Kumba Iron Ore released interim results on Tuesday, indicating an increase in revenue by 4 per cent to R26.3 billion, compared to last year’s increase of 5 per cent to R25.2 billion.
Headline earnings per share were at R24.13 rand per share from R23.07 per share for the same period in 2012.
“Kumba continues to deliver value to its shareholders, maintaining a strong performance through the first half of the year even in a variable operating environment, with no loss of life,” Kumba Iron Ore CEO Norman Mbazima told CNBC Africa.
Total production output was however in line with last year’s results of 21.6 million tonnes, indicating little growth of the company so far. Export sales were also down 3 per cent to 20.1 million tonnes from last year’s record 13 per cent increase.
“As China reduces infrastructure spend, the iron ore demand will slowly decline and we’ve got unfortunately the big iron ore miners globally ratcheting up production of the next two years in capital expenditure they spent five years ago,” Ashburton Investments head of resources Tony Cadle told CNBC Africa.
Kumba’s little growth is attributed to the sharp fall in iron ore prices. A slow recovery in mining production after strike action at their flagship Sishen mine in the Northern Cape province added to lower production results.
Earlier in October 2012, workers brought production to a standstill when they occupied the Sishen mine for 14 days.
Strong performance from its new Kolomela mine however made up for lost production time in the previous year. Kumba expects Kolomela mine production output for this year to reach 9 million tonnes.
Kumba is a member of Anglo American Plc and contributes up to 40 per cent of the parent company’s profit.
Anglo American results for the first half of the year will be released on Friday.