Wrap Text
Kumba production and sales report for the third quarter ended 30 September 2026
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
(“Kumba” or “the Company”)
Kumba production and sales report for the third quarter ended 30 September 2026
Kumba’s Chief Executive, Mpumi Zikalala, said: “We delivered a resilient third quarter performance, supported by safe and
focused operational and project execution. As planned, iron ore production was lower, largely due to the ultra -high-dense-
media-separation (UHDMS) project tie-in at Sishen, while sales were supported by the drawdown of finished stock. Production
and sales remain on track to achieve the full year guidance of 31 - 33 Mt and 35 - 37 Mt, respectively.
“Market conditions softened through the quarter as weaker Chinese steel production, compressed mill margins and strong
seaborne supply weighed on prices. Despite these headwinds, Kumba continued to realise a premium to benchmark prices,
underpinned by the quality of its lump iron ore products and its diversified customer base. Additionally, the Company is
progressing its Full Potential Programme aimed at unlocking value, underpinned by disciplined cost and capital management.
“The investment in the R11.2 billion UHDMS project at Sishen remains a key driver of Kumba’s long-term competitiveness. The
main tie-in is progressing safely and according to plan, with completion expected before the end of 2026 and capital
expenditure (capex) remaining within guidance. Once the final conversion of the modules is completed as planned in 2028,
UHDMS will increase the proportion of Sishen’s premium-grade iron ore products, improve resource utilisation, reduce waste
mining and extend Sishen’s mine life.”
Overview
- The total recordable injury frequency rate (TRIFR) improved to 0.85 YTD 2026 (YTD 2025: 0.97) reflecting continued progress
from our safety interventions.
- Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), largely due to the temporary shutdown of the Sishen
dense-media-separation (DMS) plant during the UHDMS main tie-in.
- Total sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), with shipping facilitated by high port stock levels.
- Finished stock of 4.8 Mt (Q2 2026: 7.0 Mt), comprising 2.9 Mt on-mine and 1.9 Mt at the Saldanha Bay Port reflect the
planned drawdown needed to supplement sales during the Sishen DMS plant shutdown.
- Achieved an average YTD realised FOB export iron ore price of US$86/wmt (YTD 2025: US$94/wmt), a 9% premium above
the average benchmark price of US$79/wmt (YTD 2025: US$84/wmt).
% % %
Q3 Q3 YTD
Q3 Q2 Q1 Q4 Q3 vs vs YTD YTD vs
‘000 tonnes 2026 2026 2026 2025 2025 Q3 Q2 2026 2025 YTD
Waste mining 49,015 44,322 39,158 41,088 44,175 11 11 132,495 124,477 6
Production 7,500 8,844 8,842 8,590 9,247 (19) (15) 25,186 27,494 (8)
Sales 9,955 9,246 9,311 8,705 9,625 3 8 28,512 28,333 1
Kumba waste 49,015 44,322 39,158 41,088 44,175 11 11 132,495 124,477 6
Sishen 38,084 33,781 30,642 32,520 36,744 4 13 102,507 104,716 (2)
Kolomela 10,931 10,541 8,516 8,568 7,431 47 4 29,988 19,761 52
Kumba production by
mine 7,500 8,844 8,842 8,590 9,247 (19) (15) 25,186 27,494 (8)
Sishen 4,947 6,479 6,257 6,560 6,347 (22) (24) 17,683 18,729 (6)
Kolomela 2,553 2,365 2,585 2,030 2,900 (12) 8 7,503 8,765 (14)
Kumba sales 9,955 9,246 9,311 8,705 9,625 3 8 28,512 28,333 1
Lump 7,004 6,132 6,154 5,917 6,391 10 14 19,290 18,936 2
Fines 2,951 3,114 3,157 2,788 3,234 (9) (5) 9,222 9,397 (2)
Safety performance
Kumba extended its fatality-free production record of ten years at Sishen and three years at Kolomela, while the 2026 YTD
TRIFR improved to 0.85 (YTD 2025: 0.97).
Safety performance benefited from the continued embedding of Kumba's Fatal Risk Management programme, enhanced
contractor engagement and stronger accountability across all work fronts. Targeted stops for safety interventions have
reinforced awareness of critical risks, particularly stored-energy hazards. Together with the UHDMS Project Safety Observer
Programme, these initiatives continue to strengthen safety culture, improve risk awareness, and reduce incident frequency.
Mining, production, and unit costs
Kumba’s full year 2026 waste mining guidance has been revised to 175 - 190 Mt (previously 180 - 195 Mt), while the
production guidance remains unchanged at 31 – 33 Mt.
Total waste mining increased by 11% to 49.0 Mt (Q3 2025: 44.2 Mt). Sishen’s waste mining rose by 4% to
38.1 Mt (Q3 2025: 36.7 Mt), supported by improved equipment efficiency and operating times. Waste mining at Kolomela
increased by 47% to 10.9 Mt (Q3 2025: 7.4 Mt), driven by the planned ramp-up of higher strip ratio areas at Kapstevel South.
However, the residual effects of the heavy rainfall and flooding in Q2 2026 continued to constrain performance. As a result,
Kolomela’s full year waste mining guidance has been revised to 40 - 45 Mt (previously 45 - 50 Mt), while Sishen’s guidance
remains unchanged at 135 - 145 Mt.
Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), in line with Sishen’s 22% lower production of 4.9 Mt (Q3
2025: 6.3 Mt) following the planned DMS plant shutdown to enable the UHDMS main tie-in. This was partly offset by a 24%
increase in Sishen’s JIG plant production to 3.1 Mt (Q2 2026: 2.5 Mt). Kolomela’s production of 2.6 Mt was 12% lower (Q3
2025: 2.9 Mt) due to plant feedstock availability arising from the above-mentioned mining constraints. The sequential
improvement in Kolomela’s production, which increased by 8% from Q2 2026, supports the full year production guidance of
~10 Mt. Sishen’s guidance remains unchanged at ~22 Mt.
C1 and on-mine unit cost guidance for the full year 2026 is unchanged, subject to the impact of the Middle East conflict on key
input costs. Sishen is expected to deliver unit costs towards the upper end of its 2026 guidance range of R530 – 560/tonne,
while Kolomela’s unit cost is expected to end the year at the lower end of the R430 – 460/tonne range. Our C1 unit cost
guidance remains at ~US$45/tonne (based on a foreign exchange rate of R16.50/US$).
Logistics, sales, and the market environment
Ore railed to port decreased by 8% to 9.4 Mt (Q3 2025: 10.2 Mt), largely reflecting the impact of a derailment which reduced
volumes railed by 0.4 Mt. Despite this, sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), supported by high finished stock
levels at Saldanha Bay Port enabling efficient ship loading throughput.
Total finished stock decreased to 4.8 Mt (Q2 2026: 7.0 Mt), reflecting the planned utilisation of stock to supplement sales
during the DMS shutdown period. This comprised 2.9 Mt of on-mine stock (Q2 2026: 4.8 Mt) and 1.9 Mt at Saldanha Bay Port
(Q2 2026: 2.2 Mt). Sales volumes are expected to be at the upper end of the 35 – 37 Mt guidance range for the year.
During the 10-day logistics maintenance shutdown in October 2026, 22km of rail line was replaced. To date, this brings to
completion 33% of the 517km replacement programme, resulting in the lifting of 40% of the speed restrictions along the Ore
Export Channel. At Saldanha Bay Port, refurbishment work on four stacker reclaimers and two ship loaders were completed,
while commissioning of Tippler 3 is underway.
Iron ore prices remained under pressure as elevated coking coal costs weighed on Chinese steel mill profitability. Average bl ast
furnace profitability at the 247 mills surveyed by Mysteel, declined to as low as 7% by the end of
Q3 2026, relative to 58% in the comparative 2025 period. Steel production in key iron ore markets outside China grew by an
estimated 2% year-on-year during Q3 2026. At the same time, seaborne iron ore supply increased by an estimated 1% year-
on-year, with shipments from Australia and Guinea largely offset by lower supply from Brazil and Ukraine during the quarter.
Freight rates remained elevated with the Saldanha to Qingdao route reaching a five-year high of US$32/t in September, taking
the YTD 2026 average to US$23/t, reflecting tighter vessel availability and higher bunker fuel rates.
Kumba continued to demonstrate the value of its premium product portfolio and its ability to optimise product mix in
response to high lump premia in the market. On a YTD 2026 basis, the lump:fine ratio improved to 68:32 (YTD 2025: 67:33),
with an average iron content of 63.6% (YTD 2025: 64.0%). Kumba achieved an average YTD 2026 realised FOB export price of
US$86/wmt (YTD 2025: US$94/wmt), representing a 9% premium to the average benchmark price of US$79/wmt (YTD 2025:
US$84/wmt).
Update on projects
Sishen UHDMS
Execution of the Sishen UHDMS project continues to advance, with overall progress at ~60% and construction ~50%
completed. Capex remains within the 2026 guidance of R3.0 - 3.2 billion, with total project capex unchanged at R11.2 billion.
The main tie-in remains on track for completion as scheduled before the end of 2026. Following commissioning, the converted
UHDMS modules will operate in parallel with the existing DMS modules, providing processing flexibility and supporting
production and sales guidance. The final conversion of the modules is expected as planned in 2028.
Sishen solar photovoltaic (PV) plant
Kumba announced on 23 July 2026, that the Company was entering into an offtake agreement with Envusa to receive
renewable energy from a 63 MW solar PV plant that will be constructed at Sishen. Project execution is on track with the first
piles (structures) for the solar panels expected to be delivered for construction before the end of the year. Upon project
completion in 2028, together with Kolomela's wheeled energy supply, Kumba's total renewable energy penetration is
expected to increase to ~45%.
Heavy mining fleet (HME) recapitalisation programme
In light of the current trading environment, we continue assessing our fleet recapitalisation programme through a risk-based,
life cycle extension programme, informed by condition assessments and refurbishment capitalisation. This approach ensures
that critical equipment is replaced where life extensions are not economically viable, and redundancy risk has been confirmed
by the original equipment manufacturer. Detailed technical engineering work is underway on automation and decarbonisation
benefits as part of the overall value-based decision criteria.
Full year 2026 guidance
Kumba production remains weighted to the first half of 2026 reflecting the tie-in of the UHDMS project in the second half of
the year, with sales not expected to be impacted owing to the planned drawdown of finished stock. Subject to Transnet's
logistics performance and the impact of the Middle East conflict on key input costs, Kumba's full year 2026 guidance is as
follows:
Guidance FY2026
Total sales (Mt) (wmt) 35 - 37
Total production (Mt) (wmt) 31 - 33
Sishen ~22
Kolomela ~10
Waste mining (Mt) (dmt) 175 - 190
Sishen 135 - 145
Kolomela 40 - 45
On-mine unit cost (R/t) (dmt)
Sishen 530 - 560
Kolomela 430 - 460
C1 unit cost (US$/t) (wmt) ~45
Capital expenditure (Rbn) 13.2 - 14.2
This announcement contains forward-looking statements which are based on the Company’s current beliefs and expectations
about future events. The financial information contained in this announcement has not been reviewed and reported on by the
Company's external auditors.
Volumes excluding waste stripping, and on-mine unit costs, are reported as wmt. Product is shipped with ~1.5% moisture. The
Group's sales volumes could differ to Kumba's results, due to sales to other Group companies. The foreign exchange rate used
for calculating the 2026 cost guidance is ~R16.50/US$.
Production and sales volumes referred to for the period ended 30 September 2026 are 100% of Sishen Iron Ore Company
Proprietary Limited (SIOC), and attributable to shareholders of Kumba as well as to the non-controlling interests in SIOC.
Johannesburg
20 October 2026
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Company Secretary
Fazila Patel
fazila.patel@angloamerican.com
Mobile: +27 83 297 2293
Investors Media
Penny Himlok Melangini Pillay
penny.himlok@angloamerican.com melangini.pillay@angloamerican.com
Mobile: +27 82 781 1888 Mobile: +27 76 959 2019
Notes to editors:
Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality iron ore
to the global steel industry. Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the Northern Cape
Province. Kumba exports iron ore to customers around the globe including in China, Japan, South Korea and a number of
countries in Europe and the Middle East and North Africa region.
www.angloamericankumba.com
Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore and
crop nutrients – future-enabling products that are essential for decarbonising the global economy, improving living standards,
and food security. Our portfolio of world-class operations and outstanding resource endowments offers value-accretive
growth potential across all three businesses, positioning us to deliver into structurally attractive major demand growth tren ds.
Our integrated approach to sustainability and innovation drives our decision-making across the value chain, from how we
discover new resources to how we mine, process, move and market our products to our customers – safely, efficiently and
responsibly. Our Sustainable Mining Plan commits us to a series of stretching goals over different time horizons to ensure we
contribute to a healthy environment, create thriving communities and build trust as a corporate leader. We work together
with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for our
shareholders, for the benefit of the communities and countries in which we operate, and for society as a whole. Anglo
American is re-imagining mining to improve people’s lives.
Anglo American is currently implementing a number of major structural changes to unlock the inherent value in its portfolio
and thereby accelerate delivery of its strategic priorities of Operational excellence, Portfolio simplification, and Growth. The
sale of our steelmaking coal and nickel businesses, the separation of our iconic diamond business (De Beers) continue to
progress and, once completed, will focus Anglo American on its world-class resource asset base in copper, premium iron ore
and crop nutrients.
www.angloamerican.com
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Forward looking statements
This document includes forward-looking statements. All statements other than statements of historical fact included in this
document may be forward-looking statements, including, without limitation, those regarding Kumba’s financial position,
business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations,
prospects and projects (including development plans and objectives relating to Kumba’s products, production forecasts and
Ore Reserve and Mineral Resource positions), the anticipated benefits of mergers and acquisitions (including any assessment
or quantification of potential synergies) and sustainability performance related (including environmental, social and
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the use of words such as “believe”, “expect”, “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “may”, “should”, “will”,
“target” and words of similar meaning. By their nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Kumba's or industry
results to be materially different from any future results, performance or achievements expressed or implied by such forward -
looking statements.
Such forward-looking statements are based on numerous assumptions regarding Kumba’s present and future business
strategies and the environment in which Kumba will operate in the future. Important factors that could cause Kumba’s actual
results, performance or achievements to differ materially from those in the forward-looking statements include, among
others, levels of actual production during any period, levels of global demand and product prices, unanticipated downturns in
business relationships with customers or their purchases from Kumba, mineral resource exploration and project development
capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the
ability to identify, consummate and integrate pending or potential acquisitions, disposals, investments, mergers, demergers,
syndications, joint ventures or other transactions, the effects of global pandemics and outbreaks of infectious diseases, the
impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate
change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and
processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products
profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and
adoption of new or competing technology, challenges in realising resource estimates or discovering new economic
mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of
sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest,
uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder
requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitur es,
competitive pressures and the actions of competitors, activities by courts, regulators and governmental authorities such as in
relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Kumba’s assets and changes in
taxation or safety, health, environmental or other types of regulation in the countries where Kumba operates, conflicts over
land and resource ownership rights and such other risk factors identified in Kumba’s most recent Annual Report. Forward -
looking statements should therefore be construed in light of such risk factors, and undue reliance should not be placed on
forward-looking statements. These forward-looking statements speak only as of the date of this document. Kumba expressly
disclaims any obligation or undertaking (except as required by applicable law, rules or regulations) to release publicly any
updates or revisions to any forward-looking statement contained herein to reflect any change in Kumba’s expectations with
regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this document should be interpreted to mean that future earnings per share of Kumba will necessarily match or
exceed its historical published earnings per share. Certain statistical and other information included in this document is
sourced from third party sources (including, but not limited to, externally conducted studies and trials). As such it has not
been independently verified and presents the views of those third parties, but may not necessarily correspond to the views
held by Kumba and Kumba expressly disclaims any responsibility for, or liability in respect of, such information.
No Investment Advice
This document has been prepared without reference to your particular investment objectives, financial situation, taxation
position and particular needs. It is important that you view this document in its entirety. If you are in any doubt in relati on to
these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other
independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK,
or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002 or under any other applicable
legislation).
Alternative Performance Measures
Throughout this document a range of financial and non-financial measures are used to assess our performance, including a
number of financial measures that are not defined or specified under IFRS (International Financial Reporting Standards), which
are termed ‘Alternative Performance Measures’ (APMs). Management uses these measures to monitor the Company's
financial performance alongside IFRS measures to improve the comparability of information between reporting periods and
businesses. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of
financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all
companies, including those in the Company’s industry. Accordingly, it may not be comparable with similarly titled measures
and disclosures by other companies.
©Kumba Iron Ore Limited 2026. ™ and ™ are trade marks of Kumba Iron Ore Limited.
©Anglo American Services (UK) Ltd 2026. ™ and ™ are trade marks of Anglo American Services (UK) Ltd.
Date: 20/10/2026 08:09:00
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