Half Year 2026 Exxaro Resources Ltd Earnings Call Transcript
Key Points
- Achieved best-ever safety record with four consecutive years without a fatality and a 60% improvement in lost time injury frequency rate to 0.02.
- Coal production increased 11% to 21.5 million tonnes, with export sales up 15% to 3.9 million tonnes, driven by improved rail performance and strong market demand.
- Renewable energy generation grew 12% with the Lephalale solar plant reaching commercial operation, contributing 66 GWh and reducing carbon emissions at the mine by 22%.
- Manganese acquisition contributed positively, with production up 11% and high-grade semi-carbonate prices rising 18% to $4.64 per DMTU, enhancing portfolio diversification.
- Declared 47th consecutive dividend of R7 per share, reflecting strong cash generation and a resilient balance sheet with net cash of R6.4 billion (excluding energy project finance).
- Headline earnings per share declined 20% to R13.77, impacted by a R781 million reduction in SIOC contributions due to stronger Rand and lower iron ore prices.
- Group EBITDA remained flat at R5.6 billion, with inflationary pressures (diesel up 25%, electricity tariffs up 10.6%) and a R740 million negative impact from the stronger Rand.
- Equity-accounted investments underperformed, with Black Mountain facing higher mining costs and slower-than-anticipated ramp-up of the Gomsberg II project.
- Manganese acquisition incurred one-off costs, including a R179 million day-one fair value loss on Jupiter Mines and transaction expenses, masking underlying operational gains.
- Renewable energy generation guidance was revised downward to 800-830 GWh due to weaker wind conditions in the Eastern Cape, despite strong plant availability.
Thank you for joining us here today, here in person at The Connection and to those that are joining us online, we welcome you.
My name is Anda Mwanda. I look after investor relations at XRO and today I'll be facilitating this session.
Before we begin, like we always do at XRO, safety is our number one priority.
And for today, please note that we have not planned any emergency drill.
Therefore, if the alarm is activated, please remain calm and wait for the Exaro Furor Marshals who are wearing red reflective vests here in the building.
And they will lead you to the assembly point in front of the building where we have our parking area.
Where we'll all have a roll call which will be conducted by an EXARO floor marshal.
We'll all remain there until safety issues, until the next we are informed to come into the building.
If at any time during the presentation you feel unwell, please inform your host who will escort you to the onsite clinic for medical assistance.
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