Kumba Iron Ore production in Q4 2023 decreased by 27%
Kumba production and sales report for the fourth quarter, and trading statement, for the year ended 31 December 2023. Production decreased by 27% to 7.2 Mt in Q4 2023 (Q4 2022: 9.7 Mt) and by 5% to 35.7 Mt for the full year 2023 to align with constrained rail performance in order to draw down high mine stockpiles.
Sales increased by 36% to 9.3 Mt in Q4 2023 (Q4 2022: 6.9 Mt) and by 1% to 37.2 Mt for the full year 2023. Performance in Q4 2022 was impacted by logistics challenges caused by industrial action at Transnet.
Finished stock for the full year 2023 reduced to 7.1 Mt (Q3 2023: 9.0 Mt; Q4 2022: 7.8 Mt), with the majority of stock situated at the mines and sub-optimal levels of 0.6 Mt at the Saldanha Bay Port.
Achieved an average realised free-on-board (FOB) export iron ore price of US$117/wmt,15% above the benchmark price of US$102/wmt.
Mining and production
During Q4 2023, as part of Kumba’s planned slowdown to alleviate high mine stockpiles, waste mining decreased by 16% to 46 Mt (Q4 2022: 55.0 Mt). Sishen’s waste mining decreased by 6% to 37.4 Mt (Q4 2022: 39.8 Mt), while Kolomela’s waste mining, includes the rephasing of the Kapstevel South pit and a reduction in the waste mined by 10 Mt. As a result, Kolomela’s waste mining decreased by 43% to 8.6 Mt (Q4 2022: 15.3 Mt).
Total production in Q4 2023 decreased by 27% to 7.2 Mt in Q4 2023 (Q4 2022: 10.0 Mt) following the curtailment of processing plants at both mines during December to allow for the draw down of high on-mine stockpiles. Sishen’s production decreased by 15% to 6.0 Mt (Q4 2022: 7.0 Mt) while Kolomela’s production was 57% lower at 1.3 Mt (Q4 2022: 3.0 Mt).
Sishen and Kolomela’s unit costs were in line with our revised guidance of R589 per tonne and R482 per tonne, respectively (revised guidance: Sishen R570-R590 per tonne; Kolomela R480-R500 per tonne). C1 unit costs of US$41 per tonne (revised guidance: US$42 per tonne) largely reflects the benefit of Kolomela’s cost optimisation focus supplemented by Rand weakness.
