Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2024 
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Chapter 16Financial instruments

  • 16.3Financial instruments

16.3.1 Carrying amounts and fair value amounts of financial instruments

The tables below set out the group and company's classification of each category of financial assets and financial liabilities.

   Group 
At 31 December 2024  Note  Financial 
assets at 
FVOCI 
Rm
 
Financial 
assets/ 
(liabilities)
at FVPL 
Rm
 
Financial 
assets/ 
(liabilities)
at amortised 
cost 
Rm
 
Derivative 
financial 
assets/ 
(liabilities)
designated 
as hedging 
instruments 
Rm
 
   Total 
carrying 
amount 
Rm
 
Financial assets                      
Non-current                      
Financial assets, consisting of:  10.3.2  442  4 557  266     5 266 
– Equity: unlisted – Chifeng     442              442 
– Debt: unlisted – environmental rehabilitation funds        2 657           2 657 
– Debt: unlisted – portfolio investments        513           513 
– Debt: unlisted – deposit facilities        1 387           1 387 
– Cash flow hedge derivatives: interest rate swaps                
– ESD loans           68        68 
– Vendor finance loan           80        80 
– Other financial assets at amortised cost           118        118 
Total non-current financial assets     442  4 557  266     5 266 
Current                      
Financial assets, consisting of:  10.3.2     157        159 
– ESD loans           83        83 
– Vendor finance loan           62        62 
– Derivative financial assets                
– Intervention receivable                
– Investment deposits                
Trade and other receivables, consisting of:  6.2.3        4 230        4 230 
– Trade receivables           4 098        4 098 
– Other receivables           132        132 
Cash and cash equivalents  6.2.5        20 630        20 630 
Total current financial assets        25 017        25 019 
Total financial assets     442  4 559  25 283     30 285 
Financial liabilities                      
Non-current                      
Interest-bearing borrowings  12.1.3        (7 344)       (7 344)
Other payables  6.2.4        (40)       (40)
Financial liabilities, consisting of:  12.1.7           (129)    (129)
– Cash flow hedge derivatives: interest rate swaps              (129)    (129)
Total non-current financial liabilities           (7 384) (129)    (7 513)
Current                      
Interest-bearing borrowings  12.1.3        (876)       (876)
Trade and other payables  6.2.4         (3 351)       (3 351)
Financial liabilities, consisting of:  12.1.7     (22)          (22)
– Derivative financial liabilities        (22)          (22)
Total current financial liabilities        (22) (4 227)       (4 249)
Total financial liabilities        (22) (11 611) (129)    (11 762)

Due to the short-term nature of the current financial assets and current financial liabilities, the carrying amount is assumed to be the same as the fair value.

The carrying amounts of non-current financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.

      Group 
At 31 December 2023  Note  Financial 
assets at 
FVOCI 
Rm
 
Financial 
assets 
at FVPL 
Rm
 
Financial 
assets/ 
(liabilities)
at amortised 
cost 
Rm
 
Derivative 
financial 
assets/ 
(liabilities)
designated 
as hedging 
instruments 
Rm
 
   Total 
carrying 
amount 
Rm
 
Financial assets                      
Non-current                      
Financial assets, consisting of:  10.3.2  434  3 839  341     4 616 
– Equity: unlisted – Chifeng     434              434 
– Debt: unlisted – environmental rehabilitation funds        2 422           2 422 
– Debt: unlisted – portfolio investments        461           461 
– Debt: unlisted – deposit facilities        956           956 
– Cash flow hedge derivatives: interest rate swaps                
– ESD loans           106        106 
– Vendor finance loan           127        127 
– Other financial assets at amortised cost           108        108 
Total non-current financial assets     434  3 839  341     4 616 
Current                      
Financial assets, consisting of:  10.3.2     22  188        210 
– ESD loans           63        63 
– Vendor finance loan           50        50 
– Derivative financial assets        22           22 
– Other financial assets at amortised cost           75        75 
Trade and other receivables, consisting of:  6.2.3        3 877        3 877 
– Trade receivables           3 829        3 829 
– Other receivables           48        48 
Cash and cash equivalents  6.2.5        19 859        19 859 
Total current financial assets        22  23 924        23 946 
Total financial assets     434  3 861  24 265     28 562 
Financial liabilities                      
Non-current                      
Interest-bearing borrowings  12.1.3        (7 480)       (7 480)
Other payables  6.2.4        (42)       (42)
Financial liabilities, consisting of:  12.1.7           (127)    (127)
– Cash flow hedge derivatives: interest rate swaps              (127)    (127)
Total non-current financial liabilities           (7 522) (127)    (7 649)
Current                      
Interest-bearing borrowings  12.1.3        (1 443)       (1 443)
Trade and other payables  6.2.4        (3 356)       (3 356)
Financial liabilities, consisting of:  12.1.7           (14)    (14)
– Cash flow hedge derivatives: FECs              (14)    (14)
Total current financial liabilities           (4 799) (14)    (4 813)
Total financial liabilities           (12 321) (141)    (12 462)

Due to the short-term nature of the current financial assets and current financial liabilities, the carrying amount is assumed to be the same as the fair value.

The carrying amounts of non-current financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.

        Company     
At 31 December 2024  Note  Financial 
assets at 
FVPL 
Rm
 
Financial 
assets/ 
(liabilities)
at amortised 
cost 
Rm
 
   Total 
carrying 
amount 
Rm
 
Financial assets                
Non-current                
Financial assets, consisting of:  10.3.2  42  2 648     2 690 
– Debt: unlisted – environmental rehabilitation funds     42        42 
– ESD loans        68     68 
– Vendor finance loan        80     80 
– Interest-bearing loans to subsidiaries        2 500     2 500 
Total non-current financial assets     42  2 648     2 690 
Current                
Financial assets, consisting of:  10.3.2     1 421     1 421 
– ESD loans        83     83 
– Vendor finance loan        62     62 
– Investment deposits          
– Interest-bearing loans to subsidiaries        502     502 
– Non-interest-bearing loans to subsidiaries        701     701 
– Treasury facilities with subsidiaries        69     69 
Trade and other receivables, consisting of:  6.2.3     237     237 
– Other receivables        15     15 
– Indebtedness by subsidiaries        222     222 
Cash and cash equivalents  6.2.5     17 300     17 300 
Total current financial assets        18 958     18 958 
Total financial assets     42  21 606     21 648 
Financial liabilities                
Non-current                
Interest-bearing borrowings  12.1.3     (2 499)    (2 499)
Total non-current financial liabilities        (2 499)    (2 499)
Current                
Interest-bearing borrowings  12.1.3     (498)    (498)
Trade and other payables  6.2.4     (216)    (216)
Financial liabilities, consisting of:  12.1.7     (15 028)    (15 028)
– Non-interest-bearing loans from subsidiaries        (92)    (92)
– Treasury facilities with subsidiaries        (14 936)    (14 936)
Total current financial liabilities        (15 742)    (15 742)
Total financial liabilities        (18 241)    (18 241)

Due to the short-term nature of the current financial assets and current financial liabilities, the carrying amount is assumed to be the same as the fair value.

The carrying amounts of non-current financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.

      Company 
At 31 December 2023  Note  Financial 
assets at 
FVPL 
Rm
 
Financial 
assets/ 
(liabilities)
at amortised 
cost 
Rm
 
   Total 
carrying 
amount 
Rm
 
Financial assets                
Non-current                
Financial assets, consisting of:  10.3.2  38  3 214     3 252 
– Debt: unlisted – environmental rehabilitation funds     38        38 
– ESD loans        106     106 
– Vendor finance loan        127     127 
– Interest-bearing loans to subsidiaries        2 981     2 981 
Total non-current financial assets     38  3 214     3 252 
Current                
Financial assets, consisting of:  10.3.2     1 976     1 976 
– ESD loans        63     63 
– Vendor finance loan        50     50 
– Interest-bearing loans to subsidiaries        1 158     1 158 
– Non-interest-bearing loans to subsidiaries        575     575 
– Treasury facilities with subsidiaries        130     130 
Trade and other receivables, consisting of:  6.2.3     150     150 
– Other receivables        10     10 
– Indebtedness by subsidiaries        140     140 
Cash and cash equivalents  6.2.5     17 151     17 151 
Total current financial assets        19 277     19 277 
Total financial assets     38  22 491     22 529 
Financial liabilities                
Non-current                
Interest-bearing borrowings  12.1.3     (2 945)    (2 945)
Total non-current financial liabilities        (2 945)    (2 945)
Current                
Interest-bearing borrowings  12.1.3     (1 153)    (1 153)
Trade and other payables  6.2.4     (223)    (223)
Financial liabilities, consisting of:  12.1.7     (15 606)    (15 606)
– Non-interest-bearing loans from subsidiaries        (769)    (769)
– Treasury facilities with subsidiaries        (14 837)    (14 837)
Total current financial liabilities        (16 982)    (16 982)
Total financial liabilities        (19 927)    (19 927)

Due to the short-term nature of the current financial assets and current financial liabilities, the carrying amount is assumed to be the same as the fair value.

The carrying amounts of non-current financial instruments measured at amortised cost approximate fair value due to the nature and terms of these instruments.

16.3.2 Fair values

16.3.2.1 Fair value hierarchy

Financial assets and financial liabilities at fair value have been categorised in the following hierarchy structure, based on the inputs used in the valuation technique:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities that can be accessed at the measurement date.
Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable.
Level 3 – Inputs that are not based on observable market data (unobservable inputs).

Group
At 31 December 2024 Fair value 
Rm 
  Level 2 
Rm 
Level 3
Rm
Financial assets at FVOCI 442      442
Equity: unlisted – Chifeng 442    442 
Financial assets at FVPL 4 557    4 557 
Non-current debt: unlisted – environmental rehabilitation funds 2 657    2 657 
Non-current debt: unlisted – portfolio investments 513    513 
Non-current debt: unlisted – deposit facilities 1 387    1 387 
Derivative financial assets designated as hedging instruments  
Non-current cash flow hedge derivatives: interest rate swaps    
Derivative financial assets  
Current derivative financial assets    
Derivative financial liabilities designated as hedging instruments (129)   (129)
Non-current cash flow hedge derivatives: interest rate swaps (129)   (129)  
Derivative financial liabilities (22)   (22)
Current derivative financial liabilities (22)   (22)  
Net financial assets held at fair value 4 851    4 409  442
Reconciliation of Level 3 hierarchy Chifeng
Rm
At 31 December 2023 434
Movement during the year  
Gains recognised in OCI (pre-tax effect)1 8
At 31 December 2024 442
1 Tax on Chifeng amounts to R1.72 million.
  Group 
At 31 December 2023  Fair value 
Rm 
  Level 2 
Rm 
Level 3 
Rm 
Financial assets at FVOCI  434      434 
Equity: unlisted – Chifeng  434      434 
Financial assets at FVPL  3 839    3 839   
Non-current debt: unlisted – environmental rehabilitation funds  2 422    2 422   
Non-current debt: unlisted – portfolio investments  461    461   
Non-current debt: unlisted – deposit facilities  956    956   
Derivative financial assets designated as hedging instruments     
Non-current cash flow hedge derivatives: interest rate swaps     
Derivative financial assets  22    22   
Current derivative financial assets  22    22   
Derivative financial liabilities designated as hedging instruments  (141)   (141)  
Non-current cash flow hedge derivatives: interest rate swaps  (127)   (127)  
Current cash flow hedge derivatives: FECs  (14)   (14)  
Net financial assets held at fair value  4 156    3 722  434 
Reconciliation of Level 3 hierarchy Chifeng 
Rm 
At 31 December 2022 474 
Movement during the year
Losses recognised in OCI (pre-tax effect)1 (40)
At 31 December 2023 434 
1 Tax on Chifeng amounts to R8.66 million.
  Company
At 31 December 2024 Fair value
Rm
  Level 2
Rm
Financial assets at FVPL 42   42
Non-current debt: unlisted – environmental rehabilitation funds 42   42
Financial assets held at fair value 42   42
  Company
At 31 December 2023 Fair value
Rm
  Level 2
Rm
Financial assets at FVPL 38   38
Non-current debt: unlisted – environmental rehabilitation funds 38   38
Financial assets held at fair value 38   38

16.3.2.2 Transfers

Transfers between levels of the fair value hierarchy are recognised as at the end of the reporting period during which the transfer has occurred. There were no transfers between Level 1 and Level 2 nor between Level 2 and Level 3 of the fair value hierarchy.

16.3.2.3 Valuation process applied

The fair value computations of investments are performed by the strategic finance department, reporting to the finance director, on a six-monthly basis. The valuation reports are discussed with the chief operating decision maker and the audit committee in accordance with Exxaro's reporting governance.

16.3.2.4 Current derivative financial instruments

Level 2 fair values for simple over-the-counter derivative financial instruments are based on market quotes. These quotes are assessed for reasonableness by discounting estimated future cash flows using the market rate for similar instruments at measurement date.

16.3.2.5 Environmental rehabilitation funds, portfolio investments and deposit facilities

Level 2 fair values for debt instruments held in the environmental rehabilitation funds, portfolio investments and deposit facilities are based on quotes provided by the financial institutions at which the funds are invested at measurement date.

16.3.2.6 Non-current cash flow hedge derivatives: interest rate swaps

Level 2 fair values for interest rate swaps are based on valuations provided by the financial institutions with whom the interest rate swaps have been entered into, and take into account credit risk. The valuations are assessed for reasonability by discounting the estimated future cash flows based on observable ZAR swap curves.

16.3.2.7 Current cash flow hedge derivatives: forward exchange contracts

Level 2 fair values for hedge accounted FECs are based on valuations provided by the financial institutions with whom the FECs have been entered into, and take into account credit risk. The valuations are assessed for reasonability by discounting the estimated future cash flows based on observable ZAR/US$ forward rates.

16.3.2.8 Valuation techniques used in the determination of fair values within Level 3 of the hierarchy, as well as significant inputs used in the valuation models

Chifeng

Chifeng is classified within a Level 3 of the fair value hierarchy as there is no quoted market price or observable price available for this investment. This unlisted investment is valued as the present value of the estimated future cash flows, using a DCF model. The valuation technique is consistent to that used in previous reporting periods.

The significant observable and unobservable inputs used in the fair value measurement of the investment in Chifeng are rand/ RMB exchange rate, RMB/US$ exchange rate, zinc LME price, production volumes, operational costs and the discount rate.

At 31 December 2024 Inputs Sensitivity of inputs and fair value measurement1 Sensitivity  
analysis of a  
10% increase  
in the inputs is  
demonstrated  
below2
Rm  
Observable inputs
Rand/RMB exchange rate R2.59/RMB1 Weakening of the rand to the RMB 44  
RMB/US$ exchange rate RMB6.43 to RMB7.04/US$1 Weakening of the RMB to the US$ 123  
Zinc LME price (US$ per tonne in real terms) US$2 500 to US$2 660.02 Increase in price of zinc concentrate 123  
Unobservable inputs
Production volumes 447 719.5 tonnes Increase in production volumes 27  
Operational costs (US$ million per annum in real terms) US$71.47 to US$75.17 Decrease in operations costs (96) 
Discount rate 10.54% Decrease in the discount rate (26) 
1 Change in observable or unobservable input which will result in an increase in the fair value measurement.
2 A 10% decrease in the respective inputs would have an equal but opposite effect on the above, on the basis that all other variables remain constant.

At 31 December 2023

Inputs

Sensitivity of inputs and fair value measurement1
Sensitivity  
analysis of a  
10% increase  
in the inputs is  
demonstrated  
below2
Rm  
Observable inputs


Rand/RMB exchange rate R2.58/RMB1 Weakening of the rand to the RMB 43  
RMB/US$ exchange rate RMB6.22 to RMB6.76/US$1 Weakening of the RMB to the US$ 118  
Zinc LME price (US$ per tonne in real terms) US$2 395.67 to US$2 500 Increase in price of zinc concentrate 118  
Unobservable inputs


Production volumes 447 719.5 tonnes Increase in production volumes 25  
Operational costs (US$ million per annum in real terms) US$70.19 to US$74.43 Decrease in operations costs (92) 
Discount rate 10.54% Decrease in the discount rate (27) 
1 Change in observable or unobservable input which will result in an increase in the fair value measurement.
2 A 10% decrease in the respective inputs would have an equal but opposite effect on the above, on the basis that all other variables remain constant.

Inter-relationships

Any inter-relationships between unobservable inputs is not considered to have a significant impact within the range of reasonably possible alternative assumptions for both reporting periods.

16.3.3 Risk management

16.3.3.1 Financial risk management

The group's strategic treasury function predominantly provides financial risk management services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the group through internal risk reports which analyse exposure by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and price risk), credit risk and liquidity risk.

The group's objectives, policies and processes for measuring and managing these risks are detailed below.

The group seeks to minimise the effects of these risks by using derivative financial instruments to hedge these risk exposures. The use of derivative financial instruments is governed by the group's policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, commodity price risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis and the results are reported to the audit committee.

Financial instruments, including derivative financial instruments, are not entered into nor traded for speculative purposes rather, financial instruments are entered into to manage and reduce the possible adverse impact on earnings and cash flows of changes in interest rates and foreign currency exchange rates.

Capital management

In managing its capital, the group focuses on a prudent gearing position, return on shareholders' equity (or ROCE) and the level of dividends to shareholders. The group's policy is to cover its annual net funding requirements through long-term loan facilities with maturities spread over time. Neither the company nor any of its subsidiaries are subject to externally imposed capital requirements.

16.3.3.2 Market risk management

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect profit or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

The group's activities expose it primarily to the financial risks of changes in the environmental rehabilitation funds, portfolio investment and deposit facilities quoted prices (see 16.3.3.2.1), foreign currency exchange rates (see 16.3.3.2.2) and interest rates (see 16.3.3.2.3). The group enters into a variety of derivative financial instruments to manage its exposure to foreign currency risks and interest rate risks, including:

  • Currency FECs, currency options and currency swap agreements to manage the exchange rate risk arising on the export of coal and import of capital expenditure
  • Interest rate swaps and interest rate forwards to manage interest rate risk on the interest-bearing borrowings.
16.3.3.2.1 Price risk management

The group's exposure to equity price risk arises from investments held by and classified either as at FVOCI or at FVPL. Currently, the group's exposure to equity price risk is not considered to be significant as Chifeng is seen as a non-core investment.

The group's exposure to price risk in relation to quoted prices of the environmental rehabilitation funds, portfolio investments and deposit facilities is not considered a significant risk as the funds are invested with reputable financial institutions in accordance with a strict mandate to ensure capital preservation and growth. The funds are held for strategic purposes rather than trading purposes.

16.3.3.2.2 Foreign currency risk management

Certain transactions are denominated in foreign currencies, hence exposures to exchange rate fluctuations arise.

The currency in which transactions are entered into is mainly denominated in US dollar, euro and Australian dollar.

Exchange rate exposures are managed within approved policy parameters utilising FECs, currency options and currency swap agreements.

The group maintains a fully covered exchange rate position in respect of foreign balances (if any) and imported capital equipment resulting in these exposures being fully converted to rand. Trade-related import exposures are managed through the use of economic hedges arising from export revenue as well as through FECs. Trade-related export exposures are hedged using FECs and currency options with specific focus on short-term receivables. Any open exposure to foreign currency risk on these balances is insignificant as the turnaround time is generally less than 30 days. Foreign denominated capital purchases funded by ZAR denominated project financing arrangements are hedged using FECs.

Uncovered cash and cash equivalents as at 31 December 2024 amount to US$71.22 million (2023: US$38.92 million).

Monetary items have been translated at the closing rate at the last day of the reporting period.

The FECs which are used to hedge foreign currency exposure mostly have a maturity of less than one year from the reporting date. When necessary, FECs are rolled over at maturity.

The following significant exchange rates applied during the year:

2024     2023  
Average
spot rate
Average
achieved
rate
Closing
spot rate
  Average
spot rate
Average
achieved
rate
Closing
spot rate
US$ 18.32 18.80 18.87   18.45 18.94 18.30
19.82 19.53   19.94 20.19
AU$ 12.10 11.68   12.26 12.46

Hedge accounting: Cash flow hedges – forward exchange contracts

FECs are designated as hedging instruments in cash flow hedges of expected US dollar capital purchases. Additionally, cash held in US dollar for purposes of settling the final purchase transactions are designated as part of the hedging relationship. These transactions are highly probable, and relate to the group's commitments under construction projects subject to project financing arrangements.

There is an economic relationship between the hedged items and the hedging instruments as the terms of the FECs match the terms of the expected highly probable expected transactions (ie, notional amount and expected payment date). The group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the FECs are identical to the hedged risk components. To test the hedge effectiveness, the group use the "dollar offset method" and compare the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. Hedge ineffectiveness can arise from:

  • Existence of day one fair value of the hedging instrument
  • A significant change in the credit risk during the period of the hedge
  • Changes in the amount or timing of the payments to the contractor
  • The forward element inherent in each FEC and
  • Effects of foreign currency basis spread.

The group is holding the following FECs and US$ bank balances associated with the hedging relationship:

2024
0 to 6 months 6 to 12 months Total
US$ denominated cash and cash equivalents (in Rm) 381 381
2023
0 to 6 months 6 to 12 months Total
US$ denominated cash and cash equivalents (in Rm) 151 151
FEC Notional amount (in Rm) 338 142 480
Average forward rate (ZAR/US$) 19.09 20.29 19.56

Financial performance effects of hedging recognised during the year:


Group  
For the year ended 31 December Line item in
which recognised
Note 2024
Rm
2023
Rm
Transfer to property, plant and equipment Assets under construction 10.1.3 17 2

Financial position effect of hedging instruments and hedging items

   Group 
At 31 December  2024
Rm
 
2023
Rm
 
Hedging instruments: Outstanding US$ buy FECs and US$ cash available to settle the transaction      
Nominal amount  391  637 
Carrying amount  381  137 
– Current financial liability    (14)
– US$ denominated cash and cash equivalents  381  151 
Cumulative loss in fair value used for calculating hedge ineffectiveness  (10) (21)
Hedged items: Cash flows on US$ capital purchases     
Nominal amount  391  637 
Carrying amount in cash flow hedge reserve  (3) 19 
Carrying amount in cost of hedge reserve  14 
Cumulative loss in fair value used for calculating hedge ineffectiveness  (10) (21)

Cost of hedging and cash flow hedge reserves composition:

   Group 
   Cost of hedging reserve     Cash flow hedge reserves 
At 31 December  2024
Rm
 
2023
Rm
 
   2024
Rm
 
2023
Rm
 
Reserves relating to foreign currency risk exposure  (10) (9)    (6)
– Gross  (14) (12)    (8)
– Deferred tax thereon     (1)
Reserves relating to interest rate risk exposure           (26) 12 
– Gross          (35) 17 
– Deferred tax thereon          (5)
Balance of share of movements of equity-accounted investees           (87)  
Balance of NCI share of reserves      (33)
Total  (7) (7)    (111) (27)

Movement analysis of cash flow hedge reserves relating to foreign currency risk exposure:

Group
    Gross     
Cost 
of hedge 
Rm
 
Cash flow 
hedge-spot 
foreign 
exchange  component 
Rm
 

Tax 
Rm
 

Net 
Rm
 
At 31 December 2022 
Movement during the year 
Change in fair value of FEC recognised in OCI  (12) (10) (16)
Transferred to property, plant and equipment  (1)
At 31 December 2023  (12) (8) (15)
Movement during the year 
Change in fair value of FEC recognised in OCI  (7) (1) (6)
Transferred to property, plant and equipment  12  (4) 13 
At 31 December 2024  (14) (8)
16.3.3.2.3 Interest rate risk management

The group is exposed to interest rate risk as it borrows and deposits funds at floating interest rates on the money market and extended bank borrowings. The group's main interest rate risk arises from long-term borrowings with floating rates, which expose the group to cash flow interest rate risk. The risk is managed by undertaking controlled management of the interest structures of the investments and borrowings, maintaining an appropriate mix between fixed and floating interest rate facilities in line with the interest rate expectations. The group also uses interest rate swaps and interest rate forwards to manage the interest rate risk exposure.

When the contractual terms of the borrowings and covenants thereof require the use of hedging instruments to mitigate the risk of fluctuations of the underlying interest rate risk cash flow exposure and the impact on profit or loss of specific projects being financed, the group looks to apply hedge accounting where an effective hedge relationship is expected and to the extent that such exposure poses a real risk to the achievement of the loan covenants.

The financial institutions chosen are subject to compliance with the relevant regulatory bodies.

Interest rate benchmark reform

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as 'IBOR reform'). The group has exposures to IBORs on its financial instruments that will be replaced or reformed as part of these market-wide initiatives. The group's main IBOR exposure at 31 December 2024 was indexed to JIBAR. The South African Reserve Bank (SARB) indicated its intention to move away from JIBAR and to create an alternative reference rate for South Africa. The SARB has confirmed its preference for the adoption of the South African Rand Overnight Index Average (ZARONIA) as the preferred unsecured candidate to replace JIBAR in cash and derivative instruments.

On 2 November 2022, the SARB commenced publishing ZARONIA primarily to allow market participants to observe its performance and consider the implications of adopting it as a replacement for the JIBAR. The observation period ended on 3 November 2023. Certain observation period statistics have been restated to reflect revisions that were processed post their publication. Market participants may use ZARONIA as a reference rate in financial contracts. The Market Practitioners Group has designated ZARONIA as the successor rate to replace JIBAR. The SARB has indicated that the transition from JIBAR to ZARONIA is a multi-year initiative and that a formal announcement of the cessation of JIBAR will be made during 2025, and the production of the benchmark should be discontinued before the end of 2026.

The group's strategic treasury function monitors and manages the group's transition to alternative rates. The group's strategic treasury function evaluates the extent to which contracts reference IBOR cash flows, whether such contracts will need to be amended as a result of IBOR reform and how to manage communication about IBOR reform with counterparties.

Non-derivative financial liabilities

The group's IBOR exposures to non-derivative financial liabilities as at 31 December 2024 are the secured project financing and unsecured loan facility indexed to JIBAR. Refer note 12.1.3.

Derivatives

The group holds interest rate swaps for risk management purposes that are designated in cash flow hedging relationships. The interest rate swaps have floating legs that are indexed to JIBAR. Refer note 16.3.3.2.3.2.

Hedge accounting

The group's hedged items and hedging instruments as at the reporting date are indexed to JIBAR. These benchmark rates are quoted each day and the IBOR cash flows are exchanged with counterparties as usual. Refer note 16.3.3.2.3.2.

There is uncertainty about when and how replacement may occur with respect to the relevant hedged items and hedging instruments. As a result, the group continues to apply the amendments to IFRS 9 issued in September 2019 (Phase 1) to those hedging relationships.

16.3.3.2.3.1 Loan facility and bonds

The loan facility and bonds were entered into at floating interest rates.

The interest rate repricing profile for the loan facility and bonds is summarised below for group and company:

  1 to 6 months
Rm
 
Total borrowings
Rm
 
At 31 December 2024     
Non-current interest-bearing borrowings: loan facility and bond  (2 499) (2 499)
Current interest-bearing borrowings: loan facility and bond   (498) (498)
Total interest-bearing borrowings: loan facility and bond  (2 997) (2 997)
Percentage profile (%) 100  100 
At 31 December 2023     
Non-current interest-bearing borrowings: loan facility and bond  (2 945) (2 945)
Current interest-bearing borrowings: loan facility and bond   (1 153) (1 153)
Total interest-bearing borrowings: loan facility and bond  (4 098) (4 098)
Percentage profile (%) 100  100 

Interest rate sensitivity

The following table reflects the potential impact on earnings, given an increase in interest rates of 50 basis points:


 
2024
Rm
 
2023
Rm
 
Impact on earnings: loss  (15) (20)

A decrease in interest rates of 50 basis points would have an equal but opposite effect on the amounts shown above, on the basis that all other variables remain constant.

16.3.3.2.3.2 Project financing

The group is exposed to the risk of variability in future interest payments on the project financing, attributable to fluctuations in 3-month JIBAR, during operations phase, and 1-month JIBAR during the construction phase. The designated hedged items are the group of expected floating interest rate cash flows arising from the project financing, up to the notional amount of each interest rate swap, over the term of the hedging relationship. The notional amounts per interest rate swap match up to the designated exposure being hedged.

Where all relevant criteria are met, hedge accounting is applied to remove the accounting mismatch between the hedging instruments and the hedged items. This will effectively result in recognising interest expense at a fixed interest rate for the hedged project financing.

The exposure profile is summarised as follows:

   Group 
   Percentage exposure          
At 31 December  2024 
%
 
2023 
%
 
   2024 
Rm
 
2023 
Rm
 
Project financing nominal amount  100  100     (5 223) (4 825)
  – Linked to fixed rate     (127) (135)
  – Linked to floating rate  98  97     (5 096) (4 690)
Project financing nominal amount linked to floating rate  98  97     (5 096) (4 690)
Interest rate swap notional amount (swap floating rate to fixed rate)   (74) (83)    3 872  4 002 
Effective floating rate exposure on project financing  24  14     (1 224) (688)

Interest rate sensitivity

The following table reflects the potential impact on earnings and equity, given an increase in interest rates of 50 basis points:

  Group
Impact 2024 
Rm
2023 
Rm
Increase in finance costs 6 3
Increase in equity 28 41

A decrease in interest rates of 50 basis points would have an equal but opposite effect on the amounts shown above, on the basis that all other variables remain constant.

Hedge accounting: Cash flow hedges – interest rate swaps

Hedge effectiveness

The group has assumed certain interest rate swaps from its business combination with Cennergi, as well as entered into new interest rate swaps for further project financing arrangements that have similar critical terms as the hedged item, such as reference rates, reset dates, payment dates, maturities and notional amounts. The group does not hedge 100% of its project financing, therefore the hedged item is identified as a proportion of the outstanding project financing up to the notional amount of the interest rate swaps. As all critical terms matched during the year, there is an economic relationship.

Hedge effectiveness is determined at the inception of the hedge relationships, and through periodic prospective effectiveness assessments, to ensure that an economic relationship exists between the hedged items and hedging instruments.

Hedge ineffectiveness for interest rate swaps is assessed frequently. It may occur due to:

  • The DVA on the interest rate swaps which is not matched by the project financing
  • Differences in critical terms between the interest rate swaps and project financing
  • Changes to amounts or timing of drawdowns during construction phase.

The recognised ineffectiveness in 2024 amounted to R12 million (2023: R18 million) and is mainly as a result of the DVA. Credit valuation adjustments are not considered due to the terms of the underlying loans, which allow for set-off.

The interest rate swaps require settlement of net interest receivable or payable every six months during the operations phase, and every 1-month during construction phase. The settlement dates coincide with the dates on which interest is payable on the underlying debt.

The following tables detail the financial position and performance of the interest rate swap contracts outstanding at the end of the reporting period and their related hedged items.

Financial performance effects of hedging recognised during the year

      Group
For the year ended 31 December Line item in
which recognised
Note 2024 
Rm 
2023 
Rm 
Fair value losses resulting from hedge ineffectiveness Operating expenses 6.1.3 (12) (18)
Fair value gains on settlement of underlying swap (reclassified from OCI) Finance costs 12.1.2 26  20 

Hedging instruments and hedged items

   Group 
At 31 December  2024 
Rm
 
2023 
Rm
 
Hedged items: Cash flows on floating rate project financing linked to JIBAR       
Nominal amount  3 872  4 002 
Carrying amount in cash flow hedge reserve  (35) 17 
Cumulative gains in fair value used for calculating hedge ineffectiveness  47 
Hedging instruments: Outstanding receive floating, pay fixed contracts       
Nominal amount  3 872  4 002 
Carrying amount  (128) (125)
– Non-current financial asset 
– Non-current financial liability  (129) (127)
Cumulative losses in fair value used for calculating hedge ineffectiveness  (203) (209)

Hedging reserves

Cash flow hedge reserves composition:

   Group 
At 31 December  2024 
Rm
 
2023 
Rm
 
Cash flow hedge reserve – interest rate swaps  (26) 12 
– Gross  (35) 17 
– Deferred tax thereon  (5)
Cash flow hedge reserve – spot element of FECs  (6)
– Gross  (8)
– Deferred tax thereon  (1)
Balance of share of movements of equity-accounted investees  (87)   
Balance of NCI share of financial instruments revaluation reserve     (33)
Cash flow hedge reserves  (111) (27)

Movement analysis of cash flow hedge reserve – interest rate swaps:

   Group 
   Gross 
Rm
 
Tax 
Rm
 
Net 
Rm
 
At 31 December 2022  88  (24) 64 
Movement during the year          
Change in fair value of interest rate swaps recognised in OCI  (51) 14  (37)
Reclassified from OCI to profit or loss in finance costs  (20) (15)
At 31 December 2023  17  (5) 12 
Movement during the year          
Change in fair value of interest rate swaps recognised in OCI  (26) (19)
Reclassified from OCI to profit or loss in finance costs  (26) (19)
At 31 December 2024  (35) (26)

16.3.3.3 Liquidity risk management

Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the group's reputation.

The ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the management of the group's short, medium and long-term funding and liquidity management requirements.

The group manages liquidity risk by monitoring forecast cash flows in compliance with loan covenants and ensuring that adequate unutilised borrowing facilities are maintained.

Borrowing capacity is determined by the board of directors, from time to time.

  Group
  2024 
Rm 
2023 
Rm 
Amount approved 67 484  65 309 
Total borrowings (8 220) (8 923)
Unutilised borrowing capacity 59 264  56 386 

The group's capital base and the borrowing powers of the company and the group were set at 125% of shareholders' funds (equity attributable to owners of the parent) for both the 2024 and 2023 financial years.

Standard payment terms for the majority of trade payables is the end of the month following the month in which the goods are received or services are rendered. A number of trade payables do, however, have shorter contracted payment periods.

To avoid incurring interest on late payments, financial risk management policies and procedures are entrenched to ensure the timeous matching of orders placed with goods received notes or services acceptances and invoices.

16.3.3.3.1 Maturity profile of financial instruments

Contractual cash flows for financial instruments which are subject to floating interest rates are based on the closing floating interest rate at reporting date.

The following tables detail the contractual maturities of certain financial assets and financial liabilities:

   Group 
         Maturity 
At 31 December 2024  Carrying 
amount 
Rm
 
Contractual 
cash flows 
Rm
 
0 to 
12 months 
Rm
 
1 to 
2 years 
Rm
 
2 to 
5 years 
Rm
 
More than 
5 years 
Rm
 
Financial assets1                   
ESD loans  151  151  83  48  20    
Vendor finance loan  142  160  71  53  36    
Intervention receivable          
Investment deposits          
Cash flow hedge derivatives: interest rate swaps                
Derivative financial assets          
Lease receivables  29  34  14  14    
Trade and other receivables  4 230  4 230  4 230          
Cash and cash equivalents  20 630  20 630  20 630          
Total financial assets  25 197  25 219  25 042  115  62    
Percentage profile (%)    100  99       
Financial liabilities                   
Interest-bearing borrowings  (8 220) (12 061) (1 737) (3 558) (3 257) (3 509)
– Loan facility  (2 997) (3 370) (785) (2 585)      
– Project financing  (5 223) (8 691) (952) (973) (3 257) (3 509)
Lease liabilities  (430) (659) (101) (109) (266) (183)
Non-current other payables  (40) (40)    (3) (37)   
Trade and other payables  (3 351) (3 352) (3 352)         
Cash flow hedge derivatives: interest rate swaps  (129) (157) (55) (42) (57) (3)
Derivative financial liabilities  (22) (22) (22)         
Total financial liabilities  (12 192) (16 291) (5 267) (3 712) (3 617) (3 695)
Percentage profile (%)    100  32  23  22  23 
Liquidity gap identified2  13 005  8 928  19 775  (3 597) (3 555) (3 695)
1 Excludes the environmental rehabilitation funds at amortised cost of R118 million.
2 The liquidity gap identified will be funded by cash generated from operations and the undrawn facilities in place.
   Group 
         Maturity 
At 31 December 2023  Carrying  amount 
Rm
 
Contractual  cash flows 
Rm
 
0 to 
12 months 
Rm
 
1 to 
2 years 
Rm
 
2 to 
5 years 
Rm
 
More than 
5 years 
Rm
 
Financial assets                   
ESD loans  169  169  63  49  57    
Vendor finance loan  177  216  64  60  92    
Other financial assets at amortised cost1  75  78  78          
Cash flow hedge derivatives: interest rate swaps    
Derivative financial assets  22  22  22          
Lease receivables  38  48  14  14  20    
Trade and other receivables  3 877  3 877  3 877          
Cash and cash equivalents  19 859  19 859  19 859          
Total financial assets  24 219  24 272  23 978  124  170    
Percentage profile (%)    100  98    
Financial liabilities                   
Interest-bearing borrowings  (8 923) (12 924) (2 388) (1 623) (5 555) (3 358)
– Loan facility  (3 452) (4 183) (852) (743) (2 588)   
– Project financing  (4 825) (8 062) (857) (880) (2 967) (3 358)
– Bonds  (646) (679) (679)         
Lease liabilities  (451) (668) (95) (101) (325) (147)
Non-current other payables  (42) (44)    (16) (28)   
Trade and other payables  (3 356) (3 356) (3 356)         
Cash flow hedge derivatives: interest rate swaps  (127) (105) (30) (30) (42) (3)
Cash flow hedge derivatives: FECs  (14) (21) (21)         
Total financial liabilities  (12 913) (17 118) (5 890) (1 770) (5 950) (3 508)
Percentage profile (%)    100  34  10  35  21 
Liquidity gap identified2  11 306  7 154  18 088  (1 646) (5 780) (3 508)
1 Excludes the environmental rehabilitation funds at amortised cost of R108 million.
2 The liquidity gap identified will be funded by cash generated from operations and the undrawn facilities in place.
   Company 
         Maturity 
At 31 December 2024  Carrying 
amount 
Rm
 
Contractual 
cash flows 
Rm
 
0 to 
12 months 
Rm
 
1 to 
2 years 
Rm
 
2 to 
5 years 
Rm
 
Financial assets                
ESD loans  151  151  83  48  20 
Vendor finance loan  142  160  71  53  36 
Investment deposits       
Trade and other receivables  237  237  237       
Cash and cash equivalents  17 300  17 300  17 300       
Non-interest-bearing loans to subsidiaries  701  701  701       
Interest-bearing loans to subsidiaries  3 002  3 379  792  2 587    
Treasury facilities with subsidiaries  69  69  69       
Total financial assets  21 606  22 001  19 257  2 688  56 
Percentage profile (%)    100  88  12    
Financial liabilities                
Interest-bearing borrowings  (2 997) (3 370) (785) (2 585)   
– Loan facility  (2 997) (3 370) (785) (2 585)   
Lease liabilities  (342) (429) (91) (99) (239)
Trade and other payables  (216) (216) (216)      
Non-interest-bearing loans from subsidiaries1  (92) (92) (92)      
Treasury facilities with subsidiaries  (14 936) (14 936) (14 936)      
Total financial liabilities  (18 583) (19 043) (16 120) (2 684) (239)
Percentage profile (%)    100  85  14 
Liquidity gap identified  3 023  2 958  3 137  (183)
1 The majority of the non-interest-bearing loans from subsidiaries are not expected to be called upon in the foreseeable future.
   Company 
         Maturity 
At 31 December 2023  Carrying  amount 
Rm
 
Contractual  cash flows 
Rm
 
0 to 
12 months 
Rm
 
1 to 
2 years 
Rm
 
2 to 
5 years 
Rm
 
More than 
5 years 
Rm
 
Financial assets                   
ESD loans  169  169  63  49  57    
Vendor finance loan  177  216  64  60  92    
Trade and other receivables  150  150  150          
Cash and cash equivalents  17 151  17 151  17 151          
Non-interest-bearing loans to subsidiaries  575  575  575          
Interest-bearing loans to subsidiaries  4 139  4 931  1 540  750  2 641    
Treasury facilities with subsidiaries  130  130  130          
Total financial assets  22 491  23 322  19 673  859  2 790    
Percentage profile (%)    100  84  12    
Financial liabilities                   
Interest-bearing borrowings  (4 098) (4 862) (1 531) (743) (2 588)   
– Loan facility  (3 452) (4 183) (852) (743) (2 588)   
– Bonds  (646) (679) (679)         
Lease liabilities  (383) (505) (85) (92) (301) (27)
Trade and other payables  (223) (223) (223)         
Non-interest-bearing loans from subsidiaries1  (769) (769) (769)         
Treasury facilities with subsidiaries  (14 837) (14 837) (14 837)         
Total financial liabilities  (20 310) (21 196) (17 445) (835) (2 889) (27)
Percentage profile (%)    100  82  14    
Liquidity gap identified  2 181  2 126  2 228  24  (99) (27)
1 The majority of the non-interest-bearing loans from subsidiaries are not expected to be called upon in the foreseeable future.

16.3.3.4 Credit risk management

Credit risk relates to potential default by counterparties on cash and cash equivalents, loans, investments, trade receivables and other receivables.

The group limits its counterparty exposure arising from money market and derivative instruments by only dealing with well established financial institutions of high-credit standing. The group's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded are spread among approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the audit committee annually.

Trade receivables consist of a number of customers with whom Exxaro has long-standing relationships. A high portion of term supply arrangements exists with such customers resulting in limited credit exposure which exposure is limited by performing customer creditworthiness or country risk assessments.

The group strives to enter into sales contracts with customers which stipulate the required payment terms. It is expected of each customer that these payment terms are adhered to. Where trade receivables balances become past due, the normal recovery procedures are followed to recover the debt, where applicable new payment terms may be arranged to ensure that the debt is fully recovered.

Exxaro has concentration risk as a result of its exposure to one major customer. This is, however, not considered significant as the customer adheres to the stipulated payment terms.

Exxaro establishes an allowance for non-recoverability or impairment that represents its estimate of ECLs in respect of trade receivables, other receivables, loans, cash and cash equivalents and investments. The main components of these allowances are a 12-month ECL component that results from possible default events within the 12 months after the reporting date and a lifetime ECL component that results from all possible default events over the expected life of a financial instrument.

16.3.3.4.1 Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. None of the financial assets were held as collateral for any security provided.

Detail of the trade receivables credit risk exposure:

  Group
At 31 December 2024
%
2023
%
By geographical area    
RSA 70 77
Europe 6 9
Asia 21 8
Australia   4
USA 3 2
Total 100 100
By industry    
Public utilities 59 54
Mining 2 5
Manufacturing 1 1
Merchants 31 28
Food and beverage   1
Steel 6 6
Cement 1 1
Other   4
Total 100 100

Detailed impairment analysis of financial assets measured at amortised cost:

   Group 
At 31 December 2024  Total 
Rm
 
   Performing 
Rm
 
Under- 
performing 
Rm
 
Non- 
performing 
Rm
 
ESD loans  151     151       
– Non-current – gross  131     68     63 
– Non-current – impairment allowances  (63)          (63)
– Current – gross  247     84     163 
– Current – impairment allowances  (164)    (1)    (163)
Vendor finance loan  142        142    
– Non-current – gross  81        81    
– Non-current – impairment allowance  (1)       (1)   
– Current – gross  63        63    
– Current – impairment allowance  (1)       (1)   
Intervention receivable          
– Current – gross          
Investment deposits          
– Current – gross          
Other financial assets at amortised cost  118     118       
– Non-current – gross  118     118       
– Current – gross          
– Current – impairment allowances  (4)          (4)
Lease receivables1  29     29       
– Non-current – gross  18     18       
– Current – gross  11     11       
Trade receivables  4 098     4 093    
– Gross  4 214     4 105     109 
– Impairment allowances  (116)    (12)    (104)
Other receivables  132     131    
– Gross  140     131    
– Impairment allowances  (8)          (8)
Cash and cash equivalents  20 630     20 630       
Total financial assets at amortised cost  25 312     25 164  142 
1 Lease receivables are within the scope of the impairment requirements of IFRS 9.
   Group
At 31 December 2023  Total 
Rm
 
Performing 
Rm
 
Under- 
performing 
Rm
 
Non- 
performing 
Rm
 
ESD loans  169  169     
– Non-current – gross  156  107    49 
– Non-current – impairment allowances  (50) (1)   (49)
– Current – gross  181  64    117 
– Current – impairment allowances  (118) (1)   (117)
Vendor finance loan  177  177     
– Non-current – gross  127  127     
– Current – gross  51  51     
– Current – impairment allowance  (1) (1)    
Other financial assets at amortised cost  183  183     
– Non-current – gross  108  108     
– Current – gross  81  77   
– Current – impairment allowances  (6) (2)   (4)
Lease receivables1  38  38     
– Non-current – gross  29  29     
– Non-current – impairment allowances  (1) (1)    
– Current – gross  10  10     
Trade receivables  3 829  3 588  72  169 
– Gross  3 850  3 608  72  170 
– Impairment allowances  (21) (20)   (1)
Other receivables  48  48     
– Gross  55  48   
– Impairment allowances  (7)     (7)
Cash and cash equivalents  19 859  19 859     
Total financial assets at amortised cost  24 303  24 062  72  169 
1 Lease receivables are within the scope of the impairment requirements of IFRS 9.

 

   Company 
At 31 December 2024  Total 
Rm 
Performing 
Rm 
Under- 
performing 
Rm 
Non- 
performing 
Rm 
ESD loans  151  151     
– Non-current – gross  131  68    63 
– Non-current – impairment allowances  (63)     (63)
– Current – gross  247  84    163 
– Current – impairment allowances  (164) (1)   (163)
Vendor finance loan  142    142   
– Non-current – gross  81    81   
– Non-current – impairment allowance  (1)   (1)  
– Current – gross  63    63   
– Current – impairment allowance  (1)   (1)  
Investment deposits     
– Current – gross      
Other financial assets at amortised cost           
– Current – gross     
– Current – impairment allowances  (4)     (4)
Other receivables  15  15     
– Gross  18  15   
– Impairment allowances  (3)     (3)
Indebtedness by subsidiaries  222  222     
– Gross  223  223     
– Impairment allowances  (1) (1)    
Non-interest-bearing loans to subsidiaries  701  700   
– Current – gross  760  706    54 
– Current – impairment allowances  (59) (6)   (53)
Interest-bearing loans to subsidiaries  3 002  3 002     
– Non-current – gross  2 500  2 500     
– Current – gross  502  502     
Treasury facilities with subsidiaries  69  69     
– Gross  415  69    346 
– Impairment allowances  (346)     (346)
Cash and cash equivalents  17 300  17 300     
Total financial assets at amortised cost  21 606  21 463  142 

 

   Company
At 31 December 2023  Total 
Rm 
Performing 
Rm 
Non- 
performing 
Rm 
ESD loans  169  169   
– Non-current – gross  156  107  49 
– Non-current – impairment allowances  (50) (1) (49)
– Current – gross  181  64  117 
– Current – impairment allowances  (118) (1) (117)
Vendor finance loan  177  177   
– Non-current – gross  127  127   
– Current – gross  51  51   
– Current – impairment allowance  (1) (1)  
Other financial assets at amortised cost       
– Current – gross   
– Current – impairment allowances  (4)   (4)
Other receivables  10  10   
– Gross  11  10 
– Impairment allowances  (1)   (1)
Indebtedness by subsidiaries  140  140   
– Gross  140  140   
Non-interest-bearing loans to subsidiaries   575  575   
– Current – gross  635  582  53 
– Current – impairment allowances  (60) (7) (53)
Interest-bearing loans to subsidiaries  4 139  4 139   
– Non-current – gross  2 981  2 981   
– Current – gross  1 158  1 158   
Treasury facilities with subsidiaries  130  130   
– Gross  397  130  267 
– Impairment allowances  (267)   (267)
Cash and cash equivalents  17 151  17 151   
Total financial assets at amortised cost  22 491  22 491   

16.3.3.4.2 Trade and other receivables age analysis

   Group
       Current     Past due 
At 31 December 2024  Total 
Rm 
   1 to 
30 days 
Rm 
31 to 
60 days 
Rm 
   61 to 
90 days 
Rm 
91 to 
180 days 
Rm 
>180 days 
Rm 
Trade receivables  4 098     4 094          
– Gross  4 214     4 105         13  96 
– Impairment allowances  (116)    (11)        (9) (96)
Other receivables  132     121      
– Gross  140     121    
– Impairment allowances  (8)      (1)      (3) (4)
Total carrying amount of trade and other receivables  4 230     4 215    
   Group 
    Current  Past due 
At 31 December 2023  Total 
Rm 
1 to 
30 days 
Rm 
31 to 
60 days 
Rm 
61 to 
90 days 
Rm 
91 to 
180 days 
Rm 
>180 days 
Rm 
Trade receivables  3 829  3 475  177  73  104   
– Gross  3 850  3 495  178  73  104   
– Impairment allowances  (21) (20) (1)      
Other receivables  48  40   
– Gross  55  41  10 
– Impairment allowances  (7) (1)     (1) (5)
Total carrying amount of trade and other receivables  3 877  3 515  179  74  104 
    Company   
    Current   
At 31 December 2024  Total 
Rm 
1 to 
30 days 
Rm 
91 to 
180 days 
Rm 
Other receivables  15  15   
– Gross  18  16 
– Impairment allowances  (3) (1) (2)
Indebtedness by subsidiaries  222  222   
– Gross  223  223   
– Impairment allowances  (1) (1)  
Total carrying amount of trade and other receivables  237  237   
         Company       
      Current      Past due 
At 31 December 2023  Total 
Rm 
1 to 
30 days 
Rm 
31 to 
60 days 
Rm 
61 to 
90 days 
Rm 
>180 days 
Rm 
Other receivables  10 
– Gross  11 
– Impairment allowances  (1)       (1)
Indebtedness by subsidiaries  140  140       
– Gross  140  140       
Total carrying amount of trade and other receivables  150  144 

16.3.3.4.3 Credit quality of financial assets

The credit quality of cash and cash equivalents has been assessed by reference to external credit ratings available from Fitch, Standard & Poor's and Global credit rating.

  Group Company
At 31 December 2024
Rm
2023
Rm
2024
Rm
2023
Rm
Cash and cash equivalents



Fitch ratings



F1+ 3 013 3 861 2 690 3 530
Standard & Poor's ratings
A-1+ 14 117 13 983 11 110 11 606
Global credit rating
AA(za) 1 000 1 007 1 000 1 007
AA+(za) 2 500 1 008 2 500 1 008
Total cash and cash equivalents 20 630 19 859 17 300 17 151

Fitch ratings

F1 Highest credit quality

"+" denotes any exceptionally strong credit feature

Standard & Poor's

A-1+ Highest certainty of payment

A-1 Very high certainty of payment

Global credit ratings

AA(za) Very strong financial security characteristics relative to other issuers in the same country

AA+(za) Very strong financial security characteristics relative to other issuers in the same country

16.3.3.4.4 Collateral

No collateral was held by the group as security, nor any other enhancements over the financial assets during the years ended 31 December 2024 and 2023.

Guarantees

The group did not obtain financial or non-financial assets by taking possession of collateral it holds as security or calling on guarantees during the financial year ended 31 December 2024 and 31 December 2023. The guarantees issued relate to operational liabilities (refer note 13.4.1 on contingent liabilities).

  • 16.3.4 Loan commitments

Loan commitments have been granted to the following parties:

  Group   Company
At 31 December 2024
Rm
2023
Rm
  2024
Rm
2023
Rm
Total loan commitments1 38 12   38 12
ESD applicants2 38 12   38 12
1 The loan commitments were undrawn for the reporting periods.
2 Loans approved and awarded to successful ESD applicants.