| 2008 | 2009 | Figures in million | 2009 | 2008 |
|---|---|---|---|---|
| SA Rands | US Dollars | |||
| Listed investments | ||||
| Available for sale | ||||
| 226 | 162 | Balance at beginning of year | 17 | 34 |
| 43 | 75 | Additions | 9 | 5 |
| (31) | (14) | Disposals | (2) | (4) |
| – | 221 | Transfer of B2Gold Corporation from investment in associates | 26 | – |
| (51) | 482 | Fair value adjustments | 57 | (6) |
| (42) | – | Impairments (notes 6 and 14)(1) | – | (6) |
| 17 | (97) | Translation | 4 | (6) |
| 162 | 829 | Balance at end of year | 111 | 17 |
| Available for sale listed investments consist of investments in ordinary shares. | ||||
| Available for sale investments primarily consist of: | ||||
| 76 | 407 | International Tower Hill Mines Limited | 55 | 8 |
| – | 248 | B2Gold Corporation | 33 | – |
| 66 | 80 | Various listed investments held by Environmental Rehabilitation Trust Fund | 11 | 7 |
| 18 | 60 | Red 5 Limited | 8 | 2 |
| – | 24 | Commander Resources Limited | 3 | – |
| – | 8 | Laurentian Goldfields Limited | 1 | – |
| 2 | 2 | Other | – | – |
| 162 | 829 | 111 | 17 | |
The group’s available for sale listed equity investments are susceptible to market price risk arising from uncertainties about the future values of the listed equity investments. The group manages the equity price risk through diversification.
At the reporting date, the majority of listed equity investments were listed on the Toronto TSX Venture Exchange, the Toronto Stock Exchange and the JSE.
Based on the share price of International Tower Hill Mines Limited (ITH) over the past year and carrying value at 31 December 2009 of $55m, R407m, if ITH achieved the high that it achieved during 2009 of 8 Canadian dollars per share, other comprehensive income (OCI) would increase by $4m, R33m. If it achieved the low of 1.57 Canadian dollars per share, OCI would decrease by $43m, R320m, if objective evidence of impairment existed, an impairment of $9m, R27m would be recognised in the income statement.
Based on the share price of B2Gold Corporation over the past year and carrying value at 31 December 2009 of $33m, R248m, if B2Gold Corporation achieved the high that it achieved during 2009 of 1.46 Canadian dollars per share, OCI would increase by $7m, R55m. If it achieved the low of 0.45 Canadian dollars per share, OCI would decrease by $21m, R156m, if objective evidence of impairment existed, an impairment of $17m, R120m would be recognised in the income statement.
The exposure to listed shares at fair value on the JSE was $11m, R80m. An analysis based on the assumption that the equity index (ALSI on the JSE) had increased/decreased by 10% with all other variables held constant and all the group’s JSE listed equity investments moved according to the ALSI, would impact OCI by $1.1m, R8m.
Based on the share price of Red 5 Limited over the past year and carrying value at 31 December 2009 of $8m, R60m, if Red 5 Limited achieved the high that it achieved during 2009 of 0.18 Australian dollars per share, OCI would increase by $2m, R16m. If it achieved the low of 0.04 Australian dollars per share, OCI would decrease by $6m, R43m.
(1) During 2008, the Red 5 Limited investment and Dynasty Gold Corporation shares were impaired by $4m, R29m and $2m, R13m respectively.
| 2008 | 2009 | Figures in million | 2009 | 2008 |
|---|---|---|---|---|
| SA Rands | US Dollars | |||
| Held to maturity | ||||
| 104 | 104 | Balance at beginning of year | 11 | 15 |
| 50 | 58 | Additions | 7 | 6 |
| (50) | (88) | Maturities | (11) | (6) |
| – | – | Translation | 3 | (4) |
| 104 | 74 | Balance at end of year | 10 | 11 |
| Rehabilitation Trust Fund administered by RMB Private | ||||
| Bank comprising: | ||||
| 89 | 74 | Government bonds | 10 | 9 |
| 15 | – | Quasi – Government bonds | – | 2 |
| 104 | 74 | 10 | 11 | |
| 266 | 903 | Book value of listed investments | 121 | 28 |
| 278 | 906 | Market value of listed investments | 121 | 29 |
| The market value of held to maturity bonds is $10m, R77m (2008: $12m, R116m). The market value has a sensitivity of R44m (2008: R34m) for a 1% change in interest rates. | ||||
| Unlisted investments | ||||
| Available for sale | ||||
| 2 | 2 | Balance at beginning of year | – | – |
| – | 27 | Additions | 4 | – |
| – | (3) | Translation | – | – |
| 2 | 26 | Balance at end of year | 4 | – |
| Available for sale unlisted investments consist primarily of XDM Resources Limited. | ||||
| There is no active market for the unlisted equity investments and fair value cannot be reliably measured. The unlisted equity investments are carried at cost. The group does not intend to sell the investments in the foreseeable future. | ||||
| Held to maturity | ||||
| 367 | 357 | Balance at beginning of year | 38 | 54 |
| 725 | 541 | Additions (2) | 65 | 88 |
| (653) | (525) | Maturities | (63) | (79) |
| (99) | – | Re-allocation of Environmental Protection Agency Bond to cash restricted for use | – | (12) |
| 17 | – | Translation | 10 | (13) |
| 357 | 373 | Balance at end of year | 50 | 38 |
| Unlisted investments – held to maturity include: | ||||
| Negotiable Certificates of Deposit – Rehabilitation Trust | ||||
| 306 | 319 | Fund administered by RMB Private Bank | 43 | 32 |
| 33 | 36 | Nufcor Uranium Trust Fund | 5 | 3 |
| 18 | 18 | Other | 2 | 3 |
| 357 | 373 | 50 | 38 | |
| 359 | 399 | Book value of unlisted investments | 54 | 38 |
| 360 | 399 | Fair value of unlisted investments | 54 | 38 |
| 625 | 1,302 | Total book value of other investments (note 36) | 175 | 66 |
| 638 | 1,305 | Total fair value of other investmentss | 175 | 67 |
(2) Additions to unlisted investments consist of contributions to the Environmental Rehabilitation Trust Fund and the Nufcor Uranium Trust Fund. These investments are collateral for certain of the group’s environmental obligations.