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EXX - Exxaro - Trading statement for the six months ended 30 June 2010

Release Date: 05/08/2010 09:00
Code(s): EXX
Wrap Text

EXX - Exxaro - Trading statement for the six months ended 30 June 2010 EXXARO RESOURCES LIMITED (Incorporated in the Republic of South Africa) Registration Number: 2000/011076/06 Share Code: EXX ISIN Number: ZAE000084992 ("Exxaro") TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2010 Shareholders are advised that Exxaro will release its reviewed financial results for the six months ended 30 June 2010 on 12 August 2010. Consolidated net operating profit for the group for the six months ended 30 June 2010 is expected to show an improvement when compared to the corresponding period in 2009. The group results were positively impacted by a stronger global economic recovery resulting in higher commodity prices for the period partially offset by a stronger average realised exchange rate. The coal business is expected to deliver higher operating results for the six months ended 30 June 2010 than the corresponding period in 2009 due primarily to higher international sales prices and the inclusion of the Mafube joint venture operating results acquired on 1 June 2009. The mineral sands business will report a consolidated net operating profit due to higher commodity prices, improved sales volumes, disciplined cost management as well as the final proceeds of an insurance claim received during the period 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 marginal increase in net operating profit mainly due to higher commodity prices for the six months ended 30 June 2010. Headline earnings per share for the six months ended 30 June 2010 are expected to be between 650 cents and 700 cents, representing an increase of between 60% and 73% when compared to the corresponding period in 2009. Attributable earnings for the six months ended 30 June 2010 are expected to be between R2 288 million and R2 528 million. This equates to attributable earnings per share for the six months ended 30 June 2010 of between 661 cents and 731 cents, representing an increase of between 64% and 81% when compared to the corresponding period in 2009. 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 paragraph 3.4(b) of the Listings Requirements of the JSE Limited. Editors note: Exxaro is one of the largest South African based diversified resources companies, with interests in the coal, mineral sands, base metals and iron ore commodities. www.exxaro.com Enquiries: Wim de Klerk Financial director Tel: + 27 12 307 4848 Mobile: +27 82 652 5145 Email: wim.deklerk@exxaro.com Pretoria 5 August 2010 Sponsor Deutsche Securities (SA) (Proprietary) Limited Date: 05/08/2010 09:00:05 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.