Kumba’s iron production fell marginally due the first of two planned 10-day maintenance shutdowns by Transnet Freight Rail in the six months to June 30, 2026.
Image: Henk Kruger | Independent Newspapers
Kumba Iron Ore’s headline earnings per share (HEPS) are likely to fall between 39% and 43% in the six months to June 30, due to a stronger rand and lower prices, the group said Tuesday.
The warning of lower profit saw the share price of the Anglo-American subsidiary fall by 2,49% on the JSE on Monday morning, a price that had also fallen by 19.3% over a 12-month period.
In a trading statement, the open-pit mining group said HEPS is expected to be between R12,68 and R13,61 for the six-month period. Interim results are expected to be released on July 23, 2026.
The operational performance is in spite of challenging operating conditions with the heaviest rainfall in many decades experienced during the second quarter. Total production was therefore 3% lower, following a solid performance at Sishen, offset by planned lower production at Kolomela.
Sales volumes were 1% lower, largely due to the first of two planned 10-day Transnet logistics maintenance shutdowns in May 2026.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were, however, negatively impacted by the rand strengthening by 11% to the US dollar, and a marginally lower US dollar average export iron ore price.
In addition, EBITDA fell due to a once-off payment from Transnet in relation to logistics performance, which was received in the six months ended June 30, 2025.
These factors accounted for some 96% of the movement in EBITDA. EBITDA is expected to be between R10.43m and R11.19m, reflecting a decrease of between 30% and 35%.
Headline earnings for the period are likely to be between R4.06m and R4.36m, a decrease of between 39% and 43% from the comparative period.
Basic earnings are expected to be between R3.98m and R4.27m, reflecting a decrease of between 40% and 44% from the comparative period.
A sharp drop in iron ore production saw South Africa’s monthly mining output fall for the first time in six months in May, according to Statistics SA data.
Production in the mining sector was 5,4% lower, and this had followed an 8% increase in April. Iron ore output was down 12.7% year-on-year.
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