Exxaro posts 6% drop in adjusted earnings

Johannesburg - Coal producer Exxaro [JSE:EXX] said on Thursday its adjusted full-year earnings fell 6% due to an impairment charge of R5.8bn related to an iron ore project in the Congo Republic.

Diluted headline earnings per share totalled 1 368 cents in the year to December 2014 compared to 1 459c in the previous year, the company said in a statement.

Exxaro slashed its final dividend by a third to 210c per share.

The Mayoko iron ore project, which it acquired in 2012 from Africa Iron, was written down due to delays in finalising certain agreements and a revised concept study that showed higher developmental costs.

The company, which also has interests in iron ore and base metals, said coal production volumes were muted at 39.1 million tonnes.