Kumba Iron Ore (KIO) H2 2024 earnings summary

Executive summary

• Achieved record safety performance with TRIFR at 0.76, a fatality-free year, and significant improvements in health and wellness metrics.

• Maintained stable production at 35.7 Mt, in line with logistics capacity, despite macroeconomic and logistics headwinds.

• Delivered solid financial results with adjusted EBITDA of ZAR 28.1bn, supported by R4.4bn in cost savings and strong working capital management.

• Advanced UHDMS project to extend Sishen’s life to 2044, with phased investment and expected IRR >30%.

• Distributed R57.3bn in value to stakeholders, including government, employees, communities, and shareholders.

Financial highlights

• Adjusted EBITDA: ZAR 28.1bn, down from ZAR 45.7bn; EBITDA margin at 41% (down from 53%).

• Headline earnings per share: ZAR 38.94; total dividend per share: ZAR 38.67, with a 100% payout ratio.

• Revenue declined 21% to ZAR 68.5bn, reflecting a realized FOB price of $92/t (down from $117/t).

• C1 unit cost improved to $39/t from $41/t, exceeding cost savings targets.

• Attributable free cash flow: ZAR 14.5bn; closing net cash position: ZAR 14.7bn.

Outlook and guidance

• 2025 production and sales guidance: 35–37 Mt, subject to logistics performance.

• C1 cost guidance: $39/t; CapEx guidance: ZAR 9.5–10.5bn.

• UHDMS project on track for phased delivery through 2029, supporting premium product strategy and long-term value.

• Focus on logistics network reform and Ore Export Corridor restoration in collaboration with government and Transnet.