Anglo American: Kumba Iron Ore Production Up 12% in Q4 CY19

Anglo American Kumba iron ore production for Q4 CY19 witnessed at 11.8 MnT, up sharply by 12% as against 10.5 MnT in Q3 CY19 amid improved run rates post maintainence earlier in CY19.

The production at Sishen iron ore mine increased to 8.3 MnT (up 19% Q-o-Q) as a result of improved operational performance in Q4 2019. Also, Kolomela output picked up 10% to 3.5 MnT reflecting the ramp-up in production following the temporary closure of the DMS plant for an infrastructure upgrade in Q1 CY19 and its subsequent re-opening, on schedule, in Q4 CY19.

The production increased 16% in Q4 CY19 as compared to Q4 CY18 at 10.2MnT.

In CY19, the total iron ore output recorded at 42.4 MnT, down slightly as against 43.1 MnT in CY18. The full year FOB realised price was USD 97/MT.

Kumba iron ore exports up; domestic sales dropped in Q4 CY19
o The Kumba iron ore exports in Q4 CY'19 recorded at 10.2 MnT as against 9.7 MnT in last quarter.
o The Kumba iron ore domestic sales dropped sharply to 0.2 MnT against 0.5 MnT in Q3 CY19. The drop is amid lower take off and winding down of Saldanha steel plant.

Minas-Rio mine production picked up in Q4 CY19
Minas Rio mines, pellet production for the last quarter CY19 witnessed at 6.2 MnT (wet MT basis) of high grade ore, up against 6.1 MnT in Q3 CY19 amid ramp-up at mines. The tailings dam was completed in August 2019 and approval for the conversion of the installation licence to an operating licence received in December 2019. On yearly basis, production increased significantly in Q4 CY19 compared to 0.2 MnT in Q4 CY18.

For CY19, the total output at Minas Rio witnessed sharp hike to 23.1 MnT against 3.40 MnT in CY18.

Minas Rio pellet sales increased 16% in Q4 CY19
Minas Rio pellet sales recorded at 6.6 MnT (wet MT basis) in Q4 CY19, up 16% as compared to 5.7 MnT in Q3 CY19. The pellet sales has picked up this year after being nil for H2 CY18, due to resumption at mine in Dec '18.

Anglo American: Key Updates
--Minas Rio pellet production guidance for 2020 intact at 22-24 MnT which includes one month production stoppage in Q2 CY20.

--The 2020 production guidance for Kumba iron ore mine remains unchanged at 42-43 MnT.

--In Q4 CY19, the ratio of lump to fines in Kumba ore was 66:34 and average Fe content at 64.1%. For CY19 the ratio of lump to fines stood at 67:33 with average Fe content at 64.2%.