Prices, decline in share value to dent Assore’s H1 earnings

20th January 2016 By: Natalie Greve - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – On the back of lower export selling prices across its product portfolio, a declining share portfolio value and a subsequent impairment, mining holding company Assore expects headline earnings to decline by up to 44.6% to between R548-million and R672-million for the six months ended December 31.

Average prices for iron-ore declined 38% from the first six months of the prior year to $51/t in the period under review, partially offset by a weaker exchange rate.

In addition, a decline in the value of the group’s share portfolio resulted in an impairment charge, net of taxation relief, of R71-million.

Attributable earnings were, meanwhile, anticipated to decline by up to 51.3% to between R455-million and R557-million, driving headline earnings a share for the six months down by up to 44.6% to between R5.31 and R9.59.

Attributable earnings a share would likely narrow by up to 51.3% to between R4.41 and R5.40, the company said in a statement on Wednesday.

Assore expected to publish its results for the six months on or about February 19.