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Extracts from the reviewed interim results for the period ended 30 June 2023 and interim cash dividend declaration

Published: 2023-07-25 08:05:33 ET

Kumba Iron Ore Limited
Registration number: 2005/015852/06
JSE share code: KIO
ISIN: ZAE000085346
Income tax number: 9586/481/15/3
("Kumba" or "the Company" or "the group")

EXTRACTS FROM THE REVIEWED INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2023 AND INTERIM CASH DIVIDEND DECLARATION


KEY FEATURES

Committed to safe and sustainable mining
- Relentless focus on zero harm and elimination of fatalities
- Zero occupational diseases
- Over eight years without any level 3-5 environmental incidents

Continued value delivery
- Attributable free cash flow* of R7.9 billion
- ROCE of 77%
- Interim cash dividend of R22.60 per share

Solid financial performance
- Average realised FOB export price of US$106/wmt, 4% above benchmark
- EBITDA* margin of 52%
- Closing net cash* of R13.8 billion
* This constitutes pro forma financial information in terms of the Listings Requirements of the JSE Limited and
  should be read in conjunction with basis of preparation report in the interim results announcement.

"Sustainable, purpose-led and values-driven business
"Kumba recorded a solid operational and financial performance in the first six months while continuing to drive for
zero harm and the elimination of fatalities. We delivered an earnings before interest, tax, depreciation and
amortisation (EBITDA) of R19.8 billion and an EBITDA margin of 52%, underpinned by an average realised free-on-board
(FOB) export price of US$106/wet metric tonne (wmt), 4% above the average benchmark price. Production increased by 6%
driven by Kolomela's 22% increase and stable performance from Sishen resulting in an improved C1 unit cost of
US$39/wmt. As a result, the board is pleased to declare a dividend of R7.3 billion or R22.60 per share.

"Our refreshed strategy will ensure we remain focused on maintaining our competitive position as we unlock the full
potential of our core and position Kumba for a sustainable future and the green transition that is driving demand for
our premium ore."
Mpumi Zikalala, Chief Executive


REVENUE for the period ended
                                                                   30 June   30 June               31 December
Rand million                                                          2023      2022   % change           2022
Revenue                                                             38,279    42,977        (11)        74,032

EARNINGS PER SHARE for the period ended
                                                                   30 June   30 June               31 December
Rand per share                                                        2023      2022   % change           2022
Earnings
Basic                                                                30.04     36.00        (17)        46.64
Diluted                                                             29.98     35.92           (17)                46.54
Headline earnings
Basic                                                               30.04     36.13           (17)                56.19
Diluted                                                             29.98     36.04           (17)                56.06
Dividend
Interim                                                             22.60     28.70           (21)                28.70
Final                                                                 n/a       n/a             -                 16.30

SALIENT FEATURES AND OPERATING STATISTICS for the period ended
                                                                  30 June   30 June                      31 December
                                                                     2023      2022      % change               2022
Market information
Closing share price (Rand)                                            443       526        (16)          492
Market capitalisation (Rand million)                              142,684   169,417        (16)      158,466
Net asset value attributable to owners of Kumba (Rand per share)   143.93    144.60          -        127.44
Operating statistics** (million tonnes)
Production                                                           18.8      17.8          6          37.7
Sishen                                                               12.8      12.9         (1)         27.0
Kolomela                                                              6.0       4.9         22          10.7
Total sales                                                          18.9      19.7         (4)         36.6
Sishen mine FOR unit cost (Rand per dry metric tonne)
Unit cost                                                          678.77    616.40         10        595.50
Cash cost                                                          543.00    480.68         13        479.27
Kolomela mine FOR unit cost (Rand per dry metric tonne)
Unit cost                                                          627.33    637.22         (2)       643.18
Cash cost                                                          446.71    475.02         (6)       489.60
** Volumes, excluding waste stripping, are reported as wet metric tonnes, with a 1.6% moisture content.


NOTICE OF INTERIM CASH DIVIDEND

At the Board meeting on 24 July 2023, the directors approved a gross interim cash dividend of 2,260 cents
per share on the ordinary shares from profits accrued during the period ended 30 June 2023. The dividend has
been declared from income reserves.

The dividend will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt
from or do not qualify for a reduced rate of withholding tax. The net dividend payable to shareholders after
withholding tax at a rate of 20% amounts to 1,808 cents per share.

The issued share capital at the declaration date is 322,085,974 ordinary shares.

The salient dates are as follows:

Publication of declaration data                                                           Tuesday, 25 July 2023
Last day for trading to qualify and
participate in the interim dividend                                                     Tuesday,    15   August    2023
Trading ex-dividend commences                                                         Wednesday,    16   August    2023
Record date                                                                              Friday,    18   August    2023
Dividend payment date                                                                    Monday,    21   August    2023

Share certificates may not be dematerialised or rematerialised between Wednesday, 16 August 2023 and
Friday, 18 August 2023, both days inclusive.
EXTRACTS FROM THE REVIEWED INTERIM FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2023

The information disclosed is only a summary of the information in the reviewed full announcement and does not
contain full or complete details.

The full interim results announcement should be considered for any investment decisions. The full interim
results announcement for Kumba is available for viewing on the Company's website:
https://www.angloamericankumba.com/investors/financial-results-centre and at
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/KIO/KumbaInt23.pdf

The full interim results have been reviewed by the Company's auditors, PricewaterhouseCoopers Inc., who issued an
unmodified review opinion.

Any reference to future financial performance included in this announcement has not been reviewed or reported
on by the Company's external auditors.


Kumba Iron Ore Limited is a member of the Anglo American plc group

Directors
Non-executive: TP Goodlace (British/South African) (Chairperson), MS Bomela, A Jeawon, MA Jenkins,
SM Kuijlaars (British), NB Langa-Royds, TM Mkhwanazi, SS Ntsaluba, BP Sonjica, MJ Tsele

Executive: ND Zikalala (Chief Executive), BA Mazarura (Zimbabwean) (Chief Financial Officer)

Registered office: 144 Oxford Road, Rosebank, Melrose, 2196, South Africa

Transfer Secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196, South Africa, Private Bag X9000, Saxonwold, 2132

Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)

25 July 2023

For more information please visit us at: www.angloamericankumba.com

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.