Shareholder leaflet - Exxaro

Cennergi, which will be based in South Africa and will focus on
the investigation of feasibility, development, ownership, operation,
maintenance, acquisition and management of electricity generation projects
in South Africa, Botswana and Namibia. The initial project pipeline focuses
on renewable energy projects in South Africa and Cennergi’s strategy is to
create a balanced portfolio of generation assets.
On 15 June 2012, Exxaro Resources Limited acquired 39,2% of the shares
in Tronox Limited (an Australian holding company) and a 26% members
interest in Tronox Sands LLP. The consideration comprised the transfer of
the following to Tronox Limited and Tronox Sands LLP:
• 74% of the shares and intercompany debt in Exxaro’s South African
mineral sands operations (Namakwa Sands and KZN Sands mines and
smelters); and
• Exxaro’s 50% interest in the Tiwest joint venture in Australia.
Exxaro retained a direct 26% shareholding in each of the South African
operations.
In addition to the initial investment, Exxaro has since increased its
shareholding to 44,65% as at 31 December 2012.
The investments in Tronox Limited and Tronox Sands LLP has been
accounted for as an investment in an associate using the equity method
in accordance with IAS 28 Investments in Associates and Joint Ventures.
15. Net (debt)/cash
Year ended 31 December
2012
Reviewed
Rm
2011
Restated
Rm
Net (debt)/cash (2 198) 346
Calculation of movement in net debt:
Net cash (outflow)/inflow (3 578) 2 491
– shares issued 15 15
– loans from non-controlling interests 11
– share-based payments (2)
– investment capitalised to joint venture loan 21
– net debt of subsidiaries disposed 820 125
– non-cash flow movements in net debt
applicable to currency translation
differences of transactions denominated
in foreign currency (70) (8)
– non-cash flow movements in net debt
applicable to currency translation
differences of net debt items of
foreign entities 269 (151)
– cash flow changes relating to change
in accounting policy 64
(Increase)/decrease in net debt (2 544) 2 566
Net (debt)/cash is calculated as being interest-bearing borrowings, less
cash and cash equivalents, including those classified as non-current assets
held-for-sale.
Reviewed condensed group annual financial results and unreviewed physical information | 19