Wrap Text
Production and sales report for the quarter ended 30 September 2016
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” or “the Company”)
Kumba Iron Ore Limited production and sales report for the quarter ended
30 September 2016
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 30 September 2016. 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:
- Sishen production up 46% to 8.3 Mt compared to Q2 2016 due to a significant
improvement in productivity.
- Export sales of 10.3 Mt, up 18% from 8.7 Mt in Q2 2016 reflecting the improvement in
production volumes at Sishen.
Quarter % change Quarter % change
’000 tonnes Q3 2016 Q3 2016
Q3 2016 Q3 2015 vs Q2 2016 vs
Q3 2015 Q2 2016
Total 11,760 11,391 3 8,864 33
- Sishen mine 8,349 7,670 9 5,700 46
DMS plant 5,325 4,960 7 3,581 49
Jig plant 3,024 2,710 12 2,119 43
- Kolomela mine 3,411 3,348 2 3,164 8
- Thabazimbi mine - 373 (100) - -
Quarter % change Quarter % change
’000 tonnes Q3 2016 Q3 2016
Q3 2016 Q3 2015 vs Q2 2016 vs
Q3 2015 Q2 2016
Total 11,050 10,807 2 9,666 14
- Export sales 10,343 9,847 5 8,730 18
- Domestic sales 707 960 (26) 936 (24)
Sishen mine 707 665 6 699 1
Thabazimbi mine - 295 (100) 237 (100)
Sishen’s production was up 46% to 8.3 Mt compared to Q2 2016 (3Q15: 7.7 Mt) following the
successful completion of its restructuring. The improvement in production was due to
increased run of mine feed rates, improved quality feedstock material and better plant yields.
The mine transitioned to a 3–shift roster system in early September, which is expected to
result in further improvements in equipment efficiencies over the medium term. Sishen
remains on track to achieve guided production of ~27 Mt for the full year.
Consistent with the mine’s lower cost pit configuration, waste removal decreased to 35 Mt
(compared to 60 Mt in 3Q15). Waste run rates remain in line with the full year guidance of
135-150 Mt.
Detailed work to refine the Sishen life of mine plan, based on the revised pit configuration,
was completed during Q3 2016. This life of mine plan validated the key performance metrics
for Sishen including production and waste volumes, which are in line with guidance
previously provided.
Kolomela’s production was up 8% to 3.4 Mt compared to Q2 2016 (3Q15: 3.3 Mt). Waste
mining increased to 14.6 Mt from 12.5 Mt during the same period. The mine is expected to
exceed its 12Mt production target for the full year, with a commensurate marginal increase in
waste.
Export sales increased by 18% to 10.3 Mt compared to Q2 2016 (3Q15: 9.8 Mt), reflecting
improved production volumes at Sishen during the quarter. Total finished product stocks
were 3.1 Mt, compared with 2.3 Mt at 30 June 2016.
For further information, please contact:
Media Investors
Nikki Wetzlar Nerina Bodasing
Nikki.wetzlar@angloamerican.com Nerina.bodasing@angloamerican.com
Tel: +27 12 683 7019 Tel: +27 12 622 8324
Mobile: +27 82 561 7407 Mobile: +27 82 940 7505
Centurion
25 October 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 mine and its new 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
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class
competitive mining operations and undeveloped resources provides the raw materials to
meet the growing consumer-driven demands of the world’s developed and maturing
economies. 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 diamonds (through De Beers) to platinum and other
precious metals and copper – to our customers around the world.
As a responsible miner, we are the custodians of those 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.
www.angloamerican.com
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