Chapter 10Assets

• 10.3Financial assets

10.3.1 Accounting policies relating to financial assets

The accounting policy for financial assets is disclosed in note 16.1.

10.3.2 Financial assets composition

		Group					Company
At 31 December	Note		2024 Rm	2023 Rm				2024 Rm	2023 Rm
Non-current
Financial assets at FVOCI			442	434
Equity: unlisted – Chifeng1			442	434
Financial assets at FVPL			4 557	3 839				42	38
Debt: unlisted – environmental rehabilitation funds			2 657	2 422				42	38
Debt: unlisted – portfolio investments			513	461
Debt: unlisted – deposit facilities2			1 387	956
Derivative financial assets designated as hedging instruments			1	2
Cash flow hedge derivatives: interest rate swaps3			1	2
Financial assets at amortised cost			266	341				2 648	3 214
ESD loans4			68	106				68	106
– Gross			131	156				131	156
– Impairment allowances			(63)	(50)				(63)	(50)
Vendor finance loan5			80	127				80	127
– Gross			81	127				81	127
– Impairment allowance			(1)					(1)
Interest-bearing loans to subsidiaries6	17.5							2 500	2 981
Other financial assets at amortised cost			118	108
– Environmental rehabilitation funds			118	108
Total non-current financial assets per statement of financial position	16.3		5 266	4 616				2 690	3 252
Current
Financial assets at FVPL			2	22
Derivative financial assets			2	22
Financial assets at amortised cost			157	188				1 421	1 976
ESD loans4			83	63				83	63
– Gross			247	181				247	181
– Impairment allowances			(164)	(118)				(164)	(118)
Vendor finance loan5			62	50				62	50
– Gross			63	51				63	51
– Impairment allowance			(1)	(1)				(1)	(1)
Intervention receivable7			8
Investment deposits8			4					4
Interest-bearing loans to subsidiaries6	17.5							502	1 158
Non-interest-bearing loans to subsidiaries9	17.5							701	575
– Gross								760	635
– Impairment allowances								(59)	(60)
Treasury facilities with subsidiaries 10	17.5							69	130
– Gross								415	397
– Impairment allowances								(346)	(267)
Other financial assets at amortised cost				75
– Deferred pricing receivable11				77
– Employee receivables			4	4				4	4
– Impairment allowances			(4)	(6)				(4)	(4)
Total current financial assets per statement of financial position	16.3		159	210				1 421	1 976
Total financial assets per statement of financial position			5 425	4 826				4 111	5 228

1	Exxaro holds an 8.81% (2023: 8.81%) shareholding in Chifeng.
2	Deposit or credit facilities that are contractual arrangements with insurance providers with an initial five-year term and are used to cover insurance claims over the term of the contracts. The balance of the facilities is refunded at the end of the term, net of fees, returns and claims incurred. Annual premiums are required to be placed in the facilities over the term yielding returns on underlying fund portfolios.
3	Relates to interest rate swaps designated in a hedging relationship to hedge interest rate risk exposure resulting from interest payments on the project financing. Refer note 16.3.3.2.3.2.
4	Interest-free loans advanced to successful applicants in terms of the Exxaro ESD programme.
5	Vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the ECC operation. The loan is unsecured, repayable from 1 October 2022 and bears interest at: Prime Rate for the period 3 September 2021 to 30 September 2024 Prime Rate plus 1 for the period 1 October 2024 to 30 September 2025 Prime Rate plus 2 for the period 1 October 2025 to 30 September 2026 Prime Rate plus 3 for the period 1 October 2026 to 30 September 2027.
6	Includes back-to-back loans as well as other interest-bearing loans. Refer note 17.5 for details of the terms and conditions.
7	Relates to amounts advanced for funding logistical projects.
8	Investment deposits with a term of three to 12 months.
9	These loans are interest-free, unsecured and repayable on demand.
10	Treasury facilities with subsidiaries have no fixed repayment terms and are repayable on demand. Interest is charged at money market rates.
11	Relates to a deferred pricing adjustment which arose during 2017 and was fully settled in 2024.

 

• 10.3.3 Impairment allowances movement analysis

		Group			Company
At 31 December	Note	2024  Rm	2023  Rm		2024  Rm	2023  Rm
ESD loans
Opening balance		(168)	(96)		(168)	(96)
– Performing		(2)	(3)		(2)	(3)
– Non-performing		(166)	(93)		(166)	(93)
Movement in impairment allowances		(59)	(72)		(59)	(72)
– Performing	6.1.3	1	1		1	1
– Non-performing	6.1.3	(60)	(73)		(60)	(73)
At end of the year		(227)	(168)		(227)	(168)
– Performing		(1)	(2)		(1)	(2)
– Non-performing		(226)	(166)		(226)	(166)
Vendor finance loan
Opening balance		(1)	(2)		(1)	(2)
– Performing		(1)	(2)		(1)	(2)
Movement in impairment allowance		(1)	1		(1)	1
– Performing	6.1.3	1	1		1	1
– Under-performing	6.1.3	(2)			(2)
At end of the year		(2)	(1)		(2)	(1)
– Performing			(1)			(1)
– Under-performing		(2)			(2)
Other financial assets at amortised cost
Opening balance		(6)	(11)		(4)	(6)
– Performing		(2)	(7)			(2)
– Non-performing		(4)	(4)		(4)	(4)
Movement in impairment allowances		2	5			2
– Performing	6.1.3	2	5			2
At end of the year		(4)	(6)		(4)	(4)
– Performing			(2)
– Non-performing		(4)	(4)		(4)	(4)
Non-interest-bearing loans to subsidiaries
Opening balance					(60)	(65)
– Performing					(7)	(16)
– Non-performing					(53)	(49)
Movement in impairment allowances					1	5
– Performing	6.1.3				1	9
– Non-performing	6.1.3					(4)
At end of the year					(59)	(60)
– Performing					(6)	(7)
– Non-performing					(53)	(53)
Treasury facilities with subsidiaries
Opening balance					(267)	(2)
– Performing						(2)
– Non-performing					(267)
Movement in impairment allowances					(79)	(265)
– Performing	6.1.3					2
– Non-performing	6.1.3				(79)	(267)
At end of the year					(346)	(267)
– Non-performing					(346)	(267)