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Kumba reports bumper earnings and declares R40 dividend

Kumba, one of JSE’s few beloved people in the last five years, reported a series of bumper numbers at the end of the fiscal year until 31 December 2020. The group is a weak domestic currency with rising iron ore prices. Kumba results are the day after the parent company. Anglo American, The number reported. Iron ore is no exception, and it is famous for its difficult product prediction. Kumba’s share price fell below R30 per share in January 2016, and in the five years since then, its share price has risen by an astonishing 2,200%. Since the advent of the coronavirus pandemic, the promotion of China’s infrastructure has boosted demand for iron ore, pushing commodities to record highs. Perhaps the most surprising part of Kumba’s performance is paying shareholders a total case dividend of R60, which is almost double the company’s share price five years ago. – Justin Rowe-Roberts

Read again: Earnings skyrocket due to rising iron ore prices, Kumbha revives dividends

Kumbha iron ore SENS statement:

Provisional Audit Results and Cash Dividend Declaration for Fiscal Year Ended December 31, 2020

Main functions

40% strong earnings growth

-21% increase at imputed free cash flow of R20.7 billion

-ROCE increased from 83% to 109%

-Final cash dividend of R41.30 per share, total cash dividend of R60.90 per share

Creating lasting value

-4 years and 7 months of non-death production

-No occupational disease

-5 years or more without level 3-5 environmental accidents

-Covid-19 Community Support R93m, R93 Billion Shared Value Resilience Sustainable Business-Average Realized FOB Export Price $ 115 / Ton

-Keep C1 cost at $ 31 / ton and save Ran 1.3 billion

-Protected EBITDA margin increased from 52% to 57%

-Possibility of extending the life of Sishen by 2039 by the R36bnUHDMS project approved in February 2021

Read again: Lessons for Kumbha?Iron Ore Millionaire Maru Renewable Shift with China’s Transition

Kumba achieves record EBITDA of R45.8 billion

Tenba MukuwanajKumba, Kumba’s Chief Executive Officer, said:

Leveraging product quality, a high average realized price of $ 115 per ton, and cost savings of R $ 1.3 billion, we achieved record-high EBITDA of R45.8 billion and R20.7 billion in free cash flow, and finally Backed the Board’s decision to declare cash Dividend of R41.30 per share.

After 2018 Kumbha The EBITDA margin has improved from 45% to 57%, converting 30% of the additional reserve. With the approval of the R36bn UHDMS project in February 2021, Sishen has the potential to extend its lifespan by 2039.

Kumba can continue to create lasting value for all stakeholders by providing a consistent and focused Tswelelopele strategy, strong balance sheet and capital discipline. “

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Kumba reports bumper earnings and declares R40 dividend

Source link Kumba reports bumper earnings and declares R40 dividend

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