Johannesburg - Diversified resources group
Exxaro Resources [JSE:EXX]
reported a 39% drop in first-half headline earnings on
Thursday, booking an impairment of R292m on a coal mine that
could cease production.
Exxaro's headline earnings per (EPS) share came in at 712
cents for the six months to end June compared to 1 162 cents in the same
period last year. Headline EPS is the main profit gauge and strips out certain one-time items.
The company, a big supplier to power utility Eskom,
said total coal production coal production remained stable at 19 million
An interim dividend of 235 cents a share was declared, a 33% decline from last year's interim payout.
The coal producer, with interests in iron ore and base
metals, said its second-half results are expected to be negatively
impacted by low coal prices, volatility in the rand-dollar exchange rate
and the availability of trains for coal exports.
Exxaro is developing new markets in China, India and Pakistan and said a proposed ban on low-grade imports to China may benefit higher-grade South African coal.
Domestic market demand is expected to be sensitive to
international market pricing influences but supply to Eskom from Exxaro
remains on schedule at agreed supply levels despite delays in the
utility's new power stations.
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