Kumba Iron Ore reported that its earnings per share (HEPS) over the six months ending June 30, 2026, is likely to decrease by 39%–43% due to Rand strengthening and falling prices. The company also noted that iron ore production slightly dropped following the first of two planned ten-day shutdowns organized by Transnet Freight Rail.
In a trading statement, the mining group indicated that the expected HEPS would range from 12.68 to 13.61 Rand. Interim results are scheduled to be published on July 23, 2026. Furthermore, the gross profit for the period is forecast to be between 4.06 and 4.36 million, representing a drop of 39%–43% compared to the same period last year.
Despite challenging operating conditions, including the highest rainfall in many decades in the second quarter, total production was 3% lower. This occurred against stable operations at the Sishen site but was offset by a planned reduction in production at Kolomela. Sales volume also decreased by 1%, largely attributed to the first of two planned ten-day Transnet logistics stoppages in May 2026.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was negatively affected by the Rand strengthening by 11% against the US dollar and a slight decrease in the average export price of iron ore in US dollars. Additionally, EBITDA declined due to a one-time payment from Transnet related to logistics performance, received for the six months ending June 30, 2025. These factors accounted for about 96% of the change in EBITDA, which is expected to be between 10.43 and 11.19 million, reflecting a decrease of 30%–35%.
The sharp decline in iron ore production led to the monthly production volume in South Africa decreasing for the first time in six months in May, according to Statistics SA data. Production in the mining sector was 5.4% lower, after growing by 8% in April. Iron ore output fell by 12.7% year-on-year.
