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RESULTS FROM OPERATING ACTIVITIES
 12 Months Ended
Jun. 30, 2021
Results from operating activities [abstract]  
RESULTS FROM OPERATING ACTIVITIES
5
 
RESULTS FROM
 
OPERATING
 
ACTIVITIES
5.1
 
COST OF SALES
Amounts in R million
Note
2021
2020
2019
Cost of sales
(3,388.2)
(2,937.9)
(2,553.9)
Operating costs (a)
(3,122.5)
(2,692.1)
(2,471.1)
Movement in gold in process and finished inventories - Gold Bullion
(25.6)
3.1
32.6
Depreciation
 
9
(252.5)
(270.8)
(169.1)
Change in estimate of environmental rehabilitation
11
12.4
21.9
60.0
Retrenchment costs (b)
-
-
(6.3)
The most significant components of operating costs include:
Consumable stores
(880.2)
(801.0)
(866.5)
Labour including short term incentives
(598.4)
(573.0)
(476.7)
Electricity
(488.2)
(420.9)
(399.4)
Specialist service providers
(510.7)
(447.5)
(437.1)
Machine hire
(127.4)
(95.2)
(77.7)
Security expenses
(122.8)
(87.8)
(59.9)
Water
(57.1)
(47.0)
(44.1)
Pre-production costs capitalised
-
-
93.7
Voluntary staff retrenchments
-
-
(6.3)
RELATED PARTY
 
TRANSACTIONS
FWGR entered into an agreement with Sibanye-Stillwater effective July 31, 2018 for the pumping and supply of water and
electricity to the FWGR operations for which FWGR is invoiced based on metered usage of water and electricity.
FWGR also entered into a smelting agreement with Sibanye-Stillwater effective July 31, 2018 to smelt and recover gold from gold
loaded carbon produced at FWGR, and deliver the gold to Rand Refinery. As consideration for this service, Sibanye-Stillwater
receives a fee based on the smelting costs plus 10% of the smelting costs.
Rand Refinery performs the final refinement and marketing of all gold and silver produced by the Group. As consideration for this
service, Rand Refinery receives a variable refining fee plus fixed marketing and administration fees.
All transactions and outstanding balances with related parties are to be settled in cash within 30 days of the invoice date. None
of the balances are secured. No expense has been recognised in the current year as a credit loss allowance in respect of amounts
charged to related parties.
Amounts in R million
2021
2020
2019
Services rendered by related parties and included in operating costs:
Supply of water and electricity
 
1
68.1
50.0
16.9
Gold smelting and related charges
 
1
21.1
19.8
12.9
Other charges
 
1
0.7
1.6
-
Charges to Sibanye-Stillwater
 
2
-
(0.2)
(6.5)
Gold refining and related charges
 
3
6.8
4.9
3.6
96.7
76.1
26.9
1
 
Paid to Sibanye-Stillwater by FWGR
2
 
2019 charges relate to material processed on behalf
 
of Sibanye-Stillwater in terms of a toll treatment
 
agreement and recovered the related
costs from Sibanye-Stillwater. 2020 charges relate to miscellaneous
 
items
3
 
Paid to Rand Refinery
5.2
 
OTHER INCOME
ACCOUNTING POLICIES
Other income is
 
recognised where it
 
is probable that
 
the economic benefits
 
associated with a
 
transaction will flow
 
to the Group
and it can be reliably measured.
Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include
gains on disposal of property, plant and equipment and gains on financial instruments at fair value through profit or loss
.
Amounts in R million
2021
2020
2019
Gain on disposal of property, plant and equipment
0.1
0.7
5.8
Gain on financial asset at fair value through profit or loss
-
-
2.1
0.1
0.7
7.9
5.3
 
ADMINISTRATION
 
EXPENSES AND OTHER COSTS
Amounts in R million
Note
2021
2020
2019
Included in administration expenses and other costs are the following:
Share based payment benefit/(expenses)
28.3
(224.1)
(21.4)
Cash settled Long-Term
 
Incentive ("
CLTI
") scheme
19.1
44.3
(218.1)
(21.4)
Equity settled Long-Term
 
Incentive ("
ELTI
") scheme
19.2
(16.0)
(6.0)
-