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KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2015

Release Date: 23/04/2015 08:00
Code(s): KIO     PDF:  
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Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2015

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 March 2015

Kumba Iron Ore Limited ("Kumba") today released its production and sales report for the
quarter ended 31 March 2015. 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 7% compared to Q1 2014 and was 2% lower compared to
  the previous quarter at 12.2 Mt.
- Total export sales volumes increased by 22% compared to Q1 2014 and decreased by
  2% compared to the previous quarter at 11.5 Mt.

                                    Quarter               % change   Quarter   % change

  '000 tonnes                                              Q1 2015             Q1 2015
                             Q1 2015        Q1 2014             vs   Q4 2014        vs
                                                           Q1 2014             Q4 2014
Total                          12,167            11,328        7%     12,432      (2%)
- Sishen mine                   8,885             8,658        3%      9,286      (4%)
   DMS plant                    5,758             5,744          -     5,909       (3%)
   Jig plant                    3,127             2,914        7%      3,377       (7%)
- Kolomela mine                 2,973             2,513       18%      2,728        9%
- Thabazimbi mine                 309               157       97%        418      (26%)


                                     Quarter            % change      Quarter   % change

  '000 tonnes                                             Q1 2015              Q1 2015
                             Q1 2015            Q1 2014        vs    Q4 2014        vs
                                                          Q1 2014              Q4 2014
Total                         12,906            10,838        19%     12,601        2%
- Export sales                11,472             9,423        22%     11,699       (2%)
- Domestic sales               1,434             1,415         1%        902       59%
    Sishen mine                1,114             1,281       (13%)       551      102%
    Thabazimbi mine              320               134       139%        351       (9%)

Sishen mine produced 8.9 Mt, an increase of 3% when compared to Q1 2014 but was 4%
lower than Q4 2014. The implementation of the Operating Model in the North mine continues
to yield improved operating equipment productivity. The Operating Model is now being rolled
out to the pre-strip mining and heavy mining equipment maintenance (HME) areas of the
mine. Waste removal increased by 27% to 49 Mt relative to Q1 2014. The redesign of the
western pushbacks of the pit and increased vertical rate of advance, in conjunction with
waste removal run rates indicate sufficient ore exposure to support our 2015 production
guidance of 36 Mt.

Kolomela mine produced another solid quarterly performance in line with achieving full year
guidance of 11 Mt. The mine produced 3.0 Mt for the quarter, an increase of 18% on Q1
2014 and by 9% compared to Q4 2014, due largely to improved plant performance.

Production at Thabazimbi mine almost doubled, but decreased by 26% compared to Q4
2014 to 0.3 Mt. Thabazimbi remains under review with a decision on its future expected in
the near term.

Total export sales volumes of 11.5 Mt increased by 22% relative to Q1 2014 but decreased
by 2% compared to Q4 2014, mainly due to higher production, improved logistics
performance and the utilisation of the Multi-Purpose Terminal at Saldanha port

Domestic sales volumes increased by 1% relative to Q1 2014 and by 59% compared to Q4
2014 to 1.4 Mt.

Total finished product stockpile levels amounted to 6.1 Mt as at 31 March 2015.

The significant weakness in iron ore prices has necessitated a review of our business. Whilst
a number of actions have already been implemented, further initiatives are being taken to
reduce capital expenditure and lower the cost of production.

For further information, please contact:

Investors and analysts
Nerina Bodasing
Tel: +27 12 622 8324

Centurion
23 April 2015

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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