SURPRISE INAUGURATION FOR OUR NEW CEO
On 1 August 2022 a surprise inauguration was held to mark Dr Nombasa’s first day as CEO of Exxaro. The special event started with Exxaro employees forming a guard of honour to the sounds of the Soweto Gospel Choir, who also entertained guests throughout the morning. The day was filled with a number of special video and livestreaming messages from former Exxaro CEOs, Business Units and Exxaro staff. A decorative hardhat, made for her by artist Ester Mahlangu, was presented to Dr Nombasa as a special gift.
EXXARO TURNS BAD MARKET INTO GOOD RESULTS
Exxaro is on a winning streak. Despite a lot of market turbulence, our interim results for 2022 prove that Exxaro is a strong and resilient company with the right strategy, teams and resources to turn a bad market into a good business opportunity. Exxaro even managed to achieve a 4.7% mining inflation, instead of 11.6% – a remarkable achievement that we can all be proud of.
How did we achieve these results?
It was a great team effort. Exxaro’s early value strategy delivered a high value product at a time when Europe needed RB1 coal. Our cost efficiencies and market-to-resource strategy helped cushion our margins, while the production team managed to keep healthy stock levels to match the reviewed export rail and trucking rate.
Our marketing and logistics team then found alternative channels to evacuate coal to the seaborne markets and achieved an incredible pricing of 95% against the API4 index. And the high thermal coal prices allowed Exxaro to play at high altitude. Plus, our renewable energy solutions business, Cennergi’s wind farms held up nicely, despite a low regional wind factor, to deliver good turbine availabilities above contracted levels.
Key wins include:
OPERATIONAL:
Coal production volumes:
21.7Mt 1.0%
(+1%)
Coal cost:
4.7%
(instead of 11.6%)
FINANCIAL:
Core EBITDA:
R10.6 billion
(+67%)
Core HEPS:
R34.26/share
(+75%)
Interim dividend:
R15.93
RENEWABLES:
Turbine availability at
97.4%
SAFETY:
5 years and
5 months
fatality free
ENVIRONMENT:
18%
of land disturbed
rehabilitated
(+1%),
water intensity
(+18.3%)
HEALTH:
89%
Vaccination rate
“Congratulations and well done! We thank our great teams across the business for such a spectacular response to the dynamic market we operate in,” said Dr Nombasa, CEO of Exxaro.
EXXARO TAKES 2ND PLACE AT GLOBAL ESG REPORTING AWARDS
Exxaro claimed second place at this year’s global ESG Reporting Awards in the “Best Sustainability Reporting: Metals and Mining” category.
Dr Nombasa, CEO of Exxaro, spoke to the impact behind the achievement, saying: “We conduct our business activities in a way that creates success for Exxaro and society. From how we mine to what we mine, we are stewarding our natural assets and social capital to uplift our communities.”
The ESG Reporting Awards are the only awards devoted to assessing the best listed companies in terms of their sustainability and climate-related reporting. To select the winners, the judges independently examine each company’s reporting policy, methodology, effectiveness of communication, clarity and transparency in reporting.
Why are the Awards important?
The ESG Investing Awards create a competitive and transparent forum for companies to compare and celebrate their ESG improvement and performance. They also encourage companies to communicate their success to their stakeholders.
While Exxaro is proud of this achievement, it doesn’t end here. It is constantly seeking opportunities to improve its impact and ESG approaches to benefit the business and all stakeholders.
“Our ESG performance over the two years is evident in our above-target safety performance reaching a Lost Time Injury Frequency Rate (LTIFR) of 0.03, our management of COVID-19 risks with 99% recovery and 89% vaccination rate, and our climate change response strategy demonstrating our commitment to the Task Force on Climate-related Financial Disclosures (TCFD) guidelines,” concluded Dr Nombasa.
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