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EMPLOYEE BENEFITS | 12 Months Ended
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Jun. 30, 2020
Employee benefits [Abstract] |
Employee benefits | ACCOUNTING POLICIES Cash settled share-based payments (“outgoing l ong-t erm i ncentive) Cash settled share-based payments are measured at fair value and remeasured at each reporting date to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment in profit or loss. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations. Equity settled share-based payments (“new l ong-t erm i ncentive) The grant date fair value of equity settled share-based payment arrangements is recognised as a n 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 amo unt ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at vesting date. Post-retirement medical benefit The Group's net obligation in respect of long-term employee benefits is the amou nt of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine the present value. Remeasurements are recognised in profit or loss in the period in which they arise.
| Amounts in R million | Note | 2020 | 2019
| Non-current employee benefits |  | 10.1 | 37.4
| Liability for long-term incentive scheme | 19.1 | - | 28.4
| Liability for post-retirement medical benefits1 |  | 10.1 | 9.0
| Current employee benefits |  | 227.6 | 22.6
| Liability for long-term incentive scheme | 19.1 | 227.6 | 22.6
| Total employee benefits |  | 237.7 | 60.0
| 1 Unfunded medical aid benefit plan |  |  |
19.1 CASH SETTLED LONG-TERM INCENTIVE SCHEME (“outgoing LTI scheme”) Terms of the November 2015 grant made under the DRDGOLD Group's outgoing LTI scheme are: • The scheme has a finite term of 5 years and thus no top-up awards are made when the shares vest; • The phantom shares are issued at a n exercise price of nil and will vest in 3 tranches: 20%, 30% and 50% on the 3rd, 4th and 5th anniversaries respectively, subject to individual service and performance conditions being met; and • The phantom shares will be settled at the 7 day volume weighted average price ("VWAP") of the DRDGOLD share.
| Amounts in R million |  |  | Note | 2020 | 2019
| Movements in the total liability for long-term incentive scheme is as follows: |  |  |
| Opening balance |  |  |  | 51.0 | 45.1
| Increase in long-term incentive liability |  | 5.3 | 218.1 | 21.4
| Vested and paid |  |  |  | (41.5) | (15.5)
| Total liability for long-term incentive scheme |  | 227.6 | 51.0
| The total liability for long-term incentive scheme is expected to be settled as follows: | 227.6 | 51.0
| Within 12 months after reporting date | 227.6 | 22.6
| After 12 months after reporting date | - | 28.4
| Reconciliation of outstanding phantom shares | 2020 | 2019
|  | Weighted |  | Weighted
|  | average |  | average
| Shares | price | Shares | price
| Number | R per share | Number | R per share
| Opening balance |  | 16,157,058 |  | 20,189,467 |
| Granted |  | - | - | 388,547 | 3.37
| Vested and paid |  | (5,674,252) | 7.31 | (4,037,883) | 3.82
| Forfeited |  | (637,168) | 7.08 | (383,073) | 4.37
| Closing balance |  | 9,845,638 |  | 16,157,058 |
19 EMPLOYEE BENEFITS continued 19.1 CASH SETTLED LONG-TERM INCENTIVE SCHEME (“outgoing LTI scheme”) continued Fair value The fair value of the liability for the long-term incentive scheme is mostly influenced by the DRDGOLD Limited share price. Other inputs influencing the fair value are the forward dividend yield and estimates of staff retention and performance conditions. The inputs most significantly influencing the mea surement of the fair values are as follows:
|  |  |  |  | 2020 | 2019 | Grant date
| 7-day VWAP of the DRDGOLD Limited share |  | 25.14 | 4.37 | 2.26
| Annualised forward dividend yield |  | 1.0% | 4.3% | 4.3%
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 condit ional 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 first grant was made on December 2, 2019 and will vest in two tranches, 50% on the 2nd anniversary and the remaining 50% on the 3rd anniversary of the grant date respectively, provided the employee is still within the employ ment of the Group until the respective vesting dates. The key conditions of the December 2019 grant made under the long-term incen tive scheme are: Retention shares: 100% of the retention shares will vest if the employee remains in the employ of the Company at vesting date and individual performance criteria are met. Performance shares: Total shareholder’s r eturn (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 o ver the vesting period TSR measured against a peer group of 3 peers (Sibanye-Stillwater, Harmony 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%
| Movement in the number of conditional shares for the reporting period are as follows:
| Conditional shares
| Grant date | December 2, 2019
| Vesting date | Total | December 2, 2021 | December 2, 2022
| Opening balance | - | - | -
| Granted | 5,860,760 | 2,930,380 | 2,930,380
| Closing balance | 5,860,760 | 2,930,380 | 2,930,380
19 EMPLOYEE BENEFITS continued 19.2 EQUITY-SETTLED LONG-TERM INCENTIVE SCHEME continued 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:
| Conditional shares
| Grant date | December 2, 2019
| Vesting date | December 2, 2021 | December 2, 2022
| Weighted average fair value of 80% performance shares 1 | 4.26 | 4.12
| Weighted average fair value of 20% retention shares | 5.69 | 5.49
| Expected term (years) | 2 | 3
| Grant date share price of a DRDGOLD share | 6.15 | 6.15
| Expected dividend yield | 3.86% | 3.81%
| Expected volatility 2 | 53.80% | 53.80%
| Expected risk free rate | 6.68% | 6.80%
| 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
19.3 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL Inte rests 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 June 30, 2020 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 o fficer 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 | 2020 | 2019 | 2018
| - Board fees paid |  | 6.2 | 5.8 | 5.6
| - Salaries paid |  | 67.3 | 61.7 | 53.6
| - Short term incentives relating to this cycle |  | 63.6 | 31.5 | 22.5
| - Long term incentives paid during the cycle | 19.1 | 41.5 | 15.5 | 2.8
| - Retrenchments |  | - | 1.6 | -
|  |  | 178.6 | 116.1 | 84.5

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- Definition Employee benefits. + References No definition available. + Details
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- Definition The entire disclosure for employee benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IAS19_g2-7_TI -URIDate 2019-03-27 + Details
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