21 Oct - 10 min read

Kumba production and sales report for the third quarter ended 30 September 2021

Kumba production and sales report for the third quarter ended 30 September 2021

Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
("Kumba" or "the Company")

Kumba production and sales report for the third quarter ended 30 September 2021
Kumba's Chief Executive, Themba Mkhwanazi, said: "Kumba delivered a solid operational performance, due to improved mining stability and good plant
availability. Safety and health are always our top priority as we continued to drive a strong safety culture while staying focused on achieving increased rates of
vaccination amongst our workforce and their families.

Production increased to 10.8 Mt, while equipment breakdown at Saldanha Port and weather disruptions affecting ship movements at the port led to lower sales
of 10.1 Mt. Due to rail and port logistics performing below planned levels, our full year production and sales are expected t o be at the low end of guidance at
40.5 Mt and 39.5 Mt, respectively.

On the market front, steel production cuts in China have weighed on iron ore prices in recent months. However, increased sales to markets outside of China
have supported an average year to date realised price of US$181 per wet metric tonne (wmt) for the third quarter, 17.5% above the benchmark price. Overall,
we are seeing ongoing market recognition for the premium quality properties of our iron ore products, including for their carbon emission reduction properties
in the steelmaking process."

Overview
- Maintained strong safety performance and improved pace of workforce vaccination.
- Total production increased by 11% to 10.8 Mt (Q3 2020: 9.7 Mt), reflecting strong operational performance and excess plant capacity.
- Total sales were 9% lower at 10.1 Mt (Q3 2020: 11.1 Mt), due to equipment breakdown and weather-related disruptions at Saldanha Port.
- Finished stock of 6.9 Mt (30 June 2021: 6.1 Mt), with high levels of on-mine stock as a result of rail performing below planned levels.
- Average year to date realised FOB export iron ore price of US$181 per wmt (US$184 per dry metric tonne (dmt)), 17.5% above the average benchmark
  price of US$154 per wmt (US$157 per dmt), reflecting the benefit of our diversified market strategy.


 Sales summary
                                                                              Quarter ended                         % change             Quarter ended           % change

                                                                         Q3                      Q3                   vs Q3                   Q2                   vs Q2
 Million tonnes                                                         2021                    2020                   2020                  2021                   2021
 Total                                                                  10.1                    11.1                    (9)                   9.2                      9
 - Export sales                                                         10.1                    11.1                    (9)                   9.2                      9
 - Domestic sales                                                          —                       —                     —                      —                      —


 Production summary
                                                                              Quarter ended                         % change             Quarter ended            % change

                                                                          Q3                     Q3                    vs Q3                  Q2                    vs Q2
 Million tonnes                                                          2021                   2020                    2020                 2021                    2021
 Total                                                                   10.8                    9.7                      11                  9.8                      10
 - Sishen Mine                                                            7.5                    6.6                      14                  6.9                      10
 - Kolomela Mine                                                          3.3                    3.1                       6                  2.9                      11

1.   Volumes, excluding waste stripping, are reported as wet metric tonnes. Product is shipped with approximately 1.6% moisture. The comparative has been restated as Kumba previously reported on a dry
     basis

Safety and health
Kumba continues to build on its fatality-free record of over five years through its relentless focus and commitment to safe and responsible production. Our new
safety behaviour and culture programme launched in June 2021 is progressing well. We have seen an improvement in safety awareness and leadership, and a
decrease in high-potential hazards and incidents. From a health perspective, we continue to work with the rest of Anglo American in South Africa to successfully
reduce the number of positive Covid-19 cases through our on-site protocols and are collaborating with health authorities to ramp-up vaccination rates at our
operations and among our host communities.

Mining, production and unit costs
Mining stability increased in the third quarter of the year (the "period") following improved pit conditions and equipment availability. While total waste mining
of 56.8 Mt is 3% below the 58.8 Mt achieved in Q3 2020 ("the comparative period"), good progress has been made relative to the first two quarters of the year
(Q1 2021: 40.3 Mt and Q2 2021: 54.3 Mt).

Waste stripping was driven by a 6% increase at Sishen Mine to 40.7 Mt (Q2 2021: 38.6 Mt) and a 2% increase at Kolomela to 16.1 Mt (Q2 2021: 15.8 Mt). This
is a result of improvements in shovel set up and haul truck payload demonstrating the effectiveness of the mining recovery plan.

Iron ore production performance continued to improve reflecting increased plant availability and reliability supported by our "Stable and Capable" programme
as part of our operating model and defect elimination initiatives. Total production increased by 11% to 10.8 Mt (Q3 2020: 9.5 Mt), with Sishen Mine production
increasing by 14% to 7.5 Mt (Q3 2020: 6.6 Mt) and Kolomela by 6% to 3.3 Mt (Q3 2020: 3.1 Mt).

Strong production combined with Transnet rail performing below expected levels, has resulted in materially higher levels of stock at the mines. We therefore
expect to limit production in the months ahead and to finish the year at the low end of the production guidance range at 40.5 Mt.

Since the first half of the year, rising diesel prices and slower than anticipated ramp-up in operational efficiencies and cost savings have led to an upward revision
in Sishen's unit cost guidance from R410 – R420/t to R430 – R440/t. Kolomela's unit cost guidance has been maintained at R305 – R315/t and total C1 unit costs
remain at US$40/t.

Logistics, sales and the market environment
Total sales improved by 9% in the period to10.1 Mt relative to volumes of 9.2 Mt in Q2 2021 despite equipment breakdown and weather-related disruptions.
However, total sales decreased by 9% relative to the 11.1 Mt achieved in the comparative period.

Transnet is currently carrying out a 5-week refurbishment programme at Saldanha Port. Given some interruptions experienced, there is a risk of overruns to
that period. As a result, the sales guidance is also expected to be at the low end of the full year range at 39.5 Mt.

Year to date, Kumba achieved an average lump:fine ratio of 69:31(YTD Q3 2020: 67:33) and Fe content of 64.1% (YTD Q3 2020: 64.3%). This translated into an
average year to date realised FOB export iron ore price of US$181/wmt (equivalent to US$184/dmt), outperforming the average benchmark Platts 62 index FOB
price of US$154/wmt (equivalent to US$157/dmt).


 Guidance                                                                                                        FY2021          FY2021 Revised            FY2021
                                                                                                                  (dmt)              (dmt)                  (wmt)

 Total sales (Mt)                                                                                               39 - 40                ~39                  ~39.5
 Total production (Mt)                                                                                          40 - 41                ~40                  ~40.5
 Sishen                                                                                                             ~28              ~27.5                    ~28
 Kolomela                                                                                                           ~13              ~12.5                  ~12.5
 Waste stripping (Mt)
 Sishen                                                                                                       150 - 160
 Kolomela                                                                                                       55 - 65

                                                                                                         FY2021 Revised          FY2021 Revised
                                                                                                                                     (dmt)
 On-mine unit cost (R/t)
 Sishen                                                                                                       410 - 420           430 - 440
 Kolomela                                                                                                     305 - 315

2.   Volumes, excluding waste stripping, are reported as wet metric tonnes. Product is shipped with approximately 1.6% moisture. The comparative has been restated as Kumba previously reported on a dry
     basis


Production and sales volumes referred to for the period are 100% of Sishen Iron Ore Company Proprietary Limited ("SIOC"), and attributable to shareholders of
Kumba as well as to 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
operational and financial information provided in this announcement are estimates and have not been reviewed and reported on by the Company’s external
auditors.

Centurion
21 October 2021

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

For further information, please contact:

Company Secretary
Fazila Patel
fazila.patel@angloamerican.com
Tel: +27 12 683 7060
Mobile: +27 83 297 2293

Investors                                                                                       Media
Penny Himlok                                                                                    Sinah Phochana
penny.himlok@angloamerican.com                                                                  sinah.phochana@angloamerican.com
Tel: +27 12 622 8324                                                                            Tel: +27 12 683 7019
Mobile: +27 82 781 1888                                                                         Mobile: +27 76 066 0655


Notes to editors:
Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality iron ore to the global steel industry.
Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the Northern Cape Province. Kumba exports iron ore to customers in a range of
geographical locations around the globe including China, Japan, Korea and a number of countries in Europe and the Middle East.
www.angloamericankumba.com

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-
class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner,
greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we
use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely
and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking,
and nickel – with crop nutrients in development – we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable
Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a
corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the
benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to
improve people’s lives.
www.angloamerican.com

Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including,
without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves
and Mineral Resource estimates) and environmental, social and corporate governance goals and aspirations, are forward-looking statements. By their nature,
such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and th e environment
in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and
commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capa bilities, safety, health or
environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the
impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty
and economic conditions in relevant areas of the world, the actions of competitors, activities by courts, regulators and governmental authorities such as in
relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health,
environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other
risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors
and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or under taking (except
as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct
Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the
Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein
to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement
is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its
historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such,
it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo
American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

Date: 21-10-2021 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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