Shareholders are advised that Exxaro will release its audited financial results for the year ended December 31st 2011 on February 23rd 2012.
Consolidated net operating profit for the group is expected to show an improvement when compared with the corresponding period in 2010, mainly due to strong demand and generally higher prices across the majority of its commodity suite, partially offset by a stronger average realised local currency and Australian dollar against the US dollar.
The coal business is expected to deliver higher operating profit than the corresponding period in 2010 primarily due to higher export volumes at higher international selling prices, despite lower sales volumes from its operations captive to Eskom.
It is expected that the mineral sands business will also report a higher operating profit than the corresponding period in 2010 due to an general increase in selling prices of its products, in addition to the partial impairment reversal of approximately R869 million of the carrying value of the property, plant and equipment at the KZN Sands operations.
The base metal business will report a consolidated net operating loss due to the decision taken by the board of directors of Exxaro to cease operations at the Zincor refinery, compounded by an impairment of ZAR 516 million of the carrying value of the Zincor property, plant and equipment.
Headline earnings per share, which excluded the impact of the impairment of the carrying value of the Zincor property, plant and equipment as well as the impact of the partial impairment reversal of the carrying value of the KZN Sands property, plant and equipment for the year ended December 31st2011, are expected to be between 1 901 cents and 2 140 cents, representing an increase of between 27% and 43% when compared with the comparative period in 2010.
Attributable earnings for the year ended December 31st 2011 are expected to be between ZAR 6 964 million and ZAR 7 806 million. This equates to attributable earnings per share of between 2 001 cents and 2 243 cents, representing an increase of between 33% and 49% when compared with the corresponding period of 2010.
The forecast financial information on which this trading statement is based has not been reviewed, audited nor reported on by Exxaro's external auditors. This statement is issued in compliance with the Listings Requirements of the JSE Limited.
