We are being teed up for the Anglo American results with numbers coming through from their subsidiaries, at least trading updates released from both Kumba Iron Ore and Anglo American Platinum, Amplats in the last two days. The last two trading days that is. For Kumba Iron Ore results are expected 22 July, which is next Tuesday, HEPS and EPS are expected to be between 19.50 to 21.50 for the first half. This is against the 24.13 to 24.16 cps from the first half last year.
Iron ore prices have had a rough time this year, but the Kumba Iron Ore price has adjusted accordingly, year to date the share price is down 22 percent. If the company maintains a very aggressive payout ratio, then the yield should be excellent from here. The weakening Rand should have at least buffered the price, watching volumes is going to be key. Results shortly, so let us not speculate about anything just yet.
The other Anglo American company, Amplats, of which parent Anglo owns nearly 80 percent had a trading update this morning. Headline earnings per share are expected to be between 20 to 80 cents, the first half last year saw the same number at 514 cents. Phew, of course you know why there has been a precipitous fall, the crippling strike around the Rustenburg mines has been the biggest problem. From what I understand there is no doubt going to be loads of restructuring announced this time next week, that is when the results hit the screens. As such one should also wait for a detailed review this time next week.