FY23: EXXARO RISES ABOVE CHALLENGES TO
DELIVER STAKEHOLDER VALUE
In 2023, Exxaro faced global uncertainties and industry challenges head-on, demonstrating our commitment to driving excellence and delivering value under pressure. Geopolitical tensions, currency volatility, and logistical hurdles impacted operations, while a notable shift in global thermal coal trade flows added complexity, with the lowest Richard’s Bay Coal Terminal (RBCT) coal export levels recorded since 1992 and a decreased demand from Eskom.
Despite these challenges, we continued to prioritise safety and operational excellence. Zero fatalities were recorded, demonstrating our commitment to workforce wellbeing. Operational resilience was evident, with 42.5Mt coal production achieved and a remarkable 97% price realisation, demonstrating adaptability and performance under pressure.
Our renewable energy business is booming, with wind energy delivery reaching 727GWh – an 8.3% increase on the previous year. Our Lephalale Solar project, valued at over R1.6 billion, has commenced construction and is set to provide a 27% reduction in scope 2 emissions on completion in 2025. This diversification underscores our commitment to sustainability and aligning with evolving energy trends.
Financially, we encountered some headwinds, with Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreasing to R13.4 billion and Headline Earnings Per Share (HEPS) to R46.81. However, strategic initiatives, including the Early Value Strategy and Market-to-Resource optimisation
mitigated impacts, reflecting prudent financial management.
Exxaro remained committed to sustainability, investing R1.9 billion in direct social impact. Environmental compliance remained a focal point, with zero level 3 incidents and only one level 2 incident recorded, highlighting our dedication to responsible stewardship of resources.
“These results are a testament to our persistence, resilience and hard work. Just like George Washington, who survived four bullets through his coat and two horses shot under him during the French and Indian War, our team has faced their own trials and emerged victorious. Thank you for all that you do!”
Dr Nombasa Tsengwa, Exxaro CEO
EXXARO REWARDS COMMUNITY EMPOWERMENT AT DEALMAKERS AWARDS
When DealMakers hosted its annual Gala Awards at the Sandton Convention Centre, Ling-Ling Mothapo, Chief Investor Relations & Liaison Officer at Exxaro, was on hand to present the evening’s most anticipated award – the BEE Deal Of the Year Award, sponsored by Exxaro.
For Exxaro, this sponsorship isn’t just about recognition; it’s a testament to our commitment to fostering sustainable job opportunities and economic empowerment. That’s why Exxaro was especially proud to present the 2023 BEE Deal of the Year Award to the Absa Group for their revolutionary eKhaya transaction – a groundbreaking R11.2 billion deal that will see 7%
shareholding allocated to staff and community beneficiaries.
Year after year, DealMakers sets the stage for industry excellence, culminating in a star-studded Gala Awards dinner, catering to over 500 guests. Exxaro’s longstanding sponsorship of the BEE Deal of the Year Award demonstrates our support of innovation in service of transformation and empowerment and is the reason Exxaro remains committed to recognising South African businesses and platforms that drive positive change and prosperity.
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