Chart INR, page-305

Bearju

I will help you out but we are going to get technical here

If you had said “100% of their PROFITS (not earnings) fromtheir SA gold and PGM mines” I wouldn’t have jumped

Earnings – are what flow from the Operating Statement (P&L) to the Statement of Financial Position (B/sheet)

Can be positive or negative – used by analysts to determine earnings per share etc (you can have negative EPS – INR is a classic example)

Consolidated Financial Statements – the aggregation of all company accounts within a group, including those that make losses. You can’t leave out the loss makers when determining earnings.

So rules 1-4 are

1. Debits are on the left (by the window) & Credits are on the right (by the door)

2. Earnings are not sales or gross profit (lots of people get sales & earnings confused)

3. Earnings include all revenues & outgoings including interest, amortisation, depreciation & tax

4. Earnings flow through to the Balance Sheet & are added (or deducted if in a loss position) from "Equity"

But you know all this already

You said 100% of earnings – you can’t leave out the loss makers (which you have chosen to do) when compiling a consolidated set of financial statements (Rule 5)

As well as agreeing to contribute $US490m for 50% of the RR J/V (INR’s 50% contribution is their 100% of the south basin resource) Sibanye contributed $A95m ($US70m) for 146m shares or (now) 6.95% if the issued capital in INR – a not too shabby investment.

You did say “50pc of everything outside of current mine planfor $50m” – to clarify: INR will tip 100% of the north basin (subject to still undisclosedT & C’s) into the J/V if Sibanye pay INR another $US50m

Pages 7-9 of the presentation dated 16.9.2021 pretty much lays it out, including all the pluses Sibanye bring to the table.

I don’t think Sibanye will pull out, which is what you would like

Having said all that, there is one thing we agree on & that is, SA is stuffed

There are other rules (6-10) but rule 10 ½ (a bit like platform 9 ¾ - an add on but not everyone gets it) is “join a small wine club & do lunch bi-monthly & chill out” – that’s what I intend to do today (it is POETS day) so this will be my last post to you on this - TTFN

Cat