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KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2017

Release Date: 20/07/2017 09:00
Code(s): KIO     PDF:  
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Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2017

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 30 June 2017

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 30 June 2017. 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 38% to 7.9Mt due to improved mining productivity.
- Export sales up 8% to 9.4Mt on the back of a 28% increase in total production.

 Production summary
                                                                         
                                      Quarter               %     Quarter          %
'000 tonnes                             ended           change      ended       change
                                 Q2             Q2       vs Q2        Q1          vs
                                2017           2016       2016      2017       Q1 2017
Total                         11,382          8,864        28     10,473            9
 - Sishen Mine                 7,872          5,700        38      7,679            3
    DMS Plant                  4,909          3,395        37      4,795            2
    Jig Plant                  2,963          2,305        40      2,884            3
 - Kolomela Mine               3,510          3,164        11      2,794           26

Sales summary
                                  Quarter                               
                                   ended                %       Quarter        %
 '000 tonnes                                         change      ended      change  
                                Q2           Q2       vs Q2       Q1           vs       
                               2017         2016      2016       2017       Q1 2017
 Total                       10,348        9,666         7     10,886         (5)
 - Export sales               9,423        8,730         8     10,053         (6)
 - Domestic sales               925          936        (1)       833          11
   Sishen mine                  925          699        32        833          11
   Thabazimbi mine                -          237      (100)         -           -

Sishen production increased by 38% to 7.9Mt due to improved mining productivity as a result of
fleet efficiencies and higher plant yields. Waste removal increased by 38% to 42.7Mt, compared
to 31.1Mt in Q2 2016 (H1 2017: 76.6Mt). Sishen’s solid and consistent performance and
ongoing improvements since the restructuring have resulted in guidance being revised. Sishen
is expected to produce between 28-29Mt of iron ore in 2017 and 155-165Mt of waste.

Kolomela production increased to 3.5Mt, up 11% compared to Q2 2016, due to productivity
improvements. Waste mined increased by 22% to 15.3Mt through ongoing improvements in
operational efficiency. Kolomela is on track to meet full year production and waste guidance for
2017 of 13-14Mt and 50-55Mt respectively.

Export sales increased by 8% to 9.4Mt compared to Q2 2016. Total finished product stocks
were 4.4Mt, compared to 3.5Mt at year end. Sales volumes were delayed to H2 due to
unfavourable weather at Saldanha port. Full year sales guidance has been increased to 41-
43Mt.


For further information, please contact:

Media                                                 Investors
Yvonne Mfolo                                          Anne Dunn
yvonne.mfolo2@angloamerican.com                       anne.dunn@vodamail.co.za
Tel: +27 12 683 7067                                  Mobile: +27 82 448 2684
Mobile: +27 83 469 4566

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. 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 to our customers around the world.

As a responsible miner - of diamonds (through De Beers), platinum and other precious metals,
copper, nickel, iron ore and coal - we are the custodians of what are precious natural resources.
We work together with our key partners and stakeholders to unlock the long-term value that
those resources represent for our shareholders and for the communities and countries in which
we operate – creating sustainable value and making a real difference.
www.angloamerican.com


20 July 2017


Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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