Investments have offset lower coal prices, Exxaro says

Exxaro Resources, which supplies coal to Eskom, said on Thursday increased proceeds from its stakes in various ventures had offset the effect of falling coal prices in its year to end-December.

Headline earnings per share (HEPS) are expected to have risen between 5% and 19% compared to the prior period's 2,672c, even though there was a “significant decline” in the price of coal for export. HEPS is a widely used profit measure in SA, and strips out non-recurring items.

Exxaro owns just over a fifth of Sishen Iron Ore, while it also has a stake in the Richards Bay Coal Terminal.

Exxaro's share price had fallen 1.06% to R116.84 in afternoon trade on Thursday, bringing its loss over the past 12 months to 21.97%.

gernetzkyk@businesslive.co.za