Exxaro’s performance for the 2024 financial year demonstrated resilience and continued operational excellence. Our net cash position increased to R16.3bn (excluding Energy’s net debt) by the end of 2024, compared to R14.8bn at the end of 2023. As such the Board resolved to embark on a share repurchase programme of R1.2 billion subject to the prevailing market conditions and JSE Listings Requirements. The Board approved a gross final cash dividend of R8.66 per share, for the year ended 31 December 2024. Additionally, the Board approved a R1.2 billion share repurchase programme, subject to prevailing market conditions and JSE Listings Requirements.

Salient Features: FY24 performance against prior year FY23

• Zero fatalities for 28 consecutive months
• Loss Time Injury Frequency Rate (LTIFR) improvement to 0.06 in FY24 against 0.07 per two-hundred thousand man-hours in FY23
• Overall coal production down 7% to 39.5Mt in line with guidance
• Overall coal sales down 3% to 39.3Mt in line with guidance
• Export sales increase 37% to 7Mt
• Strong price realisation of 95%
• Steady wind generation of 725 gigawatt hours (GWh) in line with guidance
• Group Revenue of R40.7 billion, up by 5%
• Group EBITDA decreased by 22% to R10.4 billion
• HEPS at R30.16 per share, down 36%
• Group Social Impact spend amounted to R2.1 billion
• Final dividend of R8.66 per share
• Share repurchase programme of R1.2 billion subject to prevailing market conditions and JSE Listings Requirements

Exxaro’s performance for the 2024 financial year demonstrated resilience and continued operational excellence. Our net cash position increased to R16.3bn (excluding Energy’s net debt) by the end of 2024, compared to R14.8bn at the end of 2023. As such the Board resolved to embark on a share repurchase programme of R1.2 billion subject to the prevailing market conditions and JSE Listings Requirements. The Board approved a gross final cash dividend of R8.66 per share, for the year ended 31 December 2024. Additionally, the Board approved a R1.2 billion share repurchase programme, subject to prevailing market conditions and JSE Listings Requirements.

Safety is our number one priority, ensuring that all our employees return to their families safely, every day. At the end of the financial year, the group achieved 28 consecutive months without any work-related fatalities. Our lost time injury frequency rate (LTIFR) of 0.06 achieved in 2024, trended positively from 0.07 per two-hundred thousand man-hours worked for the year ended 31 December 2023. Riaan Koppeschaar, Acting CEO and Finance Director at Exxaro said, “In 2024, our Sustainable Growth and Impact strategy remained intact. Our operations delivered a solid performance while navigating challenging external factors. We have delivered on our guidance while prioritising safety, finishing our year with a group revenue of R40.7 billion, up by 5% from 2023.”

We are progressing our diversification towards energy transition minerals. Cennergi, our energy solutions business is well on its way to achieving its targeted installed capacity of 1.6 gigawatt (GW) by 2030. The business recently announced a partnership with G7 Energies in Karreebosch Wind Farm, which has secured an agreement with Northam Platinum Limited to supply 140 megawatts of power to its mines over a period of 20 years.

Exxaro remains a Top Employer and was awarded 2025 Top Employer award by the Top Employer Institute. We concluded a three-year coal wage agreement with all our employee unions, highlighting the sound employee and union relationships that Exxaro fosters, prioritising the needs of our employees first.

As part of our commitment to remain an empowered company, Eyesizwe shareholders have signed a separate waiver and undertaking, in favour of, and enforceable by Eyesizwe, to maintain the current 30.81% shareholding in Exxaro until 2027. In terms of the waivers and undertakings, shareholders waived their options to dispose of any of the locked-in shares or make any request which will result in Eyesizwe having to dispose of the locked-in shares, in the previously stated agreed tranches, until 2027. This is a significant milestone which ensures that Exxaro retains its empowerment level and status as one of South Africa’s largest and foremost black-empowered and diversified mining companies.

Additionally, we retained our BBBEE level 2 status, ahead of our level 3 target.

Financial performance: In 2024, group revenue has increased by 5% to R40.7 billion from R38.7 billion in 2023, the group EBITDA however decreased by 22% to R10.4 billion and this was mainly attributed to the 16% decrease in the coal EBITDA. The Sishen Iron Ore Company’s (SIOC) adjusted equity-accounted income decreased by 45%.

Coal performance: Our coal export continues to perform well, owing to the success in the Indian and Asian markets with our competitive product mix. Coal export sales improved by 37%, with the sales mix optimisation being maintained despite higher sales through alternative ports. The price realisation levels were also upheld above 90%, at 95%, despite price pressure in all markets. Overall coal production decreased by 7% to 39.5 million tonnes. The total production cash cost increased by 22% versus coal mining inflation of 4.9%. Expenditure in export logistics impacted 35% of the cost increase which further enabled a 37% volume increase.

Energy business performance: Operating wind assets generated 725 GWh of electricity and the revenue increased by 5% to just over R1.4 billion. The EBITDA margin for the energy business was consistent at 80% in 2024. This is underpinned by long-term offtake agreements with Eskom.

The construction of the 68 Megawatt Lephalale Solar Project (LSP) at our Grootegeluk mine is still on track for completion estimated to be in mid-2025.

The operating wind assets project financing of R4.1 billion will be fully settled by 2031 and the LSP project financing of R1.15 billion by 2042. Once completed, the LSP is expected to reduce Grootegeluk mine’s Scope 2 emissions by 161 kilotonnes (Kt) per year and deliver electricity cost savings.

Environmental stewardship: Our Decarbonisation Roadmap has been approved by the Board. It provides a clear pathway to responsible use and protection of the environment through sustainable practices. Our aim is geared towards achieving carbon neutrality by 2050 through responsible business practices focusing on decarbonisation and climate change agility. We are already implementing decarbonisation initiatives; in 2024 we improved carbon intensity by 6% compared to 2023. Air quality, rehabilitation programmes, biodiversity management, water, energy, and waste management are some of our priority areas of focus.

Social impact: Our group social investments amounted to R2.1 billion, culminating in initiatives and programmes that are in line with our social impact strategic pillars. The group’s local procurement from black Small, Medium, and Micro Enterprises (SMMEs) supported 562 SMMEs through enterprise and supplier development initiatives in 2024.

Our early childhood development (ECD) programmes benefited more than 2 700 children, more than 40 registered ECD’s and over180 teachers through professional training. Exxaro’s minerals successions programme (MSP) had 10 609 hectares of land under management and provided more than R63 million in funding towards 36 projects across six provinces in South Africa. The projects were made up of 662 farmers, 53% of which were women and 24% youth.

Koppeschaar concluded, “While 2024 had its challenges, we are confident that as an organisation, we are positioned to win. We draw confidence in our executive and management teams to execute on our strategy. With a combined executive experience of more than 250 years and long service record at Exxaro, we understand the business, its operations, people, communities, and stakeholders and will continue to drive the business’ operational excellence in 2025.”