Notes to the Consolidated and Separate Annual Financial Statements | Note 9

9. Inventories
 
   Group  Company 
   2023 
R '000 		 2022 
R '000 		 2023 
R '000 		 2022 
R '000 
Raw materials  793,058  1,065,148  –  – 
Work in progress –  10,136  –  – 
Finished goods 995,104  1,183,120  –  – 
Consumable stores 128,314  114,136  –  – 
   1,916,476  2,372,540  –  – 

The cost of inventories recognised as an expense and included in the cost of sales amounted to R3 973m (2022: R3 401m) which is an increase from the prior year due to the higher cost of production and weaker exchange rates. Refer to note 20. No inventories were encumbered during the year.

For the year ended 31 December 2023, inventory was written down to its net realisable value due to low commodity prices at the reporting date, resulting in a loss of R2m (2022: R1m). Refer to note 20.