Latest news with #ExxaroResources
Yahoo
22-05-2025
- Business
- Yahoo
Institutional owners may take dramatic actions as Exxaro Resources Limited's (JSE:EXX) recent 4.4% drop adds to one-year losses
Institutions' substantial holdings in Exxaro Resources implies that they have significant influence over the company's share price The top 5 shareholders own 52% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company We've discovered 3 warning signs about Exxaro Resources. View them for free. If you want to know who really controls Exxaro Resources Limited (JSE:EXX), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 72% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And institutional investors saw their holdings value drop by 4.4% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 15% might not go down well especially with this category of shareholders. Institutions or "liquidity providers" control large sums of money and therefore, these types of investors usually have a lot of influence over stock price movements. As a result, if the downtrend continues, institutions may face pressures to sell Exxaro Resources, which might have negative implications on individual investors. Let's delve deeper into each type of owner of Exxaro Resources, beginning with the chart below. View our latest analysis for Exxaro Resources Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Exxaro Resources does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Exxaro Resources, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Exxaro Resources is not owned by hedge funds. Our data shows that Public Investment Corporation Limited is the largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 9.3% of the stock. On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data suggests that insiders own under 1% of Exxaro Resources Limited in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around R37m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 28% stake in Exxaro Resources. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Exxaro Resources (1 makes us a bit uncomfortable!) that you should be aware of before investing here. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
19-05-2025
- Business
- TimesLIVE
Exxaro accelerates diversification with strategic manganese acquisition
Exxaro Resources announces its entry into the manganese sector with the acquisition of a portfolio of assets in SA's world-class Kalahari Manganese Field. The company entered into binding agreements to acquire a portfolio of manganese assets from Ntsimbintle Holdings and OM Holdings. These include interests in Tshipi Borwa, Mokala and Hotazel manganese mines. The R11.67bn transaction marks a strategic expansion into transition minerals essential for steel and renewable technologies. This bold step aligns with Exxaro's strategy to diversify into transition minerals and energy solutions while remaining anchored in its coal base. The acquisition enhances Exxaro's operational footprint, unlocks long-life resources, and supports SA's just energy transition — reinforcing Exxaro's role as a purpose-driven leader in the mining sector.
IOL News
14-05-2025
- Business
- IOL News
Exxaro Resources acquires manganese assets for R11. 67 billion in South Africa
JSE-listed Exxaro Resources has announced its agreement to acquire manganese assets in South Africa for R11.67 billion The deal includes key assets within the Kalahari Manganese Field and will provide Exxaro with stakes in several operating manganese mines, including Tshipi Borwa, Mokala, and Hotazel manganese mines. JSE-listed Exxaro Resources has announced its agreement to acquire manganese assets in South Africa for R11.67 billion. In a statement issued to the media on Tuesday, the Eskom coal supplier said the acquisition enhances its commodity diversity and strengthens its position with long-life assets. Ben Magara, CEO of Exxaro, said the acquisition provides Exxaro with a strong entry point into the manganese sector. "This acquisition provides Exxaro with a strong entry point into the manganese sector. Manganese is essential to steelmaking and has a growing market in the battery and renewable technology supply chains." Magara said. "The acquisition will see us deploy our operational and commercial expertise in bulk commodities, logistics, and deep knowledge of the South African mining landscape, including the regulatory environment, to unlock sustained growth and stakeholder value in the Kalahari Manganese Field.' The company added that the acquisition was also part of its natural strategic commitment to building a sustainable, future-fit portfolio.
TimesLIVE
13-05-2025
- Business
- TimesLIVE
Coal miner Exxaro agrees deal to buy manganese assets in Northern Cape
Exxaro Resources said on Tuesday it has reached an agreement to buy manganese mines in SA in a deal worth R11.67bn as it diversifies into green transition minerals. The SA coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said. The coal miner has been seeking to diversify into manganese and copper as it positions itself to benefit from surging demand for the minerals, vital in the global transition from fossil fuels to cleaner energy technologies. 'The acquisition provides Exxaro with a strong entry point into the manganese sector,' said Ben Magara, who took over as CEO in April. South Africa is the world's biggest producer of the steelmaking ingredient. Manganese is also used in lithium-ion ore batteries for electric vehicles. The deal gives Exxaro exposure to four operating manganese mines in the Northern Cape. The mines have long-term contracts with customers in China and India where Exxaro sells its coal, it said.
Zawya
17-04-2025
- Business
- Zawya
South Africa: Exxaro, Eskom MoU to reduce carbon emissions, improve air quality and ensure a just energy transition
A Memorandum of Understanding (MoU) that focuses on collaboration on strategic initiatives, research, and projects in the areas of carbon emissions reduction, air quality and a Just Transition has been entered into by Exxaro Resources and Eskom. Dan Marokane, group chief executive, Eskom and Ben Magara, CEO of Exxaro Resources. the two organisations have signed a MoU to reduce carbon emissions, improve air quality and ensure a just transition to a low-carbon economy The agreement focuses on jointly measuring, managing, and reducing Scope 1, 2, and 3 emissions and potentially investing in innovative technologies to drive decarbonisation. It also emphasises inclusive and focused transition initiatives such as skills development, job creation in green sectors, and stakeholder engagement to ensure climate resilience. Additionally, the MoU includes provisions for data sharing and transparent reporting to track progress and ensure accountability. The initial focus in the collaboration will guide the necessary investments and stakeholders needed to find technology-based solutions to the challenges associated with the transition to a low-carbon economy, aligned with the country's Integrated Resource Plan (IRP). Eskom Research business unit The Eskom Research, Testing & Development (RT&D) business unit will lead this partnership at Eskom. The unit is dedicated to finding technology solutions that can be applied primarily within the company to embrace innovation, namely enhance efficiency and improve operations, improvements related to emissions management, Green House Gas (GHG) abatement, and beyond, One of the key areas of focus for RT&D is assisting the business in a differentiated approach with multiple pathways to move from high-carbon to low-carbon energy sources through identifying technology and processes that enable the economy to be competitive and sustainable while enabling Eskom to be as efficient as possible. Enabling a just transition 'This collaboration marks a significant step forward in our commitment to enabling a just transition (known as an impactful transition at Exxaro) and building a climate-resilient and low-carbon future,' says Ben Magara, CEO of Exxaro Resources. He adds that leveraging their deep experience in the diversified mining and energy solutions sectors, they aim to drive innovation that not only decarbonises and reduces air pollution in their operations but also delivers meaningful socio-economic benefits for the communities they serve. 'The collaboration with Eskom is important as we work to accelerate practical and scalable solutions that support South Africa's energy security and environmental ambitions as part of our purpose of Powering Better lives in Africa and beyond.' Explore practical, scalable solutions Dan Marokane, group chief executive of Eskom, says,' Both organisations are committed to driving the transition to a more sustainable energy future, while ensuring the country's electricity supply remains secure and we wanted to bring together our decades of experience in the coal value chain to explore practical, scalable solutions. He adds that this initiative forms part of Eskom's focus in this country and internationally to identify the latest developments and strategies to reduce carbon emissions and other air pollutants. The MoU is consistent with South Africa's commitment to achieving the goals of the Paris Agreement, international environmental standards, and national regulatory frameworks. Exxaro on sustainable impact Exxaro remains steadfast in advancing its Sustainable Growth and Impact strategy by embedding key ESG priorities into its operations. Exxaro's sustainable mining practice focus areas include decarbonisation and climate resilience, improving air quality, rehabilitating mined land, protecting biodiversity, and enhancing energy and water efficiency. This also includes a commitment to minimising waste through circular economy practices and by proactively fostering strategic partnerships to amplify its impact. These initiatives reflect Exxaro's dedication to building a sustainable and inclusive future for our business, communities, and the environment as part of powering better lives in Africa and beyond. A balanced and diversified energy mix Eskom remains focused on a balanced and diversified energy mix based on existing coal and nuclear and introducing gas for baseload power as well as renewables, energy storage systems including BESS (Battery Energy Storage Systems) and pumped hydro, to achieve overall security of supply and to meet South Africa's growing electricity demand in a sustainable manner.
