Kumba expects rock solid results

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Kumba expects rock solid results

Published Date: 2019-05-15 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Kumba expects rock solid results

The iron ore producer expects first-half earnings to be at least 160% up on last year.

Kumba Iron Ore expects a strong rise in first-half earnings thanks to higher iron ore prices and a weaker rand/dollar exchange rate.

In a trading update, the iron ore producer said headline and basic earnings for the six months to end-June were likely to rise by at least R4.76 billion and R4.71 billion respectively. That would be a increase of at least 160% from the headline earnings of R2.98 billion and basic earnings of R2.94 billion it reported last year. Earnings and headline earnings per share would also be up by at least 160% from the R9.31 and 9.21 it reported a year ago, it said.

Last year, Kumba's exports were disrupted by a series of derailments on the rail line that gets its ore to port and the temporary closure of the Iron Ore Export Channel after a truck collided with a railway bridge in November. It owns the Sishen and Kolomela mines in the Northern Cape. Iron ore is one of the main raw materials used to make steel.

Its shares fell 2.8% to R402 yesterday.





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