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KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited production and sales report for the quarter ended 31 December 2013

Release Date: 29/01/2014 09:00
Code(s): KIO     PDF:  
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Kumba Iron Ore Limited production and sales report for the quarter ended 31 December 2013

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

Kumba Iron Ore Limited production and sales report for the quarter ended 31 December
2013

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 31 December 2013. 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:
-  Total production increased by 25% compared to Q4 2012 and by 19% compared to the
   previous quarter to 11.3 Mt, as Sishen mine’s production recovered following the impact of
   the unprotected strike in Q4 2012, section 54 regulatory safety stoppages in August 2013
   and ongoing pit constraints.
-  Outstanding performance at Kolomela mine continued with 2.7 Mt produced for the quarter,
   although a decrease of 2% compared to Q4 2012 and 2% compared to the previous
   quarter.
-  Total export sales volumes increased by 6% compared to Q4 2012 and by 1% compared to
   the previous quarter to 9.5 Mt.

Unaudited production summary
                                        Quarter            % change   Quarter   % change                       % change

‘000 tonnes                                                 Q4 2013              Q4 2013                            FY13
                               Q4 2013           Q4 2012         vs    Q3 2013        vs         FY13      FY12       vs
                                                            Q4 2012              Q3 2013                            FY12
Total                           11,286             9,013         25       9,474       19      42, 373   43, 066       (2)
- Sishen mine                    8,395             6,038         39       6,429       31      30, 938   33, 697       (8)
   DMS plant                     5,778             3,976         45       3,880       49      20, 374   23, 083      (12)
   Jig plant                     2,617             2,062         27       2,549        3      10, 564   10, 614         -
- Kolomela mine                  2,740             2,793        (2)       2,806       (2)     10, 809    8, 545       26
- Thabazimbi mine                 151                182       (17)         239       (37)        626       824      (24)


  Unaudited sales summary
                                         Quarter           % change   Quarter   % change                         % change

  ‘000 tonnes                                               Q4 2013              Q4 2013                             FY13
                              Q4 2013         Q4 2012            vs   Q3 2013         vs         FY13      FY12        vs
                                                            Q4 2012              Q3 2013                             FY12
Total                          10,836           9,813            10    10,734          1      43, 708   44, 340       (1)
- Export sales                  9,530           8,980             6     9,422          1      39, 076   39, 657       (1)
- Domestic sales                1,306             833            57     1,312          -       4, 632    4, 683       (1)
  Sishen mine                  1,118             581             92     1,099          2       3, 927    3, 436        14
  Thabazimbi mine                188             252           (25)       213       (12)          705    1, 247      (43)

Sishen mine’s production increased by 39% compared to Q4 2012 and by 31% compared to
the previous quarter to 8.4 Mt as production recovered following the impact of the unprotected
strike in Q4 2012, section 54 regulatory safety stoppages in August 2013 and ongoing pit
constraints. The Sishen pit remains constrained, which impacts availability of material supplied
to the processing plants. A production recovery plan to address the current pit constraints and a
longer term operational optimisation strategy is being implemented.

Kolomela mine continued with its excellent quarterly performance despite a planned
maintenance stoppage at the mine. The mine produced 2.7 Mt for the quarter, a marginal
decrease of 2% compared to Q4 2012 and 2% on the previous quarter. Production exceeded
monthly design capacity for most of the year, and reached a new record level during October
2013. Technical studies have confirmed the mine’s capacity to sustain production at 10 Mtpa
for the life of mine, 1 Mtpa above its original design capacity.

Production at Thabazimbi mine decreased by 17% compared to Q4 2012 and by 37%
compared to the previous quarter to 0.2 Mt. An agreement regulating the sale and purchase of
iron ore between SIOC and ArcelorMittal South Africa Limited (“ArcelorMittal S.A.”), which is
effective from 1 January 2014, may enable the extension of the life of Thabazimbi mine through
the introduction of low grade beneficiation technologies.

Total export sales volumes of 9.5 Mt increased by 6% compared to Q4 2012 and by 1%
compared to the previous quarter, mainly due to the recovery in Sishen mine’s production.

Domestic sales volumes increased by 57% compared to Q4 2012 to 1.3 Mt due to increased
off-take by ArcelorMittal S.A., but remained largely unchanged compared to the previous
quarter.

Total finished product stockpile levels amounted to 2.8 Mt as at 31 December 2013 compared
to 3.7 Mt as at 31 December 2012 and 2.2 Mt as at 30 September 2013.

For further information, please contact:

Media                                                    Investors and analysts
Gert Schoeman                                            Esha Mansingh
Tel: +27 (0)12 683 7019                                  Tel: +27 (0)12 683 7257


Centurion
29 January 2014

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, and at Thabazimbi
mine in the Limpopo 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 one of the world’s largest mining companies, is headquartered in the UK and
listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses
meets our customers’ changing needs and spans bulk commodities – iron ore and manganese,
metallurgical coal and thermal coal; base metals and minerals – copper, nickel, niobium and
phosphates; and precious metals and minerals – in which we are a global leader in both
platinum and diamonds. At Anglo American, we are committed to working together with our
stakeholders – our investors, our partners and our employees – to create sustainable value that
makes a real difference, while upholding the highest standards of safety and responsibility
across all our businesses and geographies. The company’s mining operations, pipeline of
growth projects and exploration activities span southern Africa, South America, Australia, North
America, Asia and Europe.

www.angloamerican.com

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