South Africa’s largest iron ore producer Kumba Resources reported a 74% jump in net operating profit for the September quarter thanks to higher iron ore and coal sales.
The group said on Monday it expected to maintain its good operational performance for the full financial year but warned this would be influenced by the volatile exchange rate.
Net operating profit rose to R410-million in the first quarter of the new financial year from R236-million in the same period last year.
”The good operational performance is expected to be maintained for the financial year. Operating profit will however be influenced by the effect of the exchange rate,” the group said in a statement.
The results have been restated to reflect Kumba’s split from steel producer Iscor in November 2001.
Profits were led by Kumba’s key iron ore division which reported a leap in net operating earnings to R299-million from R191-million, boosted by increased exports.
Iron ore output in the quarter ending September 30, 2002 rose marginally to 6,982-million tons from 6,977-million tons.
Exports accounted for at least 75% of total iron ore output but the group said this was offset by lower iron ore prices and higher distribution costs.
Total coal production fell slightly to 4,72-million tons from 4,78-million tons but the group recorded an increase in sales to its main customer power utility Eskom. – Reuters