Notes to the Consolidated and Separate Annual Financial Statements | Note 3

3. Property, plant and equipment
 
  2023  2022 
Group Cost  Accumulated  depreciation  and  impairment  Carrying 
value 		 Cost  Accumulated  depreciation  and  impairment  Carrying 
value 
Beneficiation assets            
Smelters  4,033,345  (3,202,504) 830,841  3,842,679  (3,125,430) 717,249 
Pelletising plants  422,522  (365,167) 57,355  398,629  (352,616) 46,013 
Right-of-use assets  31,674  (27,648) 4,026  31,674  (26,679) 4,995 
Corporate assets  4,110  (3,916) 194  4,347  (4,087) 260 
Mining assets
Mines 		 1,423,384  (1,060,338) 363,046  1,355,494  (1,097,018) 258,476 
PGMs processing plants  142,906  (10,654) 132,252  52,974  (4,996) 47,978 
Total  6,057,941  (4,670,227) 1,387,714  5,685,797  (4,610,826) 1,074,971 
  2023  2022 
Company Cost  Accumulated 
depreciation 		 Carrying 
value 		 Cost  Accumulated 
depreciation 		 Carrying 
value 
Right-of-use assets  —  —  —  533  (533) - 
Corporate assets  1,944  (1,585) 359  1,896  (1,469) 427 
Total  1,944  (1,585) 359  2,429  (2,002) 427 

Reconciliation of property, plant and equipment – Group – 2023

   Opening 
balance 		 Additions**  Acquisition of 
PGM X 		 Disposals  Disposal 
accumulated 
depreciation 		 Movement in 
capital work in 
progress 		 Depreciation* Total 
Beneficiation assets                         
Smelters  717,249  173,556  —  (101,347) 80,845  118,457  (157,919) 830,841 
Pelletising plants  46,013  27,244  —  (10,471) 9,682  7,122  (22,235) 57,355 
Right-of-use assets  4,995  —  —  —  —  —  (969) 4,026 
Corporate assets  260  50  —  (286) 286  —  (116) 194 
Mining assets                         
Mines  258,476  127,243  —  (101,752) 94,890  42,398  (58,209) 363,046 
PGMs processing plants  47,978  800  54,939  —  —  34,193  (5,658) 132,252 
   1,074,971  328,893  54,939  (213,856) 185,703  202,170  (245,106) 1,387,714 

Impairment assessment

As a result of an impairment indicator arising from Merafe's market capitalisation being lower than the net asset value on 31 December 2023, management performed an impairment assessment on the basis set out in notes 1.17 and note 37. Significant judgement and estimates were made in determining the value-in-use calculation, which is further explained in note 37. The recoverable amount was determined using the value-in-use calculation via a discounted cash flow model. Based on the model, the carrying value was higher than the recoverable amount, but no impairment was recognised as there was no conclusive evidence to support the loss. There was no impairment due to specific assets having nil economic value.

Depreciation

* R249m depreciation and amortisation is recognised in the statement of profit or loss and other comprehensive income, which comprises R245m resulting from property, plant and equipment and R4m of amortisation resulting from intangible assets.

Change in estimate

** An amount of R114m of change in estimate on the environmental rehabilitation provision is included in the additions for the Group. This is a non-cash item for the Group's statement of cash flows.

Reconciliation of property, plant and equipment – Group – 2022

   Opening
balance 		 Additions**  Disposals  Disposal
accumulated
depreciation
and impairment 		 Movement in
capital work in progress 		 Reclassifica-
tion to asse theld for sale 		 Depreciation*  Impairment
loss 		 Total 
 Beneficiation assets                            
Smelters  461,980  224,460  (241,960) 241,958  182,997  —  (151,950) (236) 717,249 
Pelletising plants  33,677  20,494  (21,340) 21,338  3,304  —  (11,460) —  46,013 
Right-of-use assets  11,692  2,081  (6,400) 6,257  —  —  (8,635) —  4,995 
Corporate assets  139  211  (388) 388  —  —  (90) —  260 
Mining assets
Mines 		 167,333  122,752  (56,445) 56,335  7,592  (963) (38,128) —  258,476 
PGMs processing plants  37,756  16,880  —  —  (1,882) —  (4,776) —  47,978 
   712,577   386,878   (326,533)   326,276   192,011   (963)   (215,039)   (236)   1,074,971  

Impairment assessment

As a result of an impairment indicator arising from Merafe's market capitalisation being lower than the net asset value at 31 December 2022, management performed an impairment assessment on the basis set out in notes 1.17 and note 37. Significant judgement and estimates were made in determining the value-in-use calculation, which is further explained in note 37. The recoverable amount was determined using the value-in-use calculation via a discounted cash flow model. Based on the model, the carrying value was higher than the recoverable amount, but no impairment was recognised as there was no conclusive evidence to support the loss. An impairment raised against the assets to the value of R0.24m is due to specific assets having nil economic value.

Depreciation

* R219m depreciation and amortisation is recognised in the statement of profit or loss and other comprehensive income, which comprises R215m resulting from property, plant and equipment and R4m of amortisation resulting from intangible assets.

Change in estimate

** An amount of R92m of change in estimate on the environmental rehabilitation provision is included in the additions for the Group. This is a non-cash item for the Group's statement of cash flows.

Reconciliation of property, plant and equipment – Company – 2023 

   Opening 
balance 		 Additions  Depreciation  Total 
Corporate assets  427  48  (116)  359 

Reconciliation of property, plant and equipment — Company — 2022 

    Opening 
balance 		 Additions  Derecognition  Depreciation  Total 
Right-of-use assets   176  —  (142) (34)  — 
Corporate assets   303  211  —   (87) 427 
    479  211  (142) (121) 427