Annual financial statements statement 2015
Supplement to the integrated annual report 30 June 2015
MENU

GROUP FINANCIALS STATEMENTS

MENU Notes to the consolidated financial statements — for the year ended 30 June 2015

  1. Accounting policies
  2. Segment information
  3. Property, plant and equipment
  4. Exploration and evaluation assets
  5. Investment in equity-accounted entities
  6. Deferred tax
  7. Other financial assets
  8. Derivative financial instrument
  9. Prepayments
  10. Inventories
  11. Trade and other receivables
  12. Cash and cash equivalents
  13. Share capital
  14. Non-controlling interest
  15. Borrowings
  16. Other financial liabilities
  17. Sundry liabilities
  18. Provisions
  19. Trade and other payables
  20. Financial instruments and financial risk management
  21. Current tax
  22. Revenue
  23. Cost of sales
  24. Other operating income
  25. Other operating expenses
  26. Impairment
  27. Royalty (income)/expense
  28. Finance income
  29. Finance cost
  30. Other income
  31. Other expenses
  32. Income tax expense
  33. Earnings per share
  34. Dividends
  35. Cash generated from operations
  36. Contingent liabilities and guarantees
  37. Related-party transactions

18.  

Provisions  
      2015   2014  
      Rm   Rm  
 

Provision for environmental rehabilitation

      
  Beginning of the year     676   768  
  Change in estimate – rehabilitation asset     110   (115) 
  Change in estimate – other operating income (note 24)    (20)  (44) 
  Interest accrued (note 29)    65   64  
  Utilised – rehabilitation done     (8)  (8) 
  Exchange adjustment     25   11  
  End of the year     848   676  
  The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Group recognises management’s best estimate for asset retirement obligations in the period in which they are incurred. Actual costs incurred in future periods can differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life-of-mine estimates and discount rates can affect the carrying amount of this provision.        
  Estimated long-term environmental provisions, comprising pollution control, rehabilitation and mine closure, are based on the Group’s environmental policy taking into account current technological, environmental and regulatory requirements.        
  Provisions for future rehabilitation costs have been determined, based on calculations
which require the use of estimates. The current rehabilitation cost estimate is R1 433
(2014: R1 199) million. Cash flows relating to rehabilitation costs will occur at the end
of the life of the individual items to be rehabilitated.  

      
 

South African operations

      
  The discount rate is the long-term risk-free rate as indicated by the government bonds which ranged between 8.3% and 9.0% (2014: 8.2% and 9.0%) at the time of calculation. The net present value of current rehabilitation estimates is based on the assumption of a long-term real discount rate of 2.4% (2014: 2.3%).  

      
 

Zimbabwe operations

      
  The discount rate used was 7.3% (2014: 7.2%) at the time of calculation. The net present value of current rehabilitation estimates is based on the assumption of a long-term real discount rate of 5.2% (2014: 5.1%).        
  The investment in the Impala Pollution Control, Rehabilitation and Closure Trust Fund comprises the following:        
  Cash and cash equivalents (note 12)    153   144  
  Held-to-maturity financial assets (note 7)    38   35  
  Available-for-sale financial assets (note 7)    23   22  
  End of the year     214   201  
         
  Guarantees, an insurance policy and the funds in the Impala Pollution Control, Rehabilitation and Closure Trust Fund are available to the Department of Mineral Resources to satisfy the requirements of the Mineral and Petroleum Resources Development Act with respect to environmental rehabilitation (note 36).  

 

Pollution Control, Rehabilitation and Closure Trust Fund

  
  When contributions are made to a trust fund, created in accordance with statutory requirements, to provide for the estimated cost of rehabilitation during and at the end of the life of the Group’s mines, income earned on monies paid to the trust is accounted for as investment income. The trust investments are included under held-to-maturity assets, available-for-sale assets, and cash equivalents.  
  The Group has control over the trust and the special purpose entity is consolidated in the Group.