Exxaro Earnings Drop 20 Percent on Higher Costs
South African miner Exxaro Resources posted a 20 percent decline in half year earnings as rising costs and a stronger currency impacted revenue. Despite higher production expenses, the company increased coal output and ramped up renewable energy generation.
Insights:
South Africa's Exxaro Resources reported a 20% drop in headline earnings to 13.77 rand per share Thursday morning on rising input costs. The decline follows a stronger rand that eroded revenue from U.S. dollar-priced commodities. Investors are weighing the miner's expanding renewable energy portfolio against near-term margin pressures.
