Exxaro expects lower earnings amid cost pressures

Exxaro Resources Limited (JSE:EXX) has announced that headline earnings per share (HEPS) are expected to fall by 30% to 44% compared to the previous year. Attributable earnings per share (AEPS) are projected to decrease by 26% to 40%. The company cites cost pressures from inflation, increased selling and distribution expenses, and higher operational and maintenance costs as primary factors. While revenue is expected to improve, performance from equity-accounted investments, particularly Sishen Iron Ore Company and Mafube, is anticipated to decline due to lower iron ore prices, reduced sales volumes, and lower export prices. EBITDA is projected to decrease between 16% and 30%. Exxaro's reviewed condensed financial results for the year ended 31 December 2024 will be released on or around 13 March 2025.