Assore warns profits will fall by more than a quarter
Market conditions for manganese and chrome weakened in its six months to end-December
Mining and trading company Assore warned on Thursday that profits in its half-year to end-December could fall as much as 31% due to weaker demand for chrome and manganese products.
Headline earnings per share are expected to fall by between 26% and 31% compared to the prior period’s R28.28, with weaker market conditions compounded by lower sales volumes of iron ore.
Miners and steel producers have reported weak demand for steel in 2019, partially due to the US-China trade war.
Assore’s primary investment is a 50% holding in Assmang, which it controls jointly with Patrice Motsepe’s African Rainbow Minerals (ARM). It also has a chrome business and a marketing arm.
Assore said on Thursday weaker trading conditions were partially offset by higher iron ore prices and a 4% weakening in the rand against the dollar during the period under review.
In morning trade, Assore’s share price was unchanged R240.68, having lost 11.51% so far in 2020.