Kumba's results for the twelve months ending 31 December 2012 ("the period") will be released on SENS on or about 12 February 2013. Headline earnings and basic earnings for the period are likely to be at least 20% lower than the previous 12 months, ended 31 December 2011.
Headline earnings and basic earnings reported for the 12 months ended 31 December 2011 (as released on SENS on 9 February 2012) ("the comparative period") were R17,048 million and R17,042 million respectively while headline earnings per share ("HEPS") and earnings per share ("EPS") reported for the comparative period were R53.13 and R53.11 respectively.
The decrease in earnings is largely attributable to a decrease in export iron ore prices in the period as well as the impact on production following the illegal strike at Sishen Mine. As previously announced, approximately 300 employees embarked on an illegal strike on Wednesday, 3 October 2012 at the mine. Production was suspended on Thursday, 4 October 2012, when the miners blocked access to the pit, creating an unsafe environment for mining operations. The illegal strikers were removed by the police on the morning of 16 October 2012 and approximately 200 employees were dismissed due to their participation in the illegal strike. Production recommenced on 20 October 2012 on a limited basis as attendance rates in the mining production area are still low, with incidences of intimidation still being reported, which continues to hamper production output at the mine. Due to the effects of the illegal strike, as at 9 November 2012, Kumba lost approximately 2.6Mt of finished product at Sishen Mine.
In this regard, HEPS and EPS are also likely to be at least 20% lower than those of the comparative period. Shareholders are advised that a further trading statement will be issued in due course to provide forecast ranges for HEPS and EPS as required by the JSE Listing requirements.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.
