Business overview For the six-month period ended 30 June 2026

The group delivered a strong 1H26 performance, driven by disciplined strategy execution, operational excellence and underpinned by our commitment to achieve Zero Harm, despite heightened geopolitical tensions, increasing inflationary pressures and broader macro-economic headwinds.

We are pleased to report that the group closed 1H26 with the best safety performance since listing in 2006, with our LTIFR improving year-on-year by 60% to 0.02 per 200 000 worker-hours worked. As at 15 August 2026, we recorded zero work-related fatalities, marking four consecutive years without a fatality. The ongoing implementation of our One Voice Safety strategy and the commitment of all 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.

Operationally, the group delivered a strong performance, while our diversified and defensive portfolio continued to support resilient earnings and cash generation despite inflationary pressures. Coal production increased 11% to 21.5Mt, strengthened by improved output at Grootegeluk and exceptional ramp-up at Matla. Coal sales increased 4% to 19.9Mt, driven by higher Eskom offtake at Matla and stronger export volumes. Export coal sales rose 15% to 3.9Mt, supported by improved TFR performance and effective use of alternative logistics channels. We achieved a 91% price realisation against the average API4 benchmark of US$106 per tonne, despite volatile market conditions. Our total cash cost per tonne increased by 4.6%, broadly aligned with inflation despite higher fuel costs. Overall, these factors drove a 5% increase in coal EBITDA to R5 804 million, while maintaining a strong EBITDA margin of 27% (1H25: 28%).

Our renewable energy business continued to scale, with energy generation increasing by 12% to 378GWh, driven by LSP’s contribution, which reached COD in April 2026, delivering 66GWh of solar power during the reporting period. LSP’s contribution is already delivering measurable decarbonisation benefits, reducing Grootegeluk’s reliance on the grid by 30% and achieving a 22% reduction in Scope 2 emissions year-to-date. Renewable energy’s Operational EBITDA increased by 2% to R548 million, maintaining a high margin of 79% (1H25: 80%).

Our metals portfolio reached a significant milestone during the period, with a four-month contribution from our manganese assets further enhancing the diversification of our earnings base. Excluding day-one and other non-recurring cost impacts, the assets delivered a positive earnings contribution over the four months in Exxaro’s portfolio through both equity-accounted income and EBITDA from our 100% owned manganese entities.

Overall group financial performance remained resilient, with group revenue increasing 7% to R22.1 billion, primarily driven by our coal and energy businesses. EBITDA remained essentially flat at R5.6 billion, despite day-one and once-off costs relating to the select manganese assets acquisition, reflecting disciplined cost management, strong operational delivery and the defensive nature of our portfolio.

Cash generation remained robust at R6.1 billion, up 15%, enabling Exxaro to fund sustaining capital, energy expansion capital and dividends. However, headline earnings decreased by 24% to R3.2 billion, largely due to lower equity-accounted income from SIOC and Black Mountain. This was partially offset by the positive contribution from manganese, which contributed to the group earnings for the first time for the last four months of the reporting period.

In line with our previously communicated revised capital allocation framework following the manganese acquisition, the group will no longer maintain the R12 billion to R15 billion cash buffer. Our balance sheet remains strong with a net cash position of R6.4 billion (30 June 2025: R18.3 billion), excluding energy’s net debt.

In line with the new dividend policy of returning between 1.5 times to 2.5 times Adjusted Group Earnings and a 100% SIOC dividend pass-through to shareholders, we are pleased to advise that the board has approved an interim dividend of 700 cents per share. This is Exxaro’s 47th consecutive dividend since our JSE listing in 2006.

In June 2026 we hosted our Capital Markets Day. This marked an important milestone in articulating Exxaro’s next phase of growth. We re-affirmed our Sustainable Growth and Impact strategy and demonstrated the progress we have made since its launch in 2021.

I am pleased with the progress we have made so far. We have stabilised the business, completed a transformational and long-life manganese acquisition, scaled our renewable energy business and strengthened our balance sheet, while delivering consistent and more shareholder returns and positive social investments and impact.

Through disciplined strategy execution, we are building a diversified natural resources portfolio, with three distinct business pillars namely, coal, future-facing metals and renewable energy. As we accelerate our disciplined strategy execution, our focus is to maximise the value of each pillar, leveraging their combined strength to deliver resilient earnings, sustainable growth and long-term shareholder value, and maintaining positive social impact.

A diversified natural resources portfolio built on three distinct business pillars

Our coal business provides a long life, high quality, cash generative and defensive earnings base with great export optionality. Exxaro holds Coal Resources of more than nine billion tonnes and is the only producer with an established production footprint in the Waterberg coal basin, which hosts more than half of South Africa’s remaining Coal Resources and the country’s next strategic coal production region. Approximately two-thirds of Exxaro’s coal revenue is generated through long-term domestic utility contracts with inflation-linked pricing that is not directly linked to international coal price benchmarks, contributing to making the power stations linked to our operations the lowest cost power generation units in the country. The balance of our Coal Resources provide exposure to the seaborne market through premium-quality export and other domestic coal markets.

The business has steadily delivered returns on capital employed (ROCE) above 20% and an EBITDA margin above 25%, demonstrating the resilience and the quality of the portfolio. Exxaro’s long LoM Coal Resources, established infrastructure, rail access and premium product quality provide the flexibility to pursue value accretive life-extension opportunities and respond to market demand. Rail reforms and sustained corridor performance remain key levers to unlocking the full value of this export optionality, particularly through the Waterberg line of the RBCT Transnet Coal line.

Our renewable energy business is a growing, cash-generative business, providing stable and predictable earnings that are becoming an increasingly material contributor to Exxaro’s diversified earnings base, reducing the carbon intensity of our total group earnings and is in line with the group’s decarbonisation roadmap. Through Cennergi, Exxaro has grown its gross operating capacity to 297MW, with 593MW gross banked, near-term growth pipeline. The group is targeting 1 600MW of net installed capacity by 2030, through a disciplined buy and/or build strategy, that prioritises return led growth and is expected to deliver portfolio equity internal rate of return of approximately 15% over time and Operational EBITDA margins of between 75% and 80%.

The bid-window 2 REIPPP projects (Amakhala and Tsitsikamma) project finance debt will be fully settled between 2030 and 2031, unlocking major cash generation inflection for shareholder returns and future growth.

The acquisition of Acciona Energia’s operating assets, comprising the 138MW Gouda windfarm, 75MW Sishen solar plant, as well as Acciona Energy South Africa O&M Proprietary Limited, which provides operations and maintenance services to both assets, remains subject to ministerial approval and lenders’ consent.

With the closing of the select manganese assets acquisition transaction, our future-facing metals business provides long life, high quality, cash generative, and a scalable business anchored by a globally significant manganese resource. Through our 50.1% interest in the Tshipi mine, Exxaro is among the world’s largest manganese producers, with more than 190 million tonnes of Mineral Resources, approximately 25 years LoM, and a second-quartile industry cost position. Our immediate focus is on integrating and optimising the manganese business to unlock full value, while continuing to benefit from consistent dividend contributions from SIOC. At the same time, we continue to evaluate value-accretive opportunities, to strengthen our future-facing metals business, guided by our clear investment criteria. The group also continues to evaluate options for its non-core 26% equity-interest in Black Mountain.

Together, these three distinct business pillars create a diversified natural resources company that balances resilient cash generation, growth, sustainability, long-term value creation and social impact.

We have a great leadership team and capabilities in place to execute our strategy. Dedicated leadership across our three distinct business pillars, supported by strong functional capabilities, strengthens accountability, enables agile decision making and enhances cross-functional collaboration, positioning Exxaro to accelerate its disciplined strategy execution.

In support of our long-term growth strategy, we also continued to advance a number of strategic initiatives during the period. The signing of the long-term Matla Coal Supply Agreement with Eskom provides certainty and preserves jobs. The successful commissioning and expansion of Mine 1 supports long-term sustainability of the mine. Following the successful commissioning in December 2025, LSP achieved commercial operation on 21 April 2026, supporting electricity cost savings, improved energy intensity and progress towards Exxaro’s decarbonisation targets. The delay in the country’s gas projects requires efforts to sustain energy security and industrial activity, and hence the need to extend our coal supply to Eskom.

We are equally pleased to have maintained our Level 2 B-BBEE contributor status, reinforcing our commitment to transformation, inclusive growth and our social licence to operate.

Underpinning the pillars of our business, is our people, their commitment to safety, ensuring ethical conduct across the value chain, disciplined growth, which all culminate into positive impact beyond the surface. These principles guide how we allocate capital, how we operate our assets and how we deliver sustainable long-term value for all our stakeholders.

Safety

Safety remains our top priority and a collective responsibility throughout the organisation, and we remain committed to achieving Zero Harm. The ongoing implementation of our One Voice Safety strategy is driving a unified approach to safety, ensuring that standards are clear, simple, and consistently applied across all business units.

As at 15 August 2026, we are pleased to report that the group achieved four consecutive years without a work-related fatality. Our LTIFR is 0.02 per 200 000 worker-hours worked, reflecting a 60% improvement compared to the same period last year. This is the lowest LTIFR performance since Exxaro listed in 2006.

People and culture

Creating an environment where our people are empowered to create positive impact is central to the successful execution of our Sustainable Growth and Impact strategy. During the period, we continued to strengthen our culture through the Igniting the Shift to One Exxaro Culture Transformation programme, while investing in leadership capability, succession planning and talent development to continue building a high-performing, inclusive and future-ready workforce.

We are pleased to report that over 82% of senior vacancies during the period were filled with internal talent, demonstrating the effectiveness of Exxaro’s leadership pipeline and talent mobility strategy, doing the best work of our lives safely and together.

Social investment and development

We remain committed to creating lasting value for our employees, communities and the South African economy through meaningful social investment. Creating impact beyond the surface extends beyond our operations.

During the period we invested over R1.4 billion in initiatives in local and preferential procurement spend and funding that supports initiatives across education, welfare, enterprise and supplier development, agricultural development and health, supporting 442 black-owned SMMEs.

Environmental stewardship

Exxaro’s environmental stewardship approach remains anchored in our Sustainable Growth and Impact strategy. We continue to manage our environmental footprint through dedicated programmes focused on air quality, land rehabilitation, biodiversity, water and waste management.

The accelerated execution of mitigation projects and initiatives outlined in our board-approved decarbonisation roadmap, remains a priority.

We continue to assess the impact and contribution of LSP, our first self-generation project to the energy mix. The project has reduced Grootegeluk’s reliance on Eskom power by 30% and delivered a 22% reduction in Scope 2 emissions year-to-date. These positive outcomes advance progress towards our short-term target of reducing Scope 1 and Scope 2 emissions by 40% by 2030, 70% by 2040 and our commitment to carbon neutrality by 2050.

In addition, we are also closely monitoring developments in technology in mining fleet electrification to support our medium-term Scope 1 emissions reductions, while continuing to optimise energy-efficiency programmes across our operations.

Environmental performance

As at 30 June 2026, we recorded zero Level 2 or Level 3 environmental incidents, demonstrating our continued focus and commitment to environmental stewardship and operational excellence.

In March 2026, we secured a critical IWUL for the Belfast life-extension project, a key milestone supporting the mine's future and sustainable operations.

Our carbon intensity for 1H26 decreased by 3% to 4.57tCO2e/kTTM (1H25: 4.69tCO2e/kTTM). Year-to-date performance remains 14% below the FY26 limit of 5.31tCO2e/kTTM, largely driven by the contribution of LSP at Grootegeluk Mine.

Energy intensity decreased by 1% to 30.52GJ/kt (1H25: 30.75GJ/kt). Year-to-date performance remains 11% below the financial year ending 31 December 2026 limit of 34.26GJ/kt.

Total water consumption decreased by 15.8%, primarily due to reduced freshwater intake. Our water recycling ratio improved by 11%, reaching 42% (1H25: 31%). Consequently, water intensity decreased by 22.7% to 137L/tRoM, compared to 1H25.

The first half of 2026 was characterised by a renewed prominence of geopolitical conflicts in shaping the global economic conditions. The escalation of the conflict in Iran contributed to a renewed volatility across energy markets with oil prices increasing sharply and feeding through to higher diesel prices and broader inflationary pressures. This also brought renewed focus on the importance of energy security, resulting in a more pragmatic approach in the role of coal as a reliable and dispatchable energy source. At the same time, we witnessed an improvement in commodity prices, including coal, iron ore and manganese. However, these gains were offset by a stronger rand, which was driven by a weaker US dollar and the improvement in South Africa’s current account.

In South Africa, we are entering local government elections post the national elections and the ushering in of coalition governance in the national assembly. We are encouraged by the improvement in logistics, energy availability and grid stability.

Global economy and commodity prices

Commodity markets were generally supportive during the period. The benchmark API4 RBCT export price averaged US$106 per tonne (FOB) in 1H26, reflecting a 15% increase from US$92 per tonne in 1H25 and from a pre-Middle East conflict low of US$80 per tonne.

The iron ore fines price averaged US$106 per dry metric tonne (CFR China) in 1H26 (1H25: US$100 per dry metric tonne). Iron ore prices have risen since the onset of the Middle East conflict, despite an increase in seaborne iron ore supply and a decline in China’s steel production. This reflects cost-side pressures, as the 2026 CFR cost curve has shifted higher mainly due to rising diesel and freight costs.

The average manganese ore index (37% Mn) averaged US$4.74 per dry metric tonne unit (CIF China) in 1H26 (1H25: US$4.07 per dry metric tonne unit). Seaborne manganese ore prices initially trended upward, supported by higher freight costs that lifted CIF prices. However, during the latter part of 1H26, prices softened as weak demand persisted, and buyers resisted higher prices amid increasing margin pressure.

Against the backdrop of the Middle East conflict, global real GDP growth is expected to slow to 2.2% in 2026 (2025: 2.9%).

Despite ongoing geopolitical tensions, the rand remained relatively resilient, albeit volatile, during 1H26. Supported by a weaker US dollar and an improved South African current account position, the rand averaged R16.41 (1H25: R18.38) to the US dollar.

The elevated brent crude oil price environment, coupled with volatility in the rand, resulted in significantly higher diesel prices during the period under review. The Gauteng wholesale diesel price (0.005% sulphur) averaged R23.55 per litre in 1H26, (1H25: R19.49 per litre), up 21% year-on-year.

Coal markets and commodity price

The first half of 2026 was marked by a rapid shift in market dynamics, driven by supply-side interventions and escalating geopolitical tensions. Indonesia’s production restrictions, combined with conflict in the Middle East, significantly influenced global coal market sentiment and pricing.

In 1Q26, Indonesia introduced export quotas to restrict production volumes, with the strategic objective of tightening global supply and providing support to thermal coal prices following the weaker pricing environment experienced in FY25.

This was followed by the escalation of the conflict in the Middle East, which triggered a sharp increase in oil prices and subsequently drove a bullish trend in the thermal coal markets. The resultant volatility disrupted global energy markets, prompting shifts in trade flows and fuel-switching from Liquefied natural gas (LNG) to thermal coal in certain regions. These market dynamics contributed to the API4 index rising to a 31-month high of US$121 per tonne.

The South African domestic market has not been insulated from global geopolitical and energy supply disruptions. Industrial end-users faced margin compression due to elevated diesel costs, exerting pressure on operating expenses and profitability. In response to mounting inflationary risks, the South African Reserve Bank (SARB) implemented a 25-basis-point increase in the repo rate as a pre-emptive monetary policy measure. Despite these macro-economic headwinds, domestic coal demand has remained relatively resilient, supported by stable offtake performance.

South African electricity demand remains below available supply, reducing the operational requirements of Eskom’s coal-fired power stations and consequently impacting coal offtake. Offtake in the Waterberg was lower due to continued application of Eskom’s cold reserve and merit order protocols as well as operational challenges. In contrast, coal offtake at Matla remains robust, supported by improved coal qualities and stable, sustainable supply from the Matla Mine.

Coal logistics and infrastructure

TFR tipped 30.95Mt at RBCT between January 2026 and June 2026. This is equivalent to an annualised tempo of approximately 59.9Mtpa (FY25: 56.8Mtpa), reflecting a notable 5% year-on-year improvement in performance compared to FY25. This improvement reflects an enhanced and more responsive rail system, despite continued operational constraints.

The Grootegeluk direct rail flow remains a key focus area of the business. As a result, Exxaro continued with multimodal logistic solutions, utilising third-party sidings in Mpumalanga to evacuate coal from Grootegeluk.

Engagements with TFR continue, with several initiatives aimed at addressing these challenges and improving overall corridor performance. Continued collaboration and targeted interventions will be critical to unlock further capacity, improve reliability, and support sustainable volume growth.

Energy market environment

In June 2026, the National Energy Regulator of South African (NERSA) published the third version of its Draft Electricity Trading Rules for a second round of public consultation. The revised rules incorporate stakeholder feedback and include provisions for unavoidable charges, transitional volume limits, and formal wheeling arrangements. Final rules are expected to be gazetted in August 2026.

Renewable energy curtailment has increased significantly in 2026, reflecting lower demand, and growing renewable penetration. Curtailment volumes in 1H26 reportedly exceeded total curtailment volumes for the whole of 2025.

Manganese market environment

WorldSteel reported global crude steel output of 931.5Mt for the first six months of 2026, a decline of 1% compared with the same period in 2025. China, the world’s largest steel producer, recorded crude steel output of 500Mt, down 3% year-on-year, primarily due to the continued weakness in its property sector. Partially offsetting this decline, India’s crude steel output increased by 7.7% to 87Mt, while US crude steel output rose 6.3% to 42.8Mt.

Against the backdrop of softer global steel production, manganese inventories have continued to build, despite margin pressure arising from higher oil prices.

Total manganese ore port stocks in China increased by 33% to 6.0Mt during 1H26, rising from 4.5Mt at the beginning of the year. Chinese silicomanganese (SiMn) inventories remained elevated at approximately 1.4Mt, exceeding desirable inventory levels by more than 50%.

Global manganese ore production increased by 8.2% year-on-year in 1H26 reaching 10.6Mt of contained manganese. South African ore production rose 8.7% to 5.0Mt, while Gabon’s output declined by 5.6% to 1.7Mt. Australian production recorded the strongest growth, increasing by 225% to 1.3Mt.

Road-based manganese ore transportation in South Africa continued to increase, with ore volumes reaching 5.9Mt in 1H26 (1H25: 3.8Mt). Tshipi’s road transport requirements were largely limited to the Lüderitz export route, although intermittent TFR challenges necessitated the use of road transport to alternative ports on occasion.

Semi-carbonate 36.5% CIF manganese ore prices strengthened from US$4.70 per dry metric tonne unit at the start of 2026 to a peak of US$5.32 per dry metric tonne unit, following the escalation of the Middle East conflicts and the US strike on Iran in late June 2026. Prices subsequently softened, with June 2026 ending at US$4.64 per dry metric tonne unit. Much of the price movement was driven by higher freight costs, with shipping rates from Gqeberha to Tianjin increasing from US$24.90 per tonne to a peak of US$40.80 per tonne before easing to US$33.60 per tonne by the end of June 2026. Correspondingly, FOB prices for South African semi-carbonate manganese producers rose from US$3.46 per dry metric tonne unit to a high of US$4.40 per dry metric tonne unit before moderating to US$3.86 per dry metric tonne unit at the end of 1H26.

Comparability of results

To enhance the comparability of performance between reporting periods, we have adjusted earnings for non-recurring items (referred to as non-core adjustments) to report adjusted financial results. These adjustments are consistent with the headline earnings adjustments for both 1H26 and 1H25 (refer note 4 of the condensed group interim financial statements).

 

Group revenue and EBITDA

	Revenue			EBITDA1
R million	1H26	(Re- presented)2 1H25	(Re- presented)2 2H25	1H26	(Re- presented)2 1H25	(Re- presented)2 2H25
Coal	21 333	19 813	20 296	5 804	5 552	4 699
Energy	696	675	735	512	432	427
Metals	145			(252)		(178)
Other3	6	91	161	(478)	(407)	(300)
Elimination4	(52)
Total	22 128	20 579	21 192	5 586	5 577	4 648

1 EBITDA is calculated by adjusting net operating profit before tax with interest, depreciation, amortisation, impairment charges or impairment reversals and net losses or gains on disposal of assets and investments (including translation differences recycled to profit or loss). Refer note 6 for key numbers used in the calculation of EBITDA.

2 Re-presented to align with the change in segment presentation of FY25 to include the FerroAlloys financial results in the other segment and the introduction of a metals reportable segment.

3 Relates mainly to the corporate office, smaller operations and FerroAlloys (refer note 6).

4 Relates to the intergroup elimination of renewable energy sales from LSP to Grootegeluk.

In 1H26, Exxaro delivered a strong performance, despite a challenging operating environment.

Group revenue increased by 8% to R22 128 million (1H25: R20 579 million), primarily driven by the strong performance of the coal business. Coal revenue increased by 8%, contributing the largest share of the group’s revenue growth in 1H26. The revenue growth was further supported by increased revenue from our energy business and the inclusion of four months of revenue from the newly acquired manganese marketing company from Ntsimbintle Holdings, which markets our 50.1% share of the manganese ore of Tshipi.

Group EBITDA remained essentially flat at R5 586 million (1H25: R5 577 million), resulting in an EBITDA margin of 25%, compared with 27% in 1H25. Coal EBITDA increased by 5% to R5 804 million (1H25: R5 552 million). Energy EBITDA increased by 19% to R512 million (1H25: R432 million) due to LSP reaching full commercial operation, additional uplift as a result of the CPI-linked tariff adjustments at the Tsitsikamma and Amakhala windfarms as well as the timing of growth-related costs.

The metals segment reported a negative EBITDA of R252 million, primarily due to costs associated with the acquisition of the select manganese assets, including a day-one fair value adjustment of R179 million related to the investment in Australian Stock Exchange listed Jupiter Mines, and once-off transaction-related costs. This, together with a negative contribution from the other operating segment of R478 million (1H25: R407 million), impacted the group’s overall EBITDA performance. Further details are provided in the segmental performance discussions.

 

Adjusted equity-accounted income

	Adjusted equity-accounted income/(loss)			Dividends received
R million	1H26	1H25	2H25	1H26	1H25	2H25
Coal: Mafube	16	45	21	75		100
Coal: RBCT		(8)	(12)
Metals: SIOC	1 162	1 943	2 046	1 344	1 732	1 535
Metals: Black Mountain	1	289	201
Metals: Tshipi	242			100
Total	1 421	2 269	2 256	1 519	1 732	1 635

Adjusted income from equity-accounted investments decreased to R1 421 million (1H25: R2 269 million). These investments continue to provide Exxaro with meaningful diversification. Further details are provided in the segmental performance discussions.

Group earnings

Headline earnings decreased by 22% to R3 223 million (1H25: R4 154 million), primarily driven by the decrease in adjusted equity-accounted income.

WANOS decreased to 234 million (1H25: 241 million) due to the repurchase and cancellation of shares under the share repurchase programme completed in FY25.

The earnings decrease together with the positive change in WANOS equates to HEPS of 1 377 cents per share (1H25: 1 724 cents per share), a decrease of 20%.

Cash flow, capital expenditure and debt exposure

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 R6 123 million (1H25: R5 305 million). Dividends received from equity-accounted investments amounted to R1 519 million (1H25: R1 732 million), primarily from SIOC. These cash flows were sufficient to fund capital expenditure, taxation, and ordinary dividends.

Total capex increased to R2 286 million (1H25: R1 986 million), comprising:

• R1 422 million (1H25: R872 million) sustaining capital, primarily in the coal business

• R864 million (1H25: R1 114 million) expansion capital, mainly for the construction of the 140MW Karreebosch wind energy project funded through project financing

Exxaro’s balance sheet remains strong and flexible, supported by robust cash generation, operational efficiency and disciplined capital allocation. Following the successful closing of the select manganese assets acquisition transaction, the group’s net cash position (excluding Energy’s net debt) decreased to R6 377 million as at 30 June 2026 (30 June 2025: R18 252 million). Energy’s net debt amounted to R7 788 million (30 June 2025: R5 804 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

	Production			Sales
’000 tonnes	1H26	1H25	2H25	1H26	1H25	2H25
Thermal	19 939	18 261	19 178	19 789	18 874	20 363
Commercial – Waterberg	12 084	11 182	11 962	10 565	10 816	11 611
Commercial – Mpumalanga	3 887	4 148	3 561	1 392	1 715	1 412
Exports				3 886	3 431	3 687
Tied1	3 968	2 931	3 655	3 946	2 912	3 653
Metallurgical	1 514	1 102	1 344	128	251	103
Commercial – Waterberg	1 514	1 102	1 344	128	251	103
Total	21 453	19 363	20 522	19 917	19 125	20 466

1 Matla Mine supplies its entire production to Eskom.

Total coal production volumes increased by 11% to 21 453kt (1H25: 19 363kt), primarily driven by improved production at Matla and Grootegeluk. This increase was partly offset by lower production at Belfast and Mafube.

Total coal sales volumes increased by 792kt (4%) to 19.9Mt (1H25: 19.1Mt), mainly due to higher sales to Eskom from Matla and higher export sales, partially offset by lower sales in the domestic market.

Thermal coal: Commercial Waterberg

At Grootegeluk, production increased by 8% to 12 084kt (1H25: 11 182kt), on the back of a strong operational performance.

Sales volumes decreased by 2% to 10 565kt (1H25: 10 816kt), primarily due to lower offtake from Eskom (197kt) at both power stations during 1H26.

Thermal coal: Commercial Mpumalanga

Coal production from the commercial Mpumalanga mines decreased by 6% to 3 887kt (1H25: 4 148kt), primarily driven by decreased production from Belfast (-113kt) and Mafube (-94kt), as per the approved mine plans.

Domestic coal sales from the commercial Mpumalanga mines decreased by 19% to 1 392kt (1H25: 1 715kt), mainly due to:

• Leeuwpan: -587kt (61%), resulting from the continued execution of its turnaround strategy and product quality optimisation initiatives

• Mafube: -60kt (16%), consistent with production performance

These decreases were partly offset by increased domestic sales at Belfast (+324kt).

Thermal coal: Exports

Export sales increased by 13% to 3 886kt (1H25: 3 431kt), driven mainly by improved TFR performance and the effective utilisation of alternative distribution channels. Export coal destinations included Japan 29% (1H25: 23%), Other Asia 32% (1H25: 19%), India 27% (1H25: 33%), Africa 6% (1H25: 18%) and Europe 6% (1H25: 7%).

Thermal coal: Tied

Coal production and sales from Matla increased by 35% to 3 968kt (1H25: 2 931kt) and 36% to 3 946kt (1H25: 2 912kt), respectively. 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 increased by 37% to 1 514kt (1H25: 1 102kt). Production in 1H25 was adversely impacted by heavy rainfall that caused rail and road washaways, while 1H26 was driven by the ramp-up in production to meet higher export demand.

Sales volumes were lower, decreasing by 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

	Revenue			EBITDA
R million	1H26	1H25	2H25	1H26	1H25	2H25
Commercial – Waterberg	13 105	11 753	11 950	5 793	5 364	4 950
Commercial – Mpumalanga	4 245	4 511	3 873	220	230	(241)
Tied1	3 983	3 549	4 473	93	95	96
Other				(302)	(137)	(106)
Coal	21 333	19 813	20 296	5 804	5 552	4 699

1 Matla Mine supplies its entire production to Eskom.

Coal revenue increased by 8% to R21 333 million (1H25: R19 813 million). The increase was primarily driven by higher prices, export sales volumes and higher Matla volumes to Eskom. This was partly offset by lower demand from AMSA, as well as reduced sales volumes and prices in the other domestic market. Our realised average export price increased 9% to US$96 per tonne (1H25: US$88 per tonne), achieving a price realisation of 91% (1H25: 96%).

Coal EBITDA increased by R252 million (5%) to R5 804 million (1H25: R5 552 million), reflecting an operating margin of 27% (1H25: 28%). This was mainly driven by:

• Higher sales prices (+R1 438 million)

• Lower other operational costs (+R396 million), mainly due to higher stock levels

• Higher sales volumes (+R388 million)

This increase was partly offset by:

• The impact of the stronger rand to US dollar exchange rate (-R555 million)

• Cost inflationary pressures (-R643 million)

• Selling and distribution costs (-R425 million), mainly as a result of higher export volumes and diesel price increase

• Unfavourable environmental rehabilitation provision movements (-R347 million), mainly due to an increase in closure cost estimates for our mines in closure.

Coal operational costs

During 1H26, inflationary pressures driven by elevated diesel prices put pressure on our costs, however, we continue to maintain our cost discipline across the group, through various initiatives including prioritising rail exports directly to RBCT. Coal total cash cost per tonne increased by 4.6% to R681 per tonne (1H25: R651 per tonne). In absolute terms, coal total cash costs increased by 12% to R11 319 million (1H25: R10 073 million), broadly in line with inflation and higher production volumes.

 

Coal capital and projects

R million	1H26	1H25	2H25
Sustaining
Commercial – Waterberg	1 326	761	1 082
Commercial – Mpumalanga	69	105	318
Total coal capex	1 395	866	1 400

Sustaining capex in the coal business increased by R529 million (61%) in 1H26, primarily driven by Grootegeluk in line with the truck and shovel replacement programme.

 

Coal adjusted equity-accounted income

	Adjusted equity-accounted income/(loss)			Dividends received
R million	1H26	1H25	2H25	1H26	1H25	2H25
Mafube	16	45	21	75		100
RBCT		(8)	(12)
Total	16	37	9	75		100

Adjusted equity-accounted income from the Mafube joint venture decreased to R16 million (1H25: R45 million), mainly due to higher diesel prices, maintenance costs as well as a higher stripping ratio. This was partially offset by an increase in sales prices.

Cennergi’s operating portfolio, previously comprised solely of wind assets, has become more diversified following LSP’s achievement of commercial operation during 1H26, adding solar generation capacity to the renewable energy assets.

Electricity generation from operational assets increased to 378GWh in 1H26 (1H25: 337GWh), with revenue increasing by 3% to R696 million (1H25: R675 million).

Cennergi’s operating wind assets generated 312GWh of electricity for 1H26 (1H25: 337GWh). Output was lower than the comparative period due to weaker wind conditions, despite plant availability remaining above the contracted level of 97%.

LSP reached COD on 21 April 2026 and generated 66GWh in 1H26, with plant availability reaching the contracted level of 99%.

The Operational EBITDA margin remained strong at 79% (1H25: 80%), underpinned by the long-term offtake agreements.

Construction of the 140MW Karreebosch wind energy project is progressing, with COD expected in 1H27.

The project financing for Cennergi’s operating assets of R4 748 million (1H25: R5 103 million) will be fully settled between 2030 and 2042. Cumulative project financing for Karreebosch is R3 584 million (1H25: R1 197 million) and will be fully settled by 2046. The project financing has limited recourse to the Exxaro balance sheet and hedged through interest rate swaps.

The acquisition of Acciona Energia’s operating assets, comprising the 138MW Gouda windfarm, 75MW Sishen solar plant, as well as Acciona Energy South Africa O&M Proprietary Limited, which provides operations and maintenance services to both assets, remains subject to ministerial approval and lenders’ consent.

Manganese revenue and EBITDA

Following the completion of the select manganese assets acquisition transaction on 27 February 2026, the manganese marketing business reported positive EBITDA of R29 million for the period from 1 March 2026 to 30 June 2026, attributable to the sales and marketing of Exxaro’s 50.1% share of Tshipi ore. This positive contribution was more than offset by a day-one fair value loss amounting to R179 million recognised on the investment in Jupiter Mines at acquisition date, based on the prevailing share price and AUD exchange rate on the effective date, and once-off transaction-related costs.

Refer note 22 for further details of the accounting for the select manganese assets acquisition transaction. The accounting for the acquisition remains provisional, pending the final determination of the fair values attributable to the identifiable assets acquired and liabilities assumed, as well as the resulting goodwill arising from the transaction.

 

Metals adjusted equity-accounted income

	Adjusted equity-accounted income				Dividends received
R million	1H26	1H25	2H25		1H26	1H25	2H25
SIOC	1 162	1 943	2 046		1 344	1 732	1 535
Black Mountain	1	289	201
Tshipi	242				100
Total	1 405	2 232	2 247		1 444	1 732	1 535

Adjusted equity-accounted income from SIOC in 1H26 decreased to R1 162 million (1H25: R1 943 million). The results were negatively impacted by the strengthening of the rand against the US dollar and above inflationary increases in key mining input costs compared to the prior period, largely reflecting the effects of the conflict in the Middle East.

In February 2026, Exxaro received a final dividend of R1 344 million from SIOC. In July 2026, SIOC declared a final dividend of R688 million to Exxaro, which will be recognised in 2H26.

The adjusted equity-accounted income from Black Mountain decreased to R1 million (1H25: R289 million). The decrease was mainly driven by higher production costs which are expected to moderate in the coming months. In addition, the delayed ramp-up of the Gamsberg-project negatively impacted operational performance.

The acquisition of the Tshipi investment was concluded on 27 February 2026 (refer note 22 for further details of the acquisition transaction). Consequently, the investment’s financial results have been included for the four-month period from 1 March 2026 to 30 June 2026, comprising adjusted equity-accounted income of R242 million. Dividends of R100 million was received.

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 recorded a loss of R478 million, compared to a loss of R407 million in 1H25.

The following environmental authorisations were received in 1H26:

• The DMPR renewed the Matla Mining Right, marking a key milestone that secures operational continuity and long-term access to the resources base

• The Belfast Life Extension IWUL, reinforcing our licence to operate and ensuring the mine's sustainability

In addition to the above:

• The amendment for the Belfast IWUL, intended to align licence conditions with current operational activities, was approved during the first half

• 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 in 2H26

The Resources and Reserves estimation process is in progress, aligned with the annual business plans and strategic LoM plan reviews for the 2026 reporting period.

The Matla Mining Right was renewed on 5 January 2026 for a 19-year term, securing long-term tenure supporting the newly signed long-term Coal Supply Agreement with Eskom.

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.

Operational performance outlook

Despite continued uncertainty in commodity markets, ongoing domestic structural challenges and a volatile geopolitical environment, Exxaro remains well positioned to deliver on its operational objectives. The group maintains its FY26 coal production sales and export guidance and continues to focus on disciplined execution and operational excellence.

• Coal production 39.4Mt to 42.8Mt

• Coal sales 39.4Mt to 42.8Mt

• Coal export sales 7.3Mt to 8.0Mt

During the period, good progress was made on the Grootegeluk truck and shovel replacement programme, with four 220 tonne trucks successfully commissioned, supporting production, operational efficiency and long-term sustainability. Our coal sustaining capital is expected to be within the guided R4 billion and R4.5 billion range.

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.

• Renewable energy generation 800GWh to 830GWh

For the first time, our guidance now incorporates manganese, reflecting the growing contribution of our future-facing metals business pillar and the continued diversification of our portfolio.

• Manganese (100% Tshipi operation) production and sales 3.2Mt to 3.4Mt

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, higher fuel prices, volatile commodity prices and a stronger rand to the US dollar exchange rate.

In line with our new 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 an interim cash dividend of 700 cents per share comprising:

• 1.8 times Adjusted Group Earnings

• Pass-through of the SIOC dividend of R688 million

Further details of the interim dividend are provided in note 5 and will also be published on our website at www.exxaro.com

The first half of 2026 demonstrated the resilience of our business, with a strong operational performance and cash generation in a dynamic macro-economic environment and continued inflationary pressures. Our diversified portfolio is delivering 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, provide the flexibility to sustain our track record of consistent shareholder returns and fund our strategic priorities.

The operating environment remains dynamic. Geopolitical tensions, particularly the ongoing conflict in the Middle East, continue to create uncertainty across commodity and energy markets and have an impact on inflationary pressures. As an emerging risk in South Africa, we are entering a local government election season, while the domestic operating environment continues to show encouraging improvements due to improved logistics and energy availability.

Higher oil and export coal prices present both risks and opportunities for our business, reinforcing the importance of operational excellence, cost discipline and the flexibility of our diversified portfolio.

We therefore reiterate our full-year guidance for coal production, sales, exports and sustaining capital. Renewable energy guidance has been revised downwards due to the weaker wind conditions experienced in the current year.

Long term, we remain focused on accelerating the disciplined execution of our Sustainable Growth and Impact strategy. Our three distinct business pillars of coal, renewable energy and future-facing metals provide a clear pathway for long-term value creation, underpinned by disciplined capital allocation and operational delivery.

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.

Additional information on financial and operational results for the six-month period ended 30 June 2026, and the accompanying presentation can be accessed on our website at www.exxaro.com

On behalf of the board of directors

20 August 2026