Exxaro Resources (EXX) H1 2024 earnings summary

Executive summary

• Maintained two consecutive years of zero fatalities and improved safety metrics, with LTIFR reduced to 0.05.

• EBITDA declined 10.5% to R5.1 billion, with headline earnings per share down 31.7% to 1,528 cents.

• Interim dividend of R7.96 per share declared, with strong cash generation and a group cover ratio of 1.9x.

• Continued progress on decarbonisation, achieving a 12–17.7% reduction in Scope 1 & 2 emissions since 2019 and targeting 40% reduction by 2026.

• Social impact spend exceeded R1 billion, with BBBEE level 2 maintained.

Financial highlights

• Revenue for 1H24 was R19.0 billion, up 1% year-over-year, but EBITDA fell 10.5–34% to R5.1 billion.

• Headline earnings per share dropped 31.7% to 1,528 cents.

• Net cash position at R14.0 billion, with cash generated by operations at R4.8 billion.

• Total capex increased to R1.1 billion, with sustaining capex at R1.06 billion.

• Return on capital employed at 27%.

Outlook and guidance

• Coal production guidance for 2024: 39–43.2 million tons; sales: 38.4–42.4 million tons; exports: 5.7–6.3 million tons.

• Wind energy generation expected at 700–720 GWh for the year.

• Capital expenditure guidance maintained at R2.5–3 billion per annum.

• Cautiously optimistic on incremental improvements in Transnet rail and export logistics.

• Global growth faces headwinds from financial conditions and geopolitical risks.