[miningmx.com] — DIVERSIFIED miner Exxaro said on Thursday it expects to report a rise in first-half headline earnings per share, boosted by good performance at its coal business.
Exxaro said it expects headline earnings per share for the six months to the end of June of between 961 cents and 1,055 cents, which would be an increase of between 41% to 55% on the comparison period. The forecast excludes an impairment charge of R439m for its Zincor refinery, which the company plans to close.
“The coal business is expected to deliver higher operating results than the corresponding period in 2010 primarily due to higher export volumes at higher international selling prices,” the company said in a trading statement.
The miner also said that its mineral sands would report a higher consolidated net operating profit for the period on the back of higher commodity prices, while the base metals unit will record an operating loss due to operational challenges at Zincor.
Shares in Exxaro are up 33% so far this year, compared with a 3.9% fall in Johannesburg’s Top-40 index of blue chips.
