JOHANNESBURG – South Africa’s Kumba Iron Ore said it expects half-year profits to rise by as much as 58% due to a recovery in iron ore prices.
Kumba, which is 70% owned by Anglo American, said headline earnings per share (EPS) were likely to be between R13.70 and R14.85 for the six months through June, an increase of between 46% and 58%.
“The increase in earnings for the period is largely attributable to higher export iron ore prices, partially offset by the stronger rand/US$ exchange rate,” the company said in a statement.
Headline EPS is the main profit measure in South Africa and strips out certain one-off items.
Shares in Kumba were down 1.2% at R171.50 by 0710 GMT, hit by a near 3% drop in China’s iron ore futures after data added to concerns about surplus supply.