Kumba Iron Ore Limited · JSE:KIO

Kumba Iron Ore — Corporate Update (August 2024)

16 slides from Kumba Iron Ore's corporate update, Aug 29, 2024

  1. Slide 1: 29 August 2024

    [OFFICIAL] 29 August 2024

  2. Slide 2: Disclaimer

    [OFFICIAL] Disclaimer This presentation is for information purposes only and does not constitute an offer to sell or No assurance can be given that such future results will be achieved; actual events or the solicitation of an offer to buy shares in Kumba. Further, it does not constitute a results ma

  3. Slide 3: Agenda

    Image form 2018:[OFFICIAL] Not sure of subject’s name. Will amend earplugs if Agenda approved. UHDMS technology overview Mpumi Zikalala The numbers Bothwell Mazarura Conclusion Mpumi Zikalala 3

  4. Slide 4: UHDMS enhances strategy delivery

    [OFFICIAL] UHDMS enhances strategy delivery Strong strategic value delivery Sishen at a glance Refreshed strategy Phased R11.2bn capital investment Unlock full potential of the core Historical average Robust IRR & EBITDA margin enhancement  Safety leadership Fe quality 64.0 – 65.5%  Operational ex

  5. Slide 5: Positioning Sishen for the future

    [OFFICIAL] [OFFICIAL] Positioning Sishen for the future Ferrosilicon (FeSi) used to prepare dense media to separate valuable iron ore from waste  UHDMS Technology currently in use at Sishen & Kolomela Modular Plants Three types of FeSi currently in use:  Technology & scalability well • Fine water-

  6. Slide 6: Conversion process from DMS to UHDMS

    [OFFICIAL] [OFFICIAL] Conversion process from DMS to UHDMS 3 1 3 Conversion to 6 Coarse UHDMS Modules 1 2 +5.4 Mtpa Premium Lump (6 – 11.4Mtpa) 3 2 4 Conversion to 5 Fines UHDMS Modules +5.1 Mtpa Premium Fines (0 - 5.1Mtpa) 3 Bulk Material Handling Modifications to Washing and Screening, Quaternary

  7. Slide 7: Operational excellence & sustainability benefits

    [OFFICIAL] Operational excellence & sustainability benefits Enhances Strong Well positioned operational excellence business case for a sustainable future Phased implementation 48 40% Secures Sishen life to 2038 optimises project1execution, lower cut-off grade Potential to extend to 2044 maintains sa

  8. Slide 8: The numbers

    [OFFICIAL] The numbers 8

  9. Slide 9: Optimising project execution, safety & stability

    [OFFICIAL] Optimising project execution, safety & stability Rbn Cost inflation Change in execution strategy & escalation 0.9 11.2 2.2 1.5 1.9 1.1 4.7 4.7 3.6 Capital investment Cost inflation Capital investment Detailed Operational safety Phased Contingency Total capital approved in 2021 & escalatio

  10. Slide 10: Investment aligned to phased implementation

    [OFFICIAL] Investment aligned to phased implementation Total capital spend to 2023 2024 2025 2026 2027 2028 2029 Total R1.8bn R0.5bn R1.3bn R2.8bn R2.6bn R2.0bn R0.2bn R11.2bn Contracts Complete final First production, main awarded, Modular substations; Continue conversion conversion & shut & contin

  11. Slide 11: UHDMS value proposition is compelling

    [OFFICIAL] UHDMS value proposition is compelling Maximises product premium, Projected returns benefit all Commitment to disciplined improves cost competitiveness stakeholders capital allocation ≥30% Flexible & efficient Additional US$2 - 3/t¹ internal rate of return balance sheet premium from1 2028

  12. Slide 12: Premium quality enables green steel opportunity

    [OFFICIAL] Premium quality enables green steel opportunity Kumba’s industry leading 2030 emission reduction goals Positive outlook on product iron ore products & decarbonisation projects¹ quality premiums %Fe, Silica, Alumina 2023 The base line for each of the targets varies Long-term real price for

  13. Slide 13: Benefits across Kumba's stakeholders

    [OFFICIAL] Benefits across Kumba’s stakeholders Margin Optimal Increased Secures Sishen’s Healthier enhancing use of IOEC levels of life of mine & environment investment beneficiation offers optionality Demonstrates Trebles proportion of Maximises product Life of mine Premium grade ore confidence in

  14. Slide 14: Thank you

    [OFFICIAL] Thank you 14

  15. Slide 15: Annexures

    [OFFICIAL] Annexures

  16. Slide 16: Payback analysis

    [OFFICIAL] Annexure 1 Payback analysis Payback of capital investment Total capital investment (Rbn) 11.2 Capital spend up to 2023 (Rbn) (1.8) Balance of capital to be incurred (Rbn) 9.4 Mineral royalty benefit (Rbn)¹ A (1.1) Tax benefit (Rbn)² B (2.3) Exchange rate (ZAR/US$) i 19.7 Waste benefit ($/

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