| Thu 10 Feb 2011, 8:00 | | KIO - Kumba Iron Ore - Audited condensed consolidated financial report for the |
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KIO
KIO
KIO - Kumba Iron Ore - Audited condensed consolidated financial report for the
year ended 31 December 2010 and cash dividend declaration
Kumba Iron Ore Limited
Company registration number: 2005/015852/06
Incorporated in the Republic of South Africa
JSE code: KIO ISIN: ZAE000085346
(`Kumba` or `the company` or `the group`)
AUDITED CONDENSED CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER
2010 AND CASH DIVIDEND DECLARATION
Communities now hold unencumbered 3% interest in SIOC valued at over R5bn
Final cash dividend R21.00 per share
Headline earnings up 106% to R14.3bn
Sishen Mine production up 5% to 41.3Mt
Export sales volumes up 6% to 36.1Mt
Safety (LTIFR) declined 71% to 0.12
Sishen Mine unit cash cost up 15% to R113.69
Kolomela Mine development on schedule and on budget
Commentary
Highlights
At R14.3 billion Kumba`s headline earnings for the year ended 31 December 2010
was more than double the R6.9 billion achieved in 2009. This financial
performance was achieved as a result of a weighted average increase of 92% in
export iron ore prices realised by the group, a 6% increase in export sales
volumes and cost containment through improved operational efficiencies, offset
by a 13% stronger average Rand against the US Dollar. Attributable and headline
earnings for the year were R44.66 and R44.67 per share respectively, on which a
final cash dividend of R21.00 per share has been declared (total dividend for
2010 was R34.50 per share).
Kumba continues to make a meaningful contribution towards South Africa`s broad-
based empowerment initiatives, through both capital appreciation and the payment
of substantial cash dividends to the Black Economic Empowerment (`BEE`)
shareholders of Sishen Iron Ore Company (Pty) Limited (`SIOC`). Less than four
years after its establishment, using solely the dividends received from SIOC,
the SIOC Community Development Trust (`the Trust`) redeemed in full the R458
million preference shares issued to pay for its 3% interest in SIOC during the
third quarter of 2010. This exceptional BEE progress occurred well ahead of the
original projections. The Trust now holds an unencumbered 3% interest in SIOC
(valued at R5.1 billion based on Kumba`s share price of R425 on 31 December
2010) and, more importantly, has the unfettered ability to apply all future
dividend cash flows to progress important community development objectives. With
the receipt of this final dividend from SIOC, Envision (SIOC`s broad-based
employee share participation scheme) will redeem another
R190 million of its
outstanding debt. Since inception in 2006, R163 million has been paid to more
than 5 000 participants of the scheme (with
R33 800 paid to each participant).
This, together with the capital appreciation that has occurred since inception,
has substantially increased the value proposition that will be distributed when
the scheme matures in November 2011. Since 2006, SIOC has paid just under R5.0
billion in dividends to Exxaro Resources Limited, its 20% BEE shareholder and
the largest black-owned diversified miner listed on the JSE Limited (`JSE`).
These are significant milestones and transformational steps in realising
meaningful empowerment in South Africa.
Sishen Mine`s production increased by 5% year on year or 1.9Mt to 41.3Mt,
principally through the jig plant ramping up to produce 13.3Mt, 0.3Mt in excess
of its name plate capacity.
The development of Kolomela Mine in the Northern Cape continues and overall
project progress remains on schedule and on budget to deliver initial production
at the end of the first half of 2012.
Safety performance
Kumba`s overall safety performance regressed in 2010. Regrettably the group
suffered three fatalities during the year, one each at Sishen, Thabazimbi and
Kolomela mines. The Board and management once again extend our sincere
condolences to the family, friends and colleagues of Mr BM Machacha, Mr F
Ramalape and Mr K Mashango. As part of our unwavering commitment to achieving
zero harm, we have revisited our safety improvement plans and invested
significant effort in preventing any recurrence of the events which caused the
fatalities.
The group recorded 21 lost-time injuries (`LTI`s`) for the year, which has
resulted in the lost-time injury frequency rate (`LTIFR`) of the group
increasing to 0.12 compared to the 0.07 achieved in 2009. Sishen Mine recorded
15 LTI`s, Thabazimbi Mine 5 LTI`s and there was a single LTI at Kolomela Mine.
Since that LTI, Kolomela Mine achieved 8.6 million LTI-free man-hours and 350
LTI-free days by 31 December 2010. Kumba remains committed to zero harm at all
the group`s sites and management has intensified the focus on compliance to
operational safety standards and the ongoing dedication of every employee to the
zero harm principles.
Corporate responsibility
Kumba has made excellent progress in reducing the occupational health risks
faced by our employees. Specifically, the group recorded a 90% reduction in
reportable cases of noise induced hearing loss. The group continued its
extensive HIV/Aids detection, prevention and treatment programme which
contributed to the low and stable HIV prevalence rate among our employees. Kumba
is aware that due to the extractive nature of our operations, it has a
significant impact on the environment. We are committed to minimising the
environmental impact of our operations and to ensure compliance with the
relevant legislation and regulations.
Kumba continues to invest in infrastructure, the education and training of
community members and enterprise development as part of our commitment to
society.
Market overview
World crude steel production continued to recover during 2010 and returned to
above pre-2008 levels at 1.4 billion tonnes. China`s economic growth continues
to be robust contributing to a year on year growth in crude steel production
despite government initiated macro-economic moderating measures, power
restrictions and de-stocking through the supply chain.
Crude steel production in China increased year on year by 9% to 626Mt. Europe,
Japan and South Korea saw a 24% year on year increase in crude steel production,
bringing total production to 341Mt, slightly below levels achieved in 2008.
Despite the continued strength in iron ore demand in China, a surge in high cost
Chinese domestic iron ore supply, incentivised by high index prices, resulted in
a decrease of 2% to 603Mt in seaborne imports compared to 2009. Global seaborne
iron ore demand increased by 5% to 979Mt, driven by a 19% increase in demand
from the steel industry in the rest of the world.
Iron ore index prices rose strongly in 2010, with the 62% Fe Platts index
averaging approximately US$147/tonne (CFR), up from US$80/tonne in 2009. The
majority of export sales volumes are currently committed to long-term contracts,
which are re-priced on a quarterly basis, and the remainder is sold at index
prices mainly to annual customers and as additional volume to long-term
customers in China.
Operational performance
Total tonnes mined at Sishen Mine increased by 19% from 128.3Mt in 2009 to
153.2Mt, of which waste material mined comprised 67% or 102.0Mt, an increase of
20.0Mt or 24%. Production at Sishen Mine increased by 5% from 39.4Mt in 2009 to
41.3Mt, as the jig plant completed its ramp up achieving 13.3Mt of production
for the year. The improved quality of plant feed material and more efficient
shutdown intervals were the main reasons for the outperformance by the jig
plant. This plant is now set to deliver
13Mtpa going forward. Production from
the Dense Media Separation (`DMS`) plant decreased by 3% to 28.0Mt due to
failures of single line equipment and the availability of feedstock from the
pit. Further increases in waste mining is planned to ensure the required
geological quality of ore is available to be fed to the plants.
The group increased total sales volumes by 8% from 40.0Mt in 2009 to 43.1Mt.
Export sales volumes from Sishen Mine increased by 1.9Mt or 6% from 34.2Mt in
2009 to 36.1Mt, of which volumes to China normalised to 61% (75% during 2009),
representing a decrease of 13% year on year. As demand from Kumba`s traditional
markets normalised, export sales volumes to Europe, Japan and Korea increased by
54% to 13.9Mt. Total domestic sales volumes for the year of 7.0Mt were up by 21%
or 1.2Mt due to higher demand from ArcelorMittal South Africa Limited
(`ArcelorMittal`).
Volumes railed on the Sishen-Saldanha line increased by 5% to 36.5Mt. Transnet`s
overall operating performance was impacted by the industrial action in the
second quarter and a number of derailments in the second and third quarters of
2010. During the fourth quarter rail capacity ramped up and Transnet improved
its performance markedly through increased focus on locomotive maintenance and
the commissioning of new locomotives; railing 33% more volumes than in the third
quarter. The increased production from Sishen Mine and the overall performance
of the rail resulted in a net 1.1Mt increase in the stock level at the mine to
4.7Mt. Kumba loaded 36.7Mt for the export market, an improvement of 6% from the
prior year. This reduced the stock level at the port to 0.9Mt.
Waste mining at Thabazimbi Mine more than doubled to 33.2Mt as the last new pit
was developed as part of the extension of the life of mine to 2016. Production
at Thabazimbi Mine reduced by 19% to 2.0Mt for the year in line with the
progression towards the end of the life of the mine. Domestic sales from the
mine, although impacted by logistics constraints, increased by 0.2Mt due to the
off-take requirements of ArcelorMittal.
Financial results
The group`s total mining revenue (excluding shipping operations - R2.9 billion
in 2010; R3.4 billion in 2009) of R35.8 billion for the year was 79% higher than
the R20.0 billion of 2009. Operating profit increased by 95% from R12.9 billion
to R25.1 billion improving the group`s operating profit margin from 55% in 2009
to 65%. Excluding the margin earned from providing a shipping service to
customers, the group`s mining operating margin increased from 61% in 2009 to
69%. The operating profit achieved was impacted by the implementation of the
South African mining royalty effective from 1 March 2010 as well as the relative
strengthening of the Rand against the US Dollar. Operating expenses (excluding
the royalty expense of R1.4 billion) increased by 16% to R12.2 billion.
Operating profit increased principally as a result of:
A weighted average increase of 92% in iron ore export prices, which added
R18.2 billion to operating profit and a 6% growth in export sales volumes which
contributed R1.0 billion; and
A 21% increase in total domestic sales volumes added R257 million and stronger
domestic prices added R1.2 billion to operating profit.
This increase was offset by:
The strengthening of the average exchange rate of the Rand to the US Dollar
(average exchange rates - R7.30/US$1.00 for 2010 compared with R8.39/US$1.00 in
2009), which reduced operating profit by R4.9 billion;
A R1.8 billion or 24% increase in operating expenses (excluding shipping
expenses and the mining royalty) as a result of the substantial increase in
waste mined at Sishen and Thabazimbi mines, a 3% increase in total volumes
produced, and a 7% increase in total volumes railed which was compounded by an
increase in logistics costs resulting from a five-yearly rail tariff review. The
increase was further due to inflationary pressures and significant increases in
the cost of labour, diesel and electricity;
The commencement of the mining royalty payable for the ten months from March
to December 2010 at an effective rate of 4.9% of free-on-rail (`FOR`) iron ore
revenue, which added R1.4 billion to operating expenditure; and
A R373 million decrease in profit from shipping operations. Total tonnes
shipped by Kumba on behalf of customers decreased by 2.8Mt from 21.5Mt in 2009
to 18.7Mt for 2010, as demand recovered from customers in Europe, Japan and
Korea reducing the shipping opportunity to China.
Despite the 24% increase in waste mining, Sishen Mine`s unit cash cost for the
year was contained at R113.69 per tonne compared to R98.83 per tonne at the end
of 2009, a 15% increase. The increase was driven by increased mining activity
and above inflationary cost increases in diesel, labour and electricity, offset
by a 5% (R5.63/tonne) increase in production over 2009 and stringent cost
control. Kumba remains focused on achieving further benefit from successful cost
management, operational efficiency and revenue enhancement initiatives from its
asset optimisation programmes and participation in the Anglo American Supply
Chain procurement organisation. Cost control continues to be a major focus of
the group as it faces the challenges of increased waste mining at its
operations. The flagship Sishen Mine transformation programme (`Bokamoso`) has
delivered further mining operational efficiency gains and contributed to the
increased production of the mine through improvements in the jig plant yield,
the reduction in the maintenance shutdown period as well as improvements in the
up-current classifier and fine cyclone of the DMS plant. Further value has been
extracted by Kumba through its marketing initiatives to enhance the premia
achieved on its niche lump products. These asset optimisation and procurement
initiatives have delivered:
R1.6 billion in increased revenues and price benefits;
Operating cost containment of R779 million; and
A reduction in capital expenditure of R248 million.
The group continued to generate substantial cash from its operations, with R27.0
billion (before the mining royalty of R1.4 billion) generated during the year,
more than double the R12.7 billion of 2009. These cash flows were used to pay
taxation of R7.0 billion, mining royalties of R1.4 billion and aggregate
dividends of R8.6 billion during 2010. Capital expenditure of R4.7 billion was
incurred, of which
R1.6 billion was to maintain operations and R3.1 billion to expand operations,
mainly on Kolomela Mine. At 31 December 2010 the group was in a net cash
position of R1.7 billion (R3.0 billion net debt at the end of 2009).
Kolomela mine
The development of Kolomela Mine is well advanced in terms of key deliverables
and overall project progress is at 81%. The project remains on budget and on
schedule to deliver initial production at the end of the first half of 2012. To
date 22.6Mt of waste material has been pre-stripped, of which 18.6Mt was mined
during 2010, at a cost of R793 million (R604 million for 2010), which amount has
been capitalised.
Of the R8.5 billion approved capital expenditure, R5.3 billion has been incurred
to date and R1.2 billion has been committed as at 31 December 2010.
Mineral resources and ore reserves
As at 31 December 2010 Kumba has ore reserves estimated at 1.3 billion tonnes at
its three mining operations Sishen, Kolomela and Thabazimbi. Kumba`s estimated
mineral resources in excess of its ore reserves at these three operations as
well as the Zandrivierspoort magnetite project are 1.2 billion tonnes. There has
been an overall 13% increase in Kumba`s ore reserves from 2009 to 2010. This is
predominantly the result of converting more mineral resources into ore reserves
at Sishen Mine after having revised the life of mine plan and increasing the
size of the pit in 2010.
Kumba`s mineral resources (not used for life of mine planning), excluding ore
reserves, showed a significant net decrease of 39% from 2009 to 2010. Besides
the decrease in mineral resources resulting from the bigger pit at Sishen Mine
and the concomitant conversion to ore reserves, the remaining decrease is
attributed to the geological losses quantified during a refined estimation
method applied to the lower-grade jig plant feed material at Sishen Mine.
SIOC applied for a mining right in relation to the 21.4% undivided rights in
respect of the Sishen Mine in May 2009. SIOC was subsequently informed, during
February 2010, that the Department of Mineral Resources (`DMR`) had granted a
prospecting right on 30 November 2009 to Imperial Crown Trading 289
(Proprietary) Limited (`ICT`) in relation to the residual undivided 21.4% right
of the Sishen Mine. SIOC has initiated High Court proceedings to challenge such
decision. SIOC has commenced a process to object to, and appeal against, the
recent decision by the DMR to accept an application by ICT for mining rights in
respect of the residual 21.4% undivided rights (refer to note 11 of the audited
condensed consolidated financial report).
Prospects*
Crude steel production in China is expected to grow between 5% and 10% during
2011. The rate of growth of crude steel production in China is anticipated to
decrease as the Chinese authorities seek further improvements in overall energy
efficiency for the next five-year plan. Domestic iron ore production in China is
unlikely to grow significantly beyond the 2010 level of 285Mt mainly due to
diminishing qualities and increasing mining costs. The additional demand for
iron ore in China during 2011 is expected to be sourced from seaborne supply,
with the demand levels in the rest of the world remaining at 2010 levels.
Shortfalls in seaborne iron ore supply, in particular from India, are
anticipated.
Export sales volumes are anticipated to be in line with volumes achieved during
2010 and are dependent on the performance of the rail and port facilities.
Domestic sales volumes remain dependent on the off-take requirements from
ArcelorMittal, with any ore not taken by ArcelorMittal available for export.
Waste mining at all the operational sites is anticipated to increase, which will
put upward pressure on unit cash costs of production. Annual production volumes
during 2011 are expected to remain at levels achieved during 2010 as the jig
plant has reached its name plate capacity.
Relative to the US Dollar, the South African Rand has strengthened a further 10%
from the end of 2009. Kumba`s operating profit remains highly sensitive to the
Rand/US Dollar exchange rate.
Management focus will be on optimising value of current operations, capturing
value across the value chain and delivering on the group`s growth projects.
*Any reference to future financial performance included in this announcement has
not been reviewed or reported on by the company`s auditors and does not
constitute an earnings forecast.
Changes in directorate
The Board of directors of Kumba announced the following changes in Kumba`s
directorate during the year:
Following the resignation of Dr Nkosana Moyo and Mr Philip Baum as non-
executive directors on 12 January 2010, the company appointed Mr David Weston
and Mr Godfrey Gomwe as non-executive directors on 10 February 2010 and 17 May
2010 respectively.
The resignation of Mr Lazarus Zim as Chairman and non-executive director with
effect from 14 December 2010. The board and management acknowledge and express
appreciation for his able leadership during his tenure as Chairman and wish him
well for the future. Mr Allen Morgan, the senior lead independent director has
been appointed as the Interim Chairman, effective 15 December 2010.
Production and sales report
Total iron ore production decreased by 7% to 10.7Mt in the fourth quarter from a
year earlier, but increased by 3% to 43.3Mt for the year ended 31 December 2010.
The decrease for the quarter was due mainly to a 10% decrease in production to
6.8Mt from the DMS plant during the quarter, which was partially offset by an 8%
increase in production to 3.4Mt from the jig plant.
Export sales for the fourth quarter of 2010 of 9.0Mt increased by 16% from a
year earlier. This was mainly due to improved logistics performance during the
fourth quarter of 2010 and the operational problems experienced at the Saldanha
port due to a stranded vessel in the fourth quarter of 2009. Total export sales
for the year of 36.1Mt were 6% higher than the 34.2Mt sold during 2009.
Yearly overview for the year ended
Unaudited
31 Dec 31 Dec %
`000 tonnes 2010 2009 change
Production summary
Iron ore 43 384 41 943 3
Lump 25 922 25 300 2
Fines 17 462 16 643 5
Mine production 43 384 41 943 3
Sishen Mine 41 337 39 388 5
DMS plant 28 053 28 958 (3)
Jig plant 13 284 10 430 27
Thabazimbi Mine 2 047 2 555 (20)
Sales summary
Total 43 107 40 044 8
Sishen Mine 41 121 38 188 8
Export sales 36 086 34 219 6
Domestic sales 5 035 3 969 27
Thabazimbi Mine 1 986 1 856 7
Quarterly overview for the quarter ended
Unaudited Unaudited
31 Dec 31 Dec % 30 Sept 30 Sept %
`000 tonnes 2010 2009 change 2010 2009 change
Production
summary
Iron ore 10 706 11 466 (7) 10 744 11 330 (5)
Lump 6 274 6 790 (8) 6 434 6 839 (6)
Fines 4 432 4 676 (5) 4 310 4 491 (4)
Mine production 10 706 11 466 (7) 10 744 11 330 (5)
Sishen Mine 10 206 10 705 (5) 10 055 10 651 (6)
DMS plant 6 833 7 586 (10) 6 567 7 755 (15)
Jig plant 3 373 3 119 8 3 488 2 896 20
Thabazimbi Mine 500 761 (34) 689 679 1
Sales summary
Total 10 701 9 247 16 10 462 10 800 (3)
Sishen Mine 10 362 8 818 18 9 702 10 271 (6)
Export sales 8 978 7 729 16 8 292 9 416 (12)
Domestic sales 1 384 1 089 27 1 410 855 65
Thabazimbi Mine 339 429 (21) 760 529 44
Condensed group balance sheet
As at Audited Restated Restated
31 Dec 2010 31 Dec 1 Jan
Rm 2009 2009
Notes Rm Rm
Assets
Property, plant and
equipment 3 15 866 11 568 7 911
Biological assets 6 7 8
Investments in
associates and joint
ventures 29 20 6
Investments held by
environmental trust 372 279 237
Long-term prepayments
and other receivables 53 28 32
Deferred tax assets 472 129 11
Non-current assets 16 798 12 031 8 205
Inventories 3 102 2 559 1 879
Trade and other
receivables 3 096 2 195 2 262
Current tax asset 24 131 547
Cash and cash
equivalents 4 855 891 3 810
Current assets 11 077 5 776 8 498
Total assets 27 875 17 807 16 703
Equity
Shareholders` equity 4 14 338 7 306 6 857
Non-controlling interest 4 038 1 650 1 649
Total equity 18 376 8 956 8 506
Liabilities
Interest-bearing
borrowings 5 3 185 3 859 977
Provisions 672 468 384
Deferred tax liabilities 2 272 2 282 1 990
Non-current liabilities 6 129 6 609 3 351
Short-term portion of
interest-bearing
borrowings 5 - 55 2 881
Short-term portion of
provisions 11 4 310
Trade and other payables 3 274 2 161 1 655
Current tax liabilities 85 22 -
Current liabilities 3 370 2 242 4 846
Total liabilities 9 499 8 851 8 197
Total equity and
liabilities 27 875 17 807 16 703
Condensed group income statement
For the year ended Audited Restated
31 Dec 31 Dec
2010 2009
Notes Rm Rm
Revenue 38 704 23 408
Operating expenses 7 (13 573) (10 528)
Operating profit 7 25 131 12 880
Finance income 149 286
Finance costs (178) (413)
Profit before taxation 25 102 12 753
Taxation (6 813) (3 949)
Profit for the year 18 289 8 804
Attributable to:
Owners of Kumba 14 323 6 992
Non-controlling interest 3 966 1 812
18 289 8 804
Earnings per share for profit
attributable to the owners of kumba
(Rand per share)
Basic 44.66 21.94
Diluted 44.52 21.82
Condensed group statement of comprehensive income
For the year ended Audited Restated
31 Dec 31 Dec
2010 2009
Rm Rm
Profit for the year 18 289 8 804
Other comprehensive losses for the year,
net of tax (217) (316)
Exchange differences on translation of
foreign operations (215) (315)
Net effect of cash flow hedges (2) (5)
Taxation - 4
Total comprehensive income for the year 18 072 8 488
Attributable to:
Owners of Kumba 14 143 6 734
Non-controlling interest 3 929 1 754
18 072 8 488
Condensed group statement of changes in equity
For the year ended Audited Restated
31 Dec 31 Dec
2010 2009
Notes Rm Rm
Total equity at the beginning of the
year 8 956 8 506
Change in accounting policy - share-
based payment classification:
Increase in non-controlling interest - 2
Decrease in retained earnings - (2)
Total equity at the beginning of the
year - restated 8 956 8 506
Changes in share capital and premium
Shares issued during the year 74 132
Treasury shares issued to employees
under employee share incentive
schemes 62 -
Purchase of treasury shares (191) (60)
Changes in reserves
Equity-settled share-based payment 203 134
Vesting of shares under employee
share incentive schemes (63) -
Net asset value of SPV on
deconsolidation 6 (139) -
Change in effective ownership of SIOC 6 (301) -
Total comprehensive income for the
year 14 143 6 734
Dividends paid (6 756) (6 478)
Changes in non-controlling interest
Total comprehensive income for the
year 3 929 1 754
Change in effective ownership of SIOC 6 301 -
Dividends paid (1 834) (1 770)
Movement in non-controlling interest
in reserves (8) 4
Total equity at the end of the year 18 376 8 956
Comprising:
Share capital and premium (net of
treasury shares) 153 208
Equity-settled share-based payment
reserve 487 466
Foreign currency translation reserve 142 318
Cash flow hedge accounting reserve (24) (8)
Retained earnings 13 580 6 322
Shareholders` equity 14 338 7 306
- attributable to the owners of Kumba 13 811 6 811
- attributable to the non-controlling
interest 527 495
Non-controlling interest 4 038 1 650
Total equity 18 376 8 956
Dividend (Rand per share)
Interim 13.50 7.20
Final* 21.00 7.40
* The final dividend was declared after 31 December 2010 and has not been
recognised as a liability in this condensed consolidated financial report. It
will be recognised in shareholders` equity in the year ending 31 December 2011.
Condensed group cash flow statement
For the year ended Audited Restated
31 Dec 31 Dec
2010 2009
Rm Rm
Notes
Cash generated from operations 25 555 12 744
Net finance costs paid (283) (287)
Taxation paid (7 031) (3 232)
Cash flows from operating
activities 18 241 9 225
Capital expenditure (4 723) (3 996)
Proceeds from the disposal of non-
current assets 1 39
Investments in associates and
joint ventures (9) (15)
Net cash outflow on disposal of
subsidiaries (2) -
Acquisition of business - (115)
Cash flows from investing
activities (4 733) (4 087)
Share capital issued 74 132
Purchase of treasury shares (191) (60)
Increase in non-controlling
interest 6 (147) -
Dividends paid (6 714) (6 437)
Dividends paid to non-controlling
shareholders (1 876) (1 811)
Net interest-bearing borrowings
(repaid)/raised (729) 56
Cash flows from financing
activities (9 583) (8 120)
Increase/(decrease) in cash and
cash equivalents 3 925 (2 982)
Cash and cash equivalents at
beginning of year 891 3 810
Exchange differences on
translation of cash and cash
equivalents 39 63
Cash and cash equivalents at end
of year 4 855 891
Headline earnings
For the year ended Audited Restated
31 Dec 31 Dec 2009
2010
Rm Rm
Reconciliation of headline earnings
Attributable profit 14 323 6 992
Net loss/(profit) on disposal and
scrapping of property, plant and
equipment 5 (35)
Net loss on disposal of investment 2 -
14 330 6 957
Taxation effect of adjustments (1) 10
Non-controlling interest in adjustments (1) 5
Headline earnings 14 328 6 972
Headline earnings (Rand per share)
Basic 44.67 21.87
Diluted 44.54 21.76
The calculation of basic and diluted
earnings and headline earnings per
share is based on the weighted average
number of ordinary shares in issue as
follows:
Weighted average number of ordinary
shares 320 727 067 318 742 724
Diluted weighted average number of
ordinary shares 321 691 135 320 431 059
The adjustment of 964 068 shares to the weighted average number of ordinary
shares is as a result of the vesting of share options previously granted under
various employee share incentive schemes.
Salient features and operating statistics
For the year ended Unaudited Unaudited
31 Dec 31 Dec
2010 2009
Share statistics (`000)
Total shares in issue 321 912 320 415
Weighted average number of shares 320 727 318 743
Diluted weighted average number of shares 321 691 320 431
Treasury shares 818 464
Treasury shares (Rand million) 197 62
Market information
Closing share price (Rand) 425 305
Market capitalisation (Rand million) 136 652 97 727
Market capitalisation (US$ million) 20 611 13 224
Net asset value (Rand per share) 44.54 22.80
Capital expenditure (Rand million)
Incurred 4 723 3 996
Contracted 1 727 2 392
Authorised but not contracted 4 965 6 755
Capital expenditure relating to Thabazimbi
mine to be financed by Arcelormittal
Contracted 38 6
Authorised but not contracted 48 31
Operating commitments
Operating lease commitments 104 123
Shipping services 73 99
Economic information
Average Rand/US dollar exchange rate
(ZAR/US$) 7.30 8.39
Closing Rand/US dollar exchange rate
(ZAR/US$) 6.63 7.39
Operating statistics (Mt)
Production 43.3 41.9
Sishen Mine 41.3 39.4
Thabazimbi Mine 2.0 2.5
Sales 43.1 40.0
Export 36.1 34.2
Domestic 7.0 5.8
Sishen Mine 5.0 4.0
Thabazimbi Mine 2.0 1.8
Sishen mine FOR unit cost
Unit cost (Rand per tonne) 128.65 111.12
Cash cost (Rand per tonne) 113.69 98.83
Unit cost (US$ per tonne) 17.62 13.24
Cash cost (US$ per tonne) 15.57 11.78
Notes to the condensed consolidated financial report
1. Corporate information
Kumba is a limited liability company incorporated and domiciled in South Africa.
The main business of Kumba, its subsidiaries, joint ventures and associates is
the exploration, extraction, beneficiation, marketing, sale and shipping of iron
ore. The group has its primary listing on the JSE.
The condensed consolidated financial report of Kumba and its subsidiaries for
the year ended 31 December 2010 was authorised for issue in accordance with a
resolution of the directors on 9 February 2011.
2. Basis of preparation and accounting policies
The condensed consolidated financial report for the year ended 31 December 2010
has been prepared in compliance with the South African Companies Act No 61 of
1973, as amended, and the Listings Requirements of the JSE. The condensed
consolidated financial information has been prepared within the framework
concepts and recognition and measurement requirements of International Financial
Reporting Standards (`IFRS`), the AC500 standards as issued by the Accounting
Practices Board and the information as required by International Accounting
Standard (`IAS`) 34, Interim Financial Reporting.
The condensed consolidated financial report has been prepared in accordance with
the historical cost convention except for certain financial instruments, share-
based payments and biological assets which are stated at fair value, and is
presented in Rand, which is Kumba`s functional and presentation currency.
Except as disclosed below, the accounting policies and methods of computation
applied in the preparation of the condensed consolidated financial report are
consistent with those applied for the year ended 31 December 2009.
The group adopted the following amendments to existing standards with effect
from 1 January 2010.
IFRS 2, Share-based Payment (amendment)
In addition to incorporating IFRIC 8, `Scope of IFRS 2`, and IFRIC 11, `IFRS 2 -
Group and Treasury Share Transactions` into the standard, the amendments expand
on the guidance in IFRIC 11 to address the classification of group arrangements
that were not covered by that interpretation. The amended standard provides that
an entity receiving goods or services in a share-based payment transaction that
is settled by any other entity in the group or any shareholder of such an entity
in cash or other assets is now required to recognise the goods or services
received in its financial statements.
The amendment did not affect the classification of share-based payments in the
consolidated financial statements, but has an impact on the classification of
share-based payments in the stand-alone accounts of its subsidiary, SIOC, with a
consequential impact on the non-controlling interest reported in the
consolidated financial statements.
The amendments to the standard have been applied retrospectively to all employee
share incentive schemes outstanding at the reporting date. The effect on
headline earnings per share was an increase of 9.4 cents and 4.6 cents for the
years ended 31 December 2010 and 2009 respectively.
The effect on earnings and equity is disclosed in the table below:
Audited Restated
31 Dec 31 Dec
2010 2009
Rm Rm
Decrease in earnings attributable to non-
controlling interests for the year 29 15
Increase in earnings attributable to the owners
of Kumba for the year 29 15
Cumulative decrease in total non-controlling
interests disclosed in equity 67 26
Cumulative increase in equity-settled share-
based payment reserve disclosed in equity 24 11
Cumulative increase in retained earnings
disclosed in equity 43 15
Increase in opening non-controlling interests
disclosed in equity - 2
Decrease in opening retained earnings disclosed
in equity - 2
IAS 27 (revised), Consolidated and Separate Financial Statements
The group applied IAS 27 (revised) prospectively to transactions with non-
controlling interests from 1 January 2010.
The revised standard requires the effects of all transactions with non-
controlling interests to be recorded in equity if there is no change in control
and these transactions will no longer result in goodwill or gains or losses. The
standard also specifies the accounting when control is lost. Any remaining
interest in the entity is remeasured to fair value, and a gain or loss is
recognised in profit or loss.
This has resulted in a change in the group`s accounting policies for changes
in ownership interests in subsidiaries, specifically where those changes do
not result in loss of control.
In prior years, the group applied a policy of treating all transactions with
non-
controlling interests as transactions with parties external to the group. That
is, disposals to non-controlling interests resulted in gains and losses
for the group that were recognised in the income statement and purchases from
non-controlling interests resulted in goodwill, being the difference between
any consideration paid and the relevant share acquired of the carrying value
of net assets of the subsidiary. Under IAS 27 (revised), all such increases or
decreases that do not result in loss of control are dealt with in equity, with
no impact on goodwill or profit or loss.
The adoption of the revised Standard has affected the accounting for the
deconsolidation of the SIOC Community Development SPV (Pty) Limited from the
group during the year (refer to note 6).
Annual Improvements Projects: 2008 and 2009
As part of its annual improvements project, the International Accounting
Standards Board (`IASB`) issued a single amendment in 2008 and 15 amendments in
2009 to various issued accounting standards, effective for the reporting period
commencing 1 January 2010. These amendments consist of various necessary, but
non-urgent, amendments to issued accounting standards and interpretations that
will not be part of another major project of the IASB. Kumba adopted these
amendments in 2010, the application of which has not had an effect on the
reported results, with the exception of the amendment to IAS 7, `Statement of
Cash Flows` noted below.
IAS 7, Statement of Cash Flows (amendment)
The guidance provided in IAS 7 has been amended to clarify that only expenditure
that results in a recognised asset in the balance sheet can be classified as a
cash flow from investing activities. This amendment is effective prospectively
for the reporting period commencing 1 January 2010.
Consequently, to the extent that no corresponding asset(s) has been recognised,
the translation effects of cash flows of foreign operations previously disclosed
in the line item `Other` as part of cash flows from investing activities in the
group cash flow statement, has been reallocated to cash flows from operating
activities as well as to the new line item `Exchange differences on translation
of cash and cash equivalents` included on the face of the group cash flow
statement for the year ended 31 December 2010.
Conceptual Framework for Financial Reporting 2010
The Conceptual Framework for Financial Reporting 2010 was issued in September
2010 with no stated effective date and it was therefore effective from the
date of issue. It replaced the Framework for the Preparation and Presentation
of Financial Statements previously in issue and has not had a significant impact
on the reported results for the year ended 31 December 2010.
Early adoption of new standards, amendments and interpretations
The accounting standards, amendments to issued accounting standards and
interpretations, which are relevant to the group, but not yet effective at
31 December 2010, have not been adopted. The group is currently evaluating
the impact of these pronouncements.
3. Property, plant and equipment
The group incurred capital expenditure on property, plant and equipment of R4.7
billion for the year ended 31 December 2010(2009: R4.0 billion).
R3.1 billion (2009: R2.8 billion) was incurred for the expansion of its
operations, mainly on the development of Kolomela Mine, and R 1.6 billion (2009:
R1.2 billion) to maintain its operations, mainly for the acquisition of heavy
mining equipment for Sishen Mine. A total of R1.5 billion (2009: R1.3 billion)
was transferred from assets under construction to machinery, plant and equipment
during the year as these assets were brought into production.
4. Share capital
The group acquired 528 229 (2009: 325 707) of its own shares through purchases
on the JSE during the year. The total amount paid to acquire the shares was R191
million (2009: R60 million). This includes 124 515 shares repurchased for a cash
consideration of R53 million during December 2010 as part of a share repurchase
programme (refer to note 12). The shares are held as treasury shares and the
purchase consideration has been deducted from equity.
210 404 (2009: 293 359) of these shares have been allocated as conditional share
awards under the Kumba Bonus Share Plan. 168 801 (2009: `nil` shares) of these
shares were utilised to redeem conditional awards and share appreciation rights
that have vested under the Long Term Incentive Plan and Share Appreciation
Rights Scheme. The remaining shares are held as treasury shares and the purchase
consideration has been deducted from equity.
During the year, Kumba issued 1 496 640 shares (2009: 953 660 shares) to the
Management Share Option Scheme Trust. Options exercised by participating
employees resulted in 1 480 962 shares being issued (2009: 2 610 960 shares)
under the Management Share Option Scheme during the year ended 31 December 2010.
The related exercise proceeds was R74 million (2009: R132 million).
5. Interest-bearing borrowings
Kumba`s net debt position at balance sheet dates was as follows:
Audited Restated
31 Dec 31 Dec
2010 2009
Rm Rm
Long-term interest-bearing borrowings 3 185 3 859
Short-term interest-bearing borrowings - 55
Interest-bearing borrowings 3 185 3 914
Cash and cash equivalents (4 855) (891)
Net (cash)/debt (1 670) 3 023
Total equity 18 376 8 956
Interest cover (times) 77 43
Movements in interest-bearing borrowings are analysed as follows:
Audited Audited
31 Dec 31 Dec
2010 2009
Rm Rm
Opening balance as at 1 January 3 914 3 858
Debt raised 4 771 2 881
Repayment of borrowings (5 500) (2 825)
Closing balance 3 185 3 914
At 31 December 2010 R3.2 billion of the total R8.6 billion long-term debt
facilities has been drawn down to finance Kumba`s expansion. As a result of the
strong cash flow generation of the group due to higher export iron ore prices
and sales volumes, Kumba was able to repay a net amount of R1 729 million drawn
down against its R5.4 billion term debt facility during the current year. Kumba
was not in breach of any of its covenants during the year. The group had undrawn
long-term borrowing and uncommitted short-term facilities at 31 December 2010 of
R9.3 billion (2009: R8.1 billion).
6. SIOC Community Development SPV (Pty) Limited
On 17 August 2010 the SIOC Community Development SPV (Pty) Limited (`the SPV`)
redeemed the remaining R38 million of the R458 million redeemable preference
shares issued by the SPV to facilitate the acquisition of its 3% shareholding in
SIOC, in September 2006.
The SPV was previously consolidated into Kumba as a special purpose entity, and
the SPV`s 3% shareholding in SIOC formed part of Kumba`s controlling interest in
SIOC. At the redemption of the outstanding preference shares by the SPV, the
control over the SPV that was established in terms of the preference share
agreement, ceased and Kumba consequently deconsolidated the SPV effective from
this date. The non-controlling interest in SIOC increased by 3% and the
controlling and non-controlling interests were adjusted to reflect the changes
in the relative interests in SIOC.
The change in non-controlling interest was recognised directly in equity and
attributed to the owners of Kumba as no consideration was received by Kumba.
This transaction resulted in an increase of R301 million in non-controlling
interest with a corresponding decrease in the following reserves:
Rm
Equity-settled share-based payment reserve 16
Foreign currency translation reserve 11
Cash flow hedge accounting reserve 1
Retained earnings 273
TOTAL 301
Deconsolidation of the SPV:
As at
17 Aug
2010
Rm
Cash and cash equivalents held by the SPV 147
Other payables (8)
Net asset value of SPV on deconsolidation 139
Vesting of IFRS 2 share-based payment reserve (153)
Reallocated to retained earnings on deconsolidation (14)
7. Significant items included in operating profit
Operating expenses
Operating expenses is made up as follows:
Audited Audited
12 months 12 months
31 Dec 31 Dec
2010 2009
Rm Rm
Production costs 7 029 5 601
Movement in inventories (459) (600)
- Finished products (171) (440)
- Work-in-progress (288) (160)
Cost of goods sold 6 570 5 001
Mining royalty 1 410 -
Selling and distribution costs 3 041 2 838
Cost of services rendered - shipping 2 560 2 697
Sublease rent received (8) (8)
Operating expenditure 13 573 10 528
Operating profit has been derived after taking into account the following items:
Audited Audited
12 months 12 months
31 Dec 31 Dec
2010 2009
Rm Rm
Employee expenses 2 078 1 672
Share-based payment expenses 206 142
Depreciation of property, plant and
equipment 765 530
Net loss/(profit) on disposal and scrapping
of property, plant and equipment 5 (35)
Net loss on disposal of investment 2 -
Finance gains (286) (329)
Gains on derivative financial instruments (636) (736)
Foreign currency losses 350 407
Operating expenses capitalised (581) (181)
8. Segmental reporting
The Kumba executive committee considers the business principally according to
the nature of the products and service provided, with the identified segments
each representing a strategic business unit.
The total reported segment revenue comprises revenue from external customers as
the group does not have any inter-segment revenue and is measured in a manner
consistent with that disclosed in the income statement.
The performance of the operating segments are assessed based on a measure of
earnings before interest and tax (`EBIT`), which is consistent with `Operating
profit` in the financial statements. Finance income and finance costs are not
allocated to segments, as treasury activity is managed on a central group basis.
Total segment assets comprise finished goods inventory only, which is allocated
based on the operations of the segment and the physical location of the asset.
`Other segments` comprise corporate, administration and other expenditure not
allocated to the reported segments.
Thabazimbi
Sishen Mine Mine
Year ended 31 December 2010 Rm Rm
Revenue (from external customers) 35 159 666
EBIT 25 540 (44)
Total segment assets 682 306
Year ended
31 December 2009
Revenue (from external customers) 19 473 543
EBIT 12 677 44
Total segment assets 724 240
Kolomela Shipping
Mine1 Operations Total
Year ended 31 December 2010 Rm Rm Rm
Revenue (from external customers) - 2 879 38 704
EBIT - 319 25 815
Total segment assets - - 988
Year ended 31 December 2009
Revenue (from external customers) - 3 392 23 408
EBIT - 675 13 396
Total segment assets - - 964
1 Kolomela Mine represents a strategic business unit for Kumba, although it
does not yet qualify as a reportable segment in terms of IFRS 8, Operating
Segments. The development of the mine is well advanced in terms of key
deliverables and remains on budget and on schedule to deliver initial production
at the end of the first half of 2012.
Revenue from external customers analysed by goods and services
Audited Audited
12 months 12 months
31 Dec 31 Dec
2010 2009
Rm Rm
Sale of products * 35 825 20 016
Shipping services 2 879 3 392
Total revenue 38 704 23 408
*Derived from extraction, production and
selling of iron ore
Reconciliation of EBIT to total profit
before taxation
EBIT for reportable segments 25 815 13 396
Other segments (684) (516)
Operating profit 25 131 12 880
Net finance costs (29) (127)
Profit before taxation 25 102 12 753
Reconciliation of reportable segments` assets to total assets
Audited Audited
12 months 12 months
31 Dec 31 Dec
2010 2009
Rm Rm
Segment assets for reportable segments 988 964
Other segments and WIP inventory 2 114 1 595
Inventory per balance sheet 3 102 2 559
Other current assets 7 975 3 217
Non-current assets 16 798 12 031
Total assets 27 875 17 807
Geographical analysis
Kumba is domiciled in South Africa. The result of its revenue from external
customers and its non-current assets disclosed on a geographical basis, are set
out below.
Total revenue from external customers
Audited Audited
12 months 12 months
31 Dec 31 Dec
2010 2009
Rm Rm
South Africa 2 874 1 359
Export 35 830 22 049
China 23 112 16 770
Rest of Asia 7 465 3 128
Europe 4 896 2 151
Middle East 300 -
South America 57 -
38 704 23 408
Total non-current assets *
South Africa 16 243 11 853
China 2 1
16 245 11 854
* Excluding prepayments, investments in associates and joint ventures and
deferred tax assets.
9. Related party transactions
During the year, Kumba, in the ordinary course of business, entered into various
sale and purchase transactions with associates, joint ventures and its holding
company. These transactions were subject to terms that are no less favourable
than those offered by third parties.
Included in cash and cash equivalents at 31 December 2010 is a short-term
deposit facility placed with Anglo American SA Finance Limited of R1 391 million
(2009: Rnil).
10. Contingent assets and liabilities
10.1 Faleme Project
Kumba initiated arbitration proceedings against La Societe des Mines De Fer Du
Senegal Oriental (`Miferso`) and the Republic of Senegal under the rules of the
Arbitration of the International Chamber of Commerce in 2007, in relation to the
Faleme Project.
Following the arbitration award rendered in July 2010, a mutually agreed
settlement was concluded between the parties. The parties agreed that the
precise terms of the settlement agreement will remain confidential. The net
settlement amount will be recovered from the Republic of Senegal equally over
the five year period from 2011, on which contingent legal costs will be payable.
A portion of the amount recovered will be committed over a five year period to
social and community development projects to benefit the population of Senegal.
10.2 Environmental obligations
During January 2010 SIOC issued financial guarantees to the Department of
Mineral Resources (`DMR`) to the value of R567 million in respect of the
environmental rehabilitation and decommissioning obligations of Sishen Mine.
There have been no other significant changes in the contingent liabilities
disclosed at 31 December 2009.
11. Legal proceedings
Sishen Supply Agreement arbitration
SIOC notified ArcelorMittal on 5 February 2010, that it was no longer entitled
to receive 6.25Mtpa of iron ore contract mined by SIOC at cost plus 3% from
Sishen Mine, as a result of the fact that ArcelorMittal had failed to convert
its old order mining rights. This contract mining agreement, concluded in 2001,
was premised on ArcelorMittal owning an undivided 21.4% interest in the mineral
rights of Sishen Mine and as a result of ArcelorMittal`s failure to convert its
old order mining right, the contract mining agreement automatically lapsed and
became inoperative in its entirety as of 1 May 2009.
As a result, a dispute arose between SIOC and ArcelorMittal, which SIOC has
referred to arbitration. SIOC and ArcelorMittal reached an interim pricing
arrangement in respect of the supply of iron ore to ArcelorMittal from the
Sishen Mine. This arrangement will endure until 31 July 2011.
Both parties have exchanged their respective pleadings, and the arbitration
panel has been appointed.
21.4% undivided share of the Sishen Mine mineral rights
After ArcelorMittal failed to convert its old order rights, SIOC applied for the
residual 21.4% mining right previously held by ArcelorMittal and its application
was accepted by the DMR on 4 May 2009. A competing application for a prospecting
right over the same area was also accepted by the DMR. SIOC objected to this
acceptance. Notwithstanding this objection, a prospecting right over the 21.4%
interest was granted by the DMR to Imperial Crown Trading 289 (Pty) Limited
(`ICT`).SIOC initiated a review application in the North Gauteng High Court on
21 May 2010 in relation to the decision of the DMR to grant a prospecting right
to ICT.
SIOC initiated an application on 14 December 2010 to interdict ICT from applying
for a mining right in respect of the Sishen Mine and the DMR from accepting an
application from ICT or granting such 21.4% mining right to ICT pending the
final determination of the review application. This application is currently
pending.
The DMR informed SIOC on 12 January 2011 that ICT had applied for a 21.4% mining
right over Sishen Mine on 9 December 2010, and that the DMR had accepted this
application on 23 December 2010. The DMR`s acceptance of the application means
that the mining right application will now be evaluated according to the
detailed process stipulated in the Mineral Resources & Petroleum Development Act
2004 before a decision is made as to whether or not to grant the mining right.
SIOC does not believe that it was lawful for the DMR to have accepted ICT`s
application, pending the High Court Review initiated in May 2010, and has
formally objected to and appealed against the DMR`s acceptance of ICT`s mining
right application. SIOC has also requested that its interdict application be
determined on an expedited basis, in order to prevent the DMR from considering
ICT`s mining rights application until the finalisation of the review
proceedings.
In addition, SIOC is in the process of challenging the DMR`s decision of 25
January 2011 to reject SIOC`s May 2009 application to be granted the residual
21.4% mining right. Finally, on 26 January 2011, SIOC lodged a new application
for the residual 21.4% mining right.
On 4 February 2011, SIOC made an application to join ArcelorMittal as a
respondent in the review proceedings.
SIOC will continue to take the necessary steps to protect its shareholders`
interests in this regard.
Lithos Corporation (Pty) Limited (`Lithos`)
Lithos is claiming US$421 million from Kumba for damages in relation to the
Faleme project in Senegal. Kumba continues to defend the merits of the claim and
is of the view, and has been so advised, that the basis of the claim and the
quantification thereof is fundamentally flawed. The trial date has been
postponed indefinitely. No liability has been recognised for this litigation.
12. Post balance sheet date events
Kumba entered into a general repurchase programme to repurchase ordinary shares
which continued into its closed period. This closed period commenced on 31
December 2010 and ended with the release of the company`s annual results. In
terms of the programme the broker has been mandated to repurchase 349 800
ordinary shares in the share capital of the company at prices not exceeding a
premium of 10% to the volume weighted average trading price of the company`s
ordinary shares over the five trading days preceding any particular repurchase
from time to time. The repurchases were effected within the limits of the
programme, as per the special resolution approved by shareholders at the annual
general meeting held on 31 March 2010 and the JSE. During the period before 31
December 2010 Kumba purchased 124 515 shares (refer to note 4) and the remaining
225 285 shares under the programme were purchased subsequent to 31 December 2010
for a cash consideration of R99 million. The shares repurchased will reduce the
dilution impact of the vesting of share schemes in 2011.
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.
13. Corporate governance
The group subscribes to the Code of Good Corporate Practices and Conduct as
contained in the King II report on corporate governance. The Board has satisfied
itself that Kumba has complied with the Code throughout the period under review
in all material aspects. The Board is currently in the process of implementing
the recommendations of the King III Report.
14. Independent audit opinion
The auditors, Deloitte & Touche, have issued their opinion on the consolidated
annual financial statements for the year ended 31 December 2010. The audit was
conducted in accordance with International Standards on Auditing. They have
issued an unmodified audit opinion. These condensed consolidated financial
statements have been derived from the consolidated annual financial statements
and are consistent in all material respects with the consolidated annual
financial statements. A copy of their audit report is available for inspection
at the company`s registered office. Any reference to future financial
performance included in this announcement has not been reviewed or reported on
by the company`s auditors.
On behalf of the Board
AJ Morgan CI Griffith
Interim Chairman Chief Executive Officer
9 February 2011
Pretoria
Notice of final cash dividend
At its Board meeting on 9 February 2011 the directors declared a final cash
dividend of R21.00 per share on the ordinary shares from profits accrued during
the year ended 31 December 2010. The salient dates are as follows:
Last day for trading to qualify and
participate in the final dividend (and
change of address or dividend
instructions) Friday, 11 March 2011
Trading ex dividend commences Monday, 14 March 2011
Record date Friday, 18 March 2011
Dividend payment date Tuesday, 22 March 2011
Share certificates may not be dematerialised or rematerialised between Monday,
14 March 2011 and Friday, 18 March 2011, both days inclusive.
By order of the Board
VF Malie 9 February 2011
Company secretary Pretoria
Registered office: Centurion Gate, Building 2B, 124 Akkerboom Road, Centurion,
0157, Republic of South Africa
Tel: +27 12 683 7000 Fax: +27 12 683 7009.
Directors: Non-executive: AJ Morgan (interim chairman), GS Gouws, PB Matlare, DD
Mokgatle, ZBM Bassa, D Weston G Gomwe.
Executive: CI Griffith (chief executive officer), VP Uren (chief financial
officer).
Company secretary: VF Malie
Transfer secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Johannesburg, Republic of South Africa, PO Box 61051,
Marshalltown, 2107.
Sponsor to Kumba: Rand Merchant Bank (a division of FirstRand Bank Limited).
Date: 10/02/2011 08:00:01 Produced by the JSE SENS Department.
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