ANNUAL REPORT 2006

NOTE 6: CASH AND CASH EQUIVALENTS
2006
$
Consolidated
2005
$
2006
$
Parent
2005
$
Cash at bank and on hand 1,875,144 45,225 1,491,406 10,070
Short-term deposits [(b) (i),(ii)] 14,407,093 2,500,168 12,137,681 132,529
Long-term deposits 10,000,000 - 10,000,000 -
26,282,237 2,545,393 23,629,087 142,599
Less cash reclassified to other assets [Note (b)] (2,269,687) (2,365,409) - -
24,012,550 179,984 23,629,087 142,599
A N N U A L R E P O R T 2 0 0 6
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate
cash requirements of the Group, and earn interest at the respective short-term deposit rates.
Long-term deposits are made for periods between 3 months and 1 year, earning interest at the respective long-term
rates. As they mature they are reinvested according to the cash requirements of the group into further short-term and
long-term deposits.
(a)
Reconciliation to Cash Flow Statement:
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand and at bank and
investments in money market instruments, net of outstanding bank overdrafts.
Cash and cash equivalents as shown in the cash flow statement are reconciled to the related items in the balance
sheet as follows:
Cash and cash equivalents 24,012,550 179,984 23,629,087 142,599
(b)
Cash balances not available for use
(i)
Included in this balance is an amount of $131,856 (2005: $118,500) which is used as security for
Department of Industry and Resources performance bonds amounting to $116,500 (2005: $106,500).
(c)
(ii) Previously included in consolidated short-term deposits was an amount of $2,269,687 ($2005 $2,365,409)
[ZAR12,047,500] which has been reclassified to other assets (See Note 8), as the funds secure a bank
guarantee held as consideration for the acquisition of an interest in the Smokey Hills Project, which must
be paid pending South African Government approval of the transfer of a new order right.
Acquisition of subsidiaries
During the previous year, the parent entity acquired 100% of the issued capital of Rivers Platinum Mining (Mauritius),
Smokey Hills Platinum Mining (Mauritius) and Stella Platinum Mining (Mauritius).
During the current year, the parent entity
subscribed for capital in these companies
amounting to: - - 110,000 -
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