Notes to the Financial Statments (1 - 10)

1.	PROPERTY, PLANT AND EQUIPMENT (Rmillion)

	Group			Total	Land	Plant and	Vehicles	Capitalised	Capital
					and	equipment	and other	leased	work in
					buildings			plant and	progress
								vehicles
	Carrying value at beginning of year			4 162	634	3 013	195	82	238
	Additions			191	3	99	12		77
	Disposals			(20)	(16)	(2)	(1)	(1)
	Depreciation			(231)	(11)	(190)	(28)	(2)
	Transfers				7	32	2		(41)
	Currency alignment			13	5	3	1	4
	Carrying value at end of year			4 115	622	2 955	181	83	274
	^Comprising:
	2004
		At cost		5 589	749	4 015	430	121	274
		Accumulated depreciation		1 474	127	1 060	249	38
				4 115	622	2 955	181	83	274
	2003
		At cost		5 485	748	3 956	423	120	238
		Accumulated depreciation		1 323	114	943	228	38
				4 162	634	3 013	195	82	238
	Company
	Carrying value at beginning of year			1 908	278	1 335	116	6	173
	Additions			129	2	80	3		44
	Disposals			(18)	(16)	(1)	(1)
	Depreciation			(159)	(4)	(137)	(18)
	Transfers				5	3	1		(9)
	Carrying value at end of year			1 860	265	1 280	101	6	208
	^Comprising:
	2004
		At cost		2 911	329	2 069	276	29	208
		Accumulated depreciation		1 051	64	789	175	23
				1 860	265	1 280	101	6	208
	2003
		At cost		2 881	338	2 059	282	29	173
		Accumulated depreciation		973	60	724	166	23
				1 908	278	1 335	116	6	173
	Plant and machinery with a book value of R44 million (2003 - R46 million) are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R8 million (2003 - R14 million). The register of land and buildings is available for inspection at the company's registered office.

2.	GROWING CROPS (Rmillion)					Group		Company
						2004	2003	2004	2003
	Reconciliation of carrying value:
	Carrying value at beginning of year					179	168	94	100
	Increase due to purchases/increased area under cane						6
	Gain arising from physical growth and price changes					23	40	2	16
	Net decrease due to reduced area under cane					(20)	(27)	(20)	(22)
	Currency alignment					3	(8)
	Carrying value at end of year					185	179	76	94

2.	GROWING CROPS continued					Group		Company
						2004	2003	2004	2003
	Area under cane (hectares)
		South Africa				10 869	13 436	10 869	13 436
		Mozambique				7 200	7 480
		Swaziland				3 811	3 811
						21 880	24 727	10 869	13 436

3.	LONG-TERM RECEIVABLE (Rmillion)					Group		Company
						2004	2003	2004	2003
	Advances to an export partnership					210	210	210	210
	The company participates in an export partnership engaged in the construction of luxury vessels in order to foster the use of aluminium plate in marine applications.
4.	GOODWILL (Rmillion)					Group
						2004	2003
	At cost					49	49
	Accumulated amortisation
		Balance at beginning of year				12	9
		Current charge				2	3
	Balance at end of year					14	12
	Carrying value at end of year					35	37
	Goodwill is amortised over 20 years.

5.	INVESTMENTS (Rmillion)					Group		Company
						2004	2003	2004	2003
	Associate:
	The carrying value of the Group's 49% interest in
	Açucareira de Xinavane, SARL (Mozambique) comprises:
		Unlisted shares				20	20
		Loan				80	74
		Cumulative share of post-acquisition deficits				(95)	(94)
			Balance at beginning of year			(94)	(68)
			Movement in currency translation reserve			(7)	19
			Earnings/(loss) for the year			6	(45)

	Book value					5	0
	Directors' valuation					5	0
	Summarised balance sheet:
		Property, plant and equipment				359	323
		Growing crops				59	42
		Current assets				49	99
		Current liabilities				(82)	(92)
		Borrowings:
			External			(354)	(385)
			Shareholders			(198)	(155)
		Net deficit				(167)	(168)
		Other shareholders' share of deficit				85	86
		Group share of deficits (pre and post-acquisition)				(82)	(82)
	Summarised income statement:
		Revenue				125	103
		Earnings/(loss) before depreciation				5	(3)
		Depreciation				(24)	(27)
		Foreign exchange gain/(loss)				58	(31)
		Operating profit/(loss)				39	(61)
		Financing costs				(27)	(32)
		Earnings/(loss) for the year				12	(93)
		Other shareholders' interest				(6)	48
		Group share of earnings/(loss)				6	(45)
	Other investments:
		Unlisted shares at fair value				15	2
		Loans				3	3	2	2
		Book value				18	5	2	2
	Carrying value of investments					23	5	2	2
	A schedule of unlisted investments is available for inspection at the company's registered office.
6.	DERIVATIVE INSTRUMENTS (Rmillion)					Group		Company
						2004	2003	2004	2003
	The fair value of derivative instruments at year end was:
	Forward exchange contracts - hedge accounted					(8)	(34)	8	10
	Forward exchange contracts - not hedge accounted					4	(1)	2	(1)
	Futures contracts - hedge accounted					(7)	(7)	(7)	1
	Embedded derivatives					(5)
						(16)	(42)	3	10
	Summarised as:
		Derivative assets				36	11	14	11
		Derivative liabilities				(52)	(53)	(11)	(1)
						(16)	(42)	3	10
	Further details on derivative instruments are set out in note 31.

7.	SUBSIDIARIES AND JOINT VENTURES (Rmillion)					Company
						2004	2003
	Shares at cost, less amounts written off					527	498
	Indebtedness by					715	527
	Indebtedness to					(191)	(106)
						1 051	919
	The Group's proportionate share of the assets, liabilities and post-acquisition reserves of joint ventures, which comprise in the main, Hulett Aluminium, is included in the consolidated financial statements as follows:
	Property, plant, equipment and investments					1 969	1 987
	Current assets					849	639
	Less: Current liabilities					(309)	(274)
	Capital employed					2 509	2 352
	Less: Borrowings					(435)	(470)
	Post-acquisition reserves					(1 320)	(1 169)
	Deferred tax, provisions and derivative instruments					(549)	(583)
	Minority interests in subsidiary					(11)	(6)
	Interest in joint ventures					194	124
	The Group's proportionate share of the trading results of the joint ventures is as follows:
	Revenue					1 783	1 618
	Earnings/(loss) for the year					57	(74)
	Tax					(3)	24
	Minority interests					(5)	(1)
	Total net earnings/(loss)					49	(51)
	The Group's proportionate share of cash flows of the joint ventures is as follows:
	Cash flows from operating activities					(193)	(19)
	Net cash used in investing activities					(38)	(55)
	Net movement in cash resources					(231)	(74)
	The investment in Triangle is retained at a nominal value.
	Its assets, liabilities and results which are not included in the consolidated financial statements and which have not been adjusted for inflation, are translated at the official Zimbabwe dollar exchange rate as follows:
		2004	2003			2004	2003
	Equity	194	365	*	Property, plant and equipment	28	22
	Minority interest	6	9		Growing crops	133	392
	Deferred tax	41	121		Current assets	255	486
	Long-term borrowings		4		Current liabilities	(175)	(401)
		241	499			241	499
	Revenue	852	954		Total net earnings	256	445
	* Property, plant and equipment have been accounted for in terms of the historical cost convention.

8.	INVENTORIES (Rmillion)	Group		Company
		2004	2003	2004	2003
	Raw materials	404	586	263	493
	Work in progress	82	77	4	4
	Finished goods	819	775	724	697
	Consumable stores	122	117	56	57
	Development properties	222	214
		1 649	1 769	1 047	1 251
	Included in raw materials is an amount of R208 million (2003 - R517 million) that relates to the constructive obligation that has been recognised on maize procurement contracts.
9.	CASH AND CASH EQUIVALENTS
	Cash and cash equivalents include cash on hand, cash on deposit and cash advanced, repayable on demand.
10.	SHARE CAPITAL (Rmillion)
				2004	2003
	Authorised:
	150 000 000 ordinary shares of R1 each			150	150
	Issued and fully paid:
	102 247 941 (2003 - 101 467 417)			102	101
	Unissued:
	Under option to employees, for a period of ten years from date granted, to subscribe for 7 466 621 shares at an average price of R39,79 per share (2003 - 7 040 460 shares at R38,36 per share).
	Under control of the directors for the purposes of the company's share incentive scheme 2 758 173 shares (2003 - 3 106 282 shares).
	Under control of directors in terms of a shareholders' resolution 37 527 265 shares (2003 - 38 385 841 shares). Details of share options are set out in note 25.