Johannesburg - As Kumba reports interim results that show an improvement to its bottom line, it has also announced that Themba Mkhwanazi will step into the role of CEO from September.
This follows Norman Mbazima’s decision to step down after four years to focus on his role as deputy chairman of Anglo American South Africa, with effect from the end of August. Mbazima will remain a member of Anglo American’s group management committee and will play a key role in the processes to restructure and divest Anglo American’s non-core assets in South Africa, including its interest in Kumba.
In the six months to June, Kumba reported headline earnings per share of R9.41 as headline earnings came in at R3 billion - a 20 percent gain on the first half of last year. This was achieved off revenue of R17.5 billion, which was just more than R2 billion lower than last year.
In a statement issued on Tuesday, the company said capital and cost discipline remain “fundamental to our business model as we move forward in this uncertain and volatile landscape”.
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Kumba adds, despite lower realised prices - as the commodity slump took hold - and lower volumes, its year-on-year financial performance remained quite robust. Operating free cash flow gained 18 percent to R6.7 billion, and Kumba did not deliver a dividend because of “continued market volatility and [an] uncertain outlook.”
Total tonnes mined were 110 M tonnes, 35 percent lower than the first half of 2015, which Kumba says is in line with the new pit configuration at Sishen. Total production declined to 17.8 Mt, which it says was due to the planned reduction in production at Sishen of 11.5 Mt, and a continued strong performance at Kolomela of 5.9 Mt, with the balance made up by the final Thabazimbi volumes. Total sales volumes decreased 22 percent to 20.2 Mt (2015: 26 Mt) on the back of lower export sales of 18.1 Mt (2015: 23.2 Mt), due to the lower production.
IOL