Integrated Report 2021
Exxaro Resources Limited
Annual Financial Statements 2021
Inventories are stated at the lower of cost (determined on the weighted average basis) and net realisable value.
The cost of finished goods and work-in-progress comprises raw materials, direct labour, other direct costs and fixed production overheads, but excludes interest charges. Fixed production overheads are allocated on the basis of normal capacity.
Net realisable value represents the estimated selling price in the ordinary course of business less applicable selling expenses. Write-downs to net realisable value and inventory losses are expensed in the period in which the write-downs or losses occur.
Inventory is presented as non-current when it is not expected to be sold or used within the normal business operating cycle.
Trade receivables are amounts due from customers for the sale of goods and services performed in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. Refer note 16.1 for further accounting policies relating to financial assets at amortised cost.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
| Group | Company | ||||
| At 31 December | 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
|
| Non-current | |||||
| Finished products | 145 | 128 | |||
| Total non-current inventories | 145 | 128 | |||
| Current | |||||
| Finished products1 | 887 | 1 128 | |||
| Work-in-progress | 12 | 12 | |||
| Raw materials | 4 | 7 | |||
| Spares and stores | 696 | 667 | 5 | 7 | |
| Merchandise2 | 7 | 7 | |||
| Total current inventories | 1 606 | 1 821 | 5 | 7 | |
| Total inventories | 1 751 | 1 949 | 5 | 7 | |
| 1 | Includes inventory carried at net realisable value amounting to nil (2020: R37 million). |
| 2 | Included in merchandise are biological assets classified as inventories. |
No inventories were pledged as security for liabilities in 2021 nor 2020.
| Group | Company | ||||
| At 31 December | 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
|
| Trade receivables | 2 626 | 2 698 | |||
|---|---|---|---|---|---|
| – Gross | 2 647 | 2 793 | |||
| – Impairment allowances | (21) | (95) | |||
| Other receivables | 75 | 129 | 1 | 7 | |
| – Gross | 101 | 153 | 2 | 11 | |
| – Impairment allowances | (26) | (24) | (1) | (4) | |
| Indebtedness by subsidiaries | 324 | 639 | |||
| – Gross | 326 | 720 | |||
| – Impairment allowances | (2) | (81) | |||
| Total trade and other receivables | 2 701 | 2 827 | 325 | 646 | |
| Group | Company | ||||
| At 31 December | 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
|
| Trade receivables | |||||
| Opening balance | (95) | (95) | |||
| – Performing | (15) | (5) | |||
| – Under-performing | (1) | ||||
| – Non-performing | (80) | (89) | |||
| Movement in impairment allowances | 74 | ||||
| – Performing | (6) | (10) | |||
| – Under-performing | 1 | ||||
| – Non-performing | 80 | 9 | |||
| At end of the year | (21) | (95) | |||
| – Performing | (21) | (15) | |||
| – Non-performing | (80) | ||||
| Other receivables | |||||
| Opening balance | (24) | (151) | (4) | (11) | |
| – Non-performing | (24) | (151) | (4) | (11) | |
| Movement in impairment allowances | (2) | 127 | 3 | 7 | |
| – Non-performing | (2) | 127 | 3 | 7 | |
| At end of the year | (26) | (24) | (1) | (4) | |
| – Non-performing | (26) | (24) | (1) | (4) | |
| Indebtedness by subsidiaries | |||||
| Opening balance | (81) | ||||
| – Performing | (81) | ||||
| Movement in impairment allowances | 79 | (81) | |||
| – Performing | 79 | (81) | |||
| At end of the year | (2) | (81) | |||
| – Performing | (2) | (81) | |||
Trade and other receivables are stated after the following write-offs recognised in profit or loss:
| Group | Company | ||||
| For the year ended 31 December | 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
|
| Trade receivables | (79) | (20) | |||
|---|---|---|---|---|---|
| Other receivables | (1) | (15) | (10) | ||
| Indebtedness by subsidiaries | (79) | ||||
| Total write-off of trade and other receivables | (80) | (35) | (79) | (10) | |
For a detailed age analysis of the trade and other receivables refer to note 16.3.3.4.2.
| Group | Company | ||||
| At 31 December | 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
|
| Non-current | |||||
| Other payables1 | 53 | 24 | |||
| Total non-current other payables | 53 | 24 | |||
| Current | |||||
| Trade payables | 999 | 1 371 | 55 | 114 | |
| Other payables2 | 1 231 | 1 569 | 104 | 86 | |
| Total current trade and other payables | 2 230 | 2 940 | 159 | 200 | |
| Total trade and other payables | 2 283 | 2 964 | 159 | 200 | |
| 1 | Relates to retention creditors. |
| 2 | 2020: includes an amount of R296 million owing to Arnot Opco in relation to the environmental rehabilitation funds which are being held in trust on their behalf. This amount was settled in 2021. |
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