PAM - Palabora Mining Company Limited - Trading Statement

PAM - Palabora Mining Company Limited - Trading Statement                       
PALABORA MINING COMPANY LIMITED                                                 
(Incorporated in the Republic of South Africa)                                  
Registration number - 1956/002134/06                                            
JSE Code: PAM        ISIN: ZAE000005245                                         
("Palabora" or "the Company")                                                   
TRADING STATEMENT                                                               
In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements,   
shareholders are advised that Palabora`s earnings for the year ended 31 December
2011 are expected to be as follows:                                             
*    Earnings before interest, tax, depreciation and amortisation (EBITDA)      
between R2 340 million (4 840 cents per share) and R2 646 million (5 474    
    cents per share);                                                           
*    Basic earnings between R1 440 million (2 978 cents per share) and R1 558   
    million (3 224 cents per share);                                            
*    Headline earnings between R 1 444 million (2 986 cents per share) and R1   
    563 million ( 3 231 cents per share); and                                   
*    Cash and cash equivalents between R2 039 million and R2 367 million.       
Palabora holds the majority of its cash and cash equivalents in foreign         
currency, most notably the US Dollar. At 31 December 2011 Palabora estimated    
that 72% (2010:63%) was held in US Dollars, 24% (2010: 30%) in South African    
Rand and 4% (2010:7%) in other currencies, notably the Euro and the British     
Pound.                                                                          
The above guidance compares with EBITDA of R1 533 million (3 171 cents per      
share), basic earnings of R 595 million (1 231 cents per share) and headline    
earnings of R594 million (1 228 cents per share) for the comparative previous   
year. The reported operating earnings for the year to 31 December 2010 were R1  
050 million. This has been adjusted to arrive at the EBITDA of R1 533 million by
including the depreciation expense of R483 million.                             
EBITDA is operating income excluding finance costs, foreign exchange gains and  
losses, income tax expenses and depreciation and amortisation.                  
Cash and cash equivalents were R1 641 million and net cash R1 543 million at 31 
December 2011.                                                                  
Shareholders are advised that the information contained in this Trading         
Statement has not been reviewed and/or reported on by the external auditors of  
the Company. It is anticipated that the results for the year ended 31 December  
2011 will be published on or about 6 February 2012.                             
Phalaborwa                                                                      
20 January 2012                                                                 
Sponsor: One Capital                                                            
Date: 20/01/2012 16:46:27 Supplied by www.sharenet.co.za                     
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