S.Africa’s Kumba Iron Ore flags expected full-year profit leap
South Africa’s Kumba Iron Ore KIOJ.J expects 2021 full-year profit to have jumped by about 50% from the previous year, it said on Thursday, citing high iron ore prices.
Headline earnings per share (HEPS) – the main measure of corporate profit in South Africa – are expected to come in at between 97.43 rand ($6.39) and 107.80 rand, up 37-52% from 2020.
Iron ore miners globally had a strong run in 2021 as pent up demand and a rebound in Chinese economic growth lifted iron ore prices to a record peak around October, with the price rising by close to 450% within a year.
Kumba, a subsidiary of London-listed Anglo American AAL.L, said the increase in earnings would be partly offset by a strengthening of the rand against the dollar.
The company’s production for the year to Dec. 31 increased 9% to almost 41 million tonnes, driven by improved plant reliability and the reduced impact of COVID-19, it said.
Source: Reuters (Reporting by Nelson Banya Editing by Promit Mukherjee and David Goodman)