Themba Mkhwanazi, Chief Executive of Kumba, said, 'Kumba's strategy has helped deliver exceptional earnings growth, as we continue to increase the resilience of the business.

Against challenging operational conditions, we marked another year of strong financial performance with EBITDA up by 62% to R33.4 billion. Our financial performance reflects the benefits of higher iron ore prices, improved efficiencies and further cost savings ahead of our target, which have cushioned the impact of the operational challenges experienced during the period. These results were also achieved through a relentless focus on safety as we maintained our fatality free track record since May 2016. Our commitment to responsible production, focused on unlocking value from our world-class assets, has in turn allowed us to help build thriving communities and improve people's lives.

'Kumba's EBITDA margin increased to 52% and cash flow from operations is up by 79% to R34.7 billion. Kumba's strong performance and robust balance sheet, resulted in the Board declaring a final cash dividend of R15.99 per share. Combined with the interim dividend of R30.79 per share, this represents a total payout ratio of 92% of headline earnings per share for 2019, in excess of our 50% to 75% dividend payout policy. In total we have created value of R19.6 billion for shareholders this year.

'Since embarking on our margin enhancement strategy, Kumba's return on capital employed has improved from 49% in 2018 to 83% in 2019, reflecting favourable markets and the continued success of our value over volume strategy. We are focused on optimising the value of our assets, generating strong cash flows and further improving returns. Kumba has transformed into a more capital efficient and resilient business, providing greater stability for our employees, contractors and the communities around us, as well as delivering sustainable returns to our shareholders.'

Contact:

Penny Himlok

Tel: +27 (0) 12 622 8324

Email: Penny.himlok@angloamerican.com

Notes to editors

Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality iron ore to the global steel industry. Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the Northern Cape Province. Kumba exports iron ore to customers in a range of geographical locations around the globe including China, Japan, Korea and a number of countries in Europe and the Middle East.

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world - safely, responsibly and sustainably.

As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our business partners and diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.

(C) 2020 Electronic News Publishing, source ENP Newswire