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South African executive Mpumi Zikalala led-Kumba Iron Ore to reward shareholders with $347 million

Kumba Iron Ore declares R19.9 ($1.08) per share final dividend for fiscal year 2024, despite a 20.53% revenue decline and ongoing logistics challenges.

Mpumi Zikalala

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Key Points

  • Kumba Iron Ore declares an R19.9 ($1.08) per share final dividend totaling R6.41 billion ($347.71 million) for 2024, despite logistics challenges and lower iron ore prices.
  • Revenue fell 20.53% to R68.53 billion ($3.72 billion), impacted by logistics issues and lower iron ore prices.
  • CEO Zikalala highlights cost-saving measures and technological investments for long-term growth.

Kumba Iron Ore, the world’s fifth-largest iron ore supplier led by South African executive Mpumi Zikalala, is set to reward its shareholders with a final dividend amounting to $347.71 million for the year ending Dec. 31, 2024. This recent move reflects the company’s commitment to delivering value to its investors despite a challenging year, during which it saw a 35.33 percent drop in profitability.

The final dividend for the year ended Dec. 31, 2024, amounts to R6.41 billion ($347.71 million), translating to a payout of R19.9 ($1.08) per share. This marks a 17.77 percent decline from the R24.2 ($1.32) per share distributed in 2023, reflecting the company's lower profitability amid weaker iron ore prices and ongoing logistics challenges.

Kumba Iron Ore posts lower profit of $1.05 billion profit in 2024

Under Mpumi Zikalala’s leadership, Kumba Iron Ore’s 2024 profits fell 35.33 percent to R19.28 billion ($1.05 billion), weighed down by a 21 percent drop in realized iron ore prices and a 2 percent dip in sales volumes.

Revenue fell 20.53 percent to R68.5 billion ($3.72 billion) from R86.2 billion ($4.68 billion) in 2023. To counter logistics challenges, Kumba is pushing for rail efficiency reforms and greater private sector involvement in transport infrastructure.

Kumba Iron Ore navigates challenges, rewards investors

Despite Logistics challenges—including rail disruptions and rising stockpile levels—Kumba maintained resilience through cost-saving measures, achieving R4.4 billion ($238.81 million) in efficiencies. Adjusted EBITDA stood at R28.1 billion ($1.53 billion), reinforcing the company’s financial stability.

CEO Mpumi Zikalala praised the company’s operational excellence, citing cost-saving measures that boosted adjusted EBITDA to R28.1 billion($1.53 billion). Zikalala emphasized Kumba’s ongoing efforts to enhance its technological capabilities and commitment to refining logistics to drive long-term growth and value.

Strategic leadership and long-term value creation

Under Zikalala’s leadership, Kumba, headquartered in Gauteng with primary operations in South Africa, Northern Cape and a port operation in Saldanha Bay, Western Cape continues to assert its position as Africa’s largest iron ore producer and the world’s fifth-largest with a market capitalization reaching R118 billion ($6.41 billion). 

As Kumba continues to refine its logistics network and invest in technology, it remains a leading force in Africa’s iron ore sector. This will further strengthen its position as a leader in the iron ore sector, with CEO Zikalala emphasizing the company’s dedication to unlocking further value through advanced technology and logistics reform.

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