Company announcements

Exxaro Resources Ltd

Analysis of upcoming company announcements, using our market insight information and analysis tools.

For this edition, we cover the following stocks:

Sanlam Ltd

MTN Group Ltd

Standard Bank Group Ltd

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Exxaro Resources Ltd

Full year results for the 12 months ending 31 December 2013 expected on the 6th of March 2014 

Exxaro is a South Africa-based mining group with a diverse and world-class commodity portfolio in coal, mineral sands, base metals and ferroalloys, and growing exposure to iron ore through its interest in Sihen Iron Ore Company and acquisition of African Iron.

Results expectation

Exxaro has guided that it expects Headline Earnings Per Share (HEPS) for the period to be between 2% lower and 6% higher than the 2012 comparative.

Basic attributable earnings per share is expected to be 34% to 42% lower, due to the non-reoccurring profit from once off sales of non-core assets which reflected in the previous year’s earnings. Interim results for Exxaro revealed a weak first half of the year, as Headline Earnings Per Share were reported 39% lower. The reasons mentioned for decreased earnings were lower coal prices, a volatile exchange rate, logistical constraints as well as a R292 million impairment on a coal mine.

With the aforementioned in mind, the second half of the year considers a much stronger performance, as earnings from core operations helped offset the interim underperformance.

 

Source: IG Insight, as of 08:45 04/03/2014

Source: IG Insight, as of 08:45 04/03/2014

Technical View

The price of Exxaro has reversed off the 14150 support level. The Stochastic indicator has crossed through its trigger line in oversold territory, confirming the price reversal with relatively strong volume.

These indications are considered bullish, favouring a short-term rebound in price. Resistance is anticipated at 14700, a break of which favours further price gains towards the 200 day simple moving average (200MA) at 15200.

The aforementioned bullish indications are however contrary to the long-term downtrend and should be traded with caution, with a break of short-term support at 14150 considering the failure thereof.

Source:  ProRealTime charts, as of 04/03/2014

Fundamentals

Source:  IG Insight, as of 08:45 04/03/2014

Source:  IG Insight, as of 08:47 04/03/2014

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