Exxaro Posts Robust H1 Results on Strong Coal Sales, Manganese Expansion

Exxaro Resources Limited (JSE: EXX) delivered a resilient interim performance for the six months ended 30 June 2025, reporting higher earnings and dividend payouts while advancing its diversification and decarbonisation strategies.

The diversified mining and energy group grew revenue 8% year-on-year to R20.6 billion, while group EBITDA climbed 10% to R5.6 billion, maintaining a healthy 27% margin. Headline earnings per share rose 13% to R17.24, supported by improved equity-accounted income from Black Mountain Mining and stable contributions from Sishen Iron Ore Company. Net cash rose 27% to R12.4 billion, strengthening the balance sheet.

Exxaro’s board declared an interim dividend of R8.43 per share, marking the company’s 45th consecutive payout since its 2006 JSE listing. The group remains three years fatality-free, with a lost time injury frequency rate of 0.05, underscoring its safety focus through the recently refreshed “One Voice Safety Strategy.”

Coal remained the backbone of Exxaro’s earnings, with segment EBITDA up 10% to R5.6 billion on stronger domestic and export sales, despite softer global prices. Production held steady at 19.4 million tonnes, while sales volumes rose 1%, aided by proactive logistics management that offset rail disruptions.

The group’s renewable energy subsidiary, Cennergi, produced 337 GWh in the half, in line with guidance. In February, Exxaro reached financial close on the 140 MW Karreebosch wind project with a PPA signed with Northam Platinum, boosting Cennergi’s portfolio to 437 MW. Alongside the Lephalale Solar Project, Cennergi’s capacity is set to more than double by 2027.

Strategically, Exxaro advanced its diversification push with a major manganese acquisition announced in May. The R11.67 billion deal with Ntsimbintle Holdings and OMH Mauritius gives Exxaro stakes in the Tshipi Borwa mine, Jupiter Mines, Mokala, and Hotazel manganese assets. Pending regulatory approvals, the transaction is expected to close in early 2026 and will significantly broaden the company’s revenue mix beyond coal.

On the decarbonisation front, Exxaro is commissioning its first self-generation project at Grootegeluk, expected to cut Scope 2 emissions by 25%. The company also signed a memorandum of understanding with Eskom in April to address Scope 2 and 3 emissions and secured a renewable PPA with Northam Platinum to lower value-chain emissions.

Exxaro invested R815 million in socio-economic development during the period, with 71% of its coal procurement spend directed to black-owned local suppliers. The company also reshaped its executive structure to enhance delivery on its growth and sustainability strategies, adding leadership roles in coal, technical services, and sustainability.

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Looking ahead, Exxaro said it remains cautiously optimistic despite macroeconomic headwinds, focusing on operational efficiency, completing the manganese deal, advancing its solar and wind projects, and improving logistics through partnerships with Transnet.

Attributable earnings for the half-year rose to R4.1 billion from R3.7 billion in the prior year, while non-controlling interests accounted for R1.2 billion. Profit before tax stood at R6.7 billion.

Exxaro’s strong interim performance highlights the resilience of its coal base, the growing contribution of renewables, and its expanding footprint in manganese — positioning the company as a more diversified player in South Africa’s mining and energy landscape.

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