Business overview For the year ended 31 December 2025

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. Despite a dynamic macro-environment, we focused on stabilising the business, operational delivery and accelerating the prudent delivery of our SG&I strategy. This strengthened Exxaro's position as a diversified natural resources champion, underpinned by its strong coal base, a growing energy solutions 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 and prudent diversification. To strengthen stability and execution, we completed our group management structure with permanent appointments, embedding a future-fit functional model that enhances collaboration, agile decision-making and delivery as we accelerate into Exxaro's next phase of growth.

The group recorded zero work-related fatalities in FY25, marking 40 consecutive months without a fatality. Our LTIFR improved by 33% to 0.04 per 200 000 worker-hours worked (FY24: 0.06), with both Grootegeluk and Belfast achieving a full year without lost-time injuries. These outcomes demonstrate that our goal of zero harm is achievable, and we must stay vigilant.

We met our market guidance across all metrics. Through our effective Market-to-Resource initiatives, we achieved a price realisation of 96% (FY24: 95%) against the FY25 average API4 coal benchmark price of US$90 per tonne (FY24: US$105 per tonne). Despite a 14% weaker export coal pricing environment, our strong marketing capabilities, disciplined cost management and good production, combined with the defensive nature of Exxaro's portfolio, enabled the group to sustain a resilient EBITDA performance, decreasing marginally by 2% to R10 225 million (FY24: R10 423 million).

Cash generation remained robust, and our equity-accounted investments in iron ore and base metals continued to enhance the quality of our earnings. As a result, HEPS increased by 8% to R32.47 per share (FY24: R30.16 per share).

Following the completion of the acquisition of the select manganese assets from Ntsimbintle Holdings and OMH, the group will no longer maintain the previously targeted cash buffer of R12 billion to R15 billion and is reviewing its capital allocation framework. Consequently, the dividend cover ratio range has been revised from 2.5 times to 3.5 times Adjusted Group Earnings to a range of 1.5 times to 2.5 times, while the 100% pass-through of the SIOC dividend remains unchanged.

In line with the revised lower dividend cover range, the board has declared a final gross dividend of 1 000 cents per share, amounting to approximately R3.4 billion. Including the interim dividend of R2.9 billion paid in October 2025, total dividends for FY25 amount to R6.3 billion. This reflects our ongoing commitment and consistency in delivering superior and consistent returns to our shareholders, as guided by our disciplined capital allocation framework.

In line with Exxaro's impact beyond the surface, the group invested R1.7 billion in social impact projects which are focused on driving impact towards preferential procurement, education, enterprise and supplier development and creating secondary economies through our Mineral Succession Programme.

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 NMT, and 9% of Hotazel. 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.

Full ownership of NMT strengthens our marketing and trading presence in Singapore and China. Overall, this transaction enhances our diversified, future facing natural resources portfolio and expands our exposure to energy transition metals.

The disposal of our entire shareholding in FerroAlloys on 31 October 2025, represented a key milestone in streamlining our portfolio and sharpening management focus. In the capable hands of FerroAlloys management, employees and Everseed, we are confident that FerroAlloys will continue to grow and drive positive economic impact in South Africa.

The strength of our coal business is underpinned by the high-quality infrastructure investments made over many years and a substantial resource base of over nine billion tonnes. This supports long LoM profiles, which we continue to evaluate, and provides a foundation for our organic growth pipeline. We have made progress on the Leeuwpan turnaround strategy, and we are pleased to announce that the Section 189 process has now been completed. The turnaround strategy is aimed at returning the operation to profitability, supported by a focused set of actions to stabilise operations and improve logistics performance. In partnership with TFR, we have been able to increase the Leeuwpan mine to port logistics per the agreement signed in 2H25.

The Matla LoM Expansion Project has progressed well and is targeted for completion in 1H26. This R5.2 billion project has been successfully executed by Exxaro, by leveraging its mining and project management capabilities, for Eskom. The project involved the sinking of a new shaft to replace the decommissioned shortwall section. The project is ahead of schedule, delivering early coal production and contributing to the mine's production increase in FY25. Post completion the mine will supply between 8Mt to 10Mt of coal per annum to the Matla power station. The renewal of the mine's IWUL and Mining Right provide long-term operating certainty and strengthens the value of this investment.

In FY25, we grew our energy solutions business, more than doubling its capacity and expanding our pipeline through strategic acquisitions, including the 140MW Karreebosch wind 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.

In December 2025, we commissioned our 68MW Lephalale solar plant. The plant, a behind-the-meter solution to our Grootegeluk mine, is 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%.

A key milestone in the acquisition of majority interests in two fully operational renewable energy assets, the 138MW Gouda windfarm and the 75MW Sishen solar plant, as well as Acciona Energy South Africa O&M Proprietary Limited - has been achieved, with the receipt of Competition Tribunal and Reserve Bank approval. Cennergi anticipates fulfilling the remaining conditions precedent, which include the lenders consent and ministerial approval, during 1H26 to complete this acquisition.

Cennergi, in partnership with ENGIE SA, 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 Pproject in the Free State. Reaching financial close on this project will increase Cennergi's total gross capacity of assets under construction and in operation to 890MW.

Safety

Exxaro remains steadfast in its commitment to achieving zero harm. This commitment is demonstrated by the successful rollout of our refreshed One Voice Safety strategy, built on five key focus pillars. These are streamlined communication; incredible leadership; leading safe practices; zero tolerance and being a learning organisation.

As at 31 December 2025, Exxaro recorded zero work-related fatalities, marking 40 consecutive months fatality-free. We achieved a 33% improvement in our group LTIFR of 0.04 (FY24: 0.06), while our coal business achieved an LTIFR of 0.3, an improvement of 50%. Both Grootegeluk and Belfast ended the year without a lost time injury. These achievements highlight the commitment of our workforce. We remain determined to achieve zero harm, and must remain vigilant.

People and culture

We stabilised the business following a challenging start to the year, and we are pleased with the dedication and resilience of Exxaro employees. We visited all our operations, including all our closed collieries and our renewable energy farms. We showed up as an executive leadership, and we listened to our employees at the coal face. We even visited our labour organisations at their Head offices, our regulators, and our investors. We reinforced that our Sustainable Growth and Impact Strategy was robust and intact.

We restructured our management structure to make it fit for purpose. Our leadership bench strength is now complete and representative of our country's demographics with competent young and old executives, a blend of energy, foresight, experience, expertise, diverse and inclusive. We executed an ethics and culture reset and the positive results were reflected in our follow-up culture pulse survey outcomes post year end. We strengthened our leadership capability and enhanced our succession planning.

Alongside leadership stability, we continued to advance our culture transformation journey, reinforcing the behaviours and leadership practices required to enable collaboration, accountability, and high performance across the group, delivered through the 'Exxaro Way'. Building a strong ethical and values-driven culture remains central to sustaining operational excellence and delivering long-term value, while creating an environment where our people can do the best work of their lives together, safely.

Capability building remained a priority and we continued to invest in our people. During the year we invested R399 million in learning and development initiatives aimed at strengthening technical capability, developing future leaders, and preparing our workforce for the evolving demands of our diversified natural resources business.

Our commitment to diversity, equity and inclusion continues to shape our employee compositions from historically disadvantaged backgrounds representing 91% of our workforce, while women account for 35% of employees and 47% of management roles. These outcomes reflect our deliberate, ongoing efforts to build a more inclusive and representative organisation.

Finally, the strength of our people practices was again recognised externally with Exxaro being certified as a Top Employer by the Top Employer Institute for the fifth time, with an improved overall score of 89.49% (FY24: 83.39%). This recognition reaffirms the progress we are making in building a high performing organisation that enables our people to contribute meaningfully to Exxaro's long-term success.

Social investment and development

Delivering meaningful socio-economic impact remains a cornerstone of Exxaro's purpose of powering better lives in Africa and beyond. Our initiatives are designed to contribute to reducing unemployment, improving access to quality education, supporting infrastructure development, empowering host communities and fostering inclusive growth. Exxaro's total social investment for FY25 amounted to R1 735 million.

A key component of this investment is our ESD programme, which continues to drive transformation and economic participation. During the reporting period:

• 389 black-owned MSMEs were supported through local procurement spend of R1 307 million
• 13 MSMEs received direct funding support totalling R76 million
• A further 29 host community micro-enterprises received grant funding of R250 000 each after participating in the competitive Pitch for Funding Programme

Creating secondary economies that will continue to thrive beyond mining is vital in driving sustainable socio-economic impact in our communities. Our Mineral Succession Programme supported 36 farming projects which benefitted 138 farmers across the country. This programme provides value chain support to local farming entrepreneurs, particularly youth, providing access to land, funding and securing the market for the farmers' products.

These efforts reflect our commitment to building resilient communities and enabling long-term economic empowerment through targeted investment and strategic partnerships.

Our ECD programme continues to make a meaningful impact, supporting 2 955 children across our host communities. This ensures that we lay the foundation for better educational outcomes and future economic opportunities. In FY25 we completed the ECD Center of Excellence to support 44 surrounding facilities in Lephalale. Through our practitioner support programme, 31 practitioners received National Qualificaton Framework (NQF) level 4 qualifications during the year.

Environmental stewardship

We continue to advance our efforts to reduce water usage, operational carbon emissions, adopt low-carbon technologies, promote energy efficiency, identify and manage climate risks and opportunities, and increase the adaptive capacity and resilience of our operations and host communities.

Our board-approved decarbonisation roadmap continues to serve as a blueprint and an impactful energy transitioning framework for the business. A major milestone was the commissioning of the Lephalale solar plant, our first self-generation plant supplying renewable energy to Grootegeluk. This supports our goal of reducing scope 1 and scope 2 emissions by 40% by 2030, and our commitment to carbon neutrality by 2050.

We remain committed to decarbonising our value chain through the implementation of emissionreduction projects aligned with the memoranda of understanding signed with various stakeholders, including Eskom and The Council for Geoscience of South Africa. On the policy front, we continue to align and support various national and global climate initiatives aimed at mitigation and adaptation.

Environmental performance

As at 31 December 2025, we recorded zero level 2 or level 3 environmental incidents. We also secured several critical environmental licences such as Matla's renewed IWUL and Mining Right which will ensure the mine's continued regulatory compliance with the National Water Act, 1998 as well as the Mineral and Petroleum Resources Development Act, 2002. Moreover, these approvals safeguard legal compliance of our operations and enable the uninterrupted execution of mining and environmental management activities.

Our FY25 carbon intensity increased by 14% to 4.71 tCO₂e/ktTTM from 4.12 tCO₂e/ktTTM in FY24. Importantly, despite this increase, this remains 2% below our target for FY25 of 4.83 tCO₂ e/ktTTM. The increase is primarily driven by production changes and the higher Eskom grid emission factor (FY25: 1.08 tCO₂ e/MWh vs FY24: 1.04 tCO₂ e/MWh). Our phased long-term objective to achieve carbon neutrality for scope 1 and scope 2 emissions by 2050 remains unchanged.

The objective remains to reduce Exxaro's energy intensity. In FY25, our group's target was 32.6 GJ/kt. The group achieved an energy intensity of 30.7GJ/kt, reflecting an increase of 11% (FY24: 27.67GJ/kt). Overall, we remain committed to improving operational energy efficiency and advancing our decarbonisation objectives.

Our total water consumption (water withdrawals less water discharged) increased by 3.6%, largely driven by the inclement weather experienced at Grootegeluk. Water recycling declined by 6%, resulting in an overall recycling ratio of 44% (FY24: 50%). Consequently, our water intensity increased by 1.8% to 145 L/tRoM, compared to a 35% improvement reported in FY24.

Our water intensity target remains well below the coal industry average of 380L/tRoM, it was reduced to 175L/tRoM from 180L/tRoM in FY24. This adjustment aligns with our site‑specific norms and supports our ongoing strategy to reduce water intake while enhancing conservation and reclamation efforts.

Rehabilitation

Integrated closure planning and concurrent rehabilitation are fundamental to meeting Exxaro's environmental, social, and financial responsibilities. Effective rehabilitation reduces long term liabilities, safeguards ecosystems, and promotes sustainable land use that supports employees, communities, and future economic activity. This area is receiving greater management attention.

In FY25, rehabilitated land increased by 313.8 hectares at Belfast and Matla. However, land disturbed increased by 737 hectares compared to FY24 due to additional mining activities. As a result, the ratio of land rehabilitated to land disturbed increased to 27.5% (FY24: 25.8%).

Since taking office in January 2025, US President Donald Trump implemented a series of tariffs and trade measures following multiple rounds of escalation and subsequent easing. These policy shifts reshaped global trade dynamics, weighing on international sentiment and contributing to heightened financial market volatility and the weakening of the US dollar. Despite these headwinds, overall global economic activity maintained positive momentum through FY25.

Coal markets and commodity price

During FY25, the thermal coal market experienced a few notable trends, namely, a decline in global seaborne demand, persistent oversupply, and China and India wrestling to balance domestic production with import requirements. These dynamics contributed to benchmark prices sliding to the lower end of the range, with the API4 index falling below US$80 per tonne in October 2025, impacting coal industry profitability.

India’s demand for imported coal remained subdued, driven by lower coal-based power demand, weak construction activity and a struggling sponge iron market. Increased renewable enegy generation and ample domestic coal inventories together with industrial slowdowns led to reduced dependence on imported coal. The sponge iron market also continued to face pressure, as steel prices were still recovering.

Japan maintained a steady coal consumption, although gas and nuclear continued to expand their share in the energy mix. Taiwan experienced significant progress in running the island on gas and renewable energy. In South Korea, coal demand was affected by power grid constraints, which support gas and renewable energy generation, driven largely by environmental considerations.

Europe continued to display opportunistic trends, with coal demand remaining highly dependent on weather conditions and geopolitical factors that influence energy security, oil, and gas prices. Tailwinds from poor renewables performance also added to the demand equation. However, overall demand in the region continues to decline, with several countries, such as Denmark, France, Spain, and Italy, actively advancing policies and initiatives to phase out coal-fired power generation.

Domestic coal market demand remained stable throughout FY25, supported by gradual recovery across several key industries. However, certain industries continued to experience pressure due to higher production cost and increasing competition from imports. Although export prices softened in FY25, demand for premium quality coal remained strong, while lower grade material was redirected by market participants in the domestic market. Overall, the market demonstrated resilience, underpinned by customers’ continued adaptability across export and domestic channels.

In the Waterberg region, coal offtake from Grootegeluk remained subdued due to operational constraints at the Matimba power station. This was partially offset by the successful return of Unit 4 at the Medupi power station in 2H25.

Coal logistics and infrastructure

Despite some setbacks in 1H25, including a rail wash-away affecting Grootegeluk and two derailments further impacting throughput, TFR achieved an improved annual performance of 9.5%, ending the year at 56.82Mt, compared to 51.91Mt in FY24.

Coal line performance gains were particularly evident in the Mpumalanga region, where operational stability improved considerably. However, performance in the Waterberg region did not experience a similar uplift and continues to operate below capacity.

To address these constraints and support sustained growth, TFR and the coal industry have agreed on a series of initiatives to be implemented, focused on stabilising operations and increasing throughput.

Energy market environment

South Africa accelerated its renewable energy transition in FY25 through firm policy execution and market reform. Cabinet approved the South African Renewable Energy Masterplan (SAREM), targeting 3GW to 5GW of new wind, solar and storage capacity annually by 2030, while the Integrated Resource Plan (IRP 2025) outlines large-scale capacity expansion through to 2039. Private sector offtake remains the primary driver of new generation despite regulatory and grid constraints.

To address grid-access limitations, the National Energy Regulator of South Africa (NERSA) approved a temporary congestion curtailment mechanism (1 April 2025 to 31 March 2028). This allows developers in the highly constrained Eastern and Western Cape to accept limited curtailment (up to 4%) during congestion periods in exchange for compensation, unlocking ~3.4GW of wind capacity. This measure provides a practical interim solution while transmission upgrades progress.

Transmission expansion will be driven by the ITP, mobilising private capital into grid infrastructure. Furthermore, the National Transmission Company South Africa (NTCSA) opened a pre-qualification tender for private developers to participate in the ITP. By December 2025, government confirmed that seven consortia were selected from an initial 17 respondents to the pre-qualification stage. This stage of the grid development earmarks the construction of 1 164km of new 400kV lines across key provinces. Market liberalisation also advanced through development of the South African Wholesale Electricity Market (SAWEM), although its planned launch date in April 2026 faces a timing risk.

These reforms expand opportunities for Exxaro to strengthen its position in the low-carbon energy market while advancing energy resilience and transition objectives.

Revised segmental reporting

In line with the changes to the executive leadership team and organisational structure, and in anticipation of the completion of the select manganese assets acquisition, the segmental disclosures have been represented, notably, to incorporate a metals reportable segment.

The adjustments to the segmental information are as follows:

• FerroAlloys financial results up to the date of disposal (31 October 2025) have been included in the other segment as the group no longer reports a ferrous reportable segment
• A metals reportable segment comprising manganese, iron ore and base metals as operating segments (aligned with the responsibilities of the Executive Head: Metals) was introduced

Group revenue and EBITDA

In FY25, Exxaro delivered a strong performance, driven by operational, cost and marketing efficiencies, despite facing a challenging macro-economic environment.

Group revenue increased to R41 771 million (FY24: R40 725 million), mainly driven by a 3% rise in coal revenue.

Group EBITDA declined marginally by 2% to R10 225 million (FY24: R10 423 million), resulting in an EBITDA margin of 24%, compared with 26% in FY24. Although our coal EBITDA increased by R15 million to R10 251 million (FY24: R10 236 million), this was offset by a 17% decline in energy EBITDA to R859 million (FY24: R1 031 million). In addition to the lower generation, the energy business incurred growth associated costs linked to our strategic acquisition initiatives as well as to strengthen internal capabilities. The Operational EBITDA margin remains consistent year on year.

The metals segment negative EBITDA comprises costs associated with the acquisition of the select manganese assets, with a negative contribution from the other operating segment of R707 million (FY24: R844 million). Further details are provided in the segmental performance discussions.

Adjusted equity-accounted income

Adjusted income from equity-accounted investments increased to R4 525 million (FY24: R3 685 million), primarily driven by:

• A positive contribution of R490 million delivered by Black Mountain, compared to R65 million in FY24, an improvement of R425 million. The positive contribution was driven by higher zinc production and sales volumes resulting from more favourable mining conditions, partially offset by lower commodity prices
• An increased adjusted equity-accounted income from SIOC at R3 989 million (FY24: R3 383 million) was driven by higher realised iron-ore prices and improved operational stability across the value chain; offset by
• Decreased adjusted equity-accounted income from the Mafube joint venture of R66 million (FY24: R243 million), mainly due to lower coal export prices, partially offset by an increase in sales volumes

These investments continue to provide Exxaro with meaningful diversification and enhanced quality of earnings.

Group earnings

Headline earnings increased 6% to R7 728 million (FY24: R7 298 million), primarily driven by the increase in adjusted equity-accounted income.

WANOS decreased to 238 million (FY24: 242 million) due to the repurchase and cancellation of shares under the share repurchase programme. A total of 7 391 418 shares were repurchased, representing 2% of Exxaro's issued share capital prior to the repurchase.

The earnings increase and the change in WANOS equates to HEPS of 3 247 cents per share (FY24: 3 016 cents per share), an increase of 8%.

Cash flow, capital expenditure and balance sheet

Exxaro's portfolio of high-quality, well-capitalised assets, supported by disciplined operational execution and effective working capital management, continues to deliver strong and consistent cash generation at R10 040 million (FY24: R10 432 million). Dividends received from equity-accounted investments amounted to R3 367 million (FY24: R3 871 million), primarily from SIOC. These cash flows were sufficient to fund capital expenditure, taxation, and ordinary dividends paid.

Total capex increased to R5 099 million (FY24: R2 448 million), comprising:

• R2 295 million (FY24: 2 146 million) sustaining capital, primarily in the coal business
• R2 804 million (FY24: R302 million) expansion capital, mainly for the construction of the 140MW Karreebosch project in the energy portfolio which was funded through project financing

Our balance sheet remains strong and flexible, underpinned by robust cash generation and prudent capital allocation. Strong operational cash generation increased the group's net cash position (excluding energy's net debt) to R17 641 million as at 31 December 2025 (31 December 2024: R16 309 million). Energy's net debt amounted to R6 927 million (31 December 2024: R4  million), with limited recourse to Exxaro's balance sheet and hedged through interest rate swaps.

Operational efficiency remains central to our financial resilience and long-term value creation.

Unreviewed coal production and sales volumes

Total coal production volumes (excluding buy-ins) were marginally higher than in FY24, increasing by 344kt (1%). The increase was mostly driven by improved production at Matla and Mafube, partially offset by lower production at Grootegeluk and Leeuwpan.

Total coal sales volumes increased by 234kt (1%) to 39.59Mt (FY24: 39.36Mt), supported by higher domestic and exports sales, although this was partly offset by lower Eskom sales due to reduced demand.

Thermal coal: Commercial Waterberg

At Grootegeluk, production decreased by 410kt (2%) to align with lower demand from Eskom, as reduced power station output led to full stockpiles at the mine.

The 877kt (4%) decline in sales was driven by lower demand from Eskom, mainly due to reduced offtake from the Matimba power station, coal stacker reclaimer constraints and unit outages. This was partially offset by higher demand from the Medupi power station following the return of Unit 4 in 2H25.

Thermal coal: Commercial Mpumalanga

Coal production from the commercial Mpumalanga mines increased by 53kt (1%) compared to FY24, primarily driven by:

• Mafube: +194kt (11%) due to improved equipment availability and optimised mining method

This increase was partly offset by decreased production at Leeuwpan (-133kt), following the announcement of the Leeuwpan optimisation strategy.

Domestic coal sales from the commercial Mpumalanga mines increased by 631kt (25%), mainly due to:

• Belfast: +517kt (139%) supported by higher product availability and strong local market demand
• Mafube: +259kt (62%) as all power-station coal not exported was redirected to the local market

These gains were partly offset by decreased sales at Leeuwpan (-146kt), mainly due to lower offtake by AMSA and Eskom.

Thermal coal: Exports

Despite the challenging export market conditions, export sales grew by 110kt (2%), driven mainly by improved TFR performance and the effective utilisation of alternative distribution channels. Export coal destinations included Japan 25% (FY24: 22%), Other Asia 18% (FY24: 12%), India 29% (FY24: 41%), Africa 17% (FY24: 12%) and Europe 11% (FY24: 13%).

We continued to maintain a premium quality product mix, supported by robust Market-to-Resource optimisation initiatives, which sustained strong price realisation of 96% (FY24: 95%). RB1 accounted for 81% (FY24: 74%) of our product mix, followed by RB2 at 5% (FY24: 11%) and RB3 at 14% (FY24: 11%).

Thermal coal: Tied

Coal production and sales from Matla increased by 728kt (12%) and 711kt (12%), respectively, compared to FY24. The increase in production was primarily due to early coal production from the Matla ramp-up project at Mine 1.

Metallurgical coal: Commercial Waterberg

Grootegeluk's metallurgical coal production decreased by 27kt (1%) in line with lower demand. Sales volumes fell sharply, dropping by 341kt (49%), largely due to reduced offtake of SSCC from AMSA following the shutdown of the Newcastle plant, as well as softer demand in the ferrochrome market.

Coal revenue and EBITDA

Coal revenue increased to R40 109 million (FY24: R39 115 million), mainly driven by higher sales volumes to Eskom from Matla. This was partly offset by lower demand from AMSA and reduced export prices with a stronger Rand to US dollar exchange rate. Our realised average export price decreased by 14% to US$86 per tonne (FY24: US$100 per tonne).

Coal EBITDA increased marginally to R10 251 million (FY24: R10 236 million), reflecting a consistent operating margin of 26% (FY24: 26%). This was mainly driven by:

• Lower operational costs (+R633 million), driven by reduced overburden removal at Belfast and cost savings at Leeuwpan following the Leeuwpan optimisation strategy
• More favourable environmental rehabilitation provision movements (+R228 million), mainly due to lower cost increases and a reduced long-term inflation rate, partially offset by LoM revisions and lower discount rates
• Higher sales volumes (+R357 million)

This increase was partly offset by:

• The impact of the stronger Rand to US dollar exchange rate (-R712 million)
• Cost inflationary pressures (-R475 million)
• Lower overall sales prices (-R438 million)
• Higher employee costs (-R136 million), mainly driven by an increase in headcount to support mining activities

Coal operational costs

In line with our disciplined approach to cost management, we continue to implement targeted initiatives to mitigate cost pressures and protect margins. Coal cash cost per tonne increased 2% to R653 per tonne (FY24: R638 per tonne). In absolute terms, we successfully absorbed inflationary pressures, by delivering on our improvement and efficiency projects with coal production cash costs remaining largely flat at R20.5 billion (FY24: R20.4 billion).

Coal capital and projects

Sustaining capex in the coal business increased by R186 million (9%) in FY25, as a result of the capitalisation of the double benching mining at Belfast.

Cennergi's assets generated 703GWh of electricity for FY25 (FY24: 725GWh). Although the average plant availability of 98% exceeded the contracted levels of 97%, wind conditions were weaker than in the prior year. As a result, revenue remained largely unchanged at R1 410 million (FY24: R1 411 million).

Despite lower electricity generation, operational EBITDA margins on the operating wind assets remained robust at 79% (FY24: 80%), supported by the long-term offtake agreements with Eskom and contributed to energy EBITDA of R859 million (FY24: R1 031 million).

The 68MW Lephalale solar plant construction was materially completed in November 2025, with commissioning in December 2025. The plant achieved full-capacity operation in late December 2025 and commenced supplying green electricity to Grootegeluk, with 4GWh supplied. The remaining steps to commercial operation relate mainly to completing the grid code compliance testing and associated regulatory processes, which are under way. Full commercial operation is expected in 1H26, while the facility continues to supply green electricity at design capacity to Grootegeluk.

Construction on the 140MW Karreebosch project is advancing with commercial operation expected in 1H27.

The project financing for Cennergi's operating wind assets of R3 724 million (FY24: R4 073 million) will be fully settled by 2031. Cumulative project financing for LSP SPV and Karreebosch SPV amounts to R3 967 million (FY24: R1 150 million) and will be fully settled between 2042 and 2046. These facilities have limited recourse to the Exxaro balance sheet and are hedged through interest rate swaps.

Manganese operational cost

The negative EBITDA contribution of R178 million reported for the manganese business relates mainly to the transaction costs incurred in relation to the acquisition of the select manganese assets.

Iron ore equity-accounted investment

Adjusted equity-accounted income from SIOC in FY25 increased to R3 989 million (FY24: R3 383 million), mainly due to higher realised iron ore prices and improved operational stability across the value chain.

In July 2025, Exxaro received an interim dividend of R1 535 million from SIOC. In February 2026, SIOC declared a final dividend of R1 344 million to Exxaro, which will be accounted for in 1H26.

Base metals equity-accounted investment

The adjusted equity-accounted income from Black Mountain increased to R490 million (FY24: R65 million). The increase was driven by higher zinc production and sales volumes resulting from more favourable mining conditions, partially offset by lower commodity prices relative to FY24.

The other segment was re-presented to include the FerroAlloys financial results up to the disposal date of 31 October 2025. The other segment primarily includes costs associated with the corporate office and smaller operations. It incurred R137 million lower EBITDA losses compared to the prior year EBITDA loss of R844 million, mainly as a result of the positive contribution of R77 million by the FerroAlloys operation for the 10-month period, as well as more favourable fair value adjustments on our financial assets portfolio.

The following environmental authorisations were received in FY25:

• The DMPR renewed the Matla Mining Right, marking a key milestone that secures operation continuity and long-term access to the resources base
• The Matla IWUL has been renewed for a 20-year period, providing long-term water security essential for continued operational performance

In addition:

• Mafube has submitted detailed designs for the discard dump lining, incorporating the high-density polyethylene (HDPE) liner required by the Department of Water and Sanitation (DWS) for the water use licence. The licence amendment process is in progress and is expected to be finalised by 1H26
• The amendment process for the Belfast IWUL, intended to align licence conditions with current operational activities, remains in progress and is expected to be finalised in 1H26

No material changes are reported for Exxaro's total or attributable Coal Resources and Coal Reserves for the 2025 reporting year.

Our total attributable Coal Resource increased by ~2%, primarily due to the successful conclusion of on-mine drilling programmes at Grootegeluk, Belfast and Matla. The newly acquired information increased the level of geological confidence, as observed in the movement between the various Coal Resource categories. Material decreases in the Coal Resources are reported at Leeuwpan (11%), mainly as a result of mining depletion and sterilisation of outlined Coal Resource areas after consideration of geotechnical challenges and Reasonable Prospects for Eventual Economic Extraction (RPEEE) considerations.

Our total attributable Coal Reserve decreased by ~2%, primarily due to mining depletion and optimisation of mining plans including revised market assumptions. Material decreases in Coal Reserves are reported at three of our operations. A decrease of 17% at Leeuwpan is primarily as a result of depletion and changes within the Coal Resource base. At Mafube, a decrease of 14% is reported due to mining activities and a review of market assumptions resulting in the exclusion of certain coal seams. A significant increase of 118% at Belfast is due to the successful conclusion of the Belfast life extension (Lifex) feasibility study and subsequent inclusion as Probable Coal Reserves.

For all the other coal operations and projects, other than normal LoM depletion, no material changes to their total or attributable estimates are reported.

Both Coal Resource and Coal Reserve lead Competent Persons are in the full-time employment of Exxaro:

• Henk Lingenfelder (Bachelor of Science: Geology (Honours), Certified Professional Natural Scientist, PrSci Nat: 400038/11) as the Group Head: Geoscience and Exploration (GS&E)
• Chris Ballot (Bachelor of Engineering (Mining), Engineering Council of South Africa (ECSA), 20060040) as the Group Head: Mining

Both persons have approved the information, in writing in advance of this publication.

Economic context

The current year commenced against a backdrop of heightened geopolitical and related risks. Global uncertainty increased meaningfully due to evolving developments in Venezuela, Iran, and Greenland, alongside the continued unpredictability surrounding US trade policy.

Domestically, South Africa recorded modest real GDP growth in FY25, with this positive momentum expected to extend into 2026. Structural reforms across the energy, water, ports, and rail sectors progressed steadily, supported by a strong emphasis on public private partnerships aimed at strengthening public sector infrastructure.

South Africa’s removal from the Financial Action Task Force (FATF) grey list in October 2025, coupled with S&P Global Ratings’ upgrade of the foreign currency sovereign credit rating from BB- to BB in November 2025, while maintaining a positive outlook, represents significant progress toward regaining an investment-grade rating.

Commodity markets and prices

Adequate thermal coal and gas inventories, combined with a milder northern hemisphere winter, limited the typical year end price uplift in FY25. However, reduced nuclear availability in South Korea, cutbacks in Colombia’s thermal coal supply, and the potential for restricted US export availability provided a more supportive backdrop heading into 2026.

Looking ahead, China and India’s increasing focus on domestic coal production, rising renewable energy penetration, and expectations of stronger gas price competition in key markets are likely to shape market dynamics in 2026. While the global transition toward renewables continues to define longer term trends, short term supply constraints, the expansion of electrification, and broader global economic and geopolitical developments will remain important drivers of thermal coal demand and pricing.

The Middle East conflict presents a material risk to global energy security and freight markets. Any prolonged or broader regional destabilisation would disrupt energy security and bulk shipping, tightening global oil and liquefied natural gas (LNG) supply. This would likely increase reliance on alternative fuels, supporting higher thermal coal demand and prices.

Domestically, improved economic activity may stimulate coal demand, particularly as Eskom advances in resolving operational challenges. In spite of TFR’s improving performance, it remains well below RBCT’s port capacity, therefore Exxaro continues to pursue all commercially viable routes to meet customer needs and unlock value.

In the iron ore market, rising supply is returning with the commissioning of the Simandou project, Africa’s largest greenfield integrated mining and infrastructure development in Guinea, together with the subdued demand from China.

Operational performance outlook

Our business is still impacted by commodity prices, domestic structural challenges, coal offtake and both the global and domestic geopolitical environment.

We provide the following guidance for the 2026 financial year:

• Coal production 39.4Mt to 42.8Mt
• Coal sales 39.4Mt to 42.8Mt
• Coal export sales to be between 7.3Mt to 8.0Mt
• Our coal sustaining capital is guided to be within R4 billion and R4.5 billion. The increase is mainly driven by our truck and shovel replacement programme at Grootegeluk mine to maintain production levels, drive operational efficiency and to improve reliability, availability and sustainability.
• With the commissioning of the Lephalale solar plant, as well the forecasted contribution from the Gouda windfarm and Sishen solar plant, our energy generation guidance increases, and we expect it to be within the range of 1 050GWh and 1 150GWh of full year wind and solar energy generation.

Exxaro remains committed to a disciplined approach in determining dividend payouts. In assessing the appropriate dividend cover, we consider prevailing industry conditions, capital expenditure requirements and other strategic commitments, which is especially prudent given the current economic challenges, including the ongoing impact of logistical constraints, lower commodity prices and a stronger Rand to the US dollar exchange rate.

In line with our revised dividend policy, based on a pass‑through of our SIOC dividend and a payout of between 1.5 times and 2.5 times Adjusted Group Earnings, the board has declared a final cash dividend of 1 000 cents per share comprising:

• 1.8 times Adjusted Group Earnings
• Pass‑through of the SIOC dividend of R1.3 billion

Further details of the final dividend are provided in note 5 of the reviewed condensed group financial statements for the year ended 31 December 2025 and will also be published on our website at www.exxaro.com

We put in place a strong management team in an agile functional leadership model and have accelerated the delivery of our diversification strategy with the select manganese assets acquisition as well as adding 353MW to Cennergi’s gross capacity in operation and in construction, resulting in a total capacity of 650MW gross. Alongside these developments, we remain focused on delivering operational improvements and strong financial results despite a stronger rand and weaker export prices.

As the review of our capital allocation framework continues, we are prioritising the reinforcement of a consistent and reliable capital return track record to our shareholders. We remain disciplined in our capital deployment, maintaining a prudent balance sheet with sufficient liquidity and flexibility to sustain and grow our business.

I am pleased with the results we have achieved in FY25 and I would like to acknowledge the commitment and hard work of our employees. The results we have delivered are a direct reflection of the dedication, professionalism and resilience of our people. It is through the efforts of each and every employee that Exxaro continues to deliver for all our stakeholders and position the business for long-term success.

Looking ahead, we are steadfast in our commitment to safe operations and zero harm. We place strong emphasis on employee wellbeing and are dedicated to fostering a culture that enables all our people to thrive.

Our priorities for 2026 are clear: sustain safe and reliable delivery, support improved logistics performance, and execute the integration of our newly acquired assets. At the same time, we will continue advancing key milestones in our energy solutions business, including the financial closure and commissioning activities already under way.

Additional information on financial and operational results for the year ended 31 December 2025, and the accompanying presentation can be accessed on our website at www.exxaro.com

On behalf of the board of directors