Exxaro report selector 2019

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Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2019

Currently viewing: CHAPTER 10 / 10.2 Financial assets

10.2 Financial assets

10.2.1 ACCOUNTING POLICIES RELATING TO FINANCIAL ASSETS

The accounting policy for financial assets is disclosed in note 16.1 of financial instruments.

10.2.2 FINANCIAL ASSETS COMPOSITION

      Group       Company    
At 31 December Note     2019 
Rm 
  2018 
Rm 
        2019 
Rm 
  2018 
Rm 
   
Non-current financial assets                              
Financial assets at FVOCI          235     185                         
Equity: unlisted Chifeng          235     185                         
Financial assets at FVPL          2 039     1 432              29     26       
Debt: unlisted – environmental rehabilitation funds          2 039     1 432              29     26       
Financial assets at amortised cost          400     1 017              7 124     3 580       
Loans to associates and joint ventures               250                         
– Joint ventures: Mafube1               250                         
ESD loans2          124     80              124     80       
Interest-bearing loans to subsidiaries3  17.5                          7 000     3 500       
Other financial assets at amortised cost          276     687                         
– Environmental rehabilitation funds               351                         
– Deferred pricing receivable4          279     336                         
– Impairment allowances          (3)                         
Total non-current financial assets  16.3        2 674     2 634              7 153     3 606       
Current financial assets                                   
Financial assets at amortised cost          272     134              4 539     2 583       
Loans to associates and joint ventures          133                            
– Associates: Tumelo5          133                          
– Joint ventures: Mafube1                                      
ESD loans2          82     45              82     45       
Interest-bearing loans to subsidiaries3                            60     586       
Non-interest-bearing loans to subsidiaries6                            359     341       
Treasury facilities with subsidiaries at amortised cost7                            4 038     1 611       
Other current financial assets at amortised cost          57     80                         
– Deferred pricing receivable4          57     52                         
– Deferred consideration receivable8             29                         
– Employee receivables                                 
– Impairment allowances          (6)                   (5)    (4)      
Total current financial assets 16.3     272    134          4 539    2 583     
Total financial assets       2 946    2 768          11 692    6 189     
1 Loan granted to Mafube in 2018. The loan attracted interest at JIBAR plus a margin of 4%, was unsecured and repayable within five years (ending 2023), unless otherwise agreed by the parties. The loan has been settled in full during 2019.
2 Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme.
3 Back-to-back loans which have similar terms as agreed with external lenders except for interest, which is charged based on JIBAR plus a margin.
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 Loan granted to Tumelo. The loan is interest free, unsecured and repayable on demand, unless otherwise agreed by the parties.
6 These loans are interest free, unsecured and repayable on demand.
7 Treasury facilities with subsidiaries have no repayments terms and are repayable on demand. Interest is charged at money-market rates.
8 Relates to deferred consideration receivable which arose on the disposal of a mining right.