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Kumba appoints new CEO, H1 earnings rise 20%

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – Kumba Iron Ore said on Tuesday that Themba Mkhwanazi would take the helm as chief executive from Sept 1, replacing┬áNorman Mbazima, who is stepping down to focus on his role as deputy chairman of Anglo American South Africa.

* Mkhwanazi, a former Rio Tinto manager, has been chief executive officer of Anglo American’s Coal South Africa business since May 2014.

* Kumba’s first-half results came in as expected, with the Anglo American unit posting a 20 percent rise in headline earnings per share to 9.41 rand.

* Kumba had flagged to the market that it expected first-half profit to increase between 14 and 23 percent because of a deferred tax asset in the comparative period.

 

(Reporting by Ed Stoddard; Editing by Joe Brock)

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Kumba Iron Ore sees 2015 profit plunging as supply glut persists

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s Kumba Iron Ore said on Tuesday it expected full-year earnings to December 2015 plunge as much as 67 percent as it battled slumping prices for the steel-making ingredient.

The unit of Anglo American said headline earnings per share (EPS) are expected to fall by between 65 percent and 67 percent to 11.45 rand and 12.05 rand.

Kumba is due to release its full-year results on Feb. 9.

Headline EPS is the main gauge of profit in South Africa and strips out certain one-off items.

Iron ore prices fell about 35 percent in 2015 due to a supply glut and growth concerns in top consumer China, forcing Kumba to cut jobs and restructure its main mine, Sishen.

Kumba took a 6 billion rand ($374 million) writedown charge in 2015 for the reconfiguring of the Sishen mine.

Its shares initially fell as much as 8 percent before recouping losses to close 3.1 percent higher at 37.51 rand.

“The market had expected that there will be some write off. It is good that Kumba is taking the medicine it needs and focusing on cutting costs,” said Sanlam Private Wealth portfolio manager Greg Katzenellenbogen.

The world’s largest producer of iron ore, Vale SA, said on Thursday it would recommend to its board that no dividend be paid to shareholders this year because of the slump in commodity prices.

($1 = 16.0535 rand)

 

(Reporting by Zandi Shabalala and Thekiso Anthony Lefifi; Editing by Tiisetso Motsoeneng and David Evans)

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