Q2 2026 Exxaro Resources Ltd Earnings Call

August 20, 2026

Speaker #3: And for today, please note that we have not planned any emergency drill. Therefore, if the alarm is activated, please remain calm and wait for the Exxaro floor marshals, who are wearing red reflective vests here in the building.

Speaker #3: They will lead you to the assembly point in front of the building, where we have our parking area. There, we will all have a roll call, which will be conducted by an Exxaro floor marshal.

Speaker #3: We will all remain there until safety issues are resolved, or until we are informed to come into the building. If at any time during the presentation you feel unwell, please inform your host, who will escort you to the on-site clinic for medical assistance.

Anda Mwanda: We will all remain there until we are informed to come into the building. If at any time during the presentation you feel unwell, please inform your host, who will escort you to the on-site clinic for medical assistance. In the event of this situation, please note that visitors should always be accompanied by their host. In terms of our ablution facilities, you get out of the auditorium, you turn right, your first passage on your left, that is where you will see our ablutions. They are clearly marked. We kindly ask that for this session, all cell phones are put on silent. Just to remember that from a safety perspective, we encourage you not to text while you are walking in the building. Please take note of our safe harbor, of our disclaimer.

Speaker #3: In the event of this situation, please note that visitors should always be accompanied by their host. In terms of our ablution facilities, you get out of the build of the auditorium, you turn right, your first passage on your left—that's where you will see our ablutions.

Anda Mwanda: In the event of this situation, please note that visitors should always be accompanied by their host. In terms of our ablution facilities, you get out of the auditorium, you turn right, your first passage on your left, that is where you will see our ablutions. They are clearly marked. We kindly ask that for this session, all cell phones are put on silent. Just to remember that from a safety perspective, we encourage you not to text while you are walking in the building. Please take note of our safe harbor, of our disclaimer. Today's presentation will cover our group highlights, followed by operational and financial performance, and will conclude with our outlook for the remainder of the financial year 2026. Unless otherwise stated, the results presented today relate to the six months ended 30 June 2026 and are compared with the corresponding six-month period ended 30 June 2025.

Speaker #3: They are clearly marked. We kindly ask that for this session, all cell phones are put on silent. And just to remember that, from a safety perspective, we encourage you not to text while you are walking in the building.

Speaker #3: Please take note of our safe harbor, as outlined in our disclaimer. Today's presentation will cover our group highlights, followed by operational and financial performance. We will conclude with our outlook for the remainder of the financial year 2026.

Anda Mwanda: Today's presentation will cover our group highlights, followed by operational and financial performance, and will conclude with our outlook for the remainder of the financial year 2026. Unless otherwise stated, the results presented today relate to the six months ended 30 June 2026 and are compared with the corresponding six-month period ended 30 June 2025. Presenting our results today are our Chief Executive Officer, Mr. Ben Magara, and Finance Director, Riaan Koppeschaar. We have set aside time at the end of the presentations for questions and answers. It gives me great pleasure this morning to hand over to Ben to take us through the group highlights. Thank you.

Speaker #3: Unless otherwise stated, the results presented today relate to the six months ended 30 June 2026, and are compared with the corresponding six-month period ended 30 June 2025.

Speaker #3: Presenting our results today are our Chief Executive Officer, Mr. Bennetor Magara, and Finance Director, Rian Koppeschaar. We have set aside time at the end of the presentations for questions and answers.

Anda Mwanda: Presenting our results today are our Chief Executive Officer, Mr. Ben Magara, and Finance Director, Riaan Koppeschaar. We have set aside time at the end of the presentations for questions and answers. It gives me great pleasure this morning to hand over to Ben to take us through the group highlights. Thank you.

Speaker #3: And it gives me great pleasure this morning to hand over to Ben to take us through the group highlights. Thank you.

Speaker #2: Thank you very much. Anda, good morning, everybody, and thank you very much for joining us this morning. It is Women's Month, and for those in purple and pink, we appreciate you for realizing that.

Ben Magara: Thank you very much, Anda. Good morning, everybody, and thank you very much for joining us this morning. It is Women's Month. For those in purple and pink, we appreciate you for realizing that. Also in particular to the women among us and online and everywhere, we want you to know that the benefits we get, including the life we have, come from your sacrifices. We thank you. I would also like to extend a warm welcome this morning to all of you, as Anda has just said, especially those online and most are here present with us today. A warm welcome to our board members. Sis G, as we fondly call you, thank you very much for joining us. I know some of them are also joining online. We appreciate you to our shareholders, and of course, my fellow employees.

Speaker #2: But also, in particular to the women among us and online and everywhere, we want you to know that the benefits we get, including the life we have, come from your sacrifices.

Speaker #2: And we thank you. I would also like to extend a warm welcome this morning to all of you, as Anda has just said, especially those online, and most who are present with us today.

Speaker #2: A warm welcome to our board members. Sis G, as we fondly call you, thank you very much for joining us. And some of them are also joining online; we appreciate you.

Speaker #2: So, our shareholders, and of course, my fellow employees. We have the Pensioners Club here today, and we hope we are keeping your earnings safe.

Ben Magara: We have the pensioners club here today, and we hope we are keeping your earnings safe. I must personally welcome you, because it is the journey that we have traveled. This year, Exxaro celebrates 20 years since our listing in 2006. I wish I could have two Huns today to showcase the two guys who looked a lot younger when they did that then, and they are present with us today. We shall not talk about their salt and paper. I am not sure it is more just the salt, because I do not think I see any paper anymore. When we met at our capital market day in June, we reflected on the progress that we have made in building a diversified portfolio for Exxaro.

Speaker #2: But I must personally welcome you, because it is the journey that we have traveled. This year, Exxaro celebrates 20 years since our listing in 2006.

Speaker #2: I wish I could have two horns today to showcase the two guys who looked a lot younger when they did that then, and they are present with us today.

Speaker #2: But we shall not talk about their salt and pepper. I'm not sure—it's more just the salt, because I don't think I see any pepper anymore.

Speaker #2: But when we met at our Capital Markets Day in June, we reflected on the progress that we have made in building a diversified portfolio for Exxaro.

Speaker #2: We are indeed accelerating the disciplined and prudent execution of our strategy by strengthening our core base, growing our renewable energy business, and, for the first time, reflecting the contribution from manganese in our earnings and into the business—and in these results today.

Ben Magara: We are indeed accelerating the disciplined and prudent execution of our strategy by strengthening our coal base, growing our renewable energy business, and for the first time, reflecting the contribution from manganese in our earnings and into the business, and in these results today. The manganese results only reflect four months since we took over on 1 March. Today, we want to reflect on our operational performance for the H1 2026. From our operating activities, I am really pleased that Exxaro has managed what is within its control and delivered strong production performance, strong cost management, and an exceptional safety performance that we will reflect on. The headwinds of inflationary pressures, especially diesel, were contained well within inflation, thanks to the great safety and production from our operating teams in all areas, from coal to renewable energy and to manganese. Let me start with safety.

Speaker #2: The manganese results only reflect four months since we took over on the 1st of March. But today, we want to reflect on our operational performance for the first half of 2026.

Speaker #2: So from our operating activities, I'm really pleased that Exxaro has managed what's within its control and delivered strong production performance, strong cost management, and an exceptional safety performance that we'll reflect on.

Speaker #2: The headwinds of inflationary pressures, especially diesel, were contained well within inflation, thanks to the great safety and production from our operating teams—in all areas, from coal to renewable energy and to manganese.

Speaker #2: So let me start with safety. At Exxaro, we expect everyone to come to work and return home safely—unharmed—every day. This conviction is growing and is showing great signs, ladies and gentlemen.

Ben Magara: Let me start with safety. At Exxaro, we expect everyone to come to work and return home safely, unharmed, every day. This conviction is showing great signs, ladies and gentlemen. We are now four consecutive years without a fatality, and our lost time injury frequency rate improved by 60% to 0.02. This is our best statistics on record for Exxaro. Thank you. I can promise you that if you do not read our results, the proxy of safety, driving better production, better performance, better efficiencies, and cost will be reflected in our results in terms of how all our operating teams have performed. Any business is a hazardous business. Any business has got risks. We must remain focused, ensuring that our controls are in place and that we are able to proactively manage safety. This performance reflects the continued implementation of our One Voice strategy.

Ben Magara: At Exxaro, we expect everyone to come to work and return home safely, unharmed, every day. This conviction is showing great signs, ladies and gentlemen. We are now four consecutive years without a fatality, and our lost time injury frequency rate improved by 60% to 0.02. This is our best statistics on record for Exxaro. Thank you. I can promise you that if you do not read our results, the proxy of safety, driving better production, better performance, better efficiencies, and cost will be reflected in our results in terms of how all our operating teams have performed. Any business is a hazardous business. Any business has got risks. We must remain focused, ensuring that our controls are in place and that we are able to proactively manage safety. This performance reflects the continued implementation of our One Voice strategy.

Speaker #2: We are now four consecutive years without a fatality, and our lost time injury frequency rate improved by 60% to 0.02. This is our best statistic on record for Exxaro.

Speaker #2: Thank you. And I can promise you that if you don’t read our results, the proxy of safety, driving better production, better performance, better efficiencies, and cost will be reflected in our results.

Speaker #2: In terms of how all our operating teams have performed, any business is a hazardous business. Any business has got risks. But we must remain focused, ensuring that our controls are in place and that we are able to proactively manage safety.

Speaker #2: This performance reflects the continued implementation of our One Voice strategy. Most importantly, it shows the commitment of our people across the organization to work safely, and the conviction that zero harm is achievable.

Ben Magara: Most importantly, the commitment of our people across the organization to work safely, and the conviction that zero harm is achievable. We are encouraged by this performance, and we remain vigilant, and we must continue on our goal to zero harm, because that is what is critical in the underlying performance of any business. Now, attending to some other key messages, I think as I have already highlighted, that we continue to make tangible progress in executing our strategy and building our diversified portfolio. Two highlights on our strategy execution for the H1 is really our LSP project, the Lephalale Solar Project, reaching commercial operation in April, and it is now generating green electrons for our Grootegeluk mine. I will touch on this a little bit later. For the first time, our results, as I said, include the contributions from manganese. Ladies and gentlemen, safety makes business sense.

Speaker #2: So, we are encouraged by this performance, and we remain vigilant. We must continue in our goal to achieve zero harm, because that is what is critical in the underlying performance of any business.

Speaker #2: Now, attending to some other key messages. I think we have already, as I have already highlighted, that we continue to make tangible progress in executing our strategy.

Speaker #2: And building our diversified portfolio, two highlights on our strategy execution for the first half is really our LSP project—the Lephalale Solar Plant—reaching commercial operation in April.

Speaker #2: And it is now generating green electrons for our green mine. I'll touch on this a little bit later. But for the first time, our results, as I said, include the contributions from manganese.

Speaker #2: Ladies and gentlemen, safety makes business sense. In that regard, our coal production is 11% up on last year to 21.5 million tons. Our coal export sales are up 15%, taking advantage of the high prices we saw in the market, to 3.9 million tons.

Ben Magara: And in that regard, our coal production is 11% up on last year to 21.5 million tons. Our coal export sales are up 15%, taking advantage of the high prices we saw in the market, to 3.9 million tons. Our renewable energy business is up 12%, thanks to the solar plant at Lephalale, because we had much lower wind in the Eastern Cape. Pleasingly, production in manganese is also up 11% year-on-year. Importantly, we reiterate our guidance for the full year as we can see that we are on track to deliver. This operational performance has translated into a resilient financial result, and I know Kopis will be touching on this a little bit later. For those online, that is Riaan. Group revenue increased by 7%. This is in spite of exchange rate strengthening by about, I think, 11%.

Speaker #2: Our renewable energy business is up 12%, thanks to the solar plant at Lephalale, because we had much lower wind in the Eastern Cape. Pleasingly, production in manganese is also up 11% year on year.

Speaker #2: Importantly, we reiterate our guidance for the full year, as we can see that we are on track to deliver. This operational performance has translated into a resilient financial result.

Speaker #2: And I know Koppeschaar will be touching on this a little bit later. For those online, that's Rian. Group revenue increased by 7%. This is in spite of exchange rate.

Speaker #2: Strengthening by about, I think, 11%. Our EBITDA is essentially flat at $5.6 billion. The exceptional operational performance in production and cost is possibly a bit more masked by the cost inflation issues.

Ben Magara: Our EBITDA essentially flattened ZAR 5.6 billion, and the exceptional operational performance in production and costs. It is possibly a bit more masked by the cost inflation issues, but we are very pleased that we are able to extend those cost pressures and deliver essentially flat EBITDA numbers. We continue to generate strong cash flows, and our balance sheet remains strong, with net cash at ZAR 6.4 billion, excluding the energy project finance debt. We exclude it because the project finance debt in Cennergi has no recourse to our balance sheet. This provides us with the liquidity to fund our strategic priorities while we sustain the consistent shareholder returns that we have been delivering since listing. Most importantly, we remain on track, as I said, to deliver on our guidance. Unfortunately, our headline earnings per share was negatively impacted by our equity accounted investments in SIOC, Sishen Iron Ore Company, and Black Mountain.

Speaker #2: But we are very pleased that we're able to withstand those cost pressures and deliver essentially flat EBITDA numbers. We continue to generate strong cash flows.

Speaker #2: And our balance sheet remains strong with net cash at $6.4 billion, excluding the energy project finance debt. We exclude it because the project finance debt in Synergy has no recourse to our balance sheet.

Speaker #2: This provides us with the liquidity to fund our strategic priorities, while we sustain the consistent shareholder returns that we have been delivering since listing.

Speaker #2: So, most importantly, we remain on track, as I say, to deliver on our guidance. Unfortunately, our headline earnings per share was negatively impacted by our equity-accounted investments in SIOC, Sichuan Iron Oil Company, and Black Mountain.

Ben Magara: Unfortunately, our headline earnings per share was negatively impacted by our equity accounted investments in SIOC, Sishen Iron Ore Company, and Black Mountain. We are, however, pleased that in line with our new dividend policy, which is to return 40% to 67% of our group-adjusted earnings and a pass-through of 100% from SIOC dividends, that the board has declared an interim dividend of ZAR 7 per share. I am surprised that Sibusiso clapped first and not the pensioners. This is Exxaro's 47th consecutive dividend since listing. We have never missed a dividend. There are, however, still tough macroeconomic factors due to all the geopolitical uncertainty that I am aware that we all are aware of. But let me unpack a little bit, just to give you a context and the impact on Exxaro, but also maybe on the whole industry and business.

Speaker #2: We are, however, pleased that in line with our new dividend policy, which is to return 40% to 67% of our group adjusted earnings and a pass-through of 100% from SIOC dividends.

Ben Magara: We are, however, pleased that in line with our new dividend policy, which is to return 40% to 67% of our group-adjusted earnings and a pass-through of 100% from SIOC dividends, that the board has declared an interim dividend of ZAR 7 per share. I am surprised that Sibusiso clapped first and not the pensioners. This is Exxaro's 47th consecutive dividend since listing. We have never missed a dividend. There are, however, still tough macroeconomic factors due to all the geopolitical uncertainty that I am aware that we all are aware of. But let me unpack a little bit, just to give you a context and the impact on Exxaro, but also maybe on the whole industry and business. But before I really unpack the issues of operational performance.

Speaker #2: That the board has declared an interim dividend of seven rand per share. I'm surprised that we see so clapped first and not the pensioners.

Speaker #2: This is Exxaro's 47th consecutive dividend since listing. We have never missed a dividend. There are, however, still tough macroeconomic factors due to all the geopolitical uncertainty that I am aware that we all are aware of.

Speaker #2: But let me unpack that a little bit, just to give you some context on the impact on Exxaro, but also maybe on the whole industry and business.

Speaker #2: But before I really unpack the issues of operational performance, the conflict in the Middle East contributed to renewed volatility across the global markets, with oil prices increasing sharply, or at least oil prices becoming quite volatile.

Ben Magara: But before I really unpack the issues of operational performance. The conflict in the Middle East contributed to renewed volatility across the global markets, with oil prices increasing sharply, or almost oil prices going quite volatile, translating all this into higher diesel prices for the country in general, but obviously the mining industry, especially if you operate in open pit mines, with much more impact from diesel, and broader inflationary pressures. So you will be able to see how Exxaro has managed to contain these costs all within inflation, because thanks to the efforts of our operating teams today. However, some of these gains will be offset, as I have already said, with diesel costs and the stronger rand. Against this backdrop, we remain focused on the factors within our control, driving operational efficiencies, maintaining the cost discipline across all our three businesses.

Ben Magara: The conflict in the Middle East contributed to renewed volatility across the global markets, with oil prices increasing sharply, or almost oil prices going quite volatile, translating all this into higher diesel prices for the country in general, but obviously the mining industry, especially if you operate in open pit mines, with much more impact from diesel, and broader inflationary pressures. So you will be able to see how Exxaro has managed to contain these costs all within inflation, because thanks to the efforts of our operating teams today. However, some of these gains will be offset, as I have already said, with diesel costs and the stronger rand. Against this backdrop, we remain focused on the factors within our control, driving operational efficiencies, maintaining the cost discipline across all our three businesses.

Speaker #2: Translating all this into higher diesel prices for the country in general. But obviously, the mining industry—especially if you operate in open-pit mines—feels much more impact from diesel.

Speaker #2: And the broader inflationary pressures. So you will be able to see how Exxaro has managed to contain this cost only within inflation, all within inflation.

Speaker #2: That's because of the efforts of our operating teams. However, as I've already mentioned, some of these gains would be offset by higher diesel costs and a stronger rand.

Speaker #2: Against this backdrop, we remain focused on the factors within our control—driving operational efficiencies and maintaining cost discipline across all our three businesses. It is this focus on disciplined execution and operational excellence that underpinned our operational performance for the first half, which I will now go and take you through.

Ben Magara: It is this focus on disciplined execution and operational excellence that underpinned our operational performance for the H1, which I will now go and take you through. Turning to operational performance, beginning with coal, and very importantly, that our three pillars of coal, renewable energy, and manganese also continue to portray exactly how the business is performing. If I start off with coal, with total production up 11%, strengthened by higher output, particularly at Grootegeluk and the safe ramp-up at Matla. Matla, if you look at it, year-on-year improved by 38%. This is an underground mine with continuous miners, extensive labor and workforce underground, working safely and delivering a 38% improvement year-on-year. Very pleasing. The Matla ramp-up has been delivered on schedule and continues to perform exceptionally well. I saw a beautiful video from Mervin of a conveyor belt running.

Speaker #2: Turning to operational performance beginning with coal. And very importantly that our three pillars of coal renewable energy and manganese also continue to portray exactly how the business is performing.

Speaker #2: But if I start off with coal, with total production up 11%, strengthened by higher output, particularly at and the safe ramp-up at Matla.

Speaker #2: And Matla, if you look at it year on year, improved by 38%. This is an underground mine with continuous miners, extensive labor, and workforce underground working safely and delivering a 38% improvement year on year.

Speaker #2: Very pleasing. So the Matla ramp-up has been delivered on schedule and continues to perform exceptionally well. I saw a beautiful video from Mervin of a conveyor belt running.

Speaker #2: I waited for two minutes, Mervin, to see if the coal was coming. And I did see it. So I looked through the whole video.

Ben Magara: I waited for 2 minutes, Mervin, to see if the coal was coming, and I did see it. I looked through the whole video. Really wonderful performance from Grootegeluk and Matla. Belfast and Mafube are mainly impacted, as you see, a bit lower year-on-year, but this is all in line with their respective mining plans. It is an expectation we have because of their own mining plans, in that area. As the mines get slightly deeper, the yields get slightly lower, which is really kind of symptomatic of the Mpumalanga coal region. At Leeuwpan, I am really pleased that the turnaround plan is taking hold, with steady production and growing contributions from exports. No cigar yet is what I say to Ronald, and we are seeing really very good signs in the turnaround of Leeuwpan.

Speaker #2: But really wonderful performance from Grootegeluk and Matla. Our Belfast and Mafube are mainly impacted, as you see, a bit lower year-on-year. But this is all in line with their respective mining plans.

Speaker #2: So it's not odd—it's not—it's an expectation we have because of their own mining plans in that area. As the mines get slightly deeper, the yields get slightly lower.

Speaker #2: Which is really kind of symptomatic of the Mpumalanga coal region. At Leupen, I'm really pleased that the turnaround plan is taking hold, with steady production and growing contributions from exports.

Speaker #2: "No cigar yet," is what I say to Ronald. We are seeing really very good signs in the turnaround of Leupen. And thanks also to Transnet for delivering on their promises to make sure that we could increase the exports from Leupen.

Ben Magara: Thanks also to Transnet for delivering on their promises to make sure that we could easily increase the exports from Leeuwpan. You will see the benefits when Riaan goes through his numbers. Total coal sales up 4% to 19.9 million tons. Caroline, where is 20? Supported by higher Eskom sales and strong expert performance. Sales to Eskom increased by 6% to 14 million tonnes, mainly driven by the exceptional performance I spoke about on the ramp-up of the new mine one at Matla. Importantly, coal export sales increased by 15% to 3.9 million tonnes. We guided on 8 for the full year, and we are on track, supported by improved rail performance and our effective use of alternative logistics channels to evacuate our coal from the mines to the ports, as prices do support the margins we can make out of that.

Speaker #2: You'll see the benefits when Riaan goes through his numbers. Total coal sales are up 4%, to 19.9 million tons. Caroline, why is 20? Supported by higher Eskom sales and strong export performance.

Speaker #2: Sales to Eskom increased by 6% to 14 million tons, mainly driven by the exceptional performance I spoke about on the ramp-up of the new Mine 1 at Matla.

Speaker #2: Importantly, coal export sales increased by 15% to 3.9 million tons. We guided on 8 million tons for the full year, and we are on track, supported by improved rail performance and our effective use of alternative logistics channels to evacuate our coal from the mines to the port.

Speaker #2: As prices do support the margins we can make out of that. If you look at this slide, we are particularly pleased, as I said, with the Leupen turnaround.

Ben Magara: If you look at this slide, we are particularly pleased, as I said, with the Leeuwpan turnaround. You can see the movements, and you can see it is in the right direction, reflecting the progress that we are making in that. Through our Market-to-Resource optimisation initiatives, we were able to switch between domestic sales and export markets in order to maximize on profitability as we saw export prices much higher. You will see that domestic, even though down at 14%, is because the much more profitable market of exports is actually up 15%. Metallurgical coal sales were a lot lower, and this really reflects the weak demand we are seeing in the domestic steel and ferrochrome industries.

Speaker #2: You can see the movements, and you can see it's in the right direction, reflecting the progress that we are making in that, through our market-to-resource optimization initiatives.

Speaker #2: We were able to switch between domestic sales and export markets in order to maximize profitability, as we saw export prices were much higher. So you will see that domestic, even though down at 14%, is because the much more profitable export market is actually up 15%.

Speaker #2: Metallurgical coal sales were a lot lower, and this really reflects the weak demand we are seeing in the domestic steel and ferrochrome industries, as we see Eskom coming to some agreements with some of the ferrochrome producers.

Ben Magara: As we see Eskom coming to some agreements with some of the ferrochrome producers, we expect the domestic side to possibly, particularly the metallurgical side, to possibly pick up as well as those furnaces pick up over time. Let me touch a bit around our production, particularly the challenges with the Waterberg, but really a strong export performance in a bulk commodity business. The key value lever after production is logistics. Whether it is manganese, iron ore, or coal, the next key value lever is our logistics. We continue to see encouraging improvements in rail performance. At an industry level, coal volumes railed to Richards Bay improved, placing this system on an annualized run rate of about 60 million tons. We continuously see step change in the performance of Transnet. As highlighted, this improvement supported our own export performance, which went up 15%.

Speaker #2: We expect the domestic side, particularly the metallurgical side, to possibly pick up as those furnaces ramp up over time. Let me touch a bit on our production, particularly the challenges with the water bag.

Speaker #2: But really, a strong export performance in a bulk commodity business—the key value lever after production is logistics, whether it's manganese, iron ore, or coal.

Speaker #2: The next key value lever is our logistics. We continue to see encouraging improvements in rail performance. At an industry level, coal volumes railed to Richards Bay improved, placing this system on an annualized run rate of about 60 million tons.

Speaker #2: So, we continuously see a step change in the performance of Transnet. And, as highlighted, this improvement supported our own export performance, which went up 15%.

Speaker #2: And in Mpumalanga, our tons railed directly to Richards Bay remained basically steady as we focused on wanting to evacuate more coal from Grootegeluk. And together with Transnet, our teams worked flat out to deliver a bit more.

Ben Magara: In Mpumalanga, our tons railed directly to Richards Bay remained basically steady as we focused on wanting to evacuate more coal from Grootegeluk. Together with Transnet, our teams worked flat out to deliver a bit more, despite all activities, we achieved a 50% improvement in direct rails from Grootegeluk to Richards Bay. This ensures that we can reduce road transport, which is impacted by diesel. What we see is that if you can rail direct from Grootegeluk to Richards Bay, it is almost a 2.5 to 3 times benefit on profitability and margins. That is why I am really pleased to see the kind of 50% improvement. Obviously, from a low base, we also would remember that we had a 2-week washaway where the rail was washed away by rains last year. Including all that, we have seen a fantastic improvement of 20%.

Speaker #2: And, despite all activities, we achieved a 50% improvement in direct rails from Krutkalak to Richards Bay. This ensures that we can reduce road transport, which is impacted by diesel, and so what we see is that if you can rail direct from GG to Richards Bay, it's almost a two-and-a-half to three times benefit on profitability and margins.

Speaker #2: So that's why I'm really pleased to see the 40, the kind of 50% improvement. Obviously, from a low base. We also would remember that we had a two-week wash away, where the rail was washed away by rains last year.

Speaker #2: So, including all that, we have seen a fantastic improvement of 20%. If you compare just the last half of last year to this year, both halves had no washaway.

Ben Magara: If you compare just the last H2 of last year to this year, both halves had no washaway, and we still have an improvement of 20%. The Richards Bay multimodal system, which we will continue to utilize, especially at current prices, also improved by 20%, even though a half on half from last year's H2, it dropped by 14% as we became conscious of the increasing diesel costs. In the meantime, our teams have continued to demonstrate agility in getting our product to the market, making use of all these alternative and multimodal logistics systems. While these channels provide viable and flexible options, we have enabled ourselves to increase our export volumes, and they come at higher cost if you are going to be running by road. We are pleased with the progress of making 50% improvement of direct railing from Waterberg. However, we still need a lot more improvement.

Speaker #2: And we still have an improvement of 20%. The Richards Bay multimodal system which will continue to utilize a especially at current prices also improved by 20% even though half on half from last year's second half it dropped by 14% as we became conscious of the increasing diesel costs.

Speaker #2: In the meantime, our teams have continued to demonstrate agility in getting our product to the market, making use of all these alternative and multimodal logistics systems.

Speaker #2: While these channels provide viable and flexible options, we have enabled ourselves to increase our export volumes, and they come at higher cost if you are going to be running by road.

Speaker #2: We are pleased with the progress of making a 50% improvement in direct railing from water bag. However, we are still seeing that we need a lot more improvement.

Ben Magara: However, we still need a lot more improvement. Further improvement on the Waterberg line remains an important export lever for Exxaro to unlock the additional export volumes that I know we have and have been promised from our operating teams, and this would continue to deliver improved cost efficiency of getting our coal to the seaborne market. During the H1, we saw softer demand from India, reflecting a little bit of higher domestic coal production in India, continued weakness of the steel sector in India, but also a much higher coal input costs. When the costs go up, they tend to slow down in what they buy from outside. However, the strength of our diversified cost base and our Market-to-Resource optimisation teams has enabled us to respond to these dynamics. Our sales increased in Japan where our premium products in low sulfur, high energy remains a sought-after product.

Speaker #2: And further improvement on the Waterberg line remains an important export lever for Exxaro. To unlock the additional export volumes that we know we have and have been promised from our operating teams, and this will continue to deliver improved cost efficiency of getting our coal to the seaboard market.

Ben Magara: Further improvement on the Waterberg line remains an important export lever for Exxaro to unlock the additional export volumes that I know we have and have been promised from our operating teams, and this would continue to deliver improved cost efficiency of getting our coal to the seaborne market. During the H1, we saw softer demand from India, reflecting a little bit of higher domestic coal production in India, continued weakness of the steel sector in India, but also a much higher coal input costs. When the costs go up, they tend to slow down in what they buy from outside. However, the strength of our diversified cost base and our Market-to-Resource optimisation teams has enabled us to respond to these dynamics. Our sales increased in Japan where our premium products in low sulfur, high energy remains a sought-after product.

Speaker #2: During the first half, we saw softer demand from India, reflecting a little bit of higher domestic coal production. In India, continued weakness of the steel sector, but also much higher coal import costs, and when the costs go up, they tend to slow down in what they buy from outside.

Speaker #2: However, the strength of our diversified cost base and our market-to-resource optimization teams has enabled us to respond to these dynamics. Sales volumes increased in Japan, where our premium product, a low-sulfur, high-energy coal, remains a sought-after product.

Speaker #2: While in on the Asian markets, particularly Taiwan, we also saw a positive contribution to our export performance. This reflects the strength of Exxaro as a coal brand and has established a position where our customers see our products as premium in our key markets.

Ben Magara: While on the Asian markets, particularly Taiwan, we also saw a contribution positively to our export performance. This reflects the strength of Exxaro as a coal brand, and has established a position where our customers see our products as premium in our key markets. Importantly, you will see that RB1, Richards Bay One, represents 88% of our export sales mix during the H1. Compared to last year, we actually did not sell any RB2. You could say, "So what happened?" Actually, because we produce very high energy coal from Grootegeluk, we can move less volume from there, bring it to the lower RB2 in Witbank, and blend it to deliver RB1 to the market, which sells at a much higher premium. We achieved an average realized price on export of $96 per ton, reflecting a 91% price realization compared to the API4 benchmark price.

Speaker #2: Importantly, you will see that RB1, Richards Bay 1, represents 88% of our export sales mix during the half. Compared to last year, we actually did not sell any RB2.

Speaker #2: And you could say, so what happened? Actually, because we produce very high-energy coal from GG, we can move less volume from there, bring it to the lower RB2 in wet bank, and blend it to deliver RB1 to the market.

Speaker #2: Which sells at a much higher premium. We achieved an average realized price on export of $96 per ton, reflecting a 91% price realization compared to the API 4 benchmark price.

Speaker #2: This price escalation reflects the mix of the fixed-price contracts, but also the index-linked contracts that our customers tend to prefer. In terms of low prices, they prefer index-linked, but in terms of high prices, they tend to prefer fixed price.

Ben Magara: This price escalation reflects the mix of the fixed price, but also the index-linked contracts that our customers tend to prefer, in times of low prices, but in times of high prices, they tend to prefer fixed price. Our Market-to-Resource optimisation teams allows us to respond with agility, and I think we continue to do that. Richards Bay Coal Terminal, as I said earlier, remains our preferred and most cost-effective route to the market. A bit of coal well covered. Let me move to our next business pillar, Cennergi, the energy business. Cennergi also delivered a solid operational performance. The key milestone was the Lephalale Solar Project that I spoke about earlier, reaching full commercial operation on 21 April, adding solar generation to our existing wind portfolio. The solar plant at Lephalale contributes 30% of the mine's energy requirements.

Speaker #2: Our market-to-resource teams allow us to respond with agility, and I think we continue to do that. And RBCT, as I said earlier, remains our preferred and most cost-effective route to market.

Speaker #2: A bit of coal well covered. Let me move to our next business pillar, Synergy—the energy business. Synergy also delivered a solid operational performance.

Speaker #2: The key milestone was the Lepalari solar plant that I spoke about earlier, reaching full commercial operation on the 21st of April, adding solar generation to our existing wind portfolio.

Speaker #2: The solar plant at Lepalari has reduced its contribution to 30% of the mine's energy requirements. This has, in a way, reduced our carbon emissions by 22% on that mine.

Ben Magara: This has, in a way, reduced our carbon emissions by 22% on that mine, and given us electricity savings of ZAR 100 million a year. The total renewable energy generation has increased by 12%, with the LSP contributing 66 gigawatt-hours. Wind generation was lower due to weaker wind conditions in the Eastern Cape, although plant availability was up and strong at 98%. But the benefits of now having wind and solar dovetails our performance such that you continue to see an improved performance in EBITDA numbers as well. The Kareebosch construction project continues and is in progress with commercial operation expected in the H1 of 2027, and that remains on schedule, on budget. Touching on manganese, the new kid on the block, and contributing both to improving safety, production, and improved pricing that we saw in the manganese.

Speaker #2: And given us electricity savings of 100 million rand a year. The total renewable energy generation has increased by 12%, with the LSP contributing 66 gigawatt-hours.

Speaker #2: Wind generation was lower due to weaker wind conditions in the eastern KET, although plant availability was up and strong at 98%. But the benefits of now having wind and solar dovetail with our performance such that you continue to see an improved performance in EBITDA numbers as well.

Speaker #2: The Career Bus construction project continues and is in progress, with commercial operation expected in the first half of 2027. That remains on schedule and on budget.

Speaker #2: Touching on manganese, the new kid on the block and contributing both to improving safety, production, and improved pricing that we saw in the manganese, this slide highlights the performance of the CP Borua mine.

Ben Magara: This slide highlights the performance of Tshipi Borwa mine, in which we acquired 50% interest on 27 February 2026. For illustrative purposes, all the operational metrics that you see under manganese are presented on this slide on a 100% basis for the respective periods, so that it is comparable, even though in our books, manganese only represents four months of performance since we acquired it from 1 April. They improved LTIFR by 52%, reflecting the operations' ongoing commitment and conviction to maintaining safe and disciplined working environment. Production volumes up 11%, and the increased production was deliberate response to the favorable market conditions that we saw. Sales volumes, however, declined by 5%. Mainly, this was driven by the record sales we had in the H1 of last year, as a result of the prevailing market conditions at that time.

Speaker #2: In which we acquired a 50% interest on the 27th of February, 2026. For illustrative purposes, all the operational matrices that you see under manganese are presented on this slide on a 100% basis.

Speaker #2: For the respective periods, so that it is comparable. Even though in our books, manganese only represents four months of performance, since we acquired it from the 1st of April.

Speaker #2: The improved LTRFR by 52%, reflecting the operation's ongoing commitment and conviction to maintaining a safe and disciplined working environment. Production volumes were up 11%, and the increased production was a deliberate response to the favorable market conditions that we saw.

Speaker #2: Sales volumes, however, declined by 5%. Mainly, this was driven by the record sales we had in the first half of last year, as a result of the prevailing market conditions at that time.

Speaker #2: Despite this decline, sales volumes remain robust, and the CFR prices for the high-grade semi-carbonates manganese that we produce increased by 18% to $4.64 per DMTU.

Ben Magara: Despite this decline, sales volumes remained robust and the CIF prices for the high-grade semi-carbonate manganese that we produce increased by 18% to $4.64 per DMTU. On this note, we are very pleased with our long-life asset, cash-generative manganese business that is now in the house for Exxaro. In particular, for the long life that we have, we believe that the long-term fundamentals of manganese remain robust, and we are very pleased that we have it now in the house and our prospects around that continue. Let me hand over to Kopis so that he can take us through the financial highlights. Thank you.

Speaker #2: On this note, we are very pleased with our long-life, asset, cash-generative manganese business that is now in the house for Exxaro. In particular, for the long life that we have, we believe that the long-term fundamentals of manganese remain robust, and we're very pleased that we have it now in the house and our prospects around that continue.

Speaker #2: So let me hand over to Koppeschaar so that he can take us through the financial highlights. Thank you.

Speaker #1: Thanks, Finn. Good morning, ladies and gentlemen. It's again a pleasure to present the interim results for the six months ended 30 June 2026.

Pieter Adriaan Koppeschaar: Thanks, Rian. Good morning, ladies and gentlemen, and it is again a pleasure to present the interim results for the 6 months ending 30 June 2026. On the first slide, I am going to look at the operating performance of the group. Just to note, to ensure comparability across the reporting periods, the figures presented in this section are based on the IFRS results adjusted for headline earnings items. The reconciliation is included in the supplementary slides. Starting with the group's overall performance, you can see the first two graphs on the top left illustrate the performance of our own managed operations. Revenue increased by 7%, supported by the stronger coal prices we saw across both export and domestic markets.

Riaan Koppeschaar: Thanks, Rian. Good morning, ladies and gentlemen, and it is again a pleasure to present the interim results for the 6 months ending 30 June 2026. On the first slide, I am going to look at the operating performance of the group. Just to note, to ensure comparability across the reporting periods, the figures presented in this section are based on the IFRS results adjusted for headline earnings items. The reconciliation is included in the supplementary slides. Starting with the group's overall performance, you can see the first two graphs on the top left illustrate the performance of our own managed operations. Revenue increased by 7%, supported by the stronger coal prices we saw across both export and domestic markets.

Speaker #1: So, on the first slide, I'm going to look at the operating performance of the group. Just to note, to ensure comparability across the reporting periods, the figures presented in this section are based on the IFRS results adjusted for headline earnings items.

Speaker #1: And the reconciliation is included in the supplementary slides. So, starting with the group's overall performance, you can see the first two graphs on the top left illustrate the performance of our own managed operations.

Speaker #1: So, revenue increased by 7%, supported by the stronger coal prices we saw across both export and domestic markets. Although EBITDA remained broadly in line with the prior period, the coal and energy EBITDA increased by 5% and 2%, respectively.

Pieter Adriaan Koppeschaar: Although EBITDA remained broadly in line with the prior period, the coal and energy EBITDA increased by 5% and 2% respectively, demonstrating the resilience of our operations despite the inflationary pressure. However, if you compare it to the H2 of last year, you can actually see that the EBITDA increased 22% from the previous half year. Turning to the chart on the top right, which reflects our equity accounted investments. Equity accounted investments declined significantly during this period, primarily attributable to a ZAR 781 million reduction in the contribution from SIOC, where earnings were negatively impacted by lower realized selling prices, mainly resulting from the stronger rand. Black Mountain also recorded a weaker contribution, reflecting higher mining cost and a slower than anticipated ramp-up of the Gamsberg Phase II project. This was offset by the first contribution from our investment in Tshipi, which added ZAR 242 million for the 4-month period.

Riaan Koppeschaar: Although EBITDA remained broadly in line with the prior period, the coal and energy EBITDA increased by 5% and 2% respectively, demonstrating the resilience of our operations despite the inflationary pressure. However, if you compare it to the H2 of last year, you can actually see that the EBITDA increased 22% from the previous half year. Turning to the chart on the top right, which reflects our equity accounted investments. Equity accounted investments declined significantly during this period, primarily attributable to a ZAR 781 million reduction in the contribution from SIOC, where earnings were negatively impacted by lower realized selling prices, mainly resulting from the stronger rand. Black Mountain also recorded a weaker contribution, reflecting higher mining cost and a slower than anticipated ramp-up of the Gamsberg Phase II project.

Speaker #1: Demonstrating the resilience of our operations despite the inflationary pressure. However, if you compare it to the second half of last year, you can actually see that the EBITDA increased 22% from the previous half year.

Speaker #1: So, turning to the chart on the top right, which reflects our equity-accounted investments: equity-accounted investments declined significantly during this period, primarily attributable to a R781 million reduction in the contribution from SIOC, where earnings were negatively impacted by lower realized selling prices, mainly resulting from the stronger rand.

Speaker #1: Black Mountain also recorded a weaker contribution, reflecting higher mining costs and the slower than anticipated ramp-up of the Gamsberg 2 project. This was offset by the first contribution from our investment in TP, which added R242 million for the four-month period.

Riaan Koppeschaar: This was offset by the first contribution from our investment in Tshipi, which added ZAR 242 million for the 4-month period. Further detail on the equity investments is included in the supplementary slides. Despite operating in a dynamic and challenging market environment, the group generated cash of ZAR 6.1 billion. As a result, we closed the H1 at a net debt position of ZAR 1.4 billion, including the Cennergi project financing. I will provide additional detail of the cash position later on in the presentation. Overall, the performance of our managed operations together with the contribution from our investment portfolio, resulted in headline earnings of R13.77 per share, representing a decline of 20% compared to the prior period.

Speaker #1: Further detail on the equity investments is included in the supplementary slides. Despite operating in a dynamic and challenging market environment, the group generated cash of R6.1 billion, and as a result, we closed the first half at a net debt position of R1.4 billion, including the Synergy Project financing.

Pieter Adriaan Koppeschaar: Further detail on the equity investments is included in the supplementary slides. Despite operating in a dynamic and challenging market environment, the group generated cash of ZAR 6.1 billion. As a result, we closed the H1 at a net debt position of ZAR 1.4 billion, including the Cennergi project financing. I will provide additional detail of the cash position later on in the presentation. Overall, the performance of our managed operations together with the contribution from our investment portfolio, resulted in headline earnings of R13.77 per share, representing a decline of 20% compared to the prior period. If we then look at the EBITDA waterfall graph, starting with the price impact, you can see export prices realized in the H1 of this year increased by $8.70 per ton, or about 10%, broadly in line with the higher API4 benchmark price.

Speaker #1: I will provide additional detail on the cash position later in the presentation. So, overall, the performance of our managed operations, together with the contribution from our investment portfolio, resulted in headline earnings of R13.77 per share, representing a decline of 20% compared to the prior period.

Speaker #1: If we then look at the EBITDA waterfall graph, starting with the price impact, you can see export prices realized in the first half of this year increased by $8.70 per ton, or about 10%, broadly in line with the higher API 4 benchmark price.

Riaan Koppeschaar: If we then look at the EBITDA waterfall graph, starting with the price impact, you can see export prices realized in the H1 of this year increased by $8.70 per ton, or about 10%, broadly in line with the higher API4 benchmark price. This benefit was partially offset by a decline in our price realization, which decreased from 96% to 91%. In addition, there was stronger pricing in the domestic market to support our revenue generation. If we look at volumes, export volumes benefited from the improved rail and road logistics from the Waterberg. As Ben mentioned, the H1 of last year, we also had the impact of the rail washaway. These improved logistics enabled higher export volumes through Richards Bay Coal Terminal and also increased our overall exports. In addition, Leeuwpan sales were positively impacted by the establishment of the Navitrade alternative export channel.

Speaker #1: This benefit was partially offset by a decline in our price realization, which decreased from 96% to 91%. In addition, there was stronger pricing in the domestic market to support our revenue generation.

Pieter Adriaan Koppeschaar: This benefit was partially offset by a decline in our price realization, which decreased from 96% to 91%. In addition, there was stronger pricing in the domestic market to support our revenue generation. If we look at volumes, export volumes benefited from the improved rail and road logistics from the Waterberg. As Ben mentioned, the H1 of last year, we also had the impact of the rail washaway. These improved logistics enabled higher export volumes through Richards Bay Coal Terminal and also increased our overall exports. In addition, Leeuwpan sales were positively impacted by the establishment of the Navitrade alternative export channel. As a result, export volumes increased 15% in the H1 of 2026. Looking at inflation continues to have a big impact on our business. As you can see there, the diesel impact on our specific mines, the cost increased by 25%.

Speaker #1: If we look at volumes, export volumes benefited from the improved rate and route logistics from the Waterberg, as Ben mentioned. In the first half of last year, we also had the impact of the rail washaway.

Speaker #1: So, these improved logistics enabled higher export volumes through RBCT and also increased our overall exports. In addition, Leopard's sales were positively impacted by the establishment of the Navitrade alternative export channel.

Speaker #1: As a result, export volumes increased 15% in the first half of 2026. Looking at the inflation—so, inflation continues to have a big impact on our business. As you can see there, the diesel impact on our specific mines: the cost increased by 25%.

Riaan Koppeschaar: As a result, export volumes increased 15% in the H1 of 2026. Looking at inflation continues to have a big impact on our business. As you can see there, the diesel impact on our specific mines, the cost increased by 25%. Electricity, the tariffs increased by 10.6%, and labor cost on average increased by 6.3%. Other operating costs generally track PPI, increasing by approximately 4.5%. Beyond inflation, there are several other cost factors to consider. Selling and distribution expenses increased by ZAR 425 million, largely reflecting the higher export volumes, as well as also the higher diesel cost when we had to move the product by road. Inventory movements had a favorable EBITDA impact, driven by our production volumes exceeding sales volumes.

Pieter Adriaan Koppeschaar: Electricity, the tariffs increased by 10.6%, and labor cost on average increased by 6.3%. Other operating costs generally track PPI, increasing by approximately 4.5%. Beyond inflation, there are several other cost factors to consider. Selling and distribution expenses increased by ZAR 425 million, largely reflecting the higher export volumes, as well as also the higher diesel cost when we had to move the product by road. Inventory movements had a favorable EBITDA impact, driven by our production volumes exceeding sales volumes. The rehab liability adjustments were ZAR 341 million less favorable than the prior period, mainly due to scope changes, inflationary pressures, mainly at our mines enclosure, Durnacol, and also at Leeuwpan. The stronger rand dollar exchange rate that we mentioned earlier, there you can see the direct impact of ZAR 740 million on our group EBITDA.

Speaker #1: Electricity tariffs increased by 10.6%, and labor costs on average increased by 4.6 to 6.3%. Other operating costs generally tracked PPI, increasing by approximately 4.5%.

Speaker #1: Beyond inflation, several other cost factors to consider: selling and distribution expenses increased by 425 million, largely reflecting the higher export volumes, as well as the higher diesel cost when we had to move the product by road.

Speaker #1: So inventory movements had a favorable EBITDA impact, driven by our production volumes exceeding sales volumes. The rehab liability adjustments were R341 million less favorable than the prior period, mainly due to scope changes and inflationary pressures, mainly at our mines—Grootegeluk, Leeuwpan, and also at Belfast.

Riaan Koppeschaar: The rehab liability adjustments were ZAR 341 million less favorable than the prior period, mainly due to scope changes, inflationary pressures, mainly at our mines enclosure, Durnacol, and also at Leeuwpan. The stronger rand dollar exchange rate that we mentioned earlier, there you can see the direct impact of ZAR 740 million on our group EBITDA. This was partially offset by ZAR 188 million impact from realized and unrealized foreign exchange gains on our foreign denominated debtors and cash balances. Finally, our general costs were year-on-year lower as the prior year also included consulting and legal expenses associated with our corporate transactions, including Exxaro FerroAlloys and other strategic initiatives. This resulted in a favorable variance of ZAR 112 million. The manganese EBITDA contribution will be unpacked later on.

Speaker #1: The stronger rand dollar exchange rate that we mentioned earlier there you can see the impact direct impact of 740 million rand on on our group EBITDA.

Speaker #1: This was partially offset by a R188 million impact from realized and unrealized foreign exchange gains on our foreign-denominated debtors and cash balances. Finally, our general costs were year-on-year lower, as the prior year also included consulting and legal expenses associated with our corporate transactions, including Ferro Alloys and other strategic initiatives.

Pieter Adriaan Koppeschaar: This was partially offset by ZAR 188 million impact from realized and unrealized foreign exchange gains on our foreign denominated debtors and cash balances. Finally, our general costs were year-on-year lower as the prior year also included consulting and legal expenses associated with our corporate transactions, including Exxaro FerroAlloys and other strategic initiatives. This resulted in a favorable variance of ZAR 112 million. The manganese EBITDA contribution will be unpacked later on. When we look at costs, we continue to focus on disciplined cost management despite the inflationary pressures, the elevated diesel prices, and the increase in logistics costs that we are seeing. If you look at production volumes excluding Mafube and Matla, it increased by 7% to 16.6 million tons, while total cash costs increased by 4.6%, broadly in line with the PPI, reflecting the benefits of the higher production volumes and continued cost optimization.

Speaker #1: So this resulted in a favorable variance of 112 million rand. The manganese EBITDA contribution will be unpacked later on. When we look at the cost, we continue to focus on disciplined cost management, despite the inflationary pressures, elevated diesel prices, and the increase in logistics costs that we are seeing.

Riaan Koppeschaar: When we look at costs, we continue to focus on disciplined cost management despite the inflationary pressures, the elevated diesel prices, and the increase in logistics costs that we are seeing. If you look at production volumes excluding Mafube and Matla, it increased by 7% to 16.6 million tons, while total cash costs increased by 4.6%, broadly in line with the PPI, reflecting the benefits of the higher production volumes and continued cost optimization. The initiatives that we are embarking on include benefits from the Leeuwpan turnaround strategy and active optimization of our logistics channels and cost to ensure that the exports remain value accretive. Then also cost excellence initiatives across all our mines. Looking at the specific cost component that I want to highlight, I will highlight a few.

Speaker #1: So, if you look at production volumes, excluding Mafube and Matla, it increased by 7% to 16.6 million tons, while total cash cost increased by 4.6%, broadly in line with the PPI, reflecting the benefits of the higher production volumes and continued cost optimization.

Speaker #1: The initiatives that we are embarking on include benefits from the Leopard Turnaround Strategy and active optimization of our logistics channels and costs to ensure that the exports remain value accretive.

Pieter Adriaan Koppeschaar: The initiatives that we are embarking on include benefits from the Leeuwpan turnaround strategy and active optimization of our logistics channels and cost to ensure that the exports remain value accretive. Then also cost excellence initiatives across all our mines. Looking at the specific cost component that I want to highlight, I will highlight a few. Maintenance costs decreasing by ZAR 14 a ton in line with the normal life cycle plans and also the Leeuwpan turnaround strategy. Employee costs decreasing by ZAR 7, also reflecting the new Leeuwpan operating model and the implementation of the operating model. General costs, ZAR 6 a ton, mainly due to decreased equipment leases at Grootegeluk. We are bringing in a new mining fleet that we will also address later on. Electricity costs ZAR 1 a ton, with the Lephalale Solar Project partially mitigating the cost increase at Grootegeluk.

Speaker #1: And then also cost excellence initiatives across all our mines. Looking at the specific cost components that I want to highlight, out-of-field maintenance cost decreased by R14 per ton, in line with the normal life cycle plans and also the Leopard turnaround strategy. Employee cost decreased by R7 per ton, also reflecting the new Leopard operating model and the implementation of that operating model. General costs decreased by R6 per ton, mainly due to decreased equipment leases. At Grootegeluk, we are bringing in new mining fleet that we will also address later on.

Riaan Koppeschaar: Maintenance costs decreasing by ZAR 14 a ton in line with the normal life cycle plans and also the Leeuwpan turnaround strategy. Employee costs decreasing by ZAR 7, also reflecting the new Leeuwpan operating model and the implementation of the operating model. General costs, ZAR 6 a ton, mainly due to decreased equipment leases at Grootegeluk. We are bringing in a new mining fleet that we will also address later on. Electricity costs ZAR 1 a ton, with the Lephalale Solar Project partially mitigating the cost increase at Grootegeluk. Contractor cost increasing by ZAR 8 a tonne primarily associated with Leeuwpan mine, as Leeuwpan mine is in essence, on the mining side now a contractor operation. Our fuel costs increased by ZAR 9 a tonne, reflecting the higher diesel prices across the portfolio, and this remains the single largest inflationary cost pressure.

Speaker #1: And electricity cost one rand a ton, with the Lephalale solar project partially mitigating the cost increase at Grootegeluk. Contractor costs increased by eight rand a ton, primarily associated with the Leopard Mine, as Leopard Mine is in essence, on the mining side, now a contractor operation.

Pieter Adriaan Koppeschaar: Contractor cost increasing by ZAR 8 a tonne primarily associated with Leeuwpan mine, as Leeuwpan mine is in essence, on the mining side now a contractor operation. Our fuel costs increased by ZAR 9 a tonne, reflecting the higher diesel prices across the portfolio, and this remains the single largest inflationary cost pressure. In 2025, just to point it out, diesel cost for the group, fuel cost is about ZAR 2 billion. Any increase has got a major impact on our cost base. As pointed out earlier, the rehab-related adjustments at Leeuwpan and Durnacol increased unit cost by ZAR 20 a tonne. Then very important, logistic cost ZAR 23 a tonne, mainly due to the higher export volumes and also the impact of diesel cost on road transport. Remember, on road transport, diesel is probably your biggest driver in those contracts.

Speaker #1: Our fuel cost increased by 9 rand per ton, reflecting the higher diesel prices across the portfolio, and this remains the single largest inflationary cost pressure.

Speaker #1: So in 2025, just to point it out, diesel cost for the group fuel cost is about R2 billion. So any increase has got a major impact on our cost base.

Riaan Koppeschaar: In 2025, just to point it out, diesel cost for the group, fuel cost is about ZAR 2 billion. Any increase has got a major impact on our cost base. As pointed out earlier, the rehab-related adjustments at Leeuwpan and Durnacol increased unit cost by ZAR 20 a tonne. Then very important, logistic cost ZAR 23 a tonne, mainly due to the higher export volumes and also the impact of diesel cost on road transport. Remember, on road transport, diesel is probably your biggest driver in those contracts. Although the alternative export channels come at a higher cost, they remain value accretive, with logistics decisions focused on moving products that maximize value and margin for the company. Costs remain under pressure from elevated diesel prices and alternative port routes. However, ensures that we actively manage these costs by prioritizing exports directly to Richards Bay.

Speaker #1: And as pointed out earlier, the rehab-related adjustments at Lephalale and Dorstfontein increased unit cost by R20 a ton. Then, very important, logistics cost increased by R23 a ton, mainly due to the higher export volumes and also the impact of diesel cost on road transport.

Speaker #1: Remember, on-route transport diesel is probably your biggest driver in those contracts. So, although the alternative export channels come at a higher cost, they remain value-accretive, with logistics decisions focused on moving products that maximize value and margin for the company.

Pieter Adriaan Koppeschaar: Although the alternative export channels come at a higher cost, they remain value accretive, with logistics decisions focused on moving products that maximize value and margin for the company. Costs remain under pressure from elevated diesel prices and alternative port routes. However, ensures that we actively manage these costs by prioritizing exports directly to Richards Bay. We do collaborative contracting, market testing, and also ongoing optimization initiatives. On the next slide, we will look at the metals business. As Ben pointed out, we acquired the manganese portfolio the end of February. This includes 100% investment in the manganese marketing company in Singapore. Basically, Tshipi é Ntle Manganese Mining sells our portion of the production to the marketing company that on sells it then to the end customer, very similar to our coal marketing company in Switzerland.

Speaker #1: So, costs remain under pressure from elevated diesel prices and alternative port routes. However, we ensure that we actively manage these costs by prioritizing exports directly to Richards Bay.

Speaker #1: We do collaborative contracting, market testing, and also ongoing optimization initiatives. On the next slide, we'll look at the metals business. So, as Ben pointed out, we acquired the manganese portfolio at the end of February. This includes a 100% investment in the manganese marketing company in Singapore.

Riaan Koppeschaar: We do collaborative contracting, market testing, and also ongoing optimization initiatives. On the next slide, we will look at the metals business. As Ben pointed out, we acquired the manganese portfolio the end of February. This includes 100% investment in the manganese marketing company in Singapore. Basically, Tshipi é Ntle Manganese Mining sells our portion of the production to the marketing company that on sells it then to the end customer, very similar to our coal marketing company in Switzerland. Also in these numbers are then our 51% investment in Tshipi é Ntle Manganese Mining, which we pointed out is equity accounted. The numbers included for a 4-month period from March to June.

Speaker #1: So basically, TP Mines sells our portion of the production to the marketing company, which then on-sells it to the end customer. This is very similar to our coal marketing company in Switzerland.

Speaker #1: And then also, in these numbers is our 51% investment in TP, which we pointed out is equity accounted. So the numbers included are for a four-month period from March to June.

Pieter Adriaan Koppeschaar: Also in these numbers are then our 51% investment in Tshipi é Ntle Manganese Mining, which we pointed out is equity accounted. The numbers included for a 4-month period from March to June. If you look at the EBITDA line, the marketing entity reported a positive EBITDA of ZAR 28 million for the period, and as I pointed out, driven by the sale and marketing of our share of the Tshipi é Ntle Manganese Mining ore production. This was offset by a day-one fair value loss of ZAR 179 million recognized on the investment in Jupiter Mines reflecting the impact of the share price and the exchange rate on the effective date of the transaction when we acquired the asset, and then the balance of that is once off transaction cost paid during the period.

Speaker #1: If you look at the EBITDA line, the marketing entity reported a positive EBITDA of $28 million for the period. As I pointed out, this was driven by the sale and marketing of our share of the TP ore production.

Riaan Koppeschaar: If you look at the EBITDA line, the marketing entity reported a positive EBITDA of ZAR 28 million for the period, and as I pointed out, driven by the sale and marketing of our share of the Tshipi é Ntle Manganese Mining ore production. This was offset by a day-one fair value loss of ZAR 179 million recognized on the investment in Jupiter Mines reflecting the impact of the share price and the exchange rate on the effective date of the transaction when we acquired the asset, and then the balance of that is once off transaction cost paid during the period. Looking at the performance of the equity accounted investments, as pointed out, mainly impacted by SIOC due to a big impact of the exchange rate on the sales price that was realized, and also higher production costs associated with the conflict in the Middle East.

Speaker #1: This was offset by a day one fair value loss of $179 million recognized on the investment in Jupiter Mines, reflecting the impact of the share price and the exchange rate on the effective date of the transaction.

Speaker #1: When we acquired the asset and then the balance of that is once off transaction cost paid during the period. Look at the looking at the performance of the equity accounted investments.

Pieter Adriaan Koppeschaar: Looking at the performance of the equity accounted investments, as pointed out, mainly impacted by SIOC due to a big impact of the exchange rate on the sales price that was realized, and also higher production costs associated with the conflict in the Middle East. Equity income from Black Mountain negatively impacted by the delayed ramp-up of the Gamsberg Phase II project. As pointed out, Exxaro's 50% interest in Tshipi é Ntle Manganese Mining has been equity accounted for the 4 months period following completion of the transaction, and that is the ZAR 242 million that you can see. During the period, we received dividends from our investments, ZAR 1.4 billion from the equity accounted investments, mainly from SIOC, as well as ZAR 100 million from the newly acquired investment in Tshipi é Ntle Manganese Mining, as well as a ZAR 26 million dividend from the investment in Jupiter Mines, which is listed on the Australian Securities Exchange. Looking at capital allocation.

Speaker #1: As pointed out, mainly impacted by SIOC due to a significant impact of the exchange rate on the sales price that was realized, and also higher production costs associated with the conflict in the Middle East.

Speaker #1: Equity income from Black Mountain was negatively impacted by the delayed ramp-up of the Gamsberg project. As pointed out, Exxaro's 50% interest in TP has been equity accounted for in the four-month period following completion of the transaction, and that is a R242 million impact that you can see.

Riaan Koppeschaar: Equity income from Black Mountain negatively impacted by the delayed ramp-up of the Gamsberg Phase II project. As pointed out, Exxaro's 50% interest in Tshipi é Ntle Manganese Mining has been equity accounted for the 4 months period following completion of the transaction, and that is the ZAR 242 million that you can see. During the period, we received dividends from our investments, ZAR 1.4 billion from the equity accounted investments, mainly from SIOC, as well as ZAR 100 million from the newly acquired investment in Tshipi é Ntle Manganese Mining, as well as a ZAR 26 million dividend from the investment in Jupiter Mines, which is listed on the Australian Securities Exchange. Looking at capital allocation. Our capital allocation framework remains disciplined and consistent. As pointed out, we continue to target the net debt to EBITDA ratio below 1.5x, excluding the Cennergi project financing.

Speaker #1: During the period, we received dividends from our investments: R1.4 billion from the equity-accounted investments, mainly from SIOC; as well as R100 million from the newly acquired investment in TP; as well as a R26 million dividend from the investment in Jupiter, which is listed on the Australian Stock Exchange.

Speaker #1: Looking at capital allocation, our capital allocation framework remains disciplined and consistent, and as pointed out, we continue to target the net debt to EBITDA ratio below 1.5 times, excluding the Synergy Project financing.

Pieter Adriaan Koppeschaar: Our capital allocation framework remains disciplined and consistent. As pointed out, we continue to target the net debt to EBITDA ratio below 1.5x, excluding the Cennergi project financing. This approach preserves our balance sheet strength while maintaining flexibility required to execute on our strategic priorities. As previously highlighted, during the H1, we generated ZAR 6.9 billion in net cash inflow, comprising ZAR 5.4 billion from our own owner managed operations, ZAR 1.5 billion received in dividends from our investments, including ZAR 1.3 billion from SIOC, ZAR 100 million from Tshipi, and ZAR 75 million from our Mafube joint venture. In line with the capital allocation framework, we deployed the capital across the business to support the operational sustainability, our growth initiatives, and also shareholder returns. ZAR 1.4 billion was invested in sustaining capital for the Coal business, ensuring asset reliability, continuity, and safe production.

Speaker #1: So, this approach preserves our balance sheet strength while maintaining the flexibility required to execute on our strategic priorities. As previously highlighted, during the first half we generated R6.9 billion in net cash inflow from pricing—R5.4 billion from our own owner-managed operations, and R1.5 billion received in dividends from our investments, including R1.3 billion from SIOC, R100 million from TP, and R75 million from our Mafube joint venture.

Riaan Koppeschaar: This approach preserves our balance sheet strength while maintaining flexibility required to execute on our strategic priorities. As previously highlighted, during the H1, we generated ZAR 6.9 billion in net cash inflow, comprising ZAR 5.4 billion from our own owner managed operations, ZAR 1.5 billion received in dividends from our investments, including ZAR 1.3 billion from SIOC, ZAR 100 million from Tshipi, and ZAR 75 million from our Mafube joint venture. In line with the capital allocation framework, we deployed the capital across the business to support the operational sustainability, our growth initiatives, and also shareholder returns. ZAR 1.4 billion was invested in sustaining capital for the Coal business, ensuring asset reliability, continuity, and safe production. ZAR 3.4 billion was returned to shareholders through dividends.

Speaker #1: In line with the capital allocation framework, we deployed the capital across the business to support the operational sustainability, our growth initiatives, and also shareholder returns.

Speaker #1: So, R1.4 billion was invested in sustaining capital for the coal business, ensuring asset reliability, continuity, and safe production. R3.4 billion was returned to shareholders through dividends. This comprises R1.3 billion from the passthrough of the SIOC dividend and R2.1 billion distributed from our core group earnings, excluding SIOC.

Pieter Adriaan Koppeschaar: ZAR 3.4 billion was returned to shareholders through dividends. This comprises ZAR 1.3 billion from the pass-through of the SIOC dividend and ZAR 2.1 billion distributed from our core group earnings excluding SIOC. We invested ZAR 10.6 billion in the manganese acquisition, further strengthening our portfolio and positioning the business for the long-term value creation. We also settled ZAR 2.5 billion acquisition debt that we acquired. A further ZAR 864 million was invested in expansion capital, primarily relating to the completion of the remaining work at the Lephalale Solar Project and the continued construction of the Kareebosch Wind Farm. The other cash allocations include ZAR 337 million for the acquisition of shares to settle vested share-based payments and ZAR 100 million on deposit for our insurance program.

Riaan Koppeschaar: This comprises ZAR 1.3 billion from the pass-through of the SIOC dividend and ZAR 2.1 billion distributed from our core group earnings excluding SIOC. We invested ZAR 10.6 billion in the manganese acquisition, further strengthening our portfolio and positioning the business for the long-term value creation. We also settled ZAR 2.5 billion acquisition debt that we acquired. A further ZAR 864 million was invested in expansion capital, primarily relating to the completion of the remaining work at the Lephalale Solar Project and the continued construction of the Kareebosch Wind Farm. The other cash allocations include ZAR 337 million for the acquisition of shares to settle vested share-based payments and ZAR 100 million on deposit for our insurance program.

Speaker #1: We invested $10.6 billion in the manganese acquisition, further strengthening our portfolio and positioning the business for long-term value creation. And we also settled $2.5 billion in acquisition debt that we incurred.

Speaker #1: A further item is $64 million was invested in expansion capital, primarily relating to the completion of the remaining work at the Lephalale solar project and the continued construction of the Garob wind farm.

Speaker #1: The other cash allocations include R337 million for the acquisition of shares to settle vested share-based payments, and R100 million on deposit for our insurance program.

Speaker #1: So as a result of these cash flows and capital allocation decision we closed with a net cash position of 6.4 billion and if we exclude the energy excluding the energy business net debt of 7.8 billion rand.

Pieter Adriaan Koppeschaar: As a result of these cash flows and capital allocation decision, we closed with a net cash position of ZAR 6.4 billion, and if we exclude the energy business net debt of ZAR 7.8 billion. Looking at capital expenditure, sustaining capital mainly in the Coal business. This, as I pointed out earlier, is primarily driven by Grootegeluk, where we are in the process of rolling out the new truck and shovel replacement program. The increase is intentional and value accretive, supporting the long-term sustainability of our assets and also ensuring asset reliability to underpin future earnings capacity. Turning to energy, the project cost at Lephalale Solar, ZAR 160 million was invested during the H1 to complete activities ahead of the commissioning of the plant in April.

Riaan Koppeschaar: As a result of these cash flows and capital allocation decision, we closed with a net cash position of ZAR 6.4 billion, and if we exclude the energy business net debt of ZAR 7.8 billion. Looking at capital expenditure, sustaining capital mainly in the Coal business. This, as I pointed out earlier, is primarily driven by Grootegeluk, where we are in the process of rolling out the new truck and shovel replacement program. The increase is intentional and value accretive, supporting the long-term sustainability of our assets and also ensuring asset reliability to underpin future earnings capacity. Turning to energy, the project cost at Lephalale Solar, ZAR 160 million was invested during the H1 to complete activities ahead of the commissioning of the plant in April.

Speaker #1: Looking at capital expenditure, sustaining capital mainly in the coal business—and this, as I pointed out earlier, is primarily driven by Grootegeluk—where we are in the process of rolling out the new truck and shovel replacement program.

Speaker #1: The increase is intentional and value accretive supporting the long-term sustainability of our assets and also ensuring asset reliability to underpin future earnings capacity. Turning to energy the project cost at Lepalale solar 160 million was invested during the first half to complete activities ahead of the commissioning of the plant in April and during the same period we spent 704 million on the career boss wind farm which remains on track for completion in the first half of 2027.

Pieter Adriaan Koppeschaar: During the same period, we spent ZAR 704 million on the Kareebosch Wind Farm, which remains on track for completion in the H1 of 2027. Our energy projects are typically funded through a structure comprising approximately 75% project finance and 25% equity funding, optimizing returns while maintaining disciplined capital allocation. The project funding is normally drawn from the outset of construction, with our equity contributions weighted towards the latter stages of project execution. Importantly, as Ben pointed out, all the project financing is structured with limited recourse to Exxaro's balance sheet and is hedged through interest rate swaps providing certainty against any interest rate movement risk. Last slide, the new dividend policy. Our increased confidence in the group's diversified earnings base, the balance sheet resilience and long-term cash generation resulted, as we pointed out in the capital markets day, in two enhancements to the dividend policy.

Riaan Koppeschaar: During the same period, we spent ZAR 704 million on the Kareebosch Wind Farm, which remains on track for completion in the H1 of 2027. Our energy projects are typically funded through a structure comprising approximately 75% project finance and 25% equity funding, optimizing returns while maintaining disciplined capital allocation. The project funding is normally drawn from the outset of construction, with our equity contributions weighted towards the latter stages of project execution. Importantly, as Ben pointed out, all the project financing is structured with limited recourse to Exxaro's balance sheet and is hedged through interest rate swaps providing certainty against any interest rate movement risk. Last slide, the new dividend policy.

Speaker #1: So, our energy projects are typically funded through a structure comprising approximately 75% project finance and 25% equity funding, optimizing returns while maintaining disciplined capital allocation.

Speaker #1: The project funding is normally drawn from the outset of construction, with our equity contributions weighted towards the latter stages of project execution. Importantly, as Ben pointed out, all the project financing is structured with limited recourse to Exxaro's balance sheet and is hedged through interest rate swaps, providing certainty against any interest rate movement risk.

Speaker #1: Last slide, the new dividend policy. So, our increased confidence in the group's diversified earnings base, the balance sheet resilience, and long-term cash generation resulted, as we pointed out in the Capital Markets Day, in two enhancements to the dividend policy: the removal of the 12 to 15 billion cash buffer, and the revision of the dividend cover to 1.5 to 2 times, or a 40 to 67% payout ratio, whilst maintaining the 100% SIOC pass-through.

Riaan Koppeschaar: Our increased confidence in the group's diversified earnings base, the balance sheet resilience and long-term cash generation resulted, as we pointed out in the capital markets day, in two enhancements to the dividend policy. The removal of the 12 to 15 billion cash buffer and the revision of the dividend cover to 1.5 to 2 times or a 40% to 67% payout ratio whilst maintaining the 100% SIOC pass-through. The intention is future growth in future will be financed through internally generated cash flow, also supplemented by the debt facilities, where we raised in the group earlier on. I am pleased, as Ben pointed out, to announce that the board has resolved to pay an interim dividend of ZAR 7 per share at an overall group cover ratio of 2 times.

Pieter Adriaan Koppeschaar: The removal of the 12 to 15 billion cash buffer and the revision of the dividend cover to 1.5 to 2 times or a 40% to 67% payout ratio whilst maintaining the 100% SIOC pass-through. The intention is future growth in future will be financed through internally generated cash flow, also supplemented by the debt facilities, where we raised in the group earlier on. I am pleased, as Ben pointed out, to announce that the board has resolved to pay an interim dividend of ZAR 7 per share at an overall group cover ratio of 2 times. This includes a pass-through of the SIOC dividend. If you look at the ZAR 7, ZAR 2 is a SIOC dividend and reflects a cover of 1.8 times on Exxaro's adjusted group earnings.

Speaker #1: So the intention is future growth will be financed through internally generated cash flow, also supplemented by the debt facilities which we raised in the group earlier on.

Speaker #1: So I'm pleased, as Ben pointed out, to announce that the Board has resolved to pay an interim dividend of 7 rand per share at an overall group cover ratio of two times.

Riaan Koppeschaar: This includes a pass-through of the SIOC dividend. If you look at the ZAR 7, ZAR 2 is a SIOC dividend and reflects a cover of 1.8 times on Exxaro's adjusted group earnings. The graph on the right depicts the quality of our shareholder returns, and you can see there the enhancement due to the new dividend policy. The final dividend end of last year, the enhanced dividend from the new policy, ZAR 2.93, and this time around ZAR 1.43 per share. With this, Ben, also from my side, thanks to everybody at Exxaro that made the results possible, whether you are at one of the mines, at one of the wind farms, here at the corporate center. Also thanks to my finance team, long hours, hard work, but thanks, we were able to deliver these sets of results.

Speaker #1: This includes a pass-through of the SIOC dividend. If you look at the 7 rand, 2 rand is a SIOC dividend and reflects a cover of 1.8 times on Exxaro's adjusted group earnings.

Speaker #1: The graph on the right depicts the quality of our shareholder returns, and you can see there the enhancement due to the new dividend policy.

Pieter Adriaan Koppeschaar: The graph on the right depicts the quality of our shareholder returns, and you can see there the enhancement due to the new dividend policy. The final dividend end of last year, the enhanced dividend from the new policy, ZAR 2.93, and this time around ZAR 1.43 per share. With this, Ben, also from my side, thanks to everybody at Exxaro that made the results possible, whether you are at one of the mines, at one of the wind farms, here at the corporate center. Also thanks to my finance team, long hours, hard work, but thanks, we were able to deliver these sets of results.

Speaker #1: So, the final dividend at the end of last year—the enhanced dividend from the new policy—was R2.93, and this time around, it's R1.43 per share.

Speaker #1: So with this, Ben, also from my side, thanks to everybody at Exxaro that made the results possible, whether you’re at one of the mines, at one of the wind farms, or here at the corporate center. Also, thanks to my finance team—long hours, hard work, but thanks, we were able to deliver these sets of results.

Speaker #1: Thank you. Thank you, Rio. Really wonderful set of results, and thanks—thanks to everybody. It's a great opportunity for us to be showcasing, while everybody else still has to deliver in the operations and the plans.

Ben Magara: Thank you. Thank you, Riaan. Really wonderful set of results and thanks to everybody. It is a great opportunity for us to be showcasing while everybody else still has to deliver in the operations and the plants. As we look to the remainder of the year, the geopolitical environment obviously remains uncertain. Tensions, particularly the ongoing conflict in the Middle East, continue to create uncertainty across both commodity and energy markets and have an impact on inflationary factors and also shipping rates. We have an emerging risk. I think we all know the local government elections are about to take off now. While the domestic operating environment in South Africa really continues to show improvement. Whether it is from our two networks of Eskom and Transnet and the current account of National Treasury, it is really pleasing to see those numbers and the flexibility and the improvements that we are seeing.

Speaker #1: But so, as we look to the remainder of the year and the geopolitical environment obviously remains uncertain. Tensions, particularly the ongoing conflict in the Middle East, continue to create uncertainty across both commodity and energy markets, and have an impact on inflationary factors and also shipping rates.

Speaker #1: We have an emerging risk. I think we all know the local government elections are about to take off now, while the domestic operating environment in South Africa really continues to show improvement.

Speaker #1: Whether it's from our two networks of Eskom and Transnet, and the current account of Treasury, it's really pleasing to see those numbers and the flexibility and the improvements that we are seeing.

Ben Magara: Whether it is from our two networks of Eskom and Transnet and the current account of National Treasury, it is really pleasing to see those numbers and the flexibility and the improvements that we are seeing. These dynamics present both risks and opportunities for Exxaro, reinforcing the importance of our operational excellence, the importance of cost discipline, and the flexibility that we have in our portfolio and as we diversify the portfolio. Again, as this backdrop, the strong operational performance delivered during the H1 clearly positions Exxaro well for the remainder of the year, and we therefore reiterate our coal production, sales, and coal export sales are in line with the guidance we gave, including the sustaining capital requirements when Riaan spoke about the track and shovel project at Grootegeluk.

Speaker #1: These dynamics present both risks and opportunities for Exxaro, reinforcing the importance of our operational excellence, the importance of cost discipline, and the flexibility that we have in our portfolio as we diversify the portfolio.

Ben Magara: These dynamics present both risks and opportunities for Exxaro, reinforcing the importance of our operational excellence, the importance of cost discipline, and the flexibility that we have in our portfolio and as we diversify the portfolio. Again, as this backdrop, the strong operational performance delivered during the H1 clearly positions Exxaro well for the remainder of the year, and we therefore reiterate our coal production, sales, and coal export sales are in line with the guidance we gave, including the sustaining capital requirements when Riaan spoke about the track and shovel project at Grootegeluk. Compared to the pre-close guidance of 830 megawatts to 860 gigawatt hours, we revise our renewable energy generation to between 800 and 830 gigawatt hours. This is mainly due to the weaker wind resource conditions that we are seeing, and thankfully, we have the dovetailing nature of solar that I spoke about earlier.

Speaker #1: Again, against this backdrop, the strong operational performance delivered during the first half clearly positions Exxaro well for the remainder of the year, and we therefore reiterate our coal production, sales, and coal export sales in line with the guidance we gave, including the sustaining capital requirements when Rian spoke about the truck and shovel project at GG.

Speaker #1: Compared to the pre-close guidance of 830 megawatt to 860 gigawatt hours, we revise our renewable energy generation to between 800 and 830 gigawatt hours.

Ben Magara: Compared to the pre-close guidance of 830 megawatts to 860 gigawatt hours, we revise our renewable energy generation to between 800 and 830 gigawatt hours. This is mainly due to the weaker wind resource conditions that we are seeing, and thankfully, we have the dovetailing nature of solar that I spoke about earlier.

Speaker #1: This is mainly due to the weaker wind resource conditions that we are seeing, and thankfully we have the dovetailing nature of solar that I spoke about earlier.

Speaker #1: Importantly and for the first time our guidance now incorporates manganese reflecting the growing contribution of our metals business pillar to our diversified portfolio. As I highlighted and we said this at the capital markets where finalizing the feasibility study to replace our ERP system and look at all the options because really we are seeing opportunities of innovation reduced costs to the extent of a lot of systems and IT systems we would have and our current system is a legacy system and we are assessing the potential and replacement opportunities that we may get out of that.

Ben Magara: Importantly, for the first time, our guidance now incorporates manganese, reflecting the growing contribution of our metals business pillar to our diversified portfolio. As I highlighted, we said this at the capital markets, we are finalizing the feasibility study to replace our ERP system and look at all the options because really we are seeing opportunities of innovation, reduced costs to the extent of a lot of systems and IT systems we would have. Our current system is a legacy system, and we are assessing the potential and replacement opportunities that we may get out of that without compromising shareholder returns. Overall, we remain focused on disciplined execution and delivering against our full-year commitments. I would really like to reflect for a moment on the positive social impact your organization continues to create. Our strong performance during the H1 extends beyond just financial and operational results.

Speaker #1: Without compromising shareholder returns, overall, we remain focused on disciplined execution and delivering against our full-year commitments. I would really like to reflect for a moment on the positive social impact your organization continues to create.

Speaker #1: Our strong performance during the half extends beyond just financial and operational results. We continue, as we have done over the past two decades, to create value for all our stakeholders.

Ben Magara: Our strong performance during the H1 extends beyond just financial and operational results. We continue, as we have done over the past two decades, to create value for all our stakeholders. I spoke about Sis G being with us, and for completeness Geraldine Fraser-Moleketi as chair of our Social, Ethics and Responsibility Committee. This is an area of focus continuously in terms of when we sit at the subcommittee and in the full board. During the H1, we created approximately ZAR 10 billion value across both for our employees, our shareholders, government, and our financiers. Alongside the ZAR 1.4 billion in social impact spend on our host communities and also our labor-sending areas. We opened in Koffiefontein recently our skills sharing project, which really has provided some much-needed opportunities for our labor-sending area in the Eastern Cape.

Ben Magara: We continue, as we have done over the past two decades, to create value for all our stakeholders. I spoke about Sis G being with us, and for completeness Geraldine Fraser-Moleketi as chair of our Social, Ethics and Responsibility Committee. This is an area of focus continuously in terms of when we sit at the subcommittee and in the full board. During the H1, we created approximately ZAR 10 billion value across both for our employees, our shareholders, government, and our financiers. Alongside the ZAR 1.4 billion in social impact spend on our host communities and also our labor-sending areas. We opened in Koffiefontein recently our skills sharing project, which really has provided some much-needed opportunities for our labor-sending area in the Eastern Cape. We maintained I thought Underwood clapped because I think that's his village.

Speaker #1: I spoke about CCG being with us, and for completeness, Geraldine Fraser-Moleketi as chair of our SEC committee. This is an area of focus continuously, in terms of when we seated the subcommittee and in the full board.

Speaker #1: During the first half, we created approximately R10 billion in value across both our employees, our shareholders, government, and our financiers. Alongside the R1.4 billion in social impact spend on our host communities and also our labor-sending areas.

Speaker #1: We opened in Kofimva, but recently our ship sharing project, which really has provided some much-needed opportunities for our labor-sending area in the Eastern Cape.

Speaker #1: We maintained a, I thought, Underwood clip—because I think that is village. We maintained our Level 2 triple BEE status and strengthened the long-term sustainability of our coal operations through the improved and amended Belfast integrated water use license that I spoke about earlier, and also the signing of the Matla Coal Supply Agreement with Eskom.

Ben Magara: We maintained I thought Underwood clapped because I think that's his village. We maintained our level 2 BBBEE status and strengthened the long-term sustainability of our coal operations through the improved and amended Belfast integrated water use license that I spoke about earlier, and also the signing of the Matla coal supply agreement with Eskom. This all supports jobs and the economies of our host communities. We delivered strong environmental performance with the LSP, as I spoke about, the solar plant contributing improved carbon intensity and improved energy intensity in reducing costs. These outcomes reflect our continued focus on delivering positive social and environmental impact while creating the long-term value for all our stakeholders. I particularly like the next picture. Let me assure you, it was not AI-generated. It might be African intelligence, but it's not AI-generated.

Ben Magara: We maintained our level 2 BBBEE status and strengthened the long-term sustainability of our coal operations through the improved and amended Belfast integrated water use license that I spoke about earlier, and also the signing of the Matla coal supply agreement with Eskom. This all supports jobs and the economies of our host communities. We delivered strong environmental performance with the LSP, as I spoke about, the solar plant contributing improved carbon intensity and improved energy intensity in reducing costs. These outcomes reflect our continued focus on delivering positive social and environmental impact while creating the long-term value for all our stakeholders. I particularly like the next picture. Let me assure you, it was not AI-generated. It might be African intelligence, but it's not AI-generated. It captures the coexistence of coal-fired power generation and renewable energy in our just energy transition.

Speaker #1: This all supports jobs and the economies of our host communities. We delivered strong environmental performance with the LSP, as I spoke about—the solar plant contributing to improved carbon intensity and improved energy intensity, and reducing costs.

Speaker #1: These outcomes reflect our continued focus on delivering positive social and environmental impact while creating long-term value for all our stakeholders. I particularly like the next picture.

Speaker #1: Let me assure you, it was not AI-generated. It might be African intelligence, but it's not AI-generated. It captures the co-existence of coal-fired power generation and renewable energy in our just energy transition.

Ben Magara: It captures the coexistence of coal-fired power generation and renewable energy in our just energy transition. That's a picture at Grootegeluk with a coal-fired power station in the background, and our 129,000 panels supplying 68 megawatts to GG. This is the reality of our country's energy future, a diversified mix, and Exxaro is well-positioned to be a market leader in both. Our diversified natural resources business has delivered during the H1, and that's why we call ourselves natural resources. Mining, wind, and solar. We achieved our best safety record, which expectantly delivered stronger production performance across the business within the cost inflation I spoke about. The coal business EBITDA went up by 5%.

Speaker #1: That's a picture at Kruitgelek, with a coal-fired power station in the background and our 129,000 panels supplying 68 megawatts to GG.

Ben Magara: That's a picture at Grootegeluk with a coal-fired power station in the background, and our 129,000 panels supplying 68 megawatts to GG. This is the reality of our country's energy future, a diversified mix, and Exxaro is well-positioned to be a market leader in both. Our diversified natural resources business has delivered during the H1, and that's why we call ourselves natural resources. Mining, wind, and solar. We achieved our best safety record, which expectantly delivered stronger production performance across the business within the cost inflation I spoke about. The coal business EBITDA went up by 5%. The renewable energy business, the EBITDA went up by 2%, contributing to the essentially flat EBITDA that we showed you earlier, mainly impacted by the investment, or call it once-off acquisition costs in manganese.

Speaker #1: This is the reality of our country's energy future—a diversified mix—and Exxaro is well positioned to be a market leader in both. Our diversified natural resources business has delivered during the half.

Speaker #1: And that's why we call ourselves natural resources: mining, wind, and solar. We achieved our best safety record, which, expectedly, delivered stronger production performance across the business, within the cost inflation I spoke about.

Speaker #1: The coal business EBITDA went up by 5%. The renewable energy business EBITDA went up by 2%, contributing to the essentially flat EBITDA that we showed you earlier, mainly impacted by the investment, or call it once-off acquisition costs, in manganese.

Ben Magara: The renewable energy business, the EBITDA went up by 2%, contributing to the essentially flat EBITDA that we showed you earlier, mainly impacted by the investment, or call it once-off acquisition costs in manganese. We are seeing the early results of our strategy execution from the performance of the coal business to the growth of our renewable energy, and for the first time, to the manganese contributing both to income and operating contributions. As I said, our once-off transaction costs masked the great production, especially in coal, renewable energy, and manganese. Our balance remains strong, and we continue to apply our capital allocation framework with discipline.

Speaker #1: We are seeing the early results of our strategy execution, from the performance of the coal business to the growth of our renewable energy, and for the first time, the manganese contributing both to income and operating contributions.

Ben Magara: We are seeing the early results of our strategy execution from the performance of the coal business to the growth of our renewable energy, and for the first time, to the manganese contributing both to income and operating contributions. As I said, our once-off transaction costs masked the great production, especially in coal, renewable energy, and manganese. Our balance remains strong, and we continue to apply our capital allocation framework with discipline. Not only because some people we have here have got deep pockets but extremely very short hands on the left, giving us really the flexibility that we need to track the consistent returns to our shareholders that we need while still funding the strategic priorities. Kopis, thank you. Allow me the opportunity to thank again, as Riaan said earlier, our fellow employees for a job well done.

Speaker #1: And as I said, our once-off transaction costs masked the great production, especially in coal, renewable energy, and manganese. Our balance sheet remains strong, and we continue to apply our capital allocation framework with discipline.

Speaker #1: Not only because some people we have here have got deep pockets, but extremely very short hands on the left, giving us really the flexibility that we need to track the consistent returns to our shareholders that we need, while still funding the strategic priorities, copies.

Ben Magara: Not only because some people we have here have got deep pockets but extremely very short hands on the left, giving us really the flexibility that we need to track the consistent returns to our shareholders that we need while still funding the strategic priorities. Kopis, thank you. Allow me the opportunity to thank again, as Riaan said earlier, our fellow employees for a job well done. We did it safely, and that is most critical to me, your Chief Executive. We had excellent production. You contained your costs despite the pressures of diesel to still be within cost inflation. Indeed, I am proud and pleased that we continue to do the best work of our lives at Exxaro. This is who we are today.

Speaker #1: Thank you. Allow me the opportunity to thank, again, as Rian said earlier, our fellow employees for a job well done. We did it safely.

Ben Magara: We did it safely, and that is most critical to me, your Chief Executive. We had excellent production. You contained your costs despite the pressures of diesel to still be within cost inflation. Indeed, I am proud and pleased that we continue to do the best work of our lives at Exxaro. This is who we are today. If I was to share with you the contribution of our growing energy and future-facing metals business, we want them to account for over 50% of our group earnings by 2030. This way, it will reduce our group carbon intensity. For the first time, we have manganese firmly part of that picture. Today, coal contributes around three-quarters of those group earnings, and by 2030, we expect that to be below 50%, not by reducing coal, but by growing the other buckets.

Speaker #1: And that is most critical to me, your Chief Executive. And we produced product, we had excellent production, you contained your costs despite the pressures of diesel, to still be within cost inflation.

Speaker #1: Indeed, I am proud and pleased that we continue to do the best work of our lives at Exxaro. This is who we are today. If I were to share with you the contribution of our growing energy and future-facing metals business, we want them to account for over 50% of our group earnings by 2030.

Ben Magara: If I was to share with you the contribution of our growing energy and future-facing metals business, we want them to account for over 50% of our group earnings by 2030. This way, it will reduce our group carbon intensity. For the first time, we have manganese firmly part of that picture. Today, coal contributes around three-quarters of those group earnings, and by 2030, we expect that to be below 50%, not by reducing coal, but by growing the other buckets. Ultimately reducing our carbon intensity as we aim for carbon neutrality by 2050. This slide 29 really anchors our strategy in the three pillars of coal, renewable energy, and the future-facing minerals. Ladies and gentlemen, this is Exxaro today, and this is the business we are building for tomorrow.

Speaker #1: This way, it will reduce our group carbon intensity. But for the first time, we have the manganese family as part of that picture. So today, coal contributes around three-quarters of those group earnings, and by 2030, we expect that to be below 50%—not by reducing coal, but by growing the other buckets.

Speaker #1: And as I said, ultimately reducing our carbon intensity as we aim for our carbon neutrality by 2050. This slide, 29, really anchors our strategy in the three pillars of coal, renewable energy, and the future-facing minerals.

Ben Magara: Ultimately reducing our carbon intensity as we aim for carbon neutrality by 2050. This slide 29 really anchors our strategy in the three pillars of coal, renewable energy, and the future-facing minerals. Ladies and gentlemen, this is Exxaro today, and this is the business we are building for tomorrow. A diversified natural resources champion not only providing the earnings and reducing carbon intensity, but providing the career opportunities of many young and upcoming people to make sure that we remain a key driver to our country's economy. We are anchored by long life, high quality, and cash generative coal business, a growing renewable energy business and future facing metals that are built globally with a significant manganese exposure I spoke about.

Speaker #1: Ladies and gentlemen, this is Exxaro today, and this is the business we are building for tomorrow. A diversified natural resources champion, not only providing earnings and reducing carbon intensity, but providing career opportunities for many young and upcoming people to make sure that we remain a key driver in our country's economy.

Ben Magara: A diversified natural resources champion not only providing the earnings and reducing carbon intensity, but providing the career opportunities of many young and upcoming people to make sure that we remain a key driver to our country's economy. We are anchored by long life, high quality, and cash generative coal business, a growing renewable energy business and future facing metals that are built globally with a significant manganese exposure I spoke about. As we look ahead, we will continue to anchor our coal business, and we will continue to drive in line with our prudent and disciplined capital allocation, underpinned by our people and the conviction to achieve zero harm and to do this ethically.

Speaker #1: We are anchored by a long-life, high-quality, and cash-generative coal business, a growing renewable energy business, and future-facing metals that are built globally, with a significant manganese exposure I spoke about.

Speaker #1: So, as we look ahead, we will continue to anchor our coal business, and we'll continue to drive in line with our prudent and disciplined capital allocation.

Ben Magara: As we look ahead, we will continue to anchor our coal business, and we will continue to drive in line with our prudent and disciplined capital allocation, underpinned by our people and the conviction to achieve zero harm and to do this ethically. These three business pillars of coal, renewable energy, and future facing metals, position Exxaro continuously as a consistent dividend payer, sustained for growth. We thank you for your attention this morning. Thank you very much. Now joining us now to take us through any discussions, questions, and answers that you may have for us. Thank you.

Speaker #1: Underpinned by our people and the conviction to achieve zero harm and to do this ethically. To do this ethically. These three business pillars of coal renewable energy and manganese and and and future facing metals position Exxaro continuously as a consistent dividend payer sustained for growth and with thank you for your attention this morning.

Ben Magara: These three business pillars of coal, renewable energy, and future facing metals, position Exxaro continuously as a consistent dividend payer, sustained for growth. We thank you for your attention this morning. Thank you very much. Now joining us now to take us through any discussions, questions, and answers that you may have for us. Thank you.

Speaker #1: Thank you very much. And I'll be joining us now to take us through any discussion, questions, and answers that you may have for us.

Speaker #1: Thank you. Thank you. Thank you so much. Thank you. Thank you so much, Ben. Thank you, Rian. We are now going to go to the Q&A, and like we always do, please raise your hand.

Anda Mwanda: Thank you, Ben. Thank you so much. Thank you. Thank you so much, Ben, and thank you, Riaan. We are now going to go to the Q&A, and like we always do, please raise your hand. We have roaming mics in the room. We are going to start in the room. Please remember to introduce yourself and the company that you represent before you ask your question, and then I will recognize you. From the room, we are going to go to the online platform, and please remember to also post your questions there, and we will read them out here. Thank you so much. I think we have a question from Tim Clark.

Riaan Koppeschaar: Thank you, Ben. Thank you so much.

Anda Mwanda: Thank you. Thank you so much, Ben, and thank you, Riaan. We are now going to go to the Q&A, and like we always do, please raise your hand. We have roaming mics in the room. We are going to start in the room. Please remember to introduce yourself and the company that you represent before you ask your question, and then I will recognize you. From the room, we are going to go to the online platform, and please remember to also post your questions there, and we will read them out here. Thank you so much. I think we have a question from Tim Clark.

Speaker #1: We have roaming mics in the room. We're going to start in the room. Please remember to introduce yourself and the company that you represent before you ask your question, and then I'll recognize you.

Speaker #1: And then from the room we are going to go to to the to the online platform and we please remember to also post your questions there and we'll we'll read them out here.

Speaker #1: And thank you so much. I think we have a question from Tim Clark.

Tim Clark: Thank you. Congrats on the result. It is Tim Clark from SBG Securities. I have got a few questions. Let us start off with the Waterberg rail extract. Really good numbers coming out of exports out of Grootegeluk. At the Capital Markets Day, my sense was that you were a little bit worried about Transnet coming down from Grootegeluk to Oris. The results seem to be better than that. So I wonder if we could just get a bit of an update on the outlook for rail out of Waterberg. My second question is really just on India. It is quite low in the mix compared to a couple of your peers out of South Africa, and you grew quite strongly in Japan.

Speaker #2: Thank you. Congrats on the result. It's Tim Clark from SBG Securities. I've got a few questions. Let's just start off with the Waterberg Rail Extractor.

Speaker #2: Really good numbers coming out of exports out of GG. At the capital markets day, my sense was that you were a little bit worried about Transnet coming down from GG to ERCIS.

Speaker #2: It the results seem to be better than that. So I wonder if we could just get a bit of an update on the the sort of outlook for for rail out of out of out of Waterberg.

Speaker #2: My second question is really just on India. It's quite low in the mix compared to a couple of your peers out of South Africa.

Speaker #2: And you grew quite strongly in in Japan. So I wonder if you could give us a couple of thoughts on you know the coal that you're producing the marketing that you're doing and then maybe if if we're lucky just you know because the markets are so volatile what you're currently seeing in the market what what your your sense of of coal demand is at the moment.

Tim Clark: So I wonder if you could give us a couple of thoughts on the coal that you are producing, the marketing that you are doing, and maybe if we are lucky, just because the markets are so volatile, what you are currently seeing in the market, what your sense of coal demand is at the moment. My last question, just on manganese. If I look at the cash flow statement and I add up all the numbers that have got note 22, which is the acquisition of manganese attached to them, I get to ZAR 12.95, so let us call it ZAR 13 billion, which was a bit more than I expected in cash outflow for manganese, so for the Tshipi part of manganese. So I wonder if you could talk to us just about that and how much was spent. Maybe there were some adjustments there that I do not understand.

Speaker #2: And then my last question just on manganese if I look at the cash flow statement and I add up all the numbers that I've got note 22 which is the acquisition of manganese attached to them I get to 12.95 so let's call it 13 billion rand which was a bit more than I expected in in in in cash outflow for manganese.

Tim Clark: If I look at the cash flow statement and I add up all the numbers that have got note 22, which is the acquisition of manganese attached to them, I get to ZAR 12.95, so let us call it ZAR 13 billion, which was a bit more than I expected in cash outflow for manganese, so for the Tshipi part of manganese. So I wonder if you could talk to us just about that and how much was spent. Maybe there were some adjustments there that I do not understand. Secondly, just a bit of an update on Mokala, if you could. Just what is happening, what you are expecting in terms of closure of the final leg. Thank you.

Speaker #2: So, for the chippy part of manganese, I wonder if you could talk to us just about that and how much was spent.

Speaker #2: Maybe there was some adjustments there that I don't understand. and then secondly just just a bit of an update on McCarter if you if you if you could just what's happening what you're expecting in terms of closure of the final leg.

Tim Clark: Secondly, just a bit of an update on Mokala, if you could. Just what is happening, what you are expecting in terms of closure of the final leg. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you, Tim. Thanks, Tim. Rian will touch on the manganese, and McCarter, let me just go through—you’re right about our concerns at the Capital Markets Day on Krutkhalak.

Anda Mwanda: Thank you, Tim.

Ben Magara: Thanks, Tim. Riaan will touch on the manganese and Mokala. Let me just go through. You are right about our concerns at the Capital Markets Day on Grootegeluk. I think those concerns are bearing fruit. It was simply a morph to give a sense of what the priorities were and how focused our teams were to get that C-section line going. I must say that the performance of the joint team that we put together between Transnet and Exxaro to drive that performance has been very commendable, and that is why you see the improvements. Never mind the fact that with the rail wash away last year, we continuously see that improvement, even if you compare the H2 of last year to this H1. There is continued improvement and focus.

Speaker #1: And I think those concerns are bearing fruit, and it was simply more to give a sense of what the priorities were and how focused our teams were to get that C-section line going.

Speaker #1: And I must say that the performance of the joint team that we put together between Transnet and Exxaro to drive that performance has been very commendable, and that's why you see the improvements.

Speaker #1: Never mind the fact that we had the rail washaway last year, we continuously see that improvement. Even if you compare the second half of last year to this half.

Speaker #1: There is continued improvement and focus. So and if you estimated around the number of trains per week by the time when we were talking we were possibly playing around three trains a week we are seeing now growingly four five trains a week our aspiration is to get to seven even higher so we and that there's no cigar yet but I think we are very pleased with the progress that we have made Tim so maybe that covers on the logistics side because the more we can do that obviously you know it that the profitable the most profitable route is is is is retail bay.

Ben Magara: If you estimated around the number of trains per week, by the time when we were talking, we were possibly playing around three trains a week. We are seeing now growingly four or five trains a week. Our aspiration is to get to seven, even higher. There is no cigar yet, but I think we are very pleased with the progress that we have made, Tim. Maybe that covers on the logistics side, because the more we can do that, obviously, you know it, that the most profitable route is Richards Bay, and especially if directly railed. We continue to put that effort, and I am very pleased that, as much as our WhatsApps keep ringing with Transnet, we are actually seeing it in the numbers. That is very pleasing.

Speaker #1: And especially if directly railed. So we continue to put that effort in, and I'm very pleased that as much as our WhatsApps keep ringing with Transnet, we are actually seeing it in the numbers.

Speaker #1: so so that's very pleasing. On the marketing side I think the volatility of the prices and especially when you start seeing prices rising never mind the fact that India have lower steel demand and they have produced more locally in in in India so it means they've needed less coal.

Ben Magara: On the marketing side, I think the volatility of the prices, and especially when you start seeing prices rising, never mind the fact that India have lower steel demand, and they have produced more locally in India, so it means they have needed less coal. But whenever we see high prices, the Indian customers tend to withdraw to some extent. You will see that if you compare, as you said, around the peers, that the price realization of Exxaro is possibly north of 90%, and the price realization of peers, as you put it, is a lot lower than 90%. Which means they are possibly still selling into a much less margin, less profitable market. But our teams and Fortune and Saki and Lester, they work hard at looking for alternatives.

Speaker #1: But whenever we see high prices, the Indian customers tend to withdraw to some extent. So, you will see that if you compare, as you said, around the peers, the price realization of Exxaro is possibly north of 90%, and the price realization of our peers, as you put it, is a lot lower than 90%, which means they're possibly still selling into a much less margin, less profitable market.

Speaker #1: But our teams and Fortune and Saki and Lester they work hard at looking for alternatives. So what we saw in Taiwan and the growth you have seen in in Japan has given us real comfort that and because they are more the Japanese market is more sticky and once you have a premium product that they can have a life of mine kind of approach we we saw almost record tenure of contracts in Japan and for competitive purposes I won't I won't say the number but I think that it's it's very helpful to see Japanese and Taiwan growing because there they need the RB1 and we have that with our product mix and we've been able to take advantage of that with a much higher price realization than our peers.

Ben Magara: What we saw in Taiwan and the growth we have seen in Japan has given us real comfort. Because the Japanese market is more sticky, once you have a premium product, they can have a life of mine kind of approach. We saw almost record tenure of contracts in Japan. For competitive purposes, I will not say the number, but I think that it is very helpful to see Japanese and Taiwan growing because there they need the RB1, and we have that with our product mix. We have been able to take advantage of that with a much higher price realization than our peers. Thanks, Tim. I hope that covers those two. Kopis will cover the manganese questions.

Ben Magara: Because the Japanese market is more sticky, once you have a premium product, they can have a life of mine kind of approach. We saw almost record tenure of contracts in Japan. For competitive purposes, I will not say the number, but I think that it is very helpful to see Japanese and Taiwan growing because there they need the RB1, and we have that with our product mix. We have been able to take advantage of that with a much higher price realization than our peers. Thanks, Tim. I hope that covers those two. Kopis will cover the manganese questions.

Speaker #1: Thanks, Tim. I hope that covers those two, and copies will cover the manganese questions.

Speaker #2: Yes, so on McCarter, the agreement to have Glencore, I think it's progressing well. We've reached agreement on most of the outstanding issues.

Pieter Adriaan Koppeschaar: On Mokala, the agreement with Glencore, I think it is progressing well. We have reached agreement on most of the outstanding issues. Hopefully, we should be able to conclude that and put it to bed before the long-stop date that we indicated to the market. I think it was February 2027.

Riaan Koppeschaar: On Mokala, the agreement with Glencore, I think it is progressing well. We have reached agreement on most of the outstanding issues. Hopefully, we should be able to conclude that and put it to bed before the long-stop date that we indicated to the market. I think it was February 2027.

Speaker #2: So, hopefully, we should be able to conclude that and put it to bed before the long stop date that we indicated to the market.

Speaker #2: I think it was February 2027. So that is on McCarter. then on on on on the cash flow the 10.6. So remember included in that cash flow was one and a half billion for Jupiter about 1.5 billion for the hottest hell the 9% in in hottest hell and then the the the balance will be TP mine and then also the marketing company and then the the the two and a half billion is actually almost in and outflow because we refinanced that debt in the company subsequent to 30 June.

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: That is on Mokala. On the cash flow, the ZAR 10.6 billion. Remember, included in that cash flow was ZAR 1.5 billion for Jupiter, about ZAR 1.5 billion for the Hotazel, the 9% in Hotazel, and then the balance will be TP mine and then also the marketing company. The ZAR 2.5 billion is actually almost an in and an outflow because we refinanced that debt in the company subsequent to 30 June. Just to give context on that.

Riaan Koppeschaar: That is on Mokala. On the cash flow, the ZAR 10.6 billion. Remember, included in that cash flow was ZAR 1.5 billion for Jupiter, about ZAR 1.5 billion for the Hotazel, the 9% in Hotazel, and then the balance will be TP mine and then also the marketing company. The ZAR 2.5 billion is actually almost an in and an outflow because we refinanced that debt in the company subsequent to 30 June. Just to give context on that.

Speaker #2: Just to give context on that.

Speaker #1: Rian. Brian, you can give to Brian.

Ben Magara: Thanks, Riaan. Brian, you can give to Brian.

Anda Mwanda: Thanks, Riaan. Brian, you can give to Brian.

Brian Morgan: Brian Morgan, RMB Morgan Stanley. Just two questions from my side. First is, Riaan, you left about ZAR 4 billion of cash on the balance sheet. Is that the new cash buffer, the new 12 to 15, or is that Mokala?

Speaker #3: Brian Morgan, R&B Morgan Stanley. Just two questions from my side. First is, Rian, you left about $4 billion of cash on the balance sheet. Is that the new cash buffer, the new $12 to $15, or is that McCarter?

Speaker #1: No.

Pieter Adriaan Koppeschaar: No.

Riaan Koppeschaar: No.

Speaker #3: Just maybe, just test us about that.

Brian Morgan: Just maybe chat to us about that.

Speaker #1: Yeah. So remember, even at the capital markets, I think at the capital markets, the cash was more or less at the same level.

Pieter Adriaan Koppeschaar: Well, remember, even at the Capital Markets Day, I think at the Capital Markets Day, the cash was more or less at the same level. We said the cash on the balance sheet is earmarked for Mokala. Mokala, really the maximum, depending on whether the tag-along rights, et cetera, are exercised, is ZAR 4 billion. The total acquisition on energy is ZAR 1.8 or ZAR 1.9 billion. That still needs to close. Our equity contributions for Kareebosch and also the other energy transaction is about ZAR 1 billion. What we then say is the intention is to run the business cash free, debt free. You only really get into debt if you do acquisitions or growth.

Riaan Koppeschaar: Well, remember, even at the Capital Markets Day, I think at the Capital Markets Day, the cash was more or less at the same level. We said the cash on the balance sheet is earmarked for Mokala. Mokala, really the maximum, depending on whether the tag-along rights, et cetera, are exercised, is ZAR 4 billion. The total acquisition on energy is ZAR 1.8 or ZAR 1.9 billion. That still needs to close. Our equity contributions for Kareebosch and also the other energy transaction is about ZAR 1 billion. What we then say is the intention is to run the business cash free, debt free. You only really get into debt if you do acquisitions or growth.

Speaker #1: So we said the cash on the balance sheet is earmarked for McCarter. So McCarter, really, the maximum depending on whether the tag-along rights, etc., are exercised, is $4 billion.

Speaker #1: The Toro acquisition on Energy is R1.8 or R1.9 billion. That still needs to close. And then our equity contributions for Korea Boss and also the other energy transaction is about R1 billion.

Speaker #1: So, what we then say is that the intention is to run the business cash-free, debt-free. So you only really get into debt if you do acquisitions or for growth.

Speaker #3: Thank you. And and then just the next question just just further on that that Waterberg Rail the C-section story could you flesh us a little bit about you know what's happened is it is it signaling is it more locos is it more transects you know just maybe a little bit more granularity on because it's a big prize right.

Brian Morgan: Cool. Thank you. Just the next question, just further on that Waterberg rail, the C-section story. Could you flesh out a little bit about what has happened? Is it signaling? Is it more locos? Is it more train sets? Just maybe a little more granularity on, because it is a big prize, right?

Speaker #1: It is indeed a big prize, Brian. I think predominantly it's operating efficiencies, cycle times for the trains. And if you improve cycle times, you can get more trains on it.

Ben Magara: It is indeed a big prize, Brian. I think predominantly it is operating efficiencies, cycle times for the trains. If you improve cycle times, you can get more trains on it. Because it is a bit of a distant setup, the prioritization is possibly much better in the Mpumalanga area for Transnet. Once you send a train more to the Waterberg, it takes a bit longer. So having improved some cycle times, operational efficiencies, I think we did not have a wash away, as we said, for this year. So there is also some underlying operating and fixing of infrastructure. Predominantly it is a lot to do with improvement of cycle times and increasing of the number of trains per week, which as I said to you, we are lying somewhere around two, three.

Speaker #1: And because it's a bit of a distant setup, the prioritization is possibly much better in the Mpumalanga area for Transnet, and once you send a train more to the Waterberg, it takes a bit longer.

Speaker #1: So, having improved some cycle times and operational efficiencies, I think we didn't have a washaway, as we said, for this year. There is also some fixing of infrastructure, but predominantly it's a lot to do with improvement of cycle times and increasing the number of trains per week, which, as I said to you, were lying somewhere around two to three. Now they're sitting around four to five, and if we can get another improvement to five, six, or seven, then I think we continue to be on the right path.

Ben Magara: Predominantly it is a lot to do with improvement of cycle times and increasing of the number of trains per week, which as I said to you, we are lying somewhere around two, three. Now they are sitting around four, five. If we can get another improvement to five, six, seven, then I think we continue to be on the right path. We know the export optionality of Exxaro and GG, and we still have a lot of scope to do that.

Ben Magara: Now they are sitting around four, five. If we can get another improvement to five, six, seven, then I think we continue to be on the right path. We know the export optionality of Exxaro and GG, and we still have a lot of scope to do that.

Speaker #1: We know the export optionality of Exxaro and GG, and we still have a lot of scope to do that.

Speaker #2: Exactly.

Pieter Adriaan Koppeschaar: Exactly.

Riaan Koppeschaar: Exactly.

Speaker #1: Thank you, Ben. We have another question from Tobela. Okay, morning everyone. It's Tobela Petros from Nedbank CIB. I've got two sets of questions. I'd like to start with Cole first and then get your answers, and then come back again.

Ben Magara: Thank you, Brian. We have another question from Thobela.

Anda Mwanda: Thank you, Brian. We have another question from Thobela.

Anda Mwanda: Okay. Morning, everyone. It is Thobela Piot from Nedbank CIB. I have two sets of questions. I would like to start with coal first and then get your answers, then come back again. The first one on coal is just with regards, again, I think this Waterberg story. With that 50% improvement, where does that put you in terms of your capacity for that Waterberg rail capacity? Where does that put you and how far are you to maxing your capacity there? The second one is on your realized pricing, which was 5% down relative to previous reporting period. It is a bit surprising, especially given that you have increased your RB1 contribution. Can you just maybe give us more clarity as to what is it about marketing and your realized pricing that occurred in this H1? Thank you.

Thobela Bixa: Okay. Morning, everyone. It is Thobela Piot from Nedbank CIB. I have two sets of questions. I would like to start with coal first and then get your answers, then come back again. The first one on coal is just with regards, again, I think this Waterberg story. With that 50% improvement, where does that put you in terms of your capacity for that Waterberg rail capacity? Where does that put you and how far are you to maxing your capacity there? The second one is on your realized pricing, which was 5% down relative to previous reporting period. It is a bit surprising, especially given that you have increased your RB1 contribution. Can you just maybe give us more clarity as to what is it about marketing and your realized pricing that occurred in this H1? Thank you.

Speaker #1: So the first one on coal is just with regards—again, I think this Waterberg story with that 50% improvement, you know, where does that put you in terms of your capacity for that Waterberg rail capacity? Where does that put you, and how far are you, you know, to marketing your capacity there? And then the second one is on your realized pricing, which, you know, was 5% down relative to the previous reporting period.

Speaker #1: It is a bit surprising, especially given that you have increased your RB1 sort of contribution. Can you just maybe give us more clarity as to what it is about marketing and your realized pricing that occurred in this half?

Speaker #1: Thank you. Thank you. I'll do the C line and then you can pick up on the realized prices, I think. The Waterberg line—that C-section—has about a 3.9, if you are Rian I call it 4 million ton capacity, and of that 4 million tons, there's some sharing between the ferrochrome industry and the coal industry.

Ben Magara: Thank you. I will do the C-line, and then you can pick up on the realized prices, I think. Then the Waterberg line, that C-section, has about a 3.9, if you are Riaan, I call it 4 million ton capacity. And of that 4 million tons, there is some sharing between the ferrochrome industry and the coal industry, because that line comes through Amandelbult, Rustenburg, then down. If you look at what we could do there is no doubt from, if you look at the period of Russia, Ukraine, we moved a lot more. So if you say the half we produced, we moved 600,000 tons there right now. And you can multiply by 2 and you get to 1.2. Can we get even higher? Absolutely. So we think that C-section line still has so much to go to the 4 million ton capacity of the rail that it has got.

Speaker #1: Because that line comes through Amanda Bold Rustenberg, then down. If you look at what we could do there, there is no doubt—if you look at the period of Russia-Ukraine, we moved a lot more.

Speaker #1: So if you say the half we produced, we moved 6.6 million tons. We moved 600,000 tons there right now, and you can multiply by two and you get to 1.2.

Speaker #1: Can we get even higher? Absolutely. So, we think the Waterberg, that C-section line, still has so much to go to reach the 4 million ton capacity of the rail that it has got.

Ben Magara: So we think that C-section line still has so much to go to the 4 million ton capacity of the rail that it has got. It is possibly sitting at about a half right now as we speak, and we take a portion of that. So the work that we are doing with Transnet, with the Department of Transport on both the public sector partnership and the customer collaboration program with Transnet is geared, and you are aware of those train operating companies that were brought in. So there are opportunities given the appetite to privatize and to also bring in more players. And we are talking to a few of those players to see how we can improve over the long term. In the short term, I think we have that scope as we talk about possibly move from 5 trains a week to about 7 trains a week.

Speaker #1: It's possibly sitting at about a half right now as we speak. And we take a portion of that. So the work that we're doing with Transnet, with the Minister of Transport, on both the public sector partnership and the customer collaboration program with Transnet, is geared—and you are aware of those train operating companies that were brought in.

Ben Magara: It is possibly sitting at about a half right now as we speak, and we take a portion of that. So the work that we are doing with Transnet, with the Department of Transport on both the public sector partnership and the customer collaboration program with Transnet is geared, and you are aware of those train operating companies that were brought in. So there are opportunities given the appetite to privatize and to also bring in more players. And we are talking to a few of those players to see how we can improve over the long term. In the short term, I think we have that scope as we talk about possibly move from 5 trains a week to about 7 trains a week.

Speaker #1: So there are opportunities given the appetite to privatize and to also bring in more players. And we're talking to a few of those players to see how we can improve.

Speaker #1: Over the long term, in the short term I think we have that scope as we talk about possibly moving from five trains a week to about seven trains a week.

Speaker #2: And then we move to the.

Thobela Piot: Then we move to the realized-

Thobela Bixa: Then we move to the realized—

Speaker #1: Yeah, so on the 91% realization, what you will normally see when the market goes up is that the customers don't want to lock in the price.

Pieter Adriaan Koppeschaar: Yeah. So on the 91% realization, what you will normally see when the market goes up, certain customers do not want to lock in the price. They want a fixed price. They do not want to be exposed to the index, because you obviously only sometimes settle the contract later on. So in an increasing coal price environment, customers tend, some of them, to want a fixed price. And then in a declining environment, you will see vice versa, where the customers would not want fixed term contracts or fixed price contracts. They would like to have index-based contracts. So I think it is that dynamic.

Riaan Koppeschaar: Yeah. So on the 91% realization, what you will normally see when the market goes up, certain customers do not want to lock in the price. They want a fixed price. They do not want to be exposed to the index, because you obviously only sometimes settle the contract later on. So in an increasing coal price environment, customers tend, some of them, to want a fixed price. And then in a declining environment, you will see vice versa, where the customers would not want fixed term contracts or fixed price contracts. They would like to have index-based contracts. So I think it is that dynamic.

Speaker #1: They want a fixed price. They don't want to be exposed to the index. Because you're obviously only sometimes settle the contract later on. So in a increase in coal price environment customers tend some of them to to want a fixed price and then in a declining environment you'll see vice versa where the customers wouldn't want fixed term contracts or fixed price contracts they would like to have index-based contracts.

Speaker #1: So, I think it's that, that dynamic.

Speaker #2: Yeah.

Anda Mwanda: Yeah. Then, right, we've got other questions, Thobela. Yes, go. On manganese. Just on manganese then, I think your production there was quite strong. Could you just talk to us as to what would you think is your normalized level? I'm saying strong because we know that there's been heavy rains in the Northern Cape and some of the producers within that province have struggled when it comes to production. Then final question is around, I guess, your EBITDA, even if one strips out the one-offs that you spoke to, I don't necessarily think it does speak to your H1 cost curve type of operations. Could you just talk to us as to now that you have sight of the operations, what do you think about the manganese operation?

Ben Magara: Yeah. Then, right.

Speaker #1: Yeah. And then, right, we've got another question for me. Okay, go ahead.

Anda Mwanda: We've got another—

Ben Magara: questions, Thobela.

Thobela Bixa: Yes, go. On manganese. Just on manganese then, I think your production there was quite strong. Could you just talk to us as to what would you think is your normalized level? I'm saying strong because we know that there's been heavy rains in the Northern Cape and some of the producers within that province have struggled when it comes to production. Then final question is around, I guess, your EBITDA, even if one strips out the one-offs that you spoke to, I don't necessarily think it does speak to your H1 cost curve type of operations. Could you just talk to us as to now that you have sight of the operations, what do you think about the manganese operation? Because I think at first glance, it doesn't seem as though they are as good as perhaps initially thought. Thank you.

Speaker #2: On manganese.

Speaker #1: Okay, just on manganese then—I mean, I think your production there was quite strong. Could you just talk to us as to, you know, what you would think is your normalized level? And I’m saying strong because we know that there have been heavy rains in the Northern Cape, and some of the producers within that province have struggled when it comes to production.

Speaker #1: And then final question is around I guess your EBITDA even if one strips out the one offs you know that you spoke to I I don't necessarily think it does speak to you know your sort of first half cost curve type of operations could you just talk to us as to now that you you know you have sight of the operations what I mean what do you think about the manganese operation because I think at first glance it doesn't seem as though you know they are as good as perhaps initially thought.

Ben Magara: Because I think at first glance, it doesn't seem as though they are as good as perhaps initially thought. Thank you. Right. So, okay, so it's production and then the EBITDA in manganese, Thobela, I'm talking about that. Okay. Thanks. I think the production numbers we have guided quite clearly there, Thobela, 3.2 to 3.4, but noting that that guidance is sales, not necessarily production. So you may have some movements around inventory, depending on what you see in terms of market conditions. Is that the appropriate kind of number? We think so. I think a manganese business around 3.5 million tons for Tshipi is possibly ideal given the infrastructure and capacity that exists today. Is there scope for more? We think so, and we continue to explore what is possible. I think the cost position of Tshipi really places it well.

Speaker #1: Thank you.

Speaker #2: Right. Okay. So it's production, and then the EBITDA on manganese Tobela — I'm talking about that. Okay.

Ben Magara: Right. So, okay, so it's production and then the EBITDA in manganese, Thobela, I'm talking about that. Okay.

Speaker #1: Exactly. I think the production numbers we have guided are quite clearly there, Tobela—3.2 to 3.4—but noting that that guidance is sales, not necessarily production.

Thobela Bixa: Thanks.

Ben Magara: I think the production numbers we have guided quite clearly there, Thobela, 3.2 to 3.4, but noting that that guidance is sales, not necessarily production. So you may have some movements around inventory, depending on what you see in terms of market conditions. Is that the appropriate kind of number? We think so. I think a manganese business around 3.5 million tons for Tshipi is possibly ideal given the infrastructure and capacity that exists today. Is there scope for more? We think so, and we continue to explore what is possible. I think the cost position of Tshipi really places it well.

Speaker #1: So, you may have some movements around inventory depending on what you see in terms of market conditions. Is that the appropriate kind of number?

Speaker #1: We think so. So I think a manganese business around the 3.5 million tons for Tsipi is possibly ideal, given the infrastructure and capacity that exists today.

Speaker #1: Is there scope for more? We think so, and we continue to explore what is possible. I think the cost position of Tsipi really places it well.

Speaker #1: The impact of diesel, I think, in that environment is much bigger, because obviously, as much as the manganese line is doing well, the logistics still requires additional—or the maker entitlement is not enough—and therefore, there's still more road transport, which impacts, which has—which gets impact from diesel.

Ben Magara: The impact of diesel, I think in that environment, is much bigger because obviously as much as the manganese line is doing well, the logistics still requires additional, or the Mecca entitlement is not enough, and therefore there's still more road transport, which gets impact from diesel. So there is still cost pressures, mainly driven by diesel, that comes through the manganese side. If you look at the challenges today, I think the cost position of Tshipi, because of its high volume, really places it well on the lower half of the cost curve. We still see benefits in that, and we'll continue to drive.

Speaker #1: So there are still cost pressures, mainly driven by diesel, that come through the manganese side. So if you look at the challenges today, I think the cost position of Tsipi, because of its high volume, really places it well on the lower half of the cost curve.

Speaker #1: We still see benefits in that, and we'll continue to drive—we've got your one here who is nodding—and they continue to drive the efficiencies that we would expect, and the kind of benefits that I think Exxaro's competence and capabilities in bulk mining could be transferred for the benefit of all stakeholders in that business.

Ben Magara: We still see benefits in that, and we'll continue to drive. We've got Joan here, who is nodding, and they continue to drive the efficiencies that we would expect and the kind of benefits that I think Exxaro's competence and capabilities in bulk mining could be transferred for the benefit of all stakeholders in that business. You may want to touch on—

Ben Magara: We've got Joan here, who is nodding, and they continue to drive the efficiencies that we would expect and the kind of benefits that I think Exxaro's competence and capabilities in bulk mining could be transferred for the benefit of all stakeholders in that business. You may want to touch on-

Speaker #1: You may want to touch on.

Speaker #2: Yeah, so obviously also a big impact, similar to, say, your exchange rate.

Pieter Adriaan Koppeschaar: Yeah. So obviously also a big impact similar to SA exchange rate.

Johan Gerhard Meyer: Yeah. So obviously also a big impact similar to SA exchange rate.

Speaker #1: Exactly.

Thobela Piot: Exactly.

Ben Magara: Exactly.

Speaker #2: Remember 100% is is exported. So in EBITDA type of performance exchange rate will play a big role. And as we pointed out logistics cost if you look at manganese a third is basically your on mine cost and two thirds are logistical cost.

Pieter Adriaan Koppeschaar: 100% is exported.

Johan Gerhard Meyer: 100% is exported.

Ben Magara: Yes.

Pieter Adriaan Koppeschaar: So in EBITDA type of performance, exchange rate will play a big role. As we pointed out, logistics cost, if you look at-

Johan Gerhard Meyer: So in EBITDA type of performance, exchange rate will play a big role. As we pointed out, logistics cost, if you look at—

Ben Magara: Yeah

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: manganese, a third is basically your on-mine cost and two-thirds are logistical cost. What we are currently seeing in the world, the CIF price that went up is basically mainly due to the logistic and shipping cost included in that price.

Johan Gerhard Meyer: —manganese, a third is basically your on-mine cost and two-thirds are logistical cost. What we are currently seeing in the world, the CIF price that went up is basically mainly due to the logistic and shipping cost included in that price.

Speaker #2: And what we are currently seeing in the world, so the CIF price that went up is mainly due to the logistics and shipping costs included in that price.

Speaker #1: Okay. And then the EBITDA that manganese doesn't mention, but I'm saying it will flow through, will flow through.

Ben Magara: Okay.

Anda Mwanda: The EBITDA.

Pieter Adriaan Koppeschaar: That is the basis of fact.

Johan Gerhard Meyer: That is the basis of fact. What I am saying, it will flow through too.

Anda Mwanda: What I am saying, it will flow through too.

Pieter Adriaan Koppeschaar: It will flow through. Exactly.

Ben Magara: It will flow through. Exactly.

Speaker #2: Exactly.

Speaker #1: Okay, so I think we can quickly just go online because we've got some questions here, and then we'll come back to the room.

Anda Mwanda: Okay. I think we can quickly just go online because we have some questions here, and then we will come back to the room. Jandre Pretorius from Umthombo Wealth was asking a question around your coal export mix moving to more RB1 looks like a great result. I think the question is around the fact that we have dropped our price realization to 91 despite this. What do you expect then going forward? Of course, we have answered the question on the price realization. Then going forward, what are we expecting? Then a question from Tshilidzi Rabada from the IDC. Many thanks for the update. There are no mention of the China market in your export sales. Is this by design? Then we are getting mixed messages from Transnet of Transnet performance, even from other players. What is Exxaro's medium to long-term view on Transnet performance?

Speaker #1: Jean Jean from Mtombo Wealth was asking a question around your coal export mix moving to more RB1, which looks like a great result. I think the question is around the fact that we've dropped our price realization to $91 despite this.

Speaker #1: What do you expect, then, going forward? Of course, we've answered the question on the price realization, but then going forward, what are we expecting?

Anda Mwanda: Then going forward, what are we expecting? Then a question from Tshilidzi Rabada from the IDC. Many thanks for the update. There are no mention of the China market in your export sales. Is this by design? Then we are getting mixed messages from Transnet of Transnet performance, even from other players. What is Exxaro's medium to long-term view on Transnet performance? Then the other question is on your views on coal markets. How significant is the disruption to thermal coal production in China due to the mine accident, late May? Maybe I will stop there and give the opportunity. Maybe let me just take one more from Shashi. He is asking the questions. Could you please provide us the FY2026 cash cost and maintenance CapEx guide for manganese assets? What is the targeted net debt to EBITDA ratio now for the company?

Speaker #1: And then a question from Chilizi Rabada from the IDC: Many thanks for the update. There is no mention of China, or the China market, in your export sales.

Speaker #1: Is this by design? And then, we are getting mixed messages from Transnet about Transnet’s performance, even from other players. What is Exxaro's medium- to long-term view on Transnet’s performance?

Speaker #1: And then the other question is on your views on coal markets. How significant is the disruption to thermal coal production in China due to the mine accidents in late May?

Anda Mwanda: Then the other question is on your views on coal markets. How significant is the disruption to thermal coal production in China due to the mine accident, late May? Maybe I will stop there and give the opportunity. Maybe let me just take one more from Shashi. He is asking the questions. Could you please provide us the FY2026 cash cost and maintenance CapEx guide for manganese assets? What is the targeted net debt to EBITDA ratio now for the company? I will stop there and then let me just recap, is the outlook on the price realization, then China, then long-term view on Transnet. The coal markets.

Speaker #1: Maybe I will stop there and give the opportunity—or maybe let me just take one more from CT Shashi. He's asking the question: Could you please provide us the FY26 cash cost and maintenance capex guidance for the manganese asset?

Speaker #1: What is the targeted net debt to EBITDA ratio now for the company? So I'll stop there. And then we'll just recap. It's the outlook on the price realization.

Anda Mwanda: I will stop there and then let me just recap, is the outlook on the price realization, then China, then long-term view on Transnet.

Speaker #1: And then China, and then the long-term view on Transnet, and then the coal markets.

Anda Mwanda: The coal markets.

Speaker #2: Okay, okay. I'll answer some of them. So, China, you can correct me—Exxaro, we don't really sell to China. I think there are very few South African coal producers that actually sell to China.

Pieter Adriaan Koppeschaar: Okay. I will some of them. China, you can correct me, Exxaro, we do not really sell to China. I think there are very few South African coal producers that actually sell to China. Exxaro, China is not our market. We are better placed for the other markets.

Riaan Koppeschaar: Okay. I will some of them. China, you can correct me, Exxaro, we do not really sell to China. I think there are very few South African coal producers that actually sell to China. Exxaro, China is not our market. We are better placed for the other markets.

Speaker #2: But Exxaro, China is not our market. We are better placed for the other markets.

Speaker #1: Yeah. And we don't quite compete with them even in in Japan and and in Thailand. So so it really they they as far as I recall they are still net importers.

Ben Magara: We do not quite compete with them even in Japan.

Ben Magara: We do not quite compete with them even in Japan and in—

Pieter Adriaan Koppeschaar: Yes

Riaan Koppeschaar: Yes.

Ben Magara: Thailand, as far as I recall, they are still net importers.

Ben Magara: —Thailand, as far as I recall, they are still net importers. That may need to be checked. Please go ahead.

Speaker #1: So that may need to be checked, but yeah, please go ahead.

Ben Magara: That may need to be checked. Please go ahead.

Speaker #2: Yeah. Then the impact of the explosion was that the thermal coal—wasn't it at the metallurgical coal mine?

Pieter Adriaan Koppeschaar: Yeah. The impact of the explosion, was that at the thermal coal mine? Was it not at the metallurgical coal mine?

Riaan Koppeschaar: Yeah. The impact of the explosion, was that at the thermal coal mine? Was it not at the metallurgical coal mine?

Speaker #1: It was, yeah, it was at the met coal mine. So I think it's not comparable coal we produce.

Ben Magara: It was, yeah.

Pieter Adriaan Koppeschaar: It was at the met coal mine, so I think it is not comparable probably.

Riaan Koppeschaar: It was at the met coal mine, so I think it is not comparable probably—

Ben Magara: Yeah

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: with the coal we produce.

Riaan Koppeschaar: —with the coal we produce.

Speaker #2: Exactly.

Ben Magara: Exactly. Yeah.

Speaker #1: then there was also next as there were two other blast explosions also in Colombia but all these again I think it's a matter of moving chairs around volumes South Africa supply the the the global seaboard market is about a million a billion tons and our contribution to that is somewhere around 1%.

Pieter Adriaan Koppeschaar: Then-

Riaan Koppeschaar: Then—

Ben Magara: There was also an extra, there were two other blast explosions also in Colombia. All these again, I think it is a matter of moving chairs around volumes. South Africa supply, the global seaborne market is about 1 billion

Pieter Adriaan Koppeschaar: Billion

Riaan Koppeschaar: Billion.

Ben Magara: tons, and our contribution to that is somewhere around 1%. I don't think it is as impactful to us. We see it more in the price as a basic fundamental of supply and demand.

Ben Magara: —tons, and our contribution to that is somewhere around 1%. I don't think it is as impactful to us. We see it more in the price as a basic fundamental of supply and demand.

Speaker #1: So I don't think it's as impactful to us. We see it more in the price as a basic fundamental of supply and demand.

Pieter Adriaan Koppeschaar: Mm-hmm. Yeah. I think we did answer the question on the balance sheet that

Anda Mwanda: Mm-hmm.

Speaker #2: Yeah. Then I think we did answer the question on the balance sheet, that we are on a debt-free, cash-free basis, and then to the extent that we gear the balance sheet for growth, it should not be more than one and a half times EBITDA, excluding the project financing.

Riaan Koppeschaar: Yeah. I think we did answer the question on the balance sheet that—

Ben Magara: Yeah

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: we are debt-free, cash free.

Riaan Koppeschaar: —we are debt-free, cash free.

Ben Magara: Yeah

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: And then to the extent that we gear the balance sheet for growth, it should not be more than 1.5x EBITDA excluding the project financing.

Riaan Koppeschaar: And then to the extent that we gear the balance sheet for growth, it should not be more than 1.5x EBITDA excluding the project financing.

Ben Magara: Right.

Speaker #2: So, I think that we've covered.

Pieter Adriaan Koppeschaar: So I think that we have covered.

Riaan Koppeschaar: So I think that we have covered.

Speaker #1: And then the CapEx thing.

Anda Mwanda: And then the CapEx thing.

Speaker #2: Yeah. Then yeah the capex remember we said at the capital markets day it was included there in the business that the manganese business itself sufficient so remember at the moment it's still a JV so all of the capex is incurred at the JV level but also take into account it's a it's a contract mining operation so there isn't really that big capex from from that perspective.

Pieter Adriaan Koppeschaar: Yeah. The CapEx, remember we said at the capital markets day, it was included there in the business that the manganese business is self-sufficient.

Riaan Koppeschaar: Yeah. The CapEx, remember we said at the capital markets day, it was included there in the business that the manganese business is self-sufficient. Remember at the moment it is still a JV, so all of the CapEx is incurred at the JV level. But also take into account it is a contract mining operation.

Pieter Adriaan Koppeschaar: Remember at the moment it is still a JV, so all of the CapEx is incurred at the JV level.

Pieter Adriaan Koppeschaar: But also take into account it is a contract mining operation.

Anda Mwanda: Yeah.

Ben Magara: Yeah.

Pieter Adriaan Koppeschaar: There is not really that big CapEx from that perspective.

Riaan Koppeschaar: There is not really that big CapEx from that perspective.

Speaker #1: Thanks, Rhea. And I think there was a request in the questions around Transnet.

Anda Mwanda: Thanks, Riaan.

Ben Magara: Indeed. I think there was a request in the questions around Transnet.

Speaker #2: Yes. Long-term view.

Pieter Adriaan Koppeschaar: Yes, long term.

Anda Mwanda: Yes, long term.

Speaker #1: And how the various markets are perceiving Transnet—I think from an annualized run rate for the coal industry, I spoke about 60 million tons, which is an improvement on how they performed last year.

Ben Magara: How the various markets are perceiving Transnet. I think from an annualized run rate for the coal industry, I spoke about 60 million tons, which is an improvement on how they performed last year. So tick. From our performance and increased almost unrelenting focus on the C-section line from Grootegeluk direct to Richards Bay, we have seen an improvement of 50%. Again, a big tick. Are we happy with where we are with Waterberg? No, we want more. So yes to Michelle. With all the great performance, we still want more from the C-section line from Grootegeluk, even though we have done very well. Manganese, we are doing well. I think in talking about all the touch points of our participation and involvement with Transnet, we are very pleased with the progress, but there is no cigar yet.

Speaker #1: So, tick. From our performance and increased, almost unrelenting focus on the section C line from GG direct to Richards Bay, we have seen an improvement of 50%. Again, a big tick.

Speaker #1: Are we happy with where we are with Waterberg? No, we want more. So yes, to Michelle: with all the great performance, we still want more from the Section C line, from GG, even though we have done very well.

Speaker #1: Manganese, we are doing well. So I think in talking about all the touch points of our participation and involvement with Transnet, we are very pleased with the progress, but there's no cigar yet.

Anda Mwanda: Yeah. Thanks, Ben. I will also just keep on with online. You have highlighted a 37% decline in equity accounted income, particularly from SIOC. How much of the decline do you view as cyclical from stronger rand, iron ore pricing, and input cost inflation versus a structural change in SIOC's sustainable earnings power? This is from Chris Harasty from Hazeley Consulting. The second question, if we normalize iron ore prices, rand, and SIOC's cost base, what do you consider a sustainable level of annual earnings from Exxaro's SIOC interest? The manganese acquisition represented approximately ZAR 10.6 billion of capital deployed. Now that the assets have contributed four months of earnings, what return on invested capital do you believe the acquired manganese portfolio can generate through the cycle? I think, Riaan. There is another one.

Speaker #1: Thanks. Thanks Ben. I'll also just keep on with online you have highlighted a 37% decline in equity accounted income particularly from Sayak. How much of the decline do you view as cyclical from stronger and iron ore pricing and input and input cost inflation versus a structural change in Sayak's sustainable earnings power?

Speaker #1: This is from Chris Haseli from Haseli Consulting. And then the second question: if we normalize iron ore prices, rand, and Sishen's cost base, what do you consider a sustainable level of annual earnings from Exxaro's Sishen interest?

Speaker #1: And then, the manganese acquisition represented approximately $10.6 billion of capital deployed. Now that the assets have contributed four months of earnings, what return on invested capital do you believe the acquired manganese portfolio can generate through the cycle?

Speaker #1: I think Rian and then there's another one as Exxaro transition from coal heavy portfolio towards minerals and energy how do you think about optimal pace of coal of coal capital allocation and at what point do you stop reinvesting aggressively into coal assets instead of and instead maximize cash extraction from the ex existing portfolio and then there's the question from David Fraser from Peregrine Capital from the company's perspective any progress on your thinking regarding the BEE share lock up expiry in 2027.

Anda Mwanda: As Exxaro transitions from coal-heavy portfolio towards minerals and energy, how do you think about optimal pace of coal capital allocation? At what point do you stop reinvesting aggressively into coal assets and instead maximize cash extraction from the existing portfolio? There is the question from David Fraser from Peregrine Capital. From the company's perspective, any progress on your thinking regarding the BEE share lock-up expire in 2027?

Speaker #1: Okay.

Ben Magara: Okay, perfect. Looks like it is all Buddy questions, but whatever you leave out I will.

Riaan Koppeschaar: Okay, perfect. Looks like it is all Buddy questions, but whatever—

Speaker #2: Perfect. Looks like it's all buddy questions but whatever you leave out I will I will I I will then top up what's left. Yeah.

Ben Magara: you leave out I will—

Anda Mwanda: Yeah.

Riaan Koppeschaar: Yeah.

Ben Magara: I will then top up what is left.

Ben Magara: —I will then top up what is left.

Pieter Adriaan Koppeschaar: Yeah. Okay, let's perhaps start with the BEE. We are engaging with the BEE shareholders. I think we pretty much aligned on the way forward. Remember what we told you last time, the current structure expires in December. There is a wish or a desire that we look to extend the structure beyond 2027. Parties are in discussions of that. As we pointed out, we think these days with the new generation transactions, you can move away from facilitation, all of that. The one thing that we are at the moment looking for is certainty on the draft minerals bill. Then obviously taking that into account, there could always be a role for increased ESOP or community participation in schemes like that.

Riaan Koppeschaar: Yeah. Okay, let's perhaps start with the BEE. We are engaging with the BEE shareholders. I think we pretty much aligned on the way forward. Remember what we told you last time, the current structure expires in December. There is a wish or a desire that we look to extend the structure beyond 2027. Parties are in discussions of that. As we pointed out, we think these days with the new generation transactions, you can move away from facilitation, all of that. The one thing that we are at the moment looking for is certainty on the draft minerals bill. Then obviously taking that into account, there could always be a role for increased ESOP or community participation in schemes like that.

Speaker #2: Okay, let's perhaps start with the BEE. We are engaging with the BEE shareholders. I think we are pretty much aligned on the way forward.

Speaker #2: Remember what we told you last time: the current structure expires in December. There is a wish, or a desire, that we look to extend the structure beyond 2027.

Speaker #2: So, parties are in discussions about that. But as we pointed out, you know, we think these days with the new generation of transactions, you can move away from facilitation and all of that. But the one thing that we are at the moment looking for is certainty on the draft Minerals Bill, and then obviously, taking that into account, there could always be a role for increased ESOP or community participation in schemes like that.

Speaker #1: Thank you. Thanks. Thanks, Rhea. And then I think let's just do the Sayak question. This impact from land exchange, exchange rate, and...

Anda Mwanda: Okay, thanks. Thanks, Riaan. Let's just do the SIOC question.

Pieter Adriaan Koppeschaar: Yeah.

Riaan Koppeschaar: Yeah.

Anda Mwanda: Because impacts from rand exchange rate and.

Speaker #2: Yeah. So I I think I I can't now speak on behalf of Sayak on all of these things but but obviously a a big impact has been the the exchange rate you know also what they mentioned remember last year the first half they they had a once off from the TFR take or pay and then also I think this year there was a impact from from rate and then coupled with that they are currently busy with the tie in of the HD UHDMS project.

Pieter Adriaan Koppeschaar: Yeah. I can't now speak on behalf of SIOC and all of these things.

Riaan Koppeschaar: Yeah. I can't now speak on behalf of SIOC and all of these things.

Anda Mwanda: Exactly.

Pieter Adriaan Koppeschaar: But obviously, a big impact has been the exchange rate. Also what they mentioned, remember last year, the H1, they had a once off from the Transnet Freight Rail take or pay. Then also I think this year there was an impact from rail. Then coupled with that, they are currently busy with the tie in of the UHDMS project. All of that may have an impact on the business probably the next year or 2. But I can't now speak on all of that on behalf of them.

Riaan Koppeschaar: But obviously, a big impact has been the exchange rate. Also what they mentioned, remember last year, the H1, they had a once off from the Transnet Freight Rail take or pay. Then also I think this year there was an impact from rail. Then coupled with that, they are currently busy with the tie in of the UHDMS project. All of that may have an impact on the business probably the next year or 2. But I can't now speak on all of that on behalf of them.

Speaker #2: So all of that may have an impact on the business, probably in the next year or two. But I can't now speak on all of that on behalf of them.

Speaker #1: Exactly. Thank you. I think then, manganese.

Anda Mwanda: Exactly. Thank you.

Ben Magara: I think 2 things.

Anda Mwanda: And then manganese.

Speaker #2: Two things left. Maybe the manganese returns—I think the manganese or mining returns, as we have guided at the Capital Markets Day, is around that hurdle of 20%. And on the synergy side, our guidance is an internal rate of return of 15%.

Ben Magara: Two things left, maybe the manganese returns.

Anda Mwanda: Manganese, yeah.

Ben Magara: I think our mining returns, as we have guided at the Capital Markets Day, is around that hurdle of 20%. On the synergy side, our guidance is an internal rate of return of 15%. I think those investment criteria is what we used both at acquisition and our expectations of performance within those two parameters. There was something about coal CapEx allocation. I think we guided it quite clearly in our Capital Markets Day, but again, it is in line with the normalized numbers we had in 2022 in our last market guidance. We are currently going through maybe almost like a peak period of two, three years with our shovel and truck project at Grootegeluk, but we expect that to drop to the normalized levels by 2029, 2030.

Speaker #2: So I think those investment criteria are what we used both at acquisition and in our expectations of performance within those two parameters. There was something about coal capex allocation—I think we guided it quite clearly in our Capital Markets Day—but again, it's in line with, and not notably different from, the normalized numbers we had in 2022 in our last market guidance.

Speaker #2: We're currently going through maybe almost like a peak period of two to three years with our shoveling track project at GG, but we expect that to drop to the normalized levels by 2029, 2030.

Speaker #1: Yeah, and perhaps just to add to that, what I also understood from his question was, when will we stop coal capex? But remember, we've got contracts in the Waterberg until 2054 on Medupi, you know, so the operations must be maintained. And then the additional angle that we get is that, with the delay in decommissioning power stations, etc., coal is going to play a role in the energy mix well into the future.

Pieter Adriaan Koppeschaar: Yeah. Perhaps just to add to that, what I also understood from his question was when will we stop coal CapEx? But remember, we have contracts in the Waterberg until 2054 on Medupi. So the operations must be maintained. The additional angle that we get is that with the delay in decommissioning power stations, et cetera, coal is going to play a role in the energy mix well into the future. So we must make sure our operations are well capitalized, well-maintained to be able to capitalize on that.

Riaan Koppeschaar: Yeah. Perhaps just to add to that, what I also understood from his question was when will we stop coal CapEx? But remember, we have contracts in the Waterberg until 2054 on Medupi. So the operations must be maintained. The additional angle that we get is that with the delay in decommissioning power stations, et cetera, coal is going to play a role in the energy mix well into the future. So we must make sure our operations are well capitalized, well-maintained to be able to capitalize on that.

Speaker #1: So we must make sure our operations are well-capitalized and well-maintained to be able to capitalize on that.

Speaker #2: Indeed. I think maybe it's worth continuing that, Rian, because I think Caroline's song on coal is that the global energy demand is dropping, but the supply is dropping faster.

Ben Magara: Indeed. I think maybe it is worth continuing that, Riaan, because I think Caroline's song on coal is that the global energy demand is dropping, but the supply is dropping faster.

Speaker #1: Coal. Yeah.

Anda Mwanda: Coal, yeah.

Riaan Koppeschaar: Coal, yeah.

Speaker #2: The coal supply is dropping even faster, and Exxaro is well positioned with 9 billion tons of resource and is the only company operating in the 50 billion ton resource in the Waterberg.

Ben Magara: The coal supply is dropping even faster. Exxaro is well-positioned with 9 billion tons of resource, and the only operating in the 50 billion ton resource in the Waterberg. So we see opportunities. Because of that, the International Energy Agency says it is likely that the global energy mix will still require coal even beyond 2050. It needs to come from responsible miners with proper corporate stewardship, like Exxaro. We think we are best placed as a responsible miner to provide for that demand, and we have the resource to do that. So, that is key for why we have positioned coal where it is. So we have Caroline and team are looking for life extension opportunities in all our operations in line with that demand beyond 2050.

Speaker #2: So we see opportunities, and because of that, the energy-intensive—the International Energy Agency says it's likely that the global energy mix will still require coal even beyond 2050.

Speaker #2: It needs to come from responsible miners with proper corporate stewardship, like Exxaro. And we think we are best placed, as a responsible miner, to provide for that demand, and we have the resources to do that.

Speaker #2: So, so, so, that is key for why we have positioned coal where it is. So we have Caroline and Tima looking for life extension opportunities in all our operations, in line with that demand beyond 2050.

Speaker #2: We are focused on logistics, which we keep talking about, because we know the Waterberg can do more. And we're focused on entitlement in order to make sure we can evacuate our coal through the export facility.

Ben Magara: We are focused on logistics that we keep talking about because we know the Waterberg can do more, and we are focused on entitlement in order to make sure we can evacuate our coal through the export facilities. Those are the kind of three levers we know, and that coal remains an important base for us and supplier of wonderful cash earnings for the growth pipeline we have.

Speaker #2: So those are the three levers we know, and coal remains an important base for us and a supplier of strong cash earnings for the growth pipeline we have.

Speaker #1: Thank you, Ben. I don't know if we have any questions in the room, and if there are other questions in the room. Alexia, I see your hand is up.

Anda Mwanda: Thank you, Ben. I do not know if we have any questions in the room. Any further questions in the room? Alex, I see your hand is up.

Speaker #3: No no sir.

Anda Mwanda: No, that is it.

[Unknown Speaker]: No, that is it.

Speaker #1: Oh okay. Okay. Without any further questions in the room there's one question just to to rehash on the price serialization. I think just to just to drive an understanding because he he from from Lawson Mike from Lorim Capital his question is can we tackle the on on on price realization the 91 versus the 96%.

Anda Mwanda: Oh, okay. Okay. Without any further questions in the room, there is one question just to rehash on the price realization. I think just to drive an understanding because from Lawrenson, Mike from Laurium Capital, his question is, can we circle back on price realization, the 91 versus the 96%?

Speaker #2: Okay.

Speaker #1: Your answer implies customers can, at their election, revert to contract prices once prices have risen. Is this correct? If yes, why, of course—but I guess this is... what now, is this correct?

Ben Magara: Sure.

Anda Mwanda: Your answer implies customers can, at their election, revert to contract prices once prices have risen. Is this correct? If yes, why? Of course. I guess this is what now, is this correct? Maybe just clarify that.

Speaker #1: Maybe just clarifying that.

Ben Magara: Let's, yeah.

Speaker #2: Yeah, maybe let's touch a little bit on that, and then Rian, you can top up. Compared to last year—last year, our realized price was $88 per ton in the first half. This year, we realized a price of $96 a ton.

Anda Mwanda: contract-

Ben Magara: Maybe let's touch a little bit on that, and then, Riaan, you can top up. Compared to last year, last year our realized price was USD 88 per tonne in the H1. This year, we realized the price of USD 96 a tonne. So our prices went up. However, the index price, API4, went up to USD 106 per tonne. When the price is on the up and trending up, and the futures are showing that API4 is going up, our customers want to lock in a fixed price so that they have predictability of their cargo when it comes. When they lock it, when the price goes up again, they continue in that manner. Hence, our realized price drops to 91, but we still to 91%, but the price is still higher than what we have ever gotten. So they tend to fix their prices.

Speaker #2: So our prices went up. However, the index price, API4, went up to $106 per ton. When the price is on the up, trending up, and the futures are showing that API4 is going up, our customers want to lock in a fixed price.

Speaker #2: So that they have predictability of their cargo when it comes. So, when they lock it, when the price goes up again, they continue in that manner.

Speaker #2: Hence, our realized price drops to 91, but we still refer to 91%. But the price is still higher than what we have over-gotten. But when the—so, they tend to fix their prices.

Speaker #2: However, when the price comes down, because they potentially want to benefit from the index price coming down, they leave the price on the contract floating.

Ben Magara: However, when the price comes down, because they potentially want to benefit from the index price coming down, they leave the price on the contract floating. As they leave it floating, we benefit more because the realized price is actually better. So our price realization is much higher. I hope this covers it well.

Speaker #2: And as they leave it floating, we benefit more because the realized price is actually better. So our price realization is much higher. I hope this covers it well, and I know you're online, so you may not see my hands, but I hope we've covered it well.

Anda Mwanda: Yeah.

Ben Magara: I know you are online, so you may not see my hands, but I hope we have covered it well.

Speaker #1: Thank you.

Anda Mwanda: Thank you.

Speaker #2: Rian, anything I might have left? Tick.

Ben Magara: Riaan, anything I might have missed?

Anda Mwanda: Thank you.

Ben Magara: Tick.

Speaker #1: Yeah.

Anda Mwanda: Yeah. Now we are going to go to the call. We have done the webcast. Now we are going to go to the call. Operator, do you have any questions from the call?

Speaker #2: Thank ank you.

Speaker #1: And then now we are going to go to the call. So we've done the webcast, and now we're going to go to the call.

Speaker #1: Operator, do you have any questions from the call?

Operator: Thank you, sir. At this stage, we have no questions on the telephone lines.

Speaker #4: Thank you, sir. At this stage, we have no questions on the telephone lines.

Speaker #1: Thank you. I'll just do another round in the room to see if there are any further questions. Oh, there's one question there from Dr. Korn.

Anda Mwanda: Thank you. I will just do another round in the room to see if there is any further questions. Oh, there is one question there by Dr. Kohn.

Ben Magara: Yes, it is coming.

Speaker #1: Yes it's coming.

Anda Mwanda: Yes, it is coming.

Speaker #2: Coming through. We know, we know—you may not have the voice anymore, but that is still okay. Thank you. I don't want to prolong this, and I'm not going to complain about the divi, so thank you for that. I think as soon as I leave you, I'll go to the grocery store and start spending some of that.

Ben Magara: Coming, doc. We know you may not have the voice anymore.

[Analyst 1]: Coming, doc.

Ben Magara: We know you may not have the voice anymore.

[Analyst]: There is a lot of other things there.

[Analyst 1]: There is a lot of other things there.

Ben Magara: That is still okay.

[Analyst]: All right. Thank you. I do not want to prolong this, and I am not going to complain about the divvy. Thank you for that. I think as soon as I leave you, I will go to the grocery store and start spending some of that. I just do not want to let you off the hook totally on this Transnet thing. You know, round figures, you said about 60 million tons down to Richards Bay, where we are now. If you go back to the history of that facility, I can remember when I was still working, we signed off on

[Analyst 1]: All right. Thank you. I do not want to prolong this, and I am not going to complain about the divvy. Thank you for that. I think as soon as I leave you, I will go to the grocery store and start spending some of that. I just do not want to let you off the hook totally on this Transnet thing. You know, round figures, you said about 60 million tons down to Richards Bay, where we are now. If you go back to the history of that facility, I can remember when I was still working, we signed off on—

Speaker #2: I just don't want to let you off the hook totally on this Transnet thing. You know, in round figures, you said about 60 million tons down to reach its bay where we are now.

Speaker #2: Now, if you go back to the history of that facility, I can remember when I was still working, we signed off on the expansion of the terminal owned by the private sector.

Ben Magara: Yeah

Ben Magara: Yeah.

[Analyst]: the expansion of the terminal owned by the private sector.

[Analyst 1]: —the expansion of the terminal owned by the private sector.

Speaker #1: Indeed.

Ben Magara: Indeed.

Speaker #2: And the figure that we had when we put the capital in at that stage was 90 million tons. And then we dropped, and we dropped, and we dropped. I—I'm, you know, my memory is not that great anymore, but I think we probably never got beyond 72 million.

[Analyst]: The figure that we had when we put the capital in at that stage was 90 million tons.

[Analyst 1]: The figure that we had when we put the capital in at that stage was 90 million tons.

Ben Magara: Yes.

[Analyst]: Then we dropped, and we dropped, and we dropped. My memory is not that great anymore, but I think we probably never got beyond 72 million. Then it went right down. What is your, if you look ahead, the next 10 years, let us say

[Analyst 1]: Then we dropped, and we dropped, and we dropped. My memory is not that great anymore, but I think we probably never got beyond 72 million. Then it went right down. What is your, if you look ahead, the next 10 years, let us say.

Speaker #2: But then it went right down. What is your—if you look ahead the next 10 years, let's say.

Speaker #1: Yes.

Ben Magara: Yes

Ben Magara: Yes.

Speaker #2: What sort of figure do you think we can get out of this? You know, I think we must—firstly, I'm not complaining—any improvement on the previous year is always welcome.

[Analyst]: What sort of figure do you think we can get out of this here? I think we must firstly. I am not complaining.

[Analyst 1]: What sort of figure do you think we can get out of this here? I think we must firstly. I am not complaining. Any improvement on the previous is helpful. Year is always welcome.

Ben Magara: Any improvement on the previous is helpful.

[Analyst]: Year is always welcome.

Ben Magara: Absolutely.

Speaker #2: And I think, it being sort of Women's Month, it just shows you put a woman in charge, you get things done. But the thing that's been worrying me for years is that we spent the capital, and, as I say, I still signed off on the capital on behalf of our company.

[Analyst]: I think it

[Analyst 1]: I think it, being sort of Women's Month, it just shows you put a woman in charge, you get things done. The thing that's been worrying me for years is that we spent the capital, as I say, I still signed off on the capital on behalf of our company—

[Analyst]: Being sort of Women's Month, it just shows you put a woman in charge, you get things done. The thing that's been worrying me for years is that we spent the capital, as I say, I still signed off on the capital on behalf of our company.

[Analyst]: Indeed

Ben Magara: Indeed.

Speaker #2: For 90 million tons. I I think it's probably a pipe dream 90 but as the industry got any collective view of where we we can get to and what are the main impediments you know because we can get transport right in this country South Africa is going to look a lot different you know there's a couple of others as well but you know the transport one worries me.

[Analyst]: for 90 million tons. I think it's probably a pipe dream 90, but has the industry got any collective view of where we can get to, and what are the main impediments? We can get transport right in this country, South Africa's going to look a lot different. There's a couple of

[Analyst 1]: —for 90 million tons. I think it's probably a pipe dream 90, but has the industry got any collective view of where we can get to, and what are the main impediments? We can get transport right in this country, South Africa's going to look a lot different. There's a couple of—

Ben Magara: Indeed

Ben Magara: Indeed.

[Analyst]: others as well, but the transport one worries me.

[Analyst 1]: —others as well, but the transport one worries me.

Speaker #1: Thanks, Dr. Korn. You're right about the 91 million tons. I was on the other side when you and I signed for RBCT to go up to 91 million tons per year.

Ben Magara: Thanks, Dr. Kohn. You're right about the 91 million tons. I was the other side when me and you signed for RBCT to go up to 91 million tons per year. I think the most they did was about 75, 76.

Speaker #1: I don't think they ever—I think the most they did was about 70, 75, 76. And I think we already had expanded the plant to 76.

[Analyst]: 76, yeah.

[Analyst 1]: 76, yeah.

Ben Magara: I think we already had expanded the plant to 76, which was the phase 4 of Richards Bay Coal Terminal. The phase 5 was to take it to the 91 million tons, which we did, and we have spent the money. Transnet in all the challenges went down to 48 million tons a year and have been going up in steps between 5% to 8% improvement year-on-year, thanks to Michelle Phillips. We have seen that now at 60. If you were asking for my own predictions of the coal industry's performance, not Exxaro, I would think that we might still be able to get to the 70, 75 million tons. I am not convinced that the coal industry can supply beyond 75. However, Exxaro can.

Speaker #1: Which was the the fourth phase four of RBCT the phase five was to take it to the 91 million tons which we did and we have spent the money.

Speaker #1: Transnet, in all the challenges, went down to 48 million tons a year and has been going up in steps between 5 to 8% improvement year on year, thanks to Michelle Phillips. So we have seen that now at 60.

Speaker #1: If you were asking for my own predictions of the coal industry's performance, not just Exxaro, I would think that we might still be able to get to the 70–75 million tons.

Speaker #1: I am not convinced that the coal industry can supply beyond 75. However, Exxaro can. So, the opportunities we have are that we have enough resource to supply to our entitlement, and to possibly crouch into others' entitlement should they fail to meet that, whether through buying it or leasing it.

Ben Magara: The opportunities we have is that we have enough resource to supply, one, to our entitlement, and to possibly crouch in others' entitlement should they fail to meet that, and whether through buying it or leasing it. I really think our resource and what Caroline's team are doing with life of mine extension, how do we continue to really get close to get it right. Call about women in charge, Michelle and Caroline can help us get there. I am really pleased with the efforts of 5% to 8% year-on-year. As I said earlier on, no cigar yet, but I do not think the coal industry as a whole will get beyond 75. It is sad, but at least we can continue to benefit. If the coal industry cannot and Transnet wants to go to 80, Exxaro has got the volume. Thank you.

Speaker #1: So I really think our resource and what Caroline's team are doing with life-of-mine extension—how do we continue to really get close to getting it right?

Speaker #1: So, call about women in charge—Michelle and Caroline can help us get there. So, I'm really pleased with the efforts of 5 to 8% year on year, but as I said earlier on, no cigar yet. But I don't think the coal industry as a whole will get beyond 75.

Speaker #1: So it is said, but at least we can continue to benefit, if the coal industry can't. And if Transnet wants to go to 80, Exxaro has got the volume.

Speaker #1: Thank you. Thank you, Ben, and thank you, Rian. We have another question.

Anda Mwanda: Thank you, Ben, and thank you, Riaan. We have another question.

Speaker #2: Another okay.

Ben Magara: Another Ben.

[Analyst 2]: Another Ben.

Anda Mwanda: Okay. Sure.

Ben Magara: Okay.

Speaker #1: Sure. And I think you know the answer. The new structural reforms are about what companies themselves can do to get higher. So it's no longer going to be reliant on just Transnet doing that.

[Analyst 2]: Sure. I think you know the answer.

[Analyst]: I think you know the answer.

Ben Magara: You know what it is.

[Analyst]: The new structural reforms.

[Analyst 2]: The new structural reforms.

Ben Magara: Yeah

Ben Magara: Yeah.

[Analyst]: It's about what companies themselves can do for themselves to get higher. It's no longer going to be reliant on just Transnet doing that.

[Analyst 2]: It's about what companies themselves can do for themselves to get higher. It's no longer going to be reliant on just Transnet doing that. The question is what efforts is Exxaro going to be taking to say, "You know what? In the last path, especially on Grootegeluk, we did a very good deal with Transnet at that time to increase the number of trains per week on the basis of us putting capital and them putting capital."

Speaker #1: The question is what efforts is Exxaro going to be taking to say you know what in the last path especially on we did a very good deal with transnet at that time to increase the number of trains per week on the basis of us putting capital and them putting capital but now the question is are we prepared to put in the capital because now the the reforms are going to allow us to do that to be the masters of our own destiny on that sea line and I think that's a real question is that no longer are you going to have to say well it's transnet's job but we have the opportunity because the reform allows us to do that.

[Analyst]: The question is what efforts is Exxaro going to be taking to say, "You know what? In the last path, especially on Grootegeluk, we did a very good deal with Transnet at that time to increase the number of trains per week on the basis of us putting capital and them putting capital." Now the question is, are we prepared to put in the capital because now the reforms are going to allow us to do that, to be the masters of our own destiny on that C-section line? I think that's the real question, is that no longer are you going to have to say, well, it's Transnet's job, but we have the opportunity because the reform allows us to do that. I think that's what the question Dr. Kohn and I'm also asking.

[Analyst 2]: Now the question is, are we prepared to put in the capital because now the reforms are going to allow us to do that, to be the masters of our own destiny on that C-section line? I think that's the real question, is that no longer are you going to have to say, well, it's Transnet's job, but we have the opportunity because the reform allows us to do that. I think that's what the question Dr. Kohn and I'm also asking.

Speaker #1: I think that's what the question is, Dr. Korn, and I'm also asking.

Speaker #2: Fantastic, MX. I think you're so right about the opportunities that the sea line provides for Exxaro, especially since we're the only operating asset in that area.

Ben Magara: Fantastic, MX. I think you're so right about the opportunities that the C-section line provides for Exxaro, and especially that we're the only operating asset in that area. There are even conversations around how do we extend that rail into Mmamabula in Botswana. Let's stick to our own knitting and what we can do with it. We are pleased with the privatization and the liberalization of Transnet and railing capacity in the country, that the Department of Transport and Transnet are driving through both the PSP and the CCP processes. We're in engagements with train operating companies that have been already picked up, and we think that process needs to be fast-tracked. The benefit for us is we explore and we'll see how it works with parties, but the benefit for us is to have train operating companies because we're not competent at running a train.

Speaker #2: There are even conversations around how we extend that rail into Mmamabula in Botswana, but let's stick to our own knitting and what we can do with it.

Speaker #2: We are pleased with the privatization and the liberalization of Transnet and railing capacity in the country, and that the Minister of Transport and Transnet are driving through both the PSP and the CCP processes.

Speaker #2: We are in engagements with train operating companies that have already been picked up, and we think that process needs to be fast-tracked. The benefit for us is that we can explore and see how it works with the parties, but the benefit for us is to have train operating companies, because we are not committed to running a train.

Speaker #2: So, have a train operating company give them an offtake agreement, and they will get money. So the key for us—yes, we consider a level of funding so that our pensioners continue to get their benefits, their returns, but most importantly, if you can give any train operating company assurance of 15 million tons of offtake, any bank can fund that.

Ben Magara: So have a train operating company, give them an offtake agreement, and they will get money. The key for us, yes, we consider a level of funding that our pensioners continue to get their benefits, their returns. But most importantly, if you can give any train operating company assurance of 15 million tons offtake, any bank can fund that.

Speaker #2: So we believe that we're taking it into our own hands, and we really believe there are opportunities in there. We actually wish the process to be fast-tracked.

Ben Magara: We believe that we are taking it in our own hands, and we really believe there are opportunities in there. We actually wish the process to be fast-tracked. We have done a research. How much money did we put in the study to understand how do we get to 4 million tons? How do we double, how do we treble it? And we as Exxaro have funded that study because we know that the export optionality we have differentiates us from any other player. MX, on the money?

Speaker #2: They are all equal. We have done research. How much money did we put into the study to understand: how do we get to 4 million tons? How do we double, how do we treble it? And we, as Exxaro, have funded that study because we know that the export optionality we have differentiates us from any other player.

Speaker #2: MX on the money.

Speaker #1: Thank you. Thank you, Ben. And thank you, ladies and gentlemen. Thank you so much for joining us today. Without any questions, we've come to the end of our session, and thank you for your continued partnerships on behalf of Exxaro.

[Analyst]: Thank you. Thank you, Ben. And thank you, ladies and gentlemen. Thank you so much for joining us today. Without any questions, we have come to the end of our session. And thank you for your continued partnerships on behalf of Exxaro. Thank you so much.

[Analyst 2]: Thank you.

Anda Mwanda: Thank you, Ben. And thank you, ladies and gentlemen. Thank you so much for joining us today. Without any questions, we have come to the end of our session. And thank you for your continued partnerships on behalf of Exxaro. Thank you so much.

Browse all earnings call transcripts

Q2 2026 Exxaro Resources Ltd Earnings Call

Request TrialDemo

Exxaro Resources

Earnings