Improved Railway Transportation Drives 6% Growth in Kumba Iron Ore Sales

According to Kumba Iron Ore's latest quarterly report, the company sold 9 million mt of iron ore in Q1, which is equivalent to its total production.

Kumba has been collaborating with Transnet and the Ore Users Forum to prioritize maintenance work related to independent technical assessments of the iron ore line.

Following this positive start, Kumba maintained its full-year iron ore production and sales guidance between 35 million mt and 37 million mt.

The company's average FOB export price for iron ore this quarter was $98/mt, 11% higher than the benchmark price of $88/mt.

CEO Mpumi Zikalala stated that amidst the uncertain global macro environment, it is even more crucial for Kumba to focus its strategy on operational excellence and cost optimization.

"We successfully restructured our business in 2024, significantly enhancing our resilience in a more challenging operating environment. We are pleased to continue unlocking value through our high-quality iron ore products, achieving an average price 11% higher than the benchmark."

In this quarter, Kumba increased its waste stripping volume by 8% to 40.5 million mt, thanks to an optimized mine plan that operates as an integrated mining complex and develops greater flexibility in the production process.

Although production at the Sishen mine decreased by 9% YoY to 6 million mt, production at the Kolomela mine increased by 12% YoY to 3 million mt.

Importantly, iron ore shipped to ports by rail increased by 5% YoY to 9.8 million mt.