Iron ore production increased by 4% to 15.7 million tonnes, reflecting a
7% increase at Minas-Rio and a 3% increase at Kumba.
Kumba - Total production increased to 10.0 million tonnes, primarily
driven by a 7% increase at Sishen to 7.0 million tonnes, reflecting an
improved operational performance. Kolomela decreased by 7% to 3.0
million tonnes, as production was constrained by high stock levels at
the mine due to the industrial action at Transnet (the third party rail
and port operator), as well as sub-optimal rail performance following
their Q4 annual shut-down for rail and port maintenance.
Total sales decreased by 34% to 7.1 million tonnes, in light of the
disappointing third party logistics performance, resulting in low levels
of finished stock at the port.
For the full year, Kumba's iron (Fe) content averaged 63.8% (2021:
64.1%), while the average lump:fines ratio was 67:33 (2021: 69:31).
The full year average realised price of $113/tonne(1) (FOB South Africa,
wet basis) was 13% higher than the 62% Fe benchmark price of $100/tonne
(FOB South Africa, adjusted for freight and moisture), reflecting the
lump and Fe content quality premiums that the Kumba products attract,
partly offset by the impact of provisionally priced sales volumes.
Minas-Rio - Production increased by 7% to 5.7 million tonnes, primarily
due to higher plant and mining equipment availability, despite
particularly high rainfall in December that has continued into early
2023.
The full year average realised price of $108/tonne (FOB Brazil, wet
basis) was in line with the Metal Bulletin 66 price of $108/tonne (FOB
Brazil, adjusted for freight and moisture), which reflects the premium
for our high quality product, including higher (~67%) Fe content, but
was offset by the impact of provisionally priced volumes.
2023 Guidance
Production guidance (wet basis) for 2023 is 57-61 million tonnes (Kumba
35-37 million tonnes; Minas-Rio 22-24 million tonnes). Kumba is subject
to third party rail and port performance.
Unit cost guidance (wet basis) for 2023 is c.$39/tonne (Kumba
c.$44/tonne; Minas-Rio c.$32/tonne).
Iron Ore (tonnes) |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q4 2022 vs. Q4 2021 |
Q4 2022 vs. Q3 2022 |
|
|
2022 vs. 2021 |
2022 |
2022 |
2022 |
2022 |
2021 |
2022 |
2021 |
Iron Ore production(1) |
15,682,400 |
16,060,000 |
14,373,900 |
13,164,900 |
15,050,800 |
4 % |
(2)% |
59,281,200 |
63,807,600 |
(7)% |
Iron Ore sales(1) |
13,886,700 |
15,799,200 |
14,470,800 |
13,828,700 |
16,775,700 |
(17)% |
(12)% |
57,985,400 |
63,284,500 |
(8)% |
|
|
|
|
|
|
|
|
|
|
|
Kumba production |
9,961,400 |
9,977,300 |
9,468,800 |
8,292,000 |
9,701,300 |
3 % |
0 % |
37,699,500 |
40,862,200 |
(8)% |
Lump |
6,523,000 |
6,530,300 |
6,229,900 |
5,387,700 |
6,419,900 |
2 % |
0 % |
24,670,900 |
27,552,500 |
(10)% |
Fines |
3,438,400 |
3,447,000 |
3,238,900 |
2,904,300 |
3,281,400 |
5 % |
0 % |
13,028,600 |
13,309,700 |
(2)% |
Kumba production by mine |
|
|
|
|
|
|
|
|
|
|
Sishen |
7,010,500 |
7,085,600 |
7,105,500 |
5,816,100 |
6,538,200 |
7 % |
(1)% |
27,017,700 |
28,014,500 |
(4)% |
Kolomela |
2,950,900 |
2,891,700 |
2,363,300 |
2,475,900 |
3,163,100 |
(7)% |
2 % |
10,681,800 |
12,847,700 |
(17)% |
Kumba sales volumes(2) |
7,053,900 |
9,982,000 |
10,302,700 |
9,332,000 |
10,690,300 |
(34)% |
(29)% |
36,670,600 |
40,292,200 |
(9)% |
Export iron ore(2) |
7,053,900 |
9,982,000 |
10,302,700 |
9,332,000 |
10,690,300 |
(34)% |
(29)% |
36,670,600 |
40,185,100 |
(9)% |
Domestic iron ore |
— |
— |
— |
— |
— |
n/a |
n/a |
— |
107,100 |
n/a |
|
|
|
|
|
|
|
|
|
|
|
Minas-Rio production |
|
|
|
|
|
|
|
|
|
|
Pellet feed |
5,721,000 |
6,082,700 |
4,905,100 |
4,872,900 |
5,349,500 |
7 % |
(6)% |
21,581,700 |
22,945,400 |
(6)% |
Minas-Rio sales volumes |
|
|
|
|
|
|
|
|
|
|
Export – pellet feed |
6,832,800 |
5,817,200 |
4,168,100 |
4,496,700 |
6,085,400 |
12 % |
17 % |
21,314,800 |
22,992,300 |
(7)% |
(1)Total iron ore is the sum of Kumba and Minas-Rio and reported
in wet metric tonnes. Kumba product is shipped with ~1.6%
moisture and Minas-Rio product is shipped with ~9% moisture.
(2)Sales volumes differ to Kumba's standalone results due to
sales to other Group companies. |
(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837 18725550282) |