The group’s net operating loss reported for the year ended 31 December 2014 is expected to improve by at least R658 million (20%) for the year ending 31 December 2015. This is largely due to the non-recurring pre-tax impairment loss of the Mayoko iron ore project amounting to R5 760 million in 2014.
A slightly higher net operating profit is anticipated from the coal operations for the year ending 31 December 2015 mainly due to higher export coal sales volumes at lower average Rand selling prices and higher Eskom sales due to the Medupi power station ramp-up in 2015, off-set by the non-recurring shortfall income recorded in 2014. Following the acquisition of Total Coal South Africa Proprietary Limited, the coal operations’ financial results for 2015 will include this business (now renamed to Exxaro Coal Central Proprietary Ltd) with effect from 1 September 2015.
Headline earnings for the year ending 31 December 2015 are expected to be at least R973 million (20%) lower than the comparative period ended 31 December 2014. The decrease in headline earnings is primarily attributable to the expected decrease in income from equity-accounted investments as a result of the decrease in iron ore, mineral sands and pigment commodity prices in 2015. As such, headline earnings per share (HEPS) are also likely to be at least 274 cents (20%) lower than the comparative year ending 31 December 2015.
Attributable losses reported for the year ended 31 December 2014 are likely to improve by at least R177 million (20%) for the year ending 31 December 2015. This improvement is primarily due to the non-recurring post-tax impairment loss of the Mayoko iron ore project amounting to R5 208 million recorded in the year ended 31 December 2014. As such, attributable losses per share (ALPS) are also likely to improve by at least 50 cents (20%) than the comparative period ended 31 December 2014.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldcoal.com/coal/12112015/exxaro-trading-statement-1600/