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KUMBA IRON ORE LIMITED - Production and sales report for the quarter ended 30 September 2016

Release Date: 25/10/2016 08:00
Code(s): KIO     PDF:  
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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