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 an appropriate performance measure of profitability for the group's business.
Management has presented the performance measure EBITDA because it monitors this performance measure at a consolidated level and it believes that this measure is relevant to an understanding of the group's financial performance.
EBITDA is not a defined performance measure in IFRS Accounting Standards. The group's definition of EBITDA may not be comparable with similarly titled performance measures and disclosures by other entities.
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% (2023: 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% (2023: 10.26%) equity interest in RBCT.
Revenue and related cost items are allocated between the coal reportable segments and disclosed based on the origin of the initial coal production.
The energy operations generate electricity from renewable energy technology. The energy reportable segment comprises mainly of the Cennergi controlled operations and LSP which is in the construction phase.
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% (2023: 20.62%) equity interest in SIOC.
The other operations of the group are made up of the following reportable segments:
Base metals: Comprising of the 26% (2023: 26%) equity interest in Black Mountain.
Other: Comprising mainly of the corporate office (rendering corporate management services) and the Ferroland agricultural operation.
The following tables present a summary of the group's segmental information:
| Coal | ||||||
| Commercial | ||||||
| Note |
Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
|
| For the year ended 31 December 2024 | ||||||
| External revenue | 6.1.2 | 22 563 | 9 893 | 6 659 | 1 411 | |
| Segmental net operating profit/(loss) | 8 430 | (368) | 175 | (315) | 637 | |
| Add back: | ||||||
| Depreciation and amortisation | 6.1.3 | 1 669 | 604 | 14 | 394 | |
| Net losses on disposal of property, plant and equipment | 6.1.3 | 17 | 10 | |||
| Losses on disposal of intangible assets | 6.1.3 | |||||
| EBITDA | 10 116 | 246 | 175 | (301) | 1 031 | |
| Other key items: | ||||||
| Raw materials and consumables | 6.1.3 | (2 162) | (2 868) | (574) | (2) | (1) |
| Staff costs | 6.1.3 | (2 897) | (426) | (2 172) | (414) | (76) |
| Royalties1 | 6.1.3 | (1 096) | (85) | (33) | 137 | |
| Contract mining | 6.1.3 | (109) | (1 895) | (4) | ||
| Repairs and maintenance | 6.1.3 | (1 958) | (343) | (1 021) | (7) | (9) |
| Railage and transport | 6.1.3 | (2 149) | (2 554) | (12) | ||
| Movement in provisions | 6.1.3 | 22 | (277) | 175 | (132) | (1) |
| External finance income | 12.1.2 | 16 | 5 | 36 | 64 | |
| External finance costs | 12.1.2 | (47) | (144) | (100) | (503) | |
| Share of income/(loss) of equity-accounted investments | 9.3 | 234 | (7) | |||
| Income tax (expense)/benefit | 7.3 | (2 171) | 130 | (54) | (89) | (92) |
| Cash generated by/(utilised in) operations | 6.3.1 | 9 390 | 488 | 52 | (712) | 1 038 |
| Capital spend on property, plant and equipment | (1 812) | (268) | (302) | |||
| At 31 December 2024 | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 7.5 | 15 | ||||
| Equity-accounted investments | 9.4 | 2 018 | 2 007 | |||
| External assets | 32 229 | 5 684 | 1 683 | 3 005 | 9 334 | |
| Total assets | 32 229 | 7 702 | 1 683 | 5 012 | 9 349 | |
| External liabilities | 2 054 | 2 761 | 1 398 | 1 627 | 5 552 | |
| Deferred tax2 | 7.5 | 7 419 | 648 | (66) | 13 | 937 |
| Total liabilities | 9 473 | 3 409 | 1 332 | 1 640 | 6 489 | |
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
| Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2024 | ||||||
| External revenue | 190 | 9 | 40 725 | |||
| Segmental net operating profit/(loss) | (51) | (901) | 7 607 | |||
| Add back: | ||||||
| Depreciation and amortisation | 6 | 86 | 2 773 | |||
| Net losses on disposal of property, plant and equipment | 27 | |||||
| Losses on disposal of intangible assets | 16 | 16 | ||||
| EBITDA | (45) | (799) | 10 423 | |||
| Other key items: | ||||||
| Raw materials and consumables | (41) | (24) | (5 672) | |||
| Staff costs | (63) | (932) | (6 980) | |||
| Royalties1 | (1 077) | |||||
| Contract mining | (2 008) | |||||
| Repairs and maintenance | (4) | (15) | (3 357) | |||
| Railage and transport | (1) | (3) | (4 719) | |||
| Movement in provisions | 2 | (211) | ||||
| External finance income | 1 665 | 1 786 | ||||
| External finance costs | (1) | (421) | (1 216) | |||
| Share of income/(loss) of equity-accounted | ||||||
| investments | 3 979 | 64 | 4 270 | |||
| Income tax (expense)/benefit | 16 | (117) | (2 377) | |||
| Cash generated by/(utilised in) operations | 28 | 148 | 10 432 | |||
| Capital spend on property, plant and equipment | (1) | (65) | (2 448) | |||
| At 31 December 2024 | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 25 | 157 | 197 | |||
| Equity-accounted investments | 14 329 | 2 242 | 20 596 | |||
| External assets | 215 | 25 | 21 748 | 73 923 | ||
| Total assets | 240 | 14 354 | 2 242 | 21 905 | 94 716 | |
| External liabilities | 28 | 3 820 | 17 240 | |||
| Deferred tax2 | (25) | 8 926 | ||||
| Total liabilities | 28 | 3 795 | 26 166 | |||
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
| Coal | ||||||
| Commercial | ||||||
| Note | Waterberg Rm |
Mpumalanga Rm |
Tied Rm |
Other Rm |
Energy Rm |
|
| For the year ended 31 December 2023 | ||||||
| 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 | |||
| EBITDA | 11 702 | 997 | 179 | (665) | 1 023 | |
| Other key items: | ||||||
| Raw materials and consumables | 6.1.3 | (2 002) | (2 755) | (497) | (2) | (1) |
| Staff costs | 6.1.3 | (2 740) | (395) | (1 737) | (253) | (68) |
| Royalties1 | 6.1.3 | (1 188) | (108) | (13) | 167 | |
| Contract mining | 6.1.3 | (60) | (1 434) | |||
| Repairs and maintenance | 6.1.3 | (1 677) | (282) | (975) | (1) | (9) |
| Railage and transport | 6.1.3 | (1 744) | (1 424) | (6) | ||
| Movement in provisions | 6.1.3 | 151 | (80) | 53 | (195) | |
| External finance income | 12.1.2 | 26 | 8 | 61 | 40 | |
| External finance costs | 12.1.2 | (66) | (97) | (79) | (515) | |
| Share of income/(loss) of equity-accounted investments | 9.3 | 508 | (10) | |||
| Income tax expense | 7.3 | (2 603) | (98) | (27) | (118) | (71) |
| 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 tax2 | 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 tax2 | 7.5 | 7 335 | 856 | (60) | 2 | 903 |
| Total liabilities | 9 925 | 3 307 | 1 540 | 781 | 6 024 | |
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
| Ferrous | Other | |||||
| Alloys Rm |
Other ferrous Rm |
Base metals Rm |
Other Rm |
Total Rm |
||
| For the year ended 31 December 2023 | ||||||
| External revenue | 398 | 10 | 38 698 | |||
| Segmental net operating profit/(loss) | 82 | (149) | 10 627 | |||
| Add back: | ||||||
| Depreciation and amortisation | 1 | 192 | 2 715 | |||
| Net losses on disposal of property, plant and equipment | 37 | 57 | ||||
| EBITDA | 83 | 80 | 13 399 | |||
| Other key items: | ||||||
| Raw materials and consumables | (58) | (17) | (5 332) | |||
| Staff costs | (69) | (829) | (6 091) | |||
| Royalties1 | (1 142) | |||||
| Contract mining | (1 494) | |||||
| Repairs and maintenance | (6) | (19) | (2 969) | |||
| Railage and transport | (3) | (1) | (3 178) | |||
| Movement in provisions | 1 | (70) | ||||
| External finance income | 1 435 | 1 570 | ||||
| External finance costs | (1) | (494) | (1 252) | |||
| Share of income/(loss) of equity-accounted | ||||||
| investments | 6 157 | 332 | 6 987 | |||
| Income tax expense | (18) | (296) | (3 231) | |||
| Cash generated by/(utilised in) operations | 234 | 250 | 13 307 | |||
| Capital spend on property, plant and equipment | (1) | (21) | (2 699) | |||
| At 31 December 2023 | ||||||
| Segmental assets and liabilities | ||||||
| Deferred tax2 | 9 | 183 | 206 | |||
| Equity-accounted investments | 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 tax2 | (33) | 9 003 | ||||
| Total liabilities | 40 | 3 | 4 827 | 26 447 | ||
| 1 | Calculated per legal entity. |
| 2 | Offset per legal entity and tax authority. |
IR