Notes to the reviewed condensed group annual financial statements

1. CORPORATE BACKGROUND

Exxaro, a public company incorporated in South Africa, is a diversified resources group with interests in the coal (controlled and non-controlled), energy (controlled) and ferrous (controlled and non-controlled) markets. These reviewed condensed group financial statements as at and for the year ended 31 December 2023 (condensed financial statements) comprise the company and its subsidiaries (together referred to as the group) and the group’s interest in associates and joint ventures.

2. BASIS OF PREPARATION

2.1 Statement of compliance

The condensed financial statements have been prepared in accordance with and contain the information required by the JSE Listings Requirements for condensed financial statements and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require condensed financial statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS ® Accounting Standards) (as issued by the International Accounting Standards Board (IASB ® )), IAS 34 Interim Financial Reporting, Financial Pronouncements (as issued by the Financial Reporting Standards Council), and the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee).

The condensed financial statements have been prepared under the supervision of Mr PA Koppeschaar CA(SA), SAICA registration number: 00038621.

The condensed financial statements should be read in conjunction with the group annual financial statements as at and for the year ended 31 December 2022, which have been prepared in accordance with IFRS Accounting Standards. The condensed financial statements have been prepared on the historical cost basis, except for financial instruments, share-based payments and biological assets, which are measured at fair value.

The condensed financial statements of the Exxaro group were authorised for issue by the board of directors on 12 March 2024.

2.2 Judgements and estimates

Management made judgements and applied estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements and the key source of estimation uncertainty were similar to those applied to the group annual financial statements as at and for the year ended 31 December 2022.

3. ACCOUNTING POLICIES AND OTHER COMPLIANCE MATTERS

The accounting policies applied are in terms of IFRS Accounting Standards and are consistent with those of the previous financial year. A number of new or amended IFRS Accounting Standards became effective for the current year. The group did not have to make any significant changes to its accounting policies nor make retrospective adjustments as a result of adopting these standards.

3.1 Impact of new, amended or revised standards issued but not yet effective

New IFRS Accounting Standards, amendments to accounting standards and interpretations issued, that are relevant to the group, but not yet effective on 31 December 2023, have not been early adopted, except for the amendment to IAS 1 Presentation of Financial Statements relating to classification of liabilities as current or non-current as well as non-current liabilities with covenants. The early adoption of these amendments did not have any impact on the group. The group continuously evaluates the impact of these standards and amendments.

4. RECONCILIATION OF GROUP HEADLINE EARNINGS


	Gross Rm	Tax Rm	NCI Rm	Net Rm
For the year ended 31 December 2023 (Reviewed)
Profit attributable to owners of the parent				11 292
Adjusted for:	61	(15)	(11)	35
– IAS 16 Net losses on disposal of property, plant and equipment	57	(15)	(10)	32
– IAS 28 Share of equity-accounted investments’ separately identifiable remeasurements	4		(1)	3

Headline earnings				11 327
For the year ended 31 December 2022 (Audited)
Profit attributable to owners of the parent				13 826
Adjusted for:	1 285	(333)	(220)	732
– IFRS 10 Loss on disposal of subsidiary	1			1
– IAS 16 Net losses on disposal of property, plant and equipment	97	(27)	(17)	53
– IAS 28 Loss on dilution of investment in associate	2			2
– IAS 28 Share of equity-accounted investments’ separately identifiable remeasurements 1	1 132	(306)	(191)	635
– IAS 36 Impairment charges of non-current assets 2	53		(12)	41

Headline earnings				14 558
1 Includes Exxaro’s share of SIOC’s impairment charge recognised on mining assets, amounting to R626 million (net of tax and NCI). The impairment charge on mining assets was due to the production volumes being revised down in line with anticipated logistics performance. 2 On 31 December 2022, the investment in LightApp was impaired to nil.


	2023 Reviewed cents	2022 Audited cents
Headline earnings per share
– Basic	4 681	6 016
– Diluted	4 681	6 016
Refer note 5 for details regarding the number of shares.

5. DIVIDEND DISTRIBUTIONS

An interim cash dividend, number 41, for 2023 of 1 143 cents per share amounting to R2 761 million (to external shareholders) was declared on 15 August 2023 and paid on 2 October 2023.

A final cash dividend, number 42, for 2023 of 1 010 cents per share, was approved by the board of directors on 12 March 2024. The dividend is payable on 13 May 2024 to shareholders who will be on the register on 10 May 2024. This final dividend, amounting to approximately R2 439 million (to external shareholders), has not been recognised as a liability in these condensed financial statements. It will be recognised in shareholders’ equity in the first half of the year ending 31 December 2024.

The final dividend declared from income reserves, will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt from or do not qualify for a reduced rate of dividend withholding tax. The net local dividend payable to shareholders, subject to dividend withholding tax at a rate of 20% amounts to 808.00000 cents per share.

Given the net cash position at 31 December 2023 of R14 834 million (excluding energy’s net debt), the board of directors has resolved to pay a special dividend of 572 cents per share. The special dividend is subject to SARB approval. A further announcement will be released once SARB approval has been obtained. The special dividend, amounting to approximately R1 382 million (to external shareholders), has not been recognised as a liability in these condensed financial statements. It will be recognised in shareholder’s equity in the first half of the year ending 31 December 2024.

The special dividend declared from income reserves, will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt from or do not qualify for a reduced rate of dividend withholding tax. The net local dividend payable to shareholders, subject to dividend withholding tax at a rate of 20% amounts to 457.60000 cents per share.

The number of ordinary shares in issue at the date of this declaration is 349 305 092. Exxaro company’s tax reference number is 9218/098/14/4.


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Dividends paid	5 505	6 686
Final dividend	2 744	2 838
Interim dividend	2 761	3 848


	cents	cents
Dividend paid per share	2 279	2 768
Final dividend	1 136	1 175
Interim dividend	1 143	1 593

	At 31 December
	2023 Reviewed	2022 Audited
Issued share capital (number of shares) 1	349 305 092	349 305 092
Ordinary shares (millions)
– Weighted average number of shares	242	242
– Diluted weighted average number of shares	242	242

1 Includes treasury shares of 107 770 244 (2022: 107 770 244).

6. SEGMENTAL INFORMATION

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, who is responsible for allocating resources and assessing performance of the reportable operating segments. The chief operating decision maker has been defined as the executive committees of the group. Segments reported are based on the group’s different commodities and operations.

In line with reporting trends, emphasis is placed on controllable costs. Indirect corporate costs are reported on a gross level in the other reportable segment. The performance of the operating segments is assessed based on EBITDA, which is considered to be a more appropriate performance measure of profitability for the group’s business (refer note 26.1).

The segments, as described below, offer different goods and services, and are managed separately based on commodity, location and support function grouping. The group executive committees review internal management reports on these operating segments at least quarterly.

Coal

The coal operations produce thermal coal, metallurgical coal and SSCC and are made up of the following reportable segments:

Commercial Waterberg: Comprising mainly of the Grootegeluk operation.

Commercial Mpumalanga: Comprising of the Belfast and Leeuwpan operations, as well as the 50% (2022: 50%) joint venture in Mafube with Thungela.

Tied: Comprising of the Matla mine supplying its entire coal supply to Eskom.

Other: Comprising of the other coal affiliated operations, including mines in closure and a 10.26% (2022: 10.26%) equity interest in RBCT.

The export revenue and related export cost items are allocated between the coal reportable segments and disclosed based on the origin of the initial coal production.

Energy

The energy operations generate electricity from renewable energy technology. The energy reportable segment comprises mainly of the Cennergi controlled operation.

Ferrous

The ferrous operations are made up of the following reportable segments:

Alloys: Comprising of the FerroAlloys operation which manufactures ferrosilicon.

Other: Comprising mainly of the 20.62% (2022: 20.62%) equity interest in SIOC.

Other

The other operations of the group are made up of the following reportable segments:

Base metals: Comprising of the 26% (2022: 26%) equity interest in Black Mountain.

Other: Comprising mainly of the corporate office (rendering corporate management services), the Ferroland agricultural operation, the 25.85% (2022: 25.85%) equity interest in Insect Technology and the 28.01% (2022: 28.01%) equity interest in LightApp.

The following tables present a summary of the group’s segmental information:


	Coal
	Commercial
For the year ended 31 December 2023 (Reviewed)	Water- berg Rm	Mpuma- langa Rm	Tied Rm	Other Rm	Energy Rm
External revenue (note 7)	22 496	8 666	5 783		1 345
Segmental net operating profit/(loss)	10 173	399	173	(681)	630
Add back:
Depreciation and amortisation (note 8)	1 512	595	6	16	393
Net losses on disposal of property, plant and equipment (note 8)	17	3
EBITDA 1 (note 26.1)	11 702	997	179	(665)	1 023
Other key items:
Share of income/(loss) of equity-accounted investments (note 11)		508		(10)
External finance income (note 10)	26	8		61	40
External finance costs (note 10)	(66)	(97)		(79)	(515)
Income tax expense	(2 603)	(105)	(27)	(111)	(71)
Raw materials and consumables (note 8) 1	(2 002)	(2 755)	(497)	(2)	(1)
Staff costs (note 8) 1	(2 740)	(395)	(1 737)	(253)	(68)
Royalties (note 8) 1; 2	(1 188)	(108)	(13)	167
Contract mining (note 8) 1	(60)	(1 434)
Repairs and maintenance (note 8) 1	(1 677)	(282)	(975)	(1)	(9)
Railage and transport (note 8) 1	(1 744)	(1 424)	(6)
Movement in provisions (note 8) 1	151	(80)	53	(195)
Cash generated by/(utilised in) operations (note 9)	11 758	89	148	(203)	1 031
Capital spend on property, plant and equipment (note 12)	(2 217)	(201)		(15)	(244)
At 31 December 2023 (Reviewed)
Segmental assets and liabilities
Deferred tax 3					14
Equity-accounted investments (note 13)		1 922		2 014
External assets	31 930	6 084	1 506	2 774	8 834
Total assets	31 930	8 006	1 506	4 788	8 848
External liabilities	2 590	2 451	1 600	779	5 121
Deferred tax 3	7 335	856	(60)	2	903
Total liabilities	9 925	3 307	1 540	781	6 024
1 Additional key items included in the measure of segment profit or loss have been presented for each reportable segment. 2 Calculated per legal entity. 3 Offset per legal entity and tax authority.



	Ferrous		Other
For the year ended 31 December 2023 (Reviewed)	Alloys Rm	Other ferrous Rm	Base metals Rm	Other Rm	Total Rm
External revenue (note 7)	398			10	38 698
Segmental net operating profit/(loss)	82			(149)	10 627
Add back:
Depreciation and amortisation (note 8)	1			192	2 715
Net losses on disposal of property, plant and equipment (note 8)				37	57
EBITDA 1 (note 26.1)	83			80	13 399
Other key items:
Share of income/(loss) of equity-accounted investments (note 11)		6 157	332		6 987
External finance income (note 10)				1 435	1 570
External finance costs (note 10)	(1)			(494)	(1 252)
Income tax expense	(18)			(296)	(3 231)
Raw materials and consumables (note 8) 1	(58)			(17)	(5 332)
Staff costs (note 8) 1	(69)			(829)	(6 091)
Royalties (note 8) 1;2					(1 142)
Contract mining (note 8) 1					(1 494)
Repairs and maintenance (note 8) 1	(6)			(19)	(2 969)
Railage and transport (note 8) 1	(3)			(1)	(3 178)
Movement in provisions (note 8) 1				1	(70)
Cash generated by/(utilised in) operations (note 9)	234			250	13 307
Capital spend on property, plant and equipment (note 12)	(1)			(21)	(2 699)
At 31 December 2023 (Reviewed)
Segmental assets and liabilities
Deferred tax 3	9			183	206
Equity-accounted investments (note 13)		14 079	2 263		20 278
External assets	300	26		20 916	72 370
Total assets	309	14 105	2 263	21 099	92 854
External liabilities	40	3		4 860	17 444
Deferred tax 3				(33)	9 003
Total liabilities	40	3		4 827	26 447
1 Additional key items included in the measure of segment profit or loss have been presented for each reportable segment. 2 Calculated per legal entity. 3 Offset per legal entity and tax authority.


	Coal
	Commercial
For the year ended 31 December 2022 (Audited)	Water- berg Rm	Mpuma- langa Rm	Tied Rm	Other Rm	Energy Rm
External revenue (note 7)	23 613	15 797	5 561		1 159
Segmental net operating profit/(loss)	11 731	5 323	151	(389)	437
Add back:
Depreciation and amortisation (note 8)	1 490	609	14	6	391
Net losses on disposal of property, plant and equipment (note 8)	9	72		7
Loss on disposal of subsidiary
Loss on dilution of investment in associate
EBITDA 1 (note 26.1)	13 230	6 004	165	(376)	828
Other key items:
Share of income/(loss) of equity-accounted investments (note 11)		1 902		(10)
External finance income (note 10)	24	4		5	20
External finance costs (note 10)	(58)	(91)		(62)	(503)
Income tax (expense)/benefit	(3 178)	(1 307)	(61)	473	60
Raw materials and consumables (note 8) 1	(1 880)	(5 123)	(507)
Staff costs (note 8) 1	(2 573)	(371)	(1 577)	(258)	(54)
Royalties (note 8) 1; 2	(1 539)	(324)	(25)	67
Contract mining (note 8) 1	(8)	(803)	(1)
Repairs and maintenance (note 8) 1	(1 470)	(292)	(999)		(7)
Railage and transport (note 8) 1	(1 386)	(1 586)	(8)	(35)
Movement in provisions (note 8) 1	48	(221)	(188)	(106)
Impairment charges of equity-accounted investments
Cash generated by/(utilised in) operations (note 9)	12 874	6 539	267	(1 459)	837
Capital spend on property, plant and equipment (note 12)	(1 348)	(252)		(5)	(20)
At 31 December 2022 (Audited)
Segmental assets and liabilities
Deferred tax 3					1
Equity-accounted investments (note 13)		2 999		2 024
External assets	30 897	6 068	1 213	3 258	8 614
Total assets	30 897	9 067	1 213	5 282	8 615
External liabilities	1 857	2 577	1 301	1 143	4 804
Deferred tax 3	6 997	978	(56)	(108)	884
Total liabilities	8 854	3 555	1 245	1 035	5 688
1 Additional key items included in the measure of segment profit or loss have been presented for each reportable segment. 2 Calculated per legal entity. 3 Offset per legal entity and tax authority.



	Ferrous		Other
For the year ended 31 December 2022 (Audited)	Alloys Rm	Other ferrous Rm	Base metals Rm	Other Rm	Total Rm
External revenue (note 7)	224			15	46 369
Segmental net operating profit/(loss)	49	(1)		(1 081)	16 220
Add back:
Depreciation and amortisation (note 8)	7			164	2 681
Net losses on disposal of property, plant and equipment (note 8)				9	97
Loss on disposal of subsidiary				1	1
Loss on dilution of investment in associate				2	2
EBITDA 1 (note 26.1)	56	(1)		(905)	19 001
Other key items:
Share of income/(loss) of equity-accounted investments (note 11)		4 077	578	(70)	6 477
External finance income (note 10)				641	694
External finance costs (note 10)	(1)			(337)	(1 052)
Income tax (expense)/benefit	(5)			(269)	(4 287)
Raw materials and consumables (note 8) 1	(94)			(16)	(7 620)
Staff costs (note 8) 1	(58)			(971)	(5 862)
Royalties (note 8) 1; 2					(1 821)
Contract mining (note 8) 1					(812)
Repairs and maintenance (note 8) 1	(7)			(10)	(2 785)
Railage and transport (note 8) 1	(2)			(2)	(3 019)
Movement in provisions (note 8) 1				(7)	(474)
Impairment charges of equity-accounted investments				(53)	(53)
Cash generated by/(utilised in) operations (note 9)	(22)	(1)		(172)	18 863
Capital spend on property, plant and equipment (note 12)	(1)			(26)	(1 652)
At 31 December 2022 (Audited)
Segmental assets and liabilities
Deferred tax 3	11	1		241	254
Equity-accounted investments (note 13)		11 104	1 933		18 060
External assets	421	25		16 335	66 831
Total assets	432	11 130	1 933	16 576	85 145
External liabilities	26	1		5 389	17 098
Deferred tax 3				(27)	8 668
Total liabilities	26	1		5 362	25 766
1 Additional key items included in the measure of segment profit or loss have been presented for each reportable segment. 2 Calculated per legal entity. 3 Offset per legal entity and tax authority.

7. REVENUE

Revenue is derived from contracts with customers. Revenue has been disaggregated based on timing of revenue recognition, major type of goods and services, major geographic area and major customer industries.


	Coal					Ferrous	Other
	Commercial
For the year ended 31 December 2023 (Reviewed)	Water- berg Rm	Mpuma- langa Rm	Tied Rm	Other Rm	Energy Rm	Alloys Rm	Other Rm	Total Rm
Segmental revenue reconciliation
Segmental revenue 1	22 496	8 666	5 783		1 345	398	10	38 698
Export sales allocated to selling entity 2	(4 538)	(6 539)		11 077
Total revenue	17 958	2 127	5 783	11 077	1 345	398	10	38 698
By timing and major type of goods and services
Revenue recognised at a point in time	17 958	2 127	4 729	11 077		392	9	36 292
Coal	17 958	2 127	4 729	11 077				35 891
Ferrosilicon						392		392
Biological goods							9	9
Revenue recognised over time			1 054		1 345	6	1	2 406
Renewable energy					1 345			1 345
Stock yard management services			159					159
Project engineering services			895					895
Transportation services						2		2
Other services						4	1	5

Total revenue	17 958	2 127	5 783	11 077	1 345	398	10	38 698
By major geographic area of customer 3
Domestic	17 958	2 127	5 783		1 345	398	8	27 619
Export				11 077			2	11 079
Europe 4				5 522			1	5 523
Asia 5				4 600			1	4 601
Other				955				955

Total revenue	17 958	2 127	5 783	11 077	1 345	398	10	38 698
By major customer industries
Public utilities	14 963		5 783	511	1 345			22 602
Merchants	370	1 230		9 826		2		11 428
Steel	1 462	152						1 614
Mining	250	23				351		624
Manufacturing	357					45		402
Food and beverage	233						2	235
Cement	262	70		314				646
Chemicals		646						646
Other	61	6		426			8	501
Total revenue	17 958	2 127	5 783	11 077	1 345	398	10	38 698
1 Coal segmental revenue is based on the origin of coal production. 2 Relates to revenue sold by export distribution entity. 3 Determined based on the customer supplied by Exxaro. 4 Relates mainly to Switzerland and Germany. 5 Relates mainly to Singapore and Japan.


	Coal					Ferrous	Other
	Commercial
For the year ended 31 December 2022 (Audited)	Water– berg Rm	Mpuma– langa Rm	Tied Rm	Other Rm	Energy Rm	Alloys Rm	Other Rm	Total Rm
Segmental revenue reconciliation
Segmental revenue 1	23 613	15 797	5 561		1 159	224	15	46 369
Export sales allocated to selling entity 2	(7 621)	(13 769)		21 390
Total revenue	15 992	2 028	5 561	21 390	1 159	224	15	46 369
By timing and major type of goods and services
Revenue recognised at a point in time	15 992	2 028	4 311	21 390		220	13	43 954
Coal	15 992	2 028	4 311	21 390				43 721
Ferrosilicon						220		220
Biological goods							13	13
Revenue recognised over time			1 250		1 159	4	2	2 415
Renewable energy					1 159			1 159
Stock yard management services			125					125
Project engineering services			1 125					1 125
Transportation services						2		2
Other services						2	2	4

Total revenue	15 992	2 028	5 561	21 390	1 159	224	15	46 369
By major geographic area of customer 3
Domestic	15 992	2 028	5 561		1 159	224	14	24 978
Export				21 390			1	21 391
Europe 4				16 984				16 984
Asia 5				3 899			1	3 900
Other				507				507

Total revenue	15 992	2 028	5 561	21 390	1 159	224	15	46 369
By major customer industries
Public utilities	13 287		5 561	940	1 159			20 947
Merchants	315	1 363		19 840				21 518
Steel	1 317	125						1 442
Mining	242	44				180		466
Manufacturing	407	6		213		44		670
Food and beverage	145						1	146
Cement	223			158				381
Chemicals		481						481
Other	56	9		239			14	318
Total revenue	15 992	2 028	5 561	21 390	1 159	224	15	46 369
1 Coal segmental revenue is based on the origin of coal production. 2 Relates to revenue sold by export distribution entity. 3 Determined based on the customer supplied by Exxaro. 4 Relates mainly to Switzerland and UK. 5 Relates mainly to Singapore and Japan.

8. SIGNIFICANT ITEMS INCLUDED IN OPERATING EXPENSES


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Raw materials and consumables	(5 332)	(7 620)
Staff costs	(6 091)	(5 862)
Royalties	(1 142)	(1 821)
Contract mining	(1 494)	(812)
Repairs and maintenance	(2 969)	(2 785)
Railage and transport	(3 178)	(3 019)
Movement in provisions (note 18)	(70)	(474)
Depreciation and amortisation	(2 715)	(2 681)
- Depreciation of property, plant and equipment	(2 483)	(2 457)
- Depreciation of right-of-use assets	(57)	(58)
- Amortisation of intangible assets	(175)	(166)
Net losses on disposal of property, plant and equipment	(57)	(97)
Net realised and unrealised currency exchange differences	124	777
Loss on dilution of investment in associate		(2)
Legal and professional fees	(487)	(387)
ECLs on financial assets at amortised cost	(21)	(79)

9. CASH GENERATED BY OPERATIONS


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Profit before tax	17 934	22 292
Adjusted for:
Finance income	(1 570)	(694)
Finance costs	1 252	1 052
Dividend income from financial assets	(2)	(6)
Share of income of equity-accounted investments	(6 987)	(6 477)
Impairment charges of equity-accounted investments		53
Net operating profit	10 627	16 220
Non-cash movements:
Depreciation and amortisation	2 715	2 681
ECLs on financial assets at amortised cost	21	79
Write-off of trade and other receivables and ESD loans	6	4
Write-off of other current assets	32
Movement in provisions	70	474
Movement in retirement employee obligation	11	9
Net currency exchange differences	(46)	32
Fair value adjustments on financial instruments	(284)	(51)
Gain on termination of lease		(3)
Loss on termination of right-of-use asset		1
Net losses on disposal of property, plant and equipment	57	97
Loss on disposal of subsidiary		1
Loss on dilution of investment in associate		2
Indemnification asset movement	5	(5)
Share-based payment expense	212	207
Hedge ineffectiveness on cash flow hedges	18	13
Translation of net investment in foreign operations		(8)
Translation of foreign currency items	(85)	(351)
Amortisation of transaction costs prepaid	4	4
Non-cash recoveries	23	(194)
Non-cash deposit facilities	(373)
Non-cash management fees on deposit facilities	53
Other non-cash movements	8	5
Cash generated by operations before working capital movements	13 074	19 217
Working capital movements
(Increase)/decrease in inventories	(212)	1
Decrease/(increase) in trade and other receivables	449	(1 312)
Increase in trade and other payables	68	999
Utilisation of provisions	(72)	(42)
Cash generated by operations	13 307	18 863

10. NET FINANCING INCOME/(COSTS)


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Finance income	1 570	694
Interest income	1 573	692
Reimbursement of interest income on environmental rehabilitation funds	(9)	(6)
Finance lease interest income	6	7
Commitment fee income		1
Finance costs	(1 252)	(1 052)
Interest expense	(1 020)	(783)
Net fair value gain/(loss) on interest rate swaps designated as cash flow hedges recycled from OCI:	20	(97)
– Realised fair value loss	(44)	(163)
– Unrealised fair value gain	64	66
Unwinding of discount rate on rehabilitation costs	(244)	(228)
Recovery of unwinding of discount rate on rehabilitation costs	28	30
Interest expense on lease liabilities	(48)	(50)
Amortisation of transaction costs	(5)	(6)
Borrowing costs capitalised 1	17	82

Total net financing income/(costs)	318	(358)
1 Borrowing costs capitalisation rate (%)	9.93	6.09

11. SHARE OF INCOME OF EQUITY-ACCOUNTED INVESTMENTS


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Associates	6 479	4 575
SIOC	6 157	4 077
RBCT	(10)	(10)
Black Mountain	332	578
LightApp		(70)
Joint ventures	508	1 902
Mafube	508	1 902

Share of income of equity-accounted investments	6 987	6 477

12. CAPITAL SPEND AND CAPITAL COMMITMENTS


	For the year ended 31 December
	2023 Reviewed Rm	2022 Audited Rm
Capital spend
To maintain operations	2 455	1 401
To expand operations	244	251
Total capital spend on property, plant and equipment	2 699	1 652

	At 31 December
	2023 Reviewed Rm	2022 Audited Rm
Capital commitments
Contracted	4 115	3 749
- Contracted for the group (owner-controlled)	2 115	1 614
- Share of capital commitments of associates 1	1 973	2 040
- Share of capital commitments of joint ventures 2	27	95
Authorised, but not contracted (owner-controlled)	2 287	2 322
1 31 December 2022 has been restated to include an amount of R1 173 million relating to Black Mountain. 2 The share of capital commitments of equity-accounted investments line item has been represented to disclose the amounts on a disaggregated basis between associates and joint ventures. The share of capital commitments relating to Mafube was restated as it was not previously included in the aggregate amounts disclosed.

13. EQUITY-ACCOUNTED INVESTMENTS


	At 31 December
	2023 Reviewed Rm	2022 Audited Rm
Associates	18 356	15 061
SIOC	14 079	11 104
RBCT	2 014	2 024
Black Mountain	2 263	1 933
Joint ventures	1 922	2 999
Mafube	1 922	2 999

Total net carrying value of equity-accounted investments	20 278	18 060

14. OTHER ASSETS


	At 31 December
	2023 Reviewed Rm	2022 Audited Rm
Non-current	729	770
Reimbursements 1	588	605
Biological assets	33	38
Lease receivables	29	38
Other	79	89
Current	482	572
VAT	37	31
Diesel rebates	58	100
Royalties	69	95
Prepayments 2	254	283
Lease receivables	9	8
Other	55	55

Total other assets	1 211	1 342
1 Amounts recoverable from Eskom in respect of the rehabilitation, environmental expenditure and retirement employee obligations of the Matla operation at the end of LoM. 2 2023: Includes an amount of R123 million which relates to advance payments for assets under construction.

15. INTEREST-BEARING BORROWINGS


	At 31 December
	2023 Reviewed Rm	2022 Audited Rm
Non-current 1	7 480	8 378
Loan facility	2 945	3 391
Project financing 2	4 535	4 344
Bonds 3		643
Current 1	1 443	715
Loan facility	507	502
Project financing 2	290	210
Bonds 3	646	3

Total interest-bearing borrowings	8 923	9 093
Summary of interest-bearing borrowings by period of redemption:
Less than six months	1 074	377
Six to 12 months	369	338
Between one and two years	794	1 361
Between two and three years	2 948	795
Between three and four years	556	2 947
Between four and five years	682	554
Over five years	2 500	2 721
Total interest-bearing borrowings	8 923	9 093
1 Reduced by the amortisation of transaction costs:
– Non-current	(17)	(9)
– Current	(5)	(5)
2 Interest-bearing borrowings relating to the energy operations.
3 The R643 million senior unsecured floating rate note will mature in June 2024.

Refer note 17 for the amounts repaid and raised in relation to interest-bearing borrowings.

There were no defaults or breaches in terms of interest-bearing borrowings during the reporting periods.

Below is a summary of the salient terms and conditions of the facilities at 31 December 2023:

Interest rate

Instrument

Security

Interest payment

basis

Debt assumed

date

Maturity

date

Instrument

Carrying

value

(Rm)

Undrawn

portion

(Rm)

Base rate

Margin

Effective rate

for transaction

costs

Loan facility

Exxaro

Bullet term loan

Unsecured

Floating

26 Apr 2021

26 Apr 2026

Exxaro

2 539

nil

3-month JIBAR

240 basis points (2.40%)

0.11%

Amortised term loan

Unsecured

Floating

26 Apr 2021

26 Apr 2026

913

nil

3-month JIBAR

230 basis points (2.30%)

0.10%

Revolving credit facility

Unsecured

Floating

26 Apr 2021

26 Apr 2026

nil

3 250

1-month JIBAR

265 basis points (2.65%)

N/A

Project financing

Amakhala SPV

Term loan and reserve facility

Secured

Floating

1 Apr 2020

30 Jun 2031

Amakhala SPV

2 504

273

3-month JIBAR

371 to 683 basis points
(3.71% to 6.83%)

N/A

Term loan

Secured

Fixed

1 Apr 2020

30 Jun 2031

135

nil

9.46% up to 30 June 2026, thereafter 3-month JIBAR

360 to 670 basis points
(3.60% to 6.70%)

N/A

Tsitsikamma SPV

Term loan and reserve facility

Secured

Floating

1 Apr 2020

31 Dec 2030

Tsitsikamma SPV

1 709

155

3-month JIBAR

277 basis points (2.77%)

N/A

LSP SPV

Term loan and reserve facility

Secured

Floating

11 Jul 2023

31 Dec 2042

LSP SPV

463

803

3-month JIBAR

250 to 360 basis points
(2.50% to 3.60%)

0.01% were

applicable

Revolving credit facility

Secured

Floating

11 Jul 2023

31 Dec 2024

3-month JIBAR

180 basis points (1.80%)

N/A

DMTN Programme (bonds)

Exxaro

R643 million senior unsecured floating rate note

Unsecured

Floating

13 Jun 2019

13 Jun 2024

Exxaro

646

nil

3-month JIBAR

189 basis points (1.89%)

N/A

16. LEASE LIABILITIES


	At 31 December
	2023 Reviewed Rm	2022 Audited Rm
Non-current	400	438
Current	51	40
Total lease liabilities	451	478
Summary of lease liabilities by period of redemption:
Less than six months	24	19
Six to 12 months	27	21
Between one and two years	62	51
Between two and three years	76	62
Between three and four years	81	66
Between four and five years	98	81
Over five years	83	178
Total lease liabilities	451	478
Analysis of movement in lease liabilities
At beginning of the year	478	504
New leases	2
Lease terminations		(3)
Lease remeasurement adjustments	12	10
Interest not paid (accrued)		1
Capital repayments	(41)	(34)
– Lease payments	(89)	(83)
– Interest charges	48	49

At end of the year	451	478
The lease liabilities relate to the right-of-use assets.
Interest is based on incremental borrowing rates ranging as follows: