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ASSORE LIMITED - Trading statement

Release Date: 20/01/2016 12:15
Code(s): ASR     PDF:  
Wrap Text
Trading statement

Assore Limited
(Incorporated in the Republic of South Africa)
Registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000146932
("Assore", “the Group” or “the Company”)

TRADING STATEMENT

Shareholders of Assore (“Shareholders”) are advised that US
Dollar (“USD”) export selling prices for all of its products
have declined over the six months ended 31 December 2015 (“the
current period”) and are significantly lower than those which
prevailed over the six months ended on 31 December 2014 (“the
previous period”).    Average prices for iron ore (fines grade
delivered in China) for the current period were approximately
USD51 per metric ton, compared to USD82 per metric ton for the
previous period, a decline of 38%.     The impact of these lower
prices on earnings has been partly offset by a weaker Rand/USD
exchange rate during the current period, which on average, was
25% weaker than the previous period.     In addition, the Group’s
share portfolio has declined in value over the current period
and it has recorded an impairment charge, net of taxation
relief, of R71 million in this regard.

Based on the trading conditions for the first half of the
financial year to 31 December 2015 set out above, headline
earnings are anticipated to decline to between R548 million (by
44,6%) and R672 million (by 32,1%) compared to R990 million
recorded in the first half of the previous financial year.
Attributable earnings are anticipated to decline to between
R455 million (by 51,3%) and R557 million (by 40,4%) compared to
R935 million recorded in the first half of the previous
financial year.    The decreased earnings are anticipated to
decrease headline earnings per share for the six months ended 31
December 2015 to between R5,31 (decline of 44,6%) and R6,51
(decline of 32,1%) per share from R9,59 per share for the six
months ended 31 December 2014 and attributable earnings per
share to between R4,41 (decline of 51,3%) and R5,40 (decline of
40,4%) per share from R9,06 per share for the six months ended
31 December 2014. Earnings per share calculations are based on
a weighted average number of 103,21 million (six months ended 31
December 2014: 103,21 million) shares in issue.

The above information has not been reviewed or reported on by
Assore's auditors and the results for the six months ended 31
December 2015 are expected to be published on or about Friday,
19 February 2016.

Shareholders are referred to the announcement made by Assore on
24 June 2015, whereby it had agreed to acquire Dwarsrivier
Chrome Mine (“Dwarsrivier”) from Assmang Proprietary Limited
(“Assmang”), subject to certain conditions precedent (“CPs”).
The Company is pleased to announce that Ministerial Consent has
been received from the Department of Mineral Resources for the
transaction. Completion of the transaction is expected to occur
once the remaining CPs have been addressed.


Illovo Boulevard
Johannesburg
20 January 2016

Contact details:
Ross Davies
Switchboard: 011 770 6800
Direct line: 011 770 6815
E-mail: rossdavies@assore.com

Financial Communications Advisor
Singular Systems, Jacques de Bie, 082 691 5384

Sponsor
The Standard Bank of South Africa Limited

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