Kumba iron ore production comes in at bottom of guidance

The iron ore miner has expressed its opinion that iron ore production would come in at the bottom of its guidance range this year, with sales on target. And while costs at its Kolomela mine may be a little higher than expected, they’re likely to be lower at Sishen.

Kumba Iron Ore said it would ensure that its value chain remained balanced and that stockpiled ore was maintained at optimal levels, it said in an operational update. Production is expected at about 37 million tons for the year to end-December.

Kumba says it is ensuring that its value chain remains balanced, with finished stock maintained at optimal levels.

The iron ore miner previously forecast a range of 37-39Mt. Sales were likely to be about 39Mt, in the mid-range of its 38-40Mt guidance, following the completion of the annual rail and port maintenance by Transnet.

Sishen was just to between R380 and R390 per ton on-mine unit cost guidance, down from R385 to R295 previously, while Kolomela’s had increased to between R290 and R300 from R280 to R290.

Kumba cropped its production guidance for next year and 2022, and issued new guidance for 2023, when it expects to produce 41-42 million ton of the iron ore.

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