2025 Integrated annual report
Key features for F2025
World-class safety performance
Robust free cash flow generation
Iron ore contributed 77% to the group segmental EBITDA
Total iron ore production volumes were up 3%
Average realised export iron ore price down 15%
Total manganese ore production was up 4%
Significant points
  • Increase in production volumes for iron ore and manganese ore
  • Improved water supply to Khumani Mine
  • Improved unit cash cost growth

Scorecard

Khumani Mine Iron ore

F2025 OBJECTIVES
  • Ensure LTIFR below tolerance level of 0.20 per 200 000 man-hours.
  • Production planned at 12.5 million tonnes to accommodate Transnet's deteriorating performance.
  • Lump production ratio of 56%.
  • King Pit mining ratio to be maintained at 65%.
  • Sales volumes planned lower at 12.3 million tonnes to accommodate risk of Transnet's performance during F2025.
  • Target unit cash cost (pre-charge out cash cost on-mine) increases below inflation to maintain competitiveness at R510/tonne for F2025.
ACHIEVED/NOT ACHIEVED

Achieved

  • LTIFR of 0.15 per 200 000 man-hours.

Not achieved

  • 12.3 million tonnes achieved, which was below plan, mainly due to water-supply shortage in October and November 2024.

Achieved

  • Lumpy ratio of 56.8%.

Achieved

  • Total ex-pit ore mining from the King Pit was 64.86%.

Not achieved

  • Sales volumes were 12.279 million tonnes.

Achieved

  • At R491/tonne.
F2026 OBJECTIVES
  • Ensure LTIFR below a tolerance level of 0.20 per 200 000 man-hours.
  • Production planned at 12.3 million tonnes to accommodate Transnet's deteriorating performance.
  • Lump production ratio of 56%.
  • King Pit ex-pit ore mining ratio to be increased to 70%.
  • Sales volumes planned lower at 12 million tonnes to accommodate risk of Transnet's performance during F2026.
  • Target unit cash cost (pre-charge out cash cost on mine) increases to R542/tonne for F2026, mainly due to above-inflation electricity rates increase and increased waste mining volumes required.

Beeshoek Mine Iron ore

F2025 OBJECTIVES
  • Ensure LTIFR below tolerance level of 0.15 per 200 000 man-hours.
  • Achieve production of 2.2 million tonnes per annum.
  • Achieve sales of 2.2 million tonnes per annum
  • No export sales.
  • Targeting unit cash cost increases of 6%.
ACHIEVED/NOT ACHIEVED

Achieved

Achieved

Not achieved

  • No long-term contract
  • Local customer reduced offtake.

Not achieved

  • Mostly due to applying different plans over the financial year to reduce the impact of risks relating to the offtake by the local customer and deviation of rightsizing workforce compared to plan.
F2026 OBJECTIVES
  • Ensure LTIFR below tolerance level of 0.15 per 200 000 man-hours.
  • Achieve production of 948 000 until 31 October 2025.
  • No export sales.
  • Reduce planned unit cash cost per plan by 2%.

Black Rock Mine Manganese ore

F2025 OBJECTIVES
  • Ensure LTIFR below tolerance level of 0.25 per 200 000 man-hours.
  • Target saleable production volumes of 4 050 000 tonnes.
  • Deliver export sales volume of 3.6 million tonnes for F2025.
  • Targeting unit production cost increases of 8%.
ACHIEVED/NOT ACHIEVED

Achieved

  • Final LTIFR of 0.14.

Not achieved

  • Saleable production was 3.8 million tonnes due to the impact of the fatality in Q4 of F2025.

Achieved

  • Export sales volumes were 3.7 million tonnes.

Not achieved

  • Unit production cost increased by 9%.
F2026 OBJECTIVES
  • Ensure LTIFR below 0.20 per 200 000 man-hours.
  • Target production volumes of 4 million tonnes.
  • Deliver export sales volume of 3.7 million tonnes to accommodate risk of Transnet's performance during F2026.
  • Targeting unit production cost increase of 9%, negatively impacted by logistics constraints.

Cato Ridge Works Manganese alloy

F2025 OBJECTIVES
  • Ensure LTIFR below tolerance level of 0.17 per 200 000 man-hours.
  • Ensure over 80% of medium-carbon ferromanganese alloy produced is at a grade of 80% and above.
  • Secure alternate supply of carbonaceous fines to ensure good quality sinter.
  • Ensure zero valid customer complaints for both high-carbon and medium-carbon ferromanganese.
ACHIEVED/NOT ACHIEVED

Achieved

  • LTIFR was 0 per 200 000 man-hours.

Achieved

  • Only 1.05% of total production was produced to off-grade stockpiles.

Achieved

  • Supply of alternate material was obtained.

Achieved

  • Zero customer complaints.
F2026 OBJECTIVES
  • Ensure LTIFR below tolerance level of 1.90 per 200 000 man-hours. This equates to one lost-time injury.
  • None – due to plant closure.
  • None – due to plant closure.
  • Zero customer complaints.

Sakura Ferroalloys Manganese alloy

F2025 OBJECTIVES
  • Maintain safety performance, ensuring LTIFR below tolerance level of 0.18 per 200 000 man-hours.
  • Target production volumes of 245 000 tonnes.
  • Target sales volumes of 246 000 tonnes.
  • Maintain furnace efficiencies and improve unit costs by implementing cost-saving initiatives.
  • Complete construction and commissioning of sinter plant by end-December 2024.
ACHIEVED/NOT ACHIEVED

Achieved

  • Sakura recorded zero LTIs for the year.

Not achieved

  • Production volumes of 221 999 tonnes below plan, mainly due to furnace 1 being shut down for 47 days over March 2025 to perform opportunity maintenance and manage working capital balances.

Not achieved

  • Sales volumes of 220 508 tonnes below plan due to roughly 17 000 tonnes of spot sales not materialising, compounded by 6 000 tonnes lower Japanese sales volumes as steel demand reduced in this region.

Achieved

  • Ore efficiencies decreased by 3.0%, while reductant efficiencies increased by 2.7% as alternative high-grade ores were consumed, as Gemco was not available, which resulted in some instabilities requiring additional reductants. Ongoing cost-saving initiatives realised savings of over MYR3 million.

Not achieved

  • Sinter plant only commissioned in June 2025 after delays with final installation of certain equipment. Ramp-up is progressing well and cost savings should be maximised in the first half of the new financial year.
F2026 OBJECTIVES
  • Maintain safety performance, ensuring LTIFR below tolerance level of 0.18 per 200 000 man-hours.
  • Target production volumes of 232 000 tonnes.
  • Target sales volumes of 244 000 tonnes.
  • Maintain furnace efficiencies and improve unit costs by implementing cost-saving initiatives.
  • Maximise cost savings on the sinter plant by producing higher design capacity for the year and optimising recipes to increase Sakura sinter consumption on the furnaces while converter is being constructed.