Kumba Iron Ore ( (KUMBF) ) has released its Q2 earnings. Here is a breakdown of the information Kumba Iron Ore presented to its investors.
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Kumba Iron Ore Limited, a leading supplier of high-quality iron ore to the global steel industry, has reported its interim financial results for the first half of 2025, showcasing resilience amidst market volatility. The company, known for its purpose-led and values-driven approach, continues to focus on operational excellence and sustainable value creation.
Kumba’s financial performance highlights include an EBITDA of R16.0 billion, a 3% increase from the previous year, and an EBITDA margin of 46%. The company achieved a realized iron ore price 8% above the benchmark, contributing to a free cash flow of R7.9 billion. Despite a 4% decrease in revenue due to lower iron ore prices and a stronger Rand, Kumba maintained a robust balance sheet with a net cash position of R16.1 billion.
Operationally, Kumba reported a 3% increase in sales volumes to 18.7 million tonnes, with a significant portion directed to China. The company continues to invest in its UHDMS project at Sishen, which is expected to enhance production flexibility and quality. Kumba’s commitment to safety remains strong, with more than nine years of fatality-free production at Sishen.
Looking forward, Kumba remains focused on cost optimization and operational efficiency, with a production guidance of 35-37 million tonnes for 2025. The company aims to maintain its unit cost targets while progressing with strategic projects like the UHDMS. Kumba’s management is optimistic about delivering long-term value to stakeholders through disciplined capital allocation and sustainable practices.