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Iron-ore price decline hits Kumba H1 earnings

15th July 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) - The significant drop in the export iron-ore price, which led to the derecognition of a R617-million deferred tax asset, has depressed Kumba Iron Ore’s first-half earnings.

The JSE-listed mining company on Wednesday said it expected its headline earnings to fall from R6.5-billion in the first half of 2014 to between R2.4-billion and R2.58-billion in the six months to June 2015.

Kumba expected to report headline earnings a share of R7.50 to R8.05 for the period under review, a 60% to 63% decline on the R20.28 reported for the corresponding period the year before.

Basic earnings for the first half of 2015 would be between R2.4-billion and R2.57-billion, compared with the R6.5-billion posted in the first half of 2014.

The company’s earnings per share (EPS) for the half-year under review would register a 60% to 63% decline to between R7.47 and R8.02, compared with the R20.30 recorded in the prior period.

Normalised EPS, excluding the deferred tax asset, would likely reach between R9.35 and R10, a decrease of between 51% and 54% on the reported normalised EPS of R20.28 for the comparative period last year.

Kumba would publish its half-year results on July 21.

Edited by Creamer Media Reporter

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