Kumba Iron Ore reported a 41% decline in earnings for the first half of its 2026 financial year, citing a challenging external environment and difficult operating conditions.
The miner released its interim results for the six months ended 30 June 2026 on Tuesday.
The company maintained a strong balance sheet, reporting EBITDA of R10.9 billion and cash generated from operations of R10.1 billion.
Operationally, Kumba achieved an average realised export price of US$90 per wet metric tonne, 8% above the benchmark iron ore price. However, external headwinds contributed to a rise in its C1 unit cost to US$46 per wet metric tonne.
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Interim dividend
The board declared a gross interim dividend of R7.90 per ordinary share from income reserves, amounting to a total payout of R2.5 billion.
Chief Executive Mpumi Zikalala said the company generated R24 billion in shared value for stakeholders during the period.
“The strength of our balance sheet and cash generated from operations of R10.1 billion, together with our confidence in the long-term fundamentals of our business, enabled the Board to declare an interim dividend of R2.5 billion, of which our empowerment partners will receive R0.8 billion,” she said.
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The dividend is subject to a 20% dividend withholding tax for shareholders who do not qualify for an exemption or a reduced rate. This results in a net dividend of 632 cents per share. The company’s issued share capital at the declaration date comprised 322,085,974 ordinary shares.
“We remain focused on cost optimisation, capital allocation discipline and enhancing cash generation to support sustainable shareholder returns,” Zikalala said.
The miner also maintained its strong safety performance, achieving more than 10 years of fatality-free production at its Sishen mine and more than three years at Kolomela. During the period, Kolomela also began receiving wheeled renewable electricity as part of the company’s decarbonisation strategy.
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