Key highlights:

• Three years fatality free
• Loss time injury frequency rate (LTIFR) of 0.05
• Group revenue increased 8% year-on-year to R20.6 billion
• Group EBITDA increased10% year-on-year, to R5.6 billion
• Net cash position improved 27% year-on-year to R12.4 billion
• Headline earnings per share (HEPS) rose 13% year-on-year to R17.24
• Dividend declared of R8.43 per share
• Signing of MoU with Eskom in April 2025 to reduce Scope 2 and 3 emissions
• Karreebosch project acquisition in February 2025
• One Voice Safety Strategy – strategy refresh in April 2025
• Manganese transaction announced in May 2025

Exxaro Resources Limited delivers a robust interim performance, underpinned by operational efficiency and marketing excellence, despite persistent global and domestic headwinds.

The group reported an increase in revenue of 8% to R20.6 billion for the six-month period ended 30 June 2025 compared to R19 billion for the six-month period ended 30 June 2024 (1H24).

Join our WhatsApp channel for more updates on Exxaro

Group EBITDA rose by 10% to R5.6 billion (1H24: R5.1 billion), with an EBITDA margin of 27%, mainly driven by the strong performance of Exxaro’s coal business.

The coal business’ EBITDA increased 10% year-on-year to R5.6 billion (1H24: R5.1 billion) on the back of higher export and domestic sales volumes, coupled with an 96% price realisation in a softer commodity price environment.

HEPS increased 13% year-on-year to R17.24 per share, primarily driven by a 9% rise in group EBITDA and an 18% increase in adjusted equity-accounted income.

Also Read: Exxaro group makes management structure changes

The company said strong contribution from their equity-accounted investments with adjusted equity-accounted income rising by 18%, primarily driven by a positive contribution from Black Mountain Mining Proprietary Limited which benefitted from increased production and sales volumes due to more favourable mining conditions.

Adjusted equity-accounted income from Sishen Iron Ore Company Proprietary Limited remained stable at R1.9 billion.

The board has approved a dividend of R8.43 per share, marking Exxaro’s 45th consecutive dividend declaration since our listing on the Johannesburg Stock Exchange Limited in 2006.

Also Read: Exxaro bolsters diversification through manganese acquisition

Our financial performance in the first half of 2025 (1H25) remains robust, driving strong financial results.

Overall production was stable at 19.4 million tonnes in 1H25 compared to 19.3 million tonnes in 1H24.

In total, sales increased by 1%, mainly as a result of higher domestic and export sales, which were partly offset by reduced sales to Eskom.

Exceptional efforts by the Market-to-Resource optimisation strategy and marketing and logistics teams mitigated the rail wash-away due to heavy rains at Grootegeluk, by placing Mpumalanga product in the market during this period to maintain customer commitments.

Cennergi’s operating wind assets generated 337 gigawatt-hours electricity during the reporting period, compared to 339 gigawatt-hours in the first half of 2024 largely due to high plant availability.

We are proud to announce our 2025 Interim Results as we accelerate our Sustainable Growth & Impact (SG&I) strategy and build momentum for the next phase of growth.

These results reflect the discipline, commitment, and excellence of our people, and demonstrate how we are… pic.twitter.com/1hEESpvn7t

— Exxaro (@ExxaroResources) August 21, 2025

The current period generation is in line with, in fact marginally better than, the June 2025 guidance of 335 gigawatt-hours. In February 2025, we reached financial close of the Karreebosch project, including the signed power purchase agreement with Northam Platinum.

This adds 140 megawatts gross capacity to Cennergi bringing the total to 437 megawatts. Combined with the Lephalale Solar Project (LSP), these two projects will more than double Cennergi’s capacity by the first half of 2027.

Exxaro’s social investment reached R815 million in supporting socio-economic development in our host communities. For our coal operations, the procurement spend on black local suppliers constituted 71% of the social investment spend.

In May 2025, Exxaro entered into binding agreements to acquire shares and claims in manganese assets held by Ntsimbintle Holdings Proprietary Limited and OMH (Mauritius) Corp.

Through this acquisition, Exxaro gains a 74% stake in Ntsimbintle Mining, giving it 60.1% effective ownership in Tshipi Borwa Mine, including 50.1% marketing rights.

The deal also includes stakes in Jupiter Mines (19.99%), Ntsimbintle Marketing and Trading (100%), Mokala Manganese (51%), and Hotazel Manganese Mines (9%).

The purchase consideration is R11.67 billion, rising to R14.68 billion with tag-along rights and escalations.

Post the announcement, Ntsimbintle Holdings shareholders have approved the transaction. The Escrow and Warranty and Indemnity Insurance Agreements have been entered into.

Exxaro has filed their submission to the South African Competition Authority and for Tshipi Borwa mine, as well as a submission for Ministerial approval under section 11 of the Mineral and Petroleum Resources Development Act.

The company said it is receiving waivers or exercise of respective pre-emptive – some are received, while some are still in progress.

Subject to all approvals and consents being obtained, Exxaro says it remain on track for close of the transaction in the first quarter of 2026.

The organisation is operationalising its decarbonisation roadmap and is actively configuring its assets to support this journey, with a particular focus on medium to long-term technologies such as fleet optimisation to reduce Scope 1 emissions.

A key milestone in this commitment, is the commissioning of Exxaro’s first self-generation initiative, being LSP at our Grootegeluk mine, which will deliver a 25% reduction in scope 2 emissions and a 17% reduction in total Scope 1 and Scope 2 emissions.

Addressing Scope 3 (value chain) emissions remain a priority, the company said, adding that through strategic partnerships and meaningful stakeholder engagement such as the signing of a memorandum of understanding with Eskom in April 2025, we are confident in making significant progress in reducing these emissions.

The signing of a power purchase agreement with coal customer Northam Platinum will also support the reduction of our Scope 3 emissions.