Metorex expects no earnings surprise

[] — Metorex advised on Thursday that for the 12 months ended June 2010 it expects headline earnings to be between 22c and 26c per share compared with 2009’s 24c.

Basic earnings are expected to be between 70c and 75c per share after a loss of 272c in 2009, while adjusted HEPS are expected to be between 23c and 25c after a loss of 9c.

The company said the 2010 earnings include a hedge loss before taxation of R400m, or 26c per share, related to the Ruashi project finance hedges which were priced at $3 900 per tonne. Management said these hedges expired on 30 June 2010.

Adjusted headline earnings exclude non-recurring items. Therefore, the 2010 and 2009 attributable earnings from Pan African Resources and Vergenoeg Mining Company, both of shich are now sold, and losses incurred at Consolidated Murchison, which is held for sale, are excluded.

The 2009 adjusted headline earnings exclude the exceptional accounting profit of 21 cps which arose when the Ruashi hedge book was restructured during December 2008.

Metorex intends to release its results on Tuesday, 7 September.