Notes to the Financial Statments (21 - 32)

21.	HEADLINE EARNINGS/(LOSS) (Rmillion)	Group
		2004	2003
	Total net earnings/(loss)	226	(41)
	Less after tax effect of:
	Exceptional items (note 18)	(9)	(9)
	Surplus on disposal of fixed assets	(3)	(1)
	Realised gain on cash equivalent investment		(42)
	Headline earnings/(loss)	214	(93)

22.	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 101 718 002 (2003 - 101 417 620) and in respect of diluted earnings per share the weighted average number of shares is 102 790 613 (2003 - 101 815 540).
23.	DIVIDENDS (Rmillion)
		2004	2003
	Paid:
	Final for previous year, paid 25 March 2004 - 80 cents (2003 - 190 cents)	81	193
	Interim for current year, paid 2 September 2004 - 50 cents (2003 - 40 cents)	51	40
		132	233
	The final dividend for the year ended 31 December 2004 of 120 cents per share declared on 18 February 2005 and payable on 24 March 2005 has not been accrued.

24.	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 benefit pension scheme There is one defined benefit scheme for employees including those of the Hulett Aluminium Joint Venture. This scheme is actuarially valued at intervals of not more than three years using the projected unit credit method. The statutory actuarial valuation of the scheme as at 31 December 2001 was certified by the reporting actuary to be in a sound financial position. With effect from 7 December 2001 The Pension Funds Second Amendment Bill was enacted. This Bill requires that the actuarial valuation at 31 December 2001, together with a plan for the apportionment on a fair basis to the employer and past and current members of the fund, of any surplus established by this valuation must be approved by the Financial Services Board (FSB). Whilst the valuation has been completed and submitted to the FSB, the apportionment plan, which will determine the entitlement of any party, is currently being developed and is expected to be submitted to the FSB for approval before 30 June 2005. Accordingly, due to the uncertainty regarding entitlement, 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 2004 in accordance with AC116 showed the present value of obligations to be adequately covered by the fair value of the scheme assets.
				Group
				2004	2003
				Rmillion	Rmillion
	Details of the valuation are as follows:
	Fair value of scheme assets			3 602	3 061
	Present value of obligation			(3 109)	(2 558)
	Excess of Fund assets over member liabilities			493	503
	The reconciliation for the year is as follows:
	Opening balance			503	521
	Interest costs			(270)	(252)
	Service costs			(91)	(70)
	Contributions paid (company and employee)			67	59
	Expected return on scheme assets			270	308
	Actuarial gains/(losses)			14	(63)
	Closing balance			493	503
	Actual return on scheme assets:			367	438
	Included in the assets of the scheme are ordinary shares held in
	The Tongaat-Hulett Group Limited, stated at fair value			85	52
	The principal actuarial assumptions are:
	Discount rate			8,0%	10,0%
	Salary cost inflation			5,0%	7,0%
	Pension increase allowance			4,0%	6,0%
	Expected rate of return on assets			8,0%	10,0%
	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 R15 million were expensed during the year (2003 - R13 million).
	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
			2004	2003	2004	2003
	Amounts recognised in the balance sheet:
		Present value of unfunded obligations	239	218	198	184
		Unrecognised actuarial losses	(18)	(7)	(14)	(7)
		Net liability in balance sheet	221	211	184	177
	The liability is reconciled as follows:
		Net liability at beginning of year	211	199	177	170
		Net expense recognised in income statement	26	25	22	19
		Contributions	(16)	(13)	(15)	(12)
		Net liability at end of year	221	211	184	177
	Amounts recognised in the income statement:
		Service costs	3	4	2	2
		Interest costs	21	23	18	20
		Net actuarial losses/(gains) recognised	2	(2)	2	(3)
			26	25	22	19
	The principal actuarial assumptions applied are:
		Discount rate	8,0%	10,0%	8,0%	10,0%
		Health care cost inflation rate	5,0%	7,0%	5,0%	7,0%
	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
			2004	2003	2004	2003
	Amounts recognised in the balance sheet:
		Present value of unfunded obligations	45	48	40	43
		Unrecognised actuarial gains/(losses)	4	(2)	3	(2)
		Net liability in balance sheet	49	46	43	41
	The liability is reconciled as follows:
		Net liability at beginning of year	46	43	41	39
		Net expense recognised in income statement	7	7	6	6
		Payments made	(4)	(4)	(4)	(4)
		Net liability at end of year	49	46	43	41
	Amounts recognised in the income statement:
		Service costs	3	3	2	2
		Interest costs	5	5	4	5
		Net actuarial gains recognised	(1)	(1)		(1)
			7	7	6	6
	The principal actuarial assumptions applied are:
		Discount rate	8,0%	10,0%	8,0%	10,0%
		Salary inflation rate	5,0%	7,0%	5,0%	7,0%

25.	SHARE OPTIONS
	Details of share options issued in terms of the company's share incentive schemes are as follows:
	Option			Number of	Options	Options	Options	Number of	Options
		price	Expiring	options at	granted in	exercised in	forfeited in	options at	time
		Rand	ten years from	31 Dec 2003	2004	2004	2004	31 Dec 2004	constrained
		28,33	4 March 1994	19 200		19 200
		40,50	20 September 1994	488 020		487 520	500
		40,00	24 March 1995	97 400		3 000		94 400
		33,25	4 November 1998	227 200		25 500		201 700
		32,90	5 March 1999	1 366 800		141 254		1 225 546
		40,10	7 May 1999	611 240		51 580		559 660
		30,00	19 May 2000	196 900		8 720		188 180	75 272
		29,40	26 July 2000	22 300		1 600		20 700	8 280
		39,85	12 January 2001	132 600		3 000		129 600	77 760
		40,00	16 May 2001	1 192 650		39 150	6 795	1 146 705	344 011
		42,00	15 August 2001	58 500				58 500	17 550
		49,60	13 May 2002	1 293 250			13 320	1 279 930	767 958
		31,90	14 April 2003	1 289 400			18 300	1 271 100	1 271 100
		34,50	1 October 2003	45 000				45 000	45 000
		47,00	21 April 2004		1 260 800		15 200	1 245 600	1 245 600
				7 040 460	1 260 800	780 524	54 115	7 466 621	3 852 531

26.	DIRECTORS' REMUNERATION AND INTERESTS
	Directors' remuneration (R000)
	The directors' remuneration for the year ended 31 December 2004 was as follows:
					Travel	Retirement		Share
			#Cash		expense	and medical	Other	option
	Name	Fees	salary	Bonus	allowances	contributions	benefits	gains	Total
	Executive directors:
	D G Aitken (to 29 February 2004)	13	169		28	29	945*	65	1 249
	B G Dunlop	95	1 418	811	312	219	103+	55	3 013
	A Fourie	95	1 163	638	296	199	34+	19	2 444
	G R Hibbert	95	970	637	305	175	69+	16	2 267
	G P N Kruger	95	1 319	742	308	222	206+	53	2 945
	M H Munro	95		939	617	302	178	39	2 170
	S J Saunders	95	1 322	767	298	214	206+	74	2 976
	M Serfontein	95	971	605	304	187	103+	128	2 393
	P H Staude	95	2 622	1 493	361	344	206+	18	5 139
		773	10 893	6 310	2 514	1 767	1 872	467	24 596
#	During 2004 the company converted to a cash based remuneration structure which resulted in the inclusion in cash salary of amounts in respect of various separate fringe benefits previously disclosed as other benefits.
*	Including accrued leave and retirement gratuity.
+	A once-off lump sum settlement was paid on the discontinuance of an educational assistance scheme.
	Bonuses and other benefits are reported to match the amount payable to the applicable financial year.


	Directors' remuneration (R000)
	The directors' remuneration for the year ended 31 December 2003 was as follows:
					Travel	Retirement		Share
					expense	and medical	Other	option
	Name	Fees	Salary	Bonus	allowances	contributions	benefits	gains	Total
	Executive directors:
	D G Aitken	80	946		190	162	178	70	1 626
	B G Dunlop	80	1 218		193	207	278	23	1 999
	A Fourie	80	948		194	168	198	53	1 641
	G R Hibbert	80	787	251	203	140	236	55	1 752
	G P N Kruger	80	1 156		187	186	235		1 844
	J B Magwaza (to 31 July 2003)	40	518		97	90	967*	84	1 796
	M H Munro (from 1 October 2003)	20	227		54	39	76		416
	S J Saunders	80	1 005		193	179	212	216	1 885
	M Serfontein	80	793		182	152	271		1 478
	P H Staude	80	2 200		230	282	593	156	3 541
		700	9 798	251	1 723	1 605	3 244	657	17 978
*	Including accrued leave and retirement gratuity.
	Bonuses and other benefits are reported to match the amount payable to the applicable financial year.
					2004			2003
	Name			Fees	Other	Total	Fees	Other	Total
	Non-executive directors:
	D D Barber			95		95	80		80
	P M Baum			95	60	155
	I Botha (from 23 February 2004)			82	25	107
	L Boyd			95	70	165	80	70	150
	E le R Bradley			95	135	230	80	135	215
	B E Davison (from 3 May 2004)			67		67
	M W King			95	50	145	80	50	130
	J B Magwaza			95	239+	334	40		40
	M Mia			95	80	175	80	80	160
	T H Nyasulu			95	25	120	80	50	130
	C M L Savage			215	571	786	200	562	762§
	R H J Stevens			95	90	185	80	90	170
	A M Thompson			95		95	80		80
	Directors retired/resigned						80	85	165
				1 314	1 345	2 659	960	1 122	2 082
+	Includes share option gain on the exercise of options awarded when he was an executive director.
§	Restated
	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 2004.


	Interest of directors of the company in share capital
	The aggregate holdings as at 31 December 2004 of those directors of the company holding issued ordinary shares of the company are detailed below. Holdings are beneficial except where indicated otherwise.
				2004		2003
				Direct	Indirect	Direct	Indirect
	Name			shares	shares	shares	shares
	Executive directors:
	B G Dunlop			1 440		1 440
	A Fourie			5 000		3 600
	G R Hibbert			21 562		21 562
	G P N Kruger			205		205
	M H Munro			500
	S J Saunders				761 632		760 632
	S J Saunders (non-beneficial)				487 376		487 376
	M Serfontein			1 000	8 000	500	8 000
	P H Staude			22 049		18 049
				51 756	1 257 008	45 356	1 256 008
	Non-executive directors:
	L Boyd			500		500§
	E le R Bradley			104 191		104 191
	E le R Bradley (non-beneficial)			20 934		20 934
	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
§	Restated.
	Interest of directors of the company in share options
	The interest of the directors in share options of the company are shown in the table below:
				Number	Options	Options	Number
				of shares	granted	exercised	of shares
		Option price	Expiring	at 31 Dec	during	during	at 31 Dec
	Name	Rand	ten years from	2003	the year	the year	2004

	Executive directors
	B G Dunlop	40,50	20 September 1994	14 000		14 000
		40,00	24 March 1995	6 000			6 000
		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			25 000
		31,90	14 April 2003	24 400			24 400
		47,00	21 April 2004		3 600		3 600
				176 400	3 600	14 000	166 000

	The interest of the directors in share options of the company are shown in the table below:
				Number	Options	Options	Number
				of shares	granted	exercised	of shares
		Option price	Expiring	at 31 Dec	during	during	at 31 Dec
	Name	Rand	ten years from	2003	the year	the year	2004
	Executive directors (continued):
	A Fourie	40,50	20 September 1994	4 000	4 000
		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			40 000
		47,00	21 April 2004		30 000		30 000
				122 600	30 000	4 000	148 600
	G R Hibbert	40,50	20 September 1994	4 000		4 000
		40,00	24 March 1995	4 000			4 000
		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
		47,00	21 April 2004		25 000		25 000
				119 000	25 000	4 000	140 000
	G P N Kruger	40,50	20 September 1994	1 800		1 800
		40,00	24 March 1995	8 800		4 800	4 000
		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			20 000
		47,00	21 April 2004		10 000		10 000
				149 600	10 000	6 600	153 000
	The interest of the directors in share options of the company are shown in the table below:
				Number	Options	Options	Number
				of shares	granted	exercised	of shares
		Option price	Expiring	at 31 Dec	during	during	at 31 Dec
	Name	Rand	ten years from	2003	the year	the year	2004
	Executive directors (continued):
	M H Munro	40,50	20 September 1994	8 400		8 400
		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
		34,50	1 October 2003	30 000			30 000
		47,00	21 April 2004		32 000		32 000
				101 300	32 000	8 400	124 900
	S J Saunders	40,50	20 September 1994	18 000		18 000
		40,00	24 March 1995	6 000			6 000
		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
		47,00	21 April 2004		18 000		18 000
				140 000	18 000	18 000	140 000
	M Serfontein	40,50	20 September 1994	24 000		24 000
		40,00	24 March 1995	6 000		6 000
		33,25	4 November 1998	8 000			8 000
		32,90	5 March 1999	28 000			28 000
		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			15 000
		49,60	13 May 2002	15 000			15 000
		31,90	14 April 2003	20 000			20 000
		47,00	21 April 2004		14 000		14 000
				136 000	14 000	30 000	120 000
	P H Staude	40,50	20 September 1994	4 000		4 000
		40,00	24 March 1995	4 000			4 000
		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			30 000
		49,60	13 May 2002	65 000			65 000
		31,90	14 April 2003	30 000			30 000
		47,00	21 April 2004		28 000		28 000

				222 000	28 000	4 000	246 000
	The interest of the directors in share options of the company are shown in the table below:
				Number	Options	Options	Number
				of shares	granted	exercised	of shares
		Option price	Expiring	at 31 Dec	during	during	at 31 Dec
	Name	Rand	ten years from	2003	the year	the year	2004
*	Non-executive directors:
	J B Magwaza	40,50	20 September 1994	36 000		36 000
		40,00	24 March 1995	4 800			4 800
		33,25	4 November 1998	7 000			7 000
		32,90	5 March 1999	30 000			30 000
		40,10	7 May 1999	10 000			10 000
		30,00	19 May 2000	5 000			5 000
		39,85	12 January 2001	4 000			4 000
		40,00	16 May 2001	20 000			20 000
		49,60	13 May 2002	10 000			10 000
				126 800		36 000	90 800
	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			1 433 700	160 600	125 000	1 469 300
*	The non-executive directors' share options were awarded when they were executive directors. 114 600 options relating to a director who retired during the year are excluded from the opening balance.

27.	GUARANTEES AND CONTINGENT LIABILITIES (Rmillion)	Group		Company
		2004	2003	2004	2003
	Guarantees in respect of obligations of the Group and third parties	21	20	15	14
	Contingent liabilities	13	23	5	5
		34	43	20	19

28.	LEASES (Rmillion)	Group		Company
		2004	2003	2004	2003
	Amounts payable under finance leases
	Minimum lease payments due:
	Not later than one year	2	3
	Later than one year and not later than five years	2	5
	Later than five years	1	1
		5	9
	Less: future finance charges	(1)	(2)
	Present value of lease obligations	4	7
	Payable:
	Not later than one year	1	2
	Later than one year and not later than five years	2	4
	Later than five years	1	1
		4	7
	Operating lease commitments, amounts due:
	Not later than one year	12	21	7	20
	Later than one year and not later than five years	45	38	31	26
		57	59	38	46
	In respect of:
	Property	42	36	24	23
	Plant and machinery	6	4	6	4
	Other	9	19	8	19
		57	59	38	46

29.	CAPITAL EXPENDITURE COMMITMENTS (Rmillion)	Group		Company
		2004	2003	2004	2003
	Contracted	52	46	39	21
	Approved but not contracted	86	85	49	46
		138	131	88	67
	Funds to meet this future expenditure will be provided from retained net cash flows and established facilities.
30.	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, in the main, with companies in the Anglo American plc group. These transactions occurred under terms that are no less favourable than those arranged with third parties.
		Group		Company
		2004	2003	2004	2003
	The outstanding balances at year end are as follows and are included in:
	Accounts receivable	10	9	10	9
	Accounts payable	1	1
	Borrowings	2	1	2	1

31.

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. Derivatives and investments, other than investments which are accounted for as subsidiaries, joint ventures and associates, are carried at fair value. All other financial instruments are carried at cost or amortised cost.

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 debtors 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. An appropriate level of provision is maintained.

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 appropriate 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 forward exchange contracts that constitute designated hedges of currency risk at year end are summarised as follows:

Group Company

2004 2003 2004 2003

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

Euro 7,68 6

US dollars 5,66 4

UK pounds 11,21 2

12

Exports

US dollars 6,37 273 28 7,05 43 8

Euro 7,68 22

UK pounds 11,05 8 9 10

303 28 9 43 8 10
Loan capital payments and interest

US dollars 7,49 173 (36) (43)

Net total 488 (8) (34) 43 8 10

The hedges in respect of imports and exports are expected to mature within approximately one year. The hedges in respect of the capital payments and interest on the loan will mature during 2005 and 2006.

The fair value is the estimated amount that the Group would pay or receive to terminate the forward exchange contracts at the balance sheet date.

The Group's forward exchange contracts that do not constitute designated hedges of currency risk at year end are summarised as follows:

Group Company

2004 2003 2004
2003

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 6,42 10 (1) 6,42 10 (1)

Euro 7,84 1 7,84 1

11 (1) 11 (1)

Exports

US dollars 6,20 73 5 6,42 16 3

Australian dollars 4,56 2 (1) 4,56 2 (1)

Euro 8,00 3

78 5 (1) 18 3 (1)

Net total 89 4 (1) 29 2 (1)

The Group has the following uncovered foreign receivables:

Group Company

Foreign Foreign

amount 2004 2003 amount 2004 2003

(million) (Rmillion) (Rmillion) (million) (Rmillion) (Rmillion)

US dollars 15 90 64 2 15 2

Mozambique meticais 56 398 17 16 56 398 17 16

Euro 1 8 22

Australian dollars 1 5 1 5

UK pounds 7 8

127 110 37 18

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 2005 and a significant portion of its requirements for the year ending 31 May 2006 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 fixed price sales contracts is hedged by entering into fixed price purchase contracts with suppliers and by futures and options contracts.

At the year end the commodity futures and options contracts were:
Futures - hedge accounted:				Group				Company
				2004	2003			2004	2003
		Tons	Contract	Fair	Fair	Tons	Contract	Fair	Fair
			Value	value	value		value	value	value
			(Rmillion)	(Rmillion)	(Rmillion)		(Rmillion)	(Rmillion)	(Rmillion)
	Raw sugar futures
	purchased	13 475	12	3	(1)	13 475	12	3	(1)
	Raw sugar futures
	sold	32 013	37	(9)	2	32 013	37	(9)	2
	Maize futures
	purchased	29 700	26	(1)		29 700	26	(1)
	Aluminium futures
	purchased	13	108
	Aluminium futures
	sold	13	119		(8)
				(7)	(7)			(7)	1
Futures - not hedge accounted:				Group				Company
				2004	2003			2004	2003

		Tons	Contract	Fair	Fair	Tons	Contract	Fair	Fair
			value	value	value		value	value	value
			(Rmillion)	(Rmillion)	(Rmillion)		(Rmillion)	(Rmillion)	(Rmillion)
	Maize futures
	purchased				33				33
Embedded derivatives:				Group				Company
				2004	2003			2004	2003
				Fair	Fair			Fair	Fair
				value	value			value	value
				(Rmillion)	(Rmillion)			(Rmillion)	(Rmillion)
	Sales orders not yet fulfilled			(5)
Interest rate risk
The Group is exposed to interest rate price 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 minimising 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 R696 million (2003 - R799 million).

32.	PRINCIPAL SUBSIDIARY COMPANIES AND JOINT VENTURES (Rmillion)
		Interest of Holding Company
		Shares		Indebtedness
		2004	2003	2004	2003
	African Products (Pty) Limited	15	15	(15)	(15)
*	Hulett Aluminium (Pty) Limited (50%)	7	7	582	345
	Hulett-Hydro Extrusions (Pty) Limited (35%)
	Moreland Estates (Pty) Limited			(113)	54
	Tongaat-Hulett Sugar Limited	451	422	94	34
	Tambankulu Estates Limited (Swaziland)
	Açucareira de Moçambique, SARL (Mozambique) (75%)
+	Triangle Sugar Corporation Limited (Zimbabwe)
	The Tongaat Group Limited	54	54	(24)	3
		527	498	524	421
*	Joint Venture
+	Not consolidated
	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.