Exxaro triples dividends on the back of sturdy coal sales | Fin24
  • SAA

    The flag carrier has vowed to re-accommodate passengers after it cancelled flights to save cash.

  • Poverty Cycle

    South Africans are struggling to escape poverty due to low levels of social mobility, says the WEF.

  • Slowdown

    The International Monetary Fund has revised SA's growth outlook for 2020 down to just 0.8%.


Exxaro triples dividends on the back of sturdy coal sales

Aug 17 2017 11:19
Yolandi Groenewald
exxaro project

Company Data


Last traded 136
Change 0
% Change 0
Cumulative volume 91374
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Exxaro says BEE deal is ‘appropriate’ amid Mining Charter uncertainty

Eskom at loggerheads with coal mine companies

EFF backs Eskom in black ownership clash with Exxaro

Exxaro shows Eskom finger with new BEE plan - Koko

Eskom questions Exxaro’s reduced BEE shareholding

Exxaro first half profit rises 2% on gains in coal business


Johannesburg - Mining company Exxaro [JSE:EXX] tripled its interim dividends from 90c to R3 despite South Africa's challenging mining environment, the company said on Thursday as it released its results for the six months to end-June.

Net operating profit was up 4% and interim revenue grew by 10% to R10.7bn.

The coal business side of Exxaro delivered a sturdy performance, boosting the miner’s results.

“I’m very proud to report operating margins above 20% in the coal ,” Exxaro finance director Riaan Koppeschaar said at the results presentation.

CEO Mxolisi Mgojo admitted that the last six month had been a difficult period to operate in, with volatility in the market and low economic growth prospects haunting miners. Despite this, Exxaro's aftertax profit more than doubled to R2.7bn from R1.3bn.

It achieved a net operating profit of R2.9bn, up 35% from the last period’s R2.1m. This was mainly driven by increased revenue coupled with a rise of only 1% in operating expenses, Exxaro said.

Mgojo said Exxaro’s positive performance was mainly due to solid results from the coal business as well as higher international commodity prices.

Eskom’s Medupi power plant coming online also helped Exxaro numbers, with the Grootgeluk mine's increased volumes helping to boost its profit.

Nombasa Tsengwa, executive head of coal at Exxaro, pointed out that good coal export prices helped boost Exxaro’s coal business.

The average price per tonne achieved on exports was $65, as opposed to the previous period’s $42. This was offset by the strengthening of the rand to an average of R13.20 to the dollar recorded for the current period ended June 30, as well as lower export and domestic volumes. 

Exxaro said it has a positive outlook for the coal business for the rest of the year, taking into consideration the stable trading conditions in the domestic market as well as stable international coal prices.

But it said it expected sales of metallurgical coal to ArcelorMittal to fall in the second half of the financial year.

"Export markets are still reliant on demand from India for lower-quality coal. However, Exxaro is actively diversifying its markets for lower-quality coal in order not be overly dependent on the Indian market," Exxaro stated.

Exxaro shares were down 0.75% at R107.98 on the JSE at around 11:15.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

exxaro  |  earnings reports  |  mining


Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote