Exxaro gains as Tronox sale prompts R4.5bn dividend

Johannesburg - Exxaro Resources [JSE:EXX] rose the most in 11 months after the miner declared a R4.5bn special dividend following the sale of part of its stake in titanium-dioxide producer Tronox.

Exxaro raised about $474m after selling 22.4 million Tronox class A shares in October, leaving it with about 24% of the US company’s total voting shares. The coal miner considered issues including growth prospects, future capital commitments and debt repayment when deciding how to use the proceeds of the sale, it said in a statement on Tuesday.

“Following the evaluation of the group’s capital structure, the board of directors has resolved to pay a special dividend” out of income reserves, Exxaro said. The payout equates to R12.55 per Exxaro ordinary share.

Exxaro rose 0.02% to R143.99 at 9:42 in Johannesburg.

“For future Tronox share disposals, the board of directors will continue to evaluate its funding requirements for future capital commitments, to repay debt and to return capital to shareholders,” the company said.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
16.90
(-0.09)
ZAR/GBP
21.37
(-0.09)
ZAR/EUR
19.23
(-0.20)
ZAR/AUD
11.82
(-0.00)
ZAR/JPY
0.16
(+0.07)
Gold
1809.98
(+0.11)
Silver
18.75
(+0.37)
Platinum
851.00
(+0.40)
Brent Crude
43.32
(+0.49)
Palladium
1924.23
(+0.91)
All Share
55870.69
(+1.13)
Top 40
51558.75
(+1.25)
Financial 15
10275.29
(+1.87)
Industrial 25
77503.35
(+0.84)
Resource 10
52793.47
(+1.49)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1787 votes
I am taking a hit, but should be able to recover in the next year
23% - 2346 votes
My finances have been devastated
35% - 3512 votes
It's still too early to know what the full effect will be
25% - 2525 votes
Vote