Integrated report 2019
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Exxaro Resources Limited
Group and company annual financial statements
for the year ended 31 December 2019
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 | 9 | |||||||||||||
– Associates: Tumelo5 | 133 | ||||||||||||||
– Joint ventures: Mafube1 | 9 | ||||||||||||||
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 | 1 | 29 | |||||||||||||
– Employee receivables | 5 | 4 | 5 | 4 | |||||||||||
– 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. |