Exxaro‘s headline earnings (HE) for the six months to June ‘15 could be at least 20% (R563 million) lower than the HEs of R2.8 billion for the prior comparative period to June ’14 owing to the major drop in income from Sishen.
Confirmation of this will be announced on 20 August ’15 when Exxaro released its annual financial results for the six month period to June ’15.
The expected decrease in income from Kumba Iron Ore’s Sishen Iron Ore Company equity-accounted investment is a result of the significant decrease in the export iron ore prices during the period.
As such, headline earnings per share (HEPS) are also likely to be at least 20% (159 cents) lower than the HEPS of 793 cents for the prior comparative period ended 30 June ‘14.
The attributable loss for the six-month period ending 30 June ‘15 is likely to show an improvement of at least 20% (R488 million) when compared to the attributable loss of R2.4 billion for the prior comparative period ended 30 June ‘14.
The expected improvement in the attributable loss for the six-month period ending 30 June ‘15 is primarily due to the non-recurring post-tax impairment loss of the Mayoko iron ore project amounting to R5.2 billion at 30 June ‘14.
As such, the attributable loss per share (ALPS) is also likely to improve by at least 20% (138 cents) compared to the ALPS of 688 cents for the prior comparative period ended 30 June ‘14.