Exxaro Resources Limited
Integrated report for the year ended 31 December 2025
Our business model outlines the capitals needed for becoming a diversified natural resources champion in Africa and beyond, with our activities transforming inputs into value.
Our business model does not operate in isolation. It impacts and is impacted by our:
Our capital trade-offs are unpacked on availability, quality and affordability of capitals.
The resources and relationships we rely on
Our inputs
Our constraints
Strategic response
The natural resources we rely on to run our business and create our products
Our constraints
Water scarcity: We operate in water-stressed areas, limiting reliable access to water. This resource is essential for mining and processing
Strategic response
Our constraints
Finite coal resources: Coal reserves are finite, contributing to a global shift towards less carbon-intense energy alternatives
Strategic response
Our constraints
Climate change impacts: Coal’s climate impact and related risks affect operational resilience
Strategic response
The people who manage our business and perform our operational activities
Our constraints
Critical skills shortages: Demand for future-ready skills is rising, driven by a global focus on the energy transition. We compete for talent with international markets and currencies
Strategic response
Our constraints
Workplace hazards: Mining is an inherently high-risk environment, requiring intensive focus to ensure zero harm
Strategic response
Our constraints
Historic underrepresentation of key groups: Ongoing efforts are required to increase the representation of women, youth and people with disabilities
Strategic response
The relationships that support our social licence to operate
Our constraints
Stakeholder concerns: Growing negative sentiment towards fossil fuels, along with higher expectations for businesses to address social issues, challenge our social licence to operate
Strategic response
Our constraints
Reputational risk: Relying on contractors and suppliers carries the risk of reputational damage through nonadherence to our values or standards
Strategic response
The physical mining, energy and property assets that enable us to deliver our products
Our constraints
Ageing physical infrastructure: Ageing infrastructure at key physical assets requires capital-intensive upgrades to maintain operational efficiency
Strategic response
Our constraints
Fast pace of technological change: It is imperative to invest in advanced technologies and renewable energy projects to meet evolving environmental standards and strengthen operational resilience
Strategic response
The unique combination of knowledge, experience, innovation and systems that set us apart
Our constraints
Technological competition: Remaining competitive in a fast-evolving industry requires continuous investment in skills, knowledge and digital transformation
Strategic response
Our constraints
Balancing innovation with operational needs: Effective use of intellectual capital requires balancing investments in emerging technologies with the operational demands of today
Strategic response
The financial assets that enable us to deliver on our strategy
Our constraints
Revenue volatility: Fluctuating commodity prices create revenue uncertainty, potentially impacting our ability to fund operations and strategic initiatives
Strategic response
Our constraints
Rising operational costs: Increasing costs challenge our financial capacity to maintain profitability while investing in essential growth and sustainability projects
Strategic response
Our constraints
Multiple strategic demands: Apportioning financial resources between sustaining coal operations and new opportunities, particularly in energy transition metals, requires careful prioritisation of short-term stability and long-term transformation
Strategic response
What we do
Our business activities strengthen our resilience and ensure we deliver sustainable value through a robust portfolio in a low-carbon economy.
(own use and grid supply)
What we produce
Our mining operations extract essential
natural resources, reducing natural capital
and impacting the environment. Through
dedicated environmental stewardship, we
implement best practices and robust
mitigation strategies to manage and
minimise these impacts while creating
value for stakeholders.
Carbon intensity: 14% increase (2024: 6.36% decrease)
Water intensity: 1.9% increase (2024: 35% increase)
Environmental incidents: zero level 2 and 3 incidents (2024: zero level 2 and 3)
Valid mining rights: 100% (2024: 100%)
To enhance our human capital, we offer
an attractive employee value proposition
and invest in skills development. We extend
this commitment to future talent and the
communities supporting our operations.
Our LTIFR improved to 0.04 from 0.06
in 2024, although high-potential incidents
(HPIs) increased. We maintained three
consecutive fatality-free years. However,
as our goal is zero harm, any injuries or
incidents fall short of our ambition,
underscoring the importance of continued
focus to fully eliminate harm.
Fatalities: None (2024: none)
LTIFR: 0.04 (2024: 0.06)
Occupational health incident frequency rate: 0.22 (2024: 0.14)
Scarce skills retention: 3.7% (2024: 3.6%)
Safety stoppage directives: one section 54(1)(b) (2024: zero stoppages)
We deliver value to our host
communities through our impact-at-scale
initiatives, SLP commitments, commitment
to the UNGC principles and active
stakeholder engagements. We also
encourage participation by black-owned
suppliers.
We are mindful of our mining activities’
impacts on local communities. We
prioritise responsible mine transitions that
support sustainable and resilient host
mining communities now and beyond the
life of our mines.
Community members who benefited from our CSI and SLPs: 64 694 people (2024: more than 71 000)
Jobs created through SLPs: 139 (2024: 51)
Community incidents: four (2024: four)
Top-quartile mining performer in ESG governance structure ESG analyst rating: 3.9 (2024: 4.0)
BEE level: level 2 (2024: level 2)
| Impact on value | Net value increase |
Net value preservation |
Net value erosion |
| Year-on-year change | Positive increase |
Unchanged |
Positive decrease |
| Negative increase |
Negative decrease |
We invest in quality assets to meet
changing market demands, particularly through an expanded investment in green energy.
Our market-to-resource optimisation strategy enables us to fulfil
customers’ requirements and respond to an evolving market.
Marginal timeline overruns in mega-projects
Implementation cost for mega-projects on target
The LSP is delivering green electrons ahead of full commercial operation
Construction of the Karreebosch windfarm commenced
Manganese acquisition concluded in early 2026 and one renewable energy acquisition in progress
We grow our intellectual capital by
enhancing our competencies in mining and energy, focusing on business resilience and advancing innovation, digital transformation and technology.
Our collective knowledge, skills and
resources positively impact human, social and relationship and manufactured capitals.
Improved core system availability reflects increased intellectual capital.
Investments in digital technology support value chain efficiencies and increased employee safety.
Core system availability: 99.82% (2024: 99.68%)
With a robust balance sheet and a
thriving coal business, we strategically
focus on core strengths and a leadership
dedicated to carbon resilience to drive
financial value creation.
Long-term strategic investments
underscore our commitment to bolstering
strategy, enhancing efficiency, expanding
operations and optimising value. This
ensures a resilient financial position
despite year-on-year variations in
financial metrics.
EBITDA margin: 24% (2024: 26%)
ROCE: 22% (2024: 23%)
HEPS: 3 247 cents per share (2024: 3 016 cents per share)
Market capitalisation: R61.20 billion (2024: R55.17 billion)
| * | Restated due to audit adjustments. |
| ** | Restated due to the definition of land rehabilitated changing in a new management standard in 2025. |
| *** | Restated due to error in capturing data in 2024 IR. |