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Kumba forecasts drop in profit

Jan 16 2013 08:50 Reuters

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Johannesburg - Kumba Iron Ore [JSE:KIO], a unit of global mining company Anglo American [JSE:AGL], said on Wednesday its full-year profit likely fell by about a third, hit by lower export prices and an illegal strike at its main mine. 

Kumba said in a statement it expects to report headline earnings per share of between R36.30 and R38.80 for the year to end-December, compared with R53.13 a year earlier. 

Kumba said the decrease is due to a decline in export iron ore prices and lower production following an illegal strike at its Sishen Mine. 

Kumba and other South African mining companies were caught by a wave of labour unrest that started in the platinum industry last year and swept across Africa's biggest economy. 

Anglo Platinum [JSE:AMS], another local unit of Anglo American, warned this week it would fall to a full-year loss because of the strikes. 

Kumba said it will release its results around February 12.

 

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