JOHANNESBURG (miningweekly.com) - JSE-listed Exxaro said on Thursday that it expected its headline earnings to rise with between 60% and 73% for the half-year ended June 30, compared with the same period last year, to between 650c a share and 700c a share.

The group said in a statement that results were positively impacted on by a stronger global economic recovery resulting in higher commodity prices for the period, partially offset by a stronger average realised exchange rate.

Meanwhile, Exxaro's coal business was expected to deliver higher operating results for the reporting period, owing primarily to higher international sales prices and the inclusion of the operating results from the Mafube joint venture, which it acquired in June last year.

The mineral sands business would report a consolidated net operating profit, as a result of higher commodity prices, improved sales volumes, disciplined cost management as well as the final proceeds of an insurance claim received during the period for the water ingress incident that occurred at the KwaZulu Natal Sands furnace in February 2008.

Exxaro said that its base metals business was expected to report a marginal increase in net operating profit mainly owing to higher commodity prices for the six months ended June 30, 2010.

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