Feb 2 (Reuters) - 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
58.29-64.49 rand ($3.41-$3.77) in the full year to December
2022, compared to 103.65 rand 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 iron ore and coal exporters billions of rand in
potential revenue.
Transnet's operations were also disrupted by a 12-day strike
last October as its workers pushed for a wage increase.
The impact of Transnet's constraints on Kumba's exports was
particularly telling in the fourth quarter of 2022, when sales
fell 35% to 6.9 million tonnes compared to the same period of
2021, and 31% from the previous quarter.
Kumba will release its 2022 financial results on Feb.21.
($1 = 17.0908 rand)
(Reporting by Nelson Banya;Editing by Elaine Hardcastle)
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