Kumba warns of earnings drop as export sales suffer due in part to derailments
Kumba Iron Ore has warned of a drop of more than one-third in interim earnings because of reduced export sales due to derailments, a stronger rand and lower iron ore prices compared to a year earlier. Kumba said its headline earnings for the six months to end-June would fall up to 37% and basic earnings 38% compared to the same period a year earlier when it reports its financial results on July 24.
SBG analyst Tim Clark said that he expected Kumba to declare an interim dividend of R12.45 a share. Earlier in 2018, Kumba CEO Themba Mkhwanazi referred to an unprecedented number of derailments on the line linking the Northern Cape mines of SA’s largest iron ore producer to the port at Saldanha. State rail operator Transnet has said there had been four derailments in 2018, lasting from three to six days. Two of the derailments involved full trains and two empty wagons. “We have stepped up additional maintenance activities and daily and weekly checks on infrastructure,” Transnet sai...