Anglo American: Iron ore increases by 9% to 15.6 million tonnes
Kumba – Total production decreased to 9.3 million tonnes, primarily driven by a 9% decrease in Sishen’s production to 6.4 million tonnes due to high levels of finished stock at the mine as a result of rail constraints. This was partially offset by a 22% increase at Kolomela to 2.9 million tonnes, owing to operational challenges in the comparative period in 2022.
Total sales decreased by 8% to 9.5 million tonnes due to low levels of finished stock at the port given ongoing weak logistics performance from Transnet, the third-party rail and port operator. As a result, total finished stock increased to 7.9 million tonnes, with the majority of this located at the mines.
Kumba’s iron (Fe) content averaged 63.3% (H1 2022: 64.0%), while the average lump:fines ratio was 67:33 (H1 2022: 66:34).
The H1 2023 average realised price of $106/tonne (1) (FOB South Africa, wet basis) was 4% higher than the 62% Fe benchmark price of $102/tonne (FOB South Africa, adjusted for freight and moisture), as the lump and Fe content quality premiums that the Kumba products attract more than offset the impact of provisionally priced sales volumes.
Minas-Rio – Production increased by 29% to 6.3 million tonnes, driven by strong mining and plant performance and timing of maintenance. This has resulted in a number of performance records being achieved this quarter, reflecting the operational improvement.
The H1 2023 average realised price of $104/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 65(2) price of $101/tonne (FOB Brazil, adjusted for freight and moisture), which takes into account the premium for our high quality product, including higher (~67%) Fe content, which more than offset the impact of provisionally priced sales volumes.
2023 Guidance
Production guidance for 2023 is unchanged at 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 for 2023 is c.$39/tonne, revising Kumba to c.$43/tonne(3) (previously c.$44/tonne) reflecting the weaker South African rand and Minas-Rio to c.$33/tonne (previously c.$32/tonne) reflecting the stronger Brazilian real.
