Annual Financial Statements

Financial Statements for the year ended 31 December 2006

Notes to the Annual Financial Statements (21 - 31)

21.	EARNINGS PER SHARE
	Earnings per share are calculated using the weighted average number of ordinary shares in issue during the year. In the case of basic earnings per share the weighted average number of shares in issue during the year is 105 496 879 (2005 – 103 017 561). In respect of diluted earnings per share the weighted average number of shares is 108 260 821 (2005 – 105 552 404).
22.	DIVIDENDS (Rmillion)
							2006	2005
	Paid:
		Final for previous year, paid 23 March 2006 – 280 cents (2005 – 120 cents)					294	123
		Interim for current year, paid 31 August 2006 – 200 cents (2005 – 120 cents)					212	124
							506	247
	The final dividend for the year ended 31 December 2006 of 350 cents per share declared on 16 February 2007 and payable on 22 March 2007 has not been accrued.

23.	FINANCIAL RISK MANAGEMENT
	The Group's financial instruments consist primarily of cash deposits with banks, unlisted investments, derivatives, accounts receivable and payable, and loans to and from associates and others. Financial instruments are carried at fair value or amounts that approximate fair value.
	In the normal course of its operations, the Group is inter alia exposed to credit, foreign currency, interest, liquidity and commodity price risk. In order to manage these risks, the Group may enter into transactions, which make use of derivatives. They include forward exchange contracts (FEC's) and options, interest rate swaps and commodity futures and options. Separate committees are used to manage the risks and the hedging activities of the Group. The Group does not speculate in or engage in the trading of derivative instruments. Since the Group utilises derivative instruments for risk management, market risk relating to derivative instruments will be offset by changes in the valuation of the underlying assets, liabilities or transactions being hedged.
	Credit risk
	The Group's financial instruments do not represent a concentration of credit risk because the Group deals with a variety of major banks, and its accounts receivable and loans are spread among a number of major industries, customers and geographic areas. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. In addition, appropriate credit committees review significant credit transactions before consummation. Where considered appropriate, use is made of credit guarantee insurance. A suitable provision is made for doubtful debts. Financial guarantee contracts are accounted for as insurance arrangements.
	Foreign currency risk
	In the normal course of business, the Group enters into transactions denominated in foreign currencies. As a result, the Group is subject to transaction and translation exposure from fluctuations in foreign currency exchange rates. The Group uses a variety of instruments to minimise foreign currency exchange rate risk in terms of its risk management policy. In principle it is the Group's policy to cover its foreign currency exposure in respect of liabilities and purchase commitments and an appopriate portion of its foreign currency exposure on receivables. There were no speculative positions in foreign currencies at year end. All foreign exchange contracts are supported by underlying transactions. The Group is not reliant on imported raw materials to any significant extent.
	The Group's FEC’s that constitute designated hedges of currency risk at year end are summarised as follows:
		Group				Company
				2006	2005			2006	2005
		Average	Commitment	Fair value	Fair value	Average	Commitment	Fair value	Fair value
		contract		of FEC	of FEC	contract		of FEC	of FEC
		rate	(Rmillion)	(Rmillion)	(Rmillion)	rate	(Rmillion)	(Rmillion)	(Rmillion)
	Imports
	US dollars	7,03	37	(2)	(1)	7,22	5
	Euro	9,22	18			9,33	1
	Australian dollars	5,75	5			5,75	5
	UK pounds	13,70	2
			62	(2)	(1)		11
	Exports
	US dollars	7,10	378	10	7	7,32	124	4	4
	Euro	9,22	43	1
	Australian dollars	5,61	5			5,61	5
	UK pounds	13,73	6
			432	11	7		129	4	4
	Loan capital payments and interest
	US dollars				(7)
	Net total		494	9	(1)		140	4	4
	The hedges in respect of imports and exports are expected to mature within approximately one year.
	The fair value is the estimated amount that the Group would pay or receive to terminate the FEC’s in arm’s length transactions at the balance sheet date.
	The Group's FEC’s that do not constitute designated hedges of currency risk at year end are summarised as follows:
		Group				Company
				2006	2005			2006	2005
		Average	Commitment	Fair value	Fair value	Average	Commitment	Fair value	Fair value
		contract		of FEC	of FEC	contract		of FEC	of FEC
		rate	(Rmillion)	(Rmillion)	(Rmillion)	rate	(Rmillion)	(Rmillion)	(Rmillion)
	Imports
	US dollars	7,12	3			7,12	3
	Euro	9,30	5			9,30	5
			8				8
	Exports
	US dollars	7,00	312	6
	Loan capital payments and interest
	US dollars	7,00	85	1
	Total		405	7			8
	Although not designated as a hedge for accounting purposes, these FEC’s represent cover of existing foreign currency exposure. The FEC’s in respect of the capital payments and interest on the loan will mature during 2007 and 2008.
	The Group has the following uncovered foreign receivables:
		Group					Company
			Foreign				Foreign
			Amount	2006	2005		Amount	2006	2005
			(million)	(Rmillion)	(Rmillion)		(million)	(Rmillion)	(Rmillion)
	US dollars		6	45	8		1	9	6
	UK pounds			6	4
	Euro		1	5
				56	12			9	6
	Commodity price risk
	Commodity price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the prices of commodities. To hedge prices for the Group's substantial commodity requirements, commodity futures and options are used, including fixed and spot-defined forward sales contracts and call and put options.
	Tongaat-Hulett Sugar secures the premium on refined sugar exports from fluctuating international prices by using commodity futures.
	African Products has secured its maize requirements for the current maize season to 31 May 2007 and a significant portion of its requirements for the year ending 31 May 2008 by means of unpriced procurement contracts and futures.
	Hulett Aluminium purchases its aluminium raw material at prices that fluctuate with movements in the London Metal Exchange price for aluminium and the Rand/US dollar exchange rate. The exposure to movements in the price of aluminium arising from the timing of sales and purchases contracts is hedged by entering into futures contracts.
	At the year end the commodity futures contracts were:
		Group				Company
			Contract	2006	2005		Contract	2006	2005
			value	Fair value	Fair value		value	Fair value	Fair value
		Tons	(Rmillion)	(Rmillion)	(Rmillion)	Tons	(Rmillion)	(Rmillion)	(Rmillion)
	Futures hedge accounted:
	Raw sugar futures purchased	64 950	121	1	8	64 950	121	1	8
	Raw sugar futures sold	58 222	148	1	(9)	58 222	148	1	(9)
	Maize futures purchased	19 500	29	(4)	1	19 500	29	(4)	1
	Maize futures sold	40 300	53	(1)	18	40 300	53	(1)	18
	Aluminium futures purchased	10 838	200	13	7
				10	25			(3)	18
	Futures not hedge accounted:
	Aluminium futures sold	9 000	169	(9)
	Embedded derivatives:			Group
				2006	2005
	Fair value Fair value			(Rmillion)	(Rmillion)
	Sales orders not yet fulfilled				(1)
	Interest rate risk
	The Group is exposed to interest rate risk on its fixed rate loan liabilities and accounts receivable and payable, which can impact on the fair value of these instruments. The Group is exposed to interest rate cash flow risk in respect of its variable rate loans and short-term cash investments, which can impact on the cash flows of these instruments. The exposure to interest rate risk is managed using derivatives, where it is considered appropriate, and through the Group cash management system, which enables the Group to maximise returns while minimsing risks.
	Liquidity risk
	The Group manages its liquidity risk by monitoring forecast cash flows on a weekly basis. The Group has unutilised committed banking facilities of R1,0 billion (2005 - R1,3 billion).

24.	PRINCIPAL SUBSIDIARY COMPANIES AND JOINT VENTURES (Rmillion)
			Interest of Holding Company
			Shares		Indebtedness
			2006	2005	2006	2005
		African Products (Pty) Limited	15	15	(15)	(15)
	#	Hulett Aluminium (Pty) Limited (50%)	297	7	840	646
		Hulett-Hydro Extrusions (Pty) Limited (35%)
		Moreland Estates (Pty) Limited			(16)	(223)
		Tongaat-Hulett Sugar Limited	487	487	215	164
		Tambankulu Estates Limited (Swaziland)
		Açucareira de Moçambique, SARL (Mozambique) (75%)
	+	Triangle Sugar Corporation Limited (Zimbabwe)
	+	Hippo Valley Estates Limited (Zimbabwe) (50,35%)
		The Tongaat Group Limited	54	54	(43)	(47)
			853	563	981	525
	#	Joint venture
	+	Not consolidated, accounted for as an investment.
		Except where otherwise indicated, effective participation is 100 percent.
		A full list of all subsidiaries and joint ventures is available from the group secretary on request.

25.	GUARANTEES AND CONTINGENT LIABILITIES (Rmillion)			Group		Company
				2006	2005	2006	2005
	Guarantees in respect of obligations of the Group and third parties			57	30	21	14
	Contingent liabilities			22	14	4	11
				79	44	25	25
26.	LEASES (Rmillion)			Group		Company
				2006	2005	2006	2005
	Amounts payable under finance leases
		Minimum lease payments due:
			Not later than one year	1	1
			Later than one year and not later than five years	2	2
			Later than five years	1	1
				4	4
		Less: future finance charges		(1)	(1)
		Present value of lease obligations		3	3
		Payable:
			Not later than one year	1	1
			Later than one year and not later than five years	2	2
				3	3
	Operating lease commitments, amounts due:
		Not later than one year		13	12	8	8
		Later than one year and not later than five years		29	27	18	17
		Later than five years		3
				45	39	26	25
	In respect of:
		Property		28	25	16	11
		Plant and machinery		11	9	5	9
		Other		6	5	5	5
				45	39	26	25
27.	CAPITAL EXPENDITURE COMMITMENTS (Rmillion)			Group		Company
				2006	2005	2006	2005
	Contracted			169	112	77	55
	Approved but not contracted			640	187	125	137
				809	299	202	192
	On 1 December 2006 the Board approved a R1,3 billion expansion of the sugar milling and cane growing activities at the Xinavane and Mafambisse sugar mills in Mozambique. The Xinavane project is subject to a favourable outcome to the Environmental Impact Assessment process currently underway.
	Funds to meet this future expenditure will be provided from retained net cash flows and financing activities.
28.	RELATED PARTY TRANSACTIONS (Rmillion)
	During the year the Group, in the ordinary course of business, entered into various related party sales, purchases and investment transactions. These transactions occurred under terms that are no more or no less favourable than those arranged with third parties. Intra-group transactions are eliminated on consolidation.
				Group		Company
				2006	2005	2006	2005
	Goods and services:
		Between the company and its subsidiaries					3
		Transacted between subsidiaries within the Group		10	3
		Transacted with/between joint ventures within the Group		38	39	3	3
		Transacted with associate companies		79	75
		Sales to external related parties		108	90	108	90
		Paid to the Tongaat-Hulett Pension Fund		31	29	23	21*
		Transacted with directors of the company		7
	Administration fees and other income:
		Transacted between operating entities within the company				2	1
		Between the company and its subsidiaries				34	20
		Transacted between subsidiaries within the Group		22	25
		Transacted with/between joint ventures within the Group		305	235	2	2
		Transacted with associate companies		20	11
		Paid to external related parties		4	4
	Interest paid:
		Transacted between operating entities within the company				23	16
		Between the company and its subsidiaries				2	1
		Transacted with/between joint ventures within the Group		11	6
	Interest received:
		Transacted between operating entities within the company				112	119
		Transacted between subsidiaries within the Group		22	8
		Transacted with/between joint ventures within the Group		12	23	43	39
		Transacted with associate companies		1
	Sale of fixed assets:
		Between the company and its subsidiaries				314	57
		Transacted between subsidiaries within the Group		9
	Loan balances:
		Transacted between operating entities within the company				1 296	1 354
		Between the company and its subsidiaries				141	62
		Transacted with/between joint ventures within the Group		329	192	840	463
		With the holding company		12
		External related parties		8	12	8	12
	Dividends received:
		Transacted between operating entities within the company					47
		Between the company and its subsidiaries					45
		Transacted between subsidiaries within the Group		61	19
	Other related party information: Export partnership – refer to note 3
		Total dividends paid to the holding company and other shareholders – refer to note 22 Directors – refer to note 30
		Increased investment of R254 million made in Triangle Sugar to acquire Hippo Valley Estates from Anglo American.
	*	Restated
29.	RETIREMENT BENEFITS
	Pension and Provident Fund Schemes
	The Group contributes towards retirement benefits for substantially all permanent employees who, depending on preference or local legislation, are required to be a member of either a Group implemented scheme or of various designated industry or state schemes. The Group schemes are governed by the relevant retirement fund legislation. Their assets consist primarily of listed shares, fixed income securities, property investments and money market instruments and are held separately from those of the Group. The scheme assets are administered by boards of trustees, each of which includes elected employee representatives.
	Defined Contribution Pension and Provident Schemes
	There are three Group defined contribution schemes, one of which is located in Swaziland. The latest audited financial statements of these schemes all reflect a satisfactory state of affairs. Contributions of R16 million were expensed during the year (2005 – R16 million).
	Defined Benefit Pension Scheme
	There is one defined benefit scheme (The Tongaat-Hulett Pension Fund) for employees including those of the Hulett Aluminium Joint Venture. The Fund is actuarially valued at intervals of not more than three years using the projected unit credit method. In the statutory actuarial valuation of the scheme as at 31 December 2001 the Fund was certified by the reporting actuary to be in a sound financial position. With effect from 7 December 2001 the Pension Funds Second Amendment Act was promulgated. This Act requires the Fund to submit a plan for the apportionment on a fair basis to the employer and past and current members of the Fund of the actuarial surplus as at 31 December 2001. The apportionment plan must be approved by the Financial Services Board (FSB). Whilst the valuation of the Fund as at 31 December 2001 and the apportionment plan have been completed and submitted to the FSB, they have not yet been approved. Accordingly, due to the uncertainty regarding apportionment, no surplus has been recognised on the Group's balance sheet.
	An actuarial valuation of liabilities, based on the existing benefits, carried out as at 31 December 2006 in accordance with IAS 19 Employee Benefits showed the present value of obligations to be adequately covered by the fair value of the scheme assets.
						2006	2005
						Rmillion	Rmillion
	Details of the valuation of the Fund (100%) are as follows:
	Fair value of plan assets:
	Balance at beginning of year					4 554	3 602
	Expected return on scheme assets					348	283
	Employer contributions					39	37
	Members’ contributions					31	30
	Benefits paid					(181)	(179)
	Net member transfers					(9)	(13)
	Actuarial gain					1 163	794
	Balance at end of year					5 945	4 554
	Present value of defined benefit obligation:
	Balance at beginning of year					3 465	3 109
	Current service cost					81	72
	Interest cost					265	245
	Members’ contributions					31	30
	Benefits paid					(181)	(179)
	Net member transfers					(9)	(13)
	Actuarial loss					550	201
	Balance at end of year					4 202	3 465
	Fund assets less member liabilities, before reserves					1 743	1 089
	Asset information:
	Equities					4 624	3 512
	Fixed interest bonds					804	684
	Property					8	8
	Cash					509	350
						5 945	4 554
	Included in the assets of the scheme are ordinary shares held in The Tongaat-Hulett Group Limited, stated at fair value					212	125
	Actual return on scheme assets					1 511	1 077
	The principal actuarial assumptions are:
	Discount rate					8,00%	7,75%
	Salary cost and pension increase					4,75%	4,25%
	Expected rate of return on assets					8,00%	7,75%
	Experience gains/(losses):
	Plan liabilities					(429)	(198)
	Percentage of the present value of plan liabilities					10,20%	5,70%
	Plan assets					1 163	794
	Percentage of plan assets					19,60%	17,40%
	Estimated contributions payable in the next financial year					43	39
	Basis used to determine the rate of return on assets
	The rate of return on assets is based on the annualised yield on the R186 Government bond together with an allowance for the risk premium that one could reasonably expect on investing in a corporate bond compared to a Government bond.
	Post-retirement medical aid benefits
	The obligation of the Group to pay medical aid contributions after retirement is no longer part of the conditions of employment for employees engaged after 30 June 1996. A number of pensioners and current employees, however, remain entitled to this benefit. The entitlement to this benefit for current employees is dependent upon the employee remaining in service until retirement and completing a minimum service period of ten years. The unfunded liability for post-retirement medical aid benefits is determined actuarially each year and comprises:
				Group		Company
				2006	2005	2006	2005
				Rmillion	Rmillion	Rmillion	Rmillion
	Amounts recognised in the balance sheet:
	Present value of unfunded obligations			277	249	230	208
	Unrecognised actuarial losses			(36)	(19)	(32)	(18)
	Net liability in balance sheet			241	230	198	190
	The liability is reconciled as follows:
	Net liability at beginning of year			230	221	190	184
	Net expense recognised in income statement			27	25	22	20
	Contributions			(16)	(16)	(14)	(14)
	Net liability at end of year			241	230	198	190
	Amounts recognised in the income statement:
	Service costs			3	4	2	3
	Interest costs			19	19	16	15
	Net actuarial losses recognised			5	2	4	2
				27	25	22	20
	The principal actuarial assumptions applied are:
	Discount rate			8,00%	7,75%	8,00%	7,75%
	Health care cost inflation rate			5,25%	4,75%	5,25%	4,75%
	Sensitivity of healthcare cost trend rates:
	1% increase in trend rate – effect on the aggregate of the service and interest costs			4	3	3	2
	1% increase in trend rate – effect on the obligation			34	31	27	25
	1% decrease in trend rate – effect on the aggregate of the service and interest costs			4	3	3	2
	1% decrease in trend rate – effect on the obligation			29	26	23	21
	Estimated contributions payable in the next financial year			17	16	15	15
	Experience losses:
	On plan liabilities			22	4	18	6
	Percentage of the present value of plan liabilities			7,94%	1,61%	7,83%	2,88%
	Retirement gratuities
	The Group has in the past made payments, on retirement, to eligible employees who have remained in service until retirement, and have completed a minimum service period of ten years. The unfunded liability for retirement gratuities which is determined actuarially each year comprises:
				Group		Company
				2006	2005	2006	2005
				Rmillion	Rmillion	Rmillion	Rmillion
	Amounts recognised in the balance sheet:
	Present value of unfunded obligations			59	50	51	43
	Unrecognised actuarial (losses)/gains			(4)	2	(3)	3
	Net liability in balance sheet			55	52	48	46
	The liability is reconciled as follows:
	Net liability at beginning of year			52	49	46	43
	Net expense recognised in income statement			7	6	6	5
	Payments made			(4)	(3)	(4)	(2)
	Net liability at end of year			55	52	48	46
	Amounts recognised in the income statement:
	Service costs			3	2	2	2
	Interest costs			4	4	4	3
				7	6	6	5
	The principal actuarial assumptions applied are:
	Discount rate			8,00%	7,75%	8,00%	7,75%
	Salary inflation rate			5,25%	4,75%	5,25%	4,75%
	Estimated contributions payable in the next financial year			5	5	5	4
	Experience losses:
	On plan liabilities			7	2	6	1
	Percentage of the present value of plan liabilities			11,86%	4,00%	11,76%	2,33%

30.	DIRECTORS' REMUNERATION AND INTERESTS
	Directors' remuneration (R000)
	The directors' remuneration for the year ended 31 December 2006 was as follows:
				Retirement	Share
		Cash		and medical	option
	Name	package	Bonus	contributions	gains	Total
	Executive directors:
	B G Dunlop	2 168	1 010	256	7 506	10 940
	A Fourie	2 043	882	234	2 408	5 567
	G R Hibbert	1 752	824	203	2 957	5 736
	G P N Kruger	2 009	629	252	4 380	7 270
	M H Munro	1 810	869	216	820	3 715
	S J Saunders	2 010	907	235		3 152
	M Serfontein	1 618	746	190	2 486	5 040
	P H Staude	3 718	1 785	397	6 257	12 157
		17 128	7 652	1 983	26 814	53 577
	Bonuses are reported to match the amount payable to the applicable financial year.
	The directors' remuneration for the year ended 31 December 2005 was as follows:
				Retirement	Share
		Cash		and medical	option
	Name	package	Bonus	contributions	gains	Total
	Executive directors:
	B G Dunlop	2 036	975	229	144	3 384
	A Fourie	1883	825	222		2 930
	G R Hibbert	1 615	761	194	96	2 666
	G P N Kruger	1886	775	229	86	2 976
	M H Munro	1 616	784	195		2 595
	S J Saunders	1888	878	221	126	3 113
	M Serfontein	1520	722	175	478	2 895
	P H Staude	3 475	1 685	372	96	5 628
		15 919	7 405	1 837	1 026	26 187
	Bonuses are reported to match the amount payable to the applicable financial year.

		2006			2005
	Name	Fees	Other	Total	Fees	Other	Total
	Non-executive directors:
	D D Barber	135		135	115		115
	P M Baum	135	125	260	115	69	184
	I Botha	135	142	277	115	84	199
	L Boyd	135	178	313	115	138	253
	E le R Bradley	135	233	368	115	165	280
	B E Davison	135		135	115		115
	M W King	135	142	277	115	108	223
	J B Magwaza	135	140	275	115	1 936ø	2 051
	M Mia	135	123	258	115	105	220
	T H Nyasulu	135	32	167	115	96	211
	C M LSavage	500	267	767	230	628	858
	R H J Stevens	135	110	245	115	100	215
	A M Thompson	135	72	207	115		115
		2 120	1 564	3 684	1 610	3 429	5 039
	ø Includes share option gain on the exercise of options awarded when he was an executive director.
	Declaration of full disclosure
	Other than that disclosed above, no consideration was paid to, or by any third party, or by the company itself, in respect of services of the company's directors, as directors of the company, during the year ended 31 December 2006.
	Interest of directors of the company in share capital
	The aggregate holdings as at 31 December 2006 of those directors of the company holding issued ordinary shares of the company are detailed below. Holdings are beneficial except where indicated otherwise.

		2006		2005
		Direct	Indirect	Direct	Indirect
	Name	shares	shares	shares	shares
	Executive directors:
	B G Dunlop	7 394		4 210
	A Fourie	11 007		8 314
	G R Hibbert	7 356		24 872
	G P N Kruger	6 589		4 057
	M H Munro	6 263		3 704
	S J Saunders	12 849	761 632	9 982	761 632
	S J Saunders (non-beneficial)		487 376		487 376
	M Serfontein	8 498	8 000	6 141	8 000
	P H Staude	40 085		32 930
		100 041	1 257 008	94 210	1 257 008
	Non-executive directors:
	L Boyd	500		500
	E le R Bradley		99 316		99 316+
	E le R Bradley (non-beneficial)		25 809		25 809+
	J B Magwaza	5 760		5 760
	C M L Savage	24 003	73 225	24 003	73 225
	R H J Stevens	618		618
		30 881	198 350	30 881	198 350
	+ Reclassified

31.	EMPLOYEE SHARE INCENTIVE SCHEMES
	The adoption of IFRS 2 Share-based Payment (IFRS 2) in 2005 required that all awards made after 7 November 2002 be accounted for in the financial statements of the company and Group. IFRS 2 has therefore been applied to The Tongaat-Hulett Group Limited 2001 Share Option Scheme in respect of the awards made on 14 April 2003, 1 October 2003 and 21 April 2004 and to the Share Appreciation Right Scheme 2005 (SARS), the Long Term Incentive Plan 2005 (LTIP) and the Deferred Bonus Plan 2005 (DBP).
	Details of awards in terms of the company's share incentive schemes are as follows:
	The Tongaat-Hulett Employees Share Incentive Scheme and The Tongaat-Hulett Group Limited 2001 Share Option Scheme (the Original Share Option Schemes)
	Under the original share option schemes, participating employees were awarded share options in the company. On vesting, the employee is entitled to purchase shares in the company and immediately sell the shares at the market price, thereby benefiting from the appreciation in the share price.
	Option   Expiring     Number of Options Options Number of Options price   ten years from     options at exercised in forfeited in options at time Rand       31 Dec 2005 2006 2006 31 Dec 2006 constrained 33,25   4 November 1998   105 000 83 000   22 000   32,90     5 March 1999   733 200 489 200   244 000   40,10   7 May 1999         361 800 192 940   168 860   30,00   19 May 2000   122 000 88 200   33 800   29,40   26 July 2000   11 800 10 300   1 500   39,85   12 January 2001   108 500 71 800   36 700   40,00   16 May 2001   785 283 470 383 7 000 307 900   42,00   15 August 2001   55 000 51 500   3 500   49,60   13 May 2002   1 071 350 571 300 8 700 491 350   31,90   14 April 2003   1 107 500 432 500 20 500 654 500 353 310 34,50   1 October 2003   45 000 10 500   34 500 13 500 47,00   21 April 2004   1 192 800 224 000 25 600 943 200 692 760         5 699 233 2 695 623 61 800 2 941 810 1 059 570
	The weighted average fair value costing of share options granted in 2003 and 2004, determined using the binomial tree valuation model, was R11,12 per share and R15,28 per share respectively. No awards were made in 2006 (2005 – nil) under the original share option schemes.
	The significant inputs into the model for the 2003/4 awards of the original share option schemes were:
	Share price at grant date	The share price at the date on which the share option is issued, as noted above.
	Exercise price	The share price at grant date, as noted above.
	Expected option life	114 months (assume contractual plus a leaving percentage of 5%).
	Risk-free interest rate	9,02%
	Expected volatility	Expected volatility of 35% is based on historical volatility determined by the statistical analysis of daily share price movements over the past three years.
	Expected dividends	The measurement of the fair value of the share option did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 3,9% was used.
	Weighted average share price	R40,40
	Expected early exercise	Early exercise is taken into account on an expectation basis.
	Performance (vesting) conditions	There are no performance (vesting) conditions other than the passage of time.
	Non-market performance conditions	No non-market conditions.
	Market performance conditions	No market conditions.
	Weighted average remaining life: - Expected - Contractual	67 months or 5 years (2005 – 73 months or 6 years) 120 months or 10 years
	Details of awards in terms of the company's share incentive schemes are as follows:
	Share Appreciation Rights Scheme 2005
	Under the share appreciation right scheme, participating employees are awarded the right to receive shares equal to the difference between the exercise price and the grant price, less income tax payable on such difference. The employee therefore participates in the after tax share price appreciation in the company. The vesting of the right is conditional on the achievement of Group performance levels over a performance period.
	Grant price   Expiring   Number of Rights Rights Number of Rand   seven years from           rights at granted in forfeited in rights at         31 Dec 2005 2006 2006 31 Dec 2006 57,58   10 May 2005   1 372 162   29 294 1 342 868 96,09   25 April 2006     1 341 102 29 376 1 311 726         1 372 162 1 341 102 58 670 2 654 594
	The estimated fair value costing of these share appreciation rights was determined using the binomial tree valuation model and non-market performance conditions, based on the following significant inputs:
	Share price at grant date	The price at which the share appreciation right is issued, as noted above.
	Exercise price	The share price at grant date, as noted above.
	Expected option life	80 months (assume contractual plus a leaving percentage of 5%).
	Risk-free interest rate	2006 award – 7,22% (2005 award – 8,09%).
	Expected volatility	Expected volatility of 35% is based on historical volatility determined by the statistical analysis of daily share price movements over the past three years.
	Expected dividends	The measurement of the fair value of the share appreciation rights did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 4,0% was used for the 2006 award (2005 award – 3,9%).
	Weighted average share price	2006 award – R96,09 (2005 award – R57,58).
	Expected early exercise	Early exercise is taken into account on an expectation basis.
	Time constraints	Three years from grant date.
	Performance (vesting) conditions	An increase in headline earnings per ordinary share as determined by the Remuneration Committee. Retesting of the performance condition is allowed.
	Non-market performance conditions	Growth in headline earnings per share.
	Market performance conditions	No market conditions.
	Estimated fair value per right	2006 award – R18,11 (2005 award – R13,88).
	Weighted average remaining life: - Expected - Contractual	2006 award – 76 months or 6 years (2005 award – 64 months or 5 years) 84 months or 7 years
	Long Term Incentive Plan 2005
	Under the long term incentive plan, participating employees are granted conditional awards. These awards are converted into shares on the achievement of performance conditions over a performance period.
	Issue price   Expiring   Number of Conditional Conditional Number of Rand     three years from       conditional awards awards conditional         awards at granted in forfeited in awards at         31 Dec 2005 2006 2006 31 Dec 2006                 57,58      10 May 2005   343 122   6 397 336 725 96,09   25 April 2006     183 218 918 182 300         343 122 183 218 7 315 519 025
	The estimated fair value costing of these conditional share awards was determined using the Monte Carlo Simulation model and non-market performance conditions, based on the following significant inputs:
	Share price at grant date	The price at which the conditional share award is issued, as noted above.
	Exercise price	The share price at grant date, as noted above.
	Expected option life	34 months (assume contractual plus a leaving percentage of 5%).
	Risk-free interest rate	2006 award – 7,01% (2005 award – 7,44%).
	Expected volatility	Expected volatility of 25,60% for the 2006 award (2005 award –27,02%) is based on historical volatility determined by the statistical analysis of daily share price movements over the past three years.
	Expected dividends	The measurement of the fair value of the conditional share awards did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 3,8% was used for the 2006 award (2005 award – 3,9%).
	Weighted average share price	2006 award – R96,09 (2005 award – R57,58).
	Expected early exercise	Early exercise is taken into account on an expectation basis.
	Time constraints	Two years from issue date.
	Performance (vesting) conditions	50% of the LTIP award will be subject to the TSR condition and 50% will be subject to the ROCE condition. No retesting of the performance condition is allowed.
	Non-market performance conditions	Return on capital employed (ROCE).
	Market performance conditions	Total shareholder return (TSR).
	Estimated fair value per conditional award	2006 award – R39,78 (2005 award – R24,96)
	Weighted average remaining life: - Expected - Contractual	2006 award – 28 months or 2 years (2005 award – 16 months or 1 year) 36 months or 3 years
	Deferred Bonus Plan 2005
	Under the deferred bonus plan, participating employees purchase shares in the company with a portion of their after tax bonus. These pledged shares are held in trust by a third party administrator for a qualifying period, after which the company awards the employee a number of shares in the company which matches those pledged shares released from the trust.
	Issue price   Expiring   Number of Conditional Conditional Number of Rand   three years from   conditional awards awards conditional         awards at granted in forfeited in awards at           31 Dec 2005 2006 2006 31 Dec 2006                 57,76   4 May 2005         35 094     35 094 91,86   3 March 2006     25 831   25 831         35 094 25 831   60 925
	The estimated fair value costing of these deferred bonus share awards was based on the following significant inputs:
	Share price at grant date	The price at which the deferred bonus share is issued, as noted above.
	Exercise price	The share price at grant date, as noted above.
	Expected option life	34 months (assume contractual plus a leaving percentage of 5%).
	Risk-free interest rate	Not applicable.
	Expected volatility	Not applicable.
	Expected dividends	The measurement of the fair value of the deferred bonus shares did not take into account dividends, as no dividend payment was expected.
	Weighted average share price	2006 award – R91,86 (2005 award – R57,76).
	Expected early exercise	Early exercise is taken into account on an expectation basis.
	Time constraints	Two years from date.
	Performance (vesting) conditions	There are no performance (vesting) conditions other than the passage of time.
	Non-market performance conditions	No non-market conditions.
	Market performance conditions	No market conditions.
	Estimated fair value per deferred bonus share	2006 award – R72,47 (2005 award – R50,00)
	Weighted average remaining life: - Expected - Contractual	2006 award – 26 months or 2 years (2005 award – 16 months or 1 year) 36 months or 3 years
	The deferred bonus shares were purchased by the participating employees on 2 March 2006 in respect of the 2006 award (2005 award – purchased over the period from 4 May 2005 to 10 May 2005).

	Interest of directors of the company in share-based instruments
	The interests of the directors in share options of the company are shown in the table below:
	The Original Share Option Schemes
					Number	Options	Number
		Option			of options	exercised	of options	Options
		price		Expiring	at 31 Dec	in	at 31 Dec	time
	Name	Rand		ten years from	2005	2006	2006	constrained
	Executive director:
	B G Dunlop	33,25		4 November 1998	8 000	8 000
		32,90		5 March 1999	39 000	39 000
		40,10		7 May 1999	14 000	14 000
		30,00		19 May 2000	7 000	7 000
		39,85		12 January 2001	9 000	9 000
		40,00		16 May 2001	30 000	30 000
		49,60		13 May 2002	25 000	18 000	7 000
		31,90		14 April 2003	24 400	15 000	9 400	7 320
		47,00		21 April 2004	3 600		3 600	2 160
					160 000	140 000	20 000	9 480
	A Fourie	33,25		4 November 1998	4 000	4 000
		32,90		5 March 1999	18 000	18 000
		40,10		7 May 1999	5 200	5 200
		30,00		19 May 2000	4 000	4 000
		39,85		12 January 2001	2 400	2 400
		40,00		16 May 2001	10 000		10 000
		49,60		13 May 2002	35 000		35 000
		31,90		14 April 2003	40 000	7 400	32 600	12 000
		47,00		21 April 2004	30 000		30 000	18 000
					148 600	41 000	107 600	30 000
	G R Hibbert	33,25		4 November 1998	8 000	8 000
		32,90		5 March 1999	40 000	40 000
		40,10		7 May 1999	9 000		9 000
		30,00		19 May 2000	4 000		4 000
		39,85		12 January 2001	5 000		5 000
		40,00		16 May 2001	15 000		15 000
		49,60		13 May 2002	15 000		15 000
		31,90		14 April 2003	15 000		15 000	4 500
		47,00		21 April 2004	25 000		25 000	15 000
					136 000	48 000	88 000	19 500
	G P N Kruger	33,25		4 November 1998	8 000	8 000
		32,90		5 March 1999	43 000	43 000
		40,10		7 May 1999	14 000		14 000
		30,00		19 May 2000	4 000	4 000
		39,85		12 January 2001	5 000	5 000
		40,00		16 May 2001	20 000		20 000
		49,60		13 May 2002	25 000		25 000
		31,90		14 April 2003	20 000	14 000	6 000	6 000
		47,00		21 April 2004	10 000		10 000	6 000
					149 000	74 000	75 000	12 000
	The interests of the directors in share options of the company are shown in the table below:
					Number	Options	Number
		Option			of options	exercised	of options	Options
		price		Expiring	at 31 Dec	in	at 31 Dec	time
	Name	Rand		ten years from	2005	2006	2006	constrained
	Executive director continued:
	M H Munro	33,25		4 November 1998	4 000		4 000
		32,90		5 March 1999	14 000	14 000
		40,10		7 May 1999	5 800		5 800
		30,00		19 May 2000	3 800		3 800
		39,85		12 January 2001	2 400		2 400
		40,00		16 May 2001	9 000		9 000
		49,60		13 May 2002	11 500		11 500
		31,90		14 April 2003	12 400		12 400	3 720
		34,50		1 October 2003	30 000		30 000	9 000
		47,00		21 April 2004	32 000		32 000	19 200
					124 900	14 000	110 900	31 920
	S J Saunders	33,25		4 November 1998	8 000		8 000
		32,90		5 March 1999	30 000		30 000
		40,10		7 May 1999	14 000		14 000
		30,00		19 May 2000	5 000		5 000
		39,85		12 January 2001	5 000		5 000
		40,00		16 May 2001	18 000		18 000
		49,60		13 May 2002	18 000		18 000
		31,90		14 April 2003	18 000		18 000	5 400
		47,00		21 April 2004	18 000		18 000	10 800
					134 000		134 000	16 200
	M Serfontein	32,90		5 March 1999	19 000	19 000
		40,10		7 May 1999	10 000	10 000
		30,00		19 May 2000	5 000	5 000
		39,85		12 January 2001	5 000	5 000
		40,00		16 May 2001	15 000	5 000	10 000
		49,60		13 May 2002	15 000		15 000
		31,90		14 April 2003	20 000		20 000	6 000
		47,00		21 April 2004	14 000		14 000	8 400
					103 000	44 000	59 000	14 400
	P H Staude	33,25		4 November 1998	10 000	10 000
		32,90		5 March 1999	49 000	49 000
		40,10		7 May 1999	14 000	14 000
		30,00		19 May 2000	7 000	7 000
		39,85		12 January 2001	9 000	9 000
		40,00		16 May 2001	30 000	20 000	10 000
		49,60		13 May 2002	65 000		65 000
		31,90		14 April 2003	30 000		30 000	9 000
		47,00		21 April 2004	28 000		28 000	16 800
					242 000	109 000	133 000	25 800
	The interests of the directors in share options of the company are shown in the table below:
					Number	Options	Number
		Option			of options	exercised	of options	Options
		price		Expiring	at 31 Dec	in	at 31 Dec	time
	Name	Rand		ten years from	2005	2006	2006	constrained
	Non-executive director: #
	J B Magwaza	30,00		19 May 2000	2 000		2 000
		39,85		12 January 2001	1 600		1 600
		40,00		16 May 2001	6 000		6 000
		49,60		13 May 2002	6 000		6 000
					15 600		15 600
	C M L Savage	32,90		5 March 1999	60 000		60 000
		40,10		7 May 1999	50 000		50 000
		39,85		12 January 2001	8 000		8 000
		40,00		16 May 2001	22 000		22 000
					140 000		140 000
	Total				1 353 100	470 000	883 100	159 300
	# The non-executive directors’ share options were awarded when they were executive directors.

	The interests of the directors in other share-based instruments of the company are shown in the tables below:
	Share Appreciation Rights Scheme 2005
		Number	Rights	Number
		of rights	granted	of rights	Rights
		at 31 Dec	in	at 31 Dec	time
	Name of executive director	2005	2006	2006	constrained
	B G Dunlop	40 597	23 737	64 334	64 334
	A Fourie	37 381	23 249	60 630	60 630
	G R Hibbert	30 776	19 590	50 366	50 366
	G P N Kruger	32 610	22 345	54 955	54 955
	M H Munro	32 185	20 472	52 657	52 657
	S J Saunders	31 003	21 680	52 683	52 683
	M Serfontein	24 942	17 355	42 297	42 297
	P H Staude	92 810	62 082	154 892	154 892
		322 304	210 510	532 814	532 814
	Grant price (Rand)	57,58	96,09
	Expiring seven years from	10 May 2005	25 April 2006
	Long Term Incentive Plan 2005
		Number	Conditional	Number	Conditional
		of conditional	awards	of conditional	awards
		awards at	granted in	awards at	time
	Name of executive director	31 Dec 2005	2006	31 Dec 2006	constrained
	B G Dunlop	20 126	10 117	30 243	30 243
	A Fourie	18 528	9 909	28 437	28 437
	G R Hibbert	15 730	8 349	24 079	24 079
	G P N Kruger	17 825	9 523	27 348	27 348
	M H Munro	15 955	8 725	24 680	24 680
	S J Saunders	17 308	9 240	26 548	26 548
	M Serfontein	13 925	7 396	21 321	21 321
	P H Staude	50 720	26 459	77 179	77 179
		170 117	89 718	259 835	259 835
	Issue price (Rand)	57,58	96,09
	Expiring three years from	10 May 2005	25 April 2006
	Deferred Bonus Plan 2005
		Number	Conditional	Number	Conditional
		of conditional	awards	of conditional	awards
		awards at	granted in	awards at	time
	Name of executive director	31 Dec 2005	2006	31 Dec 2006	constrained
	B G Dunlop	4 210	3 184	7 394	7 394
	A Fourie	3 314	2 693	6 007	6 007
	G R Hibbert	3 310	2 484	5 794	5 794
	G P N Kruger	3 852	2 532	6 384	6 384
	M H Munro	3 204	2 559	5 763	5 763
	S J Saunders	3 982	2 867	6 849	6 849
	M Serfontein	3 141	2 357	5 498	5 498
	P H Staude	10 081	7 155	17 236	17 236
		35 094	25 831	60 925	60 925
	Issue price (Rand)	57,76	91,86
	Expiring three years from	4 May 2005	3 March 2006
	The deferred bonus shares were purchased by the participating employees on 2 March 2006 in respect of the 2006 award (2005 award – purchased over the period from 4 May 2005 to 10 May 2005).