Kumba to post one fifth earnings decline

[miningmx.com] – KUMBA Iron Ore would post at least a 20% decline in headline and basic earnings for the 12 months ended December 31, the company said in a trading statement today.

“The decrease in earnings is largely attributable to a significant decrease in export iron ore prices, partially offset by a weaker exchange rate during the period,” it said. Iron Ore prices had fallen from $140/t two years ago to about $80/t today.

The company, which is controlled by Anglo American, reported a 24% increase in headline earnings to R28.4bn in its previous financial year and paid out a total dividend of R40,04 per share equal to a 26% increase in shareholder rewards year-on-year.