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Extracts from the provisional audited results for the year ended 31 December 2021 and cash dividend declaration
Kumba Iron Ore Limited
Registration number: 2005/015852/06
JSE share code: KIO
ISIN: ZAE000085346
Income tax number: 9586/481/15/3
("Kumba" or "the Company" or "the group")
EXTRACTS FROM THE PROVISIONAL AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021 AND CASH DIVIDEND DECLARATION
KEY FEATURES
Disciplined capital allocation
- Attributable free cash flow of R30.5 billion up by 47%
- ROCE of 147% up from 109%
- Final cash dividend of R30.50 per share, total cash dividend of R103.20 per share
Value-focused growth
- Average realised FOB export price of US$161/tonne*, 18% above benchmark
- Cost savings of R0.9 billion, R4.1 billion saved since 2018
- Strong EBITDA margin of 63% up from 57%
- Closing net cash of R17.5 billion
Strong sustainability performance
- Five years and seven months of fatality-free production
- Zero new cases of occupational diseases
- Over six years without any level 3 - 5 environmental incidents
- R88.9 billion of shared value created
- R36 million of Covid-19 community support
KUMBA CONTINUES TO DELIVER VALUE FOR ALL STAKEHOLDERS
Mpumi Zikalala, Chief Executive of Kumba, said:
"2021 has been an exceptional year of delivery. Our continued focus on prioritising the safety, health and livelihoods
of our colleagues and communities is evident in us achieving more than five years of fatality-free production.
"Despite weather and logistical challenges, production increased by 9% to 40.9Mt. Strong prices combined with our
high-quality products and operational resilience, resulted in a record EBITDA of R64.6 billion, while our disciplined
capital allocation and robust balance sheet have enabled us to declare a final dividend of R30.50 per share.
"We are committed to creating purpose-led value for our stakeholders, and I am privileged to be taking on the
stewardship of this business."
Revenue
for the year ended 31 Dec 31 Dec %
Rand million 2021 2020 change
Revenue 102,092 80,104 27
Earnings per share
for the year ended 31 Dec 31 Dec %
Rand per share 2021 2020 change
Earnings:
Basic 103.67 71.03 46
Diluted 103.37 70.79 46
Headline earnings:
Basic 103.65 71.07 46
Diluted 103.35 70.83 46
Dividend:
Interim 72.70 19.60 271
Final 30.50 41.30 (26)
Salient features and operating statistics
for the year ended 31 Dec 31 Dec %
2021 2020 change
Market information
Closing share price (Rand) 460 623 (26)
Market capitalisation (Rand million) 148,160 200,598 (26)
Net asset value attributable to owners
of Kumba (Rand per share) 138.53 147.31 (6)
Operating statistics ('000 tonnes)
Production* 40,862 37,621 9
Sishen 28,014 25,764 9
Kolomela 12,848 11,857 8
Sales* 40,262 40,308 -
Export sales 40,155 39,950 1
Domestic sales 107 358 (70)
Sishen mine FOR unit cost (Rand per tonne)
Unit cost 555.24 531.60 4
Cash cost 432.01 361.79 19
Kolomela mine FOR unit cost (Rand per tonne)
Unit cost 444.15 447.80 (1)
Cash cost 324.05 304.31 6
* Production and sales volumes, prices and C1 costs are reported in wet metric tonnes. (Kumba product has approximately
1.6% moisture). The comparatives have been restated as Kumba previously reported on a dry basis.
NOTICE OF FINAL CASH DIVIDEND
At its Board meeting on 21 February 2022, the directors approved a gross final cash dividend of 3,050 cents per share
on the ordinary shares from profits accrued during the year ended 31 December 2021. The dividend has been declared from
income reserves.
The dividend will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt from or do
not qualify for a reduced rate of withholding tax. The net dividend payable to shareholders subject to withholding tax
at a rate of 20% amounts to 2,440.00000 cents per share.
The issued share capital at the declaration date is 322,085,974 ordinary shares.
The salient dates are as follows:
Publication of declaration data: Tuesday, 22 February 2022
Last day for trading to qualify and
participate in the final dividend: Tuesday, 15 March 2022
Trading ex-dividend commences: Wednesday, 16 March 2022
Record date: Friday, 18 March 2022
Dividend payment date: Tuesday, 22 March 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 16 March 2022
and Friday, 18 March 2022 both days inclusive.
Any change of address or dividend instructions must be provided by the last day for trading.
EXTRACTS FROM THE PROVISIONAL AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021
This unaudited short-form announcement is the responsibility of the directors of the Company. The information
disclosed is only a summary of the information in the full audited announcement and does not contain full or complete
details. The full annual results announcement should be considered for any investment decisions. The full annual
results announcement for Kumba has been released on SENS and is available for viewing at
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/KIO/KumbaFY21.pdf and is available on the Company's website
www.angloamericankumba.com/investors/financial-results-centre.aspx. The full results announcement is also available
for inspection at the Company's registered office during normal business hours and is available at no charge.
Alternatively, copies of the full announcement may be requested from the Company's investor relations department
(https://www.angloamericankumba.com/investors/shareholder-communication).
The consolidated and Company annual financial statements were audited by PricewaterhouseCoopers Inc. who issued an
unmodified audit opinion on these financial statements. Their audit opinion, together with the accompanying financial
statements, can be viewed on the Company's website www.angloamericankumba.com/investors/financial-results-centre.aspx
which also provides more details on the key audit matter on page 13 of the annual financial statements, being the
environmental rehabilitation and decommissioning provisions.
Any reference to future financial performance included in this announcement has not been audited or reported on
by the Company's external auditors.
Kumba Iron Ore Limited is a member of the Anglo American plc Group
Directors
Non-executive: TP Goodlace (British/South African) (Chairman), MS Bomela, SG French (Irish), MA Jenkins,
NB Langa-Royds, TM Mkhwanazi, SS Ntsaluba, BP Sonjica, MJ Tsele, DG Wanblad
Executive: ND Zikalala (Chief Executive), BA Mazarura (Zimbabwean) (Chief Financial Officer)
Registered office: Centurion Gate Building 2B, 124 Akkerboom Road, Centurion, 0157, South Africa
Transfer Secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196, South Africa, Private Bag X9000, Saxonwold, 2132
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For more information please visit: www.angloamericankumba.com
22 February 2022
Date: 22-02-2022 07:05:00
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