Revenue

Kumba’s revenue increased by 10% to R23.4 billion on the back of a 37% increase in export sales volumes driven by strong demand from China. The increase in revenue from higher volumes more than offset the average 40% reduction in benchmark iron ore export prices.

Revenue generated from the sale of iron ore increased by 6% from R18.9 billion to R20.0 billion, with R18.7 billion (2008: R17.5 billion) from export sales. Revenue from shipping services increased by 41% from R2.5 billion to R3.4 billion.

The group increased total sales volumes by 21% from 33.0Mt in 2008 to 40.0Mt. Export sales volumes from Sishen Mine for the year increased by 9.3Mt or 37% from 24.9Mt in 2008 to 34.2Mt on the back of increasing volumes from the Jig plant, the successful introduction of a new blended fines product and an increase in demand from China. Export sales volumes to China totalled 75% (2008: 43%) of total export volumes for the year. Total domestic sales volumes of 5.8Mt were down by 28% or 2.3Mt due to lower demand from ArcelorMittal.

The 10% increase in revenue over last year was principally as a result of:

• Increased export sales volumes, contributed R6.6 billion to revenue, offset by the year-on-year decrease in export iron ore prices, reducing revenue by R5.4 billion, and lower domestic sales volumes due to the decline in domestic demand, which reduced revenue by R377 million. The net effect of these factors on revenue was a net increase of R822 million.