Johannesburg, South Africa — MININGREVIEW.COM — 17 February 2009 – South African diversified miner Exxaro has revealed that it is expecting to report a more than 100% increase in headline earnings per share for 2008, boosted mainly by higher sales and prices at its coal unit.
South Africa’s biggest black-owned mining group, and the main supplier of coal to state-owned utility Eskom, the company revealed in a statement here that it expected to report headline EPS of between 1 045 and 1 060 cents for last year – more than double the 425 cents achieved in the previous year.
Reuters explains that headline EPS is the main profit gauge in South Africa, and strips out certain one-off, financial and non-trading items.
Exxaro confirmed that its coal business would report what it described as “a substantial improvement” in net operating profit, boosted by higher sales at improved average prices.
The company went on to say that the mineral sands business would report a consolidated net operating profit, aided by a first contribution from Namakwa Sands, which Exxaro bought from Anglo American in October last year.
It added that its base metals unit would report a net operating loss, owing to significantly lower average zinc prices.
Exxaro said it would issue its results on 24 February 2009.