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INVESTMENTS IN REHABILITATION OBLIGATION FUNDS | 12 Months Ended
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Jun. 30, 2021
Investments in rehabilitation obligation funds [Abstract] |
Investments in rehabilitation obligation funds | 12 INVESTMENTS IN REHABILITATION OBLIGATION FUNDS ACCOUNTING POLICIES Cash and cash equivalents in environmental rehabilitation trusts Cash and cash equivalents included in environmental rehabilitation trusts comprise low-risk, interest-bearing cash and cash equivalents and are non-derivative financial assets categorised as financial assets measured at amortised cost. Cash and cash equivalents are initially measured at fair value. Subsequent to initial recognition, cash and cash equivalents are measured at amortised cost, which is equivalent to their fair value. The cash and cash equivalents in environmental rehabilitation trusts are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets. Reimbursive right for environmental rehabilitation guarantees Funds held in the cell captive that secure the environmental rehabilitation guarantees issued are recognised as a right to receive a reimbursement and are measured at the lower of the amount of the consolidated environmental rehabilitation liability recognised and the consolidated fair value of the fund assets. Changes in the carrying value of the fund assets, other than those resulting from contributions and payments, are recognised in finance income. The funds held in the cell captive are for the sole use of material future environmental rehabilitation payments and are therefore included in non-current assets Funding of environmental rehabilitation activities (refer note 11) Environmental rehabilitation payments to reduce the environmental rehabilitation obligations and ongoing rehabilitation expenditure are mostly funded by cash generated from operations. Guardrisk Insurance Company Limited (" Guardrisk ") has guarantees in issue amounting to R 430.1 million (2020: R 427.3 million) to the Department of Mineral Resources and Energy (" DMRE ") on behalf of DRDGOLD related to the environmental obligations. The funds in the cell captive serve as collateral for these guarantees. Amounts in R million Note 2021 2020 Cash and cash equivalents in environmental rehabilitation trust funds 564.7 542.2 Opening balance 542.2 508.9 Growth 6 22.5 33.3 Reimbursive right for environmental rehabilitation guarantees 87.5 83.8 Opening balance 83.8 78.6 Growth 6 3.7 5.2 652.2 626.0 CREDIT RISK The Group is exposed to credit risk on the total carrying value of the investments held in the environmental rehabilitation trust funds. The Group manages its exposure to credit risk by diversifying these investments across a number of major financial institutions, as well as investing funds in low-risk, interest-bearing cash and cash equivalents. MARKET RISK Interest rate risk A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular the balance of the funds, remain constant. The analysis excludes income tax. Amounts in R million 2021 2020 100 bp increase 5.6 5.4 100bp (decrease) (5.6) (5.4) FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of the cash and cash equivalents in the environmental rehabilitation trust funds approximate their carrying value due to their short-term maturities.

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- Definition The disclosure of investments other than investments accounted for using the equity method. [Refer: Investments other than investments accounted for using equity method] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2020-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard -URIDate 2020-01-01 + Details
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