of financial position.
h . Trade and other receivables
Trade and other receivables are recognised initially 
at fair value and subsequently measured at amor-
tised cost using the effective interest method, 
less provision for impairment. Receivables are due 
for settlement no more than 90 days from the 
date of recognition. 
Collectability of trade and other receivables is 
reviewed on an ongoing basis. Debts which are 
known to be uncollectible are written off by 
reducing the carrying amount directly. An allow-
ance account is used when there is objective 
evidence that the Group will not be able to collect 
all amounts due according to the original terms 
of the receivables. Significant financial difficulties 
of the debtor, probability that the debtor will 
enter bankruptcy or financial reorganisation, and 
default or delinquency in payments more than 60 
days overdue are considered indicators that the 
trade and other receivable is impaired. The 
amount of the impairment allowance is the 
difference between the asset’s carrying amount 
and the present value of estimated future cash 
flows, discounted at the original effective 
interest rate. Cash flows relating to short-term 
receivables are not discounted if the effect of 
discounting is immaterial.
The amount of the impairment loss is recognised 
in the statement of comprehensive income 
within other expenses. When a trade and other 
receivable for which an impairment allowance 
had been recognised becomes uncollectible in a 
subsequent period, it is written off against the 
allowance account. Subsequent recoveries of 
amounts previously written off are credited 
against other expenses in the statement of 
comprehensive income.
i . Inventories
Raw materials and stores, work in progress and 
finished goods, including gold bullion, are stated 
at the lower of cost and net realisable value. 
Cost comprises direct materials, direct labour 
and an appropriate proportion of variable and 
fixed overhead expenditure the latter being 
allocated on the basis of normal operating 
capacity. Costs are assigned to individual items 
of inventory on the basis of weighted average 
costs. Costs of purchased inventory are deter-
mined after deducting rebates and discounts. 
Net realisable value is the estimated selling price 
in the ordinary course of business less the 
estimated costs of completion and the esti-
mated costs necessary to make the sale.
Stockpiles represent ore that has been extracted 
and is available for further processing. If there is 
significant uncertainty as to whether the stock-
piled ore will be processed it is expensed as 
incurred. Where the future processing of this 
ore can be predicted with confidence, e.g. 
because it exceeds the mine’s cut-off grade, it  
is valued at the lower of cost and net realisable 
value. If the ore will not be processed within the 
12 months after the reporting date it is included 
within non-current assets. Work in progress 
inventory includes ore stockpiles and other 
partly processed material. Quantities are 
assessed primarily through surveys and assays, 
and truck counts.
j . Non-derivative financial assets
Classification and recognition
The Group classifies its investments and other 
financial assets in the following categories: 
financial assets at fair value through profit or 
loss, loans and receivables and available-for-sale 
financial assets. The classification depends on 
the purpose for which the investments were 
acquired. The Group determines the classifica-
tion of its investments at initial recognition and, 
in the case of assets classified as held-to-matu-
rity, re-evaluates this designation at each 
reporting date.
The Group initially recognises loans and receiva-
bles and deposits on the date that they are 
originated. All other financial assets (including 
assets designated at fair value through profit or 
loss) are recognised initially on the trade date at