Kumba Iron Ore Production & Sales Report for Apr-Jun 2021 Quarter
Kumba Iron Ore CNBC Africa

Kumba Iron Ore Production & Sales Report for Apr-Jun 2021 Quarter

Kumba’s Chief Executive Mr Themba Mkhwanazi said “Kumba's performance in the first half demonstrates our operational strength

Kumba’s Chief Executive Mr Themba Mkhwanazi said “Kumba's performance in the first half demonstrates our operational strength underpinned by our strong commitment to safety and health. We have now operated for more than five years without a fatality and continued to protect our workforce and support our communities through the Covid-19 pandemic. On behalf of the Kumba team, I thank each and every one of our people and contractors for looking after each other. It is through these collaborative efforts that we can continue to keep each other safe and healthy. Our operations performed well and production increased by 12%, while sales increased by 3%, reflecting the impact of rail constraints and periods of severe weather at Saldanha Port. We are therefore revising sales guidance down by 1 million tonne to 39–40 million tonne while maintaining production guidance at 40-41 million tonne as we continue to build up stock at the port. As the iron ore market strengthened, we have seen a strong and sustained demand for our high quality products. We achieved an average realised price of US$220 per tonne in the first half of the year, well above the benchmark price of US$166 per tonne, driven by our focus on optimising the value of our products for the long-term benefit of all our stakeholders."

Total production increased by 12% to 20.4 million tonne (1H 2020 18.2 million tonne), driven by good ex-pit ore and plant performance. Q2 2021 increased by 14% to 9.8 million tonne (Q2 2020: 8.6 million tonne).

Total sales increased by 3% to 19.5 million tonne (H1 2020: 18.9 million tonne), on the back of a 5% increase in export sales to 19.4 million tonne, partly offset by a 0.3 million tonne decrease in domestic off-take to 0.1 million tonne. Sales in Q2 2021 increased by 12% to 9.2 million tonne.

Average realised FOB export iron ore price of USD 216 per wet metric tonne (wmt), equivalent to USD220 per dry metric tonne (dmt), well above the average benchmark price of USD163 per wmt or USD 166 per dmt, reflecting the high quality of Kumba's iron ore.

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