Exxaro shines bright with strong financial performance in 2024

Exxaro, one of South Africa’s largest mining companies, has demonstrated resilience and continued operational excellence in their 2024 financial year.

With a net cash position of R16.3 billion, the company’s performance has been nothing short of impressive.

The Board has approved a share repurchase programme of R1.2 billion, highlighting their confidence in the company’s future growth.

Additionally, a final cash dividend of R8.66 per share has been approved, rewarding shareholders for their continued support.

Safety is a top priority for Exxaro, with the company achieving 28 consecutive months without any work-related fatalities.

Their focus on safety has resulted in a low lost time injury frequency rate (LTIFR) of 0.06 in 2024.

Riaan Koppeschaar, Acting CEO and Finance Director at Exxaro, expressed the company’s commitment to sustainable growth and impact.

With a revenue increase of 5% to R40.7 billion in 2024, Exxaro has delivered on their guidance while prioritizing safety and operational excellence.

Exxaro is also making strides in diversifying towards energy transition minerals, with their energy solutions business, Cennergi, aiming to achieve 1.6 gigawatt of installed capacity by 2030.

The company has been recognised as a Top Employer and has maintained their BBBEE level 2 status.

Exxaro’s commitment to empowerment is evident with the signing of a waiver and undertaking by Eyesizwe shareholders to maintain their shareholding until 2027.

In terms of financial performance, Exxaro saw a 5% increase in group revenue, although the group EBITDA decreased by 22% due to challenges in the coal sector. However, the company’s coal export sales have performed well, with a 37% increase in sales.

The energy business has also seen positive results, with operating wind assets generating 725 GWh of electricity and strong EBITDA margins.

Exxaro’s commitment to environmental stewardship is evident with the approval of their Decarbonisation Roadmap, aimed at achieving carbon neutrality by 2050.

The company is already implementing decarbonisation initiatives, improving carbon intensity by 6% in 2024.

With a focus on social impact, Exxaro has invested R2.1 billion in social initiatives, supporting local businesses and communities. Their minerals successions programme has benefited thousands of farmers across South Africa.

As they look towards the future, Exxaro is confident in their ability to continue driving operational excellence and growth in 2025.