Exxaro Resources expects headline earnings per share to decline by between 18% and 23% for the six months ended June.
The diversified miner forecasts HEPS of between 1,327 cents and 1,414 cents per share, despite group earnings before interest, tax, depreciation and amortisation remaining broadly unchanged.
Weaker contributions from Exxaro’s equity-accounted investments are expected to weigh on its results.
Stronger rand affects Sishen contribution
Exxaro expects a weaker contribution from Sishen Iron Ore Company.
A stronger rand against the US dollar and mining input costs rising faster than inflation placed pressure on performance.
South African commodity exporters often earn revenue in dollars while carrying many operating costs in rand.
A stronger local currency reduces the rand value of dollar-denominated commodity revenue. Rising domestic costs place further pressure on margins.
Higher costs affect Black Mountain Mining
Black Mountain Mining is also expected to make a weaker contribution.
Exxaro attributed the decline to higher production costs and delays in increasing output at the Gamsberg operation.
These factors affected earnings from investments outside the group’s core coal operations.
Earnings decline follows stronger 2025 period
Exxaro reported HEPS of R17.24 during the first half of 2025, an increase of 13% year on year.
Higher group EBITDA and stronger contributions from equity-accounted investments supported those results.
The latest forecast reflects a weaker comparison with that period.
South African mining production declines
Exxaro’s forecast comes as national mining production shows weaker momentum.
South African mining output fell by 4% year on year in June.
Lower production of platinum group metals, coal and iron ore contributed to the decline.
Exxaro’s operating profit has remained more stable than the broader production figures suggest. Its expected earnings decline is linked to currency movements, higher input costs and weaker investment contributions.
Exxaro results due on 20 August
The forecast figures remain unaudited.
Exxaro is scheduled to release its interim financial results on 20 August.
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