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South Africa's Exxaro buoyed by equity investments as core profit falls
JOHANNESBURG, Aug 22 (Reuters) - South African miner Exxaro
Resources on Thursday reported a 42% rise in half-year
headline profit as income from equity investments offset lower
Headline earnings per share (HEPS) rose to 17.30 rand per
share in the six months to the end of June, from 12.22 rand per
share a year earlier. HEPS is the main profit gauge in South
Africa and strips out certain one-off items.
Income from equity investments rose to 2.92 billion rand
($192 million) from 1.05 billion in the prior period, boosted by
the company's 21% stake in Sishen Iron Ore Company, a subsidiary
of Kumba Iron Ore Limited.
Earnings before interest, tax, depreciation and amortisation
(EBITDA) dropped 29% to 2.81 billion rand from 3.95 billion rand
in the previous year.
The miner said its EBITDA fell due to factors including
lower revenue, inflationary pressure on costs, and higher
distribution costs driven by larger export volumes.
Coal production volumes fell 6%, impacted by the divestment
of North Block Complex operations at end of October 2018, as
well as lower production at its Matla mine, and lower demand
from Eskom for the Medupi Power Station affecting production at
its Grootegeluk mine.
The firm declared an interim cash dividend of 864 cents per
share, up 63% year-on-year, and a special cash dividend of 897
cents from the proceeds of its disposal of a stake in U.S.
titanium products company Tronox
($1 = 15.2421 rand)
(Reporting by Tanisha Heiberg, Editing by Sherry Jacob-Phillips
and Mark Potter)
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