TERENCE Goodlace, the former CEO of Impala Platinum (Implats), has been appointed chairman of Kumba Iron Ore, the Anglo American-owned company said in an announcement today.
Goodlace succeeds Mandla Gantsho who retired from Kumba’s board at the firm’s annual general meeting on May 14. Goodlace has served on Kumba’s board for the past four years as a lead independent director, a role he has now relinquished, as well as other duties including his membership of the audit committee.
“As a widely respected leader in the South African mining industry, his demonstrable commitment to health, safety, operational excellence, and innovation adds to the quality of our board discussions,” said Themba Mkhwanazi, CEO of Kumba.
Said Goodlace: “As Africa’s largest iron ore producer, Kumba is uniquely positioned to continue producing premium products for its global customers while delivering sustainable value for all its stakeholders”.
Kumba said in a separate announcement today that headline earnings for the six months ended June 30 would be at least R12.6bn. This is a 150% year-on-year increase. Basic earnings would be similarly elevated at some R12.6bn.
“The period under review has to date seen higher average export iron ore prices and a stronger Rand/US Dollar exchange rate relative to the comparative six months ended 30 June 2020,” the company said.
Kumba reported a realised iron ore price of $183/t in its 2020 financial year which compares to an average of $153/t for the year before. However, these numbers pale against the $220/t price fetched by the mineral in May – potentially registering a significant operating margin as Kumba was reaching for unit costs of $34/t.
According to Oversea-Chinese Banking Corporation, iron ore could increase to as much as $250/t in the next 12 to 18 months.