Exxaro expects lower coal prices, volumes in first half

Exxaro Resources (JSE:EXX) has announced its expected business performance for the six-month period ending June 30, 2025, forecasting lower benchmark coal export prices, averaging US$91 per tonne compared to US$110 per tonne in the prior six-month period. Total coal product and sales volumes are projected to decrease by 6% and 7%, respectively, primarily due to reduced demand from Eskom. Coal capital expenditure is expected to be 19% lower than the second half of 2024. As of May 31, 2025, the group held net cash of R19.5 billion. Exxaro also announced the acquisition of select manganese assets, with the purchase consideration ranging between R9.0 billion and R14.64 billion. The transaction is expected to close in early 2026, pending regulatory approvals. A detailed performance review is scheduled for release on or about August 21, 2025.