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 recognises the cost of ore stockpiles and metal-in-process when it can be reliably measured. Production cost is allocated to

these inventories from the stage where the cost becomes reliably measurable. 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

•Scrap metal acquired for processing and resale are valued using the weighted average cost method. Cost includes purchase price

and other directly attributable costs incurred to bring the inventory to its present location and condition, including transport, sampling

and assay costs