South Africa · Delayed Price · Currency is ZAR · Price in ZAc Exxaro Resources Earnings Call Transcripts
Fiscal Year 2026
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Revised summary: The event outlined accelerated execution of a diversified strategy, with coal as a cash-generative base and growth targeted in manganese and renewables. Disciplined capital allocation and a robust decarbonization roadmap support the goal of over 50% of earnings from energy and metals by 2030, while maintaining strong shareholder returns.
Fiscal Year 2025
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Revenue grew 3% to ZAR 41.8bn despite lower coal prices, with EBITDA down 2% and headline EPS up 8%. Strategic milestones included doubling renewable energy capacity, entering manganese, and revising the dividend policy, with ZAR 6.3bn returned to shareholders.
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Production and sales are on track with guidance, despite lower commodity prices and logistical constraints. Strategic milestones include the successful ferroalloy divestment, progress on the manganese acquisition, and expansion in renewables. Export volumes remain flat, with a shift from Maputo to RBCT due to cost considerations.
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Revenue and EBITDA grew 8% and 10% year-on-year, respectively, with strong cost control and robust cash generation. Strategic milestones included wind farm financial close, manganese asset acquisition, and a 45th consecutive dividend, while logistics and project delays remain key risks.
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Safety performance remains strong, but coal production and sales are down due to lower Eskom demand and global oversupply. Net cash is robust, and cost-cutting continues, while Leeuwpan mine faces a formal turnaround process. H2 outlook depends on Eskom offtake and infrastructure improvements.
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The acquisition secures a strategic entry into the manganese sector, diversifying the portfolio with long-life, cash-generative assets in South Africa. The deal, valued up to ZAR 14.64 billion, is expected to close by Q1 2026, with strong shareholder support and no major capex required.
Fiscal Year 2024
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Revenue rose 5% year-over-year, but EBITDA fell 22% due to lower coal prices and higher costs. Export sales surged 37%, while coal production dropped 7%. A strong net cash position enabled a final dividend and share buyback, with 2025 guidance focused on operational excellence and growth.
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Safety performance remains strong, with 26 months without a fatality. Coal production and sales are down year-on-year, but export demand from India and China has supported pricing. Logistics and cost challenges persist, but growth projects and energy initiatives are progressing.
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EBITDA declined 10.5% to ZAR 5 billion due to lower coal prices and volumes, but export sales rose 22% via alternative channels. Interim dividend of ZAR 7.96/share declared, with strong cash generation and continued progress on decarbonization and social investment.
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First half 2024 saw improved safety, lower coal production and sales, and a shift from domestic to export sales. Cash position remains strong, with guidance upgraded for higher second-half output. Logistics and market challenges persist, but strategic initiatives and growth plans are progressing.