Kumba Production and Sales Report for the first quarter ended 31 March 2025
24 April, 2025
Kumba’s Chief Executive, Mpumi Zikalala, said: “Against the backdrop of an uncertain global macro environment, our strategic focus on operational excellence and cost optimisation is even more relevant. The successful reconfiguration of our business in 2024 significantly improved our resilience in a tougher operating environment. Pleasingly, we have continued to unlock value through our high-quality iron ore products, achieving an average realised price 11% above benchmark prices.
“Our commitment to operational excellence is demonstrated by production of 9.0 million tonnes (Mt), in line with sales of 9.0 Mt. The 5% uplift in Transnet’s rail performance, which supported a 6% increase in sales volumes, is encouraging. Following this positive start to the year, we are maintaining our production and sales guidance of
35 – 37 million wet metric tonnes (wmt) and our C1 unit cost guidance of ~US$39 per tonne.
“Protecting the safety and wellbeing of our workforce and communities where our mines operate is our first value. Our total recordable injury frequency rate (TRIFR) of 0.92 increased as a result of low energy incidents (slips, trips and falls). We are actively addressing this through an integrated set of safety initiatives. Notably Sishen has now achieved nine years, and Kolomela more than two years of fatality free production.
“The ultra-high-dense-medium-separation technology project at Sishen that will treble the proportion of premium grade iron ore products, is well on schedule. Conversion of the first coarse module is underway, and the engineering design and fabrication are progressing ahead of plans.
“Kumba continues to work closely with Transnet and the Ore User’s Forum (OUF) to prioritise the maintenance related to the independent technical assessment. As part of the OUF, we are also working through the Department of Transport's request for information, due for submission on 9 May 2025, which will be followed by the request for proposals later in the year."
Q1 2025 overview:
- Focus on improving our TRIFR of 0.92 and extending our fatality-free production record of nine years at Sishen and more than two years at Kolomela.
- Total production decreased by 3% to 9.0 Mt (Q1 2024: 9.3 Mt), due to the proactive drawdown of finished stock at Sishen.
- Total sales increased by 6% to 9.0 Mt (Q1 2024: 8.5 Mt) on the back of improved rail performance.
- Finished stock of 7.8 Mt (31 December 2024: 7.5 Mt) includes stockpiles of 6.2 Mt at the mines and 1.6 Mt at Saldanha Bay Port.
- Average realised free on board (FOB) export iron ore price of US$98/wmt, 11% above the average benchmark price of US$88/wmt.
| Q1 | Q4 | Q3 | Q2 | Q1 | % change vs | % change vs | |
|---|---|---|---|---|---|---|---|
| 000 tonnes | 2025 | 2024 | 2024 | 2024 | 2024 | Q1 2024 | Q4 2024 |
| Iron ore waste | 40,485 | 27,835 | 39,414 | 44,663 | 43,795 | (8) | 45 |
| Iron ore production | 8,990 | 7,826 | 9,446 | 9,184 | 9,275 | (3) | 15 |
| Iron ore sales | 9,007 | 9,135 | 9,027 | 9,556 | 8,533 | 6 | (1) |
| Kumba waste | 40,485 | 27,835 | 39,414 | 44,663 | 43,795 | (8) | 45 |
| Sishen | 34,631 | 25,100 | 34,073 | 39,265 | 35,503 | (2) | 38 |
| Kolomela | 5,854 | 2,735 | 5,341 | 5,398 | 8,292 | (29) | 114 |
| Kumba production by mine | 8,990 | 7,826 | 9,446 | 9,184 | 9,275 | (3) | 15 |
| Sishen | 5,955 | 5,687 | 6,767 | 6,644 | 6,563 | (9) | 5 |
| Kolomela | 3,035 | 2,139 | 2,679 | 2,540 | 2,712 | 12 | 42 |
| Kumba sales | 9,007 | 9,135 | 9,027 | 9,556 | 8,533 | 6 | (1) |
| Lump | 6,127 | 6,071 | 6,191 | 5,925 | 5,620 | 9 | 1 |
| Fines | 2,880 | 3,064 | 2,836 | 3,631 | 2,913 | (1) | (6) |
Safety and health performance
The safety and wellbeing of our workforce and the communities where we operate is our highest priority and is underpinned by our first value. Our TRIFR of 0.92 (Q1 2024: 0.48) reflects an increase in low energy incidents. We are actively addressing this through increased leadership time in the field and safety programmes focused on supervisor effectiveness, service partner safety training and the simplification of critical controls.
Mining and production
Kumba's optimised mine plan is focused on managing our operations as an integrated mining complex and developing greater flexibility across our mining and production processes to continue delivering operational efficiencies. Consequently, total waste stripping decreased by 8% to 40.5 Mt (Q1 2024: 43.8 Mt). This was driven by a 29% decrease at Kolomela to 5.9 Mt (Q1 2024: 8.3 Mt) and by a 2% decrease at Sishen to 34.6 Mt (Q1 2024: 35.5 Mt).
Kumba's total production decreased by 3% to 9.0 Mt (Q1 2024: 9.3 Mt), largely due to a 9% decrease in Sishen’s production to 6.0 Mt (Q1 2024: 6.6 Mt) following a proactive drawdown of high mine stockpiles. This is in preparation for the potential extension of Transnet’s annual maintenance shutdown in Q3 2025 by a few days, as part of the work related to the independent technical assessment. In line with our flexible production strategy, Kolomela's production increased by 12% to 3.0 Mt (Q1 2024: 2.7 Mt).
Logistics, sales and marketing
Ore railed to port by Transnet increased by 5% to 9.8 Mt (Q1 2024: 9.4 Mt), enabling a drawdown in our mine stockpiles which ensures a more balanced value chain. Total finished stock of 7.8 Mt (31 December 2024: 7.5Mt) comprised 6.2 Mt (31 December 2024: 6.9 Mt) at our mines and 1.6 Mt (31 December 2024: 0.6Mt) of stock ready to ship at Saldanha Bay Port.
Sales of 9.0 Mt increased by 6% (Q1 2024: 8.5 Mt), reflecting the impact of stacker reclaimer challenges in the comparative Q1 2024 period, as well as the benefit of improved rail performance and finished stock levels at the port in Q1 2025.
Iron ore markets were underpinned by higher steel exports in China, partially offsetting property weakness and lower steel output in traditional sales markets such as Europe, Japan and South Korea. Iron ore supply was hampered by seasonal weather disruptions in the southern hemisphere. Lower coal prices and steel stocks in China supported steel mill margins and consequently demand for high quality iron ore products.
Kumba's average iron (Fe) content was maintained at 64.2% (Q1 2024: 64.2%) while our average lump to fine ratio improved to 68:32 (Q1 2024: 66:34). The average realised FOB export price of US$98/wmt, was 11% above the 62% Fe benchmark price of US$88/wmt, reflecting the benefit of high quality iron ore and an increase in the lump to fine ratio.
Full year 2025 guidance update
Subject to Transnet's logistics constraints and the outcome of wage negotiations with its organised labour partners, Kumba’s full year 2025 guidance (announced at the company’s annual results presentation on 18 February 2025) is unchanged and is as follows:
| Guidance | FY2025 |
| Total sales (Mt) | 35 - 37 |
| Total production (Mt) | 35 - 37 |
| Sishen | ~26 |
| Kolomela | ~10 |
| Waste stripping (Mt) | |
| Sishen | 140 - 150 |
| Kolomela | 26 - 32 |
| On-mine unit cost (R/t) | |
| Sishen | 510 - 540 |
| Kolomela | 440 - 460 |
| C1 unit costs ($/t) | ~39 |
Volumes excluding waste stripping and on-mine unit costs, are reported as wmt. Product is shipped with ~1.6% moisture. The Group's sales volumes could differ to Kumba's results due to sales to other Group companies. Foreign exchange rate used for 2024 costs is ~R18.60/US$.
Production and sales volumes as referred to for the quarter ended 31 March 2025 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.
This announcement contains forward-looking statements which are based on the Company’s current beliefs and expectations about future events. The financial information contained in this announcement has not been reviewed and reported on by the Company's external auditors.
Johannesburg
24 April 2025
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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