Johannesburg - Kumba Iron Ore, Africa’s largest producer of the steelmaking ingredient, cut its interim dividend for the first time since it started trading in 2006 as profit declined 61 percent after prices plummeted.
Earnings excluding one-time items for the six months ended June 30 fell to R2.5 billion ($201 million), or R7.85 a share, from R6.51 billion, or R20.28 a share, from the same period last year, the Pretoria-based unit of Anglo American said in a statement Tuesday.
Iron-ore prices dropped 38 percent in the first half due to a surplus that emerged after the largest miners, including Rio Tinto Group, BHP Billiton and Vale SA fueled a supply glut by investing billions of dollars to boost output and as China’s economy grew at the slowest pace in more than two decades.
Iron-ore prices “are expected to remain under pressure as Australian and Brazilian producers increase supply, and demand growth from China slows,” it said.
Bloomberg