Why Exxaro is upbeat about its coal unit
Prices better than a year ago, while shareholders will benefit from placement of remaining Tronox shares in 2018
Coal and iron ore company Exxaro expected its coal business to perform better in the coming year due to good domestic and global demand and initiatives to improve efficiency, finance director Riaan Koppeschaar said on Friday. Exxaro’s shares had added 0.89% to R156.79 by late afternoon on Friday, a three-and-a-half-year high. In an overview of the business ahead of the December financial year-end, Koppeschaar said the average price Exxaro had received for its coal in the second half of the year was $88 a tonne and the average price received for iron ore was $67 a dry tonne. In the matching period in 2016, Exxaro realised about $75 a tonne for coal and $57 a dry tonne for iron ore. Exxaro’s iron-ore interests are represented by its 20% stake in Kumba Iron Ore’s subsidiary, Sishen Iron Ore Company. It also holds 24% of mineral sands miner Tronox after recently selling part of its stake, which netted R6.5bn. Koppeschaar said it was still Exxaro’s intention to place the remaining Tronox...
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