Notes to the reviewed condensed group interim 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 interim financial statements as at and for the
six-month
period ended 30 June 2023 (interim 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 interim financial statements have been prepared in accordance with and contain the information required by IFRS (as issued by the IASB), IAS 34 Interim Financial Reporting, Financial Pronouncements (as issued by the Financial Reporting Standards Council), the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee), the requirements of the Companies Act and the JSE Listings Requirements.
The interim financial statements have been prepared under the supervision of Mr PA Koppeschaar CA(SA), SAICA registration number: 00038621.
The interim 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. The interim 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 interim financial statements of the Exxaro group were authorised for issue by the board of directors on 15 August 2023.
2.2 Judgements and estimates
Management made judgements, 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 and are consistent with those of the previous
financial year. The policy for recognising and measuring income taxes in the interim reporting period is
consistent with that applied in the previous interim reporting period as described in
3.1 below. A number
of new or amended standards became effective for the current reporting period. 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 Income tax
Income tax expense is recognised based on management’s estimate of the weighted average effective annual tax rate expected for the full financial year. The estimated weighted average effective annual tax rate used for the six-month period ended 30 June 2023 is 19.6%, compared to 17.9% for the six-month period ended 30 June 2022.
The main reconciling items, between the current standard tax rate of 27% and the effective tax rate,
result from the share of income of
equity-accounted investments and dividend income (-8.9%).
3.2 Impact of new, amended or revised standards issued but not yet effective
New accounting standards, amendments to accounting standards and interpretations issued, that are
relevant to the group, but not yet effective on
30 June 2023, have not been early adopted, except for the
amendment to IAS 1 Presentation of financial statements relating to non-current liabilities with
covenants. 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 |
||||
| 6 months ended 30 June 2023 (Reviewed) | |||||||
| Profit attributable to owners of the parent | 5 905 | ||||||
| Adjusted for: | 13 | (4) | (2) | 7 | |||
| – IAS 16 Net losses on disposal of property, plant and equipment | 11 | (3) | (2) | 6 | |||
|
2 | (1) | 1 | ||||
| Headline earnings | 5 912 | ||||||
| 6 months ended 30 June 2022 (Reviewed) | |||||||
| Profit attributable to owners of the parent | 8 250 | ||||||
| Adjusted for: | 73 | (21) | (12) | 40 | |||
| – IAS 16 Net losses on disposal of property, plant and equipment | 88 | (25) | (15) | 48 | |||
|
(15) | 4 | 3 | (8) | |||
| Headline earnings | 8 290 | ||||||
| 12 months 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 | |||||
|
1 132 | (306) | (191) | 635 | |||
| – IAS 36 Impairment charges of non-current assets | 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. |
| 6 months ended 30 June 2023 Reviewed cents |
6 months ended 30 June 2022 Reviewed cents |
12 months ended 31 December 2022 Audited cents |
|
| Headline earnings per share | |||
| Basic | 2 443 | 3 426 | 6 016 |
| Diluted | 2 443 | 3 426 | 6 016 |
|
Refer note 6 for details regarding the number of shares. |
5. 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 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% (30 June 2022: 50%; 31 December 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% (30 June 2022: 10.26%; 31 December 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 of the 20.62% (30 June 2022: 20.62%; 31 December 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% (30 June 2022: 26%; 31 December 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%
(30 June 2022: 25.85%; 31 December 2022: 25.85%) equity
interest in Insect Technology and the 28.01%
(30 June 2022: 28.59%; 31 December 2022: 28.01%)
equity interest in LightApp.
The following tables present a summary of the grou's segmental information:
| Coal | |||||
| Commercial | |||||
| 6 months ended 30 June 2023 (Reviewed) | Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
| External revenue (note 7) | 11 384 | 4 000 | 2 741 | 610 | |
|---|---|---|---|---|---|
| Segmental net operating profit/(loss) | 5 698 | 211 | 82 | (134) | 280 |
| External finance income (note 10) | 14 | 4 | 15 | 16 | |
| External finance costs (note 10) | (42) | (44) | (30) | (244) | |
| Income tax expense | (1 461) | (54) | (18) | (85) | (31) |
| Depreciation and amortisation (note 8) | (745) | (283) | (6) | (20) | (195) |
| Net losses on disposal of property, plant and equipment (note 8) | (10) | (1) | |||
| Share of income of equity-accounted investments (note 11) | 275 | 2 | |||
| Cash generated by/(utilised in) operations (note 9) | 6 103 | (176) | 177 | (259) | 425 |
| Capital spend on property, plant and equipment (note 12) | (706) | (69) | (2) | (13) | |
| At 30 June 2023 (Reviewed) | |||||
| Segmental assets and liabilities | |||||
| Deferred tax1 | 1 | ||||
| Equity-accounted investments (note 13) | 2 845 | 2 025 | |||
| External assets | 31 056 | 5 998 | 1 347 | 2 952 | 8 550 |
| Total assets | 31 056 | 8 843 | 1 347 | 4 977 | 8 551 |
| External liabilities | 2 238 | 2 150 | 1 550 | 525 | 4 662 |
| Deferred tax1 | 7 028 | 962 | (61) | (124) | 899 |
| Total liabilities | 9 266 | 3 112 | 1 489 | 401 | 5 561 |
| 1 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
| 6 months ended 30 June 2023 (Reviewed) | Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
|
| External revenue (note 7) | 205 | 3 | 18 943 | |||
|---|---|---|---|---|---|---|
| Segmental net operating profit/(loss) | 53 | 127 | 6 317 | |||
| External finance income (note 10) | 629 | 678 | ||||
| External finance costs (note 10) | (241) | (601) | ||||
| Income tax expense | (13) | (211) | (1 873) | |||
| Depreciation and amortisation (note 8) | (83) | (1 332) | ||||
| Net losses on disposal of property, plant and equipment (note 8) | (11) | |||||
| Share of income of equity-accounted investments (note 11) | 2 631 | 256 | 3 164 | |||
| Cash generated by/(utilised in) operations (note 9) | 125 | (143) | 6 252 | |||
| Capital spend on property, plant and equipment (note 12) | (1) | (10) | (801) | |||
| At 30 June 2023 (Reviewed) | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax1 | 6 | 3 | 247 | 257 | ||
| Equity-accounted investments (note 13) | 12 559 | 2 187 | 19 616 | |||
| External assets | 369 | 25 | 18 222 | 68 519 | ||
| Total assets | 375 | 12 587 | 2 187 | 18 469 | 88 392 | |
| External liabilities | 38 | 1 | 5 306 | 16 470 | ||
| Deferred tax1 | (26) | 8 678 | ||||
| Total liabilities | 38 | 1 | 5 280 | 25 148 | ||
| 1 | Offset per legal entity and tax authority. |
| Coal | |||||
| Commercial | |||||
| 6 months ended 30 June 2022 (Reviewed) | Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
| External revenue (note 7) | 11 692 | 7 334 | 2 666 | 523 | |
| Segmental net operating profit/(loss) | 6 387 | 3 020 | 74 | (74) | 168 |
| External finance income (note 10) | 10 | 1 | 1 | 9 | |
| External finance costs (note 10) | (28) | (43) | (37) | (248) | |
| Income tax (expense)/benefit | (1 661) | (785) | (26) | 260 | 11 |
| Depreciation and amortisation (note 8) | (726) | (289) | (7) | (18) | (194) |
| Net losses on disposal of property, plant and equipment (note 8) | (9) | (69) | |||
| Share of income/(loss) of equity-accounted investments (note 11) | 756 | ||||
| Cash generated by/(utilised in) operations (note 9) | 7 387 | 3 769 | 313 | (2 549) | 388 |
| Capital spend on property, plant and equipment (note 12) | (639) | (86) | (5) | ||
| At 30 June 2022 (Reviewed) | |||||
| Segmental assets and liabilities | |||||
| Deferred tax1 | 7 | ||||
| Equity-accounted investments (note 13) | 1 818 | 2 033 | |||
| External assets | 30 788 | 6 298 | 1 101 | 3 666 | 8 735 |
| Total assets | 30 788 | 8 116 | 1 101 | 5 699 | 8 742 |
| External liabilities | 2 327 | 1 963 | 1 102 | 827 | 4 921 |
| Deferred tax1 | 7 078 | 1 187 | 188 | (967) | 941 |
| Total liabilities | 9 405 | 3 150 | 1 290 | (140) | 5 862 |
| 1 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
| 6 months ended 30 June 2022 (Reviewed) | Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
|
| External revenue (note 7) | 108 | 7 | 22 330 | |||
| Segmental net operating profit/(loss) | 21 | (400) | 9 196 | |||
| External finance income (note 10) | 185 | 206 | ||||
| External finance costs (note 10) | (116) | (472) | ||||
| Income tax (expense)/benefit | (4) | 1 | (140) | (2 344) | ||
| Depreciation and amortisation (note 8) | (5) | (80) | (1 319) | |||
| Net losses on disposal of property, plant and equipment (note 8) | (10) | (88) | ||||
| Share of income/(loss) of equity-accounted investments (note 11) | 3 130 | 299 | (32) | 4 153 | ||
| Cash generated by/(utilised in) operations (note 9) | (22) | 147 | 9 433 | |||
| Capital spend on property, plant and equipment (note 12) | (14) | (744) | ||||
| At 30 June 2022 (Reviewed) | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax1 | 15 | 1 | 197 | 220 | ||
| Equity-accounted investments (note 13) | 12 572 | 1 708 | 91 | 18 222 | ||
| External assets | 402 | 25 | 12 929 | 63 944 | ||
| Total assets | 417 | 12 598 | 1 708 | 13 217 | 82 386 | |
| External liabilities | 24 | 1 | 5 761 | 16 926 | ||
| Deferred tax1 | (34) | 8 393 | ||||
| Total liabilities | 24 | 1 | 5 727 | 25 319 | ||
| 1 | Offset per legal entity and tax authority. |
| Coal | |||||
| Commercial | |||||
| 12 months ended 31 December 2022 (Audited) | Waterberg Rm |
Mpumalanga 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 |
| 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 |
| 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) | ||
| Impairment charges of equity-accounted investments | |||||
| Loss on disposal of subsidiary | |||||
| Loss on dilution of investment in associate | |||||
| Share of income/(loss) of equity-accounted investments (note 11) |
1 902 | (10) | |||
| 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 2021 (Audited) | |||||
| Segmental assets and liabilities | |||||
| Deferred tax1 | 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 tax1 | 6 997 | 978 | (56) | (108) | 884 |
| Total liabilities | 8 854 | 3 555 | 1 245 | 1 035 | 5 688 |
| 1 | Offset per legal entity and tax authority. |
| Ferrous | Other | ||||||
| 12 months 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 | |||
| External finance income (note 10) | 641 | 694 | |||||
| External finance costs (note 10) | (1) | (337) | (1 052) | ||||
| Income tax (expense)/benefit | (5) | (269) | (4 287) | ||||
| Depreciation and amortisation (note 8) | (7) | (164) | (2 681) | ||||
| Net losses on disposal of property, plant and equipment (note 8) | (9) | (97) | |||||
| Impairment charges of equity-accounted investments | (53) | (53) | |||||
| Loss on disposal of subsidiary | (1) | (1) | |||||
| Loss on dilution of investment in associate | (2) | (2) | |||||
| Share of income/(loss) of equity-accounted investments (note 11) | 4 077 | 578 | (70) | 6 477 | |||
| 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 tax1 | 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 tax1 | (27) | 8 668 | |||||
| Total liabilities | 26 | 1 | 5 362 | 25 766 | |||
| 1 | Offset per legal entity and tax authority. |
6. DIVIDEND DISTRIBUTIONS
The final dividend relating to the 2022 financial year of 1 136 cents per share, amounting to R2 744 million (to external shareholders), was declared on 14 March 2023 and paid on 8 May 2023.
An interim cash dividend, number 41, for 2023 of 1 143 cents per share, was approved by the board of directors on 15 August 2023. The dividend is payable on 2 October 2023 to shareholders who will be on the register on 29 September 2023. This interim dividend, amounting to approximately R2 761 million (to external shareholders), has not been recognised as a liability in these interim financial statements. It will be recognised in shareholders' equity in the second half of the year ending 31 December 2023.
The interim 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 914.40000 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.
| 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
|
| Dividends paid | 2 744 | 2 838 | 6 686 |
|---|---|---|---|
| Final dividend | 2 744 | 2 838 | 2 838 |
| Interim dividend | 3 848 | ||
| cents | cents | cents | |
| Dividend paid per share | 1 136 | 1 175 | 2 768 |
| Final dividend | 1 136 | 1 175 | 1 175 |
| Interim dividend | 1 593 | ||
| At 30 June 2023 Reviewed |
At 30 June 2022 Reviewed |
At 31 December 2022 Audited |
|
| Issued share capital (number of shares)1 | 349 305 092 | 349 305 092 | 349 305 092 |
|---|---|---|---|
| Ordinary shares (million) | |||
| – Weighted average number of shares | 242 | 242 | 242 |
| – Diluted weighted average number of shares | 242 | 242 | 242 |
| 1 | Includes treasury shares of 107 770 244 (30 June 2022: 107 770 244; 31 December 2022: 107 770 244). |
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.
| 6 months ended 30 June 2023 (Reviewed) | Coal | Ferrous | Other | |||||||
| Commercial | ||||||||||
| Water- berg Rm |
Mpuma- langa Rm |
Tied Rm |
Other Rm |
Energy Rm |
Alloys Rm |
Other Rm |
Total Rm |
|||
| Segmental revenue reconciliation | ||||||||||
| Segmental revenue1 | 11 384 | 4 000 | 2 741 | 610 | 205 | 3 | 18 943 | |||
| Export sales allocated to selling entity2 | (2 522) | (3 151) | 5 673 | |||||||
| Total revenue | 8 862 | 849 | 2 741 | 5 673 | 610 | 205 | 3 | 18 943 | ||
| By timing and major type of goods and services | ||||||||||
| Revenue recognised at a point in time | 8 862 | 849 | 2 177 | 5 673 | 203 | 2 | 17 766 | |||
| Coal | 8 862 | 849 | 2 177 | 5 673 | 17 561 | |||||
| Ferrosilicon | 203 | 203 | ||||||||
| Biological goods | 2 | 2 | ||||||||
| Revenue recognised over time | 564 | 610 | 2 | 1 | 1 177 | |||||
| Renewable energy | 610 | 610 | ||||||||
| Stock yard management services | 74 | 74 | ||||||||
| Project engineering services | 490 | 490 | ||||||||
| Transportation services | 1 | 1 | ||||||||
| Other services | 1 | 1 | 2 | |||||||
| Total revenue | 8 862 | 849 | 2 741 | 5 673 | 610 | 205 | 3 | 18 943 | ||
| By major geographic area of customer3 | ||||||||||
| Domestic | 8 862 | 849 | 2 741 | 610 | 205 | 3 | 13 270 | |||
| Export | 5 673 | 5 673 | ||||||||
| Europe4 | 2 548 | 2 548 | ||||||||
| Asia5 | 2 822 | 2 822 | ||||||||
| Other | 303 | 303 | ||||||||
| Total revenue | 8 862 | 849 | 2 741 | 5 673 | 610 | 205 | 3 | 18 943 | ||
| By major customer industries | ||||||||||
| Public utilities | 7 417 | 2 741 | 505 | 610 | 11 273 | |||||
| Merchants | 196 | 410 | 5 060 | 5 666 | ||||||
| Steel | 594 | 76 | 670 | |||||||
| Mining | 133 | 185 | 318 | |||||||
| Manufacturing | 253 | 20 | 273 | |||||||
| Food and beverage | 104 | 104 | ||||||||
| Cement | 133 | 6 | 108 | 247 | ||||||
| Chemicals | 351 | 351 | ||||||||
| Other | 32 | 6 | 3 | 41 | ||||||
| Total revenue | 8 862 | 849 | 2 741 | 5 673 | 610 | 205 | 3 | 18 943 | ||
| 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 Japan and Singapore. |
| Coal | Ferrous | Other | ||||||||
| Commercial | ||||||||||
| 6 months ended 30 June 2022 (Reviewed) | Water- berg Rm |
Mpuma- langa Rm |
Tied Rm |
Other Rm |
Energy Rm |
Alloys Rm |
Other Rm |
Total Rm |
||
| Segmental revenue reconciliation | ||||||||||
| Segmental revenue1 | 11 692 | 7 334 | 2 666 | 523 | 108 | 7 | 22 330 | |||
| Export sales allocated to selling entity2 | (3 795) | (6 467) | 10 262 | |||||||
| Total revenue | 7 897 | 867 | 2 666 | 10 262 | 523 | 108 | 7 | 22 330 | ||
| By timing and major type of goods and services | ||||||||||
| Revenue recognised at a point in time | 7 897 | 867 | 2 057 | 10 262 | 106 | 7 | 21 196 | |||
| Coal | 7 897 | 867 | 2 057 | 10 262 | 21 083 | |||||
| Ferrosilicon | 106 | 106 | ||||||||
| Biological goods | 7 | 7 | ||||||||
| Revenue recognised over time | 609 | 523 | 2 | 1 134 | ||||||
| Renewable energy | 523 | 523 | ||||||||
| Stock yard management services | 63 | 63 | ||||||||
| Project engineering services | 546 | 546 | ||||||||
| Transportation services | 1 | 1 | ||||||||
| Other services | 1 | 1 | ||||||||
| Total revenue | 7 897 | 867 | 2 666 | 10 262 | 523 | 108 | 7 | 22 330 | ||
| By major geographic area of customer3 | ||||||||||
| Domestic | 7 897 | 867 | 2 666 | 523 | 108 | 7 | 12 068 | |||
| Export | 10 262 | 10 262 | ||||||||
| Europe4 | 7 588 | 7 588 | ||||||||
| Asia5 | 2 421 | 2 421 | ||||||||
| Other | 253 | 253 | ||||||||
| Total revenue | 7 897 | 867 | 2 666 | 10 262 | 523 | 108 | 7 | 22 330 | ||
| By major customer industries | ||||||||||
| Public utilities | 6 599 | 2 666 | 523 | 9 788 | ||||||
| Merchants | 141 | 620 | 10 262 | 11 023 | ||||||
| Steel | 604 | 44 | 648 | |||||||
| Mining | 112 | 89 | 201 | |||||||
| Manufacturing | 201 | 19 | 220 | |||||||
| Food and beverage | 94 | 94 | ||||||||
| Cement | 110 | 110 | ||||||||
| Chemicals | 203 | 203 | ||||||||
| Other | 36 | 7 | 43 | |||||||
| Total revenue | 7 897 | 867 | 2 666 | 10 262 | 523 | 108 | 7 | 22 330 | ||
| 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. |
| Coal | Ferrous | Other | ||||||||
| Commercial | ||||||||||
| 12 months 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 revenue1 | 23 613 | 15 797 | 5 561 | 1 159 | 224 | 15 | 46 369 | |||
| Export sales allocated to selling entity2 | (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 customer3 | ||||||||||
| Domestic | 15 992 | 2 028 | 5 561 | 1 159 | 224 | 14 | 24 978 | |||
| Export | 21 390 | 1 | 21 391 | |||||||
| Europe4 | 16 984 | 16 984 | ||||||||
| Asia5 | 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
| 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
|
| Raw materials and consumables1 | (2 510) | (3 380) | (7 620) |
|---|---|---|---|
| Staff costs | (2 908) | (2 853) | (5 862) |
| Royalties | (684) | (745) | (1 821) |
| Contract mining | (618) | (441) | (812) |
| Repairs and maintenance | (1 422) | (1 341) | (2 785) |
| Railage and transport | (1 620) | (1 161) | (3 019) |
| Legal and professional fees | (152) | (180) | (387) |
| Movement in provisions (note 18) | 223 | (37) | (474) |
| Depreciation and amortisation | (1 332) | (1 319) | (2 681) |
| – Depreciation of property, plant and equipment | (1 222) | (1 206) | (2 457) |
| – Depreciation of right-of-use assets | (27) | (30) | (58) |
| – Amortisation of intangible assets | (83) | (83) | (166) |
| Hedge ineffectiveness on cash flow hedges (note 20.2) | (8) | (3) | (13) |
| Net losses on disposal of property, plant and equipment | (11) | (88) | (97) |
| Net realised and unrealised currency exchange differences | 255 | 523 | 777 |
| Loss on dilution of investment in associate | (2) | ||
| Expected credit losses | (5) | (78) | (79) |
| 1 | Includes coal buy-ins from Mafube of R891 million (30 June 2022: R1 839 million; 31 December 2022: R4 374 million). |
9. CASH GENERATED BY OPERATIONS
| 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
|
| Net operating profit | 6 317 | 9 196 | 16 220 |
|---|---|---|---|
| Non-cash movements: | |||
| Depreciation and amortisation | 1 332 | 1 319 | 2 681 |
| ECLs on financial assets at amortised cost | 5 | 78 | 79 |
| Write-off of trade and other receivables and ESD loans | 2 | 4 | |
| Write-off of other assets | 9 | ||
| Movement in provisions | (223) | 37 | 474 |
| Movement in retirement employee obligation | 6 | 6 | 9 |
| Net currency exchange differences | (74) | (625) | 32 |
| Fair value adjustments on financial instruments | (145) | 46 | (51) |
| Gain on termination of lease | (1) | (3) | |
| Loss on termination of right-of-use asset | 1 | ||
| Net losses on disposal of property, plant and equipment | 11 | 88 | 97 |
| Loss on disposal of subsidiary | 1 | ||
| Loss on dilution of investment in associate | 2 | ||
| Indemnification asset movement | (5) | ||
| Share-based payment expense | 111 | 111 | 207 |
| Hedge ineffectiveness on cash flow hedges | 8 | 3 | 13 |
| Translation of net investment in foreign operations | (8) | (8) | |
| Translation of foreign currency items | (139) | 411 | (351) |
| Amortisation of transaction costs prepaid | 4 | 4 | 4 |
| Non-cash recoveries | 35 | (2) | (194) |
| Non-cash deposit facilities | (373) | ||
| Other non-cash movements | 20 | 4 | 5 |
| Cash generated from operations before working capital movements | 6 904 | 10 669 | 19 217 |
| Working capital movements | |||
| (Increase)/decrease in inventories | (97) | (76) | 1 |
| Decrease/(increase) in trade and other receivables | 482 | (1 205) | (1 312) |
| (Decrease)/increase in trade and other payables | (1 009) | 57 | 999 |
| Utilisation of provisions | (28) | (12) | (42) |
| Cash generated by operations | 6 252 | 9 433 | 18 863 |
10. NET FINANCING INCOME/(COSTS)
| 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
||||
| Finance income | 678 | 206 | 694 | |||
|---|---|---|---|---|---|---|
| Interest income | 679 | 203 | 692 | |||
| Reimbursement of interest income on environmental rehabilitation funds | (4) | (2) | (6) | |||
| Finance lease interest income | 3 | 4 | 7 | |||
| Commitment fee income | 1 | 1 | ||||
| Finance costs | (601) | (472) | (1 052) | |||
| Interest expense | (481) | (368) | (783) | |||
| Net fair value gain/(loss) on interest rate swaps designated as cash flow hedges recycled from OCI: | 14 | (64) | (97) | |||
| – Realised fair value loss | (29) | (97) | (163) | |||
| – Unrealised fair value gain | 43 | 33 | 66 | |||
| Unwinding of discount rate on rehabilitation costs | (121) | (109) | (228) | |||
| Recovery of unwinding of discount rate on rehabilitation costs | 14 | 15 | 30 | |||
| Interest expense on lease liabilities | (24) | (25) | (50) | |||
| Amortisation of transaction costs | (3) | (3) | (6) | |||
| Borrowing costs capitalised1 | 82 | 82 | ||||
| Total net financing income/(costs) | 77 | (266) | (358) | |||
| 1 Borrowing costs capitalisation rate (%) | 6.09 | 6.09 |
11. SHARE OF INCOME OF EQUITY-ACCOUNTED INVESTMENTS
| 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
|
| Associates | 2 889 | 3 397 | 4 575 |
|---|---|---|---|
| SIOC | 2 631 | 3 130 | 4 077 |
| RBCT | 2 | (10) | |
| Black Mountain | 256 | 299 | 578 |
| LightApp | (32) | (70) | |
| Joint ventures | 275 | 756 | 1 902 |
| Mafube | 275 | 756 | 1 902 |
| Share of income of equity-accounted investments | 3 164 | 4 153 | 6 477 |
12. CAPITAL SPEND AND CAPITAL COMMITMENTS
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Capital spend | |||
| To maintain operations | 788 | 710 | 1 401 |
| To expand operations | 13 | 34 | 251 |
| Total capital spend on property, plant and equipment | 801 | 744 | 1 652 |
| Capital commitments | |||
| Contracted | 3 852 | 2 184 | 3 749 |
| – Contracted for the group (owner-controlled) | 1 588 | 484 | 1 614 |
| – Share of capital comitments of associates1 | 2 168 | 1 613 | 2 040 |
| – Share of capital commitments of joint ventures2 | 96 | 87 | 95 |
| Authorised, but not contracted (owner-controlled) | 1 030 | 1 191 | 2 322 |
| 1 | 31 December 2022 has been represented to include an amount of R1 173 million relating to Black Mountain. |
| 2 | The share of capital commitments of equity-accounted investment 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 were previously not included in the aggregate amounts disclosed. |
13. EQUITY-ACCOUNTED INVESTMENTS
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Associates | 16 771 | 16 404 | 15 061 |
|---|---|---|---|
| SIOC | 12 559 | 12 572 | 11 104 |
| RBCT | 2 025 | 2 033 | 2 024 |
| Black Mountain | 2 187 | 1 708 | 1 933 |
| LightApp1 | 91 | ||
| Joint ventures | 2 845 | 1 818 | 2 999 |
| Mafube | 2 845 | 1 818 | 2 999 |
| Total net carrying value of equity-accounted investments | 19 616 | 18 222 | 18 060 |
| 1 | On 31 December 2022, the investment in LightApp was impaired to nil. |
14. OTHER ASSETS
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Non-current | 731 | 552 | 770 |
|---|---|---|---|
| Reimbursements1 | 577 | 400 | 605 |
| Biological assets | 36 | 23 | 38 |
| Lease receivables | 33 | 42 | 38 |
| Other | 85 | 87 | 89 |
| Current | 290 | 346 | 572 |
| VAT | 8 | 27 | 31 |
| Diesel rebates | 115 | 108 | 100 |
| Royalties | 99 | 89 | 95 |
| Prepayments | 21 | 35 | 283 |
| Lease receivables | 9 | 8 | 8 |
| Other | 38 | 79 | 55 |
| Total other assets | 1 021 | 898 | 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. |
15. INTEREST-BEARING BORROWINGS
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Non-current1 | 7 386 | 8 940 | 8 378 |
|---|---|---|---|
| Loan facility | 3 168 | 3 838 | 3 391 |
| Project financing2 | 4 218 | 4 459 | 4 344 |
| Bonds3 | 643 | 643 | |
| Current1 | 1 398 | 674 | 715 |
| Loan facility | 510 | 494 | 502 |
| Project financing2 | 242 | 178 | 210 |
| Bonds3 | 646 | 2 | 3 |
| Total interest-bearing borrowings | 8 784 | 9 614 | 9 093 |
| Summary of interest-bearing borrowings by period of redemption: | |||
| Less than six months | 407 | 359 | 377 |
| Six to 12 months | 991 | 315 | 338 |
| Between one and two years | 756 | 1 329 | 1 361 |
| Between two and three years | 3 115 | 756 | 795 |
| Between three and four years | 501 | 3 340 | 2 947 |
| Between four and five years | 614 | 501 | 554 |
| Over five years | 2 400 | 3 014 | 2 721 |
| Total interest-bearing borrowings | 8 784 | 9 614 | 9 093 |
| 1 Reduced by the amortisation of transaction costs: | |||
| – Non-current | (7) | (12) | (9) |
| – Current | (5) | (6) | (5) |
| 2 Interest-bearing borrowings relating to Cennergi. | |||
| 3 The R643 million senior unsecured floating rate note will mature in June 2024. | |||
| Overdraft | |||
| Bank overdraft | 144 | 6 |
The bank overdraft is repayable on demand. Interest is based on current South African money market rates.
Refer note 17 for the amounts repaid 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 30 June 2023:
| Loan facility | |||
| Bullet term loan |
Amortised term loan |
Revolving credit facility |
|
| Aggregate nominal amount (Rm) | 2 500 | 1 125 | 3 250 |
|---|---|---|---|
| Undrawn portion (Rm) | nil | nil | 3 250 |
| Issue date | 26 April 2021 | 26 April 2021 | 26 April 2021 |
| Maturity date | 26 April 2026 | 26 April 2026 | 26 April 2026 |
| Capital payments | The total outstanding amount is payable on final maturity date | Repay each loan in full in equal consecutive semi-annual instalments on the last business day of April and October of each year | The total outstanding amount is payable on final maturity date |
| Duration (months) | 60 | 60 | 60 |
| Secured or unsecured | Unsecured | Unsecured | Unsecured |
| Interest | |||
| Interest payment basis | Floating rate | Floating rate | Floating rate |
| Interest payment period | Three months | Three months | Monthly |
| Interest rate | |||
| – Base rate | 3-month JIBAR | 3-month JIBAR | 1-month JIBAR |
| – Margin | 240 basis points (2.40%) | 230 basis points (2.30%) | 265 basis points (2.65%) |
| Effective interest rates for the transaction costs | 0.11% | 0.12% | N/A |
| Project financing | |||
| Tsitsikamma SPV loan facility |
Amakhala SPV loan facilities |
Amakhala SPV loan facilities |
|
| Remaining nominal amount outstanding (Rm) | 1 758 | 2 563 | 138 |
|---|---|---|---|
| Undrawn portion (Rm) | 148 | 273 | nil |
| Debt assumed date | 1 April 2020 | 1 April 2020 | 1 April 2020 |
| Maturity date | 31 December 2030 | 30 June 2031 | 30 June 2031 |
| Capital payments | Semi-annual instalments ranging incrementally over the term from 0.18% to 10.65% of the nominal amount | Semi-annual instalments ranging incrementally over the term from 0.18% to 10.65% of the nominal amount | Semi-annual instalments ranging incrementally overthe term from 0.18% to10.65% of thenominal amount |
| Duration (months) | 129 | 135 | 135 |
| Secured or unsecured1 | Secured | Secured | Secured |
| Interest | |||
| Interest payment basis | Floating rate2 | Floating rate2 | Fixed rate3 |
| Interest payment period | Semi-annual | Semi-annual | Semi-annual |
| Interest rate | |||
| – Base rate | 3-month JIBAR | 3-month JIBAR | 9.46% up to 30 June 2026, thereafter 3-month JIBAR |
| – Margin/all in margin range | 277 basis points (2.77%) |
371 to 682 basis points (3.71% to 6.82%) |
360 to 670 basis points (3.60% to 6.70%) |
| 1 | Security held over the assets and share capital of Tsitsikamma SPV and Amakhala SPV respectively. |
| 2 | Interest payments are hedged from a floating rate to a fixed rate (refer note 20.2). |
| 3 | The facility will become a floating rate facility from 30 June 2026. |
| DMTN Programme (bonds) | |
| R643 million senior unsecured floating rate note |
|
| Aggregate nominal amount (Rm) | 643 |
|---|---|
| Issue date or draw down date | 13 June 2019 |
| Maturity date | 13 June 2024 |
| Capital payments | No fixed or determined payments, the total outstanding amount is payable on final maturity date |
| Duration (months) | 60 |
| Secured or unsecured | Unsecured |
| Interest | |
| Interest payment basis | Floating rate |
| Interest payment period | Three months |
| Interest rate | |
| – Base rate | 3-month JIBAR |
| – Margin | 189 basis points (1.89%) |
16. LEASE LIABILITIES
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Non-current | 419 | 452 | 438 |
|---|---|---|---|
| Current | 45 | 37 | 40 |
| Total lease liabilities | 464 | 489 | 478 |
| Summary of lease liabilities by period of redemption: | |||
| Less than six months | 21 | 16 | 19 |
| Six to 12 months | 24 | 21 | 21 |
| Between one and two years | 56 | 46 | 51 |
| Between two and three years | 69 | 57 | 62 |
| Between three and four years | 73 | 60 | 66 |
| Between four and five years | 89 | 73 | 81 |
| Over five years | 132 | 216 | 178 |
| Total lease liabilities | 464 | 489 | 478 |
| Analysis of movement in lease liabilities | |||
| At beginning of the period | 478 | 504 | 504 |
| Lease terminations | (3) | ||
| Lease remeasurement adjustments | 6 | 3 | 10 |
| Lease modification adjustments | (2) | ||
| Interest accrued | 1 | ||
| Capital repayments | (20) | (16) | (34) |
| – Lease payments | (44) | (41) | (83) |
| – Interest charges | 24 | 25 | 49 |
| At end of the period | 464 | 489 | 478 |
| The lease liabilities relate to the right-of-use assets. Interest is based on incremental borrowing rates ranging between 8.97% and 10.43% (30 June 2022: 6.09% and 10.43%; 31 December 2022: 8.97% and 10.43%). |
17. NET CASH/(DEBT)
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Net cash is presented by the following items on the statement of financial position: | |||
| Non-current interest-bearing debt | (7 805) | (9 392) | (8 816) |
| Interest-bearing borrowings | (7 386) | (8 940) | (8 378) |
| Lease liabilities | (419) | (452) | (438) |
| Current interest-bearing debt | (1 443) | (711) | (755) |
| Interest-bearing borrowings | (1 398) | (674) | (715) |
| Lease liabilities | (45) | (37) | (40) |
| Net cash and cash equivalents | 16 473 | 11 235 | 14 812 |
| Cash and cash equivalents | 16 617 | 11 241 | 14 812 |
| Overdraft | (144) | (6) | |
| Total net cash | 7 225 | 1 132 | 5 241 |
| Liabilities from financing activities |
|||||||||
| Cash and cash equivalents/ (overdraft) Rm |
Non-current interest- bearing debt Rm |
Current interest- bearing debt Rm |
Total Rm |
||||||
| Net debt at 31 December 2021 (Audited) | 7 041 | (9 725) | (1 034) | (3 718) | |||||
| Cash flows | 4 199 | 662 | 4 861 | ||||||
| Operating activities | 7 142 | 7 142 | |||||||
| Investing activities | 1 917 | 1 917 | |||||||
| Financing activities | (4 860) | 662 | (4 198) | ||||||
| – Interest-bearing borrowings repaid | (646) | 646 | |||||||
| – Lease liabilities paid | (16) | 16 | |||||||
| – Distributions to NCI share option holders | (1) | (1) | |||||||
| – Dividends paid to NCI of Tsitsikamma SPV | (18) | (18) | |||||||
| – Dividends paid to owners of the parent (note 6) | (2 838) | (2 838) | |||||||
| – Dividends paid to NCI BEE Parties | (950) | (950) | |||||||
| – Shares acquired in the market to settle share-based payments | (391) | (391) | |||||||
| Non-cash movements | 333 | (339) | (6) | ||||||
| Amortisation of transaction costs | (3) | (3) | |||||||
| Interest accrued | (2) | (2) | |||||||
| Lease remeasurements and modifications | (1) | (1) | |||||||
| Transfers between non-current and current liabilities | 334 | (334) | |||||||
| Translation difference on movement in cash and cash equivalents | (5) | (5) | |||||||
| Net cash at 30 June 2022 (Reviewed) | 11 235 | (9 392) | (711) | 1 132 | |||||
| Liabilities from financing activities |
|||||||||
| Cash and cash equivalents/ (overdraft) Rm |
Non-current interest- bearing debt Rm |
Current interest- bearing debt Rm |
Total Rm |
||||||
| Net cash at 30 June 2022 (Reviewed) | 11 235 | (9 392) | (711) | 1 132 | |||||
| Cash flows | 3 584 | 225 | 328 | 4 137 | |||||
| Operating activities | 7 268 | 7 268 | |||||||
| Investing activities | 2 073 | 2 073 | |||||||
| Financing activities | (5 757) | 225 | 328 | (5 204) | |||||
| – Interest-bearing borrowings repaid | (535) | 225 | 310 | ||||||
| – Lease liabilities paid | (18) | 18 | |||||||
| – Dividends paid to NCI of Tsitsikamma SPV | (19) | (19) | |||||||
| – Dividends paid to owners of the parent (note 6) | (3 848) | (3 848) | |||||||
| – Dividends paid to NCI BEE Parties | (1 287) | (1 287) | |||||||
| – Shares acquired in the market to settle share-based payments | (50) | (50) | |||||||
| Non-cash movements | 351 | (372) | (21) | ||||||
| Amortisation of transaction costs | (3) | (3) | |||||||
| Interest accrued | (1) | (11) | (12) | ||||||
| Lease remeasurements and modifications | (6) | (6) | |||||||
| Transfers between non-current and current liabilities | 358 | (358) | |||||||
| Translation difference on movement in cash and cash equivalents | (7) | (7) | |||||||
| Net cash at 31 December 2022 (Audited) | 14 812 | (8 816) | (755) | 5 241 | |||||
| Liabilities from financing activities |
|||||||||
| Cash and cash equivalents/ (overdraft) Rm |
Non-current interest- bearing debt Rm |
Current interest- bearing debt Rm |
Total Rm |
||||||
| Net cash at 31 December 2022 (Audited) | 14 812 | (8 816) | (755) | 5 241 | |||||
| Cash flows | 1 550 | 338 | 1 888 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating activities | 5 125 | 5 125 | |||||||
| Investing activities | 1 057 | 1 057 | |||||||
| Financing activities | (4 632) | 338 | (4 294) | ||||||
| – Interest-bearing borrowings repaid | (318) | 318 | |||||||
| – Lease liabilities paid | (20) | 20 | |||||||
| – Dividends paid to NCI of Tsitsikamma SPV | (13) | (13) | |||||||
| – Dividends paid to owners of the parent (note 6) | (2 744) | (2 744) | |||||||
| – Dividends paid to NCI BEE Parties | (915) | (915) | |||||||
| – Shares acquired in the market to settle share-based payments | (622) | (622) | |||||||
| Non-cash movements | 1 011 | (1 026) | (15) | ||||||
| Amortisation of transaction costs | (3) | (3) | |||||||
| Interest accrued | (6) | (6) | |||||||
| Lease remeasurements and modifications | (6) | (6) | |||||||
| Transfers between non-current and current liabilities | 1 017 | (1 017) | |||||||
| Translation difference on movement in cash and cash equivalents | 111 | 111 | |||||||
| Net cash at 30 June 2023 (Reviewed) | 16 473 | (7 805) | (1 443) | 7 225 | |||||
18. PROVISIONS
| Environmental rehabilitation | ||||||||
| Restoration Rm |
Decommis- sioning Rm |
Residual impact Rm |
Other site closure costs Rm |
Other Rm |
Total Rm |
|||
| At 30 June 2023 (Reviewed) | ||||||||
| At beginning of the period | 1 682 | 305 | 832 | 118 | 4 | 2 941 | ||
| (Reversal)/charge to operating expenses (note 8) | (169) | (64) | 3 | 7 | (223) | |||
| Unwinding of discount rate (note 10) | 87 | 17 | 12 | 5 | 121 | |||
| Capitalised to property, plant and equipment | (22) | (22) | ||||||
| Utilised during the period | (18) | (1) | (7) | (2) | (28) | |||
| Total provisions at end of the period | 1 582 | 236 | 846 | 123 | 2 | 2 789 | ||
| Non-current | 1 447 | 236 | 804 | 106 | 2 593 | |||
| Current | 135 | 42 | 17 | 2 | 196 | |||
| At 30 June 2022 (Reviewed) | ||||||||
| At beginning of the period | 1 479 | 350 | 407 | 56 | 10 | 2 302 | ||
| Charge/(reversal) to operating expenses (note 8) | 7 | (3) | 33 | 37 | ||||
| Unwinding of discount rate (note 10) | 71 | 18 | 20 | 109 | ||||
| Capitalised to property, plant and equipment | (2) | (2) | ||||||
| Utilised during the period | (5) | (1) | (6) | (12) | ||||
| Total provisions at end of the period | 1 552 | 363 | 459 | 56 | 4 | 2 434 | ||
| Non-current | 1 449 | 363 | 439 | 43 | 1 | 2 295 | ||
| Current | 103 | 20 | 13 | 3 | 139 | |||
| At 31 December 2022 (Audited) | ||||||||
| At beginning of the year | 1 479 | 350 | 407 | 56 | 10 | 2 302 | ||
| Charge/(reversal) to operating expenses (note 8) | 81 | (72) | 385 | 80 | 474 | |||
| Unwinding of discount rate (note 10) | 148 | 37 | 43 | 228 | ||||
| Capitalised to property, plant and equipment | (10) | (10) | ||||||
| Utilised during the period | (15) | (3) | (18) | (6) | (42) | |||
| Utilised but not yet paid | (11) | (11) | ||||||
| Total provisions at end of the period | 1 682 | 305 | 832 | 118 | 4 | 2 941 | ||
| Non-current | 1 565 | 305 | 800 | 92 | 2 762 | |||
| Current | 117 | 32 | 26 | 4 | 179 | |||
19. OTHER LIABILITIES
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Non-current | 26 | 25 | 26 |
|---|---|---|---|
| Income received in advance | 26 | 25 | 26 |
| Current | 744 | 771 | 770 |
| Leave pay | 251 | 234 | 234 |
| Bonuses | 218 | 318 | 362 |
| VAT | 114 | 59 | 61 |
| Carbon tax | 3 | 4 | 3 |
| Customer advance payments | 3 | ||
| Other | 158 | 156 | 107 |
| Total other liabilities | 770 | 796 | 796 |
20. FINANCIAL INSTRUMENTS
The group holds the following financial instruments:
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|||
| Non-current | |||||
| Financial assets | |||||
| Financial assets at FVOCI | 471 | 451 | 474 | ||
| Equity: unlisted – Chifeng | 471 | 451 | 474 | ||
| Financial assets at FVPL | 3 314 | 2 513 | 2 607 | ||
| Debt: unlisted – environmental rehabilitation funds | 2 308 | 2 111 | 2 187 | ||
| Debt: unlisted – portfolio investments | 433 | 402 | 420 | ||
| Debt: unlisted – deposit facilities1 | 573 | ||||
| Financial assets at amortised cost | 418 | 543 | 447 | ||
| ESD loans2 | 127 | 40 | 102 | ||
| – Gross | 168 | 83 | 108 | ||
| – Impairment allowances | (41) | (43) | (6) | ||
| Vendor finance loan3 | 150 | 300 | 173 | ||
| – Gross | 150 | 300 | 173 | ||
| Other financial assets at amortised cost | 141 | 203 | 172 | ||
| – Environmental rehabilitation funds | 103 | 96 | 99 | ||
| – Deferred pricing receivable4 | 39 | 111 | 76 | ||
| – Impairment allowances | (1) | (4) | (3) | ||
| Derivative financial assets designated as hedging instruments | 19 | 11 | 11 | ||
| Cash flow hedge derivatives: interest rate swaps5 | 19 | 11 | 11 | ||
| Financial liabilities | |||||
| Financial liabilities at amortised cost | (7 454) | (9 001) | (8 403) | ||
| Interest-bearing borrowings | (7 386) | (8 940) | (8 378) | ||
| Other payables | (68) | (61) | (25) | ||
| Derivative financial liabilities designated as hedging instruments | (60) | (136) | (112) | ||
| Cash flow hedge derivatives: interest rate swaps5 | (60) | (136) | (112) | ||
| 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 up to a maximum claim value of R1 billion per facility over the term of the contract. 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 as part of the disposal of the ECC operation. The repayment terms were revised during 2022. The loan is unsecured, repayable from 1 October 2022 and bears interest at: – Prime Rate for the period 3 September 2021 to 30 September 2024 – Prime Rate plus 1 for the period 1 October 2024 to 30 September 2025 – Prime Rate plus 2 for the period 1 October 2025 to 30 September 2026 – Prime Rate plus 3 for the period 1 October 2026 to 30 September 2027. |
| 4 | Relates to a deferred pricing adjustment which arose during 2017. The amount receivable will be settled over seven years (ending 2024) and bears interest at Prime Rate less 2%. |
| 5 | Refer note 20.2. |
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|||||
| Current | |||||||
| Financial assets | |||||||
| Financial assets at amortised cost | 21 098 | 16 579 | 19 330 | ||||
| ESD loans1 | 84 | 85 | 76 | ||||
| – Gross | 176 | 146 | 166 | ||||
| – Impairment allowances | (92) | (61) | (90) | ||||
| Vendor finance loan2 | 81 | 2 | 121 | ||||
| Other financial assets at amortised cost | 95 | 213 | 122 | ||||
| – Deferred pricing receivable3 | 73 | 68 | 70 | ||||
| – Deferred consideration receivable4 | 25 | 150 | 56 | ||||
| – Employee receivables | 4 | 4 | 4 | ||||
| – Impairment allowances | (7) | (9) | (8) | ||||
| Trade and other receivables | 4 221 | 5 038 | 4 199 | ||||
| Trade receivables | 4 143 | 4 593 | 4 124 | ||||
| – Gross | 4 166 | 4 621 | 4 150 | ||||
| – Impairment allowances | (23) | (28) | (26) | ||||
| Other receivables | 78 | 445 | 75 | ||||
| – Gross | 100 | 479 | 122 | ||||
| – Impairment allowances | (22) | (34) | (47) | ||||
| Cash and cash equivalents | 16 617 | 11 241 | 14 812 | ||||
| Financial assets at FVPL | 48 | 39 | 57 | ||||
| Derivative financial assets | 48 | 39 | 57 | ||||
| Financial liabilities | |||||||
| Financial liabilities at amortised cost | (4 057) | (3 315) | (4 055) | ||||
| Interest-bearing borrowings | (1 398) | (674) | (715) | ||||
| Trade and other payables | (2 515) | (2 635) | (3 340) | ||||
| – Trade payables | (1 464) | (1 337) | (1 559) | ||||
| – Other payables | (1 051) | (1 298) | (1 781) | ||||
| Overdraft | (144) | (6) | |||||
| Financial liabilities at FVPL | (3) | (9) | (5) | ||||
| Derivative financial liabilities | (3) | (9) | (5) | ||||
| 1 | Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme. |
| 2 | Vendor finance loan granted to Overlooked Colliery as part of the disposal of the ECC operation. The repayment terms were revised during 2022. The loan is unsecured, repayable from 1 October 2022 and bears interest at: Prime Rate for the period 3 September 2021 to 30 September 2024 Prime Rate plus 1 for the period 1 October 2024 to 30 September 2025 Prime Rate plus 2 for the period 1 October 2025 to 30 September 2026 Prime Rate plus 3 for the period 1 October 2026 to 30 September 2027. |
| 3 | Relates to a deferred pricing adjustment which arose during 2017. The amount receivable will be settled over seven years (ending 2024) and bears interest at Prime Rate less 2%. |
| 4 | Relates to deferred consideration receivable which arose on the disposal of the ECC operation. |
The carrying amounts of financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.
The group has granted the following loan commitments:
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Total loan commitments1 | 42 | 96 | |
|---|---|---|---|
| ESD applicants2 | 42 | 96 | |
| 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:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the group can access at the measurement date.
Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable.
Level 3 – Inputs that are not based on observable market data (unobservable inputs).
| At 30 June 2023 (Reviewed) | Fair value Rm |
Level 2 Rm |
Level 3 Rm |
|
| Financial assets at FVOCI | 471 | 471 | ||
|---|---|---|---|---|
| Equity: unlisted – Chifeng | 471 | 471 | ||
| Financial assets at FVPL | 3 314 | 3 314 | ||
| Non-current debt: unlisted – environmental rehabilitation funds | 2 308 | 2 308 | ||
| Non-current debt: unlisted – portfolio investments | 433 | 433 | ||
| Non-current debt: unlisted – deposit facilities | 573 | 573 | ||
| Derivative financial assets designated as hedging instruments | 19 | 19 | ||
| Non-current cash flow hedge derivatives: interest rate swaps | 19 | 19 | ||
| Derivative financial assets | 48 | 48 | ||
| Current derivative financial assets | 48 | 48 | ||
| Derivative financial liabilities designated as hedging instruments | (60) | (60) | ||
| Non-current cash flow hedge derivatives: interest rate swaps | (60) | (60) | ||
| Derivative financial liabilities | (3) | (3) | ||
| Current derivative financial liabilities | (3) | (3) | ||
| Net financial assets held at fair value | 3 789 | 3 318 | 471 |
| At 30 June 2022 (Reviewed) | Fair value Rm |
Level 2 Rm |
Level 3 Rm |
|
| Financial assets at FVOCI | 451 | 451 | ||
| Equity: unlisted – Chifeng | 451 | 451 | ||
| Financial assets at FVPL | 2 513 | 2 513 | ||
| Non-current debt: unlisted – environmental rehabilitation funds | 2 111 | 2 111 | ||
| Non-current debt: unlisted – portfolio investments | 402 | 402 | ||
| Derivative financial assets designated as hedging instruments | 11 | 11 | ||
| Non-current cash flow hedge derivatives: interest rate swaps | 11 | 11 | ||
| Derivative financial assets | 39 | 39 | ||
| Current derivative financial assets | 39 | 39 | ||
| Derivative financial liabilities designated as hedging instruments | (136) | (136) | ||
| Non-current cash flow hedge derivatives: interest rate swaps | (136) | (136) | ||
| Derivative financial liabilities | (9) | (9) | ||
| Current derivative financial liabilities | (9) | (9) | ||
| Net financial assets held at fair value | 2 869 | 2 418 | 451 |
| At 31 December 2022 (Audited) | Fair value Rm |
Level 2 Rm |
Level 3 Rm |
|
| Financial assets at FVOCI | 474 | 474 | ||
| Equity: unlisted – Chifeng | 474 | 474 | ||
| Financial assets at FVPL | 2 607 | 2 607 | ||
| Non-current debt: unlisted – environmental rehabilitation funds | 2 187 | 2 187 | ||
| Non-current debt: unlisted – portfolio investments | 420 | 420 | ||
| Derivative financial assets designated as hedging instruments | 11 | 11 | ||
| Non-current cash flow hedge derivatives: interest rate swaps | 11 | 11 | ||
| Derivative financial assets | 57 | 57 | ||
| Current derivative financial assets | 57 | 57 | ||
| Derivative financial liabilities designated as hedging instruments | (112) | (112) | ||
| Non-current cash flow hedge derivatives: interest rate swaps | (112) | (112) | ||
| Derivative financial liabilities | (5) | (5) | ||
| Current derivative financial liabilities | (5) | (5) | ||
| Net financial assets held at fair value | 3 032 | 2 558 | 474 |
Reconciliation of financial assets within Level 3 of the hierarchy:
| Chifeng Rm |
|
| At 31 December 2021 (Audited) | 446 |
| Movement during the period | |
| Gains recognised in OCI (pre-tax effect)1 | 5 |
| At 30 June 2022 (Reviewed) | 451 |
| Movement during the period | |
| Gains recognised in OCI (pre-tax effect)1 | 23 |
| At 31 December 2022 (Audited) | 474 |
| Movement during the period | |
| Losses recognised in OCI (pre-tax effect)1 | (3) |
| At 30 June 2023 (Reviewed) | 471 |
| 1 | Tax on Chifeng amounts to R0.66 million (30 June 2022: R12.76 million; 2H22: R4.85 million). |
Transfers
The group recognises transfers between levels of the fair value hierarchy 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 applied
The fair value computations of investments are performed by the group's corporate 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 the group's reporting governance.
Current derivative financial instruments
Level 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 facilities
Level 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.
Interest rate swaps
Level 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.
Valuation techniques used in the determination of fair values within Level 3 of the hierarchy
Chifeng 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.
20.2 Hedge accounting: Cash flow hedges
The following tables detail the financial position and performance of the interest rate swaps outstanding at the end of the reporting period and their related hedged items.
20.2.1 Financial performance effects of hedging recognised during the period:
| Line item in which recognised | 6 months ended 30 June 2023 Reviewed Rm |
6 months ended 30 June 2022 Reviewed Rm |
12 months ended 31 December 2022 Audited Rm |
|
| Fair value losses resulting from hedge ineffectiveness | Operating expenses | (8) | (3) | (13) |
|---|---|---|---|---|
| Fair value gains/(losses) on settlement of underlying swaps (reclassified) | Finance costs | 14 | (64) | (97) |
20.2.2 Hedging reserve
The hedging reserve relates to the fair value movements on cash flow hedges of interest rate swaps. The reserve is included within the financial instruments revaluation reserve on the condensed group statement of changes in equity, which includes the group's share of movements in its equity-accounted investees' hedging reserves.
Financial instruments revaluation reserve composition:
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Cash flow hedge reserve – interest rate swaps | 82 | 62 | 64 |
|---|---|---|---|
| – Gross | 112 | 85 | 88 |
| – Deferred tax thereon | (30) | (23) | (24) |
| Balance of share of movements of equity-accounted investees | 59 | 5 | |
| Balance of NCI share of financial instruments revaluation reserve | (54) | (62) | (50) |
| Financial instruments revaluation reserve | 28 | 59 | 19 |
Movement analysis of cash flow hedge reserve – interest rate swaps:
| Gross Rm |
Tax Rm |
Net Rm |
|
| At 31 December 2021 (Audited) | (165) | 46 | (119) |
| Movement during the period | |||
| Change in fair value of interest rate swaps recognised in OCI | 186 | (52) | 134 |
| Reclassified from OCI to profit or loss in finance costs | 64 | (17) | 47 |
| At 30 June 2022 (Reviewed) | 85 | (23) | 62 |
| Movement during the period | |||
| Change in fair value of interest rate swaps recognised in OCI | (30) | 9 | (21) |
| Reclassified from OCI to profit or loss in finance costs | 33 | (10) | 23 |
| At 31 December 2022 (Audited) | 88 | (24) | 64 |
| Movement during the period | |||
| Change in fair value of interest rate swaps recognised in OCI | 38 | (10) | 28 |
| Reclassified from OCI to profit or loss in finance costs | (14) | 4 | (10) |
| At 30 June 2023 (Reviewed) | 112 | (30) | 82 |
20.2.3 Hedging instruments
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Hedged items: Cash flows on floating rate project financing linked to JIBAR | |||
| Nominal amount | 3 618 | 3 758 | 3 691 |
| Gross carrying amount in cash flow hedge reserve | 112 | 85 | 88 |
| Cumulative gain in fair value used for calculating hedge ineffectiveness | 123 | 85 | 88 |
| Hedging instruments: Outstanding receive floating, pay fixed contracts | |||
| Nominal amount | 3 618 | 3 758 | 3 691 |
| Carrying amount: | (41) | (125) | (101) |
| – Non-current financial assets | 19 | 11 | 11 |
| – Non-current financial liabilities | (60) | (136) | (112) |
| Cumulative loss in fair value used for calculating hedge ineffectiveness | (100) | (117) | (130) |
The interest rate swaps settle on a semi-annual basis. The group settles the difference between the fixed and floating interest rate (3-month JIBAR) on a net basis. The 3-month JIBAR is swapped out to a fixed rate as follows:
- Tsitsikamma SPV floating rate facility: 9.55% up to 30 June 2030. The swaps cover 60% of the remaining loan notional value.
- Amakhala SPV floating rate facilities:
- IFC facilities: 8.42% up to 30 June 2031. The swaps cover 100% of the remaining loans notional values.
- A and C banking facilities: 9.46% up to 30 June 2026. The swaps cover 100% of the remaining loans notional values.
The interest rate swaps require settlement of net interest receivable or payable every six months.
The settlement dates coincide with the dates on which interest is payable on the underlying debt.
21. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
21.1 Contingent liabilities
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Pending litigation and other claims1 | 115 | 313 | |
|---|---|---|---|
| Operational guarantees2 | 4 236 | 3 834 | 3 834 |
| – Financial guarantees ceded to the DMRE | 3 552 | 3 606 | 3 606 |
| – Other financial guarantees3 | 684 | 228 | 228 |
| Total contingent liabilities | 4 351 | 3 834 | 4 147 |
| 1 | Relates to commercial disputes of which the outcome is uncertain. |
| 2 | Includes guarantees to banks and other institutions in the normal course of business from which it is anticipated that no material liabilities will arise. |
| 3 | 30 June 2023 includes a guarantee of R455 million in relation to the LSP project. |
The timing and occurrence of any possible outflows of the contingent liabilities are uncertain.
Share of equity-accounted investments' contingent liabilities
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Share of contingent liabilities of equity-accounted investments | 1 423 | 1 504 | 1 354 |
|---|
21.2 Contingent assets
| At 30 June 2023 Reviewed Rm |
At 30 June 2022 Reviewed Rm |
At 31 December 2022 Audited Rm |
|
| Back-to-back guarantees | 134 | 134 | 134 |
|---|---|---|---|
| Other1 | 64 | 75 | 117 |
| Total contingent assets | 198 | 209 | 251 |
| 1 | Relates to performance guarantees issued to Exxaro in terms of various capital project agreements. (30 June 2022: Guarantees issued to Exxaro which arose on the divestment of the ECC operation in terms of the SPA; 31 December 2022: The ECC related guarantees were cancelled during the second half of 2022). |
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.
23. GOING CONCERN
Based on the latest results for the six-month period ended 30 June 2023, the latest board-approved budget for 2023, 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 interim dividend are provided in note 6.
Subsequent to 30 June 2023, the following notable event occurred:
On 29 June 2023 financial close for the LSP project was achieved. On 24 July 2023 the deferred conditions precedent for utilisation were met making the facility available for utilisation. The first utilisation occurred on 31 July 2023. The project financing has no 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 the date of this report, not otherwise dealt with in this report.
25. EXTERNAL AUDITORS’ REVIEW REPORT
The company's external auditor, KPMG Inc., has issued their unmodified review report on the reviewed condensed group interim financial statements for the six-month period ended 30 June 2023 (as set out from the Condensed group statement of comprehensive income to Notes to the reviewed condensed group interim financial statements). 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 interim financial statements is included in the Independent auditor's review report on interim financial statements.
26. KEY MEASURES1
| At 30 June 2023 |
At 30 June 2022 |
At 31 December 2022 |
|
| Closing share price (rand per share) | 164.27 | 198.18 | 217.31 |
|---|---|---|---|
| Market capitalisation (Rbn) | 57.38 | 69.23 | 75.91 |
| Average rand/US$ exchange rate (for the period ended) | 18.21 | 15.40 | 16.37 |
| Closing rand/US$ spot exchange rate | 18.75 | 16.24 | 16.98 |
| 1 Non-IFRS numbers. |