Overview:
- Full year production of 44.9 Mt, as expected
- Total production decreased by 12% to 10.9 million tonnes compared to Q4 2014, and was 4% lower compared to the previous quarter.
- Total export sales volumes decreased to 10.5 million tonnes, 10% lower than Q4 2014 but 7% higher than the previous quarter.
| ’000 tonnes |
Quarter |
% change |
Quarter |
% change |
| Q4 2015 |
Q4 2014 |
Q4 2015
vs
Q4 2014 |
Q3 2015 |
Q4 2015
vs
Q3 2015 |
| Total |
10,935 |
12,432 |
(12) |
11,391 |
(4) |
| - Sishen mine |
7,661 |
9,286 |
(17) |
7,670 |
- |
| DMS plant |
5,124 |
5,909 |
(13) |
4,960 |
3 |
| Jig plant |
2,537 |
3,377 |
(25) |
2,710 |
(6) |
| - Kolomela mine |
2,854 |
2,728 |
5 |
3,348 |
(15) |
| - Thabazimbi mine |
420 |
418 |
- |
373 |
13 |
| ’000 tonnes |
Quarter |
% change |
Quarter |
% change |
| Q4 2015 |
Q4 2014 |
Q4 2015
vs
Q4 2014 |
Q3 2015 |
Q42015
vs
Q3 2015 |
| Total |
11,043 |
12,600 |
(12) |
10,807 |
2 |
| - Export sales |
10,509 |
11,699 |
(10) |
9,847 |
7 |
| - Domestic sales |
534 |
902 |
(41) |
960 |
(44) |
| Sishen mine |
280 |
551 |
(49) |
665 |
(58) |
| Thabazimbi mine |
254 |
351 |
(28) |
295 |
(14) |
Kumba Iron Ore – Production from Kumba Iron Ore decreased by 12% to 10.9 million tonnes.
Sishen produced 7.7 million tonnes, a decrease of 17%. Production continued to be impacted by a lack of sufficient exposed high quality ore for blending purposes as the mine transitions to the lower cost pit configuration.
Full year production at Sishen was in line with the revised targeted production of ~31Mt as indicated in the Q32015 production statement. Waste mined for the quarter was 54.3 million tonnes down 10%, in line with the full year revised guidance of ~230 Mtpa.
At Kolomela, efficiencies and throughput at the plant continued to improve, partially offset by planned plant maintenance during October, resulting in production of 2.9 million tonnes for the quarter, a 5% increase. Waste mining remained flat at 9.7 million tonnes.
Mining ceased at Thabazimbi in September 2015 and the closure process remains on track.
Export sales reached 10.5 million tonnes, a decrease of 10% due to lower production. Total finished product stocks were 4.7 million tonnes, compared with 6.5 million tonnes at
31 December 2014 as stocks were drawn down to optimal levels.
The financial information on which the above forecast is based has not been reviewed and reported on by the company’s external auditors.
Extension of Cautionary
On 15 December 2015, Kumba extended the cautionary announcement relating to the notice from the Department of Mineral Resources ("DMR") that the Director General of the DMR had consented to the amendment of Sishen Iron Ore Company (Pty) Ltd.'s ("SIOC") mining right in respect of the Sishen Mine to include the residual 21.4% undivided share of the mining right for the Sishen Mine, subject to certain proposed conditions.
Shareholders are hereby advised to continue exercising caution when dealing in the company's shares and securities, until a further announcement is made.