Kumba Iron Ore has reported an 18% increase in full-year headline earnings, supported by firmer export prices, disciplined capital allocation and improved logistics performance. Headline earnings per share for the year to December rose to R45.97 from R38.94 previously, while revenue increased 2% to R70.08bn. Adjusted EBITDA climbed 14% to R31.92bn, reflecting operational leverage and cost control across its mining portfolio.
The miner declared a final dividend of R15.43 per share, taking the total annual dividend to R32.03. The payout underscores Kumba’s strong cash position, with net cash closing at R14.9bn at year-end. Average realised free-on-board export prices reached $95 per wet metric tonne, approximately 12% above benchmark levels, reinforcing the earnings uplift despite global trade volatility.
Cost containment remained central to performance. The company achieved R673m in savings during the year, bringing cumulative savings since 2024 to R5.1bn. Industry data indicates that iron ore benchmarks remained volatile throughout 2025 amid fluctuating Chinese steel demand and supply-side discipline among major producers, highlighting the importance of premium pricing and operational efficiency.
Operationally, total tonnes mined increased 5% to 208.6 million tonnes, although heavy seasonal rainfall disrupted shovel reliability at Sishen in the first half. Production rose 1% to 36.1 million tonnes, within guidance of 35 to 37 million tonnes. Lower output at Sishen was offset by higher production at Kolomela, reflecting production flexibility within the portfolio.
Logistics performance improved despite ongoing rail constraints. Ore railed to Saldanha Bay increased 6% to 37.6 million tonnes, even as four derailments occurred during the year. The annual 10-day maintenance programme and a 26-day shutdown to refurbish stacker reclaimer 3 were completed within planned timeframes. Kumba attributed the improvements to collaboration under the Ore Corridor Restoration programme and the mutual co-operation agreement between the Ore Users’ Forum and Transnet.
Sales volumes rose 2% to 37 million tonnes, including 0.7 million tonnes of third-party stock. China remains South Africa’s largest iron ore customer, with Chinese steel production continuing to underpin demand despite property sector pressures. China accounted for 56% of Kumba’s export sales, up from 54% previously, while Europe represented 21% and the rest of Asia increased to 23%.
Looking ahead, Kumba maintained its 2026 production guidance at 31 to 33 million tonnes due to the main tie-in of ultra-high-dense-media-separation modules, which will temporarily affect output. Sales are forecast between 35 and 37 million tonnes, supported by finished stock drawdowns during plant shutdowns. Production of 35 to 37 million tonnes annually is expected in 2027 and 2028, subject to logistics stability.