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FINANCE DIRECTOR'S PRE - CLOSE MESSAGE SIX - MONTH PERIOD ENDING 30 JUNE 2021 ( 1H21 ) ( THE PERIOD ) DEAR STAKEHOLDER We have provided an overview of the group's expected business performance for the period , encompassing strategic , operational and financial information . Unless otherwise indicated , all comparisons are against the six - month period ended 31 December 2020 ( 2H20 ) . The health and safety of our employees and communities continues to be our priority , as South Africa experiences a third wave of COVID - 19 infections . In line with our Health and Wellness Strategy , which focuses on diagnosis , management and prevention of diseases , our response to the COVID - 19 pandemic ( the pandemic ) has prioritised avoiding , reducing and managing COVID - 19 infections . As at 20 June 2021 , the infection rate of the group is 0.51 % ( 93 active cases ) and our recovery rate is 96 % . We remain committed in our fight to prevent further loss of life and continue to implement COVID - 19 preventive measures in line with government regulations and recommendations . We have successfully vaccinated 100 % of our healthcare workers and have commenced with the vaccination of employees over 60 years of age . The Grootegeluk and Matla occupational health centres have been registered and approved as primary vaccination sites with the National Department of Health . These sites have commenced with the procurement processes of vaccines for the inoculation of our employees . Amid the backdrop of the pandemic , it is pleasing to be able to report on our record year - to - date safety performance as at 31 May 2021. We have achieved a total of 51 months without a work - related fatality and a lost - time injury frequency rate ( LTIFR ) of 0.08 , the same as the set target . This is , however , 40 % worse than the 0.05 reported for FY20 . Zero Harm remains Exxaro's key business objective . World economic recovery from the pandemic and associated restrictions which induced recession continued into 2021. After a 1 exxaro POWERING POSSIBILITY temporary pause during 1Q21 , the global economic expansion resumed in the second quarter of 2021 , lifting global economic output above pre - pandemic levels . However , increased commodity prices , poorly functioning supply chains and some labour supply challenges increased global inflationary pressures during the period under review . In respect of Exxaro's key commodities for 1H21 , the API4 coal export price index is expected to average US $ 95 ( 2H20 : US $ 64 ) per tonne , free - on - board ( FOB ) , and the iron ore fines price at US $ 183 ( 2H20 : US $ 122 ) per dry metric tonne , cost and freight ( CFR ) China . Total coal production ( excluding buy - ins ) and sales volumes are expected to decrease by 11 % and 9 % respectively , mainly due to logistical constraints linked to the Transnet Freight Rail ( TFR ) performance , the impact of the pandemic on our operations and some adverse weather conditions , further explained under operational performance . In terms of our capital allocation framework , we expect the capital expenditure for 1H21 in our coal business to decrease by 39 % compared to 2H20 , mainly due to timing in sustaining capital expenditure and some projects nearing completion , offset slightly by the roll - over of GG6 expansion spend from FY20 due to the pandemic . As at 31 May 2021 , the group's net debt ( excluding Cennergi's net debt of R4.6 billion ) was R1.4 billion ( FY20 : R6.3 billion ) . As previously mentioned , Exxaro concluded its stated strategy to monetise its investments in Tronox during March 2021 and receiving proceeds of R5 763 million from the disposal . FINANCE DIRECTOR'S PRE - CLOSE MESSAGE - 30 JUNE 2021 Following the release of the Annual Results for the year ended 31 December 2020 , Exxaro has continued its strategy to reward shareholder investment . In May 2021 , approximately R1 950 million was paid to shareholders as a special dividend . Exxaro has also implemented a share repurchase program of R1.5 billion . This is being executed in terms of the general authority granted by shareholders at the company's annual general meeting , held on 28 May 2020 and again on 27 May 2021. The share repurchase program will continue after the commencement of the prohibited period on 30 June 2021. Shares that may be repurchased during the prohibited period will be done so in accordance with a repurchase program put in place by Exxaro prior to the prohibited period pursuant to paragraph 5.72 of the JSE Listings Requirements . amo On 26 April 2021 , Exxaro implemented and effected a drawdown on a new facility agreement with various financial institutions as a combined facility to refinance the term loans and revolving credit facility . The new facility , nting to R8 billion in total , is comprised of a bullet term loan facility of R2.5 billion ( with a term of five years ) ; an amortising term loan facility of R2.25 billion ( with a term of five years ) ; and a Revolving Credit Facility ( RCF ) of R3.25 billion ( with a term of five years ) . Exxaro may , at any time during the accordion availability period , increase the RCF commitment in an amount which , when aggregated with the amount of any previous accordion increases , does not exceed R2 billion . From a solvency and liquidity perspective , in addition to operational measures implemented to combat the spread of COVID - 19 and the drawdown on the new facility , further downside scenarios have been used to stress test our position . As a result , management and our board of directors believe that the group has sufficient liquidity to withstand an interruption to our operations and will remain a going concern for the foreseeable future . We will provide a detailed account of our 1H21 business performance and an outlook on the subsequent six months to year - end ( 2H21 ) when we announce our interim financial results on 12 August 2021 . Yours sincerely Riaan Koppeschaar Finance director