Kumba Iron Ore reports steady production and sales growth on improved rail conditions

KUMBA Iron Ore's operational performance continues to improve, and it has made progress on the ultrahigh-dense-media separation (UHDMS) project to increase the premium proportion of production and enhance margins.

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This was according to Kumba’s CE Mpumi Zikalala, who said in a production report and trading statement for the six months to June 30 that total production was flat at 18.2 million tons (Mt), and there was an increase in sales on the back of improved logistics stability. “As a result, we have maintained our full-year 2025 guidance at 35 - 37 Mt for both production and sales,” she said.

Headline earnings for the half-year were likely to be between R6.84 billion and R7.34bn, varying by between 4% and 3% from the previous six months ended June 30, 2024.

Headline earnings a share were likely to be between R21.33 and R22.89, varying between 4% and 3% from the comparative period's R22.27.

The earnings for the period were largely attributable to a lower average realised free-on-board export iron ore price and a strong currency, partly offset by cost optimisation initiatives.