Jan. 23 (Bloomberg) -- Palabora Mining Co., a South African copper producer majority-owned by Rio Tinto Plc and Anglo American Plc, rose to a 3 1/2-year high as earnings are forecast to beat analysts’ expectations.
The stock rallied 6.1 percent to 156 rand, the highest since June 30, 2008, by the close in Johannesburg. The FTSE/JSE Africa All Share Index was 0.3 percent higher.
So-called headline earnings per share, a key measure used in South Africa, probably rose to as high as 32.31 rand ($4) in the year through December compared with 12.28 rand a year earlier, the company said in a statement on Jan. 20. Analysts were expecting 27.63 rand, Imara S.P. Reid, a Johannesburg-based brokerage, said in an e-mailed note to clients today. The results are expected to be released Feb. 6.
“The trading guidance implies that Palabora will outperform expectations,” Imara said in the note. The company has benefited from an increase in magnetite production in 2011, Imara said. Magnetite is a kind of iron ore.
Rio Tinto and Anglo American, which together own about three-quarters of Palamin, are planning to sell their entire holdings in the company as it no longer fits their investment objectives, they said Sept. 5.
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