Chapter 7: Taxation

7.5 Deferred tax

	Group		Company

At 31 December	2025 Rm	2024 Rm	2025 Rm	2024 Rm
The movements on deferred tax are as follows:
At beginning of the year	(8 729)	(8 797)	154	180
Items charged to profit or loss	(312)	109	(19)	6
– Current year	(312)	119	(36)	5
– Prior year		(10)	17	1
Items charged directly to equity	27	(53)	22	(32)
– Share-based payments movement	43	(49)	22	(32)
– Cash flow hedges	(7)	(3)
– Cost of hedging	(9)	(1)
Items charged directly to other comprehensive income	118	12
– Cash flow hedges	96	14
– Cost of hedging	12	2
– Financial assets at FVOCI	10	(2)
– Retirement employee obligations		(2)
Disposal of subsidiary	(17)

At end of the year	(8 913)	(8 729)	157	154
Deferred tax asset	388	197	157	154
Deferred tax liability	(9 301)	(8 926)

				Group

	At 31 December 2024			Movement during the year				At 31 December 2025
	Assets Rm	Liabilities Rm	Total net liability Rm	Recognised in profit or loss Rm	Disposal of subsidiary Rm	Recognised in OCI Rm	Recognised directly in equity Rm	Assets Rm	Liabilities Rm	Total net liability Rm

Property, plant and equipment	(3)	(9 319)	(9 322)	99	(1)			25	(9 249)	(9 224)
Customer contracts		(515)	(515)	45					(470)	(470)
Right-of-use assets	(55)	(19)	(74)	(99)	3			(151)	(19)	(170)
Share-based payments	72	62	134	(3)			43	91	83	174
Other accruals and provisions	47	25	72	(57)				64	(49)	15
Bad debt reassessment		25	25	(4)					21	21
Restoration provisions	14	638	652	119				15	756	771
Decommissioning provisions	1	95	96	(3)	(1)				92	92
Leave pay accrual	9	65	74	7	(1)			9	71	80
Retention payables	1	24	25	10				1	34	35
Prepayments	(2)	(64)	(66)	(1)				(2)	(65)	(67)
Environmental rehabilitation funds	(11)	(727)	(738)	(110)				(12)	(836)	(848)
Income received in advance		18	18	(9)					9	9
Inventories	2	42	44	(103)					(59)	(59)
Lease receivables		(8)	(8)	3					(5)	(5)
Local tax losses carried forward	88	743	831	(10)	(13)			187	621	808
Revaluation of financial assets at FVOCI		(106)	(106)			10			(96)	(96)
Retirement employee obligations		49	49	2					51	51
Deferred tax assets not recognised or derecognised	(77)	(64)	(141)	(40)				(116)	(65)	(181)
Unclaimed donations		3	3	(3)
Lease liabilities	95	21	116	98	(4)			188	22	210
Cash flow hedge reserves	9	24	33	(11)		96	(7)	87	24	111
Cost of hedging reserve	4		4			12	(9)	7		7
Contributions to Exxaro ESOP Trust	3	64	67	(14)				2	51	53
Portfolio investments		(2)	(2)	(5)				(7)		(7)
Other future receivables (tax base)				(223)					(223)	(223)

Total	197	(8 926)	(8 729)	(312)	(17)	118	27	388	(9 301)	(8 913)

	Company

	At 31 December 2024	Movement during the year		At 31 December 2025
	Total asset Rm	Recognised in profit or loss Rm	Recognised directly in equity Rm	Total asset1 Rm
Property, plant and equipment	(6)	(21)		(27)
Right-of-use assets	(55)	(93)		(148)
Share-based payments	72	(3)	22	91
Other accruals and provisions	37	8		45
Bad debt reassessment	1	(1)
Restoration provisions	14	1		15
Leave pay accrual	8	1		9
Retention payables	1	(1)
Environmental rehabilitation funds	(11)	(2)		(13)
Prepayments	(1)	(1)		(2)
Lease liabilities	92	93		185
Contributions to Exxaro ESOP Trust	2			2
Total	154	(19)	22	157

1 The deferred tax asset recognised for the company is supported by sufficient forecast profits to be utilised. The forecast profits are based on agreements in place with commodity businesses within Exxaro.

Tax on calculated assessable losses

	Group

At 31 December	2025 Rm	2024 Rm
Deferred tax assets not recognised, relating to:
Local accumulated tax losses	(178)	(140)
Current year tax losses calculated	(38)	(30)

At 31 December 2025, Exxaro estimated that there would be no tax losses in Switzerland. Revenue tax losses of R395 million (AU$36 million) (2024: R420 million (AU$36 million)) and R3 153 million capital losses (AU$286 million) (2024: R3 345 million (AU$286 million)) are estimated to be available in Australia. Revenue tax losses of R2 993 million (2024: R3 078 million) are carried forward and are available for offset against any future taxable profits of the relevant companies in South Africa.

In total, as of 31 December 2025, deferred tax assets have been recognised of R808 million related to South Africa for tax losses carried forward, in the consolidated financial statements of the group at the applicable income tax rate of 27%. In addition, no deferred tax assets have been recognised in respect of R178 million in South Africa as it is not considered probable that there will be future taxable profits available. No deferred tax assets have been recognised or derecognised in the consolidated financial statements of the group relating to Australia or Switzerland.