Kumba results lift stock 6% but five-year losses leave investors 43% in the red
Kumba Iron Ore's share price collapse has wiped out nearly half of investors' money over the past five years as it reported flat headline earnings per share on Tuesday.
A R10, 000 investment in 2020 would now be worth just R5, 387 – unless you sold at its 2021 peak, where the profit would have been roughly the same as selling today. This is thanks to a 44% climb in stock over the past year, while the five-year view shows a decline of 43%.
Despite the increase in value, it's a far cry from the JSE's All Share figures, which has shown a return of 74% over the same five-year period.
Kumba's figures, however, are purely based on share price movements and do not include dividends, such as the interim cash dividend of R16.60 declared on Tuesday morning as the miner published its interim results for the period to June.
Although this payment, out of attributable free cash flow of R7.9 billion, comes to a payout for shareholders in total of R5.3 billion, it is lower than last year's R18.77 paid out per share.
The iron ore miner's share price started falling from around last January.
Kumba, which owns both Sishen and Kolomela mines, is one of the operations Anglo American said last May that would continue to form part of the group.
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