South African diversified miner Exxaro Resources reported a 20% decline in headline earnings per share for the six months ended June 30, 2026, despite a 7% rise in revenue to ZAR 5.6 billion.
EBITDA remained broadly flat year-on-year at ZAR 5.6 billion, a 22% increase compared with the second half of 2025. Cash generation totaled ZAR 6.1 billion in the period, while the group maintained a net cash position of ZAR 6.4 billion, excluding Cennergi project finance debt. Net debt stood at ZAR 1.4 billion, including project financing.
The company declared an interim dividend of ZAR 7 per share, up from ZAR 2.93 in the prior final dividend. Exxaro noted its dividend policy targets returning 40% to 67% of group-adjusted earnings, with a 100% pass-through of Sishen Iron Ore Company dividends. This marks the 47th consecutive dividend since listing.
Operational performance showed mixed trends. Coal production increased 11% to 21.5 million tons, driven by higher output at Grootegeluk and a 38% year-on-year improvement at Matla. Total coal sales rose 4% to 19.9 million tons, with sales to Eskom up 6% to 14 million tons and export sales up 15% to 3.9 million tons. Realized export prices averaged $96 per ton, 91% of benchmark levels.
Renewable energy output climbed 12%, supported by the Lephalale Solar Project, which reached full commercial operation in April 2026. Guidance for full-year renewable generation was trimmed to 800-830 gigawatt hours from 830-860 gigawatt hours due to weaker wind conditions in the Eastern Cape. Manganese production rose 11% year-on-year, with guidance introduced for 3.2-3.4 million tons on a sales basis.
Exxaro reiterated its full-year 2026 export sales target of 8 million tons and maintained a capital allocation discipline aimed at keeping net debt-to-EBITDA below 1.5 times, excluding project finance debt. The company’s long-term strategy targets energy and metals contributing over half of group earnings by 2030.
Shares were down 1.11% at $18,790 at the time of the report, near the 52-week low of $16,422 and well below the 52-week high of $23,053.
