South Africa's only zinc producer, Exxaro, has said that its loss-making zinc is "under review" but that it will not be sold for now. The company is hoping for future demand to improve and said it expects the market to pick up in 2010.
"We will stick with it for now, although as any other businesses, it is under constant review," Exxaro's Chief Executive Officer Sipho Nkosi said during a results presentation.
"There is a market for it, and not only in South Africa ... it's a cyclical business and will be a challenge, but we believe that towards the end of 2010 the situation will get better."
Exxaro its increased net operating profit by 71% to R2.5-billion in the 12-month period ended December 31, the company said on Tuesday. Mr Nkosi reported that revenue had increased 36% to R13.8-billion.
The company's mainstay coal business reported record revenue and record net operating profit and that the mineral sands experienced a turnaround.
The newly acquired Namakwa Sands operation had made a maiden profit contribution and there was record zircon, titanium slag and pig-iron production.
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