National
Kumba sees headline earnings per share falling by up to 67%─── 05:26 Wed, 03 Feb 2016
OFM News
Johannesburg - Kumba Iron Ore warned on Tuesday that headline earnings per share for the year to the end of December 2015 were likely to be 65-67% lower than the year before.
A statement from the company blamed the significant decrease in export iron ore prices.
Kumba said the deteriorating iron ore price environment had necessitated the reconfiguration of the Sishen pit to a lower cost shell, as announced last Thursday.
“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),” it said.
The reconfiguration – which would significantly reduce mining and production activities to a smaller, more focused operation – was expected to lead to more than 2,600 job losses.
Announcing the Sischen reconfiguration last week, Chief Executive Norman Mbazima said: “This has been an extremely difficult decision but, after exhausting all other avenues and doing all we could have done to reduce costs, we have no choice but to take more significant steps to preserve the viability of the mine.”
The full results are expected on February 9.
ANA
