Miningweb: Exxaro reveals R18bn war chest, accelerates pivots as coal cools

Key topics:Exxaro builds R18bn cash base to fund renewables and manganese pivotCoal earnings dip as prices fall, logistics improve unevenly across regionsMajor clean-energy acquisitions boost long-term revenue through Eskom PPAs.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.In a pre-close message released today, Exxaro Resources painted a picture of a company aggressively reshaping its future while managing the realities of a cooling coal market. The diversified miner, reporting on its financial year to end December 2025 revealed a massive R18 billion net cash position (around a third of the current market cap) and significant strides in its transition toward renewable energy and critical minerals.Finance Director Riaan Koppeschaar’s update comes at a pivotal moment. While the group’s traditional coal engine faces lower export prices and logistical headwinds, its balance sheet remains fortress-strong and is funding a rapid expansion into wind, solar, and manganese..The Green acquisition spree.The headline news for investors focused on growth is the expansion of Exxaro’s energy subsidiary, Cennergi. The group has entered binding agreements to acquire majority interests in two fully operational assets from Spanish group Acciona Energía:The 138MW Gouda Wind Farm (Western Cape)The 75MW Sishen Solar Facility (Northern Cape)With a purchase price estimated between R1.7 billion and R1.8 billion, this move secures long-term revenue streams via Power Purchase Agreements (PPAs) with Eskom that run into the mid-2030s.The coal miner is also finalising its entry into manganese. Exxaro confirmed that the majority of suspensive conditions for acquiring assets from Ntsimbintle Holdings have been met, including competition authority approval. This marks a critical step toward diversifying the portfolio away from reliance on fossil fuels..Coal: Prices down, logistics mixed.The traditional coal business, while still a cash generator, is operating in a tougher environment than in 2024. Exxaro flagged a sharp decline in export prices..Despite the price drop, Exxaro’s export volumes remain resilient, expected to land between 6.5Mt and 7.2Mt.On the logistics front, the report offered a glimmer of hope regarding Transnet Freight Rail (TFR). The Richards Bay corridor showed improved operational execution with fewer disruptions in 2025. However, the Waterberg region—crucial for Exxaro’s massive Grootegeluk mine—remains a logistical bottleneck, with performance described as "challenging.".The "Trump effect" and macro headwinds.In a notable inclusion for a financial update, Exxaro explicitly referenced the geopolitical impact of US President Donald Trump’s policies since taking office in January 2025. The group noted that cycles of escalation in trade and foreign relations have "dampened global investor sentiment" and heightened financial market volatility.However, the domestic outlook appears brighter. The report highlighted South Africa’s economic strengthening in Q2 2025 and the removal from the FATF grey list, alongside a sovereign credit rating upgrade by S&P Global to 'BB'..Operational excellence and capital returns.Despite external pressures, Exxaro’s operational discipline shines through:Safety: The group has achieved 38 consecutive months without a fatality.Buybacks: A share repurchase programme was completed in October 2025, buying back 2.12% of issued share capital (approx. 7.4 million shares).Disposals: The group cleaned up its portfolio by selling its entire stake in Exxaro FerroAlloys for R250 million..The bottom line.Exxaro is successfully executing a "harvest and pivot" strategy. It is harvesting cash from its coal assets—managing costs and logistics tightly—while aggressively pivoting capital into energy and manganese.With R18 billion in the bank (excluding energy debt), Exxaro enters 2026 with significant dry powder to navigate global volatility and fund its evolution into a diversified energy transition company.Shareholders can expect the full audited results on 19 March 2026.

Miningweb: Exxaro reveals R18bn war chest, accelerates pivots as coal cools

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