The South African iron ore producer says headline earnings for the period are likely to be between R8 453 million and R8 890 million – with basic earnings for the year ended 31 December 2016 expected to be between R8 351 million and R8 782 million.
Headline earnings per share is likely to be between R26.36 and R27.72, an increase of between 123% and 135%, says Kumba Iron Ore. Basic earnings per share is expected to be between R26.04 and R27.38.
In 2015, Kumba Iron Ore’s reported headline earnings and basic earnings were R3 792 million and R469 million respectively, while reported headline earnings per share and earnings per share were R11.82 and R1.46 respectively.
The company said the increase in earnings is largely attributable to the increase in export iron ore prices, as well as the impairment charge of R5 978 million that was included in basic earnings but excluded from headline earnings.
Kumba Iron Ore said it will provide more information in the company’s results to be released on 14 February 2017.
In February 2016, Kumba Iron Ore confirmed Anglo’s intention to exit its 69.7% shareholding in the company. Kumba Iron Ore said at the time that it will be done at “an appropriate time and in an orderly manner and could include a potential spin-out”.
Anglo American had made the announcement to investors, shareholders and media as part of its year-end financial results to 31 December 2015. The two companies will work together to evaluate options for the exit and how the business can be set up as a standalone entity that will create sustainable value for its stakeholders, it had stated.