Kumba revenue slumps, but miner upbeat about Transnet rail corridor turnaround

Kumba Iron Ore has reported a fall in headline earnings per share (HEPS) in its annual results for the twelve months ended 31 December 2024.

HEPS came in at R38.94 for the year, compared with R70.80 per share in the prior year.

The miner's full-year earnings dropped 21% to just over R68.5 billion.

However, in conversation with Stephen Grootes, Kumba CEO Mpumi Zikalala expresses optimism about the future.

While the large drop in revenue is partly attributable to weaker iron ore prices, challenges with Transnet's key railway from Sishen to Saldanha Bay also played a key role.

Looking ahead, Zikalala highlights that Kumba, as part of the Ore User’s Forum, will be working closely with government and Transnet in support of logistics network reform.

This prioritises the restoration of the ore export corridor.

"As part of the Forum, we have completed together with Transnet, the independent technical assessment. What was pleasing as part of that, Transnet was absolutely transparent around the essence of looking at everything around this channel and figuring out what it is that needs to be fixed."

Mpumi Zikalala, CEO - Kumba Iron Ore

"Coming out of that, we're now together working on the ore corridor restoration programme and again, there is absolute transparency from Transnet."

Mpumi Zikalala, CEO - Kumba Iron Ore

Zikalala acknowledges that this programme will take some time (around 18 months), just as it took Kumba time to see a reduction in Transnet's performance.

She also highlights that government is showing some 'real movements' around both applicable policy and structural reforms, which is positive not only for Kumba but the country as a whole.

Scroll up to the audio player to listen to the interview