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GROUP – NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
16. OPERATING PROFIT
Rand million 2011 2010
Operating profit includes the following amounts, some of which are also included in the analysis of
operating expenses disclosed in note 15:
Staff costs
Employee expenses 2,408 2,078
Share-based payments expenses 369 206
Directors’ emoluments (refer to remuneration report on page 24) 18 15
Executive directors
– Emoluments received as directors of the company (excluding fair value of incentive awards) 10 8
– Bonuses and cash incentives 4 4
Non-executive directors – emoluments received as directors of the company 4 3
Prescribed officers remuneration (excluding executive directors – refer to remuneration report on page 24) 28 28
Depreciation of property, plant and equipment (refer to note 1) 998 765
Operating lease rental expenses
Property 67 45
Equipment 56 34
Borrowings facility fee 6 12
Auditors' remuneration
Audit fees 8 6
Other services 1 1
Provision for doubtful other receivables – 5
Impairment of trade receivables – 1
Research and development cost 1 3
Reconditioned spares usage 4 2
Net loss on disposal of investment – 2
Net loss on disposal or scrapping of property, plant and equipment 10 5
Operating sublease rentals received
Property (8) (6)
Other – (2)
17. FINANCE GAINS/(LOSSES)
Rand million 2011 2010
Finance (losses)/gains recognised in operating profit
Net (losses)/gains on derivative financial instruments
Realised (473) 626
Unrealised (14) 10
Net foreign currency gains/(losses)
Realised 1,000 (279)
Unrealised 74 (71)
587 286
18. FINANCE INCOME/(COSTS)
Rand million 2011 2010
Interest expense (337) (432)
Notional interest on non-current provisions (refer to note 10) (59) (42)
Capitalisation of borrowing costs (refer to note 28) 247 296
Finance costs (149) (178)
Interest received 241 149
Net finance income/(costs) 92 (29)
52 Kumba Iron Ore Limited