High iron ore prices send Kumba earnings skyrocketing

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Higher average export  prices and a stronger Rand/Dollar exchange rate boost Kumba Iron Ore earnings
Higher average export prices and a stronger Rand/Dollar exchange rate boost Kumba Iron Ore earnings

Anglo American subsidiary Kumba Iron Ore expects to see a jump of 150% in earnings to around R12.6 billion, as the company continues to benefit from higher commodity prices.

Kumba will release its interim financial statements on 27 July 2021.

"The period under review has to date seen higher average export iron ore prices and a stronger rand/dollar exchange rate relative to the comparative six months ended 30 June 2020," the company said.

Iron ore prices have skyrocketed in recent months, driven by a strong global demand and the recovery of economies from the Covid-19 pandemic, particularly China, which is the top importer. 

The iron ore price is currently at $219 per ton, 38% higher than a year ago.

Kumba which operates the Sishen and Kolomela mines in the Northern Cape, listed on the JSE in November 2006, with a market capitalisation of R36 billion. Its current market capitalisation is R199.3 billion.

Kumba's share price gained almost a percent to R622.30 in early afternoon trading.


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