EXXARO RESOURCES (EXX) Shares
ABOUT EXXARO RESOURCES
Exxaro Resources was first established in 2006 when Kumba Resources Limited unbundled its coal and other assets to merge with Eyesizwe Coal as Exxaro Resources Limited. Today, the group is a leading diversified resources group with a major stake in heavy minerals and large coal mining, managing six coal mines in the Mpumalanga and Limpopo provinces of South Africa under one of the most productive management systems in the country. The company also has an extensive asset portfolio that includes the chemicals, ferrous and energy industries, with a global reach spanning Africa, America, Europe, Asia and Australia. Exxaro has large stakes in the Sishen Ore Company and also recently entered the green energy market with a 50/50 joint venture with Tata to build two wind projects in the Eastern Cape.
Differentiating itself in the mining sector with its focus on social development and environmental conservation, Exxaro enjoys a constituency of the Socially Responsible Investment index of the Johannesburg Stock Exchange (JSE), where it currently trades under the stock symbol EXX with a market cap of over R60 billion, as well as its listing under the JSE Top 40 Index.
Exxaro Resources also works to boost its position in the mining industry through its focus on sustainability, encompassing several initiatives that include health, safety, environmental conservation and education. The group’s focus on health allows its employees to access quality and affordable health care, and sets yearly safety targets geared at achieving zero injuries and fatalities. Exxaro is also ranked #1 in ESG performance on selected metrics for resource companies as it strives to reduce its carbon emission footprint, while its education initiatives are heavily focused on employee skills development with a number of bursaries available to local communities in order to allow them to apply for positions in the company. To this end Exxaro spent over R400 million between 2008 and 2017 on socio-economic development initiatives.
With 70% of its employees sourced from South Africa, Exxaro also prides itself on its BEE structure which operates throughout all three of its subsidiaries.
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EXXARO RESOURCES PERFORMANCE
- Exxaro Resources heavy investment in the coal mining industry has mitigated a downturn in bulk commodity prices, financial data reflecting that cost cutting initiatives allowed the group to record a profit of R267 million in 2015 alone, with an asset value of about R52.6 billion, stabilising its share price for a good dividend yield.
- As such, the company’s investment in the R3.8 billion Belfast coal mine is reported to bring a return of approximately 2.2 million tonnes of steam coal and 500 000 tonnes of power station coal annually. Added to this, Exxaro’s expanded investment in the Grootgeluk mine will allow for a massive coal supply to Eskom’s Medupi Power Station, securing a long-term demand for coal there.
EXXARO RESOURCES INVESTOR TIPS
- With Exxaro Resources ongoing lucrative investments in coal amid improved trade conditions, analysts forecast that the current soft price of the company’s shares make this a good buy for investors who choose to purchase them on the JSE, predicated on the inevitable upswing of the mining sector.
- While the live online stock charts show a current price decrease, Exxaro shares are set to outperform the market, making this a good buy in 2019 and beyond.
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Buy EXXARO RESOURCES stocks / shares – ? A Step by Step Guide how to Buy / Purchase EXXARO RESOURCES Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy EXXARO RESOURCES Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN EXXARO RESOURCES STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE EXXARO RESOURCES STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of EXXARO RESOURCES stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy EXXARO RESOURCES stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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