JSE-listed ArcelorMittal South Africa (AMSA) expects to report narrowed losses for the year to December 31, which is attributed to the nonrecurrence of the 2015 financial year’s R2.55-billion in one-off items and a R4.25-billion impairment, as well as an increase in steel sales prices and sustainable cost improvements in 2016.
The loss a share for the financial year under review is expected to narrow by 79% to 80%, from a loss of R21.52 in 2015 to between 438c to 448c for 2016.
The headline loss a share is also expected to decrease by up to 82% from R13.38 to between 239c and 249c a share.
AMSA reported one-off items in 2015 of R2.55-billion on the back of a Competition Commission penalty, closure of Thabazimbi mine and the derecognised payment in advance and an impairment of R4.25-billion at the Saldanha operations and the Vaal Melt shop in Vereeniging.