Global miner Anglo American’s South African subsidiary Kumba Iron Ore has announced its financial results for the first half this year.
In the given period, Kumba Iron Ore’s net profit decreased 50.5 percent to ZAR 15.15 billion ($907.61 million), compared to ZAR 30.62 billion in the same period of the previous financial year, while the company’s total sales revenues fell by 32.4 percent to ZAR 42.97 billion ($2.57 billion), compared to ZAR 63.61 billion recorded in the first half of 2021, mainly as a result of lower prices. In the given period, Kumba recorded an operating profit of ZAR 20.58 billion ($1.23 billion), compared to an operating profit of ZAR 41.92 billion in the same period of 2021.
In the first half, the company’s EBITDA fell by 47.9 percent year on year to ZAR 23.07 billion ($1.38 billion), while its EBITDA margin decreased to 54 percent in the given half, from 70 percent in the first half of 2021.
Meanwhile, in the first half Kumba’s production volumes fell by 12.7 percent year on year to 17.76 million mt, driven by a seven percent decrease at Sishen to 12.9 million mt, while its export sale volumes increased to 19.7 million mt from 19.5 million mt in the same period of 2021.
The company anticipates production and sales in the range of 38-40 million mt in 2022.
The company expects its capital expenditure for 2022 to range between ZAR 10.5 billion and ZAR 11.0 billion, compared to ZAR 10.5 billion and ZAR 11.5 billion in the previous guidance.