Exxaro expects 30% to 40% increase in FY17 core HEPS

2nd March 2018 By: Nadine James - Features Deputy Editor

JOHANNESBURG (miningweekly.com) – Diversified miner Exxaro Resources expects to report a 30% to 40% increase in core headline earnings per share (HEPS) for the year ended December 31.

The core HEPS excludes one-off items, including costs relating to the implementation of its replacement black economic empowerment transaction, as well as gains on the partial disposal of its shareholding in chemical company Tronox.

Exxaro is of the view that these one-off items should be excluded from the calculation of earnings and attributable earnings a share, in order to enable a more meaningful comparison to be made to the prior year’s results.

“While the coal business benefited from higher selling prices and volumes, the group’s results were impacted by one-off items . . . therefore, Exxaro’s HEPS are expected to be between 24c and 29c, compared with 1 302c reported for the year ended December 31, 2016,” the company reported.

Further, attributable earnings a share are expected to decrease by between 6% and 15% year-on-year.

Exxaro will release its financial results on March 8.