Kumba Iron Ore Limited · JSE:KIO
Kumba Iron Ore — H1 2026 Earnings Presentation
46 slides from Kumba Iron Ore's earnings presentation, Jul 28, 2026
Slide 1: Kumba Iron Ore 2026 Interim Results
Kumba Iron Ore 2026 Interim Results 28 July 2026
Slide 2: Cautionary statement
Cautionary statement Disclaimer This document has been prepared by Kumba Iron Ore Limited (“Kumba” and Company") and comprises written materials/slides regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or for a presentatio
Slide 3: Agenda
Agenda Business overview & operational performance Mpumi Zikalala, Chief Executive Financial performance Xolani Mbambo, Chief Financial Officer Looking ahead Mpumi Zikalala, Chief Executive 3
Slide 4: Focused delivery amid macro headwinds
Focused delivery amid macro headwinds Track record of strong safety performance Unlock full value Secured key mining input supplies & business continuity of the core Increased direct sales to higher growth markets Logistics improved stability levels maintained Position for a UHDMS first modules bein
Slide 5: Strong safety performance across all metrics
Strong safety performance across all metrics TRIFR Lost time injuries 0.98 0.76 0.95 0.80 17 11 17 6 2023¹ 2024 2025 H1 2026 2023¹ 2024 2025 H1 2026 Fatality free for 10 years at Sishen & 3 years at Kolomela Strong safety leadership in the field & collaborative contractor engagement 10 years of no s
Slide 6: Challenging operating environment
Challenging operating environment Continued delivery Production 17.7Mt 3% of stakeholder value Dividend declared1 Sales 18.6Mt 1% R2.5bn EBITDA R10.9bn 32% Enduring shared value R24.0bn ROCE 26% 22pp 1. Interim dividend for shareholders declared excluding R0.8bn for empowerment owners 6
Slide 7: Meaningful contributions to our world & society
Meaningful contributions to our world & society Enduring value of R24.0bn Trusted Corporate leader Women represented 32%1 of workforce & 37%1 of management Government R0.8bn 83% of employees are from the Northern Cape Level 4 B-BBEE rating maintained Shareholders R3.4bn Healthy environment Investmen
Slide 8: Operational performance
Operational performance 8
Slide 9: Disciplined execution in dynamic operating conditions
Disciplined execution in dynamic operating conditions Finished stock Waste mining 83.5Mt 4% 7.0Mt Port, 31% 17.7Mt H1 Production 3% 2026 Mine, 69% Ore railed to port 18.6Mt 2% 7.5Mt Port, 24% FY 2025 Sales 18.6Mt 1% Mine, 76% 9
Slide 10: H1 challenges mitigated by disciplined execution
H1 challenges mitigated by disciplined execution Waste mining driven Stable production underpinned Building operational by ramp-up at Kolomela by Sishen's solid performance momentum into H2 Waste mining (Mt) Production (Mt) • Q2 improvement to support H2 waste, & production as guided +4% -3% • Addit
Slide 11: Sales resilient despite logistics maintenance
Sales resilient despite logistics maintenance Steady rail performance Consistent sales Advancing ore corridor post shut volumes achieved restoration programme Ore railed to port (Mt) Sales (Mt) • Proactive 10-day logistics -2% -1% maintenance shut in May – 101km of tracks replaced 18.7 18.6 18.9 18.
Slide 12: Financial performance
Financial performance 12
Slide 13: Quality remains ahead of peers, sustaining price uplift
Quality remains ahead of peers, sustaining price uplift Fastmarkets 62 Fe Index Lump premium & port stocks2 Mill margins & premia Geographic share $/t of sales (%) Covid restrictions; China stimulus : 45 21 15 14 14 121 17% 25% 160 Steel output cut ~RMB4tn (~3% of GDP) 40 160 16% 150 35 20% 140 15%
Slide 14: Financial performance reflects stronger rand
Financial performance reflects stronger rand FX (rand/US$) Revenue (Rbn) Average realised price US$90/t 1% -11% -11% 35% 18.39 16.41 34.5 30.9 EBITDA margin 11pp H1 2025 H1 2026 H1 2025 H1 2026 C1 unit costs (rand/US$) +18% HEPS R13.24/share 4.7 1.9 0.3 38.8 45.7 R7.90/share H1 2025 FX CPI¹ Internal
Slide 15: EBITDA shaped by external headwinds
EBITDA shaped by external headwinds Sales volumes C1 costs Average FOB price Average R/US CPI Freight rates H1 2026 18.6Mt US$46/t US$90/t R16.41 3.4% US$22/t H1 2025 18.7Mt US$39/t US$91/t R18.39 3.3% US$15/t EBITDA Rm (3 109) 15 991 (863) (942) (27) (765) 326 (263) 32 510 (749) 722 11 148 10 890 H
Slide 16: Costs within guidance despite inflationary pressures
Costs within guidance despite inflationary pressures Sishen unit costs (R/t) 33 (73) 36 (15) 11 593 593 557 549 +6% -7% Kolomela unit costs (R/t) 58 (64) 66 13 22 424 329 351 +7% +21% H1 2025 CPI & Total after external Operational WIP & Production Other H1 2026 cost escalation¹ factors activity defe
Slide 17: Investing for sustainable value delivery
Investing for sustainable value delivery Capex1 Rbn Deferred stripping Baseline SIB HME recapitalisation Expansion 13.2-14.2 13.7 Expansion: 3.0-3.2 UHDMS phased execution Total spend R11.2bn, peaks in 2026 2.5-2.7 SIB: Continued focus on capex optimisation Medium-term average: 4.1-4.3 4.2 5.2 HME r
Slide 18: Committed to enhancing cashflow performance
Committed to enhancing cashflow performance Rbn Cash generated from operations1 9.9 10.9 (1.8) 0.8 (4.9) (6.5) (1.3) 14.9 (3.4) 900 000 000.0 12.1 12.1 (2.5) (2.5) (0.8) 8.7 8.7 2025 EBITDA Working Other Sustaining Final 2025 Discretionary H1 2026 Interim Pro-forma net cash capital capex dividends c
Slide 19: Looking ahead
Looking ahead 19
Slide 20: Full potential programme
Full potential programme Reducing costs through operational efficiency, focusing on cash flow Mine & Supply chain & Overheads SIB plant productivity contractor management & support costs capex Higher mining operational Buy better, Reduction in Maximise returns from efficiency & yield spend better no
Slide 21: UHDMS tie-in preparation progressing to plan
UHDMS tie-in preparation progressing to plan Project milestones achieved 1 Conversion to 6 Coarse UHDMS Modules Project scope +5.4 Mtpa Premium Lump 3 Conversion to 5 Fines UHDMS Modules Plant Discard 2 +5.1 Mtpa Premium Fines 3 Handling Spaghetti 45% overall project progress Junction Bulk Material
Slide 22: UHDMS - overview of the coarse modules conversion
UHDMS - overview of the coarse modules conversion Coarse UHDMS Process Plant Conversion - Before 22
Slide 23: UHDMS - overview of the coarse modules conversion
UHDMS - overview of the coarse modules conversion Coarse UHDMS Process Plant Conversion - Current 23
Slide 24: UHDMS - overview of the coarse modules conversion
UHDMS - overview of the coarse modules conversion Coarse UHDMS Process Plant Conversion - End State 24
Slide 25: UHDMS - coarse module
UHDMS - coarse module Coarse Module with Drum - Before Coarse Module with Cyclone - After 25
Slide 26: UHDMS - bulks material handling system
UHDMS - bulks material handling system Spaghetti Junction - Current 26
Slide 27: UHDMS tie-in preparation progressing to plan
UHDMS tie-in preparation progressing to plan Project milestones achieved Conversion to 6 Coarse UHDMS Modules 1 +5.4 Mtpa Premium Lump Project scope 3 Conversion to 5 Fines UHDMS Modules Plant Discard 2 +5.1 Mtpa Premium Fines 3 Handling Spaghetti 45% overall project progress Junction Bulk Material
Slide 28: Policy tailwinds & steel output growth favour quality
Policy tailwinds & steel output growth favour quality Ex-China growing steelmaking hub Decarbonisation supports lump demand Long-term outlook positive Crude steel production forecast, 2025-2050 (Mt) CBAM levy¹ on pellets ~$1.3/t in 2026, rising to 65-62 spread, % CFR China (real 2026$) ~$10.3/t by 2
Slide 29: 2026 full year guidance
2026 full year guidance Production (Mt) Sales (Mt) Unit cost & capex Supplemented by finished stock +12-13% C1 cash unit cost1 guidance 4 ~US$45/wmt Sishen unit cost R530 – 560/dmt Kolomela unit cost R430 – 460/dmt Capital expenditure R13.2 – 14.2bn 36.1 31-33 35-37 37 35-37 2025 2026e 2027e 2025 20
Slide 30: Strong fundamentals with pathway for value delivery
Strong fundamentals with pathway for value delivery Continue to unlock Position for a Create value from the core sustainable future stakeholder value Operational Logistics stability Ongoing excellence & life extension value delivery 30
Slide 31: Annexures
Annexures 31
Slide 32: H1 2026 achieved price $90/wmt
Annexure 1 H1 2026 achieved price $90/wmt1 H1 2026 realised FOB price Price drivers +$7/t Average market prices1: (22) 106 MB62 index CFR China price average: US$106/t (H1 2025: US$101/t) 3 (1) (0) 5 Fe premium average: ~US$1.60 per 1% Fe (1) 90 90 (H1 2025: ~US$1.67 per 1% Fe) 83 Lump premium avera
Slide 33: Sensitivity analysis
Annexure 2 Sensitivity analysis Sensitivity analysis (1% change) - EBITDA impact (Rm) (173) Export volume 173 (266) Export price 266 (295) Currency 295 (400) (200) — 200 400 Change per unit of key drivers, each tested independently Sensitivity analysis Unit change EBITDA impact Currency (Rand/US$) R
Slide 34: Logistics improvement supports sales
Annexure 3 Logistics improvement supports sales Mt H1 2026 H1 2025 % change H2 2025 % change Railed to port (incl. Saldanha Steel) 18.6 18.9 (2) 18.7 (1) Sishen mine 12.9 12.9 — 13.1 (2) Kolomela mine 5.7 6.0 (5) 5.6 2 Total sales1 18.6 18.7 (1) 18.3 2 Total ore shipped 18.6 18.7 (1) 18.3 2 CFR (shi
Slide 35: Operating margin reflects lower revenue
Annexure 4 Operating margin reflects lower revenue Rm H1 2026 H1 2025 % change H2 2025 % change Revenue 30 877 34 535 (11) 35 542 (13) Other operating income1 — 942 (100) — — Operating expenses2 (23 358) (22 555) 4 (22 706) 3 Operating profit 7 519 12 922 (42) 12 836 (41) Operating margin (%)1,2 24.
Slide 36: Break-even price impacted by market factors
Annexure 5 Break-even price impacted by market factors Fastmarkets 62% Break-even price (US$/wmt) 3.7 (2.1) 6.1 80.7 1.5 3.1 (0.7) 1.1 71.5 68.0 2025 Opex Price SIB Total after Lump Currency Freight Royalties H1 2026 premium controllables premium Internal factors +$3.5 External factors +$9.2 36
Slide 37: Revenue analysis
Annexure 6 Revenue analysis H1 2026 H1 2025 % change H2 2025 % change Export sale of iron (Rm) A 26 823 31 181 (14) 31 973 (16) Net losses/(gains) on derivatives relating 573 126 355 (508) (>100)% to undelivered physical cargo (Rm) B Adjusted FOB revenue (Rm) A+B 27 396 31 307 (12) 31 465 (13) Tonne
Slide 38: Operating expenditure analysis
Annexure 7 Operating expenditure analysis Rm H1 2026 H1 2025 % change H2 2025 % change Raw materials & consumables 1 396 1 077 30 1 318 6 Net movement in finished product & WIP inventories (644) 79 (>100) (988) (35) Net increase in/(reversal of) inventory provision 74 (81) (>100) (447) (>100) Contra
Slide 39: Operating expense reconciliation
Annexure 8 Operating expense reconciliation Rm H1 2026 H1 2025 % change H2 2025 % change Cost of goods sold 14 847 14 033 6 14 126 5 Cost of goods produced 12 119 11 496 5 11 000 10 Production costs 12 523 10 880 15 11 617 8 Sishen mine 9 128 7 531 21 8 507 7 Kolomela mine 3 395 3 349 1 3 110 9 Inve
Slide 40: Unit cost analysis by mine
Annexure 9 Unit cost analysis by mine Sishen Kolomela Rm H1 2026 H1 2025 % change H2 2025 % change H1 2026 H1 2025 % change H2 2025 % change Production costs 9 128 7 531 21.2 8 507 7.3 3 395 3 349 1.4 3 110 9.2 WIP (183) 875 (120.9) 25 (832.0) (220) (259) (15.1) (641) (65.7) Non-cash costs (2 237) (
Slide 41: Sishen & Kolomela mines
Annexure 10 Sishen & Kolomela mines Unit cash cost structure (R/t) 557 549 424 182 183 145 96 329 118 62 84 68 101 117 47 146 129 25 97 27 40 93 116 29 67 9 9 13 20 119 91 72 77 (33) (140) (122) (45) (123) (15) (45) Sishen mine Sishen mine Kolomela mine Kolomela mine H1 2025 H1 2026 H1 2025 H1 2026
Slide 42: Sishen & Kolomela mines
Annexure 11 Sishen & Kolomela mines Unit cash cost structure (%) 34 33 33 31 20 17 22 14 11 35 12 30 21 24 5 20 22 5 7 3 3 20 5 53 22 23 21 13 (10) (25) (22) (29) (14) (3) (11) Sishen mine Sishen mine Kolomela mine Kolomela mine H1 2025 H1 2026 H1 2025 H1 2026 Deferred stripping Work in progress Oth
Slide 43: Costs impacted by FX
Annexure 12 Costs impacted by FX C1 unit costs (US$/t) (1.7) 2.5 (4.2) 0.9 0.6 1.4 1.0 45.4 45.7 4.7 38.8 H1 2025 FX CPI Cost Total after Operational WIP & Production Other H1 2026 escalation¹ non- activity deferred expenses controllables stripping 1. Cost escalation on key mining inputs 43
Slide 44: Capital expenditure analysis
Annexure 13 Capital expenditure analysis Rm H1 2026 H1 2025 2026F Approved expansion 1 277 650 3 000 - 3 200 Deferred stripping 2 135 1 900 3 600 - 4 000 Sishen 1 535 1 707 2 250 - 2 500 Kolomela 600 193 1 350 - 1 500 SIB 1 801 1 280 6 600 - 7 000 Sishen 1 222 844 4 600 - 4 900 Kolomela 579 436 2 00
Slide 45: Investment aligned to phased implementation
Annexure 14 Investment aligned to phased implementation Total capital spend to 2023 2024 2025 2026 2027 2028 2029 Total R1.8bn R0.5bn R1.7bn R3.2bn R2.0bn R0.9bn R1.1bn R11.2bn Contracts Complete final First production, main awarded, Modular substations; Continue conversion conversion & shut & conti
Slide 46: Working capital driven by increase in payables, inventories & receivables
Annexure 15 Working capital driven by increase in payables, inventories & receivables 874 15 499 867 33 13 725 13 725 +13% FY 2025 Inventories Receivables Payables H1 2026 46