It was an honour to step into the role of acting CEO at this pivotal moment for Exxaro. I am confident in our solid foundation – a resilient strategy, dedicated workforce, and unwavering commitment to sustainable growth and value creation.
I welcome our new CEO, Ben Magara – a capable and experienced leader – who is well positioned to take Exxaro into our next phase of growth and impact. This transition will ensure acceleration in the execution of our strategy.
As we shift from transition to execution, our resilient strategy is positioning us to win – creating value that endures and delivering our purpose of powering better lives in Africa and beyond.
At the centre of our resilience is our people. Their dedication, adaptability and professionalism continue to drive our success – from ensuring operational excellence and safety, to building trust through meaningful stakeholder engagement. In a year marked by uncertainty, their efforts were extraordinary. As stated in the chairman's statement, we are proud to have achieved 28 consecutive months without work-related fatalities and reduced our LTIFR to 0.06 from 0.07 per 200 000 man-hours worked for the previous financial year ended 31 December 2023 – a testament to our steadfast commitment to zero harm.
Coal production volumes decreased by 7% to 39.5Mt (2023: 42.3Mt), largely driven by lower Eskom demand at Grootegeluk. Belfast mine, however, improved production by 21%, demonstrating our ability to optimise performance across the portfolio. Export sales volumes saw a 37% increase, reflecting proactive efforts to leverage alternative distribution channels and improve market access.
Cennergi's operating wind assets generated 725GWh of electricity in 2024 compared to 727GWh in 2023, with revenue increasing by 5% to R1 411 million (2023: R1 345 million).
Financially, we demonstrated both agility and strength. Group revenue increased by 5% to R40 725 million (2023: R38 698 million), with coal revenue increasing by 6% to R39 115 million (2023: R36 945 million). While EBITDA decreased by 22% to R10 423 million (2023: R13 399 million), mainly due to the 16% decrease in coal EBITDA, our net cash position (excluding energy's net debt) improved by 10%, underscoring strong capital discipline and operational resilience. Income from our equity-accounted investments decreased by 39% to R4 270 million (2023: R6 987 million). This was mainly driven by SIOC's equity income which reduced significantly due to lower iron ore prices and lower sales volumes.
Total capital expenditure (capex) decreased by 8% to R2 475 million (2023: R2 699 million). The capex for 2024 comprised R2 146 million, mainly for coal sustaining capital, R302 million expansion capital for our energy projects and R27 million spent on intangible assets.
For detailed financial performance, see financial capital
Our Sustainable Growth and Impact strategy remains our guiding framework, underpinned by five strategic objectives. Together, these objectives position Exxaro to win – delivering future-ready growth while achieving our purpose.
For more on our objectives and related outcomes, see our Sustainable Growth and Impact strategy.
Our diversification strategy, aligned with our vision of resources powering a clean world, continues to gain momentum. A significant milestone in our decarbonisation journey and diversification strategy was reached when Cennergi, in partnership with G7 Renewable Energies Proprietary Limited, achieved financial close on the 140MW Karreebosch project on 17 February 2025. This landmark project has secured a 20 - year power purchase agreement with Northam Platinum Limited. Cennergi acquired 80% of the share capital in Karreebosch as well as 50% of the share capital in Karreebosch Asset Management Proprietary Limited. The total project cost is estimated to be R4.7 billion, which will, in majority, be funded with project financing with a financial structure design to ensure long-term sustainability with limited recourse to the Exxaro balance sheet.
With Karreebosch now part of our portfolio, Cennergi's gross capacity increases to 437MW, with the business firmly on track to reach its ambition of managing 1.6GW by 2030. These developments reinforce our role in supporting South Africa and the world's transition to a low - carbon economy and establishing Cennergi as a leading energy solutions business. Our coal business continues to play a central role in supporting energy security, while creating the platform for responsible growth. As we advance, diversification into energy transition minerals remains a strategic priority. We are actively evaluating and advancing potential acquisition targets that meet our investment criteria, supported by strengthened capabilities across the mergers and acquisitions lifecycle. These efforts position us to unlock new value streams, reinforce our role in the energy transition minerals space, and support the global shift to clean energy.
Our people's skills, resilience and commitment enable us to execute our strategy and drive meaningful change across the business and in society as we work towards an impactful transition. In 2024, we deepened our investment in our workforce through over R400 million spend on comprehensive training programmes, leadership development initiatives and opportunities for continuous learning. We again received recognition as a top employer in 2025, reaffirming our leadership in diversity, equity, inclusion and people-centred strategy. Employment equity remains a cornerstone of our transformation agenda, with women making up 36% of senior management and historically disadvantaged individuals comprising 76%.
Our people-first approach includes a relentless focus on safety, underpinned by innovation and leadership engagement. Our AI-powered solution, XXoro, enhances access to critical safety and related policies, while our iNNOVAXXION strategy drives continuous improvement and future-fit thinking across the group. These efforts were reinforced through executive engagement at the CEO safety summit and leadership safety day, strengthening our collective commitment to Khetha Ukuphepha (choose safety).
Empowering our people is only one part of our broader ambition to enable an inclusive and sustainable transition. With the board's approval of the decarbonisation roadmap, our focus now shifts to operationalising this framework — embedding its targets into our day-to-day operations and long-term planning.
Transitioning into a low-carbon business and climate change mitigation
Together, these efforts reflect our commitment to an impactful transition — one that balances climate resilience with socioeconomic inclusion, safeguards the environment, and delivers enduring value for future generations
Positioning Exxaro to win means delivering meaningful, inclusive growth and ensuring that all stakeholders benefit from the transition to a low-carbon, sustainable economy. We are executing a resilient strategy with discipline and purpose, balancing short-term performance and long-term value creation. Our priorities include maximising the value of our portfolio through continued efficiency and optimisation while accelerating investments in renewable energy to support a low-carbon future. We are actively exploring opportunities in energy transition minerals – resources critical to powering a clean world – and remain committed to capital discipline to ensure ongoing financial resilience. At the same time, we continue to deepen our engagement with stakeholders and embed ESG principles across our operations, ensuring that our growth is inclusive, responsible and future-ready.
Our ability to navigate challenges while progressing towards long-term strategic goals is a testament to the strength of our people, portfolio and purpose. Together, we are building a legacy of resilience, impact, and shared value – positioning Exxaro to win today and into the future.
I extend my sincere appreciation to the Exxaro board, leadership team, and our dedicated employees for their unwavering commitment to our purpose. Our achievements are a testament to the collective effort of a team that consistently delivers results.
To our shareholders, partners, and stakeholders, thank you for your continued trust and support. Your confidence in Exxaro fuels our ambition to create sustainable impact and drive long-term value for you and our host communities.
| * | At the time of writing, Riaan Koppeschaar was serving as acting CEO and FD. Ben Magara’s appointment was effective from 1 April 2025, ahead of the publication of this report on 15 April 2025. |
Riaan Koppeschaar
Acting CEO and FD
31 March 2025
Ben Magara
CEO, effective 1 April 2025
“I would like to thank the chairman and board for giving me the opportunity to lead this great company called Exxaro. ”
I also thank my predecessors, Dr Con Fauconnier, Sipho Nkosi, Mxolisi Mgojo, Dr Nombasa Tsengwa, and specifically highlight Riaan Koppeschaar for holding the fort as acting CEO these past few months.
As I take the helm, my first priority is safety – working with the management team and our employees to ensure we all go home safe and unharmed every day. Safety is a state of mind and working safely is a condition of employment.
I aim to proactively engage all our stakeholders – our employees, unions, customers, shareholders, the market, regulators, government and other partners – to listen, learn and formulate a way forward for Exxaro. Our company cannot survive as an island. We therefore need to take our stakeholders along to enable us to deliver on our vision.
Lastly, I am excited to have the opportunity to utilise our strong coal resources as a base from which to prudently accelerate our asset portfolio to include energy transition minerals and to grow our energy solutions business, Cennergi. I believe this strategy will allow us to deliver enhanced value to shareholders and all our stakeholders while balancing enduring profitability with environmental and social sustainability and working towards carbon neutrality by 2050.
Our people remain the cornerstone for which all of this can be achieved. As Exxaro's new CEO, I am committed to fostering a culture of leadership excellence throughout our Exxaro. It is about creating an environment where each of us feels valued, motivated and equipped to excel.
Together, we will deliver on our strategy while fostering a culture of excellence, inclusivity and accountability.
IR