Notes 1-9 to the Financial Statements

Borrowing costs
Borrowing costs amounting to R94 million were capitalised in respect of the year to 30 June 2001 (2000: R38 million). Specific US$ denominated borrowings are capitalised at varying rates between 6,25% and 7,25% and rand denominated borrowings are capitalised at a rate based on JIBAR plus 2,25%.

Capital work in progress
Included in the above assets is R3 393 million (2000: R2 303 million) relating to projects in progress from which no revenue is currently derived.

Leased assets
Additions include R1 million (2000: R5 million) assets leased under finance leases.
Included in plant and machinery is leased assets with a book value of R5 million (2000: R4 million).

	Mine Develp- ment & exploration	Decom- missioning assets	Plant & Machinery	Land and Buildings	Other	Total
Company – Rm Cost
Balance at 30 June 1999	80	-	43	17	22	162
Additions	10	1	1	-	5	17
Additions	-	-	-	-	(3)	(3)
Balance at 30 June 2000	90	1	44	17	24	176
Additions	10	-	4	-	10	24
Disposals	-	-	-	-	(2)	(2)
Balance at 30 June 2001	100	1	48	17	32	198
Accumulated amortisation and depreciation
Balance at 30 June 1999	12	-	11	-	18	41
Charge for the year	10	-	7	-	5	22
Disposals	-	-	-	-	(3)	(3)
Balance at 30 June 2000	22	-	18	-	20	60
Charge for the year	19	-	-	-	6	25
Balance at 30 June 2001	41	-	18	-	26	85
Carrying value at 30 June 2000	68	1	26	17	4	116
Carrying value at 30 June 2001	59	1	30	17	6	113

A register containing details of mineral and mining rights and land and buildings is available for inspection during business hours at the registered address of the Company by members or their duly authorised agents.

	Group 2001 Rm	Group 2000 Rm	Company 2001 Rm	Company 2000 Rm
3. ENVIRONMENTAL REHABILITATION TRUST FUNDS
Total environmental rehabilitation obligation (note 11)	115	109	8	8
Less: Trust funds	59	51	7	7
Net liability	56	58	1	1
Movement in trusts’ funds
Balance at beginning of year	51	94	7	-
Amounts received during the year	2	4	-	1
Less: Work completed	-	(1)	-	-
Interest earned	4	4	-	1
Transfer of Hartebeestfontein mine entitlement	-	(57)	-	-
Other	2	7	-	5
	59	51	7	7
4. INVESTMENTS
Associated companies Unlisted
Book value	-	-	-	-
Directors' valuation of unlisted investments	1	1	1	1
Listed – subsidiary companies
Book value			1552	1235
Listed – other investments
Original cost	546	52	555	61
Revaluation surplus	635	-	635	-
Closing carrying amount	1181	52	1190	61
Total – listed investments	1181	52	2742	1296
Market value of listed investments	1181	131	4162	2099
Unlisted – subsidiary companies
Book value			451	451
Loans			34	40
			485	491
Unlisted – other	5	5	4	4
Total unlisted	5	5	489	495
Total carrying amount of investments	1186	57	3231	1791
Directors' valuation of unlisted investments
– subsidiaries and other	8	12	490	456
– partnerships and joint ventures	-	-	150	150
	8	12	640	606

The accounting policy for the revaluation of investments was changed during the year to comply with AC 133 – Financial Instruments – Recognition and Measurement.

Included in investments was a call option on 9,5 million Iscor shares at a net exercise price of R25,00 per share with a financial institution. On 19 September 2001, 4,2 million of these options were exercised and the balance of 5,3 million options have lapsed.

5. JOINT VENTURES
The proportionate share of the following joint venture has been included in the Company’s results:
– a 75 per cent share in the Nkomati mine.
The proportionate shares of the following joint ventures have been included in the Group’s results:
– a 75 per cent share in the Nkomati mine;
– a 50 per cent share in Cato Ridge Alloys (Proprietary) Limited; and
– a 23 per cent share in Lannex (sold effective 1 July 2001).

The aggregate amounts of joint ventures proportionately consolidated in the financial statements are:

	Group 2001 Rm	Group 2000 Rm	Company 2001 Rm	Company 2000 Rm
Income statements
Revenue	377	345	327	264
Profit for the year after taxation	132	97	130	108
Balance sheets
Non-current assets	125	129	92	94
Current assets	174	216	112	167
Non-current liabilities	29	29	29	29
Current liabilities	104	117	28	101
Cash flow statements
Net cash inflow from operating activities	50	104	36	102
Net cash outflow from investing activities	(22)	(17)	(21)	(16)
Net cash outflow from financing activities	(51)	(73)	(44)	(72)
Loan to joint venture	-	-	-	44
Commitments and contingent liabilities
Commitments	3	-	-	-
6. INVENTORIES
Consumable stores	105	68	1	-
Raw materials	321	277	13	16
Work in progress	35	30	-	-
Finished goods	261	211	-	-
	722	586	14	16
7. SHARE CAPITAL AND PREMIUM
Share capital Authorised
196 668 737 (2000: 196 668 737) ordinary shares of 5 cents each	10	10	10	10
646 380 (2000: 646 380) compulsorily convertible preference shares of 678 cents each	4	4	4	4
	14	14	14	14
Issued
110 104 818 (2000: 107 609 995) ordinary shares of 5 cents each	6	5	6	5
Nil (2000: 646 380) compulsory convertible preference shares of 678 cents each	-	4	-	4
Share premium	56	51	56	51
– Balance at beginning of the year	51	1692	51	1692
– Share issue net of expenses	-	9	-	9
– Special distribution	-	(1697)	-	(1697)
– Shares issued in lieu of dividends	-	47	-	47
– Premium on shares issued	5	-	5	-
Total issued share capital and premium	62	60	62	60

 

	Group 2001 Rm	Group 2000 Rm	Company 2001 Rm	Company 2000 Rm
8. MINORITY INTEREST
Balance at beginning of year
Transfer from income statement	1185	1128
Dividends paid to minorities	124	57
Funding received from subsidiary rights issue	(13)	(13)
Other	5	3
Balance at year end	1483	1185
9. LONG-TERM BORROWINGS
SA rand long-term borrowings
Secured loans
Secured by bonds, pledges and charges over certain immovable property, certain movable corporeal assets, rights, hedging receivables and certain bank accounts. Interest is calculated at 2,25% above JIBAR rate.
The loan is to be repaid in twelve equal quarterly instalments commencing on 31 March 2003.	150	-	-	-
Unsecured loans
Fixed term loan of five years terminating on 11 June 2002. The loan bears interest at a nominal rate of 15,96 per cent,  repayable in ten equal six-monthly installments of R14 million commencing on 11 December 1997 with a final installment on 11 June 2002. Other unsecured loans	23 2	45 11	- -	- 11
Total borrowings	175	56	-	11
Less: Repayable within one year included in short-term borrowings	23	11	-	11
Total SA rand long-term borrowings	152	45	-	-
9. LONG-TERM BORROWINGS (continued) US dollar long-term borrowings Secured loans
– Loans of US$67 million (2000: US$20 million) at a fixed interest rate of 6,75% and repayable in semi annual instalments over six and a half years, commencing six months after final draw down. The loan is secured with a pledge of shares and cash and a guarantee from Avmin. This loan is repayable in ten bi-annual instalments, commencing in March 2002.	540	160	-	-
– Loan of US$20 million (2000: Nil) at a fixed interest rate of 2% above LIBOR. This loan is secured by a guarantee from Avmin. This loan is repayable in ten bi-annual instalments commencing September 2001 and ending September 2006.	162	-	-	-
– Loan of US$19 million (2000: Nil). Secured by bonds, pledges and charges over certain immovable property, certain movable corporeal assets, rights, hedging receivables and certain bank accounts. Interest is calculated at 2,25% above LIBOR. The loan is repayable in twelve equal quarterly instalments commencing on 31 March 2003.	152	-	-	-
Unsecured loans
– Unsecured loan of US$0,5 million (2000: US$0,8 million). The loan bears interest at 6,50% and is repayable in two instalments of US$0,3 million and US$0,2 million during the years ended 30 June 2002 and 30 June 2003 respectively.	4	5	-	-
Total borrowings	858	165	-	-
Less: Repayable within one year included in short-term borrowings	89	2	-	-
Total US dollar long-term borrowings	672	163	-	-
Total borrowings at end of the year	1033	221	-	11
Less: Repayable within one year included in short-term borrowings	112	13	-	11
Total borrowings at end of the year	921	208	-	-
Made up as follows:
– Assmang Limited	3	3	-	-
– Anglovaal Air (Proprietary) Limited	-	45	-	-
– Avgold Limited	302	-	-	-
– Chambishi Metals plc	616	160	-	-
	921	208	-

 

 

9. LONG-TERM BORROWINGS (continued)
Interest payable and repayments

Group – Rm	Rate of interest % p.a.	Total borrowings 2001	2002	2003	2004	2005	2006 onwards
Secured Loans	6 - 10%	702	86	140	140	140	196
	6 - 10%	152	-	25	51	51	25
	13%	150	-	25	50	50	25
		1004	86	190	241	241	246
Finance lease	0 - 5%	1	-	1	-	-	-
Unsecured Loans	6 - 10%	5	3	2	-	-	-
	16%	23	23	-	-	-	-
		28	26	2	-	-	-
Total Long Term loans		1033	112	193	241	241	246