Logo
Exxaro Resources Limited
Annual Financial Statements 2021
1Chapter
2Chapter
3Chapter
4Chapter
5Chapter
6Chapter
7Chapter
8Chapter
9Chapter
10Chapter
<Next
11Chapter
12Chapter
13Chapter
14Chapter
15Chapter
16Chapter
17Chapter
18Chapter
19Chapter
20Chapter
>Previous

CHAPTER 17:
Subsidiaries

  • 17.5SUMMARY OF INDEBTEDNESS BY/(TO) SUBSIDIARIES
    Company  
    Gross carrying amount  Impairment allowances  Net carrying amount 
At 31 December  Note  2021 
Rm
 
2020 
Rm
 
2021 
Rm
 
2020 
Rm
 
2021 
Rm
 
2020 
Rm
 
Indebtedness by subsidiaries 
Non-current  4 841  1 297  4 841  1 297 
Interest-bearing loans receivable1  10.3.2  4 841  1 297  4 841  1 297 
Current  6 437  12 073  (95) (153) 6 342  11 920 
Interest-bearing loans receivable1  10.3.2  858  6 041  858  6 041 
Non-interest-bearing loans receivable2  10.3.2  417  425  (60) (72) 357  353 
Interest-bearing treasury facilities receivable3  10.3.2  4 836  4 887  (33) 4 803  4 887 
Indebtedness by subsidiaries4  6.2.3  326  720  (2) (81) 324  639 
Total indebtedness by subsidiaries  11 278  13 370  (95) (153) 11 183  13 217 
Indebtedness to subsidiaries 
Current  (9 746) (16 071) (9 746) (16 071)
Non-interest-bearing loans payable  12.1.7  (76) (8 672) (76) (8 672)
Interest-bearing treasury facilities payable  12.1.7  (9 670) (7 399) (9 670) (7 399)
Total indebtedness to subsidiaries  (9 746) (16 071) (9 746) (16 071)
Net indebtedness to subsidiaries  1 532  (2 701) (95) (153) 1 437  (2 854)
1 The credit risk relating to these subsidiary parties is considered very low and therefore seen as performing. There have been no changes to this assessment as these parties are continuously performing against contractual terms and are in a good liquidity position. The ECL has been considered to be immaterial.
2 Relates mainly to impairment allowances on Gravelotte Iron Ore Company Proprietary Limited of R49 million (2020: R49 million) and Exxaro Base Metals and Industrial Minerals Holdings Proprietary Limited of R6 million (2020: R4 million). In 2021, the impairment allowance of R16 million on Exxaro Mountain Bike Academy NPC was reversed as the loan was waived.
3 2021: Relates mainly to an impairment allowance on Exxaro Coal Mpumalanga Proprietary Limited of R29 million.
4 2020: Relates to an impairment allowance on Exxaro Coal Central Proprietary Limited of R81 million.

Terms and conditions of indebtedness
Non-interest bearing loans
The loans are unsecured, have no fixed terms of repayment terms and are repayable within 1 month of a demand notice.

Interest-bearing treasury facilities
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.

  Company
  Acquisition loans receivable1 Back-to-back loans receivable2 Net carrying amount
As at 31 December 2021
Rm
2020
Rm
2021
Rm
2020
Rm
2021
Rm
2020
Rm
Back-to-back loans receivable
Exxaro Coal Proprietary Limited 5 576 7 150 5 576 7 150
Acquisition loans receivable
Exxaro Community NPC 90 137 90 137
Exxaro ESOP SPV 33 51 33 51
Total unsecured loans 123 188 5 576 7 150 5 699 7 338
Summary by financial year of redemption:
Less than six months 633 41 633 41
Six to 12 months 225 6 000 225 6 000
Between one and two years 450 411 450 411
Between two and three years 1 093 55 1 093 55
Between three and four years 450 643 450 643
Between four and five years 2 725 2 725
More than five years 123 188 123 188
Total unsecured loans 123 188 5 576 7 150 5 699 7 338
1 The acquisition loans receivable are unsecured, are repayable by no later than 10 years of the loan being granted and bear interest at a rate of 70% of Prime Rate.
2 The back-to-back loans receivable have similar terms as agreed with external lenders (excluding the project financing) except for interest, which is charged based on 3-month JIBAR plus a margin. Refer note 12.1.4 for detailed terms and conditions of the external borrowings, excluding the project financing.

The fixed margin percentage at the end of the reporting period on the back-to-back loans is summarised as follows:
Revolving credit facility: 2.76% (2020: 3.80%)
Bullet term loan facility: 2.51% (2020: 3.40%)
Amortised term loan facility: 2.41% (2020: 4.00%)
Bond R357 million: 1.65% (2020: 1.65%)
Bond R643 million: 1.89% (2020: 1.89%)

Report SelectorReport Index
X

Generate your own report

You can create your own custom PDF version of the report.

Select your areas of interest from the list below and submit your selection to create a PDF ready for you to download.

CHAPTER 1: THE YEAR IN BRIEF
Add section
The year in brief

CHAPTER 2: REPORTS
Add section
2.1 Responsibility statement on internal financial controls
2.2 Certificate by the group company secretary
2.3 Report of the directors
2.4 Audit committee report
2.5 Independent auditor's report

CHAPTER 3: SEGMENTAL REPORTING
Add section
3.1 Accounting policy relating to segmental reporting
3.2 Significant judgements and assumptions made by management in applying the related accounting policy
3.3 Reportable segments
3.4 Geographic location of segment assets

CHAPTER 4: FINANCIAL STATEMENTS
Add section
4.1.1 Group financial statements of comprehensive income
4.1.2 Group financial statements of financial position
4.1.3 Group financial statements of changes in equity
4.1.4 Group financial statements of cash flows
4.2.1 Company financial statement of comprehensive income
4.2.2 Company financial statement of financial position
4.2.3 Company financial statement of changes in equity
4.2.4 Company financial statement of cash flows

CHAPTER 5: EARNINGS
Add section
5.1 Accounting policy relating to earnings
5.2 Attributable earnings per share
5.3 Reconciliation of headline earnings
5.4 Headline earnings per share
5.5 Dividend distributions
5.6 Notes to the statements of cash flows relating to earnings

CHAPTER 6: OPERATIONAL PERFORMANCE AND WORKING CAPITAL
Add section
6.1 Operational performance
6.2 Working capital
6.3 Notes to the statements of cash flows relating to operational performance and working capital

CHAPTER 7: TAXATION
Add section
7.1 Accounting policies relating to taxation
7.2 Significant judgements and assumptions made by management in applying the related accounting policies
7.3 Income tax (expense)/benefit
7.4 Reconciliation of tax rates
7.5 Deferred tax
7.6 Notes to the statements of cash flows relating to taxation
7.7 Tax effect of other comprehensive income

CHAPTER 8: BUSINESS ENVIRONMENT AND PORTFOLIO CHANGES
Add section
8.1 Accounting policies relating to business environment and portfolio changes
8.2 Significant judgements and assumptions made by management in applying the related accounting policies
8.3 Divestment of non-core assets
8.4 Impairment charges of non-current assets
8.5 Non-current assets and liabilities held-for-sale

CHAPTER 9: ASSOCIATES AND JOINT ARRANGEMENTS
Add section
9.1 Accounting policies relating to investments in associates and joint arrangements
9.2 Significant judgements and assumptions made by management in applying the related accounting policies
9.3 Income from investments in associates and joint ventures
9.4 Investments in associates and joint arrangements
9.5 Movement analysis of investments in associates and joint ventures
9.6 Summarised financial information of associates and joint ventures
9.7 Reconciliation of carrying amounts of investments in associates and joint ventures

CHAPTER 10: ASSETS
Add section
10.1 Property, plant and equipment
10.2 Intangible assets
10.3 Financial assets
10.4 Other assets

CHAPTER 11: LEASES
Add section
11.1 Accounting policies relating to leases
11.2 Judgements and assumptions made by management in applying the related accounting policies
11.3 Right-of-use assets
11.4 Lease liabilities

CHAPTER 12: FUNDING
Add section
12.1 Debt
12.2 Equity

CHAPTER 13: PROVISIONS AND CONTINGENCIES
Add section
13.1 Accounting policies relating to provisions and contingencies
13.2 Significant judgements and assumptions made by management in applying the related accounting policies
13.3 Provisions
13.4 Contingent liabilities

CHAPTER 14: PEOPLE
Add section
14.1 Accounting policies relating to employee benefits
14.2 Significant judgements and assumptions made by management in applying the related accounting policies
14.3 Employee benefits
14.4 Retirement employee obligations
14.5 Directors' and prescribed officers' remuneration

CHAPTER 15: RELATED PARTIES
Add section
15.1 Related-party transactions

CHAPTER 16: FINANCIAL INSTRUMENTS
Add section
16.1 Accounting policies relating to financial instruments
16.2 Judgements and assumptions made by management in applying the related accounting policies
16.3 Financial instruments

CHAPTER 17: SUBSIDIARIES
Add section
17.1 Accounting policies relating to subsidiaries
17.2 Significant judgements and assumptions made by management in applying the related accounting policies
17.3 Transactions with subsidiaries
17.4 Summary of investments in subsidiaries
17.5 Summary of indebtedness by/(to) subsidiaries
17.6 Detailed analysis of investments in subsidiaries
17.7 Non-controlling interests

CHAPTER 18: COMPLIANCE
Add section
18.1 Basis of preparation
18.2 Adoption of new, amended and revised standards and interpretations
18.3 Events after the reporting period

CHAPTER 19: CHANGES TO COMPARATIVE INFORMATION
Add section
19.1 Re-presentation of group comparative information
19.2 Restatement of company comparative information

CHAPTER 20: ANNEXURES
Add section
Annexure 1 Shareholder analysis
Annexure 2 Definitions
Annexure 3 Administration
Annexure 4 Shareholders' diary

ACRONYMS
Add section
Acronyms