Kumba Iron Ore Limited (KIO) - Financial and Strategic SWOT Analysis Review by GlobalData

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									         Kumba Iron Ore Limited (KIO) - Financial and Strategic SWOT Analysis
                                        Review
        Reference Code: GDMM24323FSA                                                                                          Publication Date: MAY 2012

          Centurion Gate, 124 Akkerboom Street               Phone             +27 12 6837000                   Revenue          48,553 (million ZAR)
          Centurion                                          Fax                                                Net Profit       17,042 (million ZAR)
          0175                                               Website           www..kumba.co.za.com             Employees        6,303
                                                                               KIO     [Johannesburg
          South Africa                                       Exchange                                           Industry         Metals and Mining
                                                                               Stock Exchange]

       Company Overview
       Kumba Iron Ore Limited (Kumba) is one of the largest producers of seaborne iron ore in the world. It produces iron ore from three
       mines, namely, Sishen mine, Kolomela and Thabazimbi mine. The company along with the subsidiary Sishen Iron Ore Company
       (SIOC) is specialized in producing and selling the iron ore in South Africa and its overseas markets such as Asia, the Middle-East
       and European countries. It is a member of the Anglo American plc group. Kumba is headquartered in Centurion city, South Africa.


       The company started operation of its newly developed Kolomela mine in december 2011.
       Key Executives                                                                SWOT Analysis
                      Name                                 Title                      Kumba Iron Ore Limited, SWOT Analysis
         Chris Griffith                      Chief Executive Officer                  Strengths                              Weaknesses
         Gert Gouws                          Director
                                                                                      Significant Property Portfolio         Limited Liquidity
         Peter Matlare                       Director
                                                                                      Supporting Logistics
         Zarina Bassa                        Director
                                                                                      Infrastructure Base
         Dolly Mokgatle                      Director
        Source: Annual Report, Company Website, Primary and Secondary
        Research, GlobalData                                                          Opportunities                          Threats

       Share Data                                                                     Strategic Expansions                   Nationalization of South African
         Kumba Iron Ore Limited                                                                                              Mining Industry
                                                                                      Rising Iron Ore Demand
        Share Price (ZAR) as on 10-May-                                  527                                                 Operational Risks
        2012
        EPS (ZAR)                                                      52.97
                                                                                     Source: Annual Report, Company Website, Primary and Secondary Research,
        Market Cap (million ZAR)                                    169,158          GlobalData

        Enterprise Value (million ZAR)                              172,366
        Shares Outstanding (million)                                     321
       Source: Annual Report, Company Website, Primary and Secondary
       Research, GlobalData

       Financial Performance                                                         Recent Developments
                                                                                      Apr 19, 2012         Atlas Copco Wins Mining Order In South Africa
                                                                                      Feb 29, 2012         Kumba Appoints Frikkie Kotzee As CFO
                                                                                      Feb 09, 2012         Kumba Reports Revenue Of ZAR45.8 Billion In
                                                                                                           2011
                                                                                      Jan 26, 2012         Kumba Provides Production Update
                                                                                     Source: Annual Report, Company Website, Primary and Secondary Research,
                                                                                     GlobalData




       Source: Annual Report, Company Website, Primary and Secondary
       Research, GlobalData




Kumba Iron Ore Limited (KIO) - Financial and Strategic SWOT                                                                    Reference Code: GDMM24323FSA
Analysis Review
Source : www.globalcompanyintelligence.com                                                                                                                     Page 1
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form
       Table of Contents
       Table of Contents ............................................................................................................................................................................... 2
          List of Tables .................................................................................................................................................................................. 4
          List of Figures ................................................................................................................................................................................. 4
       Section 1 - About the Company.......................................................................................................................................................... 5
       Kumba Iron Ore Limited - Key Facts .................................................................................................................................................. 5
       Kumba Iron Ore Limited - Key Employees ......................................................................................................................................... 6
       Kumba Iron Ore Limited - Key Employee Biographies ....................................................................................................................... 7
       Kumba Iron Ore Limited - Major Products and Services .................................................................................................................... 8
       Kumba Iron Ore Limited - History ....................................................................................................................................................... 9
       Kumba Iron Ore Limited - Company Statement................................................................................................................................ 10
       Kumba Iron Ore Limited - Locations And Subsidiaries ..................................................................................................................... 13
          Head Office ................................................................................................................................................................................... 13
          Other Locations & Subsidiaries ..................................................................................................................................................... 13
       Section 2 – Company Analysis ......................................................................................................................................................... 14
       Kumba Iron Ore Limited - Business Description ............................................................................................................................... 14
       Kumba Iron Ore Limited - Corporate Strategy .................................................................................................................................. 15
       Kumba Iron Ore Limited - SWOT Analysis ....................................................................................................................................... 16
          SWOT Analysis - Overview........................................................................................................................................................... 16
          Kumba Iron Ore Limited - Strengths ............................................................................................................................................. 16
             Strength - Significant Property Portfolio .................................................................................................................................... 16
             Strength - Supporting Logistics Infrastructure Base .................................................................................................................. 16
             Strength - Improved Operational Performance.......................................................................................................................... 16
          Kumba Iron Ore Limited - Weaknesses ........................................................................................................................................ 16
             Weakness - Limited Liquidity..................................................................................................................................................... 16
          Kumba Iron Ore Limited - Opportunities ....................................................................................................................................... 17
             Opportunity - Strategic Expansions ........................................................................................................................................... 17
             Opportunity - Rising Iron Ore Demand ...................................................................................................................................... 17
          Kumba Iron Ore Limited - Threats ................................................................................................................................................ 17
             Threat - Nationalization of South African Mining Industry.......................................................................................................... 17
             Threat - Operational Risks ........................................................................................................................................................ 17
             Threat - Stringent Governmental Regulations ........................................................................................................................... 17
       Kumba Iron Ore Limited - Key Competitors ...................................................................................................................................... 19
       Section 3 – Company Financial Ratios ............................................................................................................................................. 20
       Financial Ratios - Capital Market Ratios........................................................................................................................................... 20
       Financial Ratios - Annual Ratios ...................................................................................................................................................... 20
       Performance Chart ........................................................................................................................................................................... 22
       Financial Performance...................................................................................................................................................................... 22
       Financial Ratios - Interim Ratios....................................................................................................................................................... 23
       Financial Ratios - Ratio Charts ......................................................................................................................................................... 24
       Section 4 – Company’s Recent Developments ................................................................................................................................ 25
          Kumba Iron Ore Limited, Recent Developments........................................................................................................................... 25
             Apr 19, 2012: Atlas Copco Wins Mining Order In South Africa ................................................................................................. 25
             Feb 29, 2012: Kumba Appoints Frikkie Kotzee As CFO............................................................................................................ 25
             Feb 09, 2012: Kumba Reports Revenue Of ZAR45.8 Billion In 2011........................................................................................ 25
             Jan 26, 2012: Kumba Provides Production Update................................................................................................................... 27


Kumba Iron Ore Limited (KIO) - Financial and Strategic SWOT                                                                                                   Reference Code: GDMM24323FSA
Analysis Review
Source : www.globalcompanyintelligence.com                                                                                                                                                                Page 2
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form
             Dec 15, 2011: Anglo American's Unit Kumba Iron Ore Wins Sishen Mine Rights Case ........................................................... 28
             Jun 22, 2011: Kumba Appoints Litha Nyhonyha As Non-Executive Director............................................................................. 28
             Apr 21, 2011: Kumba Releases Production And Sales Report For Q1 2011 ............................................................................ 28
             Apr 08, 2011: Kumba Opens Iron Ore Sampling Plant At Saldanha Iron Ore Terminal ............................................................ 29
       Section 5 – Appendix ....................................................................................................................................................................... 30
          Methodology ................................................................................................................................................................................. 30
          Ratio Definitions .........................................................................................................
								
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