Diversified miner Exxaro Resources expects to report a 5% to 19% increase in headline earnings per share (HEPS) to between R28.05 and R31.80 for the year ended December 31.

Attributable earnings per share (AEPS) are also expected to be between 32% and 46% higher year-on-year at between R36.97 and R40.89.

The higher AEPS was owing to an increased contribution from the company’s equity-accounted investments, which more than offset lower earnings before interest, taxes, depreciation and amortisation (Ebitda) contributions from the company’s managed operations.

Exxaro said the Ebitda for 2019 review should be between 8% and 22% lower at between R5.4-billion and R6.3-billion, compared with R6.9-billion in 2018.

“While coal export sales volumes were higher than the prior year, there was a significant decline in the benchmark API4 export price.

“Although we received higher prices in the domestic markets for our products, the impact was offset by lower offtake at the Medupi and Matla power stations, as well as the sale of Exxaro’s North Block Complex mine to Universal Coal at the end of 2018,” the company reported.

Exxaro further said the lower volumes were somewhat offset by higher production at the company’s other mines in Mpumalanga.

Meanwhile, the company stated that operating costs were negatively impacted on in the year under review by the provision for voluntary severance package costs and the higher cost of overburden removal, rehabilitation provisioning and distribution costs – which were in line with higher export volumes.

After adjusting for noncore items for both financial years, core HEPS for 2019 was expected to increase by 2% to 14% to between R22.02 and R24.61, compared with core HEPS of R21.59 apiece in 2018.

After adjusting for noncore items for both financial years, core Ebitda for the year under review was expected to decrease by 14% to 28% to between R5.2-billion and R6.2-billion, compared with core Ebitda of R7.2-billion in 2018.

Exxaro will release its results on March 12.