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KUMBA IRON ORE LIMITED - Extracts from the provisional audited results for the year ended 31 December 2020 and cash dividend declaration

2021/02/23 07:05:00

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                    Extracts from the provisional audited results for the year ended 31 December 2020 and 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')


Strong earnings growth of 40%
- Attributable free cash flow of R20.7 billion up by 21%
- ROCE of 109% up from 83%
- Final cash dividend of R41.30 per share, total cash dividend of R60.90 per share

Creating enduring value
- Four years and seven months of fatality-free production
- No occupational diseases
- Over five years without any level 3-5 environmental incidents
- R60 billion of shared value, including R93 million of Covid-19 community support

Resilient and sustainable business                        
-  Average realised FOB export price of US$115/tonne
-  Cost savings of R1.3 billion, keeping C1 costs at US$31/t
-  Protected EBITDA margin of 57%, up from 52%
-  Sishen life extension potential to 2039 with R3.6 billion UHDMS project approved in February 2021


Themba Mkhwanazi, Chief Executive of Kumba, said: 
'Kumba delivered EBITDA growth of 37% while keeping our commitment on health and safety and supporting our communities
as we navigated exceptional conditions.  

We capitalised on our product quality, a higher average realised price of US$115/tonne and costs savings of 
R1.3 billion to deliver a record EBITDA of R45.8 billion and R20.7 billion of free cash flow, supporting the Board's 
decision to declare a final cash dividend of R41.30 per share. 

Since 2018, Kumba's EBITDA margin has improved from 45% to 57% and we have converted 30% of additional reserves. 
Sishen has life extension potential to 2039 with the approval of the R3.6 billion UHDMS project in February 2021. 

Kumba's consistent and focused delivery of its Tswelelopele strategy, strong balance sheet and capital discipline
enables us to continue creating enduring value for all of our stakeholders.'

for the year ended                                                      31 Dec       31 Dec           %
Rand million                                                              2020         2019      change 
Revenue                                                                 80,104       64,285          25

Earnings per share                                        
for the year ended                                                      31 Dec       31 Dec           %     
Rand per share                                                            2020         2019      change    
Basic                                                                    71.03        50.73          40    
Diluted                                                                  70.79        50.58          40    
Headline earnings                                                                                          
Basic                                                                    71.07        50.88          40    
Diluted                                                                  70.83        50.73          40    
Interim                                                                  19.60        30.79         (36)   
Final                                                                    41.30        15.99         158    

Salient features and operating statistics                                                                  
for the year ended                                                                                         
                                                                        31 Dec       31 Dec           %     
                                                                          2020         2019      change    
Market information                                                                                         
Closing share price (Rand)                                                 623          417          49    
Market capitalisation (Rand million)                                   200,598      134,326          49    
Net asset value attributable to owners of Kumba (Rand per share)        147.31       112.49          31    
Operating statistics ('000 tonnes)                                                                         
Production                                                              37,021       42,388         (13)   
Sishen                                                                  25,353       29,175         (13)   
Kolomela                                                                11,668       13,213         (12)  
Sales                                                                   39,665       42,218          (6)   
Export sales                                                            39,313       40,038          (2)   
Domestic sales                                                             352        2,180         (84)   
Sishen FOR unit cost (Rand per tonne)                                                                      
Unit cost                                                               531.60       467.27          14    
Cash cost                                                               361.79       345.11           5    
Kolomela FOR unit cost (Rand per tonne)                                                                    
Unit cost                                                               447.80       374.40          20    
Cash cost                                                               304.31       270.38          13    

Notice of final cash dividend
At its Board meeting on 22 February 2021, the directors approved a gross final cash dividend of 4,130 cents per 
share on the ordinary shares from profits accrued during the period ended 31 December 2020.
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 subject to withholding 
tax at a rate of 20% amounts to 3,304.00000 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, 23 February, 2021 
Last day for trading to qualify and participate in the final dividend:       Tuesday, 9 March, 2021    
Trading ex-dividend commences:                                            Wednesday, 10 March, 2021
Record date:                                                                 Friday, 12 March, 2021
Dividend payment date:                                                       Monday, 15 March, 2021

Share certificates may not be dematerialised or rematerialised between Wednesday, 10 March 2021 and 
Friday, 12 March 2021 both days inclusive. 

Any change of address or dividend instructions must be provided by the last day for trading.

Extracts from the provisional audited annual results for the year ended 31 December 2020 
This unaudited short form announcement is the responsibility of the directors of the Company. The information
disclosed is only a summary of the information in the full audited announcement and does not contain full or 
complete details. The full annual results announcement should be considered for any investment decisions. 
The full annual results announcement for Kumba has been released on SENS and is available for viewing at 
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/KIO/KumbaFY20.pdf and is available on the Company's website 
www.angloamericankumba.com/investors/financial-results-centre.aspx. The full results announcement is also available 
for inspection at the Company's registered office 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). The consolidated and Company annual financial statements were audited by
PricewaterhouseCoopers Inc. who issued an unmodified audit opinion on these financial statements. 

Their audit opinion, together with the accompanying financial statements, can be viewed on the Company's 
website www.angloamericankumba.com/investors/financial-results-centre.aspx which also provides more details 
on the key audit matter on page 14 of the annual financial statements, being the environmental rehabilitation 
and decommissioning provisions. 

Any reference to future financial performance included in this announcement has not been audited or reported on by 
the Company's external auditors.

Non-executive: MSV Gantsho (Chairman), MS Bomela, SG French (Irish), TP Goodlace (British/South African), MA Jenkins,
NB Langa-Royds, SS Ntsaluba, BP Sonjica, DG Wanblad  Executive: TM Mkhwanazi (Chief Executive), 
BA Mazarura (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: RAND MERCHANT BANK (A division of FirstRand Bank Limited)

For more information please visit: www.angloamericankumba.com

23 February 2021

Date: 23-02-2021 07:05:00
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