Integrated report 2019
Exxaro Resources Limited
Group and company annual financial statements
for the year ended 31 December 2019
The group’s net operating profit (from continuing and discontinued operations) for 2019 increased by R696 million to R6 399 million (2018: R5 703 million) mainly due to the net gain on the partial disposal in Tronox Holdings plc and the redemption of Exxaro’s membership interest in Tronox UK.
Income from equity-accounted investments of R4 693 million for 2019 (2018: R3 259 million) increased by 44%, mainly as a result of SIOC.
The key transactions shown below should be considered for a better understanding of the comparability of results between 2019 and 2018. Please note that when we present our figures to the market we do this on a normalised basis, taking into account the key transactions impacting comparability, as shown in the table below:
Table 1: Key transactions impacting comparability
| Reporting segment | Description | 2019 Rm |
2018 Rm |
|||
| Coal | – | Insurance claim recovery from external parties | (99) | |||
|---|---|---|---|---|---|---|
| – | Targeted voluntary packages1 | 393 | ||||
| – | Insurance claim recovery from external parties2 | (49) | (57) | |||
| – | Gain on disposal of non-core investments2, 3 | (76) | (171) | |||
| – | Loss on loss of control of Tumelo2 | 35 | ||||
| – | Net gains on disposal of property, plant and equipment2, 4 | (18) | (121) | |||
| – | Impairment reversal of property, plant and equipment2 | (23) | ||||
| – | Tax on non-core adjustments2 | 11 | 29 | |||
| Ferrous | – | Targeted voluntary packages1 | 3 | |||
| – | Post-tax share of SIOC’s loss on disposal of property, plant and equipment2 | 10 | 13 | |||
| TiO2 | – | Indemnification asset movement relating to the tax implications of the partial Tronox Holdings plc divestment | (65) | |||
| – | Net gains on partial disposal of investment in Tronox, including net gain on translation differences recycled to profit or loss2, 5 | (2 336) | ||||
| – | Tax on partial disposal of investment in Tronox Holdings plc2 | 65 | ||||
| Energy | – | Impairment of associate (GAM)2 | 58 | |||
| Other | – | Fair value adjustment on debt | (58) | |||
| – | Fair value adjustment on the ECC contingent consideration | (296) | 357 | |||
| – | Net gain on translation differences recycled to profit or loss on foreign subsidiaries2 | (7) | (14) | |||
| – | Net loss on disposal of property, plant and equipment2 | 18 | ||||
| – | Losses on dilution of investments in associates2 | 42 | ||||
| – | Post-tax share of Insect Technology’s loss on disposal of intangible assets and impairment of goodwill2 | 42 | ||||
| Various | – | Other items individually less than R10 million2 | 4 | 1 | ||
| Net financing cost | – | Eyesizwe preference dividend accrued (consolidation impact) | 25 | 100 | ||
| Non-controlling interest | – | NCI on non-core adjustments | (86) | |||
| Group | Total attributable earnings impact | (2 407) | 137 |
| 1 | Exxaro is committed to complying with the employment equity targets prescribed by the Mining Charter and Department of Trade and Industry codes and as such approved various mechanisms that will support the achievement of the 2022 targets. |
| 2 | Excluded from headline earnings. |
| 3 | Relates to a gain on disposal of the Paardeplaats mining right. 2018 comprises a gain on disposal of Manyeka (R69 million) and a gain on disposal of NBC (R102 million). |
| 4 | 2018 includes a R115 million gain on disposal of mineral properties by Matla. |
| 5 | Includes a gain of R1 234 million on the partial disposal of Tronox Holdings plc, a gain of R832 million on translation differences recycled to profit or loss on partial disposal of Tronox Holdings plc and a gain of R270 million on the redemption of the Tronox UK membership interest. |
