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Note 18 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Disclosure of property, plant and equipment [text block]

18	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, 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

Balance at January 1, 2021		11,757			108,839			40,644			1,235			2,995			392			165,862
Additions*		318			25,529			3,531			134			176			1,581			31,269
Impairments^@		–			(65	)		(1,565	)		–			–			–			(1,630	)
Derecognised plant and equipment		(192	)		–			–			–			–			–			(192	)
Reallocations between asset classes ^#		3,120			(24,913	)		21,785			8			–			–			–
Foreign exchange movement		(25	)		–			(76	)		(35	)		(2	)		(33	)		(171	)
Balance at December 31, 2021		14,978			109,390			64,319			1,342			3,169			1,940			195,138

*	Included in additions is an amount of $19,413 (2020: $6,476) relating to capital work in progress (“CWIP”) and contains $17 ( December 31, 2020: $53) of borrowing costs capitalised from the term loan. As at year end $42,145 of CWIP was included in the cost closing balance (2020: $85,479).
~	On July 6, 2020 the Board appointed Voltalia as the contractor for the engineering, procuring and constructing of a solar plant to be owned by a subsidiary of the Company and supply Blanket Mine with power. 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 of the 12MWac solar plant is expected to be completed in the second quarter of 2022. Included in Prepayments is an advance payment to Voltalia to the amount of $1,821 in terms of the EPC agreement and $704 for equipment. These items were delivered at the date of approval of these consolidated financial statements. Also included in Prepayments is an amount of $426 to entities in Zimbabwe for civil and construction work related to the solar plant. Refer to note 21.
^@	Included in impairments are Gensets at a cost of $1,001 and Guide ropes at a total cost of $310. These assets were impaired as they are no longer in a working conditions as intended for the use in production or day to day operations.
^#	Included in the reallocation between asset classes is an amount of $18,509 for the Central Shaft.

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, 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

–

)

–

)

Balance at December 31, 2020

6,446

6,973

22,685

849

2,430

–

39,383

Balance at January 1, 2021

6,446

6,973

22,685

849

2,430

–

39,383

Depreciation for the year

1,217

2,537

3,953

136

203

–

8,046

Accumulated depreciation for derecognised plant and equipment

(230

)

–

(230

)

Accumulated depreciation for impairments

–

(1,133

)

–

(1,133

)

Foreign exchange movement

)

–

(27

)

–

(30

)

Balance at December 31, 2021

7,432

9,510

25,505

958

2,631

–

46,036

Carrying amounts

At December 31, 2020

5,311

101,866

17,959

386

565

392

126,479

At December 31, 2021

7,546

99,880

38,814

384

538

1,940

149,102

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 is 2.10 g/t (2020: 2.10 g/t) while the recovered grade has ranged from 3.38 g/t to 3.36 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.