Inventories

12 Months Ended

Dec. 31, 2024

Classes of current inventories [abstract]

23. Inventories

Significant accounting judgements and estimates

Inventory is held in a wide variety of forms across the value chain reflecting the stage of refinement. Prior to production as final metal, the

inventory is always contained within a carrier material. As such, inventory is typically sampled and assays taken to determine the metal

content and how this is split by metal. Measurement and sampling accuracy can vary quite significantly depending on the nature of the

vessels and the state of the material. An allowance for estimation uncertainty is applied to the various categories of inventory and is

dependent on the degree to which the nature and state of material allows for accurate measurement and sampling. The range used for

the estimation allowance varies based on the stage of refinement. The range is based on independent metallurgists’ level of confidence

obtained from the outcome of the stocktake. Those results are applied in arriving at the appropriate quantities of inventory.

Metals in process quantities

Recoverable metal quantities are reconciled to ore input and actual metal recoveries. Due to inherent limitations on precise monitoring of

recoverability levels, the process of metallurgically balancing inputs and outputs is regularly monitored and metallurgical estimates are

refined through reference to actual results. Periodic inventory counts are conducted at refineries to assess the accuracy of inventory

quantities. Where required, changes in metallurgical estimates are factored into the measurement of metal inventory. Due to expected

levels of estimation uncertainty, reasonable tolerances of total metals are accepted in the measurement of PGM in process quantities.

Accounting policy

Inventory is measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course

of business, less estimated costs of completion and the estimated costs necessary to make the sale. Prior to physical separation and while

metals are still in the production process, the combined net realisable value of the metals in process is compared to the combined costs of

the metals in process for purposes of measuring "in process" inventory at the lower of cost and net realisable value.

The Group values ore stockpiles and metal-in-process when it can be reliably measured. Cost is determined on the following basis:

•Gold reef ore stockpiles and gold-in-process are valued using weighted average cost. Cost includes production, amortisation,

depreciation and related administration costs

•PGM and battery metals inventory is valued using weighted average cost by allocating cost, based on the joint cost of production,

apportioned according to the relative sales value of each of the PGMs and battery metals produced. The group recognises the metal

produced in each development phase in inventory with an appropriate proportion of cost. Cost includes production, amortisation,

depreciation and related administration costs

•By-product metals are identified based on the relative importance and materiality of the relevant metals in relation to the basket of

metals mined or produced at each operation. By-product metals are generally valued at the incremental cost of production from the

point of split-off from the joint products in the relevant processing stream, considering the nature and objective of the operation

•Consumable stores are valued at weighted average cost after appropriate provision for surplus and slow-moving items


Figures in million – SA rand	2024	2023	2022
Consumable stores1	3,420	3,317	2,066
PGM ore and mill inventory	134	276	535
PGM in process2	14,241	13,292	13,673
PGM finished goods	6,160	6,948	7,856
Gold in process	371	320	233
Gold bullion	665	959	1,096
Sandouville metals in process	244	327	357
Sandouville raw materials	140	168	307
Sandouville finished goods	94	292	187
Zinc concentrate inventory	19	345	—
Other	61	119	74
Total inventories	25,549	26,363	26,384

1The cost of consumable stores consumed during the year and included in operating cost amounted to R24,685 million (2023: R25,778 million and 2022:R21,929 million)

2Included in PGM in process, is R5,724 million (2023: R6,771 million, 2022: R5,882 million) relating to the Marikana operations

Inventories were reduced during 2024 by R4,784 million (2023: R1,694 million and 2022: R111 million) due to write-down to net realisable

value. The write-downs mainly relate to PGM in process and PGM finished goods of R3,843 million (2023: R1,179 million) and R844 million

(2023: R423 million), respectively, as a result of the lower commodity price environment. The write-down in 2022 related to consumable

stores. The write-downs are included in cost of sales (see note 4).