PAM
PAM
PAM - Palabora - Trading Update
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
JSE Code: PAM & ISIN: ZAE000005245
("Palabora" or "the Company")
TRADING UPDATE
As required by the JSE Listings Requirements, shareholders are advised that
Palabora`s earnings for the six months ended 30 June 2008 are expected to be as
follows:
- Earnings before interest, tax, depreciation and amortization (EBITDA)
between R 838 million (1 735 cents per share) and R 864 million (1 788
cents per share).
- Basic earnings between R 440 million (910 cents per share) and R 460
million (952 cents per share).
- Headline earnings between R 440 million (910 cents per share) and R 460
million (952 cents per share).
- Cash and cash equivalents between R 535 million and R 562 million.
- Net cash between R 368 million and R 390 million.
The above guidance compares with EBITDA of R829 million (1 715 cents per share),
basic earnings of R382 million (791 cents per share) and headline earnings of
R382 million (791 cents per share) for the prior comparable period. The reported
operating earnings for the first half of 2007 were R691 million. This has been
adjusted to arrive at the EBITDA of R829 million by including the depreciation
expense of R138 million.
EBITDA is operating income excluding finance costs, foreign exchange gains and
losses, income tax expenses and depreciation and amortization. Palabora`s
management now believes that EBITDA provide a more meaningful comparison of the
Company`s earnings from ongoing operations due to the additional depreciation
recognized in 2008 as a result of the impairment reversal at 31 December 2007.
Shareholders are advised that the information contained in this Trading Update
has not been reviewed and/or reported on by the external auditors. It is
anticipated that the results for the six months ended 30 June 2008 will be
published on or about 5 August 2008.
Phalaborwa
22 July 2008
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 22/07/2008 15:19:02 Produced by the JSE SENS Department.
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