Assore final results June 2018
Revenue for the year shot up to R7.8 billion (R7.2 billion). Gross profit fell to R1.5 billion (R1.7 billion). Profit for the year attributable to shareholders grew to R5.1 billion (R5 billion). In addition, headline earnings per share decreased to 4 953cents per share (5 049 cents per share).
Shareholders are advised that on 5 September 2018, the board approved final dividend number 123 (the dividend), of 1 200 cents per share (gross) for the year ended 30 June 2018.
As this period of global economic cyclical upswing approaches two years, the pace of expansion in some economies appears to have peaked, with decelerated growth projected in the near future. Recent increases in trade tariffs have not impacted the group negatively to date. However, further escalation of tensions and a potential trade war could impact global economic growth and demand for steel negatively. The Chinese economy remains robust with the growth recorded in the first half of the 2018 calendar year well above the target GDP level of 6,5%. Efforts by Chinese authorities to enforce more stringent environmental controls had a positive impact on the demand for the groupÆs higher quality products. This trend is set to continue and should support prices for the groupÆs products in the near term. Following the release of the draft Mining Charter 2018 in June, the mining industry in South Africa continues to face a high level of uncertainty and the impact of the changes are likely to be negative for the countryÆs mining industry. Further to the factors noted above, the results of the group remain significantly exposed to fluctuations in exchange rates.