JOHANNESBURG (miningweekly.com) – Iron-ore mining company Kumba Iron Ore on Thursday pointed to bumper upcoming financial results for the six months to June 30, with headline earnings and basic earnings for the period poised to soar above the comparative period last year by least 150% to R12 602-million and R12 612-million respectively.

The Anglo American group company’s financial results for the period are scheduled to be released on the Johannesburg Stock Exchange on July 27.

Headline earnings a share are likely to be at least R39.29 a share higher and earnings a share R39.32 higher than the comparative period.

A further trading statement will be released as soon as Kumba has reasonable certainty on the expected earnings ranges.

As reported by Mining Weekly earlier this month, iron-ore futures rose on supply concerns but then fell in Asia this week, as the Chinese National Development and Reform Commission said that it had joined with the market regulator to look into the iron-ore spot market and has pledged to crack down on hoarding and speculation.

The new rules on the management of price indexes for commodities and services will be effective from August 1 and will standardise price index compilation and transparency of information.

China has reportedly rolled out trading curbs and releases from State stockpiles in an effort to stem inflation by cooling runaway commodities. Many of the prices have fallen from May peaks, with steel, in particular, falling. Although Chinese prices for steel rebar used in construction are reported down 19% from their May peak, they remain well above long-term averages.

Ninety eight per cent of iron-ore is used to make steel. The remaining 2% is used in various other applications, including powdered iron for certain types of steels, magnets, auto parts and catalysts, and radioactive iron-ore, or iron 59, for medicine and as a tracer element in biochemical and metallurgical research.

Australia and Brazil are the world's largest iron-ore mine producers, with Australia producing 900-million tons in 2020 and Brazil producing 400-million tons. Statista estimated total South African iron-ore production in 2020 at 71-million tons, with Kumba's contribution alone generally close to the level of 40-million tons a year.