Management of coal producer Exxaro delivered a pleasant surprise to shareholders on Tuesday by declaring a special dividend of R12.55 a share from the proceeds of the part-sale of its shares in titanium dioxide producer Tronox. Although Exxaro had already flagged that it would be distributing most of the Tronox proceeds to its shareholders, the shares responded strongly. By early afternoon, the share price had surged R10, or almost 8%, to R148.42, more than offsetting its losses in the past week of turbulent equity markets. Avior metals and mining analyst Matthew Shields said although some distribution had been expected, the announcement might have offered shareholders some reassurance. In addition, the special dividend could have been declared sooner than shareholders expected, given that the group had not fully exited its investment in Tronox. “We continue to believe that there is a possibility of another special dividend if Exxaro is successful in selling its remaining stake in T...
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