Fin24

Kumba warns of 20% profit knock

2012-11-13 10:12

Johannesburg - Kumba Iron Ore [JSE:KIO] warned on Tuesday that its full-year earnings will likely fall at least 20%, hit by a wildcat strike at its Sishen mine and lower export iron ore prices.

The company, a unit of global miner Anglo American [JSE:AGL], said it had so far lost about 2.6 million tonnes of finished product at Sishen, where output is still being hampered by low attendance.

Intimidation at the mine is being reported even after the end of an illegal strike that lead to the dismissal of about 200 employees, it said.

Kumba, one of the world's top 10 producers of iron ore and the largest in Africa, resumed operations at the mine on October 20 after they were halted by an illegal occupation.

At 09:31 the company's shares were down 2.21% at R529.07.

Kumba will report its earnings for the year to end-December on February 12.

Comments
  • strikeback.strikeback - 2012-11-13 13:30

    Kumba. How do you feel now about the R500 000 bonus you paid to each worker in 2011? You could have used it now for increases for the next 5 years. Anybody who still believes strikes are only the result of employers exploiting workers should re-think their opinions. If money is not deserved/earned, it is not appreciated. Dont get mad, get even. www.strikeback.co.za

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