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Exxaro Resources Limited - Reviewed Condensed Group Interim Financial Statements For The Six-month Period Ended 30 June 2014

Release Date: 21/08/2014 07:05:00      Code(s): EXX     
EXXARO Resources Limited
Registration number: 2000/011076/06
JSE share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
(Exxaro or the company or the group)

Reviewed condensed Group interim financial statements and unreviewed production and sales volume information
For the six-month period ended 30 June 2014

Performance in brief
-  Zero fatalities - record 20 months without a fatality
-  Coal production at 18,8 million tonnes
-  Coal exports of 2,7 million tonnes, up 43%
-  GMEP Project - shortfall income of R888 million
-  HEPS up 11% to 793 cents per share
-  Interim dividend of 260 cents per share up 11%
-  Raised R1 billion in successful debut bond


What we continue to work on
-  Regrettable fatality on 5 July 2014
-  Lost-time injury frequency rate at 0,22 a regression of 5%


CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME

                                                          6 months ended     6 months ended    12 months ended.
                                                             30 Jun 2014        30 Jun 2013        31 Dec 2013 
                                                                Reviewed           Reviewed            Audited 
                                                                                  (Restated)
                                                                      Rm                 Rm                 Rm 
Revenue                                                            7 412              6 245             13 568 
Operating expenses                                                (6 620)            (5 714)           (12 576)
Operating profit (note 6)                                            792                531                992 
Other income (note 7)                                                888                645              1 594 
Impairment charges of non-current 
assets (notes 8, 14)                                              (5 760)              (292)              (143)
Net operating (loss)/profit                                       (4 080)               884              2 443 
Interest income (note 9)                                              43                 42                 81 
Interest expense (note 9)                                            (86)              (268)              (367)
Income from investments                                                7                  2                 12 
Share of income from 
equity-accounted investments 
(note 10)                                                          1 515              2 015              3 631 
(Loss)/profit before tax                                          (2 601)             2 675              5 800 
Income tax benefit/(expense)                                         159               (429)              (645)
(Loss)/profit for the period from 
continuing operations                                             (2 442)             2 246              5 155 
(Loss)/profit for the period from 
discontinued operations (note 11)                                                        (7)             1 049 
(Loss)/profit for the period                                      (2 442)             2 239              6 204 
Other comprehensive income, net 
of tax                                                               468              1 101              2 640 
Items that will not be 
reclassified to profit or loss:                                       35                 12                150 
? Share of comprehensive income 
of equity-accounted investments                                       35                 12                150 
Items that may be subsequently 
reclassified to profit or loss:                                      433              1 089              2 490 
? Unrealised exchange gains on 
translating foreign operations                                       164                320                537 
? Revaluation of 
available-for-sale financial 
assets                                                               148                 94                100 
? Share of comprehensive income 
of equity-accounted investments                                      121                675              1 853 
                                                                                                               
                                                                                                               
Total comprehensive (loss)/income 
for the period                                                    (1 974)             3 340              8 844 
(Loss)/profit attributable to:                                                                                 
Owners of the parent                                              (2 441)             2 244              6 217 
? continuing operations                                           (2 441)             2 251              5 168 
? discontinued operations                                                                (7)             1 049 
Non-controlling interests                                             (1)                (5)               (13)
? continuing operations                                               (1)                (5)               (13)
                                                                                                               
(Loss)/profit for the period                                      (2 442)             2 239              6 204 
Total comprehensive (loss)/income 
attributable to:                                                                                               
Owners of the parent                                              (1 969)             3 343              8 854 
? continuing operations                                           (1 969)             3 350              7 805 
? discontinued operations                                                                (7)             1 049 
Non-controlling interests                                             (5)                (3)               (10)
? continuing operations                                               (5)                (3)               (10)
                                                                                                               
Comprehensive (loss)/income for 
the period                                                        (1 974)             3 340              8 844


RECONCILIATION OF GROUP HEADLINE EARNINGS

                                                                     Gross                       Tax                       Net 
                                                                        Rm                        Rm                        Rm 
6 months ended 30 June 2014 (Reviewed) 
Loss for the period attributable to owners of 
the parent                                                                                                              (2 441)
Adjusted for:                                                                                               
? IAS 36 Impairment of goodwill acquired in a 
business combination in terms of IFRS 3                              1 020                                               1 020 
? IAS 16 Net losses or gains on disposal of 
property, plant and equipment                                           19                        (5)                       14 
? IAS 28 Loss on dilution of investment in 
associate                                                               29                                                  29 
? IAS 28 Share of associates? gains or 
losses on disposal of property, plant and 
equipment                                                                4                                                   4 
? IAS 36 Impairment of property, plant and 
equipment                                                            4 740                      (552)                    4 188 
Headline earnings                                                    5 812                      (557)                    2 814 
12 months ended 31 December 2013 (Audited)                                                                  
Profit for the year attributable to owners of 
the parent                                                                                                               6 217 
Adjusted for:                                                                                               
? IFRS 10 Gains on disposal of subsidiary                             (964)                                               (964)
? IAS 16 Net losses or gains on disposal of 
property, plant and equipment                                            9                        (4)                        5 
? IAS 28 Loss on dilution of investment in 
associate                                                               12                                                  12 
? IAS 28 Share of associates? gains or 
losses on disposal of property, plant and 
equipment                                                             (114)                        2                      (112)
? IAS 36 Impairment of property, plant and 
equipment                                                              292                       (11)                      281 
? IAS 36 Reversal of impairment of property, 
plant and equipment                                                   (247)                                               (247)
? IAS 38 Loss on the scrapping of intangible 
assets                                                                   2                                                   2 
Headline earnings                                                   (1 010)                      (13)                    5 194 
? continuing operations                                                                                                  5 218 
? discontinued operations                                                                                                  (24)
6 months ended 30 June 2013 (Reviewed)                                                                      
Profit for the period attributable to owners of 
the parent                                                                                                               2 244 
Adjusted for:                                                                                               
? IAS 16 Net gains on disposal of property, 
plant and equipment                                                     (4)                       (1)                       (5)
? IAS 28 Loss on dilution of investment in 
associate                                                               13                                                  13 
? IAS 28 Share of associates? gains or 
losses on disposal of property, plant and 
equipment                                                               (5)                        1                        (4)
? IAS 36 Impairment of property, plant and 
equipment                                                              292                       (11)                      281 
Headline earnings                                                      296                       (11)                    2 529 
? continuing operations                                                                                                  2 537 
? discontinued operations                                                                                                   (8)

HEADLINE EARNINGS AND ATTRIBUTABLE EARNINGS PER SHARE
                                                            6 months ended            6 months ended           12 months ended.
                                                               30 Jun 2014               30 Jun 2013               31 Dec 2013 
                                                                  Reviewed                  Reviewed                   Audited 
Headline earnings/(loss) per share                                   cents                     cents                     cents 
Headline earnings per share ? aggregate                                                                     
? basic                                                                793                       712                     1 463 
? diluted                                                              790                       712                     1 459 
Headline earnings per share ? continuing 
operations                                                                                                  
? basic                                                                793                       714                     1 470 
? diluted                                                              790                       714                     1 466 
Headline loss per share ? discontinued 
operations                                                                                                  
? basic                                                                                           (2)                       (7)
? diluted                                                                                         (2)                       (7)
Attributable (loss)/earnings per share                                                                      
Attributable (loss)/earnings per share ? 
aggregate                                                                                                   
? basic                                                               (688)                      632                     1 751 
? diluted                                                             (686)                      632                     1 746 
Attributable (loss)/earnings per share ? 
continuing operations                                                                                       
? basic                                                               (688)                      634                     1 456 
? diluted                                                             (686)                      634                     1 452 
Attributable (loss)/earnings per share ? 
discontinued operations                                                                                     
? basic                                                                                           (2)                      295 
? diluted                                                                                         (2)                      294 
Refer to note 12 for details regarding the number of shares.  

CONDENDSED GROUP STATEMENT OF FINANCIAL POSITION 
                                                            At 30 Jun 2014            At 30 Jun 2013            At 31 Dec 2013 
                                                                  Reviewed                  Reviewed                   Audited 
                                                                                           (Restated)
                                                                        Rm                        Rm                        Rm 
ASSETS                                                                                                      
Non-current assets                                                  40 402                    41 268                    44 681 
Property, plant and equipment                                       17 057                    17 980                    20 342 
Biological assets                                                       72                        56                        72 
Intangible assets (note 14)                                            232                       994                     1 176 
Investments in associates (note 15)                                 18 828                    18 616                    19 207 
Investments in joint ventures (note 16)                                859                       513                       861 
Financial assets (note 20)                                           2 763                     2 879                     2 657 
Deferred tax                                                           591                       230                       366 
Current assets                                                       5 578                     4 777                     4 483 
Inventories                                                          1 018                       915                       938 
Trade and other receivables                                          2 875                     2 510                     2 434 
Current tax receivable                                                  98                       122                        82 
Cash and cash equivalents                                            1 587                     1 230                     1 029 
Non-current assets held-for-sale (note 17)                             284                                                 342 
Total assets                                                        46 264                    46 045                    49 506 
EQUITY AND LIABILITIES                                                                                      
Capital and other components of equity                                                                      
Share capital                                                        2 402                     2 388                     2 396 
Other components of equity                                           5 334                     2 678                     4 234 
Retained earnings                                                   25 328                    26 500                    29 668 
Equity attributable to owners of the parent                         33 064                    31 566                    36 298 
Non-controlling interests                                               (4)                      (19)                      (26)
Total equity                                                        33 060                    31 547                    36 272 
Non-current liabilities                                              9 186                     9 844                     9 157 
Interest-bearing borrowings (notes 18, 19, 20)                       3 405                     3 565                     3 569 
Non-current provisions                                               1 950                     3 200                     1 863 
Post-retirement employee obligations                                   158                       142                       149 
Financial liabilities                                                   91                       126                        95 
Deferred tax                                                         3 582                     2 811                     3 481 
Current liabilities                                                  3 809                     4 654                     3 852 
Trade and other payables                                             2 888                     3 029                     2 867 
Interest-bearing borrowings (notes 18, 19, 20)                         197                        29                        31 
Current tax payable                                                     57                       166                       131 
Current provisions                                                      29                       117                        17 
Overdraft (notes 18, 19, 20)                                           638                     1 313                       806 
                                                                                                            
Non-current liabilities held-for-sale (note 17)                        209                                                 225 
Total equity and liabilities                                        46 264                    46 045                    49 506

CONDENSED GROUP STATEMENT OF CASH FLOWS
                                                            6 months ended            6 months ended           12 months ended
                                                               30 Jun 2014               30 Jun 2013               31 Dec 2013
                                                                  Reviewed                  Reviewed                   Audited
                                                                        Rm                        Rm                        Rm 
Cash flows from operating activities                                   262                      (189)                      422 
Cash generated by operations                                         1 555                       602                     2 159 
Interest paid                                                         (170)                     (165)                     (262)
Interest received                                                       34                        37                        70 
Tax paid                                                               (31)                     (117)                     (158)
Dividends paid                                                      (1 126)                     (546)                   (1 387)
Cash flows from investing activities                                   485                    (1 240)                   (1 480)
Property, plant and equipment to maintain 
operations (note 13)                                                  (502)                     (577)                   (1 257)
Property, plant and equipment to expand 
operations (note 13)                                                (1 076)                   (1 826)                   (3 507)
Investment in intangible assets                                        (10)                      (23)                     (201)
Proceeds from disposal of property, plant 
and equipment                                                                                     11                        17 
Decrease in investments in other non-current 
assets                                                                  51                        33                       222 
Proceeds from disposal of subsidiaries                                                                                      87 
Increase in equity-accounted joint ventures                            (61)                      (76)                      (82)
Dividend income from equity-accounted 
investments                                                          2 081                     1 216                     3 229 
Income from investments                                                  2                         2                        12 
Cash flows from financing activities                                                             715                       715 
Interest-bearing borrowings raised (note 18)                         1 000                       800                       800 
Interest-bearing borrowings repaid (note 18)                        (1 000)                                 
Consideration paid to non-controlling interests                                                  (96)                      (96)
Proceeds from issuance of share capital                                                           11                        14 
Other financing activities                                                                                                  (3)
                                                                                                            
Net increase/(decrease) in cash and cash 
equivalents                                                            747                      (714)                     (343)
Cash and cash equivalents at beginning of 
the period                                                             223                       553                       553 
Translation difference on movement in cash and 
cash equivalents                                                       (21)                       78                        13 
Cash and cash equivalents/(overdraft) at end of 
the period                                                             949                       (83)                      223 
? cash and cash equivalents                                          1 587                     1 230                     1 029 
? overdraft                                                           (638)                   (1 313)                     (806)
                                                                                                            
Cash and cash equivalents/(overdraft) at end of 
the period                                                             949                       (83)                      223

GROUP STATEMENT OF CHANGES IN EQUITY

                                                               Other components of equity                                                                        
                                                 Foreign      Financial                     Retirement     Available-                                 Attributable            Non-
                                    Share       currency    instruments         Equity-        benefit       for-sale                      Retained   to owners of    controlling         Total 
                                  capital   translations    revaluation        settled      obligation   revaluations          Other         income     the parent      interests        equity 
                                       Rm             Rm             Rm             Rm              Rm             Rm             Rm             Rm             Rm             Rm            Rm 
Balance at 31 December 
2012 (Audited)                      2 374          1 211             21          1 300            (163)                         (733)        24 784         28 794             12        28 806 
Profit/(loss) for the 
period                                                                                                                                        2 244          2 244             (5)        2 239 
Other comprehensive income                           318                                                           94                                          412              2           414 
Share of comprehensive 
income/(loss) from 
equity-accounted 
investments                                          618             (9)            48              12                                           18            687                          687 
Issue of share capital                 14                                                                                                                       14                           14 
Share-based payments 
movements                                                                           29                                                                          29                           29 
Dividends paid                                                                                                                                 (546)          (546)                        (546)
Acquisition of 
non-controlling interest                                                                                                         (68)                          (68)           (28)          (96)
Balance at 30 June 2013 
(Reviewed, restated)                2 388          2 147             12          1 377             (151)            94           (801)        26 500         31 566            (19)       31 547 
Profit/(loss) for the 
period                                                                                                                                         3 973          3 973             (8)        3 965 
Other comprehensive income                           216                                                             6                                          222              1           223 
Share of comprehensive 
income/(loss) from 
equity-accounted 
investments                                          783            298             62              138                            (1)            36          1 316                        1 316 
Issue of share capital1                 8                                                                                                                         8                            8 
Share-based payments 
movements                                                                           54                                                                           54                           54 
Dividends paid                                                                                                                                  (841)          (841)                        (841)
Balance at 31 December 
2013 (Audited)                      2 396          3 146            310          1 493              (13)           100           (802)        29 668         36 298            (26)       36 272 
Loss for the period                                                                                                                           (2 441)        (2 441)            (1)       (2 442)
Other comprehensive 
income/(loss)                                        168                                                           148                                          316             (4)          312 
Share of comprehensive 
income/(loss) from 
equity-accounted 
investments                                           69           (124)           147               35                            (6)            35            156                          156 
Issue of share capital1                 6                                                                                                                         6                            6 
Share-based payments 
movements                                                                         (118)                                                                        (118)                        (118)
Reclassification of 
equity2                                                                                                                            808           (808)                          
Dividends paid                                                                                                                                 (1 126)       (1 126)                      (1 126)
Acquisition of 
non-controlling interest                                                                                                           (27)                         (27)            27               
Balance at 30 June 2014 
(Reviewed)                          2 402          3 383            186          1 522                22            248            (27)        25 328        33 064             (4)        33 060


1.  Vesting of Mpower 2012 shares to good leavers. A good leaver is defined as a participant to a share-based payment scheme whose 
    employment has been terminated due to retrenchment, retirement, death, serious disability, serious incapability or promotion out of
    the relevant qualifying category.
2.  Relates to the reclassification of transactions with non-controlling interest to retained income due to the impairment of the 
    Mayoko project.

Final dividend paid per share (cents) in respect of the 2013 financial year            315
Interim dividend paid per share (cents) in respect of the 2013 interim period          235
Dividend payable per share (cents) in respect of the 2014 interim period               260

Foreign currency translations
Comprises all foreign exchange differences arising from the translation of the financial statements of foreign entities within the group.

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

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

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

Available-for-sale revaluations 
Comprises the fair value adjustments on the investments in Richards Bay Coal Terminal (RBCT) (2014: R114 million) and Chifeng Kumba 
Hongye Corporation Limited (Chifeng) (2014: R34 million) (refer note 20).

Other
Comprises mainly transactions with non-controlling interests for the acquisition of the Mayoko project (R808 million) and Botswana 
(R27 million).


NOTES TO THE REVIEWED CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six-month period ended 30 June 2014

1.   Corporate information
Exxaro Resources Limited (Exxaro), a public company incorporated in South Africa, is a diversified resources group, with interests in 
the coal (controlled and non-controlled), Titanium dioxide (TiO2) (non-controlled), ferrous (controlled and non-controlled) and energy 
(controlled and non-controlled) markets. 

2.  Basis of accounting
Statement of compliance 
The reviewed condensed group interim financial statements as at and for the six-month period ended 30 June 2014 comprise the company 
and its subsidiaries (together referred to as the group) and the group?s interest in equity-accounted investments and have been 
prepared under the supervision of WA de Klerk (CA)SA, South African Institute of Chartered Accountants (SAICA) registration number: 
00133273, in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting, the Listings Requirements of the 
Johannesburg Securities Exchange (JSE), Financial Pronouncements as issued by the Financial Reporting Standards Council, the 
requirements of the South African Companies Act No 71 of 2008 as well as the SAICA Financial Reporting Guides as issued by the 
Accounting Practices Committees. 

The reviewed condensed group interim financial statements should be read in conjunction with the group annual financial statements as 
at and for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards 
(IFRS) as issued by the International Accounting Standards Board (IASB). The reviewed condensed group interim financial statements have 
been prepared on the historical cost basis, excluding financial instruments and biological assets, which are at fair value.

The reviewed condensed group interim financial statements for the six-month period ended 30 June 2014 were authorised for issue by the 
board of directors on 19 August 2014.

Judgments and estimates
In preparing these reviewed condensed group interim financial statements, management made judgments, estimates and assumptions that 
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may 
differ from these estimates. The significant judgments made by management in applying the group?s accounting policies and the key 
source of estimation uncertainty were similar to those applied to the group annual financial statements as at and for the year ended 
31 December 2013.

Taxes on income for the six-month period ended 30 June 2014 were accrued using the tax rates that would be applicable to expected total 
annual profit or loss.

3.  Significant accounting policies
The accounting policies adopted in the preparation of the reviewed condensed interim financial statements are consistent with those 
followed in the preparation of the group?s annual financial statements for the year ended 31 December 2013, except for the adoption of 
new standards and interpretations effective 1 January 2014.

The accounting standards and amendments issued to accounting standards and interpretations which are relevant to the group, but not yet 
effective at 30 June 2014, have not been adopted. It is expected that, where applicable, these standards and amendments will be adopted 
on each respective effective date, except where specifically identified. The group continuously evaluates the impact of these standards 
and amendments.

The nature and the impact of each new standard or amendment, effective on 30 June 2014, are described below:

Investment Entities (amendments to IFRS 10, IFRS 12 and IAS 27)
These amendments provide an exception to the consolidation requirement for entities that meet the definition of an investment entity 
under IFRS 10 Consolidated Financial Statements. The exception to consolidation requires investment entities to account for 
subsidiaries at fair value through profit or loss. These amendments have no impact on the group, since none of the entities in the 
group qualify to be classified as investment entities under IFRS 10.

Offsetting Financial Assets and Financial Liabilities (amendments to IAS 32 Financial instruments: Presentation)
These amendments clarify the meaning of the phrase ?currently has a legally enforceable right to offset? as well as the criteria for 
non-simultaneous settlement mechanisms of clearing houses to qualify for offsetting. These amendments have no impact on the group as 
the group does not offset financial assets and financial liabilities.

Novation of derivatives and continuation of hedge accounting (amendments to IAS 39 Financial instruments: Recognition and Measurement)
These amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging instrument 
meets certain criteria. These amendments have no impact on the group as the group has not novated its derivatives during the current or 
prior periods.

Recoverable amount disclosures for non-financial assets (amendments to IAS 36 Impairment of Assets)
These amendments remove the unintended consequences of IFRS 13 Fair Value Measurement on the disclosure required under IAS 36 
Impairment of Assets. In addition, these amendments require disclosure of the recoverable amounts for the assets or cash-generating 
units (CGU?s) for which an impairment loss has been recognised or reversed during the period. The group adopted these disclosure 
requirements on 1 January 2014.

4.  Correction of prior period error
During the finalisation of the 2013 year end results audit an accounting error in the equity-accounting of a foreign associate, Tronox 
Limited, was identified. Exxaro did not translate the total net assets of Tronox Limited, which has a functional currency of US Dollar, 
to South African Rand as required by IFRS. Instead, Exxaro translated the individual reserves. The omission of translating the total 
net assets of Tronox Limited in the previous period financial statements (June 2013) represents a prior period accounting error which 
must be accounted for retrospectively in the financial statements. Consequently, Exxaro adjusted all comparative amounts presented in 
the current period?s financial statements affected by the accounting error.

The accounting error impacted the results as follows: 
?  investments in associates for the period ended 30 June 2013 increased from R17,0 billion, as previously published, to R18,6 billion;
?  foreign currency translation reserve for the period ended 30 June 2013 increased from R539 million, as previously published, to 
   R2 147 million;
?  total assets for the TiO2 operating segment for the period ended 30 June 2013 increased from R11,6 billion, as previously published, 
   to R13,2 billion;
?  there was no impact on the reported profit for the period ended 30 June 2013;
?  there was no impact on the statement of cash flows for the period ended 30 June 2013;
?  there was no impact on the headline earnings per share for the period ended 30 June 2013; and 
?  there was no impact on the attributable earnings per share for the period ended 30 June 2013.

Refer below for the impact of corrections on the statements of comprehensive income and financial position as well as related notes 
previously published:

                                                          6 months ended                        6 months ended 
                                                             30 Jun 2013        30 Jun 2013        30 Jun 2013 
                                                    Previously published Restatement impact           Restated 
                                                                Reviewed           Reviewed           Reviewed 
                                                                      Rm                 Rm                 Rm 
Impact on statement of comprehensive income                                                                    
Profit for the period                                              2 239                                 2 239 
Other comprehensive 
income/(loss), net of tax                                           (507)             1 608              1 101 
Items that will not be 
reclassified to profit or loss, 
net of tax:                                                           12                                    12 
? Share of comprehensive income 
of equity-accounted investments                                       12                                    12 
Items that may be reclassified 
subsequently to profit or loss:                                     (519)             1 608              1 089 
? Unrealised exchange gains 
on translating foreign operations                                    320                                   320 
? Revaluation of 
available-for-sale 
financial assets                                                      94                                    94 
? Share of comprehensive 
(loss)/income of equity-accounted 
investments                                                         (933)             1 608                675 
                                                                                                               
                                                                                                               
Total comprehensive income for 
the period                                                         1 732              1 608              3 340 
Total comprehensive income 
attributable to:                                                                                               
Owners of the parent                                               1 735              1 608              3 343 
? continuing operations                                            1 742              1 608              3 350 
? discontinued operations                                             (7)                                   (7)
Non-controlling interests                                             (3)                                   (3)
? continuing operations                                               (3)                                   (3)
                                                                                                               
Total comprehensive income for 
the period                                                         1 732              1 608              3 340 
Impact on statement of financial 
position                                                                                                       
Non-current assets                                                                                             
Investments in associates                                         17 008              1 608             18 616 
Equity                                                                                                         
Capital and other components of 
equity                                                                                                         
Other components of equity                                         1 070              1 608              2 678 
Equity attributable to owners of 
the parent                                                        29 958              1 608             31 566 
Impact on segmental information                                                                                
Total assets                                                                                                   
TiO2                                                              11 566              1 608             13 174   

                                                         Other components of equity                                                                        
                                                  Foreign        Financial                        Retirement                                       Attributable              Non-
                                   Share         currency      instruments           Equity-         benefit                          Retained        to owners      controlling            Total 
                                 capital     translations      revaluation          settled       obligation            Other         earnings    of the parent        interests           equity 
                                      Rm               Rm               Rm               Rm               Rm               Rm               Rm               Rm               Rm               Rm 
Balance at 30 June 2013 
(previously published - 
reviewed)                          2 388              539              106            1 377             (151)            (801)          26 500           29 958              (19)          29 939 
Impact of restatement                               1 608                                                                                                 1 608                             1 608 
Balance at 30 June 2013 
(restated, - reviewed)             2 388            2 147              106            1 377             (151)            (801)          26 500           31 566              (19)          31 547

5.  Segmental information
Operating segments are reported on in a manner consistent with the internal reporting provided to the chief operating decision-maker. 
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the reportable operating 
segments, has been identified as the executive committee of the group. Operating segments reported are based on the group?s different 
products and operations.

Total operating segment revenue, which excludes Value Added Tax (VAT), represents the gross value of goods invoiced. Export revenue is 
recorded according to the relevant sales terms, when the risks and rewards of ownership are transferred. 

Total segment revenue further includes operating revenue directly and reasonably allocable to the segments. Segment revenue includes 
sales made between segments. These sales are made on a commercial basis.

Segment net operating profit equals segment revenue less operating segment expenses and includes impairment charges.

Segment operating expenses represent direct or reasonably allocable operating expenses on a segment basis. Segment assets and 
liabilities include directly and reasonably allocable operating assets and liabilities. 

The group has four reportable operating segments, as described below, which are the group?s strategic divisions. The strategic 
divisions offer different products and services and are managed separately because they require different technology and marketing 
strategies. For each of the strategic divisions, the executive committee of the group reviews internal management reports on at least a 
quarterly basis. The following summary describes the operations in each of the group?s reportable operating segments:

Coal
The coal operations are mainly situated in the Waterberg and Mpumalanga regions and are split between Commercial coal operations and 
Tied (Captive) coal operations. The operations produce thermal, metallurgical and semi-coking coal.

Ferrous
The ferrous operations include the group?s investment in African Iron ore Limited (AKI), a 19,98% investment in Sishen Iron Ore Company 
Proprietary Limited (SIOC) and investments in the FerroAlloys and AlloystreamTM operations.

TiO2
Exxaro holds a 44,18% (2013: 44,40%) equity interest in Tronox Limited, a 26% direct investment in each of the South African based KZN 
Sands and Namakwa Sands operations (collectively referred to as the SA operators) as well as a 26% interest in the Tronox Sands Limited 
Liability Partnership in the United Kingdom (UK financing entity).

Other
The other operating segment includes the 50% investment in Cennergi Proprietary Limited (a joint venture with Tata Power), 26% equity 
interest in Black Mountain Mining Proprietary Limited, an effective investment of 11,7% in the Chifeng operations as well as the 
results of Exxaro Base Metals which was sold during 2013.

The following table presents a summary of the group?s segmental information:

                                       Coal                                     Ferrous                               TiO2                               Other                             Total 
                                  Tied    Commercial                                            Other                                             Base                                           
6 months ended              operations    operations             Iron ore        Alloys       ferrous                                           metals         Other                             
30 June 2014 (Reviewed)             Rm            Rm                   Rm            Rm            Rm                   Rm                          Rm            Rm                          Rm 
Total revenue                    2 094         5 220                                 71            11                                                             29                       7 425 
Inter-segmental                                   (2)                                             (11)                                                                                       (13)
External revenue                 2 094         5 218                                 71                                                                           29                       7 412 
Segment net operating  
profit/(loss)                      208         1 628               (5 821)          (96)                                                                           1                      (4 080)
Depreciation and 
amortisation of 
intangible assets (note 
6)                                  21           326                    8             2             3                                                             48                         408 
Impairment charges of 
non-current assets 
(note 8)                                                            5 751                           9                                                                                      5 760 
Impairment charges of 
trade and other 
receivables (note 6)                               1                   26                                                                                          2                          29 
Impairment charges of 
non-current financial 
asset (note 6)                                                         21                                                                                                                     21 
Cash generated 
by/(utilised in) 
operations                         169         1 483                  108           (20)           (9)                                                          (176)                      1 555 
Income/(loss) from 
equity-accounted 
investments (note 10)                            109                                            1 711                 (304)                         46           (47)                      1 515 
Capital expenditure 
(note 13)                                      1 045                  456             8                                                                           69                       1 578 
At 30 June 2014 
(Reviewed)                                                                                                                                                        
Segment assets and 
liabilities                                                                                                                                                        
Deferred tax                        43            98                                125            50                                                            275                         591 
Investments in 
associates 
(equity-accounted) 
(note 15)                                                                                       5 583               12 918                         327                                    18 828 
Investments in joint 
ventures 
(equity-accounted) 
(note 16)                                        636                                                                                                             223                         859 
External assets 
(excluding deferred 
tax, investments in 
equity-accounted 
associates and joint 
ventures and 
non-current assets 
held-for-sale)                   1 803        21 364                   62            88            78                                               287         2 020                      25 702 
Total assets                     1 846        22 098                   62           213         5 711                12 918                         614         2 518                      45 980 
Non-current assets 
held-for-sale (note 17)                          284                                                                                                                                          284 
Total assets as per 
statement of financial 
position                         1 846        22 382                   62           213         5 711                12 918                         614         2 518                      46 264 
Liabilities (external)           1 432         3 318                  193            91            11                                                           4 311                       9 356 
Deferred tax liabilities           105         3 343                   51             2            40                                                              41                       3 582 
Current tax payable                               10                    2                                                                                          45                          57 
Total liabilities                1 537         6 671                  246            93            51                                                           4 397                      12 995 
Non-current liabilities 
held-for-sale (note 17)                          209                                                                                                                                          209 
Total liabilities as 
per statement of 
financial position               1 537         6 880                  246            93            51                                                           4 397                      13 204 
                                                                                                                                                                         
                                       Coal                                     Ferrous                                TiO2                               Other                             Total 
                                  Tied    Commercial                                            Other                                              Base                                           
6 months ended              operations    operations             Iron ore        Alloys       ferrous                                            metals         Other                             
30 June 2013 (Reviewed,             Rm            Rm                   Rm            Rm            Rm                    Rm                          Rm            Rm                          Rm 
restated)
Total revenue                    1 782         4 367                                 55             6                                                              41                       6 251 
Inter-segmental                                                                                    (6)                                                                                        (6)
External revenue                 1 782         4 367                                 55                                                                            41                       6 245 
Revenue from continuing 
operations                       1 782         4 367                                 55                                                                            41                       6 245 
Revenue from 
discontinued operations                                                                                                                                                  
Segment net operating  
profit/(loss)                      210           821                   (1)          (26)          (17)                                               32          (102)                        917 
Net operating 
profit/(loss) from 
continuing operations              210           821                   (1)          (26)          (17)                                               (1)         (102)                        884 
Net operating profit 
from discontinued 
operations                                                                                                                                           33                                        33 
Depreciation and 
amortisation of 
intangible assets (note 
6)                                  18           301                                  1             1                                                              93                         414 
Impairment charges of 
non-current assets 
(note 8)                                         292                                                                                                                                          292 
Cash generated 
by/(utilised in) 
operations                         161           641                 (131)           (5)          (20)                                               42           (86)                        602 
Income/(loss) from 
equity-accounted 
investments (note 10)                             80                                            2 120                  (168)                         52           (69)                      2 015 
Capital expenditure 
(note 13)                                      1 485                  793             5            78                                                              42                       2 403 
At 30 June 2013 
(Reviewed, restated)                                                                                                                                              
Segment assets and 
liabilities                                                                                                                                                              
Deferred tax                         2            67                    2            82             3                                                              74                         230 
Investments in 
associates 
(equity-accounted) 
(note 15)                                                                                       5 110                 13 174                         332                                   18 616 
Investments in joint 
ventures 
(equity-accounted) 
(note 16)                                        468                                                                                                               45                         513 
External assets 
(excluding deferred tax 
and investments in 
equity-accounted 
associates and joint 
ventures)                        1 830        18 783                4 171            65           126                                                234        1 477                      26 686 
Total assets as per 
statement of financial 
position                         1 832        19 318                4 173           147         5 239                 13 174                         566        1 596                      46 045 
Liabilities (external)           1 549         3 723                   87            33             2                                                896        5 231                      11 521 
Deferred tax liabilities            58         2 311                  544             1                                                                          (103)                      2 811 
Current tax payable                 20           118                                  4                                                                4           20                         166 
Total liabilities as 
per statement of 
financial position               1 627         6 152                  631            38             2                                                900        5 148                      14 498 
                                                                                                                                                                         
                                       Coal                                     Ferrous                                 TiO2                               Other                            Total 
                                  Tied    Commercial                                           Other                                               Base                                           
12 months ended             operations    operations             Iron ore        Alloys       ferrous                                            metals         Other                             
31 December 2013 (Audited)          Rm            Rm                   Rm            Rm            Rm                    Rm                          Rm            Rm                          Rm 
Total revenue                    3 917         9 445                                120            21                                                              86                      13 589 
Inter-segmental                                                                                   (21)                                                                                         (21)
External revenue                 3 917         9 445                                120                                                                            86                      13 568 
Revenue from continuing 
operations                       3 917         9 445                                120                                                                            86                      13 568 
Revenue from 
discontinued operations                                                                                                                                                
Segment net operating  
profit/(loss)                      215         2 554                  (27)          (61)          (53)                                               145          793                       3 566 
Net operating 
profit/(loss) from 
continuing operations              215         2 554                  (27)          (61)          (53)                                               (14)        (171)                      2 443 
Net operating profit 
from discontinued 
operations                                                                                                                                           159          964                       1 123 
Depreciation and 
amortisation of 
intangible assets (note 
6)                                  41           624                    8             3             5                                                             175                         856 
Impairment 
charges/(reversals) of 
non-current assets 
(note 8)                                         143                                                                                                 (98)                                      45 
Impairment charges of 
trade and other 
receivables (note 6)                              23                                                                                                                2                          25 
Cash generated 
by/(utilised in) 
operations                          75         2 072                   (7)          (60)          (44)                                                26           97                       2 159 
Income/(loss) from 
equity-accounted 
investments (note 10)                            129                                            4 166                   (638)                         77          (103)                      3 631 
Capital expenditure 
(note 13)                                      2 996                1 453            17           160                                                  1           137                       4 764 
At 31 December 2013 
(Audited)                                                                                                                                                                
Segment assets and 
liabilities                                                                                                                                                              
Deferred tax                       (36)           80                    5            95            53                                                             169                         366 
Investments in 
associates 
(equity-accounted) 
(note 15)                                                                                       5 523                 13 325                         359                                   19 207 
Investments in joint 
ventures 
(equity-accounted) 
(note 16)                                        528                                                                                                              333                         861 
External assets 
(excluding deferred 
tax, investments in 
equity-accounted 
associates and joint 
ventures and 
non-current assets 
held-for-sale)                   1 579        19 893                5 109            94           216                                                 252       1 587                      28 730 
Total assets                     1 543        20 501                5 114           189         5 792                  13 325                         611       2 089                      49 164 
Non-current assets 
held-for-sale (note 17)                          342                                                                                                                                            342 
Total assets as per 
statement of financial 
position                         1 543        20 843                5 114           189         5 792                  13 325                         611       2 089                      49 506 
Liabilities (external)           1 387         3 046                  128            32            12                                                           4 792                       9 397 
Deferred tax liabilities             4         2 872                  600                          40                                                             (35)                      3 481 
Current tax payable                               18                    1             1                                                                           111                         131 
Total liabilities                1 391         5 936                  729            33            52                                                           4 868                      13 009 
Non-current liabilities 
held-for-sale (note 17)                          225                                                                                                                                          225 
Total liabilities as 
per statement of 
financial position               1 391         6 161                  729            33            52                                                           4 868                      13 234 

6.  Significant items included in operating profit
                                                                    6 months ended        6 months ended      12 months ended 
                                                                       30 Jun 2014           30 Jun 2013          31 Dec 2013 
                                                                          Reviewed              Reviewed              Audited 
                                                                                Rm                    Rm                   Rm 
Depreciation and amortisation                                                  408                   414                  856 
Net realised foreign currency exchange losses/(gains)                           24                   (88)                 (56)
Net unrealised foreign currency exchange (gains)/losses                         (5)                   15                   20 
Net (gains)/losses on derivative instruments held-for-trading                  (28)                   84                   81 
Impairment charges of trade and other receivables1                              29                                         25 
Impairment charges of non-current financial asset2                              21                                            
Royalties                                                                       46                    24                    8 
Net losses/(gains) on disposal of property, plant and equipment                 18                    (3)                  23 
Loss on dilution of investment in associate                                     29                    13                   12 

1. Include trade and other receivables relating to the Mayoko project (R26 million).                                          
2. Non-current financial asset relating to the Mayoko project.                                                                

7.  Other income
Other income                                                                   888                   645                1 594 
Other income relates to shortfall income 
received from Eskom as a result of delays 
in agreed upon production off-take plans.

8.  Impairment charges/(reversals) of non-current assets

Included in operating expenses are the following impairment charges/(reversals):

Mayoko project                                                               5 208                                            
Impairment of property, plant and equipment                                  4 740                                            
Impairment of goodwill (note 14)                                             1 020                                            
? Total impairment charges                                                   5 760                                            
? Net tax effect                                                              (552)                                           
New Clydesdale Colliery (NCC) operation                                                              281                  132 
Impairment of property, plant and equipment                                                          292                  292 
Partial reversal of impairment of property, plant and equipment                                                          (149)
? Total impairment charges                                                                           292                  143 
? Net tax effect                                                                                     (11)                 (11)
Zincor
Partial reversal of impairment of property, plant and equipment                                                           (98)
Net impairment charges per statement of comprehensive income                 5 760                   292                   45 
Net tax effect                                                                (552)                  (11)                 (11)
Net effect on attributable earnings                                          5 208                   281                   34 
? continuing operations                                                      5 208                   281                  132 
? discontinued operations                                                                                                 (98)

Mayoko project
The Mayoko project is located in the Republic of the Congo (RoC) and was acquired in 2012 with the acquisition of AKI. The project is 
reported within the iron ore operating segment contained in the ferrous reporting segment.

The concept study on the revised 12 million tonnes Mayoko project was concluded during June 2014. However, Exxaro has not yet been 
successful in concluding the definitive port and rail agreements for the Mayoko project. As a result of the delays in these agreements 
as well as higher future project development costs following the outcome of the concept study, a pre-tax impairment loss of 
R5 807 million (R5 760 excluding financial assets written down), was raised consisting of an impairment of goodwill acquired in the 
business combination with AKI in 2012 of R1 020 million, impairment of property, plant and equipment of R4 740 million (including the 
mineral resource of R1 877 million recognised on acquisition of the project and project related cost capitalised of R1 696 million) as 
well as financial assets amounting to R47 million written down in terms of IAS 39 Financial instruments: Recognition and Measurement 
(refer note 20).

The recoverable amount, being the fair value less costs of disposal (level 3 as per IFRS 13 Fair value Measurement), is a discounted 
cash flow valuation technique (consistent with the valuation technique used on 31 December 2013) using cash flow projections and a pre-
tax discount rate of 17,4% (31 December 2013: 14,6%). The main reason for the increase in the discount rate is the market assumptions 
of risk around the implementation of the Mayoko project. The decrease in life of mine (LoM) is mainly due to the increase in annual 
production cost, acceleration in ramp-up, lower plant yield and different ore mix, based on the most recent information available.

Key assumptions made in the valuation, include the following:
LoM: estimated at 25 years (31 December 2013: 35 years)
Iron ore price: range between US$70/tonne to US$120/tonne (31 December 2013: US$70/tonne to US$120/tonne).

NCC operation
The carrying value of property, plant and equipment of the NCC coal operation, reported within the commercial operating segment 
contained in the coal operating segment, was impaired with R292 million to the recoverable amount based on impairment tests performed 
in June 2013. The recoverable amount was revised following the classification of the NCC operation as held-for-sale at the end of the 
reporting year due to the signing of the sales agreement of the NCC asset, which was concluded with Universal Coal Development VIII 
Proprietary Limited (Universal) (refer note 17) in January 2014. As a result of the revision of the recoverable amount, a partial 
impairment reversal to the amount of R149 million was recorded, bringing the net impairment loss (pre-tax) recorded to R143 million.

Zincor
The partial impairment reversal of the carrying value of property, plant and equipment at the Zincor operation was based on the revised 
recoverable amount of the operation. The recoverable amount was revised following the sale transaction of Exxaro Base Metals 
Proprietary Limited (Exxaro Base Metals), which included the Zincor assets (refer note 11).

9.  Net financing costs
                                              6 months ended              6 months ended                  12 months ended
                                                 30 Jun 2014                 30 Jun 2013                      31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Interest income                                           43                          42                              81 
? Interest income on cash and cash equivalents            33                          22                              48 
? Finance leases interest                                  5                           6                              11 
? Interest received from joint ventures                    5                          14                              22 
Total interest expense 
(net of borrowing costs capitalised)                     (86)                       (268)                           (367)
Interest expense                                        (273)                       (433)                           (705)
? Interest expense and loan costs                       (182)                       (160)                           (329)
? Unwinding of discount rate on rehabilitation cost      (86)                       (268)                           (367)
? Amortisation of transaction costs                       (5)                         (5)                             (9)
Borrowing cost capitalised1                              187                         165                             338
Total net financing costs                                (43)                       (226)                           (286)
1.  Borrowing cost capitalisation rate.                 6,56%                       5,61%                           5,67%

10.  Income/(loss) from equity-accounted investments
                                              6 months ended              6 months ended                  12 months ended
                                                 30 Jun 2014                 30 Jun 2013                      31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Sishen Iron Ore Company Proprietary Limited (SIOC)     1 711                       2 120                            4 166 
Tronox (including Tronox Limited, SA and 
UK operations)                                          (304)                       (168)                            (638)
Mafube Coal Proprietary Limited                          109                          80                              131 
South Dunes Coal Terminal Company SOC Limited (SDCT)                                                                   (2)
Black Mountain Proprietary Limited                        46                          52                               77 
Cennergi Proprietary Limited                             (47)                        (69)                            (103)
Share of income from equity-accounted investments      1 515                       2 015                            3 631

11.  Discontinued operations
Exxaro Base metals
All the conditions precedent to the sale of Exxaro?s 100% shareholding in Exxaro Base Metals to Lebonix Proprietary Limited were met on 
2 December 2013. The subsidiary, which included the Zincor operations, was disposed for a total consideration of R183 million. This 
process completed the Zincor divestment process, which commenced with the cessation of the production of zinc metal at Zincor in 2011 
and was followed by the sale of the Rosh Pinah mine during 2012.

Financial information relating to the discontinued operations for the prior periods to the date of disposal is set out below:

                                              6 months ended              6 months ended                  12 months ended
                                                 30 Jun 2014                 30 Jun 2013                      31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Revenue
Operating income                                                                      33                               61 
Impairment reversal                                                                                                    98 
Operating profit                                                                      33                              159 
Profit on sale of subsidiary                                                                                          964 
Net operating profit                                                                  33                            1 123 
Interest expense                                                                     (40)                             (74)
(Loss)/profit for the period from discontinued operations                             (7)                           1 049 
Cash flow attributable to operating activities                                        43                               26 
Cash flow attributable to investing activities                                                                         98 
Cash flow attributable to financing activities                                       (43)                             (37)
Cash flow attributable to discontinued operations                                                                      87

12.  Dividends
Total dividends paid in 2013 amounted to R1 387 million, made up of a final dividend of R546 million that relates to the year ended 
31 December 2012, which was paid in April 2013, as well as an interim dividend of R841 million, paid in September 2013.

An interim cash dividend for 2014 of 260 cents per share (2013: 235 cents per share) was approved by the board of directors on 
20 August 2014. The dividend is payable on 15 September 2014 to shareholders who will be on the register at 12 September 2014. 
This interim dividend, amounting to approximately R931 million (2013: R841 million), has not been recognised as a liability in this 
reviewed condensed interim financial statements. It will be recognised in shareholders? equity in the year ending 31 December 2014.

The dividend declared will be subject to a dividend withholding tax of 15% for all shareholders who are not exempt from or do not 
qualify for a reduced rate of withholding tax. Although the local dividend tax rate was 15% for the corresponding period in 2013, no 
tax was due as a result of the secondary tax on companies (STC) credits utilised. The number of ordinary shares in issue at the date of 
this declaration is 358 115 505 (2013: 358 061 205). Exxaro?s tax reference number is 9218/098/14/4.

                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
Issued shares as at declaration date (number)    358 115 505                 358 061 205                      358 115 505 
Ordinary shares (million)
? weighted average number of shares                      355                         355                              355
? diluted weighted average number of shares              356                         355                              356

13.  Property, plant and equipment 
                                              6 months ended              6 months ended                  12 months ended
                                                 30 Jun 2014                 30 Jun 2013                      31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Capital expenditure
? incurred                                             1 578                       2 403                             4 764 
to maintain operations                                   502                         577                             1 257 
to expand operations                                   1 076                       1 826                             3 507 
? contracted                                           2 084                       2 756                             4 204 
contracted for the group excluding group?s 
share of capital commitments of equity-
accounted investments                                  1 251                       1 574                             3 241 
group?s share of capital commitments of 
equity-accounted investments                             833                       1 182                               963 
? authorised, but not contracted                         523                       2 055                             2 826 

14.  Intangible assets
                                              At 30 Jun 2014              At 30 Jun 2013                    At 31 Dec 2013
                                                    Reviewed                    Reviewed                           Audited
                                                                               (Restated)
                                                          Rm                          Rm                                Rm
Goodwill 1
At beginning of the period                               953                         902                               902 
Exchange differences                                      67                          23                                51 
Impairment charge                                     (1 020)           
At end of the period                                                                 925                               953 
Patents and licences 2 
Gross carrying amount 
At beginning of the period                               232                         121                               121 
Additions                                                 10                          21                               201 
Transfer from other assets                                 6 
Scrapping of other intangibles                                                       (19)                              (90)
Exchange differences
At end of the period                                     248                         123                               232 
Accumulated amortisation 
At beginning of the period                                 9                          61                                61 
Scrapping of other intangibles                                                       (19)                              (88)
Amortisation charge included in depreciation charge        7                          12                                36 
At end of the period                                      16                          54                                 9 
Net carrying amount at end of the period                 232                         994                             1 176 

1.  Goodwill was allocated to AKI, which is regarded as a single cash generating unit. Impairment testing was performed on this 
    goodwill based on fair value less cost of disposal where factors such as iron ore prices, exchange rates and respective discount
    rates were considered. The full amount of goodwill was impaired at 30 June 2014 (refer note 8).
2.  Include SAP licences, Linc Energy Intellectual Property as well as an option to receive specific quantities of water from the 
    Eungella water pipeline at lower than market rates.

15.  Investments in associates
                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                                               (Restated)
                                                          Rm                          Rm                               Rm
Listed investments
Tronox Limited1                                        9 823                      10 685                           10 267
Unlisted investments                                   9 005                       7 931                            8 940 
SIOC                                                   5 583                       5 110                            5 523 
Tronox Mineral Sands Proprietary Limited 
& Tronox KZN Sands Proprietary Limited                 1 807                       1 493                            1 819 
Tronox Sands Limited Liability Partnership             1 288                         995                            1 239 
Black Mountain Mining Proprietary Limited                327                         333                              359 

Total carrying value of investment in associates      18 828                      18 616                           19 207 

1.  Fair value based on a listed price 
(Level 1 within the IFRS 13 Fair Value Measurement 
fair value hierarchy) for Tronox Limited
? Fair value                                          14 559                      10 184                           12 319
? Listed share price                                US$26,90                    US$20,15                         US$23,07 

16.  Investments in joint ventures
                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                                               (Restated)
                                                          Rm                          Rm                               Rm
Unlisted investments                                     999                         878                            1 116 
Mafube Coal Mining Proprietary Limited1                  696                         765                              714 
SDCT2                                                     80                          68                               69 
Cennergi Proprietary Limited                             223                          45                              333 

Total carrying value of investment in joint ventures     999                         878                            1 116 

1.  Includes a loan to the joint venture of 
R60 million (June 2013: R297 million; 
31 December 2013: R186 million) disclosed as part of 
financial assets (note 20).
2.  Includes a loan to the joint venture of 
R80 million (June 2013: R68 million; 
31 December 2013: R69 million) disclosed as part of 
financial assets (note 20).

17.  Non-current assets held-for-sale
Exxaro concluded a sale of asset agreement relating to the NCC operation with Universal in January 2014. The sale is conditional on a 
section 11 approval required in terms of the Mineral and Petroleum Resources Development Act No 28 of 2002 for the transfer of the new-
order mining right from Exxaro Coal Mpumalanga Proprietary Limited to the new owners.

On 30 June 2014, conditions precedent to the sales agreement with Universal had not been met. The NCC operation remains a non-current 
asset classified as held-for-sale.

The NCC operation met the relevant recognition to be classified as a non-current asset held-for-sale on 31 December 2013. The NCC 
operation does not meet the criteria to be classified as a discontinued operation since it does not represent a separate major line of 
business, nor does it represent a major geographical area of operation since it forms part of the Mpumalanga coal region which is 
reported as part of the commercial coal operating segment.

The major classes of assets and liabilities classified as non-current assets held-for-sale are as follows:

                                                                        At 30 Jun 2014              At 31 Dec 2013
                                                                              Reviewed                     Audited
                                                                                    Rm                          Rm
Assets 
Property, plant and equipment                                                      149                         149 
Deferred tax                                                                        31                          90 
Financial assets                                                                    70                          67 
Inventories                                                                          7                           8 
Trade and other receivables                                                          6                           4 
? Trade receivables                                                                  3 
? Non-financial instrument receivables                                               3                           4 
Current tax receivable                                                              21                          24 
Total assets                                                                       284                         342 
Liabilities 
Non-current provisions                                                            (151)                       (144)
Post-retirement employee obligations                                                (4)                         (3)
Trade and other payables                                                           (16)                        (39)
? Trade payables                                                                    (9)                        (20)
? Other payables                                                                    (1)                         (7)
? Derivative instruments                                                            (5)                         (9)
? Non-financial instrument payables                                                 (1)                         (3)
Current provisions                                                                 (38)                        (39)
Total liabilities                                                                 (209)                       (225)
Net assets classified as held-for-sale                                              75                         117 

18.  Interest-bearing borrowings
                                              At 30 Jun 2014              At 30 Jun 2013                    At 31 Dec 2013 
                                                    Reviewed                    Reviewed                           Audited 
                                                          Rm                          Rm                                Rm 
Non-current borrowings
Summary of loans by financial year of redemption
2014                                                                                  29                                31 
2015                                                     197                         157                               324   
2016                                                     324                         326                               326 
2017                                                   1 406                       1 927                             1 927 
2018                                                     328                         327                               329 
2019                                                     850                         330                               331 
2020 onwards                                             497                         498                               332 
Total interest-bearing borrowings                      3 602                       3 594                             3 600 
? current                                                197                          29                                31 
? non-current                                          3 405                       3 565                             3 569 

The R197 million current portion represents a capital repayment of R166 million, interest capitalised of R41 million and amortised 
transaction costs of R10 million. 

Senior loan facility
During April 2012, Exxaro secured a senior loan facility of R8 billion. The senior loan facility comprises of a:
? term loan facility of R5 billion for a duration of 97 months; and
? revolving credit facility of R3 billion for a duration of 62 months.

Interest is based on JIBAR plus a margin of 2,75% for the term loan and JIBAR plus a margin of 2,5% for the revolving facility. The 
effective interest rate for the transaction costs for the term loan is 0,47%. Interest is paid on a three monthly basis for the term 
loan and on a monthly basis for the revolving facility.

The undrawn portion relating to the term loan amount to R3 billion (30 June 2013: R3 billion; 31 December 2013: R3 billion). 
The undrawn portion of the revolving facility amount to R2,4 billion (30 June 2013: R1,4 billion; 31 December 2013: R1,4 billion). 
On 22 May 2014 R1 billion of the revolving facility was repaid.

No capital repayments are expected until 2015. However, on 24 July 2014 (an event after the reporting period), an addendum to the 
senior loan facility was signed extending the first capital repayment to 2016.

Bond issue
In terms of Exxaro?s R5 billion Domestic Medium Term Note (DMTN) programme, a senior unsecured floating rate note (bond) of R1 billion 
was raised during May 2014. The bond consists of a:

  ? R480 million senior unsecured floating rate note due 19 May 2017; and
  ? R520 million senior unsecured floating rate note due 19 May 2019.

Interest is based on JIBAR plus a margin of 1,7% for the R480 million bond and JIBAR plus a margin of 1,95% for the R520 million bond. 
The effective interest rates for the transaction costs is 0,13% for the R480 million bond and 0,08% for the R520 million bond. Interest 
is paid on a three monthly basis for both bonds.

                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Overdraft
Bank overdraft                                           638                       1 313                              806 
The bank overdraft is repayable on demand 
and interest payable is based on current 
South African money market rates.

There were no defaults or breaches in 
terms of interest-bearing borrowings 
during the reporting period.

19.  Net debt
                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Net debt is presented by the following 
items on the face of the statement of 
financial position (excluding assets 
and liabilities held-for-sale):                       (2 653)                     (3 677)                          (3 377)
? Cash and cash equivalents                            1 587                       1 230                            1 029 
? Non-current interest-bearing borrowings             (3 405)                     (3 565)                          (3 569)
? Current interest-bearing borrowings                   (197)                        (29)                             (31)
? Overdraft                                             (638)                     (1 313)                            (806)
Calculation of movement in net debt: 
Cash inflow/(outflow):                                   747                      (1 429)                          (1 058)
Add:
? shares issued                                                                       11                               14 
? share-based payments                                                                (2)                              (3)
? non-cash flow movement for interest 
accrued not yet paid                                      (1)                                                         (40)
? non-cash flow amortisation of transaction costs         (1)                                                          (9)
? translation difference on movements in cash 
and cash equivalents                                     (21)                         77 
? consideration paid to non-controlling interests                                    (96)                             (96)
? non-cash flow movements in net debt applicable 
to currency translation differences of transactions 
denominated in foreign currency                                                      (39)                              14 
Decrease/(increase) in net debt                           724                     (1 478)                          (1 178)

20.  Financial instruments
Carrying amounts and fair values
The fair values of financial assets and financial liabilities, together with the carrying amounts in the condensed group statement of 
financial position, are as follows:

                                                                 At 30 June 2014         At 31 December 2013
                                                           Carrying         Fair     Carrying           Fair
                                                           amount          value       amount          value
                                                               Rm             Rm           Rm             Rm
ASSETS
Non-current assets
Financial assets, consisting of:                            2 603          2 603        2 469          2 469 
? Exxaro Environmental Rehabilitation Trust asset             749            749          618            618 
? Loans to equity-accounted investments                       140            140          255            255 
? Richards Bay Coal Terminal (RBCT)                           691            691          551            551 
? Kumba Iron Ore Limited                                       30             30           40             40 
? New Age Exploration Limited                                   1              1            1              1 
? Chifeng Kumba Hongye Zinc Corporation Limited (Chifeng)     287            287          253            253 
? Non-current receivables                                     705            705          751            751 
Current assets1                                             3 896          3 896        2 875          2 875 
Trade and other receivables                                 2 306          2 306        1 845          1 845 
Derivative financial instruments                                3              3            1              1 
Cash and cash equivalents                                   1 587          1 587        1 029          1 029 
Non-current assets held-for-sale (note 17)                     73             73           67             67 
Total assets                                                6 572          6 572        5 411          5 411 
LIABILITIES
Non-current liabilities                                     3 405          3 405        3 569          3 569 
Interest-bearing borrowings2                                3 405          3 405        3 569          3 569 
Current liabilities1                                        2 994          2 994        2 907          2 907 
Trade and other payables                                    2 159          2 159        2 056          2 056 
Derivative financial instruments                                                           14             14 
Interest-bearing borrowings2                                  197            197           31             31 
Overdraft                                                     638            638          806            806 
Non-current liabilities held-for-sale (note 17)                15             15           36             36 
Total liabilities                                           6 414          6 414        6 512          6 512

1.  Carrying amounts approximate the fair values due to the short-term nature of the maturities of these financial assets and 
    liabilities.
2.  Carried at amortised cost representing fair value in terms of IAS 39 Financial Instruments: Recognition and Measurement.

Fair value hierarchy
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value 
measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation techniques used. 
The different levels are defined as follows:

Level 1 ? quoted prices (unadjusted) in active markets for identical assets or liabilities that the group can access at the measurement 
date.
Level 2 ? inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly 
or indirectly.

Level 3 ? unobservable inputs for the asset and liability.

                                                         Level 1          Level 2         Level 3         Total
At 30 June 2014 (Reviewed)                                    Rm               Rm              Rm            Rm
Financial assets held-for-trading at 
fair value through profit or loss
? Current derivative financial assets                                            3                            3
Financial assets designated at fair value 
through profit or loss
? Exxaro Environmental Rehabilitation Trust                   749                                           749
? Exxaro Environmental Rehabilitation Trust 
held-for-sale                                                  70                                            70
? Kumba Iron Ore Limited                                       30                                            30
Available-for-sale financial assets 
? RBCT                                                                                         691          691 
? New Age Exploration Limited                                   1                                             1 
? Chifeng                                                                                      287          287 
Financial liabilities held-for-trading at 
fair value through profit or loss
? Current derivative financial liabilities 
held-for-sale                                                                   (5)                          (5)
Net financial assets/(liabilities) 
carried at fair value                                         850               (2)            978        1 826

                                                         Level 1          Level 2         Level 3          Total
At 31 December 2013 (Audited)                                 Rm               Rm              Rm             Rm
Financial assets held-for-trading at
fair value through profit or loss
? Current derivative financial assets                                           1                              1 
Financial assets designated at fair value 
through profit or loss
? Exxaro Environmental Rehabilitation Trust                   618                                            618 
? Exxaro Environmental Rehabilitation Trust 
held-for-sale                                                  67                                             67 
? Kumba Iron Ore Limited                                       40                                             40 
Available-for-sale financial assets 
? RBCT                                                                                         551           551 
? New Age Exploration Limited                                   1                                              1 
? Chifeng                                                                                      253           253 
Financial liabilities held-for-trading at 
fair value through profit or loss
? Current derivative financial liabilities                                     (14)                          (14)
? Current derivative financial liabilities held-for-sale                        (9)                           (9)
Net financial assets/(liabilities) carried at fair value      726              (22)            804         1 508 
Level 3 fair values
Reconciliation of assets within Level 3 of the hierarchy
                                                                                            Chifeng         RBCT
                                                                                                 Rm           Rm
Balance at 31 December 2012                                                                     174          467
Movement during the year
Gains recognised in other comprehensive income 
(pre-tax effect)                                                                                 46           82
Settlements                                                                                                    2
Exchange gains for the year recognised in profit or loss                                         33
Closing balance at 31 December 2013                                                             253          551
Movement during the period
Gains recognised in other comprehensive income 
(pre-tax effect)                                                                                 34          140
Closing balance at 30 June 2014                                                                 287          691

Transfers
The group recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during which the 
transfer has occurred.

There were no transfers between level 1 and level 2 of the fair value hierarchy during the periods ended 30 June 2014 and 31 December 
2013.

There were no transfers between level 2 and level 3, as shown in the reconciliations above.

Valuation process applied by the group
The fair value computations of the investments are performed by the group?s corporate finance department, reporting to the financial 
director, on a six monthly basis.

The valuation reports are discussed with the Audit Committee in accordance with the group?s reporting governance.

Current derivative financial instruments
Level 2 fair values for simple over-the-counter derivative financial instruments are based on market quotes. These quotes are tested 
for reasonability by discounting estimated future cash flows using the market rate for similar instruments at measurement date.

Valuation techniques used in the determination of fair values within level 3 of the hierarchy, as well as significant inputs used in 
the valuation models

Chifeng
Chifeng is classified within level 3 as there is no quoted market price or observable price available for this investment. This 
unlisted investment is valued as the present value of the estimated future cash flows, using a discounted cash flow model. The 
valuation technique was consistent with the valuation technique used on 31 December 2013.

The significant observable and unobservable inputs used in the fair value measurement of the investment in Chifeng are Rand/RMB 
exchange rate, RMB/US$ exchange rate, Zinc London Metal Exchange (LME) price, production volumes, operational costs and the discount 
rate. Significant increases/(decreases) in any of those inputs in isolation would result in a significantly lower/(higher) fair value 
measurement.

At 30 June 2014 (Reviewed)
                                                                                               Sensitivity analysis
                                                                                                  of a 10% increase 
                                    Range of inputs    Sensitivity of inputs                       in the inputs is 
                                                       and fair value measurement1              demonstrated below2
Observable inputs                                                                                                Rm 
Rand/RMB exchange rate                   R1,70/RMB1    Strengthening of the Rand to the RMB                      28
RMB/US$ exchange rate                    RMB6,02 to 
                                       RMB6,18/US$1    Strengthening of the RMB to the US$                      153
Zinc LME price                             2 007 to
(US$ per tonne in real terms)                 2 140    Increase in price of Zinc concentrate                    153
Unobservable inputs
Production volumes 
(tonnes)                                    108 750    Increase in production volumes                            76
Operational costs 
(US$ million per annum in real terms)      69 to 71    Decrease in operational costs                            160
Discount rate                                   10%    Decrease in discount rate                                 23

At 31 December 2013 (Audited)
                                                                                               Sensitivity analysis
                                                                                                  of a 10% increase 
                                    Range of inputs    Sensitivity of inputs                       in the inputs is 
                                                       and fair value measurement1              demonstrated below2
Observable inputs                                                                                                Rm 
Rand/RMB exchange rate                   R1,72/RMB1    Strengthening of the Rand to the RMB                      25
RMB/US$ exchange rate                    RMB6,02 to 
                                       RMB5,95/US$1    Strengthening of the RMB to the US$                      161
Zinc LME price 
(US$ per tonne in real terms)              2 039 to
                                              2 027    Increase in price of Zinc concentrate                    161
Unobservable inputs
Production volumes (tonnes)                 208 750    Increase in production volumes                           177
Operational costs 
(US$ million per annum in real terms)      74 to 88    Decrease in operational costs                            143
Discount rate                                   10%    Decrease in discount rate                                 21
1.  Change in observable/unobservable input which will result in an increase in the fair value measurement.
2.  A 10% decrease in the respective inputs would have an equal but opposite effect on the above, on the basis that all other 
    variables remain constant.

Interrelationships
Any interrelationships between unobservable inputs are not considered to have a significant impact within the range of reasonably 
possible alternative assumptions for the periods ended 30 June 2014 and 31 December 2013.

RBCT
RBCT is classified within a level 3 as there is no quoted market price or observable price available for this investment. This unlisted 
investment is valued as the present value of the estimated future cash flows, using a discounted cash flow model. It is not anticipated 
that the RBCT investment will be disposed of in the near future. The valuation technique was consistent with the valuation technique 
used on 31 December 2013.

The significant observable and unobservable inputs used in the fair value measurement of the investment in RBCT are Rand/US$ exchange 
rate, API4 export price, Transnet Market Demand Strategy, discount rate and the annual utilisation factor. Significant 
increases/(decreases) in any of those inputs in isolation would result in a significantly lower/(higher) fair value measurement.

At 30 June 2014 (Reviewed)
                                                                                               Sensitivity analysis
                                                                                                  of a 10% increase 
                                    Range of inputs    Sensitivity of inputs                       in the inputs is 
                                                       and fair value measurement1              demonstrated below2
Observable inputs                                                                                                Rm 
Rand/US$ exchange rate                    R10.53 to 
                                        R15.47/US$1   Strengthening of the Rand to the US$                      145
API4 export price per tonne 
(steam coal A-grade price in 
real terms)                         83.33 to 97 US$ 
                                          per tonne   Increase in API4 export price per tonne                   145
Unobservable inputs
Transnet Market 
Demand Strategy for the terminal 
(million tonnes per annum ? Mtpa)     72 to 91 Mtpa   Acceleration of Transnet Freight Rail 
                                                      performance, ie reach full capacity sooner                145
Discount rate                            13% to 17%   Decrease in discount rate                                 116
Annual utilisation factor (safety 
and rail delay factor)                          90%   Increase in annual utilisation factor                     145

At 31 December 2013 (Audited)
                                                                                               Sensitivity analysis
                                                                                                  of a 10% increase 
                                    Range of inputs    Sensitivity of inputs                       in the inputs is 
                                                       and fair value measurement1              demonstrated below2
Observable inputs                                                                                                Rm 
Rand/US$ exchange rate                     R9,85 to 
                                        R10,15/US$1    Strengthening of the Rand to the US$                     119
API4 export price per tonne 
(steam coal A-grade price in 
real terms)                         75,50 to 97 US$ 
                                          per tonne    Increase in API4 export price per tonne                  119
Unobservable inputs
Transnet Market 
Demand Strategy for the terminal 
(million tonnes per annum ? Mtpa)     70 to 91 Mtpa     Acceleration of Transnet Freight Rail 
                                                        performance, ie reach full capacity sooner             127
Discount rate                            13% to 17%     Decrease in discount rate                              109
Annual utilisation factor 
(safety and rail delay factor)                  90%     Increase in annual utilisation factor                  119
1.  Change in observable/unobservable input which will result in an increase in the fair value measurement.
2.  A 10% decrease in the respective inputs would have an equal but opposite effect on the above, on the basis that all other variables 
    remain constant.

Interrelationships
Any interrelationships between unobservable inputs are not considered to have a significant impact within the range of reasonably 
possible alternative assumptions for the periods ended 30 June 2014 and 31 December 2013.

21.  Contingent liabilities 
                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Total contingent liabilities                           2 447                       1 856                            2 066 
? Grootegeluk Medupi Expansion Project                                               145                               50 
? DMC Iron Congo SA                                       84                          84                               84 
? Pending litigation claims                              411                         304                              328 
? Operational guarantees                               1 258                         831                              927 
? Group?s share of contingent liabilities of 
equity-accounted investments                             694                         492                              677 
Operational guarantees include guarantees to 
banks and other institutions in the normal 
course of business from which it is anticipated 
that no material liabilities will arise.

The timing and occurrence of any possible 
outflows of the contingent liabilities 
above are uncertain.

Due to the Mineral and Petroleum Resources 
Development Act of 2002 currently not specifying 
how to financially provide for future water 
treatment liabilities at post mine closure. 
Exxaro is in the process of developing a 
specific policy to provide for such expenses. 
An estimate of this amount is currently not 
available, however, a liability may arise 
in future.

22.  Contingent assets 
                                              At 30 Jun 2014              At 30 Jun 2013                   At 31 Dec 2013
                                                    Reviewed                    Reviewed                          Audited
                                                          Rm                          Rm                               Rm
Total contingent assets                                  226                         113                              108
? Surrender fee on prospecting rights, 
exploration rights and mining rights1                     87                          86                               81 
? Group?s share of contingent assets of 
equity-accounted investments                             139                          27                               27 
The timing and occurrence of any possible 
inflows of the contingent assets above 
are uncertain.

1.  Relate to a surrender fee in exchange for the exclusive right to prospect, explore, investigate and mine coal within a designated 
    area of Central Queensland and Moranbah, Australia, conditional on the grant of a mining lease.


23.  Related party transactions
During the year the group, 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, nor more favourable than those arranged with third parties.

24.  Going concern
Taking into account the group?s liquidity position as well as internal budgets for the short to medium term, it is expected that the 
group will continue to trade as a going concern within the next 12 months.

25.  JSE Limited Listings Requirements
The condensed group interim financial statements have been prepared in accordance with the Listings Requirements of the JSE Limited. 

26.  Events after the reporting period
Details of the final dividend are given in Note 12.

The following non-adjusting events occurred after the reporting date and are disclosed for information purposes:
?  Subsequent to the reporting date of 30 June 2014, Exxaro entered into a binding sale and purchase agreement with Total S.A. on 
28 July 2014, subject to certain conditions precedent, for the acquisition of 100% of the issued share capital of Total Coal South 
Africa Proprietary Limited and its related export marketing rights under primary RBCT allocation. Exxaro has agreed to pay a purchase 
consideration of US$472 million and is required to provide a US$-based guarantee. As a result, R5,4 billion of Exxaro?s debt facilities 
have been ring-fenced for this guarantee.
?  On 31 July 2014 R600 million of Exxaro?s remaining revolving facility was repaid.
?  On 24 July 2014 the capital repayments on the senior loan facility was extended to January 2016.

The directors are not aware of any other significant matter or circumstance arising after the reporting period up to the date of this 
report, not otherwise dealt with in this report.

27.  Review conclusion
The reviewed condensed group interim financial statements for the six-month period ended 30 June 2014, on page 2 to 25, have been 
reviewed by the company?s external auditors, PricewaterhouseCoopers Inc, in accordance with International Standards on Reviewed 
Engagements 2410 ? "Review interim financial information performed by the Independent Auditors of the entity". The unmodified review 
conclusion is available for inspection at the company?s registered office.

28.  Corporate governance 
Detailed disclosure of the company?s application of the principles contained in the King Report on Governance for South Africa 2009 
(King III) was made in the 2013 Integrated Report and is available on the company?s website in accordance with the JSE Listings 
Requirements. Other than the appointment of Dr CJ Fauconnier to the Remuneration and Nomination Committee and the appointment of 
Mr V Nkonyeni to both the Board and the Audit Committee, no material changes have occurred since the disclosure.

29.  Mineral resources and reserves 
Other than the normal life of mine depletion there have been no material changes to the mineral reserves and resources as disclosed in 
the 2013 annual report. 

30.  Salient features1
                                                           At 30 Jun  2014           At 30 Jun  2013           At 31 Dec  2013 
Net asset value per share (Rand/share)                                  92                        88                       101 
Capital expenditure contracted relating to 
captive mines, Tshikondeni, Arnot and Matla, 
which will be financed by ArcelorMittal SA 
Limited and Eskom, respectively (Rm)                                   239                       257                       317 
Operating lease commitments (Rm)                                       146                         3                       212 
Closing share price (Rand/share)                                    138,50                    145,58                    146,46 
Market capitalisation (Rbn)                                          49,60                     52,13                     52,45 
Average Rand/US rate (spot rate)                                     10,67                      9,20                      9,62 
Closing Rand/US rate (spot rate)                                     10,58                      9,88                     10,44 

1. Non-IFRS numbers. 1.  Non-IFRS numbers.

COMMENTARY
1H14 VS 1H13 IN BRIEF

What we did well
-  Zero fatalities, record 20 months without a fatality
-  Coal production at 18,8 million tonnes
-  Coal exports of 2,7 million tonnes, up 43%
-  Grootegeluk Medupi Expansion Project shortfall income of R888 million
-  Headline earnings per share up 11% to 793 cents per share
-  Interim dividend of 260 cents per share, up 11%
-  Raised R1 billion in successful debut bond

What we continue to work on
-  Regrettable fatality on 5 July 2014
-  Lost-time injury frequency rate at 0,22 a regression of 5%

Comparability of results
Comments are based on a comparison of reviewed group condensed interim financial results and unreviewed production and sales volumes 
information for the six-month periods ended 30 June 2014 and 2013 (1H14 and 1H13), respectively, unless where specifically indicated. 

The financial results for the six-month periods ended 30 June 2014 and 2013 are not comparable due to certain key events listed in 
table 1. Where relevant, comments exclude transactions which make the results under review not comparable.

Legend
1H14  Six-month period ended 30 June 2014
2H13  Six-month period ended 31 December 2013 
1H13  Six-month period ended 30 June 2012

Table 1: Key events and transactions during the reporting periods some of which make the financial results not comparable
                 2014                              1H14                                                    2H13         1H13
                                                     Rm  AI(1)    2013                                       Rm           Rm     AI(1)
January         New Clydesdale Colliery
                operations disposal
                agreement signed
                Mayoko mining convention
                signed
June         Impairments                                          Impairments
                Pre-tax impairment of the                            Pre-tax impairment of the
                original investment including                        carrying value of property,
                goodwill, carrying value of                          plant and equipment at
                the property, plant and                              New Clydesdale Colliery                            (292)     =
                equipment and qualifying
                project costs capitalised for
                the Mayoko project as well as
                the write-off of financial
                assets                           (5 807) #
             Other                                                Other
                A loss on dilution of the                            A loss on dilution of the
                shareholding in Tronox               (29) ^          shareholding in Tronox                              (13)     *
July            Fatality at Arnot
                Announcement of the offer to
                acquire Total Coal South
                Africa subject to terms and
                conditions precedent
December                                                          Impairment reversals
                                                                     Partial pre-tax impairment
                                                                     reversal (R247 million) at:
                                                                     ? Zincor                                  98                  +
                                                                     ? New Clydesdale Colliery                149                  +
                                                                  Other
                                                                     Profit on sale of Zincor
                                                                     refinery                                 964                  ?
                                                                     Profit on dilution of the
                                                                     shareholding in Tronox                     1                  >
             Total net operating (loss)/profit                    Total net operating profit/
             impact                              (5 836)          (loss) impact                             1 212       (305)

Explanatory notes
(1) AI ? Adjustment indicator in the commentary where applicable


SAFETY, HEALTH, ENVIRONMENT AND COMMUNITY
On 30 June 2014 Exxaro achieved a record uninterrupted 20 months without a fatality. Regrettably on 5 July 2014, Exxaro recorded a 
fatality at Arnot mine in Mpumalanga when an employee, Mr Solomon Latebotse Mashigo, was fatally injured by a rock that slid from a 
continuous miner. The incident is being investigated by the Department of Mineral Resources (DMR) Mpumalanga. Exxaro extends sincere 
condolences to the family, colleagues and friends of Mr Mashigo. This fatality follows Exxaro?s 2013 achievement of a full year without 
a fatality, and we remain committed to our goal of zero harm.

For the six-month period under review a lost-time injury frequency of 0,22 was recorded, marginally higher than the 0,21 recorded in 
June 2013. Twenty-two lost-time injuries were reported for the review period compared to 21 in the corresponding period in 2013. Exxaro 
will continue to roll-out safety improvement plans, which include the Global Mining Industry Risk Management and Safety Health 
Environment Representative Empowerment programmes, to further raise awareness of safety risks. 

Nineteen cases of occupational diseases were reported in the review period compared to 46 in the corresponding period in 2013, a 
decline of 59%. This includes seven cases of tuberculosis (18 in 2013), six cases of pneumoconiosis (23 in 2013) and four cases of 
noise-induced hearing loss (the same as in 2013). During the period, there was a 46% (211 enrolments) increase in the number of 
employees enrolled on the HIV/Aids programme compared to 456 in the corresponding period in 2013. The chronic disease campaign was 
launched at the company?s annual Safety Indaba. During the period, 18 new cases of diabetes, 45 new cases of hypertension and one 
epilepsy case were diagnosed. 

Water is crucial to the sustainability of our business and the company implements a holistic programme to manage water-related risks, 
minimise impact and operate efficiently using water-reduction plans and recycling procedures. Group-wide water conservation plans 
aligned to the national water management strategy will be finalised in the first quarter of 2015. Two scheduled water treatment plants 
at the Matla and North Block Complex mines, will now be delivered in the third quarter of 2014 and first quarter of 2016, respectively, 
due to delays in the approval of an integrated water use licence. Potential post mine-closure affected-water treatment liabilities will 
be included in financial provisions at all mines in future as required by the water use licence. 

For the six months to 30 June 2014, the Exxaro Chairman?s Fund contributed R55 million (1H13: R23 million) towards the group?s local 
economic development projects. Exxaro?s focus areas for community development are education, infrastructure, skills development, 
agriculture and enterprise development. For example, to improve the quality of education in labour-sending communities, the Inyanda 
mine launched a programme where extra classes are provided to high school learners on Saturdays and during school holidays. The project 
was officially launched at Pine Ridge combined school and aimed at improving the pass rates of students by focusing on maths, science, 
English and life orientation. This initiative is also expected to assist in providing a steady throughput of local learners suitable 
for Exxaro?s bursary and artisan programmes. Exxaro provides teaching aids for teachers along with study materials, a science 
laboratory, transportation and nutrition. The Klarinet community will also benefit from this initiative as local suppliers are used to 
provide supporting services and six new permanent jobs have been created. 

MINERAL RESOURCES AND RESERVES
There have been no material changes to the mineral reserves and resources as disclosed in the 2013 Exxaro integrated report (summarised 
in the integrated report with a full report available on www.exxaro.com). Appointed competent persons initiate the update of models 
that will support the changes in annual mineral reserve and resource statements, as applicable. Internal and external reviews, which 
form part of the Exxaro resource and reserve reporting calendar, are scheduled for the second half of 2014. 

Exploration drilling at the Grootegeluk, Leeuwpan, Matla and Arnot coal mines to enhance the level of geological confidence is 
progressing on schedule. Initiatives to refine resource reconciliation processes are ongoing and results are expected to assist in the 
optimal extraction of coal resources at the North Block Complex and Leeuwpan mines where selective mining of various coal seams is a 
priority. 

The 2014 drilling programme, which was focused on enhancing geological and metallurgical information on the Mayoko project, has been 
suspended.

The application for the Paardeplaats mining right (an extension of the North Block Complex mine) has been resubmitted due to an 
administrative error, while the approval of the integrated water use licence at the Belfast mining right is progressing well. 
A section 11 application has been submitted to the Department of mineral resources in relation to the proposed sale of the 
New Clydesdale Colliery mine. The outstanding mining right executions of Matla and Tshikondeni mines are expected to be finalised in 
the second half of 2014.

OPERATIONAL AND FINANCIAL EXCELLENCE

GROUP FINANCIAL RESULTS
Revenue 
Group consolidated revenue increased by 19% to R7 412 million compared to R6 245 million in the six-month period ended 30 June 2013, 
but remained stable compared to the R7 323 million recorded in the second half of 2013, predominantly due to the increase in export 
sales.

Table 2: Group segment results

                                                      Revenue                                  Net operating profit/(loss) 
                                     6 months        6 months    12 months               6 months            6 months     12 months 
                                       ended            ended        ended                  ended               ended        ended
                                      30 Jun           31 Dec       31 Dec                 30 Jun              31 Dec       31 Dec
                               2014         2013         2013         2013             2014         2013         2013         2013 
Rm                         Reviewed     Reviewed     Reviewed      Audited         Reviewed     Reviewed     Reviewed      Audited 
Coal                          7 312        6 149        7 213       13 362            1 836        1 031        1 738        2 769 
- Tied(1)                     2 094        1 782        2 135        3 917              208          210            5          215 
- Commercial(2)               5 218        4 367        5 078        9 445            1 628          821        1 733        2 554 
Ferrous                          71           55           65          120           (5 917)         (44)         (97)        (141)
- Iron ore(3)                                                                        (5 821)          (1)         (26)         (27)
- Alloys                         71           55           65          120              (96)         (26)         (35)         (61)
- Other(4)                                                                              (17)         (36)         (53)
Other                            29           41           45           86                1          (70)       1 008          938 
- Base metals(5)                                                                         32          113          145 
- Other(6)                       29           41           45           86                1         (102)         895          793 
Total                         7 412        6 245        7 323       13 568           (4 080)         917        2 649        3 566

(1)  Tied operations refer to mines that supply their entire production to either Eskom or ArcelorMittal South Africa Limited in terms 
     of contractual agreements.
(2)  Includes the New Clydesdale Colliery pre-tax impairment loss of R292 million recorded in the six-month period ended 30 June 2013 
     as well as the subsequent partial impairment loss reversal recorded during the six-month period ended 31 December 2013. This 
     resulted in a net impairment loss of R143 million recorded during the 12 months ended 31 December 2013.
(3)  Includes the pre-tax impairment of the original investment including goodwill, carrying value of the property, plant and equipment 
     and qualifying project costs capitalised for the Mayoko project of R 5 760 million as well as the write-off of financial assets 
     totalling R47 million recorded in the six-month period ended 30 June 2014.
(4)  Mainly made up of ferrous head office costs not directly attributable to the operation at Mayoko and as such could not be 
     capitalised with the development of the project.
(5)  Includes a Zincor refinery partial impairment loss reversal of R98 million recorded during the six-month period ended 31 December 
     2013.
(6)  Includes a profit on the sale of subsidiaries of R964 million on the sale of Base Metals Proprietary Limited (which held the 
     Zincor refinery) recorded during the six-month period ended 31 December 2013.

Net operating profit 
Group consolidated net operating profit was R557 million higher at R1 774 million#^ (1H13: R1 218 million=*, 2H13: R1 452 million+?>) 
after excluding items noted in the ?comparability of results? section above. The exclusion is the responsibility of the group?s board 
of directors and has been presented to illustrate the impact of the items noted in the ?comparability of the results? section above and 
hence may not fairly present the group?s operational results. This exclusion has not been reviewed nor reported on by the group?s 
external auditors. This adjusted net operating profit represented a 46% increase on 1H13 and a 22% increase on 2H13, mainly due to a 
higher net operating profit contribution from the coal business. 

Other net operating profit improved from an operating loss of R70 million recorded in 1H13 to a marginal net operating profit of 
R1 million in 1H14. This was mainly due to lower corporate costs (R61 million) recorded in 1H14.

An average exchange rate of R10,83 to the US dollar was realised for the six-month period ended 30 June 2014 compared to R9,19 in 2013 
(2H13: R9,70).

Earnings
Attributable losses to owners of the parent, which include Exxaro?s equity-accounted investments in associates and joint ventures, were 
R2 441 million (1H13: earnings of R2 244 million; 2H13: earnings of R3 973 million) or 688 cents loss per share, down 209% from 1H13 
(down 161% from 2H13) mainly due to the non-recurring impairment loss of the Mayoko project in 2014.

Headline earnings, which exclude the impact of any impairment and partial impairment reversal as well as profits realised on the sale 
of discontinued subsidiaries and other non-core assets, were R2 814 million (1H13: R2 529 million, 2H13: R2 665 million) or 793 cents 
per share (1H13: 712 cents per share; 2H13: 751 cents per share), representing an 11% increase on 1H13 (6% on 2H13) headline earnings 
per share.

Cash flow
Cash generated from operations was R1 555 million (1H13: R602 million; 2H13: R1 557 million) for the group. This was primarily used to 
fund net financing charges of R136 million (1H13: R128 million; 2H13: R64 million), taxation payments of R31 million 
(1H13: R117 million; 2H13: R41 million) and to pay dividends of R1 126 million (1H13: R546 million; 2H13: R841 million). 

A total of R1 578 million (1H13: R2 403 million; 2H13: R2 361 million) was spent on acquiring property, plant and equipment (capital 
expenditure), of which R1 076 million (1H13: R1 826 million; 2H13: R1 681 million) was invested in new capacity (expansion capital), 
with R502 million (1H13: R577 million; 2H13: R680 million) applied to sustaining and environmental capital. Of the funds spent on new 
capacity, R134 million (1H13: R850 million; 2H13: R962 million) was for the Grootegeluk Medupi Expansion Project (GMEP), R60 million 
(1H13: R237 million; 2H13: R122 million) was for Grootegeluk backfill and R456 million (1H13: R854 million, 2H13: R759 million) for the 
Mayoko project, which was subsequently impaired. 

After the receipt of dividends of R2 083 million (1H13: R1 218 million; 2H13: R2 023 million), primarily from Sishen Iron Ore Company 
Proprietary Limited and Tronox, as well as the outflow associated with capital expenditure, the group had  net cash inflow before 
financing activities of R747 million (1H13: R1 429 million outflow; 2H13: R371 million inflow) for the review period. Net debt at 
30 June 2014 decreased to R2 653 million (1H13: R3 677 million; 2H13: R3 377 million), reflecting a net debt to equity ratio of 8% 
(1H13: 12%; 2H13: 9%).

Funding
Exxaro raised R1 billion in its debut bonds against an oversubscribed order book of R5 billion during the period under review. 
This transaction marked Exxaro?s entrance to the bond market and established a new source of financing for the group. Two floating-rate 
bonds were on offer, a three-year bond and a five-year bond. Both bonds received strong investor support, allowing Exxaro to issue the 
full targeted R1 billion at pricing levels better than the initial price guidance. The bonds were issued under Exxaro?s new R5 billion 
domestic medium-term note programme listed on the interest rate market of the Johannesburg Stock Exchange Limited (JSE Limited or JSE). 
The debut bond will support Exxaro?s strategy of diversifying sources of funding to optimise its portfolio.


COAL COMMODITY BUSINESS

Trading conditions were challenging in 2014 with average export API4 coal index prices dropping from US$83 per tonne at the beginning 
of January to a low of US$74 per tonne in June, averaging the six-month period at US$77 per tonne. Exxaro realised an average export 
price of US$68 per tonne in 2014 compared to US$82 per tonne in 1H13. This was mainly due to the fact that a higher weighting of low-
value products is included in the period under review compared to 2013, resulting in the group realising an overall lower export price.

Export volumes increased from the corresponding period in 2013. This was enhanced by 490kt (90%) higher buy-ins from Mafube and other 
suppliers.

Demand in the domestic market for metallurgical, power station and steam coal was lower than the corresponding period in 2013. 
The demand from the ferroalloys market has recovered compared to 2013, resulting in Exxaro returning to full production on its semi-
coke production plant.

Production and sales volumes 
Overall coal production volumes (excluding buy-ins from Mafube and other external suppliers) were in line with 1H13, although sales 
were 766kt (4%) higher.

Metallurgical coal
Grootegeluk metallurgical coal production was 214kt (23%) higher, mainly due to an initiative to fill an increased number of trains 
allocated by Transnet Freight Rail. Grootegeluk sales to ArcelorMittal South Africa increased by 11kt (2%). Tshikondeni production 
decreased by 71kt as the mine ramps down to closure in December 2014, when it is expected to reach its end of life. As a result, sales 
to ArcelorMittal South Africa Limited decreased by 28kt. 

Thermal coal
Power station coal production from the tied mines was 361kt (6%) higher compared to 1H13. Matla production was 384kt (8%) higher, 
mainly due to improved cutting rates at the short walls as well as timing of short wall moves. Difficult geological conditions resulted 
in 23kt (3%) lower production at Arnot.

The commercial mines? power station coal production was 311kt (3%) lower than 1H13, mainly reflecting a cut-back in production at 
Grootegeluk as a result of the lower burn rate at Matimba power station due to shuts on units and stacker/reclaimer problems. Lower 
demand from Matimba resulted in Grootegeluk sales decreasing by 391kt (6%). At Leeuwpan production increased by 257kt (23%) on higher 
yields achieved by the crush and screen plant, while sales increased 198kt (22%) due to higher customer demand. Production decreased 
278kt (18%) at North Block Complex due to breakdowns, blockages and in-pit water issues. North Block Complex sales were 180kt (13%) 
lower mainly due to the contractual sales limitation agreement (200kt limit per month) with Eskom implemented in 1H14. During the 
review period, 341kt were exported via the Maputo and Richards Bay Coal Terminal harbours.

Table 3: Unreviewed coal production and sales volumes

                    Production                     Sales 
                      6 months                  6 months    12 months        6 months                  6 months    12 months 
                         ended                     ended        ended           ended                     ended        ended 
                        30 Jun                    31 Dec       31 Dec          30 Jun                    31 Dec       31 Dec 
(000 tonnes)              2014         2013         2013         2013            2014         2013         2013         2013 
Thermal                 17 561       17 704       18 849       36 553          18 462       17 902       19 957       37 859 
- Tied(1)                6 001        5 640        6 126       11 766           5 997        5 643        6 125       11 768 
- Commercial: 
domestic                11 560       12 064       12 723       24 787          10 238       10 634       11 570       22 204 
- Commercial: 
export                                                                          2 227        1 625        2 262        3 887 
Metallurgical            1 238        1 095        1 156        2 251           1 348        1 142        1 073        2 215 
- Tied                     108          179          164          343             157          185          150          335 
- Commercial: 
domestic                 1 130          916          992        1 908             693          681          627        1 308 
- Commercial: 
export(2)                                                                         498          276          296          572 
Total coal              18 799       18 799       20 005       38 804          19 810       19 044       21 030       40 074 
Semi-coke                   63           24           67           91              65           16           81           97 
Total (excluding 
buy-ins)                18 862       18 823       20 072       38 895          19 875       19 060       21 111       40 171 
Thermal buy-ins          1 032          542          928        1 470                                                             
Total (including 
buy-ins)                19 894       19 365       21 000       40 365          19 875       19 060       21 111       40 171 

(1)  Tied operations refer to mines that supply their entire production to either Eskom or ArcelorMittal South Africa Limited in terms 
     of contractual agreements.
(2)  Exported as a steam coal product, blended at Richards Bay Coal Terminal.

Steam coal production was 193kt (7%) lower mainly due to New Clydesdale Colliery mine stoppage while Inyanda production decreased 96kt 
(10%) as a result of lower qualities on reserves mined. Domestic sales at Inyanda rose by 59kt (48%) due to higher demand while export 
sales decreased by 49kt (7%) as a result of some export product being redirected to the domestic market. Leeuwpan production increased 
by 190kt (29%) due to better production from the JIG plant and better yields achieved. Sales at Leeuwpan declined by 30kt (4%) due to 
lower customer demand. Production at Grootegeluk increased by 15kt (2%) due to good yields achieved. Domestic steam sales from 
Grootegeluk decreased by 43kt (6%) on lower demand from customers while other export sales decreased by 9kt (36%). 

Semi-coke plant production was 39kt (162%) higher mainly due to new markets and the technical repositioning of the product as semi-coke 
late in 2013 during a downturn in the ferrochrome industry where production was reduced to match demand.

Revenue
The coal business revenue of R7 312 million was 19% higher than the comparable period in 2013, mainly from the commercial mines due to 
a combination of higher export sales volumes recorded at weaker Rand and US dollar prices, higher local steam coal sales volumes 
against higher prices as well as lower power station coal sales volumes at higher prices.

Net operating profit
A 39%= increase in net operating profit to R1 836 million (at an operating margin of 25%) was recorded for the review period compared 
to the corresponding period in 2013, after the exclusion on R292 million pre-tax impairment loss recorded in 1H13 on the property, 
plant and equipment at New Clydesdale Colliery. The exclusion is the responsibility of the group?s board of directors and has been done 
to illustrate the impact of the items listed in table 1 on coal?s net operating profit in the respective periods and hence may not 
fairly present coal?s operational results. 

The 39% increase was mainly made up of higher sales volumes (R189 million), higher shortfall income received from Eskom (R243 million), 
favourable exchange rate variances due to the weakening of the Rand against the US dollar (R237 million), lower operating losses 
(R111 million) at New Clydesdale Colliery which is under care and maintenance and higher overall cost savings (R45 million). However, 
higher net operating profit was partially offset by lower sales price (R52 million) and inflationary cost pressures in electricity and 
diesel (R242 million).

Table 4: Coal segment results

                           Revenue                   Net operating profit 
                      6 months                  6 months    12 months        6 months                  6 months    12 months 
                         ended                     ended        ended           ended                     ended        ended 
                        30 Jun                    31 Dec       31 Dec          30 Jun                    31 Dec       31 Dec
                          2014         2013         2013         2013            2014         2013         2013         2013 
Rm                    Reviewed     Reviewed     Reviewed      Audited        Reviewed     Reviewed     Reviewed      Audited 
- Tied(1)                2 094        1 782        2 135        3 917             208          210            5          215 
- Commercial(2)          5 218        4 367        5 078        9 445           1 628          821        1 733        2 554 
Total                    7 312        6 149        7 213       13 362           1 836        1 031        1 738        2 769
(1)  Tied operations refer to mines that supply their entire production to either Eskom or ArcelorMittal South Africa Limited in terms 
     of contractual agreements.
(2)  Includes the New Clydesdale Colliery pre-tax impairment loss of R292 million recorded in the six-month period ended 30 June 2013 
     as well as the subsequent partial impairment loss reversal recorded during the six-month period ended 31 December 2013. This 
     resulted in a net impairment loss of R143 million recorded during the 12 months ended 31 December 2013. 

Logistics
The Transnet Freight Rail rate was at 61,3 million tonnes for 1H14, including the force majeure event in February 2014 and annual 
Transnet Freight Rail shut in May. Exxaro has used 100% of its available Richards Bay Coal Terminal entitlement as at 30 June 2014.

Markets
Demand in international coal markets is generally stable amid the global drive for energy efficiency and energy mix changes. Both 
global thermal and metallurgical markets are, however, oversupplied. This is expected to prolong the current imbalance between supply 
and demand, and pricing is forecast to be generally flat for the remainder of the year. 

Portfolio improvement

Capital expenditure and project pipeline
Following the delays in the construction of the Medupi power station, Exxaro and Eskom continue to engage in order to reach an amicable 
agreement on a revised Grootegeluk Medupi Expansion Project ramp-up profile in terms of the Medupi coal supply agreement (CSA). 
In January 2014, Eskom formally notified Exxaro that it would not be able to begin offtake from 1 February 2014 as agreed in the CSA 
due to construction delays. The terms and conditions of the CSA remain in full force until a revised agreement is reached. It is 
envisaged that such an agreement will be reached in the form of an addendum to the agreement which will be submitted for approval by 
the respective boards of directors of Exxaro and Eskom in August 2014. Coal dispatches to Medupi power station began in June 2014. 
Total project costs remain estimated at R10,2 billion.

Thabametsi is a prospective multi-product greenfields opencast mine adjacent to Grootegeluk in the Waterberg, Limpopo. Phase 1 
development of the mine is expected to coincide with the 600MW coal-fired base-load independent power producer (IPP) power station 
project, owned and developed by GDF SUEZ. Thabametsi mine will supply approximately 3,5Mtpa of run-of-mine coal to the power station at 
full production. The prefeasibility study was completed in the second quarter of 2014 for the first-phase development of the Thabametsi 
mine. A bankable feasibility study will begin in the third quarter of 2014 and is expected to be completed by mid-2015. 

The Belfast project is a greenfields opencast mine development in Mpumalanga. The project encompasses one of the last high-quality coal 
reserves in the province and presents Exxaro with an opportunity for excellent returns. The estimated annual production from the mine 
is 2,2Mpta of A-grade export coal and 0,5Mtpa of power station coal over a 16-year period post commissioning which is scheduled for 
2H17. The mining right was awarded in 2013. In June 2014, the Exxaro board approved R3,8 billion for the project development with 
R3,6 billion to be spent only once all required licences and regulatory approvals are obtained. 

Moranbah South is a prospective greenfields mine (50:50 joint venture with Anglo American plc) in Queensland, Australia, with estimated 
production of 10 million tonnes per annum of hard coking coal through a dual long-wall operation. Project development has been deferred 
until 2018/2019. In the meantime, the environmental impact study is progressing well with the final response to public submissions 
submitted in May 2014. The environmental authorisation is expected to be granted in the second half of 2014.

The prefeasibility study of the semi-coke two-retort expansion (a 50% expansion of the existing reductants business) was concluded in 
1H14. A bankable feasibility study commenced in June 2014. 

As previously announced, Exxaro continues to engage with Universal Coal Development VIII Proprietary Limited on the attainment of all 
regulatory approvals as well as the fulfilment of the terms and conditions precedent to the sale of New Clydesdale Colliery.

FERROUS COMMODITY BUSINESS

Production and sales volumes
Changes in the product mix at FerroAlloys in 2014 resulted in an overall production increase of 996 tonnes (37%) from the corresponding 
period in 2013. The change in the product mix reflects higher demand for fine ferrosilicon from Sishen Iron Ore Company Proprietary 
Limited.

Sales volumes rose by 342 tonnes (12%) from the corresponding period in 2013 due to higher production. Coarse ferrosilicon sold in 2014 
is lower than its production as portions of the coarse ferrosilicon produced have been mixed with the fine and blended ferrosilicon.

Revenue and net operating loss
FerroAlloys remains the only contributor of revenue to our ferrous business. Revenue increased by R16 million (29%) for the review 
period from the corresponding period in 2013 due to higher demand from Sishen Iron Ore Company Proprietary Limited.

Net operating losses increased by R66 million# (excluding the impact of the pre-tax impairment loss (R5 760 million) and write-off of 
financial assets (R47 million) recorded for the Mayoko project) for the review period compared to the R44 million losses in the 
corresponding period in 2013. The exclusion is the responsibility of the group?s board of directors and has been done to illustrate the 
impact of the items listed in table 1 on Ferrous?s net operating loss in the respective periods and hence may not fairly present the 
Ferrous?s operational results. The increase in the net operating loss was mainly due to higher operating costs from AlloyStream 
(R19 million), and an increase in corporate costs (R29 million). 

Table 5: Ferrous segment results

                           Revenue                     Net operating loss 
                      6 months                  6 months    12 months        6 months                  6 months    12 months 
                         ended                     ended        ended           ended                     ended        ended 
                        30 Jun                    31 Dec       31 Dec          30 Jun                    31 Dec       31 Dec
                          2014         2013         2013         2013            2014         2013         2013         2013 
Rm                    Reviewed     Reviewed     Reviewed      Audited        Reviewed     Reviewed     Reviewed      Audited 
- Iron ore(1)                                                                  (5 821)          (1)         (26)         (27)
- Alloys                    71           55           65          120             (96)         (26)         (35)         (61)
- Other(2)                                                                                     (17)         (36)         (53)
Total                       71           55           65          120          (5 917)         (44)         (97)        (141)

(1)  Includes the pre-tax impairment of the original investment including goodwill, carrying value of the property, plant and equipment 
     and qualifying project costs capitalised for the Mayoko project of R5 760 million as well as the write-off of financial assets 
     totalling R47 million recorded in the six-month period ended 30 June 2014.
(2)  Mainly made up of ferrous head office costs not directly attributable to the operation at Mayoko and as such could not be 
     capitalised with the development of the project. 

Portfolio improvement

Capital expenditure and project pipeline
In January 2014, the mining convention was signed by the government of the Republic of the Congo, along with rail and port framework 
agreements for the development of a two to 10 million tonnes per annum Mayoko project. Capital expenditure in the review period to 
develop the project was R456 million, bringing the total spent since acquisition to R2,5 billion.

A concept study on a revised 12 million tonnes per annum Mayoko project was concluded in June 2014. However, to date, Exxaro has not 
succeeded in concluding definitive port and rail agreements for this project as anticipated and communicated to the market in the 
results announcement on 6 March 2014. As a result of these delays as well as higher project development costs indicated by the concept 
study, Exxaro has impaired the investment in the Mayoko project. The impact of this decision was a pre-tax write-off of an amount up to 
the original acquisition cost as well as project-related costs capitalised to date amounting to R5 807 million.

Exxaro continues to actively liaise with the government of the Republic of the Congo on the conclusion of the port and rail agreements 
before a final decision can be made on any future pre-feasibility studies. 

EQUITY-ACCOUNTED INVESTMENTS

Overall equity-accounted investment income declined by 25% to R1 515 million. Equity-accounted income from Exxaro?s 19,98% shareholding 
in Sishen Iron Ore Company Proprietary Limited (SIOC) decreased 19% compared to the six-months period ended 30 June 2013, mainly due to 
a decrease in export iron ore prices and a weaker Rand/US dollar exchange rate. 

Exxaro?s share in Tronox?s losses was R304 million for the review period (1H13: R168 million; 2H13: R470 million), mainly as a result 
of lower mineral sands and pigment prices in 2014 as well as purchase price accounting adjustments recorded. 

Exxaro?s share of Black Mountain?s equity-accounted income declined by 12% to R46 million mainly due to an increase in production 
costs.

Equity-accounted income from Mafube increased by 36% due to higher sales prices paid by the JV partners on export coal. 

Cennergi equity-accounted losses reduced by 32% mainly as a result of the foreign exchange contracts entered into to hedge future euro 
payments during the construction phase of its renewable energy projects. 

Table 6: Equity-accounted investments
Equity-accounted income in profit or loss                 Exxaro?s share of dividends received 
                      6 months                  6 months    12 months        6 months                  6 months    12 months 
                         ended                     ended        ended           ended                     ended        ended 
                        30 Jun                    31 Dec       31 Dec          30 Jun                    31 Dec       31 Dec
                          2014         2013         2013         2013            2014         2013         2013         2013 
Rm                    Reviewed     Reviewed     Reviewed      Audited        Reviewed     Reviewed     Reviewed      Audited 
SIOC(1)                  1 711        2 120        2 046        4 166           1 736          915        1 749        2 664 
Tronox(1)                 (304)        (168)        (470)        (638)            274          243          264          507 
Black Mountain              46           52           25           77              71           58                        58 
Mafube                     109           80           51          131                                                        
Cennergi                   (47)         (69)         (34)        (103)                                                       
South Dunes Coal 
Terminal                                              (2)          (2)                                                            
Total                    1 515        2 015        1 616        3 631           2 081        1 216        2 013        3 229

(1)  Includes Exxaro?s effective shareholding in SIOC and Tronox?s restatement of R71 million and R27 million respectively, which were 
     fully accounted for in 2013 as the amount were not material to restate Exxaro 2012 numbers.

OTHER PORTFOLIO IMPROVEMENT 

ENERGY CAPITAL EXPENDITURE AND PROJECT PIPELINE

Construction on the 134MW Amakhala Emoyeni wind farm project began in June 2014 and is expected to be completed in the second quarter 
of 2016. Commercial operation is planned for the third quarter of 2016.

Construction on the 95MW Tsitsikamma Community Development wind farm project is due to begin in September 2014 and should be completed 
in the fourth quarter of 2015. Commercial operation is planned for the first quarter of 2016. 

The underground coal gasification concept study for the generation of electricity was completed in the first half of 2014. The planning 
and the concept study augmented with a high-level update of the potential for gas-to-liquids facilities, after which it will be 
considered to advance to the pre-feasibility study.

OUTLOOK

Global economic growth improved gradually during the review period, although the performances of major world economies were mixed. 
US economic growth contracted significantly in the first quarter of 2014, mainly due to adverse weather, but economic activity bounced 
back in the second quarter and is expected to maintain its momentum into the second half of 2014. The deceleration in China?s economic 
growth was evident in the first half of 2014 with the construction sector being one of the most affected. However, some measures to 
cushion the broad investment slowdown were introduced. In Europe, business and consumer confidence continued an improving trend.

South Africa?s economic growth outlook remains subject to a number of headwinds ? prolonged strikes, electricity supply constraints, 
low business and consumer confidence and higher consumer debt levels. In addition, gross domestic product contracted by 0,6% in the 
first quarter of 2014 with risks of tighter monetary policy due to a weak currency and accelerated inflationary pressures. The recent 
downgrades by credit rating agencies are testimony to current economic challenges for South Africa.

The global macro-economic and mineral commodity environment remains challenging. Against this background, Exxaro is optimistic about 
prospects for the second half of 2014.

The second half of 2014 is expected to see final coal delivered from the Tshikondeni hard coking coal mine to ArcelorMittal South 
Africa Limited as the mine will come to the end of its life. Power station coal demand is expected to increase. Demand in the semi-coke 
market segment is expected to remain strong as domestic ferrochrome and ferromanganese producers remain globally competitive. However, 
the risk in this segment remains the availability of electricity.

Coal export volumes are expected to be similar to the first half of 2014. Although Transnet Freight Rail performance to Richards Bay 
Coal Terminal was affected in the first half of 2014 by the power outage at the terminal as well as the annual coal line maintenance 
shut, it is, however, making good progress in ramping up rail performance of the coal line. 

Demand in international thermal and coking coal markets is stable and growing in some regions. Due to the international oversupply of 
both thermal and coking coal, coal prices are expected to remain under pressure for the rest of the year as there are still signs of 
additional supply coming onto the market. 

During the first half of 2014, the iron ore market experienced a fairly rapid shift as new, lower cost Australian supply come on-
stream. As a result, price supportive Chinese production is expected to continue during the second half of 2014. However, as 
uncompetitive supply is displaced, the supply-demand balance is expected to limit any further significant price falls in the 
medium term.

CHANGES TO THE BOARD AND AUDIT COMMITTEE

Dr CJ Fauconnier was appointed as a member of the Audit Committee of the board with effect from 29 January 2014.

Mr JJ Geldenhuys retired as an independent non-executive director with effect from 27 May 2014. Mr NL Sowazi resigned from the board 
with effect from 3 June 2014. The board expressed its sincere appreciation to both directors for their respective contributions during 
their tenures. Subsequent to Mr Sowazi?s resignation, Mr V Nkonyeni has been appointed as an independent non-executive director with 
effect from 3 June 2014. The board welcomes Mr Nkonyeni.

INTERIM DIVIDEND

Notice is given that a gross interim cash dividend, number 23 of 260 cents (2013: 235 cents) per share, for the six-month period ended 
30 June 2014 has been declared, payable to shareholders of ordinary shares. No secondary tax on companies (STC) credits are available 
for offsetting against the dividend tax, while total STC credits available for the interim dividend number 21 amounted to 
R1 566 million, representing 54,51893 cents per share. The gross local dividend is 260 cents per share for shareholders exempt from 
dividend tax. The dividend declared will be subject to a dividend withholding tax of 15% for all shareholders who are not exempt from 
or do not qualify for a reduced rate of withholding tax. Although the local dividend rate was 15% for the corresponding period in 2013, 
no tax was due as a result of STC credits used. The net local dividend is 221 cents per share payable to shareholders who are subject 
to withholding tax at a rate of 15%. The withholding tax amounts to 39 cents per share (2013: Zero cents per share). The number of 
ordinary shares in issue at the date of this declaration is 358 115 505 (2013: 358 061 205). Exxaro?s tax reference number is 
9218/098/14/4. 

The salient dates on payment of the interim dividend are:

Last day to trade cum dividend on the JSE         Friday, 5 September 2014
First trading day ex dividend on the JSE          Monday, 8 September 2014
Record date                                       Friday, 12 September 2014
Payment date                                      Monday, 15 September 2014

No share certificates may be dematerialised or rematerialised between Monday, 8 September 2014 and Friday, 12 September 2014, both days 
inclusive. Dividends for certificated shareholders will be transferred electronically to their bank accounts on payment date. 
Shareholders who hold dematerialised shares will have their accounts at their central securities depository participant (CSDP) or 
broker credited on Monday, 15 September 2014.

On behalf of the board:
Len Konar         Sipho Nkosi                    Wim de Klerk 
Chairman          Chief Executive Officer        Finance Director

20 August 2014



CORPORATE INFORMATION

Registered Office                      Transfer Secretaries
Exxaro Resources Limited               Computershare Investor 
Roger Dyason Road                      Services Proprietary Limited
Pretoria West, 0183                    Ground Floor
Tel no +27 12 307 5000                 70 Marshall Street
Fax no +27 12 323 3400                 Johannesburg, 2001
                                       PO Box 61051
                                       Marshalltown, 2107

This report is available at:  www.exxaro.com  

Directors: Dr D Konar*** (Chairman), SA Nkosi* (Chief Executive Officer), WA de Klerk*(Finance Director), S Dakile-Hlongwane***, 
Dr CJ Fauconnier***, V Nkonyeni***, NB Mbazima**+, VZ Mntambo**, RP Mohring***, Dr MF Randera**, J van Rooyen***, D Zihlangu ***

*   Executive 
**  Non-executive 
*** Independent non-executive 
+   Zambian

Prepared under supervision of: WA de Klerk, CA(SA)

Group company secretary: CH Wessels

Investor relations: M Mthenjane (+27 12 307 7393)

Sponsor: Deutsche Securities (SA) Proprietary Limited (+27 11 775 7000)

Registration number: 2000/011076/06

JSE share code: EXX

ISIN: ZAE000084992

ADR code: EXXAY
(Exxaro or the company or the group)

If you have any queries about your shareholding in Exxaro Resources Limited, please contact the transfer secretaries at +27 11 370 5000.

21 August 2014

Date: 21/08/2014 07:05:00 Supplied by www.sharenet.co.za                     
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