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KUMBA IRON ORE LIMITED - Production and sales report for the quarter ended 31 December 2016

Release Date: 26/01/2017 09:00
Code(s): KIO     PDF:  
Wrap Text
Production and sales report for the quarter ended 31 December 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 Iron Ore Limited production and sales report for the quarter ended
31 December 2016

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 31 December 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 for the full year of 28.4Mt, exceeding guidance target of 27Mt
-      Record full year production of 12.7 Mt achieved at Kolomela

                          Quarter                      % change    Quarter      % change

’000 tonnes                                            Q4 2016                   Q4 2016
                          Q4 2016      Q4 2015              vs     Q3 2016            vs
                                                       Q4 2015                   Q3 2016

Total                      11,928       10,935               9      11,760             1
- Sishen mine               8,490        7,661              11       8,349             2

    DMS plant               5,379        5,124               5       5,325             1
    Jig plant               3,111        2,537              23       3,024             3

- Kolomela mine             3,438        2,854              20       3,411             1
- Thabazimbi mine               -          420           (100)           -             -


                           Quarter                       % change   Quarter      % change

’000 tonnes                                              Q4 2016                  Q4 2016
                           Q4 2016      Q4 2015            vs       Q3 2016          vs
                                                         Q4 2015                  Q3 2016

Total                       11,224       11,043                2     11,050             2
- Export sales              10,611       10,509                1     10,343             3
- Domestic sales               613          534               15        707          (13)
                                  
Sishen mine                    613          280              119        707          (13)
Thabazimbi mine                  -          254            (100)          -             -
                                                            


Sishen produced 8.5Mt up 11% on 4Q15. Run rates during the quarter were in line
with the considerable improvement realised in Q3 2016 following the successful
completion of its restructuring to a lower cost pit shell. Full year production was
28.4Mt exceeding the guided target of 27Mt. The higher production was attributable to
improved mining productivity as well as access to low strip ratio ore and higher plant
yields during the second half of the year. Waste removal, as planned, was 32% lower
at 37Mt compared to 4Q15.

Kolomela production rose by 20% to 3.4Mt compared to Q4 2015, with the mine
exceeding its full year target of 12Mt to 12.7Mt. The improvement in production was
driven by higher levels of throughput as a result of further debottlenecking and
optimization of the plant. Waste mined was 59% higher than the corresponding period
in 2015 at 15.4Mt in line with higher production levels.

Export sales increased marginally compared to both 3Q16 and 4Q15 to 10.6Mt. Total
finished product stocks were 3.5Mt, compared to 3.1Mt at 30 September 2016.

For further information, please contact:


Nerina Bodasing
Nerina.bodasing@angloamerican.com
Tel: +27 12 622 8324
Mobile: +27 82 940 7505

Centurion
26 January 2017

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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