OPERATING SGEMENTS

12 Months Ended

Jun. 30, 2022

Operating Segments [abstract]

Operating segments

23 OPERATING SEGMENTS

ACCOUNTING POLICIES

Operating segments are reported in a manner consistent with internal reports that the Group’s chief operating decision maker

(“

CODM

”) reviews regularly in allocating resources and assessing performance of operating segments. The CODM has been

identified as the Group’s Executive Committee. The Group has one material revenue stream, the sale of gold. To identify operating

segments, management reviewed various factors, including operational structure and mining infrastructure. It was determined that

an operating segment consists of a single or multiple metallurgical plants and reclamation sites that, together with its tailings

storage facility, is capable of operating independently.

When assessing profitability, the CODM considers,

inter alia,

the revenue and cash operating costs of each segment. The net of

these amounts is the segment operating profit or loss. Therefore, segment operating profit has been disclosed as the primary

measure of profit or loss. The CODM also considers the additions to property, plant and equipment.

Ergo

 is a surface gold retreatment operation which treats old slime dams and sand dumps to the south of Johannesburg’s central

business district as well as the East and Central Rand goldfields. The operation comprises three plants. The Ergo and Knights

plants continue to operate as metallurgical plants. The City Deep plant continues to operate as a pump/milling station feeding the

metallurgical plants.

FWGR

 is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields. Phase 1, which entailed

the reconfiguration of the Driefontein 2 plant and relevant infrastructure to process tailings from the Driefontein 5 slimes dam and

deposit residues on the Driefontein 4 Tailings Storage Facility, was commissioned on April 1, 2019.

Corporate office and other reconciling items

 (collectively referred to as

"Other reconciling items"

) represent the items to

reconcile to consolidated financial statements. This does not represent a separate segment as it does not generate mining

revenue. 

Note condensed during the current year. Changes also affected on comparatives.

Other

2022

reconciling

Amounts in R million

Ergo

FWGR

items

 Total

Revenue (External)

3,704.9

1,413.6

-

5,118.5

Cash operating costs

(3,009.8)

(454.0)

-

(3,463.8)

Movement in gold in process and finished inventories - Gold Bullion

35.2

(4.8)

-

30.4

Segment operating profit

730.3

954.8

-

1,685.1

Additions to property, plant and equipment

(436.2)

(162.2)

-

(598.4)

Reconciliation of segment operating profit to profit after tax

Segment operating profit

730.3

954.8

-

1,685.1

Depreciation 

(134.5)

(131.6)

(1.5)

(267.6)

Change in estimate of environmental rehabilitation recognised in

profit or loss

2.3

-

(0.1)

2.2

Ongoing rehabilitation expenditure

(30.1)

(1.5)

-

(31.6)

Care and maintenance

-

-

(5.9)

(5.9)

Other operating costs

(4.9)

(0.2)

(0.1)

(5.2)

Other income

70.1

21.2

-

91.3

Administration expenses and other costs

(7.7)

(13.8)

(139.7)

(161.2)

Finance income

22.4

19.0

184.4

225.8

Finance expense

(58.8)

(10.8)

(5.2)

(74.8)

Current tax

(12.9)

(237.3)

(11.4)

(261.6)

Deferred tax

(45.3)

(29.6)

2.2

(72.7)

Profit after tax

530.9

570.2

22.7

1,123.8

Reconciliation of cost of sales to cash operating costs 

Cost of sales 

(3,141.8)

(592.1)

(7.6)

(3,741.5)

Depreciation 

134.5

131.6

1.5

267.6

Change in estimate of environmental rehabilitation recognised in

profit or loss

(2.3)

-

0.1

(2.2)

Movement in gold in process and finished inventories - Gold Bullion

(35.2)

4.8

-

(30.4)

Ongoing rehabilitation expenditure

30.1

1.5

-

31.6

Care and maintenance

-

-

5.9

5.9

Other operating costs

4.9

0.2

0.1

5.2

Cash operating costs

(3,009.8)

(454.0)

-

(3,463.8)

Other

2021

reconciling

Amounts in R million

Ergo

FWGR

items

 Total

Revenue (External)

3,943.0

1,326.0

-

5,269.0

Cash operating costs

(2,666.5)

(406.2)

-

(3,072.7)

Movement in gold in process and finished inventories - Gold Bullion

(31.9)

6.3

-

(25.6)

Segment operating profit

1,244.6

926.1

-

2,170.7

Additions to property, plant and equipment

(250.9)

(143.3)

(1.5)

(395.7)

Reconciliation of segment operating profit to profit after tax

Segment operating profit

1,244.6

926.1

-

2,170.7

Depreciation 

(135.6)

(115.6)

(1.3)

(252.5)

Change in estimate of environmental rehabilitation recognised in

profit or loss

7.2

-

5.2

12.4

Ongoing rehabilitation expenditure

(46.6)

(1.7)

-

(48.3)

Care and maintenance

-

-

(3.9)

(3.9)

Other operating expenses

2.4

-

-

2.4

Other income

0.1

-

-

0.1

Administration expenses and other costs

15.0

1.8

(80.8)

(64.0)

Finance income

21.0

17.2

178.0

216.2

Finance expense

(45.8)

(9.8)

(13.9)

(69.5)

Current tax

(196.1)

(227.6)

-

(423.7)

Deferred tax

(66.6)

(37.4)

4.0

(100.0)

Profit after tax

799.6

553.0

87.3

1,439.9

Reconciliation of cost of sales to cash operating costs

Cost of sales

(2,871.0)

(517.2)

-

(3,388.2)

Depreciation

135.6

115.6

1.3

252.5

Change in estimate of environmental rehabilitation recognised in

profit or loss

(7.2)

-

(5.2)

(12.4)

Movement in gold in process and finished inventories - Gold Bullion

31.9

(6.3)

-

25.6

Ongoing rehabilitation expenditure

46.6

1.7

-

48.3

Care and maintenance

-

-

3.9

3.9

Other operating income

(2.4)

-

-

(2.4)

Cash operating costs

(2,666.5)

(406.2)

-

(3,072.7)

Other

2020

reconciling

Amounts in R million

Ergo

FWGR

items

 Total

Revenue (External)

3,064.3

1,120.7

-

4,185.0

Cash operating costs

(2,274.0)

(352.0)

-

(2,626.0)

Movement in gold in process and finished inventories - Gold Bullion

1.8

1.3

-

3.1

Segment operating profit

792.1

770.0

-

1,562.1

Additions to property, plant and equipment

(114.4)

(68.0)

(0.3)

(182.7)

Reconciliation of segment operating profit to profit after tax

Segment operating profit

792.1

770.0

-

1,562.1

Depreciation 

(150.4)

(119.6)

(0.8)

(270.8)

Change in estimate of environmental rehabilitation recognised in

profit or loss

19.1

2.1

0.7

21.9

Ongoing rehabilitation expenditure

(22.3)

(2.0)

-

(24.3)

Care and maintenance

-

-

(11.1)

(11.1)

Other operating expenses

(27.6)

(3.1)

-

(30.7)

Other income

0.7

-

-

0.7

Administration expenses and other costs

(131.6)

(20.7)

(157.6)

(309.9)

Finance income

28.9

28.1

52.8

109.8

Finance expense

(48.8)

(14.3)

(5.7)

(68.8)

Current tax

(145.8)

(117.4)

-

(263.2)

Deferred tax

6.6

(86.5)

(0.8)

(80.7)

Profit after tax

320.9

436.6

(122.5)

635.0

Reconciliation of cost of sales to cash operating costs

Cost of sales

(2,453.4)

(473.3)

(11.2)

(2,937.9)

Depreciation

150.4

119.6

0.8

270.8

Change in estimate of environmental rehabilitation recognised in

profit or loss

(19.1)

(2.1)

(0.7)

(21.9)

Movement in gold in process and finished inventories - Gold Bullion

(1.8)

(1.3)

-

(3.1)

Ongoing rehabilitation expenditure

22.3

2.0

-

24.3

Care and maintenance

-

-

11.1

11.1

Other operating costs

27.6

3.1

-

30.7

Cash operating costs

(2,274.0)

(352.0)

-

(2,626.0)