Posted on 31 May 2019
Anglo American’s South African offshoot Kumba Iron Ore expects to deliver a stronger financial performance year-on-year in its second quarter ending 30 June 2019.
In a pre-results trading statement monitored by Kallanish, the miner says that it anticipates a stronger financial performance in Q2 2019 than in Q2 2018. This is due to higher average iron ore export prices and a weaker rand/US dollar exchange rate, the company says.
Headline earnings and basic earnings for the period are expected to increase by at least ZAR 4,763 million ($323.4m) and ZAR 4,708 million (at least 160%), respectively, from the comparative period. Headline earnings per share (HEPS) and earnings per share (EPS) are also expected to increase by at least ZAR 14.90 and ZAR 14.73 (at least 160%), respectively, from the comparative period.
Reported headline earnings and basic earnings for the comparative period were ZAR 2,977m and ZAR 2,943m, while reported HEPS and EPS for the comparative period were ZAR 9.31 and ZAR 9.21, respectively.
The Kallanish KORE index for 62% Fe fines was $63.88/tonne cfr Qingdao on 30 May 2018. On 30 May 2019 it was $101.81/t, or nearly 60% higher.
