Deferred revenue (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of inputs to model to unwind deferred revenue


Each period management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and, therefore, recognised as revenue. Key inputs into the model are:
Key input	Estimate at year end	Further information
Estimated financing rate over life of arrangement	4.6% - 5.2%	See note 5.2
Remaining life of stream	97 years	The starting point for the life of the stream is the approved life-of-mine for the US PGM operations. However, as IFRS 15 requires the constraint on revenue recognition to be considered, it is more prudent to include a portion of resources in the life of stream for the purposes of revenue recognition. This will reduce the chance of having a significant decrease in revenue recognised in the future, when the life-of-mine is updated to include a conversion of resources to reserves. As such, Sibanye-Stillwater management have determined that is it appropriate to include 50% of inferred resources.
Palladium entitlement percentage	4.5%	The palladium entitlement percentage will be either 4.5%, 2.25% or 1% over the life of the mine, depending on whether or not the advance has been fully reduced, and a certain number of contractual ounces have been delivered (375,000 ounces for the first trigger drop down to 2.25%and 550,000 ounces for the second trigger drop down rate to 1%).
Gold entitlement percentage	100%	The gold entitlement percentage will be 100% over the life of the mine.
Monthly cash percentage	18%	The monthly cash payment to be received is 18%, 16%, 14% or 10% of the market price of the metal credit delivery to Wheaton International while the advance is not fully reduced. After the advance has been fully reduced, the cash percentage is 22%, 20%, 18% or 14%. The percentage applicable depends on the investment grade of the Group and its leverage ratio. As long as Sibanye-Stillwater’s current investment grade conditions as stipulated in the contract have been satisfied, the monthly cash percentage decreases if the Group’s leverage ratio increases above 3.5:1. The balance of the ounces in the monthly delivery (i.e. 100%-18%= 82%) is then used to determine the utilisation of the deferred revenue balance.
Commodity prices	Five day simple average calculated the day before delivery	The value of each metal credit delivery is determined in terms of the contract.


Key input		Further information
Estimated financing rate over life of arrangement	11.5%	See note 5.2
Remaining life of stream	6 years	The life of the stream was determined by the reserves of the Marikana Easterns' Tailings Dam no.1.
6E PGM entitlement percentage	23.0%	The 6E PGM entitlement percentage ranged from 23% to 38% based on a weighted 6E PGM basket price that was determined monthly.
Monthly cash percentage	20.0%	The monthly cash payment received was a percentage of the 6E PGM weighted basket price, ranging from 16% to 20%, and was based on a weighted 6E PGM basket price that is determined monthly. This cash payment was capped at a minimum of $106 per ounce and a maximum of $280 per ounce.
Commodity prices	Average monthly basket price	The monthly basket price for any calendar month was calculated by dividing the sum of the monthly average value of weighted 6E PGM basket by the total number of ounces for such calendar month.

Schedule of changes in deferred revenue

The following table summarises the changes in deferred revenue:


Figures in million - SA rand	Note	2022	2021	2020
Balance at beginning of the year		6,360	6,430	8,167
Deferred revenue advance received1		24	468	771
BTT early settlement payment		—	—	(787)
Deferred revenue recognised during the period2		(290)	(847)	(2,256)
Interest charge	5.2	326	309	349
Loss on BTT early settlement		—	—	186
Balance at the end of the year		6,420	6,360	6,430
Reconciliation of the deferred revenue transactions balance at year end:
Wheaton Stream		6,420	6,292	6,430
Marikana toll treatment arrangement		—	68	—

Reconciliation of the non-current and current portion of the deferred revenue:
Deferred revenue		6,420	6,360	6,430
Current portion of deferred revenue		(21)	(156)	(67)
Non-current portion of deferred revenue		6,399	6,204	6,363

1 The amount received for the year ended 31 December 2022 and 31 December 2021 relates to the toll treatment arrangement entered into by Marikana, representing cash receipts of R24 million (2021: R65 million) and the fair value of inventory received of Rnil (2021: R403 million). The R771 million received in 2020 relates to the WPL forward platinum sale arrangement entered into on 3 March 2020 which concluded on 7 December 2020

2 Revenue recognised during the year of R290 million relates to R198 million recognised on the Wheaton Stream (2021: R447 million, 2020: R344 million) and R92 million recognised on material received during 2021 with respect to the toll treatment arrangement entered into by Marikana during 2021 (2021: R400 million). The remaining revenue recognised for the year ended 31 December 2020 relates to R785 million recognised in respect of the WPL forward platinum sale arrangement entered into on 3 March 2020, R1,108 million recognised in respect of the October 2019 forward gold sale arrangement and R19 million recognised in respect of the BTT, respectively. The October 2019 forward gold sale as well as the BTT concluded during the 2020 financial year