Stronger rand and cost pressures drag down Exxaro’s earnings

Exxaro Resources says it expects its headline earnings per share (Heps) for the six-month period ended 30 June 2026 to decrease between 18% and 23% compared to the six-month period ended 30 June 2025.

This is the equivalent of 1 3271 cents and 1 414 cents lower per share.

This is mainly attributable to lower income from the company’s equity-accounted investments at Sishen Iron Ore and Black Mountain Mining, the JSE-listed miner said in a trading statement on Friday.

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It said Sishen’s results were negatively impacted by the strengthening of the rand against the dollar and above-inflationary increases in key mining input costs compared to the prior period, largely reflecting the effects of the conflict in the Middle East.

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The decrease in equity-accounted income from Black Mountain Mining was mainly driven by higher production costs and a delayed ramp-up of the Gamsberg project.

Similarly, the group is also set for a decrease in attributable earnings per share in the period under review.

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Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the six-month period are expected to be broadly in line with the figure seen a year ago.

Exxaro will release its interim results on 20 August.

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