Wrap Text
Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2019
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 quarter ended 31 March 2019
Kumba is on track to deliver its sales and production guidance of 43-44Mt for 2019, with continued focus on
improving its health, safety and operational performance. 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:
- Kumba continued to be fatality free, with ongoing focus on improving its health and safety performance.
- Total sales of 10.9Mt were in line with Q1 2018, with export sales increasing by 2% to 10.1Mt.
- Total production volumes decreased by 12% compared to Q1 2018, due to maintenance requirements at
Sishen and Kolomela.
- Total finished stock reduced to 4.2Mt, from 5.3Mt at 31 December 2018.
Sales summary
Quarter
ended
' 000 tonnes % change Quarter ended % change
Q1 Q1 vs Q4 vs
2019 2018 Q1 2018 2018 Q4 2018
Total 10,879 10,831 - 11,591 (6)
- Export sales 10,131 9,946 2 10,723 (6)
- Domestic sales 748 885 (16) 868 (14)
Production summary
Quarter
ended
' 000 tonnes % change Quarter ended % change
Q1 Q1 vs Q4 vs
2019 2018 Q1 2018 2018 Q4 2018
Total 9,516 10,855 (12) 10,170 (6)
- Sishen Mine 6,447 7,325 (12) 6,960 (7)
- Kolomela Mine 3,070 3,530 (13) 3,210 (4)
Total sales volumes of 10.9Mt were broadly flat relative to Q1 2018 with export sales growth of 2% to 10.1Mt
partially offset by lower domestic sales. Relative to Q4 2018, export sales decreased by 6% due to lower opening
stock levels at Saldanha Port at the beginning of the year, following the derailments and bridge incident in 2018.
Kumba's total plant production volumes decreased by 12% to 9.5Mt compared to Q1 2018. The was driven by
unscheduled plant maintenance at Sishen and stoppage of the dense media separation plant at Kolomela to
perform a critical infrastructure upgrade. Production at Sishen decreased by 12% to 6.4Mt and at Kolomela by
13% to 3.1Mt. With rail logistics performing in line with plan, this resulted in a drawdown of excess finished stock
levels at the mines and total finished stock reducing to 4.2Mt from 5.3Mt as at 31 December 2018.
From a mining perspective, waste stripping at Sishen was 3% lower at 40.9Mt (Q1 2018: 42.2Mt) due to a marginal
reduction in shovel availability. While at Kolomela, longer haul distances led to a 5% decrease in waste stripping
to 12.8Mt. Improving mine to plan practices and operating equipment performance are key priorities as we
progress towards new levels of benchmark operating performance.
Guidance
Logistical performance improved during the quarter, reflecting the progress made by the joint steering committee
and the benefits of working more closely with Transnet. This progress was one of the key factors underpinning
the maintenance of the 2019 full year guidance announced in Kumba's 2018 annual results on 19 February
2019. The 2019 guidance is unchanged, as follows:
- Total sales of 43-44Mt
- Total production of 43-44Mt
- Sishen ~30Mt
- Kolomela 13-14Mt
- Waste
- Sishen 170-180Mt
- Kolomela 55-60Mt
Centurion
25 April 2019
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:
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-class competitive mining operations and undeveloped
resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast
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 - safely, responsibly and
sustainably.
As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal and nickel
- we are the custodians of what are precious natural resources. We work together with our business partners and
diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the
communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining
to improve people's lives.
www.angloamerican.com
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