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CASH AND CASH EQUIVALENTS
 12 Months Ended
Jun. 30, 2022
Cash and cash equivalents [abstract]  
Cash and cash equivalents
13
 
CASH AND CASH EQUIVALENTS
ACCOUNTING POLICIES
Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to cash without significant risk of
changes in
 
value and
 
comprise cash
 
on hand,
 
demand deposits,
 
and highly
 
liquid investments which
 
are readily
 
convertible to
known amounts of cash.
Cash and cash equivalents are non-derivative financial assets categorised as financial assets measured at amortised
 
cost. Cash
and
 
cash
 
equivalents
 
are
 
initially
 
measured
 
at
 
fair
 
value.
 
Subsequent
 
to
 
initial
 
recognition,
 
cash
 
and
 
cash
 
equivalents
 
are
measured at amortised cost, which is equivalent to their fair value.
Amounts in R million
Note
2022
2021
Cash on hand
113.2
100.5
Access deposits and income funds
 
1
2,401.7
2,069.2
Restricted cash
 
2
10.7
10.3
2,525.6
2,180.0
Interest earned on cash and cash equivalents
6
111.8
108.7
1
These consist of access deposit notes and conservatively
 
managed income funds that are diversified
 
across the major financial institutions in
South Africa.
At reporting date all of these instruments had
 
same day or next day liquidity and effective
 
annualised yields of between
5.38
% and
6.38
%
2
This consists of cash held on call as collateral for guarantees
 
issued by the Standard Bank of South
 
Africa Limited on behalf of the Group for
environmental rehabilitation amounting to R
5.2
 
million and various utilities amounting to R
5.1
 
million.
CREDIT RISK
The Group is exposed to credit risk
 
on the total carrying value of its
 
cash and cash equivalents. The Group manages
 
its exposure
to credit risk
 
by investing cash
 
and cash equivalents
 
across several major
 
financial institutions, considering
 
the credit ratings
 
of
the respective financial institutions, funds and underlying instruments.
Impairment
 
on
 
cash
 
and
 
cash
 
equivalents,
 
if
 
any,
 
are
 
measured
 
on
 
a
 
12-month
 
expected
 
loss
 
basis
 
and
 
reflects
 
the
 
short
maturities of the
 
exposures. The Group considers
 
that its cash
 
and cash equivalents
 
have low credit
 
risk based on
 
the external
credit ratings of the counterparties.
MARKET RISK
Interest rate risk
A change of
100
 
basis points (bp) in the interest rates would have
 
increased/(decreased) equity and profit/(loss) by the amounts
shown below. This analysis is performed on the average balance of cash and cash equivalents for the year and assumes that
 
all
other variables remain constant. The analysis excludes income tax
Amounts in R million
2022
2021
100
bp increase
23.5
19.5
100
bp (decrease)
(23.5)
(19.5)
Foreign
 
denominated cash
 
is held
 
in a
 
foreign currency
 
bank
 
account accruing
 
negligible interest
 
and is
 
usually converted
 
to
South African Rand on the day of receipt. Foreign cash is therefore not exposed to significant interest rate risk.
Foreign currency risk
US
 
Dollars
 
received
 
on
 
settlement
 
of
 
the
 
trade
 
receivables
 
are
 
exposed
 
to
 
fluctuations
 
in
 
the
 
US
 
Dollar/South
 
African
 
Rand
exchange rate until it is converted to South African Rands.
US Dollars not converted to South African Rands at reporting date are as follows
:
Figures in USD million
2022
2021
Foreign denominated cash at 30 June
3.4
3.4
A
10
% strengthening of the Rand against the US Dollar at 30 June would have increased/(decreased) equity and profit/(loss) by
the amounts shown below. This analysis assumes that all other variables remain constant.
Amounts in R million
2022
2021
Strengthening of the Rand against the US Dollar
(5.5)
(4.9)
Weakening of the Rand against the US Dollar
5.5
4.9
FAIR VALUE
 
OF FINANCIAL INSTRUMENTS
The fair value of cash and cash equivalents approximates their carrying value due to their short-term maturities.