Kumba Iron Ore : production and sales report for the quarter ended 31 December 2016

Overview:

• Sishen production for the full year of 28.4Mt, exceeding guidance target of 27Mt
• Record full year production of 12.7 Mt achieved at Kolomela

'000 tonnes	Quarter		% change	Quarter	% change
	Q4 2016	Q4 2015	Q4 2016 vs Q4 2015	Q3 2016	Q4 2016 vs Q3 2016
Total	11,928	10,935	9	11,760	1
- Sishen mine	8,490	7,661	11	8,349	2
DMS plant	5,379	5,124	5	5,325	1
Jig plant	3,111	2,537	23	3,024	3
- Kolomela mine	3,438	2,854	20	3,411	1
- Thabazimbi mine	-	420	(100)	-	-

'000 tonnes	Quarter		% change	Quarter	% change
	Q4 2016	Q4 2015	Q4 2016 vs Q4 2015	Q3 2016	Q4 2016 vs Q3 2016
Total	11,224	11,043	2	11,050	2
- Export sales	10,611	10,509	1	10,343	3
- Domestic sales	613	534	15	707	(13)
Sishen mine	613	280	119	707	(13)
Thabazimbi mine	-	254	(100)	-	-

Sishen produced 8.5Mt up 11% on 4Q15. Run rates during the quarter were in line with the considerable improvement realised in Q3 2016 following the successful completion of its restructuring to a lower cost pit shell. Full year production was 28.4Mt exceeding the guided target of 27Mt. The higher production was attributable to improved mining productivity as well as access to low strip ratio ore and higher plant yields during the second half of the year. Waste removal, as planned, was 32% lower at 37Mt compared to 4Q15.

Kolomela production rose by 20% to 3.4Mt compared to Q4 2015, with the mine exceeding its full year target of 12Mt to 12.7Mt. The improvement in production was driven by higher levels of throughput as a result of further debottlenecking and optimization of the plant. Waste mined was 59% higher than the corresponding period in 2015 at 15.4Mt in line with higher production levels.

Export sales increased marginally compared to both 3Q16 and 4Q15 to 10.6Mt. Total finished product stocks were 3.5Mt, compared to 3.1Mt at 30 September 2016.