Wrap Text
Kumba production and sales report, and voluntary trading statement, for the six months ended 30 June 2025
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
("Kumba" or "the Company")
Kumba production and sales report, and voluntary trading statement, for the six months ended 30 June 2025
Kumba's Chief Executive, Mpumi Zikalala, said: "Our strategic focus on safely and sustainably unlocking the full potential of our
premium quality iron ore assets continued to underpin our performance in the first half of the year. Our operational
performance continues to improve and we have made further progress on our ultra-high-dense-media separation (UHDMS)
project to increase the premium proportion of our production and enhance margins.
"Safety is non-negotiable at Kumba and achieving more than nine years of fatality-free production at Sishen and over two
years at Kolomela is testament to our commitment. However, we need to improve our total recordable injury frequency rate of
1.18. This underscores the criticality of our Fatal Risk Management and Contractor Performance Management programmes.
"Total production was flat at 18.2 million tonnes (Mt) and we achieved an increase in sales on the back of improved logistics
stability during the first six months of the year (the period), compared to the same period last year. As a result, we have
maintained our full year 2025 guidance at 35 – 37 Mt, for both production and sales.
"Continued focus on cost optimisation is helping to offset inflation-related costs. We are on track to achieve our C1 unit cost
guidance of US$39/tonne and our capital expenditure guidance of R9.5 – 10.5 billion is unchanged for the full year 2025.
"Iron ore markets were characterised by weak global steel demand, due to trade tariff-related uncertainty, while lower iron
ore supply from Australia and other non-traditional producers was partly offset by an increase in supply from Brazil. Amidst
this challenging market environment, I am pleased that Kumba achieved an average realised free-on-board (FOB) export price
of US$91/wmt, 8% above the average benchmark price of US$84/wmt, reflecting the high quality of our iron ore products, and
the premium that our customers place on such quality."
Production and sales report for the six months ended 30 June 2025
Overview:
-Relentless focus on improving our total recordable injury frequency rate of 1.18.
-Total production decreased marginally by 1% to 18.2Mt (H1 2024: 18.5Mt), reflecting a flexible approach to production as
operations are managed as an integrated complex.
-Sales increased by 3% to 18.7Mt (H1 2024:18.1Mt), due to improved logistics performance relative to the comparative
period.
-Total finished stock was broadly flat at 7.4 Mt (31 December 2024: 7.5Mt), with mine stock levels at 6.4 Mt (31 December
2024: 6.9 Mt), and stock at Saldanha Bay port at 1.0 Mt (31 December 2024: 0.5 Mt).
-Average realised FOB export iron ore price of US$91/wmt (US$93 per dry metric tonne (dmt)) achieved, relative to the
average benchmark price of US$84/wmt (US$86/dmt).
Q2 2025 Q2 2025 H1 2025
Q2 Q1 Q4 Q3 Q2 Q1 vs vs H1 H1 vs
000 tonnes 2025 2025 2024 2024 2024 2024 Q2 2024 Q1 2025 2025 2024 H1 2024
% % %
Iron ore waste 39,817 40,485 27,835 39,414 44,663 43,794 (11) (2) 80,303 88,457 (9)
Iron ore production 9,257 8,990 7,826 9,446 9,184 9,275 1 3 18,247 18,459 (1)
Iron ore sales 9,701 9,007 9,135 9,027 9,556 8,533 2 8 18,708 18,089 3
Kumba waste 39,817 40,485 27,835 39,414 44,663 43,794 (11) (2) 80,303 88,457 (9)
Sishen 33,341 34,631 25,100 34,073 39,265 35,502 (15) (4) 67,973 74,767 (9)
Kolomela 6,476 5,854 2,735 5,341 5,398 8,292 20 11 12,330 13,690 10)
Kumba production
by mine 9,257 8,990 7,826 9,446 9,184 9,275 1 3 18,247 18,459 (1)
Sishen 6,427 5,955 5,687 6,767 6,644 6,563 (3) 8 12,382 13,207 (6)
Kolomela 2,830 3,035 2,139 2,679 2,540 2,712 11 (7) 5,865 5,252 12
Kumba sales 9,701 9,007 9,135 9,027 9,556 8,533 2 8 18,708 18,089 3
Lump 6,418 6,127 6,071 6,191 5,925 5,620 8 5 12,544 11,545 9
Fines 3,283 2,880 3,064 2,836 3,631 2,913 (10) 14 6,164 6,544 (6)
Safety and health
Kumba continued to prioritise the safety, health and wellbeing of our people and our service partners. Notably, Sishen and
Kolomela have achieved fatality-free production for more than nine years and two years, respectively. However, our total
injury frequency rate increased to 1.18 (H1 2024: 0.94) and reducing this is an imperative. Several programmes have been
introduced to enhance risk awareness and learn how to continuously improve safety.
Mining and production
In 2024, the sequential optimisation of our mine operations through the year as part of our business reconfiguration resulted
in a gradual reduction of our workforce, including our service partners. Consequently, total waste mining was lower relative to
the comparative 2024 period, reflecting a 9% decrease in the current period to 80.3Mt (H1 2024: 88.5Mt). Sishen's waste
mining decreased by 9% to 68.0Mt (H1 2024: 74.8Mt) and Kolomela by 10% to 12.3Mt (H1 2024: 13.7Mt). The full year
guidance for 2025 of 166 - 182 Mt has been maintained despite waste mining being impacted by heavy seasonal rainfall in
March and April, which is not expected to recur in the second half of the year.
Total production for the period decreased marginally by 1% to 18.2Mt (H1 2024: 18.5Mt), reflecting the flexible approach to
production with Sishen and Kolomela managed as an integrated complex. Sishen's production decreased by 6% to 12.4Mt (H1
2024:13.2Mt), due to a planned drawdown of high levels of finished stock in the first quarter and maintenance activities in the
second quarter. This was proactively offset by Kolomela's production which increased by 12% to 5.9Mt (H1 2024: 5.3Mt).
Sishen and Kolomela's unit costs, along with Kumba's C1 unit cost, are expected to end the year within the full year 2025
guidance. The unit cost guidance for Sishen is R510 – 540/dmt, Kolomela's is R430 – 460/dmt and Kumba's C1 unit cost target
is US$39/wmt.
Logistics, sales, and marketing
Ore-railed to Saldanha Bay Port increased by 4% to 18.9Mt (H1 2024: 18.1Mt), despite two derailments in the second quarter.
Overall, this demonstrates the progress made through the Ore Corridor Restoration programme and the benefit of the Ore
User's Forum working more closely with the Transnet operational teams to address the maintenance requirements identified
in the independent technical assessment.
Transnet's performance at Saldanha Bay Port reflects better equipment availability relative to the comparative 2024 period.
This resulted in sales increasing by 8% in the second quarter, leading to Kumba's total sales for the half year period increasing
by 3% to 18.7 Mt (H1 2024: 18.1Mt).
Total finished stock was flat at 7.4 Mt (31 December 2024: 7.5 Mt). Mine stock levels reduced to 6.4 Mt (31 December 2024:
6.9 Mt) as a result of improved rail performance and the proactive draw down of stock in the first quarter. Due to improved rail
performance, stock at Saldanha Bay port increased to 1.0 Mt (31 December 2024: 0.5 Mt).
Overall, the collaborative partnership between the OUF and Transnet on the OCR programme is starting to deliver positive
outcomes in terms of logistics performance. The finalisation of the Mutual Cooperation Agreement further strengthens the
partnership and will enable urgent maintenance work to be executed more timeously, efficiently and effectively.
Kumba's iron (Fe) content averaged 64.1% (H1 2024: 64.1%) and the average lump to fine ratio increased to 67:33 (H1 2024:
64:36) for the first half of 2025. We achieved an average realised FOB export price of US$91/wmt (equivalent to US$93/dmt),
underpinned by our high-quality iron ore products which provided an 8% premium benefit relative to the 62% Fe FOB
benchmark export price of US$84/wmt (equivalent to US$86/dmt).
Full year 2025 guidance
Subject to Transnet's logistics performance, Kumba's guidance is unchanged. The full year guidance is as follows:
Guidance FY2025
Total sales (Mt) 35 - 37
Total production (Mt) 35 - 37
Sishen ~26
Kolomela ~10
Waste stripping (Mt) 166 - 182
Sishen 140 - 150
Kolomela 26 - 32
On-mine unit cost (R/tonne)
Sishen 510 - 540
Kolomela 430 -460
C1 unit costs (US$/tonne) ~39
Capital expenditure (Rbn) 9.5 - 10.5
Voluntary trading statement for the six months ended 30 June 2025
Kumba is finalising its financial results for the six months ended 30 June 2025 (the period) and further information will be
provided in the Company's results for the period, which will be released on the Stock Exchange News Service of the JSE
(SENS) on 29 July 2025.
In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are advised that headline
earnings for the period are likely to be between R6,841 million and R7,341 million, and vary by between 4% and 3% from
the previous six months ended 30 June 2024 (comparative period). Headline earnings per share (HEPS) are likely to be
between R21.33 and R22.89, and vary by between 4% and 3% from the comparative period. Reported headline earnings
and HEPS for the comparative period (released on SENS on 23 July 2024) were R7,148 million and R22.27, respectively.
Basic earnings for the period are expected to be between R6,813 million and R7,311 million, reflecting a variance of
between 5% and 2% from the comparative period. Basic earnings per share (EPS) are expected to be between R21.24 and
R22.79, and vary by between 5% and 2% from the comparative. Reported basic earnings and EPS for the comparative
period were R7,147 million and R22.27, respectively.
The earnings for the period is largely attributable to a lower average realised FOB export iron ore price and a strong
currency, partly offset by the Company's cost optimisation initiatives.
This announcement contains forward-looking statements which are based on the Company's current beliefs and
expectations about future events. The financial information contained in this announcement, has not been reviewed and
reported on by the Company's external auditors.
Volumes excluding waste stripping, and on-mine unit costs, are reported as wmt. Product is shipped with ~1.5% moisture
and the foreign exchange rate of ~R18.60/US$ was used to calculate the full year 2025 cost guidance.
Production and sales volumes referred to for the period ended 30 June 2025 are 100% of Sishen Iron Ore Company
Proprietary Limited ("SIOC"), and attributable to shareholders of Kumba as well as to the non-controlling interests in SIOC.
Johannesburg
24 July 2025
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Company Secretary
Fazila Patel
fazila.patel@angloamerican.com
Tel: +27 12 683 7060
Mobile: +27 83 297 2293
Investors Media
Penny Himlok Melangini Pillay
penny.himlok@angloamerican.com melangini.pillay@angloamerican.com
Tel: +27 12 622 8324 Tel: +27 12 638 4420
Mobile: +27 82 781 1888 Mobile: +27 76 959 2019
Notes to editors:
Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality iron
ore to the global steel industry. Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the Northern
Cape Province. Kumba exports iron ore to customers around the globe including in China, Japan, South Korea and a
number of countries in Europe and the Middle East.
www.angloamericankumba.com
Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore
and crop nutrients – future-enabling products that are essential for decarbonising the global economy, improving living
standards, and food security. Our portfolio of world-class operations and outstanding resource endowments offers value-
accretive growth potential across all three businesses, positioning us to deliver into structurally attractive major demand
growth trends.
Our integrated approach to sustainability and innovation drives our decision-making across the value chain, from how we
discover new resources to how we mine, process, move and market our products to our customers – safely, efficiently and
responsibly. Our Sustainable Mining Plan commits us to a series of stretching goals over different time horizons to ensure
we contribute to a healthy environment, create thriving communities and build trust as a corporate leader. We work
together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources
for our shareholders, for the benefit of the communities and countries in which we operate, and for society as a whole.
Anglo American is re-imagining mining to improve people's lives.
Anglo American is currently implementing a number of major structural changes to unlock the inherent value in its
portfolio and thereby accelerate delivery of its strategic priorities of Operational excellence, Portfolio simplification, and
Growth. This portfolio transformation is focusing Anglo American on its world-class resource asset base in copper,
premium iron ore and crop nutrients – with the sale of our steelmaking coal and nickel businesses agreed, the demerger of
our PGMs business (Anglo American Platinum) completed, and the separation of our iconic diamond business (De Beers)
to follow.
www.angloamerican.com
Forward-looking statements
This announcement includes forward-looking statements. All statements other than statements of historical facts included
in this announcement, including, without limitation, those regarding Kumba's financial position, business, acquisition and
divestment strategy, dividend policy, plans and objectives of management for future operations (including development
plans and objectives relating to Kumba's products, production forecasts and Ore Reserves and Mineral Resource
estimates), are forward-looking statements. By their nature, such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of
Kumba, or industry results, to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Kumba's present and future business
strategies and the environment in which Kumba will operate in the future. Important factors that could cause Kumba's
actual results, performance or achievements to differ materially from those in the forward-looking statements include,
among others, levels of actual production during any period, levels of global demand and commodity market prices,
mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the effects of
global pandemics and outbreaks of infectious diseases, the availability of mining and processing equipment, the ability to
produce and transport products profitably, the availability of transport infrastructure, the impact of foreign currency
exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political
uncertainty and economic conditions, the actions of competitors, activities by governmental authorities such as permitting
and changes in taxation or safety, health, environmental or other types of regulation, conflicts over land and resource
ownership rights and such other risk factors identified in Kumba's most recent Integrated Report. Forward-looking
statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on
forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Kumba expressly disclaims any
obligation or undertaking (except as required by applicable law, the Takeover Regulation Panel, the Listings Requirements
of the securities exchange of the JSE Limited in South Africa, the Financial Sector Conduct Authority and any other
applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to
reflect any change in Kumba's expectations with regard thereto or any change in events, conditions or circumstances on
which any such statement is based. Nothing in this announcement should be interpreted to mean that future earnings per
share of Kumba will necessarily match or exceed its historical published earnings per share.
Certain statistical and other information about Kumba included in this announcement is sourced from publicly available
third-party sources. As such, it has not been independently verified and presents the views of those third parties, though
these may not necessarily correspond to the views held by Kumba and Kumba expressly disclaims any responsibility for, or
liability in respect of, such third-party information.
Date: 24-07-2025 08:00:00
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