Chapter 8: Business environment and portfolio changes

8.4.1 Impairment charges of investments in subsidiaries

1 On 31 December 2025, an impairment assessment was performed by comparing the carrying amount of the investment in Exxaro Holdings Proprietary Limited to its net asset value which management considers approximates the fair value less costs of disposal, representing the recoverable amount. This assessment resulted in the recognition of an impairment charge of R41 million following the fair value loss recognised on the Chifeng investment.

2 On 31 December 2025, an impairment assessment was performed by comparing the carrying amount of the investment in Ferroland to its net asset value which management considers approximates the fair value less costs of disposal, representing the recoverable amount. This assessment resulted in the recognition of an impairment charge of R317 million following the loan capitalisation.

3 Tax effect of nil.