Kumba’s ‘royal flush’ results vindicate Anglo’s decision not to sell
Kumba Iron Ore’s strong full-year results and a R15 a share final dividend underpinned Anglo American’s decision not to sell one of its major South African subsidiaries, which is now hunting for growth outside its asset base for the first time in years.In the year to end-December, Kumba, SA’s largest iron ore miner, reported operational and financial improvements that allowed it to pay a total full-year dividend of R30.97 per share, a sizeable source of revenue for Anglo, which owns 69.7% of Kumba.Kumba recorded a profit of R16bn compared with a profit of R11bn the year before. Revenue increased by R6bn to R46bn.Cash holdings were nearly R14bn compared with R10.7bn a year earlier.Kumba CEO Themba Mkhwanazi called the results a "royal flush", with no fatalities at its flagship Sishen mine and Kolomela mine in the Northern Cape and higher output at both operations."It’s been an awesome year," he said, adding, "We are considering broader strategic options and this may include opportuni...
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