Exxaro reports resilient first-half performance as coal, energy businesses drive growth

Exxaro Resources has reported a strong first-half performance, with higher revenue, coal production and operating cash generation despite inflationary pressures and a challenging macroeconomic environment.

For the first six month of this year, the diversified resources group recorded revenue of R22.1 billion, up 7%, while cash generated from operations increased 15% to R6.1 billion. EBITDA remained broadly flat at R5.6 billion, which Exxaro attributed to disciplined cost management and the defensive nature of its coal and energy businesses.

Safety was another major focus during the period. Exxaro achieved four years without a fatality, while its lost-time injury frequency rate improved by 60% year-on-year to 0.02 per 200 000 worker hours, its lowest level since listing in 2006.

The company said the performance reflects the continued implementation of its One Voice Safety strategy, with safety remaining central to how its operations are managed.

Meanwhile, coal production increased from 11% to 21.5 million tonnes, supported by improved output at the Matla and Grootegeluk operations. Total coal sales rose from 4% to 19.9 million tonnes, while export sales climbed from 15% to 3.9 million tonnes.

Exxaro said stronger Eskom offtake at Matla and higher export volumes supported sales growth. The company also highlighted improved Transnet Freight Rail performance, although constraints on the Waterberg line remain a challenge to unlocking greater export capacity.

The opening of the New Mine 1 shaft at Matla in May was another major achievement. The project is supported by a long-term coal supply agreement between Exxaro and Eskom, reinforcing a relationship that has supported South Africa’s electricity generation for more than four decades.

Renewable energy is also gaining momentum. The 68MW Lephalale Solar Project reached commercial operation in April 2026 and generated 66GWh during the first half of the year. The project has reduced Grootegeluk’s reliance on Eskom electricity by 30% and is expected to reduce electricity costs by about R100 million a year.

The company reported a 22% reduction in Scope 2 emissions year-to-date, while carbon intensity improved by 3% and energy intensity by 1%.

Through its renewable energy business, Cennergi, Exxaro’s gross operating capacity has grown to 297MW, with a further 593MW of gross banked capacity in its near-term pipeline. Renewable energy generation increased 12% to 378GWh.

The company’s metals portfolio also became more diversified during the period, with its manganese investment contributing to group earnings for the first time following its acquisition.

Despite a 20% decline in headline earnings per share to R13.77, Exxaro declared an interim dividend of R7 per share, its 47th consecutive dividend since listing in 2006.

CEO Ben Magara said the first half demonstrated the resilience of the business, supported by operational performance, cost management, cash generation and a diversified portfolio.

“The first half of 2026 demonstrated the resilience and anti-fragility of our business, with a strong operational performance, cost management and cash generation in a volatile macroeconomic environment and continued inflationary pressures. Our
diversified portfolio continued to deliver through the cycle, with resilient earnings from our coal and energy businesses complemented by the first contribution from manganese, further enhancing the diversification of our earnings base,” said Magara.

Exxaro said it will continue investing in its coal and energy operations while advancing its decarbonisation strategy and seeking to create long-term value for shareholders and other stakeholders.