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Exx - Exxaro Resources Limited - Audited Condensed Group Financial Results

Release Date: 22/02/2007 08:14:02      Code(s): EXX
EXX - Exxaro Resources Limited - Audited condensed group financial results      
                          for the year ended 31 December 2006                   
EXXARO RESOURCES LIMITED                                                        
(formerly Kumba Resources Limited)                                              
Incorporated in the Republic of South Africa                                    
(Registration Number:  2000/011076/06)                                          
Share Code:  EXX                                                                
ISIN Number:  ZAE000084992                                                      
("Exxaro" or "the company")                                                     
Audited condensed group financial results for the year ended 31 December 2006   
- Historic empowerment transaction successfully concluded                       
- Earnings not comparable                                                       
- Good operating results                                                        
- Coal production reaches 24 million tonnes                                     
- Strong project pipeline for transformed group                                 
- Options to acquire Namakwa Sands and a 26% interest in Black Mountain/Gamsberg
exercised post December 2006                                                    
CONDENSED GROUP INCOME STATEMENT                                                
                                           Year ended                           
31 December                          
                                           2006          2005                   
                                           Audited       Restated               
CONTINUING OPERATIONS                       Rm            Rm                    
Revenue                                     7,263         5,308                 
Operating expenses                          (6,022)       (4,319)               
Fair value adjustment on unbundling of                                          
subsidiary                                  17,963                              
BEE credential expense and unbundling costs (821)                               
Impairment of property, plant and equipment (784)                               
Net operating profit                        17,599        989                   
Net financing costs                         (307)         (162)                 
Share of income from equity accounted                                           
investments                                 159           7                     
Profit before taxation                      17,451        834                   
Taxation                                    (578)         (323)                 
Profit for the year from continuing                                             
operations                                  16,873        511                   
Profit for the year from discontinued                                           
operations (note 5)                         2,323         2,727                 
Profit for the year                         19,196        3,238                 
Attributable to:                                                                
Equity holders of the parent                19,169        3,177                 
Minority interest                           27            61                    
Net profit                                  19,196        3,238                 
Ordinary shares (million)                                                       
- in issue                                  351           306                   
- weighted average number of shares         313           304                   
- diluted weighted average number of shares 318           311                   
Attributable earnings per share (cents)                                         
- basic (restated for December 2005)        6,124         1,045                 
- diluted (restated for December 2005)      6,028         1,022                 
Attributable earnings per share from                                            
continuing operations (cents)                                                   
- basic (restated for December 2005)        5,382         148                   
- diluted (restated for December 2005)      5,297         145                   
Attributable earnings per share from                                            
discontinued operations (cents)                                                 
- basic (restated for December 2005)        742           897                   
- diluted (restated for December 2005)      731           877                   
Dividend paid per share (cents) in respect  160           90                    
of the previous financial year                                                  
Dividend paid per share (cents) in respect                                      
of the interim period                       180           160                   
Special dividend paid per share (cents) in                                      
respect of the interim period                             220                   
Special dividend paid per share (cents) on                                      
unbundling                                  185                                 
Final dividend paid per share (cents) in                                        
respect of this financial year                            160                   
Reconciliation of headline earnings                                             
Net profit attributable to ordinary                                             
shareholders                                19,169        3,177                 
- Impairment charges                        784           28                    
- Share of associate`s net profit on                                            
disposal of property, plant                                                     
and equipment                               (1)                                 
- Excess of minority interest over cost of                                      
acquisition                                 (36)          (95)                  
- Net deficit on disposal or scrapping of   3             2                     
property, plant and equipment                                                   
- Fair value adjustment prior to unbundling (17,963)                            
- Net profit on disposal of investments     (39)          (1,179)               
- Minority interest on adjustments                        (1)                   
- Taxation effect of adjustments            (219)         428                   
Headline earnings                           1,698         2,360                 
Headline earnings from discontinued         2,328                               
operations                                                1,996                 
Headline earnings from continuing           (630)         364                   
operations                                                                      
Headline earnings per share (cents)                                             
- basic (restated for December 2005)        542           776                   
- diluted (restated for December 2005)      534           759                   
Headline earnings per share from continuing                                     
operations (cents)                                                              
- basic (restated for December 2005)        (201)         120                   
- diluted (restated for December 2005)      (198)         117                   
Headline earnings per share from                                                
discontinued operations (cents)                                                 
- basic (restated for December 2005)        744           657                   
- diluted (restated for December 2005)      732           642                   
CONDENSED GROUP BALANCE SHEET                                                   
                                         At 31 December                         
                                         2006            2005                   
Audited         Restated               
                                         Rm              Rm                     
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment             7,583           8,469                 
Biological assets                         26              28                    
Intangible assets                         69              61                    
Investments in associates and joint                                             
ventures (note 6)                                                               
-unlisted                                384             95                     
Deferred taxation                         748             339                   
Other financial assets (note 6)           693             392                   
9,503           9,384                  
Current assets                                                                  
Inventories                               1,391           1,481                 
Trade and other receivables               1,663           2,066                 
Cash and cash equivalents                 906             1,483                 
                                         3,960           5,030                  
Non-current assets classified as                                                
held for sale                             2               11                    
Total assets                              13,465          14,425                
EQUITY AND LIABILITIES                                                          
Capital and reserves                                                            
Ordinary shareholders` equity             8,142           7,319                 
Minority interest                         27              9                     
Total shareholders` equity                8,169           7,328                 
Non-current liabilities                                                         
Interest-bearing borrowings               1,214           2,210                 
Non-current provisions                    931             727                   
Deferred taxation                         1,116           984                   
                                         3,261           3,921                  
Current liabilities                                                             
Trade and other payables                  1,321           1,468                 
Interest-bearing borrowings               613             911                   
Taxation                                  67              773                   
Current provisions                        30              24                    
Shareholders for dividends                4                                     
                                         2,035           3,176                  
Total equity and liabilities              13,465          14,425                
Net debt (note 9)                         921             1,638                 
Net asset value per share (cents)         2,320           2,392                 
Capital expenditure                                                             
-incurred                                2,010           1,044                  
-contracted                              842             1,635                  
-authorised but not contracted           732             2,182                  
Contingent liabilities                    100             82                    
Operating lease commitments               124             163                   
Operating sublease rentals receivable     10              1                     
Capital expenditure contracted relating                                         
to captive mines                                                                
(2006 Tshikondeni, Arnot and Matla; 2005                                        
Tshikondeni and                                                                 
Thabazimbi), which will be financed by                                          
Mittal Steel                                                                    
(South Africa) and Eskom respectively.    8               6                     
CONDENSED GROUP CASH FLOW STATEMENT                                             
Year ended 31                          
                                         December                               
                                         2006            2005                   
                                         Audited         Restated               
Rm              Rm                     
Cash retained from operations             4,761           3,864                 
- net financing costs                     (278)           (189)                 
- taxation paid                           (1,927)         (821)                 
- dividends paid (note 7)                 (3,396)         (1,447)               
Cash used in investing activities                                               
- capital expenditure                     (2,010)         (1,044)               
- proceeds from disposal of property,                                           
plant and equipment                       170             23                    
- proceeds from disposal of investment    26              1,179                 
- acquistion of subsidiary (note 8)       (1,545)                               
- decrease/(increase) in investment in                                          
subsidiaries                                              (1,174)               
- other                                   308             68                    
Net cash (outflow)/inflow                 (3,891)         459                   
- cash flows from issue of shares         2,199           128                   
- borrowings raised/(repaid)              1,518           (401)                 
Net (decrease)/increase in cash and cash                                        
equivalents                               (174)           186                   
Less cash and cash equivalents of                                               
unbundled subsidiaries                    (403)                                 
Cash and cash equivalents at beginning of                                       
year                                      1,483           1,297                 
Cash and cash equivalents end of year     906             1,483                 
Calculation of movement in net debt:                                            
Net cash (outflow)/inflow                 (3,891)         459                   
- shares issued                           2,199           128                   
- loans from minority shareholders                        2                     
- Share based payments                    (54)                                  
- Increase in net debt on acquisition of                                        
subsidiary                                (120)                                 
- Prior year adjustment, increase in net                                        
debt due to application of IFRIC 4                        (247)                 
- non-cash increase in loans due to joint                 (1)                   
ventures now consolidated                                                       
- non-cash flow movements in net debt                                           
applicable to currency                                                          
translation differences of transactions                                         
denominated in foreign currency           16              (96)                  
- non-cash flow movements in net debt                                           
applicable to currency                                                          
translation differences of net debt items                                       
of foreign entities                       (195)           (13)                  
- Less net debt of unbundled subsidiaries 2,762                                 
Decrease in net debt                      717             232                   
NOTES TO THE GROUP FINANCIAL RESULTS                                            
1.   Basis of preparation                                                       
This condensed report complies with International Accounting Standard 34,       
Interim Financial Reporting, and schedule 4 of the South African Companies Act. 
The financial statements from which these group financial results have been     
derived are prepared on the historical basis excluding financial instruments and
biological assets, which are fair valued, and conform to International Financial
Reporting Standards. The accounting policies adopted are consistent with those  
applied in the annual financial statements for the year ended 31 December 2005  
except for the change noted in note 4. Where applicable the prior year`s figures
have been adjusted.                                                             
Year ended                     
                                                 31 December                    
                                                 2006         2005              
                                                 Audited      Restate           
d                 
                                                 Rm           Rm                
2.Profit before taxation from continuing and                                    
discontinued operations is arrived at after                                     
Depreciation and amortisation of intangible       (813)        (826)            
assets                                                                          
Financing costs                                   (451)        (432)            
Interest received                                 115          150              
Net realised foreign exchange gains/(losses) on:                                
- currency exchange differences                   199          225              
- revaluation of derivative instruments           (278)        (64)             
Net unrealised foreign exchange gains/(losses)                                  
on:                                                                             
- currency exchange differences                   (97)         (76)             
- revaluation of derivative instruments           51           83               
Fair value adjustment on financial assets         84           43               
Fair value adjustment on financial liabilities                 5                
Impairment charges (note 3)                       (784)        (28)             
Excess of minority interest over cost of                                        
acquisition                                       36           95               
Net profit on disposal of investments             39           1,179            
Fair value adjustment on unbundling of            17,963                        
subsidiary                                                                      
Net deficit on disposal of property, plant and                                  
equipment                                         (3)          (2)              
Share based payment: BEE credential expense       (580)                         
Cost of empowerment transaction, unbundling,                                    
integration and branding                          (241)                         
3.Impairment charges and reversals                                              
Impairment of property, plant and equipment1       (784)      (3)               
Reversal of impairment of other fixed assets                  2                 
Impairment of intangible assets                               (20)              
Impairment of investments                                     (7)               
                                                  (784)      (28)               
Taxation effect                                    227        -                 
                                                  (557)      (28)               
1 Impaired to value in use based on a 8,53%                                     
discount rate.                                                                  
4.   Accounting for arrangements that contain a lease                           
In terms of IFRIC 4 (Determining whether an                                     
arrangement contains a lease) and IAS 17 (Leases),                              
arrangements that convey the right to use an                                    
asset, are evaluated for recognition,                                           
classification as a finance or operating lease,                                 
and measured, and accounted for accordingly.                                    
The result is the recognition of a number of                                    
finance leases where Exxaro is either the                                       
lessee or the lessor.                                                           
Income statement impact                                                         
(Decrease) in revenue                              (89)       (81)              
Decrease in depreciation                           79         72                
Decrease in operating expenses                     47         42                
(Increase) in financing cost                       (38)       (51)              
Decrease in taxation                                          5                 
(Decrease) in profit for the period                (1)        (13)              
Impact on attributable earnings per share (cents)  (0)        (4)               
Impact on diluted attributable earnings per share  (0)        (4)               
(cents)                                                                         
Balance sheet impact                                                            
(Decrease) in property, plant and equipment        (363)      (357)             
Increase in deferred tax asset                     23                           
(Decrease) in retained earnings                    (57)       (58)              
Increase in non-current interest bearing                                        
borrowings -                                                                    
Finance lease liability                            246        247               
(Decrease) in other long-term payables:                                         
- Mittal Steel (South Africa) captive mines        (520)      (604)             
(Decrease) in deferred tax liabilities                        (22)              
(Decrease) in current interest-bearing borrowings  (9)                          
Increase in trade and other payables                          80                
The impact of the change on the 31 December 2004 financial statements is a      
decrease in property, plant and equipment of R349 million, an increase in       
deferred tax assets of R18 million, a decrease in retained earnings of R45      
million, an increase in finance lease liabilities of R212 million, a decrease in
other long-term payables of R607 million and an increase in trade and other     
payables of R109 million.                                                       
5.   Discontinued operations                                                    
Exxaro unbundled its iron ore business effective 1 November                     
2006 as part of an empowerment transaction and now holds                        
only a 20.62% interest in Sishen Iron Ore Company (Pty) Limited                 
which is equity accounted.                                                      
Revenue                                           6,483     6,573               
Operating expenses(1)                             (3,385)   (2,642)             
Net operating profit                              3,098     3,931               
Net financing costs                               (29)      (120)               
Profit before taxation                            3,069     3,811               
Taxation                                          (746)     (1,084)             
Profit for the period from discontinued           2,323     2,727               
operations                                                                      
Cash flow attributable to operating activities    982       1,205               
Cash flow attributable to investing activities    (7,025)   807                 
Cash flow attributable to financing activities    5,853     (2,206)             
Cash flow attributable to discontinued operations (190)     (194)               
(1) 2005 includes pre-tax settlement proceeds of R1 163 million                 
from the disposal of the interest in the Hope Downs project.                    
6.Investments                                                                   
Unlisted investments in associates - directors`          4,812    130           
valuation                                                                       
Listed investments included in other financial assets -                         
market value                                             92       60            
Unlisted investments included in other financial assets                         
-                                                                               
directors` valuation                                     93       35            
                                     Year ended 31                              
December                                   
                                     2006                   2005                
                                     Audited                Restated            
                                     Rm                     Rm                  
7.Dividends paid:                                                               
- Cash dividends                      1,628                  1,430              
- Share repurchase                    1,763                                     
- Paid to minorities                  5                      17                 
3,396                  1,447               
8.Business combination                                                          
On 1 November 2006, the group acquired 100% of the issued                       
share capital of Eyesizwe Coal (Pty) Limited, which is included in              
the coal business segment results. The acquired business                        
contributed revenues of R329 million and operating profits of                   
R7 million to the group for the period from 1 November 2006                     
to 31 December 2006. Details of assets acquired are as follows:                 
Cash paid on acquisition                                  1,607                 
Fair value of assets acquired                             (1,607)               
The assets and liabilities arising from the acquisition                         
are as follows:                                                                 
- cash and cash equivalents                               62                    
- property, plant and equipment                           2,026                 
- financial assets                                        34                    
- investments                                             42                    
- inventories                                             53                    
- trade and other receivables                             243                   
- trade and other payables                                (222)                 
- interest-bearing borrowings                             (120)                 
- non-current provisions                                  (68)                  
- Receiver of revenue                                     (13)                  
- deferred taxation                                       (430)                 
Fair value of net assets                                  1,607                 
Total purchase consideration                              (1,607)               
- Less: cash and cash equivalents acquired                62                    
Cash outflow on acquisition of subsidiary                 (1,545)               
9. Net debt                                                                     
Net debt is calculated as being interest-bearing borrowings less cash and cash  
equivalents.                                                                    
10.   Related party transactions                                                
During the period the company and its subsidiaries, in the ordinary course of   
business, entered into various sale and purchase transactions with associates   
and joint ventures. These transactions were subject to terms that are no less   
favourable than those arranged with third parties.                              
11.  JSE Limited requirements                                                   
The announcement has been prepared in accordance with the listings requirements 
of JSE Limited.                                                                 
12.  Corporate Governance                                                       
The Group complies in all material respects with the Code of Corporate Practice 
and Conduct published in the King II Report on Corporate Governance.            
13.  Audit opinion                                                              
The auditors, Deloitte & Touche, have issued their opinion on the group`s       
financial statements for the year ended 31 December 2006. The audit was         
conducted in accordance with International Standards on Auditing. They have     
issued an unmodified audit opinion. A copy of their audit report is available   
for inspection at the company`s registered office. These summarised financial   
statements have been derived from the group financial statements and are        
consistent in all material respects, with the group annual financial statements.
UNAUDITED PHYSICAL INFORMATION (`000 TONNES)                                    
                     12-months       6-months ended                             
                     ended                                                      
31 December     31 December                                
                     2006            2005            2006    2005               
Iron ore(1)                                                                     
Production            25,709          30,987          10,379  15,476            
Sales                                                                           
- Exports             17,511          22,113          6,304   11,510            
- Domestic            6,795           9,172           2,960   4,360             
Total                 24,306          31,285          9,264   15,870            
Coal(2)                                                                         
Production                                                                      
- Power station       18,061          14,573          10,511  7,243             
- Coking              2,496           2,273           1,387   1,098             
- Other               3,365           2,993           1,889   1,552             
Total                 23,922          19,839          13,787  9,893             
Sales                                                                           
- Eskom               18,253          14,703          10,796  7,268             
- Other domestic      4,465           4,174           2,397   2,164             
- Export              1,569           1,109           1,014   500               
Total                 24,287          19,986          14,207  9,932             
Mineral Sands - RSA                                                             
Production                                                                      
- Ilmenite            319             356             159     202               
- Zircon              50              47              24      23                
- Rutile              25              23              13      11                
- Pig iron            75              89              34      52                
- Scrap pig iron      10              8               5       3                 
- Chloride slag       134             134             62      79                
- Sulphate slag       36              30              18      18                
Sales                                                                           
- Ilmenite            50              60              20      30                
- Zircon              48              47              25      21                
- Rutile              31              18              22      9                 
- Pig iron            60              79              31      50                
- Scrap pig iron      9               11              4       5                 
- Chloride slag       104             150             40      85                
- Sulphate slag       30              41              20      20                
Mineral Sands -                                                                 
Australia(3)                                                                    
Production                                                                      
- Ilmenite            227             220             111     116               
- Zircon              36              35              18      18                
- Rutile              18              16              9       8                 
- Synthetic rutile    98              111             44      56                
- Leucoxene           14              12              7       7                 
- Pigment             54              53              27      27                
Sales                                                                           
- Ilmenite            30              13              30      3                 
- Zircon              32              36              16      19                
- Rutile              18              18              10      10                
- Synthetic rutile    27              59              8       33                
- Leucoxene           10              14              6       10                
Base metals                                                                     
Production                                                                      
- Zinc concentrate    104             126             49      62                
- Zinc metal          106             117             50      58                
- Zincor             90              102             42      50                 
- Chifeng(4)         16              15              8       8                  
- Lead concentrate    21              25              8       12                
Zinc metal sales                                                                
- Domestic            91              92              46      46                
- Export              24              27              9       13                
Total                 115             119             55      59                
Lead concentrate                                                                
sales                                                                           
- Export              32              35              20      23                
(1)2006 only includes physical information for 10 months.                       
(2)  2006 includes physical information of the former Eyesizwe Coal mines for   
November and December 2006 only.                                                
(3)  The production and sales tonnes reflect Exxaro Sands Australia`s 50%       
interest in the Tiwest joint venture with Tronox Inc., Western Australia.       
(4)  The effective interest in the physical information for the Chifeng (Hongye)
refinery has been disclosed.                                                    
COMMENTS                                                                        
Audited results not comparable                                                  
The group`s audited financial results and unaudited physical information for the
financial year ended 31 December 2006 are not comparable to the corresponding   
results and physical information for the previous financial year. This is due to
the successful conclusion of the empowerment transaction in the fourth quarter  
of 2006 which resulted in the unbundling and separate listing of Kumba Iron Ore 
Limited (KIO) and the revised listing of Exxaro on 27 November 2006.            
The audited financial results for the 12-month period to 31 December 2006       
include Sishen Iron Ore Company (Pty) Ltd (SIOC) fully consolidated for 10      
months to 31 October 2006 and equity accounted for the remaining two months to  
31 December 2006 at an effective 20,62% holding. Eyesizwe Coal (Pty) Ltd        
(Eyesizwe Coal) has been fully consolidated only for the two months ended 31    
December 2006.                                                                  
All non-recurring accounting entries and expenditure necessitated by the        
implementation of the empowerment transaction which were comprehensively        
disclosed in the circular to shareholders dated 9 October 2006 are shown        
separately in the segment results.                                              
Unaudited comparative supplementary financial information is provided below for 
information purposes only, on the assumption that the empowerment transaction   
had been implemented with effect from 1 January 2005.                           
Operating results                                                               
The financial results for the financial year under review benefited from a      
substantial recovery in the zinc metal price and higher iron ore, coal and      
zircon prices, partially offset by above inflation cost increases in labour,    
petroleum and energy related consumables.                                       
Revenue increased by 16% to R13,7 billion while net operating profit, excluding 
the impact of the impairment of the local mineral sands` assets and the         
accounting entries relating to the empowerment transaction in 2006 as well as   
the Hope Downs settlement in 2005, increased by R598 million to R4 339 million. 
An average exchange rate of R6,76 to the US dollar was realised compared with   
R6,36 for the corresponding period in 2005.                                     
Earnings                                                                        
Attributable earnings, inclusive of Exxaro`s 20,62% interest in the post-tax    
profits of SIOC for November and December 2006 but excluding the mineral sands` 
asset impairment and non-recurring accounting entries, are R2 831 million or 904
cents per share.                                                                
The statutory tax rate of 29% reduces to an effective tax rate of 6% as a result
of the non-recurring accounting entries relating to the pre-unbundling fair     
value adjustment of KIO which is not taxable and the BEE credential expense and 
unbundling and integration costs which are not tax deductible.                  
Headline earnings include all the empowerment transaction related expenses      
(which are not allowed to be excluded), but exclude the unbundled interest in   
KIO at fair value. A comparison of headline earnings for the year under review  
of R1 698 million or 542 cents per share to the corresponding period is not     
meaningful.                                                                     
Cash flow                                                                       
Cash retained from operations of R4 761 million was mainly utilised to fund     
taxation of R1 927 million, dividends of R3 396 million, capital expenditure of 
R2 010 million and the acquisition of Eyesizwe Coal at a net cash outflow of R1 
545 million.                                                                    
Cash outflows in respect of dividends and taxation were further increased by the
repurchase of 38 331 012 shares and the STC on such repurchase, collectively    
amounting to R1 983 million.                                                    
R1 321 million of the capital expenditure was invested in new capacity.         
After also accounting for the inflow of R2 199 million from the issue of 65 334 
843 shares to Exxaro`s black controlled holding company, Main Street 333 (Pty)  
Ltd, net debt of R1 481 million at 30 June 2006 decreased to R921 million at a  
net debt to equity ratio of 11,3%. Net debt will increase by the anticipated    
cash outflow in 2007 of R2 353 million, subject to the disclosed price          
adjustments, as a result of the exercise of the options to acquire Namakwa Sands
and a 26% interest in Black Mountain/Gamsberg for which term funding facilities 
are in place.                                                                   
Safety, health and environment                                                  
Regrettably, and despite excellent safety achievements at several mines, six    
fatalities were suffered during the past year of which three were in a single   
accident at the Glen Douglas mine, two at the Tshikondeni mine and one at the   
group`s training facility in Lephalale. A further fatality occurred at the      
Grootegeluk mine at the end of January 2007. The group remains committed to     
achieving a working environment that is fatality and injury free. Its ongoing   
safety awareness and preventative programmes have been strengthened by further  
initiatives to enhance hazard identification. The average lost time injury      
frequency rate per two hundred thousand man-hours worked (LTIFR) for the 12-    
month period improved to 0,42 from the previous year`s 0,52. A target LTIFR of  
0,30 has been set for 2007.                                                     
The group has an integrated, enterprise-wide risk management programme in place 
which evaluates environmental risk management and enhances the company`s        
environmental performance. With the inclusion of the business units of the      
former Eyesizwe Coal, 71% of the business units within the group have obtained  
international health and safety certification (OHSAS 18001) and environmental   
certification (ISO 14001). The group has set a target of 100% compliance by     
December 2007.                                                                  
Programmes for HIV/AIDS voluntary counselling and testing (VCT) have been       
introduced at all of the group`s South African operations. This includes        
awareness, training of peer educators, VCT and a disease management programme   
which to date has a greater than 80% retention rate. The extension of anti-     
retroviral programmes to all of the group`s businesses is progressing well, with
the majority of employees who tested HIV-positive during the year, now enrolled 
on the disease management programme.                                            
Segment results and adjusted earnings                                           
                                           12-months ended                      
                                           31 December                          
2006             2005                
                                           Audited          Restated(7)         
                                           Rm               Rm                  
Revenue                                                                         
Iron Ore(1)                                 6 483            6 573              
Coal                                        2 882            2 187              
- Kumba Coal                                2 074            2 187              
- Exxaro Coal(2)                            808                                 
Mineral Sands                               1 859            1 927              
- Exxaro KZN Sands                          817              839                
- Exxaro Australia Sands                    1 042            1 088              
Base Metals                                 2 379            1 070              
Industrial Minerals                         122              107                
Other                                       21               17                 
Total                                       13 746           11 881             
Net operating profit                                                            
Iron Ore(1)                                 3 098            2 767              
Coal                                        599              554                
- Kumba Coal                                535              554                
- Exxaro Coal(2)                            64                                  
Mineral Sands                               (698)            259                
- Exxaro KZN Sands                          (842)            (47)               
- Exxaro Australia Sands                    144              306                
Base Metals                                 609              69                 
Industrial Minerals                         26               26                 
Other                                       17 063           1 245              
- Fair value adjustment on unbundling(3)    17 963                              
- Share based payment: BEE credential                                           
expenses(4)                                 (580)                               
- Hope Downs(5)                                              1 179              
- Other(6)                                  (320)            66                 
Total                                       20 697           4 920              
Net operating profit                        20 697           4 920              
Non recurring entries                                                           
- Fair value adjustment on unbundling(3)    (17 963)                            
- Hope Downs(5)                                              (1 179)            
- Impairment                                784                                 
- BEE credential expense(4)                 580                                 
- Empowerment and unbundling costs          241                                 
Adjusted net operating profit               4 339            3 741              
Net financing costs                         (336)            (282)              
Equity accounted income                     159              7                  
Taxation                                    (1 331)          (981)              
- As reported                               (1 324)          (1 407)            
- On Hope Downs proceeds                                     426                
- On Impairment                             (227)                               
- On share repurchase                       220                                 
Adjusted attributable earnings              2 831            2 485              
(1)  100% of SIOC consolidated for 10 months to 31 October 2006 and for 12      
months to 31 December 2005.                                                     
(2)  Exxaro Coal represents the former Kumba Coal and Eyesizwe Coal from 1      
November 2006.                                                                  
(3)  The fair value of the investment in Kumba Iron Ore that was unbundled to   
shareholders as a dividend in specie.                                           
(4)  The discount at which shares were issued as part of the empowerment        
transaction.                                                                    
(5)  A$ 236,5 million option- and settlement payment realised on the disposal of
Kumba Resource`s interest in the Hope Downs project.                            
(6)  Includes the cost of the empowerment transaction as disclosed in the       
circular to shareholders dated 9 October 2006, branding, information management 
infrastructure and integration expenditure, shared-based expenses on the        
collapse of the previous management incentive schemes, and a finance charges    
provision raised in respect of an earlier year finance facility that has since  
been redeemed.                                                                  
(7)Restated as set out in note 4 to the group financial statements.             
UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION                                   
The unaudited supplementary financial information provides, for information     
purposes only, the financial results of Exxaro had the empowerment transaction  
been implemented effective 1 January 2005, but excluding the acquisition of     
Namakwa Sands and a 26% interest in Black Mountain/Gamsberg. The illustrative   
financial results are therefore compiled on the assumption that Eyesizwe Coal   
had been acquired and fully consolidated from 1 January 2005, Exxaro had equity 
accounted its 20,62% interest in SIOC from the same date, and all non-recurring 
accounting entries associated with the empowerment transaction are excluded. The
option and settlement proceeds for the interest in the Hope Downs project       
received in 2005, and the impairment of the carrying value of the mineral sands`
assets in 2006, have also been excluded.                                        
                                                      2006      2005            
                                                      Rm        Rm              
REVENUE                                                8 814     7 248          
Operating expenses                                     (7 553)   (6 254)        
Net operating profit                                   1 261     994            
Net financing costs                                    (315)     (173)          
Income from equity accounted investments               638       417            
Profit before taxation                                 1 584     1 238          
Taxation                                               (595)     (321)          
Attributable earnings                                  989       917            
Net profit attributable to equity holders of the       962       856            
parent                                                                          
Impairment charges                                               28             
Excess of minority interest over cost of acquisition   (36)      (95)           
Net (surplus) on disposal/scrapping of property, plant                          
and equipment                                          (3)       (2)            
Net surplus on disposal of investment                  (39)                     
Minority interest on adjustments                                 (1)            
Share of associates exceptional items                  (1)                      
Taxation effect of adjustments                         10        (6)            
Headline earnings                                      893       780            
OPERATIONS                                                                      
Iron Ore                                                                        
In the 10-month period to 31 October 2006, production was negatively impacted by
inclement weather in the first quarter while exports were adversely affected by 
the breakdown of one of the two ship loaders at Saldanha Bay in September 2006. 
The commodity business benefited from the average international iron ore price  
increase of 19% effective from 1 April 2006.                                    
The performance of iron ore has been reported on by Kumba Iron Ore Limited in   
the release of its results for the period ended 31 December 2006.               
Coal                                                                            
Coal production was substantially higher due to increased output at the former  
Kumba Coal mines and the acquisition of the former Eyesizwe Coal mines.         
Production of coking coal increased by 222kt on the comparative 2005 period.    
Higher output from the commissioning of the new coal beneficiation module (GG6) 
at the Grootegeluk mine during August 2006 was partially offset by lower        
production at Tshikondeni mine caused by unfavourable geological conditions.    
Increased throughput at both the Grootegeluk and Leeuwpan mines and an          
additional 277kt from the former Eyesizwe Coal mines during November and        
December 2006, increased thermal coal production by 12% or 372kt.               
The continued higher demand from Eskom, the ramp-up of the jig plant at Leeuwpan
mine and the acquisition of Eyesizwe Coal, contributed to power station coal    
production increasing by 24% to 18 061kt for the year under review.             
The higher demand from Eskom and metallurgical coal at stronger than anticipated
prices, combined with more favourable export agreements and the contribution    
from the former Eyesizwe mines, resulted in an increase of 32% in revenue to    
almost R2,9 billion.                                                            
Net operating profit, in turn, increased R45 million to R599 million as the     
higher turnover was offset by increases in labour and petroleum costs. The cost-
based arrangement of the former Eyesizwe mines with Eskom also impacted on the  
operating margin of the overall commodity business.                             
Exxaro KZN Sands                                                                
The Furnace 1 shut to effect modifications and improvements was successfully    
completed in the second half of 2006. This, however, negatively impacted on pig 
iron production and resultant sales. Successful improvement initiatives resulted
in marginally higher production of zircon, rutile and slag.                     
Despite the weaker currency, higher rutile sales and stronger zircon prices,    
revenue and net operating profit, excluding the impairment, were R22 million and
R11 million lower respectively than for the corresponding period in 2005. This  
was due to the Furnace 1 shut, lower slag and pig iron sales.                   
As reported in the announcement of the 2006 interim results of the group, the   
combined impact of a stronger currency outlook over the life of the assets and  
projected surplus of high-grade titanium feedstock on world markets, led to a   
pre-tax reduction of R784 million in the carrying value of the assets.          
Exxaro Australia Sands                                                          
Business improvement initiatives led to increased mineral production. The       
unplanned shut of the synthetic rutile (SR) kiln at the Chandala plant in July  
2006 to enable inspection and repairs to refractories resulted in 13 kt lower SR
production and a net operating opportunity loss of R28 million. The shut was,   
however, also utilised to carry out maintenance that was only planned for in    
2007 with the result that sales impacted by the 2006 shut will effectively      
realise in 2007.                                                                
Although revenue was marginally lower, net operating profit decreased by R162   
million to R144 million due to the SR kiln shut, maturity in 2005 of the        
favourable hedging programme and substantial increases in the cost of energy    
related consumables and labour.                                                 
Base Metals                                                                     
Zinc concentrate production was significantly lower as a result of accelerated  
exploration development, heavy rainfall in southern Namibia in the first 6      
months which negatively affected transport from Rosh Pinah mine, and industrial 
action by employees in November 2006. Zinc metal production at the Zincor       
refinery was 12kt lower due to lower quality zinc concentrates which caused     
plant instability, the planned rebuild of a roaster and acid plant stoppages. An
additional roaster shut and rebuild, which forms part of Zincor`s scheduled     
maintenance programme, is planned for the third quarter of 2007.                
Revenue however increased by 122% to R2 379 million and net operating profit by 
R540 million to R609 million at an operating margin of 26%. This was primarily  
due to an increase of 137% in the average realised zinc price of US$3 277 per   
tonne for the period compared with the previous period in 2005.                 
In line with production and sales growth and the stronger zinc metal price,     
Exxaro`s equity accounted income from its investment in the Chifeng refinery in 
China increased from R12 million to R40 million.                                
Negotiations with Namibian groupings to acquire a 49,9% interest in Rosh Pinah  
mine are proceeding. Exxaro will retain management and operational control.     
Industrial Minerals                                                             
Physical volumes and the financial contribution from both the dolomite and      
ferrosilicon components of this business segment, were in line with that of the 
previous financial year.                                                        
GROWTH OPPORTUNITIES                                                            
Coal                                                                            
Commissioning of the R323 million new GG6 plant at Grootegeluk mine started in  
August 2006 with full production expected by mid-2007. The plant is treating and
beneficiating coal previously sent untreated to the adjacent Matimba power      
station and will at full production supply 730ktpa of semi-soft coking coal to  
the refurbished coking plants of Mittal Steel at its Newcastle facility.        
Construction, at an estimated cost of R245 million, of the 1Mtpa export-focused 
Inyanda mine near Witbank to produce high quality thermal coal has now commenced
after new order mining rights were awarded in November 2006 and the approval of 
the Richards Bay Coal Terminal (RBCT) expansion earlier in the year. Letters of 
intent for offtake for the period April 2008 to June 2009, prior to the         
commissioning of RBCT Phase V, have also been received.                         
The RBCT Phase V expansion in which Exxaro is a 12,5% shareholder, will provide 
Exxaro Coal with a 2Mtpa export allocation in addition to the 1.1Mtpa available 
from Eyesizwe Coal`s RBCT shareholding. This allocation will be utilised by     
production from the new Inyanda mine as well as from expanded output at Exxaro`s
Mpumalanga operations and its Grootegeluk mine.                                 
Construction of a Sintel Char facility to produce char for the ferroalloy       
industry from the Grootegeluk mine, commenced in August 2006. Production from   
this plant will start at 80ktpa and is expected to ramp up to 160ktpa by 2008.  
The capital estimate for the project is R234 million.                           
A feasibility study to investigate the viability of a market coke plant is      
expected to be completed in the first half of 2007. If viable, the plant will   
produce high quality market coke from semi soft coking coal produced at         
Grootegeluk mine.                                                               
A technical feasibility study to potentially supply 7,3Mtpa of power station    
coal to Eskom for a new 2100 MW power station consisting of three generating    
units, adjacent to the Matimba power station, was completed in June 2006.       
Commercial agreements are being negotiated and if approved by Exxaro and Eskom, 
construction could commence in 2008 with production from 2010. A feasibility    
study for coal supply to an additional three generating units is in progress and
will be completed by April 2007.                                                
Exxaro and Anglo Coal Australia concluded a joint venture agreement to undertake
exploration and evaluate the coking coal resource on the adjacent properties of 
Moranbah South and Grosvenor South in Queensland, Australia. Exploration is     
progressing according to plan and a pre-feasibility study for an initial phase  
underground mine is expected to be completed by year-end.                       
The results of the recent drilling programme at Mmamabula Central in Botswana,  
which is a joint venture between Exxaro Coal and Magaleng, have indicated       
positive results. Further geological drilling and modelling will continue during
2007 with a feasibility study commencing in 2008.                               
Construction of the Mafube expansion project in which Exxaro is a 50:50 joint   
venture partner with Anglo Coal is progressing well, with first product from    
this 3Mtpa export mine expected in October 2007.                                
A feasibility study for the development of the Belfast underground and open pit 
mine to supply between 2.5Mtpa and 4.5Mtpa of coal to both Eskom and the export 
market has commenced and will be completed during 2007.                         
Converted mining rights for the Eerstelingsfontein reserves near Belfast have   
been obtained and an implementation plan to commence mining in this area has    
been developed to supply Eskom with 1Mtpa of power station coal.                
Mineral Sands                                                                   
The Exxaro board has approved the construction of the Fairbreeze mine, south of 
Exxaro KZN Sands` existing Hillendale mine in KwaZulu-Natal, subject to the     
obtaining of a new order mining right for the Fairbreeze C Extension area and   
the applicable environmental authorisations. Production is planned to commence  
in 2008.                                                                        
Exploration work has confirmed the presence of a large low grade deposit on the 
Port Durnford property located to the immediate south west of Exxaro KZN Sands` 
Hillendale mine. The deposit has the potential to supply the Exxaro`s furnaces  
for more than 25 years. The Port Durnford project is a 51%:49% joint venture    
between Exxaro Sands and Imbiza Resources.                                      
Exxaro Australia Sands acquired the Dongara project in March 2003 as part of its
takeover of Magnetic Minerals. Located in Western Australia, the 20Mt reserve   
containing 10% heavy minerals will provide supplementary feedstock for Tiwest`s 
mineral separation plant and synthetic rutile facility. Tronox acquired 50% of  
the project in 2006 and it became part of the Tiwest joint venture with Exxaro  
Australia Sands. A bankable feasibility study is being conducted and if viable, 
production is expected to start at the end of 2009.                             
The group together with its joint venture partner, Tronox has announced plans to
increase annual production capacity, subject to board approval, at the Tiwest   
Joint Venture (Tiwest) titanium dioxide pigment plant in Kwinana, Western       
Australia.                                                                      
The Kwinana plant, with a current capacity of 110ktpa, produces chloride process
titanium dioxide (TiO2) pigment. The brownfield expansion will increase capacity
by 40ktpa to 50ktpa. It is estimated that the expansion will cost between US$35 
million to US$45 million. The additional capacity is expected to come on line in
2009.                                                                           
Drilling on the Ranobe and Monombo-Marombe exploration areas comprising the     
Toliara Sands project in south-western Madagascar is indicating resources       
capable of supplying long-term ilmenite feedstock to the Exxaro KZN Sands       
furnace complex. It is envisaged that the feasibility study will be completed in
2007 after which a development decision will be made.                           
Base Metals                                                                     
The expansion project for the Chifeng smelter to increase capacity from 50ktpa  
to 110ktpa is on track to be commissioned around mid 2007. Exxaro is            
participating in the expansion by converting 22% of its 60% shareholding in the 
Phase 2 company to 25% in the new Phase 3 company which will result in an       
effective 22% interest in the expanded operation.                               
Exxaro entered into a 50:50 joint venture agreement with Zincongo, a Congolese  
subsidiary of First Quantum Limited, to develop the Kipushi project during 2002.
Following an invitation in August 2006 by Gecamines of the Democratic Republic  
of the Congo (DRC) for international tenders in connection with the Kipushi zinc
mine near Lubumbashi in the DRC, Zincongo initiated emergency proceedings       
against Gecamines before the Belgium Courts on the grounds that the tender      
invitation is in breach of the existing exclusivity contractual arrangements    
between Gecamines and Zincongo. The Belgium courts are expected to announce its 
ruling during the first quarter of 2007.                                        
In December 2006, Exxaro also informed Gecamines that it will lodge a request   
for ICC arbitration, asking for enforcement of the agreements concluded between 
the companies regarding the rights to develop the Kamoto copper/cobalt project  
at Kolwezi in the DRC.                                                          
ALLOYSTREAMTM                                                                   
The commercialisation of AlloyStream technology, which allows for improved      
beneficiation of manganese ore into ferromanganese is advancing. A joint venture
agreement, signed between Samancor Manganese and Exxaro in March 2006, provides 
for the cooperation which could result in a facility producing 200ktpa of high  
carbon ferromanganese utilising the technology, if proved viable by feasibility 
studies. A development decision on the first commercial furnace of this project 
is expected towards the end of 2007, with production start-up anticipated to    
commence by the end of 2009.                                                    
A study to apply the technology to the production of ferronickel will be        
initiated in 2007.                                                              
ACQUISITION OF NAMAKWA SANDS AND INTEREST IN BLACK MOUNTAIN/GAMSBERG.           
On 19 January 2007 Exxaro announced that, pursuant to the empowerment           
transaction, it had exercised the options to acquire the Namakwa Sands mineral  
sands operation and a 26% interest in a company to be formed to hold the Black  
Mountain lead-zinc mine and the Gamsberg zinc project.                          
The acquisitions are subject to shareholders` approval and suspensive conditions
pertaining to, amongst others, regulatory approvals and the conversion of mining
and prospecting rights to new order rights. It is expected that all suspensive  
conditions will be satisfied in the second half of 2007.                        
CONVERSION OF MINERAL RIGHTS                                                    
Applications for conversion of the group`s mineral rights into new order rights,
audited by an independent advisor, have been submitted to the appropriate       
regional offices of the Department of Minerals and Energy for consideration.    
OUTLOOK                                                                         
The group is well positioned to benefit from the continued strong commodity     
markets and a currency at weaker levels.                                        
Buoyant demand for coal at favourable prices and a zinc price remaining high,   
should have a positive impact on the operating results for these commodities. A 
surplus in the supply of high-grade titanium feedstock will continue to affect  
the results of the mineral sands operations while zircon, which remains in short
supply, and stable offtake of pigment from Exxaro Sands, Australia, will make a 
positive contribution.                                                          
DIVIDEND                                                                        
A special dividend of 185 cents per share was declared and paid in November 2006
on the unbundling and separate listing of Kumba Iron Ore and the revised listing
of Exxaro Resources.                                                            
The Exxaro Board will consider the declaration in each financial year of an     
interim and final dividend in line with its intention to progress to the        
distribution of 50% of Exxaro`s attributable earnings after making provision for
future commitments, working capital requirements and available cash.            
An interim dividend will accordingly be considered by the Board at the time of  
approval of the interim results for the period 1 January to 30 June 2007.       
On behalf of the Board                                                          
Dr CJ Fauconnier              DJ van Staden                                     
(Chief Executive Officer)     (Chief Financial Officer)                         
20 February 2007                                                                
Registered Office             Transfer Secretaries                              
Exxaro Resources Limited      Computershare Investor                            
Roger Dyason Road             Services 2004 (Pty) Limited                       
Pretoria West, 0002           Ground Floor, 70 Marshall Street                  
0002                          Johannesburg, 2001                                
Tel: +27 12 307 5000     PO Box 61051                                           
Fax: +27 12 307 4080     Marshalltown, 2107                                     
Directors: Dr CJ Fauconnier (Chief Executive Officer), PM Baum,                 
JJ Geldenhuys, U Khumalo, MJ Kilbride*, Dr D Konar, VZ Mntambo,                 
RP Mohring, PKV Ncetezo, SA Nkosi*, N Nyembezi-Heita, N Sowazi,                 
DJ van Staden*, DR Zihlangu *Executive                                          
Company Secretary: MS Viljoen Corporate Affairs and Investor Relations: Trevor  
Arran (+27 12 307 3292)                                                         
GROUP STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2006        
                             Non-distributable                                  
                             reserves                                           
Attribu-                                               
                         table                                                  
                         reserves                                               
                         of equity                                              
Foreign     Finan-                       
                                                   cial                         
        Share     Share  Accounted                 Instru-                      
                                       Currency    ments   Equity-   Insu-      
Capital   Premiu Investments   Translati   Revalua settled   rance      
                  m                    on          tion    reserve   reserve    
        Rm        Rm     Rm            Rm          Rm      Rm        Rm         
OPENING                                                                         
BALANCE  3         2,809  20            (141)       48      34                  
AT 31                                                                           
DECEMBER                                                                        
2004                                                                            
Prior                                                                           
year                                                                            
adjustme                                                                        
nts:                                                                            
Recog-                                                                          
nition                                                                          
of                                                                              
finance                                                                         
leases                                                                          
in terms                                                                        
of IFRIC                                                                        
4                                                                               
-trans-                                                                         
fer of                                                                          
attri-                                                                          
butable                   (20)                                                  
reser-                                                                          
ves of                                                                          
equity                                                                          
accoun-                                                                         
ted                                                                             
invest-                                                                         
ments                                                                           
-nega-                                                                          
tive                                                                            
good-                                                                           
will                                                                            
adjust-                                                                         
ment                                                                            
-decom-                                                                         
missio-                                                                         
ning                                                                            
asset                                                                           
resta-                                                                          
ted                                                                             
Resta-   3         2,809                (141)       48      34                  
ted                                                                             
opening                                                                         
balance                                                                         
Net                                                                             
gains/                                  112         (53)    38                  
(losses)                                                                        
not                                                                             
recog-                                                                          
nised in                                                                        
income                                                                          
state-                                                                          
ment                                                                            
Curren-                                                                         
cy trans-                               153         3                           
lation                                                                          
diffe-                                                                          
rences                                                                          
Mino-                                                                           
rity                                                                            
share of                                                                        
reserve                                                                         
move-                                                                           
ments                                                                           
Share-                                                                          
based                                                       38                  
pay-                                                                            
ments                                                                           
move-                                                                           
ment                                                                            
Finan-                                                                          
cial                                                                            
instru-                                                                         
ments                                                                           
fair                                                                            
value                                                                           
move-                                                                           
ments                                                                           
recog-                                                                          
nised in                                                                        
equity                                                                          
-recog-                                                                         
nised in                                            (8)                         
current                                                                         
year                                                                            
income                                                                          
-recog-                                             (95)                        
nised in                                                                        
equity                                                                          
-fair                                               2                           
value                                                                           
adjust-                                                                         
ment                                                                            
Defer-                                  (41)        45                          
red taxa-                                                                       
tion                                                                            
Net                                                                             
profit                                                                          
Divi-                                                                           
dends                                                                           
paid                                                                            
Issue of           132                                                          
share                                                                           
capital                                                                         
Move-                                                                           
ment in                                                                         
shares                                                                          
issued                                                                          
to                                                                              
Manage-            (4)                                      16                  
ment                                                                            
Share                                                                           
Trust                                                                           
Mino-                                                                           
rity                                                                            
share-                                                                          
buy out                                                                         
BALANCE  3         2,937                (29)        (5)     88                  
AT 31                                                                           
DECEMBER                                                                        
2005                                                                            
Net                                     433         31      714                 
gains/(l                                                                        
osses)                                                                          
not                                                                             
recog-                                                                          
nised in                                                                        
income                                                                          
statemen                                                                        
t                                                                               
Curren-                                 448         1                           
cy trans-                                                                       
lation                                                                          
diffe-                                                                          
rences                                                                          
Share of                                6           (1)     3                   
reserve                                                                         
move-                                                                           
ments of                                                                        
asso-                                                                           
ciates                                                                          
Share-                                                      711                 
based                                                                           
pay-                                                                            
ments                                                                           
move-                                                                           
ment                                                                            
Finan-                                                                          
cial                                                                            
instru-                                                                         
ments                                                                           
fair                                                                            
value                                                                           
move-                                                                           
ments                                                                           
recog-                                                                          
nised in                                                                        
equity                                                                          
-recog-                                             8                           
nised in                                                                        
current                                                                         
year                                                                            
income                                                                          
-recog-                                             23                          
nised in                                                                        
equity                                                                          
Defer-                                  (21)                                    
red taxa-                                                                       
tion                                                                            
Net                                                                             
profit                                                                          
Cash                                                                            
divi-                                                                           
dends                                                                           
paid1                                                                           
Share                                                                           
repurcha                                                                        
se1                                                                             
Divi-                                   (25)        (2)                         
dend in                                                                         
specie                                                                          
Divi-                                                                           
dend in                                                                         
specie -                                                                        
fair                                                                            
value                                                                           
adjustme                                                                        
nt                                                                              
Divi-                                   (25)        (2)                         
dend in                                                                         
specie -                                                                        
net                                                                             
asset                                                                           
value                                                                           
Issue of 1         2,198                                                        
share                                                                           
capital                                                                         
BALANCE  4         5,135                379         24      802                 
AT 31                                                                           
DECEMBER                                                                        
2006                                                                            

                                                                                
                                  Attrib-                                       
                                  table                                         
OPENING BALANCE AT 31                                                           
DECEMBER 2004                                                  Total            
                                  to equity                                     
Prior year                         holders of   Mino-rity      share            
adjustments:           Retai-                                  holders          
Recog-nition of        ned         the parent   Inte-rest      Inte-rest        
finance leases in      income                                                   
terms of IFRIC 4                                                                
-trans-fer of attri-   Rm          Rm           Rm             Rm               
butable reser-ves of                                                            
equity accoun-ted                                                               
invest-ments                                                                    
-nega-tive good-will   2,516       5,289        1,197          6,486            
adjust-ment                                                                     
-decom-missio-ning                                                              
asset resta-ted                                                                 
Resta-ted opening                                                               
balance                (45)        (45)                        (45)             
Net gains/                                                                      
(losses) not recog-    20                                                       
nised in income state-                                                          
ment                                                                            
Curren-cy trans-                                               53               
lation diffe-rences    53          53                                           
Mino-rity share of     18          18           (11)           7                
reserve move-ments                                                              
Share-based pay-ments  2,562       5,315        1,186          6,501            
move-ment                                                                       
Finan-cial instru-                                                              
ments fair value move- 16          113          (37)           76               
ments recog-nised in                                                            
equity                                                                          
-recog-nised in        16          172          60             232              
current year income                                                             
-recog-nised in                                 (97)           (97)             
equity                                                                          
-fair value adjust-                38                          38               
ment                                                                            
Defer-red taxa-tion                                                             
Net profit                         (8)                         (8)              
Divi-dends paid                    (95)                        (95)             
Issue of share                     2                           2                
capital                                                                         
Move-ment in shares                4                           4                
issued to                                                                       
Manage-ment Share      3,177       3,177        61             3,238            
Trust                                                                           
Mino-rity share-buy    (1,430)     (1,430)      (17)           (1,447)          
out                                                                             
BALANCE AT 31                      132          10             142              
DECEMBER 2005                                                                   
Net gains/(losses)                                                              
not recog-nised in                                                              
income statement                                                                
Curren-cy trans-                   12                          12               
lation diffe-rences                                                             
Share of reserve move-                          (1,194)        (1,194)          
ments of asso-ciates                                                            
Share-based pay-ments  4,325       7,319        9              7,328            
move-ment                                                                       
Finan-cial instru-                                                              
ments fair value move-             1,178                       1,178            
ments recog-nised in                                                            
equity                                                                          
-recog-nised in                    449                         449              
current year income                                                             
-recog-nised in                    8                           8                
equity                                                                          
Defer-red taxa-tion                711                         711              
Net profit                                                                      
Cash divi-dends paid1              8                           8                
Share repurchase1                  23                          23               
Divi-dend in specie                (21)                                         
Divi-dend in specie -                                                           
fair value adjustment  19,169      19,169       27                              
Divi-dend in specie -  (1,628)     (1,628)      (9)            (1,637)          
net asset value                                                                 
Issue of share         (1,763)     (1,763)                     (1,763)          
capital                                                                         
BALANCE AT 31          (18 305)    (18 332)                    (18 332)         
DECEMBER 2006                                                                   
1 STC on these dividends amount to R424 million.                                
Sponsor: JP Morgan (+27 11 507 0300) JSE Share code: EXX    ADR code: EXXAY     
Registration number: 2000/011076/06 ISIN code: ZAE000084992                     
If you have any queries regarding your shareholding in Exxaro Resources, please 
contact the Transfer Secretaries at +27 11 370 5000                             
This report is available at Exxaro Resources world wide web site at:            
www.exxaro.com                                                                  
22 February 2007                                                                
Sponsor: J.P.Morgan Equities Limited                                            
Date: 22/02/2007 08:14:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  



                                        
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