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Kumba sees FY profit down as supply glut persists

Johannesburg - Kumba Iron Ore said on Tuesday it expected full-year earnings to plunge as much as 67% as it battled to cope with slumping prices of the steel-making ingredient, sending its shares lower.

The unit of Anglo American said headline earnings per share (EPS) are expected to fall by between 65% and 67% to R11.45 and R12.05.

Headline EPS is the main gauge of profit in South Africa and strips out certain one-off items.

Shares fell as much as 8% before recouping losses to trade 2.3% lower at R35.54 by 09:55 GMT.

Iron ore prices fell about 35% in 2015 due to a supply glut and growth concerns in top consumer China, forcing Kumba to cut jobs and restructure its main mine, Sishen.

Kumba took a R6bn ($373.75m) write down charge for the reconfiguring of the Sishen mine.

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