Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2015
23 April, 2015
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 31 March 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 increased by 7% compared to Q1 2014 and was 2% lower compared to the previous quarter at 12.2 Mt.
- Total export sales volumes increased by 22% compared to Q1 2014 and decreased by 2% compared to the previous quarter at 11.5 Mt.
| ‘000 tonnes | Quarter | % change | Quarter | % change | |
|---|---|---|---|---|---|
| Q1 2015 | Q1 2014 | Q1 2015 vs Q1 2014 |
Q4 2014 | Q1 2015 vs Q4 2014 |
|
| Total | 12,167 | 11,328 | 7% | 12,432 | (2%) |
| - Sishen mine | 8,885 | 8,658 | 3% | 9,286 | (4%) |
| DMS plant | 5,758 | 5,744 | - | 5,909 | (3%) |
| Jig plant | 3,127 | 2,914 | 7% | 3,377 | (7%) |
| - Kolomela mine | 2,973 | 2,513 | 18% | 2,728 | 9% |
| - Thabazimbi mine | 309 | 157 | 97% | 418 | (26%) |
| ‘000 tonnes | Quarter |
% change |
Quarter | % change | |
|---|---|---|---|---|---|
| Q1 2015 | Q1 2014 | Q1 2015 vs Q1 2014 |
Q4 2014 | Q1 2015 vs Q4 2014 |
|
| Total | 12,906 | 10,838 | 19% | 12,601 | 2% |
| - Export sales | 11,472 | 9,423 | 22% | 11,699 | (2%) |
| - Domestic sales | 1,434 | 1,415 | 1% | 902 | 59% |
| Sishen mine | 1,114 | 1,281 | (13%) | 551 | 102% |
| Thabazimbi mine | 320 | 134 | 139% | 351 | (9%) |
Sishen mine produced 8.9 Mt, an increase of 3% when compared to Q1 2014 but was 4% lower than Q4 2014. The implementation of the Operating Model in the North mine continues to yield improved operating equipment productivity. The Operating Model is now being rolled out to the pre-strip mining and heavy mining equipment maintenance (HME) areas of the mine. Waste removal increased by 27% to 49 Mt relative to Q1 2014. The redesign of the western pushbacks of the pit and increased vertical rate of advance, in conjunction with waste removal run rates indicate sufficient ore exposure to support our 2015 production guidance of 36 Mt.
Kolomela mine produced another solid quarterly performance in line with achieving full year guidance of 11 Mt. The mine produced 3.0 Mt for the quarter, an increase of 18% on Q1 2014 and by 9% compared to Q4 2014, due largely to improved plant performance.
Production at Thabazimbi mine almost doubled, but decreased by 26% compared to Q4 2014 to 0.3 Mt. Thabazimbi remains under review with a decision on its future expected in the near term.
Total export sales volumes of 11.5 Mt increased by 22% relative to Q1 2014 but decreased by 2% compared to Q4 2014, mainly due to higher production, improved logistics performance and the utilisation of the Multi-Purpose Terminal at Saldanha port.
Domestic sales volumes increased by 1% relative to Q1 2014 and by 59% compared to Q4 2014 to 1.4 Mt.
Total finished product stockpile levels amounted to 6.1 Mt as at 31 March 2015.
The significant weakness in iron ore prices has necessitated a review of our business. Whilst a number of actions have already been implemented, further initiatives are being taken to reduce capital expenditure and lower the cost of production.