Mining giant Anglo American’s Kumba Iron Ore on Thursday reported an increase in its first-half diluted headline earnings per share from R5,02 in 2007 to R8,75 for the six months to end June 2008.
The iron ore producer said first-half production increased 12% to 8,9-million tons, with the production of lump up 13% to 5,3-million tons and the production of fines up 9% to 3,6-million tons.
Kumba declared an interim dividend of R8.
Revenue increased by 67% from R5,4-billion to R9-billion as a result of higher sales volumes, stronger iron ore prices and increased revenue from shipping services.
Kumba’s operating margin increased to 58% in 2008 from 54% in 2007.
Profit for the six months was R3,5-billion while headline earnings increased 76% to R2,8-billion.
Cash generated by operations for the period increased to R4,6-billion, up 52% compared with the R3-billion generated during the corresponding period in 2007.
First-half attributable and headline earnings were R8,90 a share.
Looking ahead, Kumba said it remained positive on the prospects for iron ore given continued strong Chinese demand for steel and upward pressure on iron ore prices.
Final settlement of iron ore prices for the 2008/09 iron ore year between Kumba and its customers is anticipated in the third quarter of 2008. — I-net Bridge