KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2015

Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 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)
Share code: KIO
ISIN: ZAE000085346

Kumba Iron Ore Limited production and sales report for the quarter ended 30 September
2015

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 30 September 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 decreased by 12% to 11.4mt compared to Q3 2014, but was 10% higher
   compared to the previous quarter.
- Total export sales volumes increased to 9.8mt, 9% higher than Q3 2014 but 16% lower
   than the previous quarter.


                                     Quarter             % change      Quarter      % change

       ’000 tonnes                                        Q3 2015                    Q3 2015
                             Q3 2015        Q3 2014            vs      Q2 2015            vs
                                                          Q3 2014                    Q2 2015
     Total                    11,391         12,972           (12)      10,385            10
     - Sishen mine             7,670          9,260           (17)       7,177             7
        DMS plant              4,960          6,019           (18)       4,420            12
        Jig plant              2,710          3,241           (16)       2,757            (2)
     - Kolomela mine           3,348          3,379            (1)       2,880            16
     - Thabazimbi mine           373            333            12          328            14


                                      Quarter             % change      Quarter     % change

       ’000 tonnes                                         Q3 2015                   Q3 2015
                             Q3 2015        Q3 2014             vs      Q2 2015           vs
                                                           Q3 2014                   Q2 2015
     Total                    10,807         10,188              6       13,081          (17)
     - Export sales            9,847          9,059              9       11,733          (16)
     - Domestic sales            960          1,129            (15)       1,348          (29)
        Sishen mine              665            818            (19)         906          (27)
        Thabazimbi mine          295            311             (5)         442          (33)


Sishen produced 7.7 million tonnes, a decrease of 17% due to a temporary lack of sufficient
exposed high quality ore for blending purposes and adjustments to the mine plan and
schedule as it transitions to the lower cost pit configuration.

Whilst further improvement is anticipated in Q4, 2015 production is now expected to be
~31mt (previous guidance 33mt). Waste mining activities are currently at ~230mtpa and are
expected to be maintained at this rate for FY’2015 and FY’2016 to ensure adequate levels of
exposed ore. This compares to previous guidance of ~200mtpa.

At Kolomela, the revised mining plans, including deferral of mining at one of three pits, were
implemented.    Efficiencies and throughput at the plant continued to improve resulting in
production of 3.3mt for the quarter. Production for the year has been revised upwards to
12mt (previously 11mt) and, in order to ensure feed to the plants at this rate going forward,
waste mining has been increased to 44-45mt from the previous guidance of 35-38mt.

In accordance with the closure plans for Thabazimbi, mining ceased at the end of September
2015 but some processing of previously mined material through the plant will continue until
2016.

Export sales of 9.8mt were achieved, an increase of 9%, due to improved rail and port
operating performance.

Sales were 16% lower on the previous quarter as two derailments occurred on the Sishen–
Saldanha line reducing railings to port by approximately1.6mt. The annual Transnet
maintenance shutdown which is usually scheduled for August was therefore postponed to
early October. Export sales are nevertheless still expected to be more than 43mt for the full
year.

Total finished product stock was at 4.7mt as at 30 September 2015 compared with 6.5mt at
year end.
The financial information on which the above forecast is based has not been reviewed and
reported on by the company’s external auditors.

For further information, please contact:

Investors and analysts
Nerina Bodasing
Tel: 012 – 622 8324

Media
Nikki Wetzlar
Tel: 012 – 683 7019

Centurion
22 October 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 mine and its Kolomela mine 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

Anglo American is a global and diversified mining business that provides the raw materials
essential for economic development and modern life. Our people are at the heart of our
business. It is our people who use the latest technologies to find new resources, plan and
build our mines and who mine, process and move and market our products – from bulk
commodities and base metals to precious metals and diamonds (through De Beers) – to our
customers around the world. Our diversified portfolio of products spans the economic
development cycle and, as a responsible miner, we are the custodians of precious resources.
We work together with our key partners and stakeholders to unlock the long-term value that
those resources represent for our shareholders, but also for the communities and countries in
which we operate – creating sustainable value and making a real difference. Our mining
operations, growth projects and exploration and marketing activities extend across southern
Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com

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