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Extracts from the reviewed interim results for the period ended 30 June 2024 and cash dividend declaration

Published: 2024-07-23 08:06:38 ET

Kumba Iron Ore Limited
Registration number: 2005/015852/06
JSE share code: KIO
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 2024 AND
CASH DIVIDEND DECLARATION


KEY FEATURES

Positioned for a sustainable future
- More than eight years fatality-free production at Sishen
- Zero occupational diseases
- Over nine years without any level 3-5 environmental incidents
- Shared value of R27.7 billion created

Resilient financial performance
- Average realised FOB export price of US$97/wmt, above benchmark
- EBITDA* margin of 44%
- Cost savings of ~R1.8 billion
- Closing net cash* of R14.6 billion

Disciplined capital allocation
- Attributable free cash flow* of R9.1 billion
- ROCE of 48%
- Interim cash dividend of R18.77 per share

* This constitutes pro forma financial information in terms of the Listings Requirements of the Johannesburg
  Stock Exchange (JSE) Limited and should be read in conjunction with the supplementary non-IFRS financial
  measures on page 34 of the interim results announcement.


MPUMI ZIKALALA, CHIEF EXECUTIVE OF KUMBA, SAID:

"Our first half results reflect strong execution of our business reconfiguration plan while improving safety
across our operations. By prioritising operational safety, stability, capability and cost-efficient production,
we achieved savings of R1.8 billion and an improved C1 unit cost of US$38.5/wmt. This coupled with an average
realised price of US$97/wmt contributed to an EBITDA of R15.6 billion and an EBITDA margin of 44%. Attributable
free cash flow of R9.1 billion supported our Board's decision to declare an interim dividend of R6.0 billion,
of which our empowerment partners will receive R2.0 billion. Through creating R27.7 billion of enduring shared
value, we continue to reimagine mining to improve people's lives."


REVENUE for the period ended
                                                    30 June   30 June               31 December
Rand million                                           2024      2023   % change           2023
Revenue                                              35,802    38,279         (6)        86,234

EARNINGS PER SHARE for the period ended
                                                    30 June   30 June               31 December
Rand per share                                         2024      2023    % change           2023
Earnings
Basic                                                 22.27     30.04         (26)         70.80
Diluted                                               22.23     29.98         (26)         70.64
Headline earnings
Basic                                                 22.27     30.04         (26)         70.80
Diluted                                               22.23     29.98         (26)         70.63
Dividend
Interim                                               18.77     22.60         (17)         22.60
Final                                                   n/a       n/a           -          24.20

SALIENT FEATURES AND OPERATING STATISTICS for the period ended
                                                    30 June    30 June               31 December
                                                       2024       2023   % change           2023
Market information
Closing share price
(Rand)                                                  440        443         (1)           615
Market capitalisation
(Rand million)                                      141,718    142,684         (1)       198,083
Net asset value attributable to owners of Kumba
(Rand per share)                                     158.84     143.93         10         161.51
Operating statistics
('000 tonnes)**
Production                                           18,459     18,745         (2)        35,715
Sishen                                               13,207     12,783          3         25,421
Kolomela                                              5,252      5,962        (12)        10,294
Total sales                                          18,089     18,943         (5)        37,159
Sishen mine FOR unit cost
(Rand per dry metric tonne)
Unit cost                                            662.99     678.77         (2)        740.36
Cash cost                                            538.52     543.00         (1)        589.14
Kolomela mine FOR unit cost
(Rand per dry metric tonne)
Unit cost                                            679.63     627.33          8         706.09
Cash cost                                            425.26     446.71         (5)        482.36

** Volumes, excluding waste stripping, are reported as wet metric tonnes. Product is shipped with
   approximately 1.6% moisture.


NOTICE OF INTERIM CASH DIVIDEND

At the Board meeting on 22 July 2024, the directors approved a gross interim cash dividend of
1,877.00 cents per share on the ordinary shares from profits accrued during the period ended
30 June 2024. This comprises a gross base dividend of 1,670.00 cents per share and a gross top-up
dividend of 207.00 cents per share. 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 1,501.60 cents per share, comprising
a net base dividend of 1,336.00 cents per share and a net top-up dividend of 165.60 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, 23 July 2024
Last day for trading to qualify and participate in the interim dividend       Tuesday, 13 August 2024
Trading ex-dividend commences                                               Wednesday, 14 August 2024
Record date                                                                    Friday, 16 August 2024
Dividend payment date                                                          Monday, 19 August 2024

Share certificates may not be dematerialised or rematerialised between Wednesday, 14 August 2024 and
Friday, 16 August 2024, both days inclusive.


EXTRACTS FROM THE PROVISIONAL REVIEWED INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2024

This unreviewed announcement is the responsibility of the directors of the Company. The
information disclosed is only a summary of the information in the reviewed interim results for
the period ended 30 June 2024 (interim results) and does not contain full or complete details.

The interim results should be considered for any investment decisions. The interim results
for Kumba are available for viewing on the Company's website
www.angloamericankumba.com/investors/financial-results-centre and at
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/KIO/KumbaInt24.pdf

The interim financial statements have been reviewed by the Company's auditor, PricewaterhouseCoopers Inc.
who issued an unmodified review opinion.

Copies of the full announcement may be requested from the Company's investor relations department.
(www.angloamericankumba.com/investors/shareholder-communication)

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,
NB Langa-Royds, TM Mkhwanazi, NV Mokhesi, SS Ntsaluba, MJ Tsele, MTS Walker (British)

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)

For more information please visit: www.angloamericankumba.com

23 July 2024

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.