Kumba Iron Ore Limited Production Report for the third quarter ended 30 September 2015
22 October, 2015
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 30 September 2015. 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:
- Total production decreased by 12% to 11.4mt compared to Q3 2014, but was 10% higher compared to the previous quarter.
- Total export sales volumes increased to 9.8mt, 9% higher than Q3 2014 but 16% lower than the previous quarter.
| ‘000 tonnes | Quarter | % change | Quarter | % change | |
|---|---|---|---|---|---|
| Q3 2015 | Q3 2014 | Q3 2015 vs Q3 2014 |
Q2 2015 | Q3 2015 vs Q2 2015 |
|
| Total | 11,391 | 12,972 | (12) | 10,385 | 10 |
| - Sishen mine | 7,670 | 9,260 | (17) | 7,177 | 7 |
| DMS plant | 4,960 | 6,019 | (18) | 4,420 | 12 |
| Jig plant | 2,710 | 3,241 | (16) | 2,757 | (2) |
| - Kolomela mine | 3,348 | 3,379 | (1) | 2,880 | 16 |
| - Thabazimbi mine | 373 | 333 | 12 | 328 | 14 |
| ‘000 tonnes | Quarter |
% change |
Quarter | % change | |
|---|---|---|---|---|---|
| Q3 2015 | Q3 2014 | Q3 2015 vs Q3 2014 |
Q2 2015 | Q3 2015 vs Q2 2015 |
|
| Total | 10,807 | 10,188 | 6 | 13,081 | (17) |
| - Export sales | 9,847 | 9,059 | 9 | 11,733 | (16) |
| - Domestic sales | 960 | 1,129 | (15) | 1,348 | (29) |
| Sishen mine | 665 | 818 | (19) | 906 | (27) |
| Thabazimbi mine | 295 | 311 | (5) | 442 | (33) |
Sishen produced 7.7 million tonnes, a decrease of 17% due to a temporary lack of sufficient exposed high quality ore for blending purposes and adjustments to the mine plan and schedule as it transitions to the lower cost pit configuration.
Whilst further improvement is anticipated in Q4, 2015 production is now expected to be ~31mt (previous guidance 33mt). Waste mining activities are currently at ~230mtpa and are expected to be maintained at this rate for FY’2015 and FY’2016 to ensure adequate levels of exposed ore. This compares to previous guidance of ~200mtpa.
At Kolomela, the revised mining plans, including deferral of mining at one of three pits, were implemented. Efficiencies and throughput at the plant continued to improve resulting in production of 3.3mt for the quarter. Production for the year has been revised upwards to 12mt (previously 11mt) and, in order to ensure feed to the plants at this rate going forward, waste mining has been increased to 44-45mt from the previous guidance of 35-38mt.
In accordance with the closure plans for Thabazimbi, mining ceased at the end of September 2015 but some processing of previously mined material through the plant will continue until 2016.
Export sales of 9.8mt were achieved, an increase of 9%, due to improved rail and port operating performance.
Sales were 16% lower on the previous quarter as two derailments occurred on the Sishen–Saldanha line reducing railings to port by approximately1.6mt. The annual Transnet maintenance shutdown which is usually scheduled for August was therefore postponed to early October. Export sales are nevertheless still expected to be more than 43mt for the full year.
Total finished product stock was at 4.7mt as at 30 September 2015 compared with 6.5mt at year end.
The financial information on which the above forecast is based has not been reviewed and reported on by the company’s external auditors.