South Africa - Anglo American’s iron ore business Kumba Iron Ore, operator of Sishen, the largest iron ore mine in Africa, is suffering financially as iron ore prices remain weak.
The company has revealed that both its headline and basic earnings for the six months to 30 June are likely to be at least R1.3 billion or 20% lower than the previous six months to 30 June 2014.
Headline earnings and basic earnings reported for the comparative period (as released on 22 July 2014) were both just above the R6.5 billion mark, while headline earnings per share (HEPS) and earnings per share (EPS) reported for the comparative period were R20.28 and R20.30 respectively.
The decrease in earnings is primarily attributable to the significant decrease in export iron ore prices during the period.
In this regard, both HEPS and EPS are also likely to be at least R4.06 or 20% lower than those of the comparative period.
Shareholders are advised that a further trading statement will be issued in due course to provide forecast ranges for HEPS and EPS as required by the JSE Listings requirements.
Kumba will release its financial statements for the six month period on 21 July 2015.The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company’s external auditors.