Exxaro swings to a loss on R5.76bn write down of its Congo mine
EXXARO, SA’s second largest coal producer, showed resilience in a weak coal market by growing revenue last year after exporting higher volumes and benefiting from weaker rand prices.The group warned last month it would report a loss for the year to December 31 because of its disastrous investment in the Republic of the Congo.Wim De Klerk, the group financial director, said the year had held some important highlights and low lights.One of the highlights was a strong performance locally at its coal business where revenue grew 21% to R3.3bn compared to 2013.The coal business’s operating margins remained stable at 20% compared to 21% in 2013. Coal accounts for more than half of Exxaro’s revenue.The contribution from its 19.98% shareholding from the Sishen Iron Ore Company fell 32% in 2014 to R2.83bn as a result of the 47% fall in iron ore prices.Overall the group reported a net loss of R884m for the 2014 financial year, from a profit of R6.2bn in 2013. Revenue for the group rose to R16....
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