Anglo American’s South African subsidiary Kumba Iron Ore has announced its financial results for the year ended on December 31.
Kumba Iron Ore’s net profit increased 69 percent to ZAR 21.3 billion ($1.4 billion) compared to ZAR 12.6 billion in the previous financial year, while the company's total revenue rose by 41 percent to ZAR 64.3 billion ($4.27 billion) compared to ZAR 45.7 billion recorded in 2018 due to stronger prices, higher market premiums and currency gains.
The company’s EBITDA improved 62 percent year on year to ZAR 33.4 billion ($2.22 billion), reflecting higher iron ore prices, improved efficiencies and further cost savings, while its EBITDA margin rose to 52 percent in the given year, from 45 percent in the previous year.
“Our financial performance reflects the benefits of higher iron ore prices, improved efficiencies and further cost savings ahead of our target, which have cushioned the impact of the operational challenges experienced during the period,” said Kumba chief executive Themba Mkhwanazi.