XML 478 R33.htm IDEA: XBRL DOCUMENT v3.25.3
OTHER INVESTMENTS
 12 Months Ended
Jun. 30, 2025
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [abstract]  
OTHER INVESTMENTS 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 minimises 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 other comprehensive income (“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 OCI
because the Company intends to hold these investments for the long term for strategic purposes.
Amounts in R million
Shares held 1
% held 1
2025
2024
Listed investments (Fair value hierarchy Level 1):
West Wits Mining Limited ("WWM")
47,812,500
1.5%
11.2
7.5
Total listed investments
11.2
7.5
Unlisted investments (Fair value hierarchy Level 3):
Rand Refinery Proprietary Limited ("Rand Refinery")
44,438
11.3%
302.0
166.8
Rand Mutual Assurance Company Limited B Share Business Fund ("RMA") 2
12,659
1.3%
6.8
5.9
Guardrisk Insurance Company Limited (Cell Captive A170) 3
20
100%
2.4
0.1
Chamber of Mines Building Company Proprietary Limited
52,965
5.7%
0.1
0.1
Total unlisted investments
311.3
172.9
Balance at the end of the year
322.5
180.4
Fair value adjustment on equity instruments at fair value through OCI
139.8
11.8
WWM
3.6
0.3
Rand Refinery
135.2
10.5
RMA
1.0
1.0
Dividends received on equity instruments at fair value through OCI
(56.3)
(29.3)
Rand Refinery
(56.3)
(29.3)
1The number and percentage of shares held remained unchanged from the prior year with the exception of WWM that issued new shares
thereby diluting DRDGOLD's effective shareholding from 1.9% to 1.5%.
2The "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.
3The shares held entitle the holder to 100%  of the residual net equity of Cell Captive A 170. Refer to note 12 of the consolidated
financial statements.
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.
26OTHER INVESTMENTS continued
26.1RAND REFINERY
Amounts in R million
2025
2024
Balance at the beginning of the year
166.8
156.3
Fair value adjustment on equity investments at fair value through OCI
135.2
10.5
Balance at the end of the year
302.0
166.8
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. Due to the low demand for Krugerrands,
Prestige Bullion does not forecast paying a dividend in the short term; therefore the valuation method has changed from the
dividend discount model to a discounted cash flow model. The forecasted cash flows from Prestige Bullion were valued using a
finite life as Rand Refinery’s shareholding will be reduced to nil in 2032 per an agreement with the South African Mint (partner in
Prestige Bullion).
The fair value of Rand Refinery increased as a result of an increase in the enterprise value of the refining operations and a
decrease in the value of Prestige Bullion. The enterprise value of the refining operations of Rand Refinery increased as a result
of higher throughput and a significant increase in forecast commodity prices. The fair value of Prestige Bullion decreased
significantly as a result  of a continued low demand for Krugerrands and resultant lower expected cash flows.
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 15.3% and 16.9% (2024: 15.3% and 16.9%),
respectively, were applied. The latest budgeted cash flow forecasts provided by Rand Refinery as at 30 June 2025 were used,
and therefore classified as an unobservable input into the models. Other key observable/unobservable inputs into the model
include:
Amounts in R million
Observable/unobservable input
Unit
2025
2024
Rand Refinery operations
Forecast average gold price
Observable input
R/kg
1,620,480
1,209,686
Forecast average silver price
Observable input
R/kg
18,598
15,142
Average South African CPI
Observable input
%
4.5
4.5
South African long term government bond rate
Observable input
%
9.70
9.92
Terminal growth rate
Unobservable input
%
4.5
4.5
Weighted average cost of capital
Unobservable input
%
16.0
17.0
Investment in Prestige Bullion
Discount period
Unobservable input
years
8
9
Cost of equity
Unobservable input
%
18.0
17.0
            Sensitivity analysis
The fair value measurement is most sensitive to the weighted average cost of capital, Rand US Dollar exchange rate and gold
price. The higher the gold price, the higher the fair value of the Rand Refinery investment. The higher the operating costs, the
lower the fair value of the Rand Refinery investment. The fair value measurement is also sensitive to the operating costs,
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)
6.9
(6.9)
Commodity prices (gold and silver)
Observable inputs
1
(1)
6.0
(6.0)
Operating costs
Unobservable inputs
1
(1)
(4.7)
4.7
Weighted average cost of capital
Unobservable inputs
1
(1)
(13.3)
13.3
Minority discount
Unobservable inputs
1
(1)
(3.6)
3.6
Marketability discount
Unobservable inputs
1
(1)
(3.5)
3.5
Investment in Prestige Bullion
Cost of equity
Unobservable inputs
1
(1)
(0.2)
0.2
Prestige cash flow forecast
Unobservable inputs
1
(1)
0.1
(0.1)