OTHER INVESTMENTS	12 Months Ended
OTHER INVESTMENTS	Jun. 30, 2021
Other Investments [abstract]
Other investments	25 OTHER INVESTMENTS ACCOUNTING JUDGEMENTS The Group has one (1) director representative on the Rand Refinery board. Therefore, judgement had to be applied to ascertain whether significant influence exists, and if the investment should be accounted for as an associate under IAS 28 Investments in Associates and Joint Ventures. The director representation is not considered significant influence, as it does not constitute meaningful representation. It represents 11.11 % of the entire board and is proportional to the 11.3 % shareholding that the Group has. SIGNIFICANT ACCOUNTING ASSUMPTIONS AND ESTIMATES The fair value of the listed equity instrument is determined based on quoted prices on an active market. Equity instruments which are not listed on an active market are measured using other applicable valuation techniques depending on the extent to which the technique maximises the use of relevant observable inputs and minimizes the use of unobservable inputs. Where discounted cash flows are used, the estimated cash flows are based on management’s best estimate based on readily available information at measurement date. The discounted cash flows contain assumptions about the future that are inherently uncertain and can change materially over time. ACCOUNTING POLICIES On initial recognition of an equity investment that is not held for trading, the Group may make an irrevocable election to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by- investment basis. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition they are measured at fair value and changes therein are recognised in OCI, and are never reclassified to profit or loss, with dividends recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. The Group’s listed and unlisted investments in equity securities are classified as equity instruments at fair value through other comprehensive income (OCI). Amounts in R million Shares % held 1 2021 2020 Listed investments (Fair value hierarchy Level 1): West Wits Mining Limited (" WWM ") 47,812,500 3.5% 43.5 12.0 Total listed investments 43.5 12.0 Unlisted investments (Fair value hierarchy Level 3): Rand Refinery Proprietary Limited (" Rand Refinery ") 44,438 11.3% 119.3 178.4 Rand Mutual Assurance Company Limited B Share Business Fund (" RMA ") 2 12,659 2 1.3% 2 4.1 4.7 Guardrisk Insurance Company Limited (Cell Captive A170) 3 20 3 100.0% 0.1 0.1 Chamber of Mines Building Company Proprietary Limited 42,292 4.5% 0.1 0.1 Total unlisted investments 123.6 183.3 Balance at the end of the year 167.1 195.3 Fair value adjustment on equity instruments at fair value through OCI (28.2) 191.8 Dividends received on equity instruments at fair value through OCI (76.1) (4.3) Rand Refinery (72.3) - RMA (3.8) (4.3) 1 The number and percentage shares held remained unchanged for the prior year with the exception of WWM that issued new shares thereby diluting DRDGOLD's effective shareholding from 5.1 % to 3.5 % 2 The "B Share Business Fund" shares relate to all the businesses of the RMA Group that do not relate to the Compensation for Occupational Injuries and Diseases Act 3 The shares held entitles the holder to 100 % of the residual net equity of Cell Captive A 170 after settlement of the reimbursive right MARKET RISK Other market price risk Equity price risk arises from changes in quoted market prices of listed investments as well as changes in the fair value of unlisted investments due to changes in the underlying net asset values. FAIR VALUE OF FINANCIAL INSTRUMENTS Listed investments The fair values of listed investments are determined by reference to published price quotations from recognised securities exchanges and constitute level 1 instruments in the fair value hierarchy. Unlisted investments The fair values of unlisted investments are determined through valuation techniques that include inputs that are not based on observable market data and constitute level 3 instruments in the fair value hierarchy. 25 OTHER INVESTMENTS continued 25.1 RAND REFINERY Amounts in R million 2021 2020 Balance at the beginning of the year 178.4 - Fair value adjustment on equity investments at fair value through other comprehensive income (59.1) 178.4 Balance at the end of the year 119.3 178.4 In accordance with IFRS 13 Fair Value Measurement , the income approach has been established to be the most appropriate basis to estimate the fair value of the investment in Rand Refinery. This method relies on the future budgeted cash flows as estimated by Rand Refinery. Management used a model developed by an external expert to perform the valuation. Rand Refinery’s refining operations (excluding Prestige Bullion) were valued using the Free Cash Flow model, whereby an enterprise value using a Gordon Growth formula for the terminal value was estimated. The forecasted dividend income to be received from Prestige Bullion was valued using a finite-life dividend discount model as Rand Refinery’s shareholding will be reduced to nil in 2032 per agreement with the South African Mint (partner in Prestige Bullion). These valuations revealed that the fair value of the investment in Rand Refinery consist mainly of Rand Refinery’s cash on hand and the forecasted dividend income to be received from Prestige Bullion. The enterprise value of Rand Refinery’s refining operations decreased mainly due to a decrease in forecast gold prices, a decrease in budgeted production volumes, and an increase in budgeted operating costs. The value of the forecasted dividends for Prestige Bullion decreased mainly due to a decrease in the demand in Krugerrands and an increase in the discount rate applied to the forecasted dividends of Prestige Bullion. The discount rate increased due to an increase in the risk premium to account for increased volatility in demand for Krugerrands in the medium- to long-term. The fair value measurement uses significant unobservable inputs and relates to a fair value hierarchy level 3 financial instrument. Marketability and minority discounts (both unobservable inputs) of 16.5 % and 17.0 % (2020: 16.5 % and 17.0 %), respectively, were applied. The latest budgeted cash flow forecasts provided by Rand Refinery as at June 30, 2021 was used, and therefore classified as an unobservable input into the models. Key observable/unobservable inputs into the model include: Amounts in R million Observable/unobservable input Unit 2021 2020 Rand Refinery operations Forecast average gold price Observable input R/kg 847,317 852,098 Forecast average silver price Observable input R/kg 11,751 9,453 Average South African CPI Observable input % 4.4 4.8 South African long-term government bond rate Observable input % 9.5 9.5 Terminal growth rate Unobservable input % 4.4 5.0 Weighted average cost of capital Unobservable input % 15.1 15.1 Investment in Prestige Bullion Discount period Unobservable input years 12 13 Cost of equity Unobservable input % 16.5 13.2 Sensitivity analysis The fair value measurement is most sensitive to the Rand denominated gold price and volumes. The higher the gold price and volumes, the higher the fair value of the Rand Refinery investment. The fair value measurement is also sensitive to the discount rate and minority and marketability discounts applied. The below table indicates the extent of sensitivity of the Rand Refinery equity value to the inputs: Input Change in OCI, net of tax Amounts in R million % Increase % Decrease % Increase % Decrease Rand Refinery operations Rand US Dollar exchange rate Observable inputs 1 (1) 3.8 (3.8) Commodity prices (Gold and silver) Observable inputs 1 (1) 3.0 (3.0) Volumes Unobservable inputs 1 (1) 2.6 (2.6) Weighted average cost of capital Unobservable inputs 1 (1) (0.3) 0.3 Minority discount Unobservable inputs 1 (1) (1.2) 1.2 Marketability discount Unobservable inputs 1 (1) (1.2) 1.2 Investment in Prestige Bullion Cost of equity Unobservable inputs 1 (1) (1.5) 1.5 Prestige Bullion dividend forecast Unobservable inputs 1 (1) 0.4 (0.4) Impact of the COVID-19 pandemic The COVID-19 pandemic had an impact on the gold market and the operations of Rand Refinery as a result of the South African national lockdown and the assumptions as disclosed were adjusted with relevant information at the reporting date.