Integrated Report 2021
Exxaro Resources Limited
Annual Financial Statements 2021
The group divested from certain of its assets (or assets planned for disposal) that were identified as non-core to the future objectives of Exxaro. These divestments have taken place either by way of sale, transfer, deregistration or liquidation and presented as summarised below:
| Group | Company | ||||
| 2021 Rm |
2020 Rm |
2021 Rm |
2020 Rm |
||
| Loss on disposal of subsidiaries per statement of comprehensive income: | (947) | ||||
|---|---|---|---|---|---|
| – ECC operation | (946) | ||||
| – ADX | (1) | ||||
| Included in operating expenses1: | 21 | 2 | 121 | ||
| – Arnot operation: Gain on transfer of operation | 4 | ||||
| – EMJV: Gain on disposal of joint operation | 17 | ||||
| – ECC: Loss on disposal of subsidiary | 2 | ||||
| – Eyesizwe: Gain on partial disposal of subsidiary (Inter-group) | 122 | ||||
| – Exxaro Beijing: Loss on deregistration of subsidiary | (1) | ||||
1 Items presented in operating expenses as the impact is considered not to be material.
| Group | ||||
| For the year ended 31 December 2021 | ECC subsidiaries1 Rm |
ADX2 Rm |
||
| Consideration: | ||||
| – Cash received | 100 | 1 | ||
| – Cash sold | (1) | (1) | ||
| – Deferred consideration receivable | 150 | |||
| – Vendor finance loan | 300 | |||
| – Environmental rehabilitation funds | 721 | |||
| Total disposal consideration | 1 270 | |||
| Carrying amount of net assets sold | (1 383) | (1) | ||
| Non-current | (860) | (1) | ||
| – Property, plant and equipment | (948) | |||
| – Right-of-use assets | (1) | |||
| – Intangible assets | (2) | (1) | ||
| – Financial assets at FVPL | (706) | |||
| – Investments in associates | (19) | |||
| – Provisions | 785 | |||
| – Retirement employee obligations | 1 | |||
| – Lease liabilities | 7 | |||
| – Other payables | 2 | |||
| – Deferred tax liabilities | 21 | |||
| Current | (523) | |||
| – Financial assets at amortised cost | (165) | |||
| – Inventories | (522) | |||
| – Trade and other receivables | (160) | |||
| – Other assets | (78) | |||
| – Lease liabilities | 8 | |||
| – Trade and other payables | 354 | |||
| – Other liabilities | 40 | |||
| Loss on disposal of subsidiaries | (113) | (1) | ||
| Non-controlling interests3 | (833) | |||
| Net loss on disposal of subsidiaries | (946) | (1) | ||
| Tax effect | 93 | |||
| 1 | On 3 September 2021, the ECC operation was sold. |
| 2 | Sold on 31 December 2021. |
| 3 | Relates to deficit NCI of Dorstfontein. |
| Group | ||
| For the year ended 31 December 2020 | Arnot operation1 Rm |
EMJV2 Rm |
| Consideration: | ||
| – Cash transferred | (14) | |
| Total disposal consideration | (14) | |
| Carrying amount of net liabilities sold | 18 | 17 |
| – Non-current other assets | (1 164) | |
| – Financial assets at amortised cost | (280) | |
| – Other current assets | (612) | |
| – Provisions | 1 444 | 612 |
| – Retirement employee obligation | 7 | 17 |
| – Trade and other payables | 5 | |
| – Other current liabilities | 6 | |
| Gain on transfer of operation/disposal of joint operation3 | 4 | 17 |
| 1 | Transfer of the Arnot operation to Arnot Opco. |
| 2 | Relates to the disposal of the EMJV. |
| 3 | After tax of nil. |
| Company | ||
| For the year ended 31 December 2021 | ECC1 Rm |
ADX2 Rm |
| Consideration: | ||
| – Cash received | 100 | 1 |
| – Deferred consideration receivable | 150 | |
| – Vendor finance loan | 300 | |
| – Environmental rehabilitation funds | 721 | |
| Total disposal consideration | 1 271 | 1 |
| Carrying amount of net assets sold | (1 269) | (1) |
| – Investment in subsidiaries | (969) | (1) |
| – Financial assets receivable | (300) | |
| Gain on disposal of subsidiary | 2 | |
| Tax effect | 93 | |
| 1 | On 3 September 2021, Exxaro sold its equity interest in ECC. |
| 2 | Sold on 31 December 2021. |
| Company | ||
| For the year ended 31 December 2020 | Eyesizwe1 Rm |
Exxaro Beijing2 Rm |
| Consideration: | ||
| – Cash | 924 | |
| – Loans advanced | 196 | |
| Total disposal consideration | 1 120 | |
| Carrying amount of investment sold/deregistered | (998) | (1) |
| – Investment in subsidiaries | (998) | (1) |
| Gain on disposal/(loss on deregistration) of subsidiary3 | 122 | (1) |
| 1 | Relates to the shares sold to Exxaro ESOP SPV and Exxaro Community NPC. |
| 2 | Relates to the deregistration of Exxaro Resources (Beijing) Commercial Company Limited. |
| 3 | After tax of nil. |
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