Goodwill and other intangibles

12 Months Ended

Dec. 31, 2024

Disclosure of reconciliation of changes in goodwill [abstract]

17. Goodwill and other intangibles

Significant accounting judgements and estimates

Goodwill is tested for impairment on an annual basis and whenever impairment indicators are identified. Expected future cash flows used

to determine the recoverable amount of property, plant and equipment and goodwill are inherently uncertain and could materially

change over time. The recoverable amount is significantly affected by a number of factors including reserves and production estimates,

together with economic factors such as the expected commodity price, foreign currency exchange rates, and estimates of production

costs, future capital expenditure and discount rates (see note 10).

An individual operating mine does not have an indefinite life because of the finite life of its reserves. The allocation of goodwill to an

individual mine will result in an eventual goodwill impairment due to the depleting nature of the mine.

Accounting policy

Goodwill is stated at cost less accumulated impairment losses. Goodwill is not amortised. In accordance with the requirements of IAS 36

Impairment of Assets, the Group performs its annual impairment review of goodwill at each financial year end or whenever there are

impairment indicators to establish whether there is any indication of impairment to goodwill. Goodwill is allocated to CGUs for the purpose

of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination

in which the goodwill arose. An impairment is made if the carrying amount exceeds the recoverable amount. The recoverable amount is

determined as the higher of “value in use” and “fair value less cost to sell”, based on the cash flows over the life of the CGUs and

discounted to a present value at an appropriate discount rate. Impairment losses on goodwill are not reversed. Gains and losses on the

disposal of an entity include the carrying amount of goodwill allocated to the entity sold. Other intangible assets, including customer

relationships, software, patents and trademarks that are acquired by the Group and have finite useful lives, are measured at cost less

accumulated amortisation and any accumulated impairment losses.

Amortisation on intangible assets is calculated on a straight-line method over the estimated useful lives, and is generally recognised in profit

or loss. The estimated useful lives for intangible assets are as follows:

•Vendor relationships - Aggregators: 5 years

•Vendor relationships - Manufacturers: 10 years

•Brand: 5 years


Figures in million – SA rand	Notes	2024	2023	2022
Goodwill
Balance at beginning of the year		499	8,241	7,727
Goodwill on acquisition of subsidiaries	16.1	283	—	23
Impairment	10	—	(8,435)	—
Foreign currency translation		—	693	491
Carrying value at end of the year1		782	499	8,241
Other intangibles
Cost
Balance at beginning of the year		98	86	—
Intangible assets acquired on acquisition of subsidiaries	16.1	1,397	—	83
Additions		4	—	—
Foreign currency translation		(3)	12	3
Balance at end of the year		1,496	98	86

Accumulated amortisation and impairment
Balance at beginning of the year		95	5	—
Impairment	10	—	86	—
Foreign currency translation		(1)	—	—
Charge for the year		126	4	5
Balance at end of the year		220	95	5
Carrying value at end of the year2		1,276	3	81
Total goodwill and other intangibles		2,058	502	8,322

1The goodwill arose on the acquisition of the below subsidiaries:

•SFA (Oxford), amounting to R123 million allocated to the Stillwater (R60 million), Rustenburg (R44 million) and Kroondal (R18 million) CGUs, where it is tested for

impairment. During 2023, the R60 million goodwill allocated to Stillwater was impaired (see note 10). The remaining carrying value of goodwill related to the SFA (Oxford)

acquisition amounts to R63 million at 31 December 2023

•Qinisele Resources, amounting to R54 million and fully impaired by 31 December 2020

•Cooke, amounting to R737 million which was fully impaired by 31 December 2020

•Aquarius Platinum (South Africa) Proprietary Limited (Aquarius), amounting to R401 million allocated to the Kroondal (R134 million) and the Rustenburg operation (R267

million) CGUs, where it is tested for impairment. No impairment has been recognised

•Stillwater, amounting to US$450 million (R5,874 million), at the exchange rate on the acquisition effective date) allocated to the Stillwater CGU. During 2023, the entire

goodwill amount allocated to the Stillwater CGU with a carrying value of R8,352 million was impaired (see note 10)

•DRDGOLD, amounting to R35 million allocated to the DRDGOLD CGU, where it is tested for impairment. No impairment has been recognised

•Sandouville, amounting to R23 million allocated to the Sandouville CGU. During 2023, the entire goodwill amount allocated to the Sandouville CGU was impaired (see

note 10)

•Reldan, amounting to R283 million allocated to the Reldan CGU, where it is tested for impairment. No impairment has been recognised

2Included in the balance at 31 December 2024, is an intangible asset in respect of vendor relationships - manufacturers amounting to R1,146 million with a remaining

amortisation period of approximately nine years

The recoverable amount of goodwill was calculated based on the value in use of the CGUs to which to goodwill was allocated.

Goodwill amounting to R1,092 million (US$58 million) is deductible for tax purposes in respect of the Reldan acquisition (see note 16.1).

The Group’s estimates and assumptions used in the 31 December 2024 impairment testing include:


		Gold operations1			PGM operations			Europe (Sandouville nickel refinery)2		AUS operations	*	Reldan
		2024	2023	2022	2024	2023	2022	2023	2022	2023		2024
Average gold price3,5	R/kg	1,324,530	1,072,364	869,035
Average PGM (4E) basket price4,5	R/4Eoz				26,963	29,124	27,566
Average PGM (2E) basket price5	US$/2Eoz				1,120	1,281	1,334
Average nickel price5	US$/lbs							8.9	8.3
Average cobalt price5	US$/lbs							15.8	22.1
Average zinc price5	A$/t									3,873
Average gold price5	US$/oz											2,329
Average silver price5	US$/oz											29
Nominal discount rate — South Africa6,7	%	14.3- 15.7	13.7 - 15.8	13.9 - 15.8	21.3 - 21.5	22.5 - 22.7	22.5 - 22.6
Nominal discount rate — US7	%				13.0	12.0	12.9					15.3
Nominal discount rate — Europe7	%							7.4	9.8
Nominal discount rate — Australia7	%									9.3
Inflation rate — South Africa3,8	%	5.0	6.0	6.5	5.0	6.0	6.5
Inflation rate — US8	%				2.1	2.5	4.0					2.1
Inflation rate — Europe8	%							1.6	2.5
Inflation rate — Australia8	%									2.9
Life-of-mine3,9	years	4 - 10	4 - 11	4 - 10	13 - 45	14 - 47	15 - 49	23	24	4		N/A

*No impairment assessment performed at 31 December 2024 as carrying values reduced to nil due to change in the rehabilitation provision

1Include the operating gold mines Driefontein, Kloof and Beatrix

2The Keliber impairment assessment at 31 December 2024 applied an average lithium hydroxide price of US$18,640/t (2023: US$22,933/t), nominal discount rate of 9.9%

(2023: 10.1%), inflation rate of 2% (2023: 2%) and a life-of-mine of 23 years (2023: 24 years)

3The estimates and assumptions used in the impairment assessment of the Burnstone project include an average gold price of R1,189,493/kg (2023: R1,012,625/kg, 2022:

R793,473/kg), inflation rate of 5.0% (2023: 6.0%, 2022: 6.5%) and life-of-mine of 25 years (2023: 25 years, 2022: 22 years)

4The average PGM basket price used on the Mimosa equity-accounted joint venture was R25,433/4Eoz (2023: R26,632/4Eoz, 2022: R25,420/4Eoz)

5The average prices and the exchange rate were derived by considering various bank and commodity broker consensus forecasts

6Nominal discount rate for the Burnstone project is 17.5% (2023: 18.9%, 2022: 17.4%) and for the equity-accounted joint venture Mimosa, 22.7% (2023: 31.2%, 2022: 30.7%)

7The nominal discount rate is calculated as the weighted average cost of capital of the respective CGUs

8The inflation rate is based on the expected forecast inflation rate in the geographical region which most affects the CGU's cash flows

9Periods longer than five years are considered appropriate based on the nature of the operations since a formally approved life-of-mine plan is used to determine cash

flows over the life of each mine based on the available reserves

The cash flows are based on the annual life-of-mine plans that takes into account the following:

•Proved and probable ore reserves of the CGUs

•Revenue based on the consensus forecast commodity prices and operating costs

•Sustaining capital expenditure estimates over the life-of-mine plan

•Developmental capital expenditure, where applicable

Results of impairment assessments for the Group's CGUs and goodwill allocated to CGUs

Other than the impairment recognised in note 10, no further impairment was recognised at 31 December 2024 for the Group's CGUs, or any

CGUs with allocated goodwill. However, holding all other assumptions constant, the table below illustrates possible changes in certain key

assumptions used in the Group's impairment assessments that could result in impairment. There was low to minimal headroom in the

recoverable amounts for the CGUs listed below.


CGU	Key assumption	Value of key assumption	Change to key assumption resulting in impairment
Marikana	Average 4E PGM basket price	R26,380/4Eoz	4.3%
Keliber	Average lithium hydroxide price	US$18,640/t	0.1%
Mimosa	Average 4E PGM basket price	R25,433/4Eoz	0.1%

In addition, a significant portion of the recoverable amount of the Stillwater CGU is based on the income expected from Section 45X

Advanced Manufacturing Production Tax Credit for critical minerals in the US. Negative legislative changes could have a significant impact

on the recoverable amount of the Stillwater CGU. A 1% change in the value of the credit has a 12% impact on the recoverable amount of

this CGU.