Exxaro warns of lower interim earnings
Diversified mining company Exxaro says it expects its headline earnings per share (HEPS) for the six-month period ended June 30 to be between 31% and 45% lower than that reported for the six-month period ended June 30, 2023.
The company attributes this mainly to the coal business, where lower sales prices and sales volumes were achieved amid ongoing logistical challenges and reduced offtake from Eskom.
That was partially offset by a slightly weaker exchange rate.
“We expect a higher contribution from our energy business due to slightly improved wind conditions compared to the six-month period ended June 30, 2023. Income from our equity-accounted investments at Sishen Iron Ore Company and Mafube Coal were also negatively impacted by lower prices,” it says.
Additionally, earnings before interest, taxes, depreciation, and amortisation for the six-month period are expected to decrease by between 27% and 41% compared with the prior comparable quarter.
Exxaro will release its reviewed condensed financial results for the six-month period on or about August 15.
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