https://www.miningweekly.com

Kumba to take FY earnings hit on low iron-ore prices

2nd February 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

JOHANNESBURG (miningweekly.com) – JSE-listed Kumba Iron Ore has reiterated its warning of plunging earnings as iron-ore prices hurt the bottom line.

Kumba, which would release its results for the 2015 financial year on February 9, noted in an updated trading statement on Tuesday that its headline earnings would be between R3.6-billion and R3.8-billion and its basic earnings between R440-million and R487-million.

This was down from the headline and basic earnings of R11-billion and R10.7-billion respectively in the prior year.

Headline earnings per share (HEPS) would be 65% to 67% lower at between R11.45 and R12.05 apiece, compared with the R34.32 achieved in the preceding year, while basic earnings per share (BEPS) would decline 95% to 96% from R33.44 last year to between R1.37 and R1.52 in the 12 months under review.

A R6-billion pretax impairment charge relating to Kumba’s Sishen mine, in the Northern Cape, had been included in the reported basic earnings.

The company said the deteriorating iron-ore price environment had necessitated a reconfiguration of the Sishen pit to a lower cost shell.

The Sishen Iron Ore Company last week started a retrenchment consultation process with employees and trade unions, with up to 3 933 employees and contractors expected to be affected.

The HEPS and BEPS also included the derecognition of a deferred tax asset of R617-million, as well as a R232-million gain realised on a finance lease receivable.

Edited by Creamer Media Reporter

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.122 0.158s - 90pq - 2rq
Subscribe Now