https://www.miningweekly.com

Palabora expects significant fall in 2012 earnings

8th February 2013

By: Idéle Esterhuizen

  

Font size: - +

JOHANNESBURG (miningweekly.com) - JSE-listed copper miner Palabora expected to incur a basic loss of R97-million or R2.01 a share for the year ended December, owing to safety stoppages at its operations in Limpopo, as well as declining ore grades.

This marked a significant fall from basic earnings of R1.46-billion or R30.28 a share in 2011.

The mine’s production shaft was out of operation for 67 days in the third quarter of 2012, following a guide-rope failure, while a Section 54 safety stoppage was implemented at the operations following the death of a contractor in the fourth quarter of the year.

However, normal copper production resumed in the fourth quarter across all copper production streams.

Meanwhile, Palabora reported in January that the ore grade continued to decline as planned, as the end of life-of-mine of the current Lift I footprint drew closer.

Earnings before interest, tax, depreciation and amortisation were anticipated to fall to R413-million or R8.55 a share during 2012, down from R2.43-billion or R50.31 a share the previous year.

Further, the company foresaw a headline loss of R82-million or R11.71 a share, as apposed to headline earnings of R1.47-billion or R30.36 a share in the comparative previous year.

Cash and cash equivalents for the year would likely amount to R1.98-billion, a notable decrease from R2.21-billion in 2011.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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