Kumba Iron Ore Climbs in Johannesburg After Saying Profits Almost Doubled

Kumba Iron Ore Ltd., a unit of Anglo American Plc, rose the most in almost three weeks in Johannesburg trading after saying first-half profit almost doubled on higher prices and exports.

Earnings excluding one-time items probably climbed to between 19 rand ($2.51) and 20.55 rand a share from 10.76 rand a year earlier, the company said today in a statement. Final figures will be released July 22.

Shares in the miner advanced as much as 3.7 percent to 342.60 rand, the steepest gain since June 21. They traded at 339.43 rand as of 10:18 a.m. local time, giving the company a market value of 109.2 billion rand.

Contract export iron-ore prices in the second quarter were more than 90 percent higher than in the first, the company said. Export volumes of the steelmaking ingredient rose 10 percent in the first half from a year earlier, it said.

The increase in earnings excludes higher prices the company charges steelmaker ArcelorMittal South Africa Ltd., Kumba said. While Kumba is charging more for its deliveries to ArcelorMittal than a year ago, the increase is subject to a dispute.

To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net

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