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15. OPERATING EXPENSES
Rand million 2011 2010
Operating expenditure by function
Production costs 9,477 7,317
Movement in work-in-progress inventories (396) (288)
Cost of goods produced 9,081 7,029
Movement in finished product inventories 247 (171)
Finance gains (refer to note 17) (587) (286)
Other 20 (2)
Cost of goods sold 8,761 6,570
Mineral royalty 1,762 1,410
Selling and distribution costs 3,698 3,041
Distribution costs 3,393 2,760
Selling costs 305 281
Cost of services rendered – shipping 2,374 2,560
Sublease rentals received (8) (8)
Operating expenses 16,587 13,573
Cost of goods sold comprises:
Staff costs 2,777 2,284
Salaries and wages 2,159 1,883
Equity-settled share-based payments 352 195
Cash-settled share-based payments 17 11
Pension and medical costs 249 195
Raw materials and consumables 2,233 1,509
Depreciation of property, plant and equipment 998 765
Mineral properties 20 17
Residential buildings 7 4
Buildings and infrastructure 35 18
Machinery, plant and equipment 934 722
Site preparation and development 2 4
Repairs and maintenance 968 701
Legal 103 79
Professional fees 330 194
Outside services 1,887 1,288
Technical services and project studies 326 99
General expenses 599 788
Finance gains (refer to note 17) (587) (286)
Energy costs 247 189
Own work capitalised (971) (581)
Movement in inventories (149) (459)
Cost of goods sold 8,761 6,570
Audited annual financial statements
Annual Financial Statements 2011
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