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Note 17 - Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2020
Statement Line Items [Line Items]  
Disclosure of property, plant and equipment [text block]
17
Property, plant and equipment
 
Cost   Land and
Buildings		     Mine
development,
infrastructure
and other		     Plant and
equipment		     Furniture
and fittings		     Motor
vehicles		     Solar Plant     Total  
                                           
Balance at January 1, 2019    
10,339
      
74,509
      
32,675
      
923
      
2,402
      
–
      
120,848
  
Initial recognition of right of use assets    
409
      
–
      
–
      
–
      
–
      
–
      
409
  
Additions*    
267
      
19,020
      
897
      
88
      
151
      
–
      
20,423
  
Impairments    
–
      
–
      
(144
 )    
–
      
–
      
–
      
(144
 )
Disposals    
(212
 )    
–
      
–
      
–
      
(16
 )    
–
      
(228
 )
Reallocations between asset classes    
25
      
(2,989
 )    
2,964
      
–
      
–
      
–
      
–
  
Foreign exchange movement    
5
      
2
      
3
      
7
      
1
      
–
      
18
  
Balance at December 31, 2019    
10,833
      
90,542
      
36,395
      
1,018
      
2,538
      
–
      
141,326
  
                                                         
Balance at January 1, 2020    
10,833
      
90,542
      
36,395
      
1,018
      
2,538
      
–
      
141,326
  
Additions*    
1
      
19,507
      
4,221
      
219
      
458
      
372
      
24,778
  
Derecognised plant and equipment    
–
      
–
      
(238
 )    
–
      
–
      
–
      
(238
 )
Reallocations between asset classes    
930
      
(1,210
 )    
280
      
–
      
–
      
–
      
–
  
Foreign exchange movement    
(7
 )    
–
      
(14
 )    
(2
 )    
(1
 )    
20
      
(4
 )
Balance at December 31, 2020    
11,757
      
108,839
      
40,644
      
1,235
      
2,995
      
392
      
165,862
  
 
 *
Included in additions is an amount of
$15,771
(
2019:
$14,051,
2018:
$19,323
) relating to capital work in progress (“CWIP”) and contains
$53
(
December 31, 2019:
$165,
2018:
$61
) of borrowing costs capitalised from the term loan. As at year end
$85,479
of CWIP was included in the cost closing balance (
2019:
$69,708,
January 1, 2019:
$55,657
).
On
July 6, 2020
the Board appointed Voltalia as the contractor for engineering, procuring and constructing a solar plant to be owned by a subsidiary of the Company. All solar costs that were incurred before
July 6, 2020
were accounted for as other expenses and accounted through profit or loss. Solar costs incurred after approval by the Board are accounted for as Property, plant and equipment as it became clear and probable that future economic benefits will flow to the project. The
40
-hectare site for the project has been cleared and fenced and is ready for civil work to commence.  Construction on the
12MWac
solar plant is expected to be completed in
April 2022.
 
~
The Group voluntarily changed its disclosure policy for exploration and evaluation assets to be disclosed separately as Exploration and evaluation assets rather than as part of Property, plant and equipment (refer to note
4
(b)(i)).  The new disclosure policy was adopted from
December 10, 2020
and has been applied retrospectively.
 
Accumulated depreciation and Impairment losses   Land and
Buildings		     Mine
development,
infrastructure
and other		     Plant and
equipment		     Furniture
and fittings		     Motor
vehicles		     Solar Plant     Total  
                                           
Balance at January 1, 2019    
4,411
      
5,821
      
17,357
      
649
      
2,150
      
–
      
30,388
  
Initial recognition of right of use assets    
146
      
–
      
–
      
–
      
–
      
–
      
146
  
Depreciation for the year    
1,005
      
504
      
2,693
      
99
      
133
      
–
      
4,434
  
Disposals    
(149
 )    
–
      
–
      
–
      
(16
 )    
–
      
(165
 )
Foreign exchange movement    
–
      
–
      
–
      
5
      
6
      
–
      
11
  
Balance at December 31, 2019    
5,413
      
6,325
      
20,050
      
753
      
2,273
      
–
      
34,814
  
                                                         
Balance at January 1, 2020    
5,413
      
6,325
      
20,050
      
753
      
2,273
      
–
      
34,814
  
Depreciation for the year    
1,030
      
648
      
2,691
      
102
      
157
      
–
      
4,628
  
Accumulated depreciation for derecognised plant and equipment    
–
      
–
      
(56
 )    
–
      
–
      
–
      
(56
 )
Foreign exchange movement    
3
      
–
      
–
      
(6
 )    
–
      
–
      
(3
 )
Balance at December 31, 2020    
6,446
      
6,973
      
22,685
      
849
      
2,430
      
–
      
39,383
  
                                                         
Carrying amounts                                                        
At January 1, 2019    
5,928
      
68,688
      
15,318
      
274
      
252
      
–
      
90,460
  
At December 31, 2019    
5,420
      
84,217
      
16,345
      
265
      
265
      
–
      
106,512
  
At December 31, 2020    
5,311
      
101,866
      
17,959
      
386
      
565
      
392
      
126,479
  
 
Economic recovery
 
Items of property, plant and equipment are depreciated over the LoMP, which includes planned production from inferred resources. These inferred resources are included in the calculation when the economic recovery thereof is demonstrated by the achieved recovered grade relative to the mine's pay limit for the period
2006
to
2018.
The pay limit has ranged from
2.10
g/t in
2019
to
2.10
g/t in
2020
while the recovered grade has ranged from
3.26
g/t to
3.38
g/t over the period. All-in-sustaining-cost
#
has remained consistently below the gold price received over this period resulting in economic recovery of the inferred resources.
 
 
#
All-in sustaining cost (“AISC”) per ounce is calculated as the on-mine cost per ounce to produce gold (which includes production costs before intercompany eliminations and exploration costs) plus royalty paid, additional costs incurred outside the mine (i.e. at offices in Harare, Johannesburg, London and Jersey), costs associated with maintaining the operating infrastructure and resource base that are required to maintain production at the current levels (sustaining capital investment), the share-based expense arising from the LTIP less silver by-product revenue and the export credit incentive.