Diversified coal producer Exxaro got a boost from its iron ore business, with half-year headline earnings per share expected to increase by up to 111% - thanks in large part to Sishen's contribution.
Exxaro owns a 21% share in the Sishen Iron Ore Company.
The company said the increase in headline earnings per share for the period to 30 June 2021 was mainly due to a jump in income from the Sishen project as well as other once-off transactions, including the disposal of the Tronox investments.
Exxaro in the first half reduced its stake in mineral sands producer Tronox to 1.6% from about 14.6%. It once owned a share of more than 40% in Tronox.
Attributable earnings per share are expected to increase between 84% and 96% compared to the six-month period ended 30 June 2020.
Exxaro will release its interim financial results on Thursday.
Earnings for the period are expected to increase by between 5% and 17%, compared to the corresponding period in 2020, mainly due to the inclusion of Cennergi results for the full six-month period.
Exxaro is on the verge of a leadership change, with CEO Mxolisi Mgojo set to retire in May 2023. Mgojo, who has been at the helm of the company since April 2016, will handover the reins to current managing director of minerals Nombasa Tsengwa.
Like other entities that rely on Transnet infrastructure, Exxaro said coal production and sales volumes were impacted by operational challenges faced by Transnet Freight Rail and the effects of the Covid-19 pandemic, but saw a boost from "a healthy increase" in the average benchmark export price for coal.