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Annual Results for the year ended 31 December 2021
Creating economic value for all our stakeholders by delivering
MORE THAN MINING

Notes to the summary consolidated annual financial statementsfor the year ended 31 December 2021

1. BASIS OF PREPARATION

The summary consolidated annual financial statements are prepared in accordance with the requirements of the JSE Listings Requirements as well as the requirements of the Companies Act applicable to summary financial statements. The JSE Listings Requirements require summary reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and also, as a minimum, contain the information required by IAS 34: Interim Financial Reporting. The accounting policies applied in the preparation of the consolidated annual financial statements from which the summary consolidated financial statements were derived are in terms of IFRS and are consistent with those accounting policies applied in the previous consolidated annual financial statements.

The summary consolidated annual financial statements for the year ended 31 December 2021 were prepared under the supervision of the Financial Director, Hanré Rossouw.

2. ACCOUNTING POLICIES

The accounting policies applied in the preparation of the consolidated annual financial statements, from which the summary consolidated financial statements were derived, are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated annual financial statements. For the impact of adoption of new standards, refer to Note 1 of the consolidated annual financial statements. None of the amendments to the existing standards had any impact on the amounts recognised in the prior periods and are not expected to affect current or future periods.

3. AUDIT OPINION

These summary consolidated annual financial statements for the year ended 31 December 2021 have not been audited by KPMG Inc. The auditor expressed an unmodified opinion on the consolidated annual financial statements from which these summary consolidated annual financial statements were derived. A copy of the auditor's report on the consolidated annual financial statements is available for inspection at the registered office of Royal Bafokeng Platinum Limited, together with the annual financial statements identified in the respective auditor's report. The consolidated annual financial statements can be accessed on the Company's website www.bafokengplatinum.co.za.

4. AVAILABLE FUNDS

RBPlat had cash and cash equivalents on hand at 31 December 2021 of R4 898.4 million (2020: R2 243.2 million). Included in the R4 898.4 million cash balance is restricted cash of R128.1 million (2020: R163.1 million) ring-fenced for the RBPlat housing project.

The Group has R3 008 million debt facilities (excluding PIC housing facility). During 2021, the balance outstanding on the term debt was repaid. The term debt and the Revolving Credit Facility (RCF) were replaced with a new RCF amounting to R2 000 million and a one-year General Banking Facility (GBF) amounting to R1 008 million.

At year-end R119.4 million (2020: R119.4 million) of the R1 008 million GBF was utilised for guarantees. The RCF remained unutilised at 31 December 2021. The PIC housing facility was a R2 200 million facility accruing interest at CPI plus a margin of 1%. At 31 December 2021, R1 273.7 million was drawn (2020: R1 273.7 million). Following the suspension of the construction of the houses and commencement of repayments in 2021, the undrawn portion of the facility is no longer available resulting in the reduction of the total facility to R1 273.7 million.

5. TRADE AND OTHER RECEIVABLES

Royal Bafokeng Resources Proprietary Limited (RBR) entered into a disposal of concentrate agreement with Rustenburg Platinum Mines Limited (RPM) in terms of which the concentrate of the Platinum Group Metals (PGMs) produced by RBR operations will be treated by RPM.

Trade receivables (RPM concentrate debtor) is measured at fair value through profit or loss from the date of recognition up to date of settlement, as it fails the IFRS 9 amortised cost requirement of cash flows representing solely payment of principal and interest. Payment is due on the last day of the fourth month following delivery. As at 31 December, Rnil (2020: R258.6 million) of trade receivables balance relates to the force majeure that was announced by Anglo American Platinum on 6 March 2020.

The fair value changes due to non-market variability (that is, changes based on quantity and quality of the contained metal) are considered to be variable consideration within the scope of IFRS 15 as RBR's right to consideration is contingent upon the physical attributes of the contained metal. The historic and current year differences between the initial assay and final assay are not significant. Therefore, the variable consideration is not considered to be constrained.

The fair value changes due to market variability (that is, changes in the commodity prices and exchange rates) are not in the scope of IFRS 15 and are therefore not presented as revenue from contracts with customers. The changes in commodity prices are accounted for as other revenue and disclosed separately from revenue from contracts with customers and changes in exchange rates are accounted for as other income.

The exchange rate and commodity price used to fair value the trade receivables at the end of the period was R15.8606 (2020: R14.8753 and US$1 683.8 (2020: US$1 866.3) per ounce, respectively.

Impala royalty receivable, restricted cash, interest accrued and other receivables, are measured at amortised cost. Maseve restricted cash relates to cash that is set aside for Eskom and DMRE guarantees. In total, R15.7 million of this relates to the Eskom guarantee while R12.7 million relates to the DMRE. This cash is not realisable within three months and therefore it is not classified as cash and cash equivalents.

Revenue from mineral resources in South Africa is subject to the Mineral and Petroleum Resource Royalty Act 2008 (Royalty Act). The Royalty Act imposes a royalty on refined and unrefined minerals payable to the State. The royalty in respect of refined and unrefined minerals is calculated by dividing Earnings Before Interest and Tax (EBIT) by the product of 12.5 times gross revenue calculated as a percentage, plus an additional 0.5%. EBIT refers to taxable mining income (with certain exceptions such as no deduction for interest payable and foreign exchange losses) before assessed losses but after capital expenditure.

The North West Department of Education restricted cash related to R70 million received from the Department of Education to fund part of the costs of building the school at Waterkloof Hills Estate which was developed as part of the RBPlat Employee Home Ownership Scheme. The balance of the cost was funded by RBPlat Group. The cash was not received for the benefit of RBPlat and does not constitute RBPlat's cash and cash equivalents. As at 31 December 2021, all of the cash received from the Department of Education has been spent towards the construction of the school as the completion of both the primary and secondary schools is nearing completion (2020: R10.5 million). The schools officially opened their doors to the first learners in January 2022.

Transaction costs in respect of financial liabilities, including facility fees that are directly attributable to the issue of a financial liability, which would not have been incurred if the liability had not been acquired, originated or issued, are deducted from the liability amount initially recognised.

When the financial liability is not yet drawn, but it is probable that a facility will be drawn down, then an initial facility fee is deferred as a prepayment (transaction costs capitalised) and treated as an adjustment to the instrument's effective interest rate and recognised as an expense over the instrument's estimated life. However, when it is not probable that a facility will be drawn down, the fee is considered a service fee and recognised as an expense on a straight-line basis over the commitment period.

Impairment of receivables measured at amortised cost is determined using the expected credit loss model.

  Group
  2021 
R (million)
2020 
R (million)
Trade receivables (RPM concentrate debtors) 5 192.8 5 423.3
Impala royalty receivable 142.4 122.8
VAT receivable 37.0 30.3
Styldrift deposit 29.8 28.9
Maseve restricted cash 28.4 28.4
Deposit paid for mining equipment 7.7 12.7
Department of Education restricted cash 61.3
Prepaid expenses 17.1
State royalty taxes receivable 70.5
Funding transaction costs capitalised 9.7
Interest accrued on investments 13.2
Other receivables 3.5 1.9
Closing balance at 31 December 5 552.1 5 709.6

6. CURRENT TAX RECEIVABLE/(PAYABLE)

   Group 
   2021 
R (million)
2020 
R (million)
Opening balance at 1 January  (8.7) 2.9 
Income tax charge  (188.0) (81.3)
Payments made  259.3  69.7 
Closing balance at 31 December  62.6  (8.7)
Current tax receivable/(payable) comprises:       
Current tax receivable  67.3  — 
Current tax payable  (4.7) (8.7)
Closing balance at 31 December  62.6  (8.7)

7. DEFERRED TAX

Deferred tax assets and liabilities are determined using the balance sheet method for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax is determined using tax rates that have been enacted or substantially enacted before the statement of financial position date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available, against which the temporary differences can be utilised.

Deferred tax assets and liabilities relate to income taxes levied by the same tax authority and are only offset when the Group intends to settle its current tax assets and liabilities on a net basis.

  Group
  2021 
R (million)
2020 
R (million)
Deferred tax comprises:    
Deferred tax asset —  (58.2)
Deferred tax liability 5 533.1  5 259.5 
Closing balance at 31 December 5 533.1  5 201.3 

   Group 
   Mineral 
rights 
R (million)
Property, 
plant and 
equipment 
R (million)
Unredeemed*
capital 
balance 
R (million)
Provisions 
including 
payrollrelated 
provisions 
R (million)
Other 
R (million)
Total 
R (million)
2021             
Opening balance at 1 January   1 498.9   4 520.1   (706.0)  (111.7)     5 201.3 
Charged to equity          (21.3) (21.3)
Charged to statement of comprehensive income   (43.9)  221.1   174.3   55.2   (53.6)  353.1 
Closing balance at 31 December   1 455.0   4 741.2   (531.7)  (56.5)  (74.9)  5 533.1 
2020    
Opening balance at 1 January  1 540.8  4 358.5  (1 996.5) (105.5) (9.0) 3 788.3 
Charged to statement of comprehensive income   (41.9)  161.6   1 290.5   (6.2)  9.0   1 413.0 
Closing balance at 31 December   1 498.9   4 520.1   (706.0)  (111.7)  —   5 201.3 

*   Refer to Note 17 for details relating to Maseve amalgamation and the resulting recognition of deferred tax on the unredeemed capital allowance.

Tax losses included in Royal Bafokeng Platinum Management Services Proprietary Limited (RBP MS) and Royal Bafokeng Resources Properties (RF) Proprietary Limited (RBRP), which are not recognised as deferred tax assets, amount to R278.5 million (2020: R268.2 million) and R113.2 million (2020: R110.0 million), respectively. RBR has an unredeemed capital allowance of R1 366.8 million (2020: R2 030.9 million) which will be carried forward to 2022. Of the deferred tax liability, approximately R5 093.7 million (2020: R4 827 million) will realise after 12 months.

Refer to Note 17 for details relating to the change in the tax rate.

8. CONVERTIBLE BOND LIABILITY

RBPlat issued 120 000 7% senior unsecured convertible bonds for R1 200 million on 15 March 2017. Shareholders' approval for the conversion of the convertible bonds was obtained on 8 May 2017. The bonds were convertible into ordinary shares of RBPlat at the option of the holder at a conversion price of R38.7572 (initial conversion price of R42.9438). The conversion price was subject to customary adjustments for reconstructions of equity to maintain the relative rights of the bondholders. Interest on the bonds was payable semi-annually in arrears on 16 March and 16 September of each year for five years ending 16 March 2022. The bonds were listed on the JSE Main Board under stock code number RBPCB.

The carrying amount of the liability portion at initial recognition is measured as the difference between the cash proceeds and the fair value of the embedded derivative. The liability is subsequently recognised on an amortised cost basis until extinguished on conversion or maturity of the bonds using the effective interest rate method. When the bond is extinguished through a buy-back, the related liability portion is derecognised. To the extent that the consideration paid exceeds the carrying amount of the liability, a loss is recognised in profit or loss. When the bond is extinguished through a conversion, the related liability portion is derecognised and the conversion to equity is recognised in the statement of changes in equity at the carrying value of the liability just before conversion.

Throughout the first half of 2021, 102 152 of the 120 000 convertible bonds were converted into 26 108 136 ordinary shares at a conversion price of R38.7572, while 17 369 of the 120 000 convertible bonds were bought back from the market at a cost of R477.4 million which includes a premium of R312.5 million incurred on the buy-back of the convertible bonds.

On 20 May 2021 and pursuant to the terms and conditions of the convertible bonds, RBPlat issued a notice to the Trustee and each holder of the bonds, for the early redemption of all of the convertible bonds outstanding, at their par value principal amount of R10 000 per bond, together with accrued unpaid interest amounting to R203.3 per bond, calculated up to but excluding 30 June 2021. As a result, 479 outstanding convertible bonds were redeemed at an amount of R4.9 million and cancelled. As at 30 June 2021, there were no convertible bonds which remained in issue.

   Group 
   2021 
R (million)
2020 
R (million)
Opening balance at 1 January  1 122.1  1 049.5 
Plus: Interest*  54.3  156.6 
Premium on buy-back of convertible bond  312.5  — 
Less: Interest paid  (42.0) (84.0)
Less: Convertible bonds converted to shares  (964.6) — 
Less: Convertible bonds buy-back/redeemed  (482.3) — 
Closing balance at 31 December    1 122.1 

*   In 2021, Rnil million (2020: R26.4 million) of the interest was capitalised to Styldrift project at RBPlat Group level.

9. PIC HOUSING FACILITY

The PIC housing facility was utilised to fund the construction of houses for phase 2 of the housing project as well as the insurance investment. The PIC housing facility was a R2 200 million facility accruing interest at CPI plus a margin of 1%. Following the suspension of the construction of the houses in 2019 and commencement of repayment in 2021, the undrawn position of the facility is no longer available resulting in the reduction of the total facility to R1 273.7 million. Security for the PIC housing facility is ring-fenced to the housing project assets with no recourse to the RBR operations business.

The Group recognises the difference between the fair value of the PIC housing facility at initial recognition and the transaction price as a fair value adjustment to the loan. The initial difference is amortised over the term of the PIC housing facility.

The portion of the PIC housing facility repayable within 12 months from the reporting date is presented as part of current liabilities. The balance of the amount is presented as a non-current liability in the statement of financial position.

 

   Group 
   2021 
R (million)
2020 
R (million)
Opening balance at 1 January  1 558.0  1 483.1 
Plus: Contractual interest charges capitalised to loan  72.7  65.9 
Less: Repayments  (101.0) — 
Plus: Fair value interest charges capitalised to loan  29.2  32.6 
Less: Amortisation of fair value adjustment to loan  (23.4) (23.6)
Closing balance at 31 December 1 535.5  1 558.0 
Split between: 
Non-current portion of PIC housing facility  1 487.5  1 503.4 
Current portion of PIC housing facility  48.0  54.6 
   1 535.5  1 558.0 

Repayment of the PIC loan commenced during the current financial year.

10. INTEREST-BEARING BORROWINGS

Interest-bearing borrowings were made up of drawdowns on existing facilities. RBR utilised Rnil (2020: Rnil) of its RCF. In addition, the Group utilised R119.4 million (2020: R119.4 million) of the GBF for guarantees.

The following covenants are applicable to the existing facilities:

Financial covenants

RBR shall ensure that the following financial covenants will be met:

  • Net debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) shall not exceed 2.00 times
  • Net debt to equity shall not exceed 1.00 times
  • Interest cover ratio shall be at least 4.00 times

As at 31 December 2021, none of the covenants were breached.

 

   Group 
   2021 
R (million)
2020 
R (million)
Opening balance at 1 January  600.0  1 305.5 
Drawdowns during the period  890.3  2 031.2 
Repayments  (1 499.7) (2 744.9)
Interest capitalised  27.4  133.1 
Interest paid  (27.3) (132.8)
Unwinding of transaction costs capitalised  9.3  7.9 
Closing balance at 31 December    600.0 
Split between:       
Non-current portion of interest-bearing borrowings    412.5 
Current portion of interest-bearing borrowings    187.5 
     600.0 

11. DEFERRED REVENUE

RBPlat entered into a gold streaming agreement through its wholly owned subsidiary, RBR, with Triple Flag Mining Finance Bermuda Limited (Triple Flag). In terms of the agreement, the Company received an advance payment of US$143.5 million (US$145 million net of US$1.5 million transaction costs) equating to R2 093.5 million, in exchange for the future delivery of gold from the RBPlat mining operations (excluding Styldrift II and the Impala royalty areas), payable over the LOM (the stream). In addition to the advance payment (refer to Note 14), RBPlat receives 5% cash (variable consideration) from Triple Flag based on the prevailing reference gold price (daily gold market price immediately following the date of delivery) for each ounce of gold delivered. The contract will be settled by RBPlat delivering gold credits to Triple Flag, representing the underlying refined gold which has been mined. One gold credit is equivalent to one ounce of gold.

In terms of this agreement, 70% of the payable gold will be delivered to Triple Flag until 261 000 ounces have been delivered, thereafter, 42% of the payable gold will be delivered to Triple Flag over the LOM. The delivery of the payable gold will be for an initial term of 40 years, which shall be automatically extended for successive 10-year periods, unless there has been no exploration or mining activity. There is no fixed minimum number of gold ounces to be delivered in terms of the agreement and the commitment is dependent on the actual production.

Inputs to the model to unwind the advance received to revenue

The advance received has been recognised on the statement of financial position as deferred revenue. The deferred revenue will be recognised as revenue in profit or loss as the gold ounces are delivered to Triple Flag relative to the expected total amount of gold ounces to be delivered over the term of the arrangement. At the end of each period, management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and is therefore recognised as revenue. To the extent that the LOM changes or other key inputs are changed, these changes are recognised prospectively as a cumulative catch-up in revenue in the year that the change occurs.

Key inputs Estimate at period end  
Estimated financing rate over life of arrangement 8.8% Although there is no cash financing cost related to this arrangement, IFRS 15 requires RBPlat to recognise a notional financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related performance obligations. The estimated financing rate was determined at inception and was not subsequently changed in line with the requirements of IFRS 15.
Remaining life of stream 46 years The starting point for the LOM is the approved life of mine plan for the operations (excluding Styldrift II and the Impala Royalty Areas) with a portion of resources included beyond the current life of mine plan. However, as IFRS 15 requires the constraint on revenue recognition to be considered, it is more prudent to include a portion of resources in the life of stream for the purposes of revenue recognition. This will reduce the chance of having a significant decrease in revenue recognised in the future, when the LOM is updated to include a conversion of resources to reserves. As such, RBPlat's management has determined that it is appropriate to include 56% of gold in outside LOM resources.
Gold entitlement percentage 70% The gold entitlement percentage will be 70% up to 261 000 ounces and thereafter 42% for the remainder of the LOM and RBP can honour the commitment.
Monthly cash percentage 5% The monthly cash payment to be received is 5% of the market price of the gold ounce delivery to Triple Flag.
Commodity price on initial recognition Commodity and exchange rate adjusted spot price from inception The stand-alone selling price of each ounce will be the spot price at inception adjusted for expected commodity and USD/ZAR exchange rate forward curves over the life of the arrangement. Therefore, the stand-alone selling price of each ounce of gold delivered through gold credits at the date of the delivery will be the commodity and exchange rate adjusted spot price from inception. This estimated stand-alone selling price is estimated at inception and is not revisited in the future if the commodity price or exchange rate per ounce changes.

Any changes to the ounces delivered key inputs could significantly change the quantum of the cumulative revenue amount recognised in profit or loss.

The following table summarises the changes in deferred revenue:

   Group 
   2021 
R (million)
2020 
R (million)
Opening balance at 1 January  2 126.7  — 
Deferred revenue advance received    2 093.5 
Interest charge (refer to Note 16.2) 186.0  170.3 
Deferred revenue recognised during the period (refer to Note 14) (188.7) (137.1)
Closing balance at 31 December  2 124.0  2 126.7 
Split between:       
Non-current portion of deferred revenue  1 896.0  1 902.8 
Current portion of deferred revenue  228.0  223.9 
   2 124.0  2 126.7 

3 412 gold ounces (2020: 3 013 gold ounces) were delivered from BRPM while 4 681 gold ounces (2020: 3 068 gold ounces) were delivered from Styldrift.

12. CAPITAL COMMITMENTS IN RESPECT OF PROPERTY, PLANT AND EQUIPMENT

  Group
   2021 
R (million)
2020 
R (million)
Contracted commitments  565.9 
718.2 
Approved expenditure not yet contracted for  2 501.5  1 445.7 
Total capital commitments  3 067.4  2 163.9 

13. CONTINGENCIES AND COMMITMENTS

Guarantees and commitments

   Group 
   2021 
R (million)
2020 
R (million)
13.1 Guarantees issued
  RBR and RBP MS, wholly owned subsidiaries of RBPlat, granted the following guarantees: 
Eskom to secure power supply for Styldrift (guarantee 30823102)*    17.1 
Eskom early termination guarantee for Styldrift (guarantee 31160603) 17.5  17.5 
Eskom connection charges guarantee for Styldrift (guarantee 31173918)*    40.0 
Eskom to secure power supply for Styldrift (guarantee OGPE 001449)*  57.1  — 
Department of Mineral Resources and Energy for the rehabilitation of land disturbed by prospecting/mining (guarantee 32388608)  1.3   1.3 
Eskom security guarantee for power supply to Styldrift (guarantee 34058907) 42.7  42.7 
Tsogo Sun guarantee arising from lease agreement (guarantee OGPE0002385) 0.7  0.7 
Tsogo Sun guarantee arising from lease agreement (guarantee OGPE0002383) 0.1  0.1 
Total bank guarantees issued at 31 December  119.4  119.4 
Department of Mineral Resources and Energy guarantee for environmental rehabilitation liability   343.0   334.4 
Department of Mineral Resources and Energy guarantee for Styldrift  45.7  45.7 
Total insurance guarantees issued at 31 December  388.7  380.1 
Eskom to secure power supply for Maseve  28.4  28.4 
Total cash-backed bank guarantees issued at 31 December  28.4  28.4 
 

*   Eskom guarantee to secure power supply for Styldrift and Eskom connection charges guarantees for Styldrift were cancelled and replaced with one guarantee to secure power supply.

13.2 Contingent liability — remediate groundwater and soil pollution

RBR is committed to remediating groundwater and soil pollution where RBR operates. The 2017 groundwater flow model simulations indicate that the pollution will not extend into or affect nearby township areas/groundwater users until 2075 if no intervention is put in place. Based on the groundwater model update, a project was initiated in 2018 to monitor the groundwater movement on a continuous basis using borehole loggers, to accurately quantify the size and the rate of movement of the pollution plume. The outcome of this project highlighted that the groundwater levels decreased gradually, showing that the aquifer is in a steady state and that there is no evidence of artificial recharge. A groundwater specialist was appointed to develop the groundwater remediation strategy to better understand the costs associated with the remediation activities.

The rate of pollution plume movement could not be accurately monitored due to limited pumping of water from the open-cast pit. This is mainly due to the closed loop system in the operations. RBR is continuing to conduct groundwater monitoring through existing boreholes and will close the monitoring network gaps by constructing additional boreholes as per the project recommendations to enable the groundwater database to be fully updated and comprehensive. Other methods of containing the plume, such as pump testing of the boreholes around the BRPM tailings storage facility to assess the likely success of localised abstraction, are being investigated.

13.3 Contingent liability — Maseve acquisition

Post implementation of the Maseve transaction, Africa Wide Mineral Prospecting Land Exploration Proprietary Limited (Africa Wide), which held 17.1% of the shares in Maseve prior to the implementation of the share transaction, instituted legal proceedings against Platinum Group Metals Limited (PTM), RBPlat and Maseve, in terms of which it seeks to have the Maseve transaction declared unlawful and invalid, or alternatively to be paid an increased amount for its Maseve shares, which it argues were undervalued. On 20 September 2018 we advised security holders that PTM legal advisers and senior counsel were of the view that the claim of Africa Wide was weak and that there are strong prospects of success on this matter. Due to the delays caused by the impact of Covid-19 and other factors, the matter is still ongoing.


14. REVENUE

   Group 
   2021 
R (million)
2020 
R (million)
Revenue from disposal of concentrate       
Revenue from contract with customers  16 639.9  11 725.9 
Other revenue  (410.7) 1 507.6 
   16 229.2  13 233.5 
Revenue from gold streaming       
Revenue from advanced payment (refer to Note 11) 188.7  137.1 
Variable consideration  10.8  8.8 
   199.5  145.9 
Total  16 428.7  13 379.4 

Revenue per metal

  BRPM Styldrift Total
2021
Platinum 2 113.1 1 907.8 4 020.9
Palladium 1 880.4 1 625.9 3 506.3
Rhodium 4 200.1 2 323.6 6 523.7
Gold 123.3 169.6 292.9
Nickel 265.5 424.7 690.2
Other 627.5 567.7 1 195.2
Total revenue from disposal of concentrate 9 209.9 7 019.3 16 229.2
2020  
Platinum 1 874.5 1 662.2 3 536.7
Palladium 1 963.1 1 680.3 3 643.4
Rhodium 2 925.5 1 702.5 4 628.0
Gold 146.9 182.5 329.4
Nickel 250.9 331.3 582.2
Other 251.8 262.0 513.8
Total revenue from disposal of concentrate 7 412.7 5 820.8 13 233.5

15. COST OF SALES

   Group 
   2021 
R (million)
2020 
R (million)
Included in the profit before tax are the following items:       
On-mine costs:       
― Labour  3 032.1  2 668.1 
― Utilities  642.3  504.4 
― Contractor costs  1 292.3  1 100.2 
― Movement in inventories  (48.9) (183.1)
― Materials and other mining costs  2 682.2  2 152.1 
Materials and other mining costs for RBR operations  2 866.5  2 240.4 
Elimination of intergroup management fee  (184.3) (88.3)
State royalty taxes  214.3  66.8 
Depreciation — property, plant and equipment  1 154.6  1 115.8 
Amortisation — mineral rights  156.6  149.5 
Share-based payment expense  68.1  27.9 
Social and Labour Plan expenditure  167.8  89.0 
Covid-19-related costs  24.6  53.8 
Plant readiness  18.5  3.0 
Gold credits purchases  215.1  177.3 
Other  17.7  23.9 
Total cost of sales  9 637.3  7 948.7 
Included in corporate office expenses:       
Advisory fees  27.4  24.8 
Legal fees  17.2  4.4 
Employee costs (including directors' remuneration) 105.6  96.9 
Depreciation of RBP MS property, plant and equipment  0.8  1.1 
Revolving credit facility and working capital facility commitment fees  30.8  22.9 
Fees for guarantees  3.1  1.6 
Share-based payment expense  25.1  22.1 
Rent and maintenance for corporate office  3.3  3.4 
Other  24.1  14.7 
Total corporate office expenses  237.4  191.9 
Included in housing project expenses:       
Legal fees  4.6  3.3 
Property rates and taxes, and water and electricity  3.9  4.9 
Security  10.0  7.3 
Maintenance  13.6  10.6 
Depreciation of RBRP property, plant and equipment  0.3  0.3 
Amortisation of employee housing benefit and fair value adjustment to loan  (0.6) (4.5)
Employee housing loan receivable write-off  11.9  — 
Insurance expenditure  0.9  2.8 
Salaries and wages  9.3  8.2 
Expected credit loss*  0.3  — 
Other  1.3  2.4 
Total housing project expenses  55.5  35.3 

*   In 2020, R3.8 million expected credit loss was included in Other

16. NET FINANCE (COST)/INCOME

  Group
   2021 
R (million)
2020 
R (million)
16.1 Finance income consists of the following:       
Interest received on environmental trust deposits  7.1  8.2 
Interest received on investments  139.2  60.7 
Interest received on employee housing loan receivable  107.9  82.8 
Dividend income on investments  0.9  3.0 
Total finance income 255.1  154.7 
16.2 Finance cost consists of the following:       
Interest expense — short-term borrowings  (0.2) (1.2)
Interest expense — lease liability  (2.1) (2.6)
Interest expense — RPM deferred consideration    (17.8)
Interest expense — PIC  (101.9) (98.5)
Interest expense — convertible bond*  (54.3) (156.6)
Premium on buy-back of convertible bonds (refer to Note 8) (312.5) — 
Interest expense — deferred revenue (refer to Note 11) (186.0) (170.3)
Interest expense — long-term borrowings  (27.2) (131.9)
Unwinding of discount on decommissioning and restoration provision  (10.5) (12.8)
Less: Capitalisation of interest expense — convertible bond    26.4 
Less: Capitalisation of interest expense — interest-bearing borrowings    78.0 
Total finance cost  (694.7) (487.3)
Net finance cost  (439.6) (332.6)
 

*   R42 million of the convertible bond interest was paid in 2021 (2020: R84.0 million)

17. INCOME TAX EXPENSE

   Group 
   2021 
R (million)
2020 
R (million)
Income tax expense       
Income tax expense  (188.0) (81.3)
  Current year  (188.0) (81.3)
  Prior year    — 
Deferred tax expense  (353.1) (1 413.0)
  Current year  (437.3) (1 400.2)
  Prior year  84.2  (12.8)
Total income tax expense  (541.1) (1 494.3)
Tax rate reconciliation:       
Profit before tax  7 051.0  5 023.3 
Tax expense calculated at a tax rate of 28% (2020: 28%) (1 974.3) (1 406.5)
Non-taxable income — deferred revenue    24.7 
Non-taxable income — dividends  0.3  0.8 
Non-taxable income — other  0.6  0.2 
Non-deductible — reversal of derivative gain    (19.7)
Non-deductible expenses — legal and advisory fees  (6.1) (1.1)
Non-deductible expenses — interest on gold streaming    (47.7)
Non-deductible expenses — other  (6.3) (7.2)
Non-deductible expenses — buy back of convertible bonds  (10.5) — 
S44 unredeemed capex — Maseve*  1 517.9  — 
S44 Maseve provision for rehabilitation  7.1  — 
S24J premium on conversion of convertible bonds  384.2  — 
Share Appreciation Rights  19.8  — 
Tax losses not recognised  (460.4) (25.0)
Prior year adjustments  (13.4) (12.8)
Total  (541.1) (1 494.3)
Effective tax rate (%) 7.7  29.7 
* During the period, a Group reorganisation and amalgamation process was concluded between Maseve and RBR resulting in the recognition of the unredeemed capital expenditure relating to Maseve. This increase in the unredeemed capital expenditure for the Group has been substantially utilised during the period and accordingly offsets the increased taxable profit relating to RBR.

On 24 February 2021, the South African Minister of Finance announced a change in the companies tax rate from 28% to 27% for companies for years of assessment commencing on or after 1 April 2022. The Minister confirmed this rate change on 23 February 2022. The rate change will affect the deferred tax for the year ending 31 December 2022 and the income tax for the year ending 31 December 2023. The impact of the 1% decrease will be a reduction of R197.6 million to the deferred tax balance recognised as at 31 December 2021.

As part of the corporate income tax restructuring process announced by the Minister above, certain measures are being put in place to broaden the tax base. These amendments will also be effective for years of assessment commencing on or after 1 April 2022. One such measure is to limit the assessed losses that are set off against taxable income to 80% of the taxable income. The Minister further proposed that certain anomalies between this new assessed loss restriction provision in terms of section 20 of the Income Tax Act and the redemption of capital expenditure in terms of section 36 of the Income Tax Act be clarified. The above amendment will impact the period over which existing assessed losses in the Group will be recovered and the further clarifications may impact the period over which the redemption of capital expenditure may be utilised.

18. RELATED PARTY TRANSACTIONS

  Group
  2021 
R (million)
2020 
R (million)
Group balances at 31 December    
Amount owing by Implats for the fourth quarter royalty income (refer to Note 5) 142.4  122.8 
Transactions with Implats    
Royalty income 738.5  382.4 
Transactions with fellow subsidiary of RBH    
Royal Marang Hotel for accommodation and conferences 0.1  0.4 

19. DIVIDENDS

Dividends payable

Dividends are recognised in the period in which the dividends are declared. These dividends are recorded and disclosed as dividends paid in the statement of changes in equity and classified as cash flow from operating activities in the statement of cash flows. Dividends proposed or declared subsequent to the date of the statement of financial position are not recognised, but are disclosed in the notes to the summary consolidated annual financial statements.

2020 Final dividend declared

A final gross cash dividend of 575.0 cents per share was declared by the Board on 9 March 2021 from profits accrued during the financial year ended 31 December 2020. The total cash dividend declared amounted to 575.0 cents per share. The dividend was paid on 6 April 2021 to shareholders who were on the register on 1 April 2021. This final dividend paid to shareholders amounted to R1 523.9 million.

The final dividend declared was subject to a dividend withholding tax of 20% for all shareholders who were not exempt from or did not qualify for a reduced rate of dividend withholding tax. The net local dividend paid to shareholders, subject to dividend withholding tax at a rate of 20% amounted to 460.0 cents per share. The number of ordinary shares in issue at the date of this declaration was 258 792 016.

2021 Interim dividend declared

An interim gross cash dividend of 535.0 cents per share was declared by the Board on 3 August 2021 from profits accrued during the interim period ended 30 June 2021. The total cash dividend for the period amounted to 535.0 cents per share. The dividend was payable on 30 August 2021 to shareholders who were on the register on 27 August 2021. This interim dividend, amounting to R1 546.2 million, has been recognised in shareholders' equity in 2021.Group

   Group 
   2021 
Cents 
2020 
Cents 
2020 Final dividend  575.0  — 
2021 Interim dividend  535.0  — 
   1 110.0    
   R (million) R (million)
2020 Final dividend  1 523.9  — 
2021 Interim dividend  1 546.2  — 
   3 070.1  — 

Subsequent to year-end, a final gross dividend of 535.0 cents per share (2020: 575.0 cents per share) was declared. Refer to Note 23.

20. FINANCIAL RISK MANAGEMENT

Fair value determination

The following table presents the financial assets that are measured at fair value as well as the financial assets and financial liabilities measured at amortised cost but for which fair value disclosure is provided at 31 December:Group

   Notes  Level 1 
R (million)
Level 2 
R (million)
Level 3 
R (million)
2021    
Financial assets at fair value    
Environmental guarantee investment1    104.6   
Housing insurance investment2      57.4 
RPM concentrate debtors4  5      5 192.8 
Financial assets at amortised cost    
Employee housing loan receivable3      917.7 
Impala royalty receivable5  5      142.4 
Other receivables (excluding prepaid expenses and VAT)5  5      61.7 
Environmental trust deposits1      176.4 
Financial liabilities at amortised cost    
PIC housing facility3  9      1 535.5 
Lease liabilities3      35.6 
2020             
Financial assets at fair value             
Environmental guarantee investment1     —  84.5  — 
Housing insurance investment2     —  —  49.1 
RPM concentrate debtors4  5  —     —  5 423.3 
Financial assets at amortised cost             
Employee housing loan receivable3     —      —  853.9 
Impala royalty receivable5  5  —  —  122.8 
Other receivables (excluding prepaid expenses and VAT)5  5  —  —  120.5 
Environmental trust deposits1     —   —  169.3 
Financial liabilities at amortised cost             
PIC housing facility3  9  —  —  1 558.0 
Lease liabilities3     —  —  17.4 
1 This was valued using the level 2 fair values which are directly derived from the Shareholders Weighted Top 40 Index (SWIX 40) on the JSE
2 The fair value was determined using market prices for listed investments and reliance on an external valuer for discounted cash flow models for unlisted investments
3 The fair value was determined using a discounted cash flow model
4 Fair value was determined using the commodity prices and foreign exchange rates
5 Carrying amount approximates fair value

21. SEGMENTAL REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee, which makes strategic decisions.

The Group is currently operating two mines, namely BRPM and Styldrift. These operations are located in the North West province of South Africa, 120 kilometres from Johannesburg, 30 kilometres from Rustenburg and 17 kilometres from Phokeng. BRPM and Styldrift (Styldrift I and II) are shown as separate segments. In addition, due to the different nature and significance of the Employee Home Ownership Scheme, it was decided to show housing as a separate segment. Currently Styldrift I and II are aggregated into a single reportable segment as it is one mining right. The Styldrift II pre-feasibility study has been completed. Once the feasibility study is completed it will move into development phase and may then be reported on as a separate segment. The holding company and other subsidiaries, including RBR corporate function are aggregated and shown as corporate office segment.

21.1 Segmental statement of comprehensive income

  For the year ended 31 December 2021
  BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office 
segment 
R (million)
Consolidation 
adjustments 
R (million)
Total 
R (million)
Revenue  9 294.1  7 134.6  16 428.7  66.6  3 264.5  (3 331.1) 16 428.7 
Cost of sales  (4 486.4) (4 959.4) (9 445.8) (46.0) (3 420.8) 3 275.3  (9 637.3)
  Cash cost of sales excluding depreciation and amortisation  (4 120.9) (4 223.2) (8 344.1) (46.0) (3 254.1) 3 269.2  (8 375.0)
  Depreciation  (351.2) (799.4) (1 150.6) —  (10.1) 6.1  (1 154.6)
  Amortisation  —  —  —  —  (156.6) —  (156.6)
  Movement in inventories  (14.3) 63.2  48.9  —  —  —  48.9 
Gross profit/(loss) per segment and total  4 807.7  2 175.2  6 982.9  20.6  (156.3) (55.8) 6 791.4 
Other income  919.3  101.2  1 020.5  17.5  3 588.2  (3 563.9) 1 062.3 
Other expenses  —  —  —  —  —  —  — 
Total administrative expenditure  —  —  —  (55.5) (311.0) 3.4  (363.1)
Administrative expenditure  —  —  —  (55.8) (235.9) 3.4  (288.3)
Depreciation  —  —  —  (0.3) (4.9) —  (5.2)
Maseve care and maintenance  —  —  —  —  (27.7) —  (27.7)
Amortisation of employee housing benefit and fair value adjustment to loan  —  —  —  0.6  —  —  0.6 
Industry membership and market development  —  —  —  —  (42.5) —  (42.5)
Scrapping and impairment ofnon-financial assets  —  —  —  —  101.6  (101.6) — 
Net finance (cost)/ income  (21.0) (157.5) (178.5) 9.2  3 309.6  (3 579.9) (439.6)
Finance income  14.0  5.9  19.9  111.2  3 704.0  (3 580.0) 255.1 
Other finance costs  (35.0) (163.4) (198.4) (102.0) (81.9) 0.1  (382.2)
Premium on buy-back of convertible bond  —  —  —  —  (312.5) —  (312.5)
Profit/(loss) before tax per segment and total  5 706.0  2 118.9  7 824.9  (8.2) 6 532.1  (7 297.8) 7 051.0 
Taxation  —  —  —  —  —  —  (541.1)
Profit after tax attributable to owners of the Company  6 509.9 

  For the year ended 31 December 2020
  BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office 
segment 
R (million)
Consolidation 
adjustments 
R (million)
Total 
R (million)
Revenue  7 485.6  5 893.7  13 379.3  189.2  2 804.4  (2 993.5) 13 379.4 
Cost of sales  (3 619.8) (4 183.4) (7 803.2) (148.3) (2 883.7) 2 886.5  (7 948.7)
  Cash cost of sales excluding depreciation and amortisation  (3 357.0) (3 541.0) (6 898.0) (148.3) (2 728.1) 2 907.9  (6 866.5)
  Depreciation  (348.5) (739.8) (1 088.3) —  (6.1) (21.4) (1 115.8)
  Amortisation  —  —  —  —  (149.5) —  (149.5)
  Movement in inventories  85.7  97.4  183.1  —  —  —  183.1 
Gross profit/(loss) per segment and total  3 865.8  1 710.3  5 576.1  40.9  (79.3) (107.0) 5 430.7 
Other income  449.3  0.2  449.5  11.9  6.2  26.8  494.4 
Other expenses  (131.8) (99.1) (230.9) —  (70.5) —  (301.4)
Total administrative expenditure  —  —  —  (35.3) (240.3) 11.9  (263.7)
Administrative expenditure  —  —  —  (39.5) (202.9) 11.9  (230.5)
Depreciation  —  —  —  (0.3) (0.9) —  (1.2)
Maseve care and maintenance  —  —  —  —  (1.7) —  (1.7)
Amortisation of employee housing benefit and fair value adjustment to loan  —  —  —  4.5  —  —  4.5 
Industry membership and market development  —  —  —  —  (34.8) —  (34.8)
Scrapping and impairment ofnon-financial assets  —  —  —  (3.8) (349.8) 349.5  (4.1)
Net finance (cost)/ income  (75.6) (82.8) (158.4) (11.7) (189.3) 26.8  (332.6)
Finance income  16.6  6.0  22.6  86.8  45.3  —  154.7 
Other finance costs  (92.2) (88.8) (181.0) (98.5) (234.6) 26.8  (487.3)
Premium on buy-back of convertible bond  —  —  —  —  —  —  — 
Profit/(loss) before tax per segment and total  4 107.7  1 528.6  5 636.3  2.0  (923.0) 308.0  5 023.3 
Taxation  (1 494.3)
Profit after tax attributable to owners of the Company  3 529.0 

21.2 Segmental statement of financial position

   As at 31 December 2021 
   BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office 
segment 
R (million)
Consolidation 
adjustments 
R (million)
Total 
R (million)
Non-current assets  4 706.5  12 273.3*  16 979.8  1 225.5  14 484.6  (9 257.8) 23 432.1 
Allocation of mineral rights  624.6  4 572.0  5 196.6    (5 196.6)    
Non-current assets after allocation of mineral rights  5 331.1  16 845.3  22 176.4  1 225.5  9 288.0  (9 257.8) 23 432.1 
Current assets  3 892.6  2 711.8  6 604.4  595.2  4 361.2  54.3  11 615.1 
  Employee housing current assets        464.2    68.6  532.8 
  Inventories  169.5  395.0  564.5        564.5 
  Trade and other receivables  3 156.2  2 316.8  5 473.0  2.9  90.5  (14.3) 5 552.1 
  Current tax receivable          67.3    67.3 
  Cash and cash equivalents  566.9    566.9  128.1  4 203.4    4 898.4 
Total assets per statement of financial position  9 223.7  19 557.1  28 780.8  1 820.7  13 649.2  (9 203.5) 35 047.2 
Non-current liabilities  337.9  1 694.5  2 032.4  1 620.9  5 597.7  (57.5) 9 193.5 
  Deferred tax liability          5 587.5  (54.4) 5 533.1 
  Convertible bond liability               
  Interest-bearing borrowings               
  Deferred revenue  238.8  1 657.2  1 896.0        1 896.0 
  PIC housing facility        1 487.5      1 487.5 
  Lease liabilities  24.4    24.4    10.2  (3.1) 31.5 
  Long-term provisions and other  74.7  37.3  112.0  133.4      245.4 
Current liabilities  (12 775.7) 10 080.1  (2 695.6) 87.6  6 692.8  (2 497.7) 1 587.1 
  Trade and other payables  578.2  285.2  863.4  34.7  417.2  (13.0) 1 302.3 
  RBR payable  (13 397.3) 9 607.4  (3 789.9) 4.9  6 268.7  (2 483.7)  
  Current portion of PIC housing facility        48.0      48.0 
  Current tax payable          4.7    4.7 
  Current portion of interest-bearing borrowings               
  Current portion of deferred revenue  40.5  187.5  228.0        228.0 
  Current portion of lease liabilities  2.9    2.9    2.2  (1.0) 4.1 
Total liabilities per statement of financial position  (12 437.8) 11 774.6  (663.2) 1 708.5  12 290.5  (2 555.2) 10 780.6 

   As at 31 December 2020 
   BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office 
segment 
R (million)
Consolidation 
adjustments 
R (million)
Total 
R (million)
Non-current assets  4 709.8  11 431.3*  16 141.1  1 169.9  16 842.7  (11 219.4) 22 934.3 
Allocation of mineral rights  653.3  4 699.9  5 353.2  —  (5 353.2) —  — 
Non-current assets after allocation of mineral rights  5 363.1  16 131.2  21 494.3  1 169.9  11 489.5  (11 219.4) 22 934.3 
Current assets  4 474.6  2 828.4  7 303.0  661.9  999.3  45.9  9 010.1 
  Employee housing current assets  —  —  —  496.3  —  70.6  566.9 
  Inventories  188.1  302.3  490.4  —  —  —  490.4 
  Trade and other receivables  2 597.5  2 526.1  5 123.6  2.5  608.2  (24.7) 5 709.6 
  Current tax receivable  —  —  —  —  —  —  — 
  Cash and cash equivalents  1 689.0  —  1 689.0  163.1  391.1  —  2 243.2 
Total assets per statement of financial position  9 837.7  18 959.6  28 797.3  1 831.8  12 488.8  (11 173.5) 31 944.4 
Non-current liabilities  1 030.1  966.3  1 996.4  1 624.3  6 907.6  (86.1) 10 442.2 
  Deferred tax liability  —  —  —  —  5 342.1  (82.6) 5 259.5 
  Convertible bond liability  —  —  —  —  1 122.1  —  1 122.1 
  Interest-bearing borrowings  —  —  —  —  412.5  —  412.5 
  Deferred revenue  952.3  950.5  1 902.8  —  —  —  1 902.8 
  PIC housing facility  —  —  —  1 503.4  —  —  1 503.4 
  Lease liabilities  5.2  —  5.2  —  5.6  (3.5) 7.3 
  Long-term provisions and other  72.6  15.8  88.4  120.9  25.3  —  234.6 
Current liabilities  4 310.6  678.6  4 989.2  87.1  1 081.5  (4 472.3) 1 685.5 
  Trade and other payables  566.9  317.9  884.8  27.0  305.2  (16.3) 1 200.7 
  RBR payable  3 625.3  245.1  3 870.4  5.5  578.9  (4 454.8) — 
  Current portion of PIC housing facility  —  —  —  54.6  —  —  54.6 
  Current tax payable  —  —  —  —  8.7  —  8.7 
  Current portion of interest-bearing borrowings  —  —  —  —  187.5  —  187.5 
  Current portion of deferred revenue  112.1  111.8  223.9  —  —  —  223.9 
  Current portion of lease liabilities  6.3  3.8  10.1  —  1.2  (1.2) 10.1 
Total liabilities per statement of financial position  5 340.7  1 644.9  6 985.6  1 711.4  7 989.1  (4 558.4) 12 127.7 
* Includes Styldrift II exploration and evaluation costs

21.3 Segmental statement of cash flows

   For the year ended 31 December 2021 
   BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office and 
consolidation 
adjustment 
R (million)
Total  
R (million)
Net cash inflow/(outflow) from operating activities  4 508.7  4 196.9  8 705.6  56.9  (3 062.4) 5 700.1 
Proceeds from disposal of property, plant and equipment    2.6  2.6    0.1  2.7 
Acquisition of property, plant and equipment  (392.1) (1 429.6) (1 821.7)   39.2  (1 782.5)
Cash acquired as part of Maseve amalgamation    0.1  0.1    (0.1)  
Employee housing loan receivable repayments        9.7    9.7 
Increase in environmental trust deposits and guarantees  (28.9)   (28.9)     (28.9)
Net cash inflow/(outflow) from investing activities  (421.0) (1 426.9) (1 847.9) 9.7  39.2  (1 799.0)
Cash investments by/(distributions to) RBR  (5 162.6) (2 732.8) (7 895.4) (0.6) 7 896.0   
Repayment of PIC housing facility        (101.0)   (101.0)
Proceeds from interest-bearing borrowings          890.3  890.3 
Repayment of interest-bearing borrowings          (1 499.7) (1 499.7)
Principal elements of lease payments  (9.8) (3.8) (13.6)   (2.4) (16.0)
Repayment of the RPM deferred consideration             
Settlement of share-based payment  (37.4) (33.4) (70.8)   (36.1) (106.9)
Proceeds from share options exercised          69.7  69.7 
Convertible bonds repurchased          (482.3) (482.3)
Net cash inflow/(outflow) from financing activities  (5 209.8) (2 770.0) (7 979.8) (101.6) 6 835.5  (1 245.9)
Net increase/(decrease) in cash and cash equivalents  (1 122.1)   (1 122.1) (35.0) 3 812.3  2 655.2 
Cash and cash equivalents at the beginning of the period  1 689.0    1 689.0  163.1  391.1  2 243.2 
Cash and cash equivalents at the end of the period  566.9    566.9  128.1  4 203.4  4 898.4 

   For the year ended 31 December 2020 
   BRPM 
mining 
segment 
(A)
R (million)
Styldrift 
mining 
segment 
(B)
R (million)
RBR 
operations 
segment 
(A + B)
R (million)
RBPlat 
housing 
segment 
R (million)
Corporate 
office and 
consolidation 
adjustment 
R (million)
Total 
R (million)
Net cash inflow/(outflow) from operating activities  4 563.1  2 105.0  6 668.1  26.0  (868.2) 5 825.9 
Proceeds from disposal of property, plant and equipment  —  —  —  —  0.6  0.6 
Acquisition of property, plant and equipment  (756.0) (1 059.2) (1 815.2) —  (58.4) (1 873.6)
Cash acquired as part of Maseve amalgamation  —  —  —  —  —  — 
Employee housing loan receivable repayments  —  —  —  7.6  —  7.6 
Increase in environmental trust deposits and guarantees  (2.9) —  (2.9) —  —  (2.9)
Net cash inflow/(outflow) from investing activities  (758.9) (1 059.2) (1 818.1) 7.6  (57.8) (1 868.3)
Cash investments by/(distributions to) RBR  (2 701.6) (1 041.7) (3 743.3) —  3 743.3  — 
Repayment of PIC housing facility                   
Proceeds from interest-bearing borrowings  —  —  —  —  2 031.2  2 031.2 
Repayment of interest-bearing borrowings  —  —  —  —  (2 744.9) (2 744.9)
Principal elements of lease payments  (8.4) (4.1) (12.5) —  (2.3) (14.8)
Repayment of the RPM deferred consideration  —  —  —  —  (1 851.2) (1 851.2)
Settlement of share-based payment                   
Proceeds from share options exercised  —  —  —  —  51.1  51.1 
Convertible bonds repurchased  —  —  —  —  —  — 
Net cash inflow/(outflow) from financing activities  (2 710.0) (1 045.8) (3 755.8) —  1227.2  (2 528.6)
Net increase/(decrease) in cash and cash equivalents  1 094.2  —  1 094.2  33.6  301.2  1 429.0 
Cash and cash equivalents at the beginning of the period  594.8  —  594.8  129.5  89.9  814.2 
Cash and cash equivalents at the end of the period  1 689.0  —  1 689.0  163.1  391.1  2 243.2 

22. EARNINGS PER SHARE

The weighted average number of ordinary shares in issue outside the Group for purposes of basic earnings per share and the weighted average number of ordinary shares for diluted earnings per share are calculated as follows:

  Group
  2021 2020
Number of shares issued at 1 January 258 792 016 258 233 936
Management incentive schemes at 1 January (277 629) (1 685 766)
Number of shares issued outside the Group at 1 January 258 514 387 256 548 170
Adjusted for weighted average number of shares issued during the year 20 601 952 1 055 645
Weighted average number of ordinary shares in issue for earnings per share 279 116 339 257 603 815
Dilutive potential ordinary shares relating to management incentive schemes 7 585 141 4 133 967
Dilutive potential ordinary shares relating to the convertible bond 29 419 264
Weighted average number of potential dilutive ordinary shares in issue 286 701 480 291 157 046
Profit attributable to owners of the Company R (million) 6 509.9 3 529.0
Adjustments:    
Add: Net interest on convertible bond R (million) (refer to Note 16.2) 130.2
Less: Tax on the above R (million) (36.5)
Diluted profit R (million) 6 509.9 3 622.7
Basic earnings per share (cents/share)    
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company for the year by the weighted average number of ordinary shares in issue for earnings per share  2 332.4  1 369.9
Diluted earnings per share (cents/share)    
Diluted earnings per share is calculated by adjusting the weighted average* number of ordinary shares outstanding to assume conversion of all diluted potential ordinary shares  2 270.7  1 244.2

   2021  2020 
   Gross  Net  Gross  Net 
Headline earnings          
Profit attributable to owners of the Company R (million) 6 509.9  3 529.0    
Adjustments:          
Profit on disposal of property, plant and equipment and other assets R (million)  (21.7)  (21.7)  (40.1)  (40.1)
Headline earnings R (million) 6 488.2  3 488.9    
Net interest on convertible bond R (million) (refer to Note 16.2)        130.2   93.7 
Diluted profit R (million)*  6 488.2     3 582.6 
Basic headline earnings per share (cents/share) 2 324.6     1 354.4 
Diluted headline earnings per share (cents/share) 2 263.1     1 230.5 

*   The effects of anti-dilutive potential ordinary shares are ignored in the calculation of diluted earnings per share and diluted headline earnings per share

23. EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE

Dividends declared

A final gross cash dividend of 535.0 cents per share was declared by the Board on 8 March 2022 from profits accrued during the financial year ended 31 December 2021. The total cash dividend for the year amounted to 1 070.0 cents per share. The dividend is payable on 4 April 2022 to shareholders who will be on the register on 1 April 2022. This final dividend, amounting to approximately R1 500.0 million, has not been recognised as a liability in 2021. It will be recognised in shareholders' equity in the year ending 31 December 2022.

Other subsequent events

Following its offer to the RBPlat ordinary shareholders set out in the Implats Circular dated 17 January 2022, Implats announced on 28 February 2022 that it had concluded agreements to acquire a further 1 003 495 RBPlat shares constituting approximately 0.35% of the RBPlat shares in issue. This will result in the Implat's shareholding in RBPlat increasing to 35.66%. On 24 February 2022, Russia launched a large-scale military invasion of Ukraine. At the date of approving these financial statements, there were no noticeable impact on the Group.