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Updated trading statement for the year ended 31 December 2015
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")
UPDATED TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015
Shareholders are advised that Kumba is currently finalising
its results for the year ended 31 December 2015 (“the
period”), which will be released on SENS on 9 February 2016.
In accordance with section 3.4 (b) of the JSE Limited Listings
requirements and further to the trading statement released on
SENS on 6 November 2015 in which the Company indicated that
headline earnings per share (“HEPS”) and basic earnings per
share (“EPS”) for the period would be more than 20% lower than
the previous year ended 31 December 2014 (“the comparative
period”); shareholders are advised that headline earnings for
the period are likely to be between R3,674 million and R3,863
million, with basic EPS for the period expected to be between
R440 million and R487 million. HEPS is likely to be between
R11.45 and R12.05, a decrease of between 65% and 67%. Basic
EPS is expected to be between R1.37 and R1.52, a decrease of
between 95% and 96%.
Reported headline earnings and basic earnings for the
comparative period (released on SENS on 10 February 2015) were
R11,006 million and R10,724 million respectively, while
reported HEPS and EPS for the comparative period were R34.32
and R33.44 respectively.
The decrease in earnings is largely attributable to the
significant decrease in export iron ore prices. The
deteriorating iron ore price environment has necessitated a
reconfiguration of the Sishen pit to a lower cost shell. This,
together with the significant impact of the weaker iron ore
price outlook, has resulted in an impairment charge relating
to Sishen mine of R6 billion (pre-tax). The impairment charge
will be included in basic earnings but excluded from headline
earnings. More information will be provided in the Company’s
results to be released on SENS on 9 February 2016.
Included in both HEPS and basic EPS is the derecognition of a
deferred tax asset of R617 million, as well as a gain realised
on a finance lease receivable of R232 million in the current
period. Normalised earnings per share, excluding these items,
are likely to be between R12.62 and R13.27, a decrease of
between 61% and 63% on the normalised earnings per share of
the comparative period of R34.32.
The financial information, on which this trading statement is
based, has not been reviewed or reported on by the group’s
external auditors.
Pretoria
2 February 2016
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/02/2016 11:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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