Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2014
17 July, 2014
Kumba Iron Ore Limited ("Kumba") today released its production and sales report for the quarter ended 30 June 2014. 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 2% compared to Q2 2013 and by 1% compared to the previous quarter to 11.5 Mt, as Kolomela mine’s production was 14% higher than Q2 2013 and 17% higher than the previous quarter.
- Export sales volumes increased by 1% compared to Q2 2013 and by 9% compared to the previous quarter to 10.3 Mt.
- Domestic sales volumes increased by 21% compared to Q2 2013 to 1.4 Mt due to increased off-take by ArcelorMittal South Africa Limited (“ArcelorMittal S.A.”).
| Unaudited production summary | ||||||||
| ‘000 tonnes | Quarter |
% change | Quarter | % change |
% change | |||
| Q2 2014 | Q2 2013 | Q2 2014 vs Q2 2013 |
Q1 2014 | Q2 2014 vs Q1 2014 |
1H14 | 1H13 | 1H14 vs 1H13 |
|
| Total | 11,465 | 11,278 | 2 | 11,328 | 1 | 22,793 | 21, 613 | 5 |
| - Sishen Mine | 8,337 | 8,562 | (3) | 8,658 | (4) | 16,995 | 16, 114 | 5 |
| DMS plant | 5,239 | 5,829 | (10) | 5,744 | (9) | 10,983 | 10, 717 | 2 |
| Jig plant | 3,098 | 2,733 | 13 | 2,914 | 6 | 6,012 | 5, 397 | 11 |
| - Kolomela mine | 2,948 | 2,584 | 14 | 2,513 | 17 | 5,461 | 5, 264 | 4 |
| - Thabazimbi Mine | 180 | 132 | 36 | 157 | 15 | 337 | 235 | 43 |
| Unaudited sales summary | ||||||||
| ‘000 tonnes | Quarter |
% change |
Quarter |
% change |
% change | |||
| Q2 2014 | Q2 2013 | Q2 2014 vs Q2 2013 |
Q1 2014 | Q2 2014 vs Q1 2014 |
1H14 | 1H13 | 1H14 vs 1H13 |
|
| Total | 11,661 | 11,310 | 3 | 10,838 | 8 | 22,499 | 22, 137 | 2 |
| - Export sales | 10,287 | 10,178 | 1 | 9,423 | 9 | 19,710 | 20, 123 | (2) |
| - Domestic sales | 1,374 | 1,132 | 21 | 1,415 | (3) | 2,789 | 2, 014 | 38 |
| Sishen mine | 1,203 | 960 | 25 | 1,281 | (6) | 2,484 | 1, 711 | 45 |
| Thabazimbi mine | 171 | 172 | (1) | 134 | 28 | 305 | 303 | 1 |
Sishen’s pit continued to be mined according to the production recovery plan during the quarter. The mine’s production was 8.3 Mt for the quarter, a decrease of 3% compared to Q2 2013 and 4% compared to the previous quarter. Sishen mine remains on track to produce ~35Mt in 2014. Unseasonal rainfall during May 2014 slightly hampered waste pre-stripping operations. Waste removal, however, increased by 8% compared to Q2 2013 and by 24% compared to the previous quarter. Waste mining plans for the second half of the year were completed and are being executed, which includes continuous ramp-up and fleet efficiency improvements, to recover the waste shortfall.
Kolomela mine continued to perform strongly, producing 2.9 Mt for the quarter, and is on track to produce ~10Mt in 2014.
Production at Thabazimbi mine increased by 36% compared to Q2 2013 and by 15% compared to the previous quarter to 0.2 Mt.
Export sales volumes increased by 1% compared to Q2 2013 and by 9% compared to the previous quarter to 10.3 Mt.
Domestic sales volumes of 1.4 Mt increased by 21% compared to Q2 2013 due to increased off-take by ArcelorMittal S.A., but decreased by 3% compared to the previous quarter.
Total finished product stocks were 3.6 Mt as at 30 June 2014, 30 June 2013 and 31 March 2014.