Integrated report 2019
Exxaro Resources Limited
Group and company annual financial statements
for the year ended 31 December 2019
| Company | |||||||||||||||
| Gross carrying amount | Impairment allowances | Net carrying amount | |||||||||||||
| At 31 December | Note | 2019 Rm |
2018 Rm |
2019 Rm |
2018 Rm |
2019 Rm |
2018 Rm |
||||||||
| Indebtedness by subsidiaries | |||||||||||||||
| Non-current | 7 000 | 3 500 | 7 000 | 3 500 | |||||||||||
| Interest-bearing loans receivable | 10.2.2 | 7 000 | 3 500 | 7 000 | 3 500 | ||||||||||
| Current | 5 134 | 2 792 | (62) | (60) | 5 072 | 2 732 | |||||||||
| Interest-bearing loans receivable | 10.2.2 | 60 | 586 | 60 | 586 | ||||||||||
| Non-interest-bearing loans receivable1 | 10.2.2 | 421 | 401 | (62) | (60) | 359 | 341 | ||||||||
| Interest-bearing treasury facilities receivable | 10.2.2 | 4 038 | 1 611 | 4 038 | 1 611 | ||||||||||
| Indebtedness by subsidiaries | 6.2.3 | 615 | 194 | 615 | 194 | ||||||||||
| Total indebtedness by subsidiaries | 17.6 | 12 134 | 6 292 | (62) | (60) | 12 072 | 6 232 | ||||||||
| Indebtedness to subsidiaries | |||||||||||||||
| Current | (13 900) | (10 088) | (13 900) | (10 088) | |||||||||||
| Non-interest-bearing loans payable | 12.1.7 | (8 452) | (8 197) | (8 452) | (8 197) | ||||||||||
| Interest-bearing treasury facilities payable | 12.1.7 | (5 448) | (1 886) | (5 448) | (1 886) | ||||||||||
| Indebtedness to subsidiaries | 6.2.4 | (5) | (5) | ||||||||||||
| Total indebtedness to subsidiaries | 17.6 | (13 900) | (10 088) | (13 900) | (10 088) | ||||||||||
| Net indebtedness to subsidiaries | (1 766) | (3 796) | (62) | (60) | (1 828) | (3 856) | |||||||||
| 1 | The impairment allowances relate to the following subsidiaries which have been fully impaired: |
| – Colonna Properties Proprietary Limited of R1 million (2018: R1 million) | |
| – Exxaro Mountain Bike Academy NPC of R16 million (2018: R15 million) | |
| – Gravelotte Iron Ore Company Proprietary Limited R45 million (2018: R44 million). |
Terms and conditions of indebtedness
Non-interest-bearing loans
The loans are unsecured, have no repayment terms and are repayable on demand.
Interest-bearing treasury facilities
The treasury facilities are unsecured, have no repayment terms and are repayable on demand. Interest is charged at money-market rates.
Indebtedness (trade related)
Certain subsidiaries are charged corporate service fees which are repayable within 30 days.
Interest-bearing loans receivable
The back-to-back loans have similar terms as agreed with external lenders except for interest which is charged based on JIBAR plus a margin. Refer note 12.1.4 for detailed terms and conditions of the external borrowings.
The closing interest rates at 31 December as well as the applicable margin achieved for the back-to-back loans are summarised below:
| JIBAR plus margin (%) | Margin (%) | ||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Revolving credit facility | 10.18 | 3.80 | |||||||
| Bullet term loan | 10.19 | 10.43 | 3.40 | 3.4 | |||||
| Bond – R357 million | 8.45 | 1.65 | |||||||
| Bond – R643 million | 8.69 | 1.89 | |||||||
| Bond – R520 million | 8.97 | 1.95 | |||||||
| Company | ||||
| Net carrying amount | ||||
| At 31 December | 2019 Rm |
2018 Rm |
||
|---|---|---|---|---|
| Summary by financial year of redemption: | ||||
| Less than six months | 60 | 586 | ||
| Between one and two years | 2 750 | |||
| Between two and three years | 3 607 | 3 250 | ||
| Between three and four years | 250 | |||
| Between four and five years | 643 | |||
| Total interest-bearing loans receivable | 7 060 | 4 086 | ||
| Exxaro Coal Proprietary Limited | 7 060 | 3 832 | ||
| Exxaro Coal Mpumalanga Proprietary Limited | 254 | |||
