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Tuesday, July 5, 2022

S.Africa’s Kumba H1 profit slumps, suspends dividend

(Fixes headline)

By Zandi Shabalala

JOHANNESBURG, July 21 (Reuters) – South Africa’s Kumba Iron Ore suspended dividend payouts for the first time ever on Tuesday, as a slump in the price of its steel-making ingredient hit first-half earnings by more than 60 percent.

The unit of global miner Anglo American (LSE: AAL.L – news) reported diluted headline earnings per share of 7.82 rand for the six months to the end of June compared with 20.24 rand a year earlier.

Headline EPS, which strips out certain one-off items, is South Africa’s main profit measure.

Iron ore producers are battling low prices caused by a supply glut and growth concerns in China which is the world’s biggest consumer of the commodity. Iron ore prices tumbled to a 10-year low this month.

Kumba said last week it was in talks with unions about closing its Thabazimbi mine, the smallest of its three South African operations, putting about 1,200 jobs on the line. (Editing by Tiisetso Motsoeneng)

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