Kumba Iron Ore warned on Thursday that 2022 profit could have slumped by as much as 44% due to weaker iron ore prices and rail logistics problems in South Africa.
Kumba said it expects headline earnings per share (HEPS) – the main profit measure used in South Africa – between R58.29-R64.49 in the full year to December 2022, compared to R103.65 the previous year.
The Anglo American unit, which exports iron ore mainly to China, Japan, South Korea, Europe and the Middle East, produced 37.7 million tonnes of the key steel ingredient in 2022, down from 40.9 million tonnes the previous year.
Sales were 9% lower at 36.6 million tonnes, as rail problems impacted Kumba’s capacity to move iron ore to port.
South Africa’s state-owned freight rail operator Transnet is operating below capacity due to locomotive shortages, poor maintenance, a lack of spare parts and massive copper cable theft, costing
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