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EXXARO RESOURCES LIMITED - EXX - Trading Statement for the six-month period ended 30 June 2019

14 August 2019 - 08:00 AM
EXX
EXX - Trading Statement for the six-month period ended 30 June 2019

EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
(Exxaro or the Company)

TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2019

Shareholders are advised that Exxaro and its directors have reasonable certainty relating to the
expected financial results of Exxaro for the six-month period ended 30 June 2019.

Headline earnings per share (HEPS) for the six-month period ended 30 June 2019 are expected
to increase between 35% and 47%, while attributable earnings per share (AEPS) for the six-
month period ended 30 June 2019 are expected to increase between 97% and 109% compared
to the six-month period ended 30 June 2018. This is mainly due to an increased contribution from
our equity-accounted investments which more than offsets the lower EBITDA* contribution from
our managed operations. Both HEPS and AEPS are based on a weighted average number of
shares of 251 million.

EBITDA for the six-month period ended 30 June 2019 are expected to decrease between 22%
and 10% compared to the six-month period ended 30 June 2018. Earnings from the coal business
were adversely affected by lower domestic sales volumes, a lower average price per tonne
achieved on exports due to the lower benchmark API4 price, as well as higher provision for
rehabilitation and higher distribution costs. This was somewhat offset by higher export volumes
and a favourable ZAR/USD exchange rate.

After adjusting for non-core items for both financial years Core HEPS** for the six-month period
ended 30 June 2019 are expected to increase between 13% and 25% compared to the six-month
period ended 30 June 2018. Core EBITDA** for the six-month period ended 30 June 2019 are
expected to decrease between 36% and 24%, compared to the six-month period ended 30 June
2018 due to the reasons mentioned above.

                   Six-month period                                    Six-month period
                   ended 30 June 2018                                  ended 30 June 2019
                   Reported earnings           Expected range          Expected earnings
 HEPS              1 222 cents                 35% - 47% increase      1 650  1 796 cents
 AEPS              1 268 cents                 97% - 109% increase     2 498  2 650 cents
 EBITDA            R3 766 million              22% - 10% decrease      2 937  3 389 (R Million)
 Core HEPS***      1 001 cents                 13% - 25% increase      1 131  1 251 cents
 Core EBITDA       R3 954 million              36% - 24% decrease      2 544  2 994 (R Million)


Shareholders are advised that Exxaro will release its reviewed financial results for the six-month
period ended 30 June 2019 on 22 August 2019. Further details are available on our website,
www.exxaro.com.

The forecast financial information on which this trading statement is based has not been reviewed,
audited nor reported on by Exxaros external auditors.
This statement is issued in compliance with the JSE Listings Requirements.

*EBITDA is calculated by adjusting net operating profit before interest, tax, depreciation, amortisation, impairment
charges and net loss or gain on disposal of investments and assets (including translation differences recycled to profit
or loss).

**Core HEPS and core EBITDA are calculated after adjusting for non-core items. Core HEPS is based on a core
weighted average number of shares of 332 million which is calculated by deducting Exxaros 24.9% shareholding in
Eyesizwe RF Proprietary Limited from Exxaros total shares in issue.

*** Core AEPS are the same as core HEPS.

These are not defined terms under International Financial Reporting Standards (IFRS) and may not be comparable
with similarly titled measures reported by other companies. The afore-mentioned adjustments are the responsibility of
the directors of Exxaro. The adjustments have been prepared for illustrative purposes only and due to their nature, may
not fairly present Exxaro's financial position, changes in equity, results of operations or cash flows.

Editors note:
Exxaro is one of the largest South African based diversified resources companies, with interests
in the coal, titanium dioxide, iron ore and energy. www.exxaro.com

Enquiries:
Mzila Mthenjane, Executive head: Stakeholder affairs
Tel: + 27 12 307 7393
Mobile: +27 83 417 6375
Email: Mzila.mthenjane@exxaro.com

Pretoria
14 August 2019

Sponsor:
Absa Bank Limited (acting through its corporate and investment banking division).

Date: 14/08/2019 08:00:00
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