Notes to the reviewed condensed group 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 2024 (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 containing the information required by, the framework concepts and the measurement and recognition requirements of IFRS® Accounting Standards and the Financial Pronouncements (as issued by the Financial Reporting Standards Council) and the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee), the JSE Listings Requirements, IAS 34 Interim Financial Reporting and the South African Companies Act. 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 and company annual financial statements as at and for the year ended 31 December 2023, which have been prepared in accordance with IFRS Accounting Standards. The condensed financial statements have been prepared on the historical cost basis, except for the revaluation to fair value of financial instruments, share-based payments and biological assets. The condensed financial statements of the Exxaro group were authorised for issue by the board of directors on 11 March 2025. |
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| 2.2 | Judgements and estimates |
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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 sources of estimation uncertainty were similar to those applied to the group and company annual financial statements as at and for the year ended 31 December 2023. |
3.Accounting policies
|
The accounting policies applied are in terms of IFRS Accounting Standards and are consistent with those of the group and company annual financial statements for the year ended 31 December 2023. 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. |
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| 3.1 | Impact of new, amended or revised standards issued but not yet effective |
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New IFRS Accounting Standards, amendments to accounting standards and interpretations issued, that are relevant to the group, but not yet effective on 31 December 2024, have not been early adopted. 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 2024 (Reviewed) | |||||
| Profit attributable to owners of the parent | 7 724 | ||||
| Adjusted for: | (756) | 203 | 127 | (426) | |
| – IAS 16 Net losses on disposal of property, plant and equipment | 27 | (7) | (5) | 15 | |
| – IAS 38 Losses on disposal of intangible assets | 16 | (4) | (3) | 9 | |
| – IAS 28 Share of equity-accounted investments' separately identifiable remeasurements1 | (799) | 214 | 135 | (450) | |
| Headline earnings | 7 298 | ||||
| For the year ended 31 December 2023 (Audited) | |||||
| 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 |
| 1 | Includes Exxaro's share of SIOC's impairment reversal on mining assets, amounting to R458 million (net of tax and NCI). The impairment reversal was due to a life of mine extension based on revisions to the forecast production volume profile. |
|
For the year ended 31 December |
2024 Reviewed cents |
2023 Audited cents |
| Headline earnings per share | ||
| Basic1 | 3 016 | 4 681 |
| Diluted2 | 3 016 | 4 681 |
| 1 | Determined using WANOS of 242 million (2023: 242 million). |
| 2 | Determined using diluted WANOS of 242 million (2023: 242 million). |
5.Dividend distributions
A final cash dividend, number 44, for 2024 of 866 cents per share, was approved by the board of directors on 11 March 2025. The dividend is payable on 12 May 2025 to shareholders who will be on the register on 9 May 2025. This final dividend, amounting to approximately R2 092 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 2025.
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 692.80000 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 |
2024 Reviewed Rm |
2023 Audited Rm |
| Dividends paid1 | 5 744 | 5 505 |
|---|---|---|
| Final dividend2 | 2 439 | 2 744 |
| Special dividend2 | 1 382 | |
| Interim dividend3 | 1 923 | 2 761 |
|
cents |
cents |
|
| Dividend paid per share | 2 378 | 2 279 |
| Final dividend2 | 1 010 | 1 136 |
| Special dividend2 | 572 | |
| Interim dividend3 | 796 | 1 143 |
| 1 | Paid to external shareholders. |
| 2 | 2024: Declared on 12 March 2024 and paid on 13 May 2024. |
| 3 | 2024: Declared on 13 August 2024 and paid on 7 October 2024. |
|
At 31 December |
2024 Reviewed |
2023 Audited |
| Issued share capital (number of shares)1 | 349 305 092 | 349 305 092 |
|---|---|---|
| Weighted average number of ordinary shares | 241 534 848 | 241 534 848 |
| Diluted weighted average number of ordinary shares | 241 534 848 | 241 534 848 |
| 1 | Includes treasury shares of 107 770 244 (2023: 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 an appropriate performance measure of profitability for the group's business.
Management has presented the performance measure EBITDA because it monitors this performance measure at a consolidated level and it believes that this measure is relevant to an understanding of the group's financial performance.
EBITDA is defined as net operating profit before interest, tax, depreciation, amortisation, impairment charges or impairment reversals and net losses or gains on the disposal of assets and investments (including translation differences recycled to profit or loss).
EBITDA is not a defined performance measure in IFRS Accounting Standards. The group's definition of EBITDA may not be comparable with similarly titled performance measures and disclosures by other entities.
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% (2023: 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% (2023: 10.26%) equity interest in RBCT.
Revenue and related 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 operations and LSP which is in the construction phase.
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% (2023: 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% (2023: 26%) equity interest in Black Mountain.
Other: Comprising mainly of the corporate office (rendering corporate management services) and the Ferroland agricultural operation.
The following tables present a summary of the group's segmental information:
| Coal | |||||
| Commercial | |||||
| Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
|
| For the year ended 31 December 2024 (Reviewed) | |||||
| External revenue (note 7) | 22 563 | 9 893 | 6 659 | 1 411 | |
| Segmental net operating profit/(loss) | 8 430 | (368) | 175 | (315) | 637 |
| Add back: | |||||
| Depreciation and amortisation (note 8) | 1 669 | 604 | 14 | 394 | |
| Net losses on disposal of property, plant and equipment (note 8) | 17 | 10 | |||
| Losses on disposal of intangible assets (note 8) | |||||
| EBITDA (note 26.1) | 10 116 | 246 | 175 | (301) | 1 031 |
| Other key items: | |||||
| Raw materials and consumables (note 8) | (2 162) | (2 868) | (574) | (2) | (1) |
| Staff costs (note 8) | (2 897) | (426) | (2 172) | (414) | (76) |
| Royalties (note 8)1 | (1 096) | (85) | (33) | 137 | |
| Contract mining (note 8) | (109) | (1 895) | (4) | ||
| Repairs and maintenance (note 8) | (1 958) | (343) | (1 021) | (7) | (9) |
| Railage and transport (note 8) | (2 149) | (2 554) | (12) | ||
| Movement in provisions (note 8) | 22 | (277) | 175 | (132) | (1) |
| External finance income (note 10) | 16 | 5 | 36 | 64 | |
| External finance costs (note 10) | (47) | (144) | (100) | (503) | |
| Share of income/(loss) of equity-accounted investments (note 11) | 234 | (7) | |||
| Income tax (expense)/benefit | (2 171) | 130 | (54) | (89) | (92) |
| Cash generated by/(utilised in) operations (note 9) | 9 390 | 488 | 52 | (712) | 1 038 |
| Capital spend on property, plant and equipment (note 12) | (1 812) | (268) | (302) | ||
| At 31 December 2024 (Reviewed) | |||||
| Segmental assets and liabilities | |||||
| Deferred tax2 | 15 | ||||
| Equity-accounted investments (note 13) | 2 018 | 2 007 | |||
| External assets | 32 229 | 5 684 | 1 683 | 3 005 | 9 334 |
| Total assets | 32 229 | 7 702 | 1 683 | 5 012 | 9 349 |
| External liabilities | 2 054 | 2 761 | 1 398 | 1 627 | 5 552 |
| Deferred tax2 | 7 419 | 648 | (66) | 13 | 937 |
| Total liabilities | 9 473 | 3 409 | 1 332 | 1 640 | 6 489 |
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
| Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2024 (Reviewed) | ||||||
| External revenue (note 7) | 190 | 9 | 40 725 | |||
| Segmental net operating profit/(loss) | (51) | (901) | 7 607 | |||
| Add back: | ||||||
| Depreciation and amortisation (note 8) | 6 | 86 | 2 773 | |||
| Net losses on disposal of property, plant and equipment (note 8) | 27 | |||||
| Losses on disposal of intangible assets (note 8) | 16 | 16 | ||||
| EBITDA (note 26.1) | (45) | (799) | 10 423 | |||
| Other key items: | ||||||
| Raw materials and consumables (note 8) | (41) | (24) | (5 672) | |||
| Staff costs (note 8) | (63) | (932) | (6 980) | |||
| Royalties (note 8)1 | (1 077) | |||||
| Contract mining (note 8) | (2 008) | |||||
| Repairs and maintenance (note 8) | (4) | (15) | (3 357) | |||
| Railage and transport (note 8) | (1) | (3) | (4 719) | |||
| Movement in provisions (note 8) | 2 | (211) | ||||
| External finance income (note 10) | 1 665 | 1 786 | ||||
| External finance costs (note 10) | (1) | (421) | (1 216) | |||
| Share of income/(loss) of equity-accounted investments (note 11) | 3 979 | 64 | 4 270 | |||
| Income tax (expense)/benefit | 16 | (117) | (2 377) | |||
| Cash generated by/(utilised in) operations (note 9) | 28 | 148 | 10 432 | |||
| Capital spend on property, plant and equipment (note 12) | (1) | (65) | (2 448) | |||
| At 31 December 2024 (Reviewed) | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 25 | 157 | 197 | |||
| Equity-accounted investments (note 13) | 14 329 | 2 242 | 20 596 | |||
| External assets | 215 | 25 | 21 748 | 73 923 | ||
| Total assets | 240 | 14 354 | 2 242 | 21 905 | 94 716 | |
| External liabilities | 28 | 3 820 | 17 240 | |||
| Deferred tax2 | (25) | 8 926 | ||||
| Total liabilities | 28 | 3 795 | 26 166 | |||
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority |
| Coal | |||||
| Commercial | |||||
| Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
|
| For the year ended 31 December 2023 (Audited) | |||||
| 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 (note 26.1) | 11 702 | 997 | 179 | (665) | 1 023 |
| Other key items: | |||||
| Raw materials and consumables (note 8) | (2 002) | (2 755) | (497) | (2) | (1) |
| Staff costs (note 8) | (2 740) | (395) | (1 737) | (253) | (68) |
| Royalties (note 8)1 | (1 188) | (108) | (13) | 167 | |
| Contract mining (note 8) | (60) | (1 434) | |||
| Repairs and maintenance (note 8) | (1 677) | (282) | (975) | (1) | (9) |
| Railage and transport (note 8) | (1 744) | (1 424) | (6) | ||
| Movement in provisions (note 8) | 151 | (80) | 53 | (195) | |
| External finance income (note 10) | 26 | 8 | 61 | 40 | |
| External finance costs (note 10) | (66) | (97) | (79) | (515) | |
| Share of income/(loss) of equity-accounted investments (note 11) | 508 | (10) | |||
| Income tax expense | (2 603) | (98) | (27) | (118) | (71) |
| 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 (Audited) | |||||
| Segmental assets and liabilities | |||||
| Deferred tax2 | 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 tax2 | 7 335 | 856 | (60) | 2 | 903 |
| Total liabilities | 9 925 | 3 307 | 1 540 | 781 | 6 024 |
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
|
Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2023 (Audited) | ||||||
| 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 (note 26.1) | 83 | 80 | 13 399 | |||
| Other key items: | ||||||
| Raw materials and consumables (note 8) | (58) | (17) | (5 332) | |||
| Staff costs (note 8) | (69) | (829) | (6 091) | |||
| Royalties (note 8)1 | (1 142) | |||||
| Contract mining (note 8) | (1 494) | |||||
| Repairs and maintenance (note 8) | (6) | (19) | (2 969) | |||
| Railage and transport (note 8) | (3) | (1) | (3 178) | |||
| Movement in provisions (note 8) | 1 | (70) | ||||
| External finance income (note 10) | 1 435 | 1 570 | ||||
| External finance costs (note 10) | (1) | (494) | (1 252) | |||
| Share of income/(loss) of equity-accounted investments (note 11) | 6 157 | 332 | 6 987 | |||
| Income tax expense | (18) | (296) | (3 231) | |||
| 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 (Audited) | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 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 tax2 | (33) | 9 003 | ||||
| Total liabilities | 40 | 3 | 4 827 | 26 447 | ||
| 1 | Calculated per legal entity. |
| 2 | 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 2024 (Reviewed) | Water- berg Rm |
Mpuma- langa Rm |
Tied Rm |
Other Rm |
Energy Rm |
Alloys Rm |
Other Rm |
Total Rm |
||
| Segmental revenue reconciliation | ||||||||||
| Segmental revenue1 | 22 563 | 9 893 | 6 659 | 1 411 | 190 | 9 | 40 725 | |||
| Local sales allocated to selling entity2 | (172) | 172 | ||||||||
| Export sales allocated to selling entity3 | (4 427) | (8 427) | 12 854 | |||||||
| Total revenue | 18 136 | 1 294 | 6 831 | 12 854 | 1 411 | 190 | 9 | 40 725 | ||
| By timing and major type of goods and services | ||||||||||
| Revenue recognised at a point in time | 18 136 | 1 294 | 5 716 | 12 854 | 187 | 7 | 38 194 | |||
| Coal | 18 136 | 1 294 | 5 716 | 12 854 | 38 000 | |||||
| Ferrosilicon | 187 | 187 | ||||||||
| Biological goods | 7 | 7 | ||||||||
| Revenue recognised over time | 1 115 | 1 411 | 3 | 2 | 2 531 | |||||
| Renewable energy | 1 411 | 1 411 | ||||||||
| Stock yard management services | 243 | 243 | ||||||||
| Project engineering services | 872 | 872 | ||||||||
| Transportation services | 1 | 1 | ||||||||
| Other services | 2 | 2 | 4 | |||||||
| Total revenue | 18 136 | 1 294 | 6 831 | 12 854 | 1 411 | 190 | 9 | 40 725 | ||
| By major geographic area of customer4 | ||||||||||
| Domestic | 18 136 | 1 294 | 6 831 | 1 411 | 190 | 9 | 27 871 | |||
| Export | 12 854 | 12 854 | ||||||||
| Europe5 | 4 743 | 4 743 | ||||||||
| Asia6 | 7 156 | 7 156 | ||||||||
| Other | 955 | 955 | ||||||||
| Total revenue | 18 136 | 1 294 | 6 831 | 12 854 | 1 411 | 190 | 9 | 40 725 | ||
| By major customer industries | ||||||||||
| Public utilities | 15 842 | 6 831 | 262 | 1 411 | 24 346 | |||||
| Merchants | 267 | 675 | 11 936 | 12 878 | ||||||
| Steel | 1 153 | 149 | 1 302 | |||||||
| Mining | 132 | 240 | 133 | 505 | ||||||
| Manufacturing | 224 | 55 | 279 | |||||||
| Food and beverage | 175 | 1 | 176 | |||||||
| Cement | 258 | 101 | 354 | 713 | ||||||
| Chemicals | 109 | 109 | ||||||||
| Other | 85 | 20 | 302 | 2 | 8 | 417 | ||||
| Total revenue | 18 136 | 1 294 | 6 831 | 12 854 | 1 411 | 190 | 9 | 40 725 | ||
| 1 | Coal segmental revenue is based on the origin of coal production. |
| 2 | Relates to product supplied to tied mine customer. |
| 3 | Relates to revenue sold by export distribution entity. |
| 4 | Determined based on the customer supplied by Exxaro. |
| 5 | Relates mainly to Switzerland. |
| 6 | Relates mainly to Singapore. |
| Coal | Ferrous | Other | ||||||||
| Commercial | ||||||||||
| For the year ended 31 December 2023 (Audited) | Water- berg Rm |
Mpuma- langa Rm |
Tied Rm |
Other Rm |
Energy Rm |
Alloys Rm |
Other Rm |
Total Rm |
||
| Segmental revenue reconciliation | ||||||||||
| Segmental revenue1 | 22 496 | 8 666 | 5 783 | 1 345 | 398 | 10 | 38 698 | |||
| Export sales allocated to selling entity2 | (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 customer3 | ||||||||||
| Domestic | 17 958 | 2 127 | 5 783 | 1 345 | 398 | 8 | 27 619 | |||
| Export | 11 077 | 2 | 11 079 | |||||||
| Europe4 | 5 522 | 1 | 5 523 | |||||||
| Asia5 | 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. |
8.Significant items included in operating expenses
| For the year ended 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Raw materials and consumables | (5 672) | (5 332) |
|---|---|---|
| Staff costs | (6 980) | (6 091) |
| Royalties | (1 077) | (1 142) |
| Contract mining | (2 008) | (1 494) |
| Repairs and maintenance | (3 357) | (2 969) |
| Railage and transport | (4 719) | (3 178) |
| Movement in provisions (note 18) | (211) | (70) |
| Depreciation and amortisation | (2 773) | (2 715) |
| Net losses on disposal of property, plant and equipment | (27) | (57) |
| Losses on disposal of intangible assets | (16) | |
| Net realised and unrealised currency exchange differences | 97 | 124 |
| Legal and professional fees | (398) | (487) |
| ECLs on financial assets at amortised cost | (153) | (21) |
9.Cash generated by operations
| For the year ended 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Profit before tax | 12 447 | 17 934 |
|---|---|---|
| Adjusted for: | ||
| Finance income | (1 786) | (1 570) |
| Finance costs | 1 216 | 1 252 |
| Dividend income from financial assets | (2) | |
| Share of income of equity-accounted investments | (4 270) | (6 987) |
| Net operating profit | 7 607 | 10 627 |
| Non-cash movements: | ||
| Depreciation and amortisation | 2 773 | 2 715 |
| ECLs on financial assets at amortised cost | 153 | 21 |
| Write-off of trade and other receivables | 13 | 4 |
| Write-off of ESD loans | 5 | 2 |
| Write-off of other current assets | 32 | |
| Movement in provisions | 211 | 70 |
| Movement in retirement employee obligations | 13 | 11 |
| Net unrealised currency exchange differences | (84) | (46) |
| Fair value adjustments on financial instruments | (303) | (284) |
| Write-down of inventories to net realisable value | 141 | |
| Gain on modification of lease | (2) | |
| Net losses on disposal of property, plant and equipment | 27 | 57 |
| Losses on disposal of intangible assets | 16 | |
| Indemnification asset movement | 5 | |
| Share-based payment expense | 208 | 212 |
| Hedge ineffectiveness on interest rate swaps on cash flow hedges | 12 | 18 |
| Translation of foreign currency items | (14) | (85) |
| Amortisation of transaction costs prepaid | 4 | 4 |
| Non-cash recoveries | 163 | 23 |
| Non-cash deposit facilities | (373) | |
| Non-cash management fees | 45 | 53 |
| Other non-cash movements | (6) | 8 |
| Cash generated by operations before working capital movements | 10 982 | 13 074 |
| Working capital movements: | ||
| Increase in inventories | (268) | (212) |
| (Increase)/decrease in trade and other receivables | (420) | 449 |
| Increase in trade and other payables | 240 | 68 |
| Utilisation of provisions | (102) | (72) |
| Cash generated by operations | 10 432 | 13 307 |
10.Net financing income
For the year ended 31 December |
2024 Reviewed Rm |
2023 Audited Rm |
||||
| Finance income | 1 786 | 1 570 | ||||
|---|---|---|---|---|---|---|
| Interest income | 1 791 | 1 573 | ||||
| Reimbursement of interest income on environmental rehabilitation funds | (10) | (9) | ||||
| Finance lease interest income | 5 | 6 | ||||
| Finance costs | (1 216) | (1 252) | ||||
| Interest expense | (996) | (1 020) | ||||
| Net fair value gain/(loss) on interest rate swaps designated as cash flow hedges recycled from OCI: | 26 | 20 | ||||
| – Realised fair value loss | (35) | (44) | ||||
| – Unrealised fair value gain | 61 | 64 | ||||
| Unwinding of discount rate on rehabilitation costs | (304) | (244) | ||||
| Recovery of unwinding of discount rate on rehabilitation costs | 28 | 28 | ||||
| Interest expense on lease liabilities | (46) | (48) | ||||
| Amortisation of transaction costs | (5) | (5) | ||||
| Borrowing costs capitalised1 | 81 | 17 | ||||
| Total net financing income | 570 | 318 | ||||
|
9.73 | 9.93 |
11.Share of income of equity-accounted investments
| For the year ended 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Associates | 4 036 | 6 479 |
|---|---|---|
| SIOC | 3 979 | 6 157 |
| RBCT | (7) | (10) |
| Black Mountain | 64 | 332 |
| Joint ventures | 234 | 508 |
| Mafube | 234 | 508 |
| Share of income of equity-accounted investments | 4 270 | 6 987 |
12.Capital spend and capital commitments
| For the year ended 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Capital spend | ||
| To maintain operations | 2 146 | 2 455 |
| To expand operations | 302 | 244 |
| Total capital spend on property, plant and equipment | 2 448 | 2 699 |
|
At 31 December |
2024 Reviewed Rm |
2023 Audited Rm |
| Capital commitments | ||
| Contracted | 3 416 | 4 115 |
| – Contracted for the group (owner-controlled) | 1 690 | 2 115 |
| – Share of capital commitments of associates | 1 531 | 1 973 |
| – Share of capital commitments of joint ventures | 195 | 27 |
| Authorised, but not contracted (owner-controlled) | 2 055 | 2 287 |
13.Equity-accounted investments
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Associates | 18 578 | 18 356 |
|---|---|---|
| SIOC | 14 329 | 14 079 |
| RBCT | 2 007 | 2 014 |
| Black Mountain1 | 2 242 | 2 263 |
| Joint ventures | 2 018 | 1 922 |
| Mafube | 2 018 | 1 922 |
| Total net carrying value of equity-accounted investments | 20 596 | 20 278 |
| 1 | In 2024, the shares in Black Mountain have been provided as security for the project financing raised by Black Mountain. |
14.Other assets
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Non-current | 569 | 729 |
|---|---|---|
| Reimbursements1 | 443 | 588 |
| Biological assets | 37 | 33 |
| Lease receivables | 18 | 29 |
| Other | 71 | 79 |
| Current | 456 | 482 |
| VAT | 62 | 37 |
| Diesel rebates | 40 | 58 |
| Royalties | 63 | 69 |
| Prepayments2 | 229 | 254 |
| Lease receivables | 11 | 9 |
| Other | 51 | 55 |
| Total other assets | 1 025 | 1 211 |
| 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 | Includes an amount of R83.7 million (2023: R123 million) which relates to advance payments for assets under construction. |
15.Interest-bearing borrowings
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
||
| Non-current1 | 7 344 | 7 480 | ||
|---|---|---|---|---|
| Loan facility | 2 499 | 2 945 | ||
| Project financing2 | 4 845 | 4 535 | ||
| Current1 | 876 | 1 443 | ||
| Loan facility | 498 | 507 | ||
| Project financing2 | 378 | 290 | ||
| Bonds3 | 646 | |||
| Total interest-bearing borrowings | 8 220 | 8 923 | ||
| Summary of interest-bearing borrowings by period of redemption: | ||||
| Less than six months | 468 | 1 074 | ||
| Six to 12 months | 408 | 369 | ||
| Between one and two years | 2 951 | 794 | ||
| Between two and three years | 561 | 2 948 | ||
| Between three and four years | 687 | 556 | ||
| Between four and five years | 813 | 682 | ||
| More than five years | 2 332 | 2 500 | ||
| Total interest-bearing borrowings | 8 220 | 8 923 | ||
|
||||
|
(12) | (17) | ||
|
(5) | (5) | ||
|
||||
|
||||
| Analysis of movement in interest-bearing borrowings | ||||
| At beginning of the year | 8 923 | 9 093 | ||
| Interest-bearing borrowings raised | 705 | 489 | ||
| Interest-bearing borrowings repaid | (1 397) | (658) | ||
| Interest expense | 974 | 982 | ||
| Interest paid | (990) | (975) | ||
| Capitalisation of transaction costs | (13) | |||
| Amortisation of transaction costs | 5 | 5 | ||
| At end of the year | 8 220 | 8 923 |
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 2024:
| Facilities | Carrying value Rm |
Undrawn portion Rm |
Security | Debt assumed date |
| Loan facility | ||||
| Exxaro | ||||
| Bullet term loan | 2 540 | nil | Unsecured | 26 April 2021 |
| Amortised term loan | 457 | nil | Unsecured | 26 April 2021 |
| Revolving credit facility | nil | 3 250 | Unsecured | 26 April 2021 |
| Project financing | ||||
| Amakhala SPV | ||||
| Term loan and reserve facility | 2 360 | 273 | Secured | 01 April 2020 |
| Term loan facility | 127 | nil | Secured | 01 April 2020 |
| Tsitsikamma SPV | ||||
| Term loan and reserve facility | 1 586 | 148 | Secured | 01 April 2020 |
| LSP SPV | ||||
| Term loan and reserve facility | 1 122 | 145 | Secured | 11 July 2023 |
| Revolving credit facility | 28 | 21 | Secured | 11 July 2023 |
| Interest rate | ||||||
| Facilities | Maturity date |
Interest payment basis |
Base rate | Margin | Effective rate for transaction costs |
|
| Loan facility | ||||||
| Exxaro | ||||||
| Bullet term loan | 26 April 2026 | Floating | 3-month JIBAR |
240 basis points (2.40%) |
0.11% | |
| Amortised term loan | 26 April 2026 | Floating | 3-month JIBAR |
230 basis points (2.30%) |
0.06% | |
| Revolving credit facility | 26 April 2026 | Floating | 1-month JIBAR |
265 basis points (2.65%) |
N/A | |
| Project financing | ||||||
| Amakhala SPV | ||||||
| Term loan and reserve facility | 30 June 2031 | Floating | 3-month JIBAR |
371 to 681 basis points (3.71% to 6.81%) |
N/A | |
| Term loan facility | 30 June 2031 | Fixed | 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 | 31 Dec 2030 | Floating | 3-month JIBAR |
276 basis points (2.76%) |
N/A | |
| LSP SPV | ||||||
| Term loan and reserve facility | 31 Dec 2042 | Floating | 3-month JIBAR |
250 to 360 basis points (2.50% to 3.60%) |
0.01% were applicable |
|
| Revolving credit facility | 31 Aug 2025 | Floating | 3-month JIBAR |
180 basis points (1.80%) |
N/A | |
16.Lease liabilities
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Non-current | 334 | 400 |
|---|---|---|
| Current | 96 | 51 |
| Total lease liabilities | 430 | 451 |
| Analysis of movement in lease liabilities | ||
| At beginning of the year | 451 | 478 |
| New leases | 3 | 2 |
| Lease remeasurement adjustments | 26 | 12 |
| Capital repayments | (50) | (41) |
| – Lease payments | (96) | (89) |
| – Interest charges | 46 | 48 |
| At end of the year | 430 | 451 |
| The lease liabilities relate to the right-of-use assets. | ||
| Interest is based on incremental borrowing rates ranging as follows: | ||
| – Local leases with lease term between 12 and 18 months (%) | 11.25 | 11.75 |
| – Foreign lease with lease term between 12 and 18 months (%) | 1.35 | 1.35 |
| – Local leases with lease term greater than 18 months (%) | 10.25 to 11.75 | 10.25 to 10.87 |
17.Net cash
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Net cash is presented by the following items on the statement of financial position: | ||
| Non-current interest-bearing debt | (7 678) | (7 880) |
| Interest-bearing borrowings | (7 344) | (7 480) |
| Lease liabilities | (334) | (400) |
| Current interest-bearing debt | (972) | (1 494) |
| Interest-bearing borrowings | (876) | (1 443) |
| Lease liabilities | (96) | (51) |
| Net cash and cash equivalents | 20 630 | 19 859 |
| Cash and cash equivalents | 20 630 | 19 859 |
| Total net cash | 11 980 | 10 485 |
18.Provisions
| Environmental rehabilitation | |||||||
| Restoration Rm |
Decommissioning Rm |
Residual impact Rm |
Other site closure cost Rm |
Other Rm |
Total Rm |
||
| At 31 December 2024 (Reviewed) | |||||||
| At beginning of the year | 1 823 | 258 | 975 | 127 | 2 | 3 185 | |
| Charge to operating expenses (note 8) | 180 | 25 | 3 | 3 | 211 | ||
| Unwinding of discount rate (note 10) | 201 | 32 | 60 | 11 | 304 | ||
| Change in provisions capitalised to property, plant and equipment | 2 | 41 | 43 | ||||
| Utilised during the year | (58) | (21) | (21) | (2) | (102) | ||
| Total provisions at end of the year | 2 148 | 356 | 1 017 | 120 | 3 641 | ||
| – Non-current | 1 999 | 355 | 908 | 97 | 3 359 | ||
| – Current | 149 | 1 | 109 | 23 | 282 | ||
| At 31 December 2023 (Audited) | |||||||
| At beginning of the year | 1 682 | 305 | 832 | 118 | 4 | 2 941 | |
| Charge/(reversal) to operating expenses (note 8) | 10 | (81) | 122 | 19 | 70 | ||
| Unwinding of discount rate (note 10) | 178 | 32 | 24 | 10 | 244 | ||
| Change in provisions capitalised to property, plant and equipment | 2 | 2 | |||||
| Utilised during the year | (47) | (3) | (20) | (2) | (72) | ||
| Total provisions at end of the year | 1 823 | 258 | 975 | 127 | 2 | 3 185 | |
| – Non-current | 1 692 | 257 | 908 | 106 | 2 963 | ||
| – Current | 131 | 1 | 67 | 21 | 2 | 222 | |
19.Other liabilities
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
| Non-current | 38 | 35 |
|---|---|---|
| Long-term incentives | 13 | 10 |
| Income received in advance | 25 | 25 |
| Current | 974 | 787 |
| Leave pay | 274 | 250 |
| Bonuses | 380 | 280 |
| VAT | 171 | 99 |
| Royalties | 40 | |
| Carbon tax | 3 | 3 |
| Customer advance payments | 38 | 4 |
| Other | 108 | 111 |
| Total other liabilities | 1 012 | 822 |
20.Financial instruments
| At 31 December | 2024 Reviewed Rm |
2023 Audited Rm |
||
| Non-current | ||||
| Financial assets | ||||
| Financial assets at FVOCI | 442 | 434 | ||
| Equity: unlisted – Chifeng | 442 | 434 | ||
| Financial assets at FVPL | 4 557 | 3 839 | ||
| Debt: unlisted – environmental rehabilitation funds | 2 657 | 2 422 | ||
| Debt: unlisted – portfolio investments | 513 | 461 | ||
| Debt: unlisted – deposit facilities1 | 1 387 | 956 | ||
| Financial assets at amortised cost | 266 | 341 | ||
| ESD loans2 | 68 | 106 | ||
| – Gross | 131 | 156 | ||
| – Impairment allowances | (63) | (50) | ||
| Vendor finance loan3 | 80 | 127 | ||
| – Gross | 81 | 127 | ||
| – Impairment allowance | (1) | |||
| Other financial assets at amortised cost | 118 | 108 | ||
| – Environmental rehabilitation funds | 118 | 108 | ||
| Derivative financial assets designated as hedging instruments | 1 | 2 | ||
| Cash flow hedge derivatives: interest rate swaps4 | 1 | 2 | ||
| Financial liabilities | ||||
| Financial liabilities at amortised cost | (7 384) | (7 522) | ||
| Interest-bearing borrowings | (7 344) | (7 480) | ||
| Other payables | (40) | (42) | ||
| Derivative financial liabilities designated as hedging instruments | (129) | (127) | ||
| Cash flow hedge derivatives: interest rate swaps4 | (129) | (127) | ||
| 1 | Deposit or credit facilities that are contractual arrangements with insurance providers with an initial five-year term and are used to cover insurance claims over the term of the contracts. The balance of the facility is refunded at the end of the term, net of fees, returns and claims incurred. Annual premiums are required to be placed in the facility over the term yielding returns on underlying fund portfolios. |
| 2 | Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme. |
| 3 | Vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the
ECC operation. The loan is unsecured, repayable from 1 October 2022 and bears interest at:
|
| 4 | Relates to interest rate swaps designated in a hedging relationship to hedge interest rate risk exposure resulting from interest payments on the project financing. The hedges have been assessed as effective. |
The carrying amounts of financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.
|
At 31 December |
2024 Reviewed Rm |
2023 Audited Rm |
||||
| Current | ||||||
| Financial assets | ||||||
| Financial assets at amortised cost | 25 017 | 23 924 | ||||
| ESD loans1 | 83 | 63 | ||||
| – Gross | 247 | 181 | ||||
| – Impairment allowances | (164) | (118) | ||||
| Vendor finance loan2 | 62 | 50 | ||||
| – Gross | 63 | 51 | ||||
| – Impairment allowance | (1) | (1) | ||||
| Intervention receivable3 | 8 | |||||
| – Gross | 8 | |||||
| Investment deposits4 | 4 | |||||
| – Gross | 4 | |||||
| Other financial assets at amortised cost | 75 | |||||
| – Deferred pricing receivable5 | 77 | |||||
| – Employee receivables | 4 | 4 | ||||
| – Impairment allowances | (4) | (6) | ||||
| Trade and other receivables | 4 230 | 3 877 | ||||
| Trade receivables | 4 098 | 3 829 | ||||
| – Gross | 4 214 | 3 850 | ||||
| – Impairment allowances | (116) | (21) | ||||
| Other receivables | 132 | 48 | ||||
| – Gross | 140 | 55 | ||||
| – Impairment allowances | (8) | (7) | ||||
| Cash and cash equivalents6 | 20 630 | 19 859 | ||||
| Financial assets at FVPL | 2 | 22 | ||||
| Derivative financial assets | 2 | 22 | ||||
| Financial liabilities | ||||||
| Financial liabilities at amortised cost | (4 227) | (4 799) | ||||
| Interest-bearing borrowings | (876) | (1 443) | ||||
| Trade and other payables | (3 351) | (3 356) | ||||
| – Trade payables | (1 841) | (1 893) | ||||
| – Other payables | (1 510) | (1 463) | ||||
| Derivative financial liabilities designated as hedging instruments | (14) | |||||
| Cash flow hedge derivatives: FECs7 | (14) | |||||
| Financial liabilities at FVPL | (22) | |||||
| Derivative financial liabilities | (22) | |||||
| 1 | Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme. |
| 2 | Vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the ECC operation. The loan is unsecured, repayable from 1 October 2022 and bears interest at:
|
| 3 | Relates to amounts advanced for funding logistical projects. |
| 4 | Investment deposits with a term of three to 12 months. |
| 5 | Relates to a deferred pricing adjustment which arose during 2017 and settled in 2024. |
| 6 | Includes cash and cash equivalents subject to the following restrictions by the project financing lenders:
|
| 7 | Relates to FECs designated in a hedging relationship to hedge foreign exchange risk exposure on the purchase of US dollar foreign denominated capital purchases funded by ZAR denominated project financing. The FECs portion of the hedges have been settled. |
The group has granted the following loan commitments:
|
At 31 December |
2024 Reviewed Rm |
2023 Audited Rm |
| Total loan commitments1 | 38 | 12 |
|---|---|---|
| ESD applicants2 | 38 | 12 |
| 1 | The loan commitments were undrawn for the reporting periods. |
| 2 | Loans approved and awarded to successful ESD applicants. |
20.1 |
Fair value hierarchy |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation techniques used. The different levels are defined as follows:
Reconciliation of financial assets within Level 3 of the hierarchy:
TransfersTransfers between levels of the fair value hierarchy are recognised at the end of the reporting period during which the transfer has occurred. There were no transfers between Level 1 and Level 2 nor between Level 2 and Level 3 of the fair value hierarchy. Valuation process appliedThe fair value computations of the investments are performed by the strategic finance department, reporting to the finance director, on a six-monthly basis. The valuation reports are discussed with the chief operating decision maker and the audit committee in accordance with Exxaro's reporting governance. Current derivative financial instrumentsLevel 2 fair values for simple over-the-counter derivative financial instruments are based on market quotes. These quotes are assessed for reasonability by discounting estimated future cash flows using the market rate for similar instruments at measurement date. Environmental rehabilitation funds, portfolio investments and deposit facilitiesLevel 2 fair values for debt instruments held in the environmental rehabilitation funds, portfolio investments and deposit facilities are based on quotes provided by the financial institutions at which the funds are invested at measurement date. Non-current cash flow hedge derivatives: interest rate swapsLevel 2 fair values for interest rate swaps are based on valuations provided by the financial institutions with whom the swaps have been entered into, and take into account credit risk. The valuations are assessed for reasonability by discounting the estimated future cash flows based on observable ZAR swap curves. Current cash flow hedge derivatives: forward exchange contractsLevel 2 fair values for hedge accounted FECs are based on valuations provided by the financial institutions with whom the FECs have been entered into, and take into account credit risk. The valuations are assessed for reasonability by discounting the estimated future cash flows based on observable ZAR/US$ forward rates. Valuation techniques used in the determination of fair values within Level 3 of the hierarchyChifeng is classified within a Level 3 of the fair value hierarchy as there is no quoted market price or observable price available for this investment. This unlisted investment is valued as the present value of the estimated future cash flows, using a DCF model. The valuation technique is consistent to that used in previous reporting periods. |
21.Contingent liabilities and contingent assets
21.1 |
Contingent liabilities |
|||||||||||||||||||||||||||||||
In November 2023, Exxaro received service of an application seeking the permission of the High Court of South Africa to certify classes for purposes of a class action for damages against Exxaro and three of its related entities, being Exxaro Coal Proprietary Limited, Exxaro Coal Mpumalanga Proprietary Limited and Mafube Coal Mining Proprietary Limited, as well as other respondents. Following legal advice, Exxaro delivered its notice of intention to oppose the certification application. Exxaro served and filed its Answering Affidavit (together with annexures and supporting affidavits) timeously on 6 December 2024. The Deputy Judge President has assigned 25 November 2025 to 5 December 2025 for the certification hearing. The timing and occurrence of any possible outflows of the contingent liabilities are uncertain. Share of equity-accounted investments' contingent liabilities
|
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21.2 |
Contingent assets |
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|
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22.Related party transactions
The group entered into various sale and purchase transactions with associates and joint ventures during the ordinary course of business. These transactions were subject to terms that are no less, nor more favourable than those arranged with independent third parties.
| Associates | Joint ventures | ||||
| 2024 Reviewed Rm |
2023 Audited Rm |
2024 Reviewed Rm |
2023 Audited Rm |
||
| Items of income/(expense) recognised during the year | |||||
| Sales of goods and services rendered | 2 | 269 | 49 | 45 | |
| Purchase of goods and services rendered | (149) | (146) | (1 751) | (1 851) | |
| Outstanding balances at 31 December | |||||
| Included in trade and other receivables | 23 | 31 | 16 | 4 | |
| Included in trade and other payables | (9) | (7) | (174) | (155) | |
23.Going concern
Based on the latest results for the year ended 31 December 2024, the latest board approved budget for 2025, the latest outlook up to 2026 as well as the available banking facilities and cash generating capability, Exxaro satisfies the criteria of a going concern in the foreseeable future.
24.Events after the reporting period
Details of the final dividend are provided in note 5.
Subsequent to 31 December 2024, the following notable events occurred:
Karreebosch project
On 17 February 2025, Cennergi Holdings, a wholly owned subsidiary of Exxaro, in partnership with G7 Renewable Energies Proprietary Limited, reached financial close on the 140MW Karreebosch project. Karreebosch has a 20-year Power Purchase Agreement with Northam Platinum Limited. Cennergi Holdings acquired 80% of the share capital in Karreebosch as well as 50% of the share capital in Karreebosch Asset Management Proprietary Limited. The total investment cost of the project is anticipated to be R4.7 billion which will in majority be funded with project financing from Nedbank, Absa Bank and Standard Bank with the financial structure set up to ensure long-term sustainability, as well as limited recourse to the Exxaro balance sheet.
The directors are not aware of any other significant matter or circumstance arising after the reporting period up to date of this report, not otherwise dealt with in this report.
Share repurchase programme
On 11 March 2025, the board of directors approved a share repurchase programme to the value of R1.2 billion, subject to prevailing market conditions, and JSE Listings Requirements.
25.External auditor's review conclusion
The company's external auditor, KPMG Inc., has issued their unmodified review report on the reviewed condensed group financial statements for the year ended 31 December 2024 (as set out here). The review was conducted in accordance with ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. The external auditor's report on the reviewed condensed group financial statements is included here.
26.Other key measures
|
At 31 December |
2024 Unreviewed |
2023 Unreviewed |
| Closing share price (rand per share) | 157.95 | 204.48 |
|---|---|---|
| Market capitalisation (Rbn) | 55.17 | 71.43 |
| Average rand/US$ exchange rate (for the year ended) | 18.32 | 18.45 |
| Closing rand/US$ spot exchange rate | 18.87 | 18.30 |