Exxaro warns of price, production dip in first half

With respect to the company’s key commodities, the average benchmark API4 Richards Bay Coal Terminal (RBCT) export price for the first six months of the year is expected to average $101/t, compared with $112/t in the second half of 2023, free-on-board (FOB), a decline from the previous six months.

Additionally, the iron-ore fines price for the first half of the year is expected to average $117 per dry metric tonne (DMT), including the cost and shipping to China, down from $121/DMT in the previous six months.

Total coal production, including buy-ins, and sales volume for the first six months of the year are expected to decrease by 14% and 12%, respectively, mainly owing to reduced demand from Eskom for coal produced at the Grootegeluk mine, based on the utility’s latest internal plan.