Exxaro reports healthy improvements mainly due to Sishen
Exxaro Resources headline earnings for the six-month period ended 30 June 2021 is expected to increase between 99% and 111% compared to the six-month period ended 30 June 2020. This was mainly due to the increase in its equity-accounted income from Sishen Iron Ore Company.
Attributable earnings for the six-month period ended 30 June 2021 is expected to increase between 84% and 96% compared to the six-month period ended 30 June 2020. In addition to the increase in equity-accounted income in the current period, the financial results in both periods were influenced by various once-off items, such as the gain on the disposal of its Tronox investments in the current period, as well as a gain on the deemed disposal of the previously held 50% equity interest in the Cennergi joint venture in the comparative period.
EBITDA for the six-month period ended 30 June 2021 is expected to increase between 5% and 17% compared to the six-month period ended 30 June 2020, mainly due to the inclusion of Cennergi results for the full six-month period.
EBITDA is calculated by adjusting net operating profit before tax with depreciation, amortisation, impairment charges/reversals and net losses or gains on disposal of assets and investments (including translation differences recycled to profit or loss).
Whilst coal production and sales volumes were impacted by the COVID-19 pandemic and Transnet Freight Rail (TFR) challenges, a healthy increase in the average benchmark API4 export price contributed positively to the coal financial performance.
Exxaro will release its reviewed financial results for the six-month period ended 30 June 2021 on 12 August 2021. Further details are available on our website, www.exxaro.com.
The forecast financial information on which this trading statement is based has not been reviewed, audited nor reported on by Exxaro’s external auditors. Exxaro is one of the largest South African based diversified resources companies, with interests in coal, iron ore and energy.
