STOCKWATCH: Assore shares jump up to 8% following trading update
Assore shares gained as much as 8% on Thursday afternoon after the diversified miner forecast a big jump in its full-year profit, citing higher commodity prices. Headline earnings per share are expected to jump by up to 208.5% to R52.14 in the year to June, on rising iron ore, chrome and manganese prices. Average prices for iron ore rose 37% in the review period to $70 a tonne. Prices for manganese ores nearly doubled, leading to an increase in prices for manganese alloys, Assore said in a statement. Assore is in a 50-50 mining and processing joint venture with African Rainbow Minerals (ARM), called Assmang, producing iron ore and manganese. It also owns 100% of the Dwarsrivier chrome mine, after buying out ARM’s stake in 2016. Assore’s headline earnings are expected to jump by between 179.2% and R208.5% to between R4.87bn and 5.38bn. Its shares were up 4.49% to R234.48 in mid-afternoon trade, valuing the company at about R32.7bn.
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