Notes to the condensed group interim financial statements

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 2025 (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.

	Gross  Rm	Tax  Rm	NCI  Rm		Net  Rm
6 months ended 30 June 2025 (Reviewed)
Profit attributable to owners of the parent					4 139
Adjusted for:	27	(7)	(5)		15
– IAS 16 Net losses on disposal of property, plant and equipment	16	(4)	(3)		9
– IAS 28 Share of equity-accounted investments' separately identifiable remeasurements	11	(3)	(2)		6
Headline earnings					4 154
6 months ended 30 June 2024 (Reviewed)
Profit attributable to owners of the parent					3 686
Adjusted for:	21	(6)	(4)		11
– IAS 16 Net losses on disposal of property, plant and equipment	9	(3)	(2)		4
– IAS 38 Losses on disposal of intangible assets	11	(3)	(2)		6
– IAS 28 Share of equity-accounted investments' separately identifiable remeasurements	1				1
Headline earnings					3 697

	Gross  Rm	Tax  Rm	NCI  Rm		Net  Rm
12 months ended 31 December 2024 (Audited)
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 remeasurement1	(799)	214	135		(450)
Headline earnings					7 298

1	Includes Exxaro's share of SIOC's impairment reversal recognised 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.

	6 months ended 30 June 2025 Reviewed cents	6 months ended 30 June 2024 Reviewed cents	12 months ended 31 December 2024 Audited cents
Headline earnings per share
Basic1	1 724	1 528	3 016
Diluted2	1 724	1 528	3 016
1 Determined using WANOS (millions of shares):	241	242	242
2 Determined using diluted WANOS (millions of shares):	241	242	242

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.

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 and is the measure applied by management to monitor performance at a consolidated level as management believes that this measure is relevant to an understanding of the group's financial performance. 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 included 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.

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.

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 2024: 50%; 31 December 2024: 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 2024: 10.26%; 31 December 2024: 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 as well as LSP and the Karreebosch project which are 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% (30 June 2024: 20.62%; 31 December 2024: 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 2024: 26%; 31 December 2024: 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
6 months ended 30 June 2025 (Reviewed)	Waterberg Rm	Mpumalanga Rm	Tied Rm	Other Rm	Energy Rm
External revenue (note 7)	11 753	4 511	3 549		675
Segmental net operating profit/(loss)	4 478	(67)	95	(146)	236
Add back:
Depreciation and amortisation (note 8)	877	295		9	199
Depreciation capitalised to property, plant and equipment	(5)				(3)
Net losses on disposal of property, plant and equipment (note 8)	14	2
EBITDA	5 364	230	95	(137)	432
Other key items:
Raw materials and consumables (note 8)	(1 017)	(1 320)	(331)
Staff costs (note 8)	(1 499)	(222)	(988)	(228)	(76)
Royalties1 (note 8)	(598)	(26)	(19)	94
Contract mining (note 8)	(66)	(797)	(33)
Repairs and maintenance (note 8)	(1 030)	(152)	(578)	(2)	(6)
Railage and transport (note 8)	(1 112)	(1 182)	(36)
Movement in provisions (note 8)	(11)	(45)	(8)	(21)	(1)
External finance income (note 10)	9	5		20	30
External finance costs (note 10)	(27)	(96)		(45)	(235)
Share of income/(loss) of equity-accounted investments (note 11)		45		(8)
Income tax (expense)/benefit	(1 162)	40	(28)	(19)	(36)
Cash generated by/(utilised in) operations (note 9)	5 230	100	294	(386)	232
Capital spend on property, plant and equipment (note 12)	(761)	(105)			(1 114)
At 30 June 2025 (Reviewed)
Segmental assets and liabilities
Deferred tax2					118
Equity-accounted investments (note 13)		2 067		1 998
External assets	32 163	5 487	1 471	3 353	10 410
Total assets	32 163	7 554	1 471	5 351	10 528
External liabilities	2 025	2 712	1 362	1 645	6 841
Deferred tax2	7 490	611	(47)	59	998
Total liabilities	9 515	3 323	1 315	1 704	7 839

1	Calculated per legal entity.
2	Offset per legal entity and tax authority.

 

	Ferrous			Other
6 months ended 30 June 2025 (Reviewed)	Alloys  Rm	Other  ferrous  Rm		Base  metals  Rm	Other  Rm	Total  Rm
External revenue (note 7)	86				5	20 579
Segmental net operating profit/(loss)	(5)				(459)	4 132
Add back:
Depreciation and amortisation (note 8)	3				54	1 437
Depreciation capitalised to property, plant and equipment						(8)
Net losses on disposal of property, plant and equipment (note 8)						16
EBITDA	(2)				(405)	5 577
Other key items:
Raw materials and consumables (note 8)	(15)				(11)	(2 694)
Staff costs (note 8)	(35)				(552)	(3 600)
Royalties1 (note 8)						(549)
Contract mining (note 8)						(896)
Repairs and maintenance (note 8)	(4)				(7)	(1 779)
Railage and transport (note 8)	(1)				(1)	(2 332)
Movement in provisions (note 8)					1	(85)
External finance income (note 10)					836	900
External finance costs (note 10)	(1)				(163)	(567)
Share of income/(loss) of equity-accounted investments (note 11)		1 936		288		2 261
Income tax (expense)/benefit	3				(142)	(1 344)
Cash generated by/(utilised in) operations (note 9)	32				(197)	5 305
Capital spend on property, plant and equipment (note 12)					(6)	(1 986)
At 30 June 2025 (Reviewed)
Segmental assets and liabilities
Deferred tax2	27				177	322
Equity-accounted investments (note 13)		14 468		2 625		21 158
External assets	189	25			23 158	76 256
Total assets	216	14 493		2 625	23 335	97 736
External liabilities	36				3 514	18 135
Deferred tax2					(18)	9 093
Total liabilities	36				3 496	27 228

1	Calculated per legal entity.
2	Offset per legal entity and tax authority.

 

	Coal
	Commercial
6 months ended 30 June 2024 (Reviewed)	Waterberg  Rm	Mpumalanga  Rm	Tied  Rm	Other  Rm	Energy  Rm
External revenue (note 7)	10 657	4 636	2 958		652
Segmental net operating profit/(loss)	4 321	(344)	93	(152)	274
Add back:
Depreciation and amortisation (note 8)	824	301		8	196
Net losses on disposal of property, plant and equipment (note 8)	5	4
Losses on disposal of intangible assets (note 8)
EBITDA	5 150	(39)	93	(144)	470
Other key items:
Raw materials and consumables (note 8)	(1 066)	(1 369)	(264)	(2)
Staff costs (note 8)	(1 391)	(212)	(1 027)	(216)	(44)
Royalties1 (note 8)	(553)	(30)	(26)	76
Contract mining (note 8)	(40)	(923)
Repairs and maintenance (note 8)	(990)	(165)	(449)		(6)
Railage and transport (note 8)	(811)	(1 433)
Movement in provisions (note 8)	101	(127)	12	13
External finance income (note 10)	10	19		17	30
External finance costs (note 10)	(26)	(61)		(60)	(253)
Share of income/(loss) of equity-accounted investments (note 11)		60		3
Income tax (expense)/benefit	(1 113)	105	(24)		(31)
Cash generated by/(utilised in) operations (note 9)	4 828	146	124	(588)	453
Capital spend on property, plant and equipment (note 12)	(968)	(76)			(6)
At 30 June 2024 (Reviewed)
Segmental assets and liabilities
Deferred tax2					15
Equity-accounted investments (note 13)		1 977		2 017
External assets	31 936	5 918	1 484	2 470	9 089
Total assets	31 936	7 895	1 484	4 487	9 104
External liabilities	2 034	2 488	1 356	1 227	5 371
Deferred tax2	7 451	759	(63)	2	914
Total liabilities	9 485	3 247	1 293	1 229	6 285

1	Calculated per legal entity.
2	Offset per legal entity and tax authority.

 

	Ferrous			Other
6 months ended 30 June 2024 (Reviewed)	Alloys  Rm	Other  ferrous  Rm		Base  metals  Rm	Other  Rm	Total  Rm
External revenue (note 7)	75				3	18 981
Segmental net operating profit/(loss)	(14)				(484)	3 694
Add back:
Depreciation and amortisation (note 8)	2				73	1 404
Net losses on disposal of property, plant and equipment (note 8)						9
Losses on disposal of intangible assets (note 8)					11	11
EBITDA	(12)				(400)	5 118
Other key items:
Raw materials and consumables (note 8)	(20)				(7)	(2 728)
Staff costs (note 8)	(32)				(443)	(3 365)
Royalties1 (note 8)						(533)
Contract mining (note 8)						(963)
Repairs and maintenance (note 8)	(3)				(12)	(1 625)
Railage and transport (note 8)	(1)				(1)	(2 246)
Movement in provisions (note 8)					1
External finance income (note 10)					873	949
External finance costs (note 10)	(1)				(231)	(632)
Share of income/(loss) of equity-accounted investments (note 11)		1 936		(83)		1 916
Income tax (expense)/benefit	5				(67)	(1 125)
Cash generated by/(utilised in) operations (note 9)	(4)				(156)	4 803
Capital spend on property, plant and equipment (note 12)					(11)	(1 061)
At 30 June 2024 (Reviewed)
Segmental assets and liabilities
Deferred tax2	14				196	225
Equity-accounted investments (note 13)		13 861		2 182		20 037
External assets	278	25			19 798	70 998
Total assets	292	13 886		2 182	19 994	91 260
External liabilities	23				3 873	16 372
Deferred tax2					(22)	9 041
Total liabilities	23				3 851	25 413

1	Calculated per legal entity.
2	Offset per legal entity and tax authority.

 

	Coal
	Commercial
12 months ended 31 December 2024 (Audited)	Waterberg  Rm	Mpumalanga  Rm	Tied  Rm	Other  Rm	Energy  Rm
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	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)
Royalties1 (note 8)	(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 (Audited)
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
12 months ended 31 December 2024 (Audited)	Alloys Rm	Other ferrous Rm		Base metals Rm	Other Rm	Total Rm
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	(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)
Royalties1 (note 8)						(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 (Audited)
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.

An interim cash dividend, number 45, for 2025 of 843 cents per share, was approved by the board of directors on 19 August 2025. The dividend is payable on 6 October 2025 to shareholders who will be on the register on 3 October 2025. This interim dividend, amounting to approximately R1 991 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 2025.

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 674.40000 cents per share.

The number of ordinary shares in issue at the date of this declaration is 345 242 092 (after a further cancellation of 1 468 000 ordinary shares on 5 August 2025). Exxaro company’s tax reference number is 9218/098/14/4.

		6 months ended 30 June 2025 Reviewed Rm	6 months ended 30 June 2024 Reviewed Rm	12 months ended 31 December 2024 Audited Rm
Dividends paid1		2 092	3 821	5 744
Final dividend2		2 092	2 439	2 439
Special dividend			1 382	1 382
Interim dividend				1 923
		cents	cents	cents
Dividend paid per share		866	1 582	2 378
Final dividend2		866	1 010	1 010
Special dividend			572	572
Interim dividend				796

1	Paid to external shareholders.
2	2025: Declared on 11 March 2025 and paid on 12 May 2025.

		At 30 June 2025 Reviewed	At 30 June 2024 Reviewed	At 31 December 2024 Audited
Issued share capital (number of shares)1		346 710 092	349 305 092	349 305 092
WANOS		241 171 821	241 534 848	241 534 848
Diluted WANOS		241 171 821	241 534 848	241 534 848

1	Includes treasury shares of 107 770 244 (30 June 2024: 107 770 244; 31 December 2024: 107 770 244).

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					Energy		Ferrous		Other
	Commercial
6 months ended 30 June 2025 (Reviewed)	Waterberg  Rm	Mpumalanga  Rm	Tied  Rm	Other  Rm		Energy  Rm		Alloys  Rm		Other  Rm		Total  Rm
Segmental revenue reconciliation
Segmental revenue1	11 753	4 511	3 549			675		86		5		20 579
Local sales allocated to selling entity2		(40)	40
Export sales allocated to selling entity3	(1 964)	(3 534)		5 498
Total revenue	9 789	937	3 589	5 498		675		86		5		20 579
By timing and major type of goods and services
Revenue recognised at a point in time	9 789	937	2 837	5 498				86		3		19 150
Coal	9 789	937	2 837	5 498								19 061
Ferrosilicon								86				86
Biological goods										3		3
Revenue recognised over time			752			675				2		1 429
Renewable energy						675						675
Stock yard management services			140									140
Project engineering services			612									612
Other services										2		2
Total revenue	9 789	937	3 589	5 498		675		86		5		20 579
By major geographic area of customer4
Domestic	9 789	937	3 589			675		86		5		15 081
Export				5 498								5 498
Europe5				1 633								1 633
Asia6				3 193								3 193
Other				672								672
Total revenue	9 789	937	3 589	5 498		675		86		5		20 579
By major customer industries
Public utilities	8 747		3 589	270		675						13 281
Merchants	136	613		4 802								5 551
Steel	481	16										497
Mining	28	265						56		1		350
Manufacturing	45							28				73
Food and beverage	148											148
Cement	137	39		277								453
Chemicals		3										3
Other	67	1		149				2		4		223
Total revenue	9 789	937	3 589	5 498		675		86		5		20 579

1	Coal segmental revenue is based on the origin of coal production.
2	Relates to product sold to tied mine customer.
3	Relates to product 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						Energy		Ferrous		Other
	Commercial
6 months ended 30 June 2024 (Reviewed)		Waterberg Rm	Mpumalanga Rm	Tied Rm	Other Rm		Energy Rm		Alloys Rm		Other Rm		Total Rm
Segmental revenue reconciliation
Segmental revenue1		10 657	4 636	2 958			652		75		3		18 981
Export sales allocated to selling entity2		(1 721)	(4 091)		5 812
Total revenue		8 936	545	2 958	5 812		652		75		3		18 981
By timing and major type of goods and services
Revenue recognised at a point in time		8 936	545	2 559	5 812				73		3		17 928
Coal		8 936	545	2 559	5 812								17 852
Ferrosilicon									73				73
Biological goods											3		3
Revenue recognised over time				399			652		2				1 053
Renewable energy							652						652
Stock yard management services				106					2				108
Project engineering services				293									293
Total revenue		8 936	545	2 958	5 812		652		75		3		18 981
By major geographic area of customer3
Domestic		8 936	545	2 958			652		75		3		13 169
Export					5 812								5 812
Europe4					2 224								2 224
Asia5					3 356								3 356
Other					232								232
Total revenue		8 936	545	2 958	5 812		652		75		3		18 981
By major customer industries
Public utilities		7 898		2 958	101		652						11 609
Merchants		142	231		5 201								5 574
Steel		475	73										548
Mining		84	51						49				184
Manufacturing		117							26				143
Food and beverage		93									3		96
Cement		95	69		361								525
Chemicals			109										109
Other		32	12		149								193
Total revenue		8 936	545	2 958	5 812		652		75		3		18 981

1	Coal segmental revenue is based on the origin of coal production.
2	Relates to product sold by export distribution entity.
3	Determined based on the customer supplied by Exxaro.
4	Relates mainly to Switzerland.
5	Relates mainly to Singapore.

	Coal						Energy		Ferrous		Other
	Commercial
12 months ended 31 December 2024 (Audited)		Waterberg Rm	Mpumalanga 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 sold by export distribution entity.
3	Determined based on the customer supplied by Exxaro.
4	Relates mainly to Switzerland.
5	Relates mainly to Singapore.

	6 months ended 30 June 2025 Reviewed Rm	6 months ended 30 June 2024 Reviewed Rm	12 months ended 31 December 2024 Audited Rm
Raw materials and consumables	(2 694)	(2 728)	(5 672)
Staff costs	(3 600)	(3 365)	(6 980)
Royalties	(549)	(533)	(1 077)
Contract mining	(896)	(963)	(2 008)
Repairs and maintenance	(1 779)	(1 625)	(3 357)
Railage and transport	(2 332)	(2 246)	(4 719)
Movement in provisions (note 18)	(85)		(211)
Depreciation and amortisation	(1 437)	(1 404)	(2 773)
Net losses on disposal of property, plant and equipment	(16)	(9)	(27
Losses on disposal of intangible assets		(11)	(16)
Net realised and unrealised currency
exchange differences	(158)	57	97
Legal and professional fees	(254)	(157)	(398)
ECLs on financial assets at amortised cost	18	(8)	(153)

	6 months ended 30 June 2025 Reviewed Rm	6 months ended 30 June 2024 Reviewed Rm	12 months ended 31 December 2024 Audited Rm
Profit before tax	6 726	5 927	12 447
Adjusted for:
Finance income	(900)	(949)	(1 786)
Finance costs	567	632	1 216
Share of income of equity‑accounted investments	(2 261)	(1 916)	(4 270)
Net operating profit	4 132	3 694	7 607
Non‑cash movements:
Depreciation and amortisation	1 437	1 404	2 773
ECLs on financial assets at amortised cost	(18)	8	153
Write‑off of trade and other receivables	1		13
Write‑off of ESD loans	9	4	5
Write‑off of other current assets	6
Movement in provisions	85		211
Movement in retirement employee obligations	5	6	13
Net unrealised currency exchange differences	99	(63)	(84)
Fair value adjustments on financial instruments	(273)	(132)	(303)
Write‑down of inventories to net realisable value			141
Gain on modification of lease			(2)
Net losses on disposal of property, plant and equipment	16	9	27
Losses on disposal of intangible assets		11	16
Share‑based payment expense	67	95	208
Hedge ineffectiveness on interest rate swap cash flow hedges	6	5	12
Translation of foreign currency items	40	(30)	(14)
Amortisation of transaction costs prepaid	4	4	4
Non‑cash recoveries	(13)	7	163
Non‑cash management fees	9	6	45
Other non‑cash movements	(4)		(6)
Cash generated by operations before working capital movements	5 608	5 028	10 982
Working capital movements
Increase in inventories	(410)	(269)	(268)
Decrease/(increase) in trade and other receivables	561	518	(420)
(Decrease)/increase in trade and other payables	(399)	(437)	240
Utilisation of provisions	(55)	(37)	(102)
Cash generated by operations	5 305	4 803	10 432

		6 months  ended  30 June  2025  Reviewed  Rm	6 months  ended  30 June  2024  Reviewed  Rm	12 months  ended  31 December  2024  Audited  Rm
Finance income		900	949	1 786
Interest income relating to1:		905	954	1 796
– Financial assets at amortised cost1		9	33	33
– Cash and cash equivalents1		860	886	1 699
– Financial assets at FVPL1		34	31	57
– Non-financial assets1			1	2
– Finance leases		2	3	5
Reimbursement of interest income on environmental rehabilitation funds		(5)	(5)	(10)
Finance costs		(567)	(632)	(1 216)
Interest expense relating to1:		(491)	(548)	(1 042)
– Interest-bearing borrowings1		(468)	(504)	(974)
– Financial liabilities at amortised cost				(1)
– Non-financial liabilities1		(3)	(21)	(21)
– Lease liabilities		(20)	(23)	(46)
Net fair value (losses)/gains on interest rate swaps designated as cash flow hedges recycled from OCI:		(3)	16	26
– Realised fair value loss		(29)	(15)	(35)
– Unrealised fair value gain		26	31	61
Unwinding of discount rate on rehabilitation costs		(189)	(142)	(304)
Recovery of unwinding of discount rate on rehabilitation costs		18	13	28
Amortisation of transaction costs		(3)	(3)	(5)
Borrowing costs capitalised2		101	32	81
Total net financing income		333	317	570

1	Additional information has been published to enhance disclosures for 30 June 2024.
2	Relates to specific borrowings utilised by LSP and the Karreebosch project which are in the construction phase.

	6 months ended 30 June 2025 Reviewed Rm	6 months ended 30 June 2024 Reviewed Rm	6 months ended 31 December 2024 Reviewed Rm
Associates	2 216	1 856	4 036
SIOC	1 936	1 936	3 979
RBCT	(8)	3	(7)
Black Mountain	288	(83)	64
Joint ventures	45	60	234
Mafube	45	60	234
Share of income of equity-accounted investments	2 261	1 916	4 270

	At 30 June 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Capital spend	872	1 056	2 146
To maintain operations	1 114	5	302
To expand operations
Total capital spend on property, plant and equipment	1 986	1 061	2 448

	At  30 June  2025  Reviewed  Rm	At  30 June  2024  Reviewed  Rm	At  31 December  2025  Audited  Rm
Capital commitments
Contracted	5 379	3 256	3 416
– Contracted for the group (owner-controlled)	3 848	1 765	1 690
– Share of capital commitments of associates	1 392	1 397	1 531
– Share of capital commitments of joint ventures	139	94	195
Authorised, but not contracted (owner-controlled)	1 091	1 513	2 055

	At 30 June 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Associates	19 091	18 060	18 578
SIOC	14 468	13 861	14 329
RBCT	1 998	2 017	2 007
Black Mountain1	2 625	2 182	2 242
Joint ventures	2 067	1 977	2 018
Mafube	2 067	1 977	2 018
Total net carrying value of equity-accounted investments	21 158	20 037	20 596

1	The shares in Black Mountain have been provided as security for the project financing raised by Black Mountain since the second half 2024.

	At 30 June 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Non-current	589	720	569
Reimbursements1	469	589	443
Biological assets	38	32	37
Lease receivables	12	24	18
Other	70	75	71
Current	840	320	456
VAT	88	16	62
Diesel rebates	61	41	40
Royalties	103	69	63
Prepayments2	534	132	229
Lease receivables	12	10	11
Other	42	52	51
Total other assets	1 429	1 040	1 025

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 R513 million (30 June 2024: R120 million; 31 December 2024: R83.7 million) which relates to advance payments for assets under construction. The increase for 30 June 2025 relates mainly to the Karreebosch project.

	At  30 June  2025  Reviewed  Rm	At  30 June  2024  Reviewed  Rm	At  31 December  2024  Audited  Rm
Non-current1	5 871	7 479	7 344
Loan facility		2 722	2 499
Project financing2	5 871	4 757	4 845
Current1	3 197	818	876
Loan facility3	2 768	503	498
Project financing2	429	315	378
Total interest-bearing borrowings	9 068	8 297	8 220
Summary of interest‑bearing borrowings by period of redemption:
Less than six months	490	431	468
Six to 12 months	2 707	387	408
Between one and two years	505	3 115	2 951
Between two and three years	620	505	561
Between three and four years	745	620	687
Between four and five years	892	744	813
More than five years	3 109	2 495	2 332
Total interest-bearing borrowings	9 068	8 297	8 220
1 Reduced by transaction costs:
– Non‑current	(43)	(14)	(12)
– Current	(5)	(5)	(5)
2 Interest‑bearing borrowings relating to the energy operations.
3 The loan facility will mature in April 2026.
Analysis of movement in interest-bearing borrowings
At beginning of the period	8 220	8 923	8 923
Interest-bearing borrowings raised	1 289	388	705
Interest-bearing borrowings repaid	(404)	(1 009)	(1 397)
Interest expense	468	504	974
Interest paid	(474)	(512)	(990)
Capitalisation of transaction costs	(34)
Amortisation of transaction costs	3	3	5
At end of the period	9 068	8 297	8 220

There were no defaults or breaches in terms of the financial covenants for the interest‑bearing borrowings during the reporting periods.

Below is a summary of the salient terms and conditions of the facilities at 30 June 2025:

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	228	nil	Unsecured	26 April 2021
Revolving credit facility	nil	3 250	Unsecured	26 April 2021
Project financing
Amakhala SPV
Term loan and reserve facility	2 272	273	Secured	1 April 2020
Term loan facility	123	nil	Secured	1 April 2020
Tsitsikamma SPV
Term loan and reserve facility	1 514	148	Secured	1 April 2020
LSP SPV
Term loan and reserve facility	1 159	108	Secured	11 July 2023
Revolving credit facility	35	14	Secured	11 July 2023
Karreebosch SPV
Term loan, reserve and working capital facility	1 197	3 109	Secured	17 Feb 2025

			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%)	0.04%
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% where applicable
Revolving credit facility	31 Aug 2025	Floating	3-month JIBAR	180 basis points (1.80%)	N/A
Karreebosch SPV
Term loan, reserve and working capital facility	28 Feb 2046	Floating	3-month JIBAR	180 to 300 basis points (1.80% to 3.00%)	0.01% where applicable

	At  30 June  2025  Reviewed  Rm	At  30 June  2024  Reviewed  Rm	At  31 December  2024  Audited  Rm
Non-current	303	376	334
Current	101	56	96
Total lease liabilities	404	432	430
Analysis of movement in lease liabilities
At beginning of the period	430	451	451
New leases	13	1	3
Lease remeasurement adjustments	(8)	4	26
Capital repayments	(31)	(24)	(50)
– Lease payments	(51)	(47)	(96)
– Interest charges	20	23	46
At end of the period	404	432	430
The lease liabilities relate to the right-of-use assets.
Interest is based on incremental borrowing rates ranging as follows:
– Foreign lease (%)		1.35	1.35
– Local leases (%)	10.25 to  11.75	10.25 to  10.86	10.25 to  11.75

	At  30 June  2025  Reviewed  Rm	At  30 June  2024  Reviewed  Rm	At  31 December  2024  Audited  Rm
Net cash is presented by the following items on the statement of financial position:
Non-current interest-bearing debt	(6 174)	(7 855)	(7 678)
Interest-bearing borrowings	(5 871)	(7 479)	(7 344)
Lease liabilities	(303)	(376)	(334)
Current interest-bearing debt	(3 298)	(874)	(972)
Interest-bearing borrowings	(3 197)	(818)	(876)
Lease liabilities	(101)	(56)	(96)
Cash and cash equivalents	21 920	18 499	20 630
Cash and cash equivalents	21 920	18 499	20 630
Total net cash	12 448	9 770	11 980

	Environmental rehabilitation
	Resto-  ration  Rm	Decommis-  sioning  Rm	Residual  impact  Rm	Other  site  closure  cost  Rm	Other  Rm		Total  Rm
At 30 June 2025 (Reviewed)
At beginning of the period	2 148	356	1 017	120			3 641
Charge to operating expenses (note 8)	61	2	19	3			85
Unwinding of discount rate (note 10)	113	20	51	5			189
Change in provisions capitalised to property, plant and equipment	(1)	8					7
Utilised during the period	(27)		(18)	(10)			(55)
Total provisions at end of the period	2 294	386	1 069	118			3 867
Non-current	2 113	385	934	89			3 521
Current	181	1	135	29			346
At 30 June 2024 (Reviewed)
At beginning of the period	1 823	258	975	127	2		3 185
(Reversal)/charge to operating expenses (note 8)	(13)	9	5	(1)
Unwinding of discount rate (note 10)	101	16	20	5			142
Change in provisions capitalised to property, plant and equipment	2	(20)					(18)
Utilised during the period	(23)		(2)	(10)	(2)		(37)
Total provisions at end of the period	1 890	263	998	121			3 272
Non-current	1 741	262	913	99			3 015
Current	149	1	85	22			257
At 31 December 2024 (Audited)
At beginning of the period	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 period	(58)		(21)	(21)	(2)		(102)
Total provisions at end of the period	2 148	356	1 017	120			3 641
Non-current	1 999	355	908	97			3 359
Current	149	1	109	23			282

	At 30 June 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Non-current	68	44	38
Long-term incentives	41	20	13
Income received in advance	27	24	25
Current	952	875	974
Leave pay	291	267	274
Bonuses	334	357	380
VAT	164	121	171
Carbon tax	5	4	3
Customer advance payments	16	1	38
Other	142	125	108
Total other liabilities	1 020	919	1 012

			At 30 June 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Non-current
Financial assets
Financial assets at FVOCI			471	443	442
Equity: unlisted - Chifeng			471	443	442
Financial assets at FVPL			4 808	4 007	4 557
Debt: unlisted – environmental rehabilitation funds			2 830	2 531	2 657
Debt: unlisted – portfolio investments			530	480	513
Debt: unlisted – deposit facilities1			1 448	996	1 387
Financial assets at amortised cost			178	311	266
ESD loans2			55	94	68
– Gross			92	155	131
– Impairment allowances			(37)	(61)	(63)
Vendor finance loan3				104	80
– Gross				104	81
– Impairment allowance					(1)
Other financial assets at amortised cost			123	113	118
– Environmental rehabilitation funds			123	113	118
Derivative financial assets designated as hedging instruments				2	1
Cash flow hedge derivatives: interest rate swaps4				2	1
Financial liabilities
Financial liabilities at amortised cost			(5 941)	(7 520)	(7 384)
Interest-bearing borrowings			(5 871)	(7 479)	(7 344)
Other payables			(70)	(41)	(40)
Derivative financial liabilities designated as hedging instruments			(260)	(99)	(129)
Cash flow hedge derivatives: interest rate swaps4			(198)	(99)	(129)
Cash flow hedge derivatives: FECs5			(62)

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	The vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the ECC operation was settled early in March 2025.
4	Relates to interest rate swaps designated in a hedging relationship to hedge interest rate risk exposure resulting from interest payments of the project financing. The hedges have been assessed as effective.
5	Relates to FECs designated in a hedging relationship to hedge foreign exchange risk exposure on the purchase of foreign denominated capital purchases for the Karreebosch project funded by ZAR denominated project financing. The hedges have been assessed as effective.

 

				At  30 June  2025  Reviewed  Rm	At  30 June  2024  Reviewed  Rm	At  31 December  2024  Audited  Rm
Current
Financial assets
Financial assets at amortised cost				25 940	22 469	25 017
ESD loans1				89	79	83
– Gross				263	202	247
– Impairment allowances				(174)	(123)	(164)
Vendor finance loan2					66	62
– Gross					67	63
– Impairment allowance					(1)	(1)
Intervention receivable3				11	8	8
– Gross				11	8	8
Investment deposits4						4
– Gross						4
Other financial assets at amortised cost					39
– Deferred pricing receivable5					39
– Employee receivables				3	4	4
– Impairment allowances				(3)	(4)	(4)
Trade and other receivables				3 920	3 778	4 230
Trade receivables				3 809	3 690	4 098
– Gross				3 925	3 703	4 214
– Impairment allowances				(116)	(13)	(116)
Other receivables				111	88	132
– Gross				119	98	140
– Impairment allowances				(8)	(10)	(8)
Cash and cash equivalents6				21 920	18 499	20 630
Financial assets at FVPL				30	13	2
Derivative financial assets				30	13	2
Financial liabilities
Financial liabilities at amortised cost				(6 355)	(3 907)	(4 227)
Interest-bearing borrowings				(3 197)	(818)	(876)
Trade and other payables				(3 158)	(3 089)	(3 351)
– Trade payables				(1 752)	(1 697)	(1 841)
– Other payables				(1 406)	(1 392)	(1 510)
Derivative financial liabilities designated as hedging instruments				(38)	(11)
Cash flow hedge derivatives: interest rate swaps7				(38)	(2)
Cash flow hedge derivatives: FECs8					(9)
Financial liabilities at FVPL					(1)	(22)
Derivative financial liabilities					(1)	(22)

1	Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme.
2	The vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the ECC operation was settled early in March 2025.
3	Relates to amounts advanced for funding of logistical projects.
4	Investment deposits with a term of three to 12 months.
5	The deferred pricing adjustment was settled in 2024.
6	Includes cash and cash equivalents subject to the following restrictions by project financing lenders:
	– Cash of R18 million (30 June 2024: nil; 31 December 2024: R17 million) held for debt service
	– Cash of R47 million (30 June 2024: nil; 31 December 2024: R46 million) held for equipment maintenance reserving
	– Cash of R35 million (30 June 2024: nil; 31 December 2024: R34 million) restricted until debt service is fully repaid in 2031.
	Additionally, includes US$ denominated cash of R177 million (31 December 2024: R381 million) designated in a hedging relationship.
7	Relates to interest rate swaps designated in a hedging relationship to hedge interest rate risk exposure resulting from interest payments of the project financing. The hedges have been assessed as effective.
8	Relates to FECs designated in a hedging relationship to hedge foreign exchange risk exposure on the purchase of foreign denominated capital purchases for LSP funded by ZAR denominated project financing. The hedges have been assessed as effective. The FEC portion of the hedges have been settled.

 

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 2025 Reviewed Rm	At 30 June 2024 Reviewed Rm	At 31 December 2024 Audited Rm
Total loan commitments1		5	8	38
ESD applicants2		5	8	38

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 2025 (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		4 808		4 808
Non-current debt: unlisted – environmental rehabilitation funds		2 830		2 830
Non-current debt: unlisted – portfolio investments		530		530
Non-current debt: unlisted – deposit facilities		1 448		1 448
Derivative financial assets		30		30
Current derivative financial assets		30		30
Derivative financial liabilities designated as hedging instruments		(298)		(298)
Non-current cash flow hedge derivatives: interest rate swaps		(198)		(198)
Current hedging derivatives: interest rate swaps		(38)		(38)
Non-current hedging derivatives: FECs		(62)		(62)
Net financial assets held at fair value		5 011		4 540	471

At 30 June 2024 (Reviewed)	Fair value  Rm		Level 2  Rm	Level 3  Rm
Financial assets at FVOCI	443			443
Equity: unlisted – Chifeng	443			443
Financial assets at FVPL	4 007		4 007
Non-current debt: unlisted – environmental rehabilitation funds	2 531		2 531
Non-current debt: unlisted – portfolio investments	480		480
Non-current debt: unlisted – deposit facilities	996		996
Derivative financial assets designated as hedging instruments	2		2
Non-current cash flow hedge derivatives: interest rate swaps	2		2
Derivative financial assets	13		13
Current derivative financial assets	13		13
Derivative financial liabilities designated as hedging instruments	(110)		(110)
Non-current cash flow hedge derivatives: interest rate swaps	(99)		(99)
Current hedging derivatives: interest rate swaps	(2)		(2)
Current hedging derivatives: FECs	(9)		(9)
Derivative financial liabilities	(1)		(1)
Current derivative financial liabilities	(1)		(1)
Net financial assets held at fair value	4 354		3 911	443

At 31 December 2024 (Audited)	Fair value  Rm		Level 2  Rm	Level 3  Rm
Financial assets at FVOCI	442			442
Equity: unlisted – Chifeng	442			442
Financial assets at FVPL	4 557		4 557
Non-current debt: unlisted – environmental rehabilitation funds	2 657		2 657
Non-current debt: unlisted – portfolio investments	513		513
Non-current debt: unlisted – deposit facilities	1 387		1 387
Derivative financial assets designated as hedging instruments	1		1
Non-current cash flow hedge derivatives: interest rate swaps	1		1
Derivative financial assets	2		2
Current derivative financial assets	2		2
Derivative financial liabilities designated as hedging instruments	(129)		(129)
Non-current cash flow hedge derivatives: interest rate swaps	(129)		(129)
Derivative financial liabilities	(22)		(22)
Current derivative financial liabilities	(22)		(22)
Net financial assets held at fair value	4 851		4 409	442

Reconciliation of financial assets within Level 3 of the hierarchy:

	Chifeng  Rm
At 31 December 2023 (Audited)	434
Movement during the period
Gains recognised in OCI (pre-tax effect)1	9
At 30 June 2024 (Reviewed)	443
Movement during the period
Losses recognised in OCI (pre-tax effect)1	(1)
At 31 December 2024 (Audited)	442
Movement during the period
Gains recognised in OCI (pre-tax effect)1	29
At 30 June 2025 (Reviewed)	471

1	Tax on Chifeng amounts to R6.3 million (30 June 2024: R2 million; 2H24: R0.28 million).

Transfers

Transfers 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 applied

The fair value computations of 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 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.

Non-current cash flow hedge derivatives: 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 reasonableness by discounting the estimated future cash flows based on observable ZAR swap curves.

Current cash flow hedge derivatives: forward exchange contracts

Level 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 reasonableness by discounting the estimated future cash flows based on the relevant observable ZAR/foreign currency forward rates.

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.

On 17 February 2025, Cennergi Holdings, a wholly owned subsidiary of Exxaro, in partnership with G7, reached financial close on the 140MW Karreebosch project. The Karreebosch project is located between the towns of Sutherland in the Northern Cape and Matjiesfontein in the Western Cape.

Karreebosch SPV has a 20-year power purchase agreement with Northam Platinum Limited. Cennergi Holdings acquired 80% of the share capital in Karreebosch SPV as well as 50% of the share capital in KAM. The total cost of the project is 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 Exxaro's balance sheet.

As Karreebosch SPV and KAM were assessed not to be businesses, there was no business combination to account for in accordance with IFRS 3 Business Combinations.

The Karreebosch project was acquired for a cash consideration of R4 000.

The acquisition has been accounted for as an asset acquisition in accordance with the applicable IFRS Accounting Standards.

22.1	Contingent liabilities
	At 30 June 2025 Reviewed Rm At 30 June 2024 Reviewed Rm At 31 December 2024 Audited Rm Pending litigation and other claims1 107 113 107 Operational guarantees2 5 005 4 180 4 255 – Financial guarantees ceded to the DMPR 3 504 3 552 3 552 – Other financial guarantees3 1 501 628 703 Total contingent liabilities 5 112 4 293 4 362 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 Increase mainly due to guarantees for Karreebosch SPV. 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. In preparation for the certification hearing, Exxaro continues the collation of information for all current and historical mines, including access to DMPR reports. The timing and occurrence of any possible outflows of the contingent liabilities are uncertain. Share of equity-accounted investments' contingent liabilities At 30 June 2025 Reviewed Rm At 30 June 2024 Reviewed Rm At 31 December 2024 Audited Rm Share of contingent liabilities of equity-accounted investments 1 698 1 695 1 697
22.2	Contingent assets
	At 30 June 2025 Reviewed Rm At 30 June 2024 Reviewed Rm At 31 December 2024 Audited Rm Back-to-back guarantees 134 134 134 Other1 94 29 100 Total contingent assets 228 163 234 1 Relates to performance guarantees issued to Exxaro in terms of various capital project agreements.