Integrated Report 2021
Exxaro Resources Limited
Annual Financial Statements 2021
In line with reporting trends and better disclosure, emphasis is placed on controllable costs. Indirect corporate costs are reported on a gross level in the other reportable segment.
The segments, as described below, offer different goods and services, and are managed separately based on commodity, location and support function grouping. The group executive committees review internal management reports on these operating segments at least quarterly.
The coal reportable segment is comprised of the commercial (Waterberg and Mpumalanga), tied and other operations. The commercial Mpumalanga operations include a 50% (2020: 50%) investment in Mafube (a joint venture with Thungela, previously Anglo). The 10.26% (2020: 10.26%) effective equity interest in RBCT is included in the other coal operations. The ECC operation (including a 49% (2020: 49%) equity interest in Tumelo) was included in the commercial Mpumalanga reportable segment until the effective date of disposal on 3 September 2021 (refer note 8.3). The coal operations produce thermal coal, metallurgical coal and SSCC.
The export revenue and related export cost items have been allocated between the coal reportable segments based on the origin of the initial coal production.
The energy reportable segment includes Cennergi as a controlled operation from 1 April 2020 (an equity interest of 50% up to 31 March 2020). It further includes an equity interest of 28.59% (2020: 28.59%) in LightApp.
The ferrous reportable segment mainly comprises the 20.62% (2020: 20.62%) equity interest in SIOC (located in the Northern Cape province) reported within the other ferrous reportable segment as well as the FerroAlloys operation (referred to as Alloys). The Alloys operation manufactures ferrosilicon.
Following the disposal of Tronox Holdings plc and Tronox SA, the TiO2 reportable segment has been discontinued (refer note 6.1.4).
The other reportable segment is split between the base metals and other reportable segments. The 26% (2020: 26%) equity interest in Black Mountain (located in the Northern Cape province) is included in the base metals reportable segment. The other reportable segment comprises a 25.85% (2020: 25.85%) equity interest in Insect Technology, the Ferroland agricultural operation and the corporate office which renders corporate management services. The equity interest in Curapipe was sold on 9 November 2020.
The following tables present a summary of the segmental information:
| Coal | ||||||
| Commercial | ||||||
| Note | Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
||
| For the year ended 31 December 2021 | ||||||
| External revenue | 6.1.2 | 16 852 | 9 439 | 5 089 | 15 | |
| Segmental net operating profit/(loss) | 7 137 | 534 | 147 | (235) | ||
| – Continuing operations | 7 137 | 534 | 147 | (235) | ||
| – Discontinued operations | 6.1.4 | |||||
| External finance income | 12.1.2 | 23 | 2 | 11 | ||
| External finance costs | 12.1.2 | (50) | (116) | (51) | ||
| Income tax (expense)/benefit | (2 160) | (208) | (45) | 272 | ||
| – Continuing operations | (2 160) | (208) | (45) | 272 | ||
| – Discontinued operations | 6.1.4 | |||||
| Depreciation and amortisation | 6.1.3 | (1 447) | (636) | (14) | (4) | |
| Impairment charges of non-current operating assets | 8.4 | (21) | ||||
| Net gains on disposal of associates | ||||||
| – Discontinued operations | 6.1.4 | |||||
| Loss on disposal of subsidiaries | 8.3 | (946) | ||||
| Share of income/(loss) of equity-accounted investments | 404 | (19) | ||||
| – Continuing operations | 9.3 | 404 | (19) | |||
| – Discontinued operations | 6.1.4 | |||||
| Cash generated by/(utilised in) operations | 6.3.1 | 8 533 | 1 481 | 127 | (297) | |
| Capital spend on property, plant and equipment | (1 990) | (392) | (1) | (17) | ||
| At 31 December 2021 | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax1 | 7.5 | 51 | 33 | 118 | ||
| Equity-accounted investments | 9.4 | 1 780 | 2 034 | |||
| External assets | 30 880 | 6 391 | 1 216 | 2 167 | ||
| Total assets | 30 880 | 8 222 | 1 249 | 4 319 | ||
| External liabilities | 2 122 | 1 744 | 1 212 | 547 | ||
| Deferred tax1 | 7.5 | 7 220 | 180 | 1 | ||
| Total liabilities | 9 342 | 1 924 | 1 212 | 548 | ||
| Ferrous | Other | |||||||
| Energy Rm |
Alloys Rm |
Other ferrous Rm |
TiO2 Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2021 | ||||||||
| External revenue | 1 193 | 168 | 15 | 32 771 | ||||
| Segmental net operating profit/(loss) | 525 | 14 | 2 217 | (662) | 9 677 | |||
| – Continuing operations | 525 | 14 | (662) | 7 460 | ||||
| – Discontinued operations | 2 217 | 2 217 | ||||||
| External finance income | 12 | 2 | 189 | 239 | ||||
| External finance costs | (503) | (1) | (139) | (860) | ||||
| Income tax (expense)/benefit | (26) | (379) | (36) | (2 582) | ||||
| – Continuing operations | (26) | (36) | (2 203) | |||||
| – Discontinued operations | (379) | (379) | ||||||
| Depreciation and amortisation | (388) | (10) | (178) | (2 677) | ||||
| Impairment charges of non-current operating assets | (21) | |||||||
| Net gains on disposal of associates | 1 339 | 1 339 | ||||||
| – Discontinued operations | 1 339 | 1 339 | ||||||
| Loss on disposal of subsidiaries | (1) | (947) | ||||||
| Share of income/(loss) of equity-accounted investments | 16 | 9 037 | 54 | 352 | 9 844 | |||
| – Continuing operations | 16 | 9 037 | 352 | 9 790 | ||||
| – Discontinued operations | 54 | 54 | ||||||
| Cash generated by/(utilised in) operations | 904 | (41) | (3) | (152) | 10 552 | |||
| Capital spend on property, plant and equipment | (1) | (1) | (69) | (2 471) | ||||
| At 31 December 2021 | ||||||||
| Segmental assets and liabilities | ||||||||
| Deferred tax1 | 38 | 18 | 111 | 369 | ||||
| Equity-accounted investments | 121 | 12 037 | 1 350 | 17 322 | ||||
| External assets | 8 516 | 358 | 26 | 8 472 | 58 026 | |||
| Total assets | 8 675 | 376 | 12 063 | 1 350 | 8 583 | 75 717 | ||
| External liabilities | 5 239 | 28 | 1 | 6 455 | 17 348 | |||
| Deferred tax1 | 920 | (50) | 8 271 | |||||
| Total liabilities | 6 159 | 28 | 1 | 6 405 | 25 619 | |||
| 1 | Offset per legal entity and tax authority. |
| Coal | ||||||
| Commercial | ||||||
| Note | Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
||
| For the year ended 31 December 2020 (Re-presented)1 | ||||||
| External revenue | 6.1.2 | 15 449 | 8 037 | 4 355 | 34 | |
| Segmental net operating profit/(loss)1 | 6 668 | (2 419) | 145 | (114) | ||
| – Continuing operations | 6 668 | (2 419) | 145 | (114) | ||
| External finance income | 12.1.2 | 33 | 3 | 8 | ||
| External finance costs | 12.1.2 | (48) | (171) | (52) | ||
| Income tax (expense)/benefit | (2 020) | 530 | (46) | 782 | ||
| – Continuing operations | (2 020) | 530 | (46) | 782 | ||
| Depreciation and amortisation | 6.1.3 | (1 373) | (611) | (19) | (2) | |
| Impairment charges of non-current operating assets2 | 8.4 | (1 378) | ||||
| Gain on deemed disposal of JV | 6.1.3 | |||||
| Gains on disposal of joint operation and transfer of operation | 6.1.3 | 17 | 4 | |||
| Share of income/(loss) of equity-accounted investments | 67 | 5 | ||||
| – Continuing operations | 9.3 | 67 | 5 | |||
| – Discontinued operations1 | 6.1.4 | |||||
| Impairment charges of equity-accounted investments1 | 8.4 | |||||
| Cash generated by/(utilised in) operations | 6.3.1 | 8 223 | (879) | 241 | (1 717) | |
| Capital spend on property. plant and equipment | (2 326) | (717) | (1) | (16) | ||
| At 31 December 2020 | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 7.5 | 112 | (158) | 589 | ||
| Equity-accounted investments | 9.4 | 1 412 | 2 053 | |||
| External assets | 30 155 | 6 160 | 1 138 | 2 468 | ||
| Assets | 30 155 | 7 684 | 980 | 5 110 | ||
| Non-current assets held-for-sale | 8.5 | 2 008 | ||||
| Total assets | 30 155 | 9 692 | 980 | 5 110 | ||
| External liabilities | 2 129 | 1 288 | 926 | 1 308 | ||
| Deferred tax2 | 7.5 | 6 934 | 229 | 189 | ||
| Liabilities | 9 063 | 1 517 | 926 | 1 497 | ||
| Non-current liabilities held-for-sale | 8.5 | 1 138 | ||||
| Total liabilities | 9 063 | 2 655 | 926 | 1 497 | ||
| Ferrous | Other | |||||||
| Energy Rm |
Alloys Rm |
Other ferrous Rm |
TiO2 Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2020 (Re-presented)1 | ||||||||
| External revenue | 889 | 147 | 13 | 28 924 | ||||
| Segmental net operating profit/(loss)1 | 1 619 | 4 | 93 | (1 199) | 4 797 | |||
| – Continuing operations | 1 619 | 4 | 93 | (1 199) | 4 797 | |||
| External finance income | 12 | 159 | 215 | |||||
| External finance costs | (402) | (1) | (373) | (1 047) | ||||
| Income tax (expense)/benefit | 1 | 7 | 27 | (719) | ||||
| – Continuing operations | 1 | 7 | 27 | (719) | ||||
| Depreciation and amortisation | (291) | (6) | (134) | (2 436) | ||||
| Impairment charges of non-current operating assets2 | (1 378) | |||||||
| Gain on deemed disposal of JV | 1 321 | 1 321 | ||||||
| Gains on disposal of joint operation and transfer of operation | 21 | |||||||
| Share of income/(loss) of equity-accounted investments | (5) | 6 125 | 207 | 122 | (110) | 6 411 | ||
| – Continuing operations | (5) | 6 125 | 122 | (110) | 6 204 | |||
| – Discontinued operations1 | 207 | 207 | ||||||
| Impairment charges of equity-accounted investments1 | (504) | (504) | ||||||
| Cash generated by/(utilised in) operations | 693 | (38) | (4) | 1 251 | 7 770 | |||
| Capital spend on property. plant and equipment | (1) | (2) | (112) | (3 175) | ||||
| At 31 December 2020 | ||||||||
| Segmental assets and liabilities | ||||||||
| Deferred tax2 | 146 | 17 | 1 | 369 | 1 076 | |||
| Equity-accounted investments | 98 | 12 820 | 2 628 | 995 | 20 006 | |||
| External assets | 8 825 | 309 | 26 | 4 694 | 53 775 | |||
| Assets | 9 069 | 326 | 12 847 | 2 628 | 995 | 5 063 | 74 857 | |
| Non-current assets held-for-sale | 1 741 | 3 749 | ||||||
| Total assets | 9 069 | 326 | 12 847 | 4 369 | 995 | 5 063 | 78 606 | |
| External liabilities | 5 715 | 29 | 3 | 9 713 | 21 111 | |||
| Deferred tax2 | 937 | (53) | 8 236 | |||||
| Liabilities | 6 652 | 29 | 3 | 9 660 | 29 347 | |||
| Non-current liabilities held-for-sale | 1 138 | |||||||
| Total liabilities | 6 652 | 29 | 3 | 9 660 | 30 485 | |||
| 1 | Refer note 19.1. |
| 2 | Offset per legal entity and tax authority. |
Report Index