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South Africa-based diversified miner Exxaro Resources expects to announce in its interim report year-on-year growth amounting to between a 99- to 111-percent rise in headline earnings per share (HEPS), Mining Weekly reported.
The report expected for the first six months of 2021 ending June 30 should see HEPS between R26.32 and R27.92. This compares with HEPS of R13.21 posted for last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) are likely to be between R4 billion and R4.5 million, representing a 5- to 17-percent increase year-on-year.
EBITDA is expected to be slightly higher compared to the same period a year ago when it recorded R3.929 billion in a 40-percent increase triggered by increased sales to the power utility company, Eskom, and a 39-percent rise in exports during the period.
The rise in the company’s earnings this year is attributed to an increase in equity-accounted income from Sishen Iron Ore, one of the largest open-pit mines in the world, where it holds a 26-percent stake.
A lower weighted average number of shares following a share buy-back program also accounts for an increase in EBITDA.
The company will release its results on, or before, Aug. 12.
Exxaro Resources
Exxaro Resources is a large coal and heavy minerals mining company in South Africa led by Nombasa Tsengwa.
She was appointed in March as Exxaro’s CEO, succeeding Mxolisi Mgojo, a founding member and the former CEO, chairman and executive director of the company.
Exxaro operates in the Mpumalanga and Limpopo regions, where the country’s highest coal resource concentrations can be found. The Johannesburg Stock Exchange-listed company operates facilities and offices in Africa, Asia, Europe and Australia.
