Ingham Analytics issues a note on Kumba Iron Ore Ltd entitled “Earnings forecast to double in 2019”

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Ingham Analytics issues a note on Kumba Iron Ore Ltd entitled “Earnings forecast to double in 2019”

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Published Date: 2019-12-24 | Source: INCE|Community | Author: Mark Ingham

Ingham Analytics issues a note on Kumba Iron Ore Ltd entitled “Earnings forecast to double in 2019”

Ingham Analytics have updated their earnings on Kumba, 69.7% owned by Anglo American. They say the iron ore giant will end the twelve months to December 2019 with a strong financial performance, driven by higher average realised iron ore prices.

They point out that this year has seen an elevated premium for benchmark 62% Fe iron-content fines and have modelled an average of $93/t for calendar 2019, which compares with $69/t in 2018. However, Ingham Analytics caution that iron ore could potentially weaken to around $60-$70/t if supply moves back to balance with demand. Their through-the-cycle view is $62/t.

Ingham Analytics assess the latest trends in the iron ore market globally and what they expect for supply and demand. They also indicate the sensitivity of Kumba earnings to movements in the rand and the iron ore price. A view is given on both fair value for the stock.

Click here to find out more about the latest Ingham Analytics view on Kumba Iron Ore.


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