Exx - Exxaro Resources Limited - Trading Statement For The 12-month Period Release Date: 17/02/2011 10:00:01 Code(s): EXX
EXX - Exxaro Resources Limited - Trading statement for the 12-month period
ended 31 December 2010
EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN code: ZAE000084992
ADR code: EXXAY
TRADING STATEMENT FOR THE 12-MONTH PERIOD ENDED 31 DECEMBER 2010
Shareholders are advised that Exxaro will release its audited financial
results for the 12-month period ended 31 December 2010 on 24 February 2011.
Consolidated net operating profit for the group is expected to show a
considerable improvement when compared to the corresponding period in 2009.
The group results were positively impacted by a strong global economic
recovery resulting in generally higher commodity prices and volumes for the
period, partially offset by a stronger local currency and Australian dollar.
Exxaro`s coal business is expected to deliver higher operating results for the
period under review when compared to the corresponding period in 2009, mainly
due to higher international coal selling prices and an increase in domestic
sales volumes, partially offset by the negative impact of a stronger local
The mineral sands business will report a consolidated net operating profit
despite the negative impact of a stronger local- and Australian currency, due
to higher commodity prices, improved sales volumes, disciplined cost
management as well as the final proceeds of an insurance claim for the water
ingress incident that occurred at the KZN Sands Furnace 2 in February 2008.
The base metals business is expected to report a higher operating loss for the
12-month period ended 31 December 2010, mainly due to production challenges
experienced at Zincor, commodity price hedging losses, the higher cost of
external purchases of concentrate as well as higher selling, distribution,
electricity and maintenance expenses.
Headline earnings per share for the 12 months ended 31 December 2010 are
expected to be between 1 390 cents and 1 532 cents representing an increase of
between 91% and 110% when compared to the corresponding period in 2009.
Attributable earnings for the 12 months ended 31 December 2010 are expected to
be between R5 053 million and R5 261 million. This equates to attributable
earnings per share of between 1 456 cents and 1 516 cents representing an
increase of between 391% and 411% when compared to the corresponding period in
2009. When excluding the impairment of the KZN Sands assets in 2009, the
attributable earnings per share represent an increase of between 104% and
The financial information on which this trading statement is based has not
been reviewed nor reported on by Exxaro`s external auditors. This statement
is issued in compliance with section 3.4 (b) of the Listings Requirements of
the JSE Limited.
Exxaro is one of the largest South African based diversified resources
companies, with interest in the coal, mineral sands, base metals and iron ore
Wim de Klerk
Tel: +27 12 307 4848
Mobile: +27 82 652 5145
17 February 2011
Deutsche Securities (SA) (Proprietary) Limited
Date: 17/02/2011 10:00:01 Supplied by www.sharenet.co.za
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