Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2025
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 |
2025 Rm |
2024 Rm |
2025 Rm |
2024 Rm |
|||||
|
Non-current |
||||||||||
|
Financial assets at FVOCI |
393 |
442 |
|
|
||||||
|
Equity: unlisted – Chifeng1 |
393 |
442 |
|
|
||||||
|
Financial assets at FVPL |
4 340 |
4 557 |
46 |
42 |
||||||
|
Debt: unlisted – environmental rehabilitation funds |
3 054 |
2 657 |
46 |
42 |
||||||
|
Debt: unlisted – portfolio investments |
577 |
513 |
|
|
||||||
|
Debt: unlisted – deposit facilities2 |
709 |
1 387 |
|
|
||||||
|
Derivative financial assets designated as hedging instruments |
|
1 |
|
|
||||||
|
Cash flow hedge derivatives: interest rate swaps3 |
|
1 |
|
|
||||||
|
Financial assets at amortised cost |
282 |
266 |
4 638 |
2 648 |
||||||
|
ESD loans4 |
58 |
68 |
58 |
68 |
||||||
|
– Gross |
88 |
131 |
88 |
131 |
||||||
|
– Impairment allowances |
(30) |
(63) |
(30) |
(63) |
||||||
|
Vendor finance loan5 |
45 |
80 |
45 |
80 |
||||||
|
– Gross |
45 |
81 |
45 |
81 |
||||||
|
– Impairment allowance |
|
(1) |
|
(1) |
||||||
|
Interest-bearing loans to subsidiaries6 |
4 485 |
2 500 |
||||||||
|
Other financial assets at amortised cost |
179 |
118 |
50 |
|
||||||
|
– Environmental rehabilitation funds |
129 |
118 |
|
|
||||||
|
– Deferred consideration receivable7 |
50 |
|
50 |
|
||||||
|
Total non-current financial assets per statement of financial position |
5 015 |
5 266 |
4 684 |
2 690 |
||||||
|
Current |
||||||||||
|
Financial assets at FVPL |
1 166 |
2 |
|
|
||||||
|
Derivative financial assets |
18 |
2 |
|
|
||||||
|
Debt: unlisted – deposit facilities2 |
1 148 |
|
|
|
||||||
|
Financial assets at amortised cost |
93 |
157 |
1 433 |
1 421 |
||||||
|
ESD loans4 |
82 |
83 |
82 |
83 |
||||||
|
– Gross |
241 |
247 |
241 |
247 |
||||||
|
– Impairment allowances |
(159) |
(164) |
(159) |
(164) |
||||||
|
Vendor finance loan5 |
1 |
62 |
1 |
62 |
||||||
|
– Gross |
1 |
63 |
1 |
63 |
||||||
|
– Impairment allowance |
|
(1) |
|
(1) |
||||||
|
Intervention receivable8 |
7 |
8 |
|
|
||||||
|
Investment deposits9 |
|
4 |
|
4 |
||||||
|
Interest-bearing loans to subsidiaries6 |
429 |
502 |
||||||||
|
Non-interest-bearing loans to subsidiaries10 |
918 |
701 |
||||||||
|
– Gross |
|
|
980 |
760 |
||||||
|
– Impairment allowances |
|
|
(62) |
(59) |
||||||
|
Treasury facilities with subsidiaries11 |
|
69 |
||||||||
|
– Gross |
|
|
6 |
415 |
||||||
|
– Impairment allowances |
|
|
(6) |
(346) |
||||||
|
Other financial assets at amortised cost |
3 |
|
3 |
|
||||||
|
– Deferred consideration receivable12 |
3 |
|
3 |
|
||||||
|
– Employee receivables |
2 |
4 |
2 |
4 |
||||||
|
– Impairment allowances |
(2) |
(4) |
(2) |
(4) |
||||||
|
Total current financial assets per statement of financial position |
1 259 |
159 |
1 433 |
1 421 |
||||||
|
Total financial assets per statement of financial position |
6 274 |
5 425 |
6 117 |
4 111 |
||||||
1 Exxaro holds an 8.81% (2024: 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 on a facility is settled at the end of the term, net of fees, returns and claims incurred. Annual premiums are required to be placed in the facility over the term yielding returns on underlying fund portfolios. The first deposit facility term ends in 2026.
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 The vendor finance loan granted to Overlooked Colliery Proprietary Limited as part of the disposal of the ECC operation was settled early in March 2025. On 31 October 2025 a vendor finance loan was granted to Everseed Proprietary Limited as part of the disposal transaction of FerroAlloys. The vendor finance loan is secured with second ranking security which is repayable within five years and bears interest at Prime Rate plus 3.5%.
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 A portion of the purchase price arising on the disposal transaction of FerroAlloys was deferred and is payable by Everseed Proprietary Limited as follows:
– R10 million is payable one business day which falls six months after the settlement of the Senior Debt Facility by Everseed Proprietary Limited, and
– R40 million is payable one business day which falls 18 months after the settlement of the Senior Debt Facility by Everseed Proprietary Limited.
The deferred consideration receivable accrues interest one business day after the settlement of the Senior Debt Facility by Everseed Proprietary Limited at Prime Rate plus 4.5%.
8 Relates to amounts advanced for funding of logistical projects.
9 Investment deposits with a term of three to 12 months.
10 These loans are interest-free, unsecured and repayable on demand.
11 Treasury facilities with subsidiaries have no repayments terms and are repayable on demand. Interest is charged at money market rates.
12 An additional R2.5 million relates to deferred consideration which is owing by Everseed Proprietary Limited on the disposal transaction of FerroAlloys which will be paid as soon as Everseed Proprietary Limited establishes an employee share option trust.
10.3.3 Impairment allowances movement analysis
|
Group |
Company |
|||||
|---|---|---|---|---|---|---|
|
At 31 December |
Note |
2025 Rm |
2024 Rm |
2025 Rm |
2024 Rm |
|
|
ESD loans |
||||||
|
Opening balance |
(227) |
(168) |
(227) |
(168) |
||
|
– Performing |
(1) |
(2) |
(1) |
(2) |
||
|
– Non-performing |
(226) |
(166) |
(226) |
(166) |
||
|
Movement in impairment allowances |
38 |
(59) |
38 |
(59) |
||
|
– Performing |
(1) |
1 |
(1) |
1 |
||
|
– Non-performing |
39 |
(60) |
39 |
(60) |
||
|
At end of the year |
(189) |
(227) |
(189) |
(227) |
||
|
– Performing |
(2) |
(1) |
(2) |
(1) |
||
|
– Non-performing |
(187) |
(226) |
(187) |
(226) |
||
|
Vendor finance loan |
||||||
|
Opening balance |
(2) |
(1) |
(2) |
(1) |
||
|
– Performing |
|
(1) |
|
(1) |
||
|
– Under-performing |
(2) |
|
(2) |
|
||
|
Movement in impairment allowance |
2 |
(1) |
2 |
(1) |
||
|
– Performing |
|
1 |
|
1 |
||
|
– Under-performing |
2 |
(2) |
2 |
(2) |
||
|
At end of the year |
|
(2) |
|
(2) |
||
|
– Under-performing |
|
(2) |
|
(2) |
||
|
Other financial assets at amortised cost |
||||||
|
Opening balance |
(4) |
(6) |
(4) |
(4) |
||
|
– Performing |
|
(2) |
|
|||
|
– Non-performing |
(4) |
(4) |
(4) |
(4) |
||
|
Movement in impairment allowances |
2 |
2 |
2 |
|
||
|
– Performing |
|
2 |
|
|
||
|
– Non-performing |
2 |
|
2 |
|
||
|
At end of the year |
(2) |
(4) |
(2) |
(4) |
||
|
– Non-performing |
(2) |
(4) |
(2) |
(4) |
||
|
Non-interest-bearing loans to subsidiaries |
||||||
|
Opening balance |
(59) |
(60) |
||||
|
– Performing |
|
|
(6) |
(7) |
||
|
– Non-performing |
|
|
(53) |
(53) |
||
|
Movement in impairment allowances |
(3) |
1 |
||||
|
– Performing |
|
|
(1) |
1 |
||
|
– Non-performing |
|
|
(2) |
|
||
|
At end of the year |
(62) |
(59) |
||||
|
– Performing |
|
|
(7) |
(6) |
||
|
– Non-performing |
|
|
(55) |
(53) |
||
|
Treasury facilities with subsidiaries |
||||||
|
Opening balance |
(346) |
(267) |
||||
|
– Non-performing |
|
|
(346) |
(267) |
||
|
Movement in impairment allowances |
340 |
(79) |
||||
|
– Non-performing |
|
|
340 |
(79) |
||
|
At end of the year |
(6) |
(346) |
||||
|
– Non-performing |
|
|
(6) |
(346) |
||