REVIEWED CONDENSED GROUP INTERIM FINANCIAL RESULTS AND UNREVIEWED PRODUCTION AND SALES VOLUME INFORMATION FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2015

PERFORMANCE IN BRIEF

No fatality for 1H15
Lost-time injury frequency rate (LTIFR) improved by 23% to 0,17
Coal production volumes at 19 million tonnes, up 1%
Coal exports at 2,4 million tonnes, down 12%
53% decrease in dividends received from associates
Net cash position of R55 million
Headline earnings per share of 303 cents, down 62%
Interim dividend of 65 cents per share, down 75%

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME

  6 months ended 6 months ended   12 months ended
  30 June 30 June 31 December
  2015 2014 2014
  Reviewed Reviewed Audited
  Rm Rm Rm
Revenue 8 324 7 412 16 401
Operating expenses (6 513) (6 620) (15 197)
Operating profit (note 4) 1 811 792 1 204
Other income (note 5)   888 1 466
Impairment charges of non-current assets (note 6)   (5 760) (5 962)
Net operating profit/(loss) 1 811 (4 080) (3 292)
Finance income (note 7) 33 43 80
Finance costs (note 7) (359) (86) (183)
Income from financial assets 1 7 9
Share of income of equity-accounted investments (note 8) 83 1 515 2 515
Profit/(loss) before tax 1 569 (2 601) (871)
Income tax (expense)/benefit (402) 159 (13)
Profit/(loss) for the period 1 167 (2 442) (884)
Other comprehensive income, net of tax 561 468 1 190
Items that will not be reclassified to profit or loss: 16 35 (316)
share of comprehensive income/(loss) of
equity-accounted investments
16 35 (316)
Items that may be subsequently reclassified to profit or
loss:
545 433 1 506
unrealised gains on translation of foreign operations 28 164 224
revaluation of financial assets available-for-sale 14 148 345
share of comprehensive income of equity-accounted investments 503 121 937
Total comprehensive income/(loss) for the period 1 728 (1 974) 306
Profit/(loss) attributable to:      
Owners of the parent 1 167 (2 441) (883)
Non-controlling interests   (1) (1)
Profit/(loss) for the period 1 167 (2 442) (884)
Total comprehensive income/(loss) attributable to:      
Owners of the parent 1 728 (1 969) 307
Non-controlling interests   (5) (1)
Total comprehensive income/(loss) for the period 1 728 (1 974) 306
       
       
  6 months ended 6 months ended 12 months ended
  30 June 30 June 31 December
  2015 2014 2014
  Reviewed Reviewed Audited
  cents cents cents
Attributable earnings/(loss) per share      
Aggregate      
– basic 329 (688) (249)
– diluted 328 (686) (249)
Refer to note 9 for details regarding the number of shares

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION





























































































































































































































































  At 30 June At 30 June At 31 December
  2015 2014 2014
  Reviewed Reviewed Audited
  Rm Rm Rm
ASSETS      
Non-current assets 41 638 40 402 41 408
Property, plant and equipment 19 018 17 057 18 344
Biological assets 84 72 84
Intangible assets 30 232 34
Investments in associates (note 11) 18 118 18 828 18 588
Investments in joint ventures (note 12) 1 104 859 966
Financial assets 2 766 2 763 2 853
Deferred tax 518 591 539
Current assets 9 987 5 578 5 693
Inventories 995 1 018 998
Trade and other receivables 1 906 2 875 2 611
Current tax receivable 102 98 78
Cash and cash equivalents 6 984 1 587 2 006
Non-current assets held-for-sale (note 13) 314 284 328
Total assets 51 939 46 264 47 429
EQUITY AND LIABILITIES      
Capital and other components of equity      
Share capital 2 435 2 402 2 409
Other components of equity 6 581 5 334 6 031
Retained earnings 26 413 25 328 25 985
Equity attributable to owners of the parent 35 429 33 064 34 425
Non-controlling interests   (4)  
Total equity 35 429 33 060 34 425
Non-current liabilities 12 638 9 186 9 182
Interest-bearing borrowings (note 14) 5 931 3 405 2 976
Non-current provisions 2 373 1 950 2 219
Post-retirement employee obligations 167 158 167
Financial liabilities 82 91 88
Deferred tax 4 085 3 582 3 732
Current liabilities 3 645 3 809 3 590
Trade and other payables 2 465 2 888 3 208
Interest-bearing borrowings (note 14) 465 197 34
Current tax payable 14 57 27
Current provisions 168 29 254
Overdraft (note 14) 533 638 67
Non-current liabilities held-for-sale (note 13) 227 209 232
Total equity and liabilities 51 939 46 264 47 429


GROUP STATEMENT OF CHANGES IN EQUITY







































































































































































































































































































































































































































































































      Other components of equity        
    Foreign Financial   Retirement Available-     Attributable Non-  
  Share currency instruments Equity- benefit for-sale   Retained to owners of controlling Total
  capital translations revaluation settled obligation revaluations Other earnings the parent interests equity
  Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
At 31 December 2013 (Audited) 2 396 3 146 310 1 493 (13) 100 (802) 29 668 36 298 (26) 36 272
Loss for the period               (2 441) (2 441) (1) (2 442)
Other comprehensive income/(loss)   168       148     316 (4) 312
Share of comprehensive income/(loss) of         35   (6) 35 156   156
equity-accounted investments   69 (124) 147         6   6
Issue of share capital1 6           808 (808) (118)   (118)
Share-based payments movement       (118)       (1 126)      
Reclassification of equity             (27)   (1 126)   (1 126)
Dividends paid             (27) 25 328 (27) 27  
Acquisition of non-controlling interest         22 248   1 558 33 064 (4) 33 060
At 30 June 2014 (Reviewed) 2 402 3 383 186 1 522         1 558   1 558
Profit for the period           197   28 253 4 257
Other comprehensive income   56     (351) (63)     465   465
Share of comprehensive income/(loss) of                 7   7
equity-accounted investments   758 (70) 163       (929) 10   10
Issue of share capital1 7           27   (929)   (929)
Share-based payments movement       10         27 (27)  
Dividends paid                 (30) 27 (3)
Disposal of non-controlling interest               25 985      
Disposal and liquidation of subsidiaries   (30)     (329) 382   1 167 34 425   34 425
                  1 167   1 167
At 31 December 2014 (Audited) 2 409 4 167 116 1 695   14   13 42   42
Profit for the period         16 13     519   519
Other comprehensive income   282             26   26
Share of comprehensive income/(loss) of               (752) 2   2
equity-accounted investments   384 (23) 116       26 413 (752)   (752)
Issue of share capital1 26       (313) 409     35 429   35 429
Share-based payments movement       2              
Dividends paid                      
At 30 June 2015 (Reviewed) 2 435 4 579 93 1 813              

1 Vesting of treasury shares held by Mpower 2012 to good leavers. A good leaver is a participant to a share-based payment scheme whose employment has been terminated due to retrenchment, retirement, death, serious disability, serious incapacity or promotion out of the relevant qualification category as defined internally by the remuneration and nominations committee.
2 Includes R33 million gain on translation differences recycled to the statement of comprehensive income.













Final dividend paid per share (cents) in respect of the 2014 financial year 210
Interim dividend paid per share (cents) in respect of the 2014 interim period 260
Dividend payable per share (cents) in respect of the 2015 interim period 65

Foreign currency translations
Arise from the translation of the financial statements of foreign operations within the group.

Financial instruments revaluation
Comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments where the hedged transaction has not yet occurred.

Equity-settled
Represents the fair value of services received from employees and settled by equity instruments granted.

Retirement benefit obligation
Comprises remeasurements on the post-retirement obligation.

Available-for-sale revaluations
Comprise the fair value adjustments, net of tax, on the investments in RBCT R15 million decrease (2014: R344 million increase) and Chifeng Kumba Hongye Corporation Limited (Chifeng) R29 million increase (2014: R1 million increase) (refer note 16).

Other
Comprise mainly transactions with non-controlling interests for the acquisition of the Mayoko iron ore project of R808 million and Botswana of R27 million during 2014.

CONDENSED GROUP STATEMENT OF CASH FLOWS

























































































































































































































  6 months ended 6 months ended 12 months ended
  30 June 30 June 31 December
  2015 2014 2014
  Reviewed Reviewed Audited
  Rm Rm Rm
       
Cash flows from operating activities 1 297 262 1 660
Cash generated by operations 2 330 1 555 4 083
Interest paid (230) (170) (307)
Interest received 23 34 59
Tax paid (74) (31) (120)
Dividends paid (752) (1 126) (2 055)
Cash flows from investing activities (178) 485 620
Property, plant and equipment to maintain operations      
(note 10) (703) (502) (1 460)
Property, plant and equipment to expand operations      
(note 10) (298) (1 076) (1 737)
Increase in investment in intangible assets   (10) (25)
Proceeds from disposal of property, plant and      
equipment 73   8
(Increase)/decrease in investments in other      
non-current assets (158) 51 214
Increase in investment in joint ventures (77) (61) (108)
Income from investments in associates 984 2 081 3 719
Dividend income from financial assets 1 2 9
Cash flows from financing activities 3 350   (604)
Interest-bearing borrowings raised (note 14) 4 320 1 000 1 000
Interest-bearing borrowings repaid (note 14) (970) (1 000) (1 604)
       
Net increase in cash and cash equivalents 4 469 747 1 676
Cash and cash equivalents at beginning of the period 1 939 223 223
Translation difference on movement in cash and      
cash equivalents 43 (21) 40
Cash and cash equivalents at end of the period 6 451 949 1 939
– cash and cash equivalents 6 984 1 587 2 006
– overdraft (533) (638) (67)


RECONCILIATION OF GROUP HEADLINE EARNINGS
























































































































































































































































































































  Gross Tax Net
  Rm Rm Rm
6 months ended 30 June 2015 (Reviewed)      
Profit for the period attributable to owners of the parent     1 167
Adjusted for: (90)   (90)
– IAS 16 Net gains on disposal of property, plant and equipment (66) (2) (68)
– IAS 16 Compensation from third parties for items of property, plant and equipment      
impaired, given up or lost (5) 2 (3)
– IAS 21 Gains on translation differences recycled to the statement of      
comprehensive income (33)   (33)
– IAS 28 Loss on dilution of investment in associate 11   11
– IAS 28 Share of associates’ separate identifiable remeasurements 3   3
       
Headline earnings     1 077
6 months ended 30 June 2014 (Reviewed)      
Loss for the period attributable to owners of the parent     (2 441)
Adjusted for: 5 812 (557) 5 255
       
– IAS 16 Net losses on disposal of property, plant and equipment 19 (5) 14
– IAS 28 Loss on dilution of investment in associate 29   29
– IAS 28 Share of associates’ separate identifiable remeasurements 4   4
– IAS 36 Impairment of property, plant and equipment 4 740 (552) 4 188
– IAS 36 Impairment of goodwill acquired in a business combination in terms of IFRS 3 1 020   1 020
       
Headline earnings     2 814
12 months ended 31 December 2014 (Audited)      
Loss for the year attributable to owners of the parent     (883)
Adjusted for: 6 328 (576) 5 752
       
– IFRS 10 Loss on disposal of subsidiary 28   28
– IAS 16 Net losses on disposal of property, plant and equipment 27 (6) 21
– IAS 21 Gains on translation differences recycled to the statement of      
comprehensive income (47)   (47)
– IAS 28 Loss on dilution of investment in associate 58   58
– IAS 28 Share of associates’ separate identifiable remeasurements 296 (18) 278
– IAS 36 Impairment of property, plant and equipment 4 740 (552) 4 188
– IAS 36 Impairment of intangible asset 202   202
– IAS 36 Impairment of goodwill acquired in a business combination in terms of IFRS 3 1 020   1 020
– IAS 38 Loss on the write-off of intangible assets 4   4
       
Headline earnings     4 869
       
  6 months ended 6 months ended 12 months ended
  30 June 30 June 31 December
  2015 2014 2014
  Reviewed Reviewed Audited
  cents cents cents
Headline earnings per share      
Aggregate      
– basic 303 793 1 372
– diluted 303 790 1 372
Refer to note 9 for details regarding the number of shares.      

NOTES TO THE REVIEWED CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six-month period ended 30 June 2015
























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































1. Corporate background
  Exxaro Resources Limited (Exxaro), a public company incorporated in South Africa, is a diversified resources group with interests in the carbon (controlled and non-controlled), TiO2 and Alkali Chemicals (non-controlled), ferrous (controlled and non-controlled) and energy (non-controlled) markets. These reviewed condensed group interim financial statements as at and for the six-month period ended 30 June 2015 comprise the company and its subsidiaries (together referred to as the group) and the group’s interest in associates and joint ventures.
   
2. Basis of accounting
  Statement of compliance
  The reviewed condensed group interim financial statements as at and for the six-month period ended 30 June 2015 have been prepared in accordance with IFRS, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the South African Companies Act No 71 of 2008. The reviewed condensed group interim financial statements as at and for the six-month period ended 30 June 2015 have been prepared under the supervision of WA de Klerk (CA)SA, SAICA registration number: 00133273.
   
  The reviewed condensed group interim financial statements should be read in conjunction with the group annual financial statements as at and for the year ended 31 December 2014, which have been prepared in accordance with IFRS as issued by the IASB. The reviewed condensed group interim financial statements have been prepared on the historical cost basis, excluding financial instruments and biological assets, which are at fair value.
   
  The reviewed condensed group interim financial statements of Exxaro and its subsidiaries as at and for the six-month period ended 30 June 2015 were authorised for issue by the board of directors on 18 August 2015.
   
  Judgements and estimates
  In preparing these reviewed condensed group interim financial statements, management made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the group’s accounting policies and the key source of estimation uncertainty were similar to those applied to the group annual financial statements as at and for the year ended 31 December 2014.
   
  Significant accounting policies
  The accounting policies adopted in the preparation of the reviewed condensed group interim financial statements are consistent with those followed in the preparation of the group annual financial statements as at and for the year ended 31 December 2014. Amendments to IFRSs effective for the financial year ended 31 December 2015 are not expected to have a material impact on the group.
   
  New accounting standards and amendments issued to accounting standards and interpretations which are relevant to the group, but not yet effective on 30 June 2015, have not been adopted. The group continuously evaluates the impact of these standards and amendments.
   
  Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual profit or loss.
   
3. Segmental information
  Operating segments are reported on in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the reportable operating segments, has been identified as the group executive committee. Operating segments reported are based on the group’s different products and operations.
   
  Total operating segment revenue, which excludes VAT, represents the gross value of goods invoiced, services rendered and includes operating revenues directly and reasonably allocable to the segments. Export revenue is recorded according to the relevant sales terms, when the risks and rewards of ownership are transferred.
   
  Segment revenue includes sales made between segments. These sales are made on a commercial basis.
   
  Segment operating expenses, assets and liabilities represent direct or reasonably allocable operating expenses, assets and liabilities.
   
  Segment net operating profit equals segment revenue less operating segment expenses, less impairment charges, plus impairment reversals.
   
  The group has four reportable operating segments, as described below, which are the group’s strategic divisions. These offer different products and services, and are managed separately because they require different technology and marketing strategies. The group executive committee reviews internal management reports on these strategic divisions at least quarterly. The summary below describes the operations in each of the group’s reportable operating segments:
   
  Carbon
  The carbon segment was previously referred to as the coal segment. Carbon segment is now used to include the future envisaged development of the operations which includes not only coal. The operations are mainly situated in the Waterberg and Mpumalanga regions and are split between commercial carbon operations and tied carbon operations as well as a 50% joint venture interest in Mafube Coal Proprietary Limited (Mafube) (a joint venture with Anglo South Africa Capital Proprietary Limited). The operations produce thermal and metallurgical coal as well as other small-scale products.
   
  Ferrous
  The ferrous segment includes the Mayoko iron ore project in the RoC (iron ore operating segment), a 19,98% equity interest in SIOC reported within the other ferrous operating segment as well as the FerroAlloys and Alloystream™ operations (collectively referred to as Alloys).
   
  TiO2 and Alkali Chemicals
  The TiO2 and Alkali Chemicals segment was previously referred to as TiO2. This change is due to the acquisition of the Alkali Chemicals business from FMC Corporation by Tronox Limited on 1 April 2015. Tronox Limited now operates two vertically integrated divisions: TiO2 and Alkali Chemicals. Exxaro holds a 43,84% (June 2014: 44,18%; December 2014: 43,98%) equity interest in Tronox and a 26% equity interest in each of the South African-based operations, Tronox KZN Sands Proprietary Limited and Tronox Mineral Sands Proprietary Limited (collectively referred to as Tronox SA) as well as a 26% member’s interest in Tronox Sands Limited Liability Partnership in the United Kingdom (Tronox UK).
   
  Other
  The other operating segment includes the 50% investment in Cennergi Proprietary Limited (Cennergi) (a joint venture with Tata Power), a 26% equity interest in Black Mountain Proprietary Limited (Black Mountain), an effective investment of 11,7% in Chifeng as well as the corporate office which renders support services to both internal and external parties.
   
  The following table presents a summary of the group’s segmental
information:
                     
              TiO2 and      
              Alkali      
    Carbon Ferrous Chemicals Other Total
    Tied Commercial Iron   Other   Base    
    operations operations ore Alloys ferrous   metals Other  
    Rm Rm Rm Rm Rm Rm Rm Rm Rm
                     
  6 months ended 30 June 2015 (Reviewed)                  
  Total revenue 1 847 6 370   83       24 8 324
  Inter-segmental revenue                  
  External revenue 1 847 6 370   83       24 8 324
  Segment net operating profit/(loss) 102 1 562 (40) 3 (11)     195 1 811
  External finance income (note 7) 2 15           16 33
  External finance costs (note 7) (29) (65)           (265) (359)
  Income tax (expense)/benefit (15) (427) (3) (2) 8     37 (402)
  Depreciation and amortisation (note 4) (12) (367)   (2)       (30) (411)
  Cash generated by/(utilised in) operations1 233 2 078 (65) (16) (15)     115 2 330
  Share of income/(loss) of equity-accounted investments (note 8)   132     633 (659) 9 (32) 83
  Capital expenditure (note 10)   (956)   (10)       (35) (1 001)
  At 30 June 2015 (Reviewed)                  
  Segment assets and liabilities                  
  Deferred tax 9 33   125 111     240 518
  Investments in associates (equity-accounted) (note 11)         5 498 12 255 365   18 118
  Investments in joint ventures (equity-accounted) (note 12)   935           169 1 104
  External assets2 1 742 22 813 106 146 32   305 6 741 31 885
  Total assets 1 751 23 781 106 271 5 641 12 255 670 7 150 51 625
  Non-current assets held-for-sale (note 13)   314             314
  Total assets as per statement of financial position 1 751 24 095 106 271 5 641 12 255 670 7 150 51 939
  External liabilities 1 366 3 564 165 43 75     6 971 12 184
  Deferred tax (78) 4 143 3 7       10 4 085
  Current tax payable   8 2         4 14
  Total liabilities 1 288 7 715 170 50 75     6 985 16 283
  Non-current liabilities held-for-sale (note 13)   227             227
  Total liabilities as per statement of financial position 1 288 7 942 170 50 75     6 985 16 510
                     
              TiO2 and      
            Alkali      
    Carbon Ferrous Chemicals   Other Total
    Tied Commercial Iron   Other   Base    
    operations operations ore Alloys ferrous   metals Other  
    Rm Rm Rm Rm Rm Rm Rm Rm Rm
  6 months ended 30 June 2014 (Reviewed)                  
  Total revenue 2 094 5 220   71 11     29 7 425
  Inter-segmental revenue   (2)     (11)       (13)
  External revenue 2 094 5 218   71       29 7 412
  Segment net operating profit/(loss) 208 1 628 (5 821) (96)       1 (4 080)
  External finance income (note 7) 3 27           13 43
  External finance costs (note 7) (34) (63)           11 (86)
  Income tax (expense)/benefit (43) (467) 563 27 (3)     82 159
  Depreciation and amortisation (note 4) (21) (326) (8) (2) (3)     (48) (408)
  Impairment charges of non-current assets (excluding financial assets) (note 6)     (5 751)   (9)       (5 760)
  Write-off and impairment of trade and other receivables (note 4)   (1) (26)         (2) (29)
  Impairment charges of                  
  non-current financial assets     (21)           (21)
  (note 4)              
  Cash generated by/(utilised in) operations 169 1 483 108 (20) (9)     (176) 1 555
  Share of income/(loss) of equity-accounted investments (note 8)   109     1 711 (304) 46 (47) 1 515
  Capital expenditure (note 10)   (1 045) (456) (8)       (69) (1 578)
  At 30 June 2014 (Reviewed)                  
  Segment assets and liabilities                  
  Deferred tax 43 98   125 50     275 591
  Investments in associates (equity-accounted) (note 11)         5 583 12 918 327   18 828
  Investments in joint ventures (equity-accounted) (note 12)   636           223 859
  External assets1 1 803 21 364 62 88 78   287 2 020 25 702
  Total assets 1 846 22 098 62 213 5 711 12 918 614 2 518 45 980
  Non-current assets held-for-sale (note 13)   284             284
  Total assets as per statement of financial position 1 846 22 382 62 213 5 711 12 918 614 2 518 46 264
  External liabilities 1 432 3 318 193 91 11     4 311 9 356
  Deferred tax 105 3 343 51 2 40     41 3 582
  Current tax payable   10 2         45 57
  Total liabilities 1 537 6 671 246 93 51     4 397 12 995
  Non-current liabilities held-for-sale (note 13)   209             209
  Total liabilities as per statement of financial position 1 537 6 880 246 93 51     4 397 13 204
  1 Excluding deferred tax, investments in equity-accounted associates and joint ventures and non-current assets held-for-sale.
                     
              TiO2 and      
            Alkali      
    Carbon Ferrous Chemicals   Other Total
    Tied Commercial Iron   Other   Base    
    operations operations ore Alloys ferrous   metals Other  
    Rm Rm Rm Rm Rm Rm Rm Rm Rm
  12 months ended 31 December 2014 (Audited)                  
  Total revenue 4 577 11 601   159 14     67 16 418
  Inter-segmental revenue   (2)     (14)     (1) (17)
  External revenue 4 577 11 599   159       66 16 401
  Segment net operating profit/(loss) 319 2 978 (6 100) (97) (41)   (1) (350) (3 292)
  External finance income (note 7) 4 43           33 80
  External finance costs (note 7) (69) (124)           10 (183)
  Income tax (expense)/benefit (53) (751) 624 23 90     54 (13)
  Depreciation and amortisation (note 4) (43) (734) (8) (4) (4)     (96) (889)
  Impairment charges of non-current assets (excluding financial assets) (note 6)     (5 751)   (9)     (202) (5 962)
  Write-off and impairment of trade and other receivables (note 4)   (1) (22)         (17) (40)
  Impairment charges of non-current financial assets (note 4)     (21)           (21)
  Cash generated by/(utilised in) 95 4 365 (75) (64) (109)     (129) 4 083
  operations    
  Share of income/(loss) of equity-accounted investments (note 8)   268     2 830 (568) 77 (92) 2 515
  Capital expenditure (note 10)   (2 576) (352) (42) (104)     (123) (3 197)
  At 31 December 2014 (Audited)                  
  Segment assets and liabilities                  
  Deferred tax 4 41 57 123 103     211 539
  Investments in associates (equity-accounted) (note 11)         5 422 12 809 357   18 588
  Investments in joint ventures (equity-accounted) (note 12)   818           148 966
  External assets1 1 883 22 075 81 124 16   267 2 562 27 008
  Total assets 1 887 22 934 138 247 5 541 12 809 624 2 921 47 101
  Non-current assets held-for-sale (note 13)   303     25       328
  Total assets as per statement of financial position 1 887 23 237 138 247 5 566 12 809 624 2 921 47 429
  External liabilities 1 523 3 723 139 49 73     3 506 9 013
  Deferred tax (71) 3 718 57 5       23 3 732
  Current tax payable 10 5 5         7 27
  Total liabilities 1 462 7 446 201 54 73     3 536 12 772
  Non-current liabilities held-for-sale (note 13)   232             232
  Total liabilities as per statement of financial position 1 462 7 678 201 54 73     3 536 13 004
  1Excluding deferred tax, investments in equity-accounted associates and joint ventures and non-current assets held-for-sale.
                     
                     



































































































































































































































































    6 months ended 6 months ended 12 months ended
    30 June 30 June 31 December
    2015 2014 2014
    Reviewed Reviewed Audited
    Rm Rm Rm
4. Significant items included in operating profit      
  Depreciation and amortisation 411 408 889
  Net realised foreign currency exchange (gains)/losses (35) 24 (97)
  Net unrealised foreign currency exchange gains1 (307) (5) (7)
  Net gains on derivative instruments held-for-trading (9) (28) (28)
  Write-off and impairment of trade and other receivables2 3 29 40
  Impairment charges of non-current financial asset3   21 21
  Royalties 53 46 125
  Net (gains)/losses on disposal of property, plant and equipment (66) 19 27
  Loss on dilution of investment in associate 11 29 58
  Loss on disposal of subsidiary Termination benefits4 40 25 138
 

1. Include unrealised (gains)/losses on revaluations of foreign cash balances.
2. Include trade and other receivables relating to  the Mayoko iron ore project (nil) (June 2014: R26 million; 31 December 2014: R22 million).
3 Non-current financial asset relating to the Mayoko iron ore project.
4 Include voluntary severance package costs incurred and accrued for.

         
5. Other income      
  Other income   (888) (1 466)
  Other income relates to shortfall income received from Eskom as a result of delays in agreed upon production off-take plans.      
         
6. Impairment charges of non-current assets      
  Mayoko iron ore project   5 208 5 208
  Impairment charges   5 760 5 760
  – property, plant and equipment   4 740 4 740
  – goodwill   1 020 1 020
  Intellectual property     202
  Impairment of intangible asset      
  – total impairment charges (pre-tax and post-tax)     202
  Net impairment charges per statement of comprehensive income   5 760 5 962
  Net tax effect   (552) (552)
  Net effect on attributable earnings   5 208 5 410
         
  Mayoko iron ore project
  The Mayoko iron ore project is located in the RoC and was acquired in 2012 with the acquisition of AKI. The projectis reported within the iron ore operating segment which forms part of the ferrous reportable operating segment.
         
  The concept study on the revised 12 million tonnes Mayoko iron ore project was concluded during June 2014. As a result of the delays in the rail and port agreements as well as higher future project development costs following the outcome of the concept study, a pre-tax impairment loss of R5 803 million (R5 760 million excluding financial assets and trade and other receivables written down), was raised on 30 June 2014 consisting of an impairment of goodwill acquired in the business combination with AKI in 2012 of R1 020 million, impairment ofproperty, plant and equipment of R4 740 million (including the mineral resource of R1 877 million recognised on acquisition of the project and project-related cost capitalised of R1 696 million) as well as financial assets amounting to R43 million written down in terms of IAS 39 Financial instruments: Recognition and Measurement.
         







































































































































































































































































































































































































































































































































































      6 months ended 6 months ended 12 months ended
      30 June 30 June 31 December
      2015 2014 2014
      Reviewed Reviewed Audited
      Rm Rm Rm
           
7. Net financing costs      
  Total finance income 33 43 80
  – interest income 27 33 66
  – finance lease interest income 6 5 9
  – interest income from loans to joint ventures   5 5
  Total finance costs (359) (86) (183)
  – interest expense1 (260) (182) (323)
  – unwinding of discount rate on rehabilitation cost (96) (86) (183)
  – amortisation of transaction costs (5) (5) (10)
  – borrowing costs capitalised2 2 187 333
  Total net financing costs (326) (43) (103)
  1. Refer to note 14 for details on the
movements on interest-bearing borrowings.
     
  2. Borrowing costs capitalisation rate 6,93% 6,56% 6,69%
         
8. Share of income/(loss) of equity accounted investments      
  Associates (17) 1 453 2 339
  Listed investments (713) (339) (628)
  Tronox Limited (713) (339) (628)
  Unlisted investments 696 1 792 2 967
         
  SIOC 633 1 711 2 830
  Tronox SA 3 (13) (38)
  Tronox UK 51 48 98
  Black Mountain 9 46 77
         
  Joint ventures 100 62 176
  Mafube 132 109 267
  SDCT     1
  Cennergi (32) (47) (92)
  Share of income of equity-accounted investments 83 1 515 2 515
           
9. Dividend distribution
  Total dividends paid in 2014 amounted to R2 055 million, made up of a final dividend of R1 126 million that related to the year ended 31 December 2013, which was paid in April 2014, as well as an interim dividend of R929 million, paid in September 2014. A final dividend relating to the 2014 year of 210 cents per share (amounting to R752 million) was paid to shareholders in April 2015.
           
  An interim cash dividend for 2015 of 65 cents per share (2014: 260 cents per share) was approved by the board of directors on 18 August 2015. The dividend is payable on 14 September 2015 to shareholders who will be on the register at 11 September 2015. This interim dividend, amounting to approximately R233 million (2014: R929 million), has not been recognised as a liability in these reviewed condensed group interim financial statements. It will be recognised in shareholders’ equity in the year ended 31 December 2015.
           
  The dividend declared will be subject to a dividend withholding tax of 15% for all shareholders who are not exempt from or do not qualify for a reduced rate of dividend withholding tax. The net local dividend payable to shareholders, subject to dividend withholding tax at a rate of 15% amounts to 55,25 cents per share. The number of ordinary shares in issue at the date of this declaration is 358 115 505 (2014: 358 115 505). Exxaro’s company tax reference number is 9218/098/14/4.
         
    At 30 June At 30 June At 31 December
    2015 2014 2014
    Reviewed Reviewed Audited
  Issued shares as at declaration date (number) 358 115 505 358 115 505 358 115 505
  Ordinary shares (million)      
  – weighted average number of shares 355 355 355
  – diluted weighted average number of shares 356 356 355
         
    At 30 June At 30 June At 31 December
    2015 2014 2014
    Reviewed Reviewed Audited
    Rm Rm Rm
10. Property, plant and equipment      
  Capital expenditure      
  Incurred 1 001 1 578 3 197
  – to maintain operations 703 502 1 460
  – to expand operations 298 1 076 1 737
  Contracted 2 715 2 084 2 887
  – contracted for the group (owner controlled) 1 580 1 251 1 402
  – group’s share of capital commitments of equity-accounted investments 1 135 833 1 485
  Authorised, but not contracted 581 523 2 160
         
11. Investments in associates      
  Listed investments 9 075 9 823 9 686
  Tronox Limited1 9 075 9 823 9 686
  Unlisted investments 9 043 9 005 8 902
  SIOC 5 498 5 583 5 422
  Tronox SA 1 792 1 807 1 786
  Tronox UK 1 388 1 288 1 337
  Black Mountain 365 327 357
  Total carrying value of investments in associates 18 118 18 828 18 588
  1Fair value based on a listed price (Level 1 within the      
  IFRS 13 Fair Value Measurement fair value hierarchy) 9 183 14 559 14 122
  Listed share price (US$ per share) 14,63 26,90 23,88
         

This entry was posted in Latest News. Bookmark the permalink.