Kumba Iron Ore Ltd. (KIO) fell the most in two weeks in Johannesburg trading after the Anglo American Plc (AAL) unit said first-half earnings will probably fall by more than analysts estimated.
The stock declined 3.5 percent to 559.50 rand at the 5 p.m. close, the biggest drop since June 22.
Earnings excluding one-time items are likely to be 7.1 billion rand ($864 million), or 22.10 rand a share, to 7.5 billion rand, or 23.40 rand, Kumba said in a statement today. Earnings on that basis were 28.23 rand a share a year earlier. The median estimate of four analysts surveyed by Bloomberg is for 23.84 rand.
“The decrease in earnings is largely attributable to a decrease in export iron ore prices in the period,” the Johannesburg-based company said. Iron ore is used to make steel. Detailed earnings will be released on July 20, it said.
The price of iron-ore fines imported through Tianjin port into China, the largest steel-making nation, fell 21 percent to an average of $140.41 a metric ton this year from $176.63 a year earlier, according to The Steel Index Ltd. data on Bloomberg.
To contact the reporter on this story: Carli Cooke in Johannesburg at firstname.lastname@example.org
To contact the editor responsible for this story: John Viljoen at email@example.com