Exxaro Resources (EXX) investor relations material

Strategic overview and portfolio evolution

• Accelerated execution of a diversified strategy since 2021, focusing on coal, manganese, and renewable energy as core pillars, with operational stability and leadership renewal.

• Coal remains foundational, with long-life assets and export optionality, while manganese and renewables are positioned for significant earnings growth by 2030.

• Diversification strategy aims for energy and future-facing metals to contribute over 50% of group earnings by 2030, reducing carbon intensity.

• Enhanced capital allocation framework, improved dividend policy, and removal of the cash buffer support growth and shareholder returns.

• Consistent dividend track record, with 46 distributions since listing, including specials and buybacks.

Coal business outlook and operational strategy

• Coal provides a defensive, cash-generative base with long-life resources and export optionality.

• Strategic focus on life-of-mine extensions, logistics reforms, and cost competitiveness to sustain earnings and unlock export value.

• Waterberg and Mpumalanga assets offer portfolio flexibility, with Grootegeluk anchoring long-term supply and export potential.

• Sustaining capital peaks in 2026-2027 due to fleet replacement, then normalizes at R4.0–R4.5bn per annum beyond 2027.

• Coal earnings expected to remain flat at 2021 levels, with increased contribution from other pillars.

Metals and manganese strategy

• Established a globally significant manganese platform through acquisitions, including Tshipi Borwa (50.1%), Jupiter Mines (19.99%), and Hotazel Manganese Mines (9%).

• Manganese business is cash generative, with second quartile cost positioning and expansion potential.

• Strategic priorities include integration, governance, logistics partnerships, and margin optimization at Tshipi.

• Copper remains a strategic focus, primarily through early-stage exploration in Southern Africa.

• Portfolio optimization through divestment of non-core assets and responsible asset monetization.