Exxaro expects lower earnings, shares drop

Johannesburg - Shares in Exxaro Resources [JSE:EXX] fell on Tuesday after the coal miner said lower export iron ore prices hit its earnings.

Exxaro, which also has interests in titanium dioxide, ferrous and energy markets, expects earnings for the half-year to end-June to be at least 20% lower than the corresponding period a year ago.

Exxaro's stock dropped 5% to R88.85 by 14:35 GMT, outpacing a slightly weaker JSE All-share index.

The drop in earnings was mainly attributable to the expected lower income from its stake in the Sishen Iron Ore Company, operator of the Sishen mine in South Africa's Northern Cape province, the company said.

Exxaro holds 20% in the company that runs one of the largest open pit mines in the world, while Kumba Iron Ore holds 73%.