Exxaro has cut down on dividends declared in the half year to June 2026 as lower contributions from its iron ore investments, Sishen Iron Ore Company (SIOC) and Black Mountain, weighed on earnings.
SIOC is an iron ore producer in which Exxaro holds a minority stake. It is majority-owned by Kumba Iron Ore and operates the Sishen mine, while Black Mountain is a base-metals mining operation producing zinc, lead and copper.
Headline earnings per share (HEPS) for the period decreased by 20% to R13.77 and this was the main drag on the mining company’s performance during the period.
This resulted in a 14% cut in dividends during the period, declaring dividends of 700 cents per share compared to 843 cents per share in the comparative period.
Ben Magara, Exxaro CEO, said the dividend is in line with the group’s revised dividend policy, which aims to return between 1.5 and 2.5 times adjusted group earnings to shareholders, together with a 100% pass-through of dividends received from SIOC.
READ: Exxaro in CCMA battle with ex-employee who raised procurement red flags
The harsh impact from the two companies was partly cushioned by the newly acquired investment in Tshipi – its manganese business, that has been included for the first time in the results for the final four months.
The manganese business is expected to become an increasingly important contributor to the group as Exxaro seeks to broaden its earnings base.
Despite the challenges, the mine reported R22.1-billion in revenue, up 7%, supported by coal production sales.
The group opened doors to New Mine 1 at Matla Coal Mine in Mpumalanga in May as part of a R5-billion project to supply coal to Eskom. Coal production increased by 11% to 21.5-million tonnes (Mt), while total sale increased by 4% to 19.9Mt.
“The first half of 2026 demonstrated the resilience and anti-fragility of our business, with a strong operational performance, cost management and cash generation in a volatile macroeconomic environment and continued inflationary pressures.
“Our diversified portfolio continued to deliver through the cycle, with resilient earnings from our coal,” said Magara.
READ: Coal prices surge as geopolitical tensions reshape energy markets
Export sales increased 15% to 3.9Mt and the group’s coal unit cost increased 4.6% to R681 per tonne, broadly in line with inflation.
Exxaro also increased its renewable energy generation, which rose 12% to 378 gigawatt-hours (GWh), supported by the contribution from the Lephalale Solar Project (LSP).
“We will continue to decarbonise our portfolio today for a sustainable tomorrow, while delivering positive social impact and honouring our commitments to all our stakeholders. As we celebrate 20 years of impact beyond the surface, we remain committed to creating lasting value,” he said.
- Exxaro's headline earnings per share (HEPS) fell by 20% to R13.77 in the half year to June 2026, leading to a 14% reduction in dividends to 700 cents per share.
- Lower earnings were mainly due to decreased contributions from its minority stakes in Sishen Iron Ore Company (SIOC) and Black Mountain mining operations.
- The newly acquired manganese investment in Tshipi was included for the first time in the results for the final four months and is expected to become a key earnings contributor.
- The group reported R22.1 billion in revenue, up 7%, supported by an 11% rise in coal production to 21.5 million tonnes and a 4% increase in total coal sales to 19.9 million tonnes.
- Renewable energy generation increased by 12% to 378 gigawatt-hours, aided by the Lephalale Solar Project, as part of Exxaro's commitment to decarbonisation and sustainability.
Exxaro has cut down on dividends declared in the half year to June 2026 as lower contributions from its iron ore investments,
SIOC is an iron ore producer in which Exxaro holds a minority stake. It is majority-owned by
Ben Magara, Exxaro CEO, said the dividend is in line with the group’s revised dividend policy, which aims to return between 1.5 and 2.5 times adjusted group earnings to shareholders, together with a 100% pass-through of dividends received from SIOC.
READ: Exxaro in CCMA battle with ex-employee who raised procurement red flags
Despite the challenges, the mine reported R22.1-billion in revenue, up 7%, supported by coal production sales.
“
“Our diversified portfolio continued to deliver through the cycle, with resilient earnings from our coal,” said Magara.
READ: Coal prices surge as geopolitical tensions reshape energy markets
Export sales increased 15% to 3.9Mt and the group’s coal unit cost increased 4.6% to R681 per tonne, broadly in line with inflation.
Exxaro also increased its renewable energy generation, which rose 12% to 378 gigawatt-hours (GWh), supported by the contribution from the Lephalale Solar Project (LSP).
“We will continue to decarbonise our portfolio today for a sustainable tomorrow, while delivering positive social impact and honouring our commitments to all our stakeholders. As we celebrate 20 years of impact beyond the surface, we remain committed to creating lasting value,” he said.
