Exxaro revenue rises on record exports, weaker rand

JOHANNESBURG – Diversified mining company Exxaro Resources’ revenue jumped 18 percent to R14.1 billion in the six months ended in June on record export volume and help from a weaker rand.

Exxaro said on Thursday that that its coal revenue accelerated 15 percent to R13.73bn from R11.92bn a year earlier, driven by higher volumes to Eskom and exports as well as the addition of clean energy revenue relating to Cennergi, contributing 100 percent from April.

Last year Exxaro acquired 100 percent of Cennergi, a renewable energy company, in a bid to enhance the group’s energy diversification strategy.

The weaker rand against the US dollar also served as a buffer from the API4 index price which dropped 11 percent to $66 (R1 152.30) per ton compared to $74 a ton a year earlier.

Chief executive Mxolisi Mgojo said Exxaro maintained a resilient financial and operational performance during the period, despite sustained headwinds compounded by market challenges and Covid-19.