Exxaro first half earnings drop 62%, cuts dividend

Johannesburg - South African miner Exxaro [JSE:EXX] posted a 62% fall in half-year earnings and cut its interim dividend on Thursday following a drop in commodity prices.

Exxaro, South Africa's second-biggest coal miner, posted first-half diluted headline earnings per share at 303 cents from 790c in the same period a year ago.

The company said in May that it expected its first half headline earnings, the main profit measure, to decline by at least 20%.

Exxaro, which is especially exposed to swings in the price of coal, iron ore and mineral sands, expects tough market conditions to continue.

"We expect market oversupply, coupled with low demand in our commodity portfolio to persist in the near term, which will demand more rigorous efforts to ensure short-term survival and sustainable long-term profitability," the company said in a statement.

Exxaro declared an interim dividend of 65 cents, down 75% on last year.