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KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018

Release Date: 23/10/2018 08:00
Code(s): KIO     PDF:  
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Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018

 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 third quarter ended 30 September 2018

Kumba continued to improve on safety and delivered a solid operating performance, while maintaining production
and sales volumes in line with guidance. 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:
• Safe production ensured Kumba remained fatality free and continued to improve on multiple safety metrics.
• Production volumes reduced by 9% to 10.5Mt as planned, to offset elevated stock levels arising from rail
  constraints in H1 2018.
• Export sales decreased by 10% to 9.7Mt as a result of scheduled refurbishment by Transnet.


Production summary
                                    Quarter
                                    ended                 % change        Quarter ended     % change
                            Q3            Q3                vs                 Q2             vs
' 000 tonnes                2018          2017            Q3 2017             2018          Q2 2018
Total                       10,508        11,486          (9)             11,572            (9)
Sishen Mine                 7,030         7,786           (10)            7,930             (11)
Kolomela Mine               3,478         3,700           (6)             3,642             (5)


Sales summary
                                    Quarter
                                    ended
                                                           % change        Quarter ended     % change
                            Q3            Q3                 vs                 Q2             vs
' 000 tonnes                2018          2017             Q3 2017             2018          Q2 2018
Total                       10,492        11,427           (8)             10,342            1
Export sales                9,737         10,783           (10)            9,560             2
Domestic sales              755           644              17              782               (3)

Total production volumes decreased by 9% to 10.5Mt (Q3 2017: 11.5Mt) as planned, to offset elevated stock levels
at Sishen and Kolomela arising from Transnet rail constraints in H1 2018. Production volumes were also impacted by
the slight decrease in processing plant yields as Kumba focused on producing high quality products to maximise the
value of tonnes railed to port and benefit from the strong demand for high-grade ore.

Production at Sishen and Kolomela reduced by 10% to 7Mt (Q3 2017: 7.8Mt) and 6% to 3.5Mt (Q3 2017: 3.7Mt),
respectively. Waste stripping at Sishen increased by 7% to 45Mt (Q3 2017: 42Mt) and remained flat at Kolomela (Q3
2017: 16Mt), as we continued our progress towards benchmark efficiency.

Export sales decreased by 10% to 9.7Mt (Q3 2017: 11.4Mt) due to the scheduled refurbishment of the ship loaders
at Saldanha which resulted in single loading of vessels during the quarter. Total finished stock increased to 6.6Mt
from 6.2Mt at 30 June 2018.

Guidance
Kumba continued to work closely with Transnet to improve logistical performance and good progress has been
made during the quarter. As a result, the 2018 full year guidance announced in Kumba's 2018 interim results on 24
July 2018 has been maintained as follows:

-   Total production of 43-44Mt
    – Sishen 29-30Mt
    – Kolomela 14Mt
-   Waste
    – Sishen 170-180Mt
    – Kolomela 55-57Mt
-   Total sales of 42-44Mt

Centurion
23 October 2018

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

For further information, please contact:

Company Secretary
Ms Celeste Appollis
celeste.appollis@angloamerican.com
Tel: +27 683 7063
Mobile: +27 82 941 7535
 
Investors                                             Media
Penny Himlok                                          Sinah Phochana
penny.himlok@angloamerican.com                        sinah.phochana@angloamerican.com
Tel: +27 12 622 8324                                  Tel: +27 12 683 7019
Mobile: +27 82 781 1888                               Mobile: +27 76 066 0655

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 global diversified mining business and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides
the metals and minerals to meet the growing consumer-driven demands of the world’s developed and maturing
economies. With our people at the heart of our business, we use innovative practices and the latest technologies to
discover new resources and mine, process, 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 sustainable value that those resources represent for our shareholders, the
communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to
improve people’s lives.
www.angloamerican.com

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