KMB
KMB
Kumba Resources Limited - Trading Statement
Kumba Resources Limited
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN: ZAE000034310
("Kumba")
Kumba Limited - Trading Statement
The Listings Requirements of the JSE Limited require that listed companies
publish a trading statement when the financial results for the next financial
period to be reported on, vary from those of the comparable period by 20% or
more. The unaudited financial results for the six-month period ended 30 June
2006 are being compared with the unaudited results for the corresponding period
ended 30 June 2005.
Kumba Resources Limited ("Kumba") has benefited from higher commodity prices,
most notably the 19% increase for iron ore effective 1 April 2006 and record
zinc prices.
The combined impact of a stronger currency outlook over the life of the assets,
a higher discount rate and projected surplus of high grade titanium feedstock on
world markets, has necessitated a review of the carrying value of the mineral
sands operations of Kumba located at Empangeni, KwaZulu-Natal. As a result, a
pre-tax reduction of R784 million in the carrying value of the assets will be
accounted for as at 30 June 2006, negatively affecting attributable earnings for
the interim period ended 30 June 2006.
Taking the above factors into account, Kumba"s attributable earnings per share
for the six-month period ended 30 June 2006 are expected to exceed the
comparative unaudited attributable earnings per share for the six months ended
30 June 2005 by between 5% and 25%.
Headline earnings per share which exclude the effect of the impairment, however,
are expected to be higher by between 50% and 70% on the comparative period in
2005.
The financial information in this trading statement has not been reviewed or
reported on by Kumba"s auditors.
The results for the six months ended 30 June 2006 are expected to be published
on or about 2 August 2006.
For enquiries:
Trevor Arran
General Manager: Corporate Affairs & Investor Relations
Tel: (012) 307 3292
Mobile: 083 609 1444
21 July 2006
Sponsor: J.P.Morgan Equities Limited
Date: 21/07/2006 02:25:26 PM Produced by the JSE SENS Department
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