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Johannesburg - Kumba Iron Ore [JSE:KIO], a unit of global
miner Anglo American [JSE:AGL], reported a rise in full-year profit on
Thursday, boosted by higher iron ore prices and said it expects export volumes
to rise in the current financial year.
Kumba, Africa's largest producer of the steelmaking
ingredient, said full-year diluted headline earnings per share totalled R52.99,
compared with R44.54 a year earlier.
Africa is regarded by many in the industry as the next iron
ore frontier with many global miners moving to cash in on the projected rise in
demand for steel from Asia.
Kumba, the world’s 10th largest producer of iron ore, said
production dropped 5% to 41.3 million tonnes on the back of feedstock
constraints at the company’s Sishen mine.
Export sales rose 3% to 37.1 million tonnes and would rise
by around 3 million tonnes in the current financial year as the company’s
Kolomela mine ramps up output.
Kolomela is on track to produce between 4 and 5 million
tonnes of iron ore this year, before ramping up to full capacity of 9 million
tonnes by 2013.
The company declared a final cash dividend of R22.50 per
share.
Kumba said the medium to long-term outlook for iron ore
demand remained robust on the back of infrastructure developments in China.
Short-term iron ore supply is expected to remain tight given
weather problems in Brazil and Australia, and India’s moves to control exports.
“Ongoing challenges producers face in delivering new supply
will lead to increasing capital intensity and underpinned long-term pricing
outlook,” Kumba said in a statement.
Kumba’s shares are up 8.8% so far this year, compared with a
6.42% rise in the JSE Top 40 - (Tradeable) [JSE:J200] blue chip index.
