Exxaro posts steady results as it pivots beyond coal

Exxaro Resources Limited has delivered a resilient financial performance for the year ended 31 December 2025, marked by an 8% increase in headline earnings per share (Heps) to R32.47.

The results arrive at a pivotal moment for the group, which officially transitioned into its “next phase of growth” through the R10.6 billion acquisition of globally significant manganese assets.

Read: Exxaro completes R10.6bn Ntsimbintle manganese acquisition

Navigating soft markets with portfolio resilience

Despite a 14% drop in export coal prices, Exxaro maintained a steady topline, with revenue increasing 3% to R41.8 billion. Group Ebitda remained robust, decreasing only marginally by 2% to R10.2 billion, as disciplined cost management and a 96% price realisation against the API4 benchmark buffered the impact of weaker commodity cycles.

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The group’s transition strategy was further highlighted by the successful divestment from FerroAlloys in October 2025 and the achievement of 40 consecutive months without a fatality, reinforcing its commitment to operational stability and zero harm.

Read: Exxaro completes R250m sale of FerroAlloys

Strategic manganese acquisition and capital shift

A defining milestone of the period was the effective closure of the R10.6 billion acquisition of interests in the Tshipi Borwa mine and associated marketing entities on 27 February 2026. This move secures Exxaro’s foothold in the Kalahari Manganese Field, home to 80% of the world’s known manganese resources, and expands its exposure to energy transition metals.

Following this investment, management confirmed that the group will no longer maintain its previous R12 billion to R15 billion cash buffer. Consequently, the dividend cover range was revised downward to 1.5 to 2.5 times adjusted group earnings, enabling the board to declare a final dividend of 1 000 cents per share — a 15% increase from the prior year.

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Energy expansion and 2026 outlook

Exxaro’s renewable energy arm, Cennergi, continues to scale, with the commissioning of the 68MW Lephalale solar plant in late 2025 expected to save the Grootegeluk mine R100 million annually in electricity costs. Construction on the 140MW Karreebosch wind project is also well advanced, with commercial operations targeted for the first half of 2027.

Read: Exxaro to buy R1.8bn renewable energy portfolio in major expansion push

Looking ahead to 2026, CEO Ben Magara remains focused on the integration of the newly acquired manganese assets and improving logistics performance. The group has provided production and sales guidance between 39.4Mt and 42.8Mt for the upcoming year as it continues to navigate a dynamic global economic landscape.

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