Kumba final results December 2017
Revenue for the year increased to R46.4 billion (2016: R40.2 billion) and operating profit rose to R21.4 billion (2016: R15.3 billion). Profit for the year attributable to owners of Kumba grew to R12.3 billion (2016: R8.6 billion). Furthermore headline earnings per share came to 3 047 cents per share (2016: 2 730 cents per share).
At its board meeting on 9 February 2018, the directors approved a gross final cash dividend of 1 500 cents per share on the ordinary shares from profits accrued during the period ended 31 December 2017. The dividend has been declared from income reserves.
Full year production guidance for 2018 is between 44 to 45 Mt. Sishen is expected to produce between 30 to 31 Mt of product and mine between 170 to 180 Mt of waste in 2018. Sishen's stripping ratio is expected to exceed 4 in 2018, with the LoM average at ~4. Kolomela's production guidance for 2018 is around 14 Mt and waste of 55 to 57 Mt. Kolomela's stripping ratio is expected to exceed 3.5 in 2018, with the LoM average at ~4.
Total sales volumes of 44 to 45 Mt are expected in 2018. Domestic sales volumes of up to 6.25 Mt are contracted to ArcelorMittal SA in terms of the supply agreement, however, around 3 Mt is the expected volume for 2018. Sishen unit costs are expected to be between R295/tonne and R305/tonne and Kolomela unit costs to be between R240/tonne and R250/tonne in 2018.
Capital expenditure for 2018, including deferred stripping, is expected to be in the range of R3.9 billion to R4.1 billion.
The group's performance remains sensitive to the volatility in iron ore export prices and the Rand/USD exchange rate.
The presentation of the Company's results for the year ended 31 December 2017 will be available on the Company's website www.angloamericankumba.com at 07:05 CAT and the webcast will be available from 11:30 CAT on 13 February 2018.