H1 2026 Salient features -

Group performance

• Attained four years fatality-free
• Group Lost Time Injury Rate (LTIFR) improved by 60% to 0.02 per 200 000 worker hours worked, lowest on record for Exxaro
• Revenue of R22.1 billion, up 7%
• EBITDA of R5.6 billion, essentially flat despite inflationary pressures, reflecting the defensive nature of our coal and renewable energy businesses
• Cash generated by operations of R6.1 billion, up 15%
• Adjusted equity-accounted income of R1.4 billion, down 39%
• Headline earnings per share (HEPS) of R13.77, down 20%, impacted by lower adjusted equity-accounted income from Sishen Iron Ore Company (SI0C) & Black Mountain
• R7.00 per share interim dividend declared

Operational performance

• Coal production and total sales increased by 11% and 4% to 21.5Mt and 19.9Mt, respectively
• Coal export sales increased by 15% to 3.9Mt
• Coal unit cost of R681/t, up 4.6%, broadly in line with inflation
• Renewable energy generation of 378GWh, up 12%, driven by LSP contribution
• Newly acquired Manganese (Tshipi) investment contributed positively to group earnings – included for four months.

Sustainability

• LSP delivering green energy, driving down carbon emissions and energy intensity.
• Carbon and energy intensity improved by 3% and 1% to 4.57tCO₂e/kTTM and 30.52GJ/kt, respectively.
• Belfast IWUL approved to support the extension of Life of Mine (LoM)
• Social investments of R1.4 billion and maintained Level 2 B-BBEE contributor status

Exxaro Resources today announced strong interim financial results, especially for the coal and energy business for the six-month period ended 30 June 2026. This was driven by disciplined strategy execution, operational excellence and underpinned by our commitment to achieve Zero Harm despite heightened geopolitical tensions, renewed energy security concerns and broader macro-economic headwinds. The Group continues to execute on its Sustainable Growth and Impact (SG&I) strategy.

Alongside solid financial and operational performance for the reporting period, the group achieved its best safety performance since listing in 2006, with LTIFR improving year-on-year by 60% to 0.02 per 200 000 worker hours worked. Exxaro achieved four years without fatality. The ongoing implementation of our One Voice Safety strategy and the commitment of all our employees to working safely is very encouraging, ensuring that safety remains the foundation of how we operate at Exxaro, and we must continue to remain vigilant.

We reiterate our full-year guidance for coal production, sales, exports and sustaining capital. Renewable energy guidance as per the finance director’s pre-close message, has been revised downwards due to the weaker wind resource conditions experienced in the current year. The Group successfully commissioned and expanded its Matla New Mine 1 shaft, supporting long-term sustainability of the mine. Our metals portfolio reached a significant milestone during this reporting period, with a four-month contribution from its manganese assets, further enhancing the diversification of the group's earning base. The Lephalale Solar Project’s (LSP) contribution is already delivering intentional and measurable decarbonisation benefits, highlighting meaningful progress towards a lower-carbon future.

The diversified and defensive portfolio continues to support resilient earnings and cash generated despite inflationary pressures. Revenue increased by 7% to R22.1 billion, primarily driven by the coal and energy businesses, and EBITDA remained stable at R5.6 billion, reflecting disciplined cost management, strong operational performance and the defensive nature of the Group’s portfolio. Cash generated remained robust at R 6.1 billion, up by 15%, and as a result enabled the group to fund its sustaining capital, energy expansion capital and dividends.

Headline earnings per share (HEPS) decreased by 20% to R13.77, largely due to lower equity-accounted income from SIOC and Black Mountain. This was partially offset by the positive contribution from the manganese business, which contributed to the group's earnings for the first time during the last four months of the reporting period. In line with the group’s revised dividend policy of returning between 1.5x to 2.5x Adjusted Group Earnings and a 100% SIOC dividend pass-through to shareholders, the board has approved a dividend of 700 cents per share, marking Exxaro’s 47th consecutive dividend since listing in 2006.

Coal production increased by 11% to 21.5 Mt, supported by improved output at the Matla and Grootegeluk operations. Coal sales increased by 4% to 19.9 Mt, supported by Eskom’s higher offtake at Matla and stronger export volumes. Export sales increased by 15% to 3.9Mt, strengthened by Exxaro’s effective use of alternative channels, including the improvement of Transnet Freight Rail’s (TFR) performance, despite constraints in the Waterberg line, rail reforms and sustained corridor performance remain key levers to unlocking export potential. Sustained engagements with our logistics partners and targeted interventions remain critical to unlock further capacity, improve reliability and support sustainable volume growth.

In May 2026, we officially opened our New Mine 1 shaft at our Matla Coal Mine in Mpumalanga, marking a significant milestone in providing certainty and preserving livelihoods. The New Mine 1 came at the back of a long-term coal-supply agreement which was signed between Exxaro and Eskom, reinforcing an important and strategic partnership that has supported South Africa’s electricity generation for more than four decades.

Furthermore, Exxaro continued to advance strategic initiatives during the period, which included securing the approval of the amended Belfast Integrated Water Use License (IWUL), a key milestone supporting the mine’s life extension opportunities and sustainable operations.

Another key milestone was the 68 Megawatt (MW) Lephalale Solar Project (LSP), Exxaro’s first utility-scale, self-generation renewable energy asset, which achieved its commercial operation date on 21 April 2026. The facility’s contribution is already delivering measurable decarbonisation benefits, reducing Grootegeluk’s reliance on Eskom power by 30%, and is on track with reducing electricity costs by approximately R100 million annually and achieving a 22% reduction in Scope 2 emissions year to date. The group’s carbon intensity improved by 3% and the energy intensity by 1%. These positive outcomes advance progress towards the Group’s short-term target of reducing Scope 1 and Scope 2 emissions by 40% in 2030 and 70% by 2040, with the ultimate ambition of reaching neutrality by 2050. In addition, we are closely monitoring technological advancements in mining fleet electrification to support medium-term Scope 1 emissions reductions, while continuing to optimise energy-efficiency programmes across our operations.

Exxaro’s renewable energy solutions business, Cennergi, continues to be a growing, cash-generative renewable energy business, providing stable and predictable earnings that are becoming an increasingly material contributor to the group’s diversified earnings base, while supporting the decarbonisation pathway. Through Cennergi, Exxaro has grown its gross operating capacity to 297MW, with 593MW gross banked capacity in the near-term growth pipeline. Energy generation increased by 12% to 378 gigawatt-hours (GWh) of solar power, boosted by LSP, delivering 66GWh of solar power during the half. Energy Operational EBITDA increased 2% to R548 million, sustaining a high margin of 79% (1H26: 80%).

Ben Magara, Exxaro CEO, said, “The first half of 2026 demonstrated the resilience and anti-fragility of our business, with a strong operational performance, cost management and cash generation in a volatile macroeconomic environment and continued inflationary pressures. Our diversified portfolio continued to deliver through the cycle, with resilient earnings from our coal and energy businesses complemented by the first contribution from manganese, further enhancing the diversification of our earnings base.

This performance, together with our strong balance sheet and clear capital allocation framework which we have consistently applied with discipline, provides the flexibility to sustain our track record of consistent shareholder returns and fund our strategic priorities.

We will continue to decarbonise our portfolio today for a sustainable tomorrow, while delivering positive social impact and honouring our commitments to all our stakeholders. As we celebrate 20 years of impact beyond the surface, we remain committed to creating lasting value.