Kumba Iron Ore has reported a 16% drop in its earnings results for the six month period that ended in June. The company cited weak prices as the cause of the decrease. Kumba is a unit of Anglo American and holds a current market cap of R109.54bn with a price to earnings ratio 7.07, its sharing price is trading 27.63% down on the year.
Overview of results:
- Production of 22.8 Mt, up by 5% from 21.6 Mt in 1H13
- Sishen mine’s production up by 5% as recovery plan is executed
- Strong performance at Kolomela mine continued
- Planned increase in waste mined at Sishen mine continues, up by 6% to 86.9 Mt
- Operating profit decreased by 14% due to lower export iron ore prices and increased costs from mining activities
- Total sales volumes increased by 2% to 22.5 Mt
- R5 billion interim cash dividend declared to shareholders
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