Integrated report 2019
Exxaro Resources Limited
Group and company annual financial statements
for the year ended 31 December 2019
| Group | Company | ||||||||
| At 31 December | 2019 Rm |
2018 Rm |
2019 Rm |
2018 Rm |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Pending litigation and other claims1 | 1 103 | 1 155 | |||||||
| Operational guarantees2 | 4 506 | 3 062 | 452 | 18 | |||||
| – Financial guarantees ceded to the DMR | 3 994 | 2 971 | |||||||
| – Other financial guarantees | 512 | 91 | 452 | 18 | |||||
| Total contingent liabilities | 5 609 | 4 217 | 452 | 18 | |||||
| 1 | Tax disputes with SARS have been settled. Consists of legal cases with Exxaro as defendant. |
| 2 | Include guarantees to banks and other institutions in the normal course of business from which it is anticipated that no material liabilities will arise. |
The timing and occurrence of any possible outflows of the contingent liabilities above are uncertain.
SARS
As previously reported, on 30 March 2016, SARS had issued additional assessments to the amount of R442 million (R199 million tax payable, R91 million interest and R152 million penalties) to which Exxaro formally objected. The matter was settled outside of the Tax Court. A settlement agreement was concluded and signed on 30 September 2019 in terms of which SARS must refund Exxaro an amount of R24 million.
Share of equity-accounted investments’ contingent consideration
| Group | Company | ||||||||
| At 31 December | 2019 Rm |
2018 Rm |
2019 Rm |
2018 Rm |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Share of contingent liabilities of equity-accounted investments1 | 1 060 | 726 | |||||||
| 1 | Mainly operational guarantees issued by financial institutions relating to environmental rehabilitation and closure costs. |
