Kumba cuts its dividend 30%

JOHANNESBURG - Kumba Iron Ore cut its interim cash dividend by almost 30 percent after declaring a cash dividend of R19.60 per share, or R6.3 billion, representing a payout ratio of 75 percent of headline earnings.

Kumba, said that the company's capital allocation framework remained unchanged and was premised on a business that generated strong cash flows after sustaining capital which is then allocated firstly to a base dividend targeting 50 to 75 percent of headline earnings.

The company also said that balance sheet flexibility remained key especially in this uncertain environment and its position on liquidity was unchanged.