/ 10 February 2011

Kumba profit up on higher prices, exports

Kumba Iron Ore on Thursday doubled its full-year profit, boosted by increased exports and prices and said it expects flat production and export volumes this year.

Kumba, the world’s 10th-largest iron ore producer and a unit of Anglo American, said basic headline earnings per share for the year to end-December rose to R44,67 from R21,87 a year earlier, according to results posted on its website.

Headline earnings are the main profit gauge in South Africa and strip out certain one-time items.

Kumba said production of the steel-making ingredient rose 3% to 43,3-million tonnes, while export sales were up 6% to 36,1-million tonnes.

The company said it expects production and export volumes to remain flat this year.

Kumba declared a final cash dividend of R21 per share.

Shares in Kumba are up over 9% this year, compared with a 3,4% rise in Johannesburg’s top-40 index of blue chips. — Reuters