XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.21.2

OPERATING SGEMENTS | 12 Months Ended
--- | ---
Jun. 30, 2021
Operating Segments [abstract] |
Operating segments | 23 OPERATING SEGMENTS ACCOUNTING POLICIES Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker (CODM) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been identified as the Group’s Executive Committee. The Group has one material revenue stream, the sale of gold. To identify operating segments, management reviewed various factors, including operational structure and mining infrastructure. It was determined that an operating segment consists of a single or multiple metallurgical plants and reclamation sites that, together with its tailings storage facility, is capable of operating independently. When assessing profitability, the CODM considers, inter alia , the revenue and cash operating costs of each segment. The net of these amounts is the segment operating profit or loss. Therefore, segment operating profit has been disclosed in the segment report as the primary measure of profit or loss. The CODM also considers other costs that, in addition to the segment operating profit or loss, result in the segment working profit or loss (before and after property, plant and equipment additions). Ergo is a surface gold retreatment operation which treats old slime dams and sand dumps to the south of Johannesburg’s central business district as well as the East and Central Rand goldfields. The operation comprises three plants. The Ergo and Knights plants continue to operate as metallurgical plants. The City Deep plant continues to operate as a pump/milling station feeding the metallurgical plants. FWGR is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields. Phase 1, which entails the reconfiguration of the Driefontein 2 plant and relevant infrastructure to process tailings from the Driefontein 5 slimes dam and deposit residues on the Driefontein 4 Tailings Storage Facility, was commissioned on 1 April 2019. Corporate office and other reconciling items (collectively referred to as "Other reconciling items" ) are taken into consideration in the strategic decision-making process of the chief operating decision maker and are therefore included in the disclosure here, even though they do not earn revenue. This includes taking into consideration the Group’s adjusted EBITDA for the purpose of the covenants imposed by the Company’s borrowings that was initially entered into to finance the development of Phase 1 of FWGR and working capital requirements of the Group (refer note 20). Other 2021 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 3,943.0 1,326.0 - 5,269.0 Cash operating costs (2,666.5) (406.2) - (3,072.7) Movement in gold in process and finished inventories - Gold Bullion (31.9) 6.3 - (25.6) Segment operating profit 1,244.6 926.1 - 2,170.7 Administration expenses and other costs 15.0 1.8 (80.8) (64.0) Interest income 1 1.3 0.1 107.7 109.1 Dividends received 7.1 - 69.0 76.1 Interest expense 2 (4.2) (0.3) (12.9) (17.4) Current tax (196.1) (227.6) - (423.7) Working profit before additions to property, plant and equipment 1,067.7 700.1 83.0 1,850.8 Additions to property, plant and equipment (250.9) (143.3) (1.5) (395.7) Working profit after additions to property, plant and equipment 816.8 556.8 81.5 1,455.1 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest and unwinding of provision for environmental rehabilitation Reconciliation of cost of sales to cash operating costs Cost of sales (2,871.0) (517.2) - (3,388.2) - Depreciation 135.6 115.6 1.3 252.5 - Change in estimate of environmental rehabilitation recognised in profit or loss (7.2) - (5.2) (12.4) - Movement in gold in process and finished inventories - gold Bullion 31.9 (6.3) - 25.6 - Ongoing rehabilitation expenditure 46.6 1.7 - 48.3 - Care and maintenance - - 3.9 3.9 - Other operating income/(costs) (2.4) - - (2.4) Cash operating costs (2,666.5) (406.2) - (3,072.7) Reconciliation of profit for the year to working profit before additions to property, plant and equipment Profit for the year 751.7 528.8 159.4 1,439.9 - Deferred tax 66.6 37.4 (4.0) 100.0 - Net other operating costs/(income) 45.4 24.2 (68.1) 1.5 - Ongoing rehabilitation expenditure 46.6 1.7 - 48.3 - Discount recognised on Payments made under protest including subsequent unwinding 2.6 - - 2.6 - Unwinding of provision for environmental rehabilitation 34.2 9.5 1.0 44.7 - Growth in investment in environmental obligation funds (7.7) (17.1) (1.4) (26.2) - Other income (0.1) - - (0.1) - Change in estimate of environmental rehabilitation recognised in profit or loss (7.2) - (5.2) (12.4) - Depreciation 135.6 115.6 1.3 252.5 Working profit before additions to property, plant and equipment 1,067.7 700.1 83.0 1,850.8 Statement of cash flows Cash inflows from operating activities 842.2 649.7 81.5 1,573.4 Cash outflows from investing activities (290.8) (149.2) (6.6) (446.6) Cash (outflows)/inflows from financing activities (549.9) (501.4) 397.8 (653.5) Reconciliation of adjusted EBITDA Profit for the year 1,439.9 Income tax 523.7 Profit before tax 1,963.6 Finance expense 69.5 Finance income (216.2) Results from operating activities 1,816.9 Depreciation 252.5 Share-based payment benefit (28.3) Change in estimate of environmental rehabilitation recognised in profit or loss (12.4) Gain on disposal of property, plant and equipment (0.1) IFRS 16 lease payments ' 1 (15.8) Transaction costs 3.1 Adjusted EBITDA 2 2,015.9 1 The amended RCF includes IFRS 16 lease payments in the calculation of the adjusted EBITDA 2 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. Other 2020 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 3,064.3 1,120.7 - 4,185.0 Cash operating costs (2,274.0) (352.0) - (2,626.0) Movement in gold in process and finished inventories - Gold Bullion 1.8 1.3 - 3.1 Segment operating profit 792.1 770.0 - 1,562.1 Administration expenses and other costs (131.6) (20.7) (157.6) (309.9) Interest income 1 13.9 2.9 46.3 3 63.1 3 Dividends received - - 4.3 3 4.3 3 Interest expense 2 (5.2) - (4.5) (9.7) Current tax (145.8) (117.4) - (263.2) Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Additions to property, plant and equipment (114.4) (68.0) (0.3) (182.7) Working profit/(loss) after additions to property, plant and equipment 409.0 566.8 (111.8) 864.0 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest and unwinding of provision for environmental rehabilitation 3 During 2021, the Group disaggregated “Interest income” into “Interest income” and “Dividends received” respectively to present material dividends received Reconciliation of cost of sales to cash operating costs Cost of sales (2,453.4) (473.3) (11.2) (2,937.9) - Depreciation 150.4 119.6 0.8 270.8 - Change in estimate of environmental rehabilitation recognised in profit or loss (19.1) (2.1) (0.7) (21.9) - Movement in gold in process and finished inventories - gold Bullion (1.8) (1.3) - (3.1) - Ongoing rehabilitation expenditure 22.3 2.0 - 24.3 - Care and maintenance - - 11.1 (11.1) - Other operating income/(costs) 27.6 3.1 - 30.7 Cash operating costs (2,274.0) (352.0) - - (2,626.0) Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 297.1 424.9 (87.0) 635.0 - Deferred tax (6.6) 86.5 0.8 80.7 - Net other operating costs/(income) 51.5 14.8 (24.5) 41.8 - Ongoing rehabilitation expenditure 22.3 2.0 - 24.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.2 - - 3.2 - Unwinding of provision for environmental rehabilitation 36.5 14.3 1.2 52.0 - Growth in investment in environmental obligation funds (11.2) (25.2) (2.1) (38.5) - Other income (0.7) - - (0.7) - Change in estimate of environmental rehabilitation recognised in profit or loss (19.1) (2.1) (0.7) (21.9) - Depreciation 150.4 119.6 0.8 270.8 Working profit/(loss) before additions to property, plant and equipment 523.4 634.8 (111.5) 1,046.7 Statement of cash flows Cash inflows from operating activities 546.1 563.1 19.7 1,128.9 Cash outflows from investing activities (135.7) (60.1) (6.7) (202.5) Cash (outflows)/inflows from financing activities (405.5) (500.8) 1,415.5 509.2 Reconciliation of adjusted EBITDA Profit for the year 635.0 Income tax 343.9 Profit before tax 978.9 Finance expense 68.8 Finance income (109.8) Results from operating activities 937.9 Depreciation 270.8 Share-based payment expense 224.1 Change in estimate of environmental rehabilitation recognised in profit or loss (21.9) Gain on disposal of property, plant and equipment (0.7) Transaction costs 1.4 Adjusted EBITDA 1 1,411.6 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. Other 2019 reconciling Amounts in R million Ergo FWGR items Total Financial performance Revenue (External) 2,577.5 184.6 - 2,762.1 Cash operating costs (2,311.1) (111.8) - (2,422.9) Movement in gold in process and finished inventories - Gold Bullion 16.4 16.2 - 32.6 Segment operating profit 282.8 89.0 - 371.8 Retrenchment costs (1.6) (4.7) - (6.3) Administration expenses and other costs (12.0) (2.3) (76.6) (90.9) Interest income 1 6.5 - 10.4 16.9 1 Interest expense 2 (2.4) - (3.2) (5.6) 2 Current tax 1.6 - - 1.6 Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Additions to property, plant and equipment (22.8) (330.7) (0.2) (353.7) Working profit/(loss) after additions to property, plant and equipment 252.1 (248.7) (69.6) (66.2) 1 Interest income excludes the unwinding of the Payments made under protest 2 Interest expense excludes the discount recognised on the initial recognition of the Payments made under protest Reconciliation of cost of sales to cash operating costs Cost of sales (2,414.7) (131.3) (7.9) (2,553.9) - Depreciation 142.8 25.7 0.6 169.1 - Change in estimate of environmental rehabilitation recognised in profit or loss (58.6) - (1.4) (60.0) - Movement in gold in process and finished inventories - gold Bullion (16.4) (16.2) - (32.6) - Ongoing rehabilitation expenditure 16.6 1.7 - 18.3 - Care and maintenance - - 8.8 8.8 - Other operating income/(costs) 19.2 8.3 (0.1) 27.4 Cash operating costs (2,311.1) (111.8) - (2,422.9) Reconciliation of profit/(loss) for the year to working profit/(loss) before additions to property, plant and equipment Profit/(loss) for the year 82.3 28.7 (32.5) 78.5 - Deferred tax 16.2 13.4 (1.4) 28.2 - Net other operating costs/(income) 40.2 15.4 (25.7) 29.9 - Ongoing rehabilitation expenditure 16.6 1.7 - 18.3 - Discount recognised on Payments made under protest including subsequent unwinding 3.5 - - 3.5 - Unwinding of provision for environmental rehabilitation 45.4 19.6 1.3 66.3 - Other income (2.2) - (5.7) (7.9) - Growth in environmental rehabilitation obligation funds (11.3) (22.5) (4.6) (38.4) - Change in estimate of provision for environmental rehabilitation recognised in profit or loss (58.6) - (1.4) (60.0) - Depreciation 142.8 25.7 0.6 169.1 Working profit/(loss) before additions to property, plant and equipment 274.9 82.0 (69.4) 287.5 Statement of cash flows Cash inflows/(outflows) from operating activities 221.7 89.3 (22.7) 288.3 Cash (outflows)/inflows from investing activities (39.4) (324.4) 60.8 (303.0) Cash (outflows)/inflows from financing activities (291.7) 236.7 47.1 (7.9) Reconciliation of adjusted EBITDA Profit for the year 78.5 Income tax 26.6 Profit before tax 105.1 Finance expense 78.4 Finance income (58.3) Results from operating activities 125.2 Depreciation 169.1 Share-based payment expense 21.4 Change in estimate of environmental rehabilitation recognised in profit (60.0) Gain on financial instruments at fair value through profit or loss (2.1) Gain on disposal of property, plant and equipment (5.8) Retrenchment costs 6.3 Adjusted EBITDA 1 254.1 1 1 Adjusted EBITDA (that was considered from the year ended 30 June 2019 following the initial RCF agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity.

X
- Definition The entire disclosure for operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 8 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS08_g20-24_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfEntitysReportableSegmentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfOperatingSegmentsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration