Notes to the consolidated and separate annual financial statements | Note 10

The loan is unsecured, interest-free, and has no fixed repayment term. The loan is repayable on demand with less than a year’s notice; however, it is not expected to be settled within one year from the reporting date. Loss allowances on intercompany loans are measured at an amount equal to the lifetime of the ECLs, as the loans are repayable on demand and discounted by an effective interest rate of 0%. Merafe Ferrochrome has sufficient cash to repay the loan if it was demanded at the reporting date and no ECL is recognised.