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KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited Production and Sales Report for the quarter ended 31 March 2018

Release Date: 24/04/2018 08:00
Code(s): KIO     PDF:  
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Kumba Iron Ore Limited Production and Sales Report for the quarter ended 31 March 2018

Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
("Kumba" or "the company")


Kumba Iron Ore Limited Production and Sales Report for the quarter ended 31 March 2018

Kumba Iron Ore Limited ("Kumba") announces its production and sales report for the quarter
ended 31 March 2018. Throughout this report, production and sales volumes referred to are 100%
of Sishen Iron Ore Company Proprietary Limited ("SIOC"), and attributable to shareholders of
Kumba as well as the non-controlling interests in SIOC.

Overview:
- Safety performance continued to improve on all fronts with Kumba maintaining its fatality free
  track record.
- Total production increased by 4% compared to Q1 2017 driven by production at Kolomela
  increasing 26% to 3.5Mt due to increased plant throughput.
- Waste stripping increased by 24% at Sishen and by 32% at Kolomela relative to Q1 2017,
  demonstrating continued improvement in efficiency.
- Export sales decreased marginally to 9.9Mt in comparison to Q1 2017, while domestic sales
  increased by 6%.

 Production summary
                                    Quarter                          
                                     ended             % change      Quarter      % change
 ' 000 tonnes                                             vs          ended          vs
                                Q1           Q1           Q1           Q4            Q4
                               2018         2017         2017         2017          2017
Total                        10,855       10,473           4        11,643           (7)
 - Sishen Mine                7,325        7,679          (5)        7,783           (6)
   DMS Plant                  4,363        4,795          (9)        4,786           (9)
   Jig Plant                  2,962        2,884           3         2,997           (1)
 - Kolomela Mine              3,530        2,794          26         3,860           (9)


 Sales summary
                                    Quarter
                                     ended                          
                                                       % change      Quarter      % change
 ' 000 tonnes                                             vs          ended          vs
                                Q1            Q1          Q1           Q4            Q4    
                               2018         2017         2017         2017          2017
 Total                       10,831       10,886          (1)       12,231          (11)
 - Export sales               9,946       10,053          (1)       11,355          (12)
 - Domestic sales               885          833           6           876            1

Sishen production decreased by 5% to 7.3Mt, and by 6% relative to Q4 2017. This was primarily
driven by lower DMS plant production due to short-term mining feedstock constraints which were
partially offset by higher yields from both the DMS and JIG plants. Waste stripping remained in
line with Q4 2017 at 42.2Mt and increased by 24% compared to Q1 2017 as a result of the
continued improvement in efficiencies. Production and waste stripping rates are expected to be
maintained at levels required to meet the full year guidance of 30-31Mt and 170-180Mt,
respectively.

Kolomela production increased by 26% to 3.5Mt, driven by higher plant throughput and the full
ramp-up of the DMS modular plant. In comparison to Q4 2017, production decreased by 9% as a
result of wet weather conditions which reduced primary equipment tempos. Waste stripping
increased by 32% to 13.4Mt due to improved efficiencies. The full year production guidance for
Kolomela remains at 14Mt, with waste stripping at 55-57Mt.

Export sales decreased by 1% to 9.9Mt below the Q1 2017 level. However, relative to Q4 2017,
this was a 12% decrease following derailments which impacted export sales by 1.1Mt. Kumba is
working closely with Transnet to mitigate derailments and currently expects to meet full year
guidance with total sales of 44–45Mt. Total finished product stock is 4.6Mt, compared to 4.3Mt as
at 31 December 2017.

For further information, please contact:

Investors                                             Media
Penny Himlok                                          Sinah Phochana
penny.himlok@angloamerican.com                        sinah.phochana@angloamerican.com
Tel: +27 12 622 8324                                  Tel: +27 12 683 7019
Mobile: +27 82 781 1888                               Mobile: +27 76 066 0655


24 April 2018

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Notes to editors:
Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding
supplier of high quality iron ore to the global steel industry. Kumba produces iron ore in South
Africa at Sishen and Kolomela mines in the Northern Cape Province. Kumba exports iron ore to
customers in a range of geographical locations around the globe including China, Japan, Korea
and a number of countries in Europe and the Middle East.
www.angloamericankumba.com

Notes to editors:
Anglo American is a global diversified mining business and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and minerals to meet the growing
consumer-driven demands of the world’s developed and maturing economies. With our people at
the heart of our business, we use innovative practices and the latest technologies to discover new
resources and mine, process, move and market our products to our customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious
metals, iron ore, coal and nickel – we are the custodians of what are precious natural resources.
We work together with our key partners and stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate and for society at large. Anglo American is re-imagining mining to improve people’s lives.
www.angloamerican.com

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