Notes to the consolidated and separate annual financial statements | Note 16

16. Lease obligation
 
  Group Company
R'000 2025  2024 2025 2024
Lease liabilities in the statement of financial position at 31 December
Non-current liabilities 3 370  4 723 – –
Current liabilities 1 353  1 150 – –
4 723  5 873 – –
Maturity analysis - contractual undiscounted cash flows
Less than one year 1 865  1 867 – –
One to five years 4 532  6 458 – –
Total undiscounted lease liabilities at 31 December 6 397  8 325 – –
Amounts recognised in profit and loss
Interest on lease liabilities 110  155 – –
Expenses relating to short-term leases that have not been capitalised (656) 2 618 116 118
Amounts recognised in the statement of cash flows
Total cash outflow for leases 1 867  4 147 – –

These financial liabilities for the Group are secured by leases over property, plant and equipment, which is included in note 3. Lease repayments are repayable in monthly instalments averaging R0.2 million (2024: R0.3 million) on all leases. Interest is payable at an average of 13.55% (2024: 13.26%) per annum. Contingent rent, special renewal terms and specific escalation clauses do not apply to the leases. No restrictions are imposed by the current lease arrangements.

In accordance with the agreement with the Venture, Merafe Ferrochrome receives 20.5% of the Venture's EBITDA while retaining ownership of its assets. The lease obligations in the Group's statement of financial position and the lease repayments represent 20.5% of the Venture's total obligations, whereas the carrying values of assets that secure the finance leases relate to the assets that are controlled by the Group and are reflected in the Group's statement of financial position.