JOHANNESBURG (miningweekly.com) – South Africa-based diversified resources group Exxaro expects its attributable loss a share for the six months ended June 30 to recover by some 20%, while headline earnings a share would likely improve by the same margin.

It added in a trading statement on Friday that it expected to swing to a net operating profit for the six-month period ended June 30 from a net operating loss in the comparative period in 2014.

The loss in the prior year was primarily owing to the nonrecurring pretax impairment loss of the Mayoko iron-ore project, in the Republic of Congo, which amounted ito R5.8-billion.

Lower net operating profit was, meanwhile, expected from the carbon operations for the six-month period as a result of lower domestic and export coal sales volumes at lower average rand selling prices, combined with the nonrecurrence of the shortfall income recorded in 2014.

This was partly offset by higher sales to energy utility Eskom owing to the Medupi power station ramp-up. 

Attributable earnings for the period were expected to be between R1.02-billion and R1.2-billion, which equated to an expected range of basic attributable earnings a share of between 289c and 333c, representing an improvement of between 142% and 149% when measured against the attributable loss a share of 688c in the comparative period in 2014.

Basic headline earnings for the period were expected to be between R948-million and R1.1-billion. This equated to basic headline earnings a share of between 267c and 310c, representing a decrease of between 61% and 66% on the 793c reported for the prior year’s period.

“This decrease is primarily attributable to the decrease in income from the equity-accounted investments, Sishen Iron Ore and Tronox, as a result of the significant decrease in the export iron-ore and mineral sands and pigment prices during the period,” Exxaro stated.