Anglo American's Kumba Iron Ore interim EBITDA bolstered by higher realised iron ore prices

Mining firm Anglo American said on Tuesday that Kumba Iron Ore, in which it holds a 69.7% stake, had delivered solid underlying earnings in the first half of 2021 thanks to higher realised iron ore prices and a focus on cost containment.

Kumba posted underlying earnings of ZAR 44.4bn (£2.16bn) for the six months ended 30 June, with the unit highlighting that its ability to maximise returns continued to ensure that it achieved a premium "well above benchmark".

Attributable free cashflow improved to ZAR 31.5bn (£1.53bn), leading the company to declare an interim dividend of ZAR 72.70 (£3.53) per share, which represents a payout ratio of 100% of headline earnings.

Production volumes increased by 12% to 20.4m tonnes, surpassing production in the first half of the past two years, while increasing sales by 3% to 19.5m tonnes

Kumba chief executive Themba Mkhwanazi said: "Kumba’s first-half performance reflects operational resilience and benefit our value over volume realisation strategy.

"We are maximising the value of our products and positioning our business for the future, to the benefit of all our stakeholders."

As of 0850 BST, Anglo American shares were down 1.13% at 3,024.0p.