Exxaro Resources has reported a sharp decline in profits, with headline earnings falling 36% for the year ending December 2024. The decrease was largely attributed to escalating logistics costs, which surged by R1.55 billion as the company grappled with rising distribution expenses. Despite a 5% increase in revenue to R40.7 billion, net operating profit dropped 28% to R10.6 billion. The company’s overall coal production declined by 7%, reaching 39.5 million tonnes due to reduced demand from Eskom. However, export sales showed a notable 37% rise, climbing to 7 million tonnes. This was largely due to improved performance from Transnet Freight Rail and the company’s efforts to secure alternative distribution channels.
In response to the challenging financial year, Exxaro declared a final dividend of R8.66, marking a 14% reduction. Meanwhile, the company announced plans to initiate a R1.2 billion share repurchase programme, subject to market conditions. The company’s Belfast mine recorded a positive outcome, with production improving by 21% to 3.5 million tonnes, providing some relief amid the broader decline in volumes.
Adding to the changes at Exxaro, Ben Magara has been appointed as the new CEO, effective 1 April 2025. Magara brings extensive industry experience, having previously served as CEO of Lonmin, where he played a key role in stabilising the company following the Marikana tragedy. With over 35 years in the mining sector, Magara has also led Africa Mining & Metals Group, a business focused on battery and precious metals. Additionally, he has worked in the DRC’s copperbelt region and remains an independent non-executive director at Weir Plc, though he will step down from Grindrod’s board in April.
Exxaro’s leadership expressed confidence in their ability to improve operational performance in 2025. Despite a difficult year, they remain committed to driving growth through strategic decisions and ongoing focus on operational efficiency. The company hopes to stabilise its performance under Magara’s leadership while addressing ongoing cost pressures.