Kumba Iron Ore came out with that aforementioned trading statement on Friday. Check it out, from the SENS release:
"...shareholders are advised that earnings and headline earnings are likely to be between R6,100 million and R6,600 million, with headline earnings per share ("HEPS") and earnings per share ("EPS") being between 1,900 cents and 2,055 cents." Where the comparative period was 1,076 cents and 1,073 cents respectively. Phew.
Reasons for the big jump in earnings? "The increase in earnings is largely attributable to an increase in export iron ore prices and a 10% increase in export sales volumes in the period." And perhaps a slight revelation, although we do know that this is happening in the background: "From 1 March 2010 Sishen Iron Ore Company (Pty) Limited(a subsidiary of Kumba) has invoiced ArcelorMittal South Africa Limited (ArcelorMittal) at market prices. ArcelorMittal has paid only cost +3% on purchases of 1.452Mt of iron ore from Sishen Mine. In determining earnings for the period Kumba has accounted for revenue at cost +3% to ArcelorMittal, in the absence of agreement on an interim price." That must make for a few awkward moments and phone calls. Errr.. the bill says this and you paid that. Errr... got to go, have another call, keep that iron ore coming, later!