Dip in full-year headline earnings for Kumba Iron Ore

Kumba Iron Ore, a unit of Anglo American, on Thursday reported a dip in full-year headline earnings, but said production and export sales were up, and output would rise further in 2010.

South Africa’s Kumba, the continent’s biggest producer of iron ore, said basic headline earnings per share for the year to end-December dipped to R21,82 from R23,02 in 2008, hit by a stronger rand against the US dollar.

Headline earnings are the main profit gauge in South Africa and strip certain one-off, financial and non-trading items.

Kumba said it produced 41,9-million tonnes of the steel-making ingredient last year, up from the 36,7-million tonnes it produced in 2008.

Export sales increased 37% to 34,2-million tonnes.

“Kumba is committed to a further increase in production volumes during 2010, with the continued ramp up of the Jig plant,” the company said in a statement.

Kumba’s domestic sales would depend on the off-take from ArcelorMittal, while analysts expect Chinese demand for iron ore to grow by at least 5% this year, it said.

“Although global steel demand is expected to return to growth in 2010, this is likely to be moderate and the sustainability of increase in demand outside of China remains uncertain,” the company said.

Kumba said its operating profit remained highly sensitive to the rand/dollar exchange rate. The South African currency rose about 20% since the start of 2009.

The company declared a final dividend of R7,40 per share. — Reuters

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Muddying the waters in the Musina Makhado economic zone

The public participation process on the environmental impact assessment for the area’s special economic zone has been shambolic

Institutions of higher learning should commemorate their casualties

The bust of Matikweni Nkuna at Tshwane University of Technology is an example of how we should honour those who fought for equal access to education

Seals abort pups in mass die-off

There are a number of factors — a pollutant, virus or bacteria or malnutrition — that may have caused the 12 000 deaths on Namibia’s coast.

Deconstructing South Africa’s construction industry performance

The construction industry has contracted sharply, partly due to Covid, and needs to rebalance its focus if it wants to survive

Editorial: SA will be bankrupted by looters

The chickens have finally come home to roost: if we do not end the looting, it will end us

Zuma vs Ramaphosa? Neither is the leader South Africans deserve

Neither statesman could command sufficient authority in an ANC that remains mired in corruption and infighting and at the behest of big capital

Subscribers only

Toxic power struggle hits public works

With infighting and allegations of corruption and poor planning, the department’s top management looks like a scene from ‘Survivor’

Free State branches gun for Ace

Parts of the provincial ANC will target their former premier, Magashule, and the Free State PEC in a rolling mass action campaign

More top stories

Durban city manager says NPA erred in his bail conditions

The corruption-fraught metro is coming to grips with having a municipal manager who is on bail for graft, yet has returned to work

Why anti-corruption campaigns are bad for democracy

Such campaigns can draw attention to the widespread presence of the very behaviour they are trying to stamp out — and subconsciously encourage people to view it as appropriate

Tax, wage bill, debt, pandemic: Mboweni’s tightrope budget policy statement

The finance minister has to close the jaws of the hippo and he’s likely to do this by tightening the country’s belt, again.

SA justice delays extradition of paedophile to UK

Efforts to bring Lee Nigel Tucker to justice have spanned 16 years and his alleged victims have waited for 30 years

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday