Metorex sees interim earnings doubling

[LesCrozes]

Metorex sees interim earnings doubling - by: Brindaveni Naidoo - 4th August 2011

JOHANNESBURG (miningweekly.com) – Base metals miner Metorex expects to report a strong performance for the first six months of the year, more than doubling its headline earnings a share to between 25c and 27c.

The JSE-listed miner, for which Chinese company Jinchuan has made a R9.1-billion offer, expected earnings of between R181-million and R200-million, up from R95-million in the first six months of 2010.

Adjusted headline earnings are between R294-million and R316-million, with earnings a share (EPS) increasing from 11c in 2010, to between 18c and 20c.

EPS include a one-off charge of 6c a share for the impairment of previously recognised taxation claims against the Zambian government for taxes in excess of those permitted under the Chibuluma Development Agreement.

It has 1 0003-million weighted average number of shares in issue, the company said.

Adjusted headline EPS exclude noncash put option premium amortisation charges at Ruashi, its developing copper and cobalt operation in the Democratic Republic of Congo, of 4c a share. This put option premium has now been fully amortised, the company said.

Metorex is expected to announce its interim results for the six months ending June, in September.