Sharenet Sites 
Sharenet Sites
EXX - Trading Statement for the year ended 31 December 2019
EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
(“Exxaro” or the “Company”)
TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019
Shareholders are advised that Exxaro and its directors have reasonable certainty relating to the
expected financial results of Exxaro for the year ended 31 December 2019.
Headline earnings per share (HEPS) for the year ended 31 December 2019 is expected to increase
between 5% and 19%, while attributable earnings per share (AEPS) for the year ended
31 December 2019 is expected to increase between 32% and 46% compared to the year ended
31 December 2018. This is mainly due to an increased contribution from our equity-accounted
investments which more than offsets the lower EBITDA* contribution from our managed operations.
Both HEPS and AEPS are based on a weighted average number of shares (WANOS) of 251 million.
EBITDA* for the year ended 31 December 2019 is expected to decrease between 22% and 8%
compared to the year ended 31 December 2018. While coal export sales volumes were higher compared
to the previous year, there was a significant decline in the benchmark API4 export price. Although we
received higher prices in the domestic markets for our products the impact was offset by lower offtake
at the Medupi power station, Matla as well as the sale of our NBC mine in October 2018. These lower
volumes were somewhat offset by higher production at our other Mpumalanga mines. Operating cost
were negatively impacted by the provision for voluntary severance packages costs** and the higher cost
of overburden removal, rehabilitation provisioning as well as distribution cost in line with our higher
export volumes.
After adjusting for non-core items for both financial years, core HEPS*** for the year ended
31 December 2019 is expected to increase between 2% and 14% compared to the year ended
31 December 2018.
After adjusting for non-core items for both financial years, core EBITDA for the year ended
31 December 2019 is expected to decrease between 28% and 14% compared to the year ended
31 December 2018.
The expected ranges are summarised below:
31 December 2018 31 December 2019
Reported earnings Expected range Expected earnings
HEPS 2 672 cents 5% - 19% increase 2 805 – 3 180 cents
AEPS 2 801 cents 32% - 46% increase 3 697 – 4 089 cents
EBITDA* R6 924 million 22% - 8% decrease 5 400 – 6 370 (R Million)
Core HEPS*** 2 159 cents 2% - 14% increase 2 202 – 2 461 cents
Core EBITDA R7 281 million 28% - 14% decrease 5 242 – 6 262 (R Million)
Shareholders are advised that Exxaro will release its reviewed financial results for the year ended
31 December 2019 on 12 March 2020. Further details are available on our website, www.exxaro.com.
The forecast financial information on which this trading statement is based has not been reviewed,
audited nor reported on by Exxaro’s external auditors.
This statement is issued in compliance with the JSE Listings Requirements.
*EBITDA is calculated by adjusting net operating profit before interest, tax, depreciation, amortisation,
impairment charges and net loss or gain on disposal of investments and assets (including translation
differences recycled to profit or loss).
**Exxaro is committed to complying with the employment equity targets prescribed by the Mining Charter
and DTI codes and as such have approved various mechanisms that will support the achievement of
the 2022 targets.
*** Core HEPS are the same as core AEPS. Core WANOS of 332 million was calculated by deducting
Exxaro’s 24.9% shareholding in Eyesizwe RF Proprietary Limited (Eyesizwe) from Exxaro’s total shares
in issue. Core WANOS of 251 million shares was calculated by deducting the total number of shares
held by Eyesizwe from Exxaro’s total shares in issue.
Due to our Black Economic Empowerment shareholder, Eyesizwe settling its acquisition debt in October
2019, Eyesizwe’s outside shareholders will be treated as a non-controlling interest for the Exxaro group
from 1 November 2019. The core WANOS from January to October 2019 was therefore 332 million
shares and core WANOS for November and December 2019 was 251 million shares. The core WANOS
of 251 million will now be in line with WANOS as calculated in terms of IFRS.
These are not defined terms under International Financial Reporting Standards (IFRS) and may not be
comparable with similarly titled measures reported by other companies. The afore-mentioned
adjustments are the responsibility of the directors of Exxaro. The adjustments have been prepared for
illustrative purposes only and due to their nature, may not fairly present Exxaro´s financial position,
changes in equity, results of operations or cash flows.
Editor’s note:
Exxaro is one of the largest South African based diversified resources companies, with interests in coal,
titanium dioxide, iron ore and renewable energy. www.exxaro.com
Enquiries:
Mzila Mthenjane, Executive head: Stakeholder affairs
Tel: + 27 12 307 7393
Mobile: +27 83 417 6375
Email: Mzila.mthenjane@exxaro.com
Pretoria
5 March 2020
Sponsor:
Absa Bank Limited, acting through its Corporate and Investment Banking Division
Date: 05-03-2020 11:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
