Exxaro Resources (EXX) Trading Update summary

Safety and Operational Performance

• Achieved 38 consecutive months without work-related fatalities and maintained a low lost-time injury frequency rate of 0.05 as of October 2025, within set thresholds.

• Coal production and thermal sales are in line with guidance, with a 2% increase in thermal sales driven by a 30% rise in domestic sales and higher output from Matla mine; total coal product and sales volumes expected within 38.9Mt to 42.8Mt guidance.

• Metallurgical coal sales are 49% lower due to weaker demand from the steel and metals industry.

• Wind generation output is lower year-on-year due to less favorable wind conditions, with Cennergi electricity generation forecast at 695GWh, down 4%.

• Operational availability remains strong, forecasted above the 97% threshold.

Financial and Market Environment

• Coal and iron ore prices are forecasted lower at $89/ton and $100/dmt, respectively, compared to the previous year.

• Results are impacted by ongoing logistical constraints and variable Eskom offtake.

• Capital expenditure for coal business in FYE25 expected to be 7% higher than FY24, mainly for equipment replacement and mine expansion projects, within R2.1–2.3 billion guidance.

• Cash balance at end-October stands at ZAR 18 billion, with a provisional tax payment of ZAR 1.3–1.4 billion due in December; net cash balance excludes energy net debt.

• Completed a share repurchase program, buying back 7.3 million shares (2.12% of issued capital).

Strategic Transactions and Growth Initiatives

• Successfully divested the ferroalloy business to a BEE consortium for R250 million, meeting transformation and strategic goals.

• Progressed on the manganese asset acquisition, securing all competition and ministerial approvals, with closing targeted for Q1.

• Acquired majority stakes in Gouda Wind Farm (138 MW) and Sishen Solar Farm (75 MW), plus an 80% stake in the O&M company, for ZAR 1.7–1.8 billion.

• These renewable assets add 117 MW net to the portfolio, bringing total operational and construction capacity to about 500 MW.

• Progress on decarbonisation roadmap, aiming for 40% emissions reduction by 2030 and carbon neutrality by 2050.