Anglo-American's iron ore output drops 7% in CY'22

Anglo-American, one of the major global iron ore miners, recently announced its quarterly and yearly results. The miner's total iron ore output decreased by 7% y-o-y to 59.3 million tonnes (mn t) in CY'22 compared to 63.8 mn t in CY'21.

Production increased by 4% y-o-y to 15.7 mnt in Q4CY'22 as against 15.1 mnt in Q4CY'21. On a quarterly basis, production fell by 2% in Q4CY'22 compared to 16 mnt in Q3CY'22.

Kumba iron ore results in CY'22

• Kumba mines total iron ore output decreased by 8% y-o-y to 37.7 mnt in CY'22 compared to 40.86 mn t in CY'21. On a quarterly basis, Kumba produced 9.96 mnt iron ore in Q4 which is 3% more against 9.7 mnt in Q4CY'22. while production remained stable compared to Q3CY'22.
  
  
• Sales fell by 9% y-o-y to 36.67 mnt in CY'22 compared to 40.29 mnt in CY'21. Q4CY'22 sales were recorded at 7.05 mnt.
  
  
• Kumba production is down amid high stock levels at the mine due to Transnet (the third-party rail and port operator) as well as sub-optimal rail performance following their Q4 annual shutdown for rail and port maintenance.
  
  

Minas-Rio pellet production down y-o-y

• Total iron ore pellet output of the Minas-Rio mines decreased by 6% y-o-y to 21.58 mnt in CY'22 compared to 22.94 mn t in CY'21. On a quarterly basis, the mines produced 5.72 mnt of iron ore pellet in Q4 which is 7% more than 5.35 mnt in Q4CY'21. Production decreased by 6% compared to 6.08 mnt in Q3CY'22.
  
  
• Sales fell by 7% y-o-y to 21.31 mnt in CY'22 compared to 22.99 mnt in CY'21. Q4 sales were recorded at 6.83 mnt.
  
  
• Minas-Rio's pellet production rose in Q4 despite heavy rainfall in December that continued into early 2023 due to increased availability of plant and mining equipment.
  
  

Outlook for CY'23

• Iron ore production guidance for CY'23 has been kept at 57-61 mn t. Total iron ore production is the sum of the operations in Minas-Rio in Brazil and Kumba in South Africa. Kumba is 35-37 mnt while and Minas-Rio is 22-24 mnt. Kumba output is contingent on third-party rail and port performance.
  
  
• Kumba product is shipped with 1.6% moisture and Minas-Rio product is shipped with 9% moisture.