Exxaro was among the many traders that misplaced out to China’s MMG in a bid for Botswana’s Khoemacau copper mine final 12 months, and it’s now conducting due diligence on some potential acquisitions, chief progress officer Richard Lilleike mentioned in an interview.
He mentioned Exxaro has modified the “depth and degree of engagement with potential targets, companions and traders”, however declined to supply extra particulars on a possible acquisition.
“My hope can be to announce a deal in 2024,” Lilleike mentioned after the corporate posted half-year earnings. “We’re actually working ahead that timeline with a lot of alternatives.”
A race amongst world miners for copper belongings has pushed up valuations for potential acquisition targets, forcing Exxaro to vary its technique to give attention to partnerships and early-stage growth initiatives, he added.
Exxaro mines principally thermal coal burned in energy stations and has additionally invested closely in renewable vitality initiatives.
Potential offers for manganese initiatives in its dwelling nation are being held again by advanced shareholding buildings and three way partnership agreements, Lilleike mentioned. South Africa is the world’s high producer of manganese – a steelmaking ingredient that’s additionally discovered rising use in electrical car battery applied sciences.
Exxaro’s plan to diversify into different metals comes at a time when it is usually battling declining earnings as a result of decrease costs and lack of rail capability to ship coal to ports for export.
Six-month outcomes for the corporate confirmed headline earnings slumped 37% to three.7 billion rand ($205 million). It mentioned it will pay an interim dividend of seven.96 rand, in contrast with 11.43 rand final 12 months.
($1 = 18.0469 rand)
(By Nelson Banya; Modifying by Felix Njini and David Holmes)