Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Assumptions Used in Group's Impairment Assessments (FVLCOD calculations)

Significant assumptions used in the Group’s impairment assessments (FVLCOD calculations) include:


	2019			2018
US$ Gold price per ounce – year 1	US$	1,500		US$	1,200
US$ Gold price per ounce – year 2 and 3	US$	1,400		US$	1,300
US$ Gold price per ounce – year 4 onwards	US$	1,350		US$	1,300
Rand Gold price per kilogram – year 1	R	700,000		R	525,000
Rand Gold price per kilogram – year 2 and 3	R	650,000		R	550,000
Rand Gold price per kilogram – year 4 onwards	R	630,000		R	550,000
A$ Gold price per ounce – year 1	A$	2,150		A$	1,600
A$ Gold price per ounce – year 2 and 3	A$	1,970		A$	1,700
A$ Gold price per ounce – year 4 onwards	A$	1,850		A$	1,700
US$ Copper price per tonne – year 1	US$	5,730		US$	5,951
US$ Copper price per tonne – year 2 and 3	US$	6,612		US$	6,612
US$ Copper price per tonne – year 4 onwards	US$	6,612		US$	6,612
Resource value per ounce (used to calculate the value beyond proved and probable reserves)
• South Africa (with infrastructure)	US$	16		US$	17
• Ghana (with infrastructure)	US$	70		US$	44
• Peru (with infrastructure)	US$	34		US$	70
• Australia (with infrastructure)	US$	77		US$	28
Discount rates
• South Africa – nominal		14.1	%		13.5	%
• Ghana – real		8.5	%		9.5	%
• Peru – real		5.0	%		4.9	%
• Australia – real		3.5	%		3.4	%
Inflation rate – South Africa1		5.3	%		5.5	%
Life-of-mine
• South Deep		75 years			75 years
• Tarkwa		14 years			14 years
• Damang		6 years			7 years
• Cerro Corona		13 years			12 years
• St Ives		9 years			7 years
• Agnew		4 years			4 years
• Granny Smith		13 years			12 years
• Gruyere		11 years			12 years
Long-term exchange rates
US$/ZAR – year 1		14.50			13.61
US$/ZAR – year 2 onwards		14.50			13.16
A$/US$ – year 1		0.70			0.75
A$/US$ – year 2 and 3		0.71			0.76
A$/US$ – year 4 onwards		0.73			0.76

Due to the availability of unredeemed capital for tax purposes over several years into the life of the South Deep mine, nominal cash flows are used for South Africa. In order to determine nominal cash flows in South Africa, costs are inflated by the current South African inflation rate. Cash flows for all other operations are in real terms and as a result are not inflated.