South African iron-ore miner Kumba Iron Ore increased its production for the 2025 financial year by 1% year-on-year to 36.1-million tonnes, while its sales increased by 2% year-on-year to 37-million tonnes. Both production and sales were within the targeted 35-million to 37-million tonnes.

The Sishen mine's output decreased by 1% year-on-year to 25.3-million owing to the planned drawdown of on-mine stockpiles in the first quarter and plant maintenance interventions to facilitate the implementation of the Ultra-High Dense Media Separation (UHDMS) project.

The Kolomela mine, meanwhile, increased its production by 7% year-on-year to 10.8-million tonnes.

Kumba points out that it has had no fatalities at its Sishen mine for nine years and no fatalities at its Kolomela mine for two years.

Kumba achieved an average realised free-on-board (FoB) export iron-ore price of $95 per wet metric tonne (wmt) for 2025, compared with an average realised FoB price of $92/wmt in 2024 and outperforming the iron-ore FoB benchmark price of $85/wmt.

“Our solid performance in 2025 reflects the collective effort of our people and the resilience of our operations. As we strengthen the fundamentals of our business, we recognise the need to further improve asset reliability and enhance cost efficiency, while progressing the UHDMS project, a key enabler of long-term value creation.

"Our collaboration with Transnet, through the Ore Users’ Forum, combined with disciplined execution across the value chain, ensured delivery within the company’s full-year sales guidance and allowed us to benefit from a stable iron-ore price environment.

"As we look ahead, we will continue to focus on our strategic priorities of safety, operational excellence and unlocking sustainable value for our stakeholders,” Kumba CE Mpumi Zikalala comments.

Looking ahead, the company maintains its previously stated production guidance for this year at between 31-million and 33-million tonnes, which is lower than production for 2025, owing to the planned main tie-in of the UHDMS project in the second half of this year. Production is expected to increase back to the 35-million- to 37-million-tonne level for 2027 and 2028.

Sales guidance for this year, meanwhile, remains at between 35-million and 37-million tonnes and includes the planned drawdown of finished stock.

FINANCIAL MATTERS
Kumba notes that it expects to report an 11% to 23% year-on-year increase in headline earnings a share to between R43.22 and R47.81, while headline earnings are expected to be between R13.86-billion and R15.33-billion for the 2025 financial year.

The miner, which will publish its detailed financial results on February 29, attributes the increase in headline earnings to the higher average realised FoB export price achieved, the increase in sales volumes and penalty income from freight utility Transnet, but offset by the impact of a strong rand:dollar exchange rate.

Basic earnings per share (BEPS), meanwhile, are expected to be between R42.83 and R47.39, compared with the BEPS of R45.81 reported for the 2024 financial year.

Basic earnings are expected to be between R13.73-billion and R15.2-billion.