Global miner Anglo American’s South African subsidiary Kumba Iron Ore has announced its annual results for 2021.
In the given period, Kumba Iron Ore’s net profit increased 46.3 percent to ZAR 43.65 billion ($2.84 billion) compared to ZAR 29.84 billion in the previous financial year, while the company’s total revenue rose by 27.4 percent to ZAR 102.09 billion ($6.64 billion) compared to ZAR 80.1 billion recorded in 2020, mainly as a result of higher prices, partially offset by a stronger exchange rate. In the given period, Kumba recorded an operating profit of ZAR 59.50 billion ($3.87 billion), compared to an operating profit of ZAR 40.84 billion in 2020.
In the given year, the company’s EBITDA rose by 40.9 percent year on year to ZAR 64.55 billion ($4.2 billion), while its EBITDA margin rose to 63 percent in the given year, from 57 percent in 2020.
Meanwhile, in 2021 Kumba’s production volumes rose by nine percent year on year to 40.9 million mt, following the recovery from Covid-19-related disruptions in the prior year and improved plant availability and reliability in 2021, while its export sales volumes were impacted by logistical constraints and increased marginally to 40.2 million mt from 40 million mt in 2020.
The company anticipates production and sales in the range of 39-41 million mt in 2022.
The company expects its capital expenditure for 2022 to range between ZAR 10.5 billion and ZAR 11.5 billion.