Exxaro reports FY 2013 HEPS increase

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The South Africa-based mining group saw basic headline earnings per share (HEPS) increase to 1,463 cents for the year ending 31 December 2013 from 1,401 cents for the same period in 2012.

“Headline earnings, which exclude the impact of the impairment and partial impairment reversal as well as profits realised on the sale of discontinued subsidiaries and other non-core assets, were 1,463 cents per share, representing a four per cent increase on 2012 headline earnings per share. This was mainly due to the 32 per cent increase in the coal business net operating profit,” [DATA EXX:Exxaro Resources Limited] said.

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It also reported group revenue at 13.5 billion rand for the 2013 period and cash generated by operations was at 2.1 billion rand.

“Group consolidated revenue decreased by 16 per cent to 13.5 billion rand, mainly as a result of the exclusion of the mineral sands and Rosh Pinah businesses in the 2013 results. These businesses were sold in 2012 and were included for five-and-a-half and five months, respectively, in the 2012 financial year. This was partially offset by an 11 per cent revenue increase from the coal operations,” it said.

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“Cash generated from operations was 2.1 billion rand for the group. This was primarily used to fund net financing charges of 192 million rand, taxation payments of 158 million rand and pay dividends of 1.3 billion rand.”

Investment income increased from three million rand in 2012 to 12 million rand in 2013 and operating profit was at 849 million rand.

“Despite global economic risks, mainly related to oil prices, United States tapering of quantitative easing and the fragile Euro zone, volatile exchange rates and commodity prices, the global economy still points to a gradual recovery for 2014,” Exxaro said.

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“The South African economic growth outlook is expected to remain fragile with a weakening exchange rate which will dampen domestic demand and increase inflation. Labour discontent on the back of unresolved socio-economic issues and union rivalry are expected to remain a challenge for the local mining industry.”