Kumba Iron Ore (KIO) H1 2026 earnings summary

Executive summary

• Delivered resilient operational and financial performance despite macroeconomic, logistics, and weather-related headwinds, maintaining a fatality-free record at Sishen for over 10 years and Kolomela for over 3 years.

• Advanced the UHDMS project to 45% completion, with major procurement finalized and commissioning of first modules underway.

• Updated sustainability strategy, progressing renewable energy initiatives at Kolomela and Sishen, including a 63 MW solar PV plant at Sishen.

• Women now represent 32% of the workforce.

Financial highlights

• Revenue declined 11% year-over-year to R30.9 billion, with EBITDA down 32% to R10.9 billion and margin at 35%.

• Interim dividend of R7.90 per share declared, totaling R2.5 billion and representing a 60% payout ratio.

• Net cash position at R12.1 billion at period end, despite higher capex and lower free cash flow.

• Headline earnings per share at R13.24; basic EPS down 42% to R12.95.

• Capex increased 36% year-over-year to R5.2 billion, mainly for UHDMS and mining fleet recapitalisation.

Outlook and guidance

• Full-year production guidance: 31–33 Mt; sales: 35–37 Mt; Sishen: ~22 Mt, Kolomela: ~10 Mt.

• C1 unit cost guidance at ~US$45/wmt; Sishen R530–560/dmt, Kolomela R430–460/dmt.

• Capex guidance for 2026: R13.2–14.2 billion, with expansion capex to decrease after 2026.

• Focus on operational efficiency, cost control, and cash flow enhancement.

• Full Potential programme targets at least a 10% cost reduction over the medium term.