Kumba year earnings fall in line with expectations

JOHANNESBURG: South Africa's Kumba Iron Ore, a unit of global mining company Anglo American, on Tuesday posted a 28 percent drop in full-year earnings, hit by lower export prices, rising costs and an illegal strike at its Sishen mine.

Kumba, the continent's largest iron ore producer and No. 10 globally, said diluted headline earnings per share fell to 37.91 rand from 52.99 rand a year earlier.

The results compared to 37.76 rand per share forecast by Thomson Reuters consensus estimates.

Headline EPS, the main measure of profit in South Africa, excludes certain one-time items. The declared dividend was 12.50 rand compared to the 32.10 rand per share from the Thomson Reuters estimates.

Kumba said earnings fell due to a drop in export iron ore prices over the 12-month period and lower production following an illegal strike at its Sishen Mine.

South African mining companies were caught by a wave of labour unrest that started in the platinum industry last year and swept across Africa's biggest economy.

Kumba remains one of the best performers in the stable of Anglo American, which has seen its fortunes flag in the face of a $4 billion write-down on its flagship Minas Rio asset and a slide into the red of its South African platinum arm.