Exxaro says sales are expected to drop slightly due to Covid-19

Diversified miner Exxaro, which supplies coal to Eskom, said on Thursday sales are expected to dip slightly in June as Covid-19 weighs on demand.

In a pre-close trading update, the group said sales are expected to fall about 2% in its six months to end-June.

Disruptions to supply chains, demand, international trade flows and travel, along with lockdowns, collapsing currencies and stock prices, due to measures related to Covid-19 have dealt a heavy blow to the global economy, the group said.

A deeper recession in 2020 compared to the 2008/2009 financial crisis is expected, the group said.