UNAUDITED GROUP INTERIM RESULTS

PRESENTATION 2004For the six months ended 31 December 2003

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

2

CON FAUCONNIERCHIEF EXECUTIVE

HARNESSING THE POWER OF THE EARTH

3

178

207

152

112

82

1H02 2H02 1H03 2H03 1H04

KEY FINANCIALS

Revenue R 3 962m

Net operating profit

R 566m

Headline earnings R 243m

Headline earnings per share

82 cents

Interim dividend per share

20 cents

Sound performance despite challenging environment

Headline EPS

4

HIGHLIGHTS

• Improved safety performance

• Solid operating performance from all businesses

• Successful start for second furnace at Empangeni

• Substantial strengthening of the rand (30%) mitigated by

• Favourable commodity markets

• Strong sales volumes

• Good cost control

Solid operating performance

5

RAND STRENGTH AND COSTS

• Currency impact: 10c R 41 m EBIT

• Cost impact:

• administered prices

• fuel

• Ongoing cost and revenue focus

Bottom line impacted by exchange rate

R10.08

R7.04

average realised:

2H02 2H031H03 1H044

5

6

7

8

9

10

11

12

13R/US$

6

SHAREHOLDER ISSUES

• Change in shareholding

• Competition Tribunal - 5 Sep 2003

• Anglo offer to minorities - 31 Oct 2003

• Result: 66.6% - 8 Dec 2003

• Way forward

• Support for Kumba growth strategy

• Board of directors

7

MIKE KILBRIDEEXECUTIVE DIRECTOR OPERATIONS

HARNESSING THE POWER OF THE EARTH

8

SAFETY, HEALTH & ENVIRONMENT

• No fatalities for the period - unfortunately 1 in Jan 2004

• Lost day injury frequency at all time low

• Strategy to achieve international safety and environmental certification at all operations by Dec 2004

Lost day injury frequency rate*

Zero tolerance… key focus

4.59

3.13 3.00

1.91

FY

01

FY

02

FY

03

1H04

* per million man hours worked

9

IRON ORE MARKETS

• World seaborne trade increased by 50 Mtpa

• Continued growth of Chinese imports

• Strong domestic sales

• 18.62% price increase

• Freight costs soar

Chinese market continues to drive growth

Global seaborne market

Source: CRU

0

100

200

300

400

500

600

'98

'99

'00

'01

'02

'03

Mt

China's contribution

[cut off this line]

10

IRON ORE OPERATIONS

• Continued growth in production

• New calendar year record at Sishen - 27.1 Mt

• Due to high exports of FY03, low stocks at Saldanha influenced exports in 1H04

New production record

Total production and exports

8

10

12

14

16

1H02 2H02 1H03 2H03 1H04

Mt

Export sales Production

11

OREX RAIL PERFORMANCE

• Excellent operating efficiencies

• Continued growth in tonnage railed

• Capacity expansion to 29 Mt in 2004

Expansion critical for further growth in exports

Sishen-Saldanha rail performance

0

5

10

15

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Kumba Other

TargetActual

12

COAL MARKETS

• International coal prices influenced by:

• Strong demand for thermal coal

• Shortage in supply of coking coal

• Thermal coal supply to Matimba at record levels

• Strong local demand from the metals market

Thermal coal and coke prices (US$/t)

Sources: SA Coal Report, CRU

Strong demand-driven market

20

30

40

50

Ju

l '01

Jan

'02

Jul '

02

Jan

'03

Jul '

03

Jan

'04

50

100

150

200

RBCT thermal coal FOB

Chinese market coke exports

13

COAL OPERATIONS

• Record production at Grootegeluk and Leeuwpan

• Strong focus on cost control

Production volumes

5

6

7

8

9

10

1H02 2H02 1H03 2H03 1H04

Mt

Grootegeluk Leeuwpan

Tshikondeni

Valuable earnings contributor

14

HEAVY MINERALS MARKETS

• Signs of recovery in pigment market

• Titania slag market over-supplied and under pressure

• Zircon and rutile demand extremely strong due to Chinese growth

Zircon and pigment prices (US$/t)

Source: TZMI

Gradual recovery in some segments

360

380

400

420

440

Q4

2001

Q2

2002

Q4

2002

Q2

2003

Q4

2003

1000

1200

1400

1600

1800

Zircon Pigment

15

HEAVY MINERALS OPERATIONS

• Furnace 2 successfully commissioned in Sep 2003

• Furnace ramp-up ahead of schedule

• First chloride slag sales -12 kt

• Record synthetic rutile production from Tiwest JV - 112 kt

World no 3 in TiO2 units

% of design capacity

Ilmenite feed rate - Ticor SA

10%

20%

30%

40%

50%

60%

70%

80%

1 2 3 4 5 6 7 8 9Months since commissioning

planned furnace 1 furnace 2

16

ZINC MARKETS

• Strong US$ price recovery

• Strong currency depressed Rand earnings

• Lower treatment charges impacted on results

LME Zinc metal price

Treatment charge revenue

0255075

100

1H02 2H02 1H03 2H03 1H04

Rebound in US$ zinc price

indexed: 100=1H02

700750800850900950

1000

1H02 2H02 1H03 2H03 1H04

US$/t

5000

6000

7000

8000

9000

10000ZAR/t

17

BASE METALS OPERATING RESULTS

• Production marginally lower due to planned maintenance shut

• Record Zn concentrate output

Zn metal (kt)

Rosh Pinah

Zn conc. (kt)

Zincor

Continued improvement at Rosh Pinah

54

51

58 5755

1H02 2H02 1H03 2H03 1H04

37 38 37

54 54

1H02 2H02 1H03 2H03 1H04

18

INDUSTRIAL MINERALS

Dolomite sales (Mt)

FeSi production

(t)• On track to match

record FeSi production of FY03

• Growing external sales of FeSi

• Sustained dolomite sales despite weak domestic growth

0.66 0.650.67

0.65 0.66

1H02 2H02 1H03 2H03 1H04

19182415 2647 2703 2671

1H02 2H02 1H03 2H03 1H04

19

DIRK VAN STADENEXECUTIVE DIRECTOR FINANCE

HARNESSING THE POWER OF THE EARTH

20

REVENUE

R million 1H04 1H03 % Change

Iron Ore 1 814 2 259 (20)

Coal 855 815 5)

Base Metals 471 485 (3)

Heavy Minerals - Ticor SA - Ticor Ltd

153623

152-

Industrial Minerals 43 39 10)

Other 3 20 (85)

Total 3 962 3 770 5)

US$/R exchange rate realised 7.04 10.08)

Ticor consolidated from 1 April 2003

21

OPERATING PROFIT / MARGIN

1H04 1H03 % Change

Rm) (%) Rm) (%) (in Rand)

Iron Ore 299) 16) 517) 23 (42)

Coal 121) 14) 125) 15 (3)

Base Metals (35) 47) 10

Heavy Minerals - Ticor SA - Ticor Ltd

(9)48) 8)

20)-)

13

Industrial Minerals 10) 23) 10) 26

Other 132) (17)

Total EBIT 566) 14) 702) 19 (19)

Total EBITDA 886) 944) (6)

Margins impacted by strong Rand

22

EBIT COMPARISON

• Strong sales volumes

• Higher iron ore prices

• Major currency impact

• Good cost control

• Ticor Ltd consolidation impact

• Disposal of non-core assets

R million

Significant currency impact

566

702

(11)119

57

136

244 (628)

(87)34

1H03

EB

IT

Sal

es v

olum

e

Pric

e

Exc

hang

e ra

te im

pact

Sto

ck m

ovem

ent

Pro

duct

ion

cost

Tic

or L

td c

onso

lidat

ion

Ass

et d

ispo

sals

Dis

trib

utio

n co

st

1H04

EB

IT

23

CURRENCY IMPACT

R million 1H04 1H03

EBIT 566) 702)

EBIT excluding non-core asset disposals 447) 702)

Unrealised translation loss/(gain) 6) 150)

Realised exchange rate impact 622)

EBIT excluding exchange rate impact 1 075) 852)

Margin excl. exchange rate (%) 27) 23)

24

EARNINGS

R million 1H04 1H03 % Change

Net operating profit (EBIT) 566) 702) (19)

Net financing cost (130) (123) (6)

Goodwill and impairment (90) (14)

Equity income (13) 30)

Taxation (93) (174)

Profit after taxation 240) 421) (43)

Outside shareholders’ interest 25) 1)

Attributable earnings 265) 422) (37)

Adjustments (22) 28)

Headline earnings 243) 450) (46)

Headline earnings per share (cents) 82) 152) (46)

Average number of shares in issue (million) 298) 296)

Sound performance

25

CASH FLOW

R million 1H04 1H03Opening net debt (2 374) (1 143)Net cash available 606) 335)Taxation and finance charges (264) (400)Dividends paid (184) (252)Net cash flow from operating activities 158) (317)Net cash used in investing activities

Heavy minerals project capital (270) (406)Other capital expenditure (348) (154)Investment in associate (74)Other 15) 7)

Proceeds from non-core asset sales 173) -)Share issue 133) -)Other movements (63) 90)(Increase)/decrease in net debt (202) (854)Closing net debt (2 576) (1 997)

Net debt / equity ratio 41%

26

RATIOS

R million 1H04 1H03

Margin excluding captive arrangements

EBIT (%) 18 25

EBITDA (%) 26 31

Net financing cost cover

EBIT (times) 4.4 5.7

EBITDA (times) 6.8 7.7

Return on equity - attributable income (%) 5.2 9.1

Net debt / equity (%) 41 38

27

REPORTING ISSUES

• Change of year end

• Consolidation into Anglo American plc

• Quarterly reports

• Post interim event

• ZnErgy

• Funding constraints at Zoxy

• Possible impairment impact: R 29 m

• Dividends

28

CON FAUCONNIERCHIEF EXECUTIVE

HARNESSING THE POWER OF THE EARTH

29

STRATEGIC THRUSTS

• Iron Ore• Hope Downs• Northern Cape optimisation• Sishen Expansion Project (SEP)• Sishen South

• Coal• RBCT Phase 5• Inyanda Coal JV (Kalbasfontein)

• Business Improvement Programme (BIP)• Base Metals and Ticor SA

• Process well on track• Group-wide initiative

• Multi-thrust programme

Focused portfolio with clear strategic direction

30

OUTLOOK

• Business climate remains challenging

• Strong currency environments

• High oil prices

• Continued domestic cost pressures

• But, stronger commodity markets:

• Iron ore price increase

• Higher coal prices

• Zinc price recovery

• Therefore, we believe the next 6 months should be better

Looking ahead

THANK YOU.

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

32

ADDITIONAL SLIDES

33

POTENTIAL IRON ORE EXPANSION

Mt design capacity

• Upcurrent classifier to optimise fines recovery adds 0.3 Mtpa fine ore

• Additional feed to fines and drum plants from July 2004, adds 0.7 Mtpa

• Sishen Expansion Project

• phase 1 - 3 Mtpa

• phase 2 - 7 Mtpa

• New mine at Sishen South 2008

current projects

Sishen expansion

Sishen South

26 27 27 27 27 27 27 27

3

810 10 10

69 9

20

25

30

35

40

45

50

'03 '04 '05 '06 '07 '08 '09 '10

Year ending June

34

COAL PHYSICAL INFORMATION

Coal sales volumes Coal production volumes

0

2

4

6

8

10

1H02 2H02 1H03 2H03 1H04

Mt

Eskom Domestic

Export

0

2

4

6

8

10

1H02 2H02 1H03 2H03 1H04

Mt

OtherCoking CoalThermal Coal

35

HEAVY MINERALS PRODUCTION

kt 1H04 1H03%

change

Ilmenite 128 43 198

Zircon 25 28 (11)

Rutile 9 12 (25)

Pig iron 22 0

Scrap pig iron 6 0

Chloride slag 27 0

Sulphate slag 20 0

Ticor SA Ticor Ltd

kt 1H04 1H03%

change

Ilmenite 222 216 3

Zircon 41 34 21

Rutile 16 18 (11)

Synthetic rutile

112 97 (15)

Leucoxene 17 12 42

Pigment 49 49

36

HEAVY MINERALS SALES

kt 1H04 1H03%

change

Ilmenite 40 31 29

Zircon 23 31 (26)

Rutile 12 2 500

Pig iron 10 0

Scrap pig iron 3 0

Chloride slag 12 0

Ticor SA Ticor Ltd

kt 1H04 1H03%

change

Ilmenite 43 60 (28)

Zircon 40 45 (11)

Rutile 21 17 24

Synthetic rutile

57 39 46

Leucoxene 15 12 25

37

DEPRECIATION PER SEGMENT

R million 1H04 1H03

Iron Ore 126 114

Coal 75 66

Heavy Minerals 90 28

Base Metals 23 18

Industrial Minerals 2 4

Corporate 4 12

Total 320 242

38

CAPITAL EXPENDITURE

R million FY04* 1H04 1H03

Sustaining and environmental 394 172 95

Expansion

• Heavy Minerals

- Ticor SA 480 270 406

• Group (other) 257 176 59

1 131 618 560

*Estimate as per FY03 annual report

39

DEBT STRUCTURE

R million Drawn Undrawn Maturity profile

Long term 2004 744

Corporate 1 263) 2005 842

Heavy minerals project finance

1 145) 2006 558

Ticor Ltd 663) 2007 298

3 071)

Short term 533) 1 466 After 2007 629

Total debt 3 604) 3 071

Cash and cash equivalents (1 028)

Net debt 2 576)