Shareholder returns

Share price

Kumba’s share price has shown a marked increase in the year, growing 88% from the closing price of R162 at 31 December 2008 to R305 at 31 December 2009. Kumba outperformed the mining index of the JSE Limited during the year by some 41%.

Dividends

Attributable and headline earnings for the year were R21.88 per share and R21.82 per share respectively. The board reviewed the cash flow generation, growth plans and the capital structure of Kumba and approved a final dividend of R7.40 per share (interim dividend R7.20 per share), bringing the total dividend for the year to R14.60, thereby maintaining a dividend cover of 1.5 times earnings.

Shareholder return

A shareholder who purchased a Kumba share on unbundling in November 2006 at R110 per share would have received R43.90 in dividends (including the 2009 final dividend of R7.40 per share) and earned R195 in capital appreciation until 31 December 2009, based on a closing price of R305 per share on this date.

CUMULATIVE SHAREHOLDER RETURN (RAND PER SHARE)

Empowerment

Dividends paid by SIOC since 2006 has ensured that our BEE shareholders are now in the position to redeem substantial portions of their original funding. It is anticipated that the community development trust will have redeemed its full funding during 2010, only four years since the transaction, and will then own an unencumbered 3% of SIOC, which at current market values is approximately R3.5 billion.

Our employees who own 3% of SIOC through a broad-based employee share participation scheme have received R125 million in dividends over the past three years and the remaining R570 million of dividends received by the scheme has been used to reduce the original funding and interest. Over 5 000 employees currently participate in the scheme valued at approximately R2.3 billion after taking into account the scheme’s funding.