Exxaro’s Strong H1 2025 Results Highlight Coal and Manganese Growth
Discover how Exxaro’s robust H1 2025 performance, driven by coal sales and manganese expansion, showcases strategic diversification and sustainability in South Africa’s mining sector.
Key Takeaways
- Exxaro’s revenue rose 8% to R20.6 billion in H1 2025
- EBITDA increased 10% to R5.6 billion, maintaining a 27% margin
- Interim dividend grew 6%, marking 45 consecutive payouts
- Manganese acquisition valued at R11.67 billion expands diversification
- Renewable energy capacity set to more than double by 2027
Exxaro Resources Limited has once again proven its resilience and strategic foresight with a robust performance in the first half of 2025. Despite global commodity headwinds, the South African mining giant reported an 8% revenue increase to R20.6 billion and a 10% rise in EBITDA, underscoring operational strength. The company’s steadfast commitment to shareholder value shines through its 45th consecutive dividend payout, now at R8.43 per share.
But Exxaro isn’t just resting on coal’s laurels. Its bold move into manganese through a multi-billion-rand acquisition signals a savvy pivot toward minerals critical for the low-carbon future. Meanwhile, its renewable energy arm, Cennergi, is steadily powering the transition with wind and solar projects set to more than double capacity by 2027.
This article unpacks Exxaro’s financial highlights, operational excellence, and strategic diversification — revealing how the company is navigating market challenges while planting seeds for sustainable growth.
Driving Financial Resilience
Exxaro’s financial performance in the first half of 2025 reads like a masterclass in resilience. Revenue climbed 8% year-on-year to R20.6 billion, even as global coal prices softened. How? By tightening operational efficiency and managing costs like a seasoned pro. EBITDA rose 10% to R5.6 billion, maintaining a healthy 27% margin — a figure that speaks volumes about the company’s ability to keep profits flowing despite market turbulence.
Headline earnings per share didn’t just inch up; they jumped 13% to R17.24, rewarding shareholders with tangible growth. And speaking of rewards, the interim dividend increased 6% to R8.43 per share, marking an impressive 45th consecutive payout since Exxaro’s 2006 JSE listing. That’s a streak that would make any investor smile.
Behind these numbers lies a robust cash position. Net cash surged 27% to R12.4 billion, providing a financial cushion to fund future projects and acquisitions. It’s like having a well-stocked pantry when the market weather turns stormy — a reassuring sign of prudent stewardship.
Sustaining Coal’s Backbone
Coal remains the heart of Exxaro’s earnings engine, and the company is squeezing every bit of value from it. Production held steady at 19.4 million tonnes, while sales volumes nudged up 1%, thanks to savvy logistics that overcame rail disruptions. Export coal sales even grew 3%, a bright spot amid falling seaborne coal prices influenced by European inventory gluts and weather-related demand dips.
The segment’s EBITDA rose 10% to R5.6 billion, underscoring coal’s enduring profitability despite global headwinds. This steady performance challenges the myth that coal is a sinking ship. Instead, Exxaro’s approach shows coal can still be a reliable cash cow — at least for now — when managed with operational discipline and market savvy.
Safety also plays a starring role. The company marked three years without fatalities and maintained a lost time injury frequency rate of just 0.05, thanks to its refreshed “One Voice Safety Strategy.” It’s a reminder that behind the numbers are real people, and safety isn’t negotiable.
Expanding Through Manganese
Exxaro’s boldest move in H1 2025 was its strategic leap into manganese. The company announced a landmark acquisition valued at R11.67 billion, securing stakes in key assets like the Tshipi Borwa mine and Jupiter Mines. This deal, pending regulatory approval and expected to close in early 2026, is more than a transaction — it’s a pivot toward diversification and future-proofing.
Why manganese? It’s a mineral critical to battery production and the global energy transition, making it a smart bet for a company aiming to ride the green wave. By broadening its revenue mix beyond coal, Exxaro is positioning itself as a more versatile player in South Africa’s mining landscape.
This acquisition also signals a challenge to the myth that mining companies must stick to their traditional commodities. Exxaro’s move shows that strategic expansion, when done thoughtfully, can unlock new growth avenues and reduce exposure to commodity cycles.
Powering the Renewable Shift
Exxaro isn’t just mining minerals; it’s mining the future of energy. Its renewable energy subsidiary, Cennergi, generated 337 GWh in the half-year, aligning with guidance and steady seasonal trends. The company’s renewable portfolio is growing, with the 140 MW Karreebosch wind project reaching financial close and a signed power purchase agreement with Northam Platinum.
Together with the Lephalale Solar Project, Cennergi’s capacity is set to more than double by 2027. This isn’t just greenwashing — it’s a concrete step toward Exxaro’s commitment to carbon neutrality by 2050. The commissioning of a self-generation project at Grootegeluk aims to cut Scope 2 emissions by 25%, while partnerships with Eskom and Northam Platinum target broader emissions reductions.
This renewable push challenges the outdated view that mining and sustainability are mutually exclusive. Exxaro’s journey shows that embracing renewables can be both a strategic and ethical imperative.
Balancing Growth and Responsibility
Beyond profits and projects, Exxaro is investing in people and communities. The company poured R815 million into socio-economic development during the period, with 71% of coal procurement spend directed to black-owned local suppliers. This commitment reflects a broader understanding that mining’s future depends on social license and inclusive growth.
The company also reshaped its executive structure, adding leadership roles focused on coal, technical services, and sustainability — a clear signal that growth and responsibility go hand in hand. Operational efficiency remains a priority, with logistics partnerships aimed at smoothing supply chain challenges.
Looking ahead, Exxaro remains cautiously optimistic. It’s a company that knows the terrain is rugged but is equipped with a strong balance sheet, diversified assets, and a clear sustainability roadmap. For investors and stakeholders, that’s a narrative worth watching.
Long Story Short
Exxaro’s H1 2025 results tell a story of balance and boldness. The company’s coal operations remain a sturdy backbone, delivering steady production and rising export sales despite softer global prices. Yet, it’s the manganese acquisition and renewable energy expansion that truly signal a company looking beyond today’s cycles toward tomorrow’s opportunities. With a strengthened balance sheet boasting a 27% rise in net cash to R12.4 billion, Exxaro is financially equipped to see its diversification plans through. Its safety record and socio-economic investments add layers of resilience and responsibility, reinforcing stakeholder trust. For investors and industry watchers alike, Exxaro exemplifies how mining companies can evolve — blending operational grit with strategic agility. The company’s journey offers a compelling blueprint for thriving amid shifting commodity landscapes and the global push for a greener economy.