Kumba Iron Ore Limited · JSE:KIO
Kumba Iron Ore — H1 2025 Earnings Presentation
41 slides from Kumba Iron Ore's earnings presentation, Jul 29, 2025
Slide 1: Kumba Iron Ore 2025 interim results
AngloAmerican 29 July 2025
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer to sell No assurance can be given that such future results will be achieved; actual events or or the solicitation of an offer to buy shares in Kumba. Further, it does not constitute a results may differ ma
Slide 3: Agenda
Agenda H1 business overview Mpumi Zikalala, Chief Executive Operational performance Mpumi Zikalala, Chief Executive Financial performance Bothwell Mazarura, Chief Financial Officer Looking ahead Mpumi Zikalala, Chief Executive 3
Slide 4: Strategic value delivery through the commodity cycle
Strategic value delivery through the commodity cycle Unlock full value Position for a Create of core sustainable future stakeholder value Safe, cost efficient Progressing Disciplined production UHDMS capital allocation 4
Slide 5: H1 2025 business overview
H1 2025 business overview Production Attributable free cash flow 18.2Mt R7.9bn H1 2024: 18.5Mt H1 2024: R9.1bn C1 unit cost Enduring stakeholder value US$39/t R25.9bn H1 2024: US$39/t H1 2024: R27.7bn EBITDA Dividend declared R16.0bn R5.3bn H1 2024: R15.6bn H1 2024: R6.0bn 5
Slide 6: Safety, health & wellness is our first value
Safety, health & wellness is our first value Safety Fatal Risk Management programme LTI TRIFR empowering & increasing understanding 1.55 Enhanced rhythms & routines through collaborative contractor engagement 1.18 0.98 Workplace exposure reduction targets met, 0.76 0.80 supporting nine years of no l
Slide 7: Sustainability is core to our business strategy
Sustainability is core to our business strategy Healthy environment Thriving communities Trusted corporate leader Water Carbon emission Livelihoods Education Health B-BBEE Inclusivity Logistics stewardship reductions 670 jobs Supporting 10 400 Collect & Go Level 4 & diversity reform 8.5BL water supp
Slide 8: Enduring shared value of R25.9bn for stakeholders
Enduring shared value of R25.9bn for stakeholders Community Government Shareholders Employees livelihoods Capital investment R3.8bn Income Owners BEE business Salaries & tax of Kumba suppliers benefits R2.7bn R5.3bn R8.2bn R3.5bn Mineral Empowerment Host community Employed from Direct social royalty
Slide 9: Operational performance
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Slide 10: Value-focused performance
Value-focused performance Waste Production 80.3Mt 18.2Mt H1 2024: 88.5Mt H1 2024: 18.5Mt Ore railed to port Sales 18.9Mt 18.7Mt H1 2024: 18.1Mt H1 2024: 18.1Mt Mine Port Finished stock -7% +100% 7.4Mt 6.9 6.4 1.0 FY 2024: 7.5Mt 0.5 FY 2024 H1 2025 FY 2024 H1 2025 10 10
Slide 11: Continued momentum from mine optimisation
Continued momentum from mine optimisation Waste mining Operational Ongoing benefit of ramping up excellence optimised mine plan Waste mining (Mt) Cumulative savings (Rbn) +19% +16% 88.5 Truck fleet 5.1 80.3 13.7 27% reduction 67.2 12.3 74.8 4.4 8.0 68.0 59.2 Operating time 4% improvement Haul truck
Slide 12: Logistics partnership delivering improved stability
Logistics partnership delivering improved stability Improved logistics Focus on closing gap Short, medium & long-term performance to contracted capacity initiatives Rail (Mt) Sales (Mt) Mutual Cooperation +4% +3% Agreement expedites urgent -7% +8% maintenance work 18.9 18.7 18.1 18.1 9.8 9.1 9.0 9.7
Slide 13: Financial performance
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Slide 14: H1 2025 financial results
H1 2025 financial results Average realised FOB price ROCE US$91/t 48% H1 2024: US$97/t H1 2024: 48% Break-even price HEPS US$64/t R22.26 FY 2024: US$74/t H1 2024: R22.27 EBITDA margin DPS 46% R16.60 H1 2024: 44% H1 2024: R18.77 14
Slide 15: Prices steady but headwinds persist
Prices steady but headwinds persist Exports offset weak property demand Flat iron ore supply in H1 2025 Prices finding support at ~US$90/t China steel production (Mtpa) Seaborne Iron Ore Exports (Mtpa) Platts 62 (US$/dmt) 0% -1% -2% 250 1,071 1,072 +5% +2% 0% 1,061 200 1,038 51 1,528 1,534 160 84 1,
Slide 16: Market leading products & prices through the cycle
Market leading products & prices through the cycle Fe content of major seaborne producers (%) Price premium over Platts 62 FOB (US$/wmt) Lump premium+Fe Price premium 25 3 17 15 13 7 6 5 3 11 22 13 10 10 11 64.1 60.1 60.8 62.2 57.7 (7) (4) Kumba Peer 1 Peer 2 Peer 3 Peer 4 2020 2021 2022 2023 2024 1
Slide 17: EBITDA driven by solid sales & disciplined cost management
EBITDA driven by solid sales & disciplined cost management Sales volumes C1 costs Average FOB price Average R/US CPI inflation1 Freight rates H1 2025 18.7Mt US$39/t US$91/t R18.39 3.3% US$15/t H1 2024 18.1Mt US$39/t US$97/t R18.73 5.1% US$20/t EBITDA Rm 609 17,270 (788) 1,079 (792) 15,991 (514) 110
Slide 18: Break-even price at more resilient levels
Break-even price at more resilient levels Platts 62% Break-even price (US$/wmt) (0) 3 (2) (0) 75 74 (6) (1) (0) (4) (0) 64 FY 2024 Opex Marketing Fe SIB Total after Timing Lump Currency Freight Royalties H1 2025 premium premium controllables effect premium Internal factors +US$1/t External factors -
Slide 19: Savings underpin consistent cost performance
Savings underpin consistent cost performance Operating expenses (Rm) C1 cost (US$/t) Reduced contractor C1 cost target mining volumes and US$39 - 40/t non-recurring costs1 (2025 - 2027) 376 (661) 22,868 Cost profile reduced (110) by 5% & maintained 22,555 (586) 756 41 (476) 285 39 39 103 H1 Inflatio
Slide 20: Ongoing cost benefit from optimised mine plan
Ongoing cost benefit from optimised mine plan Sishen unit cost (R/t) FY2025 Guidance R510 – 540/dmt 10 35 (2) 549 (27) 2 557 539 +2% +1% Kolomela unit cost (R/t) FY2025 Guidance 10 29 (38) — 435 (38) R430 – 460/dmt 425 (59) 329 +2% -25% H1 2024 Inflation & Total after Mining Efficiency & Production
Slide 21: Capex sustaining our business into the future
Capex sustaining our business into the future Capex1 Rbn 9.5 - 10.5 Expansion: UHDMS2 preparation for conversion 1.4 - 1.6 of first coarse and fines modules Medium-term: ~R2.0bn p.a. 4.2 - 4.6 SIB: Safety, asset integrity & sustainability Medium-term: ~R4.0 – 5.0bn p.a. 3.7 3.8 0.6 0.6 Deferred stri
Slide 22: Disciplined capital allocation
Disciplined capital allocation Rbn ROCE 48% (5.2) 10.5 1 Attributable free cash flow R7.9bn (3.9) (5.3) (1.9) 14.7 16.1 8.9 Interim dividend declared R16.60 per share Dividend payout ratio 75% 2024 Cash flow Base Discretionary H1 2025 Interim Pro-forma Dividend yield2 12% Net cash after dividends ca
Slide 23: Looking ahead
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Slide 24: UHDMS captures a compelling opportunity to create value
UHDMS captures a compelling opportunity to create value Project milestones & Coarse module Fines modular capex phasing on track conversion update substation foundation Recovery Scope Dismantling Scope Installation of modular substation in Q3 2025 Conversion of first coarse & fines modules in Q4 2025
Slide 25: Kumba well positioned to realise premium pricing
Kumba well positioned to realise premium pricing Widening quality differential >50% share of premium products BF-DRI share of production >60% Steel metallics mix, % share Fe, % 2023 +0.3% Fe 100% 2025 2027 Target 80% Scrap Kumba 60% Peer 2 Peer 1 40% Hot Metal Spot Pilbara Products* >50% 20% <20% DR
Slide 26: 2025 full year guidance
2025 full year guidance Total production Total sales C1 cash costs Capital expenditure (Mt) (Mt) (≤US$/t1) (Rbn) 35 – 37 35 – 37 39 9.5 – 10.5 Production Waste Unit costs Strip ratio LoA Sishen ~26 Mt 140 – 150 Mt R510 – 540/dmt ~4.7 | LoA ~3.6² ~16 years⁴ Kolomela ~10 Mt 26 – 32 Mt R430 – 460/dmt ~
Slide 27: Strong fundamentals with pathway for value delivery
Strong fundamentals with pathway for value delivery World class Aligned to Operational Disciplined assets long-term trends excellence value creation 27
Slide 28: Annexures
Annexures 28 28
Slide 29: H1 2025 achieved price $91/wmt
Annexure 1 1 H1 2025 achieved price $91/wmt H1 2025 realised FOB price Price drivers +$7/t 101 Average market prices1: (15) 4 (2) (2) P62 index CFR China price average: US$101/t 93 91 (H1 2024: US$118/t) 7 91 (2) 84 Fe premium average: ~US$1.67 per 1% Fe (H1 2024: ~US$1.95 per 1% Fe) Lump premium av
Slide 30: Sensitivity analysis H1 2025
Annexure 2 Sensitivity analysis H1 2025 Sensitivity analysis (1% change) - EBITDA impact (Rm) (216) Export volume 216 (305) Export price 305 (337) Currency 337 (400) (200) — 200 400 Change per unit of key drivers, each tested independantly Sensitivity analysis Unit change EBITDA impact Currency (Ran
Slide 31: Sales benefit from improved logistics performance
Annexure 3 Sales benefit from improved logistics performance Mt H1 2025 H1 2024 % change H2 2024 % change Railed to port (incl. Saldanha Steel) 18.9 18.1 4 17.5 8 Sishen mine 12.9 12.8 1 12.6 2 Kolomela mine 6.0 5.3 13 4.9 22 Total sales1 18.7 18.1 3 18.2 3 Total ore shipped 18.7 18.3 2 18.0 4 CFR (
Slide 32: Operating margin reflects weaker market prices
Annexure 4 Operating margin reflects weaker market prices Rm H1 2025 H1 2024 % change H2 2024 % change Revenue 34,535 35,802 (4) 32,727 6 Other operating income1 942 — 100 — 100 Operating expenses2 (22,555) (22,868) (1) (19,300) 17 Operating profit 12,922 12,934 — 13,427 (4) Operating margin (%)1,2
Slide 33: Revenue analysis
Annexure 5 Revenue analysis H1 2025 H1 2024 % change H2 2024 % change Export sale of iron (Rm) 31,180 31,458 (1) 28,888 8 Net losses/(gains) on derivatives relating 126 1,415 (91) (292) (>100) to undelivered physical cargo (Rm) Adjusted FOB revenue (Rm) 31,306 32,873 (5) 28,596 9 Tonnes sold (Mt) 18
Slide 34: Operating expenditure analysis
Annexure 6 Operating expenditure analysis Rm H1 2025 H1 2024 % change H2 2024 % change Raw materials & consumables 1,077 1,018 6 993 8 Net movement in inventories 79 120 (34) 1,455 (95) Inventory written down to NRV (81) (68) 19 139 (>100) Contractors' expenses 1,591 1,866 (15) 1,594 — Deferred stri
Slide 35: Operating expense reconciliation
Annexure 7 Operating expense reconciliation Rm H1 2025 H1 2024 % change H2 2024 % change Cost of goods sold 14,033 13,789 2 14,777 (5) Cost of goods produced 11,496 11,636 (1) 10,964 5 Production costs 10,880 11,126 (2) 10,634 2 Sishen mine 7,531 7,920 (5) 7,870 (4) Kolomela mine 3,349 3,206 4 2,764
Slide 36: Unit cost analysis by mine
Annexure 8 Unit cost analysis by mine Sishen Kolomela Rm H1 2025 H1 2024 % change H2 2024 % change H1 2025 H1 2024 % change H2 2024 % change Production costs 7,531 7,920 (4.9) 7,870 (4.3) 3,349 3,206 4.5 2,764 21.2 WIP 875 602 45.3 466 87.8 (259) (92) 181.5 (137) 89.1 Non-cash costs (1,781) (1,684)
Slide 37: Sishen and Kolomela mines unit cash cost structure (R/t)
Annexure 9 Sishen and Kolomela mines Unit cash cost structure (R/t) 557 539 182 156 425 96 104 329 62 129 75 101 117 40 47 106 83 25 97 25 27 23 61 116 10 8 67 113 9 9 122 46 72 77 (10) (18) (33) (109) (140) (45) Sishen mine Sishen mine Kolomela mine Kolomela mine H1 2024 H1 2025 H1 2024 H1 2025 Def
Slide 38: Sishen and Kolomela mines unit cash cost structure (%)
Annexure 10 Sishen and Kolomela mines Unit cash cost structure (%) 29 33 31 30 19 17 14 11 9 14 30 21 20 20 5 14 20 5 5 4 2 2 20 33 20 29 23 9 13 (2) (4) (10) (20) (25) (14) Sishen mine Sishen mine Kolomela mine Kolomela mine H1 2024 H1 2025 H1 2024 H1 2025 Deferred stripping Work in progress Other
Slide 39: Capital expenditure analysis
Annexure 11 Capital expenditure analysis Rm H1 2025 H1 2024 2025F Approved expansion 650 649 1,400 - 1,600 Deferred stripping 1,900 1,466 3,900 - 4,300 Sishen 1,707 1,412 3,600 - 3,800 Kolomela 193 54 300 - 500 SIB 1,280 1,598 4,200 - 4,600 Sishen 844 1,358 2,900 - 3,200 Kolomela 436 240 1,300 - 1,4
Slide 40: 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 R1.5bn R2.6bn R2.6bn R2.0bn R0.2bn R11.2bn Contracts Complete final First production, main awarded, Modular substations; Continue conversion conversion & shut & conti
Slide 41: Working capital driven by reduction in receivables
Annexure 13 Working capital driven by reduction in receivables 14,171 (66) 14,105 (395) (21) 13,710 13,689 -3% FY 2024 Inventories Receivables Payables H1 2025 41