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For the six months to 30 June 2026, revenue increased 7% to R22.1 billion, while EBITDA remained stable at R5.6 billion. Cash generated rose 15% to R6.1 billion, providing the group with capacity to fund sustaining and growth capital while maintaining shareholder returns.

Magara described the performance as evidence of the group’s “resilience and anti-fragility” amid macroeconomic volatility and continued inflationary pressure. 

“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.”

He highlighted the growing contribution of Exxaro’s diversified portfolio, with coal and energy continuing to provide resilient earnings while manganese made its first contribution to group earnings. 

“Our diversified portfolio continued to deliver through the cycle,” Magara said, adding that the manganese contribution was “further enhancing the diversification of our earnings base.”

Coal remains the earnings anchor as production rises

Coal production increased 11% to 21.5 Mt, supported by improved performance at Matla and Grootegeluk. Coal sales rose 4% to 19.9 Mt, while export sales increased 15% to 3.9 Mt.

Exxaro attributed the stronger export performance partly to the use of alternative logistics channels and improved performance from Transnet Freight Rail. However, the company said continued rail reform and reliable performance along key export corridors remain critical to unlocking further capacity and supporting sustainable volume growth.

The commissioning and expansion of Matla New Mine 1 in May also marked a significant milestone for Exxaro, supporting the long-term sustainability of the operation and securing coal supply to Eskom.

Manganese strengthens diversification strategy

The first-half results also marked an important step in Exxaro’s diversification strategy, with its manganese assets contributing to earnings for the first time during the reporting period.

The contribution partially offset lower equity-accounted income from SIOC and Black Mountain, which contributed to a 20% decline in headline earnings per share to R13.77. The board nevertheless approved a dividend of 700 cents per share, representing Exxaro’s 47th consecutive dividend since its 2006 listing.

Magara said the group’s strong balance sheet and disciplined capital allocation framework provide the flexibility to maintain shareholder returns while investing in strategic priorities. 

“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.”

Renewable energy begins delivering measurable impact

Exxaro’s diversification is also extending into renewable energy, with the 68 MW Lephalale Solar Project reaching commercial operation in April 2026. The project has already reduced Grootegeluk’s reliance on Eskom electricity by 30% and is targeting annual electricity cost savings of around R100 million. It has also contributed to a 22% reduction in Scope 2 emissions year to date.

Through its Cennergi renewable energy business, Exxaro has grown gross operating capacity to 297 MW, with a further 593 MW of gross banked capacity in its near-term pipeline. Magara positioned this transition as part of a broader effort to reshape Exxaro’s portfolio while maintaining its focus on stakeholder value.

“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.”

Safety performance reaches a new benchmark

Alongside its financial and operational performance, Exxaro recorded its best safety performance since listing. The group’s lost-time injury frequency rate improved 60% year on year to 0.02 per 200,000 hours worked, while Exxaro reached four years without a fatality. The company attributed the progress to its One Voice Safety strategy and continued employee focus on safe working practices.

From coal resilience to a diversified mining and energy portfolio

Exxaro’s first-half results underline the transformation of a traditionally coal-focused business into a more diversified mining and energy group. With manganese now contributing to earnings, renewable energy capacity expanding and decarbonisation initiatives delivering measurable results, the group is positioning its portfolio for longer-term resilience while continuing to rely on coal and energy for the bulk of its current earnings.

As Exxaro marks 20 years since its listing, Magara said the focus remains on creating value beyond the immediate operational cycle.

“As we celebrate 20 years of impact beyond the surface, we remain committed to creating lasting value.”

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