Anglo American: Kumba iron ore production remains stable y-o-y in Q1CY'24

Anglo American, one of the major global iron ore miners, has recently announced its quarterly results. The miner's iron ore output from Kumba inched down by 2% to 9.27 mnt in Q1CY'24 as compared with 9.42 mnt in Q1CY'23. The decrease in production was largely driven by the reconfiguration of the mine to align production to lower third-party rail capacity and alleviate mine stockpile constraints. The output increased by 4% at Sishen mines to 6.5 mnt and at Kolomela mines decreased by 12% to 2.7 mnt.

On a sequential basis, output was 10% up against 13.8 mnt in Q4CY'23.

Kumba iron ore sales down 12% in Q1CY'24

Sales volumes decreased by 12% to 8.4 mnt in Q1CY'24 as compared to 9.4 mnt in Q1CY'23. The sales fell due to equipment reliability challenges at the Saldanha Bay port as well as adverse weather conditions.

Meanwhile, sales volume decreased by 10% q-o-q against 9.4 mnt in Q4CY23.

Minas-Rio pellet production rises by 4% in Q1CY'24

Minas Rio mines' pellet production for Q1CY'24 was at 5.8 mnt (wet tonne basis), up 4% against 5.6 mnt in Q1CY'23. High stock levels at the mine by the end of 2023 ensured a secure ore feed for Q1 production even in light of the heaviest rainfall seen in six years. Production also benefited from operational enhancements at both the crushing circuit and plant, resulting in improved recovery.

On a quarterly basis too, output dropped by 11% as compared to 6.5 mnt in Q4CY'23.

Minas-Rio's pellet sales fall in Q1CY'24

Minas Rio's pellet sales were recorded at 4.6 mnt (wet tonne basis) in Q1CY'24, registering a decline of 9% as compared to 5.04 mnt in Q1CY'23. On a quarterly basis, sales decreased significantly compared to 7.06 mnt in Q4CY'23.

Outlook for CY'24

Iron ore CY'24 guidance remained 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.