15.   SUMMARY EQUITY VALUE

15.1 

Introduction

The following section includes an assessment of the Equity Value of Exxaro, which is based on the sum of the parts approach combining: the valuation of the Material Properties as represented by the sum of Enterprise Values, Valuation of Mineral Rights, Exploration Properties, and Non-LoM Resources and Valuation Adjustments.

In addition and based on the 306 million fully diluted ordinary shares in issue as at 1 January 2006, SRK has derived an Equity Value per share which can be compared to the latest available market price as at 31 December 2005, which was ZAR102.00 for Kumba. The 306 million shares does not take into account the issues of new shares, the pro rata repurchase of shares and the proposed issue of management incentive shares by Exxaro on the effective date of the transaction. Details regarding these share issues are contained in the circular to shareholders.The resulting ratio relating Equity Value to share price is included for presentation purposes only, and no detailed analysis is included as to the rational or appropriateness of such a ratio. Furthermore, SRK notes that the Equity Value as presented is done so in accordance with the Listings Requirements and is not intended to constitute an opinion or recommendation as would normally be expected in terms of a “fair and reasonable” statement.

For purposes of completeness and to demonstrate the effect of the transaction on the various entitities participating in the transaction described in Section 1, SRK has included the individual equity values of the existing Kumba and Eyesizwe assets, and the equity values of the newly formed Exxaro and Kumba Iron Ore entities. Kumba Iron Ore’s CPR will be contained in the pre-listing statement which will be issued to shareholders during September 2006.

In addition, SRK has included the results of Sensitivity analysis which indicates the impact of sales revenue, operating costs and capital expenditure on the Equity Value and the ratio of share price to Equity Value. These in addition to the results of the various Scenarios are included for comparative purposes and should not be regarded as definitive, but rather an indication of the resultant range given various assumptions.