Exxaro Resources reported a 78% increase in earnings thanks to the exceptional performance of its coal business, driven by a high-quality product mix and increases in export and domestic sales prices, and in spite of logistical challenges.
“In spite of the obstacles we have faced this year, Exxaro has once again displayed its agility in navigating through the challenging business operating environment,” said Exxaro CEO Nombasa Tsengwa.
Ongoing logistical constraints due to Transnet’s rail problems continue to substantially impact Exxaro’s ability to export coal, with a year-on-year decline of 32% in its export volumes.
However, Tsengwa said Exxaro has prioritised short-term solutions to transport product by pursuing alternative markets and logistical channels.
“We are also focused on finding permanent logistical solutions which will de-risk our business from the dependency on Transnet,” she said.
