They're not exactly throwing caution to the wind, but Kumba Iron Ore and BHP Group have both paid out higher dividends despite growing uncertainty over the negative impact the coronavirus could have on global growth. Both companies are keeping a close watch on the Covid-19 outbreak as it could result in what BHP terms a 'sentiment discount' in the commodities they produce and result in lower demand for steel, which requires the iron ore they produce.

In Kumba's case, its dividend follows a strong rise in earnings that was supported by a higher iron ore price and a weaker rand. The dividend equates to 92% of its headline earnings, well above its payout policy of 50-75%. BHP has also increased its payout above regular levels. It expects to see lower iron ore prices on average this year but conditions in metallurgical coal to improve.

Glencore is also monitoring the coronavirus after a difficult year as the prices of some of the commodities it produces and trades declined. It has report a loss after impairing some of its assets. It's been a happier time for gold producer Pan African Resources though due to a higher gold price and as its projects come to fruition.

More on all those results in today's newsletter, along with numbers from KAP Industrial and a trading update from Wilson Bayly Holmes-Ovcon, which expects a big improvement in first-half earnings despite more losses in Australia.

Finally, Jaltech Fund Managers, explains the A to Z of Section 12J investing. Follow this link to find out more.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

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