Kumba - Where to from here?

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Kumba - Where to from here?

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Published Date: 2019-07-26 | Source: INCE|Community | Author: Mark Ingham

Kumba - Where to from here?

Interestingly, in 2016, Anglo American changed its mind about disposing of its large stake in Kumba. There must be good reason for that so does that mean a bright future for Kumba in Anglo?

Can we look forward to further years of good returns? Is Kumba core to Anglo's portfolio? After all, Kumba has restructured and Ingham Analytics say that Kumba is certainly a more efficient business today than a few years ago.

However, questions need to be asked. What would happen if premium iron ore dropped to, say, $40/ton or below, which was last seen in 2015? What is the situation with iron ore above $100/ton?

If you are an Anglo America shareholder, you should know about these things too. With the large stake Anglo has in Kumba, there is a knock-on effect, positive and negative. Kumba today accounts for 20% of Anglo American's market capitalisation.

Click here to get the Ingham Analytics Kumba note with its usual insightful analysis.


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