Pretoria, South Africa — 09 July 2012 – Shares in Kumba Iron Ore – South Africa’s leading supplier of high quality iron ore to the global steel industry – have come under pressure following the release of a disappointing trading update from the Anglo American subsidiary.
Miningmx reports that in the update released here, Kumba said it expected to post interim headline earnings and earnings of R22.10 per share and R23.40 respectively, down from R28.23 and R28.20 in the first half of 2011. The consensus forecast for Kumba’s 2012 full-year headline earnings is around the R53.50/share level, leaving the iron ore miner to make up more than R31/share during the second half of the year.
“The decrease in earnings is largely attributable to a decrease in export iron ore prices in the period,” read the trading statement.
Kumba’s shares were at R565.50 during early afternoon trade on Friday, down 2.46% for the day.
Source: Miningmx. For more information, click here.