Diversified resources company Exxaro Resources has issued a warning regarding a decline in earnings for the six months ending on June 30. The decrease is projected to range from 23% to 37% year-on-year due to factors including lower coal sales, reduced prices and volumes, and ongoing logistical challenges.

The company notes that income from its equity-accounted investments at Sishen Iron Ore Company and Mafube Coal has also been adversely affected by lower prices. Exxaro Resources is set to release its interim results on August 17.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) are anticipated to be between R6.79 billion and R8.27 billion, marking a year-on-year decrease of 22% to 36%. This is in comparison to the Ebitda of R10.6 billion reported for the same period in 2022.

For the six months under review, headline earnings per share are projected to range from R21.58 to R26.38, reflecting a decline of 23% to 37% from the R34.26 reported in the prior comparable period.

Furthermore, adjusted earnings per share are estimated to range from R21.48 to R26.25 for the same period, indicating a decrease of 23% to 37% from the R34.09 reported in the previous comparable period.