Kumba Iron Ore's annual results for the twelve months ended 31 December 2024
18 February, 2025
HIGHLIGHTS FROM THE REVIEWED FULL YEAR RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2024 AND FINAL CASH DIVIDEND DECLARATION
Strong fundamentals with pathway for value delivery
Mpumi Zikalala, CEO of Kumba, said: “Kumba’s continued focus on operational excellence delivered a record 22% improvement in our TRIFR to 0.76.
Our business reconfiguration and proactive cost optimisation realised savings of R4.4 billion, contributing positively to our adjusted EBITDA of R28.1 billion, at an adjusted EBITDA margin of 41%. Reflecting our commitment to delivering stakeholder value, Kumba’s board declared a final cash dividend of R19.90 per share, resulting in a total cash dividend of R38.67 per share and a total payout ratio of 100% of headline earnings for the year.
As we look forward to unlocking further value, Kumba’s UHDMS technology underpins our premium product strategy. More broadly, Kumba as part of the Ore User’s Forum, will work closely with government and Transnet in support of logistics network reform and prioritise the Ore Export Corridor restoration programme.”
Safety and sustainability focus:
- Lowest total recordable injury frequency rate (TRIFR) on record of 0.76 from 0.98
- Zero new cases of level 4-5 occupational diseases
- Over nine years of no major environmental incidents
- R57.3 billion of enduring shared value created
Unlock full value of the core:
- Average realised FOB export price of US$92/tonne, 3% above benchmark
- Cost savings of R4.4 billion, with improved C1 unit cost of US$39/tonne
- Resilient EBITDA1 margin of 41%, down from 53%
- Closing net cash of R14.7 billion
Disciplined capital allocation:
- Return on capital employed (ROCE) of 41%, down from 82%
- Attributable free cash flow of R14.5 billion, 3% lower
- Final cash dividend of R19.90 per share and total cash dividend of R38.67 per share
Download the Annual Results for the year ended 31 December 2024