Salient Features:

Sustainability

• Achieved 40 consecutive months without a fatality
• Group LTIFR improved by 33% to 0.04
• R1.7 billion total contribution to society
• Energy availability increased by 2% to 98% while generation decreased by 3% to 703 GWh

Operational performance

• Coal production and sales increased to 39.9 Mt and 39.6Mt, up 1% respectively
• Coal export volumes increased by 2% to 7.1 Mt
• Coal average export prices of US$90, down 14%

Group financial performance

• Revenue increased by 3% to R41.8 billion
• EBITDA decreased by 2% to R10.2 billion
• Net cash position of R 17.6 billion at year end
• HEPS up 8% to 32.47 cents per share
• R10.00 per share final dividend declared. Together with an interim dividend of R8.43 per share, brings the FY25 to a total dividend of R18.43, compared to R16.62 in FY24.

Exxaro announces its full-year financial results for the year ended 31 December 2025. The results are buttressed by strong operational and financial momentum, underpinned by the execution of key strategic initiatives, a robust balance sheet and efficient marketing capabilities as the organisation celebrates 20 years of powering possibility in Africa and beyond. The group recorded zero fatalities in 2025, marking 40 consecutive months without a fatality. These outcomes demonstrate that our goal of zero-harm is achievable, and we must stay vigilant. We met our market guidance across all metrics.

The group’s revenue increased by 3% to R41.8 billion, demonstrating resilience and consistent operational excellence. Coal production and sales increased to 39.9Mt (up 1%) and 39.6Mt (up 1%), respectively. Coal export sales also increased to 7.1Mt (FY24: 7.0Mt), up by 2%, mainly driven by the improved performance at Transnet Freight Rail (TFR) and the efficiency of our alternative distribution channels.

Despite export coal prices dropping by 14%, Group EBITDA remained steady, declining marginally by 2% to R10.2 billion against R10.4 billion in FY24, driven by good cost management, operational efficiencies and marketing excellence. Cash generation remained robust, and in addition, our equity-accounted investments in iron ore and base metals continued to enhance the quality of our earnings. As a result, headline earnings per share (HEPS) increased by 8% to R32.47 per share (FY24: R30.16 per share).

On 27 February 2026, we closed the acquisition of select manganese assets from Ntsimbintle Holdings and OMH, following the 13 May 2025 announcement. Through this transaction, Exxaro acquired 100% of Ntsimbintle Mining (which holds a 50.1% ownership in the Tshipi Borwa mine), 19.99% of Jupiter Mines (which also holds a 49.9% ownership in the Tshipi Borwa mine), 100% of Ntsimbintle Marketing and Trading (NMT), and 9% of Hotazel Manganese Mines. We welcome the employees and contractors joining us through these operations.

This acquisition makes Exxaro a globally significant manganese producer underpinned by our interest in the Tshipi Borwa mine, one of the world’s largest manganese producers, delivering approximately 3.5Mt of annual manganese production from the Kalahari Manganese Field. Manganese is a key metal in steel alloys, adding strength and durability in infrastructure development and is gaining traction in clean energy battery chemistries and the full ownership of NMT strengthens our marketing and trading presence in Singapore and China. Additionally, it enhances our diversified, future-facing natural resources portfolio and expands our exposure to energy transition metals.

We grew our renewable energy business, more than doubling its capacity and expanded our pipeline through strategic acquisitions, including the 140MW Karreebosch windfarm project, which will supply wheeled energy to Northam Platinum Limited. The project is in construction and is expected to start generating green electrons in 1H27. We commissioned our 68MW Lephalale Solar plant, designed to generate 176GWh of energy per annum under a 25-year power purchase agreement. It is expected to deliver electricity cost savings at Grootegeluk of approximately R100 million per year and reduce our scope 2 emissions by 17%.

Another key milestone was the acquisition of majority interests in two fully operational renewable energy assets – the 138MW Gouda Wind Farm (Gouda) and the 75MW Sishen Solar Facility (Sishen), as well as Acciona’s Operations and Maintenance Proprietary Limited. We anticipate fulfilling the remaining conditions precedent, which include the lenders consent and ministerial approval, during 1H26.

Cennergi, in partnership with ENGIE, has been selected as a preferred bidder in Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) for the 240MW Corona Solar Project in the Free State. Reaching financial close on this project will increase Cennergi’s total capacity of assets under construction and in operation to 890MW.

Finally, we successfully concluded the sale of the entire shareholding in FerroAlloys to a consortium comprising FerroAlloys employees, management and EverSeed Energy - a black-owned investor, reinforcing our commitment to inclusive ownership. Delivering meaningful socio-economic impact remains a cornerstone of Exxaro’s purpose of powering better lives in Africa and beyond. Our social impact initiatives are designed to develop enterprise suppliers, reduce unemployment rates, improve access to quality education, support infrastructure development, empower host communities and foster inclusive growth. For the reporting period, our total social investment amounted to R1.7 billion of the total R19 billion stakeholder value created.

As previously communicated, the Group will no-longer maintain the previously targeted cash buffer of R12 billion to R15 billion. Consequently, the dividend cover ratio range has been revised from 2.5 to 3.5 times Adjusted Group Earnings to a range of 1.5 to 2.5 times., while the 100% pass through of the SIOC dividend remains unchanged. In line with the revised dividend cover range, the board has declared a final gross dividend of R10.00 per share, amounting to approximately R3.4 billion. Together with the interim dividend of R2.9 billion paid in October 2025, total dividends for FY25 amount to R6.3 billion. This marks Exxaro’s 46th consecutive dividend since listing on the Johannesburg Stock Exchange in 2006.

Ben Magara, Exxaro CEO said, “This is my first Exxaro annual results message and I am delighted to have joined as CEO at a time of Exxaro’s new growth phase. My Executive team and I, together with everyone at Exxaro worked very hard in a very challenging year and it’s been very fulfilling. We focused on stabilising the business, operational delivery and accelerating the prudent delivery of our Sustainable Growth and Impact (SG&I) strategy. This strengthened our position as a diversified natural resources champion, underpinned by its strong coal base, a growing renewable energy business, equity-accounted investments in iron ore and base metals and the recent acquisition of select manganese assets in the Kalahari manganese field. We delivered on our priorities of safety, stability, succession planning, operational delivery, capital discipline and prudent diversification. To strengthen stability and execution, we completed our group management structure with permanent appointments, embedding a future-fit functional leadership model that enhances collaboration, agile decision-making and delivery as we accelerate into Exxaro’s next phase of growth.”