To view the PDF file, sign up for a MySharenet subscription.

KIO - Kumba Iron Ore Limited - Trading statement for the six months ended 30

Release Date: 09/07/2010 08:31
Code(s): KIO
Wrap Text

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 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

Share This Story