Kumba Iron Ore’s headline earnings per share rise 12%

KUMBA Iron Ore said yesterday its headline earnings per share rose 12% to R30.47 in the year to December, from R27.30 in 2016. The company declared a final cash dividend of R15 a share, with a total dividend of R30.97 a share.

Kumba said overall production increased by 8% to 45 million tons because of significant productivity improvements at its main Sishen Mine, which achieved 31.1 million tons, while Kolomela delivered 13.9 million tons.

Total sales rose 6% to 44.9 million tons and total export volumes were up 7% to 41.6 million tons compared with 2016.

“I am pleased to report that Kumba has delivered on our key objectives for 2017,” chief executive Themba Mkhwanazi said.

“Most importantly, our safety initiatives resulted in a fatality-free year with material improvement across our key indicators.”

Kumba said its production guidance for 2018 was between 44 and 45 metric tons. Sishen was expected to produce between 30 million and 31 million tons of iron ore, while Kolomela’s output would be about 14 million tons.

The company said its performance remained sensitive to the volatility in iron ore export prices and the rand/dollar exchange rate.

“Our priority now is on driving operations to unlock their full potential, rationalising external expenditure, reinforcing the integration of sales and operational planning, and building a more effective organisation,” Mkhwanazi said.

“In the medium and longer term, we will focus on the development of new technologies.” – African News Agency (ANA)