Exxaro Resources

Exxaro Resources is a mining company, with interests in the coal, titanium dioxide, ferrous and energy markets. Co. has four reportable operating segments, which include: Coal, which produces thermal and metallurgical coal as well as other small scale products; Ferrous, which include the Mayoko iron ore project; Titanium dioxide, in which Co. holds a 43.98% equity interest in Tronox Limited and a 26% equity interest in each of the South African based operations as well as a 26% member's interest in Tronox Sands Limited Liability Partnership in the U.K.; and Other, which include the 50% equity interest in Cennergi Proprietary Limited, among others.
  • Ticker11BL
  • ISINZAE000084992
  • ExchangeJohannesburg Stock Exchange
  • SectorMining
  • CountrySouth Africa

EXXARO RESOURCES LIMITED sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of EXXARO RESOURCES LIMITED (ZA), a company active in the General Mining industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date April 7, 2020, the closing price was ZAR 110.77 and its potential was estimated at ZAR 129.42.

Feasibility Study Results in December to be a Catalyst for this Junior

Feasibility Study Results in December to be a Catalyst for this Junior

Matthew Shields

Exxaro | Walking a fine line

EXX offers attractive growth (CAGR of 6% to 2023) which should help contain unit costs below inflation. Encouragingly, first production at Belfast and GG6 have been moved forward which should result in coal exports increasing by c.70% in FY ‘20f. Furthermore, EXX introduced the idea of accelerating the development of its long-dated high-quality reserves to take advantage of the potential tightness in the coal market in the medium-term. Given EXX's current capex profile, additional capital for accelerate development, potential M&A, the commitment to pass on the Tronox proceeds and declining ...

Matthew Shields

Exxaro | Sharing the SIOC windfall to ease concerns

Exxaro's (EXX) H1 '18 results were in line with our expectations. In our view, a revision in the Group's dividend policy overshadowed the results. The new policy resulted in the interim dividend significantly exceeding our expectations. Given EXX's extensive capex profile, we stress tested the Group's balance sheet under the new dividend policy in a low coal price environment. We support the new policy as we believe it provides greater clarity and certainty of increased cash returns for shareholders. Elsewhere, EXX continues with the digitisation of its supply chain to gain greater visibility ...

Matthew Shields

Exxaro | Proxy voting and governance recommendation

Exxaro (EXX) receives a governance score of 2.99 out of 5.00 and is now rated as 'Adequate' (FY '16: 3.21, 'Good'). In this note we discussion the changes to EXX's Board of directors, the downgrade of the Group's BEE rating, CEO remuneration, and other governance related issues.

EXXARO RESOURCES LIMITED sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of EXXARO RESOURCES LIMITED (ZA), a company active in the General Mining industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date April 7, 2020, the closing price was ZAR 110.77 and its potential was estimated at ZAR 129.42.

Feasibility Study Results in December to be a Catalyst for this Junior

Feasibility Study Results in December to be a Catalyst for this Junior