Kumba Iron Ore reports record earnings: 'We're confident in terms of the future'
One of the big surprises of 2020 was the huge positive global impact of commodity demand. We've seen platinum companies shoot the lights out! We're also seeing very strong demand for iron ore worldwide.Bruce Whitfield, The Money Show host
Partly as a result of this global demand, Kumba Iron Ore has reported record earnings for the year ended 31 December.
It delivered an EBITDA (earnings before interest, tax, depreciation, and amortisation) of R45.8 billion and R20.7 billion in free cash flow, an increase of 21%.
Kumba declared a final dividend of R41.30 a share, that included a top-up of R8 a share.
Kumba's also announced approval of the R3.6bn extension of the life of its flagship Sishen mine in the Northern Cape, to 2039.
Bruce Whitfield gets comment from Kumba CEO Themba Mkhwanazi on The Money Show.
We certainly saw a very, very robust and strong iron ore price as you said, driven by China, particularly in the first half.Themba Mkhwanazi, CEO - Kumba Iron Ore
On the demand side what we saw in the second half - when the rest of the world was getting over Covid - some of the markets in Europe started opening up... which was supportive of the higher iron ore prices.Themba Mkhwanazi, CEO of Kumba Iron Ore
We tend to get a higher realised price than the index price - it's testament again to the superior quality of our product.Themba Mkhwanazi, CEO - Kumba Iron Ore
We are quite confident in terms of the future, in terms of our business.Themba Mkhwanazi, CEO - Kumba Iron Ore
He says the company's life-of-mine extension demonstrates not only confidence in Kumba, but also in investment in South Africa.
This will maximise product quality and extend Sishen’s life-of-mine to 2039. We are also developing our Kapstevel South mine at Kolomela, while continuing our exploration programme in the Northern Cape as we develop our resource pipeline.Themba Mkhwanazi, CEO - Kumba Iron Ore
Through our use of technology we are also actually improving the quality of jobs.Themba Mkhwanazi, CEO - Kumba Iron Ore
Listen to the interview on The Money Show:
This article first appeared on CapeTalk : Kumba Iron Ore reports record earnings: 'We're confident in terms of the future'
Source : angloamericankumba.com.
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