Kumba’s profit plummets

Atlas blast drill rigs drilling blast holes in preparation for blasting in the Western Sishen Pit.Photo Supplied

Atlas blast drill rigs drilling blast holes in preparation for blasting in the Western Sishen Pit.Photo Supplied

Published Feb 9, 2016

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Johannesburg - South Africa's Kumba Iron Ore reported a 66-percent drop in annual profit, in line with its own forecast, as it battled slumping prices for the steel-making ingredient.

Kumba, a unit of Anglo American, said headline earnings per share (EPS) totalled R11.8 in the year to end December compared with R34.3 a year earlier.

Headline EPS is the main gauge of profit in South Africa and strips out certain one-off items.

Iron ore prices fell about 35 percent in 2015 due to a supply glut and growth concerns in top consumer China, forcing Kumba to cut jobs and restructure its main mine, Sishen.

REUTERS

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