LONDON (dpa-AFX) - Anglo American plc (AAUKY.PK, AAL.L) reported Tuesday that Kumba Iron ore's headline earnings for the first half of 2019 increased by 239 percent from the year-ago period to 10.1 billion South African Rand.
The company noted that higher average realized iron ore prices and a weaker Rand contributed to the strong financial performance.
EBITDA for the period surged to R20.1 billion from R7 billion a year ago, driven by controllable factors which delivered a 35 percent gain through higher market premia and increased sales, partly offset by higher operating expenses.
Total revenue for the period grew 77 percent to R34.5 billion from R19.5 billion in the year-ago period.
However, on an operational basis, Kumba experienced a challenging first half as production volumes decreased 11 percent from the year-ago period to 20.1 Mt, largely due to unscheduled plant maintenance in the first quarter of 2019.
The company noted it made good progress in the second quarter with a 12 percent increase in production from the first quarter to 10.5 Mt.
Looking ahead, Kumba Iron Ore remains cautious and lowered its full-year production guidance for the year to 42 Mt to 43 Mt. However, the company affirmed its outlook for full-year sales in a range of 43 Mt to 44 mt.
'For the second half of the year we aim to improve our safety performance, increase production volumes and deliver on our full year R700 million cost-savings target while continuing to achieve optimal market premia. Our strategy to extend the life of our mines to over 20 years remains on track,..' said Themba Mkhwanazi, Chief Executive of Kumba Iron Ore.
The company's board has declared an interim cash dividend of 9.9 billion rands or 30.79 rands per share.
Copyright RTT News/dpa-AFX
© 2019 AFX News
