Kumba production and sales report for the quarter ended 31 march 2014
24 April, 2014
Kumba today released its production and sales report for the quarter ended 31 March 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 10% compared to Q1 2013 and was in line with the previous quarter at 11.3 Mt, as production at Sishen mine continued to improve and Kolomela mine continued its strong performance.
· Total sales volumes of 10.8 Mt were in line with Q1 2013 and the previous quarter.
‘000 tonnes | Quarter | % change | Quarter | % change | |
| Q1 2014 | Q1 2013 | Q1 2014vs Q1 2013 | Q4 2013 | Q1 2014vs Q4 2013 | |
| Total | 11,328 | 10,335 | 10 | 11,286 | - |
| - Sishen mine | 8,658 | 7,552 | 15 | 8,395 | 3 |
| DMS plant | 5,744 | 4,888 | 18 | 5,778 | (1) |
| Jig plant | 2,914 | 2,664 | 9 | 2,617 | 11 |
| - Kolomela mine | 2,513 | 2,680 | (6) | 2,740 | (8) |
| - Thabazimbi mine | 157 | 103 | 52 | 151 | 4 |
‘000 tonnes | Quarter | % change | Quarter | % change | |
| Q1 2014 | Q1 2013 | Q1 2014 vsQ1 2013 | Q4 2013 | Q1 2014vs Q4 2013 | |
| Total | 10,838 | 10,827 | - | 10,836 | - |
| - Export sales | 9,423 | 9,945 | (5) | 9,530 | (1) |
| - Domestic sales | 1,415 | 882 | 60 | 1,306 | 8 |
| Sishen mine | 1,281 | 751 | 71 | 1,118 | 15 |
| Thabazimbi mine | 134 | 131 | 2 | 188 | (29) |
Implementation of the production recovery plan at Sishen mine continued during the quarter, although this was hampered by excessive rainfall that affected waste removal. Sishen mine had 430 mm of rain in Q1 2014, more than its annual average rainfall of 385 mm. Waste removal, however, increased by 3.4% compared to Q1 2013. The mine’s production was 8.7 Mt for the quarter, an increase of 15% compared to Q1 2013 and 3% compared to the previous quarter. Production in Q1 2013 was negatively impacted by the unprotected strike in Q4 2012. Sishen mine remains on track to produce ~35Mt in 2014.
Kolomela mine continued its strong performance, producing 2.5 Mt for the quarter, and is on track to produce ~10Mt in 2014.
Production at Thabazimbi mine increased by 52% compared to Q1 2013 and by 4% compared to the previous quarter to 0.2 Mt.
Total export sales volumes decreased by 5% compared to Q1 2013 and by 1% compared to the previous quarter to 9.4 Mt. During the quarter a reclaimer at Kolomela mine, which moves product onto the rail loading conveyor, suffered structural failure and was out of service for maintenance for five weeks. This event reduced dispatches from Kolomela mine during the quarter, which are expected to be made up by the end of Q2 2014.
Domestic sales volumes increased by 60% compared to Q1 2013 and by 8% compared to the previous quarter to 1.4 Mt due to increased off-take by ArcelorMittal South Africa Limited.
Total finished product stocks were 3.6 Mt as at 31 March 2014 (3.5 Mt excluding Thabazimbi mine), compared to 3.3 Mt as at 31 March 2013 and 2.8 Mt as at 31 December 2013.