COVER PAGE
COVER PAGE | 12 Months Ended |
Jun. 30, 2023 shares | |
Entity Contact Personnel [Line Items] | |
Document Type | 20-F/A |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --06-30 |
Document Period End Date | Jun. 30, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-28800 |
Entity Registrant Name | DRDGOLD LIMITED |
Entity Address, Address Line One | Constantia Office Park Cnr 14th Avenue and Hendrik Potgieter Road Cycad House, Building 17, Ground Floor |
Entity Address, City or Town | Weltevreden Park |
Entity Address, Postal Zip Code | 1709 |
Entity Address, Country | ZA |
Entity Common Stock, Shares Outstanding | 864,588,711 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001023512 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Incorporation, State or Country Code | T3 |
Amendment Flag | true |
American Depositary Shares | |
Entity Contact Personnel [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing ten ordinary shares |
Trading Symbol | DRD |
Security Exchange Name | NYSE |
Ordinary shares | |
Entity Contact Personnel [Line Items] | |
Title of 12(b) Security | Ordinary shares |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Business contact | |
Entity Contact Personnel [Line Items] | |
Entity Address, Address Line One | Constantia Office Park Cnr 14th Avenue and Hendrik Potgieter Road Cycad House, Building 17, Ground Floor |
Entity Address, City or Town | Weltevreden Park |
Entity Address, Postal Zip Code | 1709 |
Entity Address, Country | ZA |
Contact Personnel Name | Riaan Davel |
Country Region | +27 |
City Area Code | 11 |
Local Phone Number | 470 2600 |
Contact Personnel Email Address | riaan.davel@drdgold.com |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Auditor Information [Abstract] | ||
Auditor Firm ID | 1368 | 1025 |
Auditor Name | BDO South Africa Inc. | KPMG Inc. |
Auditor Location | Johannesburg, Republic of South Africa | Johannesburg, Republic of South Africa |
CONSOLIDATED STATEMENT OF PROFI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit (loss) [abstract] | |||
Revenue | R 5,496.3 | R 5,118.5 | R 5,269 |
Cost of sales | (3,911) | (3,741.5) | (3,388.2) |
Gross Profit from operating activities | 1,585.3 | 1,377 | 1,880.8 |
Other income | 10.4 | 91.3 | 0.1 |
Administration expenses and other costs | (172.9) | (161.2) | (64) |
Results from operating activities | 1,422.8 | 1,307.1 | 1,816.9 |
Finance income | 334.3 | 225.8 | 216.2 |
Finance expense | (70.7) | (74.8) | (69.5) |
Profit before tax | 1,686.4 | 1,458.1 | 1,963.6 |
Income tax | (405) | (334.3) | (523.7) |
Profit for the year | 1,281.4 | 1,123.8 | 1,439.9 |
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 | 17.9 | (9.1) | (34.4) |
Fair value adjustment on equity investments at fair value through other comprehensive income | 17.2 | (15.7) | (28.2) |
Deferred tax thereon | 0.7 | 6.6 | (6.2) |
Other comprehensive income | 17.9 | (9.1) | (34.4) |
Total comprehensive income for the year | R 1,299.3 | R 1,114.7 | R 1,405.5 |
Earnings per share | |||
Basic earnings per share (in SA cents per share) | R 1.491 | R 1.312 | R 1.684 |
Diluted earnings per share (in SA cents per share) | R 1.482 | R 1.306 | R 1.672 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
ASSETS | ||
Non-current assets | R 4,940.3 | R 4,001.2 |
Property plant and equipment | 3,909.5 | 3,084.1 |
Investments in rehabilitation and other funds | 789.7 | 710.8 |
Payments made under protest | 39.7 | 40.4 |
Other investments | 168.6 | 151.4 |
Deferred tax asset | 32.8 | 14.5 |
Current Assets | 3,214.2 | 3,077 |
Inventories | 413.6 | 389.3 |
Current tax receivable | 40.6 | 12.6 |
Trade and other receivables | 288.6 | 149.5 |
Cash and cash equivalents at the beginning of the year | 2,471.4 | 2,525.6 |
TOTAL ASSETS | 8,154.5 | 7,078.2 |
EQUITY AND LIABILITIES | ||
Equity | 6,274.1 | 5,439.9 |
Ordinary share capital | 6,187.9 | 6,173.3 |
Retained earnings/(Accumulated loss) | 86.2 | (733.4) |
Non-current liabilities | 1,161.7 | 1,012.8 |
Provision for environmental rehabilitation | 562.1 | 517.7 |
Deferred tax liability | 560.7 | 451.9 |
Post retirement employee benefits | 10.5 | 10.4 |
Lease liabilities | 28.4 | 32.8 |
Current liabilities | 718.7 | 625.5 |
Trade and other payables | 700.5 | 598.4 |
Current portion of lease liabilities | 11.3 | 19.5 |
Current tax liability | 6.9 | 7.6 |
Total Liabilities | 1,880.4 | 1,638.3 |
TOTAL EQUITY AND LIABILITIES | R 8,154.5 | R 7,078.2 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ZAR (R) R in Millions | Total | Share capital | Retained earnings |
Begining balance at Jun. 30, 2020 | R 4,040.2 | R 6,157.9 | R (2,117.7) |
Total comprehensive income | |||
Profit for the year | 1,439.9 | 1,439.9 | |
Other comprehensive income | (34.4) | (34.4) | |
Total comprehensive income for the year | 1,405.5 | 1,405.5 | |
Contributions and distributions | |||
Dividend on ordinary shares | (641.3) | (641.3) | |
Equity settled share-based payment | 16 | 16 | |
Total contributions and distributions | (625.3) | 0 | (625.3) |
Ending balance at Jun. 30, 2021 | 4,820.4 | 6,157.9 | (1,337.5) |
Total comprehensive income | |||
Profit for the year | 1,123.8 | 1,123.8 | |
Other comprehensive income | (9.1) | (9.1) | |
Total comprehensive income for the year | 1,114.7 | 1,114.7 | |
Contributions and distributions | |||
Dividend on ordinary shares | (513.6) | (513.6) | |
Treasury shares disposed of for the vesting of the equity-settled share-based payment | 0 | 15.4 | (15.4) |
Equity settled share-based payment | 18.4 | 18.4 | |
Total contributions and distributions | (495.2) | 15.4 | (510.6) |
Ending balance at Jun. 30, 2022 | 5,439.9 | 6,173.3 | (733.4) |
Total comprehensive income | |||
Profit for the year | 1,281.4 | 1,281.4 | |
Other comprehensive income | 17.9 | 17.9 | |
Total comprehensive income for the year | 1,299.3 | 1,299.3 | |
Contributions and distributions | |||
Dividend on ordinary shares | (515.3) | (515.3) | |
Treasury shares disposed of for the vesting of the equity-settled share-based payment | 0 | 14.6 | (14.6) |
Equity settled share-based payment | 22 | 22 | |
Equity-settled share based payment income tax impact on equity | 27.7 | 27.7 | |
Equity-settled share based payment vesting impact on equity | 0.5 | 0.5 | |
Total contributions and distributions | (465.1) | 14.6 | (479.7) |
Ending balance at Jun. 30, 2023 | R 6,274.1 | R 6,187.9 | R 86.2 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash generated from operations | R 1,708.7 | R 1,585.6 | R 1,851 |
Finance income received | 188.6 | 111.1 | 105.9 |
Dividends received | 78.3 | 71.5 | 76.1 |
Finance expense paid | (5.2) | (7.7) | (7.5) |
Income tax paid | (314.8) | (262.7) | (452.1) |
Net cash inflow from operating activities | 1,655.6 | 1,497.8 | 1,573.4 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (1,145.2) | (584.1) | (395.7) |
Proceeds on disposal of property, plant and equipment | 0.9 | 12.2 | 0.1 |
Environmental rehabilitation payments to reduce decommissioning liabilities | (13.8) | (25.4) | (51) |
Investment in other funds | (28.4) | (28.9) | 0 |
Net cash outflow from investing activities | (1,186.5) | (626.2) | (446.6) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid on ordinary share capital | (515.3) | (513.3) | (640.9) |
Initial fees incurred on facility | 0 | 0 | (1) |
Repayment of lease liabilities | (16.9) | (19.7) | (11.6) |
Net cash outflow from financing activities | (532.2) | (533) | (653.5) |
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS | (63.1) | 338.6 | 473.3 |
Impact of fluctuations in exchange rate on cash held in foreign currencies | 8.9 | 7 | (8.4) |
Cash and cash equivalents at the beginning of the year | 2,525.6 | 2,180 | 1,715.1 |
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | R 2,471.4 | R 2,525.6 | R 2,180 |
ABOUT THESE CONSOLIDATED FINANC
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
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 (“ DRDGOLD ” or the “ Company ”) and its subsidiaries who are all wholly owned subsidiaries and solely operate in South Africa (collectively 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 Company is Constantia Office Park, Cnr 14th Avenue and Hendrik Potgieter Road, Cycad House, Building 17, Ground Floor, Weltevreden Park, 1709. DRDGOLD is 50.1% held by Sibanye Gold Proprietary 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 issued by the International Accounting Standards Board (“ IASB ”), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council (“ FRSC ”) as well as the requirements of the Companies Act of South Africa. The consolidated financial statements were approved by the board of directors of the Company (“ Board ”) for issuance on October 30, 2023. The consolidated financial statements have been prepared on a going concern basis. Functional and presentation currency The functional and presentation currency of DRDGOLD and its subsidiaries is South African Rand (“ Rand ”). The amounts in these consolidated financial statements are rounded to the nearest million unless stated otherwise. Significant exchange rates during the year are set out in the table below: Rand / US dollar 2023 2022 2021 Spot rate at year end 18.83 16.27 14.27 Average prevailing rate for the financial year 17.76 15.21 15.40 Basis of measurement The consolidated financial statements are prepared on the historical cost basis, unless otherwise stated. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. Transactions eliminated on consolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. |
USE OF ACCOUNTING ASSUMPTIONS,
USE OF ACCOUNTING ASSUMPTIONS, ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Use Of Accounting Assumptions, Estimates And Judgements [Abstract] | |
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 estimates. Information about assumptions and estimates in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 9 PROPERTY, PLANT AND EQUIPMENT NOTE 11 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 18 INCOME TAX NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS Information about significant judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS NOTE 26 CONTINGENCIES SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Mineral resources and mineral reserves estimates The Group is required to determine and report mineral resources and mineral reserves 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 resources and mineral reserves, 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 resources and mineral reserves 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 resources and mineral reserves change from period to period and because additional geological data is generated during the course of operations, estimates of mineral resources and mineral reserves may change from period to period. Mineral resources and mineral reserves estimates prepared by management are reviewed by independent mineral resources and mineral reserves experts. Changes in reported mineral resources and mineral reserves 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 resources and mineral reserves affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of 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 resources and mineral reserves. These factors could include: • changes in mineral resources and mineral reserves; • the grade of mineral resources and mineral reserves may vary from time to time; • differences between actual commodity prices 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 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. The 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 whether: • 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 inception 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 is 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 plan requirements and environmental rehabilitation obligations associated with the property post reclamation. 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 as well as the life-of-mine plan (as discussed in note 9 to the consolidated financial statements) which influences the estimated timing of the rehabilitation cash outflows and the planned method of rehabilitation which in turn is influenced by developments in trends and technology. An average discount rate ranging between 10.8% and 11.1% (2022: between 10.2% and 10.3%), average inflation rate of 5.7% (2022: 5.5%) and the discount periods as per the expected life-of-mine were used in the calculation of the estimated net present value of the rehabilitation liability. 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 operations 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 average 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 performance. A 100 basis points increase in the effective tax rate will result in an increase in the net deferred tax liability at 30 June 2023 of approximatel y R22.8 million (2022: R18.7 million; 2021: R14.2 milli on). 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 inherently uncertain and could change materially over time. Capital 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 previous year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying 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. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates, including the Group’s life-of-mine plan (as discussed in note 9 to the consolidated financial statements) that is applied to calculate the expected future profitability. 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 as well as the considerations in the outcome of the IFRS Interpretations Committee (“ IFRIC ”) agenda decision – Deposits relating to taxes other than income tax (IAS 37 Provisions, Contingent Liabilities and Contingent Assets ) (“ IFRIC Agenda Decision ”) published in January 2019. The IFRIC Agenda Decision has a similar fact pattern to that of the payments made under protest. With the consideration of the facts and circumstances surrounding the payments made under protest in applying the definition of an asset and the IFRIC Agenda Decision management considered the following: • payments were made under protest and without prejudice or admission of liability. Such payments were not made as a settlement of debt or recognition of expenditure; • the Group therefore retains a right to recover the payments from the City of Ekurhuleni Metropolitan Municipality (“ Municipality ”) if the Group is successful in the Main Application (as defined below); • if the Group is not successful in the Main Application, the payments will be used to settle the resultant liability to the Municipality; and • these 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 guidance 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 relied 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 timing 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 JUDGEMENTS The Group has one (1) director representative on the Rand Refinery board. Therefore, judgement had to be applied to ascertain whether significant influence exists, and if the investment should be accounted for as an associate under IAS 28 Investments in Associates and Joint Ventures . The director representation is not considered significant influence, as it does not constitute meaningful representation. It represents 11.11% of the entire board and is proportional to the 11% shareholding that the Group has. 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 minimises 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. SIGNIFICANT ACCOUNTING JUDGEMENTS 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. |
NEW STANDARDS, AMENDMENTS TO ST
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS | NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS New standards, amendments to standards and interpretations effective for the year ended 30 June 2023 During the financial year, the following new and revised accounting standards, amendments to standards and new interpretation were adopted by the Group: Annual Improvements to IFRS Standards 2018-2020 (Effective 1 July 2022) As part of its process to make non-urgent but necessary amendments to IFRS Standards, the International Accounting Standards Board (“ IASB ”) has issued the Annual Improvements to IFRS Standards 2018–2020 . These did not have a significant impact on the Group. Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS16) (Effective 1 July 2022) The IASB has amended IAS 16 Property, Plant and Equipment to provide guidance on the accounting for such sale proceeds and the related production costs. Under the amendments, proceeds from selling items before the related item of property, plant and equipment (“ PPE ”) is available for use should be recognised in profit or loss, together with the costs of producing those items. IAS 2 Inventories should be applied in identifying and measuring these production costs. The amendments apply retrospectively, but only to items of PPE made available for use on or after the beginning of the earliest period presented in the financial statements in which the amendments are adopted. The amendment did not have a significant impact on the Group. 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 consolidated financial statements. These new standards, amendments to standards and interpretations will be adopted at their effective dates. Definition of Accounting Estimate (Amendments to IAS 8) (Effective 1 July 2023) The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. The amendment is not expected to have a significant impact on the Group. Deferred Tax related to Assets and Liabilities Arising from a single transaction – Amendments to IAS 12 Income Taxes (Effective 1 July 2023) IAS 12 Income taxes clarifies how companies should account for deferred tax on certain transactions – e.g. leases and decommissioning provisions. The amendments narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on initial recognition of a lease and a decommissioning provision. The Group has assessed the estimated impact of adopting the standard on 1 July 2023 as follows: Decommissioning provision • The amendment will result in an increase in the gross deferred tax assets and liabilities for the Group as deferred tax will be recognised on the decommissioning asset and liability which was previously not recognised under the initial recognition exemption. These increases are not expected to be material for the Group. Lease liability • The amendment will not have a material impact on the Group as deferred tax is recognised on lease liabilities and the corresponding right of use assets. 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS continued New standards, amendments to standards and interpretations not yet effective (continued) Classification of liabilities as current or non-current (Amendments to IAS 1 Presentation of Financial Statements) (Effective 1 July 2023) To promote consistency in application and clarify the requirements on determining if a liability is current or non-current, the IASB has amended IAS 1 as follows: Right to defer settlement must have substance Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. As part of its amendments, the IASB has removed the requirement for a right to be unconditional and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period. Classification of debt may change A company classifies a liability as non-current if it has a right to defer settlement for at least twelve months after the reporting period. The IASB has now clarified that a right to defer exists only if the company complies with conditions specified in the loan agreement at the end of the reporting period, even if the lender does not test compliance until a later date. The amendment is not expected to have a significant impact on the Group. Disclosure of Accounting Policy (Amendments to IAS 1 and IFRS Practice Statement 2) (Effective 1 July 2023) The Board has recently issued amendments to IAS 1 Presentation of Financial Statements and an update to IFRS Practice Statement 2 Making Materiality Judgements to help companies provide useful accounting policy disclosures. The key amendments to IAS 1 include: • requiring companies to disclose their material accounting policies rather than their significant accounting policies; • clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and • clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements. The amendments are applied prospectively. The amendment is not expected to have a material impact on the Group's disclosures. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2023 | |
Revenue [abstract] | |
REVENUE | REVENUE ACCOUNTING POLICIES Revenue comprises the sale of gold bullion and silver bullion (produced as a by-product). Up to April 11, 2022 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 the Group transfers control over the goods to the customer. The Group recognises revenue at a point in time when Rand Refinery Proprietary Limited (“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 reliably 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. Subsequent to April 11, 2022 revenue is measured based on the consideration specified in a contract with the customer, being South African bullion banks. The consideration is based on the gold price derived on the gold market on the day a contract is entered into with the customer. The Group recognises revenue at a point in time when the Group transfers the gold bullion and silver bullion to the bullion bank and the sale price is fixed, as evidenced by deal confirmations. It is at this point that the customer obtains control of the gold bullion or silver bullion, which is the settlement date specified in the contract. At this point that the revenue can be measured reliably and the recovery of the consideration is probable. The customer is contractually obliged to make payment to the Group on the same day that the Group settles the contract and therefore no significant financing component exists. Amounts in R million 2023 2022 2021 Gold revenue 5,489.7 5,110.7 5,263.8 Silver revenue 6.6 7.8 5.2 Total revenue 5,496.3 5,118.5 5,269.0 A disaggregation of revenue by operating segment is presented in note 23 OPERATING SEGMENTS. 4 REVENUE continued MARKET RISK Commodity price sensitivity The Group's profitability and the cash flows are significantly affected by changes in the market price of gold which is sold in US Dollars. The Group did not enter into any hedging arrangements 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 2023 2022 2021 20% increase in the US Dollar gold price 1,099.3 1,023.7 1,053.8 20% decrease in the US Dollar gold price (1,099.3) (1,023.7) (1,053.8) 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 did not enter into any hedging arrangements during the year. A change of 20% 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 2023 2022 2021 20% increase in the US Dollar exchange rate 1,099.3 1,023.7 1,053.8 20% decrease in the US Dollar exchange rate (1,099.3) (1,023.7) (1,053.8) |
RESULTS FROM OPERATING ACTIVITI
RESULTS FROM OPERATING ACTIVITIES | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
RESULTS FROM OPERATING ACTIVITIES | RESULTS FROM OPERATING ACTIVITIES 5.1 COST OF SALES Amounts in R million Note 2023 2022 2021 Cost of sales (3,911.0) (3,741.5) (3,388.2) Operation costs (a) (3,711.4) (3,506.5) (3,122.5) Movement in gold in process and finished inventories - Gold Bullion 10.8 30.4 (25.6) Depreciation 9 (217.5) (267.6) (252.5) Change in estimate of environmental rehabilitation 11 7.1 2.2 12.4 (a) The most significant components of operating costs include: Consumable stores (1,199.9) (1,014.9) (880.2) Labour including short term incentives (663.4) (649.6) (598.4) Electricity (544.4) (547.3) (488.2) Specialist service providers (633.9) (610.2) (510.7) Machine hire (152.3) (139.0) (127.4) Security expenses (153.6) (133.0) (122.8) Water (61.8) (54.2) (57.1) RELATED PARTY TRANSACTIONS Far West Gold Recoveries Proprietary Limited (“ FWGR ”) entered into an agreement with Sibanye-Stillwater effective 31 July 2018 for the pumping and supply of water and electricity to the FWGR operations for which FWGR is invoiced based on metered usage of water and electricity. FWGR also entered into a smelting agreement with Sibanye-Stillwater effective 31 July 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 up to 10 April 2022, performed 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. From 11 April 2022, Rand Refinery only performs the final refinement and administration of the gold bars delivered. As a result of this, the marketing fee was no longer incurred by the Group. Rand Refinery is a related party to the Group through Sibanye-Stillwater’s shareholding in Rand Refinery. 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. 5 RESULTS FROM OPERATING ACTIVITIES continued Amounts in R million 2023 2022 2021 Services rendered by related parties and included in operating costs: Supply of water and electricity 1 79.2 79.2 68.1 Gold smelting and related charges 1 21.1 19.1 21.1 Other charges 1 0.3 0.3 0.7 Gold refining and related charges 2 7.2 6.9 6.8 107.8 105.5 96.7 1 Paid to Sibanye-Stillwater by FWGR 2 Paid to Rand Refinery by Ergo 5.2 OTHER INCOME ACCOUNTING POLICIES Other income 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 COVID-19 and other insurance payouts, gains on disposal of property, plant and equipment and gains on financial instruments at fair value through profit or loss. Amounts in R million 2023 2022 2021 Gain on disposal of property, plant and equipment 10.3 6.6 0.1 Insurance claim refund — 84.7 — Sundry income 0.1 — — 10.4 91.3 0.1 (a) Insurance claim During the FY2020, a complex insurance claim process was initiated for business interruption caused by the regulatory lockdowns pursuant to the COVID-19 pandemic. R84.7 million was included in other income in profit or loss in FY2022. R53.0 million was received before 30 June 2022 and the balance of R31.7 million was received in FY2023. — 84.7 — 5.3 ADMINISTRATION EXPENSES AND OTHER COSTS Amounts in R million Note 2023 2022 2021 Included in administration expenses and other costs are the following: Share based payment (expenses)/benefit (22.0) (18.4) 28.3 Cash settled Long-Term Incentive (" CLTI ") scheme — — 44.3 Equity settled Long-Term Incentive (" ELTI ") scheme 19.1 (22.0) (18.4) (16.0) Exploration expenses and transaction costs 1 (4.6) (15.2) (3.1) Other costs and administration expenses 2 (55.8) (52.8) (39.7) 1 FY2022 includes exploration expenses of R8.2 million paid to Sibanye-Stillwater. 2 Other costs and administration expenses are made up of short-term incentives and information technology costs. |
FINANCE INCOME
FINANCE INCOME | 12 Months Ended |
Jun. 30, 2023 | |
Finance Income [Abstract] | |
FINANCE INCOME | FINANCE INCOME ACCOUNTING POLICY Finance income includes interest received, growth in cash and cash equivalents in environmental rehabilitation trust funds, growth in investment in Guardrisk, growth in the reimbursive right for environmental rehabilitation guarantees, dividends received, the unwinding of the payments made under protest and foreign exchange gains. Amounts in R million Note 2023 2022 2021 Interest on financial assets measured at amortised cost 13 190.2 111.8 108.7 Growth in cash and cash equivalents in environmental rehabilitation trust funds 12 — 14.8 22.5 Growth in reimbursive right for environmental rehabilitation guarantees 12 — 1.8 3.7 Growth in investment in Guardrisk 12 50.5 13.1 — Dividends received 25 78.3 71.5 76.1 Unwinding of payments made under protest 24 5.7 5.8 4.8 Unrealised foreign exchange gain 9.0 7.0 — Other finance income 0.6 — 0.4 334.3 225.8 216.2 |
FINANCE EXPENSE
FINANCE EXPENSE | 12 Months Ended |
Jun. 30, 2023 | |
Finance Expense [Abstract] | |
FINANCE EXPENSE | 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, the discount recognised on payments made under protest and foreign exchange losses. Amounts in R million Note 2023 2022 2021 Interest on financial liabilities measured at amortised cost (1.4) (2.6) (2.3) Unwinding of provision for environmental rehabilitation 11 (46.2) (45.0) (44.7) Discount recognised on payments made under protest 24 (19.0) (21.1) (7.4) Interest on lease liabilities 10.2 (3.8) (4.2) (4.5) Unrealised foreign exchange loss — — (8.4) Other finance expenses (0.3) (1.9) (2.2) (70.7) (74.8) (69.5) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Amounts in R million 2023 2022 2021 The calculations of basic and diluted earnings per ordinary share are based on the following: Profit for the year 1,281.4 1,123.8 1,439.9 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Note 2023 2022 2021 Weighted average number of ordinary shares in issue adjusted for treasury shares 859,538,847 856,760,797 855,113,791 Effect of equity-settled share-based payment 5,423,357 4,203,336 5,935,215 Dilutive weighted average issued shares 864,962,204 860,964,133 861,049,006 SA cents per share 2023 2022 2021 Basic EPS 149.1 131.2 168.4 Diluted EPS 148.2 130.6 167.2 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Mineral resources and mineral reserves estimates The Group is required to determine and report mineral resources and mineral reserves 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 resources and mineral reserves, 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 resources and mineral reserves 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 resources and mineral reserves change from period to period and because additional geological data is generated during the course of operations, estimates of mineral resources and mineral reserves may change from period to period. Mineral resources and mineral reserves estimates prepared by management are reviewed by independent mineral resources and mineral reserves experts. Changes in reported mineral resources and mineral reserves 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 resources and mineral reserves affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of 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 resources and mineral reserves. These factors could include: • changes in mineral resources and mineral reserves; • the grade of mineral resources and mineral reserves may vary from time to time; • differences between actual commodity prices 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. 9 PROPERTY, PLANT AND EQUIPMENT continued ACCOUNTING POLICIES Recognition and measurement Property, plant and equipment comprise mine plant facilities and equipment, mine property and development (including mineral rights) and exploration assets. These assets (excluding exploration assets) are initially measured at cost, whereafter they are measured at cost less accumulated depreciation and accumulated impairment losses. Exploration assets are initially measured at cost, whereafter they are measured at cost less accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition 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 separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of 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, geochemical and geophysical studies associated with prospective projects and tangible assets which comprise 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 assessed for impairment and then reclassified to the appropriate class of assets. Depreciation commences when the assets are available for use. Exploration and evaluation expenses prior to acquiring rights to explore is recognised in profit or loss. 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 can 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. The current estimated useful lives are based on the life-of-mine of each site, currently between one year (2022: two years; 2021: three years) and 19 years (2022: 19 years; 2021: 13 years) for mining assets of Ergo Mining Proprietary Limited (“ Ergo ”) and between two years (2022: two years; 2021: three years) and 18 years (2022: 20 years; 2021: 18 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 events 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 which 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 produce 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 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 amount. 9 PROPERTY, PLANT AND EQUIPMENT continued Amounts in R million Note Mine plant facilities and equipment Mine property and development Exploration assets Capital work in progress Total 30 June 2023 Cost 2,901.6 2,788.6 16.2 498.0 6,204.4 Balance at the beginning of the year 2,733.9 2,419.6 14.2 — 5,167.7 Additions - property, plant and equipment owned 1 157.5 365.1 2.0 498.0 1,022.6 Additions - right-of-use assets 10.1 — 6.1 — — 6.1 Lease modifications 10.1 (0.6) — — — (0.6) Lease derecognitions 10.1 (4.2) (0.8) — — (5.0) Disposals and scrapping (6.6) (0.2) — — (6.8) Change in estimate of decommissioning asset 11 21.6 (1.2) — — 20.4 Accumulated depreciation and impairment (1,108.7) (1,176.5) (9.7) — (2,294.9) Balance at the beginning of the year (1,017.0) (1,056.9) (9.7) — (2,083.6) Depreciation 5.1 (97.9) (119.6) — — (217.5) Lease derecognitions 4.0 — — — 4.0 Disposals and scrapping 2.2 — — — 2.2 Carrying value at end of the year 1,792.9 1,612.1 6.5 498.0 3,909.5 Comprising: Property, plant and equipment owned 1,783.2 1,587.0 6.5 498.0 3,874.7 Right-of-use assets 10.1 9.7 25.1 — — 34.8 Carrying value at end of the year 1,792.9 1,612.1 6.5 498.0 3,909.5 1 This amount includes cash additions of R959.7 million 30 June 2022 Cost 2,733.9 2,419.6 14.2 — 5,167.7 Balance at the beginning of the year 2,604.3 2,154.0 110.5 — 4,868.8 Additions - property, plant and equipment owned 291.4 301.2 5.8 — 598.4 Additions - right-of-use assets 10.1 6.0 9.9 — — 15.9 Lease modifications 10.1 — 1.2 — — 1.2 Lease derecognitions 10.1 (1.6) — — — (1.6) Disposals and scrapping (185.3) (61.6) (0.9) — (247.8) Change in estimate of decommissioning asset 11 (46.3) (20.9) — — (67.2) Transfers between classes of property, plant and equipment 65.4 35.8 (101.2) — — Accumulated depreciation and impairment (1,017.0) (1,056.9) (9.7) — (2,083.6) Balance at the beginning of the year (1,074.0) (975.4) (9.7) — (2,059.1) Depreciation 5.1 (125.1) (142.5) — — (267.6) Lease derecognitions 1.6 — — — 1.6 Disposals and scrapping 180.5 61.0 — — 241.5 Carrying value at end of the year 1,716.9 1,362.7 4.5 — 3,084.1 Comprising: Property, plant and equipment owned 1,698.7 1,333.2 4.5 — 3,036.4 Right-of-use assets 10.1 18.2 29.5 — — 47.7 Carrying value at end of the year 1,716.9 1,362.7 4.5 — 3,084.1 CONTRACTUAL COMMITMENTS Contractual commitments not provided for in the consolidated financial statements at 30 June 2023 amounted to R1,730.8 million (2022: R235.9 million). Capital expenditure related to material growth projects are financed on a project-by-project basis which may include bank facilities and existing cash resources. Sustaining capital expenditure is financed from cash generated from operations and existing cash resources cash resources. |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES | 12 Months Ended |
Jun. 30, 2023 | |
Presentation of leases for lessee [abstract] | |
RIGHT OF USE ASSETS AND LEASES | RIGHT OF USE ASSETS AND LEASES 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. The 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 whether: • 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 inception 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 is 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 plan requirements and environmental rehabilitation obligations associated with the property post reclamation. ACCOUNTING POLICIES Right of use assets 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 right of use asset carrying value is allocated to the CGU it belongs to and the CGU 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 rate. 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. The lease liability is measured using the effective interest rate method. The Group re-measures the lease liability when the lease contract is modified and this does not give rise to modification accounting, when the lease term has been changed or when the lease payments have changed as a result of a change in an index or rate or a change in the assessment of a purchase option. Upon remeasurement, a corresponding adjustment is made to the carrying amount of the right of use asset or is recorded 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 statement of financial position. 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 RIGHT OF USE ASSETS AND LEASES continued 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 30 June 2023 Cost 26.4 63.7 90.1 Opening balance 31.2 58.4 89.6 Additions — 6.1 6.1 Lease modifications (0.6) — (0.6) Lease derecognitions (4.2) (0.8) (5.0) Accumulated depreciation and impairment (16.7) (38.6) (55.3) Opening balance (13.0) (28.9) (41.9) Depreciation (7.7) (9.7) (17.4) Lease derecognitions 4.0 — 4.0 Carrying value 9.7 25.1 34.8 30 June 2022 Cost 31.2 58.4 89.6 Opening balance 26.8 47.3 74.1 Additions 6.0 9.9 15.9 Lease modifications — 1.2 1.2 Lease derecognitions (1.6) — (1.6) Accumulated depreciation and impairment (13.0) (28.9) (41.9) Opening balance (6.2) (18.8) (25.0) Depreciation (8.4) (10.1) (18.5) Lease derecognitions 1.6 — 1.6 Carrying value 18.2 29.5 47.7 10.2 LEASE LIABILITIES Amounts in R million Note 2023 2022 Reconciliation of the lease liabilities balance: Balance at the beginning of the year 52.3 54.8 New leases 9 6.1 15.9 Lease modifications 9 (0.6) 1.2 Lease derecognitions 9 (1.2) — Interest charge on lease liabilities 7 3.8 4.2 Repayment of lease liabilities (16.9) (19.7) Interest repaid (3.8) (4.1) Balance at the end of the year 39.7 52.3 Current portion of lease liabilities (11.3) (19.5) Non-current portion of lease liabilities 28.4 32.8 Maturity analysis of undiscounted contractual cash flows: Less than a year 16.7 22.4 One to five years 24.8 35.1 More than five years 8.5 2.1 Total undiscounted lease liabilities at the end of the year 50.0 59.6 Lease payments not recognised as a liability but expensed during the year: Short-term leases (6.4) (2.5) Leases of low value assets (9.7) (8.6) Cash flows included in cash generated from operating activities (16.1) (11.1) |
PROVISION FOR ENVIRONMENTAL REH
PROVISION FOR ENVIRONMENTAL REHABILITATION | 12 Months Ended |
Jun. 30, 2023 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
PROVISION FOR ENVIRONMENTAL REHABILITATION | 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 as well as the life-of-mine plan (as discussed in note 9 to the consolidated financial statements) which influences the estimated timing of the rehabilitation cash outflows and the planned method of rehabilitation which in turn is influenced by developments in trends and technology. An average discount rate ranging between 10.8% and 11.1% (2022: between 10.2% and 10.3%), average inflation rate of 5.7% (2022: 5.5%) and the discount periods as per the expected life-of-mine were used in the calculation of the estimated net present value of the rehabilitation liability. ACCOUNTING POLICIES The net present value of the estimated rehabilitation cost as at reporting date is provided for in full. These estimates are reviewed 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 PPE 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 carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy dealing with impairments of property, plant and equipment. Over time, the liability is increased to reflect an interest element, and the capitalised cost is depreciated over the life of the related asset. Cash costs incurred to rehabilitate these disturbances are charged to the provision and are presented as investing activities in the statement of cash flows. The present value of environmental rehabilitation costs relating to 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 2023 2022 Opening balance 517.7 570.8 Unwinding of provision 7 46.2 45.0 Change in estimate of environmental rehabilitation recognised in profit or loss 5.1 (7.1) (2.2) Change in estimate of environmental rehabilitation recognised to decommissioning asset (a) 9 20.4 (67.2) Environmental rehabilitation payments (b) (15.1) (28.7) To reduce decommissioning liabilities (13.8) (25.4) To reduce restoration liabilities 14 (1.3) (3.3) Closing balance 562.1 517.7 Environmental rehabilitation payments to reduce the liability (15.1) (28.7) Ongoing rehabilitation expenditure 1 (26.8) (31.6) Total cash spent on environmental rehabilitation (41.9) (60.3) 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 to decommissioning asset The current year increase mainly as a result of above inflationary increases on machine hire rates. (b) Environmental rehabilitation payments 20ha of the Brakpan/Withok TSF and 5.1ha of the Driefontein 4 TSF were vegetated during the year. GROSS COST TO REHABILITATE The Group estimates that, based on current environmental and regulatory requirements, the total undiscounted rehabilitation cost is approximately R 897.8 million (2022: R815.1 million ). |
INVESTMENTS IN REHABILITATION A
INVESTMENTS IN REHABILITATION AND OTHER FUNDS | 12 Months Ended |
Jun. 30, 2023 | |
Miscellaneous non-current assets [abstract] | |
INVESTMENTS IN REHABILITATION AND OTHER FUNDS | INVESTMENTS IN REHABILITATION AND OTHER FUNDS ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trusts Cash and cash equivalents included in environmental rehabilitation trusts 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. The cash and cash equivalents in environmental rehabilitation trusts are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets. Reimbursive right for environmental rehabilitation guarantees (“old environmental rehabilitation policy”) 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 lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. The funds held in the cell captive under the old environmental rehabilitation policy are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets. Investments in Guardrisk Cell Captive Funds invested in the Guardrisk Cell Captive, held within Guardrisk Insurance Company Limited (“ GICL ”) or “ Guardrisk ” are non-derivative financial assets categorised as financial assets measured at fair value through profit and loss as the funds are invested by Guardrisk in liquid money market funds. These assets are initially measured at fair value and subsequent changes in fair value are recognised in profit or loss as they arise and included in finance income. The investments in GICL are for the sole use of environmental financial guarantees, Directors’ and Officers’ insurance and other insurance requirements. The investment in the Guardrisk Cell Captive are for the sole use as determined in the insurance policies and are therefore included in non-current assets. Investment in Guardrisk Cell Captive – Funding of environmental rehabilitation activities (refer note 11) During the previous financial year the Group made a decision to change its method of providing for environmental rehabilitation from funding in a specific rehabilitation trust to financial guarantees which is an allowed method in terms of the National Environmental Management Act. A new ring-fenced policy related to the funds was concluded. In this regard, the rehabilitation trust directly transferred a total amount of R579.5 million to the new ring-fenced policy with GICL in terms of which, GICL issued rehabilitation financial guarantees. The new ring-fenced policy replaced the old environmental rehabilitation policy which lapsed in FY2022. The funds are ring-fenced for the sole objective of future rehabilitation during and at the end of the relevant life of mine. All the required approvals for the change in method and transfer of the rehabilitation trust funds were obtained from the Department of Mineral Resources and Energy (“ DMRE ”) and a thorough consideration of tax and legal impacts were completed prior to the funds being transferred to GICL. Environmental rehabilitation payments to reduce the environmental rehabilitation obligations and ongoing rehabilitation expenditure are mostly funded by cash generated from operations. GICL has guarantees in issue amounting to R951.8 million (2022: R614.0 million) to the DMRE on behalf of DRDGOLD related to the environmental obligations. The funds for environmental rehabilitation in the cell captive serve as collateral for these guarantees. Investment in Guardrisk Cell Captive – Directors’ and Officers’ insurance During the current year premiums were paid into the Guardrisk Cell Captive for the creation of self-insurance for the Group’s Directors and Officers. Investment in Guardrisk Cell Captive – Other funds These are existing funds within the cell captive which were previously part of the old environmental rehabilitation policy held for purposes of obtaining environmental rehabilitation guarantees. The policy came to an end during the financial year, but the funds remained within the cell captive for future insurance applications . 12 INVESTMENTS IN REHABILITATION AND OTHER FUNDS continued Amounts in R million Note 2023 2022 Cash and cash equivalents in environmental rehabilitation trust funds — — Opening balance — 564.7 Transfer to Investment in Guardrisk Cell Captive — (579.5) Growth 6 — 14.8 Reimbursive right for environmental rehabilitation guarantees — — Opening balance — 87.5 Lapsing of old environmental rehabilitation policy retained in Guardrisk Cell Captive — (89.3) Growth 6 — 1.8 Investment in Guardrisk Cell Captive (a) 789.7 710.8 Opening balance 710.8 — Transfer to Guardrisk cell captive — 668.8 Contributions 28.4 28.9 Growth 6 50.5 13.1 Investments in rehabilitation and other funds 789.7 710.8 (a) Investment in Guardrisk Cell Captive The investment in the cell captive is allocated as follows: 789.7 710.8 Environmental rehabilitation 630.6 589.8 Directors’ and Officers’ insurance 61.3 29.5 Other funds 97.8 91.5 CREDIT RISK The Group is exposed to credit risk on the total carrying value of the investments held in the environmental rehabilitation trust funds and the Guardrisk Cell Captive. The Group manages its exposure to credit risk by mandating the Guardrisk Cell Captive to diversify the funds 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 2023 2022 100bp increase 7.9 7.1 100bp (decrease) (7.9) (7.1) FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of investment in Guardrisk Cell Captive approximate their carrying value due to the short-term maturities of the underlying funds invested by Guardrisk. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | 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 convertible 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 and cash equivalents are measured at amortised cost, which is equivalent to their fair value. Amounts in R million Note 2023 2022 Cash on hand 131.3 113.2 Access deposits and income funds 1 2,328.7 2,401.7 Restricted cash 2 11.4 10.7 2,471.4 2,525.6 Interest earned on cash and cash equivalents 6 190.2 111.8 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 annualised yields of between 8.80% and 9.49% 2 This consists of cash held on call as collateral for guarantees issued by the Standard Bank of South Africa Limited on behalf of the Group for environmental rehabilitation amounting to R5.2 million and various utilities amounting to R5.1 million 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. Impairment on cash and cash equivalents, if any, are measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties which are rated between AA- and AA+. MARKET RISK Interest rate risk A change of 100 basis points (bp) in the interest rates would have 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 variables remain constant. The analysis excludes income tax. Amounts in R million 2023 2022 100bp increase 25.0 23.5 100bp (decrease) (25.0) (23.5) 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. US Dollars not converted to South African rands at reporting date are as follows: Figures in USD million 2023 2022 Foreign denominated cash at 30 June 3.7 3.4 A 10% strengthening of the rand against the US Dollar at 30 June 2023 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 2023 2022 Strengthening of the Rand against the US Dollar (7.0) (5.5) Weakening of the Rand against the US Dollar 7.0 5.5 FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of cash and cash equivalents approximates their carrying value due to their short-term maturities. |
CASH GENERATED FROM OPERATIONS
CASH GENERATED FROM OPERATIONS | 12 Months Ended |
Jun. 30, 2023 | |
Cash flows from (used in) operating activities [abstract] | |
CASH GENERATED FROM OPERATIONS | CASH GENERATED FROM OPERATIONS Amounts in R million Note 2023 2022 2021 Profit for the year 1,281.4 1,123.8 1,439.9 Adjusted for: Income tax 18.1 405.0 334.3 523.7 Depreciation 9 217.5 267.6 252.5 Movement in gold in process and finished inventories - Gold Bullion 5.1 (10.8) (30.4) 25.6 Change in estimate of environmental rehabilitation recognised in profit or loss 11 (7.1) (2.2) (12.4) Environmental rehabilitation payments to reduce the restoration liabilities 11 (1.3) (3.3) (5.8) Share based payment expense 5.3 22.0 18.4 (28.3) Gain on disposal of property, plant and equipment 5.2 (10.3) (6.6) (0.1) Insurance claim received/(receivable) 5.2 31.7 (31.7) — Finance income 6 (334.3) (225.8) (216.2) Finance expense 7 70.7 74.8 69.5 Other non-cash items — 3.8 (2.5) Operating cash flows before working capital changes 1,664.5 1,522.7 2,045.9 Changes in: 44.2 62.9 (194.9) Trade and other receivables 19.9 25.7 6.9 Inventories (13.6) (18.9) (44.7) Payment made under protest 24 (12.6) (15.2) (8.1) Trade and other payables and employee benefits 50.5 71.3 (149.0) Cash generated by operations 1,708.7 1,585.6 1,851.0 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Jun. 30, 2023 | |
Trade and other receivables [abstract] | |
TRADE AND OTHER RECEIVABLES | 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 assets. 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 ownership 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 created 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 includes 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 exposed 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 cash 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 to 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 to the bullion banks. Settlement is usually received on the gold sold date. Previously trade receivables related to gold sold on the bullion market by Rand Refinery in its capacity as an agent for the Group. Settlement was usually received 2 working days from gold sold date. 15 TRADE AND OTHER RECEIVABLES continued Amounts in R million 2023 2022 Value Added Tax 56.6 75.1 Other receivables 1 33.8 57.4 Prepayments 2 199.1 19.2 Allowance for impairment (0.9) (2.2) 288.6 149.5 1 Other receivables as at 30 June 2022 includes the outstanding COVID-19 insurance claim amount of R31.7 million (refer to note 5.2) which was received in FY2023 2 Prepayments includes prepayments made towards capital projects including those of the solar project of R185.5 million 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 selling gold on a cash on delivery basis. The Group manages its exposure to credit risk on other receivables by establishing a maximum payment period of 30 days, and ensuring that counterparties are of good credit standing and transacting on a secured or cash basis where considered necessary. The majority of other receivables, excluding the COVID-19 insurance claim, comprises 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: 2023 2022 Amounts in R million Non-credit impaired Credit impaired Non-credit impaired Credit impaired Other receivables 32.9 0.9 55.2 2.2 Loss allowance — (0.9) — (2.2) Movement in the allowance for impairment in respect of trade and other receivables during the year was as follows: Amounts in R million 2023 2022 Balance at the beginning of the year (2.2) (1.2) Credit loss allowance/impairments recognised included in operating costs (2.0) (1.1) Credit loss allowance/impairments reversed included in operating costs 0.6 0.1 Credit loss allowance written off against related receivable 2.7 — Balance at the end of the year (0.9) (2.2) MARKET RISK Interest rate risk Trade and other receivables do not earn interest and are therefore not subject to interest rate risk. Foreign currency risk Gold is sold at spot rates and is denominated in US Dollars. Gold sales are therefore exposed to fluctuations in the US Dollar/South African Rand exchange rate. All foreign currency transactions entered into during the year ended 30 June 2023 were at spot rates and no foreign exchange rate hedges are entered into. From 11 April 2022, The USD to be received from bullion sales are sold on the same date as the respective bullion sale to settle in ZAR to the Group. Prior to 11 April 2022, Rand Refinery, acting as an agent for the Group, sold the USD received from bullion sales on the same date as the respective bullion sale. As a result, trade receivables are not exposed to fluctuations in the US Dollar/South African Rand exchange rate. 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 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 assets. 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 ownership 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 created 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 includes 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 exposed 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 cash 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 to 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 to the bullion banks. Settlement is usually received on the gold sold date. Previously trade receivables related to gold sold on the bullion market by Rand Refinery in its capacity as an agent for the Group. Settlement was usually received 2 working days from gold sold date. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Jun. 30, 2023 | |
Trade and other payables [abstract] | |
TRADE AND OTHER PAYABLES | TRADE AND OTHER PAYABLES ACCOUNTING POLICIES Trade and other payables, excluding Value Added Tax, 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 obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Amounts in R million Note 2023 2022 Trade payables and accruals 525.1 429.1 VAT payable 0.3 0.2 Provision for leave 56.8 55.7 Accrual for short term performance based incentives 89.8 87.5 Payroll creditors 28.5 25.9 700.5 598.4 Interest relating to trade payables and accruals included in profit or loss (1.1) (1.8) RELATED PARTY BALANCES Trade payables and accruals include the following amounts payable to related parties: Sibanye-Stillwater 16.5 25.8 Rand Refinery 0.3 — 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, 2023 | |
Classes of current inventories [abstract] | |
INVENTORIES | 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 Bullion 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 consumable stores and stockpile material 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 2023 2022 Consumable stores 232.7 197.5 Ore stockpiles 30.2 51.9 Gold in process 67.9 75.1 Finished inventories - Gold Bullion 82.8 64.8 Total inventories 413.6 389.3 Inventory carried at net realisable value includes: Gold in process — 8.5 Finished inventories - Gold Bullion — 7.9 Write down to net realisable value included in movement in gold in process and finished stock — (2.7) |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2023 | |
Major components of tax expense (income) [abstract] | |
INCOME TAX | 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 operations 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 average 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 performance. A 100 basis points increase in the effective tax rate will result in an increase in the net deferred tax liability at 30 June 2023 of approximatel y R22.8 million (2022: R18.7 million; 2021: R14.2 milli on). 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 inherently uncertain and could change materially over time. Capital 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 previous year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying 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. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates, including the Group’s life-of-mine plan (as discussed in note 9 to the consolidated financial statements) that is applied to calculate the expected future profitability. Current tax on gold mining income for the periods presented was determined based on a formula: Y = 33 - 165/X (2022 and 2021: 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 27% (2022 and 2021: 28%) for the 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. Amendment in the corporate income tax rate and mining tax rate formula and broadening the tax base On February 23, 2022 the Minister of Finance announced in his budget speech that the corporate income tax (“CIT”) rate will be lowered from 28% to 27% for companies with years of assessment commencing on or after April 1, 2022. The mining operations of the Group accounts for income tax using the gold mining tax formula as opposed to the CIT rate. The gold mining tax formula was changed to Y = 33 - 165/X for years of assessment commencing on or after April 1, 2022. It was further announced that the lowering of the CIT rate will be implemented alongside additional amendments to broaden the CIT base by limiting interest deductions and assessed losses. Section 23M which limits the deduction of interest payable to certain parties who are not subject to tax was significantly widened. A maximum of R1 million or 80% of assessed losses (whichever is greater) is permitted to be set-off against taxable income. Deferred tax is recognised using the gold mining tax formula to calculate a forecast weighted average tax rate considering the expected timing of the reversal of temporary differences. The formula is calculated as: Y = 33 – 165/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 mining income derived, expressed as a percentage. Due to the forecast weighted average tax rate being based on the expected future profitability, the tax rate can vary significantly year-on-year and can move contrary to current year financial performance. The forecast weighted average deferred tax rate of Ergo remained unchanged at 22% (2022: decreased from 25% to 22%). The forecast weighted average deferred tax rate of FWGR remained unchanged at 29% (2022: decreased from 30% to 29%). 18 INCOME TAX continued 18.1 INCOME TAX EXPENSE Amounts in R million 2023 2022 2021 Current tax (286.3) (261.6) (423.7) Mining tax (253.0) (250.2) (423.7) Non-Mining, company and capital gains tax (33.3) (11.4) — Deferred tax (118.7) (72.7) (100.0) Deferred tax charge - Mining tax (121.6) (119.9) (104.0) Deferred tax charge - Non-mining, company and capital gains tax 2.9 1.6 (19.1) Deferred tax rate adjustment — 45.6 — Recognition of previously unrecognised income losses — 0.4 7.8 Recognition of previously unrecognised capital losses — — (1.2) Recognition of previously unrecognised temporary differences — (0.4) 16.5 (405.0) (334.3) (523.7) 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 27% (2022 and 2021: 28%) (455.3) (408.3) (549.9) Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula 47.6 36.4 3.7 Deferred tax rate adjustment (a) — 45.6 — Depreciation of property, plant and equipment exempt from deferred tax on initial recognition (b) (16.3) (22.2) (21.2) Non-deductible expenses (c) (7.0) (7.3) (6.2) Exempt income and other non-taxable income (d) 21.8 19.0 22.8 (Derecognition of previously recognised)/Recognition of previously unrecognised — (0.4) 16.5 (Derecognition of previously recognised)/Recognition of previously unrecognised tax losses of a capital nature — — (1.2) Utilisation of tax losses for which deferred tax assets were previously unrecognised — 0.4 7.8 Over provided in prior periods 2.0 — — Current year losses for which no deferred tax asset was recognised 0.4 (1.4) (0.1) Other (0.1) 3.6 3.3 Tax incentives 1.9 0.3 0.8 Income tax Income tax (405.0) (334.3) (523.7) (a) Deferred tax rate adjustment Ergo’s forecast weighted average deferred tax rate remained unchanged at 22% (2022: decreased to 22% from 25%; 2021: remained unchanged at 25%). FWGR’s forecast weighted average deferred tax rate remained unchanged at 29% (2022: decreased to 29% from 30%; 2021: remained unchanged at 30%). (b) Depreciation of property, plant and equipment exempt from deferred tax on initial recognition Deprecia tion of R54.9 million (2022: R72.1 million; 2021: R68.7 million) on the fair value of FWGR’s property, plant and equipment that was exempt from deferred tax on initial recognition in terms of IAS 12 Income Taxes . (c) Non-deductible expenditure The most significant non-deductible expenditure incurred by the Group during the year includes: • R19.0 million discount recognised on payments made under protest (2022: R21.1 million; 2021: R7.4 million); • R14.5 million expenditure not incurred in generation of taxable income or capital in nature (2022: R17.8 million; 2021: R17.0 million); and • Rnil 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 (2022: R5.8 million; 2021: Rnil million). (d) Exempt income and other non-taxable income The most significant exempt income earned by the Group during the year includes: ◦ R78.3 million dividends received (2022: R71.5 million; 2021: R76.1 million); ◦ R5.7 million unwinding recognised on payments made under protest (2022: R5.8 million: 2021: R4.8 million); and ◦ R2.5 million net operating income related to Ergo Business Development Academy Not for Profit Company that is not taxable as it is exempt from income tax (2022: Rnil million; 2021: R1.0 million) 18 INCOME TAX continued 18.2 DEFERRED TAX Amounts in R million 2023 2022 Included in the statement of financial position as follows: Deferred tax assets 32.8 14.5 Deferred tax liabilities (560.7) (451.9) Net deferred tax liabilities (527.9) (437.4) Reconciliation of the deferred tax balance: Balance at the beginning of the year (437.4) (371.3) Recognised in profit or loss (118.7) (72.7) Recognised in other comprehensive income 0.7 6.6 Recognised in equity 27.5 — Balance at the end of the year (527.9) (437.4) 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 2023 2022 Deferred tax liabilities Property, plant and equipment (excluding unredeemed capital allowances) (659.7) (537.6) Environmental rehabilitation obligation and other funds (76.3) (63.3) Other investments (0.6) (0.9) Gross deferred tax liabilities (736.6) (601.8) Deferred tax assets Environmental rehabilitation obligation 113.9 105.6 Other provisions 1 81.0 49.3 Other temporary differences 2 9.0 4.6 Estimated tax losses 4.8 4.1 Estimated unredeemed capital allowances — 0.8 Gross deferred tax assets 208.7 164.4 Net deferred tax liabilities (527.9) (437.4) 1 Includes the temporary differences on the equity settled share-based payment 2 Includes the temporary differences on the lease liability Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2023 2022 Estimated tax losses 17.2 18.1 Estimated tax losses - Capital nature 313.6 313.6 Unredeemed capital expenditure 252.0 252.0 Deferred tax assets for tax losses, unredeemed capital expenditure and capital losses have not been recognised where future taxable profits against which these can be utilised are not anticipated. These do not have an expiry date. A maximum of R1 million or 80% of assessed losses (whichever is greater) is permitted to be set-off per year against taxable income from fiscal year 2023 onwards. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Jun. 30, 2023 | |
Classes of employee benefits expense [abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Equity settled share-based payments (“new long-term incentive” or “ELTI”) The grant date fair value of equity settled share-based payment arrangements is recognised as an 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 amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at vesting date. 19.1 EQUITY SETTLED LONG-TERM INCENTIVE SCHEME (“ELTI scheme”) Amounts in R million 2023 2022 2021 Share based payment expense - ELTI scheme 5.3 22.0 18.4 16.0 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 conditional 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 key conditions of the grants made under the ELTI scheme are: Retention shares: 100% of the retention shares will vest if the employee remains in the active employ of the Company at vesting date, is not under notice period and individual performance criteria are met. Performance shares: Total shareholder’s return (“ 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 over the vesting period. TSR measured against a peer group of 3 peers (Sibanye-Stillwater, Harmony Gold Mining Company 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 % Reconciliation of the number of conditional shares 2023 2022 Shares number Weighted average price R per share Shares number Weighted average price R per share Opening balance 7,593,670 7,840,620 Granted October 20, 2021 3,508,232 October 19, 2022 4,922,751 Vested (2,715,604) 11.44 (2,862,654) 14.02 Forfeited (276,579) (892,528) Closing balance 9,524,238 7,593,670 Vesting on 9,524,238 7,593,670 December 2, 2022 — 2,715,604 October 22, 2023 1,588,120 1,666,778 October 20, 2024 3,081,179 3,211,288 October 19, 2025 4,854,939 — 19.1 EQUITY SETTLED LONG-TERM INCENTIVE SCHEME (“ELTI scheme”) 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: Grant date October 19, 2022 October 20, 2021 October 22, 2020 Vesting date October 19, 2025 October 20, 2024 October 22, 2023 Weighted average fair value of 80% performance shares 1 5.54 7.34 10.49 Weighted average fair value of 20% retention shares 8.60 12.32 18.67 Expected term (years) 3 3 3 Grant date share price of a DRDGOLD share 9.48 13.55 19.43 Expected dividend yield 3.24 % 3.15 % 1.33 % Expected volatility 2 58.00 % 60.20 % 63.07 % Expected risk free rate 8.10 % 5.78 % 3.82 % 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 19.2 DIRECTORS' AND PRESCRIBED OFFICERS' EMOLUMENTS Interests in contracts None of the directors, officers or major shareholders of DRDGOLD or, to the knowledge of DRDGOLD’s management, their families, had any interest, direct or indirect, in any transaction entered into during the year ended 30 June 2023 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 officer is currently or has been at any time during the past financial year materially indebted to DRDGOLD . . Key management personnel remuneration Amounts in R million Note 2023 2022 2021 - Board fees paid 7.6 7.8 7.6 - Salaries paid 82.0 82.5 75.5 - Short term incentives relating to this cycle 83.8 84.1 73.8 - Market value of long-term incentives vested and transferred 19.1 31.1 40.1 — - Long term incentives paid during the cycle — — 183.3 204.5 214.5 340.2 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
CAPITAL MANAGEMENT | 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 considers 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, 2023 the Group did not have any facilities. At June 30, 2022 the Group’s facilities included an undrawn 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. Pursuant to the Group having started to evaluate its funding structure for its expanded budgeted capital expenditure programme in future years, a decision was made to not renew the RCF in September 2022. The initial and amended RCF permitted a consolidated debt ratio (net debt to adjusted EBITDA) of no more than 2:1 and a consolidated interest coverage ratio (net interest to adjusted EBITDA) of no less than 4:1 calculated on a twelve-month rolling basis, respectively. Management monitors the covenant ratio levels to ensure compliance with the covenants, as well as maintain sufficient facilities to ensure satisfactory liquidity for the Group. The covenant ratios were not breached as at or during the years ended June 30, 2022. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2023 | |
Equity [abstract] | |
EQUITY | 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 as 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 vests. 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. Preference shareholders participate only to the extent of the face value of the shares. Holders of preference shares do not have the right to participate in any additional dividends declared for ordinary shareholders. These shares do not have voting rights. Amounts in R million 2023 2022 2021 Authorised share capital 1,500,000,000 (2022 and 2021: 1,500,000,000) ordinary shares of no par value 5,000,000 (2022 and 2021: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 864,588,711 (2022 and 2021: 864,588,711) ordinary shares of no par value 6,208.4 6,208.4 6,208.4 3,896,663 (2022: 6,612,266; 2021: 9,474,920) treasury shares held within the Group (a) (21.0) (35.6) (51.0) 5,000,000 (2022 and 2021: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 6,187.9 6,173.3 6,157.9 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (a) 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, 2023 or the year ended June 30, 2022 or the year ended June 30, 2021. During the year ended June 30, 2023 2,715,604 (June 30, 2022: 2,862,654; June 30, 2021: nil) shares were used to settle the equity settled share-based payment, at Rnil cashflow to the Group. R14.6 million (June 30, 2022: R15.4 million; June 30, 2021: Rnil), representing the average cost of the treasury shares used to settle the share-based payment, was transferred to retained earnings. 21.2 DIVIDENDS Amounts in R million 2023 2022 2021 Dividends paid during the year net of treasury shares: Final dividend declared relating to prior year: 40 SA cents per share (2022: 40 SA cents per share; 2021: 35 SA cents per share) 343.2 342.0 299.3 Interim dividend: 20 SA cents per share (2022: 20 SA cents per share; 2021: 40 SA cents per share) 172.1 171.6 342.0 Total 515.3 513.6 641.3 After 30 June 2023, a dividend of 65 SA cents per qualifying share amounting to R559.4 million was approved by the directors as a final dividend for the year ended 30 June 2023. The dividend has not been provided for and does not have any tax impact on the Group. |
INTEREST IN SUBSIDIARIES
INTEREST IN SUBSIDIARIES | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of subsidiaries [abstract] | |
INTEREST IN SUBSIDIARIES | 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 (“ Ergo ”) and Far West Gold Recoveries Proprietary Limited (“ FWGR ”) 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. A complete list of the Group's subsidiaries is included in the Company financial statements of DRDGOLD |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENTS | 23 OPERATING SEGMENTS ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (“ CODM ”) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one material 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 cash operating costs of each segment. The net of these amounts is the segment operating profit or loss. Therefore, segment operating profit has been disclosed as the primary measure of profit or loss. The CODM also considers the additions to property, plant and equipment. The Group has one material revenue stream, the sale of gold. The following summary describes the operations in the Group’s reportable operating segments: 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 plant continues to operate as a metallurgical plant. The Knights plant was reconfigured from an operating metallurgical plant to operate as a pump/milling station from April 1, 2023. The City Deep plant continues to operate as a pump/milling station feeding the metallurgical plant. FWGR is a surface gold retreatment operation which treats old slime dams in the West Rand goldfields. The operation comprises the Driefontein 2 plant and relevant infrastructure to process tailings from the Driefontein 5 and 3 slimes dam and deposit residues on the Driefontein 4 Tailings Storage Facility. Corporate office and other reconciling items (collectively referred to as "Other reconciling items" ) represent the items to reconcile to consolidated financial statements. This does not represent a separate segment as it does not generate mining revenue. 23 OPERATING SEGMENTS continued Ergo FWGR Other reconciling items Total 2023 Amounts in R million Revenue (External) 4,108.6 1,387.7 — 5,496.3 Cash operating costs (3,183.2) (504.9) — (3,688.1) Movement in gold in process and finished inventories - Gold Bullion (1.8) 12.6 — 10.8 Segment operating profit 923.6 895.4 — 1,819.0 Additions to property, plant and equipment (816.0) (209.8) (5.1) (1,030.9) Reconciliation of segment operating profit to profit after tax Segment operating profit 923.6 895.4 — 1,819.0 Deprecation (120.6) (95.8) (1.1) (217.5) Change in estimate of environmental rehabilitation recognised in profit or loss 6.2 — 0.9 7.1 Ongoing rehabilitation expenditure (24.7) (1.7) (0.4) (26.8) Care and maintenance — — (0.4) (0.4) Other operating costs 3.9 — — 3.9 Other income 0.1 10.2 0.1 10.4 Administration expenses and other costs (8.3) (2.9) (161.7) (172.9) Finance income 34.4 31.8 268.1 334.3 Finance expense (58.7) (9.7) (2.3) (70.7) Current tax (51.1) (201.9) (33.3) (286.3) Deferred tax (73.8) (47.9) 3.0 (118.7) Profit after tax 631.0 577.5 72.9 1,281.4 Reconciliation of cost of sales to cash operating costs Cost of sales (3,320.2) (589.8) (1.0) (3,911.0) Deprecation 120.6 95.8 1.1 217.5 Change in estimate of environmental rehabilitation recognised in profit or loss (6.2) — (0.9) (7.1) Movement in gold in process and finished inventories - Gold Bullion 1.8 (12.6) — (10.8) Ongoing rehabilitation expenditure 24.7 1.7 0.4 26.8 Care and maintenance — — 0.4 0.4 Other operating costs (3.9) — — (3.9) Cash operating costs (3,183.2) (504.9) — (3,688.1) 23 OPERATING SEGMENTS continued Ergo FWGR Other reconciling items Total 2022 Amounts in R million Revenue (External) 3,704.9 1,413.6 — 5,118.5 Cash operating costs (3,009.8) (454.0) — (3,463.8) Movement in gold in process and finished inventories - Gold Bullion 35.2 (4.8) — 30.4 Segment operating profit 730.3 954.8 — 1,685.1 Additions to property, plant and equipment (436.2) (162.2) — (598.4) Reconciliation of segment operating profit to profit after tax Segment operating profit 730.3 954.8 — 1,685.1 Deprecation (134.5) (131.6) (1.5) (267.6) Change in estimate of environmental rehabilitation recognised in profit or loss 2.3 — (0.1) 2.2 Ongoing rehabilitation expenditure (30.1) (1.5) — (31.6) Care and maintenance — — (5.9) (5.9) Other operating costs (4.9) (0.2) (0.1) (5.2) Other income 70.1 21.2 — 91.3 Administration expenses and other costs (7.7) (13.8) (139.7) (161.2) Finance income 22.4 19.0 184.4 225.8 Finance expense (58.8) (10.8) (5.2) (74.8) Current tax (12.9) (237.3) (11.4) (261.6) Deferred tax (45.3) (29.6) 2.2 (72.7) Profit after tax 530.9 570.2 22.7 1,123.8 Reconciliation of cost of sales to cash operating costs Cost of sales (3,141.8) (592.1) (7.6) (3,741.5) Deprecation 134.5 131.6 1.5 267.6 Change in estimate of environmental rehabilitation recognised in profit or loss (2.3) — 0.1 (2.2) Movement in gold in process and finished inventories - Gold Bullion (35.2) 4.8 — (30.4) Ongoing rehabilitation expenditure 30.1 1.5 — 31.6 Care and maintenance — — 5.9 5.9 Other operating costs 4.9 0.2 0.1 5.2 Cash operating costs (3,009.8) (454.0) — (3,463.8) 23 OPERATING SEGMENTS continued Ergo FWGR Other reconciling items Total 2021 Amounts in R million Revenue (External) 3,943.0 1,326.0 — 5,269.0 Cash operating costs (2,666.5) (406.2) — (3,072.7) Movement in gold in process and finished inventories - Gold Bullion (31.9) 6.3 — (25.6) Segment operating profit 1,244.6 926.1 — 2,170.7 Additions to property, plant and equipment (250.9) (143.3) (1.5) (395.7) Reconciliation of segment operating profit to profit after tax Segment operating profit 1,244.6 926.1 — 2,170.7 Deprecation (135.6) (115.6) (1.3) (252.5) Change in estimate of environmental rehabilitation recognised in profit or loss 7.2 — 5.2 12.4 Ongoing rehabilitation expenditure (46.6) (1.7) — (48.3) Care and maintenance — — (3.9) (3.9) Other operating costs 2.4 — — 2.4 Other income 0.1 — — 0.1 Administration expenses and other costs 15.0 1.8 (80.8) (64.0) Finance income 21.0 17.2 178.0 216.2 Finance expense (45.8) (9.8) (13.9) (69.5) Current tax (196.1) (227.6) — (423.7) Deferred tax (66.6) (37.4) 4.0 (100.0) Profit after tax 799.6 553.0 87.3 1,439.9 Reconciliation of cost of sales to cash operating costs Cost of sales (2,871.0) (517.2) — (3,388.2) Deprecation 135.6 115.6 1.3 252.5 Change in estimate of environmental rehabilitation recognised in profit or loss (7.2) — (5.2) (12.4) Movement in gold in process and finished inventories - Gold Bullion 31.9 (6.3) — 25.6 Ongoing rehabilitation expenditure 46.6 1.7 — 48.3 Care and maintenance - - 3.9 3.9 Other operating costs (2.4) — — (2.4) Cash operating costs (2,666.5) (406.2) — (3,072.7) |
PAYMENTS MADE UNDER PROTEST
PAYMENTS MADE UNDER PROTEST | 12 Months Ended |
Jun. 30, 2023 | |
Payments Made Under Protest [Abstract] | |
PAYMENTS MADE UNDER PROTEST | 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 as well as the considerations in the outcome of the IFRS Interpretations Committee (“ IFRIC ”) agenda decision – Deposits relating to taxes other than income tax (IAS 37 Provisions, Contingent Liabilities and Contingent Assets ) (“ IFRIC Agenda Decision ”) published in January 2019. The IFRIC Agenda Decision has a similar fact pattern to that of the payments made under protest. With the consideration of the facts and circumstances surrounding the payments made under protest in applying the definition of an asset and the IFRIC Agenda Decision management considered the following: • payments were made under protest and without prejudice or admission of liability. Such payments were not made as a settlement of debt or recognition of expenditure; • the Group therefore retains a right to recover the payments from the City of Ekurhuleni Metropolitan Municipality (“ Municipality ”) if the Group is successful in the Main Application (as defined below); • if the Group is not successful in the Main Application, the payments will be used to settle the resultant liability to the Municipality; and • these 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 guidance 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 relied 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 timing 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 payment made under protest asset that arises from the Municipality Electricity Tariff Dispute 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 finance income. Assessment of recoverability The discounted amount of the payments under protest is assessed at each reporting date to determine 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 the Municipality and events surrounding the outcome of the Main Application. Any write down is recognised in finance expense. 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 future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. 24 PAYMENTS MADE UNDER PROTEST continued Amounts in R million Note 2023 2022 Balance at the beginning of the year 40.4 40.5 Payments made under protest 12.6 15.2 Discount on initial payment made under protest and change in estimate 7 (19.0) (21.1) Unwinding 6 5.7 5.8 Balance at the end of the year 39.7 40.4 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 action proceedings brought under two summonses 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 ESKOM 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 License (issued by NERSA) by purporting to supply electricity to Ergo at the Ergo Plant; • declaring that neither the Municipality nor ESKOM may lawfully insist that only the Municipality may supply electricity to Ergo at the Ergo Plant; • declaring that ESKOM presently supplies electricity to Ergo at the Ergo Plant; and • directing ESKOM 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 R74.0 million and R31.6 million, 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 determine 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 disproportionate, 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 Application and the action proceedings brought under the Summonses, which is still ongoing. 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 obligation as a result of a past event to pay the amounts claimed by the Municipality (refer note 26.3). The Group has been advised the application brought by the South African Local Government Association (" SALGA ") to challenge Eskom's ability to supply customers with electricity must be heard, adjudicated and finalized prior to that of the Main Application. The SALGA matter appears to have stalled, due to the interlocutory, joinder applications in the SALGA application. As the SALGA application is pivotal, it is anticipated that any decision handed down will be appealed, finally ending up in the Constitutional Court. The balance at the end of the year was based on the following assumptions: • discount rate: 15.30% (2022: 11.80%) representing the Municipality maximum cost of borrowing on bank loans as disclosed in their June 30, 2022 annual report and an additional risk premium on uncertainties in timing of the SALGA case; and • discount period: June 30, 2028 (2022: June 30, 2027) representing management’s best estimate of the date of conclusion of the Main Application and is supported by external legal counsel. The discount period has increased due to delays in the current year. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [abstract] | |
OTHER INVESTMENTS | OTHER INVESTMENTS ACCOUNTING JUDGEMENTS The Group has one (1) director representative on the Rand Refinery board. Therefore, judgement had to be applied to ascertain whether significant influence exists, and if the investment should be accounted for as an associate under IAS 28 Investments in Associates and Joint Ventures . The director representation is not considered significant influence, as it does not constitute meaningful representation. It represents 11.11% of the entire board and is proportional to the 11% shareholding that the Group has. 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 minimises 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 investment 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 other comprehensive income (“ 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 through OCI. Amounts in R million Shares held 1 % held 1 2023 2022 Listed investments (Fair value hierarchy Level 1): West Wits Mining Limited ("WWM") 47,812,500 2.1 % 7.2 10.7 Total listed investments 7.2 10.7 Unlisted investments (Fair value hierarchy Level 3): Rand Refinery Proprietary Limited ("Rand Refinery") 44,438 11.3 % 156.3 136.1 Rand Mutual Assurance Company Limited B Share Business Fund ("RMA") 2 12,659 1.3 % 4.9 4.4 Guardrisk Insurance Company Limited (Cell Captive A170) 3 20 100 % 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 42,292 4.5 % 0.1 0.1 Total unlisted investments 161.4 140.7 Balance at the end of the year 168.6 151.4 Fair value adjustment on equity instruments at fair value through OCI 17.2 (15.7) WWM (3.5) (32.8) Rand Refinery 20.2 16.8 RMA 0.5 0.3 Dividends received on equity instruments at fair value through OCI (78.3) (71.5) Rand Refinery (77.4) (70.1) RMA (0.9) (1.4) 1 The number and percentage of shares held remained unchanged from the prior year with the exception of WWM that issued new shares thereby diluting DRDGOLD's effective shareholding from 2.4% to 2.1% 2 The "B Share Business Fund" shares relate to all the businesses of the RMA Group that do not relate to the Compensation for Occupational Injuries and Diseases Act 3 The shares held entitle the holder to 100% of the residual net equity of Cell Captive A 170 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 values of listed investments are determined by reference to published price quotations from recognised securities exchanges and constitute level 1 instruments in the fair value hierarchy. Unlisted investments The fair values of unlisted investments are determined through valuation techniques that include inputs that are not based on observable market data and constitute level 3 instruments in the fair value hierarchy. 25 OTHER INVESTMENTS continued 25.1 RAND REFINERY Amounts in R million 2023 2022 Balance at the beginning of the year 136.1 119.3 Fair value adjustment on equity investments at fair value through other comprehensive income 20.2 16.8 Balance at the end of the year 156.3 136.1 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 of the investment in Rand Refinery. This method relies on the future budgeted cash flows as estimated by Rand Refinery. Management used a model developed by an external expert to perform the valuation. Rand Refinery’s refining operations (excluding Prestige Bullion) were valued using the Free Cash Flow model, whereby an enterprise value using a Gordon Growth formula for the terminal value was estimated. The forecasted dividend income to be received from Prestige Bullion was valued using a finite-life dividend discount model as Rand Refinery’s shareholding will be reduced to nil in 2032 per agreement with the South African Mint (partner in Prestige Bullion). These valuations revealed that the fair value of the investment in Rand Refinery consist mainly of Rand Refinery’s cash on hand and the forecasted dividend income to be received from Prestige Bullion. The fair value of Rand Refinery increased as a result of an increase in cash on hand. The enterprise value of the refining operations of Rand Refinery decreased because of an increase in budgeted operating costs. The value of the forecasted dividends for Prestige Bullion decreased as a result of a decrease in the discount period due to the model being finite. The fair value measurement uses significant unobservable inputs and relates to a fair value hierachy level 3 financial instrument. Marketability and minority discounts (both unobservable inputs) of 15.3% and 17.0% ( 2022 : 16.5% and 17.0% ), respectively, were applied. The latest budgeted cash flow forecasts provided by Rand Refinery as at 30 June 2023 was used, and therefore classified as an unobservable input into the models. Other key observable/unobservable inputs into the model include: Amounts in R million Observable/unobservable input Unit 2023 2022 Rand Refinery operations Forecast average gold price Observable input R/kg 1,060,562 880,207 Forecast average silver price Observable input R/kg 13,460 11,209 Average South African CPI Observable input % 4.5 4.4 South African long-term government bond rate Observable input % 10.51 10.26 Terminal growth rate Unobservable input % 4.5 4.4 Weighted average cost of capital Unobservable input % 17.0 15.9 Investment in Prestige Bullion Discount period Unobservable input years 10 11 Cost of equity Unobservable input % 17.0 14.2 Sensitivity analysis The fair value measurement is most sensitive to the Rand denominated gold price and operating costs. The higher the gold price, the higher the fair value of the Rand Refinery investment. The higher the operating costs, the lower the fair value of Rand Refinery. The fair value measurement is also sensitive to the discount rate and minority and marketability discounts applied. The below table indicates the extent of sensitivity of the Rand Refinery equity 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) 2.4 (2.4) Commodity prices (gold and silver) Observable inputs 1 (1) 1.6 (1.6) Operating costs Unobservable inputs 1 (1) (3.4) 3.4 Weighted average cost of capital Unobservable inputs 1 (1) (2.2) 2.2 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) (0.6) 0.6 Prestige Bullion dividend forecast Unobservable inputs 1 (1) 0.2 (0.2) |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of contingent liabilities [abstract] | |
CONTINGENCIES | 26 CONTINGENCIES SIGNIFICANT ACCOUNTING JUDGEMENTS 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. 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 future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. Contingent assets 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, 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 fund managing the compensation for the Applicants has started disbursing funds to the claim beneficiaries. The DRDGOLD Respondents, DRDGOLD Limited and East Rand Proprietary Mines Limited, are not a party to the settlement between the Applicants and Settling Companies and 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. In terms of the class action, the DRDGOLD Respondents have lodged an appeal against certain aspects of the class action including , inter alia, the extension of the remedy entertained in the class action, and the inclusion of tuberculosis as a basis for liability(" Appeal "). The Appeal record was finalised and the allocation of a date for the hearing of the Appeal was scheduled for November 11, 2022. The hearing of the Appeal was held in the Supreme Court of Appeal and judgment was handed-down for the matter to be struck off the roll. 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. 26 CONTINGENCIES continued 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 impact. 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 pump station and partial treatment plant to treat and discharge the water and maintain the AMD below the Environmental Critical Level (" ECL ") to prevent ground water contamination. 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/Withok Tailings Storage facility. Partially treated water has been discharged by TCTA into the Elsburg Spruit. This agreement includes the granting of access to the underground water basin through one of ERPM’s shafts and the rental of a site onto which it constructed its neutralisation plant. In exchange, Ergo and its associate companies including ERPM have a set off against any future directives to make any contribution toward costs or capital of up to R250 million. Through this agreement, Ergo also secured the right to purchase up to 30ML of partially treated AMD from TCTA at cost, to reduce Ergo’s reliance on potable water for mining and processing purpose 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. During the current year, a report was produced regarding the extent of ground water seepage from the Brakpan/Withok tailings storage facility by an expert. The report suggests that scavenger boreholes be constructed around the dam to deal with the seepage. The majority of the scavenger boreholes have been constructed and are currently operational and the results are being monitored. Management is currently investigating a sustainable solution to deal with the seepage post the closure of the mine and therefore no reliable estimate can be made for the post closure liability. 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 liabilities The Municipality has issued two summonses for the recovery of arrears it alleges it is owed amounting to R74.0 million and R31.6 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 amounts claimed by the Municipality. Contingent assets 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 R43 million (these surcharges were expensed for accounting purposes). |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | 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 period 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 in a business model whose objective is to hold financial assets in order to collect 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. 27 FINANCIAL INSTRUMENTS continued 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 processes 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 (“ Board ”) has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Risk Committee (“ RC ”) which is responsible for developing and monitoring the Group’s risk management policies. The committee reports regularly to the Board on its activities. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes to market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The RC 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 RC 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 RC. 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 receivables. 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 AND OTHER FUNDS NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES 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 risks. Lower interest rates result in lower returns on investments and deposits and also may have the effect of making it less expensive to borrow funds. 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 AND OTHER 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 The Group holds cash denominated in a foreign currency. This exposes the Group to fluctuations in foreign currency exchange rates. Additional disclosures are included in the following notes: NOTE 4 REVENUE NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES 27 FINANCIAL INSTRUMENTS continued 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 sufficient 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 LEASE LIABILITIES NOTE 16 TRADE AND OTHER PAYABLES NOTE 20 CAPITAL MANAGEMENT |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES | RELATED PARTIES Disclosures are included in the following notes: NOTE 5.1 COST OF SALES NOTE 5.3 ADMINISTRATION EXPENSES AND OTHER COSTS NOTE 16 TRADE AND OTHER PAYABLES NOTE 19.3 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL NOTE 21 EQUITY NOTE 22 INTEREST IN SUBSIDIARIESS |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS There were no significant subsequent events between the year-end reporting date of 30 June 2023 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 23 August 2023, the Board declared a final dividend for the year ended 30 June 2023 of 65 SA cents per qualifying share amounting to R559.4 million, which was paid on 18 September 2023. Conditional shares granted On 25 October 2023, 2,955,805 conditional shares were granted to qualifying employees under the current equity settled long-term incentive scheme. These are expected to vest on 25 October 2026. The number of conditional shares granted includes those granted to directors and prescribed officers as follows: Number of conditional shares Executive directors D J Pretorius 436,959 A J Davel 232,624 Prescribed officers W J Schoeman 232,624 K Mbanyele 29,585 |
ABOUT THESE CONSOLIDATED FINA_2
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
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 (“ DRDGOLD ” or the “ Company ”) and its subsidiaries who are all wholly owned subsidiaries and solely operate in South Africa (collectively 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 Company is Constantia Office Park, Cnr 14th Avenue and Hendrik Potgieter Road, Cycad House, Building 17, Ground Floor, Weltevreden Park, 1709. DRDGOLD is 50.1% held by Sibanye Gold Proprietary 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 issued by the International Accounting Standards Board (“ IASB ”), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council (“ FRSC ”) as well as the requirements of the Companies Act of South Africa. The consolidated financial statements were approved by the board of directors of the Company (“ Board ”) for issuance on October 30, 2023. The consolidated financial statements have been prepared on a going concern basis. |
Functional and presentation currency | Functional and presentation currency The functional and presentation currency of DRDGOLD and its subsidiaries is South African Rand (“ Rand ”). The amounts in these consolidated financial statements are rounded to the nearest million unless stated otherwise. Significant exchange rates during the year are set out in the table below: |
Basis of measurement | Basis of measurement The consolidated financial statements are prepared on the historical cost basis, unless otherwise stated. |
Basis of consolidation | Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. Transactions eliminated on consolidation Intra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. |
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 estimates. Information about assumptions and estimates in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 9 PROPERTY, PLANT AND EQUIPMENT NOTE 11 PROVISION FOR ENVIRONMENTAL REHABILITATION NOTE 18 INCOME TAX NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS Information about significant judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are included in the notes: NOTE 24 PAYMENTS MADE UNDER PROTEST NOTE 25 OTHER INVESTMENTS NOTE 26 CONTINGENCIES SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES Mineral resources and mineral reserves estimates The Group is required to determine and report mineral resources and mineral reserves 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 resources and mineral reserves, 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 resources and mineral reserves 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 resources and mineral reserves change from period to period and because additional geological data is generated during the course of operations, estimates of mineral resources and mineral reserves may change from period to period. Mineral resources and mineral reserves estimates prepared by management are reviewed by independent mineral resources and mineral reserves experts. Changes in reported mineral resources and mineral reserves 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 resources and mineral reserves affect expectations about the timing or cost of these activities; and • the carrying value of deferred tax assets and liabilities may change due to changes in estimates of 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 resources and mineral reserves. These factors could include: • changes in mineral resources and mineral reserves; • the grade of mineral resources and mineral reserves may vary from time to time; • differences between actual commodity prices 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 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. The 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 whether: • 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 inception 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 is 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 plan requirements and environmental rehabilitation obligations associated with the property post reclamation. 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 as well as the life-of-mine plan (as discussed in note 9 to the consolidated financial statements) which influences the estimated timing of the rehabilitation cash outflows and the planned method of rehabilitation which in turn is influenced by developments in trends and technology. An average discount rate ranging between 10.8% and 11.1% (2022: between 10.2% and 10.3%), average inflation rate of 5.7% (2022: 5.5%) and the discount periods as per the expected life-of-mine were used in the calculation of the estimated net present value of the rehabilitation liability. 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 operations 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 average 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 performance. A 100 basis points increase in the effective tax rate will result in an increase in the net deferred tax liability at 30 June 2023 of approximatel y R22.8 million (2022: R18.7 million; 2021: R14.2 milli on). 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 inherently uncertain and could change materially over time. Capital 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 previous year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying 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. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates, including the Group’s life-of-mine plan (as discussed in note 9 to the consolidated financial statements) that is applied to calculate the expected future profitability. 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 as well as the considerations in the outcome of the IFRS Interpretations Committee (“ IFRIC ”) agenda decision – Deposits relating to taxes other than income tax (IAS 37 Provisions, Contingent Liabilities and Contingent Assets ) (“ IFRIC Agenda Decision ”) published in January 2019. The IFRIC Agenda Decision has a similar fact pattern to that of the payments made under protest. With the consideration of the facts and circumstances surrounding the payments made under protest in applying the definition of an asset and the IFRIC Agenda Decision management considered the following: • payments were made under protest and without prejudice or admission of liability. Such payments were not made as a settlement of debt or recognition of expenditure; • the Group therefore retains a right to recover the payments from the City of Ekurhuleni Metropolitan Municipality (“ Municipality ”) if the Group is successful in the Main Application (as defined below); • if the Group is not successful in the Main Application, the payments will be used to settle the resultant liability to the Municipality; and • these 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 guidance 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 relied 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 timing 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 JUDGEMENTS The Group has one (1) director representative on the Rand Refinery board. Therefore, judgement had to be applied to ascertain whether significant influence exists, and if the investment should be accounted for as an associate under IAS 28 Investments in Associates and Joint Ventures . The director representation is not considered significant influence, as it does not constitute meaningful representation. It represents 11.11% of the entire board and is proportional to the 11% shareholding that the Group has. 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 minimises 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. SIGNIFICANT ACCOUNTING JUDGEMENTS 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. |
New standards, amendments to standards and interpretations | New standards, amendments to standards and interpretations effective for the year ended 30 June 2023 During the financial year, the following new and revised accounting standards, amendments to standards and new interpretation were adopted by the Group: Annual Improvements to IFRS Standards 2018-2020 (Effective 1 July 2022) As part of its process to make non-urgent but necessary amendments to IFRS Standards, the International Accounting Standards Board (“ IASB ”) has issued the Annual Improvements to IFRS Standards 2018–2020 . These did not have a significant impact on the Group. Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS16) (Effective 1 July 2022) The IASB has amended IAS 16 Property, Plant and Equipment to provide guidance on the accounting for such sale proceeds and the related production costs. Under the amendments, proceeds from selling items before the related item of property, plant and equipment (“ PPE ”) is available for use should be recognised in profit or loss, together with the costs of producing those items. IAS 2 Inventories should be applied in identifying and measuring these production costs. The amendments apply retrospectively, but only to items of PPE made available for use on or after the beginning of the earliest period presented in the financial statements in which the amendments are adopted. The amendment did not have a significant impact on the Group. 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 consolidated financial statements. These new standards, amendments to standards and interpretations will be adopted at their effective dates. Definition of Accounting Estimate (Amendments to IAS 8) (Effective 1 July 2023) The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. The amendment is not expected to have a significant impact on the Group. Deferred Tax related to Assets and Liabilities Arising from a single transaction – Amendments to IAS 12 Income Taxes (Effective 1 July 2023) IAS 12 Income taxes clarifies how companies should account for deferred tax on certain transactions – e.g. leases and decommissioning provisions. The amendments narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on initial recognition of a lease and a decommissioning provision. The Group has assessed the estimated impact of adopting the standard on 1 July 2023 as follows: Decommissioning provision • The amendment will result in an increase in the gross deferred tax assets and liabilities for the Group as deferred tax will be recognised on the decommissioning asset and liability which was previously not recognised under the initial recognition exemption. These increases are not expected to be material for the Group. Lease liability • The amendment will not have a material impact on the Group as deferred tax is recognised on lease liabilities and the corresponding right of use assets. 3 NEW STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS continued New standards, amendments to standards and interpretations not yet effective (continued) Classification of liabilities as current or non-current (Amendments to IAS 1 Presentation of Financial Statements) (Effective 1 July 2023) To promote consistency in application and clarify the requirements on determining if a liability is current or non-current, the IASB has amended IAS 1 as follows: Right to defer settlement must have substance Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. As part of its amendments, the IASB has removed the requirement for a right to be unconditional and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period. Classification of debt may change A company classifies a liability as non-current if it has a right to defer settlement for at least twelve months after the reporting period. The IASB has now clarified that a right to defer exists only if the company complies with conditions specified in the loan agreement at the end of the reporting period, even if the lender does not test compliance until a later date. The amendment is not expected to have a significant impact on the Group. Disclosure of Accounting Policy (Amendments to IAS 1 and IFRS Practice Statement 2) (Effective 1 July 2023) The Board has recently issued amendments to IAS 1 Presentation of Financial Statements and an update to IFRS Practice Statement 2 Making Materiality Judgements to help companies provide useful accounting policy disclosures. The key amendments to IAS 1 include: • requiring companies to disclose their material accounting policies rather than their significant accounting policies; • clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and • clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements. The amendments are applied prospectively. The amendment is not expected to have a material impact on the Group's disclosures. |
Revenue | ACCOUNTING POLICIES Revenue comprises the sale of gold bullion and silver bullion (produced as a by-product). Up to April 11, 2022 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 the Group transfers control over the goods to the customer. The Group recognises revenue at a point in time when Rand Refinery Proprietary Limited (“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 reliably 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. Subsequent to April 11, 2022 revenue is measured based on the consideration specified in a contract with the customer, being South African bullion banks. The consideration is based on the gold price derived on the gold market on the day a contract is entered into with the customer. The Group recognises revenue at a point in time when the Group transfers the gold bullion and silver bullion to the bullion bank and the sale price is fixed, as evidenced by deal confirmations. It is at this point that the customer obtains control of the gold bullion or silver bullion, which is the settlement date specified in the contract. At this point that the revenue can be measured reliably and the recovery of the consideration is probable. The customer is contractually obliged to make payment to the Group on the same day that the Group settles the contract and therefore no significant financing component exists. |
Other income | ACCOUNTING POLICIES Other income 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 COVID-19 and other insurance payouts, 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 investment in Guardrisk, growth in the reimbursive right for environmental rehabilitation guarantees, dividends received, the unwinding of the payments made under protest and foreign exchange gains. 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, the discount recognised on payments made under protest and foreign exchange losses. |
Property, plant and equipment | 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, whereafter they are measured at cost less accumulated depreciation and accumulated impairment losses. Exploration assets are initially measured at cost, whereafter they are measured at cost less accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition 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 separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of 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, geochemical and geophysical studies associated with prospective projects and tangible assets which comprise 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 assessed for impairment and then reclassified to the appropriate class of assets. Depreciation commences when the assets are available for use. Exploration and evaluation expenses prior to acquiring rights to explore is recognised in profit or loss. 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 can 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. The current estimated useful lives are based on the life-of-mine of each site, currently between one year (2022: two years; 2021: three years) and 19 years (2022: 19 years; 2021: 13 years) for mining assets of Ergo Mining Proprietary Limited (“ Ergo ”) and between two years (2022: two years; 2021: three years) and 18 years (2022: 20 years; 2021: 18 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 events 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 which 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 produce 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. |
Right of use assets and leases | ACCOUNTING POLICIES Right of use assets 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 right of use asset carrying value is allocated to the CGU it belongs to and the CGU 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 rate. 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. The lease liability is measured using the effective interest rate method. The Group re-measures the lease liability when the lease contract is modified and this does not give rise to modification accounting, when the lease term has been changed or when the lease payments have changed as a result of a change in an index or rate or a change in the assessment of a purchase option. Upon remeasurement, a corresponding adjustment is made to the carrying amount of the right of use asset or is recorded 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 statement of financial position. 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 | 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 PPE 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 carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy dealing with impairments of property, plant and equipment. Over time, the liability is increased to reflect an interest element, and the capitalised cost is depreciated over the life of the related asset. Cash costs incurred to rehabilitate these disturbances are charged to the provision and are presented as investing activities in the statement of cash flows. The present value of environmental rehabilitation costs relating to 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 trusts Cash and cash equivalents included in environmental rehabilitation trusts 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. The cash and cash equivalents in environmental rehabilitation trusts are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets. Reimbursive right for environmental rehabilitation guarantees (“old environmental rehabilitation policy”) 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 lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. The funds held in the cell captive under the old environmental rehabilitation policy are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets. Investments in Guardrisk Cell Captive Funds invested in the Guardrisk Cell Captive, held within Guardrisk Insurance Company Limited (“ GICL ”) or “ Guardrisk ” are non-derivative financial assets categorised as financial assets measured at fair value through profit and loss as the funds are invested by Guardrisk in liquid money market funds. These assets are initially measured at fair value and subsequent changes in fair value are recognised in profit or loss as they arise and included in finance income. The investments in GICL are for the sole use of environmental financial guarantees, Directors’ and Officers’ insurance and other insurance requirements. The investment in the Guardrisk Cell Captive are for the sole use as determined in the insurance policies and are therefore included in non-current assets. |
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 convertible 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 and 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 assets. 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 ownership 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 created 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 includes 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 exposed 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 cash 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 to 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 to the bullion banks. Settlement is usually received on the gold sold date. Previously trade receivables related to gold sold on the bullion market by Rand Refinery in its capacity as an agent for the Group. Settlement was usually received 2 working days from gold sold date. |
Trade and other payables | ACCOUNTING POLICIES Trade and other payables, excluding Value Added Tax, 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 obligation 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 Bullion 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 consumable stores and stockpile material 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 | 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 previous year. Amounts are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying 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. The calculation of the forecast weighted average tax rate requires the use of assumptions and estimates, including the Group’s life-of-mine plan (as discussed in note 9 to the consolidated financial statements) that is applied to calculate the expected future profitability. |
Employee benefits | Equity settled share-based payments (“new long-term incentive” or “ELTI”) The grant date fair value of equity settled share-based payment arrangements is recognised as an 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 amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at vesting date. |
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. |
Stated share capital | 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 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 as 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 vests. |
Operating segments | ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (“ CODM ”) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one material 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 cash operating costs of each segment. The net of these amounts is the segment operating profit or loss. Therefore, segment operating profit has been disclosed as the primary measure of profit or loss. The CODM also considers the additions to property, plant and equipment. |
Payments made under protest | ACCOUNTING POLICIES Payments made under protest Recognition and measurement The payment made under protest asset that arises from the Municipality Electricity Tariff Dispute 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 finance income. Assessment of recoverability The discounted amount of the payments under protest is assessed at each reporting date to determine 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 the Municipality and events surrounding the outcome of the Main Application. Any write down is recognised in finance expense. 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 future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. |
Other investments | ACCOUNTING POLICIES On initial recognition of an equity investment 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 other comprehensive income (“ 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 through OCI. |
Contingent liabilities and contingent assets | 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 future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. Contingent assets 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. |
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 period 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 in a business model whose objective is to hold financial assets in order to collect 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 | 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 processes 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 (“ Board ”) has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Risk Committee (“ RC ”) which is responsible for developing and monitoring the Group’s risk management policies. The committee reports regularly to the Board on its activities. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes to market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The RC 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 RC 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 RC. 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 receivables. 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 AND OTHER FUNDS NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES 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 risks. Lower interest rates result in lower returns on investments and deposits and also may have the effect of making it less expensive to borrow funds. 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 AND OTHER 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 The Group holds cash denominated in a foreign currency. This exposes the Group to fluctuations in foreign currency exchange rates. Additional disclosures are included in the following notes: NOTE 4 REVENUE NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES 27 FINANCIAL INSTRUMENTS continued 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 sufficient 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 LEASE LIABILITIES NOTE 16 TRADE AND OTHER PAYABLES NOTE 20 CAPITAL MANAGEMENT |
Credit risk | 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 receivables. 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 AND OTHER FUNDS NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES |
Market risk | 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 risks. Lower interest rates result in lower returns on investments and deposits and also may have the effect of making it less expensive to borrow funds. 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 AND OTHER 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 The Group holds cash denominated in a foreign currency. This exposes the Group to fluctuations in foreign currency exchange rates. Additional disclosures are included in the following notes: NOTE 4 REVENUE NOTE 13 CASH AND CASH EQUIVALENTS NOTE 15 TRADE AND OTHER RECEIVABLES |
Liquidity risk | 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 sufficient 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 LEASE LIABILITIES NOTE 16 TRADE AND OTHER PAYABLES NOTE 20 CAPITAL MANAGEMENT |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue [abstract] | |
Schedule of Revenue | Amounts in R million 2023 2022 2021 Gold revenue 5,489.7 5,110.7 5,263.8 Silver revenue 6.6 7.8 5.2 Total revenue 5,496.3 5,118.5 5,269.0 |
Schedule of Market Risk | Amounts in R million 2023 2022 2021 20% increase in the US Dollar gold price 1,099.3 1,023.7 1,053.8 20% decrease in the US Dollar gold price (1,099.3) (1,023.7) (1,053.8) Amounts in R million 2023 2022 2021 20% increase in the US Dollar exchange rate 1,099.3 1,023.7 1,053.8 20% decrease in the US Dollar exchange rate (1,099.3) (1,023.7) (1,053.8) |
RESULTS FROM OPERATING ACTIVI_2
RESULTS FROM OPERATING ACTIVITIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Cost of Sales | Amounts in R million Note 2023 2022 2021 Cost of sales (3,911.0) (3,741.5) (3,388.2) Operation costs (a) (3,711.4) (3,506.5) (3,122.5) Movement in gold in process and finished inventories - Gold Bullion 10.8 30.4 (25.6) Depreciation 9 (217.5) (267.6) (252.5) Change in estimate of environmental rehabilitation 11 7.1 2.2 12.4 (a) The most significant components of operating costs include: Consumable stores (1,199.9) (1,014.9) (880.2) Labour including short term incentives (663.4) (649.6) (598.4) Electricity (544.4) (547.3) (488.2) Specialist service providers (633.9) (610.2) (510.7) Machine hire (152.3) (139.0) (127.4) Security expenses (153.6) (133.0) (122.8) Water (61.8) (54.2) (57.1) |
Related Party Transactions | Amounts in R million 2023 2022 2021 Services rendered by related parties and included in operating costs: Supply of water and electricity 1 79.2 79.2 68.1 Gold smelting and related charges 1 21.1 19.1 21.1 Other charges 1 0.3 0.3 0.7 Gold refining and related charges 2 7.2 6.9 6.8 107.8 105.5 96.7 1 Paid to Sibanye-Stillwater by FWGR 2 Paid to Rand Refinery by Ergo |
Other Income | Amounts in R million 2023 2022 2021 Gain on disposal of property, plant and equipment 10.3 6.6 0.1 Insurance claim refund — 84.7 — Sundry income 0.1 — — 10.4 91.3 0.1 (a) Insurance claim During the FY2020, a complex insurance claim process was initiated for business interruption caused by the regulatory lockdowns pursuant to the COVID-19 pandemic. R84.7 million was included in other income in profit or loss in FY2022. R53.0 million was received before 30 June 2022 and the balance of R31.7 million was received in FY2023. — 84.7 — |
Administration Expenses and Other Costs | Amounts in R million Note 2023 2022 2021 Included in administration expenses and other costs are the following: Share based payment (expenses)/benefit (22.0) (18.4) 28.3 Cash settled Long-Term Incentive (" CLTI ") scheme — — 44.3 Equity settled Long-Term Incentive (" ELTI ") scheme 19.1 (22.0) (18.4) (16.0) Exploration expenses and transaction costs 1 (4.6) (15.2) (3.1) Other costs and administration expenses 2 (55.8) (52.8) (39.7) 1 FY2022 includes exploration expenses of R8.2 million paid to Sibanye-Stillwater. 2 Other costs and administration expenses are made up of short-term incentives and information technology costs. |
FINANCE INCOME (Tables)
FINANCE INCOME (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Finance Income [Abstract] | |
Finance income | Amounts in R million Note 2023 2022 2021 Interest on financial assets measured at amortised cost 13 190.2 111.8 108.7 Growth in cash and cash equivalents in environmental rehabilitation trust funds 12 — 14.8 22.5 Growth in reimbursive right for environmental rehabilitation guarantees 12 — 1.8 3.7 Growth in investment in Guardrisk 12 50.5 13.1 — Dividends received 25 78.3 71.5 76.1 Unwinding of payments made under protest 24 5.7 5.8 4.8 Unrealised foreign exchange gain 9.0 7.0 — Other finance income 0.6 — 0.4 334.3 225.8 216.2 |
FINANCE EXPENSE (Table)
FINANCE EXPENSE (Table) | 12 Months Ended |
Jun. 30, 2023 | |
Finance Expense [Abstract] | |
Finance expense | Amounts in R million Note 2023 2022 2021 Interest on financial liabilities measured at amortised cost (1.4) (2.6) (2.3) Unwinding of provision for environmental rehabilitation 11 (46.2) (45.0) (44.7) Discount recognised on payments made under protest 24 (19.0) (21.1) (7.4) Interest on lease liabilities 10.2 (3.8) (4.2) (4.5) Unrealised foreign exchange loss — — (8.4) Other finance expenses (0.3) (1.9) (2.2) (70.7) (74.8) (69.5) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
Earnings Per Share | Amounts in R million 2023 2022 2021 The calculations of basic and diluted earnings per ordinary share are based on the following: Profit for the year 1,281.4 1,123.8 1,439.9 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares Note 2023 2022 2021 Weighted average number of ordinary shares in issue adjusted for treasury shares 859,538,847 856,760,797 855,113,791 Effect of equity-settled share-based payment 5,423,357 4,203,336 5,935,215 Dilutive weighted average issued shares 864,962,204 860,964,133 861,049,006 SA cents per share 2023 2022 2021 Basic EPS 149.1 131.2 168.4 Diluted EPS 148.2 130.6 167.2 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Amounts in R million Note Mine plant facilities and equipment Mine property and development Exploration assets Capital work in progress Total 30 June 2023 Cost 2,901.6 2,788.6 16.2 498.0 6,204.4 Balance at the beginning of the year 2,733.9 2,419.6 14.2 — 5,167.7 Additions - property, plant and equipment owned 1 157.5 365.1 2.0 498.0 1,022.6 Additions - right-of-use assets 10.1 — 6.1 — — 6.1 Lease modifications 10.1 (0.6) — — — (0.6) Lease derecognitions 10.1 (4.2) (0.8) — — (5.0) Disposals and scrapping (6.6) (0.2) — — (6.8) Change in estimate of decommissioning asset 11 21.6 (1.2) — — 20.4 Accumulated depreciation and impairment (1,108.7) (1,176.5) (9.7) — (2,294.9) Balance at the beginning of the year (1,017.0) (1,056.9) (9.7) — (2,083.6) Depreciation 5.1 (97.9) (119.6) — — (217.5) Lease derecognitions 4.0 — — — 4.0 Disposals and scrapping 2.2 — — — 2.2 Carrying value at end of the year 1,792.9 1,612.1 6.5 498.0 3,909.5 Comprising: Property, plant and equipment owned 1,783.2 1,587.0 6.5 498.0 3,874.7 Right-of-use assets 10.1 9.7 25.1 — — 34.8 Carrying value at end of the year 1,792.9 1,612.1 6.5 498.0 3,909.5 1 This amount includes cash additions of R959.7 million 30 June 2022 Cost 2,733.9 2,419.6 14.2 — 5,167.7 Balance at the beginning of the year 2,604.3 2,154.0 110.5 — 4,868.8 Additions - property, plant and equipment owned 291.4 301.2 5.8 — 598.4 Additions - right-of-use assets 10.1 6.0 9.9 — — 15.9 Lease modifications 10.1 — 1.2 — — 1.2 Lease derecognitions 10.1 (1.6) — — — (1.6) Disposals and scrapping (185.3) (61.6) (0.9) — (247.8) Change in estimate of decommissioning asset 11 (46.3) (20.9) — — (67.2) Transfers between classes of property, plant and equipment 65.4 35.8 (101.2) — — Accumulated depreciation and impairment (1,017.0) (1,056.9) (9.7) — (2,083.6) Balance at the beginning of the year (1,074.0) (975.4) (9.7) — (2,059.1) Depreciation 5.1 (125.1) (142.5) — — (267.6) Lease derecognitions 1.6 — — — 1.6 Disposals and scrapping 180.5 61.0 — — 241.5 Carrying value at end of the year 1,716.9 1,362.7 4.5 — 3,084.1 Comprising: Property, plant and equipment owned 1,698.7 1,333.2 4.5 — 3,036.4 Right-of-use assets 10.1 18.2 29.5 — — 47.7 Carrying value at end of the year 1,716.9 1,362.7 4.5 — 3,084.1 |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Presentation of leases for lessee [abstract] | |
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 30 June 2023 Cost 26.4 63.7 90.1 Opening balance 31.2 58.4 89.6 Additions — 6.1 6.1 Lease modifications (0.6) — (0.6) Lease derecognitions (4.2) (0.8) (5.0) Accumulated depreciation and impairment (16.7) (38.6) (55.3) Opening balance (13.0) (28.9) (41.9) Depreciation (7.7) (9.7) (17.4) Lease derecognitions 4.0 — 4.0 Carrying value 9.7 25.1 34.8 30 June 2022 Cost 31.2 58.4 89.6 Opening balance 26.8 47.3 74.1 Additions 6.0 9.9 15.9 Lease modifications — 1.2 1.2 Lease derecognitions (1.6) — (1.6) Accumulated depreciation and impairment (13.0) (28.9) (41.9) Opening balance (6.2) (18.8) (25.0) Depreciation (8.4) (10.1) (18.5) Lease derecognitions 1.6 — 1.6 Carrying value 18.2 29.5 47.7 |
Lease liabilities | Amounts in R million Note 2023 2022 Reconciliation of the lease liabilities balance: Balance at the beginning of the year 52.3 54.8 New leases 9 6.1 15.9 Lease modifications 9 (0.6) 1.2 Lease derecognitions 9 (1.2) — Interest charge on lease liabilities 7 3.8 4.2 Repayment of lease liabilities (16.9) (19.7) Interest repaid (3.8) (4.1) Balance at the end of the year 39.7 52.3 Current portion of lease liabilities (11.3) (19.5) Non-current portion of lease liabilities 28.4 32.8 Maturity analysis of undiscounted contractual cash flows: Less than a year 16.7 22.4 One to five years 24.8 35.1 More than five years 8.5 2.1 Total undiscounted lease liabilities at the end of the year 50.0 59.6 Lease payments not recognised as a liability but expensed during the year: Short-term leases (6.4) (2.5) Leases of low value assets (9.7) (8.6) Cash flows included in cash generated from operating activities (16.1) (11.1) |
PROVISION FOR ENVIRONMENTAL R_2
PROVISION FOR ENVIRONMENTAL REHABILITATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Provision for decommissioning restoration and rehabilitation costs | Amounts in R million Note 2023 2022 Opening balance 517.7 570.8 Unwinding of provision 7 46.2 45.0 Change in estimate of environmental rehabilitation recognised in profit or loss 5.1 (7.1) (2.2) Change in estimate of environmental rehabilitation recognised to decommissioning asset (a) 9 20.4 (67.2) Environmental rehabilitation payments (b) (15.1) (28.7) To reduce decommissioning liabilities (13.8) (25.4) To reduce restoration liabilities 14 (1.3) (3.3) Closing balance 562.1 517.7 Environmental rehabilitation payments to reduce the liability (15.1) (28.7) Ongoing rehabilitation expenditure 1 (26.8) (31.6) Total cash spent on environmental rehabilitation (41.9) (60.3) 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 AND OTHER FUNDS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Miscellaneous non-current assets [abstract] | |
Investments in environmental rehabilitation guarantees | Amounts in R million Note 2023 2022 Cash and cash equivalents in environmental rehabilitation trust funds — — Opening balance — 564.7 Transfer to Investment in Guardrisk Cell Captive — (579.5) Growth 6 — 14.8 Reimbursive right for environmental rehabilitation guarantees — — Opening balance — 87.5 Lapsing of old environmental rehabilitation policy retained in Guardrisk Cell Captive — (89.3) Growth 6 — 1.8 Investment in Guardrisk Cell Captive (a) 789.7 710.8 Opening balance 710.8 — Transfer to Guardrisk cell captive — 668.8 Contributions 28.4 28.9 Growth 6 50.5 13.1 Investments in rehabilitation and other funds 789.7 710.8 (a) Investment in Guardrisk Cell Captive The investment in the cell captive is allocated as follows: 789.7 710.8 Environmental rehabilitation 630.6 589.8 Directors’ and Officers’ insurance 61.3 29.5 Other funds 97.8 91.5 |
Sensitivity analysis for types of market risk | Amounts in R million 2023 2022 100bp increase 7.9 7.1 100bp (decrease) (7.9) (7.1) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents [abstract] | |
Schedule of Cash, Cash Equivalents and Short Term Investments | Amounts in R million Note 2023 2022 Cash on hand 131.3 113.2 Access deposits and income funds 1 2,328.7 2,401.7 Restricted cash 2 11.4 10.7 2,471.4 2,525.6 Interest earned on cash and cash equivalents 6 190.2 111.8 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 annualised yields of between 8.80% and 9.49% 2 This consists of cash held on call as collateral for guarantees issued by the Standard Bank of South Africa Limited on behalf of the Group for environmental rehabilitation amounting to R5.2 million and various utilities amounting to R5.1 million |
Schedule of Market Risk | Amounts in R million 2023 2022 100bp increase 25.0 23.5 100bp (decrease) (25.0) (23.5) US Dollars not converted to South African rands at reporting date are as follows: Figures in USD million 2023 2022 Foreign denominated cash at 30 June 3.7 3.4 A 10% strengthening of the rand against the US Dollar at 30 June 2023 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 2023 2022 Strengthening of the Rand against the US Dollar (7.0) (5.5) Weakening of the Rand against the US Dollar 7.0 5.5 |
CASH GENERATED FROM OPERATIONS
CASH GENERATED FROM OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Cash flows from (used in) operating activities [abstract] | |
Disclosure of cash generated by operations | Amounts in R million Note 2023 2022 2021 Profit for the year 1,281.4 1,123.8 1,439.9 Adjusted for: Income tax 18.1 405.0 334.3 523.7 Depreciation 9 217.5 267.6 252.5 Movement in gold in process and finished inventories - Gold Bullion 5.1 (10.8) (30.4) 25.6 Change in estimate of environmental rehabilitation recognised in profit or loss 11 (7.1) (2.2) (12.4) Environmental rehabilitation payments to reduce the restoration liabilities 11 (1.3) (3.3) (5.8) Share based payment expense 5.3 22.0 18.4 (28.3) Gain on disposal of property, plant and equipment 5.2 (10.3) (6.6) (0.1) Insurance claim received/(receivable) 5.2 31.7 (31.7) — Finance income 6 (334.3) (225.8) (216.2) Finance expense 7 70.7 74.8 69.5 Other non-cash items — 3.8 (2.5) Operating cash flows before working capital changes 1,664.5 1,522.7 2,045.9 Changes in: 44.2 62.9 (194.9) Trade and other receivables 19.9 25.7 6.9 Inventories (13.6) (18.9) (44.7) Payment made under protest 24 (12.6) (15.2) (8.1) Trade and other payables and employee benefits 50.5 71.3 (149.0) Cash generated by operations 1,708.7 1,585.6 1,851.0 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information of trade and other receivables explanatory | |
Disclosure of balances of counterparties assessed as being credit impaired | The balances of counterparties who have been assessed as being credit impaired at reporting date are as follows: 2023 2022 Amounts in R million Non-credit impaired Credit impaired Non-credit impaired Credit impaired Other receivables 32.9 0.9 55.2 2.2 Loss allowance — (0.9) — (2.2) |
Movement in the allowance for impairment in respect of trade and other receivables | Movement in the allowance for impairment in respect of trade and other receivables during the year was as follows: Amounts in R million 2023 2022 Balance at the beginning of the year (2.2) (1.2) Credit loss allowance/impairments recognised included in operating costs (2.0) (1.1) Credit loss allowance/impairments reversed included in operating costs 0.6 0.1 Credit loss allowance written off against related receivable 2.7 — Balance at the end of the year (0.9) (2.2) |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Trade and other payables [abstract] | |
Disclosure of detailed information of trade and other payables explanatory | Amounts in R million Note 2023 2022 Trade payables and accruals 525.1 429.1 VAT payable 0.3 0.2 Provision for leave 56.8 55.7 Accrual for short term performance based incentives 89.8 87.5 Payroll creditors 28.5 25.9 700.5 598.4 Interest relating to trade payables and accruals included in profit or loss (1.1) (1.8) RELATED PARTY BALANCES Trade payables and accruals include the following amounts payable to related parties: Sibanye-Stillwater 16.5 25.8 Rand Refinery 0.3 — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Classes of current inventories [abstract] | |
Inventories | Amounts in R million 2023 2022 Consumable stores 232.7 197.5 Ore stockpiles 30.2 51.9 Gold in process 67.9 75.1 Finished inventories - Gold Bullion 82.8 64.8 Total inventories 413.6 389.3 Inventory carried at net realisable value includes: Gold in process — 8.5 Finished inventories - Gold Bullion — 7.9 Write down to net realisable value included in movement in gold in process and finished stock — (2.7) |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Major components of tax expense (income) [abstract] | |
Components of tax expense or income including tax reconciliation and unrecognised tax | Amounts in R million 2023 2022 2021 Current tax (286.3) (261.6) (423.7) Mining tax (253.0) (250.2) (423.7) Non-Mining, company and capital gains tax (33.3) (11.4) — Deferred tax (118.7) (72.7) (100.0) Deferred tax charge - Mining tax (121.6) (119.9) (104.0) Deferred tax charge - Non-mining, company and capital gains tax 2.9 1.6 (19.1) Deferred tax rate adjustment — 45.6 — Recognition of previously unrecognised income losses — 0.4 7.8 Recognition of previously unrecognised capital losses — — (1.2) Recognition of previously unrecognised temporary differences — (0.4) 16.5 (405.0) (334.3) (523.7) 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 27% (2022 and 2021: 28%) (455.3) (408.3) (549.9) Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula 47.6 36.4 3.7 Deferred tax rate adjustment (a) — 45.6 — Depreciation of property, plant and equipment exempt from deferred tax on initial recognition (b) (16.3) (22.2) (21.2) Non-deductible expenses (c) (7.0) (7.3) (6.2) Exempt income and other non-taxable income (d) 21.8 19.0 22.8 (Derecognition of previously recognised)/Recognition of previously unrecognised — (0.4) 16.5 (Derecognition of previously recognised)/Recognition of previously unrecognised tax losses of a capital nature — — (1.2) Utilisation of tax losses for which deferred tax assets were previously unrecognised — 0.4 7.8 Over provided in prior periods 2.0 — — Current year losses for which no deferred tax asset was recognised 0.4 (1.4) (0.1) Other (0.1) 3.6 3.3 Tax incentives 1.9 0.3 0.8 Income tax Income tax (405.0) (334.3) (523.7) |
Deferred tax assets and liabilities | Amounts in R million 2023 2022 Included in the statement of financial position as follows: Deferred tax assets 32.8 14.5 Deferred tax liabilities (560.7) (451.9) Net deferred tax liabilities (527.9) (437.4) Reconciliation of the deferred tax balance: Balance at the beginning of the year (437.4) (371.3) Recognised in profit or loss (118.7) (72.7) Recognised in other comprehensive income 0.7 6.6 Recognised in equity 27.5 — Balance at the end of the year (527.9) (437.4) 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 2023 2022 Deferred tax liabilities Property, plant and equipment (excluding unredeemed capital allowances) (659.7) (537.6) Environmental rehabilitation obligation and other funds (76.3) (63.3) Other investments (0.6) (0.9) Gross deferred tax liabilities (736.6) (601.8) Deferred tax assets Environmental rehabilitation obligation 113.9 105.6 Other provisions 1 81.0 49.3 Other temporary differences 2 9.0 4.6 Estimated tax losses 4.8 4.1 Estimated unredeemed capital allowances — 0.8 Gross deferred tax assets 208.7 164.4 Net deferred tax liabilities (527.9) (437.4) 1 Includes the temporary differences on the equity settled share-based payment 2 Includes the temporary differences on the lease liability Deferred tax assets have not been recognised in respect of the following: Amounts in R million 2023 2022 Estimated tax losses 17.2 18.1 Estimated tax losses - Capital nature 313.6 313.6 Unredeemed capital expenditure 252.0 252.0 Deferred tax assets for tax losses, unredeemed capital expenditure and capital losses have not been recognised where future taxable profits against which these can be utilised are not anticipated. These do not have an expiry date. A maximum of R1 million or 80% of assessed losses (whichever is greater) is permitted to be set-off per year against taxable income from fiscal year 2023 onwards. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Classes of employee benefits expense [abstract] | |
Share-based payment expense ELTI scheme | Amounts in R million 2023 2022 2021 Share based payment expense - ELTI scheme 5.3 22.0 18.4 16.0 |
TSR performance in relation to percentiles of peer groups performance | Percentile of peers % of performance shares vesting < 25th percentile 0 % 25th to < 50th percentile 25 % 50th to < 75th percentile 75 % ≥ 75th percentile 100 % Reconciliation of the number of conditional shares 2023 2022 Shares number Weighted average price R per share Shares number Weighted average price R per share Opening balance 7,593,670 7,840,620 Granted October 20, 2021 3,508,232 October 19, 2022 4,922,751 Vested (2,715,604) 11.44 (2,862,654) 14.02 Forfeited (276,579) (892,528) Closing balance 9,524,238 7,593,670 Vesting on 9,524,238 7,593,670 December 2, 2022 — 2,715,604 October 22, 2023 1,588,120 1,666,778 October 20, 2024 3,081,179 3,211,288 October 19, 2025 4,854,939 — |
Monte Carlo simulation pricing model and key inputs | Grant date October 19, 2022 October 20, 2021 October 22, 2020 Vesting date October 19, 2025 October 20, 2024 October 22, 2023 Weighted average fair value of 80% performance shares 1 5.54 7.34 10.49 Weighted average fair value of 20% retention shares 8.60 12.32 18.67 Expected term (years) 3 3 3 Grant date share price of a DRDGOLD share 9.48 13.55 19.43 Expected dividend yield 3.24 % 3.15 % 1.33 % Expected volatility 2 58.00 % 60.20 % 63.07 % Expected risk free rate 8.10 % 5.78 % 3.82 % 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 |
Key management personnel remuneration | Key management personnel remuneration Amounts in R million Note 2023 2022 2021 - Board fees paid 7.6 7.8 7.6 - Salaries paid 82.0 82.5 75.5 - Short term incentives relating to this cycle 83.8 84.1 73.8 - Market value of long-term incentives vested and transferred 19.1 31.1 40.1 — - Long term incentives paid during the cycle — — 183.3 204.5 214.5 340.2 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity [abstract] | |
Stated share capital | Amounts in R million 2023 2022 2021 Authorised share capital 1,500,000,000 (2022 and 2021: 1,500,000,000) ordinary shares of no par value 5,000,000 (2022 and 2021: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 Issued share capital 864,588,711 (2022 and 2021: 864,588,711) ordinary shares of no par value 6,208.4 6,208.4 6,208.4 3,896,663 (2022: 6,612,266; 2021: 9,474,920) treasury shares held within the Group (a) (21.0) (35.6) (51.0) 5,000,000 (2022 and 2021: 5,000,000) cumulative preference shares of 10 cents each 0.5 0.5 0.5 6,187.9 6,173.3 6,157.9 |
Dividends | Amounts in R million 2023 2022 2021 Dividends paid during the year net of treasury shares: Final dividend declared relating to prior year: 40 SA cents per share (2022: 40 SA cents per share; 2021: 35 SA cents per share) 343.2 342.0 299.3 Interim dividend: 20 SA cents per share (2022: 20 SA cents per share; 2021: 40 SA cents per share) 172.1 171.6 342.0 Total 515.3 513.6 641.3 |
OPERATING SGEMENTS (Tables)
OPERATING SGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
Operating segments | Ergo FWGR Other reconciling items Total 2023 Amounts in R million Revenue (External) 4,108.6 1,387.7 — 5,496.3 Cash operating costs (3,183.2) (504.9) — (3,688.1) Movement in gold in process and finished inventories - Gold Bullion (1.8) 12.6 — 10.8 Segment operating profit 923.6 895.4 — 1,819.0 Additions to property, plant and equipment (816.0) (209.8) (5.1) (1,030.9) Reconciliation of segment operating profit to profit after tax Segment operating profit 923.6 895.4 — 1,819.0 Deprecation (120.6) (95.8) (1.1) (217.5) Change in estimate of environmental rehabilitation recognised in profit or loss 6.2 — 0.9 7.1 Ongoing rehabilitation expenditure (24.7) (1.7) (0.4) (26.8) Care and maintenance — — (0.4) (0.4) Other operating costs 3.9 — — 3.9 Other income 0.1 10.2 0.1 10.4 Administration expenses and other costs (8.3) (2.9) (161.7) (172.9) Finance income 34.4 31.8 268.1 334.3 Finance expense (58.7) (9.7) (2.3) (70.7) Current tax (51.1) (201.9) (33.3) (286.3) Deferred tax (73.8) (47.9) 3.0 (118.7) Profit after tax 631.0 577.5 72.9 1,281.4 Reconciliation of cost of sales to cash operating costs Cost of sales (3,320.2) (589.8) (1.0) (3,911.0) Deprecation 120.6 95.8 1.1 217.5 Change in estimate of environmental rehabilitation recognised in profit or loss (6.2) — (0.9) (7.1) Movement in gold in process and finished inventories - Gold Bullion 1.8 (12.6) — (10.8) Ongoing rehabilitation expenditure 24.7 1.7 0.4 26.8 Care and maintenance — — 0.4 0.4 Other operating costs (3.9) — — (3.9) Cash operating costs (3,183.2) (504.9) — (3,688.1) 23 OPERATING SEGMENTS continued Ergo FWGR Other reconciling items Total 2022 Amounts in R million Revenue (External) 3,704.9 1,413.6 — 5,118.5 Cash operating costs (3,009.8) (454.0) — (3,463.8) Movement in gold in process and finished inventories - Gold Bullion 35.2 (4.8) — 30.4 Segment operating profit 730.3 954.8 — 1,685.1 Additions to property, plant and equipment (436.2) (162.2) — (598.4) Reconciliation of segment operating profit to profit after tax Segment operating profit 730.3 954.8 — 1,685.1 Deprecation (134.5) (131.6) (1.5) (267.6) Change in estimate of environmental rehabilitation recognised in profit or loss 2.3 — (0.1) 2.2 Ongoing rehabilitation expenditure (30.1) (1.5) — (31.6) Care and maintenance — — (5.9) (5.9) Other operating costs (4.9) (0.2) (0.1) (5.2) Other income 70.1 21.2 — 91.3 Administration expenses and other costs (7.7) (13.8) (139.7) (161.2) Finance income 22.4 19.0 184.4 225.8 Finance expense (58.8) (10.8) (5.2) (74.8) Current tax (12.9) (237.3) (11.4) (261.6) Deferred tax (45.3) (29.6) 2.2 (72.7) Profit after tax 530.9 570.2 22.7 1,123.8 Reconciliation of cost of sales to cash operating costs Cost of sales (3,141.8) (592.1) (7.6) (3,741.5) Deprecation 134.5 131.6 1.5 267.6 Change in estimate of environmental rehabilitation recognised in profit or loss (2.3) — 0.1 (2.2) Movement in gold in process and finished inventories - Gold Bullion (35.2) 4.8 — (30.4) Ongoing rehabilitation expenditure 30.1 1.5 — 31.6 Care and maintenance — — 5.9 5.9 Other operating costs 4.9 0.2 0.1 5.2 Cash operating costs (3,009.8) (454.0) — (3,463.8) 23 OPERATING SEGMENTS continued Ergo FWGR Other reconciling items Total 2021 Amounts in R million Revenue (External) 3,943.0 1,326.0 — 5,269.0 Cash operating costs (2,666.5) (406.2) — (3,072.7) Movement in gold in process and finished inventories - Gold Bullion (31.9) 6.3 — (25.6) Segment operating profit 1,244.6 926.1 — 2,170.7 Additions to property, plant and equipment (250.9) (143.3) (1.5) (395.7) Reconciliation of segment operating profit to profit after tax Segment operating profit 1,244.6 926.1 — 2,170.7 Deprecation (135.6) (115.6) (1.3) (252.5) Change in estimate of environmental rehabilitation recognised in profit or loss 7.2 — 5.2 12.4 Ongoing rehabilitation expenditure (46.6) (1.7) — (48.3) Care and maintenance — — (3.9) (3.9) Other operating costs 2.4 — — 2.4 Other income 0.1 — — 0.1 Administration expenses and other costs 15.0 1.8 (80.8) (64.0) Finance income 21.0 17.2 178.0 216.2 Finance expense (45.8) (9.8) (13.9) (69.5) Current tax (196.1) (227.6) — (423.7) Deferred tax (66.6) (37.4) 4.0 (100.0) Profit after tax 799.6 553.0 87.3 1,439.9 Reconciliation of cost of sales to cash operating costs Cost of sales (2,871.0) (517.2) — (3,388.2) Deprecation 135.6 115.6 1.3 252.5 Change in estimate of environmental rehabilitation recognised in profit or loss (7.2) — (5.2) (12.4) Movement in gold in process and finished inventories - Gold Bullion 31.9 (6.3) — 25.6 Ongoing rehabilitation expenditure 46.6 1.7 — 48.3 Care and maintenance - - 3.9 3.9 Other operating costs (2.4) — — (2.4) Cash operating costs (2,666.5) (406.2) — (3,072.7) |
PAYMENTS MADE UNDER PROTEST (Ta
PAYMENTS MADE UNDER PROTEST (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Payments Made Under Protest [Abstract] | |
Summary of payments made under protest | Amounts in R million Note 2023 2022 Balance at the beginning of the year 40.4 40.5 Payments made under protest 12.6 15.2 Discount on initial payment made under protest and change in estimate 7 (19.0) (21.1) Unwinding 6 5.7 5.8 Balance at the end of the year 39.7 40.4 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [abstract] | |
Investment in other entities | Amounts in R million Shares held 1 % held 1 2023 2022 Listed investments (Fair value hierarchy Level 1): West Wits Mining Limited ("WWM") 47,812,500 2.1 % 7.2 10.7 Total listed investments 7.2 10.7 Unlisted investments (Fair value hierarchy Level 3): Rand Refinery Proprietary Limited ("Rand Refinery") 44,438 11.3 % 156.3 136.1 Rand Mutual Assurance Company Limited B Share Business Fund ("RMA") 2 12,659 1.3 % 4.9 4.4 Guardrisk Insurance Company Limited (Cell Captive A170) 3 20 100 % 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 42,292 4.5 % 0.1 0.1 Total unlisted investments 161.4 140.7 Balance at the end of the year 168.6 151.4 Fair value adjustment on equity instruments at fair value through OCI 17.2 (15.7) WWM (3.5) (32.8) Rand Refinery 20.2 16.8 RMA 0.5 0.3 Dividends received on equity instruments at fair value through OCI (78.3) (71.5) Rand Refinery (77.4) (70.1) RMA (0.9) (1.4) 1 The number and percentage of shares held remained unchanged from the prior year with the exception of WWM that issued new shares thereby diluting DRDGOLD's effective shareholding from 2.4% to 2.1% 2 The "B Share Business Fund" shares relate to all the businesses of the RMA Group that do not relate to the Compensation for Occupational Injuries and Diseases Act 3 The shares held entitle the holder to 100% of the residual net equity of Cell Captive A 170 |
Disclosure of fair value measurement of assets | Amounts in R million 2023 2022 Balance at the beginning of the year 136.1 119.3 Fair value adjustment on equity investments at fair value through other comprehensive income 20.2 16.8 Balance at the end of the year 156.3 136.1 |
Key observable/unobservable inputs into the model | Other key observable/unobservable inputs into the model include: Amounts in R million Observable/unobservable input Unit 2023 2022 Rand Refinery operations Forecast average gold price Observable input R/kg 1,060,562 880,207 Forecast average silver price Observable input R/kg 13,460 11,209 Average South African CPI Observable input % 4.5 4.4 South African long-term government bond rate Observable input % 10.51 10.26 Terminal growth rate Unobservable input % 4.5 4.4 Weighted average cost of capital Unobservable input % 17.0 15.9 Investment in Prestige Bullion Discount period Unobservable input years 10 11 Cost of equity Unobservable input % 17.0 14.2 |
Sensitivity analysis | The below table indicates the extent of sensitivity of the Rand Refinery equity 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) 2.4 (2.4) Commodity prices (gold and silver) Observable inputs 1 (1) 1.6 (1.6) Operating costs Unobservable inputs 1 (1) (3.4) 3.4 Weighted average cost of capital Unobservable inputs 1 (1) (2.2) 2.2 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) (0.6) 0.6 Prestige Bullion dividend forecast Unobservable inputs 1 (1) 0.2 (0.2) |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Share-based compensation key management personnel explanatory | The number of conditional shares granted includes those granted to directors and prescribed officers as follows: Number of conditional shares Executive directors D J Pretorius 436,959 A J Davel 232,624 Prescribed officers W J Schoeman 232,624 K Mbanyele 29,585 |
ABOUT THESE CONSOLIDATED FINA_3
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS - Narrative (Details) | Jun. 30, 2023 |
Accounting Policies [Abstract] | |
Percentage of ownership interest in DRD Gold group, held by Sibanye Gold Limited | 50.10% |
ABOUT THESE CONSOLIDATED FINA_4
ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS - Functional and presentation currency (Details) - ZAR (R) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Foreign exchange rates [abstract] | |||
Spot rate at year end | 18.83 | 16.27 | 14.27 |
Average prevailing rate for the financial year | 17.76 | 15.21 | 15.40 |
REVENUE - Revenue table (Detail
REVENUE - Revenue table (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue [abstract] | |||
Gold revenue | R 5,489.7 | R 5,110.7 | R 5,263.8 |
Silver revenue | 6.6 | 7.8 | 5.2 |
Total revenue | R 5,496.3 | R 5,118.5 | R 5,269 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | Jun. 30, 2023 |
Commodity price risk | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible change, market risk | 20% |
Currency risk | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible change, market risk | 20% |
REVENUE - Market risk (Details)
REVENUE - Market risk (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commodity price risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | 20% | ||
Commodity price risk | Top of range | |||
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 1,099.3 | R 1,023.7 | R 1,053.8 |
Commodity price risk | Bottom of range | |||
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 (1,099.3) | (1,023.7) | (1,053.8) |
Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of reasonably possible change, market risk | 20% | ||
Currency risk | Top of range | |||
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 1,099.3 | 1,023.7 | 1,053.8 |
Currency risk | Bottom of range | |||
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 (1,099.3) | R (1,023.7) | R (1,053.8) |
RESULTS FROM OPERATING ACTIVI_3
RESULTS FROM OPERATING ACTIVITIES - Cost of sales (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |||
Cost of sales | R (3,911) | R (3,741.5) | R (3,388.2) |
Operation costs | (3,711.4) | (3,506.5) | (3,122.5) |
Movement in gold in process and finished inventories - Gold Bullion | 10.8 | 30.4 | (25.6) |
Deprecation | (217.5) | (267.6) | (252.5) |
Change in estimate of environmental rehabilitation recognised in profit or loss | (7.1) | (2.2) | (12.4) |
The most significant components of operating costs include: | |||
Consumable stores | (1,199.9) | (1,014.9) | (880.2) |
Labour including short term incentives | (663.4) | (649.6) | (598.4) |
Electricity | (544.4) | (547.3) | (488.2) |
Specialist service providers | (633.9) | (610.2) | (510.7) |
Machine hire | (152.3) | (139) | (127.4) |
Security expenses | (153.6) | (133) | (122.8) |
Water | R (61.8) | R (54.2) | R (57.1) |
RESULTS FROM OPERATING ACTIVI_4
RESULTS FROM OPERATING ACTIVITIES - Related party transactions (Details) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 ZAR (R) | Jun. 30, 2022 ZAR (R) | Jun. 30, 2021 ZAR (R) | |
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | R 107.8 | R 105.5 | R 96.7 |
Supply of water and electricity | Sibanye-Stillwater | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | 79.2 | 79.2 | 68.1 |
Gold smelting and related charges | Sibanye-Stillwater | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | 21.1 | 19.1 | 21.1 |
Other charges | Sibanye-Stillwater | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | 0.3 | 0.3 | 0.7 |
Gold refining and related charges | Rand Refinery Proprietary Limited ("Rand Refinery") | |||
Disclosure of transactions between related parties [line items] | |||
Services rendered by related parties and included in operating costs | R 7.2 | R 6.9 | R 6.8 |
Rand Refinery Proprietary Limited ("Rand Refinery") [member] | Sibanye-Stillwater | |||
Disclosure of transactions between related parties [line items] | |||
Percentage of smelting costs included, consideration given | 0.10 |
RESULTS FROM OPERATING ACTIVI_5
RESULTS FROM OPERATING ACTIVITIES - Other Income (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |||
Gain on disposal of property, plant and equipment | R 10.3 | R 6.6 | R 0.1 |
Insurance claim refund | 0 | 84.7 | 0 |
Sundry income | 0.1 | 0 | 0 |
Other income | 10.4 | 91.3 | R 0.1 |
Receipts from claims | R 31.7 | R 53 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Share based payment (expenses)/benefit | R (22) | R (18.4) | R 28.3 |
Cash settled Long-Term Incentive ("CLTI") scheme | 0 | 0 | 44.3 |
Equity settled Long-Term Incentive ("ELTI") scheme | (22) | (18.4) | (16) |
Explorations expenses and transaction costs | (4.6) | (15.2) | (3.1) |
Other costs and administration expenses | (55.8) | (52.8) | (39.7) |
Explorations expenses and transaction costs | R 4.6 | 15.2 | R 3.1 |
Sibanye-Stillwater | |||
Disclosure of transactions between related parties [line items] | |||
Explorations expenses and transaction costs | (8.2) | ||
Explorations expenses and transaction costs | R 8.2 |
FINANCE INCOME (Details)
FINANCE INCOME (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finance Income [Abstract] | |||
Interest on financial assets measured at amortised cost | R 190.2 | R 111.8 | R 108.7 |
Growth in cash and cash equivalents in environmental rehabilitation trust funds | 0 | 14.8 | 22.5 |
Growth in reimbursive right for environmental rehabilitation guarantees | 0 | 1.8 | 3.7 |
Growth in investment in Guardrisk | 50.5 | 13.1 | 0 |
Dividends received | 78.3 | 71.5 | 76.1 |
Unwinding of payments made under protest | 5.7 | 5.8 | 4.8 |
Unrealised foreign exchange gain | 9 | 7 | 0 |
Other finance income | 0.6 | 0 | 0.4 |
Finance income | R 334.3 | R 225.8 | R 216.2 |
FINANCE EXPENSE (Details)
FINANCE EXPENSE (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finance Expense [Abstract] | |||
Interest on financial liabilities measured at amortised cost | R (1.4) | R (2.6) | R (2.3) |
Unwinding of provision for environmental rehabilitation | (46.2) | (45) | (44.7) |
Discount recognised on payments made under protest | (19) | (21.1) | (7.4) |
Interest on lease liabilities | (3.8) | (4.2) | (4.5) |
Unrealised foreign exchange loss | 0 | 0 | (8.4) |
Other finance expenses | (0.3) | (1.9) | (2.2) |
Finance expense | R (70.7) | R (74.8) | R (69.5) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per share [abstract] | |||
Profit for the year | R 1,281.4 | R 1,123.8 | R 1,439.9 |
Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares | |||
Weighted average number of ordinary shares in issue (in shares) | 859,538,847 | 856,760,797 | 855,113,791 |
Effect of equity-settled share-based payment (in shares) | 5,423,357 | 4,203,336 | 5,935,215 |
Dilutive weighted average issued shares (in shares) | 864,962,204 | 860,964,133 | 861,049,006 |
SA cents per share | |||
Basic EPS (in SA cents per share) | R 1.491 | R 1.312 | R 1.684 |
Diluted EPS (in SA cents per share) | R 1.482 | R 1.306 | R 1.672 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Contractual commitments for acquisition of property, plant and equipment | R 1,730.8 | R 235.9 | |
Mine plant facilities and equipment | Bottom of range | Ergo | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 1 year | 2 years | 3 years |
Mine plant facilities and equipment | Bottom of range | FWGR | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 2 years | 2 years | 3 years |
Mine plant facilities and equipment | Top of range | Ergo | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 19 years | 19 years | 13 years |
Mine plant facilities and equipment | Top of range | FWGR | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful lives | 18 years | 20 years | 18 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Property, Plant and Equipment (Details) - ZAR (R) R in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | R 3,084,100 | ||
Additions other than through business combinations, property, plant and equipment | 1,030,900 | R 598,400 | R 395,700 |
Additions - right-of-use assets | 6,100 | 15,900 | |
Lease modifications | (600) | 1,200 | |
Lease derecognitions | (1,200) | 0 | |
Closing balance | 3,909,500 | 3,084,100 | |
Purchase of property, plant and equipment, classified as investing activities | 1,145,200 | 584,100 | 395,700 |
Property, plant and equipment owned | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 3,036,400 | ||
Closing balance | 3,874,700 | 3,036,400 | |
Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 47,700 | ||
Closing balance | 34,800 | 47,700 | |
Mine plant facilities and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,716,900 | ||
Closing balance | 1,792,900 | 1,716,900 | |
Mine plant facilities and equipment | Property, plant and equipment owned | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,698,700 | ||
Closing balance | 1,783,200 | 1,698,700 | |
Mine plant facilities and equipment | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 18,200 | ||
Closing balance | 9,700 | 18,200 | |
Mine property and development | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,362,700 | ||
Closing balance | 1,612,100 | 1,362,700 | |
Mine property and development | Property, plant and equipment owned | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 1,333,200 | ||
Closing balance | 1,587,000 | 1,333,200 | |
Mine property and development | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 29,500 | ||
Closing balance | 25,100 | 29,500 | |
Exploration assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 4,500 | ||
Closing balance | 6,500 | 4,500 | |
Exploration assets | Property, plant and equipment owned | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 4,500 | ||
Closing balance | 6,500 | 4,500 | |
Exploration assets | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | ||
Closing balance | 0 | 0 | |
Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | ||
Closing balance | 498,000 | 0 | |
Capital work in progress | Property, plant and equipment owned | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | ||
Closing balance | 498,000 | 0 | |
Capital work in progress | Right-of-use assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | ||
Closing balance | 0 | 0 | |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 5,167,700 | 4,868,800 | |
Additions other than through business combinations, property, plant and equipment | 1,022,600 | 598,400 | |
Additions - right-of-use assets | 6,100 | 15,900 | |
Lease modifications | (600) | 1,200 | |
Lease derecognitions | (5,000) | (1,600) | |
Disposals and scrapping | (6,800) | (247,800) | |
Change in estimate of decommissioning asset | 20,400 | (67,200) | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | 6,204,400 | 5,167,700 | 4,868,800 |
Purchase of property, plant and equipment, classified as investing activities | 959,700 | ||
Cost | Mine plant facilities and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 2,733,900 | 2,604,300 | |
Additions other than through business combinations, property, plant and equipment | 157,500 | 291,400 | |
Additions - right-of-use assets | 0 | 6,000 | |
Lease modifications | (600) | 0 | |
Lease derecognitions | (4,200) | (1,600) | |
Disposals and scrapping | (6,600) | (185,300) | |
Change in estimate of decommissioning asset | 21,600 | (46,300) | |
Transfers between classes of property, plant and equipment | 65,400 | ||
Closing balance | 2,901,600 | 2,733,900 | 2,604,300 |
Cost | Mine property and development | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 2,419,600 | 2,154,000 | |
Additions other than through business combinations, property, plant and equipment | 365,100 | 301,200 | |
Additions - right-of-use assets | 6,100 | 9,900 | |
Lease modifications | 0 | 1,200 | |
Lease derecognitions | (800) | 0 | |
Disposals and scrapping | (200) | (61,600) | |
Change in estimate of decommissioning asset | (1,200) | (20,900) | |
Transfers between classes of property, plant and equipment | 35,800 | ||
Closing balance | 2,788,600 | 2,419,600 | 2,154,000 |
Cost | Exploration assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 14,200 | 110,500 | |
Additions other than through business combinations, property, plant and equipment | 2,000 | 5,800 | |
Additions - right-of-use assets | 0 | 0 | |
Lease modifications | 0 | 0 | |
Lease derecognitions | 0 | 0 | |
Disposals and scrapping | 0 | (900) | |
Change in estimate of decommissioning asset | 0 | 0 | |
Transfers between classes of property, plant and equipment | (101,200) | ||
Closing balance | 16,200 | 14,200 | 110,500 |
Cost | Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | 0 | |
Additions other than through business combinations, property, plant and equipment | 498,000 | 0 | |
Additions - right-of-use assets | 0 | 0 | |
Lease modifications | 0 | 0 | |
Lease derecognitions | 0 | 0 | |
Disposals and scrapping | 0 | 0 | |
Change in estimate of decommissioning asset | 0 | 0 | |
Transfers between classes of property, plant and equipment | 0 | ||
Closing balance | 498,000 | 0 | 0 |
Accumulated depreciation and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (2,083,600) | (2,059,100) | |
Depreciation | (217,500) | (267,600) | |
Lease derecognitions | 4,000 | 1,600 | |
Disposals and scrapping | 2,200 | 241,500 | |
Closing balance | (2,294,900) | (2,083,600) | (2,059,100) |
Accumulated depreciation and impairment | Mine plant facilities and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (1,017,000) | (1,074,000) | |
Depreciation | (97,900) | (125,100) | |
Lease derecognitions | 4,000 | 1,600 | |
Disposals and scrapping | 2,200 | 180,500 | |
Closing balance | (1,108,700) | (1,017,000) | (1,074,000) |
Accumulated depreciation and impairment | Mine property and development | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (1,056,900) | (975,400) | |
Depreciation | (119,600) | (142,500) | |
Lease derecognitions | 0 | 0 | |
Disposals and scrapping | 0 | 61,000 | |
Closing balance | (1,176,500) | (1,056,900) | (975,400) |
Accumulated depreciation and impairment | Exploration assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | (9,700) | (9,700) | |
Depreciation | 0 | 0 | |
Lease derecognitions | 0 | 0 | |
Disposals and scrapping | 0 | 0 | |
Closing balance | (9,700) | (9,700) | (9,700) |
Accumulated depreciation and impairment | Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Opening balance | 0 | 0 | |
Depreciation | 0 | 0 | |
Lease derecognitions | 0 | 0 | |
Disposals and scrapping | 0 | 0 | |
Closing balance | R 0 | R 0 | R 0 |
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, 2023 | Jun. 30, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | R 47.7 | |
Additions | 6.1 | R 15.9 |
Lease modifications | (0.6) | 1.2 |
Lease derecognitions | (1.2) | 0 |
Closing balance | 34.8 | 47.7 |
Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 89.6 | 74.1 |
Additions | 6.1 | 15.9 |
Lease modifications | (0.6) | 1.2 |
Lease derecognitions | (5) | (1.6) |
Closing balance | 90.1 | 89.6 |
Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | (41.9) | (25) |
Depreciation | (17.4) | (18.5) |
Lease derecognitions | 4 | 1.6 |
Closing balance | (55.3) | (41.9) |
Mine plant facilities and equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 18.2 | |
Closing balance | 9.7 | 18.2 |
Mine plant facilities and equipment | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 31.2 | 26.8 |
Additions | 0 | 6 |
Lease modifications | (0.6) | 0 |
Lease derecognitions | (4.2) | (1.6) |
Closing balance | 26.4 | 31.2 |
Mine plant facilities and equipment | Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | (13) | (6.2) |
Depreciation | (7.7) | (8.4) |
Lease derecognitions | 4 | 1.6 |
Closing balance | (16.7) | (13) |
Mine property and development | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 29.5 | |
Closing balance | 25.1 | 29.5 |
Mine property and development | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | 58.4 | 47.3 |
Additions | 6.1 | 9.9 |
Lease modifications | 0 | 1.2 |
Lease derecognitions | (0.8) | 0 |
Closing balance | 63.7 | 58.4 |
Mine property and development | Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Opening balance | (28.9) | (18.8) |
Depreciation | (9.7) | (10.1) |
Lease derecognitions | 0 | 0 |
Closing balance | R (38.6) | R (28.9) |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease Liabilities [Line Items] | |||
Balance at the beginning of the year | R 52.3 | R 54.8 | |
New leases | 6.1 | 15.9 | |
Lease modifications | (0.6) | 1.2 | |
Lease derecognitions | (1.2) | 0 | |
Interest charge on lease liabilities | 3.8 | 4.2 | R 4.5 |
Repayment of lease liabilities | (16.9) | (19.7) | (11.6) |
Interest repaid | (3.8) | (4.1) | |
Balance at the end of the year | 39.7 | 52.3 | R 54.8 |
Current portion of lease liabilities | (11.3) | (19.5) | |
Non-current portion of lease liabilities | 28.4 | 32.8 | |
Maturity analysis of undiscounted contractual cash flows: | |||
Undiscounted lease liabilities | 50 | 59.6 | |
Lease payments not recognised as a liability but expensed during the year: | |||
Short-term leases | (6.4) | (2.5) | |
Leases of low value assets | (9.7) | (8.6) | |
Cash flows included in cash generated from operating activities | (16.1) | (11.1) | |
Less than a year | |||
Maturity analysis of undiscounted contractual cash flows: | |||
Undiscounted lease liabilities | 16.7 | 22.4 | |
One to five years | |||
Maturity analysis of undiscounted contractual cash flows: | |||
Undiscounted lease liabilities | 24.8 | 35.1 | |
More than five years | |||
Maturity analysis of undiscounted contractual cash flows: | |||
Undiscounted lease liabilities | R 8.5 | R 2.1 |
PROVISION FOR ENVIRONMENTAL R_3
PROVISION FOR ENVIRONMENTAL REHABILITATION - Narrative (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | ||
Discount rate, minimum | 10.80% | 10.20% |
Discount rate, maximum | 11.10% | 10.30% |
Inflation rate used in calculation of net present value of rehabilitation liability | 5.70% | 5.50% |
Undiscounted rehabilitation cost | R 897.8 | R 815.1 |
PROVISION FOR ENVIRONMENTAL R_4
PROVISION FOR ENVIRONMENTAL REHABILITATION - Decommissioning Restoration and Rehabilitation Costs (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of other provisions [line items] | |||
Opening balance | R 517.7 | R 570.8 | |
Unwinding of provision | 46.2 | 45 | R 44.7 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (7.1) | (2.2) | (12.4) |
Change in estimate of environmental rehabilitation recognised to decommissioning asset | 20.4 | (67.2) | |
Environmental rehabilitation payments to reduce the liability | (15.1) | (28.7) | |
Closing balance | 562.1 | 517.7 | R 570.8 |
Ongoing rehabilitation expenditure | (26.8) | (31.6) | |
Total cash spent on environmental rehabilitation | (41.9) | (60.3) | |
To reduce decommissioning liabilities | |||
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments to reduce the liability | (13.8) | (25.4) | |
To reduce restoration liabilities | |||
Disclosure of other provisions [line items] | |||
Environmental rehabilitation payments to reduce the liability | R (1.3) | R (3.3) |
INVESTMENTS IN REHABILITATION_3
INVESTMENTS IN REHABILITATION AND OTHER FUNDS - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of investments in rehabilitation obligation funds | ||
Rehabilitation trust transferred | R 0 | R 579.5 |
Percentage of reasonably possible change, interest rate risk | 1% | |
Guardrisk guarantees in issue | ||
Disclosure of investments in rehabilitation obligation funds | ||
Estimated financial effect of contingent liabilities | R 951.8 | R 614 |
INVESTMENTS IN REHABILITATION_4
INVESTMENTS IN REHABILITATION AND OTHER FUNDS - Environmental obligations (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in investments in rehabilitation obligation funds movement [abstract] | |||
Cash and cash equivalents in environmental rehabilitation trust funds | R 0 | R 0 | R 564.7 |
Opening balance | 0 | 564.7 | |
Transfer to Investment in Guardrisk Cell Captive | 0 | (579.5) | |
Growth | 0 | 14.8 | |
Reimbursive right for environmental rehabilitation guarantees | 0 | 0 | 87.5 |
Opening balance | 0 | 87.5 | |
Lapsing of old environmental rehabilitation policy retained in Guardrisk Cell Captive | 0 | (89.3) | |
Growth | 0 | 1.8 | |
Investment in Guardrisk Cell Captive | 789.7 | 710.8 | 0 |
Opening balance | 710.8 | 0 | |
Transfer to Guardrisk cell captive | 0 | 668.8 | |
Contributions | 28.4 | 28.9 | |
Growth | 50.5 | 13.1 | R 0 |
Investments in rehabilitation and other funds | 789.7 | 710.8 | |
Environmental rehabilitation | |||
Changes in investments in rehabilitation obligation funds movement [abstract] | |||
Investments in rehabilitation and other funds | 630.6 | 589.8 | |
Directors’ and Officers’ insurance | |||
Changes in investments in rehabilitation obligation funds movement [abstract] | |||
Investments in rehabilitation and other funds | 61.3 | 29.5 | |
Other funds | |||
Changes in investments in rehabilitation obligation funds movement [abstract] | |||
Investments in rehabilitation and other funds | R 97.8 | R 91.5 |
INVESTMENTS IN REHABILITATION_5
INVESTMENTS IN REHABILITATION AND OTHER FUNDS - Market Risk (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of reasonably possible change, interest rate risk | 1% | |
Interest rate risk | Investments in Obligation Fund | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
100bp increase | R 7.9 | R 7.1 |
100bp (decrease) | R (7.9) | R (7.1) |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of Cash, Cash Equivalents and Short Term Investments (Details) - ZAR (R) R in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of financial assets [line items] | ||||
Cash on hand | R 131.3 | R 113.2 | ||
Access deposits and income funds | 2,328.7 | 2,401.7 | ||
Restricted cash | 11.4 | 10.7 | ||
Cash and cash equivalents | 2,471.4 | 2,525.6 | R 2,180 | R 1,715.1 |
Interest earned on cash and cash equivalents | 190.2 | R 111.8 | R 108.7 | |
Environmental rehabilitation | ||||
Disclosure of financial assets [line items] | ||||
Restricted cash | 5.2 | |||
Various utilities | ||||
Disclosure of financial assets [line items] | ||||
Restricted cash | R 5.1 | |||
Top of range | ||||
Disclosure of financial assets [line items] | ||||
Effective annual yields | 9.49% | |||
Bottom of range | ||||
Disclosure of financial assets [line items] | ||||
Effective annual yields | 8.80% |
CASH AND CASH EQUIVALENTS - Mar
CASH AND CASH EQUIVALENTS - Market Risks (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Nature and extent of market risks | ||
Percentage of reasonably possible change, interest rate risk | 1% | |
Interest rate risk | Cash and cash equivalents | ||
Nature and extent of market risks | ||
100bp increase | R 25 | R 23.5 |
100bp (decrease) | R (25) | R (23.5) |
CASH AND CASH EQUIVALENTS - For
CASH AND CASH EQUIVALENTS - Foreign Denominated Cash (Details) R in Millions, $ in Millions | Jun. 30, 2023 ZAR (R) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 ZAR (R) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 ZAR (R) | Jun. 30, 2020 ZAR (R) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Foreign denominated cash | R | R 2,471.4 | R 2,525.6 | R 2,180 | R 1,715.1 | ||
Currency risk | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Percentage of reasonably possible increase decrease in foreign exchange | 10% | 10% | ||||
Foreign denominated | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Foreign denominated cash | $ | $ 3.7 | $ 3.4 |
CASH AND CASH EQUIVALENTS - M_2
CASH AND CASH EQUIVALENTS - Market Risks Changes (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Strengthening of the Rand against the US Dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increased/(decreased) equity and profit/(loss) | R (7) | R (5.5) |
Weakening of the Rand against the US Dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increased/(decreased) equity and profit/(loss) | R 7 | R 5.5 |
CASH GENERATED FROM OPERATION_2
CASH GENERATED FROM OPERATIONS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from (used in) operating activities [abstract] | |||
Profit for the year | R 1,281.4 | R 1,123.8 | R 1,439.9 |
Adjusted for: | |||
Income tax | 405 | 334.3 | 523.7 |
Depreciation | 217.5 | 267.6 | 252.5 |
Movement in gold in process and finished inventories - Gold Bullion | (10.8) | (30.4) | 25.6 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (7.1) | (2.2) | (12.4) |
Environmental rehabilitation payments to reduce the restoration liabilities | (1.3) | (3.3) | (5.8) |
Share based payment expense | 22 | 18.4 | (28.3) |
Gain on disposal of property, plant and equipment | (10.3) | (6.6) | (0.1) |
Insurance claim received/(receivable) | 31.7 | (31.7) | 0 |
Finance income | (334.3) | (225.8) | (216.2) |
Finance expense | 70.7 | 74.8 | 69.5 |
Other non-cash items | 0 | 3.8 | (2.5) |
Operating cash flows before working capital changes | 1,664.5 | 1,522.7 | 2,045.9 |
Changes in: | 44.2 | 62.9 | (194.9) |
Trade and other receivables | 19.9 | 25.7 | 6.9 |
Inventories | (13.6) | (18.9) | (44.7) |
Payment made under protest | (12.6) | (15.2) | (8.1) |
Trade and other payables and employee benefits | 50.5 | 71.3 | (149) |
Cash generated from operations | R 1,708.7 | R 1,585.6 | R 1,851 |
TRADE AND OTHER RECEIVABLES - N
TRADE AND OTHER RECEIVABLES - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [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 years counterparties transacting with group | 5 years |
TRADE AND OTHER RECEIVABLES - D
TRADE AND OTHER RECEIVABLES - Disclosure of trade and other receivables (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Value Added Tax | R 56.6 | R 75.1 | |
Other receivables | 33.8 | 57.4 | |
Prepayments | 199.1 | 19.2 | |
Allowance for impairment | R (1.2) | ||
Total trade and other receivables | 288.6 | 149.5 | |
Insurance claim receivable | R 31.7 | ||
Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Prepayments | R 185.5 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Other receivables | R 33.8 | R 57.4 | |
Loss allowance | R (1.2) | ||
Non-credit impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Other receivables | 32.9 | 55.2 | |
Loss allowance | 0 | 0 | |
Credit impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Other receivables | 0.9 | 2.2 | |
Loss allowance | R (0.9) | R (2.2) |
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, 2023 | Jun. 30, 2022 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Opening balance | R (1.2) | |
Credit loss allowance/impairments recognised included in operating costs | R (2) | (1.1) |
Credit loss allowance/impairments reversed included in operating costs | 0.6 | 0.1 |
Credit loss allowance written off against related receivable | R 2.7 | R 0 |
TRADE AND OTHER PAYABLES - Trad
TRADE AND OTHER PAYABLES - Trade and other payables (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Trade and other payables [abstract] | ||
Trade payables and accruals | R 525.1 | R 429.1 |
VAT payable | 0.3 | 0.2 |
Provision for leave | 56.8 | 55.7 |
Accrual for short term performance based incentives | 89.8 | 87.5 |
Payroll creditors | 28.5 | 25.9 |
Total trade and other current payables | 700.5 | 598.4 |
Interest relating to trade payables and accruals included in profit or loss | R (1.1) | R (1.8) |
TRADE AND OTHER PAYABLES - Rela
TRADE AND OTHER PAYABLES - Related party balances (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Sibanye-Stillwater | ||
Outstanding balances for related party transactions [abstract] | ||
Trade payables and accruals include the following amounts payable to related parties: | R 16.5 | R 25.8 |
Rand Refinery Proprietary Limited ("Rand Refinery") | ||
Outstanding balances for related party transactions [abstract] | ||
Trade payables and accruals include the following amounts payable to related parties: | R 0.3 | R 0 |
INVENTORIES (Details)
INVENTORIES (Details) - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Classes of current inventories [abstract] | ||
Consumable stores | R 232.7 | R 197.5 |
Ore stockpiles | 30.2 | 51.9 |
Gold in process | 67.9 | 75.1 |
Finished inventories - Gold Bullion | 82.8 | 64.8 |
Total inventories | 413.6 | 389.3 |
Inventory carried at net realisable value includes: | ||
Gold in process | 0 | 8.5 |
Finished inventories - Gold Bullion | 0 | 7.9 |
Write down to net realisable value included in movement in gold in process and finished stock | R 0 | R (2.7) |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Increase (decrease) in deferred tax liability (asset) | R 22.8 | R 18.7 | R 14.2 |
Applicable tax rate | 27% | 28% | |
Depreciation of property, plant and equipment exempt from deferred tax on initial recognition | R 16.3 | R 22.2 | 21.2 |
Discount recognised on payments made under protest | 19 | 21.1 | 7.4 |
Expenditure not incurred in generation of taxable income | 14.5 | 17.8 | 17 |
Dividends recognised for investments in equity instruments designated at fair value through other comprehensive income, held at end of reporting period | 78.3 | 71.5 | 76.1 |
Unwinding of payments made under protest | 5.7 | R 5.8 | R 4.8 |
Maximum assessed losses permitted to be set-off against taxable income | R 1 | ||
Percentange of assessed losses permitted to be set-off against taxable income | 80% | ||
Ergo | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 22% | 22% | 25% |
Net operating cost, non deductible for tax | R 0 | R 5.8 | R 0 |
Net operating income non taxable | R 2.5 | R 0 | R 1 |
FWGR | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Forecast weighted average deferred tax rate | 29% | 29% | 30% |
Depreciation of property, plant and equipment exempt from deferred tax on initial recognition | R 54.9 | R 72.1 | R 68.7 |
INCOME TAX - Components of tax
INCOME TAX - Components of tax expense or income including tax reconciliation and unrecognised tax (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Major components of tax expense (income) [abstract] | |||
Current tax | R (286.3) | R (261.6) | R (423.7) |
Mining tax | (253) | (250.2) | (423.7) |
Non-Mining, company and capital gains tax | (33.3) | (11.4) | 0 |
Deferred tax | (118.7) | (72.7) | (100) |
Deferred tax charge - Mining tax | (121.6) | (119.9) | (104) |
Deferred tax charge - Non-mining, company and capital gains tax | 2.9 | 1.6 | (19.1) |
Deferred tax rate adjustment | 0 | 45.6 | 0 |
Recognition of previously unrecognised income losses | 0 | 0.4 | 7.8 |
Recognition of previously unrecognised capital losses | 0 | 0 | (1.2) |
Recognition of previously unrecognised temporary differences | 0 | (0.4) | 16.5 |
Income tax | (405) | (334.3) | (523.7) |
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 27% (2022 and 2021: 28%) | (455.3) | (408.3) | (549.9) |
Rate adjustment to reflect the actual realised company tax rates applying the gold mining formula | 47.6 | 36.4 | 3.7 |
Deferred tax rate adjustment | 0 | 45.6 | 0 |
Depreciation of property, plant and equipment exempt from deferred tax on initial recognition | (16.3) | (22.2) | (21.2) |
Non-deductible expenses | (7) | (7.3) | (6.2) |
Exempt income and other non-taxable income | 21.8 | 19 | 22.8 |
Recognition of previously unrecognised temporary differences | 0 | (0.4) | 16.5 |
Recognition of previously unrecognised capital losses | 0 | 0 | (1.2) |
Recognition of previously unrecognised income losses | 0 | 0.4 | 7.8 |
Over provided in prior periods | (2) | 0 | 0 |
Current year losses for which no deferred tax asset was recognised | 0.4 | (1.4) | (0.1) |
Other | (0.1) | 3.6 | 3.3 |
Tax incentives | 1.9 | 0.3 | 0.8 |
Income tax | R (405) | R (334.3) | R (523.7) |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax assets and liabilities (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax asset | R 32.8 | R 14.5 | |
Deferred tax liabilities | (560.7) | (451.9) | |
Net deferred tax liabilities | R (527.9) | R (437.4) | R (371.3) |
INCOME TAX - Movements in net d
INCOME TAX - Movements in net deferred tax liability (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Balance at the beginning of the year | R (437.4) | R (371.3) | |
Recognised in profit or loss | (118.7) | (72.7) | R (100) |
Recognised in equity | 27.5 | 0 | |
Balance at the end of the year | R (527.9) | R (437.4) | R (371.3) |
INCOME TAX - Detailed component
INCOME TAX - Detailed components of the net deferred tax assets and liabilities (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | R (736.6) | R (601.8) | |
Deferred tax assets | 208.7 | 164.4 | |
Net deferred tax liabilities | (527.9) | (437.4) | R (371.3) |
Property, plant and equipment (excluding unredeemed capital allowances) | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (659.7) | (537.6) | |
Environmental rehabilitation obligation and other funds | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (76.3) | (63.3) | |
Deferred tax assets | 113.9 | 105.6 | |
Other investments | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (0.6) | (0.9) | |
Other provisions | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 81 | 49.3 | |
Other temporary differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 9 | 4.6 | |
Estimated tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4.8 | 4.1 | |
Estimated unredeemed capital allowances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | R 0 | R 0.8 |
INCOME TAX - Deferred tax ass_2
INCOME TAX - Deferred tax assets have not been recognised (Details) - ZAR (R) R in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Estimated tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | R 17.2 | R 18.1 |
Estimated tax losses - Capital nature | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | 313.6 | 313.6 |
Unredeemed capital expenditure | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets have not been recognised | R 252 | R 252 |
EMPLOYEE BENEFITS - Share-based
EMPLOYEE BENEFITS - Share-based payment expense ELTI scheme (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Classes of employee benefits expense [abstract] | |||
Share based payment expense - ELTI scheme | R 22 | R 18.4 | R 16 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of performance shares of the total conditional shares awarded | 80% |
Percentage of retention shares of the total conditional shares awarded | 20% |
Percentage of retention share condition on continuous employment vesting date | 100% |
Hurdle rate | 15% |
Percentage of performance shares linked to condition of hurdle rate | 50% |
Percentage of performance shares linked to condition of peer group performance | 50% |
Conditional shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period of shares | 3 years |
EMPLOYEE BENEFITS - Percentage
EMPLOYEE BENEFITS - Percentage of performance shares vesting (Details) | Jun. 30, 2023 |
Percentile of peers | |
Less than 25th percentile | 0% |
From 25th to 50th percentile | 25% |
From 50th to 75th percentile | 75% |
More than 75th percentile | 100% |
EMPLOYEE BENEFITS - Movement in
EMPLOYEE BENEFITS - Movement in the number of conditional shares (Details) - Conditional shares | 12 Months Ended | |
Jun. 30, 2023 shares R / shares | Jun. 30, 2022 shares R / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding in share-based payment arrangement at the beginning of the year (in shares) | 7,593,670 | 7,840,620 |
Conditional shares granted (in shares) | 4,922,751 | 3,508,232 |
Weighted average price (R per share) | R / shares | 11.44 | 14.02 |
Conditional shares forfeited (in shares) | (276,579) | (892,528) |
Number of share options outstanding in share-based payment arrangement at the end of the year (in shares) | 9,524,238 | 7,593,670 |
December 2, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding in share-based payment arrangement at the beginning of the year (in shares) | 2,715,604 | |
Number of share options outstanding in share-based payment arrangement at the end of the year (in shares) | 0 | 2,715,604 |
October 22, 2023 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding in share-based payment arrangement at the beginning of the year (in shares) | 1,666,778 | |
Number of share options outstanding in share-based payment arrangement at the end of the year (in shares) | 1,588,120 | 1,666,778 |
October 20, 2024 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding in share-based payment arrangement at the beginning of the year (in shares) | 3,211,288 | |
Number of share options outstanding in share-based payment arrangement at the end of the year (in shares) | 3,081,179 | 3,211,288 |
October 19, 2025 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding in share-based payment arrangement at the beginning of the year (in shares) | 0 | |
Number of share options outstanding in share-based payment arrangement at the end of the year (in shares) | 4,854,939 | 0 |
EMPLOYEE BENEFITS - Monte Carlo
EMPLOYEE BENEFITS - Monte Carlo simulation pricing model (Details) - Forecast | Oct. 19, 2025 yr R / shares | Oct. 20, 2024 yr R / shares | Oct. 26, 2023 yr R / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average fair value of 80% performance shares (in ZAR per share) | R 5.54 | R 7.34 | R 10.49 |
Weighted average fair value of 20% retention shares (in ZAR per share) | R 8.6 | R 12.32 | R 18.67 |
Expected term (years) | yr | 3 | 3 | 3 |
Grant date share price of a DRDGOLD share | R 9.48 | R 13.55 | R 19.43 |
Expected dividend yield | 3.24% | 3.15% | 1.33% |
Expected volatility | 58% | 60.20% | 63.07% |
Expected risk free rate | 8.10% | 5.78% | 3.82% |
EMPLOYEE BENEFITS - Key managem
EMPLOYEE BENEFITS - Key management personnel remuneration (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Key management personnel remuneration [abstract] | |||
- Board fees paid | R 7.6 | R 7.8 | R 7.6 |
- Salaries paid | 82 | 82.5 | 75.5 |
- Short term incentives relating to this cycle | 83.8 | 84.1 | 73.8 |
- Market value of long-term incentives vested and transferred | 31.1 | 40.1 | 0 |
- Long term incentives paid during the cycle | 0 | 0 | 183.3 |
Total short term compensation | R 204.5 | R 214.5 | R 340.2 |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) | Jun. 30, 2023 |
Top of range | |
Disclosure of objectives, policies and processes for managing capital [line items] | |
Debt ratio | 0.5 |
Bottom of range | |
Disclosure of objectives, policies and processes for managing capital [line items] | |
Interest coverage ratio | 0.25 |
EQUITY - Stated share capital (
EQUITY - Stated share capital (Details) - ZAR (R) R / shares in Units, R in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Issued share capital | |||
Issued share capital | R 6,187.9 | R 6,173.3 | R 6,157.9 |
Ordinary shares | |||
Authorised share capital | |||
Authorised share capital (in shares) | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 |
Value per share (in ZAR cents per share) | R 0 | R 0 | R 0 |
Issued share capital | |||
Issued share capital (in shares) | 864,588,711 | 864,588,711 | 864,588,711 |
Value per share (in ZAR cents per share) | R 0 | R 0 | R 0 |
Issued share capital | R 6,208.4 | R 6,208.4 | R 6,208.4 |
Preference shares | |||
Authorised share capital | |||
Authorised share capital (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Value per share (in ZAR cents per share) | R 0.10 | R 0.10 | R 0.10 |
Authorised share capital value | R 0.5 | R 0.5 | R 0.5 |
Issued share capital | |||
Issued share capital (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Value per share (in ZAR cents per share) | R 0.10 | R 0.10 | R 0.10 |
Issued share capital | R 0.5 | R 0.5 | R 0.5 |
Treasury shares | |||
Issued share capital | |||
Issued share capital (in shares) | 3,896,663 | 6,612,266 | 9,474,920 |
Treasury shares | R (21) | R (35.6) | R (51) |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | 12 Months Ended | |||
Aug. 23, 2023 R / shares | Jun. 30, 2023 ZAR (R) vote R / shares shares | Jun. 30, 2022 ZAR (R) shares | Jun. 30, 2021 ZAR (R) shares | |
Disclosure of classes of share capital [line items] | ||||
Number of votes | vote | 1 | |||
Ergo Mining Operations Proprietary Limited | Treasury shares | ||||
Disclosure of classes of share capital [line items] | ||||
Treasury shares acquired (in shares) | shares | 0 | 0 | 0 | |
Number of shares sold or disposed of (in shares) | shares | 2,715,604 | 2,862,654 | 0 | |
Proceeds from sale or issue of treasury shares | R 0 | R 0 | R 0 | |
Average cost of the treasury shares | R 14,600,000 | R 15,400,000 | R 0 | |
Major ordinary share transactions | ||||
Disclosure of classes of share capital [line items] | ||||
Dividend per share approved by directors (in ZAR cents per share) | R / shares | R 0.65 | R 0.65 | ||
Amount of dividends approved by directors | R 559,400,000 |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [abstract] | |||
Prior year final dividend (SA cents per share) | R 0.40 | R 0.40 | R 0.35 |
Final dividend declared relating to prior year | R 343.2 | R 342 | R 299.3 |
Interim dividend (SA cents per share) | R 0.20 | R 0.20 | R 0.40 |
Interim dividend | R 172.1 | R 171.6 | R 342 |
Dividends recognised as distributions to owners | R 515.3 | R 513.6 | R 641.3 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |||
Revenue (External) | R 5,496.3 | R 5,118.5 | R 5,269 |
Cash operating costs | (3,688.1) | (3,463.8) | (3,072.7) |
Movement in gold in process and finished inventories - Gold Bullion | 10.8 | 30.4 | (25.6) |
Segment operating profit | 1,819 | 1,685.1 | 2,170.7 |
Additions to property, plant and equipment | (1,030.9) | (598.4) | (395.7) |
Segment operating profit | 1,819 | 1,685.1 | 2,170.7 |
Deprecation | (217.5) | (267.6) | (252.5) |
Change in estimate of environmental rehabilitation recognised in profit or loss | 7.1 | 2.2 | 12.4 |
Ongoing rehabilitation expenditure | (26.8) | (31.6) | (48.3) |
Care and maintenance | (0.4) | (5.9) | (3.9) |
Other operating costs | 3.9 | (5.2) | 2.4 |
Other income | 10.4 | 91.3 | 0.1 |
Administration expenses and other costs | (172.9) | (161.2) | (64) |
Finance income | 334.3 | 225.8 | 216.2 |
Finance expense | (70.7) | (74.8) | (69.5) |
Current tax | (286.3) | (261.6) | (423.7) |
Deferred tax | (118.7) | (72.7) | (100) |
Profit for the year | 1,281.4 | 1,123.8 | 1,439.9 |
Reconciliation of cost of sales to cash operating costs | |||
Cost of sales | (3,911) | (3,741.5) | (3,388.2) |
Deprecation | 217.5 | 267.6 | 252.5 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (7.1) | (2.2) | (12.4) |
Movement in gold in process and finished inventories - Gold Bullion | (10.8) | (30.4) | 25.6 |
Ongoing rehabilitation expenditure | 26.8 | 31.6 | 48.3 |
Care and maintenance | 0.4 | 5.9 | 3.9 |
Other operating costs | (3.9) | 5.2 | (2.4) |
Cash operating costs | (3,688.1) | (3,463.8) | (3,072.7) |
Operating segments | Ergo | |||
Disclosure of operating segments [line items] | |||
Revenue (External) | 4,108.6 | 3,704.9 | 3,943 |
Cash operating costs | (3,183.2) | (3,009.8) | (2,666.5) |
Movement in gold in process and finished inventories - Gold Bullion | (1.8) | 35.2 | (31.9) |
Segment operating profit | 923.6 | 730.3 | 1,244.6 |
Additions to property, plant and equipment | (816) | (436.2) | (250.9) |
Segment operating profit | 923.6 | 730.3 | 1,244.6 |
Deprecation | (120.6) | (134.5) | (135.6) |
Change in estimate of environmental rehabilitation recognised in profit or loss | 6.2 | 2.3 | 7.2 |
Ongoing rehabilitation expenditure | (24.7) | (30.1) | (46.6) |
Care and maintenance | 0 | 0 | 0 |
Other operating costs | 3.9 | (4.9) | 2.4 |
Other income | 0.1 | 70.1 | 0.1 |
Administration expenses and other costs | (8.3) | (7.7) | 15 |
Finance income | 34.4 | 22.4 | 21 |
Finance expense | (58.7) | (58.8) | (45.8) |
Current tax | (51.1) | (12.9) | (196.1) |
Deferred tax | (73.8) | (45.3) | (66.6) |
Profit for the year | 631 | 530.9 | 799.6 |
Reconciliation of cost of sales to cash operating costs | |||
Cost of sales | (3,320.2) | (3,141.8) | (2,871) |
Deprecation | 120.6 | 134.5 | 135.6 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (6.2) | (2.3) | (7.2) |
Movement in gold in process and finished inventories - Gold Bullion | 1.8 | (35.2) | 31.9 |
Ongoing rehabilitation expenditure | 24.7 | 30.1 | 46.6 |
Care and maintenance | 0 | 0 | 0 |
Other operating costs | (3.9) | 4.9 | (2.4) |
Cash operating costs | (3,183.2) | (3,009.8) | (2,666.5) |
Operating segments | FWGR | |||
Disclosure of operating segments [line items] | |||
Revenue (External) | 1,387.7 | 1,413.6 | 1,326 |
Cash operating costs | (504.9) | (454) | (406.2) |
Movement in gold in process and finished inventories - Gold Bullion | 12.6 | (4.8) | 6.3 |
Segment operating profit | 895.4 | 954.8 | 926.1 |
Additions to property, plant and equipment | (209.8) | (162.2) | (143.3) |
Segment operating profit | 895.4 | 954.8 | 926.1 |
Deprecation | (95.8) | (131.6) | (115.6) |
Change in estimate of environmental rehabilitation recognised in profit or loss | 0 | 0 | 0 |
Ongoing rehabilitation expenditure | (1.7) | (1.5) | (1.7) |
Care and maintenance | 0 | 0 | 0 |
Other operating costs | 0 | (0.2) | 0 |
Other income | 10.2 | 21.2 | 0 |
Administration expenses and other costs | (2.9) | (13.8) | 1.8 |
Finance income | 31.8 | 19 | 17.2 |
Finance expense | (9.7) | (10.8) | (9.8) |
Current tax | (201.9) | (237.3) | (227.6) |
Deferred tax | (47.9) | (29.6) | (37.4) |
Profit for the year | 577.5 | 570.2 | 553 |
Reconciliation of cost of sales to cash operating costs | |||
Cost of sales | (589.8) | (592.1) | (517.2) |
Deprecation | 95.8 | 131.6 | 115.6 |
Change in estimate of environmental rehabilitation recognised in profit or loss | 0 | 0 | 0 |
Movement in gold in process and finished inventories - Gold Bullion | (12.6) | 4.8 | (6.3) |
Ongoing rehabilitation expenditure | 1.7 | 1.5 | 1.7 |
Care and maintenance | 0 | 0 | 0 |
Other operating costs | 0 | 0.2 | 0 |
Cash operating costs | (504.9) | (454) | (406.2) |
Other reconciling items | |||
Disclosure of operating segments [line items] | |||
Revenue (External) | 0 | 0 | 0 |
Cash operating costs | 0 | 0 | 0 |
Movement in gold in process and finished inventories - Gold Bullion | 0 | 0 | 0 |
Segment operating profit | 0 | 0 | 0 |
Additions to property, plant and equipment | (5.1) | 0 | (1.5) |
Segment operating profit | 0 | 0 | 0 |
Deprecation | (1.1) | (1.5) | (1.3) |
Change in estimate of environmental rehabilitation recognised in profit or loss | 0.9 | (0.1) | 5.2 |
Ongoing rehabilitation expenditure | (0.4) | 0 | 0 |
Care and maintenance | (0.4) | (5.9) | (3.9) |
Other operating costs | 0 | (0.1) | 0 |
Other income | 0.1 | 0 | 0 |
Administration expenses and other costs | (161.7) | (139.7) | (80.8) |
Finance income | 268.1 | 184.4 | 178 |
Finance expense | (2.3) | (5.2) | (13.9) |
Current tax | (33.3) | (11.4) | 0 |
Deferred tax | 3 | 2.2 | 4 |
Profit for the year | 72.9 | 22.7 | 87.3 |
Reconciliation of cost of sales to cash operating costs | |||
Cost of sales | (1) | (7.6) | 0 |
Deprecation | 1.1 | 1.5 | 1.3 |
Change in estimate of environmental rehabilitation recognised in profit or loss | (0.9) | 0.1 | (5.2) |
Movement in gold in process and finished inventories - Gold Bullion | 0 | 0 | 0 |
Ongoing rehabilitation expenditure | 0.4 | 0 | 0 |
Care and maintenance | 0.4 | 5.9 | 3.9 |
Other operating costs | 0 | 0.1 | 0 |
Cash operating costs | R 0 | R 0 | R 0 |
PAYMENTS MADE UNDER PROTEST - S
PAYMENTS MADE UNDER PROTEST - Summary of payments made under protest (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other assets details [abstract] | |||
Balance at the beginning of the year | R 40.4 | R 40.5 | |
Payments made under protest | 12.6 | 15.2 | |
Discount on initial payment made under protest and change in estimate | (19) | (21.1) | R (7.4) |
Unwinding | 5.7 | 5.8 | 4.8 |
Balance at the end of the year | R 39.7 | R 40.4 | R 40.5 |
PAYMENTS MADE UNDER PROTEST - N
PAYMENTS MADE UNDER PROTEST - Narrative (Details) R in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 respondent | Jun. 30, 2023 ZAR (R) summons legalProceeding | Jun. 30, 2022 | |
Disclosure of contingent liabilities [line items] | |||
Number of legal proceedings | legalProceeding | 3 | ||
Number of summonses issued | summons | 2 | ||
Number of respondents against whom Ergo does not seek any relief | respondent | 4 | ||
Municipality interest rate on borrowings | 15.30% | 11.80% | |
Discount period | June 30, 2028 | June 30, 2027 | |
Summon, first | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R 74 | ||
Summon, second | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R 31.6 |
OTHER INVESTMENTS - Narratives
OTHER INVESTMENTS - Narratives (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [table] | ||
Marketability unobservable inputs rate | 15.30% | 16.50% |
Minority discounts unobservable input rate | 17% | 17% |
Rand Refinery Proprietary Limited ("Rand Refinery") | Level 3 of fair value hierarchy [member] | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [table] | ||
Percentage of interest held | 11.30% |
OTHER INVESTMENTS - Investments
OTHER INVESTMENTS - Investments in other entities (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | R 168.6 | R 151.4 | |
Fair value adjustment on equity instruments at fair value through OCI | 17.2 | (15.7) | R (28.2) |
Dividends received on equity instruments at fair value through OCI | (78.3) | (71.5) | R (76.1) |
Listed investments (Fair value hierarchy Level 1) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | 7.2 | 10.7 | |
Unlisted investments (Fair value hierarchy Level 3) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Investments in other entities | 161.4 | 140.7 | |
West Wits Mining Limited ("WWM") | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Fair value adjustment on equity instruments at fair value through OCI | R (3.5) | (32.8) | |
West Wits Mining Limited ("WWM") | Listed investments (Fair value hierarchy Level 1) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Shares held in other entities (in shares) | 47,812,500 | ||
Investments in other entities | R 7.2 | 10.7 | |
West Wits Mining Limited ("WWM") | Listed investments (Fair value hierarchy Level 1) | Top of range | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Percentage of interest held | 2.40% | ||
West Wits Mining Limited ("WWM") | Listed investments (Fair value hierarchy Level 1) | Bottom of range | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Percentage of interest held | 2.10% | ||
Rand Refinery Proprietary Limited ("Rand Refinery") | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Dividends received on equity instruments at fair value through OCI | R (77.4) | (70.1) | |
Rand Refinery Proprietary Limited ("Rand Refinery") | At fair value | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Fair value adjustment on equity instruments at fair value through OCI | R 20.2 | 16.8 | |
Rand Refinery Proprietary Limited ("Rand Refinery") | Unlisted investments (Fair value hierarchy Level 3) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Shares held in other entities (in shares) | 44,438 | ||
Percentage of interest held | 11.30% | ||
Investments in other entities | R 156.3 | 136.1 | |
Rand Mutual Assurance Company Limited | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Fair value adjustment on equity instruments at fair value through OCI | 0.5 | 0.3 | |
Dividends received on equity instruments at fair value through OCI | R (0.9) | (1.4) | |
Rand Mutual Assurance Company Limited | Unlisted investments (Fair value hierarchy Level 3) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Shares held in other entities (in shares) | 12,659 | ||
Percentage of interest held | 1.30% | ||
Investments in other entities | R 4.9 | 4.4 | |
Guardrisk Insurance Company Limited (Cell Captive A170) | Unlisted investments (Fair value hierarchy Level 3) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Shares held in other entities (in shares) | 20 | ||
Percentage of interest held | 100% | ||
Investments in other entities | R 0.1 | 0.1 | |
Chamber of Mines Building Company Proprietary Limited | Unlisted investments (Fair value hierarchy Level 3) | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Shares held in other entities (in shares) | 42,292 | ||
Percentage of interest held | 4.50% | ||
Investments in other entities | R 0.1 | R 0.1 |
OTHER INVESTMENTS - Fair value
OTHER INVESTMENTS - Fair value of investments (Details) - At fair value - Rand Refinery Proprietary Limited ("Rand Refinery") - ZAR (R) R in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of fair value measurement of assets [line items] | ||
Balance at the beginning of the year | R 136.1 | R 119.3 |
Fair value adjustment on equity investments at fair value through other comprehensive income | 20.2 | 16.8 |
Balance at the end of the year | R 156.3 | R 136.1 |
OTHER INVESTMENTS - Key observa
OTHER INVESTMENTS - Key observable/unobservable inputs (Details) - R / kg | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Rand Refinery Proprietary Limited ("Rand Refinery") | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Forecast average gold price | 1,060,562 | 880,207 |
Forecast average silver price | 13,460 | 11,209 |
Average South African CPI | 4.50% | 4.40% |
South African long-term government bond rate | 10.51% | 10.26% |
Terminal growth rate | Rand Refinery Proprietary Limited ("Rand Refinery") | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Significant unobservable input, investments in other entities, percentage | 0.045 | 0.044 |
Weighted average cost of capital | Rand Refinery Proprietary Limited ("Rand Refinery") | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Significant unobservable input, investments in other entities, percentage | 0.170 | 0.159 |
Discount period | Investment in Prestige Bullion | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Significant unobservable input, investments in other entities, years | 10 years | 11 years |
Cost of equity | Investment in Prestige Bullion | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Significant unobservable input, investments in other entities, percentage | 0.170 | 0.142 |
OTHER INVESTMENTS - Sensitivity
OTHER INVESTMENTS - Sensitivity analysis (Details) | Jun. 30, 2023 |
Rand Refinery Proprietary Limited ("Rand Refinery") | |
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% |
Rand US Dollar exchange rate, decrease | (1.00%) |
Rand US Dollar exchange rate in OCI net of tax, increase | 2.40% |
Rand US Dollar exchange rate in OCI net of tax, decrease | 2.40% |
Commodity prices (gold and silver), increase | 1% |
Commodity prices (gold and silver), decrease | (1.00%) |
Commodity prices (gold and silver) increase, OCI net of tax | 1.60% |
Commodity prices (gold and silver) decrease, OCI net of tax | 1.60% |
Operating costs | Rand Refinery Proprietary Limited ("Rand Refinery") | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
Decrease in unobservable input | (1.00%) |
% Change OCI, net of tax, increase | (3.40%) |
% Change OCI, net of tax, decrease | 3.40% |
Weighted average cost of capital | Rand Refinery Proprietary Limited ("Rand Refinery") | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
Decrease in unobservable input | (1.00%) |
% Change OCI, net of tax, increase | (2.20%) |
% Change OCI, net of tax, decrease | 2.20% |
Minority discount | Rand Refinery Proprietary Limited ("Rand Refinery") | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
Decrease in unobservable input | (1.00%) |
% Change OCI, net of tax, increase | (1.20%) |
% Change OCI, net of tax, decrease | 1.20% |
Marketability discount | Rand Refinery Proprietary Limited ("Rand Refinery") | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
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 | Investment in Prestige Bullion | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
Decrease in unobservable input | (1.00%) |
% Change OCI, net of tax, increase | (0.60%) |
% Change OCI, net of tax, decrease | 0.60% |
Prestige Bullion dividend forecast | Investment in Prestige Bullion | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |
Increase in unobservable input | 1% |
Decrease in unobservable input | (1.00%) |
% Change OCI, net of tax, increase | 0.20% |
% Change OCI, net of tax, decrease | (0.20%) |
CONTINGENCIES (Details)
CONTINGENCIES (Details) l in Millions, R in Millions | 12 Months Ended |
Jun. 30, 2023 ZAR (R) summons l | |
Disclosure of contingent liabilities [line items] | |
Number of summonses issued | summons | 2 |
Environmental contamination | |
Disclosure of contingent liabilities [line items] | |
Estimated financial effect of contingent liabilities | R 250 |
Agreement to purchase Mega litres of partially treated AMD | l | 30 |
Summon, first | |
Disclosure of contingent liabilities [line items] | |
Estimated financial effect of contingent liabilities | R 74 |
Summon, second | |
Disclosure of contingent liabilities [line items] | |
Estimated financial effect of contingent liabilities | 31.6 |
Ekurhuleni Metropolitan Municipality Electricity Tariff Dispute | |
Disclosure of contingent liabilities [line items] | |
Estimated financial effect of contingent assets | R 43 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | |||||
Sep. 18, 2023 | Aug. 23, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 25, 2023 | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Dividends recognised as distributions to owners | R 515.3 | R 513.6 | R 641.3 | |||
Major ordinary share transactions | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Dividend per share approved by directors (in ZAR cents per share) | R 0.65 | R 0.65 | ||||
Dividends recognised as distributions to owners | R 559.4 | |||||
Major ordinary share transactions | Conditional shares | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Issued share capital (in shares) | 2,955,805 |
SUBSEQUENT EVENTS - Share-based
SUBSEQUENT EVENTS - Share-based compensation key management personnel explanatory (Details) - Major ordinary share transactions - Conditional shares | Oct. 25, 2023 shares |
Disclosure of non-adjusting events after reporting period [line items] | |
Conditional shares granted (in shares) | 2,955,805 |
D J Pretorius | |
Disclosure of non-adjusting events after reporting period [line items] | |
Conditional shares granted (in shares) | 436,959 |
A J Davel | |
Disclosure of non-adjusting events after reporting period [line items] | |
Conditional shares granted (in shares) | 232,624 |
W J Schoeman | |
Disclosure of non-adjusting events after reporting period [line items] | |
Conditional shares granted (in shares) | 232,624 |
K Mbanyele | |
Disclosure of non-adjusting events after reporting period [line items] | |
Conditional shares granted (in shares) | 29,585 |