Johannesburg, South Africa — MININGREVIEW.COM — 22 January 2009 – Anglo American-controlled Kumba Iron Ore – the world’s fourth largest supplier of sea-borne iron ore – expects to more than double headline earnings and basic earnings for its 2008 financial year
In an advisory statement to shareholders the company confirmed that financial results for the 12 months ended 31 December 2008 would be published on 16 February.
Headline earnings and basic earnings for the period – after accounting for the minority interest in Sishen Iron Ore Company (Pty) Limited – are expected to be between R6.8 and R7.5 million, with headline earnings per share and earnings per share being between 2,150 cents and 2,370 cents.
This compares with headline earnings and basic earnings between R3.14 billion and R3.18 billion respectively in the 2007 financial year. Headline earnings per share and earnings per share for the comparative period were 1,000 cents and 1,011 cents respectively.
Kumba stated that the trading results of for the year ended 31 December 2008 had been buoyed by strong iron prices and the softening of the exchange rate of the Rand to the US Dollar. However, the performance for the year had been adversely affected in late 2008 by the unprecedented volatility in the global economy.
The statement revealed that production volumes in the fourth quarter had been marginally reduced as Sishen Mine increased the quality of its production in order to secure export volumes. In addition, certain export sales volumes had been lower than planned due to lower demand and limited volumes of lower quality production sold at below contractual prices
This trading statement is issued in compliance with the Listings Requirements of the JSE Limited. The financial information on which it is based has not been reviewed and reported on by the company`s external auditors.