Total finished stock of 7.8 million tonnes (31 December 2024: 7.5Mt) comprised 6.2 Mt (31 December 2024: 6.9 Mt) at the mines and 1.6 Mt (31 December 2024: 0.6Mt) of stock ready to ship at Saldanha Bay Port. Sales of 9.0 million tonnes increased by 6% (Q1 2024: 8.5 Mt), reflecting the impact of stacker reclaimer challenges in the comparative Q1 2024 period, as well as the benefit of improved rail performance and finished stock levels at the port in Q1 2025.
Kumba’s Chief Executive, Mpumi Zikalala, said: “Against the backdrop of an uncertain global macro environment, our strategic focus on operational excellence and cost optimisation is even more relevant. The successful reconfiguration of our business in 2024 significantly improved our resilience in a tougher operating environment. Pleasingly, we have continued to unlock value through our high-quality iron ore products, achieving an average realised price 11% above benchmark prices.
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“Our commitment to operational excellence is demonstrated by production of 9.0 million tonnes, in line with sales of 9.0 Mt. The 5% uplift in Transnet’s rail performance, which supported a 6% increase in sales volumes, is encouraging. Following this positive start to the year, we are maintaining our production and sales guidance of 35 – 37 million wet metric tonnes and our C1 unit cost guidance of ~US$39 per tonnes”, Zikalala added.
Kumba also said Iron ore markets were underpinned by higher steel exports in China, partially offsetting property weakness and lower steel output in traditional sales markets such as Europe, Japan and South Korea. Iron ore supply was hampered by seasonal weather disruptions in the southern hemisphere. Lower coal prices and steel stocks in China supported steel mill margins and consequently demand for high quality iron ore products.
Kumba’s average iron content was maintained at 64.2% (Q1 2024: 64.2%) while the average lump to fine ratio improved to 68:32 (Q1 2024: 66:34). The average realised FOB export price of US$98/wmt, was 11% above the 62% Fe benchmark price of US$88/wmt, reflecting the benefit of high quality iron ore and an increase in the lump to fine ratio.
Subject to Transnet’s logistics constraints and the outcome of wage negotiations with its organised labour partners, Kumba’s full year 2025 is unchanged and is as follows:
Zikalala said “The ultra-high-dense-medium-separation technology project at Sishen that will treble the proportion of premium grade iron ore products, is well on schedule. Conversion of the first coarse module is underway, and the engineering design and fabrication are progressing ahead of plans.”
“Kumba continues to work closely with Transnet and the Ore User’s Forum (OUF) to prioritise the maintenance related to the independent technical assessment. As part of the OUF, we are also working through the Department of Transport’s request for information, due for submission on 9 May 2025, which will be followed by the request for proposals later in the year.”, Zikalala added.
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