Anglo American: Kumba iron ore production declines y-o-y in H1CY'24

• Output drop attributed to lower rail capacity
  
  
• Guidance intact at 58-60 mnt for current year
  
  

Anglo American, one of the major global iron ore miners, has recently announced its H1CY'24 (January-June 2024) results. The miner's iron ore output from Kumba declined by 2% y-o-y to 18.45 mnt in H1CY'24 as compared with 18.74 mnt in H1CY'23. The decrease in production was due to the reconfiguration of the mine to align production to lower third-party rail capacity and alleviate mine stockpile constraints.

Kumba iron ore sales down 5% in H1CY'24

Sales volumes at the Kumba mine decreased by 5% y-o-y to 18.08 mnt in H1CY'24 as compared to 18.95 mnt in H1CY'23.

Meanwhile, sales volume increased by 3% y-o-y, assessed at 9.7 mnt in Q2CY24 against 9.45 mnt in Q2CY'23.

Minas-Rio pellet production rises 2% in H1CY'24

Minas Rio mines' pellet production for H1CY'24 was at 12.26 mnt (wet tonne basis), inching up by 2% y-o-y against 11.97 mnt in H1CY'23. There was continued operational improvement at the crushing circuit and beneficiation plant, despite the impact of lower mining fleet availability.

On a quarterly analysis, output remained largely stable at 6.39 mnt in Q2CY'24 as compared to 6.32 mnt in Q2CY'23.

Minas-Rio's pellet sales remain stable in H1CY'24

Minas Rio's pellet sales were recorded at 11.4 mnt (wet tonne basis) in H1CY'24, remaining stable y-o-y as compared to 11.3 mnt in H1CY'23. On a quarterly basis, sales increased by 8% y-o-y to 6.8 mnt in Q2CY'24 as compared to 6.32 mnt in Q2CY'23.

Outlook for CY'24

Iron ore CY'24 guidance remains unchanged at 58-62 mnt (Kumba at 35-37 mnt and Minas-Rio at 23-25 mnt). Kumba is subject to third-party rail and port availability and performance.