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Kumba Iron Ore - 2019 Total Sales Guidance Update and Anglo American Bulks Seminar and Site Visit
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 - 2019 Total Sales Guidance Update and Anglo American Bulks Seminar
and Site Visit
2019 Total Sales Guidance Update
Shareholders are referred to ArcelorMittal SA Limited’s (“AMSA”) announcement on 11
November 2019, titled: Conclusion of the first phase of the strategic asset footprint review and
further information on the company’s section 189 process.” In particular, the statement that:
“Following due deliberation and consideration, the decision has been made to undertake an
orderly and commercial wind-down of steel operations at Saldanha Works (“Saldanha”),
ultimately placing the operation on care and maintenance.”
Following AMSA’s decision to wind down its steel operations at Saldanha, Kumba has reduced
the 2019 total sales guidance to 41.5-42.5Mt from 42-43Mt. The production guidance for the full
year 2019 is unchanged at 42-43Mt.
Kumba will continue to assess the effect of AMSA’s strategic asset footprint review on domestic
sales and will update the market in due course. Importantly, export sales contribute 94%
towards the company’s total sales and Kumba’s high-quality iron ore products are well-
positioned in global markets with ongoing customer demand and a stable export order book.
Anglo American Bulks Seminar and Site Visit
Shareholders are further advised that Anglo American plc (“Anglo American”) is this week
hosting an analyst and investor visit to Queensland, Australia to provide a detailed update on
Anglo American’s Bulks businesses. The update will cover Anglo American’s world-class
steelmaking ingredient businesses of Kumba Iron Ore, Minas-Rio, and the Metallurgical Coal
operations in Australia, as well as its nickel and export thermal coal operations.
Themba Mkhwanazi, CEO of Kumba, said: “Kumba is on an exciting journey of transformation
to create value through quality and efficiency. We are unlocking value from our world class
assets, by leveraging our capabilities and technologies to ensure that Kumba provides
sustainable returns through the cycle.”
Kumba’s presentation includes production guidance for 2019-2022 and unit cost guidance for
2019-2020, as well as the long-term potential, as shown below. The guidance for 2020 onwards
does not include the impact of the above-mentioned announcement from AMSA.
Total production (Mt) guidance
2019F: 42-43
2020F: 43-44
2021F: 43-44
2022F: 43-44
Long-term potential: ~45
Unit cost (FOB$/t) guidance
2019F: ~33
2020F: ~36
Long-term potential: ~33
The presentation will be available on the Kumba and Anglo American plc websites:
https://www.angloamericankumba.com/investors/investor-presentations/2019.aspx and
https://www.angloamerican.com/investors/investor-presentations/2019
This announcement contains forward-looking statements which are based on the Company’s
current beliefs and expectations about future events. The operational and financial forecasts
provided in this announcement are estimates and have not been reviewed and reported on by
the Company’s external auditors.
Centurion
12 November 2019
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Acting Company Secretary
Ms Isabella Crafford
isabella.crafford@angloamerican.com
Tel: +27 679 2209
Mobile: +27 74 889 9355
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-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
Date: 12/11/2019 09:00:00
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