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SA Kumba Iron Ore 2013 earnings rise 24% y/y on higher iron ore prices

February 16, 2014

South Africa'sKumba Iron Ore, Africa's biggest iron ore miner, posted headline earnings of ZAR 5.4bn (EUR 359mn) in 2013, up by 24% y/y. The company said that the favourable impact of a 17% weaker rand and the 2% increase in iron ore export prices were partially offset by a 2% fall in exported ore. Thus its operating profit grew 20% y/y to ZAR 54.5bn.

Kumba's 2013 production fell by 2% y/y to 42.4mn tonnes, as a result of the production shortfalls at Sishen mine that were mostly offset by the good performance at Kolomela mine. The latter was opened in H1 2012 and has already reached full monthly capacity.

JSE-listed Kumba is majority-owned by global mining group Anglo American. Last year, Kumba contributed almost half of Anglo American's earnings and analysts expect the proportion to remain similar also this year.

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Source: IntelliNews - Weekly Reports

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