Exxaro Share Price Heads for ATH, as Earnings Boosted by Strong Cash Flow and Diversification
Exxaro reported solid earnings growth and strategic progress across coal, renewables, and manganese, reinforcing its long-term expansion...
Quick overview
- Exxaro reported an 8% increase in headline earnings per share, reaching R32.47, driven by strong cash generation and improved earnings quality.
- The company is expanding its renewable energy capacity, including the construction of the 140 MW Karreebosch Wind Farm and the commissioning of a 68 MW solar plant.
- Exxaro's acquisition of manganese assets enhances its diversification strategy, positioning the company as a major player in the global manganese market.
- Overall, Exxaro is balancing strong coal cash flows with strategic investments in renewables and manganese to ensure long-term resilience.
Exxaro reported solid earnings growth and strategic progress across coal, renewables, and manganese, reinforcing its long-term expansion strategy.
Strong Earnings Driven by Cash Generation
Exxaro Resources delivered a strong financial performance, supported by robust cash generation and improved earnings quality. The company highlighted that its equity-accounted investments in iron ore and base metals continue to enhance overall profitability.
Headline earnings per share (HEPS) rose by 8% to R32.47, reflecting steady operational performance. During the results presentation on March 19, CEO Ben Magara reaffirmed production guidance for 2026, with coal output expected between 39.4 million and 42.8 million tonnes. Export sales are projected to range from 7.3 million to 8 million tonnes. Following the update, the company’s share price extended its longer-term uptrend, moving closer toward its 2022 highs.
Technical Picture: Rebound Meets Resistance
From a technical perspective, Exxaro’s longer-term structure remains constructive. After bottoming near R134 in April 2025 following the pullback, the share price has rebounded by roughly 50%. The stock is currently finding support around key moving averages on the monthly chart, suggesting the broader recovery trend is still intact, despite recent volatility and after climbing above R215, now EXX JSE share price is heading for 2022 highes.
EXXJ Chart Monthly – Remaining Supported by MAs
Renewable Energy Expansion Gains Momentum
Exxaro continues to accelerate its transition into renewable energy, more than doubling its generation capacity over the past financial year. The company expanded its project pipeline through strategic acquisitions, including the 140 MW Karreebosch Wind Farm.
This project, which will supply energy to Northam Platinum, is currently under construction and is expected to begin operations in the first half of 2027. In addition, Exxaro commissioned its 68 MW Lephalale solar plant, which is set to generate approximately 176 GWh annually under a 25-year power purchase agreement.
Manganese Acquisition Strengthens Diversification
As part of its diversification strategy, Exxaro completed the acquisition of key manganese assets from Ntsimbintle Holdings and OMH. The transaction includes full ownership of Ntsimbintle Mining, along with stakes in Jupiter Mines and the Tshipi Borwa mine.
This move significantly enhances Exxaro’s position in the global manganese market, transforming the company into a major producer and reducing its reliance on coal revenues.
Conclusion: Exxaro’s results highlight a company successfully balancing strong coal cash flows with strategic diversification. With growing exposure to renewables and manganese, the miner is positioning itself for long-term resilience and evolving energy and commodity demand trends.
EXXARO REVIEWED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025(1) AND FINAL DIVIDEND
– Revenue of R41.8 billion, up 3% from R40.7 billion
– Profit(2) of R7.1 billion, down 7% from R7.6 billion
– AEPS of 3 178 cents, down 14 cents from 3 192 cents
– HEPS of 3 247 cents, up 8% from 3 016 cents
– Final dividend of 1 000 cents per share, up 15% from 866 cents per share
- Notice of final cash dividend
At the board of directors meeting on 17 March 2026, the directors approved a gross final
dividend of 1 000 cents per share
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