Financial highlights

Outstanding safety performance continuesLTIFR of 0.08

Sishen Mine productionup 14% to 18Mt

Export sales volumes up 29% to 17.1Mt

Unit cash cost contained at R104/tonne

Operating profit up 31% to R6.8bn

Interim cash dividendR7.20 per share

Commentary

Highlights

Highlights In the current global economic climate Kumba’s fi nancial results for the period continue to refl ect its strength as an iron ore supplier. Notwithstanding lower export volumes to Europe and Japan, the group’s revenue increased by 33% to R12.0 billion on the back of higher sales volumes into China, which was partially offset by lower iron ore export prices. Kumba maintained its operating profi t margin, through cost management and a weaker Rand exchange rate, at 57% for the six months (62% from mining activities), down 1% from 58% (63% from mining activities) in 2008. Profi t for the six months ended 30 June 2009 was R4.3 billion, an increase of 23% from R3.5 billion in 2008, while headline earnings increased by 22% from R2.8 billion to R3.4 billion. Cash generated by operations for the period increased to R7.5 billion, up 63% compared to the R4.6 billion generated during 2008.

Attributable and headline earnings for the six months were R10.81 per share and R10.76 per share respectively, on which an interim cash dividend of R7.20 per share has been declared.

Safety performance

It is with regret that the group reports a fatality for the period when Mr Tebogo David Marope, a 23 year old contractor of Concor, was fatally injured during road construction at the Sishen South Project on 28 January 2009.

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