Significant assumptions used in the Group’s impairment assessments (FVLCOD calculations) include:
| 2017 | 2016 | |||||||
|
US$ Gold price per ounce - year 1 |
US$1,200 | US$1,100 | ||||||
|
US$ Gold price per ounce - year 2 |
US$1,300 | US$1,200 | ||||||
|
US$ Gold price per ounce - year 3 onwards |
US$1,300 | US$1,300 | ||||||
|
Rand Gold price per kilogram - year 1 |
R525,000 | R500,000 | ||||||
|
Rand Gold price per kilogram - year 2 |
R525,000 | R550,000 | ||||||
|
Rand Gold price per kilogram - year 3 onwards |
R525,000 | R600,000 | ||||||
|
A$ Gold price per ounce - year 1 |
A$1,600 | A$1,500 | ||||||
|
A$ Gold price per ounce - year 2 |
A$1,700 | A$1,600 | ||||||
|
A$ Gold price per ounce - year 3 onwards |
A$1,700 | A$1,700 | ||||||
|
US$ Copper price per tonne - year 1 |
US$5,512 | US$5,512 | ||||||
|
US$ Copper price per tonne - year 2 |
US$6,171 | US$5,512 | ||||||
|
US$ Copper price per tonne - year 3 onwards |
US$6,171 | US$6,171 | ||||||
|
Resource value per ounce (used to calculate the value beyond |
||||||||
|
• South Africa (with infrastructure) |
US$17 | US$60 | ||||||
|
• Ghana (with infrastructure) |
US$41 | US$60 | ||||||
|
• Peru (with infrastructure) |
US$41 | US$60 | ||||||
|
• Australia (without infrastructure) |
US$293 | US$60 | ||||||
|
Discount rates |
||||||||
|
• South Africa - nominal |
13.5 | % | 13.5 | % | ||||
|
• Ghana - real |
9.7 | % | 9.7 | % | ||||
|
• Peru - real |
4.8 | % | 4.8 | % | ||||
|
• Australia - real |
3.8 | % | 3.8 | % | ||||
|
• Inflation rate - South Africa1 |
5.5 | % | 5.5 | % | ||||
|
Long-term exchange rates |
||||||||
|
• ZAR/US$ - year 1 |
13.61 | 14.14 | ||||||
|
• ZAR/US$ - year 2 (2016: year 2) |
13.16 | 14.26 | ||||||
|
• ZAR/US$ - year 3 onwards |
13.16 | 14.36 | ||||||
|
• US$/A$ - year 1 |
0.75 | 0.73 | ||||||
|
• US$/A$ - year 2 (2016: year 2) |
0.76 | 0.75 | ||||||
|
• US$/A$ - year 3 onwards |
0.76 | 0.76 | ||||||
| 1 |
Due to the availability of unredeemed capital for tax purposes over several years into the life of the South Deep mine, nominal cash flows are used for South Africa. In order to determine nominal cash flows in South Africa, costs are inflated by the current South African inflation rate. Cash flows for all other operations are in real terms and as a result are not inflated. |