Exxaro Resources Limited
Annual Financial Statements 2022
In line with reporting trends, 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 comparative segmental information has been re-presented for the equity interest in LightApp, which has been reclassified from the energy segment to the other segment, in line with the revised strategic focus of the group.
The coal operations produce thermal coal, metallurgical coal and SSCC and are made up of the following reportable segments:
Commercial Waterberg: Comprising mainly of the Grootegeluk operation.
Commercial Mpumalanga: Comprising the Belfast and Leeuwpan operations, as well as the 50% (2021: 50%) joint venture in Mafube with Thungela. The ECC operation, including the 49% equity interest in Tumelo, formed part of this reportable segment until its effective date of disposal on 3 September 2021.
Tied: Comprising of the Matla mine supplying its entire coal supply to Eskom.
Other: Comprising of the other coal affiliated operations, including mines in closure and a 10.26% (2021: 10.26%) equity interest in RBCT.
The export revenue and related export cost items are allocated between the coal reportable segments and disclosed based on the origin of the initial coal production.
The energy operations generate energy (electricity) from renewable energy technology. The energy reportable segment comprises mainly of the Cennergi controlled operation.
The ferrous operations are made up of the following reportable segments:
Alloys: Comprising of the FerroAlloys operation which manufactures ferrosilicon.
Other: Comprising mainly of the 20.62% (2021: 20.62%) equity interest in SIOC.
Following the disposal of Tronox Holdings plc and Tronox SA during 2021, the TiO2 reportable segment has been discontinued (refer note 6.1.4).
The other operations of the group are made up of the following reportable segments:
Base metals: Comprising of the 26% (2021: 26%) equity interest in Black Mountain.
Other: Comprising mainly of the corporate office (rendering corporate management services), the Ferroland agricultural operation, the 25.85% (2021: 25.85%) equity interest in Insect Technology and the 28.01% (2021: 28.59%) equity interest in LightApp.
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 2022 | |||||
| External revenue | 6.1.2 | 23 613 | 15 797 | 5 561 | |
| Segmental net operating profit/(loss) | 11 731 | 5 323 | 151 | (389) | |
| External finance income | 12.1.2 | 24 | 4 | 5 | |
| External finance costs | 12.1.2 | (58) | (91) | (62) | |
| Income tax (expense)/benefit | 7.3 | (3 178) | (1 307) | (61) | 473 |
| Depreciation and amortisation | 6.1.3 | (1 490) | (609) | (14) | (6) |
| Net losses on disposal of property, plant and equipment | 6.1.3 | (9) | (72) | (7) | |
| Impairment charges of equity-accounted investments | 8.4 | ||||
| Loss on disposal of subsidiary | 8.3 | ||||
| Loss on dilution of investment in associate | 9.5 | ||||
| Share of income/(loss) of equity-accounted investments | 9.3 | 1 902 | (10) | ||
| Cash generated by/(utilised in) operations | 6.1.3 | 12 874 | 6 539 | 267 | (1 459) |
| Capital spend on property, plant and equipment | (1 348) | (252) | (5) | ||
| At 31 December 2022 | |||||
| Segmental assets and liabilities | |||||
| Deferred tax1 | 7.5 | ||||
| Equity-accounted investments | 9.4 | 2 999 | 2 024 | ||
| External assets | 30 897 | 6 068 | 1 213 | 3 258 | |
| Total assets | 30 897 | 9 067 | 1 213 | 5 282 | |
| External liabilities | 1 857 | 2 577 | 1 301 | 1 143 | |
| Deferred tax1 | 7.5 | 6 997 | 978 | (56) | (108) |
| Total liabilities | 8 854 | 3 555 | 1 245 | 1 035 | |
| 1 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||||
| Energy Rm |
Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
|||
| For the year ended 31 December 2022 | ||||||||
| External revenue | 1 159 | 224 | 15 | 46 369 | ||||
| Segmental net operating profit/(loss) | 437 | 49 | (1) | (1 081) | 16 220 | |||
| External finance income | 20 | 641 | 694 | |||||
| External finance costs | (503) | (1) | (337) | (1 052) | ||||
| Income tax (expense)/benefit | 60 | (5) | (269) | (4 287) | ||||
| Depreciation and amortisation | (391) | (7) | (164) | (2 681) | ||||
| Net losses on disposal of property, plant and equipment | (9) | (97) | ||||||
| Impairment charges of equity-accounted investments | (53) | (53) | ||||||
| Loss on disposal of subsidiary | (1) | (1) | ||||||
| Loss on dilution of investment in associate | (2) | (2) | ||||||
| Share of income/(loss) of equity-accounted investments | 4 077 | 578 | (70) | 6 477 | ||||
| Cash generated by/(utilised in) operations | 837 | (22) | (1) | (172) | 18 863 | |||
| Capital spend on property, plant and equipment | (20) | (1) | (26) | (1 652) | ||||
| At 31 December 2022 | ||||||||
| Segmental assets and liabilities | ||||||||
| Deferred tax1 | 1 | 11 | 1 | 241 | 254 | |||
| Equity-accounted investments | 11 104 | 1 933 | 18 060 | |||||
| External assets | 8 614 | 421 | 25 | 16 335 | 66 831 | |||
| Total assets | 8 615 | 432 | 11 130 | 1 933 | 16 576 | 85 145 | ||
| External liabilities | 4 804 | 26 | 1 | 5 389 | 17 098 | |||
| Deferred tax1 | 884 | (27) | 8 668 | |||||
| Total liabilities | 5 688 | 26 | 1 | 5 362 | 25 766 | |||
| 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 2021 (Re-presented)1 | |||||
| External revenue | 6.1.2 | 16 852 | 9 439 | 5 089 | 15 |
| Segmental net operating profit/(loss)1 | 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 | 7.3 | (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) |
| Net losses on disposal of property, plant and equipment | 6.1.3 | (22) | (3) | 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 investments1 | 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 (Re-presented)1 | |||||
| Segmental assets and liabilities | |||||
| Deferred tax2 | 7.5 | 51 | 33 | 118 | |
| Equity-accounted investments1 | 9.4 | 1 780 | 2 034 | ||
| External assets | 30 880 | 6 391 | 1 216 | 2 167 | |
| Total assets1 | 30 880 | 8 222 | 1 249 | 4 319 | |
| External liabilities | 2 122 | 1 744 | 1 212 | 547 | |
| Deferred tax2 | 7.5 | 7 220 | 180 | 1 | |
| Total liabilities | 9 342 | 1 924 | 1 212 | 548 | |
| 1 | LightApp has been reclassified from the energy segment to the other segment. |
| 2 | Offset per legal entity and tax authority. |
| 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 (Re-presented)1 | ||||||||
| External revenue | 1 193 | 168 | 15 | 32 771 | ||||
| Segmental net operating profit/(loss)1 | 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) | ||||
| Net losses on disposal of property, plant and equipment | (25) | (46) | ||||||
| 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 investments1 | 9 037 | 54 | 352 | 16 | 9 844 | |||
| – Continuing operations | 9 037 | 352 | 16 | 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 (Re-presented)1 | ||||||||
| Segmental assets and liabilities | ||||||||
| Deferred tax2 | 38 | 18 | 111 | 369 | ||||
| Equity-accounted investments1 | 12 037 | 1 350 | 121 | 17 322 | ||||
| External assets | 8 516 | 358 | 26 | 8 472 | 58 026 | |||
| Total assets1 | 8 554 | 376 | 12 063 | 1 350 | 8 704 | 75 717 | ||
| External liabilities | 5 239 | 28 | 1 | 6 455 | 17 348 | |||
| Deferred tax2 | 920 | (50) | 8 271 | |||||
| Total liabilities | 6 159 | 28 | 1 | 6 405 | 25 619 |
| 1 | LightApp has been reclassified from the energy segment to the other segment. |
| 2 | Offset per legal entity and tax authority. |
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