Lease Liabilities

12 Months Ended

Dec. 31, 2020


		UNITED STATES DOLLAR
		2020			2019
33.	LEASE LIABILITIES
	Balance at the beginning of the year (201 8: finance lease liabilities)		332.9			88.6
	Leases recognised on adoption of IFRS 16 3		—			209.6
	Additions during the year 1		127.2			67.3
	Remeasurements of leases during the year 2		12.8			5.9
	Interest expense		22.4			18.6
	Repayments		(86.8	)		(56.9	)
	Translation adjustment		20.5			(0.2	)

	Balance at the end of the year		429.0			332.9
	Current portion of lease liability		(64.2	)		(45.2	)

	Non-current portion of lease liability		364.8			287.7

	Lease liabilities are payable as follows:
	Future minimum lease payments
	- within one year		88.4			63.9
	- later than one and not later than five years		228.7			178.2
	- later than five years		261.2			205.3

	Total		578.3			447.4

	Interest
	- within one year		24.2			18.7
	- later than one and not later than five years		71.5			55.2
	- later than five years		53.6			40.6

	Total		149.3			114.5

	Present value of minimum lease payments
	- within one year		64.2			45.2
	- later than one and not later than five years		157.2			123.0
	- later than five years		207.6			164.7

	Total		429.0			332.9

1	The additions in 2020 relate mainly to additional assets in terms of the power purchase agreements at Tarkwa, Agnew and Granny Smith (2019: Gas fired power plant and solar farm portion of the power purchase agreement at Agnew).

2	The remeasurements in 2020 and 2019 relate mainly to leases at the Group’s Australian operations that have variable payments linked to the Australian consumer price index (“CPI”).

3	The Group applied IFRS 16 Leases from 1 January 2019 using the modified retrospective approach. Accordingly, the comparative information presented for 2018 was not restated.

On transition to IFRS 16, the Group elected to recognise the right-of-use assets at an amount equal to the lease liability at 1 January 2019 and applied the following practical expedients:

•

Relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review. There were no onerous contracts as at 1 January 2019; and

•

Accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases.

On transition to IFRS 16, the Group recognised additional right-of-use assets and lease liabilities amounting to US$209.6 million.