The period under review has seen further gains in operational and cost efficiencies building on the momentum established in 2017. The positive impact of these gains on our expected earnings for the period are, however, likely to be more than offset by the impact of a stronger Rand/US Dollar exchange rate and lower export iron ore prices relative to the comparative six months ended 30 June 2017 ('the comparative period'), as well as derailments on the Iron Ore Export Channel.

As a result of the above and in accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are advised that both headline earnings and basic earnings for the period are likely to be at least R921 million and R917 million lower (at least 20% lower), respectively, than reported headline earnings and basic earnings for the comparative period. Headline earnings per share ('HEPS') and earnings per share ('EPS') are also likely to be at least R2.88 and R2.87 per share lower (at least 20% lower), respectively, than reported HEPS and EPS for the comparative period.

Reported headline earnings and basic earnings for the comparative period (SENS release on 25 July 2017) were R4,603 million and R4,586 million respectively, while reported HEPS and EPS for the comparative period were R14.42 and R14.37 respectively.

The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. A further trading statement will be released as soon as the Company has reasonable certainty on the expected HEPS and EPS ranges for the period.

Centurion
25 June 2018

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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Kumba Iron Ore Ltd. published this content on 25 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 June 2018 15:42:08 UTC