjusted by any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received . The Group recognises a right of use asset and lease liability at the lease commencement date. The right of use asset is subsequently depreciated using the straightline method from the commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated useful lives of the right of use assets are determined on the same basis as those of property, plant and equipment. In addition, the right of use asset carrying value is allocated to the CGU it belongs to and the CG U is reviewed at each reporting date to determine whether there is any indication of impairment. The carrying value is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. Lease liability The lease liability is initially measured at the present value of the outstanding lease payments at commencement date over the lease term, discounted using the interest rate implicit in the lease or if that rate is undeterminable, the Group’s incremental borrowing r ate. The lease term includes the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when the Group is reasonably certain to exercise an option to extend a lease. Lease payments comprise fixed payments, variable lease payments that depend on an index or rate, initially measured using the index or rate as at the commencement date, and the exercise price under a purchase option that the Group is reasonably certain to exercise . T he lease liability is measured using the effective interest rate method and is remeasured when there is a change in future lease payments. Upon remeasurement, a corresponding adjustment is made to the carrying amount of the right of use asset or is record ed in profit or loss if the carrying amount of the right of use asset has been reduced to zero. Right of use assets are presented in “property, plant and equipment” and lease liabilities are separately disclosed in the s tatement of financial position. ACCOUNTING POLICIES continued Accounting policy after July 1, 2019 continued Short term leases and leases of low value assets The Group has elected not to recognise right of use assets and lease liabilities for short-term leases of machinery and equipment that have a lease term of 12 months or less and leases of low value assets which include IT equipment, security equipment and administration equipment . |
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 ranging between 8.1 % and 9.5 % ( 2019 : between 7.6 % and 8.0 %), average inflation rate of 5.1 % ( 2019 : 5.5 %) and the discount periods as per the expected life-of-mine were used in the calculation of the es timated 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 annually 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 (decommissioning liabilities) are capitalised to property, plant and equ ipment 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 there is an indication that the revised car rying 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 interest element, and the capitalised co st 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 the production of inventories and sites without related assets (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 | ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trust funds Cash and cash equivalents included in environmental rehabilitation trust funds comprise low-risk, interest-bearing cash and cash equivalents and are non-derivative financial assets categorised as financial assets measured at amortised cost. Cash and cash equivalents are initially measured at fair value. Subsequent to initial recognition, cash and cash equivalents are measured at amortised cost, which is equivalent to their fair value. Reimbursive right for environmental rehabilitation guarantees Funds held in the cell captive that secure the environmental rehabilitation guarantees issued are recognised as a right to receive a reimbursement and are measured at the lowe r 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 reco gnised in finance income. |
Cash and cash equivalents | ACCOUNTING POLICIES Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to cash without significant risk of changes in value and comprise cash on hand, demand deposits, and highly liquid investments which are readily convertibl e to known amounts of cash . Cash and cash equivalents are non-derivative financial assets categorised as financial assets measured at amortised cost. Cash and cash equivalents are initially measured at fair value. Subsequent to initial recognition, cash an d cash equivalents are measured at amortised cost, which is equivalent to their fair value. |
Trade and other receivables | ACCOUNTING POLICIES Recognition and measurement Trade and other receivables, excluding Value Added Tax and prepayments, are non-derivative financial assets categorised as financial assets at amortised cost. 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 expected credit losses using the Group’s business model for managing its financial asset s. The Group derecognises a financial asset when the contractual 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 owner ship of the financial asset are transferred, or it neither 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 crea ted or retained by the Group is recognised as a separate asset or liability. Impairment The Group recognises loss allowances for trade and other receivables at an amount equal to expected credit losses (“ECLs”). The Group uses the simplified ECL approach. When determining whether the credit risk of a financial asset has increased since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This inc ludes both quantitative and qualitative information and analysis, based on informed credit assessments and including forward-looking information. The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is e xposed to credit risk. ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). The Group assesses whether the financial asset is credit impaired at each reporting date. A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cas h flows of the financial asset have occurred, including but not limited to financial difficulty or default of payment. The Group will write off a financial asset when there is no reasonable expectation of recovering it after considering whether all means t o recovery the asset have been exhausted, or the counterparty has been liquidated and the Group has assessed that no recovery is possible. Any impairment losses are recognised in the statement of profit or loss |
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 method. 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 paid if the Group has a present legal or constructive obligati on to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
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 and stockpile materia l is based on the weighted 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 cost of completion and selling expenses . |
Income tax | SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Management periodically evaluates positions taken where tax regulations are subject to interpretation. This includes the treatment of both Ergo and FWGR as single mining operation s respectively, pursuant to the relevant ring-fencing legislation. The deferred tax liability is calculated 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 over time. These assumptions and estimates include expected future profitability and timing of the reversal of the temporary differences. Due to the forecast weighted ave rage tax rate being based on a prescribed formula that increases the effective tax rate with 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 pe rformance. A 100 basis points increase in the effective tax rate will result in an increase in the net deferred tax liability at June 30, 2020 of approximately R 10.3 million ( 2019 : R 8.6 million; 2018 : R 8.0 million). The assessment of the probability that future taxable profits will be available against which the tax losses and unredeemed capital expenditure can be utilised requires the use of assumptions and estimates and are inh erently uncertain and could change materially over time. C apital expenditure is assessed by the South African Revenue Service (“ SARS ”) when it is redeemed against taxable mining income rather than when it is incurred. A different interpretation by SARS regarding the deductibility of these capital allowances may therefore become evident subsequent to the year of assessment when the capital expenditure 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 comprises 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 p revious year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised 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 d ate . Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts 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 assets 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 temporary differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. 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 % for all periods presented . All mining capital expenditure is deducted in the year it is incurred to the extent that it does not result in an a ssessed loss. Capital expenditure not deducted from mining income is carried forward as unutilised capital allowances to be deducted from future mining income |
Employee benefits | ACCOUNTING POLICIES Cash settled share-based payments (“ outgoing l ong- t erm i ncentive ) 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-market conditions are reviewed at each reporting date to ensure they reflect current expectations. Equity settled share-based payments (“ new l ong- t erm i ncentive ) The grant date fair value of equity settled share-based payment arrangements is recognised as a n expense, with a corresponding increase in equity, over the vesting period of the awards. The expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amo unt ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at vesting date . Post-retirement medical benefit The Group's net obligation in respect of long - term employee benefits is the amou nt 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. |
Stated share capital | Stated 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 share capital (treasury shares) When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognised a s a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from stated share capital. |
Dividends | Dividends Dividends are recognised as a liability on the date on which they are declared which is the date when the shareholders’ right to the dividends vest s . |
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 t he Group’s Executive Committee. The Group has one revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational structure and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants and reclamation sites that, together with its tailings storage facility, is capable of operating independently. When assessing profitability, the CODM considers , inter alia , the revenue and production c osts 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 ope rating profit or loss, result in the working profit or loss. |
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 and Far West Gold Recoveries Proprietary Limited are the only significant subsidiaries of the Group. They are both wholly owned subsidiaries and are incorporated in South Africa, are primarily involved in the retreatment of surface gold and all their operations are based in South Africa. |
Payments made under protest | SIGNIFICANT ACCOUNTING JUDGEMENTS Payments made under protest The determination of whether the payments made under protest give rise to an asset or a contingent asset or neither, required the use of significant judgement. The definition of an asset in the conceptual framework was applied, with the consideration of the facts and circumstances surrounding the payments made under protest. In applying the definition of an asset management considered the following: p ayments were made under protest and without p rejudice or admission of liability. S uch payments were not made as a settlement of deb t or recognition of expenditure; t he Group therefore retains a right to recover the payments from the City of Ekurhuleni Metropolitan Municipality (“ Municipality ”) if the Group is suc cessful in the Main Application; i f the G roup is not successful in the Main Application, the payments will be used to settle the resultant liability to the Municipality ; and t hese two possible outcomes (i.e. success in the Main Application or not) therefore, will lead to economic benefits to the Group. Therefore, the right to recover the payments made under protest is not a contingent asset because it meets the definition and recognition criteria of an asset . No specific guidanc e exists in developing an accounting policy for such asset. Therefore management applied judgement in developing an accounting policy that would lead to information that is relevant to the users of these financial statements and information that can be rel ied upon . Contingent liabilities The assessment of whether an obligating event results in a liability or a contingent liability requires 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. SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The discounted amount of the Payments made under protest is determined using assumptions about the future that are inherently uncertain and can change materially over time and includes the discount rate and discount period. These assumptions about the future include estimating the ti ming of concluding on the main application, i.e. the discount period, the ultimate settlement terms, the discount rate applied and the assessment of recoverability . ACCOUNTING POLICIES Payments made under protest Recognition and measurement The asset that arises from the Municipality Electricity Tariff Dispute and that are payments made under protest is initially measured at a discounted amount and any difference between the face value of payments made under protest and the discounted amount on initial recognition is recognised in profit or loss as a finance expense. Subsequent to initial recognition, the Payments made under protest is measured using the effective interest method to unwind the discounted amount to the original face value less any write downs for recovery. Unwinding of the carrying value and changes in the discount period are recognised in profit or loss. Assessment of recoverability The discounted amount of the payments under protest is assessed at each reporting date to determ ine whether there is any objective evidence that the full amount is no longer expected to be recovered. The Group considers the reasonable and supportable information related to the creditworthiness of Ekurhuleni Metropolitan Municipality and events surrou nding the outcome of the Main Application. Any write down is recognised in profit or loss. Contingent liabilities A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occu rrence 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 th e 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 the Group can reliably measure the obligation, a prov ision is recognised. |
Other investments | SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The fair value of the listed equity instrument is determined based on quoted prices on an active market. Equity instruments which are not listed on an active market are measured using other applicable valuation techniques depending on the extent to which the technique maximises the use of relevant observable inputs and minimizes the use of unobservable inputs. Where discounted cash flows are used, the estimated cash flows are based on management’s best estimate based on readily available information at measurement date. The discounted cash flows contain assumptions about the future that are inherently uncertain and can change materially over time. ACCOUNTING POLICIES On initial recognition of an equity i nvestment that is not held for trading, the Group may make an irrevocable election to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis. 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 are recognised in OCI, and are never reclassified to profit or loss , with dividends recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. The Group’s listed and unlisted investments in equity securities are classified as equity instruments at fair value throug h other comprehensive income (OCI). |
Contingent liabilities and contingent assets | SIGNIFICANT ACCOUNTING JUDGEMENTS The assessment of whether an obligating event results in a liability or a contingent liability require s 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 Contingent liabilities A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain futur e 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 probabl e, 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 the Group can reliably measure the obligation, a provision is recognised. Contingent asset s Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. Contingent assets are not recognised, but they are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain an asset is recognised in the statement of financial position, because that asset is no longer considered to be contingent . |
New standards, amendments to standards and interpretations not yet adopted | New standards, amendments to standards and interpretations effective for the year ended June 30, 2020 During the financial period, the following new and revised accounting standards, amendments to standards and new interpretation were adopted by the Group: IFRS 16 Leases (Effective date July 1, 2019 ) The Group adopted IFRS 16 Leases (“ IFRS 16 ”) on July 1, 2019 , using the modified retrospective method. The Group elected to measure the right of use asset at an amo unt equal to the lease liabilities for leases previously expensed as operating leases . The nature of the leases include property rentals, vehicle rental s , and equipment hire. The equipment hire includes the rental of an electricity generator which was previously classified as a finance lease under IAS 17 Leases (“ IAS 17 ”). The carrying amount of the right-of-use asset and the lease liability at the date of initial application was measured using the carrying amount of the lease asset and lease liability immediately before under IA S 17 . The Group applied the following practical expedients : the Group elected not to separate non-lease components and account for the lease and non-lease component as a single lease component ; leases for which the underlying asset is of low value ; and short-term leases defined as less than 12 months . The Group applied the following judgements : assessing whether an arrangement contains a lease ; w here the Group has the option to terminate a contract with no more than an insignificant penalty, the lease is no longer deemed to be enforceable. However, in making this assessment management will in addition, take into account the nature of the asset, the alternative procurement of the asset and the general economics of the contract in assessing its enforceability ; where a lease is on a month to month basis, the lease term is limited to one month’s enforceable period, therefore that lease is excluded from the lease population ; w here a contract includes an option to renew, management will consider whether it is reasonably certain that the option will be exercised. In making this assessment, the historical renewal behaviour will be considered, considering the str ategic nature of that asset ; t he determination of the right of use asset to be equal to the lease liability, adjusted for prepaid or accrued lease payments immediately before the date of initial application. This resulted in there being no impact on retai ned earnings at adoption date ; and to use the Group’s incremental borrowing rate in discounting the future payments. The weighted average discount rate applied was 10.31 % per annum . There ha ve been no significant changes under IFRS 16 for lessors. The impact of the adoption of IFRS 16 on the Group’s financial statements is as follows Amounts in R million 2020 Operating lease commitments at June 30, 2019 37.6 Operating lease commitments at July 1, 2019 discounted using the weighted average incremental borrowing rate at July 1, 2019 (6.7) Operating lease commitments recognised as lease liabilities on the statement of financial position at July 1, 2019 (not previously recognised) 30.9 Finance lease liabilities previously recognised under IAS 17 at June 30, 2019 11.0 Total lease liabilities recognised at July 1, 2019 41.9 IFRIC 23 Uncertainty over Income Tax Treatments (Effective date July 1, 2019 ) IFRIC 23 Uncertainty over Income Tax Treatments (“ IFRIC 23 ”) clarifies the accounting for income tax treatments that have yet to be accepted by tax authorities. Specifically, IFRIC 23 provides clarity on how to incorporate this uncertainty into the measurement of tax as reported in the financial statements. IFRIC 23 does not introduce any new disclosures but reinforces the need to comply with existing disclosure r equirements about: judg e ments made; assumptions and other estimates used; and the potential impact of uncertainties that are not reflected. Information about significant judgements, assumptions and estimates related to uncertainties with regard to the measurement of tax as reported in the financial statements are included in the following note: NOTE 18 INCOME TAX Annual Improvements to IFRS Standards 2015/2017 Cycle various standards (effective July 1, 2019 ) As part of its process to make non-urgent but necessary amendments to IFRS, the IASB has issued the Annual Improvements to IFRS Standards 2015–2017 Cycle. This did not have a material impact on the Group. 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS continued New standards, amendments to standards and interpretations not yet effective 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. Definition of Material (Amendments to IAS 1 and IAS 8) (Effective July 1, 2020) The amendment clarifies the definiti on of material to make it easier to understand and provides guidance on how the definition should be applied. The changes in the definition now ensures that the definition is consistent across all IFRS standards and the Conceptual Framework. old definition (IAS 1): Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements; n ew definition (IAS 1) : Information is material if omitting, misstating or obscuring it could reasonabl y be expected to influence the decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reportin g entity. The definition of material omissions or misstatements from IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been removed. M anagement has performed a preliminary assessment of the new definition of materiality and has as sessed that it is not expected that significant changes will result from the adoption of the new definition of materiality . Amendments to References to Conceptual Framework in IFRS (Effective July 1, 2020) The IASB decided to revise the Conceptual Framewor k because certain important issues were not covered and certain guidance was unclear or out of date. The revised Conceptual Framework, issued by the IASB in March 2018, includes: n ew concepts on measurement including factors to be considered when selecting the measurement basis; n ew concepts on presentation and disclosure, including when to classify income and expenses in other comprehensive income; n ew guidance on when assets and liabilities are removed from financial statements; u pdated definitions of an asset and liability; u pdated recognition criteria for including assets and liabilities in financial statements; the revised framework c larified the concepts of prudence, stewardship, measurement uncertainty and substance over form; and t he IASB also update d references to the Conceptual Framework in IFRS by issuing Amendments to References to the Conceptual Framework in IFRS. M anagement has performed a preliminary assessment of the amendments to the References to the Conceptual Framework and has assessed th at it is not expected that significant changes will result from the new references to the Conceptual Framework. |
ABOUT THESE CONSOLIDATED FINA_2
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS | |
Functional and presentation currency | South African rand / US dollar 2020 2019 2018 Spot rate at year end 17.32 14.07 13.72 Average rate for the financial year 15.66 14.18 12.85 |
NEW STANDARDS, AMENDMENTS TO _2
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT YET ADOPTED (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
New standards amendments to standards and interpretations [abstract] | |
Impact of the adoption of IFRS 16 on the Group's financial statements | Amounts in R million 2020 Operating lease commitments at June 30, 2019 37.6 Operating lease commitments at July 1, 2019 discounted using the weighted average incremental borrowing rate at July 1, 2019 (6.7) Operating lease commitments recognised as lease liabilities on the statement of financial position at July 1, 2019 (not previously recognised) 30.9 Finance lease liabilities previously recognised under IAS 17 at June 30, 2019 11.0 Total lease liabilities recognised at July 1, 2019 41.9 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
Schedule of Revenue | Amounts in R million 2020 2019 2018 Gold revenue 4,179.3 2,758.8 2,486.4 Silver revenue 5.7 3.3 4.0 Total revenue 4,185.0 2,762.1 2,490.4 |
Schedule of Market Risk | Amounts in R million 2020 2019 2018 20% increase in the US Dollar gold price 837.0 552.4 498.1 20% decrease in the US Dollar gold price (837.0) (552.4) (498.1) Amounts in R million 2020 2019 2018 10% increase in the Rand to US Dollar exchange rate 418.5 276.2 249.0 10% decrease in the Rand to US Dollar exchange rate (418.5) (276.2) (249.0) |
RESULTS FROM OPERATING ACTIVI_2
RESULTS FROM OPERATING ACTIVITIES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Analysis of income and expense [abstract] | |
Cost of Sales | Amounts in R million Note 2020 2019 2018 Cost of sales (2,937.9) (2,553.9) (2,347.7) Operating costs (a) (2,692.1) (2,471.1) (2,207.1) Movement in gold in process and finished inventories - Gold Bullion 3.1 32.6 24.5 Depreciation 9 (270.8) (169.1) (168.0) Change in estimate of environmental rehabilitation 11 21.9 60.0 2.9 Retrenchment costs (b) - (6.3) - (a) Operating costs The most significant components of operating costs include: Consumable stores (801.0) (866.5) (784.6) Labour including short term incentives (573.0) (476.7) (417.4) Electricity (420.9) (399.4) (369.0) Specialist service providers (447.5) (437.1) (326.9) Water (47.0) (44.1) (49.9) Pre-production costs capitalised - 93.7 - (b) Retrenchment costs Voluntary staff retrenchments - (6.3) - |
RELATED PARTY TRANSACTIONS | Amounts in R million 2020 2019 Services rendered by related parties and included in operating costs: Supply of water and electricity 1 50.0 16.9 Gold smelting and related charges 1 19.8 12.9 Other charges 1 1.6 - Charges to Sibanye-Stillwater 2 (0.2) (6.5) Gold refining and related charges 3 4.9 3.6 76.1 26.9 1 Paid to Sibanye-Stillwater by FWGR 2 2019 charges relate to material processed on behalf of Sibanye-Stillwater in terms of a toll treatment agreement and recovered the related costs from Sibanye-Stillwater. 2020 charges relate to miscellaneous items 3 Paid to Rand Refinery subsequent to July 31, 2018 |
Other Income | Amounts in R million 2020 2019 2018 Gain on disposal of property, plant and equipment 0.7 5.8 - Gain on financial asset at fair value through profit or loss - 2.1 - 0.7 7.9 - |
Administration Expenses and Other costs | Amounts in R million Note 2020 2019 2018 Included in administration expenses and other costs are the following: Share based payment expenses (224.1) (21.4) (17.2) Cash settled Long-Term Incentive (" LTI ") scheme 19.1 (218.1) (21.4) (17.2) Equity settled Long-Term Incentive (" LTI ") scheme 19.2 (6.0) - - Transactions costs (1.4) - (9.0) Loss on disposal of property, plant and equipment - - (0.6) |
FINANCE INCOME (Tables)
FINANCE INCOME (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Finance Income [Abstract] | |
Finance income | Amounts in R million Note 2020 2019 2018 Interest on financial assets measured at amortised cost 13 63.1 17.0 21.8 Growth in cash and cash equivalents in environmental rehabilitation trust funds 12 33.3 30.5 7.5 Growth in reimbursive right for environmental rehabilitation guarantees 12 5.2 7.8 8.8 Dividends received 25 4.3 - - Unwinding of Payments made under protest 24 3.9 3.0 0.7 109.8 58.3 38.8 |
FINANCE EXPENSE (Table)
FINANCE EXPENSE (Table) | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of finance expense [abstract] | |
Disclosure of finance cost [text block] | Amounts in R million Note 2020 2019 2018 Interest on financial liabilities measured at amortised cost (2.0) (10.2) - Interest on financial liabilities measured at amortised cost capitalised 9 - 9.4 - Unwinding of provision for environmental rehabilitation 11 (52.0) (66.3) (45.6) Discount recognised on Payments made under protest 24 (7.1) (6.5) (8.8) Interest on lease liabilities 10.2 (5.1) (2.0) (2.5) Other finance expenses (2.6) (2.8) (1.5) (68.8) (78.4) (58.4) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings per share [abstract] | |
Earnings Per Share | Amounts in R million 2020 2019 2018 The calculations of basic and diluted earnings per ordinary share are based on the following: Profit for the year 635.0 78.5 6.5 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Note 2020 2019 2018 Weighted average number of ordinary shares in issue 769,941,874 664,553,283 422,068,696 Effect of Sibanye-Stillwater Option 21.1 9,464,684 15,387,695 - Effect of equity-settled share-based payment expense 19.2 4,283,001 - - Diluted weighted average number of ordinary shares 783,689,559 679,940,978 422,068,696 SA cents per share 2020 2019 2018 Basic earnings per share 82.5 11.8 1.5 Diluted earnings per share 81.0 11.5 1.5 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | Amounts in R million Note Mine plant facilities and equipment Mine property and development Exploration assets Total June 30, 2020 Cost 2,203.5 2,147.0 266.3 4,616.8 Balance at the beginning of the year 2,156.2 2,106.8 256.7 4,519.7 Impact of adopting IFRS 16 on July 1, 2019 10.1 7.5 23.4 - 30.9 Additions - property, plant and equipment owned 121.2 46.5 15.0 182.7 Additions - right-of-use assets 10.1 3.8 14.2 - 18.0 Lease modifications 10.1 - 7.5 - 7.5 Lease derecognitions 10.1 (26.7) (0.1) - (26.8) Disposals (1.6) - - (1.6) Change in estimate of decommissioning asset 11 (56.7) (51.5) (5.4) (113.6) Transfers between classes of property, plant and equipment (0.2) 0.2 - - Accumulated depreciation and impairment (1,017.5) (968.5) (9.7) (1,995.7) Balance at the beginning of the year (909.9) (824.8) (9.7) (1,744.4) Depreciation 5.1 (127.1) (143.7) - (270.8) Lease derecognitions 17.9 - - 17.9 Disposals 1.6 - - 1.6 Carrying value at end of the year 1,186.0 1,178.5 256.6 2,621.1 Comprising: Property, plant and equipment owned 1,177.8 1,141.8 256.6 2,576.2 Right-of-use assets 10.1 8.2 36.7 - 44.9 Carrying value at end of the year 1,186.0 1,178.5 256.6 2,621.1 June 30, 2019 Cost 2,156.2 2,106.8 256.7 4,519.7 Balance at the beginning of the year 1,689.5 1,264.5 77.3 3,031.3 Acquisition of FWGR 198.4 849.9 177.3 1,225.6 Additions - property, plant and equipment owned 284.5 66.7 2.5 353.7 Borrowing costs capitalised 9.4 - - 9.4 Disposals (1.6) (1.7) - (3.3) Change in estimate of decommissioning asset 11 (24.0) (75.3) 2.3 (97.0) Transfers between classes of property, plant and equipment - 2.7 (2.7) - Accumulated depreciation and impairment (909.9) (824.8) (9.7) (1,744.4) Balance at the beginning of the year (815.4) (753.5) (9.7) (1,578.6) Depreciation 5.1 (96.1) (73.0) - (169.1) Disposals 1.6 1.7 - 3.3 Carrying value at end of the year 1,246.3 1,282.0 247.0 2,775.3 |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Right of use assets and leases [abstract] | |
Right of use assets | Amounts in R million Note Mine plant facilities and equipment Mine property and development Total June 30, 2020 Cost 11.1 45.0 56.1 Impact of adopting IFRS 16 on July 1, 2019 Right-of-use assets recognised on July 1, 2019 7.5 23.4 30.9 Transfers and other movements 1 26.5 - 26.5 Additions 3.8 14.2 18.0 Lease modifications - 7.5 7.5 Lease derecognitions (26.7) (0.1) (26.8) Accumulated depreciation (2.9) (8.3) (11.2) Impact of adopting IFRS 16 on July 1, 2019 Transfers and other movements 1 (15.9) - (15.9) Depreciation (4.9) (8.3) (13.2) Lease derecognitions 17.9 - 17.9 Carrying value 8.2 36.7 44.9 1 Relates to contracts previously classified as leases under IAS 17 and presented as property, plant and equipment which the Group has reassessed as right-of-use assets upon adoption of IFRS 16 as of July 1, 2019 |
Lease liabilities | Amounts in R million Note 2020 2019 Reconciliation of the lease liabilities balance: Balance at the beginning of the year 11.0 14.7 Impact of adopting IFRS 16 on July 1, 2019 9 30.9 - New leases 9 18.0 - Lease modifications 7.5 - Leases derecognised (8.9) - Interest charge on lease liabilities 7 5.1 2.0 Repayment of lease liabilities (2019: repayment of finance lease obligations) (11.4) (3.7) Interest repaid (5.1) (2.0) Balance at the end of the year 47.1 11.0 Current portion of lease liabilities (10.1) (11.0) Non-current lease liabilities 37.0 - Maturity analysis of undiscounted contractual cash flows: Less than a year 13.0 - One to five years 37.0 - More than 5 years 9.0 - Total undiscounted lease liabilities at June 30, 2020 59.0 - Lease payments not recognised as a liability but expensed during the year: Short-term leases 2.4 - Leases of low value assets 5.0 - Cash flows included in cash generated from operating activities 7.4 - |
PROVISION FOR ENVIRONMENTAL R_2
PROVISION FOR ENVIRONMENTAL REHABILITATION (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Provision for decommissioning restoration and rehabilitation costs [text block] | Amounts in R million Note 2020 2019 Opening balance 682.6 553.4 Acquisition of FWGR - 247.4 Unwinding of provision 7 52.0 66.3 Change in estimate of environmental rehabilitation recognised in profit or loss (a) 5.1 (21.9) (60.0) Change in estimate of environmental rehabilitation recognised to decommissioning asset (b) 9 (113.6) (97.0) Environmental rehabilitation payments (c) (30.2) (27.5) To reduce decommissioning liabilities (22.1) (16.6) To reduce restoration liabilities 14 (8.1) (10.9) Closing balance 568.9 682.6 Environmental rehabilitation payments to reduce the liability (30.2) (27.5) Ongoing rehabilitation expenditure 1 23 (24.3) (18.3) Total cash spent on environmental rehabilitation (54.5) (45.8) 1 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, 2020 | |
Disclosure of investments in rehabilitation obligation funds [Abstract] | |
Investments in environmental rehabilitation guarantees [text block] | Amounts in R million Note 2020 2019 Cash and cash equivalents in environmental rehabilitation trust funds 542.2 508.9 Opening balance 508.9 118.0 Acquisition of FWGR - 360.4 Growth 6 33.3 30.5 Reimbursive right for environmental rehabilitation guarantees 83.8 78.6 Opening balance 78.6 126.0 Funds received - (55.2) Growth 6 5.2 7.8 626.0 587.5 |
Sensitivity analysis for types of market risk [text block] | Amounts in R million 2020 2019 100bp increase 5.4 5.1 100bp (decrease) (5.4) (5.1) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule Of Cash Cash Equivalents And Short Term Investments [text block] | Amounts in R million Note 2020 2019 Cash on hand 63.5 125.2 Access deposits and income funds 1 1,632.3 136.0 Restricted cash 2 19.3 18.3 1,715.1 279.5 Interest earned on cash and cash equivalents 6 63.1 17.0 1 These consist of access deposit notes and conservatively managed income funds that are diversified across the major financial institutions in South Africa. At reporting date all of these instruments had same day or next day liquidity and effective annual yields of between 5.5% and 7% 2 These consist of cash held on call to fund environmental and other guarantees issued by the Standard Bank of South Africa Limited. |
Sensitivity analysis for types of market risk cash [text block] | Amounts in R million 2020 2019 100bp increase 10.0 2.8 100bp (decrease) (10.0) (2.8) |
CASH GENERATED FROM OPERATIONS
CASH GENERATED FROM OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Cash generated from operations [abstract] | |
Disclosure of cash generated by operations | Amounts in R million Note 2020 2019 2018 Profit for the year 635.0 78.5 6.5 Adjusted for Income tax 18 343.9 26.6 25.9 Depreciation 9 270.8 169.1 168.0 Movement in gold in process and finished inventories - Gold Bullion 5.1 (3.1) (32.6) (24.5) Change in estimate of environmental rehabilitation 11 (21.9) (60.0) (2.9) Environmental rehabilitation payments 11 (8.1) (10.9) (3.4) Share-based payment expense 5.3 224.1 21.4 17.2 (Gain)/loss on disposal of property, plant and equipment 5.2 (0.7) (5.8) 0.6 Finance income 6 (109.8) (58.3) (38.8) Finance expense 7 68.8 78.4 58.4 Other non-cash items 2.6 1.8 1.3 Operating cash flows before other changes 1,401.6 208.2 208.3 Changes in (92.0) 73.8 14.6 Trade and other receivables (79.0) 22.5 22.2 Consumable stores and stockpiles (26.4) (24.8) (28.2) Payments made under protest 24 (10.6) (11.7) (27.4) Trade and other payables and employee benefits 24.0 87.8 48.0 Cash generated from operations 1,309.6 282.0 222.9 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information of trade and other receivables explanatory [table text block] | Amounts in R million 2020 2019 Trade receivables 23.1 - Value Added Tax 83.5 42.0 Other receivables 1 17.3 25.3 Prepayments 25.1 5.5 Allowance for impairment (2.6) (4.9) 146.4 67.9 1 Other receivables consist of a number of individually insignificant amounts receivable |
The balances of counterparties who have been assessed as being credit impaired at reporting date | 2020 2019 Amounts in R million Non-credit impaired Credit impaired Non-credit impaired Credit impaired Trade receivables 23.1 - - - Other receivables 14.7 2.6 23.2 2.1 37.8 2.6 23.2 2.1 Loss allowance - (2.6) (2.8) (2.1) |
Movement in the allowance for impairment in respect of trade and other receivables | Amounts in R million 2020 2019 Balance at the beginning of the year (4.9) (9.2) Impact of adopting IFRS 9 on July 1, 2018 Impairment recognised on other receivables included in operating costs - (3.2) Balance at the beginning of the year after adoption of IFRS 9 Financial Instruments (4.9) (12.4) Credit loss allowance/impairments recognised included in operating costs (0.2) (3.1) Credit loss allowance/impairments reversed included in operating costs 0.4 5.3 Credit loss allowance written off against related receivable 2.1 5.3 Balance at the end of the year (2.6) (4.9) |
Market Risk | Figures in USD million 2020 2019 Foreign denomination of trade receivables at June 30 1.3 - 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 2020 2019 Strengthening of the Rand against the US Dollar (2.3) - Weakening of the Rand against the US Dollar 2.3 - |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Trade and other payables [abstract] | |
Disclosure of detailed information of trade and other payables explanatory [table text block] | Amounts in R million Note 2020 2019 Trade payables and accruals 348.0 324.4 Accrued leave pay 46.9 39.0 Provision for short term performance based incentives 50.5 32.5 Payroll accruals 33.4 23.3 478.8 419.2 Interest relating to trade payables and accruals included in profit or loss (1.9) (2.0) RELATED PARTY BALANCES Trade payables and accruals include the following amounts payable to related parties: Sibanye-Stillwater 14.0 4.1 Rand Refinery 0.2 0.2 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Inventories [abstract] | |
Inventories | Amounts in R million 2020 2019 Consumable stores 165.6 145.2 Gold in process (a) 95.6 99.6 Finished inventories - Gold Bullion 62.2 59.8 Total inventories 323.4 304.6 |
INCOME TAX EXPENSE (Table)
INCOME TAX EXPENSE (Table) | 12 Months Ended |
Jun. 30, 2020 | |
Major components of tax expense (income) [abstract] | |
Components of tax expense or income including tax reconciliation and unrecognised tax [text block] | Amounts in R million 2020 2019 2018 Current tax (263.2) 1.6 (6.4) Mining tax (263.2) - - Non-Mining, company and capital gains tax - 1.6 (6.4) Deferred tax (80.7) (28.2) (19.5) Deferred tax charge - Mining tax (59.1) (14.8) (10.4) Deferred tax charge - Non-mining, company and capital gains tax (2.1) 1.6 3.7 Deferred tax rate adjustment (20.7) (15.0) (12.8) Recognition of previously unrecognised tax losses of a capital nature 1.2 - - (343.9) (26.6) (25.9) Tax reconciliation Major items causing the Group's income tax expense to differ from the statutory rate were: Tax on net profit before tax at the South African corporate tax rate of 28% (274.1) (30.2) (9.0) Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula (0.9) 7.4 3.5 Deferred tax rate adjustment (a) (20.7) (15.0) (12.8) Non-deductible expenditure (b) (29.3) (11.9) (9.8) Utilisation of tax losses for which deferred tax assets were previously unrecognised - - 2.6 Current year tax losses for which no deferred tax was recognised (c) (23.5) (2.7) (0.8) Exempt income and other non-taxable income 2.4 4.4 - Other items 0.4 16.8 - Tax incentives 0.6 1.7 0.4 Recognition of previously unrecognised tax losses of a capital nature 1.2 - - Over provided in prior periods - 2.9 - Income tax (343.9) (26.6) (25.9) (a) Deferred tax rate adjustment The forecast weighted average deferred tax rate increased from 22.0 % to 25.0 % as a result of a n in crease in forecast taxable income of Ergo ( 2019 : increased from 20.3 % to 22.0 % due to the in crease in forecast taxable income of Ergo; 2018 : in creased from 18 . 6 % to 20.3 % due to an in crease in forecast taxable income of Ergo ). ( b ) Non-deductible expenditure The most significant non-deductible expenditure incurred by the Group during the year includes : R 73.2 million depreciation on fair value of property, plant and equipment of FWGR to which the initial recognition exemption applies in terms of IAS 12 Income Taxes ( 2019 : R 16.6 million) ; R 7.1 million discount recognised on Payments made under protest ( 2019 : R 6.5 million ; 2018 : R 8.8 million ) ; R 14.6 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 ( 2019 : R 11.3 million; 2018 : R 7.5 million) ; and R 2.7 million expenditure not incurred in generation of taxable income ( 2019 : R 6.0 million; 2018 : R 15.0 million). |
Deferred tax assets and liabilities | Amounts in R million 2020 2019 Included in the statement of financial position as follows: Deferred tax assets 8.0 10.0 Deferred tax liabilities (273.1) (193.2) Net deferred tax liabilities (265.1) (183.2) Reconciliation of the deferred tax balance: Balance at the beginning of the year (183.2) (155.0) Recognised in profit or loss (80.7) (28.2) Recognised in other comprehensive income (1.2) - Balance at the end of the year (265.1) (183.2) The detailed components of the net deferred tax liabilities which result from the differences between the amounts of assets and liabilities recognised for financial reporting and tax purposes are: Amounts in R million 2020 2019 Deferred tax liabilities Property, plant and equipment (excluding unredeemed capital allowances) (422.4) (380.2) Environmental rehabilitation obligation funds (51.4) (32.0) Other temporary differences 1 - (0.6) Investments (1.2) - Gross deferred tax liabilities (475.0) (412.8) Deferred tax assets Environmental rehabilitation obligation 126.5 112.6 Other provisions 72.6 33.8 Other temporary differences 1 8.5 - Estimated capital losses 1.2 - Estimated unredeemed capital allowances 1.1 83.2 Gross deferred tax assets 209.9 229.6 Net deferred tax liabilities (265.1) (183.2) 1 Includes the temporary differences on the lease liability Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2020 2019 Provisions 20.3 - Estimated tax losses 22.0 19.4 Estimated tax losses - Capital nature 324.0 329.9 Unredeemed capital expenditure 254.7 254.8 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Employee benefits [Abstract] | |
Liability for long term incentives and post retirement benefits | Amounts in R million Note 2020 2019 Non-current employee benefits 10.1 37.4 Liability for long-term incentive scheme 19.1 - 28.4 Liability for post-retirement medical benefits 1 10.1 9.0 Current employee benefits 227.6 22.6 Liability for long-term incentive scheme 19.1 227.6 22.6 Total employee benefits 237.7 60.0 1 Unfunded medical aid benefit plan |
Liability for long term incentive scheme | Amounts in R million Note 2020 2019 Movements in the total liability for long-term incentive scheme is as follows: Opening balance 51.0 45.1 Increase in long-term incentive liability 5.3 218.1 21.4 Vested and paid (41.5) (15.5) Total liability for long-term incentive scheme 227.6 51.0 The total liability for long-term incentive scheme is expected to be settled as follows: 227.6 51.0 Within 12 months after reporting date 227.6 22.6 After 12 months after reporting date - 28.4 |
Fair value of long term incentive scheme liability | 2020 2019 Grant date 7-day VWAP of the DRDGOLD Limited share 25.14 4.37 2.26 Annualised forward dividend yield 1.0% 4.3% 4.3% |
Fair value table of the equity settled share-based payment | Percentile of peers % of performance shares vesting < 25th percentile 0% 25th to < 50th percentile 25% 50th to < 75th percentile 75% ≥ 75th percentile 100% Movement in the number of conditional shares for the reporting period are as follows: Conditional shares Grant date December 2, 2019 Vesting date Total December 2, 2021 December 2, 2022 Opening balance - - - Granted 5,860,760 2,930,380 2,930,380 Closing balance 5,860,760 2,930,380 2,930,380 |
Key management personnel remuneration | Key management personnel remuneration Amounts in R million Note 2020 2019 2018 - Board fees paid 6.2 5.8 5.6 - Salaries paid 67.3 61.7 53.6 - Short term incentives relating to this cycle 63.6 31.5 22.5 - Long term incentives paid during the cycle 19.1 41.5 15.5 2.8 - Retrenchments - 1.6 - 178.6 116.1 84.5 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Reconciliation of outstanding phantom shares | Conditional shares Grant date December 2, 2019 Vesting date December 2, 2021 December 2, 2022 Weighted average fair value of 80% performance shares 1 4.26 4.12 Weighted average fair value of 20% retention shares 5.69 5.49 Expected term (years) 2 3 Grant date share price of a DRDGOLD share 6.15 6.15 Expected dividend yield 3.86% 3.81% Expected volatility 2 53.80% 53.80% Expected risk free rate 6.68% 6.80% 1 The performance conditions are included in the measurement of the grant date fair value as they are classified as market-based performance conditions 2 Expected volatility has been based on an evaluation of the historical volatility of DRDGOLD’s share price, commensurate with the expected term of the options |
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 2020 2019 Weighted Weighted average average Shares price Shares price Number R per share Number R per share Opening balance 16,157,058 20,189,467 Granted - - 388,547 3.37 Vested and paid (5,674,252) 7.31 (4,037,883) 3.82 Forfeited (637,168) 7.08 (383,073) 4.37 Closing balance 9,845,638 16,157,058 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Equity [abstract] | |
Stated share capital | Amounts in R million 2020 2019 2018 Authorised share capital 1,500,000,000 (2019 and 2018: 1,500,000,000) ordinary shares of no par value 5,000,000 (2019 and 2018: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 864,588,711 (2019: 696,429,767, 2018: 431,429,767) ordinary shares of no par value (a) 6,208.4 5,123.3 4,227.9 9,474,920 (2019: 9,474,920, 2018: 9,361,071) treasury shares held within the Group (b) (51.0) (51.0) (50.7) 5,000,000 (2019 and 2018: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 6,157.9 5,072.8 4,177.7 |
Dividends | Amounts in R million 2020 2019 2018 Dividends paid during the year net of treasury shares: Final dividend declared relating to prior year: 20 SA cents per share (2019: nil SA cents per share; 2018: 5 SA cents per share) 137.5 - 21.1 First interim dividend: 25 SA cents per share (2019: nil SA cents per share; 2018: 5 SA cents per share) 213.8 - 21.1 Second interim dividend 25 SA cents per share (2019: nil SA cents per share; 2018: nil SA cents per share) 213.8 - - Total 565.1 - 42.2 |
OPERATING SGEMENTS (Tables)
OPERATING SGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Operating Segments [abstract] | |
Disclosure of operating segments Explanatory | Other 2020 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 3,064.3 1,120.7 - 4,185.0 Cash operating costs (2,274.0) (352.0) - (2,626.0) Movement in gold in process and finished inventories - Gold Bullion 1.8 1.3 - 3.1 Operating profit 792.1 770.0 - 1,562.1 Administration expenses and other costs (131.6) (20.7) (157.6) (309.9) Interest income 1 13.9 2.9 50.6 67.4 Interest expense 2 (5.2) - (4.5) (9.7) Current tax (145.8) (117.4) - (263.2) Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Additions to property, plant and equipment (114.4) (68.0) (0.3) (182.7) Working profit/(loss) after additions to property, plant and equipment 409.0 566.8 (111.8) 864.0 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 297.1 424.9 (87.0) 635.0 - Deferred tax (6.6) 86.5 0.8 80.7 - Net other operating costs/(income) 51.5 14.8 (24.5) 41.8 - Ongoing rehabilitation expenditure 22.3 2.0 - 24.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.2 - - 3.2 - Unwinding of provision for environmental rehabilitation 36.5 14.3 1.2 52.0 - Growth in investment in environmental obligation funds (11.2) (25.2) (2.1) (38.5) - Other income (0.7) - - (0.7) - Change in estimate of environmental rehabilitation recognised in profit or loss (19.1) (2.1) (0.7) (21.9) - Depreciation 150.4 119.6 0.8 270.8 Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Statement of cash flows Cash inflows from operating activities 546.1 563.1 19.7 1,128.9 Cash outflows from investing activities (135.7) (60.1) (6.7) (202.5) Cash (outflows)/inflows from financing activities (405.5) (500.8) 1,415.5 509.2 Reconciliation of adjusted EBITDA Profit for the year 635.0 Income tax 343.9 Profit before tax 978.9 Finance expense 68.8 Finance income (109.8) Results from operating activities 937.9 Depreciation 270.8 Share-based payment expense 224.1 Change in estimate of environmental rehabilitation recognised in profit or loss (21.9) Gain on disposal of property, plant and equipment (0.7) Transaction costs 1.4 Adjusted EBITDA 1 1,411.6 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. Other 2019 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 2,577.5 184.6 - 2,762.1 Cash operating costs (2,311.1) (111.8) - (2,422.9) Movement in gold in process and finished inventories - Gold Bullion 16.4 16.2 - 32.6 Operating profit 282.8 89.0 - 371.8 Retrenchment costs (1.6) (4.7) - (6.3) Administration expenses and other costs (12.0) (2.3) (76.6) (90.9) Interest income 1 6.5 - 10.4 16.9 Interest expense 2 (2.4) - (3.2) (5.6) Current tax 1.6 - - 1.6 Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Additions to property, plant and equipment (22.8) (330.7) (0.2) (353.7) Working profit/(loss) after additions to property, plant and equipment 252.1 (248.7) (69.6) (66.2) 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 82.3 28.7 (32.5) 78.5 - - - - - Deferred tax 16.2 13.4 (1.4) 28.2 - Net other operating costs/(income) 40.2 15.4 (25.7) 29.9 - Ongoing rehabilitation expenditure 16.6 1.7 - 18.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.5 - - 3.5 - Unwinding of provision for environmental rehabilitation 45.4 19.6 1.3 66.3 - Growth in investment in environmental obligation funds (11.3) (22.5) (4.6) (38.4) - Other income (2.2) - (5.7) (7.9) - Change in estimate of environmental rehabilitation recognised in profit or loss (58.6) - (1.4) (60.0) - Depreciation 142.8 25.7 0.6 169.1 - - - - Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Statement of cash flows Cash inflows/(outflows) from operating activities 221.7 89.3 (22.7) 288.3 Cash (outflows)/inflows from investing activities (39.4) (324.4) 60.8 (303.0) Cash (outflows)/inflows from financing activities (291.7) 236.7 47.1 (7.9) Reconciliation of adjusted EBITDA Profit for the year 78.5 Income tax 26.6 Profit before tax 105.1 Finance expense 78.4 Finance income (58.3) Results from operating activities 125.2 Depreciation 169.1 Share-based payment expense 21.4 Change in estimate of environmental rehabilitation recognised in profit or loss (60.0) Gain on financial instruments at fair value through profit or loss (2.1) Gain on disposal of property, plant and equipment (5.8) Retrenchment costs 6.3 - - - - Adjusted EBITDA 1 254.1 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. 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 and finished inventories - Gold Bullion 24.5 - 24.5 Operating profit 355.2 - 355.2 Administration expenses and other 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 additions to property, plant and equipment 347.2 (70.8) 276.4 Additions to property, plant and equipment (125.2) (0.9) (126.1) - - - Working profit/(loss) after additions to property, plant and equipment 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 Payments made under protest 3 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 53.3 (46.8) 6.5 - Deferred tax 23.2 (3.7) 19.5 - Net other operating (costs)/income 36.2 (15.6) 20.6 - Ongoing rehabilitation expenditure 26.7 - 26.7 - Discount recognised on Payments made under protest including subsequent unwinding 8.1 - 8.1 - Unwinding of provision for environmental rehabilitation 44.3 1.3 45.6 - Loss on disposal of property, plant and equipment 0.6 - 0.6 - Growth in environmental rehabilitation obligation funds (10.1) (6.2) (16.3) - Change in estimate of provision for environmental rehabilitation recognised in profit or loss (2.5) (0.4) (2.9) - Depreciation 167.4 0.6 168.0 Working profit/(loss) before additions to property, plant and equipment 347.2 (70.8) 276.4 Statement of cash flows Cash inflows/(outflows) from operating activities 285.3 (51.5) 233.8 Cash outflows from investing activities (140.2) (0.2) (140.4) Cash outflows from financing activities (2.8) (42.2) (45.0) |
PAYMENTS MADE UNDER PROTEST (Ta
PAYMENTS MADE UNDER PROTEST (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Payments made under protest [abstract] | |
Payments made under protest | Amounts in R million Note 2020 2019 Balance at the beginning of the year 27.6 19.4 Payments made under protest 10.6 11.7 Discount on initial payment made under protest 7 (7.1) (6.5) Unwinding 6 3.9 3.0 Balance at the end of the year 35.0 27.6 |
OTHER INVESTMENTS (Table)
OTHER INVESTMENTS (Table) | 12 Months Ended |
Jun. 30, 2020 | |
Other Investments [abstract] | |
Investment in other entities | Amounts in R million Shares held % held 2020 2019 Listed investments (Fair value hierarchy Level 1): West Wits Mining Limited (" WWM ") 1 47,812,500 5.1% 12.0 3.3 Total listed investments 12.0 3.3 Unlisted investments (Fair value hierarchy Level 3): Rand Refinery Proprietary Limited (" Rand Refinery ") 2 44,438 11.3% 178.4 - Rand Mutual Assurance Company Limited B Share Business Fund (" RMA ") 2,3 12,659 1.3% 4.7 - Guardrisk Insurance Company Limited (Cell Captive A170) 2,4 20 # 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 2 42,292 4.5% 0.1 0.1 Total unlisted investments 183.3 0.2 Balance at the end of the year 195.3 3.5 Dividends received on equity instruments at fair value through OCI (RMA) 6 (4.3) - Fair value adjustment on equity instruments at fair value through OCI 191.8 (5.9) 1 Listed 2 Unlisted 3 The 1 "B Share Business Fund" share relates to all the businesses of the RMA Group that do not relate to the Compensation for Occupational Injuries and Diseases Act 4 The shares held entitles the holder to 100% of the residual net equity of Cell Captive A 170 after settlement of the reimbursive right |
Key observable/unobservable inputs into the model | Amounts in R million Observable/unobservable input Rand Refinery operations Average gold price Observable input R852,098/kg Average silver price Observable input R9,453/kg Average South African CPI Observable input 4.8% Terminal growth rate Unobservable input 5.0% Weighted average cost of capital Unobservable input 15.1% Investment in Prestige Bullion Discount period Unobservable input 13 years Cost of equity Unobservable input 13.2% |
Sensitivity analysis | Input % change in OCI, net of tax Amounts in R million Increase Decrease Increase Decrease Rand Refinery operations Rand US Dollar exchange rate Observable inputs 1% (1%) 2.1% (2.2%) Commodity prices (Gold and silver) Observable inputs 1% (1%) 1.7% (1.8%) Volumes Unobservable inputs 1% (1%) 2.0% (2.0%) Weighted average cost of capital Unobservable inputs 1% (1%) (1.7%) 2.0% Minority discount Unobservable inputs 1% (1%) (1.2%) 1.2% Marketability discount Unobservable inputs 1% (1%) (1.2%) 1.2% Investment in Prestige Bullion = Cost of equity Unobservable inputs 1% (1%) (1.3%) 1.4% Prestige Bullion dividend forecast Unobservable inputs 1% (1%) 0.4% (0.4%) |
ABOUT THESE CONSOLIDATED FINA_3
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign exchange rates [abstract] | |||
Spot rate at year end | 17.32 | 14.07 | 13.72 |
Average rate for the financial year | 15.66 | 14.18 | 12.85 |
Name of parent entity | Sibanye Stillwater Limited | ||
Percentage of ownership interest in DRD Gold group, held by Sibanye Gold Limited | 50.10% |
NEW STANDARDS, AMENDMENTS TO _3
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS - impact of the adoption of IFRS 16 (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jul. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
New standards amendments to standards and interpretations [abstract] | ||||
Operating lease commitments at June 30, 2019 | R 37.6 | |||
Operating lease commitments at July 1, 2019 were discounted using the weighted average incremental borrowing rate at July 1, 2019 | R (6.7) | |||
Operating lease commitments recognised as lease liabilities on the statement of financial position at July 1, 2019 (not previously recognised) | 30.9 | |||
Finance lease liabilities previously recognised under IAS 17 at 30 June, 2019 | 11 | |||
Total lease liabilities recognised at July 1, 2019 | R 47.1 | R 41.9 | R 11 | R 14.7 |
NEW STANDARDS, AMENDMENTS TO _4
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS - Narrative (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 10.31% |
Discussion of impact that initial application of new IFRS is expected to have on financial statements | New standards, amendments to standards and interpretations effective for the year ended June 30, 2020 During the financial period, the following new and revised accounting standards, amendments to standards and new interpretation were adopted by the Group: |
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 July 1, 2019) The Group adopted IFRS 16 Leases (“IFRS 16”) on July 1, 2019, using the modified retrospective method. The Group elected to measure the right of use asset at an amount equal to the lease liabilities for leases previously expensed as operating leases. The nature of the leases include property rentals, vehicle rentals, and equipment hire. The equipment hire includes the rental of an electricity generator which was previously classified as a finance lease under IAS 17 Leases (“IAS 17”). The carrying amount of the right-of-use asset and the lease liability at the date of initial application was measured using the carrying amount of the lease asset and lease liability immediately before under IAS 17. The Group applied the following practical expedients: the Group elected not to separate non-lease components and account for the lease and non-lease component as a single lease component; leases for which the underlying asset is of low value; and short-term leases defined as less than 12 months. The Group applied the following judgements: assessing whether an arrangement contains a lease; where the Group has the option to terminate a contract with no more than an insignificant penalty, the lease is no longer deemed to be enforceable. However, in making this assessment management will in addition, take into account the nature of the asset, the alternative procurement of the asset and the general economics of the contract in assessing its enforceability; where a lease is on a month to month basis, the lease term is limited to one month’s enforceable period, therefore that lease is excluded from the lease population; where a contract includes an option to renew, management will consider whether it is reasonably certain that the option will be exercised. In making this assessment, the historical renewal behaviour will be considered, considering the strategic nature of that asset; the determination of the right of use asset to be equal to the lease liability, adjusted for prepaid or accrued lease payments immediately before the date of initial application. This resulted in there being no impact on retained earnings at adoption date; and to use the Group’s incremental borrowing rate in discounting the future payments. The weighted average discount rate applied was 10.31% per annum. |
IFRIC 23 Uncertainty over Income Tax Treatments [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 | IFRIC 23 Uncertainty over Income Tax Treatments (Effective date July 1, 2019) IFRIC 23 Uncertainty over Income Tax Treatments (“IFRIC 23”) clarifies the accounting for income tax treatments that have yet to be accepted by tax authorities. Specifically, IFRIC 23 provides clarity on how to incorporate this uncertainty into the measurement of tax as reported in the financial statements. IFRIC 23 does not introduce any new disclosures but reinforces the need to comply with existing disclosure requirements about: judgements made; assumptions and other estimates used; and the potential impact of uncertainties that are not reflected. Information about significant judgements, assumptions and estimates related to uncertainties with regard to the measurement of tax as reported in the financial statements are included in the following note: NOTE 18 INCOME TAX |
IFRS Standards 2015/2017 Cycle various standards [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 | Annual Improvements to IFRS Standards 2015/2017 Cycle various standards (effective July 1, 2019) As part of its process to make non-urgent but necessary amendments to IFRS, the IASB has issued the Annual Improvements to IFRS Standards 2015–2017 Cycle. This did not have a material impact on the Group. |
REVENUE - Disaggregation (Detai
REVENUE - Disaggregation (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue [Abstract] | |||
Gold Revenue | R 4,179.3 | R 2,758.8 | R 2,486.4 |
Silver Revenue | 5.7 | 3.3 | 4 |
Total Revenue | R 4,185 | R 2,762.1 | R 2,490.4 |
REVENUE - Market Risk (Details)
REVENUE - Market Risk (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
US Dollar gold price sensitivity [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage increase decrease in Rand gold price | 20.00% | 20.00% | 20.00% |
US Dollar gold price sensitivity [member] | 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 profit and loss | R (837) | R (552.4) | R (498.1) |
US Dollar gold price sensitivity [member] | 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 profit and loss | R 837 | R 552.4 | R 498.1 |
Rand to US Dollar exchange rate sensitivity [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage increase decrease in Rand gold price | 10.00% | 10.00% | 10.00% |
Rand to US Dollar exchange rate sensitivity [member] | 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 profit and loss | R (418.5) | R (276.2) | R (249) |
Rand to US Dollar exchange rate sensitivity [member] | 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 profit and loss | R 418.5 | R 276.2 | R 249 |
RESULTS FROM OPERATING ACTIVI_3
RESULTS FROM OPERATING ACTIVITIES - Cost of sales (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |||
Cost of sales | R (2,937.9) | R (2,553.9) | R (2,347.7) |
Operating costs | (2,692.1) | (2,471.1) | (2,207.1) |
Movement in gold in process and finished inventories - Gold Bullion | 3.1 | 32.6 | 24.5 |
Depreciation | (270.8) | (169.1) | (168) |
Change in estimate of environmental rehabilitation | 21.9 | 60 | 2.9 |
Retrenchment costs | 0 | (6.3) | 0 |
Operating cost [abstract] | |||
Consumable stores | (801) | (866.5) | (784.6) |
Labour including short term incentives | (573) | (476.7) | (417.4) |
Electricity | (420.9) | (399.4) | (369) |
Specialist service providers | (447.5) | (437.1) | (326.9) |
Water | (47) | (44.1) | (49.9) |
Pre-production costs capitalised | 0 | 93.7 | 0 |
Retrenchment costs [Abstract] | |||
Voluntary staff retrenchments | R 0 | R 6.3 | R 0 |
RESULTS FROM OPERATING ACTIVI_4
RESULTS FROM OPERATING ACTIVITIES - Related party transactions (Details) R in Millions | 12 Months Ended | ||
Jun. 30, 2020ZAR (R) | Jun. 30, 2019ZAR (R) | Jun. 30, 2018ZAR (R) | |
Sibanye stillwater [member] | Other charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | R 1.6 | R 0 | |
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Description of nature of related party relationship | FWGR entered into a smelting agreement with Sibanye-Stillwater on July 31, 2018 to smelt and recover gold from gold loaded carbon produced at FWGR, and deliver the gold to Rand Refinery. As consideration for this service, Sibanye-Stillwater receives a fee based on the smelting costs plus 10% of the smelting costs. Rand Refinery performs the final refinement and marketing of all gold and silver produced by the Group. As consideration for this service, Rand Refinery receives a variable refining fee plus fixed marketing and administration fees. All transactions and outstanding balances with related parties are to be settled in cash within 30 days of the invoice date. None of the balances are secured. No expense has been recognised in the current year as a credit loss allowance in respect of amounts charged to related parties. | ||
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | Sibanye stillwater [member] | |||
Disclosure of transactions between related parties [line items] | |||
Percentage of smelting costs included, consideration given | 0.1 | ||
Explanation of terms and conditions of outstanding balances for related party transaction | All transactions and outstanding balances with related parties are to be settled in cash within 30 days of the invoice date. None of the balances are secured. No expense has been recognised in the current year as a credit loss allowance in respect of amounts charged to related parties. | ||
Sibanye stillwater [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | R 76.1 | 26.9 | |
Charges to Sibanye-Stillwater | (0.2) | (6.5) | R 0 |
Sibanye stillwater [member] | Supply of water and electricity [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | 50 | 16.9 | |
Sibanye stillwater [member] | Gold smelting and related charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | 19.8 | 12.9 | |
Sibanye stillwater [member] | Gold refining and related charges [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | R 4.9 | R 3.6 |
RESULTS FROM OPERATING ACTIVI_5
RESULTS FROM OPERATING ACTIVITIES - Other Income and Admin expenses (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |||
Gains on disposals of property, plant and equipment | R 0.7 | R 5.8 | R 0 |
Gain on financial instruments at fair value through profit or loss | 0 | 2.1 | 0 |
Other income | R 0.7 | R 7.9 | R 0 |
RESULTS FROM OPERATING ACTIVI_6
RESULTS FROM OPERATING ACTIVITIES - Administration expenses and other costs (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |||
Share based payment expenses | R (224.1) | R (21.4) | R (17.2) |
Cash settled Long-Term Incentive ("LTI") scheme | (218.1) | (21.4) | (17.2) |
Equity settled Long-Term Incentive ("LTI") scheme | (6) | 0 | 0 |
Transactions costs | (1.4) | 0 | (9) |
Loss on disposal of property, plant and equipment | R 0 | R 0 | R (0.6) |
FINANCE INCOME (Details)
FINANCE INCOME (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finance Income [Abstract] | |||
Interest on financial assets measured at amortised cost | R 63.1 | R 17 | R 21.8 |
Growth in cash and cash equivalents in environmental rehabilitation trust funds | 33.3 | 30.5 | 7.5 |
Growth in reimbursive right for environmental rehabilitation guarantees | 5.2 | 7.8 | 8.8 |
Dividends received | 4.3 | 0 | 0 |
Unwinding of Payments made under protest | 3.9 | 3 | 0.7 |
Finance income | R 109.8 | R 58.3 | R 38.8 |
FINANCE EXPENSE (Details)
FINANCE EXPENSE (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of finance expense [abstract] | |||
Interest on financial liabilities measured at amortised cost | R (2) | R (10.2) | R 0 |
Interest on financial liabilities measured at amortised cost capitalised | 0 | 9.4 | 0 |
Unwinding of provision for environmental rehabilitation | (52) | (66.3) | (45.6) |
Discount recognised on Payments made under protest | (7.1) | (6.5) | (8.8) |
Interest on lease liabilities | (5.1) | (2) | (2.5) |
Other Finance expenses | (2.6) | (2.8) | (1.5) |
Finance expense | R (68.8) | R (78.4) | R (58.4) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic Earnings Per Share [Abstract] | |||
Profit for the year | R 635 | R 78.5 | R 6.5 |
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 | 769,941,874 | 664,553,283 | 422,068,696 |
Effect of Sibanye-Stillwater Option | 4,283,001 | 0 | 0 |
Effect of equity-settled share-based payment | 9,464,684 | 15,387,695 | 0 |
Diluted weighted average number of ordinary shares | 783,689,559 | 679,940,978 | 422,068,696 |
SA cents per share [Abstract] | |||
Basic earnings per share | R 82.5 | R 11.8 | R 1.5 |
Diluted earnings per share | R 81 | R 11.5 | R 1.5 |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | R 2,775.3 | ||
Additions - property, plant and equipment owned | 182.7 | R 353.7 | R 126.1 |
Borrowing cost capitalised | 0 | 9.4 | 0 |
Additions - right-of-use assets | 18 | 0 | |
Closing balance | 2,621.1 | 2,775.3 | |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 4,519.7 | 3,031.3 | |
FWGR acquisition | 1,225.6 | ||
Additions - property, plant and equipment owned | 182.7 | 353.7 | |
Borrowing cost capitalised | 9.4 | ||
Additions - right-of-use assets | 18 | ||
Lease modifications | 7.5 | ||
Lease derecognitions | (26.8) | ||
Disposals | (1.6) | (3.3) | |
Change in estimate of decommissioning asset | (113.6) | (97) | |
Transfers between classes of property, plant and equipment | 0 | 0 | |
Closing balance | 4,616.8 | 4,519.7 | 3,031.3 |
Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 30.9 | ||
Closing balance | 30.9 | ||
Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (1,744.4) | (1,578.6) | |
Depreciation | (270.8) | (169.1) | |
Lease derecognitions | 17.9 | ||
Disposals | 1.6 | 3.3 | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | (1,995.7) | (1,744.4) | (1,578.6) |
Mine plant facilities and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,246.3 | ||
Closing balance | 1,186 | 1,246.3 | |
Mine plant facilities and equipment [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 2,156.2 | 1,689.5 | |
FWGR acquisition | 198.4 | ||
Additions - property, plant and equipment owned | 121.2 | 284.5 | |
Borrowing cost capitalised | 9.4 | ||
Additions - right-of-use assets | 3.8 | ||
Lease modifications | 0 | ||
Lease derecognitions | (26.7) | ||
Disposals | (1.6) | (1.6) | |
Change in estimate of decommissioning asset | (56.7) | (24) | |
Transfers between classes of property, plant and equipment | (0.2) | 0 | |
Closing balance | 2,203.5 | 2,156.2 | 1,689.5 |
Mine plant facilities and equipment [Member] | Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 7.5 | ||
Closing balance | 7.5 | ||
Mine plant facilities and equipment [Member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (909.9) | (815.4) | |
Depreciation | (127.1) | (96.1) | |
Lease derecognitions | 17.9 | ||
Disposals | 1.6 | 1.6 | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | (1,017.5) | (909.9) | (815.4) |
Mine property and development [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,282 | ||
Closing balance | 1,178.5 | 1,282 | |
Mine property and development [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 2,106.8 | 1,264.5 | |
FWGR acquisition | 849.9 | ||
Additions - property, plant and equipment owned | 46.5 | 66.7 | |
Borrowing cost capitalised | 0 | ||
Additions - right-of-use assets | 14.2 | ||
Lease modifications | 7.5 | ||
Lease derecognitions | (0.1) | ||
Disposals | 0 | (1.7) | |
Change in estimate of decommissioning asset | (51.5) | (75.3) | |
Transfers between classes of property, plant and equipment | 0.2 | 2.7 | |
Closing balance | 2,147 | 2,106.8 | 1,264.5 |
Mine property and development [member] | Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 23.4 | ||
Closing balance | 23.4 | ||
Mine property and development [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (824.8) | (753.5) | |
Depreciation | (143.7) | (73) | |
Lease derecognitions | 0 | ||
Disposals | 0 | 1.7 | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | (968.5) | (824.8) | (753.5) |
Exploration and evaluation assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 247 | ||
Depreciation | 0 | ||
Closing balance | 256.6 | 247 | |
Exploration and evaluation assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 256.7 | 77.3 | |
FWGR acquisition | 177.3 | ||
Additions - property, plant and equipment owned | 15 | 2.5 | |
Borrowing cost capitalised | 0 | ||
Additions - right-of-use assets | 0 | ||
Lease derecognitions | 0 | ||
Disposals | 0 | 0 | |
Change in estimate of decommissioning asset | (5.4) | 2.3 | |
Transfers between classes of property, plant and equipment | 0 | (2.7) | |
Closing balance | 266.3 | 256.7 | 77.3 |
Exploration and evaluation assets [member] | Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | ||
Closing balance | 0 | ||
Exploration and evaluation assets [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (9.7) | (9.7) | |
Depreciation | 0 | 0 | |
Lease derecognitions | 0 | ||
Disposals | 0 | 0 | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | R (9.7) | R (9.7) | R (9.7) |
PROPERTY PLANT AND EQUIPMENT -
PROPERTY PLANT AND EQUIPMENT - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Contracted for but not provided for in the consolidated financial statements | R 130.6 | R 18.6 | |
Mine plant facilities and equipment [Member] | Bottom of Range [member] | Ergo [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 4 years | 3 years | 4 years |
Mine plant facilities and equipment [Member] | Bottom of Range [member] | FWGR [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 4 years | 5 years | |
Mine plant facilities and equipment [Member] | Top of range [member] | Ergo [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 13 years | 11 years | 12 years |
Mine plant facilities and equipment [Member] | Top of range [member] | FWGR [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 20 years | 15 years |
RIGHT OF USE ASSETS AND LEASE_2
RIGHT OF USE ASSETS AND LEASES - Right-of-use assets (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | R 18 | R 0 |
Closing balance | 44.9 | |
Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | 26.5 | |
Additions | 18 | |
Lease modifications | 7.5 | |
Lease derecognitions | (26.8) | |
Closing balance | 56.1 | |
Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 30.9 | |
Closing balance | 30.9 | |
Accumulated depreciation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | (15.9) | |
Depreciation, right-of-use assets | (13.2) | |
Lease derecognitions | 17.9 | |
Closing balance | (11.2) | |
Mine plant facilities and equipment [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Closing balance | 8.2 | |
Mine plant facilities and equipment [Member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | 26.5 | |
Additions | 3.8 | |
Lease modifications | 0 | |
Lease derecognitions | (26.7) | |
Closing balance | 11.1 | |
Mine plant facilities and equipment [Member] | Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 7.5 | |
Closing balance | 7.5 | |
Mine plant facilities and equipment [Member] | Accumulated depreciation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | (15.9) | |
Depreciation, right-of-use assets | (4.9) | |
Lease derecognitions | 17.9 | |
Closing balance | (2.9) | |
Mine property and development [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Closing balance | 36.7 | |
Mine property and development [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | 0 | |
Additions | 14.2 | |
Lease modifications | 7.5 | |
Lease derecognitions | (0.1) | |
Closing balance | 45 | |
Mine property and development [member] | Gross carrying amount [member] | Impact of adopting IFRS 16 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 23.4 | |
Closing balance | R 23.4 | |
Mine property and development [member] | Accumulated depreciation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Transfers and other movements | 0 | |
Depreciation, right-of-use assets | (8.3) | |
Lease derecognitions | 0 | |
Closing balance | R (8.3) |
RIGHT OF USE ASSETS AND LEASE_3
RIGHT OF USE ASSETS AND LEASES - Lease liabilities (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of the lease liabilities balance [Line items] | |||
Balance at the beginning of the year | R 11 | R 14.7 | |
New leases | 18 | 0 | |
Leases derecognised | (8.9) | 0 | |
Interest charge on lease liabilities | 5.1 | 2 | R 2.5 |
Repayment of lease liabilities (2019: repayment of finance lease obligations) | (11.4) | (3.7) | (2.8) |
Interest repaid | (5.1) | (2) | |
Balance at the end of the year | 47.1 | 11 | R 14.7 |
Current portion of lease liabilities | (10.1) | (11) | |
Non-current lease liabilities | 37 | 0 | |
Total undiscounted lease liabilities at June 30, 2020 | 59 | 0 | |
Lease payments not recognised as a liability but expensed during the year: | |||
Short-term leases | 2.4 | 0 | |
Leases of low value assets | 5 | 0 | |
Cash flows included in cash generated from operating activities | 7.4 | 0 | |
Less than a year [member] | |||
Reconciliation of the lease liabilities balance [Line items] | |||
Total undiscounted lease liabilities at June 30, 2020 | 13 | 0 | |
One to five years [member] | |||
Reconciliation of the lease liabilities balance [Line items] | |||
Total undiscounted lease liabilities at June 30, 2020 | 37 | 0 | |
More than 5 years [member] | |||
Reconciliation of the lease liabilities balance [Line items] | |||
Total undiscounted lease liabilities at June 30, 2020 | 9 | 0 | |
Impact of adopting IFRS 16 [member] | |||
Reconciliation of the lease liabilities balance [Line items] | |||
Balance at the beginning of the year | R 30.9 | ||
Balance at the end of the year | R 30.9 |
PROVISION FOR ENVIRONMENTAL R_3
PROVISION FOR ENVIRONMENTAL REHABILITATION - Narrative (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | ||
Discount Rate, maximum | 9.50% | 8.00% |
Discount Rate, minimum | 8.10% | 7.60% |
Inflation rate used in calculation of net present value of rehabilitation liability | 5.10% | 5.50% |
Undiscounted rehabilitation cost | R 752.5 | R 824.3 |
PROVISION FOR ENVIRONMENTAL R_4
PROVISION FOR ENVIRONMENTAL REHABILITATION (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of other provisions [line items] | |||
Opening balance | R 682.6 | R 553.4 | |
Acquisition of FWGR | 0 | 247.4 | |
Unwinding of provision | 52 | 66.3 | R 45.6 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (21.9) | (60) | (2.9) |
Change in estimate of environmental rehabilitation cost recognised to decommissioning asset | (113.6) | (97) | |
Environmental rehabilitation payments | (30.2) | (27.5) | |
Closing balance | 568.9 | 682.6 | 553.4 |
Environmental rehabilitation payments to reduce the liability | (30.2) | (27.5) | |
Ongoing rehabilitation expenditure | (24.3) | (18.3) | |
Total cash spent on environmental rehabilitation | 54.5 | 45.8 | |
To reduce decommissioning liabiliteis [member] | |||
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments | (22.1) | (16.6) | |
Environmental rehabilitation payments to reduce the liability | (22.1) | (16.6) | |
To reduce restoration liabilities [member] | |||
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments | (8.1) | (10.9) | (3.4) |
Environmental rehabilitation payments to reduce the liability | R (8.1) | R (10.9) | R (3.4) |
INVESTMENTS IN REHABILITATION_3
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Environmental obligations (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in investments in rehabilitation obligation funds movement [abstract] | |||
Opening balance, in environmental rehabilitation trust funds | R 508.9 | R 118 | |
FWGR Acquisition, in environmental rehabilitation trust funds | 0 | 360.4 | R 0 |
Growth, in environmental rehabilitation trust funds | 33.3 | 30.5 | 7.5 |
Cash and cash equivalents, in environmental rehabilitation trust funds | 542.2 | 508.9 | 118 |
Opening balance, for environmental rehabilitation guarantees | 78.6 | 126 | |
Funds received, for environmental rehabilitation guarantees | 0 | (55.2) | 0 |
Growth, for environmental rehabilitation guarantees | 5.2 | 7.8 | 8.8 |
Closing balance, for environmental rehabilitation guarantees | 83.8 | 78.6 | R 126 |
Investments in rehabilitation obligation funds | R 626 | R 587.5 |
INVESTMENTS IN REHABILITATION_4
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Market Risk (Details) - Interest rate risk [member] - Investments In Obligation Fund [Member] - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
100bp increase | R 5.4 | R 5.1 |
100bp decrease | R (5.4) | R (5.1) |
INVESTMENTS IN REHABILITATION_5
INVESTMENTS IN REHABILITATION OBLIGATION FUNDS - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
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. | |
Percentage of reasonably possible chgange, interest rate risk | 1.00% | |
Guardrisk guarantees in issue [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, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of financial assets [line items] | ||||
Cash on hand | R 63.5 | R 125.2 | ||
Access deposits and income funds | 1,632.3 | 136 | ||
Restricted cash | 19.3 | 18.3 | ||
Cash and cash equivalents | 1,715.1 | 279.5 | R 302.1 | R 253.7 |
Interest earned on cash and cash equivalents | R 63.1 | R 17 | R 21.8 | |
Effective annual yields | 5.50% | 7.00% |
CASH AND CASH EQUIVALENTS - Mar
CASH AND CASH EQUIVALENTS - Market Risks (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in basis points | 1.00% | |
Interest rate risk [member] | Cash and Cash Equivalents [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
100bp increase | R 10 | R 2.8 |
100bp decrease | R (10) | R (2.8) |
CASH GENERATED FROM OPERATION_2
CASH GENERATED FROM OPERATIONS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash generated from operations [abstract] | |||
Profit for the year | R 635 | R 78.5 | R 6.5 |
Adjusted for | |||
Income tax | (343.9) | (26.6) | (25.9) |
Depreciation | 270.8 | 169.1 | 168 |
Movement in gold in process and finished inventories - Gold Bullion | (3.1) | (32.6) | (24.5) |
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments | (30.2) | (27.5) | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (21.9) | (60) | (2.9) |
Share-based payment expense | 224.1 | 21.4 | 17.2 |
(Gain)/loss on disposal of property, plant and equipment | (0.7) | (5.8) | 0.6 |
Finance income | (109.8) | (58.3) | (38.8) |
Finance expense | 68.8 | 78.4 | 58.4 |
Other non-cash items | 2.6 | 1.8 | 1.3 |
Operating cash flows before working capital changes | 1,401.6 | 208.2 | 208.3 |
Working capital changes [abstract] | |||
Working capital changes | (92) | 73.8 | 14.6 |
Trade and other receivables | (79) | 22.5 | 22.2 |
Consumable stores and stockpiles | (26.4) | (24.8) | (28.2) |
Payments made under protest | (10.6) | (11.7) | (27.4) |
Trade and other payables and employee benefits | 24 | 87.8 | 48 |
Cash generated from operations | 1,309.6 | 282 | 222.9 |
Environmental rehabilitation payments [member] | |||
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments | R (8.1) | R (10.9) | R (3.4) |
TRADE AND OTHER RECEIVABLES - D
TRADE AND OTHER RECEIVABLES - Disclosure of trade and other receivables (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Trade and other receivables [abstract] | |||
Trade receivables | R 23.1 | R 0 | |
Value Added Tax | 83.5 | 42 | |
Other receivables | 17.3 | 25.3 | |
Prepayments | 25.1 | 5.5 | |
Allowance for impairment | (2.6) | (4.9) | R (9.2) |
Total trade and other receivables | R 146.4 | R 67.9 |
TRADE AND OTHER RECEIVABLES - B
TRADE AND OTHER RECEIVABLES - Balances of counterparties who have been assessed as being credit impaired at reporting date (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | R 23.1 | R 0 | |
Other receivables | 17.3 | 25.3 | |
Loss allowance | (2.6) | (4.9) | R (9.2) |
Trade and other receivables | 146.4 | 67.9 | |
Financial instruments not credit-impaired [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 23.1 | 0 | |
Other receivables | 14.7 | 23.2 | |
Loss allowance | 0 | (2.8) | |
Trade and other receivables | 37.8 | 23.2 | |
Financial instruments credit-impaired [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 0 | 0 | |
Other receivables | 2.6 | 2.1 | |
Loss allowance | (2.6) | (2.1) | |
Trade and other receivables | R 2.6 | R 2.1 |
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) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Opening balance | R (4.9) | R (9.2) |
Credit loss allowance/impairments recognised included in operating costs | (0.2) | (3.1) |
Credit loss allowance/impairments reversed included in operating costs | 0.4 | 5.3 |
Credit loss allowance written off against related receivable | 2.1 | 5.3 |
Closing balance | R (2.6) | (4.9) |
Financial Effect Of Changes In Accounting Policy [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Opening balance | (3.2) | |
In accordance with IFRS 9 [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Opening balance | R (12.4) |
TRADE AND OTHER RECEIVABLES -_2
TRADE AND OTHER RECEIVABLES - Market Risk (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | R 23.1 | R 0 |
Strengthening of the Rand against the US Dollar [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Net foreign exchange loss | R (2.3) | 0 |
Percentage increase or decrease in foreign exchange rates | 10.00% | |
Weakening of the Rand against the US Dollar [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Net foreign exchange gain | R 2.3 | 0 |
Foreign denomination [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | R 1.3 | R 0 |
TRADE AND OTHER RECEIVABLES - N
TRADE AND OTHER RECEIVABLES - Narrative (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Trade and other receivables [abstract] | |
Number of working days in cycle for settlement of trade receivables | 2 days |
Number of days past due but not impaired, still collectible | 30 days |
Number of working years in cycle for settlement of other receivables | 5 years |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Trade and other payables [abstract] | ||
Trade payables and accruals | R 348 | R 324.4 |
Accrued leave pay | 46.9 | 39 |
Provision for short term performance based incentives | 50.5 | 32.5 |
Payroll Accruals | 33.4 | 23.3 |
Total trade and other current payables | 478.8 | 419.2 |
Interest relating to trade payables and accruals included in profit or loss | (1.9) | (2) |
Sibanye stillwater [member] | ||
RELATED PARTY BALANCES | ||
Amounts payable, related party transactions | 14 | 4.1 |
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | ||
RELATED PARTY BALANCES | ||
Amounts payable, related party transactions | R 0.2 | R 0.2 |
INVENTORIES (Details)
INVENTORIES (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Inventories [abstract] | ||
Consumable stores | R 165.6 | R 145.2 |
Gold in process | 95.6 | 99.6 |
Finished stock - Gold Bullion | 62.2 | 59.8 |
Total inventories | 323.4 | 304.6 |
Stockpiles of sand material | R 13.7 | R 20.3 |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current Tax And Deferred Tax Expense Income And Adjustments Of Prior Periods [Abstract] | |||
Current tax | R (263.2) | R 1.6 | R (6.4) |
Mining tax | (263.2) | 0 | 0 |
Non-Mining, company and capital gains tax | 0 | 1.6 | (6.4) |
Deferred tax | (80.7) | (28.2) | (19.5) |
Deferred tax charge - Mining tax | (59.1) | (14.8) | (10.4) |
Deferred tax charge - Non-mining, company and capital gains tax | (2.1) | 1.6 | 3.7 |
Deferred tax rate adjustment | (20.7) | (15) | (12.8) |
Recognition of previously unrecognised tax losses of a capital nature | 1.2 | 0 | 0 |
Total income tax | R (343.9) | R (26.6) | R (25.9) |
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 profit before tax at the South African corporate rate of 28% | R (274.1) | R (30.2) | R (9) |
Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula | (0.9) | 7.4 | 3.5 |
Deferred tax rate adjustment | (20.7) | (15) | (12.8) |
Non-deductible expenditure | (29.3) | (11.9) | (9.8) |
Utilisation of tax losses for which deferred tax assets were previously unrecognised | 0 | 0 | 2.6 |
Current year tax losses for which no deferred tax has been recognised | (23.5) | (2.7) | (0.8) |
Exempt income and other non-taxable income | 2.4 | 4.4 | 0 |
Other temporary differences | 0.4 | 16.8 | 0 |
Over/(under) provided in prior periods | 0 | 2.9 | 0 |
Recognition of previously unrecognised tax losses of a capital nature | 1.2 | 0 | 0 |
Tax incentives | 0.6 | 1.7 | 0.4 |
Income tax | R (343.9) | R (26.6) | R (25.9) |
INCOME TAX EXPENSE - DEFERRED T
INCOME TAX EXPENSE - DEFERRED TAX (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Included in the statement of financial position as follows: | |||
Deferred tax assets | R 8 | R 10 | |
Deferred tax liabilities | (273.1) | (193.2) | |
Net deferred tax liabilities | R (265.1) | R (183.2) | R (155) |
INCOME TAX EXPENSE - Movements
INCOME TAX EXPENSE - Movements in net deferred tax liability (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
ReconciliationOfChangesInDeferredTaxLiabilityAssetAbstract | |||
Balance at the beginning of the year | R (183.2) | R (155) | |
Recognised in profit or loss | (80.7) | (28.2) | R 19.5 |
Recognised in other comprehensive income | (1.2) | 0 | |
Balance at the end of the year | R (265.1) | R (183.2) | R (155) |
INCOME TAX EXPENSE - Detailed c
INCOME TAX EXPENSE - Detailed components of the net deferred tax assets and liabilities (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax liabilities | R (475) | R (412.8) | |
Gross deferred tax assets | 209.9 | 229.6 | |
Net deferred tax liabilities | (265.1) | (183.2) | R (155) |
Property, plant and equipment (excluding capital expenditure) [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax liabilities | (422.4) | (380.2) | |
Environmental rehabilitation obligation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax liabilities | (51.4) | (32) | |
Gross deferred tax assets | 126.5 | 112.6 | |
Other provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax assets | 72.6 | 33.8 | |
Other temporary differences [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax assets | 8.5 | 0 | |
Estimated tax losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax assets | 1.2 | 0 | |
Estimated unredeemed capital expenditure [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax assets | 1.1 | 83.2 | |
Investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Gross deferred tax liabilities | R (1.2) | R 0 |
INCOME TAX EXPENSE - Deferred_2
INCOME TAX EXPENSE - Deferred tax assets have not been recognised (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Provision for environmental rehabilitation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | R 20.3 | R 0 |
Estimated tax losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | 22 | 19.4 |
Estimated tax losses - Capital nature [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | 324 | 329.9 |
Unredeemed capital expenditure [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | R 254.7 | R 254.8 |
INCOME TAX EXPENSE - Narrative
INCOME TAX EXPENSE - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Major components of tax expense (income) [abstract] | |||
Increase in effective tax rate | 1.00% | ||
Increase in net deferred liability | R 10.3 | R 8.6 | R 8 |
Description of formula for calculating tax on gold mining income | 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% for all periods presented. 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 future mining income. | ||
Applicable tax rate nonmining income | 28.00% | ||
Disclosure of non-deductible epenses [abstract] | |||
Net Operating Cost, Non Deductible For Tax | R 14.6 | 11.3 | 7.5 |
Depreciation | 73.2 | 16.6 | |
Discount recognised on Payments made under protest | 7.1 | 6.5 | 8.8 |
Expenditure not incurred in generation of taxable income | R 2.7 | R 6 | R 15 |
Percentage decrease [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 22.00% | 20.30% | 18.60% |
Percentage increase [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 25.00% | 22.00% | 20.30% |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - ZAR (R) R in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Employee benefits [Abstract] | ||
Non-current employee benefits | R 10.1 | R 37.4 |
Liability for long term incentive scheme | 0 | 28.4 |
Liability for post-retirement medical benefits | 10.1 | 9 |
Current employee benefits | 227.6 | 22.6 |
Liability for long term incentive scheme | 227.6 | 22.6 |
Total employee benefits | R 237.7 | R 60 |
EMPLOYEE BENEFITS - Long term i
EMPLOYEE BENEFITS - Long term inentive scheme (Details) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2020ZAR (R)sharesR / shares | Jun. 30, 2019ZAR (R)sharesR / shares | Jun. 30, 2018ZAR (R)shares | |
Movements in the total liability for long-term incentive scheme is as follows: | |||
Opening balance | R | R 51 | R 45.1 | |
Increase in long-term incentive liability | R | 218.1 | 21.4 | R 17.2 |
Vested and paid | R | (41.5) | (15.5) | |
Total liability for long term incentive scheme | R | R 227.6 | R 51 | R 45.1 |
Reconciliation of outstanding phantom shares abstract | |||
Opening balance | 16,157,058 | 20,189,467 | |
Granted | 0 | 388,547 | |
Vested and paid | 5,674,252 | 4,037,883 | |
Forfeited | (637,168) | (383,073) | |
Closing balance | 9,845,638 | 16,157,058 | 20,189,467 |
Granted | R / shares | R 3.37 | ||
Vested and paid | R / shares | R 7.31 | 3.82 | |
Forfeited | R / shares | R 7.08 | R 4.37 | |
Within 12 months after reporting date [member] | |||
Movements in the total liability for long-term incentive scheme is as follows: | |||
Opening balance | R | R 22.6 | ||
Total liability for long term incentive scheme | R | 227.6 | R 22.6 | |
After 12 months after reporting date [Member] | |||
Movements in the total liability for long-term incentive scheme is as follows: | |||
Opening balance | R | 28.4 | ||
Total liability for long term incentive scheme | R | R 0 | R 28.4 | |
Phantom shares [Member] | |||
Reconciliation of outstanding phantom shares abstract | |||
Opening balance | 16,157,058 | 20,189,467 | |
Granted | 0 | 388,547 | |
Vested and paid | (5,674,252) | (4,037,883) | |
Forfeited | (637,168) | (383,073) | |
Closing balance | 9,845,638 | 16,157,058 | 20,189,467 |
EMPLOYEE BENEFITS - fair value
EMPLOYEE BENEFITS - fair value (Details) - R / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2016 | |
Inputs to option pricing model, share options granted [Abstract] | |||
7 day VWAP of the DRDGOLD Limited share | R 25.14 | R 4.37 | R 2.26 |
Annualized Forward dividend yield | 1.00% | 4.30% | 4.30% |
EMPLOYEE BENEFITS - Percentage
EMPLOYEE BENEFITS - Percentage of performance shares vesting (Details) | Jun. 30, 2020 |
Percentage performance shares versting: | |
% of performance shares vesting 25th percentile | 0.00% |
% of performance shares vesting, 25th to 50th percentile | 0.25% |
% of performance shares vesting, 50th to 75th percentile | 0.75% |
% of performance shares vesting, more than or equal to 75th percentile | 1.00% |
EMPLOYEE BENEFITS - Movement in
EMPLOYEE BENEFITS - Movement in the number of conditional shares (Details) - shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | 16,157,058 | 20,189,467 |
Granted | 0 | 388,547 |
Closing balance | 9,845,638 | 16,157,058 |
Conditional shares [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | 0 | |
Granted | 5,860,760 | |
Closing balance | 5,860,760 | 0 |
Conditional shares [Member] | 2022 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | 0 | |
Granted | 2,930,380 | |
Closing balance | 2,930,380 | 0 |
Conditional shares [Member] | 2023 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | 0 | |
Granted | 2,930,380 | |
Closing balance | 2,930,380 | 0 |
EMPLOYEE BENEFITS - Key managem
EMPLOYEE BENEFITS - Key management personnel remuneration (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Key management personnel remuneration [abstract] | |||
Board fees paid | R 6.2 | R 5.8 | R 5.6 |
Salaries paid | 67.3 | 61.7 | 53.6 |
Short term incentives relating to this cycle | 63.6 | 31.5 | 22.5 |
Long term incentives paid during the cycle | 41.5 | 15.5 | 2.8 |
Retrenchments | 0 | 1.6 | 0 |
Total short term compensation | R 178.6 | R 116.1 | R 84.5 |
EMPLOYEE BENEFITS - Monte Carlo
EMPLOYEE BENEFITS - Monte Carlo simulation pricing model (Details) | Dec. 02, 2022yrR / shares | Dec. 02, 2021yrR / shares | Jun. 30, 2020R / shares | Jun. 30, 2019R / shares | Jun. 30, 2016R / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Grant date share price of DRDGold share | R 25.14 | R 4.37 | R 2.26 | ||
Expected dividend as percentage | 1.00% | 4.30% | 4.30% | ||
Forecast [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Weighted average fair value of 80% performance shares | R 4.12 | R 4.26 | |||
Weighted average fair value of 20% retention shares | R 5.49 | R 5.69 | |||
Expected term (years) | yr | 3 | 2 | |||
Grant date share price of DRDGold share | R 6.15 | R 6.15 | |||
Expected dividend as percentage | 3.81% | 3.86% | |||
Expected volatility | 53.80% | 53.80% | |||
Expected risk free rate | 6.80% | 6.68% |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Terms of shares | Terms of the November 2015 grant made under the DRDGOLD Group's outgoing LTI 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 an exercise price of nil and will vest in 3 tranches: 20%, 30% and 50% on the 3rd, 4th and 5th 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. The last tranche of the November 2015 grant will vest during November 2020. The outgoing LTI scheme is replaced by a new equity settled long-term incentive scheme (refer note ##NoteEmplBenefits.2). | ||
Percentage of performance shares of the total conditional shares awarded | 80.00% | ||
Percentage of retention shares of the total conditional shares awarded | 20.00% | ||
Percentage of shares vested in two tranches second anniversary | 50.00% | ||
Percentage of shares vested in two tranches third anniversary | 50.00% | ||
Percentage of retention share condition on continuous employment vesting date | 100.00% | ||
Hurdle rate | 15.00% | ||
Percentage of performance shares linked to condition of hurdle rate | 50.00% | ||
Percentage of performance shares linked to condition of peer group performance | 50.00% | ||
Phantom shares [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Finite term of incentive term | 5 years | ||
Percentage of shares vested | 50.00% | 30.00% | 20.00% |
CAPITAL MANAGEMENT - Narrative
CAPITAL MANAGEMENT - Narrative (Details) R in Millions | 12 Months Ended | |||
Jun. 30, 2020ZAR (R) | Sep. 30, 2020ZAR (R) | Jun. 30, 2019ZAR (R) | Dec. 31, 2018ZAR (R) | |
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Debt ratio | 0.5 | |||
Interest coverage ratio | 0.25 | |||
Phase 1 of FWGR [member] | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Undrawn Borrowing Facilities | R 300 | R 300 | ||
Committed revolving credit facility (RCF) [member] | Guarantee Ekurhuleni Local Municipality [member] | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Undrawn Borrowing Facilities | R 125 | |||
Uncommitted revolving credit facility (RCF) [member] | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Undrawn Borrowing Facilities | R 200 | |||
Uncommitted revolving credit facility (RCF) [member] | Bottom of Range [member] | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Increase (decrease) to interest rate margin | 2.75% | |||
Uncommitted revolving credit facility (RCF) [member] | Top of range [member] | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Increase (decrease) to interest rate margin | 3.25% |
EQUITY - Stated share capital (
EQUITY - Stated share capital (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Issued share capital: | |||
Total share capital | R 6,157.9 | R 5,072.8 | R 4,177.7 |
SA cents per share, prior year final dividend | R 0.2 | R 0.05 | |
Final dividend | R 137.5 | 0 | R 21.1 |
Total dividends | R 565.1 | 0 | R 42.2 |
First [member] | |||
Issued share capital: | |||
Interim dividend SA cents per share | R 0.25 | R 0.05 | |
Interim dividend | R 213.8 | 0 | R 21.1 |
Second [member] | |||
Issued share capital: | |||
Interim dividend SA cents per share | R 0.25 | ||
Interim dividend | R 213.8 | R 0 | R 0 |
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Authorised share capital, number of shares | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 |
Value per share | R 0 | R 0 | R 0 |
Issued share capital: | |||
Number of issued share capital | 864,588,711 | 696,429,767 | 431,429,767 |
Total share capital | R 6,208.4 | R 5,123.3 | R 4,227.9 |
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 0.5 | R 0.5 | R 0.5 |
Issued share capital: | |||
Number of issued share capital | 5,000,000 | 5,000,000 | 5,000,000 |
Total share capital | R 0.5 | R 0.5 | R 0.5 |
Treasury shares [member] | |||
Issued share capital: | |||
Number of issued share capital | 9,474,920 | 9,474,920 | 9,361,071 |
Treasury Shares | R (51) | R (51) | R (50.7) |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) R / shares in Units, R in Millions | Sep. 01, 2020ZAR (R)R / shares | Jan. 22, 2020ZAR (R)sharesR / shares | Jun. 30, 2020ZAR (R)R / sharesshares | Jun. 30, 2019ZAR (R)R / sharesshares | Jun. 30, 2018ZAR (R)shares |
Disclosure of classes of share capital [line items] | |||||
Shares issued | shares | 265,000,000 | ||||
Major ordinary share transactions [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Dividend per share approved by directors | R / shares | R 0.35 | R 0.35 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | R | R 299.3 | R 299.3 | |||
Sibanye stillwater [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of share options exercised | shares | 168,158,944 | ||||
Aggregate subscription price | R | R 1,085.6 | ||||
Percentage of discount of shares before date of exercise of option | 10.00% | ||||
Weighted average share price | R / shares | R 6.46 | ||||
Percentage of shares issued to related parties | 38.05% | ||||
Percentage of new ordinary shares of the total issued ordinary shares | 50.10% | ||||
Treasury shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends received | R | R 6.6 | R 0.9 | |||
Treasury shares [member] | Ergo Mining Operations Proprietary Limited [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Treasury shares acquired | shares | 0 | 113,849 | |||
Weighted average share price | R / shares | R 2.68 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financial performance | |||
External revenue | R 4,185 | R 2,762.1 | R 2,490.4 |
Cash operating costs | (2,626) | (2,422.9) | (2,159.7) |
Movement in gold in process and finished inventories - Gold Bullion | 3.1 | 32.6 | 24.5 |
Operating profit | 1,562.1 | 371.8 | 355.2 |
Retrenchment costs | 0 | (6.3) | 0 |
Administration expenses and other costs | (309.9) | (90.9) | (90.7) |
Interest income | 67.4 | 16.9 | 21.8 |
Interest expense | (9.7) | (5.6) | (4.1) |
Current tax | (263.2) | 1.6 | (6.4) |
Working profit/(loss) before additions to property, plant and equipment | 1,046.7 | 287.5 | 276.4 |
Additions to property, plant and equipment | (182.7) | (353.7) | (126.1) |
Total working profit/(loss) after additions to property, plant and equipment | 864 | (66.2) | 150.3 |
Profit for the year | 635 | 78.5 | 6.5 |
Deferred tax | 80.7 | 28.2 | (19.5) |
Net other operating (costs)/income | 41.8 | 29.9 | 20.6 |
Ongoing rehabilitation expenditure | 24.3 | 18.3 | (26.7) |
Discount recognised on Payments made under protest including subsequent unwinding | 3.2 | 3.5 | 8.1 |
Unwinding of provision for environmental rehabilitation | 52 | 66.3 | 45.6 |
Loss on disposal of property, plant and equipment | 0 | 0 | 0.6 |
Growth in environmental rehabilitation trust funds and reimbursive right | (38.5) | (38.4) | (16.3) |
Other income | (0.7) | (7.9) | 0 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (21.9) | (60) | (2.9) |
Depreciation | 270.8 | 169.1 | 168 |
Working profit/(loss) before additions to property, plant and equipment | 1,046.7 | 287.5 | 276.4 |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 1,128.9 | 288.3 | 233.8 |
Cash flows from (used in) investing activities | (202.5) | (303) | (140.4) |
Cash flows from (used in) financing activities | 509.2 | (7.9) | (45) |
Ergo [member] | |||
Financial performance | |||
External revenue | 3,064.3 | 2,577.5 | 2,490.4 |
Cash operating costs | (2,274) | (2,311.1) | (2,159.7) |
Movement in gold in process and finished inventories - Gold Bullion | 1.8 | 16.4 | 24.5 |
Operating profit | 792.1 | 282.8 | 355.2 |
Retrenchment costs | 0 | (1.6) | |
Administration expenses and other costs | (131.6) | (12) | (11.5) |
Interest income | 13.9 | 6.5 | 9.5 |
Interest expense | (5.2) | (2.4) | (3.1) |
Current tax | (145.8) | 1.6 | (2.9) |
Working profit/(loss) before additions to property, plant and equipment | 523.4 | 274.9 | 347.2 |
Additions to property, plant and equipment | (114.4) | (22.8) | (125.2) |
Total working profit/(loss) after additions to property, plant and equipment | 409 | 252.1 | 222 |
Profit for the year | 297.1 | 82.3 | 53.3 |
Deferred tax | 6.6 | 16.2 | (23.2) |
Net other operating (costs)/income | 51.5 | 40.2 | 36.2 |
Ongoing rehabilitation expenditure | 22.3 | 16.6 | (26.7) |
Discount recognised on Payments made under protest including subsequent unwinding | 3.2 | 3.5 | 8.1 |
Unwinding of provision for environmental rehabilitation | 36.5 | 45.4 | 44.3 |
Loss on disposal of property, plant and equipment | 0.6 | ||
Growth in environmental rehabilitation trust funds and reimbursive right | (11.2) | (11.3) | (10.1) |
Other income | (0.7) | (2.2) | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (19.1) | (58.6) | (2.5) |
Depreciation | 150.4 | 142.8 | 167.4 |
Working profit/(loss) before additions to property, plant and equipment | 523.4 | 274.9 | 347.2 |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 546.1 | 221.7 | 285.3 |
Cash flows from (used in) investing activities | (135.7) | (39.4) | (140.2) |
Cash flows from (used in) financing activities | (405.5) | (291.7) | (2.8) |
FWGR [member] | |||
Financial performance | |||
External revenue | 1,120.7 | 184.6 | |
Cash operating costs | (352) | (111.8) | |
Movement in gold in process and finished inventories - Gold Bullion | 1.3 | 16.2 | |
Operating profit | 770 | 89 | |
Retrenchment costs | 0 | (4.7) | |
Administration expenses and other costs | (20.7) | (2.3) | |
Interest income | 2.9 | 0 | |
Interest expense | 0 | 0 | |
Current tax | (117.4) | 0 | |
Working profit/(loss) before additions to property, plant and equipment | 634.8 | 82 | |
Additions to property, plant and equipment | (68) | (330.7) | |
Total working profit/(loss) after additions to property, plant and equipment | 566.8 | (248.7) | |
Profit for the year | 424.9 | 28.7 | |
Deferred tax | (86.5) | 13.4 | |
Net other operating (costs)/income | 14.8 | 15.4 | |
Ongoing rehabilitation expenditure | 2 | 1.7 | |
Discount recognised on Payments made under protest including subsequent unwinding | 0 | 0 | |
Unwinding of provision for environmental rehabilitation | 14.3 | 19.6 | |
Growth in environmental rehabilitation trust funds and reimbursive right | (25.2) | (22.5) | |
Other income | 0 | 0 | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (2.1) | 0 | |
Depreciation | 119.6 | 25.7 | |
Working profit/(loss) before additions to property, plant and equipment | 634.8 | 82 | |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 563.1 | 89.3 | |
Cash flows from (used in) investing activities | (60.1) | (324.4) | |
Cash flows from (used in) financing activities | (500.8) | 236.7 | |
Other reconciling items [member] | |||
Financial performance | |||
External revenue | 0 | 0 | 0 |
Cash operating costs | 0 | 0 | 0 |
Movement in gold in process and finished inventories - Gold Bullion | 0 | 0 | 0 |
Operating profit | 0 | 0 | 0 |
Retrenchment costs | 0 | 0 | 0 |
Administration expenses and other costs | (157.6) | (76.6) | (78.6) |
Interest income | 50.6 | 10.4 | 12.3 |
Interest expense | (4.5) | (3.2) | (1) |
Current tax | 0 | 0 | (3.5) |
Working profit/(loss) before additions to property, plant and equipment | (111.5) | (69.4) | (70.8) |
Additions to property, plant and equipment | (0.3) | (0.2) | (0.9) |
Total working profit/(loss) after additions to property, plant and equipment | (111.8) | (69.6) | (71.7) |
Profit for the year | (87) | (32.5) | (46.8) |
Deferred tax | (0.8) | (1.4) | 3.7 |
Net other operating (costs)/income | (24.5) | (25.7) | (15.6) |
Ongoing rehabilitation expenditure | 0 | 0 | 0 |
Discount recognised on Payments made under protest including subsequent unwinding | 0 | 0 | 0 |
Unwinding of provision for environmental rehabilitation | 1.2 | 1.3 | 1.3 |
Loss on disposal of property, plant and equipment | 0 | ||
Growth in environmental rehabilitation trust funds and reimbursive right | (2.1) | (4.6) | (6.2) |
Other income | 0 | (5.7) | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (0.7) | (1.4) | (0.4) |
Depreciation | 0.8 | 0.6 | 0.6 |
Working profit/(loss) before additions to property, plant and equipment | (111.5) | (69.4) | (70.8) |
Statement of cash flows [abstract] | |||
Cash flows from (used in) operating activities | 19.7 | (22.7) | (51.5) |
Cash flows from (used in) investing activities | (6.7) | 60.8 | (0.2) |
Cash flows from (used in) financing activities | R 1,415.5 | R 47.1 | R (42.2) |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation of adjusted EBITDA (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of adjusted EBITDA | |||
Profit for the year | R 635 | R 78.5 | R 6.5 |
Income tax | 343.9 | 26.6 | 25.9 |
Profit/(loss) before tax | 978.9 | 105.1 | 32.4 |
Finance expense | 68.8 | 78.4 | 58.4 |
Finance income | (109.8) | (58.3) | (38.8) |
Results from operating activities | 937.9 | 125.2 | 52 |
Depreciation | 270.8 | 169.1 | 168 |
Share-based payment expense | 224.1 | 21.4 | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (21.9) | (60) | (2.9) |
Gain on financial instruments | 0 | (2.1) | 0 |
(Gain)/loss on disposal of property, plant and equipment | (0.7) | (5.8) | 0.6 |
Transaction costs | 1.4 | ||
Retrenchment costs | 0 | 6.3 | 0 |
Adjusted EBITDA | 1,411.6 | 254.1 | |
FWGR [member] | |||
Reconciliation of adjusted EBITDA | |||
Profit for the year | 424.9 | 28.7 | |
Depreciation | 119.6 | 25.7 | |
Change in estimate of environmental rehabilitation recognised in profit or loss | (2.1) | 0 | |
Retrenchment costs | 0 | 4.7 | |
Other reconciling items [member] | |||
Reconciliation of adjusted EBITDA | |||
Profit for the year | (87) | (32.5) | (46.8) |
Depreciation | 0.8 | 0.6 | 0.6 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (0.7) | (1.4) | (0.4) |
Retrenchment costs | R 0 | R 0 | R 0 |
PAYMENTS MADE UNDER PROTEST (De
PAYMENTS MADE UNDER PROTEST (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other assets details [abstract] | |||
Balance at the beginning of the year | R 27.6 | R 19.4 | |
Payments made under protest | 10.6 | 11.7 | |
Discount on initial payment made under protest | (7.1) | (6.5) | R (8.8) |
Unwinding | 3.9 | 3 | 0.7 |
Balance at the end of the year | R 35 | R 27.6 | R 19.4 |
PAYMENTS MADE UNDER PROTEST - N
PAYMENTS MADE UNDER PROTEST - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Payments made under protest [abstract] | ||
Municipality interest rate on borrowings | 11.68% | 11.68% |
Discount period | Jun. 30, 2022 | Jun. 30, 2021 |
Ekurhuleni Metropolitan Municipality Electricity Tariff Dispute [Member] | ||
Disclosure of contingencies [line items] | ||
Surcharges | R 43 | |
Summon, first [member] | ||
Disclosure of contingencies [line items] | ||
Summonses | 74 | |
Summon, second [Member] | ||
Disclosure of contingencies [line items] | ||
Summonses | R 31.6 |
OTHER INVESTMENTS- Investments
OTHER INVESTMENTS- Investments in other entities (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 195.3 | R 3.5 | |
Dividends received on equity instruments at fair value through OCI (RMA) | (4.3) | 0 | R 0 |
Fair value adjustment on equity instruments at fair value through OCI | 191.8 | (5.9) | R 0 |
Listed investments (Fair value hierarchy Level 1) [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | 12 | 3.3 | |
Unlisted investments (Fair value hierarchy Level 3 [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | 183.3 | 0.2 | |
West Wits Mining Limited ("WWM") [member][Member] | Listed investments (Fair value hierarchy Level 1) [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 12 | 3.3 | |
Shares held in other entities | 47,812,500 | ||
Percentage of interest held | 5.10% | ||
Percentage of entitlement to reimbursive right | 5.10% | ||
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | Unlisted investments (Fair value hierarchy Level 3 [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 178.4 | 0 | |
Shares held in other entities | 44,438 | ||
Percentage of interest held | 11.30% | ||
Rand Mutual Assurance Company Limited [member] | Unlisted investments (Fair value hierarchy Level 3 [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 4.7 | 0 | |
Shares held in other entities | 12,659 | ||
Percentage of interest held | 1.27% | ||
Guardrisk Insurance Company Limited (Cell Captive A170) [member] | Unlisted investments (Fair value hierarchy Level 3 [member] | Class A Shares [Member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [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] | Unlisted investments (Fair value hierarchy Level 3 [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 0.1 | R 0.1 | |
Shares held in other entities | 42,292 | ||
Percentage of interest held | 4.50% |
OTHER INVESTMENTS - Key observa
OTHER INVESTMENTS - Key observable/unobservable inputs (Details) | 12 Months Ended |
Jun. 30, 2020yrR / kg | |
Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Average gold price | 852,098 |
Average silver price | 9,453 |
Average South African CPI | 0.048 |
Terminal growth rate [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Significant unobservable input, entity's own equity instruments | 0.05 |
Weighted average cost of capital [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Significant unobservable input, entity's own equity instruments | 0.151 |
Discount period [member] | Investment in Prestige Bullion [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Significant unobservable input, entity's own equity instruments | yr | 13 |
Cost of equity [member] | Investment in Prestige Bullion [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Significant unobservable input, entity's own equity instruments | 0.132 |
OTHER INVESTMENTS - Sensitivity
OTHER INVESTMENTS - Sensitivity analysis (Details) | Jun. 30, 2020 |
Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Rand US Dollar exchange rate, increase | 1.00% |
Rand US Dollar exchange rate, decrease | (1.00%) |
Commodity prices (gold and silver), increase | 1.00% |
Commodity prices (gold and silver), decrease | 1.00% |
Rand US Dollar exchange rate in OCI net of tax, increase | 2.10% |
Rand US Dollar exchange rate in OCI net of tax, decrease | (2.20%) |
Commodity prices (gold and silver) increase, OCI net of tax | 1.70% |
Commodity prices (gold and silver) decrease , OCI net of tax | 1.80% |
Volumes [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | 2.00% |
% Change OCI, net of tax, decrease | (2.00%) |
Weighted average cost of capital [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | (1.70%) |
% Change OCI, net of tax, decrease | 2.00% |
Minority discount [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | (1.20%) |
% Change OCI, net of tax, decrease | 1.20% |
Marketability discount [member] | Rand Refinery Operation [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | (1.20%) |
% Change OCI, net of tax, decrease | 1.20% |
Cost of equity [member] | Investment in Prestige Bullion [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | (1.30%) |
% Change OCI, net of tax, decrease | 1.40% |
Prestige Bullion dividend forecast [member] | Investment in Prestige Bullion [member] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1.00% |
Decrease in unobservable input, | (1.00%) |
% Change OCI, net of tax, increase | 0.40% |
% Change OCI, net of tax, decrease | (0.40%) |
OTHER INVESTMENTS - Narratives
OTHER INVESTMENTS - Narratives (Details) R in Millions | 12 Months Ended |
Jun. 30, 2020ZAR (R) | |
Disclosure of financial assets [line items] | |
Marketability unobservable inputs rate | 16.50% |
Minority discounts unobservable input rate | 17.00% |
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | |
Disclosure of financial assets [line items] | |
Proportion of ownership interest in associate | 11.30% |
Investments in equity instruments designated at fair value through other comprehensive income | R 178.4 |
CONTINGENCIES - Narratives (De
CONTINGENCIES - Narratives (Details) l in Millions, R in Millions | 12 Months Ended |
Jun. 30, 2020ZAR (R)l | |
Occupational Lung Diseases [Member] | |
Disclosure of contingencies [line items] | |
Description of nature of obligation, contingent liabilities | On May 3, 2018, former mineworkers and dependents of deceased mineworkers (“Applicants”) and Anglo American South Africa Limited, AngloGold Ashanti Limited, Sibanye Gold Limited trading as Sibanye-Stillwater, Harmony Gold Mining Company Limited, Gold Fields Limited, African Rainbow Minerals Limited and certain of their affiliates (“Settling Companies”) settled the class certification application in which the Applicants in each sought to certify class actions against gold mining houses cited therein on behalf of mineworkers who had worked for any of the particular respondents and who suffer from any occupational lung disease, including silicosis or tuberculosis. The DRDGOLD Respondents, comprising DRDGOLD Limited and East Rand Proprietary Mines Limited, are not a party to the settlement between the Applicants and Settling Companies. The settlement agreement is not binding on the DRDGOLD Respondents. The dispute, insofar as the class certification application and appeal thereof is concerned, still stands and has not terminated in light of the settlement agreement. DRDGOLD 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 is 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. |
Environmental contamination [member] | |
Disclosure of contingencies [line items] | |
Description of nature of obligation, contingent liabilities | 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 has 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 construct 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 setoff against any future directives to make any contribution toward costs or capital of up to R250 million. Through this agreement, Ergo also secured the right to purchase up to 30 Ml of partially treated AMD from TCTA at cost, to reduce Ergo’s reliance on potable water for 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 become necessary, it is an encouraging development. 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. |
Estimated financial effect of contingent liabilities | R 250 |
Agreement to purchase Mega litres of partially treated AMD | l | 30 |
Ekurhuleni Metropolitan Municipality Electricity Tariff Dispute [Member] | |
Disclosure of contingencies [line items] | |
Surcharges | R 43 |
Summon, first [member] | |
Disclosure of contingencies [line items] | |
Estimated financial effect of contingent liabilities | 74 |
Summon, second [Member] | |
Disclosure of contingencies [line items] | |
Estimated financial effect of contingent liabilities | R 31.6 |
SUBSEQUENT EVENTS - Narratives
SUBSEQUENT EVENTS - Narratives (Details) - Major ordinary share transactions [member] - ZAR (R) R / shares in Units, R in Millions | Sep. 01, 2020 | Jun. 30, 2020 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Dividend per share approved by directors | R 0.35 | R 0.35 |
Amount of dividends approved by directors | R 299.3 | R 299.3 |