JOHANNESBURG (miningweekly.com) – Mining and renewable energy company Exxaro Resources has declared an interim dividend in reporting its interim results for the six months to June 30.

Half-year revenue of the Johannesburg Stock Exchange-listed Exxaro with interests in the coal, energy and ferrous markets, was 1% higher than in the corresponding period of last year.

Net operating profit of R3.7-billlion 41% down on the corresponding period of last year.

The interim dividend of 796 c a share is also 347c per share below that of the corresponding period of last year.

Half-year revenue of R19-billion is 1% higher, however.

Total coal sales volumes for the period decreased by 11.7%, negatively impacted by a lower offtake from Eskom at Medupi and Matimba power stations due to unit outages and equipment breakdowns. However, an improved performance has been seen towards the latter part of the reporting period.

“We were able to successfully play into the decarbonisation and environmentally cleaner imperatives in the market by supporting our customers with higher quality, cleaner-burning coal product,” the company stated in a release to Mining Weekly.

Energy generation was reported at 339GWh is in line with expectations for the first half of the year and the operational earnings margin remains stable at 79% with revenue at R652-million, underpinned by the annuity nature of the long-term offtake agreements.

The operating wind assets project financing of R4.2-billion for the windfarms will be settled by 2031. This has no recourse to the Exxaro balance sheet and is hedged through interest rate swaps.

Exxaro, headed by CEO Dr Nombasa Tsengwa, is a major South African coal producer with acquisitive growth prospects in minerals and energy.

The 68 MW Cennergi Lephalale solar project is poised to power Exxaro’s Grootegeluk coal mine with 176 GWh/y of green energy in the first quarter of 2025.

The R1.6-billion Lephalale solar photovoltaic power plant will provide Exxaro with a 27% reduction in Scope 2 emissions.

Exxaro’s 2024 full-year guidance for wind energy generation through Cennergi is 700 GWh to 720 GWh of green electricity.