Exxaro's half-year profits soar 13% with dividend increase
Exxaro's posted headline earnings per share of R17.24 in the six months to June 30, compared to R15.28 during the same period last year.
The company declared an interim dividend of R8.43 per share, an increase of 6% on last year's interim payout.
Exxaro closed the half-year with a R12.4bn cash pile.
Following this, it is now considering boosting shareholder returns once it completes a deal announced in May to buy manganese assets, as it will no longer require a big cash buffer to fund acquisitions, its CEO said.
The company said on May 13 it had reached an agreement to acquire manganese mines held by Ntsimbintle Holdings and OM Holdings in South Africa as part of its strategy to diversify away from coal into minerals vital for the global shift to cleaner energy technologies.
CEO Ben Magara said the final transaction price is expected to range between R9bn and R14.64bn, depending on the extent to which minority shareholders exercise their pre‑emptive and tag‑along rights.
Following the manganese deal, he said Exxaro would no longer require a R12bn to R15bn cash buffer it had maintained to fund acquisitions.
"So we are now reviewing our capital allocation framework to enhance shareholder returns, post the manganese transaction," Magara told Reuters.
Finance director Riaan Koppeschaar said higher dividends were among the options to be considered.
"We still need to wait for the manganese transaction, the final numbers, before we can take final decisions on that," Koppeschaar said during a results call.
Exxaro expects to conclude the transaction during the first quarter of 2026.
While the miner was still exploring other critical metal asset acquisitions, it did not expect to pursue transactions as big as the manganese deal, Magara added.