Kumba sees rise in H1 earnings on higher prices

Thu Jul 7,2011

* Sees headline EPS between 26.80-28.70 rand
* Says higher iron ore exports prices lift earnings

JOHANNESBURG, July 7 (Reuters) - Kumba Iron Ore (KIOJ.J: Quote) said on Thursday it expects a rise in first-half earnings lifted by higher iron ore export prices.

Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American (AAL.L: Quote), said it expects headline earnings per share for the six months to end-June at between 26.80 rand and 28.70 rand.

This compares with headline earnings per share of 20.28 rand reported a year earlier.

Headline earnings are the main profit gauge in South Africa and strip certain one-off and non-trading items.

"The increase in earnings is primarily attributable to higher export iron ore prices which were partially offset by the strengthening of the average exchange rate of the rand to the U.S dollar during the period," the company said in a statement.

The local currency has gained 13 percent against the dollar over the past 12 months.

Rio tinto says iron ore market to remain tight

Apr 14, 2011 10:50pm GMT

SYDNEY, April 15 (Reuters) - The global market for iron ore will remain tight in the near to medium term, with demand running strongly and new supply coming on slowly, miner Rio Tinto said.

"We believe that the market for iron ore will remain tight in the short to medium term with delays to new supply and strong demand driving prices," the world's second-largest producer of the steel-making raw material said in a statement released to the Australian stock exchange on Friday.

(Reporting by Mark Bendeich; Editing by Balazs Koranyi, Thomson Reuters)

Fortescue Metals Cuts Quarterly Iron Ore Output Guidance

4March 2011
By Robb M.StewartBy Dow Jones

MELBOURNE -(Dow Jones)- Fortescue Metals Group Ltd. (FMG.AU), one of Australia's largest producers of iron ore, said Friday its output in the March quarter will be dented by continued heavy rainfall in Australia's Pilbara region.

The Perth-based company said it expects iron ore production to be between 8.5 million and 9 million metric tons, a reduction of 0.5 million tons from its previous guidance.

The sustained wet weather has caused significant flooding in the iron ore-rich Pilbara, which has closed roads and restricted air access to Fortescue's mining operations and disrupted production, it said.

The company said it working to maximize output throughout the remainder of the quarter.

Rio Tinto PLC (RIO) and BHP Billiton Ltd. (BHP) are the country's biggest producers of iron ore.

-Newswire