27 Jul - 5 min read

Extracts from the reviewed interim results for the period ended 30 June 2021 and interim cash dividend declaration

Extracts from the reviewed interim results for the period ended 30 June 2021 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 2021 AND INTERIM CASH DIVIDEND DECLARATION

Themba Mkhwanazi, Chief Executive of Kumba, said:
"In the first half, we have marked five years of fatality-free production, while providing comprehensive WeCare
Covid-19 support. In these challenging times, we continue to prioritise the safety, health and livelihoods of our
colleagues and communities. Kumba is working with the rest of Anglo American's South African businesses, to address the
impact of the recent social unrest, building on our WeCare programme.

"Despite logistical constraints and weather disruptions, we delivered a strong operational and financial performance, with 
production increasing by 12% to 20.4Mt. Our high-quality products, combined with a constructive iron ore market, resulted 
in an exceptional EBITDA of R44.4 billion, enabling us to announce an interim cash dividend of R72.70 per share.

"We are maximising the value of our products and positioning our business for the future, to the benefit of all our 
stakeholders."

KEY FEATURES

Continuing to deliver shareholder value
- Attributable free cash flow of R31.5 billion
- ROCE of 225%
- Interim cash dividend of R72.70 per share

Safety and sustainability is integral to our business
- Over 5 years of fatal-free production
- Over six years without any level 3-5 environmental incidents
- R12 million in WeCare Covid-19 community support

Maximising returns and positioning for the future
- Average realised FOB export price of US$216/wmt, 32% above benchmark
- Robust EBITDA margin of 70%
- Closing net cash of R40.7 billion

REVENUE FOR THE PERIOD ENDED
                                       30 June     30 June         %    31 December
Rand million                              2021        2020    change           2020
Revenue                                 63,616      31,579       101         80,104

EARNINGS PER SHARE FOR THE PERIOD ENDED
                                       30 June     30 June         %    31 December
Rand per share                            2021        2020    change           2020
Earnings:                                                               
Basic                                    72.82       26.21       178          71.03
Diluted                                  72.60       26.15       178          70.79
Headline earnings:                                                            
Basic                                    72.78       26.19       178          71.07
Diluted                                  72.56       26.13       178          70.83
Dividend:                                                                     
Interim                                  72.70       19.60       271          19.60
Final                                      n/a         n/a                    41.30
                                                                       
SALIENT FEATURES AND OPERATING STATISTICS FOR THE PERIOD ENDED
                                       30 June     30 June         %    31 December
Rand million                              2021        2020    change           2020
Market information                                
Closing share price (Rand)                 641         463        38            623
Market capitalisation                             
(Rand million)                         206,325     149,158        38        200,598
Net asset value attributable to                   
owners of Kumba (Rand per share)        178.45      123.64        44         147.31
Operating statistics ('000 tonnes)*                
Production                              20,367      18,219        12         37,620
Sishen                                  13,944      12,565        11         25,764
Kolomela                                 6,423       5,654        14         11,856
Sales                                   19,515      18,918         3         40,308
Export sales                            19,408      18,560         5         39,950
Domestic sales                             107         358       (70)           358
Sishen mine FOR unit cost                         
(Rand per tonne)                                  
Unit cost                               582.58      469.27        24         531.60
Cash cost                               447.95      325.40        38         361.79
Kolomela mine FOR unit cost                       
(Rand per tonne)                                  
Unit cost                               444.68      427.45         4         447.80
Cash cost                               315.35      306.40         3         304.31
* Volumes, excluding waste stripping, are reported as wet metric tonnes. Product is shipped with 
  approximately 1.6% moisture. The comparatives have been restated as Kumba previously reported 
  on a dry basis.
  
NOTICE OF INTERIM CASH DIVIDEND

At its Board meeting on 26 July 2021, the directors approved a gross interim cash dividend of 
7,270 cents per share on the ordinary shares from profits accrued during the period ended 
30 June 2021. 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 5,816 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, 27 July 2021
Last day for trading to qualify and participate in the interim dividend    Tuesday, 17 August 2021
Trading ex-dividend commences                                            Wednesday, 18 August 2021
Record date                                                                 Friday, 20 August 2021
Dividend payment date                                                       Monday, 23 August 2021

Share certificates may not be dematerialised or rematerialised between Wednesday, 18 August 2021 and 
Friday, 20 August 2021, both days inclusive.

EXTRACTS FROM THE REVIEWED INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2021

This unreviewed short form announcement is the responsibility of the directors of the Company. 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
http://www.angloamericankumba.com/investors/financial-results-centre.aspx and at
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/KIO/KumbaInt21.pdf

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

The interim results announcement is also available for inspection at the Company's registered office 
and the offices of our sponsors during normal business hours and is available at no charge. Alternatively, 
copies of the full announcement may be requested from the Company's investor relations department 
(penny.himlok@angloamerican.com).


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

Directors
Non-executive: TP Goodlace (British/South African) (Chairman), MS Bomela, SG French (Irish), MA Jenkins, 
NB Langa-Royds, SS Ntsaluba, BP Sonjica, MJ Tsele, DG Wanblad
Executive: TM Mkhwanazi (Chief Executive), BA Mazarura (Zimbabwean) (Chief Financial Officer)

Registered office
Centurion Gate Building 2B, 124 Akkerboom Road, Centurion, 0157, South Africa

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

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

For more information please visit: http://www.angloamericankumba.com

27 July 2021

Date: 27-07-2021 07:05:00
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