Johannesburg – EXXARO Resources, one of the biggest black empowerment coal and mineral sands mining companies, announced the retirement of chief executive Mxolisi Mgojo and returned cash to shareholders through a record dividend during the year ended December 2020.
Mgojo, who has served Exxaro since its inception in 2006, took the reins from former chief executive Sipho Nkosi in April 2016, but is expected to retire at the end of May 2023.
Exxaro said its managing for minerals, Nombasa Tsengwa, was chief executive designate, and her appointment would effective once Mgojo reaches the retirement age of 63.
“Tsengwa’s appointment forms part of a carefully considered succession plan which has taken place over the past two years. The transition period will ensure a smooth and phased handover of duties and responsibilities,” the group said.
The company declared a final dividend of R12.43 a share for the year ended December as it passed through dividends from mainly its investment in Sishen Iron Ore Company year-on-year and benefited from bumper cash generated by operations. Cash generated by operations climbed by 47% to R7.7-billion, up from R5.73bn a year earlier.
In addition to the ordinary dividend, Exxaro also returned proceeds of the R5.7bn disposal of additional parts of Tronox, the US-based titanium producer by rewarding shareholders with a R5.43 a share special dividend and the implementation of R1.5bn share buyback programme.
Other financial and operational highlights included 12% revenue growth to R28.92billion from R25.72billion in 2019, mainly due to higher commercial coal revenue and record coal export volumes.
Exxaro’s share price closed 3.68% higher at R183.90 on the JSE yesterday.
