Kumba Declares Handsome Dividend Despite Profit Slump

Anglo American subsidiary Kumba Iron Ore declared a bumper dividend for the year ended December 2024 despite a slump in profitability, saying it was comfortable it would meet its commitments including developing the technology project at its Sishen mine.

The group declared a R19.90 per share final cash dividend, bringing the total cash dividend for the full-year to R38.67 per share, representing a payout ratio of 100 of headline earnings.

The final dividend is above the group dividend policy which targets a payout range of between 50 to 75 of headline earnings.

Kumba's handsome dividend payout comes as Anglo American Platinum on Monday declared a cash dividend of R15.7bn or R59 per share to all shareholders, in addition to the final dividend of R3 per share, bringing its full-year 2024 dividend to R19.1bn or R71.75 per share and a R521m distribution to Thobo and community trusts.

CFO Bothwell Mazarura told journalists on Tuesday the group had topped up its dividend to a 100 payout given a strong balance sheet and a good year for cash generation.