Anglo American's Kumba Iron Ore reported an 18% rise in annual profit for 2025, supported by higher realised prices and a modest increase in sales volumes as logistics performance showed signs of sustained improvement.
The South Africa-based company posted headline earnings per share of R45.97 ($2.86) for the year ended December 31, up from R38.94 in 2024.
The result was driven by a higher average realised free-on-board export price of $95 per wet metric ton, compared with $92 a year earlier, and a 2% increase in sales volumes to 37 million tons.
Kumba said resilient Chinese pig iron production, underpinned by strong export demand, provided support to iron ore market prices through the year.
Company chief executive Mpumi Zikalala attributed the performance to improving logistics, citing ongoing collaboration between bulk mineral exporters and state-owned freight rail operator Transnet.
Private firms have been providing technical assistance to maintain the 861-kilometre ore export line from mines in the Northern Cape to the Saldanha Bay port.
"Ore railed to the port rose by 6%, and this was despite derailments that were suffered during the year," Zikalala was quoted as saying by Reuters during a results call.
"Rail performance improved to 84% of contracted volumes, which, together with improved equipment availability at the Saldanha Bay Port, resulted in the 2% increase in our sales."
The improved logistics allowed Kumba to reduce on-mine iron ore stockpiles to 5.7 million tons at year-end from 6.9 million tons at the close of 2024.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
