Exxaro Resource limited Report Selector 2018

Report Selector

Exxaro Resources Limited Integrated report 2018

Investment proposition

Based on a well-executed strategy, solid returns, access to funds and quality resources, Exxaro is a unique listed investment opportunity.

Competitive advantages

  • Large multiproduct and long-life coal reserve base
  • Established domestic (short and long-term contracts) and international customer base
  • Adequate port and rail allocation to support export growth
  • Resilient black ownership structure

Key financial strengths

  • Strong balance sheet — net debt:equity of 9%
  • Cash-generative operations
  • Returning cash to shareholders: revised dividend policy of 2.5 to 3.5x coal core attributable earnings, plus pass-through of SIOC dividend received and special dividends from surplus cash

Growth prospects

  • Organic coal production growth to supply export markets and independent power producers
  • Domestic and offshore coal revenue growth (new projects and cost management)
  • New, stable revenue model from renewable energy investment

Leadership and governance

  • Experienced, growth-oriented leadership team
  • Established governance structures — proven economic, social and governance model
  • Ethical leadership
  • Stakeholder-oriented

Our governance structures

Governance philosophy

Exxaro recognises that effective and efficient governance processes and practices are one of the foundational layers to achieve our strategic objectives. Transparency, accountability and integrity, the pillars of good corporate citizenship, permeate everything we do and ultimately deliver value to our shareholders as well as our broader stakeholders, including the communities in which we operate.