As expected, Kumba Iron Ore’s results were very good, but with one exception: everybody was expecting a dividend and we didn’t get one. Management says it’s strengthening the balance sheet and considering the tough period the company just went through, one can’t blame the team. The market will get over its disappointment. Cost per tonne for the company is now below $30, down from above $40. But this will rise as it’s focused on mining the most profitable ore right now. However, even below $30 this still makes the company one of the more expensive iron ore miners with the majors producing at around $20 per tonne. For now, with the iron ore price above $90, it’s making great profits, but prices are expected to slide back into the $60s – which will still be profitable for Kumba, but less so. That all said, unless iron ore heads below $40, which I don’t expect, profits will flow and we should see a dividend in the next financial year.