Exxaro Resources Limited – Group and company annual financial statements 2021

CHAPTERS 1 TO 3

CHAPTERS 1 TO 3

CHAPTER 1

The year in brief

CHAPTER 2

Responsibility statement on internal financial controls Certificate by the group company secretary Report of the directors Audit committee report Independent auditor's report

CHAPTER 3

Accounting policy relating to segmental reporting Significant judgements and assumptions made by management in applying the related accounting policy Reportable segments Geographic location of segment assets

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
CHAPTERS 4 TO 5

CHAPTERS 4 TO 5

CHAPTER 4

Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Company statement of comprehensive income Company statement of financial position Company statement of changes in equity Company statement of cash flows

CHAPTER 5

Accounting policy relating to earnings Attributable earnings per share Reconciliation of headline earnings Headline earnings per share Dividend distributions Notes to the statements of cash flows relating to earnings

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.
CHAPTERS 6 TO 7

CHAPTERS 6 TO 7

CHAPTER 6

Operational performance Working capital Notes to the statements of cash flows relating to operational performance and working capital

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 7

Accounting policies relating to taxation Significant judgements and assumptions made by management in applying the related accounting policies Income tax (expense)/benefit Reconciliation of tax rates Deferred tax Notes to the statements of cash flows relating to taxation Tax effect of other comprehensive income
CHAPTERS 8 TO 9

CHAPTERS 8 TO 9

CHAPTER 8

Accounting policies relating to business environment and portfolio changes Significant judgements and assumptions made by management in applying the related accounting policies Divestment of non-core assets Impairment charges of non-current assets Non-current assets and liabilities held-for-sale

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

CHAPTER 9

Accounting policies relating to investments in associates and joint arrangements Significant judgements and assumptions made by management in applying the related accounting policies Income from investments in associates and joint ventures Investments in associates and joint arrangements Movement analysis of investments in associates and joint ventures Summarised financial information of associates and joint ventures Reconciliation of carrying amounts of investments in associates and joint ventures
CHAPTERS 10 TO 13

CHAPTERS 10 TO 13

CHAPTER 10

Property, plant and equipment Intangible assets Financial assets Other assets

CHAPTER 11

Accounting policies relating to leases Judgements and assumptions made by management in applying the related accounting policies Right-of-use assets Lease liabilities

CHAPTER 12

Debt Equity

CHAPTER 13

Accounting policies relating to provisions and contingencies Significant judgements and assumptions made by management in applying the related accounting policies Provisions Contingent liabilities and contingent assets
CHAPTERS 14 TO 16

CHAPTERS 14 TO 16

CHAPTER 14

Accounting policies relating to employee benefits Significant judgements and assumptions made by management in applying the related accounting policies Employee benefits Retirement employee obligations Directors' and prescribed officers' remuneration

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 15

Related-party transactions

CHAPTER 16

Accounting policies relating to financial instruments Judgements and assumptions made by management in applying the related accounting policies Financial instruments
CHAPTERS 16 TO 17

CHAPTERS 16 TO 17

CHAPTER 16

Accounting policies relating to financial instruments Judgements and assumptions made by management in applying the related accounting policies Financial instruments

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 17

Accounting policies relating to subsidiaries Significant judgements and assumptions made by management in applying the related accounting policies Transactions with subsidiaries Summary of investments in subsidiaries Summary of indebtedness by/(to) subsidiaries Detailed analysis of investments in subsidiaries and indebtedness by/(to) subsidiaries Non-controlling interests
CHAPTERS 18 TO 20

CHAPTERS 18 TO 20

CHAPTER 18

Basis of preparation Adoption of new, amended and revised standards and interpretations Events after the reporting period

CHAPTER 19

Re-presentation of group comparative information Restatement of company comparative information

CHAPTER 20

Annexure 1: Shareholder analysis Annexure 2: Definitions Annexure 3: Administration Annexure 4: Shareholders' diary

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.
ACRONYMS
DOWNLOADS

CHAPTER 13:
Provisions and contingencies

13.3PROVISIONS

	Group
	Environmental rehabilitation
	Note	Restoration Rm	Decommis- sioning Rm	Residual impact Rm	Other site closure costs Rm	Other¹ Rm	Total Rm
At 31 December 2021
At beginning of the year		1 420	295	323	79	14	2 131
(Reversal)/charge to operating expenses	6.1.3	(46)	(11)	63	(1)	(1)	4
– Additional provisions		122	10	109			241
– Unused amounts reversed		(168)	(21)	(46)	(1)	(1)	(237)
Unwinding of discount rate on rehabilitation costs	12.1.2	161	36	44		1	242
Provisions capitalised to property, plant and equipment	10.1.3		32				32
Utilised during the year		(14)		(6)	(24)	(4)	(48)
Reclassification to non-current liabilities held-for-sale		(42)	(2)	(17)	2		(59)
Total provisions at end of the year		1 479	350	407	56	10	2 302
Non-current		1 408	350	398	43	2	2 201
Current		71		9	13	8	101

¹	Relates to a constructive obligation created with certain BEE minorities within the Cennergi group to receive distributions in proportion to their percentage interest prior to their in-substance share options being exercised.

	Group
	Environmental rehabilitation
	Note	Restoration Rm	Decommis-sioning Rm	Residual impact Rm	Other site closure costs Rm	Other¹ Rm	Total Rm
At 31 December 2020
At beginning of the year		2 432	544	1 345	83		4 404
(Reversal)/charge to operating expenses	6.1.3	(60)	(85)	(986)	14	17	(1 100)
– Additional provisions		316	14	44	16	17	407
– Unused amounts reversed²		(376)	(99)	(1 030)	(2)		(1 507)
Unwinding of discount rate on rehabilitation costs	12.1.2	169	44	92			305
Provisions capitalised to property, plant and equipment	10.1.3		(88)				(88)
Utilised during the year		(18)		(3)	(16)	(3)	(40)
Reclassification to non-current liabilities held-for-sale		(467)	(52)	576	(2)		55
Acquisition of subsidiaries		6	29	4			39
Transfer of operation	8.3	(642)	(97)	(705)			(1 444)
Total provisions at end of the year		1 420	295	323	79	14	2 131
Non-current		1 284	295	300	60	7	1 946
Current		136		23	19	7	185

¹	Relates to a constructive obligation created with certain BEE minorities within the Cennergi group to receive distributions in proportion to their percentage interest prior to their in-substance share options being exercised.
²	The residual impact includes an adjustment to the EMJV environmental rehabilitation provision, amounting to R818 million.

		Company
		Environmental rehabilitation
	Note	Restoration Rm	Total Rm
At 31 December 2021
At beginning of the year		37	37
Reversal to operating expenses	6.1.3	(1)	(1)
– Unused amounts reversed		(1)	(1)
Unwinding of discount rate on rehabilitation costs	12.1.2	3	3
Total provisions at end of the year		39	39
Non-current		39	39

		Company
		Environmental rehabilitation
	Note	Restoration Rm	Total Rm
At 31 December 2020
At beginning of the year		37	37
Reversal to operating expenses	6.1.3	(3)	(3)
– Unused amounts reversed		(3)	(3)
Unwinding of discount rate on rehabilitation costs	12.1.2	3	3
Total provisions at end of the year		37	37
Non-current		37	37

Funding

The FPR:2015 contains funding requirements in the form of financial guarantees as well as trust funds. Exxaro has financial guarantees per mine, which are ceded to the DMRE, as well as environmental trust funds.

	Group
At 31 December	Note	2021 Rm	2020 Rm
Estimated unscheduled restoration and decommissioning closure costs		(6 404)	(6 058)
Estimated unscheduled post-closure residual impact costs		(1 177)	(952)
Total environmental provisions		(2 236)	(2 038)
Present value of unscheduled restoration and decommissioning costs discounted over LoM		(1 829)	(1 715)
Present value of unscheduled post-closure residual impact costs discounted over LoM and five years of rehabilitation		(407)	(323)
Environmental rehabilitation funds in trust¹	10.3.2	2 267	1 337
Financial guarantees ceded to the DMRE²	13.4.1	3 606	3 696
Current funding excess		3 637	2 995

¹	2020: Excludes an amount of R296 million which is being held in trust on behalf of Arnot Opco until they have established an environmental rehabilitation trust fund of their own that's approved by the DMRE. During 2021, the amount held in trust was transferred to Arnot Opco.
²	2020: Excludes an amount of R543 million which relates to the operational guarantees for the ECC operation that was reclassified to non-current assets held-for-sale.

CHAPTER 13: Provisions and contingencies

Funding

Generate your own report

CHAPTER 13:
Provisions and contingencies