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Exxaro Resources Limited - Reviewed Condensed Group Financial Statements For The Year Ended 31 December 2014

Release Date: 05/03/2015 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 financial statements and unreviewed production and sales volumes information
for the year ended 31 December 2014


Salient features   

- Regrettable fatality on 5 July 2014  
- Maintained lost-time injury frequency rate (LTIFR) at 0,19 
  40% below coal industry average 
- Coal production volumes at 39,1 million tonnes, up 1%
- Coal exports at 5,3 million tonnes, up 19% 
- Headline earnings per share of 1 372 cents, down 6%  
- Final dividend of 210 cents per share, total dividend of 470 cents per share, down 15%   


Condensed group statement of comprehensive income

                                                                               2014        2013       
                                                                           Reviewed     Audited       
For the year ended 31 December                                                   Rm          Rm       
Revenue                                                                      16 401      13 568       
Operating expenses (note 5)                                                 (15 197)    (12 576)       
Operating profit                                                              1 204         992       
Other income (note 6)                                                         1 466       1 594       
Impairment charges of non-current assets (note 7)                            (5 962)       (143)       
Net operating (loss)/profit                                                  (3 292)      2 443       
Finance income (note 8)                                                          80          81       
Finance costs (note 8)                                                         (183)       (367)       
Income from financial assets                                                      9          12       
Share of income from equity-accounted investments (note 9)                    2 515       3 631       
(Loss)/profit before tax                                                       (871)      5 800       
Income tax expense                                                              (13)       (645)       
(Loss)/profit for the year from continuing operations                          (884)      5 155       
Profit for the year from discontinued operations (note 10)                                1 049       
(Loss)/profit for the year                                                     (884)      6 204       
Other comprehensive income (OCI), net of tax                                  1 190       2 640       
Items that will not be reclassified to profit or loss:                         (316)        150       
Share of comprehensive (loss)/income of equity-accounted investments           (316)        150       
Items that may be subsequently reclassified to profit or loss:                1 506       2 490       
Unrealised gains on translating foreign operations                              224         537       
Revaluation of available-for-sale financial assets                              345         100       
Share of comprehensive income of equity-accounted investments                   937       1 853       
Total comprehensive income for the year                                         306       8 844       
(Loss)/profit attributable to:                                                                        
Owners of the parent                                                           (883)      6 217       
- continuing operations                                                        (883)      5 168       
- discontinued operations                                                                 1 049       
Non-controlling interests                                                        (1)        (13)       
- continuing operations                                                          (1)        (13)       
(Loss)/profit for the year                                                     (884)      6 204       
Total comprehensive income/(loss) attributable to:                                                    
Owners of the parent                                                            307       8 854       
- continuing operations                                                         307       7 805       
- discontinued operations                                                                 1 049       
Non-controlling interests                                                        (1)        (10)       
- continuing operations                                                          (1)        (10)          
Total comprehensive income for the year                                         306       8 844       

                                                                               2014        2013   
                                                                           Reviewed     Audited   
For the year ended 31 December                                                cents       cents
Attributable (losses)/earnings per share                                                
Aggregate                                                                             
- basic                                                                        (249)      1 751 
- diluted                                                                      (248)      1 746 
Continuing operations                                                                           
- basic                                                                        (249)      1 456 
- diluted                                                                      (248)      1 452 
Discontinued operations                                                                         
- basic                                                                                     295 
- diluted                                                                                   294 
Headline earnings/(losses) per share                                                                
Aggregate                                                                                         
- basic                                                                       1 372       1 463   
- diluted                                                                     1 368       1 459   
Continuing operations                                                                             
- basic                                                                       1 372       1 470   
- diluted                                                                     1 368       1 466   
Discontinued operations                                                                           
- basic                                                                                      (7)   
- diluted                                                                                    (7)   
Refer to note 11 for details regarding the number of shares.                                      


Reconciliation of group headline earnings

                                                                               Gross       Tax        Net   
                                                                                  Rm        Rm         Rm   
For the year ended 31 December 2014 (Reviewed)                               
Loss attributable to owners of the parent                                                            (883)   
Adjusted for:                                                                                               
- IFRS 10 Loss on disposal of subsidiary                                          28                   28   
- IAS 16 Net losses on disposal of property, plant                           
  and equipment                                                                  27        (6)        21   
- IAS 2 Gains on translation differences recycled to                        
  profit or loss on the liquidation of a foreign subsidiary                     (47)                 (47)   
- IAS 28 Loss on dilution of investment in associates                             58                   58   
- IAS 28 Share of associates? separate identifiable remeasurements               296       (18)       278   
- IAS 36 Impairment of property, plant and equipment                           4 740      (552)     4 188   
- IAS 36 Impairment of intangible asset                                          202                  202   
- IAS 36 Impairment of goodwill acquired in a business combination           
  in terms of IFRS 3                                                           1 020                1 020   
- IAS 38 Loss on the write-off of intangible assets                                4                    4   
Headline earnings                                                              6 328      (576)     4 869   
- continuing operations                                                                             4 869          
For the year ended 31 December 2013 (Audited)                                                               
Profit attributable to owners of the parent                                                         6 217   
Adjusted for:                                                                                               
- IFRS 10 Gain on disposal of subsidiary                                        (964)                (964)   
- IAS 16 Net losses on disposal of property, plant and equipment                   9        (4)         5   
- IAS 28 Loss on dilution of investment in associates                             12                   12   
- IAS 28 Share of associates? separate identifiable remeasurements              (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 write-off of intangible assets                                2                    2   
Headline earnings                                                             (1 010)      (13)     5 194   
- continuing operations                                                                             5 218   
- discontinued operations                                                                             (24)   


Condensed group statement of financial position
                                                         
                                                             2014        2013   
                                                         Reviewed     Audited   
At 31 December                                                 Rm          Rm   
ASSETS                                                                          
Non-current assets                                         41 408      44 681   
Property, plant and equipment                              18 344      20 342   
Biological assets                                              84          72   
Intangible assets (note 13)                                    34       1 176   
Investments in associates (note 14)                        18 588      19 207   
Investments in joint ventures (note 15)                       966         861   
Financial assets (note 19)                                  2 853       2 657   
Deferred tax                                                  539         366   
Current assets                                              5 693       4 483   
Inventories                                                   998         938   
Trade and other receivables                                 2 611       2 434   
Current tax receivable                                         78          82   
Cash and cash equivalents                                   2 006       1 029   
Non-current assets held-for-sale (note 16)                    328         342   
Total assets                                               47 429      49 506   
EQUITY AND LIABILITIES                                                          
Capital and other components of equity                                          
Share capital                                               2 409       2 396   
Other components of equity                                  6 031       4 234   
Retained earnings                                          25 985      29 668   
Equity attributable to owners of the parent                34 425      36 298   
Non-controlling interests                                                 (26)   
Total equity                                               34 425      36 272   
Non-current liabilities                                     9 182       9 157   
Interest-bearing borrowings (note 17 and 19)                2 976       3 569   
Non-current provisions                                      2 219       1 863   
Post-retirement employee obligations                          167         149   
Financial liabilities                                          88          95   
Deferred tax                                                3 732       3 481   
Current liabilities                                         3 590       3 852   
Trade and other payables                                    3 208       2 867   
Interest-bearing borrowings (note 17 and 19)                   34          31   
Current tax payable                                            27         131   
Current provisions                                            254          17   
Overdraft (note 17 and 19)                                     67         806   
Non-current liabilities held-for-sale (note 16)               232         225   
Total equity and liabilities                               47 429      49 506   


Group statement of changes in equity

                                                                     Other components of equity  
                                                        Foreign     Financial           Retirement    Available-                    Attributable to         Non-        
                                            Share      currency   instruments  Equity-     benefit      for-sale          Retained        owners of  controlling    Total 
                                          capital  translations  revaluations  settled  obligation  revaluations  Other   earnings       the parent    interests   equity 
For the year ended 31 December                 Rm            Rm            Rm       Rm          Rm            Rm     Rm         Rm               Rm           Rm       Rm       
At 1 January 2013 (Audited)                 2 374         1 211            21    1 300        (163)                (733)    24 784           28 794           12   28 806   
Profit/(loss) for the year                                                                                                   6 217            6 217          (13)   6 204   
Other comprehensive income                                  534                                              100                                634            3      637   
Share of comprehensive income of 
equity-accounted investments                              1 401           289      110         150                   (1)        54            2 003                 2 003   
Issue of share capital 1                       22                                                                                                22                    22   
Share-based payments movement                                                       83                                                           83                    83   
Dividends paid                                                                                                              (1 387)          (1 387)               (1 387)   
Acquisition of non-controlling interest                                                                             (68)                        (68)         (28)     (96)   
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 year                                                                                                             (883)            (883)          (1)    (884)   
Other comprehensive income                                  224                                              345                                569                   569   
Share of comprehensive income/(loss) of 
equity-accounted investments                                827          (194)     310        (316)          (63)    (6)        63              621                   621   
Issue of share capital 1                       13                                                                                                13                    13   
Share-based payments movement                                                     (108)                                                        (108)                 (108)   
Dividends paid                                                                                                              (2 055)          (2 055)               (2 055)   
Reclassification of equity 2                                                                                        808       (808)                                          
Disposal and liquidation of subsidiaries3                   (30)                                                                                (30)          27       (3)   
Balance at 31 December 2014 (Reviewed)      2 409         4 167           116    1 695        (329)          382             25 985           34 425                34 425   
1 Vesting of treasury shares held by Mpower 2012 to good leavers. A good leaver is a participant to a share-based 
  payment scheme whose employment has been terminated due to retrenchment, retirement, death, serious disability, 
  serious incapacity or promotion out of the relevant qualification category as defined internally by the remuneration 
  and nominations committee.   
2 Reclassification of reserves created for transactions with non-controlling interests.    
3 Included in foreign currency translations is R17 million in respect of loss on translation difference on disposal 
  of subsidiary and R47 million gain on translation difference on the liquidation of a foreign subsidiary.   
                                                                                                                
Final dividend paid per share (cents) in respect of the 2013 financial year                       315           
Dividend paid per share (cents) in respect of the 2014 interim period                             260           
Final dividend payable per share (cents) in respect of the 2014 financial year                    210  
                                                                                                                
Foreign currency translations                                                                                   
Arise from the translation of the financial statements of foreign operations within the group.                  
                                                                                                                
Financial instruments revaluations                                                                              
Comprise 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                                                                                                        
Comprise the fair value adjustments net of tax on the investments in Richards Bay Coal Terminal (RBCT) R344 million 
(2013: R54 million) and Chifeng Kumba Hongye Corporation Limited (Chifeng) R1 million (2013: R46 million) 
(refer to note 19).                                                                                                         


Condensed group statement of cash flows

                                                                                   2014        2013 1   
                                                                               Reviewed     Audited   
For the year ended 31 December                                                       Rm          Rm   
Cash flows from operating activities                                              1 660         436   
Cash generated by operations                                                      4 083       2 173   
Interest paid                                                                      (307)       (262)   
Interest received                                                                    59          70   
Tax paid                                                                           (120)       (158)   
Dividends paid                                                                   (2 055)     (1 387)   
Cash flows from investing activities                                                620      (1 480)   
Property, plant and equipment to maintain operations (note 12)                   (1 460)     (1 257)   
Property, plant and equipment to expand operations (note 12)                     (1 737)     (3 507)   
Increase in investment in intangible assets                                         (25)       (201)   
Proceeds from disposal of property, plant and equipment                               8          17   
Decrease in investment in other non-current assets                                  214         222   
Proceeds from disposal of subsidiaries                                                           87   
Increase in investment in joint ventures                                           (108)        (82)   
Income from investments in associates                                             3 719       3 229   
Dividend income from financial assets                                                 9          12   
Cash flows from financing activities                                               (604)        715   
Interest-bearing borrowings raised                                                              800   
Interest-bearing borrowings repaid                                                 (604)               
Consideration paid to non-controlling interests                                                 (96)   
Proceeds from issuance of share capital                                                          14   
Other financing activities                                                                       (3)   
Net increase/(decrease) in cash and cash equivalents                              1 676        (329)   
Cash and cash equivalents at beginning of year                                      223         553   
Translation differences on movement in cash and cash equivalents                      40          (1)   
Cash and cash equivalents at end of year                                          1 939         223   
Cash and cash equivalents                                                         2 006       1 029   
Overdraft                                                                           (67)       (806)   
Refer to note 10 for cash flows from discontinued operations. 
1 Represented between cash generated by operations and translation differences on movement in cash and cash 
  equivalents due to a reclassification of foreign currency differences not related to cash and cash equivalents.           


Notes to the reviewed condensed group financial Statements 
for the year ended 31 December 

 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 (non-controlled) markets. These reviewed condensed group 
        financial statements as at and for the year ended 31 December 2014 comprise the company and its subsidiaries 
        (together referred to as the group) and the group?s interest in associates and joint ventures.  
                                                                                                                         
 2.     Basis of accounting                                                                                                
        2.1 Statement of compliance                                                                                      
            The reviewed condensed group financial statements as at and for the year ended 31 December 2014 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 the requirements for provisional reports and the
            requirements of the Companies Act No 71 of 2008. The Listings Requirements of the JSE Limited (JSE) require 
            provisional reports to be prepared in accordance with the conceptual framework and the measurement and 
            recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting 
            Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial 
            Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial 
            Reporting.    
                          
            The reviewed condensed group 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 IFRS as issued by the International Accounting Standards Board (IASB). The reviewed condensed group 
            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 financial statements of Exxaro and its subsidiaries for the year ended        
            31 December 2014 were authorised for issue by the board of directors on 3 March 2015.                      
                                                                                                                       
        2.2 Judgements and estimates                                                                                   
            In preparing these reviewed condensed group financial statements, management made judgements, 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 judgements
            made by management in applying the group?s accounting policies and the key source of estimation uncertainty
            were similar to those applied to the group annual financial statements as at and for the year ended        
            31 December 2013.                                                                                          
                                                                                                                       
 3.     Significant accounting policies                                                                                
        The accounting policies adopted in the preparation of the reviewed condensed group financial statements are in 
        line with IFRS and 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 (where applicable). 
                                           
        The accounting standards and amendments issued to accounting standards and interpretations which are relevant
        to the group, but not yet effective at 31 December 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 31 December 2014, are described below:
                                                                                                                        
        Investment entities (amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interest 
        in Other Entities and IAS 27 Separate Financial Statements)                                                                             
        These amendments provide an exception to the consolidation requirement for entities that meet the definition      
        of an investment entity under IFRS 10. The exception 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 ?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. In addition, these amendments require disclosure of the recoverable amounts for the        
        assets or cash-generating units (CGUs) for which an impairment loss has been recognised or reversed during the    
        period. The group adopted these disclosure requirements on 1 January 2014.                                        
                                                                                                                          
 4.     Segmental information                                                                                             
        Operating segments are reported on in a manner consistent with the internal reporting provided to the chief       
        operating decision maker. The chief operating decision maker, who is responsible for allocating resources and     
        assessing performance of the reportable operating segments, has been identified as the group executive            
        committee. Operating segments reported are based on the group?s different products and operations.                
                                                                                                                          
        Total operating segment revenue, which excludes Value Added Tax (VAT), represents the gross value of goods        
        and services invoiced and includes operating revenues directly and reasonably allocable to the segments.          
        Export revenue is recorded according to the relevant sales terms, when the risks and rewards of ownership are     
        transferred.                                                                                                      
                                                                                                                          
        Segment revenue includes sales made between segments. These sales are made on a commercial basis.                 
                                                                                                                          
        Segment operating expenses, assets and liabilities represent direct or reasonably allocable operating expenses,   
        assets and liabilities.                                                                                           
                                                                                                                          
        Segment net operating profit equals segment revenue less operating segment expenses, less impairment charges,     
        plus impairment reversals.                                                                                        
                                                          
        The group has four reportable operating segments, as described below, based on the group?s strategic divisions.   
        The strategic divisions offer different products and services and are managed separately. For each of the         
        strategic divisions, the group executive committee reviews internal management reports on a monthly basis. The    
        summary below describes the activities and location of 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 and tied coal operations as well as a 50% joint venture interest in Mafube Coal Proprietary Limited 
        (Mafube). The operations produce thermal, metallurgical and semi-coking coal.                 
                                                                                                                          
        Ferrous                                                                                                           
        The ferrous operations include the group?s investment in African Iron Ore Limited (AKI) and a 19,98% equity       
        interest in Sishen Iron Ore Company Proprietary Limited (SIOC). Investments in the FerroAlloys and Alloystream?   
        operations are collectively referred to as the Alloys operations.                                                 
                                                                                                                          
        TiO2                                                                                                              
        Exxaro holds a 43,98% (2013: 44,40%) equity interest in Tronox Limited (Tronox), a 26% equity interest in each of 
        the South African-based operations, Tronox KZN Sands Proprietary Limited and Tronox Mineral Sands Proprietary         
        Limited (collectively referred to as Tronox SA) as well as a 26% members? interest in Tronox Sands Limited        
        Liability Partnership in the United Kingdom (Tronox UK).                                                          
                                                                                                                          
        Other                                                                                                             
        The other operating segment includes the 50% investment in Cennergi Proprietary Limited (Cennergi) (a joint       
        venture with Tata Power), a 26% equity interest in Black Mountain Mining Proprietary Limited (Black Mountain),    
        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    
                                                                          Tied   Commercial      Iron     Alloys                         Base         
                                                                    operations   operations       ore        Rm      Other             metals       Other       Total        
        For the year ended 31 December 2014 (Reviewed)                      Rm           Rm        Rm                   Rm       Rm        Rm          Rm          Rm          
        Total revenue                                                    4 577       11 601                 159         14                             67      16 418   
        Inter-segmental revenue                                                          (2)                           (14)                            (1)        (17)   
        External revenue                                                 4 577       11 599                 159                                        66      16 401   
        Segment net operating profit/(loss)                                319        2 978    (6 100)      (97)       (41)                (1)       (350)     (3 292)   
        External finance income (note 8)                                     4           43                                                            33          80   
        External finance costs (net of borrowing costs                                                                                           
        capitalised) (note 8)                                              (69)        (112)                                                           (2)       (183)   
        Income tax (expense)/benefit                                       (53)        (751)      624        23         90                             54         (13)   
        Depreciation and amortisation (note 5)                             (43)        (734)       (8)       (4)        (4)                           (96)       (889)   
        Impairment charge of non-current assets                                                                                                     
        (excluding financial assets) (note 7)                                                  (5 751)                  (9)                          (202)     (5 962)   
        Write-off and impairment of trade and other                                                                                                 
        receivables (note 5)                                                             (1)      (22)                                                (17)        (40)   
        Impairment charges of non-current financial assets (note 5)                               (21)                                                            (21)   
        Cash generated by/(utilised in) operations                          95        4 365       (75)      (64)      (109)                          (129)      4 083   
        Share of income/(loss) from equity-accounted investments                                                                                    
        (note 9)                                                                        268                          2 830     (568)       77         (92)      2 515   
        Capital expenditure (note 12)                                                (2 576)     (352)      (42)      (104)                          (123)     (3 197)   
        At 31 December 2014 (Reviewed)                                                                                                                                  
        Segment assets and liabilities                                                                                                                                
        Deferred tax                                                         4           41        57       123        103                            211         539   
        Investments in associates (equity-accounted) (note 14)                                                       5 422   12 809       357                  18 588   
        Investments in joint ventures (equity-accounted) (note 15)                      818                                                           148         966   
        External assets1                                                 1 883       22 075        81       124         16                267       2 562      27 008   
        Total assets                                                     1 887       22 934       138       247      5 541   12 809       624       2 921      47 101   
        Non-current assets held-for-sale (note 16)                                      303                             25                                        328   
        Total assets as per statement of financial position              1 887       23 237       138       247      5 566   12 809       624       2 921      47 429   
        External liabilities                                             1 523        3 723       139        49         73                          3 506       9 013   
        Deferred tax                                                       (71)       3 718        57         5                                        23       3 732   
        Current tax payable                                                 10            5         5                                                   7          27   
        Total liabilities                                                1 462        7 446       201        54         73                          3 536      12 772   
        Non-current liabilities held-for-sale (note 16)                                 232                                                                       232   
        Total liabilities as per statement of financial position         1 462        7 678       201        54         73                          3 536      13 004   
        1 Excluding deferred tax and investments in equity-accounted associates and joint ventures and non-current assets held-for-sale.   
                          

                                                                                 Coal                       Ferrous                TiO2           Other
                                                                             Tied   Commercial      Iron                                     Base      
                                                                       operations   operations       Ore    Alloys      Other              metals      Other       Total     
        For the year ended 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 revenue                                                                                           (21)                                       (21)   
        External revenue                                                    3 917        9 445                 120                                        86      13 568   
        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   
        External finance income (note 8)                                        4           66                                                            11          81   
        External finance costs (net of borrowing costs 
        capitalised)(note 8)                                                 (165)        (200)                                               (74)        (2)       (441)   
        Income tax (expense)/benefit                                           (9)        (745)        4        17         12                   4         72        (645)   
        Depreciation and amortisation (note 5)                                (41)        (624)       (8)       (3)        (5)                          (175)       (856)   
        Impairment (charges)/reversals of non-current assets 
        (excluding financial assets) (note 7)                                             (143)                                                98                    (45)   
        Impairment charges of trade and other receivables (note 5)                         (23)                                                           (2)        (25)   
        Cash generated by/(utilised in) operations                             75        2 072        (7)      (60)       (44)                 26        111       2 173   
        Share of income/(loss) from equity-accounted investments (note 9)                  129                          4 166      (638)       77       (103)      3 631   
        Capital expenditure (note 12)                                                   (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 14)                                                          5 523    13 325       359                 19 207   
        Investments in joint ventures (equity-accounted) (note 15)                         528                                                           333         861   
        External assets1                                                    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 16)                                         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   
        External liabilities                                                1 387        3 046       128        32         12                          4 792       9 397   
        Deferred tax                                                            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 16)                                    225                                                                       225   
        Total liabilities as per statement of financial position            1 391        6 161       729        33         52                          4 868      13 234   
        1 Excluding deferred tax and investments in equity-accounted associates and joint ventures and non-current assets held-for-sale.                 

                                                                                             Year ended 31 December   
                                                                                                  2014       2013   
                                                                                              Reviewed    Audited   
                                                                                                    Rm         Rm   
 5.    Significant items included in operating expenses   
       Depreciation and amortisation                                                               889        856   
       Net realised foreign currency exchange gains                                                (97)       (56)  
       Net unrealised foreign currency exchange (gains)/losses                                      (7)        20   
       Net (gains)/losses on derivative instruments held-for-trading                               (28)        81   
       Write-offs and impairment of trade and other receivables 1                                   40         25   
       Royalties 2                                                                                  125         8   
       Net loss on disposal of property, plant and equipment                                        27         21   
       Loss on dilution of investment in associate                                                  58         12   
       Impairment charges of non-current financial assets 3                                         21              
       Loss on disposal of subsidiary                                                               28              
       Termination benefits 4                                                                       138        19   
       1 Include trade and other receivables relating to the Mayoko iron ore project (R22 million).                          
       2 The amount paid in 2013 for royalties includes an adjustment for the prior period 
         calculations based on final SARS assessments.                           
       3 Non-current financial assets relating to the Mayoko iron ore project.           
       4 Include voluntary severance package costs incurred and accrued for.    

 6.    Other income                                                             
       Other income                                                                              1 466      1 594   
       Other income relates to shortfall income received from Eskom as a result of delays in agreed upon production 
       off-take plans.                                

                                                                                             Year ended 31 December 
                                                                                                  2014       2013   
                                                                                              Reviewed    Audited   
                                                                                                    Rm         Rm   
 7.    Impairment charges/(reversals) of non-current assets                                                         
       Mayoko iron ore project                                                                   5 208              
       Impairment of property, plant and equipment                                               4 740              
       Impairment of goodwill (note 13)                                                          1 020              
       - total impairment charges                                                                5 760              
       - net tax effect                                                                           (552)              
       Intellectual property                                                                       202              
       Impairment of intangible asset                                                              202              
       - total impairment charges (pre- and post-tax)                                              202               
       New Clydesdale Colliery (NCC) operation                                                                132   
       Impairment of property, plant and equipment                                                            292   
       Reversal of impairment of property, plant and equipment                                               (149)   
       - total impairment charges                                                                             143   
       - net tax effect                                                                                       (11)   
       Zincor                                                                                                 (98)   
       Reversal of impairment of property, plant and equipment                                                (98)   
       Net impairment charges per statement of comprehensive income                 
       (including discontinued operations)                                                       5 962         45   
       Net tax effect                                                                             (552)       (11)   
       Net effect on attributable earnings                                                       5 410         34   
       - continuing operations                                                                   5 410        132   
       - discontinued operations                                                                              (98)   
                                                                                                                          
       Mayoko iron ore project                                                                                                
       The Mayoko iron ore project is located in the Republic of the Congo (RoC) and was acquired in February 2012 
       through the acquisition of AKI. The project is reported within the iron ore operating segment which forms part 
       of the ferrous reporting segment.                                                                                         
                                                                                                                           
       After the acquisition, Exxaro aimed to secure a mining convention agreement, as well as port and rail access 
       agreements (project agreements). This included a company mining tax regime with the government of the RoC. 
       These negotiations were done simultaneously with ongoing work for: 
       - confirmation of inferred and proven resources; and
       - clearing and construction of the infrastructure required to mine the resource.                                             
                                                                                                                                     
       Based on the conceptual positive business case, a decision was taken to start the project in phases (ramping up
       to 2 million tonnes per annum (Mtpa)) as soon as the mining convention and project agreements had been finalised.              
                                                                                                                                    
       Based on the assumption that project agreements would be finalised in a reasonable timeframe, Exxaro began 
       acquiring assets (such as rolling stock, beneficiation plant, harbour cranes, etc.) and appointing people to permit
       fast-track initiation. However, the mining convention was not signed until January 2014 (effectively 10 months 
       after the original submission) and there has since been slow progress on other required project agreements, which 
       are still outstanding.                                                                                                     
                                                                                                                                  
       With the time lapse, the financial models (on a 12 million tonnes concept study level) were updated with the 
       latest assumptions on capital, operational costs, resources and long-term iron ore prices which indicated that 
       the project may not achieve Exxaro?s required hurdle rates. The major driver of the change in the returns since 
       acquisition was attributed to higher capital expenditure. At the time of finalising the revised concept study, 
       Exxaro had not yet been successful in concluding the definitive project agreements.                                              
                                                                                                                                       
       As a result of the delays in finalising these agreements, as well as higher future project development costs following 
       the outcome of the concept study, a pre-tax impairment loss of R5 803 million (R5 760 million excluding the impairment 
       of financial assets and write down of trade and other receivables), 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 costs capitalised of R1 696 million) as well as impairment and write-off of financial 
       assets amounting to R43 million in terms of IAS 39 Financial Instruments: Recognition and Measurement.     
                                                                                                                                           
       The recoverable amount, being the fair value less costs of disposal (level 3 as per IFRS 13 Fair value Measurement),
       was considered to be immaterial and the project was impaired to a recoverable amount of Rnil. This was derived using
       a discounted cash flow valuation technique (consistent with the valuation technique used on 31 December 2013) where 
       cash flow projections and a post-tax discount rate of 17% (31 December 2013: 14%) were used. The increase in the 
       discount rate is as a result of the market assumptions on risk inherent in the implementation of the project.                 

       Key assumptions made in the valuation, included the following:    31 December     31 December    
                                                                                2014            2013   
       LoM: estimated at                                                    25 years        35 years   
       Iron ore price: range                                             US$78/tonne     US$88/tonne    
                                                                                 and             and    
                                                                        US$117/tonne    US$169/tonne   
       Post-tax discount rate                                                  17,0%           14,0%   
                                                                                                         
       The values assigned to the key assumptions represented management?s best estimates with respect to its LoM and 
       operating projections, as well as pricing forecasts. The iron ore price ranges were based on the current known 
       industry trends and analysis.                                    
                                                                                                         
       The discount rate was a post-tax US-based weighted average cost of capital adjusted for various risk factors, based
       on historical data from both external and internal sources.                                    
                                                                                                         
       The decrease in the LoM to 25 years (31 December 2013: 35 years) is mainly due to the increase in annual production 
       costs, acceleration in ramp-up, lower plant yield and different ore mix, based on the most recent information 
       available.                                    
                                                                                                         
       Management has identified that a reasonably possible change in two key assumptions could cause the carrying amount
       to exceed the recoverable amount. The following table shows the amounts by which these two assumptions would need 
       to change individually for the estimated recoverable amount to be equal to the carrying amount prior to the 
       impairment:                                    
      
                                                                                               Change    
       Key assumption                                                            Unit        required   
       Post-tax discount rate                                                       %              (8)  
       Iron ore price: range                                                US$/tonne       17 and 26   
   
       Intellectual property
       Exxaro has taken the decision not to develop the underground coal gasification project in 2015. The decision is 
       based on the current economic environment and the expected capital expenditure required for the project. The licence 
       relating to this technology is not transferable and non-income generating. The licence (intangible asset) has been 
       fully impaired with a value of R202 million following the revised management intention.                                    
                                                                                                         
       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 reporting 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 31 December 2013 due to the signing of the sales agreement of the NCC 
       operation, which was concluded with Universal Coal Development VII Proprietary Limited (Universal) in January 2014. 
       As a result of the revision to the recoverable amount, a partial impairment reversal to the amount of R149 million 
       was recorded on 31 December 2013, bringing the net pre-tax impairment loss recorded to R143 million.                                    
                                                                                                         
       Zincor                                                                                            
       The 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 of Exxaro 
       Base Metals Proprietary Limited (Exxaro Base Metals), which included the Zincor assets (refer to note 10).    

                                                                             Year ended 31 December
                                                                                  2014       2013       
                                                                              Reviewed    Audited       
                                                                                    Rm         Rm       
 8.     Net financing costs                                                                             
        Finance income                                                              80         81       
        - interest income                                                           66         48       
        - finance lease interest income                                              9         11       
        - interest income from joint ventures                                        5         22       
        Finance costs (net of borrowing costs capitalised)                        (183)      (367)       
        - interest expense                                                        (323)      (329)       
        - unwinding of discount rate on rehabilitation cost                       (183)      (367)       
        - amortisation of transaction costs                                        (10)        (9)       
        - borrowing costs capitalised1                                             333        338        
        Total net financing costs                                                 (103)      (286)       
        1 Borrowing costs capitalisation rate of 6,69% (2013: 5,67%).                                   
                                                                                                        
 9.     Share of income/(loss) from equity-accounted investments                                        
        Associates                                                               2 339      3 605                          
        Listed investments                                                        (628)      (981)   
        Tronox Limited                                                            (628)      (981)       
        Unlisted investments                                                     2 967      4 586       
        SIOC                                                                     2 830      4 166       
        Tronox SA                                                                  (38)       238       
        Tronox UK                                                                   98        105       
        Black Mountain                                                              77         77       
        Joint ventures                                                             176         26       
        Mafube                                                                     267        131       
        South Dunes Coal Terminal Company SOC1 Limited (SDCT)                        1         (2)       
        Cennergi                                                                   (92)      (103)                                               
        Share of income from equity-accounted investments                        2 515      3 631       
        1 State-owned company.                                                                          
                                                                
                                                                                   At 31 December                    
                                                                                  2014       2013   
                                                                              Reviewed    Audited   
                                                                                    Rm         Rm   
 10.     Discontinued operations      
         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 of for a total consideration of R183 million.
         This sale completed the Zincor divestment process,
         which commenced with the cessation of the production 
         of zinc metal at Zincor in 2011 which was followed by 
         the sale of the Rosh Pinah mine during 2012. 
         
         Financial information relating to the discontinued 
         operations to the date of disposal is set out below:
         
         The financial performance and cash flow information                                        
         Revenue                                                                                    
         Operating income                                                                      61   
         Impairment reversal of non-current assets                                             98   
         Operating profit                                                                     159   
         Gain on disposal of subsidiary                                                       964   
         Net operating profit                                                               1 123   
         Finance costs                                                                        (74)   
         Profit for the year from discontinued operations                                   1 049   
         Cash flow attributable to operating activities                                        26   
         Cash flow attributable to investing activities                                        98   
         Cash flow attributable to financing activities                                       (37)   
         Cash flow attributable to discontinued operations                                     87
 
 11.     Dividend distribution                                                                      
         Total dividends paid by the group in 2014 amounted to R2 055 million, made up of a final dividend of 
         R1 126 million that relates to the year ended 31 December 2013, which was paid in April 2014, as well as an 
         interim dividend of R929 million, paid in September 2014.                              
         
         A final dividend for 2014 of 210 cents per share (2013: 315 cents per share) was approved by the board of 
         directors on 3 March 2015. The dividend is payable on 20 April 2015 to shareholders who will be on the register 
         at 17 April 2015. This final dividend, amounting to approximately R752 million (2013: R1 126 million), has not 
         been recognised as a liability in this condensed group financial statements. It will be recognised in 
         shareholders? equity in the year ending 31 December 2015.
         
         The dividend declared will be subject to a dividend withholding tax of 15% for all shareholders who are not 
         exempt from or do not qualify for a reduced rate of dividend withholding tax. The total secondary tax on 
         companies (STC) credits available for offsetting against the dividend withholding tax amount to Rnil 
         (2013: R195 million). Exxaro company?s tax reference number is 9218/098/14/4.
 
                                                                                  Year ended 31 December                    
                                                                                   2014             2013   
                                                                               Reviewed          Audited   
         Issued share capital as at declaration date (number)               358 115 505      358 115 505   
         Ordinary shares (million)                                                                         
         - weighted average number of shares                                        355              355   
         - diluted weighted average number of shares                                356              356   
                                                                                 
 
                                                                                      At 31 December                    
                                                                                   2014             2013   
                                                                               Reviewed          Audited   
                                                                                     Rm               Rm   
 12.     Property, plant and equipment                                                                     
         Capital expenditure                                                                               
         - incurred                                                               3 197            4 764   
         to maintain operations                                                   1 460            1 257   
         to expand operations                                                     1 737            3 507   
         - contracted                                                             2 887            4 204   
         contracted for the owner controlled group operations                     1 402            3 241   
         group?s share of capital commitments of equity-accounted investments     1 485              963   
         - authorised, but not contracted                                         2 160            2 826 
 
 13.     Intangible assets                                                                                 
         Goodwill1                                                                                         
         At beginning of year                                                       953              902   
         Exchange differences on translation                                         67               51   
         Impairment charge                                                       (1 020)                    
         At end of year                                                                              953   
         Patents and licences2                                                                             
         Gross carrying amount                                                                             
         At beginning of year                                                       232              121   
         Additions                                                                   30              201   
         Transfer from other assets                                                   1                    
         Write-off                                                                  (5)              (90)   
         At end of year                                                             258              232   
         Accumulated amortisation                                                                          
         At beginning of year                                                         9               61   
         Write-off                                                                   (1)             (88)   
         Amortisation charge                                                         14               36   
         At end of year                                                              22                9   
         Accumulated impairment                                                                            
         Impairment charge                                                          202                    
         At end of year                                                             202                    
         Net carrying amount at end of year                                          34            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 costs of disposal where factors such as iron ore prices 
            and respective discount rates were considered. The full amount of goodwill was impaired at 30 June 2014 
            (refer to note 7).                                                                                                         
         2  Includes software licences, intellectual property, which was impaired on 31 December 2014 (refer to note 7), 
            as well as an option to receive specific quantities of water from the Eungella water pipeline (Australia) and 
            the right to receive water from the Zeeland Water Treatment Works (Lephalale).                                           
                                                                                                                                       
                                                                                       At 31 December                    
                                                                                   2014             2013   
                                                                               Reviewed          Audited   
                                                                                     Rm               Rm   
 14.     Investments in associates                                                                         
         Listed investments                                                       9 686           10 267                           
         Tronox Limited 1                                                         9 686           10 267   
         Unlisted investments                                                     8 902            8 940   
         SIOC                                                                     5 422            5 523   
         Tronox SA                                                                1 786            1 819   
         Tronox UK                                                                1 337            1 239   
         Black Mountain                                                             357              359                           
         Total carrying value of investment in associates                        18 588           19 207   
         1 Fair value based on a listed price (Level 1 within 
           the IFRS 13 Fair Value Measurement fair value hierarchy). (Rm)        14 122           12 319                             
         - listed share price (US$ per share)                                     23,88            23,07 
 
 15.     Investments in joint ventures                                                                     
         Unlisted investments                                                       966              861   
         Mafube                                                                     818              528   
         SDCT 1                                                                                             
         Cennergi                                                                   148              333    
         Total carrying value of investment in joint ventures                       966              861   
         1 The fair value of the investment in SDCT consists of an investment of R1 333 (31 December 2013: R1 333) and a
           loan to the joint venture of R83 million (2013: R69 million) disclosed as part of financial assets (note 19).  
 
 16.     Non-current assets and liabilities held-for-sale                                                                                         
         Exxaro concluded a sale of asset agreement relating to the NCC operation with Universal in January 2014. The 
         sale is conditional to section 11 approval required in terms of the Mineral and Petroleum Resources Development 
         Act No 28 of 2002 for transfer of the new-order mining right from Exxaro Coal Mpumalanga Proprietary Limited to 
         the new owners. On 31 December 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 on 31 December 2014.                                      
                                                                                                                                                      
         The NCC operation met the relevant recognition criteria 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 held-for-sale property, plant and equipment also includes farms in the Waterberg region, with a carrying 
         amount of R25 million on 31 December 2014, which is expected to be sold in 2015.                                             
                                                                                                                                           
         The major classes of non-current assets and liabilities held-for-sale are as follows: 
 
                                                                                       At 31 December                    
                                                                                   2014             2013   
                                                                               Reviewed          Audited   
                                                                                     Rm               Rm   
         ASSETS                                                                                            
         Property, plant and equipment                                              174              149   
         Deferred tax                                                                65               90   
         Financial assets                                                            73               67   
         Inventories                                                                  8                8   
         Trade and other receivables                                                  8                4   
         - trade receivables                                                          3                    
         - non-financial instrument receivables                                       5                4   
         Current tax receivable                                                                       24   
         Total assets                                                               328              342   
         LIABILITIES                                                                                       
         Non-current provisions                                                    (158)            (144)   
         Post-retirement employee obligations                                        (4)              (3)   
         Trade and other payables                                                   (21)             (39)   
         - trade payables                                                           (11)             (20)   
         - other payables                                                            (3)              (7)   
         - derivative instruments                                                                     (9)   
         - non-financial instrument payables                                         (7)              (3)   
         Current provisions                                                         (40)             (39)   
         Current tax payable                                                         (9)                    
         Total liabilities                                                         (232)            (225)   
         Net assets held-for-sale                                                    96              117   
                                                                                                                                     
                                                                                       At 31 December                    
                                                                                   2014             2013   
                                                                               Reviewed          Audited   
                                                                                     Rm               Rm   
 17.     Interest-bearing borrowings                                                                       
         Summary of loans by financial year of redemption                                                  
         2014                                                                                         31   
         2015                                                                        34              324   
         2016 1                                                                     392              326   
         2017                                                                       874            1 927   
         2018                                                                       395              329   
         2019                                                                       917              331   
         2020 onwards                                                               398              332   
         Total interest-bearing borrowings                                        3 010            3 600   
         - current interest-bearing borrowings 2                                     34               31   
         - non-current interest-bearing borrowings 3                              2 976            3 569   
 
         1 During 2014, an addendum to the senior loan facility was signed extending the date of the first capital 
           repayment to 30 January 2016.       
         2 The R34 million current portion represents interest capitalised of R44 million reduced by amortised transaction 
           costs of R10 million.          
         3 The non-current portion includes R34 million in respect of transaction costs that will be amortised using the 
           effective interest rate method, over the term of the facilities.                               
                                                                                       
         Overdraft                                                                     
         Bank overdraft                                                              67              806   
                                                                                                                   
         There were no defaults or breaches in terms of interest-bearing borrowings during both reporting periods. 
                                                                                    
         Senior loan facility                                                       
         During April 2012, Exxaro secured a senior loan facility of R8 billion.    
         
         The senior loan facility comprises 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 2,50% for 
         the revolving facility. 

         The effective interest rate for the transaction costs for the term loan is 0,47%.
 
         Interest is paid on a six monthly basis for the term loan and on a monthly basis for the revolving facility.

         The undrawn portion relating to the term loan is R3 billion (2013: R3 billion). The undrawn portion of the 
         revolving facility is R3 billion (2013: R1,4 billion).
 
         During February 2015 (an event after reporting period), R2,3 billion on the revolving facility, as well as 
         R2,0 billion on the term loan was drawn down.                                                        
                                                                                                                                            
         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 1,70% 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 are 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.                                                                          
                                                                                                                                          
         Bank overdraft                                                                                                                          
         The bank overdraft is repayable on demand and interest payable is based on current South African money market
         rates.                                                  
                                                                                                                                             
                                                                                                            At 31 December     
                                                                                                            2014        2013 1   
                                                                                                        Reviewed     Audited   
                                                                                                              Rm          Rm   
 18.    Net debt                                                                                                               
        Net debt is presented by the following items on the face of the statement of financial      
        position (excluding assets and liabilities held-for-sale):                                        (1 071)     (3 377)   
        - cash and cash equivalents                                                                        2 006       1 029   
        - non-current interest-bearing borrowings                                                         (2 976)     (3 569)   
        - current interest-bearing borrowings                                                                (34)        (31)   
        - overdraft                                                                                          (67)       (806)   
        Calculation of movement in net debt:                                                                                   
        Cash inflow/(outflow) from operating and investing activities:                                     2 280      (1 044)   
        Add:                                                                                                                   
        - shares issued                                                                                                   14   
        - share-based payments                                                                                            (2)   
        - non-cash flow movement for interest accrued not yet paid                                            (4)        (40)   
        - non-cash flow amortisation of transaction costs                                                    (10)         (9)   
        - consideration paid to non-controlling interests                                                                (96)   
        - translation differences on movements in cash and cash equivalents                                   40          (1)  
        Decrease/(increase) in net debt                                                                    2 306      (1 178)   
        1 Represented between cash generated from operations and translation differences on movements in cash and cash 
          equivalents due to a reclassification of foreign currency difference not related to cash and cash equivalents.

 19.    Financial instruments                                                                                            
        (a)  Carrying amounts and fair values                                                                            
             The carrying amounts and fair values of financial assets and financial liabilities in the condensed group 
             statement of financial position, are as follows:                                                          
                                                                                             At 31 December          
                                                                                   2014                       2013   
                                                                               Reviewed                    Audited   
                                                                        Carrying                   Carrying      
                                                                          amount    Fair value       amount    Fair value      
                                                                              Rm            Rm           Rm            Rm    
             ASSETS                                                                                                         
             Non-current assets                                                                                             
             Financial assets, consisting of:                              2 693         2 693        2 469         2 469   
              - Environmental Rehabilitation Funds                           826           826          618           618   
              - Loans to joint ventures                                       83            83          255           255   
              - Kumba Iron Ore Limited                                        22            22           40            40   
              - Chifeng                                                      267           267          253           253   
              - RBCT                                                         973           973          551           551   
              - New Age Exploration Limited                                                               1             1   
              - Non-current receivables                                      522           522          751           751   
             Current assets 1                                              4 104         4 104        2 875         2 875   
             Trade and other receivables                                   2 090         2 090        1 845         1 845   
             Derivative financial assets                                       8             8            1             1   
             Cash and cash equivalents                                     2 006         2 006        1 029         1 029   
             Non-current assets held-for-sale                                 76            76           67            67   
             Total financial instrument assets                             6 873         6 873        5 411         5 411   
             LIABILITIES                                                                                                    
             Non-current liabilities                                       2 976         2 976        3 569         3 569   
             Interest-bearing borrowings 2                                 2 976         2 976        3 569         3 569   
             Current liabilities 1                                         2 603         2 603        2 907         2 907   
             Trade and other payables                                      2 502         2 502        2 056         2 056   
             Derivative financial liabilities                                                            14            14   
             Interest-bearing borrowings 2                                    34            34           31            31   
             Overdraft                                                        67            67          806           806   
             Non-current liabilities held-for-sale                            14            14           36            36   
             Total financial instrument liabilities                        5 593         5 593        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.               
                                                                                                                                                      
        (b)  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 31 December 2014 (Reviewed)                                                       Rm            Rm           Rm            Rm   
             Financial assets held-for-trading at fair value through profit or loss                                                             
             - Current derivative financial assets                                                               8                          8   
             Financial assets designated at fair value through profit or loss                                                                   
             - Environmental Rehabilitation Funds                                                826                                      826   
             - Environmental Rehabilitation Fund held-for-sale                                    73                                       73   
             - Kumba Iron Ore Limited                                                             22                                       22   
             Available-for-sale financial assets                                                                                                
             - Chifeng                                                                                                      267           267   
             - RBCT                                                                                                         973           973   
             Net financial assets carried at fair value                                          921             8        1 240         2 169   
                                                                                                                                                
                                                                                             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                                                                   
             - Environmental Rehabilitation Funds                                                618                                      618   
             - Environmental Rehabilitation Fund held-for-sale                                    67                                       67   
             - Kumba Iron Ore Limited                                                             40                                       40   
             Available-for-sale financial assets                                                                                                
             - Chifeng                                                                                                      253           253   
             - New Age Exploration Limited                                                         1                                        1   
             - RBCT                                                                                                         551           551   
             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   
                                                                                                                                     
        (c)     Level 3 fair values                                                                                                                
                                                                                                                        Chifeng          RBCT   
                Reconciliation of assets within Level 3 of the hierarchy:                                                    Rm            Rm   
                Opening balance at 1 January 2013 (Audited)                                                                 174           467   
                Movement during the year                                                                                                        
                Gains recognised for the period in OCI (pre-tax effect)                                                      46            82   
                Exchange gains for the period recognised in OCI                                                              33                 
                Closing balance at 31 December 2013 (Audited)                                                               253           551   
                Movement during the year                                                                                                        
                Gains recognised for the period in OCI (pre-tax effect)                                                       1           422   
                Exchange gains for the period recognised in OCI                                                              13                 
                Closing balance at 31 December 2014 (Reviewed)                                                              267           973   
                                                                                                                        
                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 years ended 
                31 December 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 reasonableness 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 of the fair value hierarchy 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 is consistent 
                to that used in previous reporting periods.

                The significant observable and unobservable inputs used in the fair value measurement of the investment in 
                Chifeng are Rand/Renmimbi (RMB) exchange rate, RMB/US$ exchange rate, Zinc London Metal Exchange (LME) price, 
                production volumes, operational costs and the discount rate.                                                     
                                                                                                                            
                                                                                                                                     Sensitivity analysis    
                                                                                                                                        of a 10% increase    
                                                                                                                                         in the inputs is    
                                                                                                             Sensitivity of inputs     demonstrated below 2   
                At 31 December 2014 (Reviewed)                                            Inputs        and fair value measurement 1                   Rm   
                Observable inputs                                                                                                                          
                Rand/RMB exchange rate                                                R1,86/RMB1              Strengthening of the                     26   
                                                                                                                   Rand to the RMB                         
                RMB/US$ exchange rate                                    RMB6,13 to RMB6,75/US$1              Strengthening of the                    152   
                                                                                                                    RMB to the US$                         
                Zinc LME price (US$ per tonne in real terms)                US$2 311 to US$2 226              Increase in price of                    152   
                                                                                                                  zinc concentrate                         
                Unobservable inputs                                                                                                                         
                Production volumes (tonnes)                                        85 000 tonnes    Increase in production volumes                     37   
                Operational costs (US$ million per annum in real terms)           US$63 to US$76      Decrease in operations costs                   (133)  
                Discount rate (%)                                                          9,94%     Decrease in the discount rate                    (20)  
                At 31 December 2013 (Audited)                                                                                                               
                Observable inputs                                                                                                                           
                Rand/RMB exchange rate                                                R1,72/RMB1              Strengthening of the                     25   
                                                                                                                   Rand to the RMB                          
                RMB/US$ exchange rate                                    RMB6,02 to RMB5,95/US$1              Strengthening of the                    161   
                                                                                                                    RMB to the US$                          
                Zinc LME price (US$ per tonne in real terms)                US$2 039 to US$2 027              Increase in price of                    161   
                                                                                                                  zinc concentrate                          
                Unobservable inputs                                                                                                                         
                Production volumes (tonnes)                                       208 750 tonnes    Increase in production volumes                    177   
                Operational costs (US$ million per annum in real terms)           US$74 to US$88      Decrease in operations costs                   (143)  
                Discount rate (%)                                                            10%     Decrease in the 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 is not considered to have a significant impact within 
                the range of reasonably possible alternative assumptions for both reporting periods.                         
                                                
                RBCT                     
                RBCT is classified within Level 3 of the fair value hierarchy 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 is consistent to that used in previous reporting 
                periods.                                                                                                  
                
                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 annual 
                utilisation factor.                    
                                                                                                                                       Sensitivity analysis    
                                                                                                                                          of a 10% increase    
                                                                                                                                           in the inputs is    
                                                                                                                Sensitivity of inputs    demonstrated below 2   
                At 31 December 2014 (Reviewed)                                         Inputs             and fair value measurement 1                  Rm     
                Observable inputs                                                                                                                               
                Rand/US$ exchange rate                                   R10,94 to R18,80/US$1                    Strengthening of the                  257   
                                                                                                                       Rand to the US$                        
                API4 export price                                               US$62 to US$93                        Increase in API4                  154   
                (US$ steam coal A-grade price per tonne in real terms)                                          export price per tonne                        
                Unobservable inputs                                                                                                                           
                Transnet Market Demand Strategy for the terminal              74Mtpa to 81Mtpa                Acceleration of Transnet                   97
                                                                                                   Freight Rail (TFR) performance, ie: 
                                                                                                            reach full capacity sooner 
                Discount rate (%)                                                   13% to 17%           Decrease in the discount rate                 (120)  
                Annual utilisation factor (safety and rail delay factor) (%)               90%   Increase in annual utilisation factor                  123   
                1 Change in observable/unobservable input which will result in an increase in the fair value measurement.                                     
                2 A 10% decrease or increase in the respective inputs would have an equal but opposite effect on the above, 
                  on the basis that all other variables remain constant.                                                                                      
                                                                                                                                       Sensitivity analysis   
                                                                                                                                          of a 10% increase   
                                                                                                                                           in the inputs is    
                                                                                                                Sensitivity of inputs    demonstrated below 2   
                At 31 December 2014 (Audited)                                           Inputs             and fair value measurement 1                  Rm   
                Observable inputs                                                                                                                         
                Rand/US$ exchange rate                                    R9,85 to R10,15/US$1                   Strengthening of the                   119   
                                                                                                                      Rand to the US$                        
                API4 export price                                            US$75,50 to US$97                       Increase in API4                   119   
                (US$ steam coal A-grade price per tonne in real terms)                                         export price per tonne                        
                Unobservable inputs                                                                                                                           
                Transnet Market Demand Strategy for the terminal 
                                                                              77Mtpa to 81Mtpa                        Acceleration of                   127   
                                                                                                                      TFR performance,                        
                                                                                                        ie: reach full capacity sooner                        
                Discount rate (%)                                                   13% to 17%           Decrease in the 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 is not considered to have a significant impact within the 
                range of reasonably possible alternative assumptions for both reporting periods.             

                                                                                                                      At 31 December              
                                                                                                                      2014       2013   
                                                                                                                  Reviewed    Audited   
                                                                                                                        Rm         Rm   
 20.    Contingent liabilities                                                                                                          
        Total contingent liabilities                                                                                 7 999      2 066   
        - Grootegeluk Medupi expansion project (GMEP)                                                                   26         50   
        - DMC Iron Congo South Africa                                                                                              84   
        - Total S.A. 1                                                                                               5 390              
        - Pending litigation claims 2                                                                                  445        328   
        - Operational guarantees                                                                                     1 237        927   
        - Group?s share of contingent liabilities of equity-accounted investments                                      901        677   
        
        1 Guarantee issued to Total S.A. in respect of the purchase price payable for the acquisition of Total Coal South 
          Africa Proprietary Limited (TCSA).                           
        2 Pending litigation claims consist of legal cases with Exxaro as defendant. The outcome of these claims is 
          uncertain and the amount of possible legal obligations that may be incurred can only be estimated at this stage. 
        
        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. 
        
        A policy regarding the water treatment liability as prescribed by the Mineral and Petroleum Resources Development 
        Act of 2002 has been developed in 2014 and an estimate has been included as part of the rehabilitation provision 
        in the current year.  
                                                                                                                      At 31 December  
                                                                                                                      2014       2013   
                                                                                                                  Reviewed    Audited   
                                                                                                                        Rm         Rm   
 21.    Contingent assets                                                                                                               
        Total contingent assets                                                                                        256        108   
        - Surrender fee on prospecting rights, exploration rights and mining rights 1                                              81   
        - Guarantee on sale of NCC 2                                                                                   170              
        - Group?s share of contingent assets of equity-accounted investments                                            86         27   
                                                                                                                                        
        1 In 2013 a surrender fee in exchange for the exclusive right to prospect, explore, investigate and mine for 
          coal within a designated area of central Queensland and Moranbah, Australia, conditional to the grant of a 
          mining lease, was included as contingent asset. However, in 2014, circumstances changed to the extent that 
          the possibility for this surrender fee does not exist anymore, hence no amount relating to this matter is 
          included in the current year.                           
        2 Exxaro has received a guarantee from Universal as part of the sales transaction of NCC.  
            
 22.    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.            

 23.    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.            
 
 24.    JSE Limited Listings Requirements  
        The reviewed condensed group financial results announcement has been prepared in accordance with the 
        Listings Requirements of the JSE Limited.  

 25.    Events after the reporting period            
        Details of the final dividend proposed are given in Note 11.  
                                                     
        The following non-adjusting events occurred after the reporting date and are disclosed for information purposes:  
        - On 28 January 2015, the Pegasus South Environmental Management Programme amended licence was approved; and  
        - On 30 January 2015, the financial guarantees provided by Universal for the sale of NCC were extended to 
        - 31 July 2015; and            
        - During February 2015, R2,3 billion on the revolving facility, as well as R2 billion on the term loan, was drawn down. 
                                                     
        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.            

 26.    Review conclusion                            
        The reviewed condensed group financial statements for the year ended 31 December 2014 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.  
                                                     
 27.    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. Revised disclosure and more 
        detailed information will be made in the 2014 integrated report and published on the company?s website during 
        April 2015. Contact the group company secretary, Carina Wessels, for additional information in this regard.            

 28.    Mineral resources and mineral reserves 
        Other than the normal LoM depletion there have been no material changes to the mineral reserves and resources 
        as disclosed in the 2013 integrated report. 
          
        Old-order mining right conversions    
        Operation                                                                Status        Reason where not registered 
        Grootegeluk, Magvanti (Gravelotte), Mafube, Leeuwpan                     Registered    
        Tshikondeni, Strathrae North Block Complex (NBC), Matla                  Granted       Execution in process, await DMR execution date 
        Glisa (NBC), Arnot, Inyanda                                              Executed      Timely submission for registration but registration pending        
        
        New-mining right application  
        Operation                                                                Status        Reason  
        Goni, Mafube Nooitgedacht, NCC                                           Registered    
        Thabametsi, Glisa South (Paardeplaats), Eerstelingsfontein 
        (NBC) - Mining Right Renewal                                             Submitted     Approval pending
        Belfast, Leeuwpan Ext, Eerstelingsfontein (NBC)                          Executed      Timely submission for registration but registration pending  

                                                                                                      At 31 December 
                                                                                                     2014        2013   
 29.    Other*     
        Net asset value per share (Rand/share)                                                         96         101   
        Capital expenditure contracted relating to tied mines, 
        Tshikondeni, Arnot and Matla, which will be financed by 
        ArcelorMittal SA Limited and Eskom (Rm)                                                       159         317   
        Operating lease commitments (Rm)                                                              135         212   
        Closing share price (Rand/share)                                                           103,50      146,46   
        Market capitalisation (Rb)                                                                  37,06       52,45   
        Average Rand/US$ exchange rate (spot rate)                                                  10,83        9,62   
        Closing Rand/US$ exchange rate (spot rate)                                                  11,56       10,44   
        * Non-IFRS numbers.  
 
Commentary
for the year ended 31 December
Comparability of results
Comments are based on a comparison of the reviewed condensed group financial results and unreviewed production and
sales volumes information for the years ended 31 December 2014 and 2013 (referred to as 2014 and 2013 respectively), unless
otherwise indicated. The financial results for 2014 and 2013 are not comparable mainly due to key events and
transactions listed in Table 1.


 Table 1: Key events and transactions during the reporting periods which make financial and operational results not comparable                 
 Reporting segment    2014                                                    Rm   2013                                                            Rm   
 Coal                                                                              Net impairment of carrying value of property, plant and 
                      Loss on sale of non-core assets and voluntary                equipment at NCC and loss on sale of property,       
                      severance package expenses                             (22)  plant and equipment                                           (152)         
 Ferrous              Impairment of the original investment including 
                      goodwill, carrying value of the property, plant 
                      and equipment and qualifying project costs 
                      capitalised for the Mayoko iron ore project as 
                      well as write-off of financial assets               (5 817)             
 Other                Loss on dilution of shareholding in Tronox Limited     (58)  Loss on dilution of shareholding in Tronox Limited             (12)  
                      Intellectual property assets impairment               (202)  Zincor partial impairment reversal                              98   
                      Profit on sale of other non-core assets and 
                      voluntary severance packages                           (67)  Profit on sale of Zincor refinery                              964   
                                                                                   Loss on write-off of intangible asset                           (2)  
                      Total net operating (loss)/profit impact            (6 166)  Total net operating profit/(loss) impact                       896   
                                                                                                                                                            

Safety, health, environment and community
On 5 July 2014, the group recorded an unfortunate and regrettable fatality at Arnot mine in Mpumalanga when an
employee, Mr Solomon Latebotse Mashigo, was fatally injured by a rock that had dislodged from the tunnel roof and slid from a
continuous miner. The investigation of this incident by the Mpumalanga Department of Mineral Resources (DMR) was
finalised on 29 August 2014 and concluded that poor employee judgement and a culture of focus on ?short-term incentive scheme
achievement? were the major causes. Corrective measures have been implemented as recommended by the investigation report.
This fatality followed Exxaro?s 2013 achievement of a full year without a fatality. We remain committed to our goal of zero
harm.

On 25 November 2014, Mr Christopher Schroeder, a mechanical foreman employed at the Mayoko iron ore project in the
Republic of the Congo (RoC), was regrettably fatally injured after being bitten by a snake. The investigation into this
fatality has revealed that the incident happened outside of working hours, not at his place of work, and was not related to
any of his official duties. As such, it is not classified as a reportable fatality. 

The LTIFR remained constant at 0,19 for 2014 and 2013, well below the 0,32 coal industry and 2,55 mining industry
averages as published by the Chamber of Mines for 2013. Thirty-six lost-time injuries (LTIs) were recorded in 2014, a 10%
improvement on the 40 incidents recorded in 2013. Exxaro will continue with its commitment to further raise awareness of
safety risks.


Table 2: Reported occupational disease incidents 


                              2014    2013   
Tuberculosis                    18      18   
Pneumoconiosis                  12      37   
Noise-induced hearing loss      12       8   
Other                            6      26   
Total                           48      89   


A 46% reduction in reportable occupational disease incidents was recorded in 2014 compared with 2013. This reflects
the group?s concerted efforts in implementing occupational risk exposure profiles since 2013 to further reduce the
incidents of occupational diseases. The number of employees enrolled on the HIV/Aids programme continued to increase, from 545
in 2013 to 667 in 2014.

Exxaro continues to develop technologies aimed at maximising water use efficiency. The research and development
department developed and piloted a passive water-treatment plant at the North Block Complex (NBC) mine in the fourth quarter
of 2014. Results from this pilot were encouraging. Construction of a scaled-up water treatment plant is scheduled to
start in the second quarter of 2015. The water treatment plant at Matla mine has been commissioned and performance tests are
under way. These two water-treatment plants are expected to return approximately 10 mega litres of potable water for
public use per day. 

Obtaining environmental authorisations for expansion activities and projects is a strategic priority for the group.
Exxaro has ensured that all critical environmental authorisations are obtained.

The group spent R88 million (2013: R57 million) on social and labour plans (SLPs) and other community related projects, mainly 
on education (R39 million on teacher and learner development) and infrastructure (R15 million on building roads and houses).

Financial and operational excellence
Group
Revenue 
Group consolidated revenue increased by 21% to R16 401 million for the year ended 31 December 2014 compared with 
R13 568 million in 2013, mainly due to higher revenue from the coal business.


Table 3: Reviewed group segment results 1 (Rm)
for the year ended 31 December
                             Revenue              Net operating profit                       
                          2014      2013             2014     2013        
Coal                    16 176    13 362            3 297    2 769   
- Tied 2                 4 577     3 917              319      215   
- Commercial 3          11 599     9 445            2 978    2 554   
Ferrous                    159       120           (6 238)    (141)  
- Iron ore 4                                       (6 100)     (27)  
- Alloys                   159       120              (97)     (61)  
- Other                                               (41)     (53)  
Other                       66        86             (351)     938   
- Base metals 5                                        (1)     145   
- Other 6                   66        86             (350)     793   
Total                   16 401    13 568           (3 292)   3 566   
1 An average exchange rate of R10,86 to the US dollar (US$) was realised for 2014 (2013: R9,48).   
2 Mines that are managed on behalf of and supply their entire production to either Eskom or ArcelorMittal South Africa
  Limited (AMSA) in terms of contractual agreements.                                           
3 Net operating profit includes the NCC net pre-tax impairment of R143 million in 2013.   
4 Net operating loss includes the pre-tax impairment of the original investment including goodwill, carrying value of 
  property, plant and equipment and qualifying project costs capitalised to the Mayoko iron ore project of R5 760 million 
  as well as the impairment and write-off of financial assets totalling R43 million recorded in 2014.  
5 Net operating profit includes a Zincor refinery partial impairment reversal of R98 million recorded in 2013.        
6 Net operating (loss)/profit includes a pre-tax impairment loss of other non-core assets of R202 million in 2014 as 
  well as profit on the sale of subsidiaries of R964 million on the sale of Exxaro Base Metals Proprietary Limited (which 
  held the Zincor refinery) recorded in 2013.                                           
                                                           

Net operating profit 
The group?s net operating profit decreased by 192% to a loss of R3 292 million (2013: net operating profit of 
R3 566 million) mainly as a result of the pre-tax impairment of the Mayoko iron ore project which included the original
investment including goodwill, carrying value of property, plant and equipment and qualifying project costs capitalised to the
Mayoko iron ore project of R5 760 million, as well as the write-off and impairment of financial assets totalling R43 million
recorded in 2014, a pre-tax impairment loss of other non-core assets of R202 million in 2014, a partial impairment reversal
of the carrying value of property, plant and equipment of the Zincor refinery of R98 million recorded in 2013, the NCC
net pre-tax impairment of R143 million in 2013, as well as profit on the sale of subsidiaries of R964 million on the sale
of Exxaro Base Metals Proprietary Limited (which held the Zincor refinery) recorded in 2013. 

Support functions (functions other than those directly linked to mining activities) costs reduced by R124 million
compared with 2013, mainly due to continuous cost-saving initiatives being implemented across the group. This reduction
resulted in a net lower recovery from the coal and ferrous businesses of R116 million.

Earnings
Losses attributable to owners of the parent, which include Exxaro?s equity-accounted investments in associates and
joint ventures, were R883 million (2013: attributable earnings of R6 217 million) or 249 cents loss per share 
(2013: 1 751 cents earnings per share), down 114% from 2013 mainly due to the non-recurring post-tax impairment losses recorded
in 2014 as well as profits realised on the sale of subsidiaries of R964 million in 2013.

Headline earnings, which exclude, inter alia, the impact of any impairment and partial impairment reversals as well as
profits realised on the sale of subsidiaries and other non-core assets, were 6% lower at R4 869 million 
(2013: R5 194 million) or 1 372 cents per share (2013: 1 463 cents per share), mainly due to a R1 116 (31%) reduction in the 
post-tax income from the equity-accounted investments.

Cash flow and funding
Cash flow generated from operations was 88% higher than in 2013 at R4 083 million (2013: R2 173 million). This cash
was used to fund dividends paid of R2 055 million, net financing charges of R248 million and taxation payments of 
R120 million. R3 197 million was spent on acquiring property, plant and equipment, of which R1 737 million was invested in new
capacity (expansion capital), with the remaining R1 460 million applied to sustaining and environmental capital
(stay-in-business capital). Of the funds spent on new capacity, R277 million was for the Grootegeluk Medupi expansion project
(GMEP) (2013: R1 633 million), and R759 million for the Mayoko iron ore project (until impairment in June 2014) (2013: R1 613 million).

After the receipt of dividends of R3 719 million (2013: R3 229 million), primarily from Sishen Iron Ore Company
Proprietary Limited (SIOC) and Tronox Limited (Tronox), as well as the outflow associated with capital expenditure, the group
had net cash inflow before financing activities of R2 280 million (2013: R1 044 million outflow). Net debt decreased 68%
to R1 071 million at 31 December 2014 (2013: R3 377 million), reflecting a net debt to equity ratio of 3% (2013: 9%). 

Exxaro successfully raised R1 billion in its debut bonds issuance in the first half of 2014, under Exxaro?s R5 billion Domestic
Medium-term Note Programme listed on the interest rate market of the JSE Limited (JSE).

Coal commodity business
General trading conditions in the coal commodity remained challenging in 2014 with average API4 export US$ prices
dropping from US$83 per tonne at the beginning of January to a low of US$63 per tonne in November, closing the year at 
US$66 per tonne (20% lower). Export volumes, however, increased from 4,5 million tonnes (Mt) to 5,3Mt. The group realised 
an average export price of US$65 per tonne in 2014 compared to US$80 per tonne in 2013, mainly on higher sales of
lower-value product. An average of 67% of export product sales was on the RB1 product, compared with 92% in 2014.

Production and sales volumes
Overall coal production volumes (excluding buy-ins and semi-coke) were 0,34Mt higher (1%) than in 2013 and sales volumes 
were 1,47Mt higher (4%).

Metallurgical coal
Grootegeluk?s production was 212kt (11%) higher and sales were 357kt (19%) higher than 2013, mainly reflecting
increased Transnet Freight Rail (TFR) train allocations to Richards Bay Coal Terminal (RBCT) as well as higher AMSA demand.
Tshikondeni production was 189kt (55%) lower than 2013 while sales were 102kt (30%) lower than 2013 due to the mine
stopping production in September 2014 as it reached the end of its life.

Thermal coal
Power station coal production from the tied mines was marginally higher (48kt) than 2013, mainly due to production at
Matla which was 241kt (2%) higher as a result of improved cutting rates at the short walls, offset by 193kt (12%) lower
production at Arnot due to the fatality in July and difficult geological conditions.

The commercial mines? power station coal production was 933kt (5%) higher than 2013, mainly reflecting the 869kt
increase at Grootegeluk due to the Medupi power station supply which started in the second half of the year. Higher
throughput at Leeuwpan resulted in a 130kt (5%) increase in production while NBC production was 66kt lower due to the limitation
on Eskom contractual volumes. Eskom demand from Leeuwpan was impacted by the Majuba silo collapse in the fourth quarter
of 2014, with Leeuwpan production negatively affected by approximately 200kt.

Domestic power station coal sales from the commercial mines were 658kt higher than 2013, primarily due to higher
demand with Medupi off-take commencing, while export sales increased by 515kt due to the ongoing review and balancing of
export volumes, export logistics capacity as well as market commitments and opportunities.


Table 4: Unreviewed coal production and sales volumes (?000 tonnes)
for the year ended 31 December
                                                Production                    Sales                        
                                              2014      2013              2014      2013                
 Thermal (Power station and steam coal)     36 875    36 553            39 071    37 859   
 - Tied 1                                   11 814    11 766            11 808    11 768   
 - Commercial: domestic                     25 061    24 787            22 753    22 204   
 - Commercial: export                                                    4 510     3 887   
 Metallurgical                               2 274     2 251             2 470     2 215   
 - Tied                                        154       343               233       335   
 - Commercial: domestic                      2 120     1 908             1 456     1 308   
 - Commercial: export 2                                                    781       572    
 Coal                                       39 149    38 804            41 541    40 074   
 Semi-coke                                     127        91               115        97   
 Total (excluding buy-ins)                  39 276    38 895            41 656    40 171   
 Thermal buy-ins                             2 202     1 470                               
  Total (including buy-ins)                 41 478    40 365            41 656    40 171   
 1 Mines that are managed on behalf of and supply their entire production to either Eskom or AMSA in terms of 
   contractual agreements.                                            
 2 Exported as a steam coal product, blended at RBCT.                                            


Steam coal production was 659kt (12%) lower, mainly due to NCC which remains under care-and-maintenance (419kt) and
lower stock levels at Inyanda (359kt) as the mine nears the end of its life. Leeuwpan production rose by 173kt on the
improved performance of the dense medium separation (DMS) plant. 

Domestic steam coal sales decreased by 109kt (3%) mainly due to lower sales from Grootegeluk of 91kt (6%), affected by
industrial action in the Rustenburg area in the first half of 2014, 36kt (100%) lower sales at NCC (under
care-and-maintenance) as well as at Inyanda 11kt (4%) due to stock being redirected to the export market. These were partly 
offset by 29kt (2%) higher sales at Leeuwpan due to higher demand. 

Export steam coal sales were 108kt (3%) higher, mainly due to increased train allocations and buy-ins. This was partially 
offset by 507kt lower export sales at NCC (care-and-maintenance) and at Inyanda 324kt (20%) as the mine nears the end of life. 

Buy-ins were 732kt (50%) higher than 2013 which contributed to overall higher export sales, albeit at lower margins.

Semi-coke
The ferroalloys market demand for reductants improved from the previously depressed levels, allowing Exxaro to operate
at full capacity. As such, the semi-coke plant production was 36kt (40%) higher as new markets were identified, coupled
with repositioning the reductants product as semi-coke.

Logistics
The TFR performance rate was at 72Mt for 2014 (2013: 71Mt), despite the force majeure event in February 2014 and
annual shut in May 2014.

Exxaro used 100% of its available RBCT entitlement for 2014 and 2013 and leased additional entitlement requirements to
meet demand.

Revenue
Coal revenue was R2 814 million (21%) higher than 2013, reflecting a combination of higher coal export sales volumes at
weaker Rand prices, higher power station coal sales at higher prices, lower domestic steam coal volumes at higher prices as 
well as the take-or-pay income generated from Eskom.

Net operating profit
Coal achieved net operating profit of R3 297million at an operating margin of 20% in 2014 compared to R2 769 million
at 21% operating margin for 2013. This 19% increase was mainly on the back of higher volumes (R632 million); favourable exchange
rate due to the weakening of the local currency against the US$ (R561 million); lower allocated corporate costs 
(R91 million); the saving against previous losses realised at NCC after it was placed under care-and-maintenance (R243 million),
offset by higher royalty tax provision (R86 million); higher distribution costs (R137 million); higher depreciation
costs (R141 million); higher buy-ins from Mafube joint venture (JV) (R181 million), weaker prices (R54 million);
inflationary pressures recorded at a general inflation rate of 7,5% (R400 million); as well as the impact of changes in
environmental rehabilitation provision other than the unwinding of the discount rate (R768 million, which includes a second half
adjustment of the provision for possible future affected water treatment liabilities of R370 million).

The group has initiated a proactive implementation of the DMR?s affected water treatment requirements by compiling a
model that seeks to calculate an estimate of current provisions that should be raised for any possible future affected
water treatment. The financial provisioning for environmental liabilities is governed by Regulation 53 and Section 41 of
the Mineral and Petroleum Resources Development Act 28 of 2002 (MRPDA), as well as Section 30 of the National Water Act
which require the financial provisioning on protection of water resources. However, in both sets of legislation, there is limited
guidance provided on the manner of determining the liabilities associated with the treatment of any affected water.
Exxaro has taken a stance in calculating the possible future liabilities? net present values.

Equity-accounted income
Income received from the Mafube JV with Anglo South Africa Capital Proprietary Limited increased by 104% to R267 million from 2013 
as a result of higher volumes, and due to the cost-plus mechanism in place. Overall cost increases due to the maintenance of plant 
and equipment, higher petroleum use and increased labour costs as a result of higher production bonuses contributed to the higher 
equity-accounted income from this investment through the cost-plus recovery mechanism.

Portfolio improvement
GMEP
Construction on GMEP to supply Eskom?s Medupi power station with 14,6 million tonnes per annum (Mtpa) of coal
progressed well and Exxaro met its contractual commitments on time and within budget. Total capital expenditure for the project
remains within the forecast R10,2 billion. The project has achieved 34,6 million hours without a fatality, and the
project LTIFR remained at 0,17. All commissioning was completed in December 2014, with all plant modules individually tested.
The operational team will follow a steady ramp-up curve based on the revised Eskom demand schedule until nameplate
capacity is achieved. The construction of in-pit crusher 3 is progressing to plan and commissioning is still expected in the
second quarter of 2015.

In January 2014, Eskom formally notified Exxaro that it would not be able to begin off-take from 1 February 2014. An
agreement was reached and approved by both parties? respective boards in the third quarter of 2014, resulting in the
ninth addendum to the original coal supply and off-take agreement. First coal was delivered to Medupi power station in 
July 2014. GMEP delivered 3,1Mt of coal to Eskom in 2014 as per the coal supply and off-take agreement.

Total Coal South Africa Proprietary Limited (TCSA) 
Exxaro entered into a binding sale and purchase agreement on 25 July 2014 with Total S.A. (Total), subject to certain
conditions precedent, whereby Exxaro will acquire 100% of the issued share capital of TCSA and its related export
marketing rights under primary RBCT allocation. Exxaro will pay a total purchase consideration of US$472 million 
(US$386,5 million to acquire 100% of the issued share capital of TCSA and US$85,5 million to settle outstanding loan claims 
of Total Finance against TCSA). Three of the conditions precedent have been fulfilled. The condition precedent regarding the 
consent by the DMR of South Africa for the acquisition being granted in terms of Section 11 of the MPRDA, is still outstanding.

Thabametsi 
Thabametsi is a prospective greenfields opencast coal mine adjacent to Grootegeluk mine in the Waterberg, Limpopo
province. Development will be phased over a 10 to 15-year implementation period ramping up to a 20Mtpa mining complex. The
mine will supply some 3,8Mtpa run-of-mine (ROM) coal to the 600MW Waterberg independent power producer (IPP) post
ramp-up. The pre-feasibility study (PFS) for the development of Thabametsi North phase 1 was completed in the second quarter 
of 2014. The bankable feasibility study (BFS) began in the fourth quarter of 2014 and is expected to be completed in the
second half of 2015. The environmental authorisation for Thabametsi mine was granted in December 2014 and the mining
right application process is progressing. The first coal ROM production to Grootegeluk mine is expected to be achieved by
2016/17 (phase 1A), after which the production ramp-up rate will depend on the 600MW Waterberg IPP (phase 1B). For phase
1B, Exxaro and the GDF SUEZ consortium continue to engage to finalise the coal supply and off-take agreement, as well as
water supply development schedules. Exxaro is also engaging with the relevant stakeholders to conclude implementation
plans on integrated infrastructure for the Waterberg coalfields, which is deemed crucial for the development of all
projects in the Waterberg region. 

NCC
The fulfilment of most of the outstanding conditions precedent to the NCC sale transaction has been achieved. Section
11 from the DMR remains outstanding. Competition Commission approval has been obtained and Universal Coal has secured
funding guarantees for the transaction. 

Belfast
The Belfast project is a greenfields opencast mine development expected to produce an average of 2,2Mpta of A-grade
export coal and 0,5Mtpa of Eskom coal over a 16-year period post commissioning, after which a phase 2 ten-year
life-extension will be considered. The BFS was completed in the first half of 2014. In June 2014, the Exxaro board approved 
R3,8 billion for development of the project, subject to required licences and regulatory approvals being obtained. The
integrated water use licence (IWUL) was granted in October 2014. Rezoning appeals are expected to be finalised by mid-2015.
Detailed engineering will be conducted in 2015, after which it is expected that construction will begin, with commissioning
scheduled for the second half of 2017. 

Moranbah South project
The environmental impact study (EIS) authorisation to develop an underground dual long wall mine on the Moranbah South
project (50% joint arrangement with Anglo American plc), in the Bowen Basin of Queensland, Australia, was obtained. However, 
the development schedule of the project was intentionally reprioritised due to current adverse market conditions. This position
will be reviewed in the second half of 2015. The mine is anticipated to eventually reach 18Mtpa ROM production of
high-quality hard coking coal.

Reductants
Semi-coke capacity expansion is determined by the availability of suitable feedstock and is being executed in a phased
approach. The BFS for Retorts 5 and 6 is on schedule for completion during the first half of 2015. The concept study
for the addition of Retorts 7 and 8, which had been rescheduled for completion in the first quarter of 2015 to allow
incorporation of the scope change work done on Retorts 5 and 6, will no longer be performed in 2015 due to project
reprioritisation across the group.

Mines in closure
September 2014 marked the last production at Tshikondeni. Inyanda?s life of mine will end in the third quarter of
2015, which will result in lower export sales in 2015. 

Exxaro will be executing approved community projects in line with the committed social and labour plans.

Ferrous commodity business
Production and sales volumes
Changes in the product mix at FerroAlloys in 2014 resulted in an overall production increase of 1 637 tonnes (30%)
from 2013. This was mainly due to the addition of a blend product made from a combination of buy-ins and own product.

Sales volumes increased by 1 361 tonnes (19%) from 2013 mainly due to higher production and the commissioning of the new
ferrosilicon plant in November 2014.

Net operating loss
The overall ferrous net operating loss, excluding the pre-tax impairment of non-current assets relating to the Mayoko
iron ore project in 2014 of R5 760 million, increased by 239% to R478 million. The increase in losses reflects costs
incurred on the Mayoko iron ore project which are no longer eligible for capitalisation following the impairment, higher 
costs at FerroAlloys mainly due to the Letaba project which has been terminated, as well as an overall increase in group 
corporate costs and ferrous head-office costs allocated. This has been partly offset by an increase of R61 million in 
income earned from the Ultra-High Dense Medium Separation (UHDMS) plant. 

Equity-accounted investments
Equity-accounted income from Exxaro?s 19,98% interest in SIOC in 2014 decreased by 32% to R2 830 million, mainly due to a 
47% decrease in iron ore prices in 2014 compared to 2013?s closing price.

Portfolio improvement
Mayoko iron ore project
In January 2014, the mining convention was signed by the government of the RoC, along with rail and port framework 
agreements for the development of a 12Mtpa Mayoko mine. A concept study on a revised 12Mtpa project was concluded in 
June 2014. The outcome of this study and delays in concluding further definitive agreements for rail and port resulted 
in Exxaro impairing the investment in the project. Subsequently, the RoC government indicated that it would
take responsibility for the required upgrades to public rail and port infrastructure to enable Exxaro to transport and
export up to 12Mtpa of iron ore from the Mayoko mine. In July 2014, the RoC government signed the first amendment to the
mining convention extending the mining exploitation convention and the exploitation permit by 24 months. In September 
2014, the content of definitive agreements (comprising both rail and port related agreements) were agreed with relevant 
technical teams from the RoC government. Exxaro continues to actively liaise with the RoC government to finalise port and 
rail agreements before a final decision can be made on any future pre-feasibility studies.

As communicated in the Securities Exchange News Service (SENS) announcement in June 2014, any further development
expenditure on this project will be determined through a staged approach after considering the outcome of a PFS, BFS as 
well as commodity market conditions. Project expenditure for 2015 is expected to be limited to the cost of maintaining 
the minimal remaining footprint in the RoC, as well as costs relating to the project team?s interaction with the RoC
government until a final decision is made.

The independent review of the Mayoko iron ore project investment process by KPMG Inc was completed in the second half of 
2014 and findings are being implemented. The review covered the period from identifying African Iron Limited as a possible
acquisition up to June 2014, when the impairment was announced. The key findings of the review are that deviation from
standard internal project development governance processes, in pursuit of first-mover advantages, resulted in inadequate
identification of project specifications. An aggressive ramp-up schedule was assumed at acquisition of the project, which
was continually moved out largely as a result of the delay in concluding the mining convention and rail and port access
agreements, resulting in the gradual erosion of projected returns. An independent technical review of the project has
been completed in the first quarter of 2015, and the results are being analysed. The purpose of this review is to verify
the project assumptions for the project at concept study level.

Alloys
In 2014, Exxaro ceased its AlloyStream TM Letaba operation in Pretoria West. Assmang relinquished all rights and
obligations to AlloyStream technology and waived the pre-2016 intellectual property lock-in period, thereby exiting 
the JV arrangement. 

Exxaro?s FerroAlloys business embarked on an expansion of its operation in 2014 in reply to increased demand for its
product. Significant improvements were introduced into the design of the new plant optimising throughput and utilisation. 
The expansion project was successfully commissioned with the operation now able to almost double its existing capacity. 
The new facility will be ramped up in the first quarter of 2015.

The UHDMS processing technology is a breakthrough beneficiation process developed internally that uses a high-quality
gas atomised ferrosilicon powder only manufactured by Exxaro. Exxaro has developed unique ore characterisation
equipment, methodologies and a mobile pilot plant to support this technology. In conjunction with Kumba Iron Ore Limited, 
this technology has been proven to outperform existing beneficiation technologies relevant to low-grade, near-density ores. 
Exxaro is evaluating business opportunities for this technology on a large commercial scale with various partners.

TiO2 commodity business
Equity-accounted losses
Equity-accounted losses from Exxaro?s 43,98% effective interest in Tronox, together with the 26% equity interest in
Tronox SA and Tronox UK for the year ended 31 December 2014 were R568 million, mainly due to lower sales prices across
most products.

Subsequent to 31 December 2014, Tronox has made an announcement to aquire Alkali Chemicals, a division of FMC Corporation 
and the largest global producer of natural soda ash serving blue-chip customers in the glass, detergent and chemical 
manufacturing industries for US$1,64 billion in an all-cash transaction to create a leading inorganic chemicals company 
with enhanced scale, stability and financial strength well-positioned to pursue strategic growth initiatives. The 
transaction will be funded through existing cash and $600 million debt. It is expected that the transaction will be 
accretive to Tronox EBITDA, free cash flow and earnings upon closing. It is expected that the transaction will close in 
the first quarter of 2015 and subject to customary closing conditions. Alkali Chemicals is expected to add stability and 
has a history of consistently delivering strong operational and financial performance. Exxaro will continue to equity-account 
the Tronox investment, including the contribution made by the Alkali Chemicals business.

Energy business
Equity-accounted income
The equity-accounted investment in Cennergi has contributed R92 million in losses, which represented an 11% decrease
on losses recorded in 2013 mainly due to lower operating, business development and project costs.

Portfolio improvement
In 2013, the Botswana government embarked on a prequalification process for units 5 and 6 on an Independent Power Producer 
(IPP) basis. Cennergi was selected as one of seven prequalified bidders for the Morupule B Phase 2 process. Final bid 
documents were received from the Botswana government in December 2014 and bid submission is expected to be in May 2015. 
Cennergi is preparing a bid for the Morupule B phase 2 units 5 and 6 coal-fired base load IPP (2x150MW).

Cennergi continues the project execution phase of both its Amakhala Emoyeni Wind Farm (AEWF) project and Tsitsikamma
Community Development Wind Farm (TCWF) project for which financial close has been achieved. Construction on the 134MW
AEWF project began in June 2014 and is expected to be completed in the second quarter of 2016. The commercial operation 
date is planned for the third quarter of 2016. The Cookhouse and Bedford Community trusts together own 5% of the equity 
of the project. 

Construction on the 95MW TCWF project began in the third quarter of 2014 and is expected to be complete in the fourth
quarter of 2015. The commercial operation date is planned for the first quarter of 2016. Cennergi owns 75% of the
project, while Watt Energy and the community trust own 25%.

Both projects are progressing within contractual commitments, on time and within budget.

Other non-core businesses
Exxaro will review the Black Mountain Mining Proprietary Limited (Black Mountain) Swartberg and Gamsberg projects to determine
optimal timing for the sale of its equity interest in Black Mountain. Based on Exxaro?s strategic decision to divest from zinc 
and its minority shareholding in Black Mountain, Exxaro has indicated to Vedanta Resources plc (majority shareholder of Black 
Mountain) that it is unlikely to contribute additional shareholder funding to develop the Gamsberg project. Should Exxaro not 
meet future funding calls, Vedanta can elect to disproportionately contribute Exxaro?s portion of shareholder funding by 
advancing an additional shareholder loan to Black Mountain or by diluting Exxaro?s shareholding in Black Mountain.

In the third quarter of 2014, Black Mountain completed the definitive feasibility study on the Gamsberg project. The project 
was approved in November 2014 and construction is planned to start in the first half of 2015.
 
 
Table 5: Reviewed equity-accounted investments (Rm)
for the year ended 31 December
                            Equity-accounted income in profit or loss            Exxaro?s share of dividends received
                                       2014     2013                                      2014     2013   
SIOC                                  2 830    4 166                                     3 095    2 664   
Tronox                                 (568)    (638)                                      553      507   
Black Mountain                           77       77                                        71       58   
Mafube                                  267      131                                                      
Cennergi                                (92)    (103)                                                     
South Dunes Coal Terminal (SDCT)          1       (2)                                                     
Total                                 2 515    3 631                                     3 719    3 229   
                                                                 

Outlook
We expect that the challenging conditions facing most commodity markets in 2014 will continue into 2015. However,
significantly lower oil prices and more supportive initiatives from key central banks are expected to boost global real GDP
growth to the 3% level in 2015, last achieved in 2009. The average API4 price expected is around US$62 FOB RBCT per tonne.
The Rand exchange rate against the US$ is expected to remain weak for most of 2015, mainly due to the combination of lower
commodity prices and the overall strength of the US$.

Most of Exxaro?s capital expenditure in coal over the past five years has been directed at GMEP. While
the benefits of this expenditure are expected to realise in 2015, the delays recently announced by Eskom on the
synchronisation of unit 6 at Medupi power station present challenges in configuring the Grootegeluk mining plan. This will, 
in turn, require a revised focus on the operational productivity and configuration of the entire operation to maximise
efficiencies and profitability. To protect margins, there is a renewed focus on managing controllable costs across the 
business.  

The group will continue to exercise caution and discipline in allocating capital to projects in 2015. Like many others
in the industry, Exxaro is expected to reduce its expansion capital expenditure in the short to medium term.

Coal
We expect 2015 financial performance to be impacted by lower coal prices, continued Rand/US$ exchange rate volatility
and the availability of coal for the export market. With Inyanda nearing its end of life, Grootegeluk will become the
major supplier of coal to the export market. As such, export performance in 2015 will hinge largely on TFR rail
performance between the Waterberg and RBCT. In 2015, Transnet is expected to maintain its 2014 record performance
levels. Although RBCT reached record-setting levels in 2014 of 70,2Mtpa, lower export coal US$ prices are expected to 
affect export volumes.

Both thermal and coking coal seaborne markets are expected to remain weak given the general oversupply of coal and
subdued economic growth outlook globally. 

In the domestic market, demand for steam coal is expected to be stable. However, declining commodity prices in the
international market have a direct impact on sales of metallurgical coal. Strong resistance from metallurgical customers 
is expected as they struggle to reduce their own costs. Strong resistance from Eskom on commercial sales terms is also 
expected as  the state-owned company continues to experience operational and financial challenges. 

Coal will remain a significant part of South Africa?s energy mix even though the government?s integrated resource plan
2010 - 2030 sees renewable energy making up over 40% of all new electricity generated in South Africa over the next 
20 years.

Ferrous
The finalisation of the phase 1 close-out and metallurgical test work on the remaining drill samples on the impaired
Mayoko iron ore project will continue in the first half of 2015. In the meantime, the second amendment to the Mayoko 
mining exploitation convention is under way and will be submitted to the RoC government in the second quarter of 2015, 
after which  it is expected to be submitted to the RoC parliament for ratification. This should occur in the second 
quarter of 2015, subject to scheduled parliamentary sessions in the RoC.

TiO2
TiO2 pigment producers reduced inventories in 2014 as demand did not improve to sustainable levels and favourable market 
conditions for feedstock producers. In 2015, market conditions are expected to remain challenging for TiO2 pigment and 
feedstocks.

Energy
The electricity shortfall crisis at national level creates a renewed and accelerated need to invest in renewable
energy programmes in 2015. Following delays in the government?s third window of renewable energy procurement process, 
2015  is expected to bring a revived sense of urgency from government to commit to initiatives that can deliver 
sustainable solutions to the challenges of the shortfall in the supply of electricity. Exxaro remains committed to 
participating in any procurement opportunities that present themselves in 2015.

Accolades
Exxaro has won the 2015 Ethical Boardroom magazine?s Best Corporate Governance Award in the mining category in the
Africa region. The global publication delivers in-depth coverage and analysis of governance issues such as leadership,
committees and quorum, ethics and compliance, shareholder engagement, activism and risk management strategies. Each year, 
a panel of four adjudicators scores entrants under four pillars (Board Composition, Board Committees, Shareholder Rights
and Transparency) and 120 governance factors. The awards recognise companies that have shown exceptional leadership in
governance and highlight the important role that corporate governance plays in dictating a company?s success and a 
board?s contribution in creating long-term value.

Exxaro was named the overall winner in the Nkonki Inc. Top 100 Integrated Reporting Awards 2014. The awards recognise
South African companies excelling in the integrated reporting sphere. Exxaro also received an Excellence award for being
judged as one of the top 22 of the top 100 reports received and was awarded the number one spot in the Basic Metals
Industry category.

The group also achieved a top 10 placing in the third annual EY Excellence in Integrated Reporting Awards. The awards
recognise companies that are emerging as leaders in integrated reporting, as well as trends and best practice with
regard to integrated reporting. 

Annual dividend
Exxaro remains committed to returning regular income through dividends to its shareholders, as well as ensuring long-term 
capital growth on shares held.

Notice is given that a gross final cash dividend, number 24 of 210 cents (2013: 315 cents) per share, for the year
ended 31 December 2014 has been declared, payable to shareholders of ordinary shares. No secondary tax on companies (STC)
credits are available for offsetting against the dividend withholding tax, while total STC credits available for final
dividend number 22 amounted to R195 million, representing 54,51893 cents per share. The gross local dividend is 210 cents
per share for shareholders exempt from dividend withholding 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 dividend 
withholding tax. The net local dividend payable to shareholders who are subject to dividend withholding tax at a rate of 
15% is 178,50000 cents per share. The dividend withholding tax amounts to 31,50000 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: 358 115 505). 
Exxaro?s tax reference number is 9218/098/14/4. 

The salient dates on payment of the annual dividend are:                            
Last day to trade cum dividend on the JSE                Friday, 10 April 2015   
First trading day ex dividend on the JSE                 Monday, 13 April 2015   
Record date                                              Friday, 17 April 2015   
Payment date                                             Monday, 20 April 2015   
                                                                       
No share certificates may be dematerialised or rematerialised between Monday, 13 April 2015 and Friday, 17 April 2015,
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, 20 April 2015.

General
Additional information on the financial and operational results for the year ended 31 December 2014, as well as the 
presentation thereof can be accessed from the company?s website on www.exxaro.com.


On behalf of the board:

Len Konar            Sipho Nkosi                        Wim de Klerk 
Chairman             Chief executive officer            Finance director

4 March 2015


Corporate information

Registered office                                                 
Exxaro Resources Limited                                          
Roger Dyason Road                                                 
Pretoria West, 0183                                               
Tel: +27 12 307 5000                                              
Fax: +27 12 323 3400   

Transfer secretaries          
Computershare Investor        
Services Proprietary Limited  
Ground Floor                  
70 Marshall Street            
Johannesburg, 2001            
PO Box 61051                  
Marshalltown, 2107            

Directors                                                                                        
Dr D Konar*** (Chairman), SA Nkosi* (Chief Executive Officer), WA de Klerk* (Finance Director), 
S Dakile-Hlongwane***, Dr CJ Fauconnier***, NB Mbazima**^, VZ Mntambo**, RP Mohring***,     
V Nkonyeni***, 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)       

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

This report is available at www.exxaro.com
Date: 05/03/2015 07:05:00 Supplied by www.sharenet.co.za                     
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