Net debt
The group continued to generate substantial cash from its operations, with R12.6 billion generated during the year. These cash flows were used to pay taxation of R3.2 billion and dividends of R8.2 billion (including dividends of R1.8 billion paid to minority shareholders of Sishen Iron Ore Company (SIOC)). Capital expenditure of R4 billion was incurred which resulted in the group’s net debt position increasing to R3 billion as at 31 December 2009.
| |
Rand million |
2009 |
|
2008 |
|
| |
Long-term interest-bearing |
|
|
|
|
| |
borrowings |
3,859 |
|
977 |
|
| |
Short-term interest-bearing |
|
|
|
|
| |
borrowings |
55 |
|
2,881 |
|
| |
Total |
3,914 |
|
3,858 |
|
| |
Cash and cash equivalents |
(891) |
|
(3,810) |
|
| |
Net debt |
3,023 |
|
48 |
|
| |
Total equity |
8,956 |
|
8,506 |
|
| |
Interest cover (times) |
43 |
|
33 |
|
During the year Kumba secured a R3.2 billion
term loan to refinance the R2.8 billion revolving facility that was maturing in November 2009. To date R3.8 billion of the total R8.6 billion term debt facilities has been drawn down to finance Kumba’s expansion. Kumba was not in breach of any of its covenants during the year. The group had undrawn short- and long-term borrowing facilities at 31 December 2009 of R8.1 billion.
|
