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Kumba Iron Ore Limited production and sales report for quarter ended 31 December 2015 and extension of cautionary
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 2015 and
extension of cautionary announcement
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 31
December 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:
- Full year production of 44.9 Mt, as expected
- Total production decreased by 12% to 10.9 million tonnes compared to Q4 2014, and was 4% lower
compared to the previous quarter.
- Total export sales volumes decreased to 10.5 million tonnes, 10% lower than Q4 2014 but 7% higher
than the previous quarter.
Quarter % change Quarter % change
’000 tonnes Q4 2015 Q4 2015
Q4 2015 Q4 2014 vs Q3 2015 vs
Q4 2014 Q3 2015
Total 10,935 12,432 (12) 11,391 (4)
- Sishen mine 7,661 9,286 (17) 7,670 -
DMS plant 5,124 5,909 (13) 4,960 3
Jig plant 2,537 3,377 (25) 2,710 (6)
- Kolomela mine 2,854 2,728 5 3,348 (15)
- Thabazimbi mine 420 418 - 373 13
Quarter % change Quarter % change
’000 tonnes Q4 2015 Q42015
Q4 2015 Q4 2014 vs Q3 2015 vs
Q4 2014 Q3 2015
Total 11,043 12,600 (12) 10,807 2
- Export sales 10,509 11,699 (10) 9,847 7
- Domestic sales 534 902 (41) 960 (44)
Sishen mine 280 551 (49) 665 (58)
Thabazimbi mine 254 351 (28) 295 (14)
Kumba Iron Ore – Production from Kumba Iron Ore decreased by 12% to 10.9 million tonnes.
Sishen produced 7.7 million tonnes, a decrease of 17%. Production continued to be impacted by a lack of
sufficient exposed high quality ore for blending purposes as the mine transitions to the lower cost pit
configuration.
Full year production at Sishen was in line with the revised targeted production of ~31Mt as indicated in the
Q32015 production statement. Waste mined for the quarter was 54.3 million tonnes down 10%, in line with
the full year revised guidance of ~230 Mtpa.
At Kolomela, efficiencies and throughput at the plant continued to improve, partially offset by planned plant
maintenance during October, resulting in production of 2.9 million tonnes for the quarter, a 5% increase.
Waste mining remained flat at 9.7 million tonnes.
Mining ceased at Thabazimbi in September 2015 and the closure process remains on track.
Export sales reached 10.5 million tonnes, a decrease of 10% due to lower production. Total finished product
stocks were 4.7 million tonnes, compared with 6.5 million tonnes at 31 December 2014 as stocks were
drawn down to optimal levels.
The financial information on which the above forecast is based has not been reviewed and reported on by
the company’s external auditors.
Extension of Cautionary
On 15 December 2015, Kumba extended the cautionary announcement relating to the notice from the
Department of Mineral Resources ("DMR") that the Director General of the DMR had consented to the
amendment of Sishen Iron Ore Company (Pty) Ltd.'s ("SIOC") mining right in respect of the Sishen Mine to
include the residual 21.4% undivided share of the mining right for the Sishen Mine, subject to certain
proposed conditions.
Shareholders are hereby advised to continue exercising caution when dealing in the company's shares and
securities, until a further announcement is made.
For further information, please contact:
Investors and analysts
Nerina Bodasing
Tel: +27 12 622 8324
Centurion
28 January 2016
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.angloamericankumba.com
www.angloamerican.com
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