| Fri 9 Jul 2010, 8:31 | | KIO - Kumba Iron Ore Limited - Trading statement for the six months ended 30 |
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KIO
KIO
KIO - Kumba Iron Ore Limited - Trading statement for the six months ended 30
June 2010
Kumba Iron Ore Limited
A member of the Anglo American plc group
Incorporated in the Republic of South Africa
Registration number 2005/015852/06
JSE Share code: KIO
ISIN: ZAE000085346
("Kumba" or "the Company")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2010
Kumba is currently finalising its results for the six-months ended 30 June
2010 ("the period"), which will be released on SENS on 22 July 2010. In this
regard, shareholders are advised that earnings and headline earnings are
likely to be between R6,100 million and R6,600 million, with headline earnings
per share ("HEPS") and earnings per share ("EPS") being between 1,900 cents
and 2,055 cents.
Headline earnings and basic earnings reported for the financial results for
the six months ended 30 June 2009, issued on 23 July 2009 ("the comparative
period") were R3,422 million and R3,435 million respectively while HEPS and
EPS reported for the comparative period were 1,076 cents and 1,073 cents
respectively.
The increase in earnings is largely attributable to an increase in export iron
ore prices and a 10% increase in export sales volumes in the period. From 1
March 2010 Sishen Iron Ore Company (Pty) Limited(a subsidiary of Kumba) has
invoiced ArcelorMittal South Africa Limited (ArcelorMittal) at market prices.
ArcelorMittal has paid only cost +3% on purchases of 1.452Mt of iron ore from
Sishen Mine. In determining earnings for the period Kumba has accounted for
revenue at cost +3% to ArcelorMittal, in the absence of agreement on an
interim price.
Export iron ore index prices traded above contract export prices during the
six months ended 30 June 2010 and peaked above US$200/tonne. Contract export
iron ore prices for the first quarter of 2010 (January to March) were at
2009/2010 iron year prices and for the second quarter of 2010 (April to June)
were settled at increases in excess of 90% of contract prices achieved for the
first quarter of 2010.
The forecast financial information on which this trading statement is based
has not been reviewed and reported on by the Company`s auditors.
Pretoria
9 July 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 09/07/2010 08:31:08 Produced by the JSE SENS Department.
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