4. Cost of sales

Accounting policy

The following accounting policies relate to some costs that are included in cost of sales:

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be reliably estimated.

Pension and provident funds

The Group operates a defined contribution retirement plan and contributes to a number of industry-based defined contribution retirement plans. The retirement plans are funded by payments from employees and Group companies.

Contributions to defined contribution funds are expensed as incurred.


Figures in million - SA rand	Notes	2019	2018	2017
Salaries and wages		(21,215.6)	(15,710.3)	(15,323.0)
Consumable stores	21	(12,784.3)	(9,327.9)	(8,789.4)
Utilities		(6,089.3)	(5,049.2)	(4,930.1)
Mine contracts		(3,566.4)	(3,197.6)	(2,956.9)
Recycling1		(13,968.6)	(7,196.5)	(4,376.9)
Other		(1,878.0)	(4,564.0)	(3,398.0)
Ore reserve development costs capitalised		3,401.8	3,530.3	3,291.6
Cost of sales, before amortisation and depreciation		(56,100.4)	(41,515.2)	(36,482.7)
Amortisation and depreciation	12,13	(7,214.1)	(6,613.8)	(5,699.7)
Total cost of sales		(63,314.5)	(48,129.0)	(42,182.4)

1 Recycling cost consists of cost relating to the purchasing of spent catalytic material and the cost incurred to convert the spent catalytic material into finished PGMs

The SA region employees are members of various defined contribution retirement plans. The cost of providing retirement benefits for the year amounted to R1,233.7 million (2018: R919.1 million and 2017: R959.9 million).