Assore earnings fall to R3.5bn
JOHANNESBURG (miningweekly.com) – JSE-listed Assore on Wednesday reported a 4.7% decline in headline earnings for the year to June 2013, mostly owing to the 7.1% decline in headline earnings of 50%-owned Assmang.
Assore’s headline earnings reached R3.5-billion for the year under review, down from the R3.7-billion recorded in 2012, but the company pointed out that the second half of the year, generating earnings of R2.4-billion, had recovered significantly from the subdued R1.1-billion in earnings during the first half of the year.
Assmang’s headline earnings decreased to R6.5-billion in 2013, from R7-billion the year before.
The subsidiary recorded a R312-million impairment against furnaces and associated equipment in its manganese and chrome divisions, which had become unprofitable to operate under current market conditions and cost structures.
However, Assmang achieved a 5.5% rise in turnover for 2013 to R25-billion, from 23.7-billion the year before.
“Despite difficult market conditions, we produced results that are consistent with last year, mainly due to record iron-ore sales volumes,” said Assore chairperson Desmond Sacco.
Additional rail capacity from the Khumani iron-ore mine boosted iron-ore sales, while Assmang’s chrome division delivered record sales volumes of chrome ore.
“Support for the sale of the group’s products remained mainly from within China, where crude steel production was at record levels for the second half of the financial year,” he commented.
However, short-term steel production was expected to fall, which, in conjunction with an increase of available iron-ore from new and established Australian producers, was expected to cause downward pressure on iron-ore prices.
Assore declared a final dividend for the year of 600c.
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