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 by 16.4 percent to ZAR 12.67 billion ($716.68 million), compared to ZAR 15.15 billion in the same period of the previous financial year, while the company’s total sales revenues fell by 10.9 percent to ZAR 38.28 billion ($2.17 billion), compared to ZAR 42.98 billion recorded in the first half of 2022, mainly as a result of lower prices and sales volumes. In the given period, Kumba recorded an operating profit of ZAR 17.53 billion ($993.06 million), compared to an operating profit of ZAR 20.58 billion in the same period of 2022.
In the first half, the company’s EBITDA fell by 14.0 percent year on year to ZAR 19.8 billion ($1.12 billion), while its EBITDA margin decreased to 52 percent in the given half, from 54 percent in the first half of last year.
Meanwhile, in the first six months of the year Kumba’s total production volume grew by six percent year on year to 18.8 million mt, driven by a 22.0 percent increase at Kolomela mine to 6 million mt, while its export sale volumes dropped to 18.9 million mt from 19.7 million mt in the same period of 2022.
The company anticipates production in the range of 35-37 million mt and sales 36-38 million mt in the full year.
Kumba also expects its capital expenditure for the full year to range between ZAR 9-10 billion, compared to ZAR 11-12 billion in the previous guidance.