Mining firm Anglo American said on Tuesday its 69.7%-owned Kumba Iron Ore delivered solid underlying earnings in the first half of 2021 thanks to higher iron ore prices and a focus on cost containment.
Kumba reported underlying earnings of ZAR44.4 billion (£2.16 billion) for the six months ended June 30, with the unit highlighting that its ability to maximize returns continued to enable it to achieve a premium "well above stabilization".
Attributable free cash flow increased to ZAR31.5 billion (£1.53 billion), leading the company to declare an interim dividend of ZAR72.70 (£3.53) per share, representing a payout ratio of 100% of core earnings.
Production volumes rose 12% to 20.4 million tons, exceeding production in the first half of the last two years, and sales increased 3% to 19.5 million tons
Kumba CEO Themba Mkhwanazi said: "Kumba's first half performance reflects operational resilience and benefits our value on volume realization strategy, maximizing the value of our products and positioning our business for the future for the benefit of all our stakeholders."
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