Kumba Iron Ore, Africa’s biggest iron-ore producer, saw full-year headline earnings per share (EPS) leap by 43% as prices and demand soared, the company said on Thursday.
Kumba said tight global supplies should support prices in the coming year, but said costs resulting from an energy shortage in South Africa could weigh.
”The economies of China and the rest of Asia are expected to continue growing on the back of strong domestic demand and high levels of domestic fixed investment, providing continued strong growth in the demand for iron ore,” Kumba said.
”As a result, prices are expected to increase substantially in the current iron-ore year and remain firm in the medium term.”
Headline EPS — the key profit measure in South Africa, which excludes non-trading, capital and some extraordinary items — rose to 974 cents in the year to end December.
Demand from China in particular drove record iron-ore production, which jumped to 32,4-million tonnes in 2007. Increased production from its Sishen project is expected to add 13-million tonnes in 2009.
Kumba’s revenue jumped by 33%.
Kumba is majority-owned by Anglo American and emerged from the break-up of Kumba Resources. — Reuters