The following table shows the classification, carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 2Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).

Carrying

Carrying

value

Fair value

value

Fair value

2023

2022

hierarchy

Financial instrument

Note

of inputs

Financial assets

At amortised cost

Long-term restricted cash⁶

1 447

1 531

Level 1¹

Long-term receivables

2 803

3 023

Level 3²

Trade and other receivables

30 915

38 936

Level 3³

Cash and cash equivalents

53 926

43 140

Level 1¹

At fair value through profit or loss

Long-term and short-term financial assets

2 225

868

Commodity and currency derivative assets

472

247

Level 2

Oxygen supply contract embedded derivative assets

516

621

Level 3

Other short-term investments

1 237

—

Level 1¹

Designated at fair value through other comprehensive income

Investments in listed securities⁶

701

480

Level 1⁴

Investments in unlisted securities⁶

Level 3⁵

Financial liabilities

At amortised cost

Total long-term debt

124 068

116 533

104 834

98 491

Listed long-term debt (Bonds issued)⁷

90 248

82 768

78 076

71 667

Level 1⁴

Listed convertible bonds

12 238

12 072

—

Level 3⁸

Unlisted long-term debt⁷

21 582

21 693

26 758

26 824

Level 3²

Lease liabilities

16 297

16 034

Short-term debt and bank overdraft

238

255

Level 3³

Trade and other payables

35 118

39 873

Level 3³

At fair value through profit or loss

Long-term and short-term financial liabilities

3 397

7 127

Commodity and currency derivative liabilities

1 102

6 845

Level 2

Convertible bond embedded derivative liability

1 302

—

Level 3

Oxygen supply contract embedded derivative liabilities

993

282

Level 3

37.1Financial instruments classification and fair value measurement continued

There were no transfers between levels for recurring fair value measurements during the year.

Valued using forward rate interpolator model, appropriate currency specific discount curve, discounted expected cash flows and numerical approximation as appropriate. Significant inputs include forward exchange contracted rates, market foreign exchange rates, forward contract rates and market commodity prices such as crude oil prices, coal prices and ethane prices. A weakening of the assumed rand/US$ exchange rate will result in additional losses of R964 million.

Relates to the US labour and inflation index and ZAR/EUR exchange rate embedded derivatives contained in the SO long-term gas supply agreements. The following table reconciles the opening and closing balance of the net embedded derivative asset/(liability):

37.1Financial instruments classification and fair value measurement continued

The fair value of the embedded derivative is impacted by a number of observable and unobservable variables at valuation date. The embedded derivative was valued using a forward rate interpolator model, discounted expected cash flows and numerical approximation, as appropriate. Significant inputs include US PPI index, US labour index, US dollar and ZAR treasury curves, Rand zero swap discount rate, and interpolated EUR/ZAR forward rate. The sensitivities provided below reflect the impact on fair value through profit or loss as a result of movements in the significant input variables utilised for valuation purposes:

Relates to the embedded derivative contained in the US$750 million convertible bond issued on 8 November 2022. The following table reconciles the opening and closing balance of the embedded derivative liability:

The embedded derivative was valued at 30 June 2023 and at inception date using quoted bond market prices and binomial tree approach. Significant inputs include conversion price (US$19,86; inception: US$20,39), spot share price (R233,26; inception R285,95), converted to USD at the prevailing USD/ZAR FX spot rate (R18,83/US$; inception: R18,23/US$), observable bond market price (94,7% of par; inception: 100% of par), credit spread (460bps; inception: 427bps) and volatility (27,84%; inception 28,44%). Although many inputs into the valuation are observable, the valuation method separates the fair value of the derivative from the quoted fair value of the US$ Convertible Bond by adjusting certain observable inputs. These adjustments require the application of judgement and certain estimates. Changes in the relevant inputs impact the fair value gains and losses recognised. This instrument is most sensitive to changes in the calibrated volatility and credit spread. The sensitivities provided below reflect the impact on fair value through profit or loss as a result of movements in key inputs:

There was no change in valuation techniques compared to the previous financial year.

The Group is exposed in varying degrees to a number of financial instrument related risks. The Group Executive Committee (GEC) has the overall responsibility for the establishment and oversight of the Group’s risk management framework. The GEC established the Safety Committee, which is responsible for providing the Board with the assurance that significant business risks are systematically identified, assessed and reduced to acceptable levels. A comprehensive risk management process has been developed to continuously monitor and assess these risks. Based on the risk management process Sasol refined its hedging policy and the Board appointed a subcommittee, the Audit Committee, that meets regularly to review and, if appropriate, approve the implementation of hedging strategies for the effective management of financial market related risks.

The Group has a central treasury function that manages the financial risks relating to the Group’s operations.

The Group’s objectives when managing capital (which includes share capital, borrowings, working capital and cash and cash equivalents) is to maintain a flexible capital structure that reduces the cost of capital to an acceptable level of risk and to safeguard the Group’s ability to continue as a going concern while taking advantage of strategic opportunities in order to grow shareholder value sustainably.

The Group manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, repurchase shares currently issued, issue new shares, issue new debt, issue new debt to replace existing debt with different characteristics and/or sell assets to reduce debt.

The Group monitors capital utilising a number of measures, including the gearing ratio (net debt to shareholders’ equity). Gearing takes into account the Group’s substantial capital investment and susceptibility to external market factors such as crude oil prices, exchange rates and commodity chemical prices. The Group’s gearing level for 2023 increased to 44,7% (2022 – 41,7%; 2021 – 61,5%) largely due to the weaker closing exchange rate.

Financing risk refers to the risk that financing of the Group’s net debt requirements and refinancing of existing borrowings could become more difficult or more costly in the future. This risk can be decreased by managing the Group within the targeted gearing ratio, maintaining an appropriate spread of maturity dates, and managing short-term borrowings within acceptable levels.

The Group’s target for long-term borrowings include an average time to maturity of at least two years, and an even spread of maturities.

On 28 October 2022, S&P upgraded Sasol’s rating from BB to BB+ on the back of debt reduction, and improved cash flow generation supported by stronger commodity prices and improved efficiency; revising the outlook from positive to stable. The stable outlook reflects that recent debt reduction and supportive oil prices will offset near-term headwinds and allow Sasol to maintain Funds From Operations to debt above 45% on average in the coming years.

Risk management and measurement relating to each of these risks is discussed under the headings below (sub-categorised into credit risk, liquidity risk, and market risk) which entails an analysis of the types of risk exposure, the way in which such exposure is managed and quantification of the level of exposure in the statement of financial position.

Credit risk is the risk of financial loss due to counterparties not meeting their contractual obligations. Credit risk is deemed to be low when, based on the forward available information, it is highly probable that the customer will service its debt in accordance with the agreement throughout the period.

The risk is managed by the application of credit approvals, limits and monitoring procedures. Where appropriate, the Group obtains security in the form of guarantees to mitigate risk. Counterparty credit limits are in place and are reviewed and approved by the respective subsidiary credit management committees. The central treasury function provides credit risk management for the group-wide exposure in respect of a diversified group of banks and other financial institutions. These are evaluated regularly for financial robustness especially in the current global economic environment. Management has evaluated treasury counterparty risk and does not expect any treasury counterparties to fail in meeting their obligations. The Group maximum exposure is the outstanding carrying amount of the financial asset.

For all financial assets measured at amortised cost, the Group calculates the expected credit loss based on contractual payment terms of the asset. The contractual payment terms for receivables vary from 30 days to 120 days. The exposure to credit risk is influenced by the individual characteristics, the industry and geographical area of the counterparty with whom we have transacted. Financial assets at amortised cost are carefully monitored and reviewed on a regular basis for expected credit loss and impairment based on our credit risk policy.

Expected Credit Loss (ECL) is calculated as a function of probability of default, loss given default and exposure at default. The Group allocates probability of default based on external and internal information. The major portion of the financial assets at amortised cost consists of externally rated customers and the Group uses the average of Moody’s, Fitch and S&P Corporate and Sovereign probability of defaults, depending on whether the customer or holder of the financial asset is corporate or government related. For customers or debtors that are not rated by a formal rating agency, the Group allocates internal credit ratings and default rates taking into account forward looking information, based on the debtors profile and financial status. Loss given default (LGD) is based on the Basel model. World-wide, and especially in South Africa, economies have faced a series of global and local disruptions, including price volatility, elevated energy costs, high inflation, higher cost of debt, etc. As a result the Group applied the Board of Governors of the Federal Reserve System’s formula to derive a downturn LGD to be used for 2023 and 2022, namely 50% for unsecured financial assets and 40% for secured financial assets. Credit enhancement is only taken into account if it is integral to the asset. Trade receivables expected credit loss is calculated over lifetime. Other financial assets expected credit loss is measured over 12 months when the credit risk is low and over lifetime where the credit risk has increased significantly. The Group considers credit risk to have increased significantly when the customer’s credit rating has been downgraded to a lower grade (e.g. A grade to B grade). The Group considers customers to be in default when the receivable is more than 30 days overdue or the customer has failed to honour a repayment arrangement.

No single customer represents more than 10% of the Group’s total turnover or more than 10% of total trade receivables for the years ended 30 June 2023, 2022 and 2021. Approximately 49% (2022 — 48%; 2021 — 42%) of the Group’s total turnover is generated from sales within South Africa, while about 19% (2022 — 21%; 2021 — 24%) relates to European sales and 16% (2022 — 16%; 2021 — 18%) relates to sales within the US. The concentration of credit risk within geographic regions is largely aligned with the geographic regions in which the turnover was earned.

12-month

Lifetime ECL

ECL

Significant

significant

increase in

Simplified

increase in

credit risk

approach

credit risk

Total

since initial

for trade

Credit-

Total lifetime

since initial

expected

recognition

receivables

impaired

ECL

recognition

credit loss

2023

Long-term receivables

—

111

Trade receivables

—

227

261

—

261

Other receivables

102

—

385

487

491

102

661

797

863


					12-month
	Lifetime ECL				ECL
					No
	Significant				significant
	increase in	Simplified			increase in
	credit risk	approach			credit risk	Total
	since initial	for trade	Credit-	Total lifetime	since initial	expected
	recognition	receivables	impaired	ECL	recognition	credit loss
	Rm	Rm	Rm	Rm	Rm	Rm
2022
Long-term receivables	—	—	41	41	44	85
Trade receivables	—	30	101	131	—	131
Other receivables	1	—	272	273	58	331
	1	30	414	445	102	547

The ECL relating to trade and other receivables increased despite decreases in their respective carrying amounts mainly due to allowances against specific defaulting customers.

Overview of the credit risk profile of financial assets measured at amortised cost is as follows:


	2023			2022
	Low risk	Medium risk	High risk	Low risk	Medium risk	High risk
			CCC+ and			CCC+ and
	AAA to A-	BBB+ to B-	below	AAA to A-	BBB+ to B-	below
	%	%	%	%	%	%
Long-term receivables	29	59	12	51	43	6
Trade receivables	77	18	5	73	24	3
Other receivables	82	15	3	83	15	2
Cash and cash equivalents*	20	78	2	18	81	1

Liquidity risk is the risk that an entity in the Group will be unable to meet its obligations as they become due.

The global economic landscape remains volatile, including fluctuating oil and petrochemical prices, an unstable product demand environment and inflationary pressure. In South Africa, the underperformance of state-owned enterprises and socio-economic challenges continues to impact volumes, margins and resultant profitability.

The Group manages liquidity risk by effectively managing its working capital, capital expenditure and cash flows, making use of a central treasury function to manage pooled business unit cash investments and borrowing requirements. Currently the Group is maintaining a positive liquidity position, conserving the Group’s cash resources through continued focus on working capital improvement, cost savings and capital reprioritisation.

The Group meets its financing requirements through a mixture of cash generated from its operations and, short and long-term borrowings and strives to maintain adequate banking facilities and reserve borrowing capacities. Adequate banking facilities and reserve borrowing capacities are maintained. The Group has refinanced its existing banking facilities, due to mature in calendar year 2024, into a new banking facility totaling nearly USD3 billion comprising of a revolving credit facility and term loan facility, both with a five-year maturity and with two extension options of one year each. Refer to note 14. The Group is in compliance with all of the financial covenants per its loan agreements, none of which are expected to present a material restriction on funding or its investment policy in the near future.

Protection of downside risk for the balance sheet was a key priority for the Group during volatile times, resulting in the execution of our hedging programme to address oil price, ethane price and currency exposure.

The net debt to EBITDA (bank definition) at 30 June 2023 was 1,2 times (2022 – 0,8 times), significantly below the covenant threshold level of 3 times.

The maturity profile of the undiscounted contractual cash flows of financial instruments at 30 June were as follows:

Carrying

Contractual

Within one

One to

Three to

More than

amount

cash flows*

year

three years

five years

Note

2023

Financial assets

Non-derivative instruments

Long-term receivables

2 803

3 105

—

1 119

273

1 713

Trade and other receivables

30 915

—

Cash and cash equivalents

53 926

—

Investments through other comprehensive income

713

—

Investments through profit or loss

1 237

—

Long-term restricted cash

1 447

—

1 447

91 041

91 343

86 791

1 119

273

3 160

Derivative instruments

Forward exchange contracts

133

17 866

—

Crude oil put options

253

—

Foreign exchange zero cost collars

—

Other commodity derivatives

—

Oxygen supply contract embedded derivative

516

891

138

546

92 029

110 439

105 065

1 257

411

3 706

Financial liabilities

Non-derivative instruments

Long-term debt**

(124 068)

(160 266)

(36 198)

(13 241)

(56 442)

(54 385)

Lease liabilities

(16 297)

(34 111)

(3 261)

(5 364)

(3 559)

(21 927)

Short-term debt

(79)

—

Trade and other payables

(35 118)

—

Bank overdraft

(159)

—

(175 721)

(229 733)

(74 815)

(18 605)

(60 001)

(76 312)

Derivative instruments

Forward exchange contracts

(353)

(18 086)

—

Foreign exchange zero cost collars

(579)

—

Ethane swap options

(158)

—

Crude oil futures

(12)

—

Oxygen supply contract embedded derivative

(993)

(3 606)

(64)

(109)

(101)

(3 332)

(177 816)

(252 174)

(93 714)

(18 714)

(60 102)

(79 644)

The impact of the refinancing activities can be seen in the significant increase in contractual payments due beyond three years.

Current financial assets are sufficient to cover financial liabilities for the next year. The shortfall beyond one year will be funded through cash generated from operations, utilisation of available facilities and the refinancing of existing debt.


		Carrying	Contractual	Within one	One to	Three to	More than
		amount	cash flows*	year	three years	five years	five years
	Note	Rm	Rm	Rm	Rm	Rm	Rm
2022
Financial assets
Non-derivative instruments
Long-term receivables	18	3 023	3 316	—	1 447	777	1 092
Trade and other receivables	23	38 936	38 936	38 936	—	—	—
Cash and cash equivalents	26	43 140	43 140	43 140	—	—	—
Investments through other comprehensive income		493	493	493	—	—	—
Long-term restricted cash		1 531	1 531	—	—	—	1 531
		87 123	87 416	82 569	1 447	777	2 623
Derivative instruments
Forward exchange contracts		68	9 005	9 005	—	—	—
Crude oil futures		25	25	25	—	—	—
Foreign exchange zero cost collars		76	76	76	—	—	—
Crude oil zero cost collars		17	17	17	—	—	—
Other commodity derivatives		61	61	61	—	—	—
Oxygen supply contract embedded derivative		621	1 236	69	135	142	890
		87 991	97 836	91 822	1 582	919	3 513
Financial liabilities
Non-derivative instruments
Long-term debt	14	(104 834)	(123 107)	(25 980)	(51 730)	(14 527)	(30 870)
Lease liabilities**	15	(16 034)	(31 386)	(2 941)	(4 778)	(3 550)	(20 117)
Short-term debt	16	(82)	(82)	(82)	—	—	—
Trade and other payables	24	(39 873)	(39 873)	(39 873)	—	—	—
Bank overdraft	26	(173)	(173)	(173)	—	—	—
		(160 996)	(194 621)	(69 049)	(56 508)	(18 077)	(50 987)
Derivative instruments
Forward exchange contracts		(50)	(8 986)	(8 986)	—	—	—
Foreign exchange zero cost collars		(454)	(454)	(454)	—	—	—
Crude oil zero cost collar		(6 176)	(6 176)	(6 176)	—	—	—
Coal swap options		(112)	(112)	(112)	—	—	—
Oxygen supply contract embedded derivative		(282)	(1 850)	(6)	—	—	(1 844)
Other commodity derivatives		(53)	(53)	(53)	—	—	—
		(168 123)	(212 252)	(84 836)	(56 508)	(18 077)	(52 831)

Market risk is the risk arising from possible market price movements and their impact on the future cash flows of the business. The market price movements that the Group is exposed to:

Foreign currency risk is a risk that earnings and cash flows will be affected due to changes in exchange rates.

The Audit Committee sets broad guidelines in terms of tenor and hedge cover ratios specifically to assess future currency exposure, which have the potential to materially affect our financial position. These guidelines and our hedging policy are reviewed from time to time. This hedging strategy enables us to better predict cash flows and thus manage our liquidity and key financial metrics more effectively. Foreign currency risks are managed through the Group’s hedging policy and financing policies and the selective use of various derivatives.

The Group’s transactions are predominantly entered into in the respective functional currency of the individual operations. The construction of the LCCP has largely been financed through funds obtained in US dollar, with a small portion of funds obtained from Rand sources. A large portion of our turnover and capital investments are significantly impacted by the rand/US$ and rand/EUR exchange rates. Some of our fuel products are governed by the BFP, of which a significant variable is the rand/US$ exchange rate. Our export chemical products are mostly commodity products whose prices are largely based on global commodity and benchmark prices quoted in US dollars and consequently are exposed to exchange rate fluctuations that have an impact on cash flows. These operations are exposed to foreign currency risk in connection with contracted payments in currencies not in their individual functional currency. The most significant exposure for the Group exists in relation to the US dollar and the Euro. The translation of foreign operations to the presentation currency of the Group is not taken into account when considering foreign currency risk.

In line with the risk mitigation strategy, the Group hedges a significant portion of its estimated foreign currency exposure in respect of forecast sales and purchases over the following 12 months. The Group mainly uses zero-cost collars to hedge its currency risk, most with a maturity of less than one year from the reporting date.

Forward exchange contracts (FECs) are utilised throughout the Group to hedge the risk of currency depreciation on committed and highly probable forecast transactions. Transactions hedged with FECs include capital and goods purchases (imports) and sales (exports).

The table below shows the significant currency exposure where entities within the Group have monetary assets or liabilities that are not in their functional currency, have exposure to the US dollar or the Euro. The amounts have been presented in rand by converting the foreign currency amount at the closing rate at the reporting date.


	2023		2022
	Euro	US dollar	Euro	US dollar
	Rm	Rm	Rm	Rm
Long-term receivables	—	339	—	336
Trade and other receivables¹	544	3 520	739	4 961
Cash and cash equivalents¹	2 835	1 872	2 158	3 359
Net exposure on assets	3 379	5 731	2 897	8 656
Trade and other payables²	(302)	(2 129)	(166)	(4 552)
Net exposure on liabilities	(302)	(2 129)	(166)	(4 552)
Exposure on external balances	3 077	3 602	2 731	4 104
Net exposure on balances between Group companies	(2 323)	8 484	1 981	8 286
Total net exposure	754	12 086	4 712	12 390

The following sensitivity analysis is provided to show the foreign currency exposure of the individual entities at the end of the reporting period. This analysis is prepared based on the statement of financial position balances that exist at year-end, for which there is currency risk, before consideration of currency derivatives, which exist at that point in time. The effect on equity is calculated as the effect on profit and loss. The effect of translation of results into presentation currency of the Group is excluded from the information provided.

A 10% weakening in the Group’s significant exposure to the foreign currency at 30 June would have increased either the equity or the profit by the amounts below, before the effect of tax. This analysis assumes that all other variables, in particular, interest rates, remain constant, and has been performed on the same basis for 2022.

A 10% movement in the opposite direction in the Group’s exposure to foreign currency would have an equal and opposite effect to the amounts disclosed above.

Interest rate risk is the risk that the value of short-term investments and financial activities will change as a result of fluctuations in the interest rates.

Fluctuations in interest rates impact on the value of short-term investments and financing activities, giving rise to interest rate risk. The Group has significant exposure to interest rate risk due to the volatility in South African, European and US interest rates.

Our debt is comprised of different instrument notes, which by their nature either bear interest at a floating or a fixed rate. We monitor the ratio of floating and fixed interest in our loan portfolio and manage this ratio, by electing to incur either bank loans, bearing a floating interest rate, or bonds, which bear a fixed interest rate. We may also use interest rate swaps, where appropriate, to convert some of our debt into either floating or fixed rate debt to manage the composition of our portfolio. There were no open interest rate swaps at 30 June 2023 and consequently no hedge accounting was applied in the current year.

In respect of financial assets, the Group’s policy is to invest cash at floating rates of interest and cash reserves are to be maintained in short-term investments (less than one year) in order to maintain liquidity, while achieving a satisfactory return for shareholders.

At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments, including the effect of the interest rate swap was:

Financial instruments affected by interest rate risk include borrowings, deposits, trade receivables and trade payables. A change of 1% in the prevailing interest rate in a particular currency at the reporting date would have increased/(decreased) earnings by the amounts shown below before the effect of tax. The sensitivity analysis has been prepared on the basis that all other variables, in particular foreign currency rates, remain constant and has been performed on the same basis for 2022. Interest is recognised in the income statement using the effective interest rate method.

A 1% decrease in interest rates would have an equal and opposite effect to the amounts disclosed above.

The Group had exposure to the variable US dollar London Interbank Overnight Rate (LIBOR) through the USD term loan and revolving credit facilities. In the prior period, the Group has entered into USD interest rate swaps to convert a portion of the Group’s exposure to the variable LIBOR to a fixed rate. The swaps were designated as hedging instruments in a cash flow hedge.

Effective 15 March 2022, the term loan and revolving credit facilities as well as two of the swaps were transitioned to the Secured Overnight Financing Rate (SOFR). The transition also entailed the addition of a fixed credit adjustment spread to the SOFR and new fallback clauses. The fixed credit adjustment spread is based on the rate published by Bloomberg Index Services Limited following the Financial Conduct Authority’s Cessation Announcement on 5 March 2021. The Group qualified for and has applied the reliefs provided by IBOR reform Phase 2 that allowed the Group’s hedging relationships to continue. For the remaining swaps, the Phase 1 amendments allowed hedge accounting to continue for affected hedges during the period of uncertainty before the hedged items or hedging instruments are amended as a result of the interest rate benchmark reform.

Throughout 2022, the Group has continued to make significant progress in repaying variable USD debt, to the extent that the forecasted future interest payments over the remaining term of the interest rate swap are largely no longer probable. Hedge accounting was discontinued prospectively from 30 April 2022 and the remaining balance of R1,1 billion in the hedge reserve was reclassified to profit as a derivative gain included in other operating expenses.

The Group’s remaining exposure to IBORs relate mainly to loans denominated in JIBAR. Refer to note 1.

Commodity price risk is the risk of fluctuations in our earnings as a result of fluctuation in the price of commodities.

The Group makes use of derivative instruments, including options and commodity swaps as a means of mitigating price movements and timing risks on crude oil purchases and sales and ethane purchases and export coal sales. The Group entered into hedging contracts which provide downside protection against decreases in commodity prices. Refer to the summary of our derivatives below.

A substantial proportion of our turnover is derived from sales of petroleum and petrochemical products. Market prices for crude oil fluctuate because they are subject to international supply and demand and political factors. Our exposure to the crude oil price centres primarily around the selling price of the fuel marketed by our Energy business which is governed by the Basic Fuel Price (BFP) formula, the crude oil related raw materials used in our Natref refinery and certain of our offshore operations including where chemical prices are linked to the crude oil price. Key factors in the BFP are the Mediterranean and Singapore or Mediterranean and Arab Gulf product prices for petrol and diesel, respectively.

In the normal course of business, the Group enters into various derivative transactions to mitigate our exposure to foreign exchange rates, interest rates and commodity prices. Derivative instruments used by the Group in hedging activities include swaps, options, forwards and other similar types of instruments.


	Financial	Financial	Financial	Financial
	asset	liability	asset	liability	Income statement gain/(loss)
	2023	2023	2022	2022	2023	2022	2021
	Rm	Rm	Rm	Rm	Rm	Rm	Rm
Commodity and currency derivatives
Interest rate swap options	—	—	—	—	—	1 029	(37)
Crude oil put options	253	—	—	—	(507)	—	(1 545)
Crude oil zero cost collars	—	—	17	(6 176)	3 953	(11 349)	(1 871)
Crude oil swap options	—	—	—	—	—	(5 140)	(1 267)
Crude oil futures	—	(12)	25	—	401	(1 049)	(774)
Ethane swap options	—	(158)	—	—	(272)	279	680
Coal swap options	—	—	—	(112)	1 099	691	—
Other commodity derivatives	10	—	61	(53)	180	(593)	—
Forward exchange contracts	133	(353)	68	(50)	(1 339)	(677)	1 011
Foreign exchange zero cost collars	76	(579)	76	(454)	(301)	(1 580)	4 027
Embedded derivatives
Convertible bond embedded derivative	—	(1 302)	—	—	867	—	—
Oxygen supply contract embedded derivatives*	516	(993)	621	(282)	(794)	64	2 058
Non-derivative financial instruments
Investments at fair value through profit or loss**	1 237	—	—	—	—	—	—
	2 225	(3 397)	868	(7 127)	3 287	(18 325)	2 282


		Contract/Notional amount*					Average price**
		Open	Settled	Open	Settled		Floor	Cap	Floor	Cap
		2023	2023	2022	2022		2023	2023	2022	2022
		Million	Million	Million	Million
Fair value hedges
Crude oil put options purchased***	barrels	16,3	—	—	10,0	US$/bbl	49,4	—	—	—
Crude oil put options sold	barrels	—	—	—	10,0	US$/bbl	—	—	—	—
Crude oil zero cost collars	barrels	—	29,0	29,0	24,0	US$/bbl	—	—	63,3	96,6
Crude oil swap options	barrels	—	—	—	18,0	US$/bbl	—		—
Crude oil futures	US$	2	21	1	29	US$/bbl	75,0		109,9
Ethane swap options	barrels	3,6	1,3	—	4,0	US$ c/gal	30,1	—	—	—
Coal swaps	ton	—	0,9	0,4	1,0	US$/ton	—	—	293,7	—
Forward exchange contracts	US$	836	—	334	—	R/US$	18,61		16,24
Forward exchange contracts	EUR	30	—	70	—	US$/EUR	1,10		1,07
Foreign exchange zero cost collars	US$	2 760	4 400	4 400	3 900	R/US$	16,72	20,71	15,04	18,06

* The notional amount is the sum of the absolute value of all contracts for both derivative assets and liabilities.

*** Total premium paid for contracts entered into in the year US$42,0 million (2022: US$nil million).

The Group is exposed to market risks from changes in interest rates, foreign exchange rates and commodity prices. The Group uses derivative instruments to hedge its exposure to these risks. Additionally, there are embedded derivatives that have been bifurcated in certain of the Group’s long-term supply agreements and borrowings.

All derivative financial instruments are initially recognised at fair value and are subsequently stated at fair value at the reporting date. Attributable transaction costs are recognised in the income statement when incurred. Resulting gains or losses on derivative instruments, excluding designated and effective hedging instruments, are recognised in the income statement.

To the extent that a derivative instrument has a maturity period of longer than one year, the fair value of these instruments will be reflected as a non-current asset or liability.

Contracts to buy or sell non-financial items (e.g. gas or electricity) that were entered into and continue to be held for the purpose of the receipt of the non‑financial items in accordance with the Group’s expected purchase or usage requirements are not accounted for as derivative financial instruments. Purchase commitments relating to these contracts are disclosed in note 3.

The Group continues to apply the hedge accounting requirements of IAS 39 ‘Financial Instruments: Recognition and Measurement’.

Where a derivative instrument is designated as a cash flow hedge of an asset, liability or highly probable forecast transaction that could affect the income statement, the effective part of any gain or loss arising on the derivative instrument is recognised as other comprehensive income and is classified as a cash flow hedge accounting reserve until the underlying transaction occurs. The ineffective part of any gain or loss is recognised in the income statement. If the hedging instrument no longer meets the criteria for cash flow hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively.

If the forecast transaction results in the recognition of a non-financial asset or non-financial liability, the associated gain or loss is transferred from the cash flow hedge accounting reserve, as other comprehensive income, to the underlying asset or liability on the transaction date. If the forecast transaction is no longer expected to occur, then the cumulative balance in other comprehensive income is recognised immediately in the income statement as reclassification adjustments. Other cash flow hedge gains or losses are recognised in the income statement at the same time as the hedged transaction occurs.

When derivative instruments, including forward exchange contracts, are entered into as fair value hedges, no hedge accounting is applied. All gains and losses on fair value hedges are recognised in the income statement.