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PrintAssore Ltd. (ASR), a South African owner of mines, said full-year profit more than doubled on increasing demand and higher prices for iron ore.
The company, based in Johannesburg, reported net income of 3.2 billion rand ($440 million) in the year ended June 30, compared with 1.5 billion rand a year earlier, it said in a statement today. Sales gained 47.8 percent to 11.2 billion rand.
Assore, joint owner of manganese producer Assmang Ltd. with African Rainbow Minerals Ltd. (ARI), spent 2.8 billion rand to develop infrastructure at the Khumani Iron Ore Mine and raise output to 16 million metric tons a year by mid-2012, from 10 million tons.
While demand in the iron ore market is tight, a recovery in manganese and chrome ore and alloy prices is unlikely, it said. Power and other costs in South Africa are hurting smelters.
“We expect challenging economic and trading conditions for the year ahead,” Chairman Desmond Sacco said in the statement.
Assore, which mines manganese, chrome and iron ore, as well as producing ferroalloys for the steel industry, fell 2.4 percent to 208 rand at the 5 p.m. close in Johannesburg.
The company declared a final dividend of 2.50 rand a share.
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