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Anglo American: Kumba Iron Ore FY19 Profit Surges - Quick Facts

Anglo American plc (AAUKY.PK,AAL.L) reported Tuesday that Kumba Iron Ore Limited's fiscal 2019 attributable earnings surged to R16.26 billion from R9.62 billion in the prior year. Attributable earnings per share for the year were R50.73, up from R30.08 per share last year.

According to the company, the results reflect the benefits of higher iron ore prices, improved efficiencies and further cost savings ahead of its target, which cushioned the impact of the operational challenges experienced during the period.

Kumba achieved headline earnings for the year of R16.31 billion, up sharply from R9.68 billion in the previous year. Headline earnings per share for the year were R50.88, compared to R30.28 per share last year.

EBITDA margin improved to 52 percent from 42 percent last year.

Total revenue grew 41 percent to R64.29 billion from R45.73 billion a year ago, mainly as a result of stronger prices, higher market premiums and currency gains, which were partially offset by lower sales volumes due to the lower domestic offtake.

Total tonnes mined increased 2 percent to 297.9 Mt, while total production volumes decreased by 2 percent to 42.4 Mt, within the revised guidance of 42 Mt to 43 Mt.

Further, the company's board declared a final cash dividend of R15.99 per share. Combined with the interim dividend of R30.79 per share, this represents a total payout ratio of 92 percent of headline earnings per share for 2019, in excess of the company's 50 percent to 75 percent dividend payout policy.

Looking ahead to full year 2020, the company projects Kumba Iron Ore's production between 41.5 Mt and 42.5 Mt, and sales in a range between 42 Mt and 43 Mt.

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