JSE-listed Palabora Mining Company on Tuesday said it expected headline earnings a share for the six months ended June 30, to be between R440-million and R460-million, or between 910c a share and 952c a share.

This would be an increase of between 15% and 20% on the corresponding period’s headline earnings of R382-million, or 791c a share.

The Rio Tinto subsidiary stated that earnings before interest, tax, depreciation and amortisation (Ebitda) were expected to be between R838-million (1 735c a share), and R864-million (1 788c a share). Basic earnings between R440-million (910 cents a share) and R460-million (952 cents a share) were expected.

The guidance compared with Ebitda of R829-million (1 715c a share), and basic earnings of R382-million (791c  a share) for the prior comparable period.

The reported operating earnings for the first half of 2007 were R691-million. This was adjusted to arrive at the Ebitda of R829-million by including the depreciation expense of R138-million. 
 
The company said that Ebitda provided a more meaningful comparison of the its earnings from ongoing operations, owing to the additional depreciation recognised in 2008 as a result of the impairment reversal at December 31, 2007. 
 
Palabora said its results for the half ended June 30, would be published on August 5.                                  

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