Kumba Production and Sales Report for the third quarter ended 30 September 2026
20 October, 2026
Kumba’s Chief Executive, Mpumi Zikalala, said: “We delivered a resilient third quarter performance, supported by safe and focused operational and project execution. As planned, iron ore production was lower, largely due to the ultra-high-dense-media-separation (UHDMS) project tie-in at Sishen, while sales were supported by the drawdown of finished stock. Production and sales remain on track to achieve the full year guidance of 31 - 33 Mt and 35 - 37 Mt, respectively.
“Market conditions softened through the quarter as weaker Chinese steel production, compressed mill margins and strong seaborne supply weighed on prices. Despite these headwinds, Kumba continued to realise a premium to benchmark prices, underpinned by the quality of its lump iron ore products and its diversified customer base. Additionally, the Company is progressing its Full Potential Programme aimed at unlocking value, underpinned by disciplined cost and capital management.
“The investment in the R11.2 billion UHDMS project at Sishen remains a key driver of Kumba’s long-term competitiveness. The main tie-in is progressing safely and according to plan, with completion expected before the end of 2026 and capital expenditure (capex) remaining within guidance. Once the final conversion of the modules is completed as planned in 2028, UHDMS will increase the proportion of Sishen’s premium-grade iron ore products, improve resource utilisation, reduce waste mining and extend Sishen’s mine life.”
Overview
- The total recordable injury frequency rate (TRIFR) improved to 0.85 YTD 2026 (YTD 2025: 0.97) reflecting continued progress from our safety interventions.
- Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), largely due to the temporary shutdown of the Sishen dense-media-separation (DMS) plant during the UHDMS main tie-in.
- Total sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), with shipping facilitated by high port stock levels.
- Finished stock of 4.8 Mt (Q2 2026: 7.0 Mt), comprising 2.9 Mt on-mine and 1.9 Mt at the Saldanha Bay Port reflect the planned drawdown needed to supplement sales during the Sishen DMS plant shutdown.
- Achieved an average YTD realised FOB export iron ore price of US$86/wmt (YTD 2025: US$94/wmt), a 9% premium above the average benchmark price of US$79/wmt (YTD 2025: US$84/wmt).
| % Q3 2026 |
% Q3 2026 |
% YTD 2026 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q2 | Q1 | Q4 | Q3 | vs | vs | YTD | YTD | vs | |
| ‘000 tonnes | 2026 | 2026 | 2026 | 2025 | 2025 | Q3 2025 | Q2 2026 | 2026 | 2025 | YTD 2025 |
| Waste mining | 49,015 | 44,322 | 39,158 | 41,088 | 44,175 | 11 | 11 | 132,495 | 124,477 | 6 |
| Production | 7,500 | 8,844 | 8,842 | 8,590 | 9,247 | (19) | (15) | 25,186 | 27,494 | (8) |
| Sales | 9,955 | 9,246 | 9,311 | 8,705 | 9,625 | 3 | 8 | 28,512 | 28,333 | 1 |
| Kumba waste | 49,015 | 44,322 | 39,158 | 41,088 | 44,175 | 11 | 11 | 132,495 | 124,477 | 6 |
| Sishen | 38,084 | 33,781 | 30,642 | 32,520 | 36,744 | 4 | 13 | 102,507 | 104,716 | (2) |
| Kolomela | 10,931 | 10,541 | 8,516 | 8,568 | 7,431 | 47 | 4 | 29,988 | 19,761 | 52 |
| Kumba production by mine | 7,500 | 8,844 | 8,842 | 8,590 | 9,247 | (19) | (15) | 25,186 | 27,494 | (8) |
| Sishen | 4,947 | 6,479 | 6,257 | 6,560 | 6,347 | (22) | (24) | 17,683 | 18,729 | (6) |
| Kolomela | 2,553 | 2,365 | 2,585 | 2,030 | 2,900 | (12) | 8 | 7,503 | 8,765 | (14) |
| Kumba sales | 9,955 | 9,246 | 9,311 | 8,705 | 9,625 | 3 | 8 | 28,512 | 28,333 | 1 |
| Lump | 7,004 | 6,132 | 6,154 | 5,917 | 6,391 | 10 | 14 | 19,290 | 18,936 | 2 |
| Fines | 2,951 | 3,114 | 3,157 | 2,788 | 3,234 | (9) | (5) | 9,222 | 9,397 | (2) |
Safety performance
Kumba extended its fatality-free production record of ten years at Sishen and three years at Kolomela, while the 2026 YTD TRIFR improved to 0.85 (YTD 2025: 0.97).
Safety performance benefited from the continued embedding of Kumba's Fatal Risk Management programme, enhanced contractor engagement and stronger accountability across all work fronts. Targeted stops for safety interventions have reinforced awareness of critical risks, particularly stored-energy hazards. Together with the UHDMS Project Safety Observer Programme, these initiatives continue to strengthen safety culture, improve risk awareness, and reduce incident frequency.
Mining, production, and unit costs
Kumba’s full year 2026 waste mining guidance has been revised to 175 - 190 Mt (previously 180 - 195 Mt), while the production guidance remains unchanged at 31 – 33 Mt.
Total waste mining increased by 11% to 49.0 Mt (Q3 2025: 44.2 Mt). Sishen’s waste mining rose by 4% to 38.1 Mt (Q3 2025: 36.7 Mt), supported by improved equipment efficiency and operating times. Waste mining at Kolomela increased by 47% to 10.9 Mt (Q3 2025: 7.4 Mt), driven by the planned ramp-up of higher strip ratio areas at Kapstevel South. However, the residual effects of the heavy rainfall and flooding in Q2 2026 continued to constrain performance. As a result, Kolomela’s full year waste mining guidance has been revised to 40 - 45 Mt (previously 45 - 50 Mt), while Sishen’s guidance remains unchanged at 135 - 145 Mt.
Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), in line with Sishen’s 22% lower production of 4.9 Mt (Q3 2025: 6.3 Mt) following the planned DMS plant shutdown to enable the UHDMS main tie-in. This was partly offset by a 24% increase in Sishen’s JIG plant production to 3.1 Mt (Q2 2026: 2.5 Mt). Kolomela’s production of 2.6 Mt was 12% lower (Q3 2025: 2.9 Mt) due to plant feedstock availability arising from the above-mentioned mining constraints. The sequential improvement in Kolomela’s production, which increased by 8% from Q2 2026, supports the full year production guidance of ~10 Mt. Sishen’s guidance remains unchanged at ~22 Mt.
C1 and on-mine unit cost guidance for the full year 2026 is unchanged, subject to the impact of the Middle East conflict on key input costs. Sishen is expected to deliver unit costs towards the upper end of its 2026 guidance range of R530 – 560/tonne, while Kolomela’s unit cost is expected to end the year at the lower end of the R430 – 460/tonne range. Our C1 unit cost guidance remains at ~US$45/tonne (based on a foreign exchange rate of R16.50/US$).
Logistics, sales, and the market environment
Ore railed to port decreased by 8% to 9.4 Mt (Q3 2025: 10.2 Mt), largely reflecting the impact of a derailment which reduced volumes railed by 0.4 Mt. Despite this, sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), supported by high finished stock levels at Saldanha Bay Port enabling efficient ship loading throughput.
Total finished stock decreased to 4.8 Mt (Q2 2026: 7.0 Mt), reflecting the planned utilisation of stock to supplement sales during the DMS shutdown period. This comprised 2.9 Mt of on-mine stock (Q2 2026: 4.8 Mt) and 1.9 Mt at Saldanha Bay Port (Q2 2026: 2.2 Mt). Sales volumes are expected to be at the upper end of the 35 – 37 Mt guidance range for the year.
During the 10-day logistics maintenance shutdown in October 2026, 22km of rail line was replaced. To date, this brings to completion 33% of the 517km replacement programme, resulting in the lifting of 40% of the speed restrictions along the Ore Export Channel. At Saldanha Bay Port, refurbishment work on four stacker reclaimers and two ship loaders were completed, while commissioning of Tippler 3 is underway.
Iron ore prices remained under pressure as elevated coking coal costs weighed on Chinese steel mill profitability. Average blast furnace profitability at the 247 mills surveyed by Mysteel, declined to as low as 7% by the end of Q3 2026, relative to 58% in the comparative 2025 period. Steel production in key iron ore markets outside China grew by an estimated 2% year-on-year during Q3 2026. At the same time, seaborne iron ore supply increased by an estimated 1% year-on-year, with shipments from Australia and Guinea largely offset by lower supply from Brazil and Ukraine during the quarter. Freight rates remained elevated with the Saldanha to Qingdao route reaching a five-year high of US$32/t in September, taking the YTD 2026 average to US$23/t, reflecting tighter vessel availability and higher bunker fuel rates.
Kumba continued to demonstrate the value of its premium product portfolio and its ability to optimise product mix in response to high lump premia in the market. On a YTD 2026 basis, the lump:fine ratio improved to 68:32 (YTD 2025: 67:33), with an average iron content of 63.6% (YTD 2025: 64.0%). Kumba achieved an average YTD 2026 realised FOB export price of US$86/wmt (YTD 2025: US$94/wmt), representing a 9% premium to the average benchmark price of US$79/wmt (YTD 2025: US$84/wmt).
Update on projects
Sishen UHDMS
Execution of the Sishen UHDMS project continues to advance, with overall progress at ~60% and construction ~50% completed. Capex remains within the 2026 guidance of R3.0 - 3.2 billion, with total project capex unchanged at R11.2 billion.
The main tie-in remains on track for completion as scheduled before the end of 2026. Following commissioning, the converted UHDMS modules will operate in parallel with the existing DMS modules, providing processing flexibility and supporting production and sales guidance. The final conversion of the modules is expected as planned in 2028.
Sishen solar photovoltaic (PV) plant
Kumba announced on 23 July 2026, that the Company was entering into an offtake agreement with Envusa to receive renewable energy from a 63 MW solar PV plant that will be constructed at Sishen. Project execution is on track with the first piles (structures) for the solar panels expected to be delivered for construction before the end of the year. Upon project completion in 2028, together with Kolomela's wheeled energy supply, Kumba's total renewable energy penetration is expected to increase to ~45%.
Heavy mining fleet (HME) recapitalisation programme
In light of the current trading environment, we continue assessing our fleet recapitalisation programme through a risk-based, life cycle extension programme, informed by condition assessments and refurbishment capitalisation. This approach ensures that critical equipment is replaced where life extensions are not economically viable, and redundancy risk has been confirmed by the original equipment manufacturer. Detailed technical engineering work is underway on automation and decarbonisation benefits as part of the overall value-based decision criteria.
Full year 2026 guidance
Kumba production remains weighted to the first half of 2026 reflecting the tie-in of the UHDMS project in the second half of the year, with sales not expected to be impacted owing to the planned drawdown of finished stock. Subject to Transnet's logistics performance and the impact of the Middle East conflict on key input costs, Kumba's full year 2026 guidance is as follows:
| Guidance | FY2026 |
|---|---|
| Total sales (Mt) (wmt) | 35 - 37 |
| Total production (Mt) (wmt) | 31 - 33 |
| Sishen | ~22 |
| Kolomela | ~10 |
| Waste mining (Mt) (dmt) | 175 - 190 |
| Sishen | 135 - 145 |
| Kolomela | 40 - 45 |
| On-mine unit cost (R/t) (dmt) | |
| Sishen | 530 - 560 |
| Kolomela | 430 - 460 |
| C1 unit cost (US$/t) (wmt) | ~45 |
| Capital expenditure (Rbn) | 13.2 - 14.2 |
This announcement contains forward-looking statements which are based on the Company’s current beliefs and expectations about future events. The financial information contained in this announcement has not been reviewed and reported on by the Company's external auditors.
Volumes excluding waste stripping, and on-mine unit costs, are reported as wmt. Product is shipped with ~1.5% moisture. The Group's sales volumes could differ to Kumba's results, due to sales to other Group companies. The foreign exchange rate used for calculating the 2026 cost guidance is ~R16.50/US$.
Production and sales volumes referred to for the period ended 30 September 2026 are 100% of Sishen Iron Ore Company Proprietary Limited (SIOC), and attributable to shareholders of Kumba as well as to the non-controlling interests in SIOC.
Johannesburg
20 October 2026
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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