Exxaro reports earnings boost from coal exports and weaker rand
Diversified miner Exxaro, which supplies coal to Eskom, has reported it fared well amid SA's lockdown due to record coal exports and a weaker rand.
Earnings before interest, taxation, depreciation and amortisation (ebitda) are expected to rise by as much as 28% to R4.078bn in the group's half year to end-June, when it operated as an essential service. Ebitda is a measure of the underlying operational performance of a company, excluding items such as finance costs.
Coal prices were under pressure in dollar terms, though a weaker rand benefited the group.
Headline earnings per share is expected to fall by 18%-34% from the prior period's R17.30. This was largely due to the effect of Exxaro accounting for the non-controlling interest of its black empowerment scheme from November.
In morning trade on Tuesday Exxaro's share was up 3.95% to R144.18, on track for its best one-day performance in just over a month.