Exxaro, South Africa’s largest coal miner, expects to report lower production and sales in the first half of its 2023 financial year.
- The company cited logistical challenges, high inflation, and lower coal prices as the main reasons for the expected decline.
- The weaker rand, interest rate hikes, ongoing load-shedding, and lower demand from Eskom also contributed to the pressure on Exxaro’s coal business.
- The miner expects the average benchmark export price from the Richards Bay Coal Terminal (RBCT) to be down more than half to $127.
- Exxaro has decided to put its FerroAlloys business up for sale as it does not fit into its envisaged minerals business portfolio.
- The miner will publish its interim results on August 17.