Exxaro Resources Ltd. reported an 11% increase in coal production to 21.5 million tonnes in the first half of 2026, driven by higher output at its Grootegeluk and Matla operations, even as some sites saw declines. The Johannesburg-based miner presented its interim results on August 20, 2026, covering the six months ended June 30, 2026.
Group revenue rose 7% to R22.1 billion, supported by a 15% jump in export volumes to 3.9 million tonnes. However, headline earnings per share (HEPS) declined 20% to R13.77, reflecting higher costs and the impact of the R10.6 billion manganese acquisition completed in March 2026. EBITDA remained flat at R5.6 billion, a 22% improvement from the second half of 2025, while cash from operations increased 15% to R6.1 billion.
The manganese segment, through Tshipi, produced 1.82 million tonnes, up 11% year-over-year, though sales fell 5% to 1.78 million tonnes. The average CIF price improved 18% to US$4.64 per dry metric tonne unit. Exxaro maintained its 47th consecutive dividend at R7.00 per share, supported by a cover ratio of 1.8 times under its enhanced policy of 1.5–2.5 times. The contribution from SIOC to dividends declined to R2.86 per share from R4.44 in the prior period.
Net cash position weakened to R6.4 billion, excluding project finance debt, as group net debt rose to R1.4 billion, primarily due to the manganese acquisition and R2.5 billion in debt settlement. Capital expenditure totaled R2.26 billion, with R1.4 billion allocated to sustaining projects and R864 million to expansion, including completion of the Lephalale Solar Project in April 2026 and ongoing work on the Karreebosch Wind Farm.
Renewable energy output from Cennergi increased 12% to 378 GWh, with wind generation jumping to 66 GWh from 4 GWh in the second half of 2025. Plant availability reached 98%, and the operational EBITDA margin stood at 79%. The company also reported a 22% reduction in Scope 2 emissions at Grootegeluk due to the solar project. Exxaro reaffirmed its full-year renewable generation target of 800–830 GWh.
Safety performance improved, with the lost-time injury frequency rate (LTIFR) dropping 60% to 0.02 per 200,000 worker-hours. Six operations achieved zero lost-time injuries, while Tshipi's LTIFR fell 52% to 0.12. The company marked four consecutive years without a work-related fatality as of August 15, 2026, down from its last fatality on August 15, 2022.
Exxaro's strategic pivot toward energy transition was underscored by its 2030 targets, aiming to reduce coal's contribution to group financial performance from approximately 75% in the first half of 2026 to around 40%, while increasing the combined share of energy and metals from 10% to 40%.
