JSE-listed Sentula Mining has sharply revised downwards its earnings outlook for the financial year.
In a trading update, Sentula said that compared with a forecast released in June, headline earnings per share could fall by as much as 37%, while basic earnings per share could drop by up to 32%.
The company’s headline earnings a share were expected to fall by between 24% and 37% to between 130c and 107c a share. Basic earnings a share could drop by between 17% and 32% to between 141c and 116c a share, the miner stated.
The downturn was attributed to lower commodity prices and a slower-than-anticipated turnaround in its opencast division.
Sentula said that since June 27, when it published its earnings forecast, the price of resources, in particular ferrochrome, had fallen sharply.
The marked reduction in ferrochrome prices had had an “adverse” impact on its subsidiary exposed to the sector.
The general reduction in commodity prices also resulted in a reduced demand for exploration drilling. However, Sentula said that this division’s exposure to the coal and platinum markets had mitigated the reduction and that it was expected to underpin revenues for the foreseeable future.
Scharrighuisen Open Cast Mining’s turnaround process had been hampered by “disappointing” asset availability and historic contract prices.
Source: Mining News
No comments:
Post a Comment