Exxaro Resources Limited
Annual Financial Statements 2022
| Company | |||||||||
| Gross carrying amount | Impairment allowances | Net carrying amount | |||||||
| At 31 December | Note | 2022 Rm |
2021 Rm |
2022 Rm |
2021 Rm |
2022 Rm |
2021 Rm |
||
| Indebtedness to subsidiaries | |||||||||
| Non-current | 4 120 | 4 841 | 4 120 | 4 841 | |||||
| Interest-bearing loans receivable1 | 10.3.2 | 4 120 | 4 841 | 4 120 | 4 841 | ||||
| Current | 2 090 | 6 437 | (68) | (95) | 2 022 | 6 342 | |||
| Interest-bearing loans receivable1 | 10.3.2 | 511 | 858 | 511 | 858 | ||||
| Non-interest-bearing loans receivable2 | 10.3.2 | 741 | 417 | (65) | (60) | 676 | 357 | ||
| Interest-bearing treasury facilities receivable3 | 10.3.2 | 561 | 4 836 | (2) | (33 | 559 | 4 803 | ||
| Indebtedness by subsidiaries | 6.2.3 | 277 | 326 | (1) | (2) | 276 | 324 | ||
| Total indebtedness by subsidiaries | 6 210 | 11 278 | (68) | (95) | 6 142 | 11 183 | |||
| Indebtedness to subsidiaries | |||||||||
| Current | (12 059) | (9 746) | (12 059) | (9 746) | |||||
| Non-interest-bearing loans payable | 12.1.7 | (85) | (76) | (85) | (76) | ||||
| Interest-bearing treasury facilities payable | 12.1.7 | (11 974) | (9 670) | (11 974) | (9 670) | ||||
| Total indebtedness to subsidiaries | (12 059) | (9 746) | (12 059 | (9 746) | |||||
| Net indebtedness (to)/by subsidiaries | (5 849) | 1 532 | (68) | (95) | (5 917) | 1 437 | |||
| 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 R52 million (2021: R49 million) and Exxaro Base Metals and Industrial Minerals Holdings Proprietary Limited of R4 million (2021: R6 million). |
| 3 | 2021: Relates mainly to an impairment allowance on Exxaro Coal Mpumalanga Proprietary Limited of R29 million. |
Terms and conditions of indebtedness
Non-interest bearing loans
The loans are unsecured, have no fixed terms of repayment and are repayable within one 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.
Interest-bearing loans receivable
Interest-bearing loans receivable, and their redemption profiles, comprise of:
| Company | ||||||||
| Acquisition loans receivable1 | Back-to-back loans receivable2 | Net carrying amount | ||||||
| As at 31 December | 2022
Rm |
2021 Rm |
2022 Rm |
2021 Rm |
2022 Rm |
2021 Rm |
||
| Back-to-back loans receivable | ||||||||
| Exxaro Coal Proprietary Limited | 4 554 | 5 576 | 4 554 | 5 576 | ||||
| Acquisition loans receivable | ||||||||
| Exxaro Community NPC | 58 | 90 | 58 | 90 | ||||
| Exxaro ESOP SPV | 19 | 33 | 19 | 33 | ||||
| Total unsecured loans | 77 | 123 | 4 554 | 5 576 | 4 631 | 5 699 | ||
| Summary by financial year of redemption: | ||||||||
| Less than six months | 286 | 633 | 286 | 633 | ||||
| Six to 12 months | 225 | 225 | 225 | 225 | ||||
| Between one and two years | 1 093 | 450 | 1 093 | 450 | ||||
| Between two and three years | 450 | 1 093 | 450 | 1 093 | ||||
| Between three and four years | 2 500 | 450 | 2 500 | 450 | ||||
| Between four and five years | 2 725 | 2 725 | ||||||
| More than five years | 77 | 123 | 77 | 123 | ||||
| Total unsecured loans | 77 | 123 | 4 554 | 5 576 | 4 631 | 5 699 | ||
| 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:
|
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