Themba Mkhwanazi, Chief executive of Kumba, said: 'I am pleased to report that Kumba has delivered on our key objectives set for the first half. Kumba was fatality free and improved significantly on all key safety indicators. Our operational performance was again encouraging, with another step change in productivity from the revised Sishen mine plan and enhanced fleet efficiencies. This resulted in a 23% improvement in production.

'Stronger operational performance and commodity prices resulted in the operating margin improving to 36% from 29% in 1H16, and headline earnings increasing 53%. Cash flow conversion was strong with operating free cash flow up 48% to R8.3 billion resulting in a robust R13.5 billion net cash position.

'This has enabled us to resume dividend payments, with an interim dividend of R5.1 billion declared representing R15.97 per share. While the overall progress has been very encouraging, substantial effort was required simply to offset cost inflation and there is no room for complacency. The team is therefore examining every aspect of the value chain in order to improve Kumba's ability to endure any future price volatility.'

KEY FEATURES

  • Fatality free and reduced lost-time injuries
  • Productivity improvement resulted in production of 21.9 Mt, up 23%
  • Improved financial performance with strong cash generation
  • Revenue of R21.5billion, up 22%
  • Headline earnings of R4.6 billion, R14.42 per share, up 53%
  • Balance sheet strengthened with net cash of R13.5 billion
  • Dividend reinstated - R15.97 per share interim cash dividend

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Kumba Iron Ore Ltd. published this content on 25 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 July 2017 06:29:06 UTC.

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