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EXX - Exxaro Resources Limited - Audited group financial results and
unaudited physical information for the year ended 31 December 2011
Exxaro Resources Limited
Registration Number: 2000/011076/06
JSE Share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
("Exxaro" or "the company" or "the group")
Audited group financial results and unaudited physical information for the
year ended 31 December 2011
Highlights
Lost time injury frequency rate (LTIFR) down 20% to 0,20
MPower scheme testimony to meaningful employee empowerment, distributing over
R1 billion to 9 694 beneficiaries
Revenue increased by 24% to R21,3 billion
Net operating profit up 53% to R4 billion, excluding the impact of impairment
reversals and charges
Headline earnings per share up 40% to 2 098 cents per share
Final dividend of 500 cents per share; total dividend of 800 cents per share
for 2011
Lowlights
Regrettably, three fatalities
Cessation of zinc production at the Zincor refinery
Condensed group income statement (audited)
2011 2010
For the year ended 31 December Rm Rm
Revenue 12 471 10 116
Operating expenses (9 663) (7 628)
Net operating profit 2 808 2 488
Interest income (note 4) 159 116
Interest expense (note 4) (590) (432)
Income from investments 4 2
Share of income from equity-accounted investments 4 668 3 717
Profit before tax (note 2) 7 049 5 891
Income tax expense (note 5) (986) (732)
Profit for the year from continuing operations 6 063 5 159
Profit for the year from discontinued operations (note 6) 1 594 76
Profit for the year 7 657 5 235
Profit attributable to:
Owners of the parent 7 653 5 208
- continuing operations 6 073 5 167
- discontinued operations 1 580 41
Non-controlling interests 4 27
- continuing operations (10) (8)
- discontinued operations 14 35
Profit for the year 7 657 5 235
Condensed group statement of comprehensive income (audited)
2011 2010
For the year ended 31 December Rm Rm
Profit for the year 7 657 5 235
Other comprehensive income:
Exchange differences on translating foreign operations 800 (44)
Cash flow hedges (40) 204
Share of comprehensive income of associates (254) 40
Share of comprehensive income of non-controlling
interests 35 (57)
Net gain recognised in other comprehensive income 541 143
Total comprehensive income for the year 8 198 5 378
Total comprehensive income attributable to:
Owners of the parent 8 159 5 408
- continuing operations 6 641 5 167
- discontinued operations 1 518 241
Non-controlling interests 39 (30)
- continuing operations (6) (12)
- discontinued operations 45 (18)
Total comprehensive income for the year 8 198 5 378
Ordinary shares (million)
- in issue 354 358
- weighted average number of shares 348 347
- diluted weighted average number of shares 353 361
Attributable earnings per share continuing operations
(cents)
- basic 1 745 1 489
- diluted 1 720 1 432
Attributable earnings per share discontinued operations
(cents)
- basic 454 12
- diluted 448 11
Aggregate attributable earnings per share (cents)
- basic 2 199 1 501
- diluted 2 168 1 443
Condensed group statement of cash flows (audited)
2011 2010
For the year ended 31 December Rm Rm
Cash flows from operating activities
- cash retained from operations 6 503 4 106
- net financing costs (94) (256)
- tax paid (502) (430)
- dividends paid (2 123) (1 056)
Cash flows from investing activities
- capital expenditure (4 926) (2 677)
- proceeds from disposal of property, plant and equipment 496 60
- investments in intangible assets (119)
- dividends from investments and equity-accounted
investments 3 525 1 817
- increase in investments (325) (149)
- other 37
Net cash inflow 2 472 1 415
Net cash flows from financing activities
- shares issued 15 29
- increase in non-controlling interests` loans 11 6
- net borrowings repaid (631) (304)
Net increase in cash and cash equivalents 1 867 1 146
Cash and cash equivalents at beginning of year 2 140 1 023
Translation difference on movement in cash and cash
equivalents 158 (29)
Cash and cash equivalents at end of year 4 165 2 140
Cash and cash equivalents classified as non-current
assets held for sale at end of year 3 100
Cash and cash equivalents per Statement of Financial
Position 1 065 2 140
Cash and cash equivalents at end of year 4 165 2 140
Condensed group statement of financial position (audited)
2011 2010
At 31 December Rm Rm
Assets
Non-current assets
Property, plant and equipment 10 695 13 305
Biological assets 66 46
Intangible assets 128 75
Investments in unlisted associates (note 8) 4 764 3 880
Deferred tax 228 726
Financial assets 1 538 1 375
17 419 19 407
Current assets
Inventories 589 3 120
Trade and other receivables 2 763 3 752
Current tax receivable 105 105
Cash and cash equivalents 1 065 2 140
4 522 9 117
Non-current assets classified as held for sale (note 7) 14 979 85
Total assets 36 920 28 609
Equity and liabilities
Capital and reserves
Equity attributable to owners of the parent 23 588 17 437
Non-controlling interests 20 (23)
Total equity 23 608 17 414
Non-current liabilities
Interest-bearing borrowings 2 202 3 644
Non-current provisions 2 166 2 097
Post-retirement employee benefits 133 96
Deferred tax 1 845 1 353
6 346 7 190
Current liabilities
Trade and other payables 3 334 3 057
Interest-bearing borrowings 866 716
Current tax payable 50 147
Current provisions 151 33
4 401 3 953
Non-current liabilities classified as held for sale
(note 7) 2 565 52
Total equity and liabilities 36 920 28 609
Reconciliation of headline earnings (audited)
Gross Tax Net
For the year ended 31 December 2011 Rm Rm Rm
Profit for the year attributable to owners of the
parent 7 653
Adjusted for:
- impairment of property, plant and equipment 516 516
- reversal of impairment of property, plant and
equipment (869) (869)
- gains on disposal of subsidiaries (1) (1)
- gains or losses on disposal of property, plant and
equipment 3 (2) 1
- share of associates` gains or losses on disposal of 2 2
property, plant and equipment
Headline earnings (349) (2) 7 302
Headline earnings from continuing operations (34) 9 6 048
Headline earnings from discontinued operations (315) (11) 1 254
For the year ended 31 December 2010
Profit for the year attributable to owners of the
parent 5 208
Adjusted for:
- impairment of property, plant and equipment 4 (1) 3
- gains or losses on disposal of property, plant and
equipment (26) (26)
- share of associates` gains or losses on disposal of
property, plant and equipment 1 1
Headline earnings (21) (1) 5 186
Headline earnings from continuing operations (39) 5 128
Headline earnings from discontinued operations 18 (1) 58
For the year ended 31 December 2011 2010
Headline earnings per share aggregate (cents)
- basic 2 098 1 495
- diluted 2 069 1 437
Headline earnings per share from continuing operations
(cents)
- basic 1 738 1 478
- diluted 1 714 1 421
Headline earnings per share from discontinued operations
(cents)
- basic 360 17
- diluted 355 16
Group statement of changes in equity (audited)
Other components of equity
Foreign Financial
Share currency instruments Equity-
capital translation revaluation settled
Rm Rm Rm Rm
Balance at 1 January 2010 2 141 802 3 1 241
Profit for the year
Other comprehensive income (43) 203
Share of associates`
comprehensive income (43) 10
Issue of share capital 1 29
Share-based payments movements 148
Non-controlling interests
additional contributions
Dividends paid 2
Balance at 31 December 2010 2 170 716 216 1 389
Profit for the year
Other comprehensive income 800 (40)
Share of associates`
comprehensive income 72 20
Issue of share capital 1 15
Employee share scheme (MPower)
vesting issue of shares 174
Share-based payments movement 23
Non-controlling interests
additional contributions
Transfer to distributable
reserve (3)
Dividends paid 2
Balance at 31 December 2011 2 359 1 585 196 1 412
Final dividend paid per share
(cents) in respect of the 2010
financial year 300
Dividend paid per share (cents)
in respect of the 2011 interim
period 300
Final dividend payable per
share (cents) in respect of
2011 financial year 500
1 Issued to the Kumba Resources Management Share Trust due to options
exercised.
2 The STC on these dividends amounts to Rnil million after taking into
account STC credits.
Group statement of changes in equity (audited)
Attributable
Other Retained to owners of
reserves income the parent
Rm Rm Rm
Balance at 1 January 2010 8 721 12 908
Profit for the year 5 208 5 208
Other comprehensive income 160
Share of associates` comprehensive income 73 40
Issue of share capital 1 29
Share-based payments movements 148
Non-controlling interests additional
contributions
Dividends paid 2 (1 056) (1 056)
Balance at 31 December 2010 12 946 17 437
Profit for the year 7 653 7 653
Other comprehensive income 760
Share of associates` comprehensive income 9 (355) (254)
Issue of share capital 1 15
Employee share scheme (MPower) vesting
issue of shares 174
Share-based payments movement 23
Non-controlling interests additional
contributions
Transfer to distributable reserve (3)
Dividends paid 2 (2 217) (2 217)
Balance at 31 December 2011 9 18 027 23 588
Final dividend paid per share (cents) in
respect of the 2010 financial year
Dividend paid per share (cents) in respect
of the 2011 interim period
Final dividend payable per share (cents)
in respect of 2011 financial year
1 Issued to the Kumba Resources Management
Share Trust due to options exercised.
2 The STC on these dividends amounts to
Rnil million after taking into account STC
credits.
Group statement of changes in equity (audited)
Non-
controlling Total
interests equity
Rm Rm
Balance at 1 January 2010 1 12 909
Profit for the year 27 5 235
Other comprehensive income (57) 103
Share of associates` comprehensive income 40
Issue of share capital 1 29
Share-based payments movements 148
Non-controlling interests additional contributions 6 6
Dividends paid 2 (1 056)
Balance at 31 December 2010 (23) 17 414
Profit for the year 4 7 657
Other comprehensive income 35 795
Share of associates` comprehensive income (254)
Issue of share capital 1 15
Employee share scheme (MPower) vesting issue of
shares 174
Share-based payments movement 2 25
Non-controlling interests additional contributions 8 8
Transfer to distributable reserve (3)
Dividends paid 2 (6) (2 223)
Balance at 31 December 2011 20 23 608
Final dividend paid per share (cents) in respect of
the 2010 financial year
Dividend paid per share (cents)in respect of the 2011
interim period
Final dividend payable per share (cents)in respect of
2011 financial year
1 Issued to the Kumba Resources Management Share Trust due to options
exercised.
2 The STC on these dividends amounts to Rnil million after taking into
account STC credits.
Salient features
2011 2010
Rm Rm
Net asset value per share (Rand) 67 49
Capital expenditure
- incurred 4 926 2 677
- contracted 8 029 6 475
- authorised but not contracted 2 738 2 490
Capital expenditure contracted relating to captive mines,
Tshikondeni, Arnot and Matla, which will be financed by
ArcelorMittal South AfricaLimited (AMSA Limited) and Eskom 90 1
respectively
Contingent liabilities (note 10) 1 198 1 007
Contingent assets (note 11) 82 63
Operating lease commitments 60 132
Operating sublease rentals receivable 4 6
Calculation of movement in net debt
2011 2010
Rm Rm
Net cash inflow 2 472 1 415
- shares issued 15 29
- loans from non-controlling interests 11 6
- share-based payments (2)
- investmentcapitalised to joint venture loan 21
- finance lease 125
- non-cash flow movements in net debt applicable to currency
translation differences of transactions denominated in
foreign currency (8) 187
- non-cash flow movements in net debt applicable to currency
translation differences of net debt items of foreign
entities (151) (126)
Decrease in net debt 2 483 1 511
Notes to the group financial results (audited)
1. Basis of preparation
This condensed report for the year ended 31 December 2011 has 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 International Accounting Standard (IAS) 34 Interim Financial
Reporting, the requirements of the South African Companies Act, No 71 of
2008, as amended, the AC 500 standards issued by the Accounting Practices
Board or its successor and in compliance with the Listings Requirements of
the JSE Limited.
The group financial statements have been prepared on the historical cost
basis excluding financial instruments and biological assets, which are fairly
valued, and conform to International Financial Reporting Standards (IFRS).
The accounting policies adopted are in terms of IFRS and are consistent with
those applied in the annual financial statements for the year ended 31
December 2010.
During 2011 the following accounting pronouncements became effective:
Amended IFRS 1 First-time Adoption of International Financial Reporting,
Amended IFRS 7 Financial Instruments: Disclosures, Amended IAS 1 Presentation
of Financial Statements, Amended IAS 24 Related Party Disclosures and Amended
IAS 34 Interim Financial Reporting. These pronouncements had no material
impact on the accounting of transactions or the disclosure thereof.
The accounting standards, amendments to issued accounting standards and
interpretations, which are relevant to the group, but not yet effective at 31
December 2011, 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 pronouncements.
2. Profit before tax
2011 2010
For the year ended 31 December Rm Rm
Profit before tax is arrived at after:
Continuing operations
Depreciation, and amortisation of intangible assets (735) (663)
Net realised foreign currency exchange gains/(losses) 177 (30)
Net unrealised foreign exchange (losses)/gains (20) 6
(Losses)/gains on derivative instruments held for trading (154) 152
Fair value gains adjustment on financial instruments 11 10
Impairment reversals/(charges) and write-offs of trade and
other receivables 228 (44)
Royalties (41) (50)
Surplus on disposal of property, plant and equipment 38 48
Discontinued operations
Depreciation, and amortisation of intangible assets (468) (717)
Net realised foreign currency exchange gains/(losses) 361 (95)
Net unrealised foreign exchange gains/(losses) 35 (36)
Gains/(losses) on derivative instruments held for trading 196 300
Fair value gains adjustment on financial instruments 3 3
Impairment reversals/(charges) of property, plant and
equipment(note 3) 353 (4)
Impairment charges and write-offs of trade and other
receivables (2) (1)
Write-down to net realisable value of inventories (1) (50)
Royalties (100) (64)
Deficit on disposal of property, plant and equipment (37) (16)
3. Impairment reversals/(charges)
Impairment of property, plant and equipment (516)
Impairment of property, plant and equipment held for sale (4)
Total impairment charges (516) (4)
Partial reversal of impairment of property, plant and
equipment held for sale 869
Tax effect 1
Net effect of impairment reversals/(charges) on attributable
earnings 353 (3)
Net impairment reversals/(charges) attributable to
discontinued operations 353 (3)
Impairment charges relates to the carrying value of the
property, plant and equipment of the Zincor refinery.
The impairment reversal relates to the carrying value of the
property, plant and equipment of KZN Sands.
4. Net financing costs
Interest expense and loan costs (289) (321)
Finance leases 204 (70)
Interest income 223 135
Net interest income/(expense) 138 (256)
Interest adjustment on non-current provisions (429) (199)
Total net financing costs (291) (455)
Total net financing costs (291) (455)
- continuing operations (431) (316)
- discontinued operations 140 (139)
5. Tax rate reconciliation % %
Tax as a percentage of profit before tax 12,7 11,3
Tax effect of
- assessed losses not provided for (0,3) (0,2)
- capital losses (0,6) (0,3)
- disallowable expenditure (2,3) (0,2)
- exempt income 0,4 0,7
- special tax allowances 1,3
- share of associates and joint ventures 15,0 17,6
- tax rate differences 0,1
- Controlled Foreign Company profits (CFC) (0,2)
- prior year tax 0,1 (1,9)
- derecognition of deferred tax asset (6,2) (0,2)
- re-instatement of deferred tax asset 9,2
28,0 28,0
6. Discontinued operations
The Rosh Pinah mine assets classified as held for sale represent a separate
major line of business as well as geographical area of operation and form
part of a single co-ordinated plan to dispose of the assets and related
liabilities. Although the sale transaction is still conditional to the
completion of all conditions precedent, IFRS 5 Non-current Assets Held for
Sale and Discontinued Operations requires that the operations of the Rosh
Pinah mine is classified as discontinued operations.
On 27 July 2011 it was announced that Exxaro was planning to cease zinc
production at the Zincor refinery. Following the necessary consultations,
Zincor ceased production on 12 December 2011.
On 26 September 2011, Exxaro and Tronox Incorporated announced that New
Tronox will acquire Exxaro`s mineral sands operations, which include,
Exxaro`s 50% interest in the Tiwest Joint Venture with Tronox in Western
Australia, along with 74% of Exxaro`s KZN Sands and Namakwa Sands operations
in South Africa, in exchange for approximately 38,5% of New Tronox`s equity.
The Glen Douglas dolomite mine investment, which was disclosed as a Non-
Current Asset Held for Sale as at 31 December 2010, was sold to JSE-listed
materials supplier Afrimat Limited on 1 January 2011. The investment was
therefore effectively only accounted for one day in the year ended 31
December 2011.
Financial information relating to the discontinued operations for the period
to the date of disposal is set out below.
Financial performance and cash flow information
2011 2010
For the year ended 31 December Rm Rm
Revenue 8 834 7 039
Operating expenses (7 261) (6 891)
Net operating profit 1 573 148
Net financing income/(cost) (note 4) 140 (139)
Share of income from investments 5
Profit before tax (note 2) 1 718 9
Income tax (expense)/benefit (124) 67
Profit for the year from discontinued operations 1 594 76
Cash flow attributable to operating activities 927 643
Cash flow attributable to investing activities (286) (923)
Cash flow attributable to financing activities 1 979 437
Cash flow attributable to discontinued operations 2 620 157
Gains/(losses) on the disposal of subsidiaries 1
Glen
Turkey Douglas Total
Year ended 31 December 2011 Rm Rm Rm
Consideration received:
Cash 17 33 50
Total disposal consideration 17 33 50
Carrying amount of net assets sold (12) (37) (49)
Gain/(loss) on sale before and after income tax 5 (4) 1
1 The Minerals Sands Operations and the Rosh Pinah Operation have been
classified as discontinued as part of IFRS 5 requirements where a separate
major line of business has been classified as held for sale. Actual sale has
not occurred at 31 December 2011, whilst Zincor has been classified as
discontinued based on the board decision to cease production.
7. Non-current assets classified as held for sale
2011 2010
At 31 December Rm Rm
The major classes of assets and liabilities classified
as held for sale are as follows:
Assets
Property, plant and equipment 6 771 34
Intangible assets 132
Deferred tax 465
Financial assets 158 21
Inventories 2 403 8
Trade and other receivables 1 932 22
Current tax receivable 18
Cash and cash equivalents 3 100
14 979 85
Liabilities
Interest-bearing borrowings 834
Provisions 692 29
Deferred tax 69 8
Trade and other payables 968 14
Current tax payable 2 1
2 565 52
Total at end of year 12 414 33
Included above are the assets and liabilities of Rosh Pinah, the Australian
and South African Mineral Sands operations as well as other assets and
liabilities classified as held for sale. Management is committed to the sale
of the other assets and liabilities within the next 12 months.
8. Investments
2011 2010
At 31 December Rm Rm
Market value of listed investments 44
Directors` valuation of unlisted investments in associates 22 715 20 782
Directors` valuation of unlisted investments in other
financial assets 392 407
Directors` valuation of unlisted investments in non-
current assets held for sale 2
9. Net cash/(debt)
Net cash/(debt) 263 (2 220)
Net cash/(debt) is calculated as being interest-bearing borrowings less cash
and cash equivalents, including those classified as non-current assets held
for sale.
10. Contingent liabilities
Comprises guarantees in the normal course of business from which it is
anticipated that no material liabilities will arise, including guarantees to
banks and other institutions. The increase in 2011 is attributable to the
increase in the group`s share of contingent liabilities of associates and
joint ventures. In 2010 the increase was due to guarantees to the Department
of Mineral Resources (DMR) in respect of environmental liabilities on
immediate closure of mining operations.
Includes the group`s share of contingent liabilities of associates and joint
ventures of R233 million (2010: R117 million). These contingent liabilities
have no tax impact. The timing and occurrence of any possible outflows are
uncertain.
11. Contingent assets
A surrender fee of R82 million (2010: R63 million) in exchange for the
exclusive right to prospect, explore, investigate and mine for coal within a
designated area in Central Queensland and Moranbah, Australia, conditional to
the grant of a mining lease.
12. Related party transactions
During the year the company and its subsidiaries, in the ordinary course of
business, entered into various sale and purchase transactions with associates
and joint ventures. These transactions were subject to terms that are no less
favourable than those arranged with third parties.
13. Events after the reporting period
Subsequent to the reporting date of 31 December 2011 and further to the
unsuccessful offmarket takeover bid for Australian junior miner Territory
Resources, Exxaro, through its wholly-owned subsidiary Exxaro Australia Iron
Investments (Pty) Limited, launched an off market takeover bid for African
Iron Limited. This offer initially remained open for acceptance until 14
February 2012. By 14 February 2012 Exxaro obtained a shareholding of 66,6% in
African Iron Ore Limited, with the offer automatically extended by a further
14 days until 28 February 2012, in line with the Australian Stock Exchange
take over rules. The bid does not represent an adjusting event.
The directors are not aware of any matter or circumstance arising after the
statement of financial position date up to the date of this report, not
otherwise dealt with in this report.
14. JSE Limited Listings Requirements
The financial year end results announcement has been prepared in accordance
with the Listings Requirements of the JSE Limited.
15. Corporate governance
The group complies in all material respects with the Code of Corporate
Practice and Conduct published in the King III Report on Corporate
Governance.
16. Mineral Resources and Mineral Reserves
The group`s Mineral Resources and Ore Reserves have been reviewed during the
year to provide updated estimates. No material changes to the Mineral
Resources and Ore Reserves disclosed in the Exxaro annual report for the year
ended 31 December 2010 were identified other than depletion due to continued
mining activities.
17. Audit opinion
The independent external auditors, PricewaterhouseCoopers Inc., have audited
the consolidated annual financial statements of Exxaro Resources Limited from
which the condensed consolidated financial results have been derived. The
condensed financial statements are consistent in all material respects with
the consolidated group annual financial statements. The audit was conducted
in accordance with International Standards of Auditing. The auditors have
issued an unqualified audit opinion on the consolidated annual financial
statements.
A copy of the auditors` audit report is available for inspection at the
company`s registered office.
Comments
Comparability of results
Comments are based on a comparison of the group`s audited financial results
and unaudited physical information for the years ended 31 December 2011 and
2010 respectively. These results are not comparable due to the R869 million
partial impairment reversal of the carrying value of the property, plant and
equipment at KZN Sands, which was initially accounted for in the year ended
31 December 2009, and a R516 million impairment of the carrying value of the
property, plant and equipment at the Zincor refinery.
After fulfilment of all suspensive conditions, the Glen Douglas dolomite mine
was sold to Afrimat Limited effective 1 January 2011. The investment was
therefore effectively only accounted for one day in the year ended 31
December 2011.
Reported actual segment results (Audited)
2011 2010
For the year ended 31 December Rm Rm
Revenue
Coal 12 763 10 515
Tied operations 3 140 2 952
Commercial operations 9 623 7 563
Mineral Sands 6 587 4 640
KZN Sands 1 196 1 288
Namakwa Sands 2 904 1 801
Australia Sands 2 487 1 551
Base Metals 1 846 1 787
Rosh Pinah 698 674
Zincor 1 550 1 598
Inter-segmental (402) (485)
Other 109 213
Total 21 305 17 155
Net operating profit
Coal 3 339 2 690
Tied operations 309 186
Commercial operations 3 030 2 504
Mineral Sands 2 678 179
KZN Sands 1 753 (66)
Namakwa Sands 987 107
Australia Sands 938 138
Base Metals (1 145) (113)
Rosh Pinah 102 143
Zincor 2 (1 239) (171)
Other (8) (85)
Other (491) (120)
Total 4 381 2 636
1 Includes a partial impairment reversal of R869 million of the carrying
value of the property, plant and equipment at KZN Sands, which impairment was
initially accounted for in 2009.
2 Includes an impairment of R516 million of the carrying value of the
property, plant and equipment at Zincor refinery.
Exchange rates
An average exchange rate of R7,28 (spot average of R7,22) to the US dollar
(US$) was realised for the year ended 31 December 2011 compared to R7,72
(spot average of R7,30) for the year ended 31 December 2010. Unrealised
foreign currency losses, on the revaluation of monetary items denominated in
a foreign currency were recorded based on the relative strength of the local
and Australian currency to the US$ at 31 December 2011. The relative strength
of the Australian dollar (AU$) also continued to impact negatively on the
financial results of the mineral sands business in Australia. An average rate
of US$0,99 cents (spot average of US$1,03 cents) to the AU$ was realised
compared with US$0,87 cents (spot average of US$0,92 cents) in 2010.
Revenue
Group consolidated revenue increased by 24% to R21,3 billion due to higher
selling prices across Exxaro`s commodities despite lower total coal sales and
the adverse impact of a stronger local and Australian currency.
Coal
Revenue was 21% higher mainly due to higher export sales at higher prices
despite the lower volumes at the mines captive to Eskom, combined with lower
other domestic sales volumes.
Mineral Sands
Revenue increased by 42% to R6,6 billion with lower sales volumes recorded at
higher prices.
Base Metals
Revenue increased marginally by 3% as a 1% higher average realised zinc price
of US$2 191 per tonne partially offset the lower zinc metal sales volumes.
Net operating profit
Group consolidated net operating profit was R1 392 million or 53% higher at
R4 billion after exclusion of the R869 million partial reversal of the
impairment of the carrying value of the property, plant and equipment at KZN
Sands accounted for in 2009, as well as the R516 million impairment of the
carrying value of the property, plant and equipment at the Zincor refinery.
Coal
The coal business reported a 24% increase in net operating profit to R3 339
million at an operating margin of 26% as higher selling prices and stronger
international demand were only partially negated by lower local demand. The
weaker domestic performance was partially as a result of lower demand from
AMSA Limited as well as lower sales volumes from the operations tied to
Eskom. Despite the lower sales volumes from the mines tied to Eskom, these
operations recorded a 66% increase in net operating profit to R309 million,
resulting from a revised manner by which the group applies the discount rates
on the calculation and recovery of rehabilitation costs contributing R132
million to this number. The net impact of the revised calculation results in
additional rehabilitation costs recoverable from Eskom.
Mineral Sands
The higher revenue recorded translated into a higher consolidated net
operating profit of R1 702 million even after excluding the partial
impairment reversal of the property, plant and equipment at KZN Sands of R869
million and non-recurring profit recognised on the Tronox International
(Tronox) buy back transaction amounting to R107 million. Sales volumes at
Namakwa Sands and Australia Sands increased on the back of higher demand. KZN
Sands` sales were however lower due to combined furnace unavailability
(Furnace 1 down for four months in 2011 and Furnace 2 down for eight months
in 2011).
The stronger AU$ against the US$ has been partially mitigated by the hedging
of US$ receivables of the Australian operation, with realised foreign
exchange gains of R90 million in 2011.
Base Metals
Despite the marginally higher revenue recorded, a net operating loss of R629
million, excluding the impairment of carrying amount of property, plant and
equipment at the Zincor refinery, was reported mainly due to the previously
announced decision to cease zinc production invariably resulting in an under
recovery of fixed expenses. The impact of continued higher than inflation
increases in electricity and maintenance expenses also continued to
contribute negatively to the base metals results.
Rosh Pinah`s operating results were also lower based on lower zinc
concentrate production and sales.
Other
Net expenditure increased primarily from non-recurring costs associated with
the implementation of Exxaro`s new operating model and associated technology
enablement as well as other project related costs.
Earnings
Attributable earnings, inclusive of Exxaro`s equity accounted investment in
associates, amounted to R7 653 million or 2 199 cents per share, up 47% from
2010`s 1 501 cents per share.
Equity accounted investments in the post-tax profits of associates consists
of Exxaro`s 19,98% interest in Sishen Iron Ore Company (Pty) Limited (SIOC)
of R4 456 million, 26% in Black Mountain Mining (Pty) Limited (Black
Mountain) of R210 million and 22% in the Chifeng zinc refinery of R2 million.
Headline earnings which exclude, inter alia, the impact of the impairment and
partial impairment reversal, were R7 302 million or 2 098 cents per share.
This represents a 41% increase on the comparable 2010 earnings of R5 186
million or 1 495 cents per share.
Cash flow
Cash retained from operations was R6 503 million for the group. This was
primarily used to fund net financing charges of R94 million, taxation
payments of R502 million, dividend payments of R2 123 million, and capital
expenditure of R4 926 million of which R3 301 million was invested in new
capacity and R1 625 million applied to sustaining and environmental capital.
R3 070 million of the expansion capacity expenditure was for the Grootegeluk
Mine Expansion Project (GMEP) for the Medupi power station. After the receipt
of R3 525 million in dividends, primarily from SIOC, the group had a net cash
inflow of R2 472 million for the year. The final dividend for 2011 will
amount to a further cash outflow of approximately R1 771 million offset by
the dividend inflow from SIOC of approximately R1 958 million.
Net debt of R2 220 million at 31 December 2010 has inverted to a net cash
position of R263 million at 31 December 2011.
Safety and sustainable development
Regrettably three fatalities were suffered during the first seven months of
2011. The group continues to pursue its commitment to a zero injury and
fatality environment. In 2012, Exxaro will implement further initiatives to
enhance the current safety and risk assessment and control effectiveness
drive. The average LTIFR per two hundred thousand man-hours worked improved
to 0,20, from 0,25 in 2010, reflecting a 20% improvement year-on-year and
below the group`s target at 0,21.
The 2011 HIV/AIDS programme target for testing was 75%. This target was
exceeded when 86% of employees, including contractors, underwent voluntary
testing. The HIV prevalence rate is estimated at 12% of permanent employees
(12,8% including contractors) as compared to the industry average of 25%.
Exxaro has trained 153 community peer educators around six of the Mpumalanga
business units as part of the HIV community awareness programme. The training
will be extended to business units in the Waterberg region in 2012.
In addition to the 16 Integrated Water Use Licences (IWULs) already granted
in terms of National Water Act, No 36 of 1998, two further IWULs were
approved and five Environmental Authorisations were granted in terms of the
National Environmental Act, No 107 of 1998 in 2011.
All 16 Exxaro operated business units have retained their ISO 14001 and OHSAS
18001 certification in 2011.
Creating wealth for employees through meaningful empowerment
When Exxaro was created in November 2006 following the unbundling of Kumba
Resources, MPower was created as part of the group`s commitment to broad
based ownership. Only employees up to lower management level qualified to be
beneficiaries of the scheme as middle and senior management participate in
management share incentives schemes. MPower held approximately 3% of Exxaro`s
issued shares with each of the 9 694 beneficiaries` assigned units notionally
linked to the shares held by the scheme. Shares held by MPower were sold in
the last quarter of 2011, generating over R1 billion for distribution among
the beneficiaries. The distribution varied dependent on number of units
assigned; in turn based on individual length of MPower membership. Each
beneficiary that participated for the full five years of the scheme received
a pre-tax distribution of R135 102. In addition to this distribution, MPower
has already paid a total of R81,5 million in dividends to participants.
Physical information (unaudited)
Year ended 31 Six months ended 31
December December
(`000 TONNES) 2011 2010 2011 2010
Coal
Production
Power station coal 32 532 36 767 16 832 18 498
Tied operations 1 12 441 16 461 6 071 8 096
Commercial operations 20 091 20 306 10 761 10 402
Coking coal 2 161 2 419 920 1 232
Tied operations 1 299 285 165 161
Commercial operations 1 862 2 134 755 1 071
Steam coal 7 337 7 502 3 535 3 984
Char 142 114 65 65
Total 42 172 46 802 21 352 23 779
Sales
Eskom coal 32 301 36 428 16 470 18 049
Tied operations 1 12 443 16 438 6 067 8 082
Commercial operations 19 858 19 990 10 403 9 967
Other domestic coal 4 670 5 044 1 840 2 597
Tied operations 1 325 260 159 143
Commercial operations 4 345 4 784 1 681 2 454
Coal export 4 898 4 106 2 814 2 264
Char 129 122 55 70
Total 41 998 45 700 21 179 22 980
Mineral Sands 2
Production
Ilmenite 771 718 404 351
Zircon 195 196 101 102
Rutile 67 63 35 35
Synthetic rutile 110 90 56 39
Pig iron (LMPI) 160 153 92 72
Scrap iron 8 12 4 4
Slag tapped 277 262 153 121
Chloride slag 281 232 131 148
Sulphate slag 49 52 23 36
Leucoxene 10 13 5 6
Pigment 76 57 32 32
Total 2 004 1 848 1 036 946
Sales
Ilmenite 15 15
Zircon 173 243 81 119
Rutile 66 79 34 44
Synthetic rutile 37 30 21 7
Pig iron (LMPI) 170 194 91 87
Scrap iron 4 3 3 2
Chloride slag 274 264 148 166
Sulphate slag 50 39 22 32
Leucoxene 8 16 4 9
Pigment 71 55 28 31
Total 868 923 447 497
Base Metals
Production
Zinc concentrate 108 120 55 60
Rosh Pinah 89 101 46 49
Black Mountain 19 19 9 11
Zinc Metal 101 120 44 66
Zincor 73 90 32 47
Chifeng 3 28 30 12 19
Lead concentrate 36 37 16 20
Rosh Pinah 16 19 7 10
Black Mountain 20 18 9 10
Sales
Zinc metal sales 114 119 51 60
Domestic 86 90 40 44
Export 28 29 11 16
Lead concentrate sales
Export 18 20 11 13
1 Tied operations refer to mines that supply their entire production to
either Eskom or AMSA Limited in terms of contractual agreements.
2 Includes Exxaro Sands Australia`s interest in the Tiwest joint venture.
3 Exxaro`s effective interest in the Chifeng refinery is disclosed.
Operations
Coal
Production
Power station coal production at the Eskom tied operations was 24% lower due
to previously reported adverse geological conditions at the Arnot mine in
March 2011, the closure of the Mooifontein open cast operation as well as the
flooding in Mine 2 at M atla in February and June respectively.
Production volumes at the commercial mines remained relatively in line with
the previous year.
Coking coal production declined by 11% because of lower demand from AMSA
Limited, partially offset by higher production at Tshikondeni due to the
higher contribution from the mini-pits initiated in April 2011.
Steam coal production was 2% lower due to lower production at the NBC and NCC
mines. The open pit operation at NCC reached the end of its economic life in
the first quarter of 2010. This, together with challenging underground
conditions, resulted in lower production than in 2010. NBC experienced a
combination of challenging geological and equipment problems which led to
lower production. Higher production was, however, recorded at Leeuwpan as a
result of improved feed tempo to the dense medium separation plant and at
Inyanda due to higher plant availability and throughput to meet increased
demand.
The Char plant production was 25% higher due to improved availability and
higher feed rate per hour.
Sales
Sales of power station coal tonnes to Eskom, were 11% lower as a result of
lower production at Matla and Arnot. This was partially offset by higher
sales recorded at Leeuwpan. Domestic non-Eskom sales decreased by 9% mainly
due to production challenges at NBC.
Export sales tonnes were 19% higher than in 2010, mainly as a result of
increased performance by Transnet Freight Rail (TFR).
Mineral sands
Production
The consolidated mineral sands business reported an increase in production of
most of its products. Lower heavy minerals concentrate production, as the KZN
Sands Hillendale mine nears its end of life resulting in lower grades was
offset by higher production in Australia as well as at Namakwa Sands from
increased side feed. Titanium slag production was also lower at KZN Sands as
Furnace 1 and 2 were down for four and eight months respectively.
Zircon production reflects a volume increase at Namakwa Sands from better
head grades. Lower production in Australia due to lower mineral grades was
offset by improved recovery. Rutile production was 6% higher as increased
production at Namakwa Sands from improved recovery and higher mineral grades
was only partially offset by lower production in Australia. Synthetic rutile
production in Australia was 22% higher in 2011 due to the 2010 plant shut
which limited production in 2010.
Record pigment production was achieved in 2011 as a result of a 28%
improvement in performance from the existing plant, complemented by
production volume from the pigment plant expansion commissioned in the
previous year.
Sales
The increase in mineral sands product prices coupled with higher demand
resulted in increased sales volumes at Namakwa Sands and Australia Sands,
offset by lower volumes at KZN Sands due to furnace downtime.
Base Metals
On 27 July 2011 it was announced that Exxaro was planning to cease zinc
production at the Zincor refinery. Following the necessary consultations,
Zincor ceased zinc production on 12 December 2011.
Production
Production of zinc metal at the Zincor refinery of 73kt was 17kt lower than
in 2010. Zinc concentrate and lead production at Rosh Pinah were 12kt and 3kt
lower than in 2010 respectively. Zinc production grades were however 2%
higher due to recovery improvements on the floatation plant.
Sales
Domestic zinc metal sales at Zincor were 4% lower at 86kt mainly due to lower
production as a result of the planned ramp-down.
Capital expenditure and project pipeline
Exxaro`s growth initiatives are focused on diversifying the business further
with carbon,reductants, ferrous and energy projects aligned with the groups
approved commodity strategy.
Coal
Construction on GMEP, to supply Eskom with 14,6Mtpa of coal for the Medupi
power station, continues to progress to deliver first coal in May 2012 and is
expected to be completed within budget. Overall project progress has
increased to 72% completion. The total project spend to date is R4,4 billion
with total capital expenditure for the project still forecast at R9,5
billion. Total funds committed to date amount to approximately R6,5 billion.
The Thabametsi development project, as a supplier of coal to a base load
Independent Power Producer (IPP), is expected to reach first coal production
by 2016/17, dependent on the Waterberg IPP and water supply development
schedule.
Exxaro continues to engage with the relevant stakeholders for the conclusion
of implementation plans for an integrated infrastructure for the Waterberg
coalfields which will include the supply of water, rail, road and housing
requirements.
Exxaro entered into a prospecting joint venture agreement with Sasol Mining
to investigate the commercial viability of the development of a new coal mine
in the Waterberg to also supply Sasol`s potential new 80 000 barrels per day
inland coal to liquids facility (Project Mafutha). The detailed pre-
feasibility study for Project Mafutha has now been completed. Based on the
findings of the pre-feasibility study, global environmental risks, and in the
absence of a commercially viable carbon emission solution which is
realistically not anticipated before 2020, the decision has been taken to not
proceed with Project Mafutha at this stage.
Studies regarding the evaluation of the Phase 2 expansion of the Sintel Char
plant to produce an additional 140Ktpa of char and the production of market
coke from semi-soft coking coal at Grootegeluk continue to progress. The
studies are still expected to be completed in the second half of 2012.
Exxaro`s application for a mining right for the Belfast project has been
accepted by the DMR. The bankable feasibility study is expected to be
completed by the second quarter of 2012. Specialist studies, as required by
the National Environmental and National Water Acts, were submitted to the
relevant authorities in the fourth quarter of 2011. Start-up and first
production is expected to be in 2014.
A concept study completed on the Moranbah South project indicated high
potential for a dual long wall mine to produce between 10 and 12 Mtpa of
premium quality hard coking coal. The pre-feasibility study commenced in 2011
and is expected to be completed in the second quarter of 2012,whereafter a
bankable feasibility study will commence.
Mineral Sands
On 26 September 2011, Exxaro and Tronox announced that New Tronox will
acquire Exxaro`s mineral sands operations, which include Exxaro`s 50%
interest in the Tiwest Joint Venture with Tronox in Western Australia, along
with 74% of Exxaro`s KZN Sands and 74% of Namakwa Sands operations in South
Africa, in exchange for approximately a 38,5% shareholding in New Tronox. The
long term partnership is expected to enhance production capabilities and
implement technical efficiencies in the integrated process, creating a truly
global, vertically integrated titanium dioxide pigment producer. This is
expected to result in a strong platform for future growth uniquely positioned
to capitalise on favourable market dynamics and to serve the needs of the
ever growing pigment and zircon customer base across the globe. It is still
expected that the transaction will close in the second quarter of 2012
following New Tronox shareholder and regulatory approvals.
Exxaro awaits the customary regulatory and environmental approvals for the
Fairbreeze project before construction can commence. Such approvals were not
obtained in the second half of 2011 as previously expected. Detailed design
was however completed in the second half of 2011. The department of
Agriculture, Environmental Affairs and Rural Development requires additional
information of Fairbreeze`s Basic Assessment Report on air quality, traffic
and agricultural studies, as well as rehabilitation reports. This report,
with the requested information, was sent on 9 February 2012 to Interested and
Affected Parties for review by 9 March 2012 and Exxaro also awaits the
decision from the relevant authorities by the end of June 2012.
Commissioning is now only expected in the first half of 2014.
A partial reversal of the previous impairments of the carrying value of the
property, plant and equipment at KZN Sands was made in the second half of
2011. A decision on the reversal of the remaining portion will be taken once
the regulatory and environmental approvals for Fairbreeze have been obtained.
Base Metals
The formal process to divest from the base metals business commenced early in
May 2011. Exxaro received several offers for the Rosh Pinah zinc and lead
mine in Namibia, following which it has entered into an agreement relating to
the disposal of its 50,04% shareholding in, and claims against, Rosh Pinah
Zinc Corporation to a subsidiary of Glencore International AG for R939
million, subject to final working capital and net debt adjustments. The
transaction agreement contains terms and conditions that are customary for
transactions of this nature, including, inter alia, regulatory approvals to
be obtained in Namibia and South Africa. It is expected that the transaction
will be completed by the second quarter of 2012.
No offer was received for the Zincor zinc refinery in Springs, South Africa.
It was consequently decided to cease zinc production at Zincor due to the
refinery becoming uneconomical as a result of the high cost of zinc feedstock
as well as escalating transport, electricity and labour costs. Zinc
production was ramped down and finally ceased during December 2011. The
refinery has been put on care and maintenance with a team appointed to
evaluate any potential future use of the facility`s assets.
In addition to the impairment of the carrying value of the property, plant
and equipment at Zincor made on 30 June 2011, additional impairments were
also made in the second half of 2011 arising from capital commitments for the
remainder of 2011.
Although discussions for the divestment of Exxaro`s shareholding in the
Chifeng zinc refinery in China were well advanced, the potential buyer was
unable to meet contractual obligations and the transaction was terminated.
Exxaro still plans to sell this business and renewed efforts will be made
during 2012 to divest from this asset.
Energy
Exxaro continues to explore opportunities in the energy markets with a focus
on cleaner energy initiatives. To this end, Exxaro and its new equity partner
have agreed all the salient points of the shareholders` agreement and will
aim to sign the definitive agreement by the end of the first quarter of 2012.
Exxaro intends submitting five renewable energy projects in terms of the
South African government`s drive to procure 3 725MW of renewable energy
electricity from the private sector. These projects will be submitted in the
second window of submission, which closes on 5 March 2012, through the
Department of Energy`s (DoE) Request for Qualification and Proposals for new
Generation Capacity under the IPP Procurement Programme issued on 3 August
2011. The five projects entail two solar projects and three wind projects.
The board of directors approved the outcome of the bankable feasibility study
for a 14MW co-generation plant at Namakwa Sands in the third quarter of 2011.
Construction of the power plant is expected to start in the second quarter of
2012, with commercial operation date planned for the fourth quarter of 2012.
The Clean Development Mechanism registration of this project is underway.
The pre-feasibility study for the 60MW co-generation plant at Grootegeluk
mine is in the final stages and is now expected to be completed in the first
half of 2012.
The facilitation for the development of a 600MW coal-fired base load power
station in the Waterberg is underway. Non-binding term sheets for the off-
take of 1 150MW of electricity have been signed between Exxaro and industrial
off-takers. Four base load IPPs have been selected, with the preferred bidder
expected to be selected in the first half of 2012. The pre-feasibility study
of the project will progress during 2012 and a bankable feasibility study is
planned conditional to the establishment of appropriate enabling environment
in which such a development can proceed.
A clearer indication of the potential for economic gas flow by means of the
evaluation of opportunities for underground coal gasification in both South
Africa and Botswana, is now only expected in the first half of 2012.
Ferrous
AlloyStream`slarge scale demonstration facility to commercialise the
technology for beneficiation of manganese ore into high carbon ferromanganese
alloy together with Assmang Limited, is expected to be commissioned in the
first quarter of 2012. The Ferromanganese furnace (Project Letaba)
demonstration facility was completed in the fourth quarter of 2011.
Subsequent to the reporting date of 31 December 2011 and further to the
unsuccessful offmarket takeover bid for Australian junior miner Territory
Resources, Exxaro, through its wholly-owned subsidiary Exxaro Australia Iron
Investments (Pty) Limited, launched an off-market takeover bid for African
Iron Limited. This offer initially remained open for acceptances until 14
February 2012. By 14 February 2012 Exxaro obtained a shareholding of 66,6% in
African Iron Ore Limited, with the offer automatically extended by a further
14 days until 28 February 2012, in line with the Australian stock exchange
takeover rules.
African Iron Limited is an Australian-listed and domiciled iron ore
development company working on the exploration and evaluation of the Mayoko
Iron Ore and Ngoubou-Ngoubou Projects, located approximately 300km north-east
of Pointe-Noire in the Republic of Congo in central West Africa. It owns a
92% interest in the Mayoko Iron Ore Project which currently has a Joint Ore
Reserves Committee (JORC) code compliant mineral resource of 121 million
tonnes of iron ore. The Mayoko Iron Ore Project represents a near term
development opportunity in an emerging iron ore province in central West
Africa with an existing underutilised, heavy haulage mineral railway passing
within 2km of the main prospect. African Iron`s second opportunity is its 85%
interest in the 944km2 Ngoubou-Ngoubou Authority to Prospect, which is
contiguous with Mayoko. African Iron Limited`s assets provide an excellent
match to Exxaro`s stated objective of gaining operational exposure in iron
ore and represent a reasonably sized opportunity, which will allow Exxaro to
leverage its bulk commodity and iron ore expertise.
Conversion of mining rights
All of Exxaro`s old order mining licences have been converted to mining
rights. The converted mining rights for Grootegeluk and Gravelotte have been
executed in the second half of 2011. The DMR has confirmed the granting of
converted mining rights for Tshikondeni, Matla, Strathrae, Arnot and Glisa.
These rights still need to be scheduled for execution by the DMR. Exxaro is
continuously in consultation with the different regional offices of the DMR
to expedite the execution process.
Outlook for 2012
Greater emphasis will be placed to create and maintain a safe, healthy and
environmentally friendly working environment.
The group`s consolidated results for 2012 will continue to be impacted by the
trading levels of the local currency and the AU$ against the US$. At 31
December 2011 Exxaro had US$200 million of hedging in place at an average
exchange rate of R7,56 for the local operations as well as US$17 million at
an average rate of US$0,97 to the AU$ for the Australian operation.
The coal business will continue to focus optimising and growing its market
position in the supply of coal to Eskom as well as the other domestic and
export markets while considering alternatives to increase export volumes.
Continued reliable performance from TFR and a progressive increase in
allocation at the Richards Bay Coal Terminal remain paramount. International
coal prices are expected to decrease in 2012 along with lower coking prices
while volumes to Eskom and AMSA Limited should remain stable.
Mineral sands` short to medium term focus remains the granting of relevant
regulatory approvals for the construction of Fairbreeze, as well as the
finalisation of the New Tronox transaction. Feedstock prices should increase
significantly supported by higher demand. A recovery in demand for Zircon is
also expected in the second quarter of 2012.
Base metals finalisation of the sale of Rosh Pinah to a subsidiary of
Glencore International AG is expected in the second quarter of 2012, whilst
the future application of the Zincor plant is still under investigation.
The financial information on which the outlook statement is based has not
been reviewed nor reported on by the group`s auditors.
Changes to the board
Ms N Langeni resigned as non-executive director effective 18 January 2012.
The board expressed its sincere appreciation for her contribution during her
term of office. As a result of the resignation, Ms S Dakile-Hlongwane was
appointed as non-executive director of the board on 21 February 2012, as the
Basadi Ba Kopane Investments (Pty) Limited nominated representative.
Maria Susanna (Marie) Viljoen, Company Secretary of first Kumba Resources
Limited and then Exxaro since 1 August 2001, retired with effect 30 June
2011. The board expressed its sincere appreciation for her service during her
term of office. The board of directors appointed Catharina Helena (Carina)
Wessels as Group Company Secretary with effect 1 July 2011. Carina holds LLB
and LLM degrees, is an admitted advocate of the High Court of South Africa,
and is a Fellow and Senior Vice-President of the Chartered Secretaries
Southern Africa.
Final dividend
The board of directors has declared a final cash dividend number 18 of 500
cents per share in respect of the 2011 final dividend. The dividend has been
declared in South African currency and is payable to shareholders recorded in
the register of the company at close of business on Friday, 30 March 2012.
In compliance with the requirements of Strate, the electronic and custody
system used by the JSE, the following dates are applicable:
Last date to trade cum dividend Friday, 23 March 2012
Shares trade ex dividend Monday, 26 March 2012
Record date Friday, 30 March 2012
Payment date Monday, 02 April 2012
Share certificates may not be dematerialised or rematerialised during the
period Monday, 26 March 2012 and Friday, 30 March 2012, both days inclusive.
On Monday, 02 April 2012 the final cash dividend will be electronically
transferred to the bank accounts of all certificated shareholders where this
facility is available. Where electronic fund transfer is not available or
desired, cheques dated 02 April 2012 will be posted on that date.
Shareholders who have dematerialised their share certificates will have their
accounts at their Central Securities Depository Participant (CSDP) or broker
credited on Monday, 02 April 2012.
On behalf of the board:
Len Konar SiphoNkosi Wim de Klerk
Chairman Chief Executive Officer Finance Director
21 February 2012
Registered Office
Exxaro Resources Limited
Roger Dyason Road
Pretoria West, 0183
Tel no +27 12 307 5000
Fax no +27 12 323 3400
Transfer Secretaries
Computershare Investor
Services (Pty) Limited
Ground Floor,
70 Marshall Street
Johannesburg, 2001
PO Box 61051,
Marshalltown, 2107
This report is available at: www.exxaro.com
Directors: Dr D Konar (Chairman), SA Nkosi (Chief Executive Officer), WA de
Klerk (Finance Director), S Dakile-Hlongwane , JJ Geldenhuys, CI Griffith, U
Khumalo, VZ Mntambo, RP Mohring, NL Sowazi, J van Rooyen,
D Zihlangu
Prepared under supervision of: WA de Klerk (CA) SA, SAICA registration
number: 00133273
Group Company Secretary: CH Wessels (+27 12 307 4384)
Investor Relations: P Lebina (+27 12 307 3081)
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.
www.exxaro.com
Date: 23/02/2012 07:05:44 Supplied by www.sharenet.co.za
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