Annual financial statement
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Annual Financial Statements 2025 KUMBA IRON ORE LIMITED
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Kumba’s history Kumba is a supplier of high-quality iron ore (64.1% average Fe) to the global steel industry. We primarily operate in South Africa, with mining operations in the Northern Cape, a head office in Johannesburg (Rosebank), Gauteng, and a port operation in Saldanha Bay, Western Cape. Our purpose is “re-imagining mining to improve people’s lives”, using innovative thinking, enabling technologies and collaborative partnerships to shape an industry that is safer, more sustainable, and better aligned with the needs of our host communities and society. 1931 – 2007 2008 – 2017 2018 – 2025 » 1931 – Iscor’s first mine established at Thabazimbi in the Limpopo province » 1942 – Open-pit operations commenced at Thabazimbi » 1953 – Sishen, our flagship operation, established in the Northern Cape province » 1976 – The South African government invested in infrastructure to facilitate the export of iron ore from Sishen mine via the Sishen-Saldanha rail link and port facility » 1989 – Iscor is privatised » 2001 – Iscor unbundled into two separate companies, namely Kumba Resources and Iscor » 2002 – Sishen achieved ISO 14001 certification for its Environmental Management System and OHSAS 18001 certification for its Health and Safety Management System » 2006 – The unbundling of Kumba Resources’ iron ore assets led to the re-listing of Kumba Resources as Exxaro Resources and the establishment of a new company, Kumba Iron Ore, which is fully empowered with black economic empowerment (BEE) ownership of 26% » 2008 – The Sishen Jig plant formally opened in November 2008 and construction started on Kolomela » 2011 – Kolomela produced its first ore five months ahead of schedule and within budget » 2011 – Maturity of the first phase of Envision (a broad- based employee plan), with 6,209 employees each receiving R576,045 (pre-tax) » 2013 – Commissioned the ultra-high dense media separation (UHDMS) pilot plant at Sishen in the fourth quarter of 2013 » 2013 – Approval of the Dingleton relocation project » 2014 – Kumba granted the mining right for the rail properties at Sishen » 2015 – Revised strategy from a volume-based approach to a value-based (cash-generating) strategy; dividends suspended » 2015 – Head office and support services at the mines restructured » 2015 – Slope failure at Thabazimbi; Board approved closure of the mine » 2015 – Achieved A-listing on the Carbon Disclosure Project climate change and water security programmes » 2016 – Sishen’s 21.4% residual mining right awarded to Sishen Iron Ore Company Proprietary Limited (SIOC) » 2016 – Agreement reached to transfer ownership of Thabazimbi to ArcelorMittal SA » 2016 – Restructuring of Sishen and significant reconfiguration of the Sishen pit » 2016 – The bottoming out of the iron ore price » 2016 – The maturity of Envision II; paid R75,000 per employee (after tax) in dividends » 2016 – No capital payout due to the decline in the Kumba share price » 2017 – Kumba, the best-performing share on the Johannesburg Stock Exchange (JSE) » 2017 – Reinstated dividends » 2017 – Kolomela achieved ISO 14001 certification for its Environmental Management System and OHSAS 18001 certification for its Health and Safety Management System » 2018 – Approved the Tswelelopele strategy with three horizons » 2018 – Transfer of Thabazimbi, including employees, assets, liabilities and mining rights, to ArcelorMittal SA, effective 1 November 2018 » 2018 – Kolomela mining right amended to include Heuningkranz prospecting right » 2020 – Approved the Kapstevel South project » 2021 – Resettlement of the Dingleton community (which began in 2014) successfully concluded » 2022 – Introduced a new hybrid employee share options scheme with a vesting component and an evergreen component » 2022 – Initiated the 63 megawatt (MW) solar photovoltaic (PV) plant at Sishen, the first major project in our decarbonisation strategy, and one of the first projects in Anglo American’s regional renewable energy ecosystem » 2023 – Following continued disruptions at Transnet’s rail and port operations, Kumba announced in December 2023 that it would reconfigure its business to a lower production profile for the period from 2024 to 2026, in line with prevailing logistic capacity » 2024 – Resumed the UHDMS project following Board approval of an additional R7.6 billion investment » 2025 – Improvement in Transnet’s logistics performance reflected the impact of collaborative engagement activities, though significant work remains and the margin-enhancing UHDMS project is progressed to plan, offering life extension optionality Key features* Safety and sustainability focus Unlock full value of the core Disciplined capital allocation Fatality-free for more than nine years at Sishen and two years at Kolomela Average realised free-on-board (FOB) export price of US$95/tonne^, 12% above benchmark Return on capital employed (ROCE) of 46%, up from 41% Nine years of no level 4 – 5 health incidents Cost savings of R673 million, R5.1 billion saved since 2024 ,. / Attributable free cash flow1 of R12.0 billion, lower by 17% Reduced freshwater withdrawals by 4% to 6,971 ML Resilient adjusted EBITDA1 margin of 46%, up from 41% Final cash dividend per share of R15.43 and total 2025 cash dividend per share of R32.03, down 17%R58.0 billion of enduring shared value created Closing net cash1 of R14.9 billion AngloAmerican Anglo American angloamerican @angloamerican angloamericanplc 1 This constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation. Refer to supplementary non-IFRS financial measures on pages 120 to 123. ^ Production and sales volumes, iron ore prices and C1 unit costs are reported in wet metric tonne (wmt). Kumba’s product has approximately 1.5% moisture. * Sustainability key performance indicators included in this report have not been externally assured.
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Contents 2 Directors’ responsibility for financial reporting 3 Responsibility statement on internal financial controls 3 Certificate of the Company Secretary 4 Salient features and operating statistics 5 Business overview 17 Directors’ report 20 Report of the Audit Committee 24 Independent auditor’s report 29 Principal accounting policies Kumba Iron Ore Limited Group 46 Consolidated statement of financial position 47 Consolidated statement of profit or loss 47 Consolidated statement of other comprehensive income 48 Consolidated statement of changes in equity 49 Consolidated statement of cash flows 50 Notes to the consolidated financial statements Kumba Iron Ore Limited Company 100 Separate statement of financial position 101 Separate statement of profit or loss and other comprehensive income 102 Separate statement of changes in equity 103 Separate statement of cash flows 104 Notes to the separate financial statements Annexures 108 Annexure 1: Investments in subsidiaries 109 Annexure 2: Investments in associates and joint arrangements 110 Annexure 3: Equity-settled share-based payment schemes 116 Annexure 4: New and amended standards not yet adopted by the group Other 117 Notice of final cash dividend 118 Shareholder analysis 120 Supplementary non-IFRS financial measures 124 Independent auditor’s assurance report on non-IFRS measures 126 Glossary of terms and acronyms 129 Administration 130 Forward looking statements Directors’ declaration The Board of Kumba Iron Ore Limited (Kumba or the Company or the group), assisted by the Audit Committee, is ultimately responsible for the preparation, fair presentation and integrity of the audited annual financial statements and related financial information of the group, as contained in this report, for the year ended 31 December 2025. The Board of directors confirms that it has collectively reviewed the content of this report and approved it on 18 February 2026 for presentation to shareholders at the next Annual general meeting (AGM) on 26 May 2026. The 2025 Annual Financial Statements have been prepared under the supervision of XF Mbambo CA(SA), Chief Financial Officer. 1 Kumba Iron Ore Limited Annual Financial Statements 2025 Each of these reports, with additional updated information, is available on our website: www.angloamericankumba.com Find our additional reports online Navigating our 2025 reports Our integrated reporting suite comprises the Annual Financial Statements and the following reports. All information is for the year ended 31 December 2025. Integrated report* This report is primarily aimed at current and prospective investors, lenders and other creditors. It provides a succinct review of our strategy and business model, operating context, governance, operational performance, and our response to managing the material risks and opportunities that could reasonably be expected to affect Kumba’s prospects. (Financial materiality) Sustainability report* This report reviews our approach to managing our significant environmental (including climate change), social and governance (ESG) impacts, risks and opportunities and to address those sustainability and ESG issues of interest to a broad range of stakeholders. (Double materiality) Ore Reserve (and Saleable Product) and Mineral Resource report^ Reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 Edition (SAMREC Code) as required by section 12.13 of the JSE Limited Listings Requirements. (Financial materiality) , For 2025, a separate report is published for the Heuningkranz deposit, in terms of Table 1, Mineral Resource summary, of the SAMREC Code * To be published on 10 April 2026. ^ Published and available on our website. Our approach to reporting
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Directors’ responsibility for financial reporting for the year ended 31 December 2025 The directors are responsible for the preparation, fair presentation and integrity of the annual financial statements and related financial information of the Kumba Iron Ore Limited Group (the group) and Kumba Iron Ore Limited (Kumba or the Company), in accordance with International Financial Reporting Standards (IFRS® Accounting Standards), the requirements of the South African Companies Act No 71 of 2008, as amended (Companies Act), and the JSE Limited Listings Requirements, which include amounts based on reasonable and prudent judgements and estimates made by management. The annual financial statements set out on pages 29 to 116 are based on appropriate accounting policies, which have been consistently applied, except for changes in accounting policies as detailed in the notes, and which are supported by reasonable and prudent judgements and estimates. These financial statements comprise the statements of financial position at 31 December 2025; the statements of profit or loss; the statements of other comprehensive income; the statements of changes in equity; and the statements of cash flows for the year then ended; the notes to the financial statements, which include a summary of principal accounting policies and other explanatory notes; the directors’ report; the report of the Audit Committee; and the certificate of the Company Secretary. The directors, primarily through the Audit Committee, periodically meet with the external and internal auditors as well as the executive management to evaluate matters concerning their responsibilities, which include: • maintaining adequate accounting records and an effective system of risk management • developing, implementing and maintaining a sound system of internal control relevant to the preparation and fair presentation of these financial statements, which provides reasonable, but not absolute assurance against material misstatement or loss, whether owing to fraud or error • selecting and applying appropriate accounting policies • making accounting estimates that are reasonable in the circumstances • safeguarding shareholders’ investments and the group’s assets • preparing the supplementary annexures included in these financial statements The group’s internal auditors independently evaluate the internal controls and co-ordinate their audit coverage with the external auditors. The independent external auditors are responsible for reporting on whether the consolidated financial statements and the separate financial statements are fairly presented in accordance with the applicable financial reporting framework. The independent auditor’s report to the shareholders of the group and Kumba is set out on pages 24 to 28 of this report. The external and internal auditors have unrestricted access to all records, property and personnel as well as to the Audit Committee. The directors acknowledge that they are ultimately responsible for the process of risk management and the system of internal financial control established by the group, and place a strong emphasis on maintaining a strong control environment. The directors are not aware of any material breakdown in the functioning of these controls and systems during the year under review. The directors are of the opinion that, based on the information and explanations given by management, the internal auditors, the external auditors and the group’s risk, compliance and other reporting processes, the risk management processes and system of internal control provide reasonable assurance in all key material aspects that the financial records may be relied upon for the preparation of the annual financial statements. Having considered the group’s major risks, outstanding legal, insurance and taxation issues, an assessment of the solvency and liquidity taking into account the current financial position and existing borrowing facilities, along with the group’s financial budgets with their underlying business plans, the directors consider it appropriate that the annual financial statements be prepared on a going concern basis. Attributable free cash flow, net cash, adjusted EBITDA, net asset value attributable to owners of Kumba and US dollar convenience translation statements are non-IFRS financial measures reported on pages 120 to 123, and constitute pro forma financial information, as defined by the JSE Limited Listings Requirements. This information is provided for illustrative purposes only, and due to its nature, may not fairly present the group’s financial position, changes in equity, results of operations or cash flows. The underlying information used in the preparation of the pro forma financial information has been prepared using the group’s accounting policies, which comply with IFRS® Accounting Standards. The non-IFRS financial measures included in the annual financial statements is the responsibility of the Company’s directors. The supplementary non-IFRS financial measures have been reported on by the group’s auditors (refer to pages 124 to 125) in the Independent Auditor’s Assurance Report thereon. Approval of group annual financial statements and Company annual financial statements The group annual financial statements on pages 29 to 99 and 108 to 116, and the Company annual financial statements of Kumba Iron Ore Limited on pages 100 to 107 were approved by the Board of directors on 18 February 2026, and will be presented to the shareholders at the AGM on 26 May 2026. The group and Company annual financial statements are signed on the directors’ behalf by: TP Goodlace ND Zikalala Chairperson Chief Executive 18 February 2026 2 Kumba Iron Ore Limited Annual Financial Statements 2025 Directors‘ responsibility for financial reporting
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Responsibility statement on internal financial controls for the year ended 31 December 2025 Each of the directors, whose names are stated below, hereby confirm that: • the annual financial statements set out on pages 29 to 116, fairly present in all material respects the financial position, financial performance and cash flows of the Kumba group in terms of IFRS Accounting Standards; • to the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading; • internal financial controls have been put in place to ensure that material information relating to Kumba and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the Kumba group; • the internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, and we have fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls; • where we are not satisfied, we have disclosed to the Audit Committee and the auditors any deficiencies in design and operational effectiveness of the internal financial controls, and have taken steps to remedy the deficiencies; and • we are not aware of any fraud involving directors. Certificate of the Company Secretary for the year ended 31 December 2025 I, Fazila Patel, in my capacity as Company Secretary, confirm that, for the year ended 31 December 2025, Kumba Iron Ore Limited has lodged with the Registrar of Companies, all such returns and notices as are required of a public company in terms of the South African Companies Act, as amended, and that all such returns and notices are true, correct and up to date. F Patel Company Secretary 18 February 2026 3 Kumba Iron Ore Limited Annual Financial Statements 2025 Responsibility statement on internal financial controls ND Zikalala Chief Executive XF Mbambo Chief Financial Officer 18 February 2026
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Salient features and operating statistics for the year ended 31 December Unaudited Unaudited 2025 2024 Share statistics (’000) Total shares in issue1 322,086 322,086 Weighted average number of shares1 320,626 320,883 Diluted weighted average number of shares1 321,591 321,673 Treasury shares1 1,781 1,217 Market information Closing share price (Rand) 351 326 Market capitalisation (Rand million) 113,052 105,000 Market capitalisation (US$ million) 6,810 5,606 Net asset value attributable to owners of Kumba (Rand per share)2 170.57 163.98 Capital expenditure (Rand million)1 Capital expenditure paid 10,031 9,673 Contracted 3,452 2,962 Authorised but not contracted 5,296 9,225 Operating commitments (Rand million)1 252 277 Commitments from shipping services (Rand million)1 — 173 Economic information Average rand/US dollar exchange rate (R/US$) 17.89 18.33 Closing rand/US dollar exchange rate (R/US$) 16.60 18.73 Sishen mine free-on-rail (FOR) unit cost Unit cost (Rand per tonne) 673.32 675.60 Cash cost (Rand per tonne) 529.50 531.30 Unit cost (US$ per tonne) 37.64 36.85 Cash cost (US$ per tonne) 29.60 28.98 Kolomela mine FOR unit cost Unit cost (Rand per tonne) 520.64 667.99 Cash cost (Rand per tonne) 374.21 404.00 Unit cost (US$ per tonne) 29.11 36.44 Cash cost (US$ per tonne) 20.92 22.04 1 Amounts have been extracted from audited information. 2 This constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation. Refer to supplementary non-IFRS financial measures on pages 120 to 123. 4 Kumba Iron Ore Limited Annual Financial Statements 2025 Salient features and operating statistics
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Business overview for the year ended 31 December 2025 Consistent and resilient performance Mpumi Zikalala, Chief Executive of Kumba, said, “Kumba delivered a solid performance, marked by an improved realised price, marginal sales growth and disciplined capital allocation. “Amidst an uncertain global trade environment, Kumba’s set of financial results reflects the resilience of our business and our strategy. Earnings before interest, tax, depreciation and amortisation (EBITDA) of R31.9 billion at an EBITDA margin of 46% and an attributable free cash flow of R12.0 billion, allowed the Board to declare a final cash dividend of R15.43 per share, bringing the total cash dividend for the full year to R32.03 per share at a payout ratio of 70% of headline earnings. “Safety is our first value and we remain steadfast in our commitment to improving safety across our operations. Thanks to the great work from our teams, we met our operational and financial guidance for the full year of 2025. “Production of high-quality iron ore increased marginally to 36.1 Mt and, based on a constant exchange rate of R18.60/US$, the C1 unit cost improved to US$38 per wet metric tonne (wmt) which is below our 2025 target of US$39/wmt. “Our team’s strong marketing and sales capabilities, coupled with Transnet’s improved logistics performance stability, secured sales of 37.0 Mt. This enabled us to capitalise on iron ore market prices improving in the second half of the year, with an average realised FOB export iron ore price of US$95/wmt, 12% above the average 62% Fe benchmark FOB export price of US$85/wmt. “We continue to invest in the longevity of our assets, enabled by disciplined financial and capital management. The life of mine of both operations is 2041. At Sishen, our margin-enhancing UHDMS project is progressing and offers life extension optionality. ”Exploration continues at Kolomela to develop the mine’s life-of-asset that will enable us to leverage existing infrastructure. In line with our strategy of unlocking value and positioning for a sustainable future, we are updating our mineral resource development plan that will further strengthen our reserves and ensure longer life assets. “At Kumba, our sustainability commitments underpin our ability to deliver consistent returns, mitigate risk, and unlock market opportunities. As part of the Anglo American group, we are refreshing our sustainability strategy to more closely reflect our business, which was reconfigured in 2024. Our strategy will continue to guide us and ensure that we continue to produce high-quality iron ore responsibly, while creating lasting value for all our stakeholders. This is demonstrated by the meaningful progress made in reducing freshwater withdrawals by 19% to 6,971 ML from our 2015 baseline of 8,563 ML, ensuring that our mines maximise the water available for our communities. From a livelihood perspective, we have supported well over 42,000 jobs across our mine communities since 2018. “By delivering on our purpose of reimagining mining to improve people’s lives, we created R58.0 billion of enduring value in 2025 that benefits all our stakeholders. We delivered R19.0 billion of value to our BEE suppliers, including more than R3.5 billion from our local host community suppliers, with R485 million invested in social development projects. Our BEE investment partners, including the Sishen Iron Ore Company Community Development Trust (SIOC-CDT), received R3.3 billion from the total shareholder value created of R13.6 billion. “The International Monetary Fund projected global gross domestic product (GDP) growth of 3.3% in 2026, led by faster expansion in emerging markets. Demand for premium iron ore remains supported by productivity optimisation and the shift to low-carbon steelmaking, with the Carbon Border Adjustment Mechanism (CBAM) implementation in Europe and China’s National Carbon Emission Trading System (CETS) expansion to the domestic steel industry. Limited scrap availability will keep iron ore essential for meeting rising steel needs. “As we begin 2026, we continue to invest in our capabilities and strengthen operational alignment with Transnet to maintain production stability. We are keeping customers at the centre of our product portfolio and business strategy, while also leveraging our operational and marketing expertise for margin enhancement. Our performance- driven culture is focused on improved agility and flexibility to unlock further value for all our stakeholders. “We are confident in the long-term market fundamentals for high-quality iron ore, which continue to be shaped by demand driven by global economic growth, urbanisation and the decarbonisation of the steelmaking industry, as well as tight supply of high-quality lump iron ore on the back of significant depletion in the future. “Looking ahead, Kumba is well positioned to deliver enduring value. We have a sustainable life of mine, well-managed operations and a robust and flexible balance sheet to support consistent value delivery. We are focused on maintaining our operational momentum and capitalising on our world-class asset portfolio to deliver long-term growth and returns for our stakeholders.” 5 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Safety, health and wellbeing of our people Safety Kumba has maintained a fatality-free year, with Sishen recording more than nine years and Kolomela more than two years without fatalities. The commencement of the UHDMS project contributed to an increase in low energy incidents, which accounted for 17 (2024: 11) lost-time injuries and were mainly attributed to hands, finger and ankle-foot injuries. Total recordable cases regressed to 22 (2024:17), resulting in the total recordable injury frequency rate increasing to 0.95 (2024: 0.76). High potential incidents, a leading safety indicator, totalled 12 (2024: 7). The implementation of our Fatal Risk Management framework across our operations and corporate office enables the early identification of fatal risks and ensures the effective application of critical controls. During the year, we further reduced the number of critical controls to embed safer, simpler and more structured ways of working. The increased time that our leaders spent in the field engaging with teams further raised safety awareness. Health During the year, 91% (2024: 91%) of our employees underwent HIV counselling and testing, with the uptake of anti-retroviral therapy at 100% (2024: 100%) and a 95% viral suppression rate (2024: 96%) against Kumba’s 2025 target of 95/95/95. We screened 97% of our employees and 93% of our contractors for tuberculosis (TB) and recorded 28 (2024:15) new cases, one of which was an occupational TB case. The TB incidence rate was 172/100,000, well below Kumba’s target of 217/100,000 employees. Managing heart health and non-communicable diseases resulted in 94% of our employees and contractors being screened, ensuring that those diagnosed with chronic medical conditions have treatment support. Our Journey to Wellness programme continues to target employees with a high BMI and high heart health score. We continue to focus on the reduction of exposure to occupational health hazards. 2025 marked nine years of no level 4 – 5 (severe) health incidents. Furthermore, no employees or service partners have been exposed to respirable dust and silica above the legislated Occupational Exposure Limit (HEG A for silica and respirable dust exposure). We have reduced noise exposure for two types of equipment emitting noise above 104 dB, in line with the industry wide benchmark. We continue to explore solutions for the remaining 23, as well as other equipment emitting noise above our internal target of 85 dB. Our people In 2025, we invested R326 million (2024: R261 million) in the training and development of employees and contractors, excluding refresher and induction training. We supported 99 employees to further their formal studies, our Early Talent bursary programme funded 40 university students, while 57 graduates participated in our Professionals in Training development programme. The OneKumba culture seeks to instil a sense of belonging and inspire high performance across all operations and sites. Leaders are key in modelling our desired workplace culture. We commenced our ‘Leading the OneKumba Way’ programme in 2025 to equip our senior leaders with a deeper understanding of their individual leadership strengths, and to embed how they lead aligned with the Anglo American Leadership Framework. Our focus remains on creating meaningful transformation and for the workplace to be supportive, fair, adaptable and inclusive. A mentorship programme for women was launched as part of our broader efforts to support development and promote gender equality in the workplace. In 2025, 60 women from diverse backgrounds took part in the programme. The proportion of women employed at Kumba increased to 32% (2024: 30%), with women in management increasing to 36% (2024: 33%). Historically disadvantaged South Africans remained at 92% (2024: 92%) of our total workforce and 82% (2024: 80%) of our management. Our colleagues living with disabilities increased to 3% (2024: 2%) of our workforce, as we strive to be a more inclusive, equitable and diverse workplace. Kumba’s Everyone’s Dignity Matters programme fosters a workplace free from bullying, harassment and victimisation, and promotes the prevention of gender-based violence while supporting those who have experienced dignity harm. Our Decency Task Team, in collaboration with the Living with Dignity Hub, resolved and closed 83 reported dignity harm cases; while 34 of the total 126 cases reported for 2025 were still under investigation and related processes at the end of the reporting period. 6 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Sustainability performance Healthy environment Biodiversity We aim to achieve a net-positive impact (NPI) across all our operations by closure through integrating mine closure planning with land rehabilitation which supports alternative economies. This is particularly important as our operations are located in areas of high biodiversity value. In 2025 we planted 1,274 trees across our operations in support of the Department of Forestry, Fisheries and the Environment’s Ten Million Trees Programme. Both operations achieved 100% compliance against the biodiversity management plan which brings us closer to our NPI ambition. In terms of our rehabilitation efforts, 20.5 hectares (ha) of land was reshaped and 21.7 ha was seeded at Sishen while Kolomela reshaped 34.9 ha and seeded 34.8 ha. Over the past five years, between Sishen and Kolomela, we have reshaped 514.2 ha and seeded 514.4 ha of land. Climate change Bulk earthworks for the 63 megawatt (MW) solar PV plant at Sishen have been completed. The PV plant will reduce Sishen’s scope 2 carbon emissions by approximately 33% and is being built on a disused waste dump, reducing our rehabilitation requirements at closure. Construction of the solar PV plant will commence following financial close. At Kolomela, the 11 MW wheeled renewable energy offtake agreement with Envusa Energy, powered by a combination of wind and solar projects, is expected to reduce scope 2 emissions by approximately 85%. Wheeled energy supply is expected to commence during the first half of the year. The reintroduction of previously parked mining fleet, longer haulage distances at Sishen and Kolomela as well as the increase in waste mining led to higher energy consumption and emissions. Total energy consumption increased by 5% to 7.464 million gigajoules (GJ) (2024: 7.084 million GJ), greenhouse gas emissions increased by 12% to 0.943 million tonnes CO 2 equivalent (MtCO 2e) (2024: 0.839MtCO2e) and energy-use intensity increased by 4% to 0.210 GJ per tonne (2024: 0.202 GJ per tonne). Several initiatives have been introduced to reduce our diesel usage such as, the commissioning of the Western Waste Dump at Sishen to shorten haulage distances and the introduction of in-pit fuelling at Kolomela reducing distances travelled to refuel. Water stewardship Water is a fundamental resource for our operations and surrounding communities. Although we operate in a water- stressed region, both of our mines are water-positive and Kumba plays a critical role in alleviating water shortages by providing excess clean groundwater into the Vaal Gamagara pipeline to support the Vaal Central Water regional water supply. We supported the completion of the first phase of the regional water balance, providing us with a better understanding of the current water demands across all users of the Vaal Gamagara Scheme. Available water resources were evaluated and the requirements projected, to plan and manage risks as well as inform engagements on the long-term water security of the region. Kumba supplied 16,883 ML (2024: 17,526 ML) of water to the broader Northern Cape region for industrial and domestic consumption, providing drinking water to around 200,000 people. Water diverted at Sishen increased as a result of our previous investment in the dewatering infrastructure, improving dewatering rates. At Kolomela water diverted was lower as power line trips, electrical faults, vandalism and the Vaal Gamagara pipeline constraints impacted dewatering rates. During the first half of 2026, the regional water balance, site wide water balance and hydraulic models will be updated to inform decision making on operational constraints and future infrastructure upgrades. Freshwater withdrawals decreased by 4% to 6,971 ML (2024: 7,230 ML) due to prioritising the use of grey water at our mines and above average rainfall. Tailings storage facilities (TSF) Kumba manages two TSFs, including one active facility at Kolomela, which was constructed to its final height. Sishen has one combined TSF comprising four compartments, of which only one compartment is active at any one time. In August 2025, the Sishen TSF, which is rated as having “extreme” potential consequences under the Global Industry Standard on Tailings Management (GISTM), achieved 100% conformance with the GISTM, 24 months ahead of schedule. The inactive Sishen Old Protea TSF and the active TSF at Kolomela, which are both rated as having a “high” potential consequence under the GISTM, achieved 87% and 89%, respectively. We aim to achieve full conformance for the two facilities in 2026. Disclosure on the GISTM conformance status of the fourth TSF (Sishen Old Western) is not required, as the facility is inactive and forms part of a waste rock dump operated in conformance with the Anglo American Mining Technical Standard. Therefore, the current and end state of the TSF is fully covered by large volumes of waste rock. During the second half of 2026, we will be undertaking a third-party assurance of Kumba’s 2025 GISTM conformance disclosure statement of the “high” potential consequence facilities at Sishen and Kolomela. 7 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Sustainability performance continued Thriving communities Kumba is committed to facilitating sustainable value and delivering a lasting, positive legacy to our local host communities beyond the life of our mines. During the period under review, Kumba spent R485 million in direct social investment in our local communities. Livelihoods We remain committed to inclusive procurement and localising our supplier footprint by building capacity in our host communities. We procured R19.0 billion (2024: R17.3 billion) in goods and services from broad-based black economic empowerment (B-BBEE) suppliers, of this R3.5 billion (2024: R3.9 billion) was directed to local host community suppliers. During the period, we facilitated over 800 jobs in our host communities, bringing the cumulative number of jobs supported since 2018 to well over 42,000. In total, 84% of our people are employed from our local mine communities in the Northern Cape region, demonstrating our long- standing commitment to shared growth and inclusive development in the communities. Education Education is key in equipping community members with the skills needed to find meaningful employment. Through the Anglo American South African Education Programme, we supported more than 10,000 learners and 330 teachers in 19 schools, and our community bursary schemes supported 78 local students in scarce skills disciplines. We contributed to the construction of the Lebelelang Disability Centre, which is built on a former dumping site, improving the quality of life for people with disabilities. In partnership with the Sol Plaatje University, we completed the White City Library in Kolomela. The library, which was built on a waste site, features a Sol Plaatje University learning hub bringing tertiary education closer to our communities. Health We invested in practical solutions that remove barriers to care and support active living. We’ve reached over 79,000 community members through our support of all six clinics, which have achieved the Ideal Clinic status. We invested in sports and recreation facilities in Kathu, which included a swimming pool and football facilities, fostering dignity, safety and community cohesion. We launched the Collect & Go Smart eLockers at two clinics, enabling effective access to chronic medication and disease management. Since the launch, 461 patients have registered and 547 parcels have been collected, reducing missed refills and easing clinic congestion. Trusted corporate leader Kumba remained focused on embedding its reputation as a trusted corporate leader through developing trust, providing ethical value chains and improved accountability to the communities we work with. In 2024, Kumba became the first African iron ore miner to achieve the Initiative for Responsible Mining Assurance (IRMA) 75. During 2025, both operations completed their surveillance audit against IRMA and maintained IRMA 75, strengthening our position as a supplier of responsibly mined iron ore. Our B-BBEE rating further improved to level 4 (2024: level 5), demonstrating our commitment to transformation through our investment in skills and supplier development, as well as local procurement spend. Kumba’s economic contribution to our stakeholders amounted to R58.0 billion, including tax and mineral royalties paid to the government fiscus. 8 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Market overview The Platts 62% Iron Ore Index, cost and freight (CFR) China, averaged US$102 per dry metric tonne (dmt) in 2025, compared with US$109/dmt in the previous year. China’s lacklustre domestic steel demand continued to be underpinned by the export market, with net finished steel exports rising 8% year on year to 113 Mt. Crude steel output declined for a fifth consecutive year, falling 4.6% year on year to 955 Mt. However, the drop in pig iron production was relatively narrow - down by 2.7% year on year to 830 Mt, reflecting lower scrap usage in China’s blast furnaces last year. Property markets remain persistently weak, as real estate investment contracted for a fourth consecutive year, down 17% year on year and property transactions across 30 major cities fell 13% in 2025. Fixed asset investment in infrastructure and transport weakened in the second half, erasing stable growth in the first half, and fell 2% and 1% year on year respectively. For the full year of 2025, China's real GDP grew by 5.0%, in line with the target of "around 5%", while industrial production grew by 5.9%, reflecting robust external demand. The 2025 Central Economic Work Conference signalled a shift from “crisis response” to structural rebalancing. Policymakers are prioritising “investment in people”, committing to an income-growth action plan and expanded “trade-in” scheme to anchor the domestic cycle. On the iron ore supply side, global exports registered an increase of approximately 2% despite declines from Ukraine, India, and major Australian miners. Gains were driven largely by the junior Australian producers and higher shipments from Brazil, South Africa, and Canada, with Brazil accounting for more than half of the year-on-year increase. The 65–62 differential averaged around US$13/dmt in 2025, slightly below the previous year, as the improvement in Chinese mill profitability, observed at the start of the year, proved transitory. Profitability headwinds began to weigh on Chinese steelmakers in the third quarter, prompting mills to prioritise cost control. Longer term, demand for premium ores remains supported by steelmakers’ productivity optimisation and the shift to l o w - c a r b o n s t e e l m a k i n g , w i t h t h e C B A M i m p l e m e n t a t i o n i n Europe and China’s National CETS expansion to the domestic steel industry. Lump premium ended the year at near historic lows of US$0.035/dmtu (2025 average: US$0.145/dmtu), reflecting an increase in product supply from Australia and Brazil. Nonetheless, market conditions are likely to improve with medium-term supply growth limited, fuelling a recovery in premia from current levels. Operational performance Operational performance summary (unaudited) 000 tonnes December 2025 December 2024 % change Total tonnes mined 208,563 197,701 5 Total waste stripping 165,565 155,706 6 Total production 36,084 35,731 1 Total sales 37,038 36,251 2 Total tonnes mined 208,563 197,701 5 Sishen 168,428 164,060 3 Kolomela 40,135 33,641 19 Total waste stripping 165,565 155,706 6 Sishen 137,236 133,940 2 Kolomela 28,329 21,766 30 Total production by mine 36,084 35,731 1 Sishen 25,289 25,661 (1) Kolomela 10,795 10,070 7 Total sales 37,038 36,251 2 Lump 24,853 23,807 4 Fines 12,185 12,444 (2) 9 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Mining and production Kumba delivered a solid and consistent operational performance, demonstrating our commitment to operational excellence. Total tonnes mined increased by 5% to 208.6 Mt (2024: 197.7 Mt) and total waste stripping by 6% to 165.6 Mt (2024: 155.7 Mt). While heavy seasonal rainfall impacted shovel reliability, particularly at Sishen in the first half, the ramp-up in mining activity gained momentum in the second half of 2025. Waste mining at Sishen increased by 2% to 137.2 Mt (2024: 133.9 Mt), while the waste stripping ratio reduced to 3.8 (2024: 4.4). Kolomela’s waste mining increased by 30% to 28.3 Mt (2024: 21.8 Mt) and the waste stripping ratio increased to 4.7 (2024: 1.8). Total production for the year increased by 1.0% to 36.1 Mt (2024: 35.7 Mt), well within the guidance of 35 – 37 Mt. In line with our approach of maintaining production flexibility, lower production at Sishen was proactively offset by an increase in production at Kolomela. Sishen’s production decreased by 1% to 25.3 Mt (2024: 25.7 Mt). This was due to a planned drawdown of high levels of finished stock and plant maintenance brought forward on the dense media separation (DMS) and Jig plants, in preparation for the main tie-in of our UHDMS technology in the second half of 2026. Good sprint capacity at Kolomela enabled a 7% increase in production to 10.8 Mt (2024: 10.1 Mt), resulting in an overall increase in production. Update on UHDMS project Progress on the overall UHDMS project is at 37%, and 90% of all engineering work has been completed. Major capital spend items have been secured. Steady progress continues to be made on the modular substation delivery and staging. Construction of the first coarse and fines modules continues to progress with the current focus on completing the mechanical, piping and electrical installations. Critical milestones have been achieved for the main tie-in of the bulk materials handling system, which will take place in the second half of 2026. To derisk the main shut, work on the fabrication, pre-assembly and construction of outside structures started in 2025, and will be completed ahead of the shut. In addition, the procurement of all the major construction packages has been completed and onboarding of staff is underway. Background on the UHDMS project The UHDMS project at Sishen will convert the current DMS processing plant at Sishen to UHDMS technology. This technology uses specialised ferrosilicon in the plant processing of raw iron ore and allows greater flexibility to process a wider range of iron ore (Fe) grades and densities. The technology will increase the proportion of premium iron ore, and lower the waste stripping ratio, while maintaining Sishen’s high lump:fine ratio of 70:30 on average. The implementation will follow a modular approach, with six UHDMS coarse modules and five fines modules being converted in the existing plant. The plant is expected to reach full capacity by the end of 2028. During the phased implementation, the DMS modules that are not under construction, as well as the Jig plant, will continue to run, and production will be supplemented by finished product stock. The business value of the UHDMS technology remains compelling and includes: • lowering the cut-off grade, which reduces the stripping ratio • increasing the volume of premium-grade products from less than 20% to above 50% • increasing Sishen’s life-of-asset by six years and providing optionality to further extend the life-of-asset. Sales and logistics Ore-railed to Saldanha Bay port improved by 6% to 37.6 Mt (2024: 35.6 Mt) despite four derailments in the year. The 10-day annual logistics maintenance and 26-day shut to refurbish stacker reclaimer 3 in the fourth quarter was successfully completed within the respective planned timeframes reflecting the benefit of strong collaboration between the Ore Users’ Forum (OUF) and the Transnet operational teams. As a result, sales increased by 2% to 37.0 Mt (2024: 36.3 Mt), including third-party stock of 0.7 Mt (2024: 0.7 Mt). The overall uplift in performance demonstrates the progress made in the past year through the Mutual Cooperation Agreement (MCA) and the Ore Corridor Restoration programme (OCR). Closing finished stock was consistent at 7.5 Mt. The improvement in rail performance provided an opportunity to strategically reduce mine stockpiles to 5.7 Mt (2024: 6.9 Mt) and increase stock at Saldanha Bay port to more optimal levels of 1.8 Mt (2024: 0.5 Mt). In the medium to long-term, Kumba continues to target sales of between 45% to 55% to regions outside of China. China’s share of Kumba’s export sales increased to 56% (2024: 54%) of total sales, with Chinese steel production continuing to be underpinned by strong exports. Europe represented 21% (2024: 24.4%) of sales and the rest of Asia (Japan, South Korea and Taiwan) increased to 23% (2024: 21.6%). Sales to China are predominantly on a contract of affreightment basis. As a result, sales on a CFR basis increased to 66% (2024: 65%) of total export sales volumes. 10 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 The recovery of the logistics network remains key to an efficient value chain. Pleasingly, the joint collaboration between Transnet and the OUF, through the OCR and the MCA, which enables urgent maintenance work to be executed more timeously, efficiently and effectively is making a positive difference. In terms of the Private Sector Partnership, in November 2025, along with the OUF, Kumba submitted a follow up response to the Request for Information to government, and we await the commercial Request for Proposal. Financial results Financial performance December 2025 December 2024 % change Average realised FOB export price (US$/wmt) 95 92 3 Revenue (Rm) 70,077 68,529 2 Operating expenses (Rm) 45,233 46,105 (2) C1 unit cost (US$/wmt) 40 39 3 Adjusted EBITDA (Rm) 31,923 28,134 14 Adjusted EBITDA margin (%) 46 41 5 pp Operating margin (%) 37 38 (1) pp Cash breakeven price (US$/wmt) 68 74 (8) Headline earnings per share (R/share) 45.97 38.94 18 Total capital expenditure (Rm) 10,411 9,000 16 Attributable free cash flow (Rm) 11,965 14,467 (17) Net cash (Rm) 14,914 14,717 1 Total cash dividend per share (R/share) 32.03 38.67 (17) ROCE (%) 46 41 5 pp Kumba delivered a solid set of results driven by our focus on operational excellence, improving iron ore prices, higher sales volumes and our commitment to a disciplined capital allocation strategy. These results enabled the Board to declare a final cash dividend of R15.43 per share. Combined with our interim dividend of R16.60 per share, the total dividends for the year amounted to R32.03 per share. Our approach is to balance investment in growth with shareholder returns, reflected in our 70% payout ratio and 9% dividend yield. Adjusted EBITDA grew by 14% to R31.9 billion, lifting the EBITDA margin to 46% from 41%. Earnings included penalty income from Transnet for logistics underperformance. Supported by a resilient iron ore market, we achieved an average realised price of US$95/wmt, 12% above the benchmark FOB export price of US$85/wmt. Our high- quality products attracted an Fe premium of US$3/tonne, lump premium of US$6/tonne and positive timing effect of US$1/tonne. Together with higher sales volumes, total revenue increased by 2% to R70.1 billion. Importantly, we continued to focus on the areas within our control, maintaining overall production stability aimed at margin enhancement and embedding a cost conscious, performance-driven culture. Operating expenses decreased by 2% to R45.2 billion (2024: R46.1 billion). Based on a constant exchange rate of R18.60/ US$, the C1 unit cost dropped to US$38/t. Unit costs were flat at Sishen and Kolomela delivered a 7% unit cost reduction. Capital expenditure (capex) of R10.4 billion was principally driven by an increase in deferred stripping capex and investment in our UHDMS project, while stay-in-business (SIB) capex remained flat. We are maintaining flexibility in our capital spending and phasing of our UHDMS project to accommodate market volatility, optimise project execution and promote capital efficiency. We generated cash from operations of R32.4 billion and an attributable free cash flow of R12.0 billion. Our balance sheet remained robust with a net cash position of R14.9 billion and our return on capital employed improved from 41% to 46% on a stronger EBITDA. Kumba delivered R58.0 billion in economic contribution, including R19.0 billion to our BEE suppliers, of which R3.5 billion benefitted our local host community suppliers. We paid R7.4 billion in income taxes and mineral royalties, helping our government to build infrastructure, schools and hospitals to enable economic growth and provide education and healthcare to our fellow South Africans. Unlocking further value enables us to reinvest in our business while continuing to deliver value to all of our stakeholders, well into the future. 11 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Financial results continued Revenue Total revenue increased by 2% to R70.1 billion (2024: R68.5 billion), primarily due to: • a 3% increase in the average realised FOB iron ore export price of US$95/wmt (2024: US$92/wmt), resulting in a R3.1 billion increase in revenue; and • a 2% increase in total sales volumes of 37.0 Mt (2024: 36.3 Mt), led to an increase in revenue of R1.3 billion. The increase in revenue was partly offset by • A 2% stronger average rand/US dollar exchange rate of R17.89/US$ (2024: R18.33/US$1), leading to a R1.6 billion decrease in revenue; and • A decrease in shipping revenue of 15%, to R6.9 billion (2024: R8.2 billion) due to lower freight rates of $16/wmt (2024: $18/wmt). Kumba’s high-grade iron ore content averaging 64.0% (2024: 64.1%) and lump-to-fine ratio of 67: 33 (2024: 66:34) continued to attract a premium due to its properties, which support efficient lower carbon emitting steelmaking processes. The average realised price of US$95/wmt included a total product premium of US$10/wmt on the Platts 62 FOB export price of US$85/wmt. The product premium is comprised of a premium for lump of US$6/wmt, Fe iron content of US$3/wmt and positive timing effect of US$1/wmt. Operating expenses Total operating expenses decreased by 2% to R45.2 billion (2024: R46.1 billion) reflecting the benefit of cost savings and lower non-cash costs. Cost savings were driven by reduction in contractor mining activity of R287 million and a non-recurring cost benefit of R386 million, following the impact of our business reconfiguration in 2024. This resulted in savings of R673 million in 2025 and combined with the R4.4 billion achieved in 2024, we delivered R5.1 billion of cumulative savings. Based on a constant exchange rate of R18.60/ US$, the C1 unit cost improved to US$38/wmt, which is below our 2025 target of US$39/wmt. The C1 unit cost increased to US$40/wmt at a stronger exchange rate of R17.89/US$. Operating costs also include the following: ▪ Shipping costs decrease of 14% to R6.8 billion (2024: R8.0 billion) due to lower freight rates of US$16.4/wmt (2024: US$18.4/wmt). ▪ Increase of R0.8 billion in other expenses to R3.1 billion (2024: R2.3 billion), mainly due to a change in the rehabilitation provision of R0.6 billion from change in estimate and useful lives of assets. ▪ Corporate costs increased by R0.5 billion to R2.3 billion (2024: R1.8 billion) due to higher corporate recharges. ▪ Transportation and selling cost increased by R0.6 billion to R8.5 billion (2024: R7.9 billion) due to increased rail and shipping volumes. ▪ Raw materials and consumables increased by R0.4 billion to R2.4 billion (2024: R2.0 billion) ▪ Repairs and maintenance increased to R3.8 billion (2024: R3.5 billion) as a result of the 6% higher mining volumes. Non-cash costs of R0.6 billion (2024: R4.1 billion) primarily related to the following items: • Capitalised deferred stripping cost increase of 28% to R4.1 billion (2024: R3.2 billion) due to higher waste stripping in the North mine at Sishen and Kapstevel South at Kolomela. • Positive finished stock movement of R1.6 billion to R0.9 billion in 2025 from negative R0.7 billion in 2024, owing to a higher stock valuation from a higher rate. • Positive work-in-progress (WIP) movement of R0.8 billion to R1 million in 2025 from a negative R0.8 billion in 2024, mainly due to higher ore mined and an increase in ore stockpiles following the correction of the Kolomela ore stock densities. • Reduction in inventory provision of R0.6 billion from R0.5 billion in 2025 to a negative R71million in 2024, after a comprehensive technical assessment of the stockpiles at Sishen against which the provision was originally raised. • Depreciation of property, plant and equipment rose 8% to R6.2 billion (2024: R5.7 billion), as a result of an increase in Kumba’s asset base during the year. Sishen's cash unit cost improved marginally to R530/dmt (2024: R531/dmt), well within the full year 2025 guidance of R510 – 540/dmt. The benefit of a positive deferred stripping and WIP movement as well as lower input prices (diesel and tyres), were offset by the cost of inflation and lower plant production of 2% to 25.3 Mt (2024: 25.7 Mt). Kolomela's cash unit cost improved by 7% to R374/dmt (2024: R404/dmt), below the guidance of R430 – 460/dmt. The cost of inflation and higher mining volumes were more than offset by a 7% increase in production to 10.8 Mt (2024: 10.1 Mt), positive deferred stripping, lower WIP utilisation and lower input prices (diesel and tyres). 12 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Adjusted EBITDA Kumba’s earnings largely reflect the benefit of higher iron ore prices and higher sales volumes, as well as a decrease in operating expenses, partly offset by a stronger ZAR/US$ exchange rate on revenue. Adjusted EBITDA includes other operating income which relates to penalty income from Transnet for logistics underperformance amounting to R942 million. These factors resulted in adjusted EBITDA growth of 14% to R31.9 billion (2024: R28.1 billion) and higher EBITDA margin of 46% (2024: 41%). Despite the macro uncertainty Kumba’s resilient performance resulted in our break-even price improving from US$74/wmt to US$68/wmt. Our market leading high-quality products earned a price premium of US$7/wmt and we benefitted from a decrease in freight costs of US$2/wmt. This was partly offset by an increase in operating expenses of US$2/wmt and an increase in SIB capex of US$1/wmt, resulting in Kumba’s break-even price reducing by US$6/wmt to end at US$68/wmt in 2025. Cash flow, value creation and statement of financial position Kumba delivered attributable free cash flow of R12.0 billion (2024: R14.5 billion), resulting in a net cash position of R14.9 billion (2024: R14.7 billion). Cash flow generated from operations of R32.4 billion (2024: R34.8 billion) and includes adjusted EBITDA of R31.9 billion (2024: R28.1 billion). Net working capital decreased by 3% to R13.7 billion (2024: R14.2 billion). This was driven by a 28% increase in trade and other payables to R12.5 billion (2024: R9.7 billion) owing to timing of supplier payments, a short- term incentive accrual and higher mineral royalty payable. Inventory increased by 9% to R19.8 billion (2024: R18.1 billion) driven by an increase in WIP stockpiles at Kolomela and a partial reduction of stock provision at Sishen, finished goods at current rates and an increase in spares. Trade and other receivables increased by 11% to R6.4 billion (2024: R5.8 billion), due to a penalty receivable and higher Value Added Tax (VAT) receivable, partly offset by a shorter collection period. Total capex of R10.4 billion (2024: R9.0 billion) relates to R4.5 billion of SIB spend, R4.1 billion of deferred stripping, and R1.8 billion of expansion capex. The increase in capital creditors of R0.4 billion (2024: decrease of R673 million) relates to capex incurred during the year but not yet paid as at the reporting date, net of prior year capex paid during the year. The 2025 full-year cash capex net of capital creditors was R10.0 billion (2024: R9.7 billion). SIB capex was flat and represents spend on capital spares, plant and infrastructure upgrades as well as environmental compliance projects to sustain our business. Deferred stripping capex increased due to a higher stripping ratio at Kapstevel South mine. Expansion capex mainly related to our UHDMS project of R1.7 billion and includes work brought forward from 2026 to 2025 to prepare for the main tie-in. In total, Kumba created enduring value of R58.0 billion. Besides capital investments of R10.4 billion, these include: • cash dividends of R13.6 billion (2024: R16.5 billion) • paying total income tax of R5.9 billion (2024: R5.9 billion) and mineral royalties of R1.5 billion (2024: R1.4 billion) to government • providing employment and paying salaries and benefits of R7.1 billion (2024: R6.7 billion) • supporting local businesses through R19.0 billion (2024: R17.3 billion) of BEE supplier spend, including R3.5 billion (2024: R3.9 billion) to safeguard the livelihoods of our local host community suppliers • building local communities through R485 million (2024: R403.0 million) in direct social spend. Our liquidity position at 31 December 2025 consisted of R30.9 billion (2024: R30.7 billion) of net cash resources and debt facilities. Debt facilities consist of committed revolving credit facilities of R16 billion (2024: R16 billion). As at 31 December 2025, the committed facility had not been drawn down. Kumba's debt facilities also include undrawn uncommitted facilities of R8.2 billion (2024: R8.2 billion). Kumba delivered attributable and headline earnings per share of R45.57 and R45.97 per share (2024: R45.81 and R38.94 per share), respectively. This supported the Board's decision to declare a final cash dividend of R15.43 per share. Together with our interim cash dividend of R16.60 per share, the total cash dividend for the year decreased by 17% to R32.03 per share (2024: R38.67 per share) and represents 70% of headline earnings. Ore Reserves and Mineral Resources The 2025 Ore Reserve (and Saleable Product) and exclusive Mineral Resource estimates have been derived by way of a comprehensive update of Sishen and Kolomela’s life-of-asset plans (LoAPs), including pit optimisations. This was based on geological model revisions for deposits within the Kolomela and Sishen mining right areas, which reflect additional borehole sampling data obtained since the previous model iteration. 13 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 The following key principles were applied: • Alignment with Kumba’s strategic objectives: The LoAP was compiled as a fully integrated schedule designed to unlock the full value of Kumba’s core assets. The plan optimises site product feed strategies, accounts for rail capacity constraints and sensitivities, and ensures consistent delivery of premium lump products. Furthermore, the LoAP is integrated upstream with the resource development plan and downstream with the financial valuation model. This integrated approach resulted in the decision to plan for the recommissioning of the small-scale UHDMS plant at Kolomela in 2028 to unlock optimal ore stockpile. • Transition to a sustainable business model: To sustain the business in terms of Ore Reserve estimation consistency, in 2024, Kumba implemented a cost-efficiency approach in deriving its economic constraint to spatially envelope (designed pit layouts) its Ore Reserves. In 2025, this was further refined by spatially constraining Ore Reserves applying a cash break-even price methodology (long-term price, less cash margin), in line with business objectives and recognising the premium pricing achieved for Kumba’s products. • Updated macro-economic assumptions: The estimates incorporate Anglo American’s revised outlook, which includes a 3% increase in the long-term iron ore price and a 6% appreciation of the ZAR/US$ exchange rate compared to 2024 assumptions. Ore Reserves remained consistent over the reserve life, decreasing by 1% (-9.1 Mt) and Saleable Product by 2% (-11.8 Mt) year on year, primarily due to the 2025 production, which was mostly offset by the conversion of Mineral Resources to Ore Reserves. Since 2022, in support of our strategic priorities of unlocking value from our core assets and positioning for a sustainable future, we have delivered 175.1 Mt of cumulative Ore Reserve replenishment (before depletion) through optimisation initiatives. The Sishen and Kolomela life-of-asset has been extended by one year to 2041, compared to 2040 in the 2024 review, primarily as a result of the larger pit design optimisation and recommissioning of the Kolomela UHDMS plant in 2028. Mineral Resources (in addition to Ore Reserves) increased materially by 62% (+292.6 Mt) from 2024 to 2025, creating significant value for our stakeholders through: • Kolomela’s exclusive Mineral Resources increased by 58.1 Mt (+49%), primarily as a result of 75.4 Mt of Mineral Resources declared at a 61% Fe cut-off grade for the Heuningkranz deposit. The overall increase in the Kolomela Mineral Resources was partially offset by the conversion of long-term stockpile medium-grade Indicated Mineral Resources to Probable Ore Reserves, with the planned recommissioning of the small-scale UHDMS plant in 2028 as per the 2025 LoAP. • Sishen’s exclusive Mineral Resources recorded a 67% year-on-year increase of 234.5 Mt, due to a material increase in the resource shell size. In the 2025 pit optimisation, the same diligence was applied to resource shell design as to pit layout design. As a result, the resource shell can effectively be referred to as a resource layout (complete with geotechnical slope designs, including bench, ramp and pushback configurations). Additionally, mineralisation previously classified as sterilised for open pit mining, located close to the Sishen and neighbouring Khumani mine mining right boundary (mining pillar), was considered during pit optimisation. The optimisation process also considered the cost of dismantling infrastructure, as well as the fact that “pillar” mining between Sishen and Khumani was demonstrated and approved in 2024 by the Department of Mineral and Petroleum Resources (DMPR). Consequently, this mineralisation has been included in the revenue factor 1.0 resource shell as Mineral Resources and the associated risks have been captured in the Sishen Mineral Resource risk assessment register. Notably, all additional or exclusive Mineral Resources are defined by the same geological model as the rest of the Mineral Resources. There were no further material changes to the Ore Reserves and Mineral Resources, as disclosed in the 2025 Ore Reserve (and Saleable Product) and Mineral Resource report available at https://www.angloamericankumba.com/investors/ annual-reporting/reports-archive/2025.aspx 14 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Guidance for 2026 For the full year of 2026, our waste guidance is 180 – 195 Mt. Sishen’s waste mining will be maintained at 135 – 145 Mt and Kolomela’s waste mining is expected to increase to between 45 – 50 Mt. Kumba's guidance is subject to Transnet's logistics performance. The production guidance for 2026 is unchanged and is expected to be between 31 – 33 Mt due to the main tie-in of the UHDMS modules. Sales are expected to be between 35 – 37 Mt. During the tie-in, the DMS plant will be shut and finished stock will be drawn down to supplement sales. Production will continue from the Jig plant at Sishen and the Kolomela direct shipping ore (DSO) plant. In 2027 and 2028, production is expected to be between 35 – 37 Mt per annum. Kumba’s unit cost guidance for Sishen is between R530 – R560/dmt and Kolomela’s unit cost guidance of between R430 – R460/dmt is unchanged. Taking into account a stronger exchange rate of R16.00/US$ and the decrease in production to between 31 – 33 Mt to accommodate the UHDMS tie-in, the C1 unit cost in 2026 is expected to increase to US$45/wmt (previously US$40/wmt based on a constant currency of R18.60/US$). Cost optimisation initiatives will focus on a more integrated supply chain management system, the insourcing of previously contracted-out mining services, as well as reviewing our sourcing model for further efficiency opportunities. Kumba’s value-focused approach to capital allocation requires prioritisation of sustaining capital and a sustainable dividend in line with the dividend policy. Global volatility and the strategic imperative to grow the business require a focus on discretionary growth capital options, supported by a strong balance sheet, to position the business for a sustainable future. In the medium term, sustaining capital expenditure is expected to increase to an average of R7.5 billion per annum (previously between R4.0 and R5.0 billion per annum on average). This includes a mining fleet recapitalisation programme of ~R2.5 billion on average per annum to support safety, asset integrity and reliability, and the cost-efficient maintenance of mining equipment. Expansion capex is unchanged and is expected to be ~R2.0 billion on average over the medium term. Expansion capex is focused on delivering value-accretive growth and transformation projects. This relates primarily to our UHDMS project, which is anticipated to be between R1.9 and R2.9 billion per annum in line with the phased investment and execution of the project from 2026 to 2028, followed by a significant reduction in 2029 when the project is expected to be commissioned. Deferred stripping capital expenditure over the medium term is projected to be ~R4.0 billion per annum on average (previously between R4.0 and 4.5 billion per annum on average) due to the stripping ratios in the various areas we will be mining in over the next few years. In terms of 2026, our capital expenditure guidance is forecast at between R13.2 and R14.2 billion, comprising: • SIB spend of between R6.6 and R7.0 billion, of which between R2.5 billion and R2.7 billion has been allocated for heavy mobile equipment (HME) recapitalisation. The rest of the SIB capex relates to plant and infrastructure upgrades, technology, land management and environmental and regulatory compliance projects. • Expansion capital expenditure of between R3.0 and R3.2 billion, largely as a result of our phased investment in the UHDMS technology project. • Deferred stripping capital expenditure of between R3.6 and R4.0 billion is due to mining in higher stripping ratio areas in comparison to the life-of-asset stripping ratio. Looking ahead to 2026, we are refreshing our Sustainability Strategy to ensure that our ambitions remain relevant and that we target tangible value for all our stakeholders. Details will be available in our Sustainability Report, which will be available on the Company’s website www.angloamericankumba.com from 10 April 2026. 15 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Business overview continued for the year ended 31 December 2025 Guidance for 2026 continued Full year guidance (unaudited) 2026 Total sales (Mt)2,3 35 – 37 Total production (Mt)2,3 31 – 33 Sishen ~22 Kolomela ~10 Waste stripping (Mt)3 180 – 195 Sishen 135 – 145 Kolomela 45 - 50 On-mine unit costs (R/tonne) Sishen 530 – 560 Kolomela 430 – 460 C1 unit cost (US$/tonne)1,2 45 Capital expenditure (Rbn) 13.2 – 14.2 SIB spend (including HME recapitalisation) 6.6 – 7.0 Expansion spend 3.0 – 3.2 Deferred stripping spend 3.6 – 4.0 1 Based on foreign exchange rate of R16.00/US$ for 2026. 2 Production, sales volumes and the C1 unit cost are reported as wet metric tonnes, with a moisture content of approximately 1.5%. 3 Volumes referred to for the period are 100% of SIOC, and attributable to Kumba’s shareholders and the non-controlling interests in SIOC. Non-IFRS financial measures A reconciliation of additional non-IFRS financial measures to the equivalent IFRS metrics is provided on pages 120 to 123. Adjusted EBITDA, attributable free cash flow, net asset value attributable to owners of Kumba and net cash are non-IFRS financial measures reported on pages 120 and 121 constitute pro forma financial information in terms of the JSE Limited Listings Requirements. This information is provided for illustrative purposes only and due to its nature may not fairly present the group's financial position, changes in equity, results of operations or cash flows. The underlying information used in the preparation of the pro forma financial information has been prepared using the group's accounting policies, which comply with IFRS. The non-IFRS financial measures included in these annual financial statements are the responsibility of the Company's directors and have been reported on by the group's auditors (refer to pages 124 to 125) in the Independent Auditor’s Assurance Report. Any forecast financial information contained herein, has not been reviewed or reported on by the group's auditors. The Company’s Stock Exchange News Service announcement for the year ended 31 December 2025 will be available on the Company’s website www.angloamericankumba.com at 07:05 CAT and the presentation will be available from 11:00 CAT on 19 February 2026. 16 Kumba Iron Ore Limited Annual Financial Statements 2025 Business overview
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Directors’ report for the year ended 31 December 2025 The directors have pleasure in presenting the annual financial statements of Kumba and the group for the year ended 31 December 2025. Nature of business Kumba was incorporated in South Africa on 16 May 2005 and commenced trading in November 2006, following the unbundling of Kumba from Exxaro Resources Limited (previously Kumba Resources Limited). Subsequent to unbundling, Kumba listed on the JSE Limited on 20 November 2006. Kumba is a mining group of companies focusing on the exploration, extraction, beneficiation, marketing, selling and shipping of iron ore. Kumba produces iron ore in South Africa at Sishen and Kolomela in the Northern Cape province. The nature of the businesses of the group’s subsidiaries, associates and joint arrangements is set out in Annexures 1and 2. Corporate governance The group subscribes to the Code of Good Corporate Practices and Conduct as contained in King IV Report on Corporate Governance for South Africa, 2016 (King IVTM*). The Board has satisfied itself that Kumba has complied in all material aspects with King IV as well as the JSE Limited Listings Requirements throughout the year under review. The corporate governance report will be included in the 2025 Integrated report to be published on 10 April 2026. Statement by the Board of directors The annual financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC), the Companies Act, the JSE Limited Listings Requirements and the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides, as issued by the Accounting Practices Committee, and the Financial Reporting Standards Council. The Board is of the opinion that the consolidated annual financial statements fairly reflect the true financial position of the group at 31 December 2025 and its performance for the year then ended. Financial results The financial statements on pages 29 to 116 set out fully the financial position, results of operations and cash flows of the group and the Company for the financial year ended 31 December 2025. The financial statements have been prepared under the supervision of XF Mbambo CA(SA), the Chief Financial Officer. The operating results and business overview are set out on pages 5 to 16. Impact of the logistics performance and the market conditions on the financial results The group has considered the impact of the logistics performance and market conditions on each of its material accounting judgements and estimates. The group’s principal source of estimation uncertainty continues to be in relation to the assumptions used for the assessment of impairment of non-current assets where indicators of impairment are identified. The mines’ annual production profiles have been revised to align with the improved rail performance, which resulted in consistent planned annual production volumes. The iron ore price and rand/US dollar exchange rate assumptions used to forecast future cash flows for impairment indicator assessment purposes have been updated to consider both the short-term observable impact of the rail performance and the market conditions, as well as the forecast medium-and longer-term impacts on the global economy and commodity prices. No further significant estimates have been identified as a result of these three factors, although there is an increased level of uncertainty inherent in all future cash flow forecasts. Capital management The Board takes ultimate responsibility for monitoring debt levels, return on capital, total shareholders’ return and compliance with loan covenants. For more information, refer to note 34.6 to the consolidated financial statements. Share capital The Company’s authorised and issued share capital of 500,000,000 and 322,085,974 shares, respectively, remained unchanged during the year. The net movement in shares relating to employee share incentive schemes was 563,755 million shares. Refer to note 21 to the consolidated financial statements for full details of the authorised, issued and unissued share capital. Dividends Kumba delivered attributable and headline earnings per share of R45.57 and R45.97 per share (2024: R45.81 and R38.94 per share), respectively. This supported the Board's decision to declare a final cash dividend of R15.43 per share. Together with the interim cash dividend of R16.60 per share, the total cash dividend for the year is R32.03 per share (2024: R38.67 per share) and represents 70% of headline earnings in accordance with Kumba’s dividend policy. Subsidiaries, joint arrangements and associates Full particulars of the group’s investment in subsidiaries, associate and joint arrangements are set out in Annexures 1 and 2. * Copyrigh t and trademarks are owned by the Institute of Directors in South Africa, NPC and all of its rights are reserved. 17 Kumba Iron Ore Limited Annual Financial Statements 2025 Directors‘ report
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Directors’ report continued for the year ended 31 December 2025 Equity compensation plans Refer to note 22 to the consolidated financial statements and Annexure 3 of the group annual financial statements, and the detailed remuneration report that will be included in the 2025 Integrated report for a detailed explanation and analysis of movements in the group’s various equity compensation plans available to Executive directors, senior managers and qualifying employees. Segment results Refer to note 1 to the consolidated financial statements for a detailed segmental analysis of the group’s operating results for the year and the financial position as at 31 December 2025. Holding company and related parties Anglo American plc is the group’s ultimate holding company. The interest in the group is held through a 69.71% effective shareholding by Anglo South Africa Proprietary Limited (2024: 69.71%). The analysis of ordinary shareholders is provided on pages 118 to 119. Events after the reporting date Refer to note 32 to the consolidated financial statements for a detailed description of events after the reporting date for the year ended 31 December 2025. The directors are not aware of any other matters or circumstances arising since the end of the year and up to the date of this report, not otherwise dealt with in this report. Update on the South African Revenue Service (SARS) litigation matter The matter was concluded in December 2025 when the Constitutional Court rejected SARS’s Application for Leave to Appeal the Supreme Court of Appeal (SCA) judgment, which ruled in favour of SIOC, except for certain legal costs which the court found to be non-deductible. All SARS audits relating to this matter, which had been held in abeyance pending the outcome of the appeal to the Constitutional Court, have been terminated, and those years have now prescribed. Refer to note 31 to the consolidated financial statements for further details. Company Secretary The Company Secretary for Kumba is Ms Fazila Patel. The contact details of the Company Secretary are set out on page 129. Her abridged curriculum vitae is available for inspection at the Company’s registered office. Auditors PricewaterhouseCoopers Inc. (PwC) was appointed as the auditor of Kumba and its subsidiaries on 7 August 2020 and has continued in office for the year ended 31 December 2025 after its reappointment as the auditor for the 2025 financial year at the AGM held on 4 June 2025. At the AGM to be held on 26 May 2026, shareholders will be requested to reappoint PwC and Bilal Laher as the auditor and the lead audit partner of Kumba, respectively, for the 2026 financial year. Directors The names of the directors who were in office during the year and at the date of this report will be set out in the 2025 Integrated report to be published on 10 April 2026. The remuneration and fees of directors as well as the directors’ beneficial interest in Kumba are set out in note 35 to the consolidated financial statements. The following changes in the Board and its committees were effected: • Josephine Tsele, representing the Industrial Development Corporation (IDC), stepped down as a Non-executive director on 15 May 2025, and as a member of the Social, Ethics and Transformation Committee, the Safety, Health and Sustainable Development Committee and the Strategy and Investment Committee. • Themba Mkhwanazi, who was representing Anglo American plc, stepped down as a Non-executive director of the Board and as a member of the Human Resources and Remuneration Committee and the Strategy and Investment Committee on 30 June 2025. • Ruben Fernandes was appointed as a Non-executive director on 1 July 2025, representing Anglo American plc. He is a member of the Safety, Health and Sustainable Development Committee and a member of the Strategy and Investment Committee. • Mark Goliath was appointed as a Non-executive director on 1 July 2025, representing the IDC. He is a member of the Social, Ethics and Transformation Committee and the Strategy and Investment Committee. • Bothwell Mazarura stepped down as the Chief Financial Officer and an Executive director, effective from 31 December 2025, and as a member of the Social, Ethics and Transformation Committee and the Strategy and Investment Committee on the same date. • Xolani Mbambo was appointed as Chief Financial Officer Designate from 1 December 2025 to 31 December 2025. He was then appointed as Chief Financial Officer and an Executive director on 1 January 2026 and as a member of the Social, Ethics and Transformation Committee and the Strategy and Investment Committee. Prescribed officers for SIOC The group’s Prescribed officers include members of the Executive Committee for SIOC. The names of the Prescribed officers who served during the year and as at the date of this report are set out in the 2025 Integrated report. The remuneration and fees of the Prescribed officers will be set out in note 35 to the consolidated financial statements. In addition to the change to the Executive directors, the following change to the Executive management was announced during the 2025 financial year: • André Roux, who was the General Manager for the Northern Cape hub, exited the group through a voluntary separation agreement, effective from 30 November 2025. 18 Kumba Iron Ore Limited Annual Financial Statements 2025 Directors‘ report
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Directors’ report continued for the year ended 31 December 2025 Special resolutions On 4 June 2025, the shareholders of Kumba resolved the following: 1. In terms of the JSE Limited Listings Requirements, the directors are hereby authorised, by way of a general authority, to issue the authorised but unissued ordinary shares of 1 cent each in the capital of the Company for cash, as and when suitable opportunities arise, subject to both the Memorandum of Incorporation (MoI) of the Company and the Companies Act. 2. In terms of section 66(9) of the Companies Act and on recommendation of the Human Resources and Remuneration Committee, the Company be and is hereby authorised to remunerate its Non-executive directors for their services as directors and/or any fees related thereto in accordance with the table below: Board member Proposed for the period from 4 June 2025 (exclusive of VAT) Proposed increase % Fees paid during 2024 2.1 Board Chairperson* 2,438,183 15.0 2,120,159 2.2 Ordinary Board member 485,268 20.0 404,390 2.3 Lead independent director** 1,511,242 — 1,511,242 2.4 Audit Committee Chairperson 471,912 5.0 449,440 2.5 Audit Committee member 235,956 5.0 224,720 2.6 Strategy and Investment Committee Chairperson 385,840 — 385,840 2.7 Strategy and Investment Committee member 198,432 — 198,432 2.8 Social, Ethics and Transformation Committee Chairperson 385,840 — 385,840 2.9 Social, Ethics and Transformation Committee member 198,432 — 198,432 2.10 Nominations and Governance Committee member 198,432 — 198,432 2.11 Human Resources and Remuneration Committee Chairperson 418,912 — 418,912 2.12 Human Resources and Remuneration Committee member 209,456 — 209,456 2.13 Safety, Health and Sustainable Development Committee Chairperson 385,840 — 385,840 2.14 Safety, Health and Sustainable Development Committee member 198,432 — 198,432 2.15 Special Board Sub-committee Chairperson*** 385,840 — 385,840 2.16 Special Board Sub-committee member*** 198,432 — 198,432 * The Chairperson of the Board chairs the Nominations and Governance Committee. He is also a member of the Human Resources and Remuneration Committee and chairs the Safety, Health and Sustainable Development Committee. He attends all other Committee meetings. He does not receive any additional remuneration in this regard. ** The lead Independent non-executive director chairs the Strategy and Investment Committee and the Social, Ethics and Transformation Committee. She is also a member of the Audit Committee, the Human Resources and Remuneration Committee and the Nominations and Governance Committee. She does not receive any additional remuneration in this regard. *** To provide for an ad hoc sub-committee should this be required. Executive directors do not receive directors’ fees. 3. The Board of directors of the Company may, subject to compliance with the requirements of the Company’s MoI, the Companies Act, and the JSE Limited Listings Requirements, each as presently constituted and as amended from time to time, authorise the Company to provide direct or indirect financial assistance as contemplated in sections 44 and/or section 45 of the Companies Act, by way of loan, guarantee, the provision of security or otherwise. 4. The Board of directors of the Company be and is hereby authorised, by way of a renewable general authority, to approve the repurchase by the Company or by any of its subsidiaries of any of the shares issued by the Company, upon such terms and conditions and in such amounts as the Board of directors may from time to time determine, but subject to the provisions of sections 46 and 48 of the Companies Act, the MoI of the Company and the JSE Limited Listings Requirements. Going concern statement The financial position of the group, its cash flows, liquidity position and debt facilities are set out in the group's consolidated annual financial statements. The group’s liquidity position of R30.9 billion at 31 December 2025 remained strong. The group ended the period in a cash position of R15.1 billion (31 December 2024: R16.9 billion). Further analysis of the cash position and details of the group’s facilities are set out in note 8 to the consolidated financial statements. The Board has considered the group’s cash flow forecasts for the foreseeable future under base case and downside scenarios, with consideration given to the impact of the rail performance and market conditions on both the wider macro-economic environment and the group’s operations. In all the scenarios modelled, the group maintains sufficient liquidity throughout the period of assessment, without the introduction of further mitigating actions. The Board is satisfied that the group’s forecasts and projections, taking into account reasonably possible changes in trading performance, indicate that the group’s liquidity position is sufficient to sustain its operations for the foreseeable future. Furthermore, the group’s current debt facilities are available for use in the foreseeable future. For this reason, the group continues to adopt the going concern basis in the preparation of its financial statements. 19 Kumba Iron Ore Limited Annual Financial Statements 2025 Directors‘ report
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Report of the Audit Committee for the year ended 31 December 2025 Introduction The Audit Committee (the Committee) is pleased to present its report for the financial year ended 31 December 2025, as recommended by the King IV report, the Listings Requirements of the JSE Limited and the Companies Act. The Committee is constituted as a statutory committee of the Board. The scope of the Committee extends to all activities of Kumba and its subsidiaries. The Committee performed the functions required in terms of section 94(2) of the Companies Act on behalf of the group’s subsidiary companies. The Committee has terms of reference in place, which regulate both its statutory duties and those assigned to it by the Board. The terms of reference were reviewed, updated and approved in November 2024. The Committee has conducted its affairs in compliance with its mandate and terms of reference and has fulfilled its responsibilities contained therein. Composition The Audit Committee members, appointed by the Board and approved by the shareholders in respect of the financial year ended 31 December 2025, comprised the following Independent non-executive directors, all of whom have the requisite financial skills, business acumen and experience to fulfil their duties: • SS Ntsaluba (Chairperson) • MS Bomela • A Jeawon • MA Jenkins • NV Mokhesi Brief biographies of the Committee members are available on the Company’s website: www.angloamericankumba.com/about-us/leadership- team/internal-board. The current members of the Committee will be recommended to shareholders for appointment at the AGM of the Company to be held on 26 May 2026, in respect of the financial year ending 31 December 2026. Attendees at Committee meetings In addition to the Committee members, the Chief Executive Officer, Chief Financial Officer, Senior Vice President Risk and Internal Audit, Internal Audit Manager, Principal Risk and Assurance, and senior management in the Finance Department attended meetings of the Committee by invitation, together with the external auditor. The Committee meets independently with the external and internal auditors to discuss pertinent matters as they arise, as well as to discuss matters relating to the year-end audit and finalisation of the interim financial results. The Committee Chairperson also meets separately with external and internal auditors between Committee meetings. Committee meeting attendance During the year under review, the Committee met seven times. Attendance at meetings held during the year is presented in the following table. Member Meeting date Number of meetings attended3/2/2025 12/2/2025 13/3/2025 14/5/2025 21/7/2025 19/09/2025 9/11/2025 SS Ntsaluba (Chairperson) √ √ √ √ √ √ √ 7/7 MS Bomela √ √ √ √ √ √ √ 7/7 A Jeawon √ √ √ √ √ √ √ 7/7 MA Jenkins √ √ √ √ √ √ √ 7/7 NV Mokhesi √ √ √ √ √ A √ 6/7 √ Indicates attendance. 20 Kumba Iron Ore Limited Annual Financial Statements 2025 Report of the Audit Committee
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Report of the Audit Committee continued for the year ended 31 December 2025 Role and responsibilities Statutory duties The Committee is satisfied that it has performed the statutory requirements for an audit committee, as set out in the Companies Act, as well as the functions set out in the terms of reference, and that it has therefore complied with its legal, regulatory, and other responsibilities. There were no reportable irregularities and no complaints regarding the financial reporting brought to the attention of the Committee. External auditors During the year under review, the Committee: • considered and satisfied itself with the independence and objectivity of PwC and Mr Bilal Laher in their respective capacities as the appointed external audit firm and lead audit partner, respectively • approved the auditor’s terms of engagement and fees. Fees for audit-related services incurred during the year amounted to R14.5 million and non-audit fees amounted to R2.6 million (2024: R14.3 million and R2.5 million, respectively) • approved the external auditor’s’ annual plan for the 2025 interim review, annual audit as well as the related scope of work, and the appropriateness of key audit risks identified • reviewed the findings and recommendations of the external auditors and confirmed that there were no noteworthy unresolved matters at the end of the financial year • reviewed the quality and effectiveness of the external audit process, based on the Committee’s own assessment, the views of management and PwC’s own assessment, and found it to be satisfactory. Confirmation was obtained from PwC that no material matters had been raised in regulatory or internal reviews of the audit partner • considered the external auditor’s suitability assessment in terms of paragraph 5.7(h)(iii) of the JSE Limited Listings Requirements • ensured that the reappointment of PwC is presented and included as a resolution at the Company’s AGM Key Audit Committee matters The Committee considered the appropriateness of the key audit matters reported in the external audit opinion and considered the significant accounting judgements and estimates relating to the annual financial statements. The key audit matters considered by the Committee were as follows: Useful lives of property, plant and equipment (PPE) The Committee considered that certain PPE have longer useful lives, and that their useful lives for depreciation purposes are revised to align with the life-of-asset. Following the revision of the LoAP for Sishen and Kolomela, the Committee concurred with management’s assessment of the change in estimate and the impact on the depreciation charge. Transfer of completed assets under construction (AUC) within PPE A review of capitalised project costs included in AUC identified completed projects amounting to R2.3 billion relating to assets which were available for use at 31 December 2024 but had not been transferred from AUC to the relevant asset classes within PPE so that depreciation of those assets could commence. The delayed transfers have resulted in an understatement of depreciation of R227 million for prior years. The Committee concurred with management’s recommendation that the impact of the misstatement on the PPE will require a restatement of the comparative figures in the 2025 AFS. The Committee also considered the impact on depreciation, which was not material, and agreed that the prior year financial statements not be restated in this regard. Kolomela WIP density adjustment A technical assessment performed on Kolomela WIP inventory using more advanced techniques provided reliable density test results, leading to a change in estimate which was applied prospectively from 1 January 2025. The Committee concurred with management’s revised iron ore density measures estimate which resulted in an increase in the value of Kolomela WIP inventory by R615 million. Sishen legacy stockpile provision The recoverability of the legacy WIP stockpiles was reassessed for the 2025 year end. Based on the outcome, the Committee concurred with management’s revised assessment of the legacy stockpile provision. JSE Proactive Monitoring of financial statements JSE pro-active monitoring of Kumba’s 2024 financial statements and 2025 interim financial statements. The Committee reviewed the JSE’s letter on the review of the Company’s financial statements and the proposed response to the JSE. The key matters related to impairment assessments, tax provisions and inventory valuation. The JSE closed the file on the matter with no significant findings noted. 21 Kumba Iron Ore Limited Annual Financial Statements 2025 Report of the Audit Committee
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Report of the Audit Committee continued for the year ended 31 December 2025 Role and responsibilities continued Internal audit and internal controls The internal audit function, under the auspices of Group Internal Audit, reviews and provides assurance on the adequacy and effectiveness of internal controls and internal financial controls. During the year under review, the Committee: • reviewed and approved the annual internal audit coverage plan • considered changes to the internal audit structure which was impacted by the Anglo American Transformation Programme. The new structure came into effect on 1 July 2025. Key changes to the team structure related to management and included a consolidation of the general assurance activities under a new manager. The Committee noted that there were no changes to the Kumba assurance specialist roles ensuring the continuity of work and ongoing stakeholder relationships • evaluated the independence, effectiveness and performance of the internal audit function in terms of its scope, execution of its plan, coverage, independence, skills, resourcing, overall performance and position within the organisation, and found it to be satisfactory • received assurance that proper and adequate accounting records were maintained • considered the internal audit reports on the group’s systems of internal controls, including financial controls, and business risk management • reviewed significant issues raised by the Internal Audit Manager and the processes and the adequacy of corrective action in response to internal audit findings and considered management’s responses to adverse internal audit findings • met with the Senior Vice President Risk and Internal Audit and the Internal Audit Manager independently of management. Risk management The Committee is responsible for reviewing the effectiveness of systems for internal control, financial reporting and financial risk management and considering the major findings of any internal investigations into control weaknesses, fraud or misconduct and management's response thereto. The Committee considered and relied on the work of the Risk Management and Ethics Function, Risk and Internal Audit as well as the Social, Ethics and Transformation Committee on the non-financial-related risk areas. The Committee is responsible for overseeing the value delivery on Information Technology and ensuring that IT forms an integral part of the Company’s risk management. An anonymous ethics line is in place. The monitoring of whistleblower reports is shared between the Committee and the Social, Ethics and Transformation Committee. Combined assurance The Committee is of the view that the framework in place for combined assurance is adequate and is achieving the objective of an effective, integrated approach across the disciplines of risk management, compliance and audit. Expertise of the Chief Financial Officer and finance function The Committee has evaluated and is satisfied with the appropriateness of the expertise and experience of the Chief Financial Officer in accordance with the Listings Requirements of the JSE Limited, and is satisfied with the resources, expertise, succession and experience of Kumba’s finance function. Key focus areas in 2025 The significant areas of focus for the Committee in the 2025 financial year included: Unlock the full potential of the core • Continuing to ensure that the group’s balance sheet is strengthened • Monitoring the implementation of the initiatives to contain costs identified under Project Meraki • Review and recommend the approval of the group’s significant accounting matters • Overseeing the adequacy of the Company’s current approach to fraud risk management Position for a sustainable future • Consider the group’s approach and the responsiveness to manage the impact of the regulatory and other macro-environmental developments on the control environment and the financial statements • Review the quarterly business performance, solvency and liquidity and going concern assessments • Oversight of the controls in place to prepare, protect, detect and respond to a cyber attack including the management of the consequences of a cybersecurity incident • Ensuring that an appropriate capital structure to sustain the business is maintained • Implementation of Sustainability (IFRS S1) and Climate (IFRS S2) disclosures, including periodic updates on management’s preparations, gap analyses and materiality assessments Chief Executive and Chief Financial Officer responsibility statement A comprehensive risk and control matrix covering all business processes that have an impact on financial reporting, the review and testing of all key controls, and the final year-end sign-off by all the relevant control owners is in place. There are effective internal financial controls to confirm the integrity and reliability of the financial statements and to ensure compliance with paragraph 11.37 of the Listings Requirements of the JSE Limited. No material deficiencies were noted. 22 Kumba Iron Ore Limited Annual Financial Statements 2025 Report of the Audit Committee
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Report of the Audit Committee continued for the year ended 31 December 2025 Role and responsibilities continued Annual financial statements and integrated reporting process • The Committee reviewed all formal announcements relating to the Company’s financial performance and found the reporting process and controls that led to the compilation of the financial information to be effective and appropriate. • The Committee also assessed and confirmed the appropriateness of the going concern assumption used in the annual financial statements, considering management budgets and the capital and liquidity profiles. • The Committee ensured that appropriate financial reporting procedures have been established and that these procedures are operating. This included a consideration of all entities included in the consolidated financial statements to ensure that it has access to all financial information to allow for the effective preparation and reporting on the financial statements. • The Committee reviewed and discussed the Integrated report, reporting process and governance and financial information included in the 2025 Integrated report. The Committee recommended to the Board that the annual financial statements be approved. • The Board subsequently approved the annual financial statements, which will be presented at the forthcoming AGM. Key focus areas in 2026 In 2026 the Committee will focus on financial integrity, assurance modernisation and technology-driven improvements: • Integrate AI and relevant technologies into the reporting process. • Ensuring Internal Audit focuses on high-risk areas and monitoring the combined assurance model. • Oversight of the adequacy of the Company’s approach to fraud risk management and other high-risk areas. • Oversight of accounting treatments linked to key reporting matters. • Monitor the financial implications of the Anglo-Teck merger. • Preparation for IFRS 18 implementation and continued oversight of IFRS S1/S2 reporting. • Strengthening cybersecurity controls and financial risk protections. The Committee is satisfied that, in respect of the year under review, it has conducted its affairs and discharged its duties and responsibilities in accordance with its terms of reference, the JSE Limited Listings Requirements, the Companies Act and the King IV Code. Vote of thanks I would like to extend my appreciation to management, the external auditors, internal auditors and fellow Committee members for their work and support throughout the year. SS Ntsaluba Chairperson of the Audit Committee 18 February 2026 23 Kumba Iron Ore Limited Annual Financial Statements 2025 Report of the Audit Committee
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Independent auditor’s report To the shareholders of Kumba Iron Ore Limited Report on the audit of the consolidated and separate financial statements Our opinion In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of Kumba Iron Ore Limited (the Company) and its subsidiaries (together the Group) as at 31 December 2025, and its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with IFRS Accounting Standards and the requirements of the Companies Act of South Africa. What we have audited Kumba Iron Ore Limited's consolidated and separate financial statements set out on pages 29 to 116 comprise: • the consolidated and separate statements of financial position as at 31 December 2025; • the consolidated statement of profit or loss for the year then ended; • the consolidated statement of other comprehensive income for the year then ended; • the separate statement of profit or loss and other comprehensive income for the year then ended; • the consolidated and separate statements of changes in equity for the year then ended; • the consolidated and separate statements of cash flows for the year then ended; and • the notes to the financial statements, including material accounting policy information. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (IRBA Code), as applicable to audits of financial statements of public interest entities, and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards). PricewaterhouseCoopers Inc. 4 Lisbon Lane, Waterfall City, Jukskei View, 2090 Private Bag X36, Sunninghill, 2157 T: +27 (0) 11 797 4000, F: +27 (0) 11 209 5800 Chief Executive Officer: L S Machaba The Company's principal place of business is at 4 Lisbon Lane, Waterfall City, Jukskei View, where a list of directors' names is available for inspection. www.pwc.co.za Reg. no. 1998/012055/21, VAT reg.no. 4950174682 24 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor‘s report ref
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Independent auditor’s report continued Our audit approach Overview Final materiality • Final materiality (consolidated financial statements): R1.3 billion, which represents 5% of consolidated profit before taxation. • Final materiality (separate financial statements): R120.9 million which represents 1% of company revenue. Group audit scope • We conducted full scope audits at seven significant components. • Analytical review procedures were performed over the remaining non-significant and inconsequential components. Key audit matters • Historical non-current WIP stockpiles provision and assessment of net realisable value of non-current inventory. As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. In terms of the IRBA Rule on Enhanced Auditor Reporting for the Audit of Financial Statements of Public Interest Entities, published in Government Gazette Number 49309 dated 15 September 2023 (EAR Rule), we report final materiality and group audit scope below. Final materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated and separate financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated and separate financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the final materiality for the consolidated and separate financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the consolidated and separate financial statements as a whole. Consolidated financial statements Separate financial statements Final materiality R1.3 billion R120.9 million How we determined it 5% of consolidated profit before taxation 1% of company revenue Rationale for the materiality benchmark applied We chose consolidated profit before taxation as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users and is a generally accepted benchmark. We chose 5% which is consistent with quantitative materiality thresholds used for profit-oriented companies in this sector. We chose revenue as the benchmark because, in our view, it is the benchmark against which the performance of the Company is most commonly measured by users based on the nature and purpose of the Company and is a generally accepted benchmark. We chose 1% which is consistent with quantitative materiality thresholds used for investment holding companies in this sector. 25 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor‘s report ref Materiality Group scoping Key audit matters
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Independent auditor’s report continued Group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. We considered the Group’s organization or legal structure and its financial reporting processes when identifying components for purposes of planning and performing audit procedures. In establishing the group audit scope, we considered those components which will be subject to further audit procedures and the scope of work to be performed at these components. In determining which components will be subject to audit procedures, we considered whether these components are significant (due to risk or size), non-significant or inconsequential to the Group. We conducted full scope audits on seven components consisting of the four operating divisions (Sishen Mine, Kolomela Mine, Saldanha Bay port and Corporate Division), two marketing entities and the Company that were considered to be significant to the Group. Analytical review procedures were performed over the remaining components that were non-significant and inconsequential to the Group. We determined the type of work that needed to be performed by us, as the group auditor and a component auditor from another PwC network firm operating under our instruction. Where the work was performed by a component auditor, we determined the level of involvement we needed to have in the audit work at that component to be able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on the consolidated financial statements as a whole. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report in respect of the separate financial statements. In terms of ISA 701 Communicating key audit matters in the independent auditor’s report/the EAR Rule (as applicable), we are required to report key audit matters and the outcome of audit procedures or key observations with respect to the key audit matters, and these are included below. Key audit matter How our audit addressed the key audit matter Historical non-current WIP stockpiles provision and assessment of net realisable value of non-current inventory Refer to the following disclosures in the financial statements as it relates to this key audit matter: • Principal accounting policy 4.6 (Inventories); • Principal accounting policy 5.2 (Material accounting judgements and estimates – Inventory costing methodology); and • Note 6 to the consolidated financial statements (Inventories). We consider the provision on historical non-current WIP stockpiles and assessment of net realisable value of non-current inventory to be a matter of most significance to the current year audit due to the judgement management applies in evaluating the likelihood of recovery of the stockpiles, and in the estimation of future cash flows, coupled with the significance of the non-current inventory balance to the consolidated financial statements. As described in Note 6 to the consolidated financial statements, following surveying work and inspection of historical non-current WIP stockpiles, the recoverability of these stockpiles was reassessed and the overall likelihood of recovery improved. This resulted in a decrease to the provision of non-current WIP stockpiles as at 31 December 2025. Our audit addressed this key audit matter as follows: Historical non-current WIP stockpiles provision • We held discussions with management to obtain an understanding of management’s process regarding the assessment performed over the historic non-current WIP stockpiles, as well as their conclusions reached. • To evaluate the reasonableness of the surveying work, we assessed the objectivity, competence, and experience of management’s experts used in the surveying process through inspection of Curriculum Vitae (“CV”) and membership certificates from professional bodies. No aspects requiring further consideration were noted. • We assessed the mathematical accuracy of management’s provision calculation and agreed key inputs per the calculation to the report signed by management’s expert stating the results from surveying work and inspection of stockpiles. No material exceptions were noted. • We assessed the completeness of the non-current WIP stockpiles included in management’s calculation and obtained an understanding of any movements in the stockpile quantities compared to the prior year. No material exceptions were noted. • We assessed the valuation of the non-current WIP stockpiles on hand and found this to be aligned with management’s inventory costing methodology. 26 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor‘s report ref
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Independent auditor’s report continued Key audit matter How our audit addressed the key audit matter As described in Principal accounting policy 5.2 (Material accounting judgements and estimates – Inventory costing methodology) to the consolidated financial statements, the net realisable value of non-current inventory stockpiles is determined using cash flow projections and assumptions related to: • forecast iron ore prices; • forecast foreign exchange rates; • inflation-adjusted cost forecasts; and • discount rate applied to reflect the time required to process and sell the inventory. Assessment of net realisable value of non-current inventory • We held discussions with management to obtain an understanding of management’s process regarding the assessment performed over the net realisable value of non- current inventory. • We evaluated management’s classification of inventories that are not expected to be processed and sold within the next 12 months. This has been appropriately classified as non-current inventories in accordance with the applicable standards. • We assessed the reasonableness of management’s assumptions applied in the net realisable value calculation as follows: – we benchmarked management’s assumptions relating to the economic factors such as forecasted short- and long-term iron ore prices and foreign exchange rates used in determining the estimated future sales price against independent third-party data and found management’s assumptions to be within a reasonable range; – we evaluated management’s assessment of the inflation- adjusted cost forecast used in the net realisable value calculation and found this was reasonable; and – we compared management’s risk-free rate used in the calculation to our independent third-party data. No material difference in the risk-free rate was noted. • We recalculated the results of management’s non-current inventories assessment of net realisable value by using independently obtained key input assumptions such as commodity prices, exchange rates and a risk-free rate and concurred with management’s evaluation that no net realisable value write-downs were required for the current year. Other information The directors are responsible for the other information. The other information comprises the information included in the document titled "Kumba Iron Ore Limited Annual Financial Statements 2025", which include(s) the Directors' Report, the Report of the Audit Committee and the Certificate of the Company Secretary as required by the Companies Act of South Africa and the document titled “Kumba Iron Ore Limited Ore Reserve (and Saleable Product) and Mineral Resource Report 2025”, which we obtained prior to the date of this auditor’s report, and the documents titled "Kumba Iron Ore Limited Integrated Report 2025” and “Kumba Iron Ore Limited Sustainability Report 2025”, which are expected to be made available to us after that date. The other information does not include the consolidated or the separate financial statements and our auditor’s report thereon. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not and will not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the consolidated and separate financial statements The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with IFRS Accounting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group's and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and/or the Company or to cease operations, or have no realistic alternative but to do so. 27 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor‘s report ref
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Independent auditor’s report continued Auditor’s responsibilities for the audit of the consolidated and separate financial statements Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company‘s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company‘s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and/or Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence, regarding the financial information of the entities or business units within the Group, as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other legal and regulatory requirements Audit tenure In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that PricewaterhouseCoopers Inc. has been the auditor of Kumba Iron Ore Limited for six year(s). PricewaterhouseCoopers Inc. Director: B Laher Registered Auditor Johannesburg, South Africa 18 February 2026 The examination of controls over the maintenance and integrity of the Group’s website is beyond the scope of the audit of the Annual Financial Statements. Accordingly, we accept no responsibility for any changes that may have occurred to the Annual Financial Statements since they were initially presented on the website. 28 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor‘s report ref
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Principal accounting policies for the year ended 31 December 2025 1. General information Kumba Iron Ore Limited (Kumba) is the holding company of the Kumba group. Kumba is a mining group of companies focusing on the exploration, extraction, beneficiation, marketing, selling and shipping of iron ore. Kumba produces iron ore at Sishen and Kolomela in the Northern Cape province. Kumba is a public company listed on the JSE Limited and is incorporated and domiciled in the Republic of South Africa. 2. Basis of preparation 2.1 Accounting framework The group and Company financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC), the Companies Act, the JSE Limited Listings Requirements, and the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides, as issued by the Accounting Practices Committee, and the Financial Reporting Standards Council. The consolidated and separate financial statements were authorised for issue by the Board of directors on 18 February 2026. The consolidated and separate financial statements have been prepared in accordance with the historical cost convention, except for certain financial instruments, share-based payments and biological assets, which are measured at fair value. The consolidated and separate financial statements are prepared on the basis that the group and the Company will continue to be a going concern. The following principal accounting policies and methods of computation were applied by the group and the Company in the preparation of the consolidated and separate financial statements for the financial year ended 31 December 2025. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.2 Statement of compliance 2.2.1 New standards effective for annual periods beginning on or after 1 January 2025 The group adopted the following amendments, which were applied for the first time, for its financial results for the year commencing on 1 January 2025. Standard, amendment or interpretation Impact on the financial statements Lack of exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates The amendments to IAS 21 specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency, not being exchangeable into the other currency, affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The amendments had no impact on the group and Company financial statements. 29 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 2. Basis of preparation continued 2.2 Statement of compliance continued 2.2.2 New IFRS Accounting Standards, amendments and interpretations not yet effective and not early adopted The new accounting standards, amendments to issued accounting standards and interpretations which are relevant to the group, but not yet effective at 31 December 2025, have been evaluated to assess their impact on the group and Company financial statements, with the exception of IFRS 18 Presentation and Disclosure in Financial Statements, for which the group and Company are still assessing the potential impact. These standards, amendments and interpretations are not expected to have a material impact on the group and Company financial statements. These accounting standards are listed in Annexure 4. 2.3 Impact of the logistics performance and market conditions on the financial results The group has considered the impact of the rail performance and market conditions on each of its material accounting judgements and estimates. The group’s principal source of estimation of uncertainty continues to be in relation to assumptions used for the assessment of impairment of non-current assets where indicators of impairment are identified. The mines’ annual production profiles have been revised to align with the improved rail performance, which resulted in consistent planned annual production volumes. The iron ore price and rand/US dollar foreign exchange rate assumptions, used to forecast future cash flows for impairment indicator assessment purposes, have been updated to consider both the short-term, forecast medium and longer-term impact on the global economy and commodity prices. No further significant estimates have been identified as a result of these three factors, although there is an increased level of uncertainty inherent in all future cash flow forecasts. 2.4 Currencies Functional and presentation currency Items included in the financial statements of each group entity are measured using the functional currency of that entity. The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The group and Company financial results are presented in South African rand, which is Kumba’s functional currency and the group’s presentation currency. All amounts have been rounded to the nearest million, unless otherwise indicated. Foreign currency transactions and balances Foreign currency transactions are translated into the functional currency of the entity at the average rate of exchange for the year. Monetary assets and liabilities that are denominated in foreign currencies are translated into the functional currency of the entity at the rate of exchange ruling at the statement of financial position date. Non-monetary items that are denominated in foreign currencies and measured at historical cost are not retranslated. Foreign exchange gains and losses arising on translation are recognised in the statement of profit or loss. Foreign operations The financial results of all entities that have a functional currency different from the presentation currency of the group are translated into the presentation currency (South African rand). All assets and liabilities, including fair value adjustments arising on acquisition, are translated at the closing exchange rate at the reporting date. Income and expenditure transactions of foreign operations are translated at the average exchange rate for the period. Resulting foreign exchange gains and losses arising on translation are recognised in the foreign currency translation reserve (FCTR) as a separate component of other comprehensive income. 2.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Kumba Executive Committee. Management has determined the operating segments of the group based on the reports reviewed by the Executive Committee that are used to make strategic decisions. The Executive Committee considers the business principally according to the nature of the products and services provided, with the segment representing a strategic business unit. The reportable operating segments derive their revenue primarily from mining, extraction, production, distribution, selling iron ore and shipping services rendered. 30 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 2. Basis of preparation continued 2.6 Events after the reporting period Recognised amounts in the financial statements are adjusted to reflect events arising after the statement of financial position date that provide evidence of conditions that existed at the statement of financial position date. Events after the statement of financial position date that are indicative of conditions that arose after the statement of financial position date are dealt with in note 32 to the consolidated financial statements. 3. Company financial statements The Company, in its separate financial statements, applies the same accounting policies as the group, except for certain items listed below: 3.1 Investments in s ubsidiaries Investments in subsidiaries in the separate financial statements presented by Kumba are recognised at cost less any accumulated impairment. 3.2 Impairment of investments in subsidiaries At each reporting date, the group assesses whether there is any indication that an investment may be impaired. If any such indication exists, the recoverable amount is estimated as the higher of the fair value less costs of disposal and the value in use. A previously recognised impairment charge is reversed (or partially reversed) if there has been a change in the estimates used to determine the recoverable amount. However, not to an amount higher than the carrying amount that would have been determined had no impairment been recognised in prior years. 4. Consolidated financial statements 4.1 Basis of consolidation The consolidated financial statements present the statement of financial position and changes therein, statement of profit or loss and cash flow information of the group. Where necessary, adjustments are made to the results of subsidiaries, joint arrangements and associates to ensure consistency of their accounting policies with those used by the group. Intercompany transactions, balances and unrealised profits and losses between group companies are eliminated on consolidation. In respect of joint ventures and associates, unrealised profits and losses are eliminated to the extent of the group’s interest in these entities. Unrealised profits and losses arising from transactions with associates are eliminated against the investment in the associate. Subsidiaries Subsidiaries are those entities (including special purpose entities) over which the group has control. Control is achieved where the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. Associate and joint arrangements The group holds an interest in an associate and in joint arrangements. An associate is an entity over which the group has significant influence. Joint arrangements are arrangements over which the group has joint control and are classified as either joint operations or joint ventures, depending on the underlying rights and obligations arising from the arrangement. Equity accounting method Investments in associates and joint ventures are accounted for using the equity method. The financial statements of the associate and the joint arrangements are prepared for the same reporting period as the group. The accounting policies of both companies are aligned with those of the group. Therefore, no adjustments are made when measuring and recognising the group’s share of the profit or loss of the investees after the date of acquisition. The aggregate of the group’s share of profit or loss of an associate and a joint venture is shown on the face of the statement of profit or loss outside operating profit and represents profit or loss after tax. When the group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture (which includes any long-term interest that, in substance, forms part of the group’s net investment in the associate or joint venture), the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture. When subsequent profits are made, previously unrecognised losses are first fully eliminated before the profits are recognised as part of the investment. 31 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued 4.1 Basis of consolidation continued Equity accounting method continued The total carrying values of investments in the associate and the joint venture, including goodwill, are reviewed for impairment when there is objective evidence that the asset is impaired. If impaired, the carrying value of the group’s share of the underlying net assets of the associate or joint venture are written down to its estimated recoverable amount and recognised in the statement of profit or loss. The results of the associate are equity accounted from their most recent management accounts. Joint operations Joint operations are arrangements over which the group has joint control and whereby the group has rights to the assets and obligations for the liabilities of the arrangement. Joint control is assessed based on contractual arrangements that require unanimous consent of the parties sharing control. In accounting for its interest in joint operations, the group recognises in its financial statements: • its share of the assets, including its share of any jointly held assets; • its share of the liabilities, including its share of any jointly incurred liabilities; • its share of revenue from sale of the output by the joint operation; and • its expenses, including its share of any expenses incurred jointly. These amounts are recognised on a line-by-line basis in the group’s financial statements. Non-controlling interests The effects of transactions with non-controlling interests that do not result in loss of control are recorded in equity as transactions with equity owners of the group. When the proportion of non-controlling interest changes, the difference between the carrying amount of the non-controlling interest and the fair value of the consideration paid or received is recorded in equity. Statement of financial position 4.2 Property, plant and equipment Land and assets under construction, which include capitalised development and mineral exploration and evaluation costs, are measured at cost less any accumulated impairment and are not depreciated. All other classes of property, plant and equipment are stated at historical cost less accumulated depreciation, and where applicable, accumulated impairment charges. The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. The cost of items of property, plant and equipment includes all costs incurred to bring the assets to the location and condition necessary for their intended use by the group. The cost of self-constructed assets includes expenditure on materials, direct labour and an allocated proportion of project overheads. The cost of property, plant and equipment may also include: • the estimated costs of decommissioning the assets and site rehabilitation costs to the extent that they relate to the asset • capitalised pre-production expenditure and waste stripping costs • deferred waste stripping costs • capitalised borrowing costs The cost of items of property, plant and equipment is capitalised into its various components where the useful lives of the components differ from the main item of property, plant and equipment to which the component can be logically assigned. Expenditure incurred to replace or modify a significant component of property, plant and equipment is capitalised and any remaining carrying value of the component replaced is written off as an expense in the statement of profit or loss. Costs incurred on repairing and maintaining assets are recognised in the statement of profit or loss in the period in which they are incurred. 32 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.2 Property, plant and equipment continued Gains and losses on the disposal of property, plant and equipment, which are represented by the difference between the net disposal proceeds, if any, and the carrying amount of the item, are recognised in the statement of profit or loss. Leased assets are presented separately as right-of-use assets in the statement of financial position. Depreciation Depreciation on self-constructed assets commences when they are available for use by the group. Depreciation for property, plant and equipment is charged on a systematic basis over the estimated useful lives of the assets after deducting the estimated residual value of the assets, using the straight-line method. Depreciation for right-of-use assets is charged on the same basis except that the period is the shorter of the useful life of the asset (in line with the category of property, plant and equipment to which the asset is classified) and the lease term, unless the title to the asset transfers at the end of the lease term, in which case depreciation is over the useful life. The depreciation method applied is reviewed at least at each financial year end, with any changes accounted for as a change in accounting estimate to be applied prospectively. The depreciation charge for each period is recognised in the statement of profit or loss unless it is included in the carrying amount of another asset. The useful life of an asset is the period of time over which the asset is expected to be used. The estimated useful lives of assets and their residual values are reassessed annually at the end of each reporting period, with any changes in such accounting estimates being adjusted in the year of reassessment and applied prospectively. The estimated useful lives of items of property, plant and equipment (excluding land and assets under construction that are not depreciated) at 31 December 2025 were: Mineral properties 10 – 161 years Residential buildings 5 – 161 years Buildings and infrastructure 5 – 161 years Machinery, plant and equipment Mobile equipment, built-in process computers and reconditionable spares 2 – 161 years Fixed plant and equipment 4 – 161 years Loose tools and computer equipment 4 years Mineral exploration, site preparation and development 5 – 161 years 1 The remaining useful lives for certain assets within these classes of property, plant and equipment have been reassessed and estimated to be 16 years (2024: 15 years). Refer to note 2 to the consolidated financial statements for further details. Research, development, mineral exploration and evaluation costs Research, development, mineral exploration and evaluation costs are expensed in the year in which they are incurred until they result in projects that the group: • evaluates as being technically or commercially feasible • has sufficient resources to complete the development • can demonstrate that it will generate probable future economic benefits Once these criteria are met, all directly attributable development costs and ongoing mineral exploration and evaluation costs are capitalised within property, plant and equipment. During the development of a mine, before production commences, stripping expenses are capitalised as part of the investment in the construction of the mine. Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production. Capitalised pre-production expenditure prior to commercial production is assessed for impairment, in accordance with the group’s accounting policy on impairment of non-financial assets. 33 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.2 Property, plant and equipment continued Waste stripping expenses The removal of overburden or waste material is required to obtain access to an ore body. In the production phase of a mine, the mining costs associated with this process are deferred to the extent that the actual stripping ratio of a component is higher than the expected average life-of-asset stripping ratio for that component. The deferred costs are charged to operating costs using a unit of production method of depreciation. The ex-pit ore extracted from the related component during the period is expressed as a percentage of the total ex-pit ore expected to be extracted from that component over the life-of-asset and applied to the balance of the deferred stripping asset for that component. The effect of this is that the cost of stripping in the statement of profit or loss is reflective of the average stripping rates for the ore body mined in any given period. This reflects the fact that waste removal is necessary to gain access to the ore body and realise the future economic benefits. The average life-of-asset stripping ratio for the identified components is calculated as the tonnes of ex-pit waste material expected to be removed over the life-of-asset per tonne of ex-pit ore extracted. The cost per tonne is calculated as the total mining costs for each mine for the period under review, divided by the mine’s total tonnes handled for the period under review. A component has been identified as a geographically distinct ore body within a pit to which the stripping activities being undertaken within that component could be allocated. Where the pit profile is such that the actual stripping ratio is below the average life-of-asset stripping ratio, no deferral takes place as this would result in a recognition of a liability for which there is no obligation. Instead, this position is monitored and when the cumulative calculation reflects a debit balance, deferral commences. The stripping ratios for each component are reassessed annually at the end of each reporting period. Any changes in such accounting estimates are adjusted in the year of reassessment and applied prospectively. 4.3 Impairment of non-financial assets The group’s non-financial assets, other than inventories and deferred tax, are reviewed at each reporting period to determine whether there is any indication that those assets are impaired, or whether previous impairment has reversed, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The group considers both internal and external factors when assessing impairment indicators and impairment reversal, including changes in the market conditions such as commodity prices, foreign exchange rates and external operational factors, as well as internal developments such as variations in operating costs, capital expenditure plans, and updates to Ore Resource and Mineral Reserve estimates. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment or reversal of the previous impairment. Recoverable amounts are estimated for individual assets. Where an individual asset cannot generate cash inflows independently, the assets are grouped at the lowest level for which there are separately identifiable CGUs. The recoverable amount is determined for the CGU to which the asset belongs. An impairment charge is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal or its value in use. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and an impairment charge is recognised in the statement of profit or loss. A previously recognised impairment is reversed insofar as estimates change as a result of an event occurring after the impairment was recognised. An impairment is reversed only to the extent that the asset’s or CGU’s carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised. A reversal of impairment is recognised in the statement of profit or loss. 34 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.3 Impairment of non-financial assets continued Exploration and evaluation assets are tested for impairment when the development of the property commences or whenever facts and circumstances indicate impairment. An impairment is recognised for the amount by which the exploration assets’ carrying amount exceeds their recoverable amount. For the purpose of assessing impairment, the relevant exploration and evaluation assets are included in the existing CGUs of producing properties that are located in the same region. 4.4 Financial assets Recognition and measurement The group recognises its financial assets in the statement of financial position when and only when it becomes a party to the contractual provisions of the instrument. At initial recognition, financial assets are measured at fair value. For financial assets other than those measured at fair value through profit or loss (FVTPL), directly attributable transaction costs are included in the initial measurement. At subsequent reporting dates, financial assets measured at amortised cost are assessed using the effective interest method, net of any impairment charges. Other investments classified at FVTPL are subsequently measured at fair value. The gains and losses from the fair value movements for the period are included in the statement of profit or loss, within net finance gains or losses. Classification The group’s financial assets are classified into the following measurement categories: • Financial assets at FVTPL • Financial assets at amortised cost Financial assets at FVTPL Financial assets at FVTPL consist of financial assets disclosed as part of other long-term receivables and investments and as part of cash and cash equivalents, provisionally priced trade receivables, derivative variation margins and investments held by the environmental trust. Trade receivables at FVTPL Trade receivables are amounts due from customers for iron ore sold or shipping services rendered in the ordinary course of business. The majority of the group’s sales are provisionally priced, with the sales price only finalised at a date after the sale has taken place. The provisionally priced receivables are measured at FVTPL. When there is uncertainty on the final amount, the trade receivable is marked to market based on the forward price. Financial assets at amortised cost Financial assets are classified as “at amortised cost” only if the asset is held within a business model whose objective is to collect the contractual cash flows and the contractual terms of the asset give rise to cash flows that are solely payments of principal and interest. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets. Financial assets at amortised cost include cash and cash equivalents, the trade and other receivables that are not provisionally priced and long-term loans. Trade and other receivables at amortised cost Trade receivables are amounts due to the group from customers for iron ore sold or shipping services rendered in the ordinary course of business. Trade receivables that are measured at amortised cost are reviewed on a regular basis and a loss allowance is raised when they are not considered recoverable based on an expected credit loss assessment. Other receivables are amounts due to the group for non-sale transactions and include VAT receivable, interest receivable and prepaid expenses. Where the expected term of a receivable is less than one year, it is presumed that no significant financing component exists. If collection is expected in one year or less, the receivables are classified as current assets. If not, they are presented as non-current assets. Cash and cash equivalents In the consolidated and separate statements of cash flows, cash and cash equivalents comprise bank balances and initial margin accounts, which meet the definition of cash and cash equivalents. Cash and cash equivalents are measured at amortised cost. 35 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.4 Financial assets continued Derecognition of financial assets Financial assets are derecognised when the right to receive cash flows from the asset has expired, the right to receive cash flows has been retained but an obligation to on-pay them in full without material delay has been assumed or the right to receive cash flows has been transferred together to another party, with substantially all the risks and rewards of ownership. 4.5 Impairment of financial assets The group assesses expected credit losses on a forward-looking basis, which is the difference between the carrying amount of the financial asset and the amount that is expected to be received in respect of that financial asset. The impairment methodology applied to determine the recoverable amount of the financial asset carried at amortised cost depends on the level of credit risk associated with that specific financial asset. The group applies the simplified expected credit loss model for its trade receivables measured at amortised cost, as permitted by IFRS 9 Financial Instruments. The expected credit losses on trade receivables are estimated for customers on an individual basis by reference to past default experience, credit profiles and financial metrics, adjusted as appropriate for observable data. Kumba considers a financial asset in default when contractual payments are 90 days past due. Expected credit losses are recognised in the statement of profit or loss. When a subsequent event causes the amount of expected credit losses to decrease, the decrease in expected credit losses is reversed through the statement of profit or loss. 4.6 Inventories Inventories comprise finished products, WIP, plant spares and consumable stores, and are measured at the lower of cost and net realisable value. The cost of inventories is determined using the first-in, first-out method for finished goods and the weighted average method for WIP and plant spares and consumable stores. The cost of finished goods and WIP comprises direct labour, other direct costs and fixed production overheads, but excludes finance costs. Costs are allocated to WIP based on the expected finished product output from the ore grade. Fixed production overheads are allocated based on normal capacity. Plant spares and consumable stores are capitalised to the statement of financial position and expensed to the statement of profit or loss as and when they are utilised. When inventories are sold, the carrying amount of inventories sold is recognised as part of the net movement in finished product and WIP inventories within operating expenses. Net realisable value is the estimated selling price in the ordinary course of business, less the cost of completion and variable selling expenses. Write-downs to net realisable value and inventory losses are recognised in inventory write-down to net realisable value within operating expenses on the statement of profit or loss in the period in which the write-downs or losses occur. Inventories are included in current assets unless the inventory will not be realised within 12 months after the end of the reporting period, in which case the inventory is presented as non-current assets. 4.7 Financial liabilities The group’s financial liabilities comprise trade and other payables and interest-bearing borrowings. Refer to 4.8 and 4.13 below for the detailed accounting policies for derivative financial instruments and interest-bearing borrowings, respectively. Trade and other payables Trade payables are obligations to pay for goods or services acquired from suppliers in the ordinary course of business. Trade and other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Recognition and measurement The group recognises its financial liabilities in the statement of financial position when and only when the entity becomes a party to the contractual provisions of the instrument. At initial recognition, the group measures its financial liabilities at their fair value plus, in the case of a financial liability not at FVTPL, transaction costs that are directly attributable to the issue of the financial liability. 36 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.7 Financial liabilities continued Classification The group’s trade and other payables are classified into the following measurement categories: • Financial liabilities at amortised cost • Financial liabilities at FVTPL (provisionally priced trade payables and derivative financial instruments) Trade payables at amortised cost The majority of the group’s trade and other payables are measured at amortised cost, using the effective interest method. At subsequent reporting dates, financial liabilities are carried at amortised cost, using the effective interest method, and any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of profit or loss. Trade payables at FVTPL Provisionally priced payables arising from the group’s commodity trading activities are recognised at fair value and subsequent fair value movements form part of the net margin reported within revenue from other sources. Derecognition Financial liabilities are derecognised when the associated obligation has been discharged, cancelled or has expired. 4.8 Derivative financial instruments Derivative instruments are categorised at FVTPL and are classified as current assets or current liabilities. Variation margins included in derivative financial instruments are posted to the exchange daily, and values can fluctuate depending on the exchange pricing. As a result, variation margin amounts are classified as other receivables or other payables, in line with the nature of these instruments. All derivative instruments are initially recognised at fair value on the date that the derivative contract is entered into and are subsequently remeasured at fair value at the date of the statement of financial position. Resulting gains or losses on derivative instruments are recognised in the statement of profit or loss. 4.9 Offsetting financial instruments Financial assets and financial liabilities are presented gross in the statement of financial position unless the group has a legally enforceable right to offset and intends to settle on a net basis or to realise the asset and settle the liability simultaneously, in accordance with IAS 32: Financial Instruments: Presentation. Where such right does not exist, the amounts are presented gross, even if settled on a net basis. 4.10 Provisions A provision is recognised when the group has a present legal or constructive obligation as a result of past events, when it is probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the obligation can be made. The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the statement of financial position date. Provisions are not recognised for future operating losses. Where the effects of discounting are material, provisions are measured at the present value of the cash flow expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as finance costs. When a contract is identified as onerous, the loss is recognised in the statement of profit or loss. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. In assessing the unavoidable cost of meeting the obligation under the contract at the end of the reporting date, management identifies and quantifies any compensation and penalties arising from failure to fulfil the contract. 37 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.10 Provisions continued Environmental rehabilitation Environmental rehabilitation provisions The provision for environmental rehabilitation is recognised as and when an obligation to incur rehabilitation and mine closure costs arises from environmental disturbance caused by the development of or ongoing production from a mining property. Estimated long-term environmental rehabilitation provisions are measured based on the group’s environmental policy taking into account current technological, environmental and regulatory requirements. Any subsequent changes to the carrying amount of the provision resulting from changes to the assumptions applied in estimating the obligation are recognised in the statement of profit or loss. Ongoing rehabilitation expenditure Ongoing rehabilitation expenditure is recognised in the statement of profit or loss as and when incurred. Decommissioning provision The estimated present value of costs relating to the future decommissioning of plant or other site preparation work, taking into account current environmental and regulatory requirements, is capitalised as part of property, plant and equipment to the extent that it relates to the construction of an asset. The related provision is raised in the statement of financial position as soon as the obligation to incur such costs arises. These estimates are reviewed at each reporting date and changes in the measurement of the provision that result from subsequent changes in the estimated timing or amount of cash flows, or a change in discount rate, are added to, or deducted from, the cost of the related asset in the current period. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in the statement of profit or loss. If the asset value is increased and there is an indication that the revised carrying value is not recoverable, an impairment test is performed in accordance with the accounting policy on ‘Impairment of non-financial assets’, refer to 4.3 above. 4.11 Deferred tax Deferred tax is recognised using the liability method on all temporary differences between the carrying values of assets and liabilities for accounting purposes and the tax bases of these assets and liabilities used for tax purposes and on any tax losses. No deferred tax is provided on temporary differences relating to: • the initial recognition (other than in a business combination) of an asset or liability to the extent that neither accounting nor taxable profit is affected on acquisition • investment in subsidiaries to the extent they will probably not reverse in the foreseeable future Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax liabilities are recognised for taxable temporary differences arising from investments in subsidiaries, associates and joint arrangements, except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised within the same tax entity. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and is adjusted to the extent that it is no longer probable that sufficient taxable profit will be available to allow all of the assets to be recovered. Deferred tax is calculated at the tax rates and laws that are enacted or substantively enacted in the period when the liability is settled, or when the asset is realised. Deferred tax is recognised in the statement of profit or loss, except when it relates to items recognised directly in equity, in which case the deferred tax is also taken directly to equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the group intends, and is able to, settle its current tax assets and liabilities on a net basis. Any remaining deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as probable that there will be suitable taxable profits, within the same jurisdiction, in the foreseeable future against which the deductible temporary difference can be utilised. 38 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of financial position continued 4.12 Employee benefits Post-employment benefits The group operates defined contribution plans for the benefit of its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate fund. The group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The plan is funded by payments from employees and the group. The group’s contribution to the funds is recognised as an employee benefit expense in the statement of profit or loss in the year to which it relates. The group does not provide guarantees in respect of the returns in the defined contribution funds and has no further payment obligations once the contributions have been paid. The group does not provide defined employee benefits to its current or previous employees. Bonus plans The group recognises a liability and an expense for bonuses, based on a formula that takes into consideration the achievement of agreed Company financial, strategic and operational objectives, linked to key performance areas. The group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation. Short-term employee benefits The cost of all short-term employee benefits, such as salaries, bonuses, housing allowances, medical aid and other contributions is recognised in the statement of profit or loss during the period in which the employee renders the related service. Termination benefits Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits when it has demonstrated its commitment to either terminate the employment of current employees according to a detailed formal plan without the possibility of withdrawal or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. If the benefits are due more than 12 months after the statement of financial position date, they are discounted to present value. Equity compensation benefits Vesting component The various equity compensation schemes operated by the group allow certain senior employees, including executive directors, the option to acquire shares in Kumba over a prescribed period in return for services rendered. These options are settled by means of the issue of shares. Such equity-settled share-based payments are measured at fair value at the date of the grant. The fair value determined at the grant date of the equity-settled share-based payments is charged as employee costs on a straight-line basis over the period that the employees become unconditionally entitled to the options, based on management’s estimate of the shares that will vest and adjusted for the effect of non-market-based vesting conditions. These share options are not subsequently revalued. The fair value of the share options is measured using option pricing models. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of exercise restrictions and behavioural considerations such as volatility, dividend yield and the vesting period. The fair value takes into account the terms and conditions on which these incentives are granted, and the extent to which the employees have rendered services up to the statement of financial position date. 39 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of profit or loss continued 4.12 Employee benefits continued Equity compensation benefits continued Non-vesting component An equity compensation scheme in which share options do not vest to the participating employees (the beneficiaries), but only an allocation of a dividend declared is distributed to the participating employees. The underlying shares are held in an Employee Share Ownership Plan (ESOP) Trust for the benefit of the participants. The dividend distributed to the participating employees is recorded as an employee benefit expense in the statement of profit or loss. At each reporting date, the group’s obligation in respect of the dividend expected to be distributed to the beneficiaries of the trust is assessed and appropriately recognised, if any is declared. The fair value of the share options is measured using option pricing models. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of exercise restrictions and behavioural considerations such as volatility, dividend yield and the vesting period. The fair value takes into account the terms and conditions on which these incentives are granted and the extent to which the employees have rendered services up to the statement of financial position date. 4.13 Interest-bearing borrowings Recognition and measurement Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of profit or loss over the period of the borrowings, using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Classification between “short-term” and “long-term” Interest-bearing borrowings are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. 4.14 Dividends payable Dividends payable, including the related taxation thereon, are recognised by the group when the dividend is declared. Dividends proposed or declared subsequent to the statement of financial position date are not recognised, but are disclosed in the notes to the consolidated and separate financial statements. Statement of profit or loss 4.15 Revenue recognition Revenue from contracts with customers as defined in IFRS 15 Revenue from Contracts with Customers is derived principally from the sale of iron ore and shipping services rendered and is measured at the fair value of the consideration received or receivable, after deducting discounts, volume rebates, VAT and other sales taxes. The group recognises revenue when it is probable that the group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer and when specific recognition criteria have been met for each of the group’s activities as described below. Sales of goods – iron ore Local and export revenue from the sale of iron ore is recognised when control has been transferred. This occurs at a point in time, which is usually when title and insurance risk have passed to the customer, and the goods have been delivered to a contractually agreed location. There are certain of the group’s sales of iron ore which are provisionally priced, such that the price is not settled until a predetermined future date based on the market price at that time. Revenue in respect of such sales is initially recognised at the market iron ore price on the date of initial recognition, being the bill of lading date. 40 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of profit or loss continued 4.16 Revenue recognition Sales of goods – iron ore continued Sales of iron ore that are provisionally priced are marked to market at each reporting date using the forward price for the period equivalent to that outlined in the contract. Mark-to-market adjustments arising after control of the iron ore transfers to the customer are recognised in revenue from other sources. The related trade receivables are also adjusted to reflect the movements in the provisional pricing. Furthermore, the group enters into iron ore price derivatives on sales transactions where there is a quotation period mismatch. Net movements in fair value of these derivative financial instruments are recognised as revenue from other sources. Shipping services Revenue from shipping services is recognised over time as and when the performance obligation has been fulfilled and accepted by the customer. For contracts that contain separate performance obligations for the sale of iron ore and the provision of shipping services, the portion of the revenue representing the obligation to perform the shipping service is deferred and recognised over time as the obligation is fulfilled, along with the associated costs. Amounts billed to customers in respect of shipping and handling activities are classified as revenue from contracts with customers where the group is responsible for the shipping services. For CFR, insurance and freight arrangements, the transaction price, as determined above, is allocated to the ore and shipping services using the relative stand-alone selling price method. Under these arrangements, the customer may be required to make a provisional payment on the date of shipment. Therefore, a portion of the amount paid by the customer relating to shipping services still to be provided is deferred at each reporting date. To measure progress towards complete satisfaction of the shipping service which best represents the group’s performance, and therefore the amount to be recognised as revenue for the period, the output method (being the number of shipping days that have elapsed as a proportion of total expected shipping days) is used. This is on the basis that the customer simultaneously receives and consumes the benefits provided by the group as the services are being provided. The deferred revenue is recognised as a contract liability in the statement of financial position. 4.17 Other operating income Other operating income comprises income that arises from activities incidental to the group’s principal operations and do not meet the definition of revenue. Other operating income is recognised when the group receives or becomes entitled to the related benefit and the amount can be measured reliably. 4.18 Taxation The income tax charge for the period is determined based on profit before tax for the year and comprises current and deferred tax. Tax is recognised in the statement of profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the related tax is also recognised in other comprehensive income or directly in equity, respectively. Current tax The current tax charge is the calculated tax payable on the taxable income for the year using tax rates that have been enacted or substantively enacted by the statement of financial position date and any adjustments to tax payable in respect of prior years. Taxable profit differs from net profit as reported in the statement of profit or loss because it excludes items of income or expenses that are taxable or deductible in other years, and it further excludes items that are not taxable or deductible. Dividend withholding tax Dividend withholding tax is levied on dividend recipients and has no impact on the group’s taxation charge as reflected in the statement of profit or loss. Pillar 1 and 2 Uncertainty and changes to tax regimes can materialise in any country in which we operate and the group has no control over political acts, actions of regulators, or changes in local tax regimes. Global and local economic and social conditions can have a significant influence on governments’ policy decisions and these have the potential to change tax and other political risks faced by the group. The group actively monitors tax developments at a national level, as well as global themes and international policy trends, on a continuous basis, and has active engagement strategies with governments, regulators and other stakeholders within the countries in which the group operates as well as at an international level. 41 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 4. Consolidated financial statements continued Statement of profit or loss continued 4.18 Taxation continued Pillar 1 and 2 continued This includes global tax reforms aimed at reallocating taxing rights for large profitable companies (“Pillar 1”), and the implementation of a minimum effective tax rate of 15% on profits of large multinational groups in each country in which they operate (“Pillar 2”). The group has effective tax rates that exceed 15% in all jurisdictions in which it operates. In addition, based on the current assessment, there is no material impact from exposure to Pillar 2 legislation. The group has applied the mandatory temporary exception under IAS 12 in relation to the accounting for deferred taxes related to Pillar 2. The group continues to review legislation to evaluate the potential impact and is engaging with policymakers in efforts to ensure that guidance and any required additional legislation is aligned with the stated policy objectives and that the group is well placed to comply. 4.19 Earnings per share The group presents basic and diluted earnings per share (EPS) and basic and diluted headline earnings per share (HEPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of Kumba by the weighted average number of ordinary shares outstanding during the year. HEPS is calculated by adjusting the profit or loss attributable to ordinary shareholders of Kumba for all separately identifiable remeasurements, for example, gains and losses arising on disposal of assets, impairment charge and impairment reversal, net of related tax (both current and deferred) and related non-controlling interest, other than those remeasurements which are specifically included in headline earnings. The result is divided by the weighted average number of ordinary shares outstanding during the year. Diluted EPS and HEPS are determined by adjusting the basic and headline earnings attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees. 5. Material accounting judgements and estimates The preparation of the financial statements requires the group’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and estimates and assumptions of the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are recognised prospectively. The following key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial position date, have a risk of causing material adjustments to the carrying amounts of assets and liabilities and related disclosures within the next financial year. 5.1 Property, plant and equipment In determining the depreciable amount, management makes certain assumptions with regard to the residual value of assets based on the expected estimated amount that the group would currently obtain from disposal of the asset, after deducting the estimated cost of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. If an asset is expected to be abandoned, the residual value is estimated at zero. The estimation of the useful life of the asset is a matter of judgement based on the experience of the group with similar assets. In determining the useful life of items of property, plant and equipment that is depreciated, management considers the expected usage of assets, expected physical wear and tear, legal or similar limits of assets such as mineral rights as well as obsolescence. 42 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 5. Material accounting judgements and estimates continued 5.1 Property, plant and equipment continued This estimate is further impacted by management’s best estimation of proved and probable iron ore reserves and the expected future life of each of the mines within the group. The forecast production could be different from the actual iron ore mined. This would generally result from significant changes in the factors or assumptions used in estimating iron ore reserves. These factors could include: • changes in proved and probable iron ore reserves • differences between achieved iron ore prices and assumptions • unforeseen operational issues at mine sites; changes in capital, operating, mining, processing, reclamation and logistics costs, discount rates and foreign exchange rates Any change in management’s estimate of the useful lives and residual values of individual assets would impact the depreciation charge. Any change in management’s estimate of the total expected future life of each of the mines would impact the depreciation charge as well as the estimated rehabilitation and decommissioning provisions. The useful lives of certain assets are aligned with the remaining life-of-asset, which is based on updated Ore Resource and Mineral Reserve estimates. Following the extension of the remaining life of both Sishen and Kolomela, the useful lives of the impacted mining-related assets were also reassessed and revised accordingly. Refer to note 2 to the consolidated financial statements for further details. 5.2 Inventory costing methodology The cost of inventories is determined by using the weighted average costing method. For WIP inventories, direct costs are allocated to the various materials based on the expected final product from each material. Direct costs are allocated to inventory on a yield-based costing method to ensure that costs are appropriately allocated to WIP and finished product inventories. The expected output from each WIP material is estimated based on the average iron ore contained in each grade of WIP material. Net realisable value tests are performed at each reporting date to ensure that inventory is measured at the lower of cost and net realisable value. The realisable value of inventory represents the estimated future sales price of the inventory that the group expects to realise. For WIP, the realisable value is the estimated selling price of finished product after the WIP material has been processed to finished product. The net realisable value is the realisable value less estimated costs to complete the production process and related selling costs. The net realisable value for inventory, which is not expected to be processed within the next 12 months, is determined using cash flow projections based on the group’s forecasted pricing and foreign exchange rate assumptions, together with inflation-adjusted cost forecasts, consistent with internal budgeting and forecasting process. As the market and price risks are incorporated in the cash flows, the discount rate applied reflects only the time required to process and sell the inventory, and is thus based on a risk-free rate of 4.3% (2024: 5%). WIP and finished product tonnes on hand are verified by periodic surveys that are conducted at each reporting date. In addition to this, ore densities which are supported by reliable measurement techniques and improved data quality are used to measure WIP. In the current year, updated ore density measurements were applied to WIP. Refer to note 6 to the consolidated financial statements for further details. 5.3 Fair value assessment The assessment of fair value is principally used in accounting for impairment testing and the valuation of certain financial assets and liabilities. The determination of assumptions used in assessing the fair value of identifiable assets and liabilities is subjective, and the use of different valuation assumptions could have a significant impact on financial results. In particular, expected future cash flows, which are used in discounted cash models, are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including Ore Reserves and Resources, together with economic factors such as commodity prices, exchange rates, discount rates and estimates of production costs and future capital expenditure. 43 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025 5. Material accounting judgements and estimates continued 5.3 Fair value assessment continued The fair value of identifiable financial assets and liabilities that are not traded in an active market is determined by using observable market data (in the case of listed entities, market share price at 31 December of the respective entity) or discounted cash flow (DCF) models (and other valuation techniques) using assumptions considered to be reasonable and consistent with those that would be applied by a market participant. Where DCFs are used, the resulting fair value measurements depend, to a significant extent, on unobservable valuation inputs. The group uses its judgement to select a variety of methods and makes assumptions that are mainly based on market conditions existing at the statement of financial position date. 5.4 Provision for environmental rehabilitation and decommissioning The provisions for environmental rehabilitation and decommissioning costs are calculated using management’s best estimate of the costs to be incurred based on the group’s environmental policy, taking into account current technological, environmental and regulatory requirements discounted to a present value. Estimates are based upon costs that are regularly reviewed, by internal and external experts, and adjusted as appropriate for new circumstances. Actual costs incurred in future periods could differ from the estimates. Additionally, future changes to environmental laws and regulations, life-of-asset estimates and discount rates used could affect the carrying amount of this provision. As a result, the liabilities that we report can vary if our assessment of the expected expenditures changes. 5.5 Provisionally priced revenue from spot sales Certain of the group’s spot sales are provisionally priced at the reporting date, as the final sales price for these sales are not settled until a predetermined future date based on the average iron ore price at that time. Revenue from these sales is initially recognised at the current market rate on the bill of lading date, being the date that the revenue recognition criteria are met. Provisionally priced sales are marked to market with reference to the Platts Iron Ore Index (IODEX) price at each reporting date. The forward market for iron ore is not considered sufficiently liquid and therefore the closing iron ore price for the month is assumed to continue into the following month for the purposes of calculating the provisionally priced revenue transactions. 5.6 Waste stripping costs The rate at which costs associated with the removal of overburden or waste material is capitalised as development costs or charged as an operating cost is calculated per component of each mine, using management’s best estimates of the: • average life-of-component stripping ratio • total expected production over the life-of-asset The average life-of-asset stripping ratio is recalculated when a new LoAP is designed and approved for use in light of additional knowledge and changes in estimates. Any change in management’s estimates would impact the stripping costs capitalised and depreciation of the related asset. 5.7 Ore Reserve and Mineral Resource estimates Ore Reserves are estimates of the amount of ore that can be economically and legally extracted from the group’s mining right properties. Mineral Resources, in addition to Ore Reserves, are estimates of the amount of ore within the group’s mining right areas that have reasonable prospects for eventual economic extraction. Such Ore Reserve and Mineral Resource estimates and changes to these may impact the group’s reported financial position and results in the following way: • Provisions for environmental rehabilitation and decommissioning may change where reserve estimate changes affect expectations about when such activities will occur and the associated cost of these activities. • Capitalised waste stripping costs recognised in the statement of financial position, as either part of mine properties or inventory or charged to profit or loss, may change due to changes in stripping ratios. • Depreciation charges in the statement of profit or loss may change where such charges are determined using the units of production method, or where the useful lives of the related assets change. • The recognition and carrying value of deferred income tax assets may change due to changes in the judgements regarding the existence of such assets and in estimates of the likely recovery of such assets. 44 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Principal accounting policies continued for the year ended 31 December 2025. 5. Material accounting judgements and estimates continued 5.7 Ore Reserves and Mineral Resource estimates continued The group estimates and reports Ore Reserves and Mineral Resources in accordance with the SAMREC Code (2016 edition) as prescribed by the JSE Limited Listings Requirements. The group estimates its Ore Reserves and Mineral Resources based on information compiled by appropriately qualified and experienced persons as required by the SAMREC Code’s definition of Competence. The estimates and associated reporting thereof are rigorously interrogated by independent professional experts. The group’s Ore Reserve and Mineral Resource estimates are derived from spatial interpretation and subsequent estimation processes, informed by technical and economic forward looking assumptions. Sishen’s life-of-asset has extended by one year, effective 1 January 2026, as a result of a planned reduction in its annual mining volume profile and pit layout optimisation. The remaining life of Sishen is 16 years to 2041 (2024: In the prior year, Sishen life- of-asset was extended by two years, effective 1 January 2025 resulting in the remaining life of Sishen being 16 years to 2040). Kolomela’s life-of-asset has extended by one year, effective 1 January 2026, due to the pit layout optimisation and the planned increase in the conversion of medium-grade ore. The remaining life of Kolomela is 16 years to 2041 (2024: In the prior year, Kolomela’s life-of-asset was extended by six years, effective 1 January 2025, resulting in the remaining life of Kolomela being 16 years to 2040). 6. Other accounting judgements and estimates 6.1 Consolidation of special purpose entities (SPEs) The group sponsors the formation of SPEs primarily to hold Kumba shares for the benefit of employees. SPEs are consolidated when the substance of the relationship between the group and the SPE indicates control. As it can sometimes be difficult to determine whether the group controls an SPE, management makes judgements about its exposure to the risks and rewards, as well as about its ability to make operational decisions for the SPE in question. 6.2 Going concern Management considers key financial metrics and loan covenant compliance in the group’s approved medium-term budgets, together with its existing term facilities, to conclude that the going concern assumption used in compiling the group’s annual financial statements is appropriate. 6.3 Segmental reporting In applying IFRS 8 Operating Segments, management makes judgements with regard to the identification of reportable operating segments of the group in a manner consistent with the internal reporting provided to the CODM. 6.4 Equity-settled share-based payment reserve Management makes certain judgements in respect of selecting appropriate fair value option pricing models to be used in estimating the fair value of the various share-based payment arrangements in respect of employees and SPEs. Judgements and assumptions are also made in calculating the variable elements used as inputs in these models. The inputs that are used in the models include, but are not limited to, the expected vesting period and related conditions, share price, dividend yield, share option life, risk-free interest rate and annualised share price volatility. Refer to note 22 to the consolidated financial statements. 6.5 Cash and cash equivalents Certain of the group’s short-term cash deposits, included in cash and cash equivalents, are placed with subsidiaries of the ultimate holding company, and funds are drawn down from these entities when required. In determining the presentation of the cash deposits, management makes certain judgements, which mainly consider the short-term lead time to access the cash deposits. The funds are readily available and can be accessed and withdrawn within a period of one to two days. As a result, the group accounts for these short-term deposits as cash and cash equivalents within the consolidated financial statements. For the purpose of presentation on the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits. 45 Kumba Iron Ore Limited Annual Financial Statements 2025 Principal accounting policies
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Statement of financial position as at 31 December Rand million Notes 2025 2024 ASSETS Property, plant and equipment 2 59,976 56,006 Right-of-use assets 3 168 143 Biological assets 46 40 Investments held by the environmental trust 4 1,207 989 Investment in associate 22 23 Other long-term receivables and investments 5 250 166 Inventories 6 10,120 8,520 Non-current assets 71,789 65,887 Inventories 6 9,688 9,605 Trade and other receivables 7 6,393 5,766 Current tax assets 718 575 Cash and cash equivalents 8 15,117 16,913 Current assets 31,916 32,859 Total assets 103,705 98,746 EQUITY Shareholders’ equity 54,939 52,815 Non-controlling interests 23 17,069 16,485 Total equity 72,008 69,300 LIABILITIES Lease liabilities 3 109 70 Provisions 9 3,390 3,190 Deferred tax liabilities 10 15,214 14,106 Non-current liabilities 18,713 17,366 Lease liabilities 3 94 123 Interest-bearing borrowings 8 — 2,003 Provisions 9 163 210 Trade and other payables 11 11,994 9,271 Contract liabilities 11 482 449 Current tax liabilities 251 24 Current liabilities 12,984 12,080 Total liabilities 31,697 29,446 Total equity and liabilities 103,705 98,746 46 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Consolidated statement of financial position
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Statement of profit or loss for the year ended 31 December Rand million Notes 2025 2024 Revenue 12 70,077 68,529 Other operating income 13 942 — Operating expenses 14 (45,233) (46,105) Impairment reversal 2 — 3,940 Expected credit losses on financial assets 7 (28) (3) Operating profit 25,758 26,361 Finance income 18 1,382 800 Finance costs 18 (907) (510) Share of losses of equity-accounted joint venture and associate (1) (1) Profit before taxation 26,232 26,650 Taxation 19 (7,075) (7,375) Profit for the year 19,157 19,275 Attributable to: Owners of Kumba 14,611 14,699 Non-controlling interests 4,546 4,576 19,157 19,275 Earnings per share attributable to the ordinary equity holders of Kumba (Rand per share) Basic 20 45.57 45.81 Diluted 20 45.43 45.70 Statement of other comprehensive income for the year ended 31 December Rand million 2025 2024 Profit for the year 19,157 19,275 Other comprehensive (loss)/income for the year1 (865) 33 Exchange differences on translation of foreign operations (865) 33 Total comprehensive income for the year 18,292 19,308 Attributable to: Owners of Kumba 13,951 14,724 Non-controlling interests 4,341 4,584 18,292 19,308 1 There is no tax attributable to items included in other comprehensive income and all items will subsequently be reclassified to profit or loss in the event that the related foreign operation is disposed of. No deferred tax is recognised as there is no accounting or tax base for these items as they pertain to current assets. 47 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Consolidated statement of profit or loss and consolidated statement of other comprehensive income
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Statement of changes in equity for the year ended 31 December Rand million Share capital and share premium Treasury shares Equity- settled share- based payment reserve FCTR Retained earnings Share- holders’ equity Non- control- ling interests Total equity Notes 21 21 22 23 Balance at 31 December 2023 367 (599) 357 3,122 48,772 52,019 16,203 68,222 Net movement in treasury shares under employee share incentive schemes — (241) — — — (241) — (241) Equity-settled share-based payment expenses — — 155 — — 155 — 155 Vesting of shares under employee share incentive schemes — 283 (220) — (65) (2) — (2) Total comprehensive income for the year — — — 25 14,699 14,724 4,584 19,308 Dividends paid — — — — (13,840) (13,840) (4,302) (18,142) Balance at 31 December 2024 367 (557) 292 3,147 49,566 52,815 16,485 69,300 Net movement in treasury shares under employee share incentive schemes — (310) — — — (310) — (310) Equity-settled share-based payment expenses — — 238 — — 238 — 238 Vesting of shares under employee share incentive schemes — 179 (185) — 7 1 — 1 Total comprehensive income for the year — — — (660) 14,611 13,951 4,341 18,292 Profit for the year — — — — 14,611 14,611 4,546 19,157 Other comprehensive loss for the year1 — — — (660) — (660) (205) (865) Dividends paid — — — — (11,756) (11,756) (3,757) (15,513) Balance at 31 December 2025 367 (688) 345 2,487 52,428 54,939 17,069 72,008 1 The loss recognised in FCTR reflects the impact of the rand’s strengthening against foreign currencies during the year, which increased translation losses. Dividend per share Rand 2025 2024 Interim 16.60 18.77 Final2 15.43 19.90 Total 32.03 38.67 2 The final dividend for 2025 was declared subsequent to the year end and is presented for information purposes only. Equity-settled share-based payment reserve The equity-settled share-based payment reserve comprises the value of services rendered that has been settled through the issue of shares or share options. FCTR The FCTR comprises all foreign exchange differences arising from the translation of the financial results of foreign operations to the presentation currency of Kumba. 48 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Consolidated statement of changes in equity
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Statement of cash flows for the year ended 31 December Rand million Notes 2025 2024 Cash flows from operating activities Cash receipts from customers 68,596 73,810 Cash paid to suppliers and employees (36,148) (39,019) Cash generated from operations 24 32,448 34,791 Finance income received 25 1,348 817 Finance costs paid 25 (822) (471) Taxation paid 26 (5,873) (5,878) 27,101 29,259 Cash flows utilised in investing activities Additions to property, plant and equipment 28 (10,031) (9,673) Proceeds from disposal of property, plant and equipment 141 50 (9,890) (9,623) Cash flows utilised in financing activities Interest-bearing borrowings raised 8 12,000 39,852 Interest-bearing borrowings repaid 8 (14,000) (41,986) Purchase of treasury shares 21 (310) (241) Dividends paid to owners of Kumba 27 (11,756) (13,840) Dividends paid to non-controlling shareholders 27 (3,757) (4,302) Payment of lease liabilities (127) (165) (17,950) (20,682) Net decrease in cash and cash equivalents (739) (1,046) Cash and cash equivalents at the beginning of the year 8 16,913 17,722 Foreign currency exchange gains on cash and cash equivalents (1,057) 237 Cash and cash equivalents at the end of the year 8 15,117 16,913 49 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Consolidated statement of cash flows
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Notes to the annual financial statements for the year ended 31 December 1. Segmental reporting Operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Kumba Executive Committee. The Kumba Executive Committee considers the business principally according to the nature of the products and services provided, with the identified segments each representing a strategic business unit. “Other” segment comprises corporate, administration and other expenditure not allocated to the reported segments. The total reported segment revenue comprises revenue from external customers and is measured in a manner consistent with that disclosed in the statement of profit or loss. The performance of the operating segments is assessed based on adjusted EBITDA, before taking into account any impairment charges or reversals, which is considered to be a more appropriate measure of profitability for the group’s business. Finance income and finance costs are not allocated to segments as the treasury activity is managed on a central group basis. Certain costs and income included in the determination of adjusted EBITDA are considered to be significant and have, therefore, been reported per segment for the group as a whole. Total segment assets comprise finished product and WIP inventories only, which are allocated based on the operations of the segment and the physical location of the asset. Products1 Services Rand million Sishen mine Kolomela mine Logistics2 Shipping operations Other Total 2025 Statement of profit or loss Total external revenue 44,523 18,630 — 6,924 — 70,077 Adjusted EBITDA3 31,360 13,842 (8,608) 85 (4,756) 31,923 Significant items of (income)/expenses in the statement of profit or loss Other operating income (942) — — — — (942) Net movement in finished product and WIP inventories (67) (842) — — — (909) Raw materials and consumables 1,953 440 2 — — 2,395 Depreciation 3,692 2,179 — — 294 6,165 Staff costs 4,504 1,193 58 — 1,326 7,081 Contractors’ expenses 1,629 1,191 — — 710 3,530 Transportation and selling costs — — 8,549 — — 8,549 Shipping services rendered — — — 6,839 — 6,839 Petroleum products 2,465 556 — — 11 3,032 Corporate costs 200 217 431 — 1,403 2,251 Repairs and maintenance 2,934 819 — — 18 3,771 Energy costs 713 123 — — — 836 Mineral royalty 798 916 — — — 1,714 Statement of financial position Total segment assets 9,097 6,526 1,251 — — 16,874 Statement of cash flows Additions to property, plant and equipment: Expansion capital expenditure 924 557 — — — 1,481 SIB capital expenditure 3,483 914 18 — — 4,415 Deferred stripping 3,450 685 — — — 4,135 1 Derived from extraction, production and selling of iron ore. 2 No revenue is reported for this segment as its performance is reviewed with reference to volumes railed and rail tariffs achieved. 3 This constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation. Refer to supplementary non-IFRS financial measures on pages 120 to 123. 50 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 1. Segmental reporting continued Products1 Services Other TotalRand million Sishen mine Kolomela mine Logistics2 Shipping operations 2024 Statement of profit or loss Total external revenue 44,070 16,277 — 8,182 — 68,529 Adjusted EBITDA3 27,673 10,567 (7,962) 184 (2,328) 28,134 Significant items of expenses in the statement of profit or loss: Depreciation 3,705 1,043 — — 965 5,713 Impairment reversal — (3,940) — — — (3,940) Staff costs 4,126 1,318 49 — 1,214 6,707 Raw materials and consumables 1,742 267 2 — — 2,011 Net movement in finished product and WIP inventories 1,287 287 — — — 1,574 Contractors’ expenses 1,749 1,079 — — 632 3,460 Transportation and selling costs — — 7,913 — — 7,913 Shipping services rendered — — — 7,998 — 7,998 Petroleum products 2,451 406 — — 3 2,860 Corporate costs 173 285 424 — 907 1,789 Repairs and maintenance 2,869 577 — — 7 3,453 Energy costs4 643 102 — — — 745 Mineral royalty 1,325 306 — — — 1,631 Statement of financial position Total segment assets 9,426 5,861 278 — — 15,565 Statement of cash flows Additions to property, plant and equipment: Expansion capital expenditure 935 492 — — — 1,427 SIB capital expenditure 4,258 750 — — — 5,008 Deferred stripping 2,906 332 — — — 3,238 1 Derived from extraction, production and selling of iron ore. 2 No revenue is reported for this segment as its performance is reviewed with reference to volumes railed and rail tariffs achieved. 3 This constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation. Refer to supplementary non-IFRS financial measures on pages 120 to 123. 4 T o provide a better understanding of material expenses that impact the profit measure, the disclosure in the comparative segment report has been updated to include comparative amounts for expenses that were not material in the prior year, which are material in the current year. Reconciliation of reportable segments’ assets to inventories: Rand million Note 2025 2024 Finished product 4,055 3,147 WIP 12,819 12,418 Segment assets 16,874 15,565 Plant spares and stores 2,934 2,560 Balance per statement of financial position 6 19,808 18,125 All non-current assets, excluding investments in associates and joint arrangements, are located in South Africa. 51 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 1. Segmental reporting continued Reconciliation of operating profit to adjusted EBITDA: Rand million 2025 2024 Operating profit per the statement of profit or loss 25,758 26,361 Add back: Depreciation 6,165 5,713 EBITDA 31,923 32,074 Less: Impairment reversal — (3,940) Adjusted EBITDA 31,923 28,134 Geographical analysis of revenue: Rand million 2025 2024 Sale of iron ore 60,955 66,818 Services rendered – shipping 6,924 8,182 Revenue from other sources 2,198 (6,471) Total external revenue 70,077 68,529 Geographical analysis of revenue Domestic – South Africa — 1 Export 70,077 68,528 China 39,501 39,198 Rest of Asia 17,011 14,801 Europe 13,457 13,993 Rest of Africa and Americas 108 536 Total external revenue 70,077 68,529 Customer analysis: Two customers each accounted for 11% of total external revenue for the year (2024: one customer accounted for 15% of total external revenue). Other customers each accounted for less than 10% of the external revenue. The group’s products are sold primarily to industrial customers. 52 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 2. Property, plant and equipment Rand million Land Mineral properties Residen- tial buildings Buildings and infra- structure Machi- nery, plant and equip- ment Mineral explora- tion, site prepara- tion and develop- ment Assets under construc- tion Total 2025 Cost Balance at the beginning of the year 338 621 3,562 9,366 55,092 31,554 8,453 108,986 Additions (refer to note 28) — — — 10 184 4,144 6,073 10,411 Capital acquisitions — — — 10 184 9 6,073 6,276 Deferred stripping — — — — — 4,135 — 4,135 Borrowing costs capitalised — — — — — — 71 71 Changes in decommissioning provision (refer to note 9) — — — (49) (37) — — (86) Disposals and scrapping — — (283) — (220) — (155) (658) Transfers between asset classes 55 — 18 669 3,604 — (4,346) — Balance at 31 December 2025 393 621 3,297 9,996 58,623 35,698 10,096 118,724 Accumulated depreciation Balance at the beginning of the year — 461 1,697 4,196 36,073 10,553 — 52,980 Depreciation — 11 85 477 3,828 1,652 — 6,053 Disposals and scrapping — — (144) — (141) — — (285) Balance at 31 December 2025 — 472 1,638 4,673 39,760 12,205 — 58,748 Carrying amount at 31 December 2025 393 149 1,659 5,323 18,863 23,493 10,096 59,976 53 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 2. Property, plant and equipment continued Rand million Land Mineral properties Residen- tial buildings Buildings and infra- structure Machi- nery, plant and equip- ment (Restated1) Mineral explora- tion, site prepara- tion and develop- ment Assets under construc- tion (Restated1) Total 2024 Cost Restated balance at the beginning of the year1 344 621 3,608 7,453 49,991 24,230 14,451 100,698 Additions (refer to note 28) — — — — 31 3,238 5,731 9,000 Capital acquisitions — — — — 31 — 5,731 5,762 Deferred stripping — — — — — 3,238 — 3,238 Borrowing costs capitalised — — — — — — 75 75 Changes in decommissioning provision (refer to note 9) — — — (2) (220) — — (222) Disposals and scrapping (6) — (46) — (513) — — (565) Transfers between asset classes1 — — — 1,915 5,803 4,086 (11,804) — Restated balance at 31 December 2024 338 621 3,562 9,366 55,092 31,554 8,453 108,986 Accumulated depreciation Balance at the beginning of the year — 450 1,579 3,601 32,411 8,401 — 46,442 Depreciation — 11 106 450 3,349 1,644 — 5,560 Notional depreciation on impaired assets — — 33 145 808 508 — 1,494 Disposals and scrapping — — (21) — (495) — — (516) Balance at 31 December 2024 — 461 1,697 4,196 36,073 10,553 — 52,980 Impairment Balance at the beginning of the year — 43 300 550 1,856 1,221 1,464 5,434 Notional depreciation on impaired assets — — (33) (145) (808) (508) — (1,494) Impairment reversal — (43) (267) (405) (1,048) (713) (1,464) (3,940) Balance at 31 December 2024 — — — — — — — — Restated carrying amount at 31 December 2024 338 160 1,865 5,170 19,019 21,001 8,453 56,006 1 An amount of R2,287 million relating to capital projects that were available for use in the prior year was not transferred from assets under construction to machinery, plant and equipment in the correct period. The misclassification error has been corrected by restating the prior year opening balances and the amounts for “transfers between asset classes” for machinery, plant and equipment and assets under construction. The reclassification resulted in a decrease of R885 million in the 2024 opening balance and an increase of R1,402 million in “transfers between assets” for assets under construction, with a corresponding impact recorded for machinery, plant and equipment. The total carrying amount for property, plant and equipment remains unchanged. The depreciation associated with this reclassification is immaterial. 54 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 2. Property, plant and equipment continued Impairment indicator assessment Kumba produces iron ore at Sishen and Kolomela, each of which is considered capable of generating independent cash inflows and is, therefore, a separate CGU. In the prior year, the Kolomela CGU recognised a reversal of the full impairment of R3.9 billion (with related deferred tax of R1.1 billion) following a significant change to the Kolomela LoAP. Kolomela’s forecast production volume profile was revised as part of the group’s business reconfiguration plan to optimise value considering the logistics capacity. At 31 December 2025, management considered whether any internal or external indicators of impairment were present. This assessment concluded that there were no indicators of impairment identified for any of the group’s CGUs. Key operational and market factors that could impact future cash flows, including forecasted iron ore prices, foreign exchange rates, production costs, logistics performance and estimates of Ore Reserve and Mineral Resource estimates, are continuously monitored. There were no changes in these factors during the year, which indicated that the carrying amount of either CGU may not be recoverable. Accordingly, no impairment losses have been recognised for the year ended 31 December 2025. Borrowing costs During the year, R71 million (2024: R75 million) of borrowing costs incurred were capitalised on qualifying assets within property, plant and equipment. A weighted average capitalisation rate of 8.5% (2024: 9.3%) was applied. Change in useful lives of assets The useful lives of certain assets are aligned with the life-of-asset, which is based on updated Ore Resource and Mineral Reserve estimates. Following the extension of the lives of Kolomela and Sishen, the useful lives of the impacted mining-related assets were also reassessed and revised accordingly. This revision constitutes a change in accounting estimate and has been accounted for prospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The resulting decrease in the depreciation expense for the current year and for future periods is not significant. Other disclosure The group generated proceeds from disposals of items of property, plant and equipment of R141 million (2024: R50 million). The estimated replacement value of assets for insurance purposes and assets under construction at cost amounts to R97 billion (2024: R94 billion). A register of land and buildings is available for inspection at the registered office of the Company. None of the assets are encumbered as security for any of the group’s liabilities, nor is the title to any of the assets restricted. Rand million 2025 2024 Capital commitments Capital commitments include all items of capital expenditure for which specific Board approval has been obtained up to the statement of financial position date. Capital expenditure will be financed principally from cash generated from operations. Capital expenditure still in the study phase of the project pipeline for which specific Board approvals have not yet been obtained are excluded. Capital expenditure contracted for plant and equipment 3,452 2,962 Capital expenditure authorised for plant and equipment but not contracted 5,296 9,225 55 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 3. Leases This note provides information for leases where the group is a lessee. Amounts recognised in the statement of financial position: (a) Right-of-use assets: Rand million Note Residential buildings Buildings and infrastructure Machinery, plant and equipment Total 2025 Cost Balance at the beginning of the year 447 155 356 958 Additions 25 113 — 138 Early termination of lease agreements (2) — — (2) Balance at 31 December 2025 470 268 356 1,094 Accumulated depreciation Balance at the beginning of the year 362 142 311 815 Depreciation 14 52 22 38 112 Early termination of lease agreements (1) — — (1) Balance at 31 December 2025 413 164 349 926 Carrying amount at 31 December 2025 57 104 7 168 2024 Cost Balance at the beginning of the year 447 155 356 958 Additions 7 — — 7 Early termination of lease agreements (7) — — (7) Balance at 31 December 2024 447 155 356 958 Accumulated depreciation Balance at the beginning of the year 290 124 251 665 Depreciation 14 75 18 60 153 Early termination of lease agreements (3) — — (3) Balance at 31 December 2024 362 142 311 815 Carrying amount at 31 December 2024 85 13 45 143 The right-of-use assets in relation to the leased properties do not meet the definition of an investment property. (b) Lease liabilities: Rand million Note 2025 2024 Balance at the beginning of the year 193 355 New leases capitalised during the year 138 7 Early termination of lease agreements (1) (4) Lease payments made during the year (151) (195) Finance costs 18 24 30 Balance at the end of the year 203 193 Current 94 123 Non-current 109 70 Balance at the end of the year 203 193 56 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 3. Leases continued Maturity profile of the group’s lease liabilities Rand million Within 6 months 6 to 12 months 1 to 2 years 3 or more years Total contractual cash flows 2025 Undiscounted cash flows 47 47 57 100 251 2024 Undiscounted cash flows 67 67 57 27 218 Amounts recognised in the statement of profit or loss: Rand million Notes 2025 2024 Depreciation on right-of-use asset 14 112 153 Interest expense on leases1 18 24 30 Lease expenses relating to short-term and low-value assets 1 — Variable lease payments2 459 686 Income from sub-leasing of right-of-use assets 14 (55) (59) Net effect 541 810 1 Included in finance costs. 2 The group’s contract mining lease agreements include variable payments. These payments are expressed as a rate paid per tonne drilled or hauled. The payments are dependent on the production profile for the year. Refer to note 30 for future lease commitments. Amounts recognised in the statement of cash flows: Total cash outflow for leases in 2025 was R151 million (2024: R195 million), including R24 million (2024: R30 million) for finance costs (refer to note 18). The group's leases consist mainly of leasing of buildings and mining equipment. With the exception of leases of low-value underlying assets, each lease which meets the requirements of IFRS 16 Leases is reflected on the statement of financial position as a right-of-use asset and a lease liability. Lease payments for the leases accounted for as IFRS 16 Leases are fixed. Variable lease payments, which do not depend on an index or a rate, are excluded from the initial measurement of the lease liability and the related right-of-use asset. The group classifies and depreciates its right-of-use assets in a consistent manner to its property, plant and equipment. 4. Investments held by the environmental trust Rand million 2025 2024 Balance at the beginning of the year 989 877 Gain on investments 218 112 Balance at the end of the year 1,207 989 The trust’s investment activities are managed by Old Mutual Investment Group (South Africa) Proprietary Limited and M&G Investments (South Africa) Retirement Fund Limited. The trust aims to achieve its objectives by investing in unit trust instruments that hold a diversified portfolio of equity and debt securities of predominantly South African listed companies, as well as South African sovereign and corporate debt through various instruments. Each mine’s portfolio is managed separately according to each individual mine’s risk and life-of-asset profile. The movement in the environmental trust includes fair value movements as well as dividend and interest income, where applicable. The movement has been recognised as net finance gains in the statement of profit or loss (refer to note 17). These investments may only be utilised for the purpose of settling decommissioning and rehabilitation obligations relating to the group’s mining operations. The investment returns are reinvested by the trust. Refer to note 9 for the environmental rehabilitation and decommissioning provisions. 57 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 5. Other long-term receivables and investments Rand million 2025 2024 Long-term investments and prepayments 105 99 Other long-term receivables1 145 67 Balance at the end of the year 250 166 Maturity profile of long-term prepayments and other receivables 2025 2024 1 to 2 years 13 11 2 to 5 years 98 94 More than 5 years 3 3 114 108 1 This amount includes R 136 million (2024: R58 million) for a long-term receivable measured at FVTPL which does not have a maturity date and therefore is not included in the maturity analysis. 6. Inventories Rand million 2025 2024 Finished products 4,055 3,147 WIP 12,819 12,418 Plant spares and stores 2,934 2,560 Total inventories 19,808 18,125 Non-current portion of WIP inventories1 10,120 8,520 Current portion of inventories 9,688 9,605 Total inventories 19,808 18,125 1 The balance consists of B-grade WIP inventory of R 7,166 million (2024: R6,134 million) and C-grade WIP inventory of R2,954 million (2024: R2,386 million). During the year, the recoverability of historical non-current WIP stockpiles that were identified as potentially non- recoverable was reassessed. The overall likelihood of recovery improved following surveying work and inspection of stockpiles. As a result, the provision decreased by R401 million to R578 million (2024: R979 million). The provision for slow-moving plant spares and stores decreased by R127 million to R183 million (2024: R310 million). The total decrease in inventory provision of R528 million (2024: R71 million net increase) has been recognised in the statement of profit or loss (refer to note 14). Change in estimate Non-current WIP inventory increased by R615 million in the current year following a change in estimate relating to the density of the tonnes on hand. The change in estimate arose from the implementation of improved ore-density measurement techniques, informed by updated survey data and expert inputs. The revised density assumptions resulted in higher estimated stockpile tonnages and, accordingly, an increase in the carrying amount of WIP inventory. No inventories were encumbered during the year. WIP inventory which will not be processed within the next 12 months is presented as non-current. 58 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 7. Trade and other receivables Rand million 2025 2024 Trade receivables 2,129 2,765 Trade receivables at amortised cost 745 1,062 Trade receivables at FVTPL 1,384 1,703 Provision for credit losses – trade receivables (321) (292) Net trade receivables 1,808 2,473 Other receivables1 4,401 3,146 Provision for credit losses – other receivables (389) (390) Net trade and other receivables 5,820 5,229 Prepayments 96 106 Deferred shipping costs 477 431 Balance at the end of the year 6,393 5,766 1 Other receivables mainly comprise a VAT receivable of R 3,511 million (2024: R2,633 million) and exploration cost recoveries of R352 million (2024: R353 million), including R108 million (2024: R108 million) owed by a related party as disclosed in note 33. Net settlement arrangement A receivable arising from other operating income, disclosed in note 13, is subject to a contractual settlement arrangement. This arrangement does not meet the offsetting criteria in accordance with IAS 32 Financial Instruments: Presentation and, the related balance is presented gross in the statement of financial position. The related cash flows are settled on a net basis. Refer to note 11 for the related disclosure for the net settlement arrangement. Credit risk Kumba is largely exposed to credit risk relating to end-user customers within the steel manufacturing industry. As part of its approach to working capital management, Kumba uses debtor discounting arrangements. These arrangements are on a non-recourse basis, therefore the related trade receivables are derecognised from the group’s statement of financial position. Refer to note 34.2 for detailed disclosure regarding the group’s approach to credit risk management. Significant concentrations of credit risk Of the total outstanding gross trade receivables balance of R2,129 million (2024: R2,765 million), R1,391 million (2024: R2,656 million) or 65% (2024: 96%) consists of individual end-user customers with an outstanding balance in excess of 5% of the total trade receivables balance at 31 December 2025. The group continues to maintain long-standing relationships with its customers, with a substantial number having transacted with the group for more than five years. None of these customers’ balances have been written off or are impaired at the end of the reporting period. In monitoring customers’ credit risks, the group assesses this on an individual customer basis. The group considers each customer’s credit characteristics, their geographical location, industry, trading history with the group and existence of previous financial difficulties. As a result of the above factors, the expected credit loss is considered immaterial. The historical level of customer default is minimal and there is no current observable data to indicate a potential material future default. As a result, the credit quality of trade receivables at the end of the year is considered to be high. 59 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 7. Trade and other receivables continued Significant concentrations of credit risk continued Rand million 2025 2024 Trade receivables credit risk exposure by geographical area (gross)1 South Africa 341 305 Europe 20 1,170 Asia 1,768 1,290 2,129 2,765 Trade receivables credit risk exposure by currency (gross)2 Rand 341 305 US dollar 1,788 2,460 2,129 2,765 Ageing of trade receivables (gross) Not past due 1,806 2,478 Past due 1 to 30 days — — Past due 31 to 60 days — — Past due 61 to 90 days — — Past due more than 90 days 323 287 2,129 2,765 Expected credit loss rate (%) for trade receivables measured at amortised cost Not past due 1 1 Past due 1 to 30 days — — Past due 31 to 60 days — — Past due 61 to 90 days — — Past due more than 90 days 92 91 1 Trade receivables by geographical area include amounts at amortised cost of R 341 million in South Africa, R20 million in Europe and R384 million in Asia. 2 Trade receivables by currency comprise amounts at amortised cost of R 341 million in Rand and R404 million in US dollar. Trade receivables are non-interest-bearing and are generally on terms of 30 days. Refer to note 34.1 for the trade and other receivables classification. The group’s export trade receivables internal ratings range from secured to moderate risk, while the external rating is BBB (2024: BBB+), based on S&P Global and Moody’s Investors Service ratings. The domestic customers’ internal ratings range from secured to moderate risk, and externally BBB- (2024: BBB-). A provision for credit losses of R321 million (2024: R292 million) was raised against trade receivables. The group calculates expected credit losses for trade receivables, which incorporates forward looking information. The group limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 60 days. Trade and other receivables that have been outstanding for a period longer than 90 days, or where there is a dispute, were considered and provided accordingly. An expected credit loss reversal of R1 million (2024: R19 million reversal) was recognised during the year against other receivables. Set out below is the movement in the allowance for expected credit losses on trade and other receivables: Rand million 2025 2024 Balance at the beginning of the year 682 679 Movement in expected credit losses raised during the year 28 3 Trade receivables 29 22 Other receivables (1) (19) Balance at the end of the year 710 682 60 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 8. Cash and cash equivalents and debt facilities Cash and cash equivalents Rand million 2025 2024 Balance at the end of the year 15,117 16,913 Included in cash and cash equivalents is an amount of R1,486 million (2024: R1,758 million) held to cover initial margins under derivative contracts. On termination of the derivative contracts, the underlying positions will be closed, with an insignificant impact on the initial margin value, as the variation margin is settled daily. Short-term cash deposits of R12,944 million (2024: R14,119 million) were placed with subsidiaries of the ultimate holding company during the year under review (refer to note 33). The group held deposits amounting to R418 million (2024: R395 million), which are subject to statutory restrictions and are therefore not available for general use by the group. Rand million 2025 2024 Currency analysis of cash and cash equivalents Rand 4,269 2,118 US dollar 10,837 14,788 Other 11 7 15,117 16,913 Refer to note 34.3 for detailed disclosure regarding the group’s approach to liquidity risk management. Debt facilities Rand million 2025 2024 Current interest-bearing borrowings — 2,003 — 2,003 Reconciliation Balance at the beginning of the year 2,003 4,144 Borrowings raised during the year 12,000 39,852 Borrowings repaid during the year (14,000) (41,986) Finance costs repaid during the year (3) (10) Finance costs payable at the end of the year — 3 Balance at the end of the year — 2,003 61 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 8. Cash and cash equivalents and debt facilities continued Debt facilities continued Outstanding balance Rand million Facility maturity date Interest rate at 31 December Facility 2025 2024 Unsecured loans Revolving syndicated facility at a variable interest rate of JIBAR plus a margin which varies based on the period of the borrowing (committed)1, 2 23 May 2029 2025 8,000 — — JIBAR + 160 bps 2024 JIBAR + 160 bps Revolving syndicated facility at a variable interest rate of JIBAR plus a margin which varies based on the period of the borrowing (committed)2, 3 15 May 2029 2025 8,000 — 2,000 JIBAR + 160 bps 2024 JIBAR + 160 bps Call loan facility at floating call rates (uncommitted)1,2 Open 2025 8,200 — — JIBAR + 185 bps 2024 JIBAR + 185 bps Short-term working capital financing facilities1,4 30 June 2026 2025 18,430 — — SOFR + margin5 2024 SOFR + margin5 Total 42,630 — 2,000 1 These facilities are held with related parties (refer to note 33). 2 The Financial Stability Board has initiated a fundamental review and reform of the major interest rate benchmarks used globally by financial market participants. This review seeks to replace existing interbank offered rates with alternative risk-free rates to improve market efficiency and mitigate systemic risk across financial markets. The South African Reserve Bank (SARB) designated the South African Rand Overnight Index Average (ZARONIA) as the successor rate to replace JIBAR in November 2023. The observation period for ZARONIA ended 3 November 2023 and the SARB has indicated that market participants may use the published ZARONIA as a reference rate in pricing financial contracts going forward. In the current year, the SARB formally announced the cessation of JIBAR, confirming that publication of the benchmark will end on 31 December 2026. Market participants are required to transition outstanding JIBAR-linked exposure to ZARONIA during this period. The group has identified all contractual agreements requiring transition and will amend contracts and systems accordingly. 3 The prior year outstanding balance for borrowings was paid during 2025. 4 During the year, the group amended the short-term working capital financing facilities and extended the maturity date to June 2026. 5 The margin varies from 50 bps to 200 bps (2024: 50 bps to 170 bps) depending on the value of the drawdown from the facility. The group's debt facilities consist of committed R16 billion (2024: R16 billion) revolving credit facilities which mature in May 2029. No amount had been drawn down from the committed facilities as at 31 December 2025 (2024: R2.0 billion). Committed facilities are defined as the bank's and related parties’ commitment to provide funding, up to the facility limit and until the maturity date of the facility. The facilities roll on a continuous basis unless notice of cancellation, per the facilities’ notice period, is provided by the contracting parties. In line with the agreements, the financial covenants were tested at 31 December 2025 and 31 December 2024 and the group was not in breach of any of its financial covenants during the year and at the reporting date. The group's debt facilities also include an uncommitted facility of R8.2 billion (2024: R8.2 billion). At 31 December 2025, the uncommitted facility was undrawn (2024: undrawn). The committed facilities are reviewed and monitored bi-annually. The uncommitted facility is callable on demand. Refer to note 34.3 for details on financial covenants contained in the group’s revolving credit facilities. The short-term working capital financing facilities consist of committed revolving credit facilities of US$510 million (R8.5 billion) (2024: US$510 million (R9.6 billion)) and uncommitted facilities of US$600 million (R10.0 billion) (2024: US$600 million (R11.2 billion)). These facilities were concluded by SIOC’s subsidiaries (Kumba Singapore Pte Limited and Kumba International Trading Limited) during the year to fund their working capital requirements. These facilities, placed with a subsidiary of the ultimate holding company, are reviewed on an annual basis. SIOC, the parent company, will provide guarantees in favour of the lender for amounts drawn under these facilities, up to a maximum of US$820 million (R13.6 billion). The committed and uncommitted facilities were undrawn at 31 December 2025 and 31 December 2024. 62 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 9. Provisions Rand million Employee benefits cash-settled share-based payments Environ- mental rehabilitation Decom- missioning Other Total 2025 Non-current provisions 52 2,848 490 — 3,390 Current provisions 20 142 1 — 163 Total provisions 72 2,990 491 — 3,553 Balance at the beginning of the year 105 2,735 556 4 3,400 Unwinding of discount (refer to note 18) — 132 27 — 159 (Decrease)/increase in provision charged to the statement of profit or loss (14) 123 (6) — 103 Unused amounts reversed — — — (2) (2) Decrease in property, plant and equipment (refer to note 2) — — (86) — (86) Exchange differences on translation (4) — — — (4) Utilised during the year (15) — — (2) (17) Balance at 31 December 2025 72 2,990 491 — 3,553 Expected timing of future cash flows Within 1 year 20 142 1 — 163 2 to 5 years 52 557 15 — 624 More than 5 years — 2,291 475 — 2,766 72 2,990 491 — 3,553 Estimated undiscounted obligation 72 5,900 1,200 — 7,172 2024 Non-current provisions 105 2,566 519 — 3,190 Current provisions — 169 37 4 210 Total provisions 105 2,735 556 4 3,400 Balance at the beginning of the year 57 2,968 841 36 3,902 Unwinding of discount (refer to note 18) — 97 24 — 121 Increase/(decrease) in provision charged to the statement of profit or loss 40 (330) (87) (32) (409) Decrease in property, plant and equipment (refer to note 2) — — (222) — (222) Exchange differences on translation 1 — — — 1 Utilised during the year 7 — — — 7 Balance at 31 December 2024 105 2,735 556 4 3,400 Expected timing of future cash flows Within 1 year — 169 37 4 210 2 to 5 years 105 749 187 — 1,041 More than 5 years — 1,817 332 — 2,149 105 2,735 556 4 3,400 Estimated undiscounted obligation 105 5,477 1,196 4 6,782 63 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 9. Provisions continued Cash-settled share-based payments At 31 December 2025, the provision represented share awards of Anglo American plc shares made by the group to certain employees. Environmental rehabilitation Provision is made for environmental rehabilitation costs where either a legal or constructive obligation is recognised as a result of past events. Estimates are based upon costs that are reviewed regularly and adjusted as appropriate for new circumstances. Decommissioning The decommissioning provision relates to decommissioning of property, plant and equipment where either a legal or constructive obligation is recognised as a result of past events. Estimates are based upon costs that are regularly reviewed and adjusted. Compliance with the GISTM The group has made significant progress in assessing the work required to achieve conformance with the GISTM f o r a l l h i g h e s t - p r i o r i t y t a i l i n g s f a c i l i t i e s . W o r k c o n t i n u e s t o r e f i n e t h e a s s o c i a t e d d e s i g n s a n d c o s t e s t i m a t e s . W h e r e a legal or constructive obligation exists, the estimated costs of conformance have been recognised within the relevant decommissioning and environmental restoration provisions at 31 December 2025. Funding of environmental rehabilitation and decommissioning The group funds the environmental rehabilitation and decommissioning obligations through a combination of the investment held by the Kumba Iron Ore Rehabilitation Trust and guarantees (refer to note 29). The carrying value of the investment held by the trust amounted to R1,207 million at 31 December 2025 (2024: R989 million), refer to note 4 above. Significant accounting estimates and assumptions The measurement of the environmental rehabilitation and decommissioning provisions is a key area for which management’s judgement is required. Closure provisions are measured at the present value of the expected future cash flows required to perform the rehabilitation and decommissioning. This calculation requires the use of certain estimates and assumptions when determining the amount and timing of the future cash flows and the discount rate. Closure provisions are updated at each reporting date for changes in the estimates of the amount or timing of future cash flows, inflationary changes in the expected cash flows, utilisation of prior year provisions and changes in the discount rate. The LoAP for each mine on which accounting estimates are based only includes Proved and Probable Ore Reserves as disclosed in Kumba’s annual Ore Reserves and Mineral Resources statement. The resultant movement in the provisions are summarised as follows: Rand million Environmental rehabilitation Decom- missioning Total Change in provision 123 (92) 31 Revised estimates of closure costs (94) (137) (231) Impact of the decrease in discount rates 278 65 343 Life-of-asset changes (61) (20) (81) The discount rates for Sishen and Kolomela, in real terms, decreased to 4.2% and 4.3% respectively, due to lower bond yields (2024: 5.0% for both mines). 64 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 9. Provisions continued Significant accounting estimates and assumptions continued The environmental rehabilitation provision increased by R123 million, resulting mainly from the decrease in the discount rate, partially offset by revised closure cost estimates and changes in the remaining lives of both mines, with the full increase recognised in the statement of profit or loss. The decommissioning provision decreased by R92 million. Of this decrease, R86 million was recognised within property, plant and equipment, and R6 million was charged in the statement of profit or loss. The movement in the provisions decreased profits attributable to the owners of Kumba by R65 million (2024: R233 million increase). This movement resulted in a decrease in profits attributable to the owners of Kumba of R0.20 per share (2024: increase of R0.73 per share). The carrying value of the closure provisions is sensitive to changes in the estimates and assumptions used in its measurement. If the real discount rates for Sishen and Kolomela had been 1% higher than management’s estimate, the provision would have decreased by R330 million and R104 million, respectively (2024: R328 million). On the other hand, if the discount rate for Sishen and Kolomela had been 1% lower than management’s estimate, the provision would have increased by R399 million and R122 million, respectively (2024: R389 million). 10. Deferred tax liabilities Rand million 2025 2024 Deferred tax liabilities Reconciliation: Balance at the beginning of the year 14,106 11,860 Prior year adjustment (80) (46) Current year charge 1,188 2,292 Balance at the end of the year 15,214 14,106 Deferred tax liabilities attributable to the following temporary differences: Property, plant and equipment 16,056 15,033 Environmental rehabilitation provision (807) (738) Decommissioning provision (132) (150) Environmental rehabilitation trust asset 326 267 Leave pay accrual (84) (108) Share-based payments 313 316 Provisions1 (425) (487) Prepayments (55) 25 Lease liabilities 22 (52) Total deferred tax liabilities 15,214 14,106 1 The amount mainly consists of provisions for expected credit losses and bonuses. 65 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 11. Trade and other payables and contract liabilities Rand million 2025 2024 Trade payables1 9,230 6,960 Other payables2 2,450 1,894 Leave pay accrual 314 417 Total trade and other payables (excluding contract liabilities) 11,994 9,271 Contract liabilities3 482 449 Total trade and other payables (including contract liabilities) 12,476 9,720 Currency analysis of trade and other payables and contract liabilities Rand 11,564 8,797 US dollar 877 884 Other4 35 39 12,476 9,720 1 The balance consists of trade payables measured at amortised cost of R 9,108 million (2024: R6,667 million) and trade payables measured at fair value of R122 million (2024: R293 million). 2 Other payables mainly comprise a short-term incentive accrual of R 685 million (2024: R507 million), freight costs payable of R595 million (2024: R406 million), mineral royalty payable of R300 million (2024: R93 million), unclaimed dividends of R269 million (2024: R267 million), and an accrual for employee benefit costs of R68 million (2024: R77 million). 3 The full amount of R449 million in relation to the contract liabilities at 31 December 2024 was recognised as revenue during 2025. 4 “Other” mainly comprises payables denominated in Singapore dollars. Trade payables are non-interest-bearing and are generally on 60-day payment terms. Net settlement arrangement As disclosed in note 7, the group has a contractual net settlement arrangement that does not meet the offsetting criteria outlined in IAS 32 Financial Instruments: Presentation. The gross amount for the trade payable is therefore presented within trade and other payables in the statement of financial position, although the related cash flows will be settled on a net basis. The amounts subject to the net settlement arrangement are as follows: Rand million Gross amounts recognised Amounts subject to net settlement arrangements1 Net amount Other receivable 406 (406) — Trade payable (762) 270 (492) Net amounts (356) (136) (492) 1 The other receivable as per the net settlement arrangement amounts to R406 million, of which R270 million was eligible to be settled on a net basis at the reporting date, with the remaining R136 million eligible to be settled on a net basis in 2026. The net settlement arrangement applies only to these balances. 66 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 12. Revenue Rand million 2025 2024 Sale of iron ore 60,955 66,818 Services rendered - shipping 6,924 8,182 Total revenue from contracts with customers 67,879 75,000 Revenue from other sources1 2,198 (6,471) Total revenue as per statement of profit or loss 70,077 68,529 Geographical analysis of revenue from contracts with customers Domestic – South Africa — 1 Export 67,879 74,999 China 39,674 40,204 Rest of Asia 15,428 18,150 Europe 12,669 16,109 Rest of Africa and Americas 108 536 Total revenue from contracts with customers 67,879 75,000 1 Revenue from other sources comprises a net gain on financial instruments of R 2,032 million (2024: net loss of R5,252 million) and subsequent movements in provisionally priced sales of R166 million (net gain) (2024: R1,219 million (net loss)). The net gain on financial instruments includes net gains on derivatives relating to undelivered physical cargo of R382 million (2024: net loss of R1,123 million). Revenue from contracts with customers comprises sales of iron ore and shipping services rendered. Disaggregation of revenue from contracts with customers: Products Services TotalRand million Sishen mine Kolomela mine Shipping operations 2025 Total segment revenue (refer to note 1) 44,523 18,630 6,924 70,077 Less: Revenue from other sources (net gain) (1,520) (678) — (2,198) Revenue from contracts with customers 43,003 17,952 6,924 67,879 2024 Total segment revenue (refer to note 1) 44,070 16,277 8,182 68,529 Add: Revenue from other sources (net loss) 4,610 1,861 — 6,471 Revenue from contracts with customers 48,680 18,138 8,182 75,000 13. Other operating income Rand million 2025 2024 Penalty income 942 — Other operating income 942 — This amount relates to a take-or-pay penalty income from a service provider for logistics underperformance. The related receivable has been disclosed in note 7. 67 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 14. Operating expenses Rand million Notes 2025 2024 Cost by nature: Raw materials and consumables 2,395 2,011 Net movement in finished product and WIP inventories (909) 1,575 Net (reversal of)/increase in inventory provision1 (528) 71 Contractors’ expenses 3,530 3,460 Deferred stripping costs capitalised (4,135) (3,238) Staff costs 15 7,081 6,706 Salaries and wages 6,145 5,698 Equity-settled share-based payments 22 238 155 Cash-settled share-based payments (16) 44 Termination benefits 2 149 Pension and medical aid contributions 16 712 660 Mineral royalty 1,714 1,631 Transportation and selling costs 8,549 7,913 Shipping services rendered 6,839 7,998 Depreciation of property, plant and equipment 6,165 5,713 Mineral properties 2 11 11 Residential buildings 2 85 106 Buildings and infrastructure 2 477 450 Machinery, plant and equipment 2 3,828 3,349 Mineral exploration, site preparation and development 2 1,652 1,644 Right-of-use assets 3 112 153 Repairs and maintenance 3,771 3,453 Legal fees 37 28 Consulting fees 300 438 Auditors’ remuneration 17 17 Audit fees 14 14 Other services 3 3 Insurance cost 198 225 Technical services and project studies 342 240 Lease expenses 3 460 686 Sub-lease rentals received (55) (59) Other expenses2 3,115 2,267 Petroleum products 3,032 2,860 Net loss/(gain) on disposal and scrapping of property, plant and equipment 232 (1) Net finance losses/(gains) 17 228 (350) Energy costs 836 745 Own work capitalised3 (232) (73) Corporate costs 2,251 1,789 Total operating expenses 45,233 46,105 1 The net reversal of inventory provision comprises the decrease of R401 million for non-current WIP inventory (2024: Rnil) and R127 million (2024: increase in provision of R71 million) for plant, spares and stores. Refer to note 6 for further details. 2 “Other expenses” include administrative expenses, equipment hire, shuttle services, professional fees, rehabilitation costs and general labour. 3 Relates to operating expenses incurred during the year that were capitalised to property, plant and equipment. These costs met the qualifying criteria for capitalisation. 68 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 15. Other items included in operating profit Rand million 2025 2024 Operating profit includes the following amounts: Staff costs (excluding directors’ and Prescribed officers’ remuneration) 6,992 6,611 Employee expenses 6,768 6,263 Net restructuring costs 2 149 Share-based payment expenses 222 199 Directors’ emoluments (refer to note 35) 52 41 Executive directors 39 30 Emoluments received as directors of the Company 25 18 Bonuses and cash incentives 14 12 Non-executive directors – emoluments received as directors of the Company 13 11 Prescribed officers’ remuneration (excluding executive directors – refer to note 35) 37 55 Total 7,081 6,707 16. Employee benefits: defined contribution funds 16.1 Retirement fund At the end of 2025 and 2024, the following independent funds providing pension and other benefits were in existence: • Kumba Iron Ore Selector Provident Fund1 • Iscor Employees Umbrella Provident Fund Members pay contributions of 7% and an employer’s contribution of 12% is expensed as incurred. All funds are governed by the South African Pension Funds Act of 1956. Membership of each fund and employer contributions to each fund were as follows: 2025 2024 Working members (number) Employer contributions (Rand million) Working members (number) Employer contributions (Rand million) Kumba Iron Ore Selector Provident Fund 3,376 273 3,055 243 Iscor Employees Umbrella Provident Fund 2,571 147 2,608 148 Total 5,947 420 5,663 391 1 Fu nd was renamed from Kumba Iron Ore Selector Pension and Provident Funds to Kumba Iron Ore Selector Provident Fund. Due to the nature of these funds, the accrued liabilities equate to the total assets under control of these funds. 16.2 Medical funds The group contributes to medical aid schemes for the benefit of permanent employees and their dependants. The contributions charged against income amounted to R292 million (2024: R269 million). The group has no obligation to fund post-retirement medical aid contributions for current or retired employees. 17. Net finance losses/(gains) Rand million 2025 2024 Finance gains recognised in operating profit: Net foreign currency gains1 529 (218) Net fair value gains on financial assets measured at FVTPL2 (301) (132) Net finance losses/(gains) 228 (350) 1 This amount consists of R54 million realised net losses (2024: R190 million net losses) on foreign currency and R475 million unrealised net losses (2024: R408 million net gain) on foreign currency. 2 This amount mainly comprises a R 218 million net fair value gain (2024: R112 million net fair value gain) on investments held by the environmental trust (refer to note 4) and a R78 million fair value gain (2024: R18 million gain) on a long-term loan receivable measured at FVTPL. 69 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 18. Net finance income Rand million Notes 2025 2024 Interest expense 795 434 Finance costs on leases 3 24 30 Unwinding of discount on provisions 9 159 121 Borrowing costs capitalised 2 (71) (75) Total finance costs 907 510 Total finance income (1,382) (800) Interest received on cash and cash equivalents (739) (683) Other interest received1 (643) (117) Net finance income (475) (290) 1 This amount relates to interest received from SARS. 19. Taxation Rand million 2025 2024 Taxation expense Current taxation 5,967 5,129 Deferred taxation 1,108 2,246 7,075 7,375 Charges to the statement of profit or loss South African normal taxation Current year 5,597 4,617 Prior year (174) 156 Foreign taxation1 Current year 544 360 Prior year — (4) Income taxation 5,967 5,129 Deferred taxation Current year 1,188 2,292 Prior year (80) (46) 7,075 7,375 There was no tax adjustment required for the group relating to Pillar 2 taxes for the year ended 31 December 2025. 2025 2024 Reconciliation of taxation rates % % Taxation as a percentage of profit before taxation 27.0 27.7 Taxation effect of: Rate difference between South African and foreign subsidiaries1 0.1 (0.1) Disallowable expenditure2 (1.1) (0.2) Prior year under/(over) provision 1.0 (0.4) Standard taxation rate 27.0 27.0 1 This relates to tax incurred in the United Kingdom where the tax rate is 25%. 2 This relates mostly to learnership expenses, legal fees mainly relating to outside services, consulting and donations. 70 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 20. Earnings and headline earnings per share Attributable EPS is calculated by dividing the profit or loss attributable to shareholders of Kumba by the weighted average number of ordinary shares in issue for the year, excluding ordinary shares purchased by the group and held as treasury shares. For the diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive ordinary shares, as a result of share options granted to employees under the employee share incentive schemes. A calculation is performed to determine the number of shares that could have been acquired at fair value, determined as the average annual market share price of the Company’s shares based on the monetary value of the subscription rights attached to the outstanding share options. Rand million 2025 2024 Profit attributable to equity holders of Kumba 14,611 14,699 Number of shares Weighted average number of ordinary shares in issue 320,625,822 320,883,243 Potential dilutive effect of outstanding share options1 964,680 789,464 Diluted weighted average number of ordinary shares in issue 321,590,502 321,672,707 1 The dilution adjustment of 964,680 shares at 31 December 2025 (2024: 789,464) is a result of the share options granted under the various employee share incentive schemes. Refer to Annexure 3 for details of the group’s share option schemes. Reconciliation of headline earnings The calculation of HEPS is based on the basic EPS calculation adjusted for the following items: 2025 2024 Rand million Gross adjustment Net attributable Gross adjustment Net attributable Profit attributable to equity holders of Kumba 14,611 14,611 14,699 14,699 Impairment reversal — — (3,940) (2,203) Net loss/(gain) on disposal and scrapping of property, plant and equipment 232 129 (1) (1) 14,843 14,740 10,758 12,495 Taxation effect of adjustments (63) — 1,052 — Non-controlling interest adjustments (40) — 685 — Headline earnings 14,740 14,740 12,495 12,495 Rand 2025 2024 Attributable EPS Basic 45.57 45.81 Diluted 45.43 45.70 HEPS Basic 45.97 38.94 Diluted 45.83 38.84 71 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 21. Share capital and share premium (including treasury shares) Number of shares 2025 2024 Authorised Ordinary shares of R0.01 each 500,000,000 500,000,000 Issued Ordinary shares of R0.01 each 322,085,974 322,085,974 Reconciliation of issued shares Number of shares at the beginning of the year 322,085,974 322,085,974 Number of shares at the end of the year 322,085,974 322,085,974 Reconciliation of shares held in reserve (unissued shares) Authorised shares at the beginning of the year not issued 177,914,026 177,914,026 Unissued shares at the end of the year 177,914,026 177,914,026 No new shares were issued during 2025 and 2024. The unissued shares are placed under the control of the directors of Kumba until the next AGM. All issued shares are fully paid up. There are no rights, preferences or restrictions attached to these shares. Reconciliation of treasury shares held Number of shares 2025 2024 Balance at the beginning of the year 1,216,978 1,134,326 Purchased during the year 951,026 527,646 Issued to employees under the Bonus and Retention Share Plan (BRP), SIOC Employee Share Ownership Plan Trust (Semela) and the Performance Share Plan (PSP) (387,271) (444,994) Number of treasury shares at the end of the year 1,780,733 1,216,978 All treasury shares are held in respect of employee share schemes and are available for utilisation for the purposes of these schemes, as disclosed in note 22. At 31 December 2025, all treasury shares were held as conditional share awards under the BRP, Semela and PSP. Total treasury shares purchased during the year were acquired by the Semela scheme (460,514 shares) and SIOC (490,512 shares). No treasury shares reverted to “authorised but unissued” during the year. Rand million 2025 2024 Reconciliation of share capital and premium (net of treasury shares) Balance at the beginning of the year (190) (232) Net movement in treasury shares under employee share incentive schemes (131) 42 Purchase of treasury shares under employee share incentive schemes1 (310) (241) Shares issued to employees under employee share incentive schemes 179 283 Balance at the end of the year (321) (190) Comprises: Share capital 3 3 Share premium 364 364 Treasury shares (688) (557) Balance at the end of the year (321) (190) 1 The average price paid for the purchase of treasury shares in 2025 was R341.55 per share (2024: R457.38 per share). 72 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 22. Equity-settled share-based payment reserve Rand million 2025 2024 Balance at the beginning of the year 292 357 Equity-settled share-based payment expense 238 155 Employee share incentive schemes: Karolo 23 38 Semela 107 55 PSP 26 (9) BRP 82 71 Vesting of shares under employee share incentive schemes (185) (220) Balance at the end of the year 345 292 Refer to Annexure 3: Equity-settled share-based payment schemes for the description, detailed movements and valuation assumptions for each share scheme for the year under review. 23. Non-controlling interests Rand million 2025 2024 Balance at the beginning of the year 16,485 16,203 Profit for the year 4,546 4,576 Exxaro Resources Limited 3,952 3,978 SIOC Community Development Trust 594 598 Dividends paid (3,757) (4,302) Exxaro Resources Limited (3,266) (3,741) SIOC Community Development Trust (491) (561) Interest in movement in equity reserves (205) 8 Foreign currency translation reserve (205) 8 17,069 16,485 Details relating to non-controlling interests are disclosed in note 33. 24. Cash generated from operations Rand million 2025 2024 Operating profit 25,758 26,361 Adjusted for: Depreciation of property, plant, equipment and right-of-use assets 6,165 5,713 Movement in provisions 83 (403) Unrealised foreign currency revaluations and fair value adjustments 740 (801) Loss/(profit) on disposal and scrapping of property, plant and equipment 232 (1) Impairment reversal — (3,940) Expected credit losses 28 — WIP inventory adjustments1 (1,016) — Other non-cash movements 34 — Movement in non-current financial assets and prepayments 3 11 Equity-settled share-based payment expenses 238 155 Cash flows from operations 32,265 27,095 Working capital movements: (Increase)/decrease in inventories (720) 2,283 (Increase)/decrease in trade and other receivables (1,527) 5,281 Increase in trade and other payables 2,430 132 Cash generated from operations2 32,448 34,791 1 This amount consists of non-cash movements in inventory relating to WIP inventory change in estimate of R 615 million and movement in historical WIP stockpile provision of R401 million. Refer to note 6 for further details. 2 The group presents its statement of cash flows using the direct method. The above note has been included as additional information. 73 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 25. Net finance income received Rand million Notes 2025 2024 Net finance income per the statement of profit or loss 475 290 Adjusted for: Notional interest on provisions 9 159 121 Borrowing costs capitalised 2 (71) (75) Movement in interest receivable (34) 17 Movement in interest payable (3) (7) 526 346 Finance income received 1,348 817 Finance costs paid (822) (471) 526 346 26. Taxation paid Rand million 2025 2024 Taxation (assets)/liabilities at the beginning of the year (551) 206 Income taxation per the statement of profit or loss (refer to note 19) 5,967 5,129 Translation of taxation for foreign operations (10) (8) Taxation asset at the end of the year 467 551 Taxation paid per the statement of cash flows 5,873 5,878 Comprising normal taxation: South Africa 5,516 5,313 Foreign operations 357 565 5,873 5,878 27. Dividends paid Rand million 2025 2024 Dividends paid to owners of Kumba 11,756 13,840 Dividends paid to non-controlling shareholders 3,757 4,302 Total dividends per the statement of changes in equity 15,513 18,142 28. Additions to property, plant and equipment Rand million 2025 2024 Investments to expand operations 1,800 1,260 Investments to maintain operations 4,476 4,502 Deferred stripping costs capitalised 4,135 3,238 Total capital expenditure for the year 10,411 9,000 (Increase)/decrease in capital creditors1 (380) 673 Additions per the statement of cash flows 10,031 9,673 1 This amount relates to capital expenditure incurred during the year which had not been paid as at the reporting date, net of any prior year capital expenditure paid during the year. 74 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 29. Guarantees and regulatory update 29.1 Guarantees Rand million 2025 2024 Environmental closure liability guarantees obtained in favour of the DMPR 6,516 6,521 Operational guarantees obtained in favour of the DMPR 8 8 Other guarantees 41 40 6,565 6,569 Environmental obligations Total guarantees provided in favour of the DMPR in respect of the group's undiscounted environmental closure liabilities at 31 December 2025 were R6.5 billion (2024: R6.5 billion). No additional guarantees were provided in favour of the DMPR during the year as there was a surplus of R838 million at 31 December 2024. Undiscounted closure costs increased by R427 million during the year. This, together with the cancellation of a R5 million guarantee, partially offset by an increase of R218 million in the trust fund investment, has resulted in a surplus of R624 million at December 2025 in respect of guarantees provided to the DMPR for both mines. 29.2 Regulatory update National Environmental Management Act (NEMA) The Minister of Forestry, Fisheries and the Environment has determined that requirements for making financial provision to manage, rehabilitate and remediate environmental impacts from mining operations will be regulated under NEMA and no longer under the current Mineral and Petroleum Resources Development Act. This agreement has been formalised by amending the relevant environmental, water and mining legislation. The financial provisioning regulations were published on 20 November 2015, and further proposed material amendments were gazetted on 10 November 2017, 17 May 2019 and 30 August 2021. The effective date for NEMA regulations has been extended to a date yet to be published. These amendments are expected to result in the provision of additional funding for the undiscounted closure costs. 30. Commitments Lease commitments1 This relates to future cash outflows that Kumba is exposed to that are not reflected in the measurement of the lease liabilities. This includes exposure from variable lease payments for certain equipment items and lease payments for low-value equipment items. Rand million 2025 2024 The undiscounted future cash outflows not reflected in the measurement of the lease liabilities are as follows: Plant and equipment Within 1 year 1 49 Between 1 and 2 years — 10 Between 2 to 5 years — — Total lease commitments 1 59 1 Certain lease agreements include variable lease payments, which amounted to R 459 million at 31 December 2025 (2024: R686 million). These payments, based on rates per tonne drilled or hauled, are recognised in profit or loss as incurred and expose Kumba to variability in future cash flows. 75 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 31. Update on the SARS litigation matter On 5 March 2025, the SCA handed down its judgment on the dispute with SARS relating to the deductibility of certain expenditure incurred by SIOC during the 2012 to 2014 years of assessment and claimed as deductions for income tax purposes. The SCA ruled in favour of SIOC, except for certain legal costs which the court found to be non-deductible for income tax. On 27 March 2025, SARS filed its Notice of Application for Leave to Appeal with the Constitutional Court to appeal against the SCA judgment. SIOC subsequently filed its Notice of Intention to Oppose SARS's Leave to Appeal with the Constitutional Court on 9 April 2025. On 1 December 2025, the Constitutional Court rejected SARS’s Application for Leave to Appeal. All SARS audits relating to this matter, which had been held in abeyance pending the outcome of the appeal to the Constitutional Court, have been terminated and those years have now prescribed. 32. Events after the reporting period 32.1 Dividends A final cash dividend of R15.43 per share was declared by the Board on 18 February 2026 from profits accrued during the financial year ended 31 December 2025. The total cash dividend for the year amounts to R32.03 per share. The estimated total cash flow of the final Kumba dividend, payable on 16 March 2026, is R4.9 billion. 32.2 Other The directors are not aware of any other matters or circumstances arising since the end of the year and up to the date of this report, not otherwise dealt with in this report. 33. Related-party transactions During the year, the Company and its subsidiaries, in the ordinary course of business, entered into various sales and purchases of goods and service transactions with the group’s related parties, as detailed below. The effect of these transactions is included in the results of the group. Shareholders The principal shareholders of the Company are detailed under shareholder analysis on pages 118 and 119. Ultimate holding company Anglo American plc is the ultimate holding company of the group, through its 100% held subsidiary, Anglo South Africa Proprietary Limited. Subsidiaries of ultimate holding company The Company regularly transacts with its fellow subsidiaries. The most significant transactions are the shipping arrangements entered into with Anglo American Shipping Private Limited, the clearing of funds being repatriated to South Africa that are placed on short-term deposit with Anglo American Capital Proprietary Limited and corporate office recharges for services performed. Anglo American SA Finance Proprietary Limited acts as an agent for the Company and the group in respect of all foreign exchange transactions and performs a back-office treasury function for the group. Short-term cash deposits are placed with the entity, and funds are drawn down from this entity in the form of borrowings when required, resulting in both interest paid and interest received from Anglo American SA Finance Proprietary Limited. 76 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 33. Related-party transactions continued Holding company Anglo South Africa Proprietary Limited holds a 69.71% interest in the Company (2024: 69.71%). Fellow subsidiaries The Company regularly transacts with Anglo Corporate Services South Africa Proprietary Limited in respect of the centralised services it provides to Anglo American plc group companies, including the Kumba group. Subsidiaries of the Company Details of investments in, and loans to, subsidiaries are disclosed in Annexure 1. Sale of an indirect subsidiary to a related party During the year, SIOC disposed of its 100% interest in Solar SPV Proprietary Limited to Envusa Energy for a nominal consideration of R100. The subsidiary was dormant and had no assets or liabilities at the date of disposal, and accordingly an immaterial gain arose from the transaction. Envusa Energy is a joint venture between Anglo American plc and a third party. Associates and joint arrangements Details of investments in associates and joint arrangements are disclosed in Annexure 2. Entities with significant influence over SIOC Exxaro Resources Limited is SIOC’s 20.37% BEE shareholder, representing Exxaro Resources Limited’s legal shareholding in SIOC. Details of dividends paid to Exxaro Resources Limited as well as its proportionate share of earnings for the year are detailed in note 23. Special purpose entities (SPEs) The group controls the following SPEs which are consolidated: Entity Nature of business Kumba Iron Ore Rehabilitation Trust Trust fund for mine closure Kumba Bonus Share Plan (BSP) Trust Share incentive scheme administrator SIOC Employee Benefit Trust (Karolo) Share incentive scheme administrator SIOC Employee Share Ownership Plan Trust (Semela) Share incentive scheme administrator Directors, senior management and Prescribed officers Details relating to the remuneration and shareholdings (including share options) of the Company’s directors and the group’s Executive Committee and Prescribed officers are disclosed in note 35. 77 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 33. Related-party transactions continued Transactions and balances held with related parties Rand million 2025 2024 Anglo American SA Finance Proprietary Limited Short-term deposit held with Anglo American SA Finance Proprietary Limited – Deposit balance 3,582 1,101 – Weighted average interest rate (%) 7.53 9.37 Interest earned during the year 250 86 Interest receivable 35 1 Uncommitted facilities held with Anglo American SA Finance Proprietary Limited 8,200 8,200 Interest incurred during the year 4 20 Interest payable — 2 Anglo American Capital plc Short-term deposit held with Anglo American Capital plc – Deposit balance 9,362 13,018 – Weighted average interest rate (%) 4.25 5.17 Interest earned during the year 358 491 Committed debt facilities held with Anglo American Capital plc 8,468 9,552 Uncommitted debt facilities held with Anglo American Capital plc 9,962 11,238 Commitment fees incurred during the year 39 48 Anglo Corporate Services South Africa Proprietary Limited Purchase of goods and services: Corporate operations (including shared services) 1,834 1,376 Insurance receivable 74 90 Trade payables 2,468 1,522 Long-term receivables 115 115 Anglo American Marketing Limited Cash and cash equivalents held with Anglo American Marketing Limited 1,486 1,758 Net gain/(loss) on trading activities realised 2,096 (5,215) Trade receivables — 39 Trade payables 141 150 Sale of goods and services 1,134 1,614 Interest received1 58 123 Purchase of services1 439 574 Anglo American Shipping Private Limited Shipping services provided by Anglo American Shipping Private Limited 6,839 7,998 Shipping commitments — 173 Transportation and selling costs 160 — Net loss on trading activities — 37 Trade receivables 477 431 Trade payables 595 406 Anglo American Shipping Private Limited UK Shipping services provided by Anglo American Shipping Private Limited UK Branch 47 — Anglo American Rand Capital Committed debt facilities held with Anglo American Rand Capital 8,000 8,000 Commitment fees incurred during the year 31 44 Anglo South Africa Proprietary Limited Dividends paid to Anglo South Africa Proprietary Limited 8,196 9,648 Exxaro Resources Limited Dividends paid to Exxaro Resources Limited 3,266 3,741 Purchase of goods and services2 73 2 Essential Prospects 101 Proprietary Limited Cost recoveries for services rendered by SIOC1 * (1) Other receivables for cost recoveries 108 108 OUF Proprietary Limited Other receivables 2 — 1 The disclosure in the comparative year has been updated to include all other material items of income or expenses to provide more information about related-party trading activities. 2 Goods purchased from and services rendered by Exxaro Resources Limited consisted of ferrosilicon purchases and directors’ fees. 78 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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* The amount for the period is less than R1 million. Notes to the annual financial statements continued for the year ended 31 December 33. Related-party transactions continued Maturity analysis of shipping services commitments: Rand million 2025 2024 Future commitments under contracts for affreightment are as follows: Within 1 year — 173 — 173 Entities with significant non-controlling interests SIOC is the only consolidated subsidiary with non-controlling interests. SIOC is incorporated in South Africa. The non-controlling interests are as follows: Exxaro Resources Limited 20.37% (2024: 20.37%) SIOC Community Development Trust 3.06% (2024: 3.06%) The non-controlling interests in the consolidated financial statements are as follows: Rand million 2025 2024 Profit for the year allocated to non-controlling interests 4,546 4,576 Accumulated non-controlling interests at the end of the year 17,069 16,485 Rand million 2025 2024 Statement of profit or loss Revenue 58,993 56,225 Other operating income 942 — Operating expenses (36,589) (36,103) Impairment reversal — 3,940 Expected credit losses on financial assets (37) (16) Operating profit 23,309 24,046 Net finance income 49 (245) Income from investments 4,765 4,694 Profit before taxation 28,123 28,495 Taxation (6,500) (6,997) Profit for the year 21,623 21,498 Statement of financial position Non-current assets 73,882 67,762 Current assets 22,667 20,702 Total assets 96,549 88,464 Shareholders’ equity 66,272 60,494 Non-current liabilities 18,806 17,395 Current liabilities 11,471 10,575 Total equity and liabilities 96,549 88,464 Statement of cash flows Cash flows from operating activities 29,621 30,958 Cash flows utilised in investing activities (9,890) (9,623) Cash flows utilised in financing activities (17,718) (20,490) Net increase in cash and cash equivalents 2,013 845 79 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management The group is exposed to credit risk, liquidity risk and market risk (commodity price risk, foreign exchange risk and interest rate risk) from the use of financial instruments. Overall responsibility for establishment and oversight of the risk management framework rests with the Board of directors. The Board, through its various sub-committees, is responsible for the development, monitoring and communication of the processes for managing risk across the group. The group maintains an integrated, enterprise-wide risk management programme. The group applies a logical, systematic and repetitive methodology to identify, analyse, assess, treat and monitor all risks, whether they are insurable or not. The risk management process is continuous, with well-defined steps that support better decision-making by contributing a greater insight into risks and their impacts. Risks from all sources are identified and once they pass the materiality threshold, a formal process begins in which various factors and consequences are identified and the correlation with other risks and the current risk mitigating strategy is reviewed. One of the challenges is to ensure that mitigating strategies are geared to deliver reliable and timely risk information to support better decision-making. The risk assessment and reporting criteria are designed to provide the Executive Committee, via the Management Risk Committee and the Board, with a consistent, enterprise-wide perspective of the key risks. The reports, which are submitted monthly to the Executive Committee and quarterly to the Management Risk Committee and the Board, include an assessment of the likelihood and impact of risks materialising, as well as risk mitigation initiatives and their effectiveness, risk appetite and tolerance. In conducting its review of the effectiveness of risk management, the Board considers the key findings from the ongoing monitoring and reporting processes within the combined assurance framework as well as from management. The Board also takes into account material changes and trends in the risk profile and considering whether the control system, including reporting, adequately supports the Board in achieving its risk management objectives. SIOC, in conjunction with Anglo American SA Finance Proprietary Limited, provides a treasury function to the group, co-ordinates access to domestic and international financial markets, and manages the financial risks relating to the group’s operations. The group utilises derivative instruments to manage certain market risk exposures, however, it chooses not to designate derivatives as hedges for accounting purposes. Such derivatives are classified as FVTPL and the fair value movements are recorded in the group’s statement of profit or loss. The majority of the group's sales are index-linked to the Platts Iron Ore Index. Iron ore derivatives are entered into by the group’s marketing division to manage this price risk. Derivatives are linked to sales made to customers. A quotational period mismatch generally arises because physical trades and derivative hedges reference different pricing periods. These derivatives allow the group to more closely align prices achieved from sales transactions with reference prices set by the group. Margin accounts are used to manage risks related to the derivatives. The initial margins under a derivative contract with a related party, which are required to be held for trading, are included in cash and cash equivalents (refer to note 8). The use of derivative instruments is subject to limits and the positions are regularly monitored and reported to the Executive Committee. 80 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.1 Measurement basis of financial instruments Rand million Notes FVTPL1 Amortised cost Total 2025 Financial assets Investments held by the environmental trust 4 1,207 — 1,207 Trade receivables 7 1,384 424 1,808 Long-term other receivables 5 136 — 136 Equity investments at FVTPL 9 — 9 Other receivables (excluding VAT and prepayments) 7 — 501 501 Cash and cash equivalents 8 — 15,117 15,117 Financial liabilities Trade payables 11 (122) (9,108) (9,230) Other payables (excluding VAT and mineral royalty payable) 11 (14) (2,153) (2,167) 2,600 4,781 7,381 2024 Financial assets Investments held by the environmental trust 4 989 — 989 Trade receivables 7 1,703 770 2,473 Long-term other receivables 5 58 — 58 Equity investments at FVTPL 9 — 9 Other receivables (excluding VAT, prepayments and mineral royalty receivable) 7 29 525 554 Cash and cash equivalents 8 — 16,913 16,913 Financial liabilities Lease liabilities 3 — (193) (193) Interest-bearing borrowings 8 — (2,003) (2,003) Trade payables 11 (293) (6,667) (6,960) Other payables 11 (7) (1,888) (1,895) 2,488 7,457 9,945 1 These financial assets and financial liabilities are mandatorily measured at FVTPL. 81 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.2 Credit risk Credit risk is the risk of financial loss to the group if a counterparty to a financial instrument fails to meet its contractual obligations. The group is exposed to counterparty risk from the investments made by the environmental trust, outstanding customer balances, cash deposits with financial institutions and related parties. The objective of managing credit risk is to avoid losses due to a default by a counterparty, or to minimise losses in the event of a default. 34.2.1 Credit risk policy: Investments and cash and cash equivalents The group’s policy is to strictly limit exposure to individual counterparties by reference to published short-term and long-term credit ratings from recognised credit rating agencies. The group invests in high-quality investments with reputable service providers with long-term investment credit ratings ranging between AA and AA+, based on external credit rating agencies. The group’s exposure and the credit ratings of its counterparties are continuously monitored. The policy requires diversification of credit exposures among these financial institutions and defines acceptable daily settlement limits. Where cash is held by related parties, those related parties manage the external investment of cash in accordance with the group’s treasury policy by investing in liquidity funds, bank deposits and government instruments. The related parties are ultimately wholly owned subsidiaries of the ultimate holding company, which has a credit rating of BBB+ based on S&P Global Ratings and Moody’s Investors Service ratings. Individual limits for counterparties whose ratings fall within the credit rating guidelines of the group’s policy are approved by the Chief Financial Officer, and for counterparties with ratings outside of the policy guidelines, the limits must be approved by the Board. 34.2.2 Credit risk policy: Trade and other receivables The group’s credit policy is used for the management of counterparty risk associated with trade receivables originating from export and domestic sales contracts. This policy seeks to mitigate and minimise the risk of financial loss should customers become unable to meet their obligations to the group. It defines the requirement for sanctions and compliance reviews, the application of secure payment terms, primarily letters of credit from acceptable banks, as well as credit risk assessments and the establishment of credit limits prior to contracting. Credit limits are reviewed and approved at least annually and the group’s exposure to its counterparties is regularly monitored at the appropriate level. 34.2.3 Credit risk exposure The carrying amount of financial assets represents the group’s maximum credit risk exposure. Rand million Notes 2025 2024 Trade receivables 7 1,808 2,473 Cash and cash equivalents 8 15,117 16,913 Investment held by the environmental trust 4 1,207 989 Other receivables (excluding VAT and prepayments) 7 501 554 Trade and other receivables The group applies the simplified expected credit loss model for its trade receivable measured at amortised cost, as permitted by IFRS 9 Financial Instruments. The expected credit losses on trade and other receivables are estimated for customers on an individual basis by reference to past default experience, credit profiles and financial metrics, adjusted as appropriate for current observable data (refer to note 7). Other receivables were considered to have similar risk characteristics. No significant increase in credit risk related to other receivables was identified and therefore the expected credit losses were measured at a 12-month expected credit loss applying the general approach. The receivable subject to a net settlement arrangement, disclosed in note 7, has no significant credit risk exposure as settlement occurs on a net basis against trade payables. Accordingly, the expected credit loss has been assessed as immaterial. 82 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.2.3 Credit risk exposure continued Cash and cash equivalents The group held cash and cash equivalents of R15,117 million at 31 December 2025 (2024: R16,913 million). Cash and cash equivalents amounting to R12,944 million (2024: R14,119 million) and R1,486 million (2024: R1,758 million) were held with related parties who provide a treasury or trading service to the group (refer to note 33). Where cash is held with Anglo American plc group companies, the related treasury companies manage the external investment of cash in accordance with the Anglo American plc group treasury policy by investing in liquidity funds, bank deposits and government instruments. The funds are managed according to strict policy guidelines with pre-approved limits and counterparties, and are readily available and can be accessed and withdrawn within a period of one to two days. The group treasury companies are ultimately wholly owned subsidiaries of Anglo American plc, which has a credit rating of BBB+. 34.2.4 Collateral The group does not hold any other material collateral in respect of its financial assets subject to credit risk. 34.3 Liquidity risk Liquidity risk is the risk that the group will be unable to meet its financial obligations as they become due. The objectives of the group’s liquidity risk management processes are to maintain adequate cash and credit facilities to meet all short-term obligations and ensure that the group can meet all known and forecast strategic commitments. The group’s treasury function must maintain cash and committed facilities to meet at least 125% of all known and forecast commitments for the next 18 months using debt instruments as deemed appropriate. As a general rule, it is the group’s policy that no security be provided. However, exceptions are allowed on a case-by-case basis where it is required for a transaction to proceed. Facilities creating security or encumbrances over assets need the prior consent of the group’s Chief Financial Officer. The group’s credit facilities are detailed in note 8. The group’s revolving credit facilities contain financial covenants which state that: • the ratio of SIOC’s consolidated net debt to SIOC’s consolidated tangible net worth must not exceed 0.8:1.0 • SIOC’s consolidated tangible net worth must not be less that R20 billion at the end of each reporting period Net debt is defined in the covenant as SIOC’s consolidated borrowings less SIOC’s unrestricted cash, Kumba International Trading Limited and Kumba Singapore Pte Limited’s unrestricted cash in excess of US$20 million plus its financial indebtedness at the time. Tangible net worth is defined as total equity less any intangible assets. In line with the agreements, the financial covenants were tested at 30 June 2025 and 31 December 2025 and the group was not in breach of any of its financial covenants during the year and as at 31 December 2025. The group’s debt facilities consist of SIOC’s committed R16 billion (2024: R16 billion) revolving credit facilities, which mature in 2029, and SIOC’s uncommitted facility of R8.2 billion (2024: R8.2 billion). No amount had been drawn down from the committed facilities as at 31 December 2025 (2024: R2.0 billion). At 31 December 2025, the uncommitted facility was undrawn (2024: undrawn). In addition, during the 2025 financial year, SIOC’s wholly owned subsidiaries, Kumba Singapore Pte Limited and Kumba International Trading Limited, amended and extended their short-term working capital financing facilities which mature in June 2026. The facilities consist of a US$510 million (R8.5 billion) committed facility and a US$600 million (R10.0 billion) uncommitted facility. Both facilities were undrawn at 31 December 2025 and 31 December 2024. Guarantees obtained in favour of third parties must be approved by the group’s Executive Committee up to R500 million, and by the Board if the value exceeds R500 million. During the year, no additional group guarantees were provided in respect of the environmental rehabilitation provisions (2024: R1,395 million additional guarantees), as sufficient funding had been provided to the DMPR at 31 December 2024 . As at 31 December 2025, total guarantees obtained in favour of third parties amounted to R6.6 billion (2024: R6.6 billion) (refer to note 29.1). At 31 December 2025, the expected cash flows from trade and other receivables maturing in the short term and cash and cash equivalents were sufficient to meet the obligations associated with the group’s financial liabilities as at that date. 83 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.3 Liquidity risk continued The table below analyses the group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Maturity profile of the group’s financial liabilities Rand million Notes Within 6 months 6 to 12 months 1 to 2 years 3 or more years Total contractual cash flows 2025 Financial liabilities At amortised cost: Trade payables 11 9,108 — — — 9,108 Other payables 11 2,436 — — — 2,436 11,544 — — — 11,544 2024 Financial liabilities At amortised cost: Interest-bearing borrowings 8 2,003 — — — 2,003 Trade payables 11 6,667 — — — 6,667 Other payables 11 2,304 — — — 2,304 10,974 — — — 10,974 34.4 Market risk Market risk includes foreign exchange risk, interest rate risk and commodity price risk. All derivative activities are for risk management purposes only and not to engage in speculative transactions. Hedging is conducted in strict compliance with the group’s treasury risk policy. The group does not apply any form of hedge accounting. 34.4.1 Foreign exchange risk The group’s earnings are exposed to movements in exchange rates. Kumba’s iron ore export prices are determined in US dollars and the group negotiates iron ore prices in that currency with customers. Currency movements of the US dollar against the rand therefore could have a significant effect on the financial position and results of Kumba. Certain operating costs and capital expenditure are also denominated in foreign currencies. The Company’s functional currency for the preparation of financial accounts is the South African rand. The group is therefore exposed to foreign exchange risk in respect of non-rand cash flows for revenues, operating costs and capital expenditure. The group aligned both its export and import hedging policies with that of the Anglo American plc group. In line with the policy, hedging requires approval subject to the limit defined in the treasury policy. The hedging of foreign currency exposures on the group’s behalf via suppliers and third parties is also prohibited. It is the group’s policy to be fully exposed to operating cost and revenue currency risk, i.e. not to hedge foreign currency operating costs and revenues. The objective of managing currency risk on capital expenditure is to broadly offset foreign currency capital expenditure with the future streams of foreign currency denominated revenues, i.e. natural or economic hedging. Net US dollar export proceeds are repatriated and either sold on a weekly basis or invested in the US dollar bank account at the ruling spot price. 84 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.4 Market risk continued 34.4.1 Foreign exchange risk continued The average rand/US dollar exchange rate for 2025 of US$1: R17.89 (2024: US$1: R18.33) was used to translate the statement of profit or loss and the statement of cash flows, while the statement of financial position was translated at the closing rate on the last day of the reporting year using an exchange rate of US$1: R16.60 (2024: US$1: R18.73). The group’s financial instrument exposure to currency risk, excluding derivatives, is summarised below: Rand million Notes Rand US dollar Other Total 2025 Financial assets Fair value through profit or loss: Investments held by the environmental trust 4 1,207 — — 1,207 Long-term other receivables 5 136 — — 136 Equity investment at FVTPL 9 — — 9 Trade receivables 7 — 1,363 21 1,384 Amortised cost: Trade receivables 7 24 400 — 424 Other receivables (excluding VAT and prepayments) 7 498 3 — 501 Cash and cash equivalents 8 4,269 10,837 11 15,117 Financial liabilities Fair value through profit or loss: Trade payables 11 — (122) — (122) Other payables — (14) — (14) Amortised cost: Trade payables 11 (9,103) (4) (1) (9,108) Other payables (excluding VAT and mineral royalty payable) 11 (1,865) (255) (33) (2,153) Net exposure (4,825) 12,208 (2) 7,381 2024 Financial assets Fair value through profit or loss: Investments held by the environmental trust 4 989 — — 989 Long-term other receivables 5 58 — — 58 Equity investment at FVTPL 9 — — 9 Trade receivables 7 — 1,703 — 1,703 Other receivables — 29 — 29 Amortised cost: Trade receivables 7 33 737 — 770 Other receivables 7 2,715 12 — 2,727 Cash and cash equivalents 8 2,118 14,788 7 16,913 Financial liabilities — Fair value through profit or loss: Trade and other payables 11 — (293) — (293) Other payables — (7) — (7) Amortised cost: Interest-bearing borrowings 8 (2,003) — — (2,003) Lease liabilities 3 (193) — — (193) Trade and other payables 11 (8,797) (584) (39) (9,420) Net exposure (5,071) 16,385 (32) 11,282 85 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.4 Market risk continued 34.4.1 Foreign exchange risk continued Sensitivity analysis A movement in exchange rates of 5%, with all other variables held constant, against the US dollar would have increased/decreased profit or loss and equity by the amounts shown below, based on the net US dollar denominated financial instrument balances at 31 December 2025. The analysis has been performed on the same basis followed for 2024. This analysis considers the impact of changes in foreign exchange rates on profit or loss and equity, excluding foreign exchange translation differences resulting from the translation of group entities that have a functional currency different from the presentation currency, into the group’s presentation currency (and recognised in the FCTR). Impact on total comprehensive income and shareholders’ equity Rand million Increase Decrease 2025 US dollar 39 (35) 2024 US dollar 46 (42) 34.4.2 Interest rate risk The group’s earnings are exposed to movements in floating interest rates on investments and floating rate debt when drawn. The Company is not exposed to fair value interest rate risk as the Company does not have any fixed interest-bearing financial instruments carried at fair value. The group’s policy is to borrow at floating rates of interest and to manage interest rate risks on borrowings to minimise the after-tax cost of debt to the group. Fixed rate debt requires approval from the Board. Cash is primarily at floating rates of interest, subject to tax, legal, currency and liquidity constraints, with the primary purpose of preserving the capital value of cash and maintaining adequate liquidity levels. Sensitivity analysis Changes in market interest rates affect the interest income or expense of floating rate financial instruments. If the interest rate increased by 50 basis points, the profit would decrease by R5 million (2024: R1 million). On the other hand, if the interest rate decreased by 50 basis points, the profits would increase by R5 million at 31 December 2025 (2024: R1 million). 34.4.3 Commodity price risk The Company’s earnings are exposed to movements in the prices of iron ore that it produces and the commodities that it purchases, for example, energy and material costs. The Company’s policy is to sell its products at prevailing market prices and is generally not to hedge commodity price risk, though some hedging may be undertaken for strategic reasons. In such cases, the Company generally uses forward contracts and other derivative instruments to hedge the price risk. Certain of the group’s sales are provisionally priced, meaning that the selling price is determined normally 30 days after delivery of the iron ore sold to the customer, based on quoted market prices stipulated in the contract, and as a result the sales are susceptible to future price movements. As at 31 December 2025, R1,377 million (2024: R1,684 million) of the trade receivables balance was subject to price movements, and R431 million (2024: R260 million) of the trade payables balance was subject to price movements. 86 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.4 Market risk continued 34.4.3 Commodity price risk continued Sensitivity analysis A movement in the iron ore prices of 10%, with all other variables held constant, would have increased/decreased profit or loss and equity as shown below, based on the balance of trade receivables that are subject to provisional pricing at 31 December 2025 and 31 December 2024. Impact on total comprehensive income and shareholders’ equity Rand million Increase Decrease 2025 Iron ore price 184 (184) 2024 Iron ore price 167 (167) 34.5 Fair value estimation The carrying value of financial instruments not carried at fair value, which include trade receivables, cash and cash equivalents, trade payables, other payables, lease liabilities and interest-bearing borrowings, approximates fair value because of the short period to maturity of these instruments or as a result of market-related variable interest rates. The table below presents the group’s assets and liabilities that are measured at fair value: Rand million Level 11 Level 22 Level 33 2025 Investments held by the environmental trust4 — 1,207 — Long-term other receivables — — 136 Equity investment at FVTPL — — 9 Trade receivables5 — 1,384 — Trade payables6 — (122) — Other payables — (14) — — 2,455 145 2024 Investments held by the environmental trust4 — 989 — Long-term other receivables — — 58 Equity investment at FVTPL — — 9 Trade receivables5 — 1,703 — Trade payables6 — (293) — — 2,399 67 1 Level 1 fair value measurements are derived from unadjusted quoted prices in active markets for identical assets or liabilities. 2 Level 2 fair value measurements are derived from inputs other than quoted prices included within level 1, which are observable either directly or indirectly (i.e. derived from prices). 3 Level 3 fair value measurements are derived from valuation techniques where at least one input (which could have a significant effect on the instrument’s valuation) is not based on observable market data. Where inputs can be observed from market data without undue cost or effort, the observed input is used. Otherwise, management determines a reasonable estimate for the input. 4 Refer to note 4 for further details of the investments held by the environmental trust. 5 This includes the provisionally priced receivables carried at fair value through profit or loss. 6 This mainly consists of provisionally priced amounts that have moved to a payable position carried at fair value through profit or loss. 87 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 34. Financial risk management continued 34.5 Fair value estimation continued Fair value gains and losses recognised in operating profit are disclosed in note 17. The trade receivables are measured at fair value using market-related inputs. The measurement is therefore classified within level 2 of the fair value hierarchy. The inputs used in the model are the forward iron ore price on the inception date as well as the iron ore price on the date the fair value calculation is performed. There were no transfers between the levels for the year ended 31 December 2025 and 31 December 2024. All resulting fair value estimates are included in level 1 or level 2, except for the long-term other receivable and equity investment at fair value through profit or loss that are level 3 financial assets. The movements in the fair value of the level 3 financial assets are shown as follows: Rand million 2025 2024 Balance at the beginning of the year 67 49 Fair value gain for the year 78 18 Balance at the end of the year 145 67 The long-term other receivables at 31 December 2025 relate to exploration projects. The fair value was determined using the market approach, which applies available market information of sales transactions for similar recent projects. The significant unobservable inputs used in the valuation model related to the size and grade of the ore deposit determined by geological exploration results. There were no changes made to any of the valuation techniques applied at 31 December 2025. 34.6 Capital management The group strives to maintain strong credit ratings. In managing its capital, the group’s priority is to ensure a robust statement of financial position to provide resilience in times of volatility and enable the group to take advantage of opportunities when they arise, and return excess capital to shareholders unless there are compelling value-accretive opportunities for investment. The group maintains a healthy appetite for moderate gearing in the event of attractive merger and acquisition opportunities. The priority is not to use debt as a cushion for margin stress brought by market volatility. The group’s capital expenditure is funded from cash generated from operations. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. The group’s cash and cash equivalents and debt at the statement of financial position date were as follows: Rand million 2025 2024 Cash and cash equivalents 15,117 16,913 Interest-bearing borrowings — (2,003) Lease liabilities (203) (193) Net cash 14,914 14,717 Total equity 72,008 69,300 The group has entered into two debt facilities that dictate certain requirements in respect of capital management as listed below. The group has complied with the contractual financial covenants at 31 December 2025 and during the year, as illustrated below: Rand million 2025 2024 Net cash/(debt): equity (%) – Target <80 <80 – Actual 8 11 Consolidated tangible net worth – Target >R20 billion >R20 billion – Actual (Headroom) R51.9 billion R49.5 billion 88 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration 2025 Single figure remuneration Guaranteed pay and benefits Additional payments Long-term incentive R’000 Base salary Benefits7 Total guaranteed pay 2025 Additional payments8 Cash bonus accrued (payable in March 2026)9 Deferred bonus arrange- ment (DBA) Long-term incentive plan (LTIP)10 Total long- term incentive Total emolu- ments 2025 Executive directors ND Zikalala1 9,403 1,280 10,683 980 9,960 9,960 3,083 13,043 34,666 BA Mazarura1,2 7,072 341 7,413 5,512 3,992 3,992 1,778 5,770 22,687 Sub-total 16,475 1,621 18,096 6,492 13,952 13,952 4,861 18,813 57,353 Prescribed officers XF Mbambo3 713 97 810 — — — — — 810 SB Mbatha 3,108 466 3,574 74 1,589 1,589 — 1,589 6,826 PG Nortje4 4,732 501 5,233 539 2,457 2,457 987 3,444 11,673 P Ramchander1,5 3,510 518 4,028 217 1,884 1,884 614 2,498 8,627 S Ramgoolam1 3,429 335 3,764 — 1,780 1,780 554 2,334 7,878 AD Roux5,6 4,356 316 4,672 439 — — — — 5,111 NM Sibanyoni1,5 3,328 494 3,822 249 1,701 1,701 582 2,283 8,055 Sub-total 23,176 2,727 25,903 1,518 9,411 9,411 2,737 12,148 48,980 Total 39,651 4,348 43,999 8,010 23,363 23,363 7,598 30,961 106,333 1 36.0% of the LTIP shares awarded in 2023, with a performance period ending 31 December 2025, have vested based on performance condition testing. 2 Bothwell Mazarura stepped down as Chief Financial Officer and Executive director on 31 December 2025. Payments related to his termination, are included under additional payments. His LTIP payment related to the 2025 performance year will be made in cash as per the amended Bonus and Retention Plan (BRP) policy. 3 Xolani Mbambo was appointed as Chief Financial Officer Designate effective 1 December 2025 to 31 December 2025. 4 The additional payment includes the dividend equivalent relating to the 2022 Anglo American plc (JSE) LTIP share awards, which were awarded prior to his appointment on 1 July 2023 and vested on 1 March 2025. The LTIP incentive comprises 21.2% of the Anglo American plc (JSE) LTIP shares awarded in 2023, with a performance period ending 31 December 2025, that vested based on the performance condition testing. 5 The additional payment includes the dividend equivalent relating to the 2022 LTIP share awards that vested on 1 March 2025. 6 André Roux resigned effective 30 November 2025 and is not eligible to receive a short-term incentive payment for the 2025 performance year. 7 Benefits include the employer’s contribution to the unemployment insurance fund, retirement fund and medical aid fund. 8 Additional payments include dividend equivalent payments, leave encashment, safety achievement recognition payments as well as termination payments, where applicable. 9 The short-term incentive is based on the performance outcomes which are measured against the 2025 performance scorecard and will be paid in March 2026. 10 The long-term incentive includes the face value of the DBA shares awarded in March 2026 in terms of the BRP as derived from the 2025 short- term incentive value. 89 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued 2024 Single figure remuneration Guaranteed pay and benefits Additional payments Long-term incentive R’000 Base salary Benefits10 Total guaranteed pay 2024 Additional payments11 Cash bonus accrued (paid in March 2025)12 Deferred bonus arrange- ment (DBA)13 Long-term incentive plan (LTIP) Total long- term incentive Total emolu- ments 2024 Executive directors ND Zikalala1 8,955 1,218 10,173 623 8,408 8,408 2,503 10,911 30,115 BA Mazarura2 6,735 324 7,059 — 3,352 3,352 1,155 4,507 14,918 Sub-total 15,690 1,542 17,232 623 11,760 11,760 3,658 15,418 45,033 Prescribed officers15 V Kumar2,5 395 36 431 — 173 173 674 847 1,451 SA Martin2,4,14 1,193 107 1,300 4,782 507 507 366 873 7,462 SB Mbatha3 2,302 348 2,650 68 1,229 1,229 — 1,229 5,176 GM Mc Gavigan2,4,6 1,649 162 1,811 4,929 706 706 453 1,159 8,605 PG Nortje7 4,335 460 4,795 3,325 1,984 1,984 388 2,372 12,476 P Ramchander2,4 3,343 492 3,835 378 1,582 1,582 498 2,080 7,875 S Ramgoolam9 3,266 304 3,570 2,285 1,851 1,851 — 1,851 9,557 AD Roux8 2,263 164 2,427 3,002 1,963 1,963 516 2,479 9,871 NM Sibanyoni 3,169 470 3,639 — 1,428 1,428 464 1,892 6,959 Sub-total 21,915 2,543 24,458 18,769 11,423 11,423 3,359 14,782 69,432 Total 37,605 4,085 41,690 19,392 23,183 23,183 7,017 30,200 114,465 1 The additional payment relates to a dividend equivalent payment pertaining to Anglo American plc shares (JSE) that vested on 1 March 2024. 2 40.6% of the LTIP shares awarded in 2022, with a performance period ending 31 December 2024, have vested based on performance condition testing. 3 Acted in the Chief Technical Officer role from 1 March 2024 to 30 June 2024, before her appointment in the role with effect from 1 July 2024. The additional payment includes her acting allowance for this four-month period. The remuneration reported is only from the period when she acted in this role. 4 The additional payment includes the dividend equivalent relating to the 2021 LTIP share awards that vested on 1 March 2024. 5 Transferred to Anglo Corporate Services South Africa on 1 February 2024. The pro rata DBA will be awarded in Anglo American JSE shares and is included in the long-term incentive figure. 6 He left the group on 31 July 2024. As part of the separation agreement, he did not receive remuneration for the two-month sabbatical period preceding his exit. Additional payments include payments related to his voluntary separation. His pro rata long-term incentive payment relating to the 2024 performance year will be made in cash as per the amended Bonus and Retention Plan policy. 7 The long-term incentive figure includes 16.2% of the Anglo American LTIP shares awarded in 2022 when he was employed by De Beers Consolidated Mines, a subsidiary of the ultimate holding company. These awards vested based on performance condition testing. Additional payments include a retention award, with a three-year lock-in clause. 8 Appointed as the Senior General Manager Northern Cape on 1 July 2024. Additional payment includes a retention award, with a three-year lock-in clause. The remuneration reported is only from the date of his appointment in the Senior General Manager Northern Cape role. 9 Additional payments include a retention award, with a three-year lock-in clause. 10 Benefits include the employer’s contribution to the UIF, retirement fund and medical aid fund. 11 Inclusive of retention awards, dividend equivalent payments, leave encashment, safety achievement recognition payments as well as termination payments, where applicable. 12 The short-term incentive is based on the performance outcomes which are measured against the 2024 performance scorecard and will be paid in March 2025. For individuals who transferred or terminated on "good leaver status", the incentive payment is pro rata accordingly. 13 The long-term incentive includes the face value of the DBA shares awarded in March 2025, which were awarded in terms of the Bonus and Retention Share Plan and derived from the 2024 short-term incentive value. 14 Left the group on 30 April 2024. Payments related to his voluntary separation are included under additional payment. 15 F Patel has been excluded as she is no longer a Prescribed officer. 90 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued 2025 Single figure remuneration Fees R’000 Directors’ fees Committee fees Total emoluments Non-executive directors MS Bomela 1,511 — 1,511 RM Fernandes1,2 243 273 516 MA Goliath2,3 243 198 441 TP Goodlace4 2,304 — 2,304 A Jeawon 451 786 1,237 MA Jenkins 451 672 1,123 NB Langa-Royds 451 849 1,300 TM Mkhwanazi1,5 208 204 412 NV Mokhesi 451 902 1,353 SS Ntsaluba 451 892 1,343 MJ Tsele3,6 151 222 373 MTS Walker1 451 408 859 Total 7,366 5,406 12,772 1 The f ees were paid to Anglo American plc. 2 Appointed as a Non-executive director with effect from 1 July 2025. 3 The fees were paid to the IDC. 4 The Chairperson of the Board chairs the Nominations and Governance Committee. He does not receive additional remuneration in respect of the committees he serves on. 5 S t e p p e d d o w n a s a N o n - e x e c u t i v e d i r e c t o r w i t h e f f e c t f r o m 3 0 J u n e 2 0 2 5 . 6 S t e p p e d d o w n a s a N o n - e x e c u t i v e d i r e c t o r w i t h e f f e c t f r o m 1 5 M a y 2 0 2 5 . 2024 Single figure remuneration Fees R’000 Directors’ fees Committee fees Total emoluments Non-executive directors MS Bomela 1,474 — 1,474 TP Goodlace1 2,071 — 2,071 A Jeawon 395 607 1,002 MA Jenkins 395 618 1,013 NB Langa-Royds 395 797 1,192 TM Mkhwanazi3 395 398 793 NV Mokhesi2 202 311 513 SS Ntsaluba 395 827 1,222 MJ Tsele4 395 581 976 MTS Walker3,5 299 302 601 Total 6,416 4,441 10,857 1 The Chairperson of the Board chairs the Nominations and Governance Committee. He does not receive additional remuneration in respect of the committees he serves on. 2 Appointed as Independent Non-executive director with effect from 1 July 2024. 3 Fees were paid to Anglo American plc. 4 Fees were paid to the IDC. 5 Appointed as Non-executive director with effect from 1 April 2024. 91 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and Prescribed officers – unvested awards and cash flow The interests of the Executive directors and of Prescribed officers in shares of the Company granted in terms of the various long-term incentive schemes as at 31 December 2025 are shown in the following tables below: Executive directors1 ND Zikalala Kumba share awards DBA 1 March 2022 2,165 — — 2,165 — 798 — DBA 1 March 2023 1 March 2026 9,297 — — 3,099 6,198 1,368 2,174 DBA 1 March 2024 1 March 2026 10,956 — — — 10,956 400 3,842 DBA 1 March 2025 1 March 2027 — 22,627 — — 22,627 826 7,935 LTIP2,3 1 March 2022 19,011 — 11,298 7,713 — 2,842 — LTIP2 1 March 2023 1 March 2026 24,422 — — — 24,422 — 4,124 LTIP2 1 March 2024 1 March 2027 29,373 — — — 29,373 — 7,224 LTIP2 1 March 2025 1 March 2028 — 44,283 — — 44,283 — 9,306 Anglo American plc share awards (JSE)3 LTIP4 1 August 2025 1 March 2028 — 36,026 — — 36,026 — 13,239 Sub-total 95,224 102,936 11,298 12,977 173,885 6,234 47,844 BA Mazarura Kumba share awards DBA 1 March 2022 2,620 — — 2,620 — 965 — DBA 1 March 2023 1 March 2026 3,049 — — 1,016 2,033 448 713 DBA 1 March 2024 1 March 2026 4,893 — — — 4,893 178 1,716 DBA 1 March 2025 1 March 2027 — 9,020 — — 9,020 329 3,163 LTIP2,3 1 March 2022 8,771 — 5,212 3,559 — 1,311 — LTIP2 1 March 2023 1 March 2026 14,085 — — — 14,085 — 2,378 LTIP2 1 March 2024 1 March 2027 14,521 — — — 14,521 — 3,571 LTIP2 1 March 2025 1 March 2028 — 21,891 — — 21,891 — 4,600 Sub-total 47,939 30,911 5,212 7,195 66,443 3,231 16,141 Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2025 Granted during 2025 Forfeited during 20258 Vested during 2025 Closing balance on 31 December 2025 Value of receipts9 Estimated fair value on 31 December 202510 Prescribed officers XF Mbambo5 Kumba share awards DBA 1 December 20251 March 2026 — 184,280 — — 184,280 — 64,625 Sub-total — 184,280 — — 184,280 — 64,625 SB Mbatha Kumba share awards DBA 1 March 2022 1,084 — — 1,084 — 399 — DBA 1 March 2023 1 March 2026 1,939 — — 646 1,293 285 453 DBA 1 March 2024 1 March 2026 1,824 — — — 1,824 66 640 DBA 1 March 2025 1 March 2027 — 3,306 — — 3,306 121 1,159 LTIP 1 March 2025 1 March 2028 — 6,691 — — 6,691 — 1,407 Sub-total 4,847 9,997 — 1,730 13,114 871 3,659 Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2025 Granted during 2025 Forfeited during 20258 Vested during 2025 Closing balance on 31 December 2025 Value of receipts9 Estimated fair value on 31 December 202510 92 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2025 Granted during 2025 Forfeited during 20258 Vested during 2025 Closing balance on 31 December 2025 Value of receipts9 Estimated fair value on 31 December 202510 PG Nortje Kumba share awards DBA 1 March 2024 1 March 2026 2,328 — — — 2,328 85 816 DBA 1 March 2025 1 March 2027 — 5,340 — — 5,340 195 1,873 LTIP 1 March 2024 1 March 2027 7,424 — — — 7,424 — 1,826 LTIP 1 March 2025 1 March 2028 — 12,317 — — 12,317 — 2,589 Anglo American plc share awards (JSE)6 DBA 10 March 2022 1,115 — — 1,115 — 626 — DBA 10 March 2023 10 March 2026 1,876 — 148 637 1,091 364 747 LTIP 11 March 2022 4,360 — 3,454 906 — 509 — LTIP 10 March 2023 10 March 2026 6,800 — — — 6,800 — 1,033 Sub-total 23,903 17,657 3,602 2,658 35,300 1,779 8,884 P Ramchander Kumba share awards DBA 1 March 2022 1,593 — — 1,593 — 587 — DBA 1 March 2023 1 March 2026 1,645 — — 548 1,097 242 385 DBA 1 March 2024 1 March 2026 2,199 — — — 2,199 81 771 DBA 1 March 2025 1 March 2027 — 4,257 — — 4,257 156 1,493 LTIP 1 March 2022 3,785 — 2,249 1,536 — 566 — LTIP 1 March 2023 1 March 2026 4,863 — — — 4,863 — 821 LTIP 1 March 2024 1 March 2027 5,013 — — — 5,013 — 1,233 LTIP 1 March 2025 1 March 2028 — 7,558 — — 7,558 — 1,589 Sub-total 19,098 11,815 2,249 3,677 24,987 1,632 6,292 S Ramgoolam Kumba share awards DBA 1 March 2022 975 — — 975 — 359 — DBA 1 March 2023 1 March 2026 1,285 — — 428 857 189 301 DBA 1 March 2024 1 March 2026 1,985 — — — 1,985 73 696 DBA 1 March 2025 1 March 2027 — 4,980 — — 4,980 182 1,746 LTIP 1 March 2023 1 March 2026 4,388 — — — 4,388 — 741 LTIP 1 March 2024 1 March 2027 4,737 — — — 4,737 — 1,165 LTIP 1 March 2025 1 March 2028 — 7,141 — — 7,141 — 1,500 Sub-total 13,370 12,121 — 1,403 24,088 803 6,149 93 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2025 Granted during 2025 Forfeited during 20258 Vested during 2025 Closing balance on 31 December 2025 Value of receipts9 Estimated fair value on 31 December 202510 AD Roux7 Kumba share awards DBA 1 March 2022 1,521 — — 1,521 — 560 — DBA 1 March 2023 2,722 — 1,815 907 — 400 — DBA 1 March 2024 2,560 — 2,560 — — 93 — DBA 1 March 2025 — 5,281 5,281 — — 193 — LTIP 1 March 2022 3,920 — 2,329 1,591 — 586 — LTIP 1 March 2023 5,035 — 5,035 — — — — LTIP 1 March 2024 5,534 — 5,534 — — — — LTIP 1 March 2025 — 9,594 9,594 — — — — Sub-total 21,292 14,875 32,148 4,019 — 1,832 — NM Sibanyoni Kumba share awards DBA 1 March 2022 883 — — 883 — 325 — DBA 1 March 2023 1 March 2026 1,530 — — 510 1,020 225 358 DBA 1 March 2024 1 March 2026 2,085 — — — 2,085 76 731 DBA 1 March 2025 1 March 2027 — 3,844 — — 3,844 140 1,348 LTIP 1 March 2022 3,522 — 1,429 2,093 — 771 — LTIP 1 March 2023 1 March 2026 4,610 — — — 4,610 — 778 LTIP 1 March 2024 1 March 2027 4,752 — — — 4,752 — 1,169 LTIP 1 March 2025 1 March 2028 — 7,165 — — 7,165 — 1,506 Sub-total 17,382 11,009 1,429 3,486 23,476 1,537 5,890 Total 243,055 395,601 55,938 37,145 545,573 17,919 159,484 1 Forfeitable Kumba share awards are granted in terms of the BRP (DBA) and PSP (LTIP) share schemes. 2 Post the vesting of the awards, an additional two-year holding period, subject to clawback conditions, will apply. Awards made until December 2022 do not qualify for any dividend equivalents during the performance period. 3 Shares vested as a result of performance conditions being met. The shares are subject to an additional two-year holding period during which clawback conditions apply. 4 Anglo American plc (JSE) conditional shares awarded in recognition of her significant ongoing contribution and commitment to Anglo American plc. The award is subject to vesting performance condition testing after three years. 5 Forfeitable shares of the equivalent face value were awarded to offset the share portfolio forfeited at his previous employer, aligned with a f i v e - y e a r v e s t i n g s c h e d u l e . 6 Anglo American plc (JSE) shares awarded when he was employed by De Beers Consolidated Mines, an ultimate subsidiary of Anglo American plc. 7 Resigned effective from 30 November 2025 and forfeited all unvested shares. 8 Shares were forfeited due to performance conditions that were not fully met. 9 Includes dividend payments received during the year as well as the face value of all share vestings during 2025. 10 This is the total of the estimated fair value of unvested DBA shares, the 2023 LTIP award (actual vesting of 36% and 21.2% of the Anglo American plc (JSE) shares), 2024 and 2025 LTIP awards with an estimated vesting of 60% as well as concomitant accumulated dividend equivalent payments. The value is based on a three-day volume weighted average price (VWAP) on 31 December 2025 of R350.69 for Kumba Iron Ore Limited, R684.56 for Anglo American plc (JSE). 94 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued The interests of the Executive directors and of Prescribed officers in shares of the Company granted in terms of the various long-term incentive schemes as at 31 December 2024 are shown in the following tables below: ND Zikalala Kumba share awards DBA 1 March 2022 1 March 2025 3,247 — — 1,082 2,165 700 703 DBA 1 March 2023 1 March 2025 9,297 — — — 9,297 399 3,017 DBA 1 March 2024 1 March 2026 — 10,956 — — 10,956 471 3,556 LTIP2 1 March 2022 1 March 2025 19,011 — — — 19,011 — 2,503 LTIP2 1 March 2023 1 March 2026 24,422 — — — 24,422 — 5,681 LTIP2 1 March 2024 1 March 2027 — 29,373 — — 29,373 — 5,877 Anglo American plc share awards (JSE)3 DBA 12 March 2021 1,284 — — 1,284 — 545 — DBA 20 May 2021 262 — — 262 — 111 — LTIP 12 March 2021 14,500 — 9,527 4,973 — 2,073 — LTIP 16 June 2021 61 — 41 20 — 8 — Sub-total 72,084 40,329 9,568 7,621 95,224 4,307 21,337 TM Mkhwanazi11 Kumba share awards DBA 1 March 2019 8,179 — — 8,179 — 4,601 — DBA 1 March 2020 1 March 2025 7,443 — — — 7,443 320 2,415 DBA 1 March 2021 7,162 — — 7,162 — 4,029 — DBA 1 March 2022 1 March 2025 13,841 — — 4,613 9,228 2,992 2,995 LTIP 1 March 2021 20,510 — 12,057 8,453 — 4,551 — Anglo American plc share awards (JSE) DBA4 1 March 2020 1 March 2025 18,383 — — 9,191 9,192 4,075 5,056 Sub-total 75,518 — 12,057 37,598 25,863 20,568 10,466 BA Mazarura11 Kumba share awards DBA 1 March 2021 1,938 — — 1,938 — 1,088 — DBA 1 March 2022 1 March 2025 3,930 — — 1,310 2,620 848 850 DBA 1 March 2023 1 March 2025 3,049 — — — 3,049 131 989 DBA 1 March 2024 1 March 2026 — 4,893 — — 4,893 210 1,588 LTIP 1 March 2021 8,015 — 4,712 3,303 — 1,774 — LTIP2 1 March 2022 1 March 2025 8,771 — — — 8,771 — 1,155 LTIP2 1 March 2023 1 March 2026 14,085 — — — 14,085 — 3,276 LTIP2 1 March 2024 1 March 2027 — 14,521 — — 14,521 — 2,905 Sub-total 39,788 19,414 4,712 6,551 47,939 4,051 10,763 Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2024 Granted during 2024 Forfeited during 202410 Vested during 2024 Closing balance on 31 December 2024 Value of receipts8 Estimated fair value on 31 December 20249 Executive directors1 95 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued V Kumar Kumba share awards DBA 1 March 2021 1,256 — — 1,256 — 707 — DBA 1 March 2022 1 March 2025 2,869 — — 956 1,913 620 621 DBA 1 March 2023 1 March 2025 2,226 — — — 2,226 96 722 LTIP 1 March 2021 4,681 — 2,751 1,930 — 1,039 — LTIP 1 March 2022 1 March 2025 5,122 — — — 5,122 — 968 LTIP 1 March 2023 1 March 2026 6,580 — — — 6,580 — 1,530 Sub-total 22,734 — 2,751 4,142 15,841 2,462 3,841 SA Martin6 Kumba share awards DBA 1 March 2021 1,117 — — 1,117 — 628 — DBA 1 March 2022 2,156 — — 2,156 — 1,109 — DBA 1 March 2023 1,673 — — 1,673 — 820 — DBA 1 March 2024 — 2,237 — 2,237 — 1,096 — LTIP 1 March 2021 3,518 — 2,068 1,450 — 781 — LTIP 1 March 2022 1 March 2025 3,850 — 1,071 — 2,779 — 525 LTIP 1 March 2023 1 March 2026 4,945 — 3,022 — 1,923 — 447 LTIP 1 March 2024 1 March 2027 — 5,098 4,818 — 280 — 56 Sub-total 17,259 7,335 10,979 8,633 4,982 4,434 1,028 SB Mbatha12 Kumba share awards DBA 1 March 2021 250 — — 250 — 141 — DBA 1 March 2022 1 March 2025 1,626 — — 542 1,084 351 352 DBA 1 March 2023 1 March 2025 1,939 — — — 1,939 83 629 DBA 1 March 2024 1 March 2026 — 1,824 — — 1,824 78 592 Sub-total 3,815 1,824 — 792 4,847 653 1,573 GM Mc Gavigan7 Kumba share awards DBA 1 March 2021 1,240 — — 1,240 — 698 — DBA 1 March 2022 2,393 — — 2,393 — 1,119 — DBA 1 March 2023 1,856 — — 1,856 — 779 — DBA 1 March 2024 — 2,483 — 2,483 — 1,043 — LTIP 1 March 2021 3,904 — 2,295 1,609 — 866 — LTIP 1 March 2022 1 March 2025 4,272 — 830 — 3,442 — 650 LTIP 1 March 2023 1 March 2026 5,489 — 2,894 — 2,595 — 604 LTIP 1 March 2024 1 March 2027 — 5,658 4,872 — 786 — 157 Sub-total 19,154 8,141 10,891 9,581 6,823 4,505 1,411 Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2024 Granted during 2024 Forfeited during 202410 Vested during 2024 Closing balance on 31 December 2024 Value of receipts 8 Estimated fair value on 31 December 20249 Prescribed officers 96 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2024 Granted during 2024 Forfeited during 202410 Vested during 2024 Closing balance on 31 December 2024 Value of receipts8 Estimated fair value on 31 December 20249 PG Nortje Kumba share awards DBA 1 March 2024 1 March 2026 — 2,328 — — 2,328 100,034 756 LTIP 1 March 2024 1 March 2027 — 7,424 — — 7,424 — 1,486 Anglo American plc share awards (JSE)5 DBA 12 March 2021 882 — — 882 — 375 — DBA 20 May 2021 360 — — 360 — 153 — DBA 10 March 2022 1 March 2025 1,689 — — 574 1,115 261 613 DBA 10 March 2023 1 March 2025 1,876 — — — 1,876 29 1,032 LTIP 12 March 2021 6,400 — 4,205 2,195 — 915 — LTIP 4 June 2021 27 — 18 9 — 4 — LTIP 11 March 2022 1 March 2025 4,360 — — — 4,360 — 388 LTIP 10 March 2023 1 March 2026 6,800 — — — 6,800 — 2,115 Sub-total 22,394 9,752 4,223 4,020 23,903 1,837 6,390 P Ramchander Kumba share awards DBA 1 March 2021 946 — — 946 — 532 — DBA 1 March 2022 1 March 2025 2,390 — — 797 1,593 517 517 DBA 1 March 2023 1 March 2025 1,645 — — — 1,645 71 534 DBA 1 March 2024 1 March 2026 — 2,199 — — 2,199 94 714 LTIP 1 March 2021 3,459 — 2,033 1,426 — 768 — LTIP 1 March 2022 1 March 2025 3,785 — — — 3,785 — 715 LTIP 1 March 2023 1 March 2026 4,863 — — — 4,863 — 1,131 LTIP 1 March 2024 1 March 2027 — 5,013 — — 5,013 — 1,003 Sub-total 17,088 7,212 2,033 3,169 19,098 1,982 4,614 S Ramgoolam Kumba share awards DBA 1 March 2021 755 — — 755 — 425 — DBA 1 March 2022 1 March 2025 1,462 — — 487 975 316 316 DBA 1 March 2023 1 March 2025 1,285 — — — 1,285 55 417 DBA 1 March 2024 1 March 2026 — 1,985 — — 1,985 85 644 LTIP 1 March 2023 1 March 2026 4,388 — — — 4,388 — 1,021 LTIP 1 March 2024 1 March 2027 — 4,737 — — 4,737 — 948 Sub-total 7,890 6,722 — 1,242 13,370 881 3,346 97 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued Number of shares R’000 Scheme Award date Next date of vesting Opening balance on 1 January 2024 Granted during 2024 Forfeited during 202410 Vested during 2024 Closing balance on 31 December 2024 Value of receipts8 Estimated fair value on 31 December 20249 AD Roux13 Kumba share awards DBA 1 March 2021 938 — — 938 — 528 — DBA 1 March 2022 1 March 2025 2,282 — — 761 1,521 493 494 DBA 1 March 2023 1 March 2025 2,722 — — — 2,722 117 883 DBA 1 March 2024 1 March 2026 — 2,560 — — 2,560 110 831 LTIP 1 March 2021 3,582 — 2,105 1,477 — 795 — LTIP 1 March 2022 1 March 2025 3,920 — — — 3,920 — 741 LTIP 1 March 2023 1 March 2026 5,035 — — — 5,035 — 1,171 LTIP 1 March 2024 1 March 2027 — 5,534 — — 5,534 — 1,107 Sub-total 18,479 8,094 2,105 3,176 21,292 2,043 5,227 NM Sibanyoni Kumba share awards DBA 1 March 2022 1 March 2025 1,324 — — 441 883 286 287 DBA 1 March 2023 1 March 2025 1,530 — — — 1,530 66 497 DBA 1 March 2024 1 March 2026 — 2,085 — — 2,085 90 677 LTIP 1 March 2022 1 March 2025 3,522 — — — 3,522 — 665 LTIP 1 March 2023 1 March 2026 4,610 — — — 4,610 — 1,072 LTIP 1 March 2024 1 March 2027 — 4,752 — — 4,752 — 951 Sub-total 10,986 6,837 — 441 17,382 442 4,149 Total 327,189 110,002 59,319 86,966 295,778 48,162 73,987 1 Kumba share awards are granted in terms of the Bonus and Retention Share Plan (DBA) and Performance Share Plan (LTIP). 2 Post the vesting of the awards, an additional two-year holding period, subject to clawback conditions, will apply. Awards made until December 2022 do not qualify for any dividend equivalents during the performance period. 3 Anglo American plc (JSE) shares previously awarded when she was employed by De Beers Managed Operations, a subsidiary of the ultimate holding company. 4 Anglo American plc (JSE) forfeitable shares were awarded related to his position as a member of the Anglo American Group Management Committee, prior to his appointment on 1 January 2022 as the Chief Executive of Bulk Commodities, a division of Anglo American plc group. 5 Anglo American plc (JSE) shares previously awarded when he was employed by De Beers Consolidated Mines. 6 Accelerated vesting of DBA share awards due to his voluntary separation on 30 April 2024. Pro rata forfeiture of LTIP awards as a result of his voluntary separation during the performance period. LTIP awards remain subject to the performance conditions and normal vesting period. 7 Accelerated vesting of DBA share awards due to his voluntary separation on 31 July 2024. Pro rata forfeiture of LTIP awards as a result of his voluntary separation during the performance period. LTIP awards remain subject to the performance conditions and normal vesting period. 8 Includes dividend payments received during the year as well as the face value of all share vestings during 2024. 9 Sum total of the estimated fair value of unvested DBA shares, 2022 LTIP award (actual vesting of 40.57% and 16.15% for Anglo American plc shares), 2023 and 2024 LTIP awards (estimated vesting of 60%) as well as concomitant accumulated dividend equivalent payments. The value is based on a three-day VWAP on 31 December 2024 of R324.53 for Kumba Iron Ore Limited, R550.04 for Anglo American plc (JSE) shares. 10 Shares forfeited due to performance conditions not met in full. 11 Shares vested as a result of performance conditions being met. The shares are subject to an additional two-year holding period during which clawback conditions apply. 12 Kumba DBA shares awarded related to the previous position she held prior to her appointment as the Chief Transformation Officer. 13 Kumba DBA and LTIP shares awarded related to the previous position he held prior to his appointment as the Senior General Manager for the Northern Cape hub. 98 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Notes to the annual financial statements continued for the year ended 31 December 35. Directors’ and Prescribed officers’ remuneration continued Interests of Executive directors and the Prescribed officers – unvested awards and cash flow continued Directors’ beneficial interest in Kumba The aggregate beneficial interest of the directors of the Company, and their immediate families (none of whom has a holding greater than 1% in the issued shares of the Company), as at 31 December 2025, are detailed below. There have been no changes to the shareholding since 31 December 2025 to the date of approval of these annual financial statements. 2025 2024 Capacity and name Direct shareholding Long-term incentive scheme shares Total beneficial interest Direct shareholding Long-term incentive scheme shares Total beneficial interest Executive directors ND Zikalala1 568 47,494 48,062 568 22,418 22,986 BA Mazarura2,3 — 22,808 22,808 — 18,394 18,394 Sub-total 568 70,302 70,870 568 40,812 41,380 Non-executive directors TM Mkhwanazi2,4 95,788 8,453 104,241 95,788 37,292 133,080 SS Ntsaluba 1,385 — 1,385 — — — Sub-total 97,173 8,453 105,626 95,788 37,292 133,080 Total 97,741 78,755 176,496 96,356 78,104 174,460 1 L ong-term incentive scheme reflects the DBA awards granted under the rules of the BRP as disclosed in the tables above. 2 Long-term incentive scheme relates to DBA awards granted under the rules of the BRP as disclosed in the tables above and includes vested LTIP shares subject to a holding period as per the rules of the PSP. 3 Stepped down as Chief Financial Officer and an Executive director, effective from 31 December 2025. 4 Stepped down as Non-executive director on 30 June 2025. 99 Kumba Iron Ore Limited Annual Financial Statements 2025 Group Notes to the consolidated annual financial statements
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Kumba Iron Ore Company Statement of financial position as at 31 December Rand million Notes 2025 2024 ASSETS Investments (shares at cost) 1 3 3 Loans to subsidiaries 1 491 215 Deferred tax assets 1 1 Non-current assets 495 219 Cash and cash equivalents 2 449 398 Current tax asset 9 1 — Current assets 450 398 Total assets 945 617 EQUITY AND LIABILITIES Share capital and premium 3 367 367 Reserves 27 49 Retained earnings/(accumulated loss) 274 (82) Total equity 668 334 LIABILITIES Non-current liabilities — — Other payables 4 277 271 Current tax liabilities 9 — 12 Current liabilities 277 283 Total liabilities 277 283 Total equity and liabilities 945 617 100 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Separate statement of financial position
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Statement of profit or loss and other comprehensive income for the year ended 31 December Rand million Notes 2025 2024 Revenue 5 12,088 13,840 Net operating expenses 6 (56) (61) Operating profit 12,032 13,779 Finance income 90 99 Profit before taxation 12,122 13,878 Taxation 7 (11) (50) Profit for the year 12,111 13,828 Total comprehensive income for the year 12,111 13,828 The Company did not have any other comprehensive income during the year other than the profit for the year, therefore no separate statement of other comprehensive income is presented for the years ended 31 December 2025 and 31 December 2024. 101 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Separate statement of profit or loss and other comprehensive income
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Statement of changes in equity for the year ended 31 December Rand million Share capital (note 3) Share premium (note 3) Equity- settled share-based payment reserve Retained earnings/ (accumulated loss) Total Balance at 31 December 2023 3 364 100 (70) 397 Equity-settled share-based payments — — (14) — (14) Vesting of shares under employee share incentive schemes — — (37) — (37) Total comprehensive income for the year — — — 13,828 13,828 Dividends paid — — — (13,840) (13,840) Balance at 31 December 2024 3 364 49 (82) 334 Equity-settled share-based payments — — 2 — 2 Vesting of shares under employee share incentive schemes — — (24) 1 (23) Total comprehensive income for the year — — — 12,111 12,111 Dividends paid — — — (11,756) (11,756) Balance at 31 December 2025 3 364 27 274 668 Refer to Annexure 3: Equity-settled share-based payment reserve for a description, detailed movements and the valuation assumptions of the share scheme for the year under review. 102 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Separate statement of changes in equity
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Statement of cash flows for the year ended 31 December Rand million Notes 2025 2024 Cash flows utilised in operating activities Cash generated from operations1 8 12,040 13,739 Finance income received 90 99 Dividends paid (11,756) (13,840) Taxation paid 9 (24) (24) 350 (26) Cash flows from investing activities Loan granted to subsidiary 1 (401) (8) Loans repaid by subsidiary 1 125 49 (276) 41 Cash flows utilised in financing activities Vesting of shares under employee share incentive schemes (23) (37) (23) (37) Net increase/(decrease) in cash and cash equivalents 51 (22) Cash and cash equivalents at the beginning of the year 398 420 Cash and cash equivalents at the end of the year 2 449 398 1 This amount includes R 12,088 million (2024: R13,840 million) in respect of dividends received from SIOC. 103 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Separate statement of cash flows
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Notes to the annual financial statements for the year ended 31 December 1. Interests in subsidiaries Rand million 2025 2024 Investments (shares at cost) 3 3 Loans to subsidiaries 491 215 Loan to SIOC 407 153 Loan to KIO Investment Holdings Proprietary Limited 84 62 Total interests in subsidiaries 494 218 Loans to subsidiaries Rand million 2025 2024 Loans to subsidiaries 491 215 491 215 Reconciliation Balance at the beginning of the year 215 256 Loans granted to subsidiaries 401 8 Loans repaid by subsidiary (125) (49) Balance at the end of the year 491 215 Investments in subsidiaries are accounted for at cost. The loan to SIOC bears interest at the prevailing average deposit rate of the four major South African banks, reduced by 10 basis points, which is market-related. SIOC has sufficient cash flows to cover the debt highlighted by the dividends declared in the current year. The loan is payable on demand, however it is not expected to be repaid in the next 12 months. The loan to KIO Investment Holdings Proprietary Limited is interest free with no repayment terms and will be repaid after 12 months. There is no intention or expectation to call on the loans in the next 12 months from the reporting date. An expected credit loss in this regard is considered to be insignificant and forward looking information does not indicate that this will change. For further details on investments in significant subsidiaries, refer to Annexure 1. 2. Cash and cash equivalents Rand million 2025 2024 Cash and cash equivalents 449 398 Currency analysis of cash and cash equivalents Rand 449 398 The Company held deposits amounting to R418 million (31 December 2024: R395 million), which are subject to statutory restrictions and are therefore not available for general use by the Company. Credit risk Cash and cash equivalents are held with financial institutions with long-term investment grade credit ratings of BBB+ (2024: BBB), based on external credit rating agencies and with the capacity for payment of financial commitments considered strong. Fair value of cash and cash equivalents The carrying amount of cash and cash equivalents approximates their fair value because of the short period to maturity of these instruments. 104 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Notes to the separate financial statements
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Notes to the annual financial statements continued for the year ended 31 December 3. Share capital and share premium Number of shares 2025 2024 Authorised 500,000,000 ordinary shares of R0.01 each 500,000,000 500,000,000 Issued Ordinary shares of R0.01 each 322,085,974 322,085,974 Reconciliation of issued shares Number of shares at the beginning of the year 322,085,974 322,085,974 Number of shares at the end of the year 322,085,974 322,085,974 For further details, refer to note 21 to the consolidated financial statements. Rand million 2025 2024 Reconciliation of share capital and premium Share capital 3 3 Share premium 364 364 367 367 4. Other payables Rand million 2025 2024 Unclaimed dividends1 269 267 Other payables 8 4 Balance at the end of the year 277 271 1 Balance relates to dividends unclaimed by shareholders. 5. Revenue Rand million 2025 2024 Dividends received from subsidiary (refer to note 10) 12,088 13,840 6. Net operating expenses Rand million 2025 2024 Cost by nature Salaries and wages 43 36 Equity-settled share-based payments 2 (14) Pension, medical and termination costs 2 1 General charges 44 67 Cost recoveries1 (35) (29) 56 61 The above expenses are stated after including: Directors’ remuneration2 52 41 Executive directors 39 30 Emoluments received as directors of the Company 25 18 Bonuses and cash incentives 14 12 Non-executive directors – emoluments as directors of the Company 13 11 1 This relates to management fees recovered from SIOC. 2 Refer to note 35 to the consolidated financial statements for details of remuneration paid to directors. 105 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Notes to the separate financial statements
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Notes to the annual financial statements continued for the year ended 31 December 7. Taxation Rand million 2025 2024 Charge to the statement of profit or loss South African normal tax Current year 24 25 Prior year (13) 25 Total 11 50 % % Reconciliation of taxation rates Taxation as a percentage of profit before taxation 0.1 0.4 Taxation effect of: Disallowable expenditure1 (0.1) (0.1) Exempt income2 26.9 26.9 Prior year under/(over) provision 0.1 (0.2) Standard tax rate 27.0 27.0 1 These percentages comprise many immaterial amounts which have been aggregated; no individual disclosure has been provided. 2 This relates to dividend income recei ved from a subsidiary. 8. Cash generated by operations Rand million 2025 2024 Operating profit 12,032 13,779 Adjusted for: Share-based payment expense 2 (14) Working capital movements: Increase in other payables 6 (26) Cash flows generated from operating activities 12,040 13,739 9. Normal taxation paid Rand million 2025 2024 Current tax liability/(asset) at the beginning of the year 12 (14) Amounts charged to the statement of profit or loss 11 50 Current tax asset/(liability) at the end of the year 1 (12) Taxation paid during the year per the statement of cash flow 24 24 106 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Notes to the separate financial statements
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Notes to the annual financial statements continued for the year ended 31 December 10. Related-party transactions During the year, Kumba, in the ordinary course of business, entered into various transactions for the rendering of services to its subsidiary, SIOC, as well as its holding company, Anglo American plc. Certain deposits and borrowings are also placed with a subsidiary of the holding company. The subsidiary of the holding company also acts as an agent for the Company in respect of all foreign exchange transactions and performs a back office treasury function for the group. Details of these transactions are included in note 33 to the consolidated financial statements. These transactions occurred under terms that are no less favourable than those arranged with third parties. Holding company Anglo American plc is Kumba’s ultimate holding company whose interest in the group is held through a 69.71% shareholding by Anglo South Africa Proprietary Limited (2024: 69.71%). Subsidiaries Details of investments in, and loans to, subsidiaries are disclosed in Annexure 1 and note 1 above. Shareholders The principal shareholders of the Company are detailed under the shareholder analysis on pages 118 and 119. Related-party transactions: Rand million 2025 2024 Rendering of services SIOC – payroll costs1 25 18 Rendering of services and finance income SIOC – finance income 61 64 SIOC – service recovery fee2 35 29 Amounts owing by related parties SIOC – loan 407 153 KIO Investment Holdings – loan 84 62 Dividends paid to/(by) Kumba SIOC 12,088 13,840 Anglo South Africa Proprietary Limited (8,196) (9,648) 1 This relates to payroll costs recovered from Kumba by SIOC for work performed for Kumba by SIOC employees. 2 This relates to management fees recoverable from SIOC. Directors Details relating to the Company’s directors’ remunerations and shareholdings (including share options) are disclosed in note 35 to the consolidated financial statements and on pages 118 and 119. 11. Events after the reporting period Dividend A final cash dividend of R15.43 per share was declared by the Board on 18 February 2026 from profits accrued during the financial year ended 31 December 2025. The total cash dividend for the year amounted to R32.03 per share. The estimated total cash flow of the final Kumba dividend, payable on 16 March 2026, is R4.9 billion. Other The directors are not aware of any other matter or circumstance arising since the end of the year and up to the date of this report, not otherwise dealt with in this report. 107 Kumba Iron Ore Limited Annual Financial Statements 2025 Company Notes to the separate financial statements
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Annexure 1: Investments in subsidiaries for the year ended 31 December Investments at cost Loans to subsidiaries R’000 Country of incorpora- tion1 Principal place of business1 Nature of business2 Percentage holding Nominal issued capital R 2025 2024 2025 2024 Direct investments Sishen Iron Ore Company Proprietary Limited RSA RSA A 76% 100 3,009 3,009 407,228 153,427 KIO Investment Holdings Proprietary Limited RSA RSA B 100% 1,000 — — 83,501 61,765 Total investments in subsidiaries 3,009 3,009 490,729 215,192 Indirect subsidiaries* Country of incorporation1 Principal place of business1 Nature of business2 Percentage holding Kumba International Trading Limited JE UK C 100% Kumba Iron Ore Holdings SARL NE LUX D 100% Kumba Singapore Private Limited SNG SNG C 100% Sibelo Resources Development Proprietary Limited RSA RSA D 100% *During the year, SIOC disposed of its interest in SIOC Solar SPV Proprietary Limited, refer to note 33 to the consolidated financial statements. Special purpose entities3 Country of incorporation1 Principal place of business1 Nature of business2 Percentage holding Kumba Iron Ore Rehabilitation Trust4 RSA RSA E 100% Kumba BSP Trust4 RSA RSA F 100% SIOC Employee Share Ownership Plan Trust (Semela) RSA RSA F 100% SIOC Employee Benefit Scheme (Karolo) RSA RSA F 100% 1 RSA – Republic of South Africa, JE – Jersey, UK – United Kingdom, NE – Netherlands, LUX – Luxembourg, SNG – Singapore. 2 A – Mining, B – Investment company, C – Iron ore marketing and sales, D – Dormant, E – Mine closure fund, F – Share incentive scheme administrator. 3 Controlled by Kumba. 4 The trusts have a 28 February year end as it is a requirement by SARS. Where the financial year ends are not co-terminous with that of the group, financial information has been obtained from published information on management accounts as appropriate. 108 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 1
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Annexure 2: Investments in associates and joint arrangements for the year ended 31 December Group loan balance Company loan balance R’000 Country of incorpora- tion1 Principal place of business1 Nature of business2 Number of shares held Percentage holding Investment at cost R 2025 2024 2025 2024 Associates Unlisted Essential Prospects 101 Proprietary Limited (Essential) RSA RSA A 26 26% 50,000 16,501 13,050 16,501 13,050 Total investment in associates 50,000 16,501 13,050 16,501 13,050 Incorporated joint arrangements Unlisted Polokwane Iron Ore Company Proprietary Limited (PIOC) RSA RSA A 4,000 50% 3,740 * * — — OUF Proprietary Limited RSA RSA B 650 65% — — — — — Total investment in joint arrangements 3,740 — — — 1 RSA – Republic of South Africa. 2 A – Exploration, B - The entity was established by the users of the Ore Export Channel for the improvement of rail performance. * Impaired in SIOC’s separate financial statements. The associates and joint venture are equity accounted in the group consolidated financial statements. SIOC‘s share of Essential’s post-acquisition losses of R1 million (2024: R1 million) was recognised in the statement of profit or loss, resulting in a reduction of R1 million (2024: R1 million) to the carrying amount of the investment. The carrying amount of the investment at 31 December 2025 was R22 million (2024: R23 million). SIOC’s share of PIOC’s post-acquisition losses is limited to the investment and the loan to PIOC, resulting in a carrying amount of Rnil (2024: Rnil) in respect of the investment and loan to PIOC in the group’s statement of financial position. As a result, the impairment of the loan receivable from PIOC had no impact on the group’s financial statements. During the year, the group, as part of the OUF, entered into a Shareholders Agreement with the OUF Proprietary Limited. In terms of the agreement, the group holds a 65% shareholding and exercises joint control over the arrangement. The shareholders main objective is to enhance the reliability and performance of the Ore Export Channel. 109 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 2
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Annexure 3: Equity-settled share-based payment schemes for the year ended 31 December Employee share incentive schemes Certain group employees participate in the following share incentive schemes: • Bonus and Retention Share Plan (BRP) • Performance Share Plan (PSP) • SIOC Employee Benefit Share Scheme (Karolo) • SIOC Employee Share Ownership Plan Trust (Semela) 1. BRP scheme Description of scheme The Bonus Share Plan (BSP) scheme, which was approved and adopted by shareholders on 20 March 2009 for a 10-year period, reached its 10th anniversary in March 2019, and was therefore terminated. Consequently, the BRP scheme for executive directors and senior employees was implemented during 2019, replacing the BSP scheme. The BRP is offered to Executive directors and senior managers who have the opportunity and the responsibility to contribute towards Kumba‘s overall strategic objectives. The BRP has two components: • a payment of an annual cash bonus • a forfeitable award of Kumba shares linked to the participant’s annual cash bonus award known as bonus shares The number of bonus shares awarded is determined with reference to the amount of the annual cash bonus an employee receives, which is directly linked to the employee‘s personal performance and potential. The shares are held in an escrow account and released to the employee three years after the award date (subject to continuous employment). During the three-year period, the employee is entitled to all rights attached to the bonus shares, including dividend entitlements and voting rights. Movement in the number of share awards granted 2025 award 2024 award 2023 award 2022 award 2021 award 2020 award Balance at the beginning of the year — 154,310 108,221 71,810 — 7,443 Bonus shares awarded 298,465 — — — — — Awards forfeited (9,597) (6,001) (1,283) — — — Awards exercised1 (2,584) (6,855) (5,879) — — — Awards exercised on vesting — (13,970) (45,788) (71,810) — (7,443) Balance at 31 December 2025 286,284 127,484 55,271 — — — Balance at the beginning of the year — — 158,680 139,628 63,694 7,443 Bonus shares awarded — 181,279 — — — — Awards forfeited — (6,295) (5,999) (1,107) — — Awards exercised1 — (20,674) (25,071) (16,180) — — Awards exercised on vesting — — (19,389) (50,531) (63,694) — Balance at 31 December 2024 — 154,310 108,221 71,810 — 7,443 1 This relates to the pro rata portion of the bonus shares granted to employees who are considered good leavers (retirement, retrenchment and medical incapacity) in terms of the share scheme rules. 110 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 3: Equity-settled share-based payment schemes continued for the year ended 31 December 1. BRP scheme continued Number of conditional awards Expiry date Vesting period of awards granted Less than 1 year 108,053 2026 1 to 2 years 178,344 2027 2 to 5 years 182,642 2028 Valuation of scheme The share awards granted under the BRP are considered equity-settled. The share-based payment expense is measured using the fair value of the share awards issued under the BRP, which was determined using the Kumba share price on grant date. 2025 award 2024 award 2023 award 2022 award 2021 award 2020 award Fair value assumptions Share price on date of grant (Rand) 371.60 533.55 518.91 628.88 655.45 283.23 Expected share option life (years) 3 3 3 3 3 3 Expected dividend yield (%) 5.00 5.00 5.00 5.00 5.00 5.00 The risk-free interest rate for the period within the contractual term of the awards is based on South African government bonds. The historical volatility of the Kumba share price is used in determining the expected volatility. 2. PSP scheme Description of scheme The PSP scheme was implemented during 2019. The PSP awards have performance conditions attached to the vesting and do not qualify for shareholder rights over the vesting period. The payment of dividend equivalents will be incorporated into the awards for qualifying Prescribed officers and senior managers to offset the loss of dividend rights associated with the conditional share award pre-vesting. No dividend equivalent policy will apply to the Executive directors. Movement in the number of conditional awards granted Number of conditional awards 2025 award 2024 award 2023 award 2022 award 2021 award 2020 award Balance at the beginning of the year — 77,924 78,733 54,162 11,756 16,697 Conditional awards issued 145,670 — — — — — Conditional awards forfeited — — (3,234) (32,184) — — Conditional awards vested — — — (10,706) — (16,697) Balance at 31 December 2025 145,670 77,924 75,499 11,272 11,756 — Balance at the beginning of the year — — 84,649 56,063 68,073 16,697 Conditional awards issued — 87,614 — — — — Conditional awards forfeited — (9,690) (5,916) (1,901) (40,108) — Conditional awards vested — — — — (16,209) — Balance at 31 December 2024 — 77,924 78,733 54,162 11,756 16,697 111 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 3: Equity-settled share-based payment schemes continued for the year ended 31 December 2. PSP scheme continued Number of conditional awards Expiry date Vesting period of conditional awards granted Less than 1 year 98,527 2026 1 to 2 years 77,924 2027 2 to 5 years 145,670 2028 Valuation of scheme The conditional awards granted under the PSP are considered equity-settled. The share-based payment expense is measured using the fair value of the conditional award issued under the PSP, which was determined using the Monte Carlo option pricing model. 2025 award 2024 award 2023 award 2022 award 2021 award 2020 award Fair value assumptions Share price on date of grant (Rand) 371.60 533.55 518.91 628.88 655.45 537.03 Annualised expected volatility (%) 46.92 40.61 51.31 48.64 49.19 50.81 Expected share option life (years) 3 3 3 3 3 3 Expected dividend yield (%) 5.00 5.00 5.00 5.00 5.00 5.00 Risk-free interest rate (%) 8.38 9.10 8.30 8.20 6.20 5.50 The risk-free interest rate for the period within the contractual term of the awards is based on South African government bonds. The historical volatility of the Kumba share price is used in determining the expected volatility. 3. SIOC Employee Benefit Share Scheme (Karolo) Description of scheme The Karolo scheme became effective in August 2018, comprising an annual grant of Kumba shares to qualifying employees. The Kumba shares, which will vest after three years, are held by an agent and released to the employee three years after the award date, subject to continuous employment. During the three-year period, the employee is entitled to all rights attached to the bonus shares, including dividend entitlements and voting rights. The Karolo scheme terminated in August 2022 and was replaced by the Semela scheme (refer to section 4 below of this Annexure for details of the Semela scheme). The last award from the Karolo scheme was made in August 2022. 112 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 3: Equity-settled share-based payment schemes continued for the year ended 31 December 3. SIOC Employee Benefit Share Scheme (Karolo) continued Movement in the number of share awards granted 2023 to 2025 awards 2022 award 2021 award Balance at the beginning of the year — 200,843 — Awards forfeited — (2,420) — Awards exercised1 — — — Awards exercised on vesting — (198,423) — Balance at 31 December 2025 — — — Balance at the beginning of the year — 219,688 176,148 Awards forfeited — (3,468) (2,460) Awards exercised1 — (15,377) (171,726) Awards exercised on vesting — — (1,962) Balance at 31 December 2024 — 200,843 — 1 This relates to the pro rata portion of the Karolo shares granted to employees who are considered good leavers (retirement, retrenchment and medical incapacity) in terms of the share scheme rules. Valuation of scheme The share awards granted under the Karolo scheme are considered equity-settled. The share-based payment expense is measured using the fair value of the share award issued under the Karolo scheme, which was determined using the grant date share price of Kumba’s shares. 2022 award 2021 award Fair value assumptions Share price on date of grant (Rand) 488.62 614.02 Expected share option life (years) 3 3 Expected dividend yield (%) 5.00 5.00 The risk-free interest rate for the period within the contractual term of the awards is based on South African government bonds. The historical volatility of the Kumba share price is used in determining the expected volatility. 113 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 3: Equity-settled share-based payment schemes continued for the year ended 31 December 4. SIOC Employee Share Ownership Plan Trust (Semela) Description of scheme The Semela scheme was implemented to replace the Karolo scheme which terminated in 2022. The Semela scheme, consists of two components: • vesting • non-vesting Vesting component Under the vesting component, participating employees are awarded Kumba shares valued at an inflation-adjusted equivalent of R20,000 per employee on an annual basis, with a three-year vesting period, similar to the Karolo scheme. The first share award under this scheme was made during August 2023. Non-vesting component In 2022, the group issued new SIOC shares, an equivalent of 1.2% interest in SIOC, to a trust established for the benefit of qualifying SIOC employees who were employed by SIOC as at May 2022. The group has control over the trust. Under the Semela non-vesting component, participating employees are entitled to their portion of dividends declared by SIOC to the Semela Trust in relation to the trust’s 1.2% shareholding in SIOC. Participating employees receive their pro rata distribution of SIOC dividends declared, less applicable administrative costs. This scheme does not have any funding requirements attached to it and is expected to exist over the group’s remaining life-of-asset. Movement in the number of share awards granted: 2025 award 2024 award 2023 award Balance at the beginning of the year — 328,168 259,529 Shares awarded 470,129 — — Awards forfeited (1,175) (3,486) (2,823) Awards exercised (542) (3,354) (3,057) Awards exercised on vesting — — — Balance at 31 December 2025 468,412 321,328 253,649 Balance at the beginning of the year — — 283,164 Shares awarded — 331,055 — Awards forfeited — (1,237) (4,571) Awards exercised — (1,650) (19,064) Awards exercised on vesting — — Balance at 31 December 2024 — 328,168 259,529 Number of conditional awards Expiry date Vesting period of awards granted: Less than 1 year 253,649 2026 1 to 2 years 321,328 2027 2 to 5 years 468,412 2028 114 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 3: Equity-settled share-based payment schemes continued for the year ended 31 December 4. SIOC Employee Share Ownership Plan Trust (Semela) continued Valuation of scheme The share awards granted under the Semela scheme are considered equity-settled. The share-based payment expense is measured using the fair value of the share awards issued under the Semela scheme, which was determined using the grant date share price of Kumba's shares. 2025 awards 2024 awards 2023 awards Fair value assumptions Share price on date of grant (Rand) 284.91 404.82 476.54 Expected share option life (years) 3 3 3 Expected dividend yield (%) 5.00 5.00 5.00 The risk-free interest rate for the period within the contractual term of the awards is based on South African government bonds. The historical volatility of the Kumba share price is used in determining the expected volatility. The aggregate number of shares, which may be allocated under the BRP, PSP and Semela, when added to the total number of unvested conditional awards and share options allocated to employees under any other share scheme, may not exceed 31,194,612 shares. At the end of 2025, a total of 29,360,065 shares (2024: 29,825,016 shares) were available for utilisation under the share incentive schemes. 115 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 3
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Annexure 4: New and amended standards not yet adopted by the group A number of new standards and amendments to standards and interpretations are in issue, but not effective for annual periods beginning on 1 January 2025. The group has not early adopted the new or amended standards in preparing these consolidated financial statements. Classification and Measurement of Financial Instruments – Amendment to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures The amendments to IFRS 9 and IFRS 7 clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. The amendments clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion adding new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of ESG targets). The amendments make updates to the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. Early adoption is permitted, but will need to be disclosed. The amendments are not expected to have a material impact on the consolidated and separate financial statements. Amendment to IFRS 9 and IFRS 7- Contracts Referencing Nature-dependent Electricity The amendments apply only to contracts that reference nature-dependent electricity, and they clarify the application of the ‘own-use’ requirements for in-scope contracts. The amendments change the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts and add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. Early adoption is permitted, but will need to be disclosed. The amendments are not expected to have a material impact on the consolidated and separate financial statements. IFRS 18 Presentation and Disclosure in Financial Statements The new standard on presentation and disclosure in financial statements, focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to the structure of the statement of profit or loss, required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures) and enhanced principles on aggregation and disaggregation that apply to the primary financial statements and notes in general. IFRS 18 will be effective for annual reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. The group is currently working to identify all impacts the new standard will have on the primary financial statements and notes to the financial statements. Amendment to IAS 21 - Translation to a Hyperinflationary Presentation Currency The amendment specifies the translation procedures to be applied when an entity’s presentation currency is that of a hyperinflationary economy. The entity applies the amendments if its functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy. The amendment aims to improve the usefulness of the resulting information in a cost-effective manner. The IAS 21 amendment will become effective for reporting periods beginning on or after 1 January 2027, with early application permitted. The amendment is not expected to have a material impact on the consolidated and separate financial statements. Annual improvements - Volume 11 Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The amendments are to IFRS 1 First-time Adoption of International Financial Reporting Standards; IFRS 7 Financial Instruments: Disclosures and its accompanying guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS 7 Statement of Cash Flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2026. Early adoption is permitted, but will need to be disclosed. The amendments are not expected to have a material impact on the consolidated and separate financial statements. 116 Kumba Iron Ore Limited Annual Financial Statements 2025 Annexure 4
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Notice of final cash dividend On 18 February 2026, the directors approved a gross final cash dividend of 1,543 cents per share on the ordinary shares from profits accrued during the year ended 31 December 2025. The dividend has been declared from income reserves. The dividend will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt from or do not qualify for a reduced rate of withholding tax. The net dividend payable to shareholders after withholding tax at a rate of 20%, amounts to 1,234.40 cents per share. The issued share capital at the declaration date is 322,085,974 ordinary shares. The salient dates are as follows: Publication of declaration data Thursday, 19 February 2026 Last day for trading to qualify and participate in the final dividend Tuesday, 10 March 2026 Trading ex-dividend commences Wednesday, 11 March 2026 Record date Friday, 13 March 2026 Dividend payment date Monday, 16 March 2026 Share certificates may not be dematerialised or rematerialised between Wednesday, 11 March 2026 and Friday, 13 March 2026, both days inclusive. Any change of address or dividend instructions must be provided by the last day for trading. By order of the Board F Patel Company Secretary 18 February 2026 117 Kumba Iron Ore Limited Annual Financial Statements 2025 Notice of final cash dividend
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Shareholder analysis Register date: 31 December 2025 Issued share capital: 322,085,974 Number of shareholdings % Number of shares % Shareholder spread 1 – 1,000 shares 16,991 90.41 2,508,680 0.78 1,001 – 10,000 shares 1,422 7.57 4,418,427 1.37 10,001 – 100,000 shares 299 1.59 9,596,933 2.98 100,001 – 1,000,000 shares 71 0.38 19,464,639 6.04 1,000,001 shares and over 11 0.05 286,097,295 88.83 Total 18,794 100.00 322,085,974 100.00 Major categories of shareholders Strategic investor 1 0.01 224,535,915 69.71 Government 12 0.06 48,447,429 15.04 Banks/brokers 189 1.01 26,581,199 8.25 Close corporations 88 0.47 82,299 0.03 Endowment funds 19 0.10 23,828 0.01 Individuals 16,149 85.92 5,563,704 1.74 Insurance companies 139 0.74 704,966 0.22 Investment companies 20 0.11 134,146 0.04 Medical schemes 15 0.08 175,007 0.05 Mutual funds 328 1.75 8,853,676 2.75 Private companies 436 2.32 1,696,871 0.53 Retirement funds 286 1.52 3,266,703 1.01 Share trusts 4 0.02 1,074,764 0.33 Trusts 1,108 5.89 945,467 0.29 Total 18,794 100.00 322,085,974 100.00 Public/non-public shareholders Non-public shareholders 24 0.13 268,435,201 83.34 Directors, associates and Executive Committee of the Company 17 0.09 402,761 0.13 Strategic holdings1 2 0.01 266,034,530 82.59 Related party holdings 5 0.03 1,997,910 0.62 Public shareholders 18,770 99.87 53,650,773 16.66 Total 18,794 100.00 322,085,974 100.00 Number of shares % Major shareholders Pursuant to section 56(7) of the Companies Act, the following shareholders held 5% or more as at 31 December 2025: Anglo South Africa Proprietary Limited 224,535,915 69.71 IDC of South Africa Limited 41,498,615 12.88 Total 266,034,530 82.59 1 Strategic shareholders comprise Anglo South Africa Proprietary Limited and the IDC South Africa Limited. 118 Kumba Iron Ore Limited Annual Financial Statements 2025 Shareholder analysis
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Shareholder analysis continued Register date: 31 December 2025 Issued share capital: 322,085,974 Breakdown of non-public holdings Number of shares % Directors, associates and executives of the Company Zikalala, ND (Chief Executive) 48,062 0.01 Zikalala, ND 47,494 0.01 Zikalala, ND 568 0.00 Mazarura, BA (Chief Financial Officer) 22,808 0.01 Mazarura, BA 22,808 0.01 Mkhwanazi, TM (Non-executive director) 104,241 0.04 Mkhwanazi, TM 78,725 0.02 Mkhwanazi, TM 17,063 0.01 Mkhwanazi, TM 8,453 0.01 Ntsaluba, SS 1,385 0.00 Ntsaluba, SS 1,385 0.00 Mbambo, XF (Chief Financial Officer Designate) 184,280 0.06 Mbambo, XF 184,280 0.06 Mbatha, SB 6,423 0.00 Mbatha, SB 6,423 0.00 Nortje, PG 7,679 0.00 Nortje, PG 7,668 0.00 Nortje, PG 11 0.00 Ramchander, P 11,391 0.01 Ramchander, P 7,553 0.00 Ramchander, P 3,838 0.00 Ramgoolam, S 7,822 0.00 Ramgoolam, S 7,822 0.00 Sibanyoni, NM 8,670 0.00 Sibanyoni, NM 6,949 0.00 Sibanyoni, NM 1,721 0.00 Total 402,761 0.13 119 Kumba Iron Ore Limited Annual Financial Statements 2025 Shareholder analysis
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Supplementary non-IFRS financial measures The Kumba Iron Ore Limited Annual Financial Statements for the year ended 31 December 2025 include certain non-IFRS financial measures in respect of the group's financial performance, financial position and cash flows. These measures are presented in order to provide users with relevant information and measures used by the group to assess performance. The nature of these measures may not fairly represent the issuer's financial position, changes in equity, results of operations or cash flows. The information was extracted from the audited Kumba Iron Ore Limited Annual Financial Statements for the year ended 31 December 2025. Non-IFRS financial measures are financial measures other than those defined or specified under all relevant IFRS Accounting Standards. To the extent that these measures are not extracted from the IFRS Accounting Standards disclosure included in the audited Kumba Iron Ore Limited Annual Financial Statements for the year ended 31 December 2025, these measures constitute pro forma financial information in terms of the JSE Limited Listings Requirements and are the responsibility of the Board of directors. They are presented for illustrative purposes and to provide users with relevant information and measures used by the Company to assess its operating and financial performance, cash flow performance, and to enable offshore stakeholders to interpret the financial performance in a universally measured currency. In addition, these measures may not be comparable to similarly titled measures used by other companies. The underlying information used in the presentation of the pro forma financial information has been prepared using the group’s accounting policies that comply with IFRS Accounting Standards. This pro forma financial information has been reported on by the external auditor. The Independent Auditor’s Assurance Report is prepared in terms of ISAE 3420 and is included on pages 124 to 125. The following sets out the non-IFRS financial measures disclosed throughout these annual financial statements and where they are reconciled. Adjusted EBITDA EBITDA is a measure of operating performance and is used to identify trends of controllable expenses in the business. Adjusted EBITDA is a measure of the group’s core earnings adjusted for non-recurring items, such as impairment charges or reversal of prior year impairment charges. Rand million 2025 2024 Operating profit per the statement of profit or loss 25,758 26,361 Add back: Depreciation 6,165 5,713 EBITDA 31,923 32,074 Less: Impairment reversal — (3,940) Adjusted EBITDA 31,923 28,134 Attributable free cash flow Attributable free cash flow measures the group’s ability to generate cash for the period under review. The table below illustrates attributable free cash flow for the years ended 31 December: Rand million 2025 2024 Cash generated from operations 32,448 34,791 Less: Additions to property, plant and equipment (10,031) (9,673) Less: Finance costs paid (822) (471) Less: Taxation paid (5,873) (5,878) Less: Dividends paid to non-controlling shareholders (3,757) (4,302) Attributable free cash flow 11,965 14,467 120 Kumba Iron Ore Limited Annual Financial Statements 2025 Supplementary non-IFRS financial measures
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Supplementary non-IFRS financial measures continued Net asset value attributable to owners of Kumba Net asset value attributable to owners represents the worth of one share as at 31 December: 2025 2024 Shareholders’ equity (Rand million) 54,939 52,815 Divided by: Ordinary shares in issue 322,085,974 322,085,974 Net assets attributable to owners of Kumba (Rand per share) 170.57 163.98 Net cash Net cash illustrates the group’s cash position after deducting borrowings and lease liabilities as at 31 December: Rand million 2025 2024 Cash and cash equivalents 15,117 16,913 Less: Interest-bearing borrowings — (2,003) Less: Lease liabilities (203) (193) Net cash 14,914 14,717 US dollar convenience translation statements The Company, whose functional currency is the rand, has translated its statement of financial position and statement of profit or loss into US dollar to enable offshore stakeholders to interpret the group’s financial performance in a universally measured currency. Refer to pages 122 and 123, respectively. 121 Kumba Iron Ore Limited Annual Financial Statements 2025 Supplementary non-IFRS financial measures
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Supplementary non-IFRS financial measures continued Statement of financial position – US dollar convenience translation as at 31 December US dollar million 2025 2024 ASSETS Property, plant and equipment 3,613 2,990 Right-of-use assets 10 8 Biological assets 3 2 Investments held by environmental trust 73 53 Investment in associate 1 1 Long-term prepayments and other receivables 15 9 Inventories 610 455 Non-current assets 4,325 3,518 Inventories 584 513 Trade and other receivables 385 307 Current tax assets 43 31 Cash and cash equivalents 911 903 Current assets 1,923 1,754 Total assets 6,248 5,272 EQUITY AND LIABILITIES Shareholders’ equity 3,310 2,817 Non-controlling interests 1,028 880 Total equity 4,338 3,697 LIABILITIES Lease liabilities 6 4 Provisions 204 170 Deferred tax liabilities 917 753 Non-current liabilities 1,127 927 Lease liabilities 6 7 Interest-bearing borrowings — 107 Provisions 10 11 Trade and other payables 723 498 Contract liabilities 29 24 Current tax liabilities 15 1 Current liabilities 783 648 Total liabilities 1,910 1,575 Total equity and liabilities 6,248 5,272 Exchange rate Translated at closing rand/US dollar exchange rate 16.60 18.73 Note: The consolidated statement of financial position of Kumba Iron Ore Limited, whose functional currency is the rand, has been translated into US dollars. Assets and liabilities have been translated at the closing rand/US dollar exchange rate of 16.60 and 18.73 at 31 December 2025 and 31 December 2024, respectively. 122 Kumba Iron Ore Limited Annual Financial Statements 2025 Supplementary non-IFRS financial measures
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Supplementary non-IFRS financial measures continued Statement of profit or loss – US dollar convenience translation as at 31 December US dollar million 2025 2024 Revenue 3,917 3,739 Other operating income 53 — Operating expenses (2,528) (2,515) Impairment reversal — 215 Expected credit losses on financial assets (2) — Operating profit 1,440 1,439 Finance income 77 44 Finance costs (51) (28) Profit before taxation 1,466 1,455 Taxation (395) (402) Profit for the year 1,071 1,053 Attributable to: Owners of Kumba 817 803 Non-controlling interests 254 250 1,071 1,053 Earnings per share attributable to the ordinary equity holders of Kumba (US dollar per share) Basic 2.55 2.50 Diluted 2.54 2.49 Exchange rate Translated at average rand/US dollar exchange rate 17.89 18.33 Note: The financial results of Kumba Iron Ore Limited, whose functional currency is the rand, has been translated into US dollars. Income and expenses presented on the statement of profit or loss have been translated at the average rand/US dollar exchange rate of 17.89 and 18.33 for the 2025 and 2024 financial year, respectively. 123 Kumba Iron Ore Limited Annual Financial Statements 2025 Supplementary non-IFRS financial measures
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Independent Auditor’s Assurance Report Independent Auditor’s Assurance Report on the compilation of pro forma financial information for the year ended 31 December 2025 included in the Kumba Iron Ore Limited Annual Financial Statements for the year ended 31 December 2025 To the Directors of Kumba Iron Ore Limited We have completed our assurance engagement to report on the compilation of the pro forma financial information of Kumba Iron Ore Limited (the “Company”) (and its subsidiaries (together “the Group”) by the directors. The pro forma financial information, as set out on pages 120 to 123 of the Kumba Iron Ore Limited Annual Financial Statements for the year ended 31 December 2025 (“the Annual Financial Statements”) consists of non-IFRS measures (the “Pro Forma Financial Information”). The applicable criteria on the basis of which the directors have compiled the Pro Forma Financial Information are specified in the Listings Requirements of the JSE Limited (“the JSE Listings Requirements”) and described in the Supplementary non-IFRS financial measures section of the Annual Financial Statements (the “Applicable Criteria”). The Pro Forma Financial Information has been compiled by the directors solely for illustrative purposes and to provide users with the relevant information and measures used by the Group to assess its operating and financial performance, cash flow performance, and to enable offshore stakeholders to interpret the financial performance in a universally measured currency. As part of this process, information about the Group’s consolidated financial position and financial performance has been extracted by the directors from the Annual Financial Statements, on which an audit opinion was issued on 18 February 2026. Directors' responsibility for the Pro Forma Financial Information The directors are responsible for compiling the Pro Forma Financial Information on the basis of the Applicable Criteria. Our Independence and Quality Management We have complied with the independence and other ethical requirements of the Code of Professional Conduct for Registered Auditors, issued by the Independent Regulatory Board for Auditors’ (IRBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards). The firm applies International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, which requires the firm to design, implement and operate a system of quality management, including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Auditor’s responsibility Our responsibility is to express an opinion, as required by the JSE Listings Requirements, about whether the Pro Forma Financial Information has been compiled, in all material respects, by the directors, on the basis of the Applicable Criteria, based on our procedures performed. We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus issued by the International Auditing and Assurance Standards Board. This standard requires that we plan and perform our procedures to obtain reasonable assurance about whether the Pro Forma Financial Information has been compiled, in all material respects, on the basis specified in the Applicable Criteria. For purposes of this engagement, we are not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the Pro Forma Financial Information, nor have we, in the course of this engagement, performed an audit or review of the financial information used in compiling the Pro Forma Financial Information. PricewaterhouseCoopers Inc. 4 Lisbon Lane, Waterfall City, Jukskei View, 2090 Private Bag X36, Sunninghill, 2157 T: +27 (0) 11 797 4000, F: +27 (0) 11 209 5800 Chief Executive Officer: L S Machaba The Company's principal place of business is at 4 Lisbon Lane, Waterfall City, Jukskei View, where a list of directors' names is available for inspection. www.pwc.co.za Reg. no. 1998/012055/21, VAT reg.no. 4950174682 124 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor’s assurance report on non-IFRS measures 30
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Independent Auditor’s Assurance Report continued The purpose of the Pro Forma Financial Information included in the Annual Financial Statements is solely for illustrative purposes and to provide users with the relevant information and measures used by the Group to assess its operating and financial performance, cash flow performance, and to enable offshore stakeholders to interpret the financial performance in a universally measured currency. A reasonable assurance engagement to report on whether the Pro Forma Financial Information has been compiled, in all material respects, on the basis of the Applicable Criteria involves performing procedures to assess whether the Applicable Criteria used by the directors in the compilation of the Pro Forma Financial Information provide a reasonable basis for presenting the significant effects directly attributable to the event, and to obtain sufficient appropriate evidence about whether: • The related pro forma adjustments give appropriate effect to those criteria; and • The Pro Forma Financial Information reflects the proper application of those adjustments to the unadjusted financial information. The procedures selected depend on our judgement, having regard to our understanding of the nature of the Group, the events in respect of which the Pro Forma Financial Information has been compiled, and other relevant engagement circumstances. Our engagement also involves evaluating the overall presentation of the Pro Forma Financial Information. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the Pro Forma Financial Information has been compiled, in all material respects, on the basis of the Applicable Criteria. PricewaterhouseCoopers Inc. Director: B Laher Registered Auditor Johannesburg, South Africa 18 February 2026 The examination of controls over the maintenance and integrity of the Group’s website is beyond the scope of the compilation of Pro Forma financial information. Accordingly, we accept no responsibility for any changes that may have occurred to the Annual Financial Statements since they were initially presented on the website. 125 Kumba Iron Ore Limited Annual Financial Statements 2025 Independent auditor’s assurance report on non-IFRS measures
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Glossary of terms and acronyms Adjusted EBITDA Operating profit before deducting depreciation, amortisation and impairment charges and before adding impairment reversals AGM Annual general meeting Attributable free cash flow The amount of cash available to finance returns to shareholders or growth after servicing debt, providing a return to non-controlling shareholders and meeting existing capital expenditure commitments. B-BBEE Broad-based black economic empowerment BEE Black economic empowerment BRP Bonus and Retention Share Plan BSP Bonus Share Plan C1 unit cost All direct cash costs incurred in the mining and production of iron ore CAT Central Africa Time CBAM Carbon Border Adjustment Mechanism CETS Carbon Emission Trading System CFR Cost and freight CGU Cash-generating unit CODM Chief operating decision-maker Companies Act South African Companies Act No 71 of 2008, as amended DBA Deferred bonus arrangement DCF Discounted cash flow DMPR Department of Mineral and Petroleum Resources DMS Dense media separation dmt Dry metric tonne dmtu Dry metric tonne unit EBITDA Earnings before interest, tax, depreciation and amortisation EPS Earnings per share ESG Environmental, Social and Governance ESOP Employee share ownership scheme FCTR Foreign currency translation reserve Fe Iron FOB Free-on-board FVTPL Fair value through profit or loss GDP Gross domestic product GISTM Global Industry Standard on Tailings Management GJ Gigajoule ha Hectares HEPS Headline earnings per share Historically disadvantaged South Africans Included in the calculation, all permanent employees, fixed-term employees as well as trainees in our workforce 126 Kumba Iron Ore Limited Annual Financial Statements 2025 Glossary of terms and acronyms
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Glossary of terms and acronyms continued IAS International Accounting Standards IASB International Accounting Standards Board IDC Industrial Development Corporation IFRIC International Financial Reporting Interpretations Committee IFRS Accounting Standards International Financial Reporting Standards as issued by the IASB IODEX Platts Iron Ore Index JIBAR Johannesburg Interbank Average Rate JIG A plant that uses jig separators to process minerals and concentrate them by density JSE Johannesburg Stock Exchange King IV King IV Report on Corporate Governance for South Africa, 2016 LoAP Life-of-asset plan LTI Lost-time injury LTIP Long-term incentive plan MCA Mutual Cooperation Agreement ML Megalitres MoI Memorandum of Incorporation Mt Million tonnes MW Megawatt NEMA National Environmental Management Act Net cash Total cash and cash equivalents, less total borrowings and lease liabilities Net working capital Total inventory (including non-current) plus trade and other receivables, less trade and other payables (including contract liabilities). These balances principally relate to assets and liabilities to support our operations NPI Net-positive impact PwC PricewaterhouseCoopers OCR Ore Corridor Restoration programme OUF Ore Users’ Forum PSP Performance Share Plan PV Photovoltaic ROCE Return on adjusted capital employed - calculated as annualised EBIT divided by adjusted average capital SAICA South African Institute of Chartered Accountants SAMREC Code The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 Edition 127 Kumba Iron Ore Limited Annual Financial Statements 2025 Glossary of terms and acronyms
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Glossary of terms and acronyms continued SARB South African Reserve Bank SARS South African Revenue Service SCA Supreme Court of Appeal Semela SIOC Employee Share Ownership Plan Trust SIB Stay-in-business SIOC Sishen Iron Ore Company Proprietary Limited SOFR Secured overnight funding rate Tangible net worth Measures the value of a company's physical assets (excluding intangible assets) minus its liabilities. It is calculated as the sum of paid-up, issued share capital and share premium of the Company, the consolidated reserves of the group and the retained income of the group minus intangible assets. TB Tuberculosis UHDMS Ultra-high dense media separation Unit cost All costs incurred by the operations in the mining and production of iron ore, including overheads and non-cash costs like depreciation, accounting provisions and share-based payment costs VAT Value Added Tax VWAP Volume weighted average price WIP Work in progress wmt Wet metric tonne Women in management Included in the calculation, all permanent employees, fixed-term employees as well as trainees in our workforce ZARONIA South African Rand Overnight Index Average 128 Kumba Iron Ore Limited Annual Financial Statements 2025 Glossary of terms and acronyms
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Administration Company registration number 2005/015852/06 JSE share code: KIO ISIN code: ZAE000085346 Company Secretary and registered office Fazila Patel 144 Oxford Road Rosebank, Melrose 2196 South Africa Mobile: +27 (0) 83 297 2293 fazila.patel@angloamerican.com Auditors PricewaterhouseCoopers Inc. Registered Auditors 4 Lisbon Lane Waterfall City 2090 South Africa Private Bag X36, Sunninghill, 2157 Assurance providers SLR Consulting 4 Sandown Valley Crescent Sandown, Sandton 2030 South Africa Tel: +27 (0) 10 020 7343 Directors Non-executive: TP Goodlace (British/South African) (Chairperson), MS Bomela, RM Fernandes (Brazilian), MA Goliath, A Jeawon, MA Jenkins, NB Langa-Royds, NV Mokhesi, SS Ntsaluba, MTS Walker (British) Executive: ND Zikalala (Chief Executive), XF Mbambo (Chief Financial Officer) Sponsor Rand Merchant Bank (A division of FirstRand Bank Limited) Registration number: 1929/001225/06 1 Merchant Place, corner Rivonia Road and Fredman Drive Sandton 2146 South Africa PO Box 786273, Sandton, 2146 Rand Merchant Bank (A division of FirstRand Bank Limited) Transfer secretaries Computershare Investor Services Proprietary Limited Rosebank Towers 15 Biermann Avenue Rosebank 2196 South Africa Private Bag X9000, Saxonwold, 2132 Investor relations Penny Himlok Investor Relations Manager Mobile: +27 (0) 82 781 1888 penny.himlok@angloamerican.com 129 Kumba Iron Ore Limited Annual Financial Statements 2025 Administration
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Forward looking statements Forward looking statements and third-party information This document includes forward looking statements. All statements other than statements of historical fact included in this document may be forward looking statements, including, without limitation, those regarding Kumba’s financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations, prospects and projects (including development plans and objectives relating to Kumba’s products, production forecasts and Ore Reserve and Mineral Resource positions), the anticipated benefits of mergers and acquisitions (including any assessment or quantification of potential synergies) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations. Forward looking statements may be identified by the use of words such as “believe”, “expect”, “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “may”, “should”, “will”, “target” and words of similar meaning. By their nature, such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kumba or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Kumba’s present and future business strategies and the environment in which Kumba will operate in the future. Important factors that could cause Kumba’s actual results, performance or achievements to differ materially from those in the forward looking statements include, among others, levels of actual production during any period, levels of global demand and product prices, unanticipated downturns in business relationships with customers or their purchases from Kumba, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the ability to identify, consummate and integrate pending or potential acquisitions, disposals, investments, mergers, demergers, syndications, joint ventures or other transactions, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new or competing technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures, competitive pressures and the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Kumba’s assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Kumba operates, conflicts over land and resource ownership rights and such other risk factors identified in Kumba’s most recent Integrated report. Forward looking statements should therefore be construed in light of such risk factors, and undue reliance should not be placed on forward looking statements. These forward looking statements speak only as of the date of this document. Kumba expressly disclaims any obligation or undertaking (except as required by applicable law, rules or regulations) to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in Kumba’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this document should be interpreted to mean that future earnings per share of Kumba will necessarily match or exceed its historical published earnings per share. Certain statistical and other information included in this document is sourced from third-party sources (including, but not limited to, externally conducted studies and trials). As such it has not been independently verified and presents the views of those third parties but may not necessarily correspond to the views held by Kumba and Kumba expressly disclaims any responsibility for, or liability in respect of, such information. No investment advice This document has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this document in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Advisory and Intermediary Services Act 37 of 2002 or under any other applicable legislation). Alternative performance measures Throughout this document a range of financial and non-financial measures are used to assess our performance, including a number of financial measures that are not defined or specified under IFRS (International Financial Reporting Standards), which are termed “alternative performance measures” (APMs). Management uses these measures to monitor the Kumba’s financial performance alongside IFRS measures to improve the comparability of information between reporting periods and businesses. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all companies, including those in Kumba’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. 130 Kumba Iron Ore Limited Annual Financial Statements 2025 Forward looking statements
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KUMBA IRON ORE LIMITED 144 Oxford Road Rosebank, Melrose 2196 www.angloamericankumba.com A member of the Anglo American plc group www.angloamerican.com Find us on Facebook Follow us on X