Kumba - Total production
decreased by 9% to 9.5 million tonnes with Sishen's production 9% lower
at 6.5 million tonnes and Kolomela's 10% lower at 3.0 million tonnes.
Production was reduced in
response to both the elevated finished stock levels at the end of Q2
2020 due to Covid-related rail and port constraints, and in anticipation
of the annual rail and port maintenance scheduled for Q4 2020.
Consequently, stock levels were drawn down to 5.4 million tonnes(1)
from 6.2 million tonnes(1) as at 30 June 2020. Reduced levels of
production supported additional focus on scheduled maintenance and
operational improvement.
Sales volumes increased by 7% to
10.9 million tonnes(1) driven by a 13% increase in export sales as
Transnet's performance returned to pre-Covid-19 levels, with a
significant improvement in loading rates at the port.
Year to date, Kumba product Fe
content averaged 64.3%, while the average lump:fines ratio was 67:33.
Consequently, the year to date average realised price of $103/tonne (FOB
South Africa) was higher than the 62% Fe benchmark price of $90/tonne
(FOB South Africa, adjusted for freight) due to these premiums.
Minas-Rio - Production decreased
by 18% to 5.0 million tonnes, reflecting an approximately one month
planned stoppage to carry out routine internal scanning of the pipeline.
The inspection was completed successfully with operations resuming as
scheduled at the start of October.
The year to date average
realised price of $96/tonne (FOB Brazil) was higher than the Metal
Bulletin 66 price (FOB Brazil, adjusted for freight and moisture) of
$86/tonne, reflecting product quality, including higher (~67%) Fe
content.
Full Year Guidance
Kumba production guidance is
unchanged at 37-39 million tonnes, subject to the extent of further
Covid-19 related disruption.
Minas-Rio production guidance is
unchanged at 22-24 million tonnes, subject to the extent of further
Covid- 19 related disruption.
T1: Production Summary
Iron Ore (000 t) |
Q3
2020 |
Q3
2019 |
Q3
2020 VS Q3 2019 |
Q2
2020 |
Q3
2020 VS Q2 2020 |
9M
2020 |
9M
2019 |
9M 2020 VS 9M 2019 |
Kumba |
9,532 |
10,521 |
-9% |
8,475 |
12% |
27,456 |
30,582 |
-10% |
Minas-Rio(1) |
4,994 |
6,126 |
-18% |
6,198 |
-19% |
17,616 |
16,951 |
4% |
(1)
Volumes are reported as wet metric tonnes. Product is shipped with ~9%
moisture.
T2: Production and Sales
Iron Ore (tonnes) |
Q3
2020 |
Q2
2020 |
Q1
2020 |
Q4
2019 |
Q3
2019 |
Q3
2020 VS Q3 2019 |
Q3
2020 VS Q2 2020 |
9M
2020 |
9M
2019 |
9M
2020 VS 9M 2019 |
Kumba production |
9,531,600 |
8,474,900 |
9,449,300 |
11,806,100 |
10,521,300 |
-9% |
12% |
27,455,800 |
30,581,600 |
-10% |
Lump |
6,488,700 |
5,709,800 |
6,387,900 |
7,898,500 |
6,955,500 |
-7% |
14% |
18,586,400 |
20,611,500 |
-10% |
Fines |
3,042,900 |
2,765,100 |
3,061,400 |
3,907,600 |
3,565,800 |
-15% |
10% |
8,869,400 |
9,970,100 |
-11% |
Kumba production by mine |
|
|
|
|
|
|
|
|
|
|
Sishen |
6,511,500 |
5,782,200 |
6,579,600 |
8,263,900 |
7,153,500 |
-9% |
13% |
18,873,300 |
20,910,500 |
-10% |
Kolomela |
3,020,100 |
2,692,700 |
2,869,700 |
3,542,200 |
3,367,800 |
-10% |
12% |
8,582,500 |
9,671,100 |
-11% |
Kumba sales volumes |
10,902,900 |
8,084,000 |
10,683,500 |
10,469,400 |
10,153,800 |
7% |
35% |
29,670,400 |
31,504,300 |
-6% |
Export
iron ore(1) |
10,902,900 |
8,084,000 |
10,331,900 |
10,237,100 |
9,670,200 |
13% |
35% |
29,318,800 |
29,556,400 |
-1% |
Domestic iron ore |
— |
— |
351,600 |
232,300 |
483,600 |
n/a |
n/a |
351,600 |
1,947,900 |
-82% |
|
|
|
|
|
|
|
|
|
|
|
Minas-Rio production |
|
|
|
|
|
|
|
|
|
|
Pellet
feed (wet basis) |
4,993,800 |
6,198,000 |
6,424,100 |
6,163,600 |
6,126,100 |
-18% |
-19% |
17,615,900 |
16,951,300 |
4% |
Minas-Rio sales volumes |
|
|
|
|
|
|
|
|
|
|
Export
– pellet feed (wet basis) |
4,784,600 |
6,611,600 |
6,081,200 |
6,570,700 |
5,734,500 |
-17% |
-28% |
17,477,400 |
16,356,300 |
7% |
(1) Sales volumes differ to
Kumba's standalone results due to sales to other Group companies.
More Info:
Q3 2020 PRODUCTION REPORT |