Kumba Iron Ore says it expects first-half earnings to dip as a stronger rand, weaker iron ore prices and the absence of a one-off payment from Transnet offset an otherwise resilient operational performance.In a trading statement on Tuesday, the Anglo American-owned iron ore producer said headline earnings for the six months to end-June are expected to decline by between 39% and 43%. Headline earnings per share (HEPS) are forecast at between R12.68 and R13.61, down from R22.26 in the corresponding period last year.The company also expects earnings before interest, tax, depreciation, and amortisation (EBITDA) to fall by as much as 35% to between R10.43bn and R11.19bn, from R15.99bn a year ago.Kumba said the deterioration in earnings was due to factors beyond its control. About 96% of the EBITDA decline was the result of the rand strengthening by 11% against the US dollar, slightly lower realised export iron ore prices, and the absence of a once-off payment from Transnet linked to logistics performance that boosted earnings in the first half of 2024, it said.Despite the pressure on profits, the miner said its operations held up well during a challenging period that included some of the heaviest rainfall experienced at its mines in decades during the second quarter.Production fell 3% compared with the previous year. Kumba said solid performance at its flagship Sishen mine helped limit the decline, though this was partly offset by planned lower output at the Kolomela mine.Sales volumes also slipped by 1%, mainly due to the first of two planned 10-day maintenance shutdowns on Transnet’s iron ore export corridor in May.The company is expected to provide further operational details when it releases its production and sales report on Thursday. Its full interim financial results are due on July 28.Business Day