CHAPTER 3:Segmental reporting

• 3.3REPORTABLE SEGMENTS

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.

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 performance of the operating segments is assessed based on EBITDA, which is considered to be a more appropriate performance measure of profitability for the group’s business (refer chapter 19, annexure 2).

Coal

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 of the Belfast and Leeuwpan operations, as well as the 50% (2022: 50%) joint venture in Mafube with Thungela.
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% (2022: 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.

Energy

The energy operations generate electricity from renewable energy technology. The energy reportable segment comprises mainly of the Cennergi controlled operation.

Ferrous

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% (2022: 20.62%) equity interest in SIOC.

Other

The other operations of the group are made up of the following reportable segments: Base metals: Comprising of the 26% (2022: 26%) equity interest in Black Mountain.

Other: Comprising mainly of the corporate office (rendering corporate management services), the Ferroland agricultural operation, the 25.85% (2022: 25.85%) equity interest in Insect Technology and the 28.01% (2022: 28.01%) equity interest in LightApp.

The following tables present a summary of the group's segmental information:

		Coal
		Commercial
For the year ended 31 December 2023	Note	Waterberg  Rm	Mpumalanga  Rm	Tied  Rm	Other  Rm		Energy  Rm
External revenue	6.1.2	22 496	8 666	5 783			1 345
Segmental net operating profit/(loss)		10 173	399	173	(681)		630
Add back:
Depreciation and amortisation	6.1.3	1 512	595	6	16		393
Net losses on disposal of property, plant and equipment	6.1.3	17	3
EBITDA1		11 702	997	179	(665)		1 023
Other key items:
Share of income/(loss) of equity-accounted investments	9.3		508		(10)
External finance income	12.1.2	26	8		61		40
External finance costs	12.1.2	(66)	(97)		(79)		(515)
Income tax expense	7.3	(2 603)	(105)	(27)	(111)		(71)
Raw materials and consumables1	6.1.3	(2 002)	(2 755)	(497)	(2)		(1)
Staff costs1	6.1.3	(2 740)	(395)	(1 737)	(253)		(68)
Royalties1;2	6.1.3	(1 188)	(108)	(13)	167
Contract mining1	6.1.3	(60)	(1 434)
Repairs and maintenance1	6.1.3	(1 677)	(282)	(975)	(1)		(9)
Railage and transport1	6.1.3	(1 744)	(1 424)	(6)
Movement in provision1	6.1.3	151	(80)	53	(195)
Cash generated by/(utilised in) operations	6.3.1	11 758	89	148	(203)		1 031
Capital spend on property, plant and equipment		(2 217)	(201)		(15)		(244)
At 31 December 2023
Segmental assets and liabilities
Deferred tax3	7.5						14
Equity-accounted investments	9.4		1 922		2 014
External assets		31 930	6 084	1 506	2 774		8 834
Total assets		31 930	8 006	1 506	4 788		8 848
External liabilities		2 590	2 451	1 600	779		5 121
Deferred tax3	7.5	7 335	856	(60)	2		903
Total liabilities		9 925	3 307	1 540	781		6 024

1	Additional key items included in the measure of segment profit or loss have been presented for each reportable segment.
2	Calculated per legal entity.
3	Offset per legal entity and tax authority.

		Ferrous			Other
For the year ended 31 December 2023	Note	Alloys  Rm	Other  Rm		Base metals  Rm	Other  Rm		Total  Rm
External revenue	6.1.2	398				10		38 698
Segmental net operating profit/(loss)		82				(149)		10 627
Add back:
Depreciation and amortisation	6.1.3	1				192		2 715
Net losses on disposal of property, plant and equipment	6.1.3					37		57
EBITDA1		83				80		13 399
Other key items:
Share of income/(loss) of equity-accounted investments	9.3		6 157		332			6 987
External finance income	12.1.2					1 435		1 570
External finance costs	12.1.2	(1)				(494)		(1 252)
Income tax expense	7.3	(18)				(296)		(3 231)
Raw materials and consumables1	6.1.3	(58)				(17)		(5 332)
Staff costs1	6.1.3	(69)				(829)		(6 091)
Royalties1;2	6.1.3							(1 142)
Contract mining1	6.1.3							(1 494)
Repairs and maintenance1	6.1.3	(6)				(19)		(2 969)
Railage and transport1	6.1.3	(3)				(1)		(3 178)
Movement in provision1	6.1.3					1		(70)
Cash generated by/(utilised in) operations	6.3.1	234				250		13 307
Capital spend on property, plant and equipment		(1)				(21)		(2 699)
At 31 December 2023
Segmental assets and liabilities
Deferred tax3	7.5	9				183		206
Equity-accounted investments	9.4		14 079		2 263			20 278
External assets		300	26			20 916		72 370
Total assets		309	14 105		2 263	21 099		92 854
External liabilities		40	3			4 860		17 444
Deferred tax3	7.5					(33)		9 003
Total liabilities		40	3			4 827		26 447

1	Additional key items included in the measure of segment profit or loss have been presented for each reportable segment.
2	Calculated per legal entity.
3	Offset per legal entity and tax authority.

		Coal
		Commercial
For the year ended 31 December 2022	Note	Waterberg  Rm	Mpumalanga  Rm	Tied  Rm	Other  Rm		Energy  Rm
External revenue	6.1.2	23 613	15 797	5 561			1 159
Segmental net operating profit/(loss)		11 731	5 323	151	(389)		437
Add back:
Depreciation and amortisation	6.1.3	1 490	609	14	6		391
Net losses on disposal of property, plant and equipment	6.1.3	9	72		7
Loss on disposal of subsidiary	8.3
Loss on dilution of investment in associate	9.5
EBITDA1		13 230	6 004	165	(376)		828
Other key items:
Share of income/(loss) of equity-accounted investments	9.3		1 902		(10)
External finance income	12.1.2	24	4		5		20
External finance costs	12.1.2	(58)	(91)		(62)		(503)
Income tax expense	7.3	(3 178)	(1 307)	(61)	473		60
Raw materials and consumables1	6.1.3	(1 880)	(5 123)	(507)
Staff costs1	6.1.3	(2 573)	(371)	(1 577)	(258)		(54)
Royalties1;2	6.1.3	(1 539)	(324)	(25)	67
Contract mining1	6.1.3	(8)	(803)	(1)
Repairs and maintenance1	6.1.3	(1 470)	(292)	(999)			(7)
Railage and transport1	6.1.3	(1 386)	(1 586)	(8)	(35)
Movement in provision1	6.1.3	48	(221)	(188)	(106)
Impairment charges of equity-accounted investments
Cash generated by/(utilised in) operations	6.3.1	12 874	6 539	267	(1 459)		837
Capital spend on property, plant and equipment		(1 348)	(252)		(5)		(20)
At 31 December 2023
Segmental assets and liabilities
Deferred tax3	7.5						1
Equity-accounted investments	9.4		2 999		2 024
External assets		30 897	6 068	1 213	3 258		8 614
Total assets		30 897	9 067	1 213	5 282		8 615
External liabilities		1 857	2 577	1 301	1 143		4 804
Deferred tax3	7.5	6 997	978	(56)	(108)		884
Total liabilities		8 854	3 555	1 245	1 035		5 688

1	Additional key items included in the measure of segment profit or loss have been presented for each reportable segment.
2	Calculated per legal entity.
3	Offset per legal entity and tax authority.

	Ferrous			Other
For the year ended 31 December 2022	Alloys  Rm	Other  Rm		Base metals  Rm	Other  Rm		Total  Rm
External revenue	224				15		46 369
Segmental net operating profit/(loss)	49	(1)			(1 081)		16 220
Add back:
Depreciation and amortisation	7				164		2 681
Net losses on disposal of property, plant and equipment					9		97
Loss on disposal of subsidiary					1		1
Loss on dilution of investment in associate					2		2
EBITDA1	56	(1)			(905)		19 001
Other key items:
Share of income/(loss) of equity-accounted investments		4 077		578	(70)		6 477
External finance income					641		694
External finance costs	(1)				(337)		(1 052)
Income tax expense	(5)				(269)		(4 287)
Raw materials and consumables1	(94)				(16)		(7 620)
Staff costs1	(58)				(971)		(5 862)
Royalties1;2							(1 821)
Contract mining1							(812)
Repairs and maintenance1	(7)				(10)		(2 785)
Railage and transport1	(2)				(2)		(3 019)
Movement in provision1					(7)		(474)
Impairment charges of equity-accounted investments					(53)		(53)
Cash generated by/(utilised in) operations	(22)	(1)			(172)		18 863
Capital spend on property, plant and equipment	(1)				(26)		(1 652)
At 31 December 2023
Segmental assets and liabilities
Deferred tax3	11	1			241		254
Equity-accounted investments		11 104		1 933			18 060
External assets	421	25			16 335		66 831
Total assets	432	11 130		1 933	16 576		85 145
External liabilities	26	1			5 389		17 098
Deferred tax3					(27)		8 668
Total liabilities	26	1			5 362		25 766

1	Additional key items included in the measure of segment profit or loss have been presented for each reportable segment.
2	Calculated per legal entity.
3	Offset per legal entity and tax authority.