Kumba Iron Ore Limited · JSE:KIO
Kumba Iron Ore — FY2025 Earnings Presentation
44 slides from Kumba Iron Ore's earnings presentation, Feb 19, 2026
Slide 1: Kumba Iron Ore 2025 Annual Results
Kumba Iron Ore 2025 Annual Results 19 February 2026
Slide 2: Cautionary statement
Cautionary statement Disclaimer regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or This document has been prepared by Kumba Iron Ore Limited (“Kumba” and Company") and comprises written materials/slides maintenance of Ku
Slide 3: Agenda
Agenda Business overview and operational performance Mpumi Zikalala, Chief Executive Financial performance Xolani Mbambo, Chief Financial Officer Looking ahead Mpumi Zikalala, Chief Executive 3
Slide 4: Continued value delivery despite macro uncertainty
Continued value delivery despite macro uncertainty Unlock full value Position for a Create of the core sustainable future stakeholder value Operational Logistics stability Disciplined excellence and life extension capital allocation 4
Slide 5: Safety is our No. 1 value and first priority
Safety is our No. 1 value and first priority Relentless focus on safety TRIFR Fatality free for nine years at Sishen and two years at Kolomela Embedding Fatal Risk Management programme ICMM enables learning from leading indicators 2.29 Nine years of no severe health incidents LTI Continuous employee
Slide 6: Consistent and resilient performance
Consistent and resilient performance Strong track record Production 36.1Mt 1% of delivering stakeholder value Sales 37.0Mt 2% Dividend declared2 R10.3bn EBITDA1 R31.9bn 14% Enduring shared value R58.0bn ROCE 46% 5pp 1. Comparative 2024 period adjusted EBITDA represents net operating profit before de
Slide 7: Sustainability - building a lasting legacy
Sustainability - building a lasting legacy Water 4% decrease in freshwater withdrawal to 6 971 ML stewardship Operations supplied 16 883 ML of water to communities Healthy environment Biodiversity 55.4 ha of land reshaped and 56.5 ha seeded 835 jobs facilitated through the Social Impact Mitigation,
Slide 8: Enduring value of R58bn for all our stakeholders
Enduring value of R58bn for all our stakeholders Government Investment Income tax R5.9bn Capital to sustain and grow our business R10.4bn Mineral royalty R1.5bn Shareholders Employees Owners of Kumba R10.3bn Salaries and benefits R7.1bn Empowerment owners R3.3bn Employed from Northern Cape 84% Commu
Slide 9: Operational performance
Operational performance 9
Slide 10: Solid operational performance
Solid operational performance Finished stock Waste mining 165.6Mt 6% 7.5Mt Production 36.1Mt 1% 2025 Ore railed to port 37.6Mt 6% 7.4Mt 2024 Sales 37.0Mt 2% 10
Slide 11: Disciplined execution driving operational momentum
Disciplined execution driving operational momentum Waste mining Production flexibility Focus on improving cost ramping up and reliability efficiencies Waste mining (Mt) Production (Mt) Cumulative savings (Rbn) Mine +6% +1% +16% optimisation 11
Slide 12: Logistics partnership initiatives yielding results
Logistics partnership initiatives yielding results Rail replacement programme Focus on critical Sustainable logistics network stabilising train performance port equipment reliability remains critical for SA Ore railed to Port (Mt) Sales (Mt) +6% +2% Continued improvement drive Mutual cooperation agr
Slide 13: Financial performance
Financial performance 13 13
Slide 14: Evolving macro dynamics shifting steel demand
Evolving macro dynamics shifting steel demand GDP Steel output 1.6% 2.1% EU/MENA: 21% (24%) GDP Steel output China: 56% (54%) Other Asia: 23% (22%) 5.0% 4.6% GDP Steel output 3.8% 3.2% Regional share of Kumba sales % 2025 (2024) Source : Reuters, Oxford Economics, World Steel Association(WSA) *GDP a
Slide 15: Premium iron ore remains strategically important
Premium iron ore remains strategically important Prices ~US$100/t mark; premia eases Lower pig iron output; higher IO supply Quality and marketing sustained premia Platts IODEX, $/t CFR China Global pig iron production, Mt 5 year CAGR -1.6% Price premiums over Platts 62 FOB (US$/wmt) 90th Percentile
Slide 16: Resilient financial results
Resilient financial results Stronger FX Average realised price US$95/t 3% effect on costs C1 unit cost US$40/t2 3% EBITDA margin1 46% 5pp ZAR/US$ Break-even price US$68/t 8% HEPS R45.97/share DPS R32.03/share 1. Comparative 2024 period adjusted EBITDA margin represents net operating profit before de
Slide 17: EBITDA backed by 102% cash conversion
EBITDA backed by 102% cash conversion1 Sales volumes C1 costs Average FOB price Average R/US$ Inflation Freight rates 2025 37.0Mt US$40/t US$95/t R17.89 3.2% US$16/t 2024 36.3Mt US$39/t US$92/t R18.33 4.6% US$18/t EBITDA Rm Internal factors +12% External factors +2% 1. Cash conversion: Cash generate
Slide 18: C1 unit costs tightly managed
C1 unit costs tightly managed (US$/t) 18
Slide 19: On-mine costs well contained within guidance
On-mine costs well contained within guidance Sishen unit costs (R/t) +2% -3% Kolomela unit costs (R/t) +3% -10% 1. Excluding the impact of deferred stripping on unit cost: Sishen = FY 2025: R138/t (FY 2024: R115/t); Kolomela = FY 2025: R64/t (FY 2024: R33/t) 19
Slide 20: Quality premia benefitting break-even price
Quality premia benefitting break-even price Platts 62% Break-even price (US$/wmt) Internal factors ($4) External factors ($2) 20
Slide 21: Capital expenditure to sustain and grow our business
Capital expenditure to sustain and grow our business Capex1 Rbn 13.2 - 14.2 Expansion: 3.0 - 3.2 UHDMS2 phased execution Medium-term average: ~R2.0bn p.a. HME 2.5 - 2.7 recapitalisation SIB: Safety, asset integrity and reliability prioritised Medium-term average: 4.1 - 4.3 Baseline SIB - HME recapit
Slide 22: Committed to driving cashflow performance
Committed to driving cashflow performance Rbn Attributable free cash flow R12.0bn (6.6) Final dividend declared R5.0bn Dividend payout ratio (FY) 70% Dividend yield2 9% Kumba shareholders Minorities 1. Inclusive of R 0.2bn positive working capital movements 2. Based on Kumba’s share price on 31 Dece
Slide 23: Key financial focus areas
Key financial focus areas Continue to unlock Position for a Create value from the core sustainable future stakeholder value Strengthen Enhance Sustainable dividends, cost efficiency capital discipline 50-75% of headline earnings 23
Slide 24: Looking ahead
O e) o) Cc ©) O) C S O e) —
Slide 25: Long-term fundamentals remain solid
Long-term fundamentals remain solid Iron ore remains essential Lump ore supply is nearing its peak Kumba ores suited to customer needs Steel production forecast, annual, % Lump supply growth, Mt Pilbara Brazilian Kumba 2025-2040 2025-2040 Fe, % Ideal blast furnace zone Premium (Alumina+ Silica) % KP
Slide 26: Sequentially advancing margin enhancing UHDMS
Sequentially advancing margin enhancing UHDMS Project milestones achieved Coarse and fines module conversion Completion schedule of each phase 3 of 6 coarse modules 37% overall project progress 2026 3 of 5 fines modules • 90% of all engineering work Main tie-in completed • All major procurement comp
Slide 27: Unlocking further value for a sustainable future
Unlocking further value for a sustainable future Northern Cape of South Africa Mineral endowment Life extension Exclusive Mineral Resources: ~764Mt Sishen - UHDMS • 471Mt existing resources (2024) • First modules and main tie-in in 2026 • 293Mt additional resources • Trebling premium grade product (
Slide 28: 2026 full year guidance
2026 full year guidance Total production (Mt) 2026 2027 2028 31 – 33 35 – 37 35 – 37 Total sales (Mt) C1 cash costs (US$/t) Capital expenditure (Rbn) 35 – 37 ~45 13.2 – 14.2 at R16.00/US$/t Production Waste Unit costs Strip ratio LoA Sishen ~22 Mt 135 – 145 Mt R530 – 560/dmt ~3.7 | LoA ~3.41 ~16 yea
Slide 29: Strong fundamentals with pathway for value delivery
Strong fundamentals with pathway for value delivery Continue to unlock Position for a Create value from the core sustainable future stakeholder value Operational Logistics stability and Ongoing excellence life extension value delivery 29
Slide 30: Thank you
Thank you 30 30
Slide 31: Annexures
Annexures 31 31
Slide 32: Average realised price reflects weaker steel demand
Annexure 1 Average realised price reflects weaker steel demand Average realised FOB export price (US$/t) Price drivers US$10/t Average market prices¹: P62 CFR China price average: US$102/t (2024: US$109/t) Fe premium average: ~US$1.70 per 1% Fe (2024 ~US$1.82 per 1% Fe) Lump premium average: US$0.14
Slide 33: Sensitivity analysis
Annexure 2 Sensitivity analysis Export volume Export price Currency Change per unit of key operational drivers, each tested independently Sensitivity analysis Unit change EBITDA impact Currency (Rand/US$) R0.1/US$ R353m Export price (US$/t) US$1/t R635m Volume (kt) 100kt R121m Breakeven price impact
Slide 34: Logistics improvement supports sales
Annexure 3 Logistics improvement supports sales Mt 2025 2024 % change H2 2025 H1 2025 % change Railed to port 37.6 35.6 6 18.7 18.9 (1) Sishen mine 26.0 25.4 2 13.1 12.9 2 Kolomela mine 11.6 10.2 14 5.6 6.0 (7) Total sales1 37.0 36.3 2 18.3 18.7 (2) Export 37.0 36.3 2 18.3 18.7 (2) Domestic — — — —
Slide 35: Operating margin reflects lower revenue
Annexure 4 Operating margin reflects lower revenue Rm 2025 2024 % change H2 2025 H1 2025 % change Revenue 70 077 68 529 2 35 542 34 535 3 Other operating income1 942 — 100 — 942 (100) Operating expenses2 (45 261) (42 168) 7 (22 706) (22 555) 1 Operating profit 25 758 26 361 (2) 12 836 12 922 (1) Ope
Slide 36: Revenue analysis
Annexure 5 Revenue analysis 2025 2024 % change H2 2025 H1 2025 % change Export sale of iron(Rm) 63 153 60 346 5 31 973 31 180 3 Net losses / gains on derivatives relating to (382) 1 123 (134) (508) 126 (>100) undelivered physical cargo (Rm) Adjusted FOB revenue (Rm) 62 771 61 469 2 31 465 31 306 1 T
Slide 37: Operating expenditure analysis
Annexure 6 Operating expenditure analysis Rm 2025 2024 % change H2 2025 H1 2025 % change Raw materials and consumables 2 395 2 011 19 1 318 1 077 22 Net movement in inventories (909) 1 575 (>100) (988) 79 (>100) Inventory (reversal of)/increase in write-down (528) 71 (>100) (447) (81) >100 Contracto
Slide 38: Operating expense reconciliation
Annexure 7 Operating expense reconciliation Rm 2025 2024 % change H2 2025 H1 2025 % change Cost of goods sold 28 159 28 566 (1) 14 126 14 033 1 Cost of goods produced 22 496 22 600 — 11 000 11 496 (4) Production costs 22 497 21 760 3 11 617 10 880 7 Sishen mine 16 038 15 790 2 8 507 7 531 13 Kolomel
Slide 39: Unit cost analysis by mine
Annexure 8 Unit cost analysis by mine Sishen Kolomela Sishen Kolomela Rm 2025 2024 % change H2 2025 H1 2025 % change 2025 2024 % change H2 2025 H1 2025 % change Production costs 16 038 15 790 1.6 8 507 7 531 13.0 6 459 5 970 8.2 3 110 3 349 (7.1) WIP 900 1 069 (15.8) 25 875 (97.1) (901) (229) 293.4
Slide 40: Sishen and Kolomela mines
Annexure 9 Sishen and Kolomela mines Unit cash cost structure (R/t) 10 11 40
Slide 41: Sishen and Kolomela mines
Annexure 10 Sishen and Kolomela mines Unit cash cost structure (%) 3 3 41
Slide 42: Capital expenditure analysis
Annexure 11 Capital expenditure analysis Rm 2025 2024 2026F Approved expansion 1 800 1 260 3 000 - 3 200 Deferred stripping 4 135 3 238 3 600 - 4 000 Sishen 3 450 2 906 2 250 - 2 500 Kolomela 685 332 1 350 - 1 500 SIB 4 476 4 502 6 600 - 7 000 Sishen 3 479 3 912 4 600 - 4 900 Kolomela 997 590 2 000
Slide 43: Investment aligned to phased implementation
Annexure 12 Investment aligned to phased implementation Total capital spend to 2023 2024 2025 2026 2027 2028 2029 Total R1.8bn R0.5bn R1.7bn R2.9bn R2.2bn R1.9bn R0.2bn R11.2bn First production, Complete final Contracts Modular Continue main shut and conversion and awarded, substations; first conver
Slide 44: Working capital driven by increase in payables, inventories and receivables
Annexure 13 Working capital driven by increase in payables, inventories and receivables Rm (3.2%) 44