Wrap Text
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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