Iron Ore Production: 100% (2025)

TOP 3 Markets:

1. China: 65%
2. Europe: 20%
3. South Africa: 10%

Kumba Iron Ore Limited generates its revenues entirely from the production and sale of iron ore. The largest market for Kumba Iron Ore is China, accounting for approximately 65% of revenues, followed by Europe with 20% and the domestic market of South Africa with 10%. This distribution reflects the strong demand from China driven by the construction and steel industry, as well as the strategic importance of the European market.

Production Sites:

• Sishen Mine: Northern Cape, South Africa
• Kolomela Mine: Northern Cape, South Africa

Kumba Iron Ore Limited operates its main production facilities in South Africa. The Sishen Mine, one of the largest open-pit mines in the world, is known for its high iron ore production. The Kolomela Mine, also located in the Northern Cape, complements the production with high-quality iron ore. Both mines are strategically important for the company and significantly contribute to its production capacity.

Strategy for Future Growth:

1. Diversification of Product Range: Kumba Iron Ore Limited plans to diversify its product range to not be solely dependent on iron ore. This could be achieved through investments in other commodities or the development of new products.

2. Sustainability Initiatives: The company is increasingly focusing on sustainability to reduce its ecological footprint. This includes investments in environmentally friendly technologies and improving energy efficiency in mining processes.

3. Expansion of Production Capacities: Kumba plans to increase its production capacities by expanding existing mines and developing new deposits. This is intended to strengthen competitiveness in the global market.

4. Digitalization and Automation: By utilizing digital technologies and automation, Kumba aims to increase efficiency and reduce operating costs. This includes the use of data analytics and automation technologies in mining processes.

5. Enhancing Market Presence in Asia: Given the rising demand for iron ore in Asia, especially in China, Kumba plans to strengthen its market presence in this region. This could be achieved through strategic partnerships and expanding distribution networks.

These strategies aim to secure the long-term growth and profitability of the company, while also responding to global market trends and environmental challenges.

Commodities/Materials: Coal, Machinery, Spare Parts
Countries of Origin: Australia, China, Germany

Kumba Iron Ore Limited mainly imports coal, which is necessary for the operation of its production facilities. This coal is primarily sourced from Australia, one of the world's largest exporters of high-quality coal.

In addition, the company imports machinery and spare parts needed for mining and processing iron ore. These machinery and spare parts mainly come from China and Germany, known for their advanced technology and high-quality products.

These imports are crucial to ensure the efficiency and productivity of Kumba Iron Ore's mining activities.

Market share: 20% (estimated, 2025)
Production cost per ton: 30 USD (2024)
Iron ore price: 120 USD per ton (2025)

Kumba Iron Ore Limited has a significant competitive advantage due to its low production costs, which are around 30 USD per ton. This allows the company to remain profitable even with fluctuating iron ore prices. The current iron ore price of 120 USD per ton provides Kumba with a substantial margin advantage.

Additionally, Kumba benefits from its strong market position in South Africa and an estimated market share of 20%. This position is supported by efficient logistics and a well-developed infrastructure that facilitates exports.

In the long term, Kumba could further enhance its competitive advantage through investments in sustainable mining practices and technological innovations to meet changing market demands.

Institutional Investor Share: Approximately 60% (estimated, based on 2023 data)

Insider Buys/Sells: No significant transactions in the last year (estimated, based on 2023 data)

Kumba Iron Ore Limited has traditionally had a high proportion of institutional investors, indicating confidence in the company's long-term stability and profitability. The institutional investor share typically stands at around 60%, based on the most recent available data.

Regarding insider transactions, there have been no significant buys or sells in recent years that would indicate a substantial change in management's confidence. This suggests that the executives are satisfied with the current company strategy.

Market share of Kumba Iron Ore Limited: Estimated 5% (2025)

Main competitors and their market share:

1. Vale S.A.: 25%
2. Rio Tinto: 23%
3. BHP Group: 20%
4. Fortescue Metals Group: 15%
5. Anglo American (including Kumba Iron Ore): 10%

Kumba Iron Ore Limited is a subsidiary of Anglo American and contributes to its market share. The iron ore market is heavily dominated by large multinational corporations with significant resources and capacities.

Economic moat of Kumba Iron Ore Limited:

Kumba Iron Ore Limited has a moderate economic moat, mainly characterized by its high-quality iron ore deposits and efficient production methods. Its geographical location in South Africa provides access to premium resources, giving it an advantage over some competitors.

However, companies like Vale, Rio Tinto, and BHP Group have a stronger economic moat due to their global presence, diversified business models, and substantial investments in technology and infrastructure. These factors enable them to reduce costs and respond more efficiently to market changes.

Overall, Kumba Iron Ore Limited has a certain competitive advantage in its region, but on a global scale, the larger competitors are better positioned to benefit from economies of scale and technological advancements.

Revenue Growth: 8.2% (2024) Profit Growth: 5.5% (2024) Iron Ore Production: 40 million tons (2024)

Kumba Iron Ore Limited recorded a revenue growth of 8.2% in 2024, attributed to stable demand for iron ore and efficient production increases. The 5.5% profit growth indicates the company's ability to control costs and benefit from market conditions.

Iron ore production amounted to 40 million tons, providing a solid foundation for future revenues. Given the global demand for iron ore, especially from emerging markets, Kumba Iron Ore could benefit from sustained demand.

Additionally, the company is investing in sustainable practices and technological innovations to enhance its competitiveness. These strategic measures could lead to long-term improvements in operational efficiency and a reduction in environmental impact.

Overall, the financial and operational performance of Kumba Iron Ore Limited suggests that the stock could be an attractive investment opportunity for investors interested in commodity companies. However, it is advisable to consider external factors such as global economic conditions and commodity prices before making a final investment decision.

Dividend yield: 8.5% (estimated for 2025) Dividend history: Steady payout over the last 5 years

Kumba Iron Ore Limited is known for its reliable dividend policy. The company has consistently paid dividends in recent years, indicating a solid financial foundation and stable earnings. The estimated dividend yield of 8.5% in 2025 is attractive and suggests strong profitability.

The reliability of the payout is supported by robust demand for iron ore and the company's efficient cost structure. Despite volatility in commodity markets, Kumba Iron Ore has maintained its dividend policy, strengthening investor confidence.