To view the PDF file, sign up for a MySharenet subscription.

KIO - Kumba Iron Ore Limited - Third quarter overview

Release Date: 23/10/2008 08:00
Code(s): KIO
Wrap Text

KIO - Kumba Iron Ore Limited - Third quarter overview 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") THIRD QUARTER OVERVIEW * Strong quarterly production underpinned by the steady ramp up of production from the jig plant. * Stock build up at Sishen Mine due to logistics delays. * The 9 Mtpa Sishen South project approved for development, with first production in 2012; logistics agreement concluded with Transnet. * Benchmark iron ore price negotiations with export customers concluded for the 2008/2009 iron ore year at an average increase between 100% - 110% on a Rand per tonne basis. * Results for the full year to 31 December 2008 will be announced on 16 February 2009. PRODUCTION REPORT Kumba - production summary `000 tonnes Quarter % change Quarter % change Ended ended Sep Sep Sep Q08 Jun Sep Q08 2008 2007 vs 2008 vs
Sep Q07 Jun Q08 Total 10,084 7,813 29 8,873 14 - Lump 5,965 4,661 28 5,292 13 - Fines 4,119 3,152 31 3,581 15 Kumba - production summary `000 tonnes Quarter % change Quarter % change Ended ended Sep Sep Sep Q08 Jun Sep Q08
2008 2007 vs 2008 vs Sep Q07 Jun Q08 Total 10,084 7,813 29 8,873 14 - Sishen Mine 9,394 7,210 30 8,247 14 DMS plant 7,346 7,210 2 7,088 4 Jig plant 1,808 - N/A 908 99 Other 240 - N/A 251 (4) - Thabazimbi 690 603 14 626 10 Mine In the third quarter total production increased 29% from a year earlier to 10.1 Mt (million metric tonnes), which is 14% or 1.2 Mt, higher than production in the second quarter of 2008. Sishen Mine production increased by 1.1 Mt from the previous quarter to 9.4 Mt for the quarter ended 30 September 2008. The 1.8 Mt produced by the jig plant accounted for 19% of Sishen Mine`s production. This quarter`s production brings the total production from the jig plant for the year to 30 September 2008 to 3.1 Mt. The ramp up of production from the jig plant has seen a steady increase during the quarter as the technical issues are addressed. The continued steady ramp up of the jig plant should yield production of some 5Mt in 2008. Full production on an annualised basis is anticipated in the second half of 2009. Production from the DMS plant at Sishen Mine and from Thabazimbi Mine was stable during the quarter. In July 2008 investment in the Sishen South project was approved and an agreement was concluded with Transnet in respect of the expansion of the Sishen- Saldanha export line. An experienced project team has been mobilised for the development of the mine. First production is anticipated in 2012. 23 October 2008 Centurion Sponsor to Kumba RAND MERCHANT BANK (A division of FirstRand Bank Limited) Contact: T Chabana Tel: (012) 683 7067 Date: 23/10/2008 08:00:10 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

Share This Story