JOHANNESBURG (miningweekly.com) – Anglo American iron-ore company Kumba, which mines in South Africa’s Northern Cape, delivered a solid 2025 performance, marked by an improved realised price, marginal sales growth and disciplined capital allocation.

The average free-on-board iron-ore export price of $95 per wet metric tonne achieved was 12% above benchmark.

Cost savings in the 12 months to December 31 came to R673-million, taking to R5.1-billion the total since 2024.

The before interest, taxes, depreciation and amortisation margin of 46% was up 5% on the previous 41% margin and the quality iron-ore mining and marketing company closed the year with net cash of R14.9-billion against a backdrop of an uncertain global trade environment.

Kumba CEO Mpumi Zikalala described the good set of financial results as reflecting the  business’s resilience and strategy.

"We created R58-billion of enduring value in 2025 that benefits all our stakeholders. We also continue to unlock value for the future through our ultra-high dense media separation (UHDMS) investment,” Zikalala remarked.

“We serve a diversified customer base, and our higher iron-ore contents supports stronger blast furnace performance,” Zikalala explained during a media conference covered by Mining Weekly.

The UHDMS project, which is poised to treble premium grade supply, is continuing to gain the scale and flexibility required to meet the rising demand for higher quality ore.

Capital expenditure is expected to be between R13.2-billion and R14.2-billion as asset recapitalisation is accelerated and UHDMS project investment is continued.

The number-one focus is to drive for operational excellence and cost efficiencies with strict capital discipline followed by delivery of logistic stability while unlocking long-term capacity through partnerships.

On the safety front, Kumba has been fatality free for more than nine years at Sishen and for two years at Kolomela, accompanied by nine years of zero level 4 and level 5 health incidents.

A 4% decrease in freshwater withdrawals to 6 971 megalitres has been reported.

A final cash dividend of R15.43 per share and total 2025 cash dividend of R32.03 per share has been declared at a payout ratio of 70% of headline earnings.

Kumba is a renowned lump iron-ore producer and major iron-ore consumer China’s steel mills are beginning to use more lump, which is a positive demand advance for the Johannesburg Stock Exchange-listed company.

Two-thirds of Kumba’s product consisting of lump iron-ore translates into the company being able to earn the full lump premium on two-thirds of it overall volume.

“That helps a lot,” Kumba marketing and seaborne logistics head Timo Smit said in response to Mining Weekly's request for elaboration on the positive contribution of Kumba’s lump ore endowment.

On top of that, Smit explained, is Kumba’s relatively high iron content of about 64%.

“That's nicely ahead of our competitors and we earn that full Fe premium on top of that,” Smit added, while pointing out how that then puts Kumba in the advantageous position of being able to select customers “that truly value our products in their furnace”.

That helping Kumba to earn a little bit more in the market explains why its premium earnings are good.

With the UHDMS coming online, Kumba will have even more premium products in its portfolio.

“Our average quality is going to go up, ever so slightly also, and that will help us earn a slightly better premium going forward, on the back of the quality of our product,” Smit explained to Mining Weekly during the media call.