COMPANIES: Kumba Iron Ore sales plummet 35% on Transnet’s meltdown, warns of annual earnings decline

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 84%

Business News News

Business Business Latest News,Business Business Headlines

The costs of state-run logistics company Transnet’s meltdown are mounting. Kumba Iron Ore, a unit of Anglo American, said on Thursday that its sales in the fourth quarter (Q4) of 2022 fell 35% compared with the same period the year before, largely ...

Kumba said in its quarterly production report that Transnet was squarely to blame for the company’s poor Q4 performance as it also warned of an expected decline in full-year earnings.

The company went on to say that “the suboptimal logistics performance … has resulted in low levels of finished stock at Saldanha Port”. “The decrease in earnings for the period is largely attributable to the lower average realised FOB export ore price and lower sales volumes, partly offset by a weaker rand/US$ exchange rate,” the company said.Kumba’s share price rose more than 2% in morning trade on Thursday after the report and trading statement were released, but this likely stemmed from a more than 2% rise in the iron ore price. It also suggests that the traders and analysts were expecting something along these lines.

“Kumba’s premium product quality and geographically diverse customer base contributed to an average realised price of US$113 per wet metric tonne for the year, 13% above the benchmark price of US$100/wmt,” Zikalala said in the statement.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Super Group jumps after flagging half-year earnings riseHeps could rise as much as 35% in the transport logistics and mobility group’s six months to end-December
Source: BDliveSA - 🏆 12. / 63 Read more »