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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 07:05:00Download PDF Stock report
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')
EXTRACTS FROM THE PROVISIONAL AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
AND CASH DIVIDEND DECLARATION
KEY FEATURES
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
KUMBA DELIVERS A RECORD EBITDA OF R45.8 BILLION
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.'
Revenue
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
Earnings
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
Dividend
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.
Directors:
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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