Kumba Iron Ore FY revenue slumps 21%

Kumba Iron Ore, a major player in the mining industry, recently reported a fall in headline earnings per share for the 2024 financial year. The company attributed this decline to its decision to reconfigure its business to a lower production profile, which aimed to align more closely with Transnet's logistics performance. Despite the challenges faced, Kumba Iron Ore declared a final cash dividend of R19.90 per share, bringing the total cash dividend for 2024 to R38.67. The company's shares experienced a 5% increase in mid-morning trade following the announcement. CEO Mpumi Zikalala joined CNBC Africa to discuss the company's performance and future prospects. Zikalala highlighted several key points during the interview, including the company's focus on safety, the impact of logistics challenges on revenue, and the positive outlook for the iron ore industry. The CEO emphasized the importance of internal initiatives in driving cost efficiencies and operational excellence to navigate macroeconomic uncertainties. Zikalala also discussed the ongoing collaboration with Transnet and government entities to address logistics issues and enhance industry performance. Additionally, he shared insights into Kumba Iron Ore's strategic investments, such as the ultra-high dense medium separation project, aimed at improving production quality and extending the life of the Sishan mine. Looking ahead, the company remains committed to operational excellence, stakeholder engagement, and community development initiatives as part of its long-term growth strategy.