Inventories

12 Months Ended

Jun. 30, 2024

21	Inventories


	2024	2023
for the year ended 30 June	Rm	Rm
Carrying value
Crude oil and other raw materials	5 624	5 622
Process material	2 865	3 220
Maintenance materials	7 754	6 889
Work in progress	3 012	2 614
Manufactured products	21 104	23 658
Consignment inventory	360	202
	40 719	42 205

A net realisable value write-down of R370 million was recognised in 2024 (2023 – R948 million).

Inventory of R2 248 million (2023 – R7 739 million) is held at net realisable value. This relates mainly to manufactured products.

Accounting policies:

Inventories are stated at the lower of cost and net realisable value. Cost includes expenditure incurred in acquiring, manufacturing and transporting the inventory to its present location. Manufacturing costs include an allocated portion of production overheads which are directly attributable to the cost of manufacturing such inventory. The allocation is determined based on the greater of normal production capacity and actual production. The costs attributable to any inefficiencies in the production process are charged to the income statement as incurred.

By-products are incidental to the manufacturing processes, are usually produced as a consequence of the main product stream, and are immaterial to the Group. Revenue from sale of by-products is offset against the cost of the main products.

Cost is determined as follows:


Crude oil and other raw materials	First-in-first-out valuation method (FIFO)
Process, maintenance and other materials	Weighted average purchase price
Work-in-progress	Manufacturing costs incurred
Manufactured products including consignment inventory	Manufacturing costs according to FIFO