Wrap Text
Extracts from the reviewed interim results for the period ended 30 June 2023 and interim cash dividend declaration
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: http://www.angloamericankumba.com
Date: 25-07-2023 07:05:00
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