Kumba Iron Ore eyes growth despite market challenges

KUMBA Iron Ore said on Tuesday that it remained poised for growth, fortified by robust demand for steel and high-quality iron ore products, despite a landscape marked by global economic uncertainty and shifting market dynamics.

- TAWANDA KAROMBO

This optimism was articulated by Kumba's CEO Mpumi Zikalala following the company’s announcement of an impressive interim cash dividend of R5.3 billion.

Kumba declared an interim dividend of R16.60 per share for the period ending 30 June 2025 despite revenues declining by 4% to R34.5bn after basic headline earnings per share slightly fell to R22.26.

Half-year earnings before interest, depreciation and amortisation (Ebitda) amounted to R16bn.

The dip in revenues has been attributed to a 6% reduction in the average realised Free On Board (FOB) iron ore export price to $91 per wet metric ton compared to the same period last year as well as a stronger exchange rate.

However, the Anglo American-owned firm earned a premium of $7 per wet metric ton during the period compared to $1 in 2024. Shares in Kumba Iron Ore surged 4.9% to R310.16 in afternoon trade on the JSE on Tuesday.