Global miner Anglo American’s South African subsidiary Kumba Iron Ore has announced its annual results for 2022.
In the given period, Kumba Iron Ore’s net profit decreased 46.3 percent to ZAR 19.65 billion ($1.06 billion) compared to ZAR 43.66 billion in the previous financial year, while the company’s total revenue fell by 27.4 percent to ZAR 74.03 billion ($4.01 billion) compared to ZAR 102.09 billion recorded in 2021, mainly as a result of lower prices and sales volumes. In the given period, Kumba recorded an operating profit of ZAR 26.88 billion ($1.45 billion), compared to an operating profit of ZAR 59.50 billion in 2021.
In the given year, the company’s EBITDA fell by 42.2 percent year on year to ZAR 37.3 billion ($2.02 billion), while its EBITDA margin declined to 50 percent in the given year, from 63 percent in 2021.
Meanwhile, in 2022 Kumba’s production volumes fell by 7.8 percent year on year to 37.7 million mt, due to lower production at Kolomela in the first half of the year due to weather and safety-related disruptions, while its export sales volumes were impacted by logistical constraints and decreased to 36.6 million mt from 40.2 million mt in 2021.
The company anticipates production in the range of 35-37 million mt in 2023, 37-39 million mt in 2024 and 39-41 million mt in 2025, while it expects its sales to be in the range of 37-39 million mt in 2023.
The company expects its capital expenditure for 2023 to range between ZAR 11 billion and ZAR 12 billion.