Kumba Iron Ore reported EBITDA of 10.9 billion rand in the first half

Kumba Iron Ore, Anglo American’s iron ore subsidiary operating in South Africa, announced its financial results for the six-month period ending June 30, 2026. Despite challenging market conditions and operational difficulties, the company maintained strong cash generation while continuing to support shareholder returns.

Kumba Iron Ore generated 10.9 billion rand in EBITDA during the first half of the year, with an EBITDA margin of 35 percent. At the end of the period, the company’s net cash position reached 12.1 billion rand, while cash flow from operations totaled 10.1 billion rand. The company’s free cash flow was recorded at 1.9 billion rand.

Supported by a strong balance sheet and cash generation, the Board of Directors decided to distribute an interim dividend of 2.5 billion rand. Under this decision, shareholders will receive a cash dividend of 7.90 rand per share. The company stated that 0.8 billion rand of this dividend will go to its joint venture partners.

In terms of operational performance, the average realized price for Kumba’s exported iron ore sales was $90 per wet metric ton (wmt), which was reported to be 8 percent above the reference price. The company’s C1 cash cost, meanwhile, stood at $46 per metric ton due to external factors.

CEO: We Remain Focused on Cash Generation and Cost Discipline

Kumba Iron Ore CEO Mpumi Zikalala noted that the company’s first-half performance reflected challenging external and operating conditions, yet they still achieved strong financial results.

Zikalala said, “In the first half, we generated 10.9 billion rand in EBITDA and achieved an EBITDA margin of 35 percent. We remain focused on cost optimization, capital allocation discipline, and increasing cash generation to support sustainable shareholder returns. Our strong balance sheet and cash flow of 10.1 billion rand from operations enabled the Board of Directors to declare an interim dividend of 2.5 billion rand.”

Emphasis on Safety and Sustainability

The company noted that it continues to maintain its safety performance, announcing that there have been no fatal workplace accidents at the Sishen mine for over 10 years and at the Kolomela mine for over three years.

As part of its sustainability efforts, the company noted that the Kolomela mine has begun using renewable electricity and stated that women make up 32 percent of its workforce. Kumba Iron Ore also reported that its operations have generated 24 billion rand in lasting shared value for its stakeholders.