Exxaro Resources, South Africa’s largest black-empowered resource company, has been ranked 13th in the Sunday Times Top 100 Companies in South Africa in the 2020 list. This is a remarkable achievement, as the mining company placed 37th in 2019.
As one of the most prestigious award events on the business calendar, the Sunday Times Top 100 Companies annual awards is followed by many business leaders. This year, to stick to social distancing guidelines, the event was held online. Nonetheless, it was still a showstopping event, with KayaBizz host Gugulethu Mfuphi as the Master of Ceremonies.
To qualify for a ranking, JSE-listed companies need to hold at least R5 billion market capitalisation between 1 September 2015 and 31 August 2020. The winners are then determined by the highest returns for their shareholders over five years, based on a theoretical initial investment of R10 000. It should come as no surprise that Exxaro once again made the cut this year.
In March 2020, Exxaro reported a 9% increase in core earnings for the 2019 financial year, which has been attributed to the growth from Sishen Iron Ore Company. This trend continued in its interim results. Highlights from the interim results include a 23% increase in exports, a 16% increase in headline earning per share, and the ability to maintain its dividend policy for a dividend payment of R6.43 per share – an impressive achievement considering the current global pandemic and the hard lockdown experienced earlier this year.
“Luckily, the mining industry is geared to handle these challenges, given our focus on health and safety. This means that we already had some of the protocols in place giving us the resilience to continue with business as usual while minimising disruption to our operations,” said Exxaro CEO, Mxolisi Mgojo.
This resilience is evident in the fact that the top 13 companies in the Sunday Times Top 100 Companies all operate within the mining industry.
“This ranking proves that we are living up to our promise of powering possibility in Africa, and we look forward to working towards that number one position in the not too distant future. I would like to use this opportunity to thank our employees and stakeholders for their unwavering support, especially during these troubling times,” concluded Mgojo.
Main Image: Exxaro