Wrap Text
Kumba updates full year 2021 guidance and outlook for 2022 to 2024
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 updates full year 2021 guidance and outlook for 2022 to 2024
Kumba is providing an update to investors and analysts on the Company’s full year 2021 guidance and the outlook on production for 2022 to 2024 and C1 unit
costs for 2022.
Themba Mkhwanazi, Chief Executive of Kumba said: “Kumba continues to prioritise the safety, health and well-being of our workforce and communities. Over
70% of our workforce have been fully vaccinated and we are supporting the vaccination effort amongst employee family members and our local communities.
“Following the completion of the annual maintenance programme in October, operational performance has ramped up to planned levels. Production and sales
are expected to remain in line with our full year 2021 guidance of c.40.5Mt and c.39.5Mt, respectively.
“Across many industries including mining, we continue to see the repercussions of the Covid-19 pandemic, including supply chain disruptions and rising input
costs. Consequently, Sishen’s unit cost is at the upper end of our guidance of R430 and R440/t, while Kolomela’s unit cost has increased to between R320 and
R330/t (from R305 to R315/t). The Kumba C1 unit cost guidance for production of US$40/t is unchanged.
“Our production performance in 2021 is expected to be 7% higher than that in 2020, demonstrating our operational resilience and ability to manage through
external challenges. We continue to focus on cost performance and ensuring that we are well set up to deliver on our priorities for 2022.
Production guidance for 2022 and 2023 has been revised to 39-41Mt (from 41.5-42.5Mt). In 2022, Transnet’s stacker reclaimer refurbishment programme at
the Saldanha Port will impact port capacity and, consequently, our value chain. In 2023, production is expected to be impacted by the tie-in of the Sishen ultra-
high-dense-media separation plant. In line with our strategy, the UHDMS technology will extend the Sishen life-of-mine and further improve the quality and
carbon reduction properties of our product in the steelmaking process, thereby optimising the value of our product.”
Full year 2021 guidance FY2021 FY2021 Revised FY2021
(dmt) (dmt) (wmt)
Export sales (Mt) ~39 No change ~39.5
Total production (Mt) ~40 No change ~40.5
Sishen ~27.5 No change ~28
Kolomela ~12.5 No change ~12.5
Waste stripping (Mt) 205 - 225 No change N/A
Sishen 150 - 160 No change N/A
Kolomela 55 - 65 No change N/A
On mine unit cost (R/t)
Sishen 430 - 440 No change N/A
Kolomela 305 - 315 320 - 330 N/A
C1 unit costs (US$/t) 40
Capital expenditure (Rm) 7 700 – 8 200 7 100 – 7 500 N/A
Total production (Mt) 2022 - 2024 guidance
2022F: 39-41 (previously 41.5-42.5)
2023F: 39-41 (previously 41.5-42.5)
2024F: 41-43 (new guidance)
C1 unit cost (FOB US$/t) 2022 guidance:
2022F: ~41 (new guidance):
Production, sales volumes and C1 unit costs are reported as wet metric tonnes, and the previous guidance has been restated as Kumba previously reported on
a dry basis. Product is shipped with a moisture content of approximately 1.6%. Volumes referred to for the period are 100% of Sishen Iron Ore Company
Proprietary Limited (“SIOC”), and attributable to Kumba's shareholders and the non-controlling interests in SIOC.
This announcement contains forward-looking statements which are based on the Company’s current beliefs and expectations about future events. The
operational and financial information provided in this announcement are estimates and subject to potential Covid-19, logistics and weather disruptions and
have not been reviewed and reported on by the Company’s external auditors.
Kumba production and sales report for the fourth quarter and year ended 31 December 2021, will be released on the Johannesburg Stock Exchange News
Service (“SENS”) on 27 January 2022.
Centurion
10 December 2021
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Company Secretary
Fazila Patel
fazila.patel@angloamerican.com
Tel: +27 12 683 7060
Mobile: +27 83 297 2293
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
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-
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use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely
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As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking,
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Date: 10-12-2021 09:00:00
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