About Exxaro

Our purpose: to power better lives in Africa and beyond

Exxaro is among the top five coal producers in South Africa with a diversified commodity portfolio, a quality coal resource base, including the only producing mine in the coal-rich Waterberg region, Grootegeluk, which is acknowledged as one of the largest integrated mining and beneficiation operations globally.

The company is also a constituent of the JSE's Top 40 Index and among the top 30 in the FTSE/JSE Socially Responsible Investment Index.

Coal is the core commodity of our business for now. However, we understand the nature of opportunities in the fossil-fuel sector and changing global imperatives. This understanding has underpinned the determination of our strategic direction as we end this second decade and will define our course into the next decade to 2030.

Strategy for growth and value creation

Understanding our strategic context – matters materially impacting our strategy

Macro-
environment

Business
resilience

Our people

Social license to
operate

Climate change

Our investment proposition

Based on disciplined governance and capital allocation, quality resources, access to funds and competitive returns, Exxaro is a unique listed investment opportunity for shareholders.

Competitive advantages

• Large multi-product 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 and debt-free 30% black ownership structure
• Ongoing cost and carbon efficiency programmes

Key financial strengths

• Strong balance sheet – 13% net debt:equity
• Cash-generative operations
• Returning cash to shareholders: dividend policy of 2.5 to 3.5x coal core attributable earnings, pass-through of SIOC dividend received and special dividends from surplus cash

Growth
prospects

• Organic coal production growth to supply domestic markets, Eskom and export markets
• Domestic and offshore coal revenue growth, completing 57.2% of the R20 billion capex programme
• Stable revenue model from renewable energy investment

Leadership
and
governance

• Experienced, growth-oriented leadership team
• Established governance structures
  – proven and leading ESG performance
• Ethical leadership
• Stakeholder-oriented

Our governance structures

Exxaro recognises that achievement of our strategic objectives – to create value for our stakeholders – depends on effective and efficient governance processes and practices informed by the pillars of good corporate citizenship: transparency, accountability and integrity.

Our investment proposition