South African diversified miner Exxaro Resources (EXXJ.J) reported on Thursday a 20% drop in half-year profit, as production costs rose and a stronger rand eroded revenue from commodities priced in U.S. dollars.
Exxaro, mainly a coal miner, posted headline earnings per share of 13.77 rand ($0.8551) in the six months to June 30, versus 17.24 rand in the year-earlier period.
The company said mining input costs rose on the back of the Middle East conflict, which disrupted global supply chains and negatively impacted income from its iron ore joint venture. Exxaro holds a 21% stake in Sishen Iron Ore Company, a subsidiary of Kumba Iron Ore (KIOJ.J).
Higher production costs also impacted income from its zinc joint venture, Exxaro said.
Exxaro, which also has interest in manganese mining and renewable energy production, said it will pay an interim dividend of 7 rand per share, a decrease of 17% on last year's interim payout.
($1=16.1028 rand)
