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KIO - Kumba Iron Ore - Production Report For The Quarter Ended 31 March 2009
Kumba Iron Ore Limited
A member of the Anglo American plc group
Incorporated in the Republic of South Africa)
Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
PRODUCTION REPORT FOR THE QUARTER ENDED 31 MARCH 2009
Kumba Iron Ore Limited ("Kumba") today released its production report for the
quarter ended 31 March 2009. Throughout this report, production volumes refer to
100% attributable to Kumba.
FIRST QUARTER OVERVIEW
- 14% increase in production year on year as production from the Jig plant
reached 2.0 Mt for the quarter
- Export sales volumes of 6.0 Mt increased 3.5% from 5.8 Mt sold during the
fourth quarter of 2008
- Domestic sales down by 0.8 Mt year on year and against contractual volumes
- Finished product stockpile levels at Sishen Mine, Saldanha and Qingdao ports
have increased by 1.7 Mt - from 5.8 Mt at 31 December 2008 to 7.5 Mt at 31 March
2009.
Results for the six months ending 30 June 2009 will be announced on 23 July
2009.
PRODUCTION REPORT
Kumba - production summary
`000 tonnes Quarter % Quarter % change
Ended change ended
Mar Mar Mar Q09 Dec Mar Q09
2009 2008 vs 2008 vs
Mar Q08 Dec Q08
Total 9,323 8,190 14 9,552 (2)
- Lump 5,595 4,888 14 5,897 (5)
- Fines 3,728 3,302 13 3,655 2
Kumba - production summary
`000 tonnes Quarter % Quarter % change
Ended change ended
Mar Mar Mar Q09 Dec Mar Q09
2009 2008 vs 2008 vs
Mar Q08 Dec Q08
Total 9,323 8,190 14 9,552 (2)
- Sishen Mine 8,693 7,541 15 8,857 (2)
DMS plant 6,653 7,157 (7) 7,028 (5)
Jig plant 2,040 384 431 1,647 24
Other - - - 182 (100)
- Thabazimbi 630 649 (3) 695 (9)
Mine
In the first quarter of 2009 total production increased 14% from a year earlier
to 9.3 Mt (million metric tonnes), which is 2% or 0.2 Mt, lower than production
in the fourth quarter of 2008. Sishen Mine`s production increased by 1.2 Mt to
8.7 Mt for the quarter ended 31 March 2009. The 2.0 Mt produced by the jig plant
accounted for 23% of Sishen Mine`s production. The ramp up of production from
the jig plant has seen a healthy increase during the quarter, reaching 806Kt in
March, equivalent to an annualised rate of 9.6Mtpa. Kumba remains on schedule to
achieve an annualised rate of 13Mtpa from the Jig plant during the fourth
quarter of 2009. Although the yield from the DMS plant at Sishen Mine has
improved during the quarter to 84% production was negatively impacted by the
availability of feedstock. Production from Thabazimbi Mine was stable during the
quarter.
The challenges faced by the global economy that led to unprecedented volatility
and rapid decreases in commodity prices and iron ore sales volumes traded have
continued into the first quarter of 2009. Kumba has targeted customers in China
in an attempt to redirect any lost export contract volumes from Europe and
Japan. Export sales volumes into China have increase by 45% during the first
quarter of 2009 from a year earlier as Kumba increased production from the Jig
plant and redirected certain export sales volumes.
Finished product stockpiles at Sishen Mine, Saldanha and Qingdao ports have
increased to 7.5 Mt as at 31 March 2009, an increase of 1.7 Mt from the 5.8 Mt
stockpiled at 31 December 2008, in line with expected sales. Of this increase,
0.6 Mt is due to domestic iron ore sales from Sishen Mine falling below
contractual volumes and 1.1 Mt is due to difficult export market conditions. The
stockpiles are currently 5.2 Mt in excess of base operating levels. The decrease
in domestic demand has resulted in a build up of finished product stock now
occurring at Thabazimbi Mine - with stockpiles growing 0.2 Mt during the quarter
to 0.7 Mt as at 31 March 2009.
Production during the first quarter was in line with plan and Kumba remains
committed to increase production by some 10% during 2009 should market
conditions permit. Management continues to monitor closely stock levels and will
consider cut-backs in production should the extent to which demand cuts from
Europe and Japan escalate and are not absorbed by China, domestic demand
decreases further and physical stockpile capacity is exceeded.
30 April 2009
Centurion
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/04/2009 08:00:04 Supplied by www.sharenet.co.za
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