JOHANNESBURG (miningweekly.com) - Diversified miner Exxaro Resources has resolved to pay a special dividend of R4.5-billion out of income reserves following the sale of a portion of its interest in US mineral sands producer Tronox.
Exxaro in October 2017 sold about 22.4-million shares in Tronox for R6.5-billion.
In assessing the application of the proceeds realised on the sale, Exxaro's board considered the group's growth prospects, future capital commitments, the repayment of debt and the return of capital to its shareholders.
The special dividend, which has been approved by the Financial Surveillance Department of the South African Reserve Bank, equates to R12.55 per Exxaro ordinary share.
Exxaro still owns about 28.7-million Tronox shares. Should it, in future, decide to sell further shares in Tronox, the board will again evaluate the group's funding requirements for future capital commitments, to repay debt and to return capital to shareholders.
Exxaro's JSE-listed shares rose 9% on Tuesday morning.Creamer Media Senior Deputy Editor Online