Kumba Iron Ore (KIO) H2 2025 earnings summary

Executive summary

• Achieved nine consecutive fatality-free years at Sishen and three years at Kolomela, with a recordable injury frequency rate of 0.95, well below industry average, and maintained strong safety and wellbeing initiatives.

• Delivered R58 billion in stakeholder value in 2025, including R10.3 billion in dividends, R3.3 billion to empowerment owners, and ongoing social investment and local procurement.

• Maintained water-positive operations, supplied 16.5 billion liters to communities, achieved IRMA 75 standard, and reduced freshwater withdrawals.

• Created over 800 jobs outside mines in 2025, supporting a cumulative 42,000 jobs since 2018.

• Delivered resilient operational and financial performance amid macroeconomic uncertainty, focusing on operational excellence and disciplined capital allocation.

Financial highlights

• Adjusted EBITDA increased by 14% year-over-year to R31.9 billion, with a margin of 46%, and EBITDA margin improved by 5 percentage points.

• Headline earnings per share rose 18% to R45.97; total dividend per share was R32.03, with a 70% payout ratio and a 9% yield.

• Return on capital employed improved by five percentage points to 46%.

• Attributable free cash flow was R12.0 billion; closing net cash position at R14.9 billion.

• Cash conversion from EBITDA at 102%, indicating strong earnings quality.

Outlook and guidance

• 2026 production guidance: 31–33 million tonnes (22 Mt Sishen, 10 Mt Kolomela); sales guidance: 35–37 million tonnes, supported by finished stock.

• C1 unit cost guidance at $45/tonne, unchanged in real terms; increase due to exchange rate effect.

• CapEx guidance for 2026: R13.2–14.2 billion, with UHDMS project as key driver.

• Medium-term focus on sustaining operational excellence, cost efficiency, logistics stability, and value-accretive life extension options.

• Continued focus on unlocking value through UHDMS investment and disciplined capital allocation.