Kumba Iron Ore record half year numbers

Kumba Iron Ore reported six month numbers to June, one of the first majors in the Anglo stable out with results. And they are nothing short of amazing results. Headline earnings of 9.1 billion ZAR for the first half, on revenue of 24 billion ZAR. And for the record, Kumba paid 5.135 billion ZAR worth of tax. Wow. This company does not sit in the category of companies that need to recover to pre 2008 levels as the minister of finance says. 28.2 ZAR worth of basic earnings per share. And because the company's biggest shareholder is Anglo American (just over 65 percent), expect the parent company to suck out all the free cash. I guess similar examples are Barclays/ABSA and Vodacom/Vodafone. The dividend is 21.7 ZAR per share, the trailing dividend is then over 42 ZAR a share, which as Byron pointed out in their trading update is around an 8 percent yield. Amazing.

The stock is slightly down with the market, perhaps most of the moving north came with the trading update, this was pretty well telegraphed. Byron wrote about this exactly two weeks ago, seems that the numbers were slightly better than the middle of the range: Kumba Iron Ore trading update. The numbers look great. The outlook, well a little fuzzy and I guess that is warranted, this is against the backdrop of far from resolved debt issues in Europe and the US, and the Chinese trying to slow their economy down. (Paris Hilton) "To like 9 percent or something". Still seems hot to me sort of celebrity person.

If you are confused about the whole ongoing Sishen saga (It was easier to follow the plot of The Usual Suspects!), then check out the companies view: Sishen Supply Agreement and Mineral Rights. And then add to it, this part in the release: "The High Court review application in relation to the decision of the Department of Minerals and Resources to grant a prospecting right to Imperial Crown Trading 289 (Pty) Limited and the interdict in respect of the DMR considering ICT's subsequent mining right application is enrolled for determination on 15 August 2011." As clear as mud to me. We wait.