financial position, page-4

one for bigbill me thinks.

(c) At 30 June 2012, $1,030,267 (2011: nil) of the other receivables balance is held as security for a maximum guarantee facility of ZAR 34,000,000
(AUD $4,037,190) provided to the Group by Lombard Insurance Company Ltd. Of the available ZAR 34,000,000, a total of ZAR 22,034,906
(AUD $2,616,440) was used at 30 June 2012 to provide guarantees to the Department of Minerals, Richards Bay Coal Terminal and Transnet Ltd.
(d) As part of the transaction to secure SIOC as the Group’s BEE partner during the year, the Group transferred ZAR 75,000,000 (approximately AUD
$9,180,000) of its intercompany loan balance to the new BEE partner. The effect of this transfer was to increase the Group’s external receivables
and borrowings by the same amount. The receivable balance at year end is inclusive of principal and accrued interest at 3% per annum.
It is denominated in South African Rand, and its fair value has been determined using a 16.6% discount rate and a 5 year repayment date.
The discount recorded at loan inception was $4,916,654, of which $161,643 has been unwound to 30 June 2012. The initial discount recorded
and subsequent unwinding has been recognised within transactions with non-controlling interests within equity and not in the statement
of comprehensive income.