Kumba Iron Ore

I hope you find the next few articles an interesting read.

Kumba weighs up possibility of dividend again

KUMBA Iron Ore has developed wide margins on the sale of its ore, despite a soft price for the steel ingredient, allowing the company to start thinking again about paying dividends and investing in growth.

Kumba, a unit of Anglo American, has been put up for disposal by the diversified miner in a process that will be overseen by Kumba CEO Norman Mbazima, who leaves the iron ore miner at the end of August.

Kumba grew to a net cash position of R548m in the first six months of 2016 after it restructured its flagship Sishen mine and pushed production hard at its smaller Kolomela mine, both of which are in the Northern Cape.

Kumba is busy with a programme of “incremental growth” by building three modular plants at both mines for between R400m and R600m each to add 2.1-million tonnes of saleable ore by processing lower grade stockpiled material. The first was already in production and another two will be commissioned next year, Mbazima said.

A dense media-separation plant that will be retrofitted will add another 3-million tonnes from 2019, and the cost should be in the range of R400m-R600m.

These extra tonnages are important to add to total production that is railed to the Saldanha port on the west coast. Kumba is in talks with Transnet Freight Rail about amending its railing contract after it shrank production at the Sishen mine to return the operation to profit.

Original article was found at www.bdlive.co.za

Kumba sees light at the end of the tunnel

Kumba Iron Ore turned the corner after the world’s fifth largest seaborne iron ore producer said yesterday that it had generated cash and posted higher earnings in a difficult half year to June.

The Anglo American subsidiary’s boosted balance sheet comes despite it grappling with deteriorating commodity prices. Kumba is focused on capital discipline amid uncertainty in the iron ore sector, which has been the worst performing commodity after nickel, sliding 40 percent last year.

The woes in iron ore prompted Anglo American to announce plans to disinvest from Kumba and declare it as a non-core asset. But Kumba has now turned the corner after it reported a net cash position of R548 million in the six months to June from net debt of R4.6 billion at the end of December.

Headline earnings rose 20 percent to R3bn from R2.5bn last year. No interim dividend was declared amid market volatility and the uncertain outlook in iron ore.

Read more of this interesting article by clicking the link.

Kumba Iron Ore appoints new CEO

Listen to and read the interview between SIKI MGABADELI and WARREN DICK

Anglo reshuffles Kumba Iron Ore management ahead of sale

Anglo reshuffles Kumba Iron Ore management ahead of sale

Anglo American (LON:AAL) has appointed Themba Mkhwanazi as the new chief executive of Kumba Iron Ore as the company readies to divest the unit.

Mkhwanazi, who currently leads Anglo’s South African coal unit, takes over on Sept. 1 from Norman Mbazima, who’s stepping down after four years at the job, the company said in a statement.

Mbazima will remain deputy chairman of Anglo’s South African division and will be in charge of overseeing the sale of the company’s non-core assets in the country, which include Kumba (JSE:KIO) itself as well as Anglo’s thermal coal businesses.

The company, however, is still debating whether to sell or spin off its majority stake in Kumba Iron Ore Ltd, Africa’s top producer of the commodity.

A drastic fall of iron ore prices affected Kumba last year forcing it to halve production at its Sishen mine and cut about 31% of its workforce. But in the first six months of the year the division reported earnings of 3 billion rand ($210 million), up 20% when compared to the previous year. Output dropped by 21%t, in line with Sishen’s revised plan.

“This time last year, Kumba was facing a significantly deteriorating price environment which brought about immense change to the industry,” departing CEO Mbazima said in a separate statement.

Since then, Kumba’s net cash position has improved substantially. It was 548 million rand at June 30 compared with net debt of 4.6 billion rand on Dec. 31. However, the miner won’t yet resume paying dividends.

Anglo American’s 70% stake in Kumba Iron Ore is valued at about $2 billion.

I found this article at Mining.com

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