Kumba reports strong 2025 performance, as Transnet rail performance improves

Kumba Iron Ore delivered a strong performance for the year to end-December 2025.

CEO Mpumi Zikalala said this was marked by an improved realised price, marginal sales growth and disciplined capital allocation.

The miner reported a profit increase of 18%, with headline earnings per share rising to R46.

It was also able to increase sales by 2% to 37 million tons, helped on the logistics side by Transnet's improved rail and port performance.

The company declared a cash dividend of R15.43 per share. Combined with its interim dividend of R16.60, the total dividends for the year amounted to R32.03 per share, a drop of 22% from 2024.

Supported by a resilient iron ore market, Kumba achieved an average realised price of $95/wmt (wet metric tonne), 12% above the benchmark price.

In conversation with Stephen Grootes, Zikalala says the fact that they are able to earn a premium above the benchmark even when markets are depressed, can be attributed to the quality of iron ore Kumba produces.

She also highlights the quality of the customer relationships they foster.

"What we see is that we are able to conclude long-term contracts with our customers in all the various regions. And the relationships we have extend beyond just the normal trading - our customers sometimes visit our mines to get an understanding of what it is we do to supply them with tailor-made solutions.

We do feel it when markets become softer, but relationships with our customers still allow us to continue driving for further value and building alongside with them."

Although markets were softer in 2025, they still performed better than expected, Zikalala says.

Kumba expects the pressure to continue in 2026, however their long-term view for global demand remains positive.

"This is driven by structural forces incluing economic develo[ment, population growth as well as the global shift to cleaner technologies... and all of these will require steel."

Scroll up to the audio player to hear more from the Kumba CEO