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KUMBA IRON ORE LIMITED - Kumba production and sales report for the quarter ended 31 December 2017

Release Date: 25/01/2018 09:00
Code(s): KIO     PDF:  
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Kumba production and sales report for the quarter ended 31 December 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)
Share code: KIO
ISIN: ZAE000085346
(“Kumba”)

Kumba production and sales report for the quarter ended 31 December 2017

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 31 December 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:
- Good safety performance in 2017 and improvements in leading indicator reporting with no
  fatalities
- Full year production of 45Mt exceeded recent guidance.
- Q4 2017 delivered continued strong quarter-on-quarter production of 11.6Mt.
- Production decreased by 2% compared to Q4 2016 when there was temporary access to
  low strip ratio ore and higher plant yields at Sishen.
- Export sales increased by 7% to 11.4Mt due to improved loading rates.



Production summary                                         
                                            %                 
                                            change                    %                      
' 000 tonnes                                Q4 2017                   change                             % change
                                            vs                        Q4 2017                            2017
                     Q4         Q4          Q4 2016     Q3            vs                                 vs
                     2017       2016                    2017          Q3 2017      2017       2016       2016
Total                11,643     11,928      (2)         11,486        1            44,983     41,476     8
Sishen               7,783      8,490       (8)         7,786         -            31,119     28,380     10
Kolomela             3,860      3,438       12          3,700         4            13,863     12,726     9
Thabazimbi           -          -           -           -             -            -          370        (100)
                                                                         


Sales summary
                                             %                         %
                                             change                    change
' 000                                        Q4 2017                   Q4 2017                            % change 2017
tonnes               Q4         Q4           vs         Q3             vs                                 vs
                     2017       2016         Q4 2016    2017           Q3 2017      2017       2016       2016
Total                12,231     11,224       9          11,427         7            44,892     42,484     6
Export               11,355     10,611       7          10,783         5            41,615     39,061     7
Domestic             876        613          43         644            36           3,277      3,423      (4)


Sishen maintained its solid and consistent operating performance and ongoing improvements, with production Q4 2017
in line with the previous three quarters as planned. Production decreased by 8% to 7.8Mt compared to Q4 2016. The
higher production in Q4 2016 was attributable to temporary access to low strip ratio ore and higher plant yields as per
the mine plan. Waste removal increased by 15% to 43Mt, compared to 37Mt in Q4 2016.

Kolomela production increased to 3.9Mt, up 12% compared to Q4 2016, mainly due to productivity improvements. Full
year waste mined increased by 11% to 56Mt resulting from ongoing improvements in operational efficiencies.
 
Export sales increased by 7% to 11.4Mt mainly due to improved loading rates. Total finished product stocks were 4.3Mt,
compared to 3.5Mt in Q4 2016.

For further information, please contact:
Media                                                         Investors
Sinah Phochana                                                Anne Dunn
Sinah.phochana@angloamerican.com                              anne.dunn@angloamerican.com
Tel: +27 12 683 7019                                          Mobile: +27 82 448 2684
Mobile: +27 76 066 0655

25 January 2018

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


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), copper, platinum and
other precious metals, iron ore, coal and nickel – 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

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