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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010

Notes 1-10 | 11-20 | 21-33


		2010	2009
		R’000	R’000
11.	TREASURY SHARES
	Balance at beginning of year	(2 125 285)	(2 341 725)
	349 747 (2009: 72 000) Assore shares, being 1,25% (2009: 0,26%) of issued share capital at the time, acquired by Main Street 460 (Proprietary) Limited, a wholly owned subsidiary of Assore at R668,32 per share (2009: average price of R367,57 per share) in terms of the authority granted by shareholders at the Annual General Meetings held on 27 November 2009 and 30 November 2007 respectively	(233 743)	(26 465)
	Cancellation of 428 347 shares acquired at an average cost of R580,65 per share in terms of the authority granted by shareholders at a general meeting held on 4 September 2008	–	248 718
	Costs of cancellation of shares written off	–	(775)
	Warehouse transaction costs for shares bought by wholly owned subsidiary companies during 2008 written off	–	(5 038)
	Balance at end of year	(2 359 028)	(2 125 285)

12.	OTHER RESERVES
	Foreign currency translation reserve arising on consolidation	17 817	17 814
	After-tax fair value adjustment arising on the revaluation of available-for-sale investments	246 603	102 901
	Gross fair value adjustment at year-end (refer note 5)	286 496	119 401
	Less: Deferred capital gains taxation	(39 893)	(16 500)

		264 420	120 715

13.	LONG-TERM BORROWINGS
	Preference shares
	Balance at beginning of year:
	452 (2009: 536) “A” cumulative, redeemable, variable rate preference shares of 1 cent each issued by Main Street 350 (Proprietary) Limited on 6 February 2006 to Standard Bank of South Africa Limited (SBSA) to finance the acquisition of Assore shares by the Bokamoso Trust, issued at a premium of R99 999,99 per share	45 200	58 987
	Redemption(s) during the year:
	452 shares (2009: 84 shares)	(45 200)	(13 787)
	Balance at end of year (2009: 452 shares)	–	45 200
	Long-term portion of finance lease liabilities
	Finance lease liabilities over vehicles with a carrying amount of R5,7 million (2009: R11,1 million) repayable in varying monthly instalments over 24 months (2009: 36 months) which bear interest at 1,28% (2009: 1,28%) below the prime overdraft rate	6 345	13 759
	Less: Repayable within one year included in short-term borrowings (refer note 18)	(3 612)	(7 403)
		2 733	6 356
		2 733	51 556
	The finance leases relate to mining vehicles and there are no terms of renewal or purchase options included in the agreements concerned.

			Balance at year-end	Repayable during the years ending 30 June
			Balance at year-end	Repayable during the years ending 30 June
			2010	2011	2012	2013	2014
			R’000	R’000	R’000	R’000	R’000
2010
Secured
– finance lease liabilities			6 345	3 612	2 733	–	–

			2009	2010	2011	2012	2013
			R’000	R’000	R’000	R’000	R’000
2009
Secured
– finance lease liabilities			13 759	7 403	3 989	2 367	–

Interest payable and repayment terms
				2010		2009
					Present		Present
				Minimum	value of	Minimum	value of
				payments	payments	payments	payments
				R’000	R’000	R’000	R’000
Repayable	–	within one year		3 612	3 612	7 403	7 403
	–	after one year but not more than five years		4 282	2 733	7 894	6 356
Total minimum lease payments				7 894	6 345	15 297	13 759
Less: Finance charges				1 549	–	1 538	–
Present value of minimum lease payments (as above)				6 345	6 345	13 759	13 759


		2010	2009
		R’000	R’000
14.	DEFERRED TAXATION
	At year-end
	Raised on the following:
	Accelerated capital allowances	1 747 504	1 412 877
	Provisions raised	(70 925)	(73 883)
	Valuation of inventories	(907)	(16 091)
	Income received in advance	(5 217)	–
	Revaluation of available-for-sale investments	39 893	16 500
	Other	3 381	2 433
		1 713 729	1 341 836
	Movements
	Balance at beginning of year	1 341 836	899 701
	– deferred tax assets	74 309	61 977
	– deferred tax liabilities	1 416 145	961 678
		371 893	442 135
	Accelerated capital allowances	334 627	513 962
	Provisions reversed	2 958	(21 566)
	Valuation of inventories	15 184	(11 577)
	Income received in advance	(5 217)	–
	Revaluation of available-for-sale investments	23 393	(40 492)
	Other	948	1 808
	Balance at end of year	1 713 729	1 341 836
	– deferred tax assets	71 572	74 309
	– deferred tax liabilities	1 785 301	1 416 145

15.	LONG-TERM PROVISIONS
	Environmental obligations
	Provision against cost of decommissioning assets	116 659	119 366
	Balance at beginning of year	119 366	101 895
	Provisions (reversed)/raised during the year	(3 355)	12 934
	Provision discount adjustment	648	4 537
	Provision for cost of environmental restoration	54 586	61 161
	Balance at beginning of year	61 161	39 373
	Provisions (reversed)/raised during the year	(10 649)	21 327
	Payments made for restoration	–	(411)
	Provision discount adjustment	4 074	872

	*Carried forward*	171 245	180 527
	*Brought forward*	171 245	180 527
	Post-retirement healthcare benefits (refer note 33)
	Balance at beginning of year	10 648	9 260
	Movement for the year	(51)	1 388
		10 597	10 648
	Deferred bonus scheme
	Balance at beginning of year	14 782	–
	Provision raised during the year	17 469	14 782
	Balance at end of year	32 251	14 782
	Per statement of financial position	214 093	205 957
	Environmental obligations before funding (as above)	171 245	180 527
	Less: Cash deposits held by environmental trusts (per statement of financial position)	57 927	47 739
	Obligation provided, but not yet funded	113 318	132 788

	The inflation rates applied to estimated costs used in the discounted cash flow calculation to determine the provision for environmental rehabilitation vary between 4% and 9,5% (2009: 6% and 10,5%) and the nominal discount rates vary between 7,5% and 13% (2009: 8% and 13%).

16.	TRADE AND OTHER PAYABLES
	Trade payables	950 017	573 709
	Other payables	56 061	74 781
		1 006 078	648 490
	Trade and other payables are non-interest bearing, the terms of payment vary between 30 and 60 days.

17.	SHORT-TERM PROVISIONS
	Bonuses
	Balance at beginning of year	2 810	2 401
	Provisions raised during the year	2 976	2 810
	Payments made during the year	(2 810)	(2 401)
	Balance at end of year	2 976	2 810
	Leave pay
	Balance at beginning of year	29 939	25 534
	Provisions raised during the year	5 869	4 469
	Payments made during the year	(21)	(64)
	Balance at end of year	35 787	29 939
	Environmental compliance
	Balance at beginning of year	76 091	54 870
	Provisions (reversed)/raised during the year	(22 634)	21 221
	Payments made during the year	(7 684)	–
	Balance at end of year	45 773	76 091
	Other
	Balance at beginning of year	2 076	2 079
	Provisions raised during the year	164	–
	Payments made during the year	–	(3)
	Balance at end of year	2 240	2 076
	Per statement of financial position	86 776	110 916

18.	SHORT-TERM BORROWINGS AND OVERDRAFTS
	Preference shares
	220 cumulative, redeemable, variable rate preference shares issued to Standard Bank of South Africa Limited (SBSA) on 15 September 2008, which are required to be redeemed in tranches of at least R500 million annually, commencing on the last day of February in 2010. At 30 June 2010, 127 shares (2009: 77 shares) had been redeemed in the amount of R1 252 million (2009: R752 million), of which 77 shares were voluntarily redeemed in the amount of R752 million, in terms of authority granted by shareholders in a general meeting on 3 February 2009. The shares have a par value of 1 cent each, and were issued and are redeemable at a premium of R9 999 999,99 each. The preference dividends accrue at a rate linked to the prime lending rate applied by SBSA	930 000	1 430 000
	Current portion of long-term borrowings (refer note 13)	3 612	7 403
	Overdrafts (unsecured)	98 033	186 440
		1 031 645	1 623 843
	Overdrafts and short-term borrowings are repayable on demand and interest rates are linked to the prime overdraft rate.

19.	REVENUE
	Revenue comprises:
	Sales of mining and beneficiated products	7 085 669	8 818 655
	Interest received	190 827	366 720
	Commissions on sales and technical fees	229 382	278 832
	Gross receipts	439 907	531 742
	Eliminated on proportionate consolidation of Assmang	(210 525)	(252 910)
	Dividends received from available-for-sale investments	17 770	20 030
	Sale of by-products	12 821	15 450
	Other	29 113	27 982
		7 565 582	9 527 669

20.	FINANCE COSTS
	Paid on:
	Preference shares (refer notes 13 and 18)	114 080	175 615
	Share warehousing facility	–	80 810
	Finance leases, general banking facilities and rehabilitation provisions	9 553	47 638
		123 633	304 063
	Less: Amounts capitalised (refer note 2)	–	(5 915)
		123 633	298 148

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010

11.

TREASURY SHARES

12.

OTHER RESERVES

13.

LONG-TERM BORROWINGS

14.

DEFERRED TAXATION

15.

LONG-TERM PROVISIONS

16.

TRADE AND OTHER PAYABLES

17.

SHORT-TERM PROVISIONS

18.

SHORT-TERM BORROWINGS AND OVERDRAFTS

19.

REVENUE

20.

FINANCE COSTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010