Kumba Iron Ore Announces Projected Fall In First-Half Earnings

VENTURES AFRICA – Kumba Iron Ore Ltd. (KIO) stock has fallen the most in two weeks on Johannesburg Stock Exchange (JSE) making the Anglo American Plc (AAL) unit to announce projected fall in its first-half earnings – a fall that will exceed analysts’ estimates.

On the floor of JSE, the company’s share has declined 3.5 percent at the 5 p.m. close; it’s the biggest drop since June 22.

Furthermore, earnings excluding one-time items are likely to be 7.1 billion rand ($864 million), the company said in a statement.

According to the company, the decrease in earnings is largely attributable to a decrease in export iron ore prices in the period.

The reduced earning is also affected by price of iron-ore fines imported through Tianjin port into China, the largest steel-making nation, which fell 21 percent to an average of $140.41 a metric ton this year from $176.63 in 2011.