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Exxaro Resources Limited
Annual Financial Statements 2021
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CHAPTER 9:
Associates and joint arrangements

  • 9.4INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS
Nature of  
business1
Country of
incorporation
Percentage holding
At 31 December Note 2021
%
2020
%
Unlisted
Associates
SIOC3 M   RSA 20.62 20.62
Tronox SA4 M   RSA 26.00
RBCT T   RSA 10.26 10.26
Black Mountain5 M   RSA 26.00 26.00
Insect Technology6 8.4 WC   UK 25.85 25.85
LightApp EN   Israel 28.59 28.59
GAM7 EN   RSA 22.00 22.00
Joint ventures
Mafube M   RSA 50.00 50.00
Total investments in associates and JVs 9.5
Unincorporated joint operations
Moranbah coal project M   AUS 50.00 50.00
Refer below for other balances relating to associates and JVs
Included in non-current assets held-for-sale:
Associates
Listed: Tronox Holdings plc M   UK 10.26
Unlisted: Tumelo8 M   RSA 49.00
Loans to associates: Tumelo
– Current gross
– Current impairment allowances
Group Company Fair value2 Fair value
hierarchy level
Valuation
technique
At 31 December 2021
Rm
2020
Rm
2021
Rm
2020
Rm
2021
Rm
2020
Rm
Unlisted
Associates 15 542 18 594 143 1 324
SIOC3 12 037 12 820 32 030 43 358 2 Adjusted equity
value
Tronox SA4 2 628 1 181
RBCT 2 034 2 053
Black Mountain5 1 350 995
Insect Technology6
LightApp 121 98 143 143
GAM7
Joint ventures 1 780 1 412
Mafube 1 780 1 412
Total investments in associates and JVs 17 322 20 006 143 1 324
Unincorporated joint operations
Moranbah coal project
Refer below for other balances relating to associates and JVs
Included in non-current assets held-for-sale: 1 880 3 133
Associates 1 741 3 133
Listed: Tronox Holdings plc 1 741 3 133
Unlisted: Tumelo8
Loans to associates: Tumelo 139
– Current gross 170
– Current impairment allowances (31)
1 M – Mining, EN – Energy, T – Export terminal, WC – Waste conversion.
2 Fair value represents the directors’ valuation at the reporting date.
3 The fair value of SIOC is determined by applying an adjusted equity valuation technique, based on the share price of KIO on 31 December 2021 of R460.09 per share (31 December 2020: R622.81 per share), adjusted for a liquidity discount of 20% (2020: 20%).
4 The investment in Tronox SA was sold on 24 February 2021. (Refer note 6.1.4)
5 Black Mountain’s financial year end is 31 March and therefore not co-terminous with that of Exxaro. Financial information has been obtained from published information or management accounts as appropriate.
6 The investment in Insect Technology was fully impaired in 2020.
7 The investment in GAM was fully impaired in 2019.
8 The investment in Tumelo was classified as a non-current asset held-for-sale on 31 December 2020 and subsequently sold on 3 September 2021 as part of the divestment of the ECC operation.

Restrictions

There are no significant restrictions on the ability of associates or JVs to transfer funds to Exxaro in the form of cash dividends, or to repay loans or advances made by Exxaro.

Risks

Refer note 10.1.4 for details with regard to capital commitments relating to associates and JVs.

Refer note 16.3.4 for details with regard to loan commitments relating to associates and JVs.

Refer note 13.4.1 for details with regard to contingent liabilities relating to associates and JVs.

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CHAPTER 1: THE YEAR IN BRIEF
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The year in brief

CHAPTER 2: REPORTS
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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
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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
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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
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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
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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
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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
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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
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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
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10.1 Property, plant and equipment
10.2 Intangible assets
10.3 Financial assets
10.4 Other assets

CHAPTER 11: LEASES
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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
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12.1 Debt
12.2 Equity

CHAPTER 13: PROVISIONS AND CONTINGENCIES
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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
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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
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15.1 Related-party transactions

CHAPTER 16: FINANCIAL INSTRUMENTS
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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
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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
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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
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19.1 Re-presentation of group comparative information
19.2 Restatement of company comparative information

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

ACRONYMS
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Acronyms