Lower market prices and premia for the company’s products and higher operating expenses were partially offset by a 10.7% weaker Rand.
This saw the EBITDA margin decrease to 50% from the previous year’s 63%.
Accordingly, net profit decreased by 55% to R19.7 billion from R43.7 billion in 2021.
The miner’s revenue fell by 27% to R74.0 billion when compared with R102.1 billion realised, in the previous year.
It attributed the decline in revenue to a 30% lower average realised free-on-board (FOB) iron ore export price of $113 per wet metric tonnes (wmt) and a 9% decrease in total sales volumes of 36.6 million tonnes due to logistics constraints resulting in low levels of finished stock at Saldanha Bay port as well as industrial action impacting shipping throughput.
"Kumba delivered a resilient financial performance in a year characterised by a volatile macro environment, lower iron ore prices, and logistics, cost, and operational challenges,” said company chief executive Mpumi Zikalala.
“Despite market volatility, demand for our high-grade iron ore helped us realise an average price of US$113 per wet metric tonnes (wmt), 13% above benchmark prices…”
She said that they were no level 3-5 environmental incidents or fatalities in 2022, and we are committed to retaining a relentless focus on sustainability and safety.
“Sadly, we suffered a fatality on 13 February 2023 at Kolomela mine,” said Zikalala.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished