Kumba Iron Ore (KIO) H1 2025 earnings summary

Executive summary

• Delivered consistent production and maintained flat costs despite a leaner workforce and smaller truck fleet in H1 2025, supported by operational excellence and logistics improvements.

• EBITDA rose 3% to ZAR 16 billion, with a 46% margin, despite a 4% revenue drop and lower iron ore prices; attributable free cash flow was ZAR 7.9 billion.

• Interim cash dividend of ZAR 16.60/share declared, totaling ZAR 5.3 billion and representing a 75% payout ratio.

• Achieved more than nine years of fatality-free production at Sishen and over two years at Kolomela, with one fatality reported in H1 2025.

• Sustainability initiatives reduced GHG emissions to 0.42 Mt CO₂e, improved water efficiency, and led to significant community investments.

Financial highlights

• Average realized FOB price was US$91/ton, 7% lower year-over-year, but 8% above benchmark; Platts 62 Iron Ore Index averaged US$101/dmt.

• EBITDA margin increased to 46% from 44% year-over-year due to cost reductions and other income.

• Headline earnings per share flat at R22.26; return on capital employed at 48%.

• Interim dividend of ZAR 16.60/share, with a 12% annualized yield.

• Economic contribution to national fiscus was ZAR 3.1 billion through taxes and royalties.

Outlook and guidance

• Full-year 2025 production and sales guidance maintained at 35–37 Mt, with C1 unit cost target of US$39/ton.

• CapEx guidance for the year remains ZAR 9.5–10.5 billion, with UHDMS project on track and on budget.

• UHDMS project milestones on track, with first production expected in 2026 and completion by H2 2029.

• 2026 production expected to decrease to 31–33 Mt due to UHDMS tie-in, then recover to 35–37 Mt in 2027.