Kumba Iron Ore ‘delivered a resilient third quarter performance’

Kumba Kumba’s Chief Executive, Mpumi Zikalala, in its company production and sales report for the third quarter ended 30 September 2026 said: “We delivered a resilient third quarter performance, supported by safe and focused operational and project execution. As planned, iron ore production was lower, largely due to the ultra -high-dense-media-separation (UHDMS) project tie-in at Sishen, while sales were supported by the drawdown of finished stock. Production and sales remain on track to achieve the full year guidance of 31 – 33 Mt and 35 – 37 Mt, respectively.

“Market conditions softened through the quarter as weaker Chinese steel production, compressed mill margins and strong seaborne supply weighed on prices. Despite these headwinds, Kumba continued to realise a premium to benchmark prices, underpinned by the quality of its lump iron ore products and its diversified customer base. Additionally, the Company is progressing its Full Potential Programme aimed at unlocking value, underpinned by disciplined cost and capital management.

“The investment in the R11.2 billion UHDMS project at Sishen remains a key driver of Kumba’s long-term competitiveness. The main tie-in is progressing safely and according to plan, with completion expected before the end of 2026 and capital expenditure (capex) remaining within guidance. Once the final conversion of the modules is completed as planned in 2028, UHDMS will increase the proportion of Sishen’s premium-grade iron ore products, improve resource utilisation, reduce waste mining and extend Sishen’s mine life.”

OVERVIEW

• The total recordable injury frequency rate (TRIFR) improved to 0.85 YTD 2026 (YTD 2025: 0.97) reflecting continued progress from our safety interventions.
• Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), largely due to the temporary shutdown of the Sishen dense-media-separation (DMS) plant during the UHDMS main tie-in.
• Total sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), with shipping facilitated by high port stock levels.
• Finished stock of 4.8 Mt (Q2 2026: 7.0 Mt), comprising 2.9 Mt on-mine and 1.9 Mt at the Saldanha Bay Port reflect the planned drawdown needed to supplement sales during the Sishen DMS plant shutdown.
• Achieved an average YTD realised FOB export iron ore price of US$86/wmt (YTD 2025: US$94/wmt), a 9% premium above the average benchmark price of US$79/wmt (YTD 2025: US$84/wmt).

Kumba extended its fatality-free production record of ten years at Sishen and three years at Kolomela, while the 2026 YTD TRIFR improved to 0.85 (YTD 2025: 0.97).

Safety performance benefited from the continued embedding of Kumba’s Fatal Risk Management programme, enhanced contractor engagement and stronger accountability across all work fronts.

Kumba’s full year 2026 waste mining guidance has been revised to 175 – 190 Mt (previously 180 – 195 Mt), while the production guidance remains unchanged at 31 – 33 Mt.

Total waste mining increased by 11% to 49.0 Mt (Q3 2025: 44.2 Mt). Sishen’s waste mining rose by 4% to 38.1 Mt (Q3 2025: 36.7 Mt), supported by improved equipment efficiency and operating times. Waste mining at Kolomela increased by 47% to 10.9 Mt (Q3 2025: 7.4 Mt), driven by the planned ramp-up of higher strip ratio areas at Kapstevel South.

However, the residual effects of the heavy rainfall and flooding in Q2 2026 continued to constrain performance. As a result, Kolomela’s full year waste mining guidance has been revised to 40 – 45 Mt (previously 45 – 50 Mt), while Sishen’s guidance remains unchanged at 135 – 145 Mt.

Total production decreased by 19% to 7.5 Mt (Q3 2025: 9.2 Mt), in line with Sishen’s 22% lower production of 4.9 Mt (Q3 2025: 6.3 Mt) following the planned DMS plant shutdown to enable the UHDMS main tie-in. This was partly offset by a 24% increase in Sishen’s JIG plant production to 3.1 Mt (Q2 2026: 2.5 Mt). Kolomela’s production of 2.6 Mt was 12% lower (Q3 2025: 2.9 Mt) due to plant feedstock availability arising from the above-mentioned mining constraints. The sequential improvement in Kolomela’s production, which increased by 8% from Q2 2026, supports the full year production guidance of ~10 Mt. Sishen’s guidance remains unchanged at ~22 Mt.

C1 and on-mine unit cost guidance for the full year 2026 is unchanged, subject to the impact of the Middle East conflict on key input costs. Sishen is expected to deliver unit costs towards the upper end of its 2026 guidance range of R530 – 560/tonne, while Kolomela’s unit cost is expected to end the year at the lower end of the R430 – 460/tonne range. Our C1 unit cost guidance remains at ~US$45/tonne (based on a foreign exchange rate of R16.50/US$).

Ore railed to port decreased by 8% to 9.4 Mt (Q3 2025: 10.2 Mt), largely reflecting the impact of a derailment which reduced volumes railed by 0.4 Mt. Despite this, sales increased by 3% to 10.0 Mt (Q3 2025: 9.6 Mt), supported by high finished stock levels at Saldanha Bay Port enabling efficient ship loading throughput.

Total finished stock decreased to 4.8 Mt (Q2 2026: 7.0 Mt), reflecting the planned utilisation of stock to supplement sales during the DMS shutdown period. This comprised 2.9 Mt of on-mine stock (Q2 2026: 4.8 Mt) and 1.9 Mt at Saldanha Bay Port

(Q2 2026: 2.2 Mt). Sales volumes are expected to be at the upper end of the 35 – 37 Mt guidance range for the year.

During the 10-day logistics maintenance shutdown in October 2026, 22km of rail line was replaced. To date, this brings to completion 33% of the 517km replacement programme, resulting in the lifting of 40% of the speed restrictions along the Ore

Export Channel. At Saldanha Bay Port, refurbishment work on four stacker reclaimers and two ship loaders were completed, while commissioning of Tippler 3 is underway.

Iron ore prices remained under pressure as elevated coking coal costs weighed on Chinese steel mill profitability. Average bl ast furnace profitability at the 247 mills surveyed by Mysteel, declined to as low as 7% by the end of Q3 2026, relative to 58% in the comparative 2025 period. Steel production in key iron ore markets outside China grew by an estimated 2% year-on-year during Q3 2026. At the same time, seaborne iron ore supply increased by an estimated 1% year-on-year, with shipments from Australia and Guinea largely offset by lower supply from Brazil and Ukraine during the quarter.

Freight rates remained elevated with the Saldanha to Qingdao route reaching a five-year high of US$32/t in September, taking the YTD 2026 average to US$23/t, reflecting tighter vessel availability and higher bunker fuel rates.

Kumba continued to demonstrate the value of its premium product portfolio and its ability to optimise product mix inresponse to high lump premia in the market. On a YTD  2026 basis, the lump:fine ratio improved to 68:32 (YTD 2025: 67:33), with an average iron content of 63.6% (YTD 2025: 64.0%). Kumba achieved an average YTD 2026 realised FOB export price of US$86/wmt (YTD 2025: US$94/wmt), representing a 9% premium to the average benchmark price of US$79/wmt (YTD 2025:US$84/wmt).