Anglo American Production Report Q3 2021

RNS Number : 7484P

Anglo American PLC

21 October 2021

 

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21 October 2021

Anglo American plc

Production Report for the third quarter ended 30 September 2021

Mark Cutifani, Chief Executive of Anglo American , said: "Production is up 2% ⁽¹⁾ compared to Q3 of last year, with our operating levels generally maintained at approximately 95% ⁽²⁾ of normal capacity. The increase in production is led by planned higher rough diamond production at De Beers, increased production from our Minas-Rio iron ore operation in Brazil, reflecting the planned pipeline maintenance in Q3 2020, and improved plant performance at our Kumba iron ore operations in South Africa.

"We are broadly on track to deliver our full year production guidance across all products, while taking the opportunity to tighten up the guidance for diamonds, copper and iron ore within our current range as we approach the end of the year. Our copper operations in Chile continue to work hard on mitigating the risk of water availability due to the challenges presented by the longest drought on record for the region, including through sourcing water that is not suitable for use elsewhere and further increasing water recycling."

Q3 2021 highlights

• Rough diamond production increased by 28%, principally from the Jwaneng and Venetia mines, reflecting planned higher production in response to the ongoing consumer demand recovery led by the key US and China markets.

• Copper production decreased by 6% due to planned maintenance at Collahuasi, while total year to date production across all copper operations increased marginally by 1% despite ongoing water availability constraints caused by record drought conditions in Chile.

• Our Platinum Group Metals (PGMs) operations delivered a 39% increase in refined output, reflecting stable performance from the ACP Phase A unit.

• Iron ore production increased by 15%, driven primarily by a 22% uplift from Minas-Rio, reflecting the planned maintenance period in Q3 2020 for routine internal scanning of the pipeline. Kumba production also performed strongly, increasing by 11% due to improved plant performance.

• At our longwall metallurgical coal operations in Australia, Moranbah has steadily improved as they mined through challenging geological zones this quarter, and development work at Grosvenor continues to progress, with longwall mining expected to restart towards the end of the year.

• Primary nickel production increased by 2% over the period and by-product nickel from our PGMs business increased by 20% to 6,000 tonnes.

Production	Q3 2021	Q3 2020	% vs. Q3 2020	YTD 2021	YTD 2020	% vs. YTD 2020
Diamonds (Mct)(3)	9.2	7.2	28%	24.6	18.4	33%
Copper (kt)(4)	157	166	(6)%	487	480	1%
Platinum group metals (koz)(5)	1,116	1,113	0%	3,195	2,733	17%
Iron ore (Mt)(6)	16.9	14.7	15%	48.8	45.5	7%
Metallurgical coal (Mt)	4.3	4.8	(11)%	10.5	12.6	(17)%
Nickel (kt)(7)	10.4	10.2	2%	31.1	31.9	(3)%
Manganese ore (kt)	1,004	939	7%	2,849	2,578	11%

(1)  Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations, the announced sale of our interest in Cerrejón and the closure of the manganese alloy operations.

(2)  Production capacity excludes Grosvenor.

(3)  De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(4)  Contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the Platinum Group Metals business unit).

(5)  Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.

(6)  Wet basis.

(7)  Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).

Production Outlook Summary

2021 production guidance is summarised as follows:

	2021 production guidance(1)
Diamonds(2)	~32 Mct
	(previously 32-33Mct)
Copper(3)	650-660 kt
	(previously 650-680kt)
Platinum Group Metals(4)	4.2-4.4 Moz
Iron Ore(5)	~64.5 Mt
	(previously 64.5-66.5Mt)
Metallurgical Coal(6)	14-16 Mt
Nickel(7)	42-44 kt

(1)  Subject to the extent of further Covid-19 related disruption.

(2)  On a 100% basis, except for the Gahcho Kué joint venture, which is on an attributable 51% basis.

(3)  Copper operations in Chile only. On a contained-metal basis.

(4)  5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2021 metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(5)  Wet basis.

(6)  Excludes thermal coal by-product from Australia.

(7)  Nickel operations in Brazil only.

Realised Prices

	Q3 YTD 2021	Q3 YTD 2020	Q3 YTD 2021 vs.  Q3 YTD 2020
Copper (USc/lb)(1)	434	273	59	%
Platinum Group Metals
Platinum (US$/oz)	1,118	876	28	%
Palladium (US$/oz)	2,582	2,143	20	%
Rhodium (US$/oz)	22,009	9,465	133	%
Basket price (US$/PGM oz)(2)	2,868	1,869	53	%
Iron Ore - FOB prices(3)	176	99	78	%
Kumba Export (US$/wmt)(4)	181	101	79	%
Minas-Rio (US$/wmt)(5)	167	96	74	%
Metallurgical Coal - HCC (US$/t)(6)	149	114	31	%
Nickel (USc/lb)	748	531	41	%

(1)  The realised price for Copper excludes third party sales volumes.

(2)  Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).

(3)  Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as Kumba previously reported on a dry basis.

(4)  Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $184/t (Q3 2020: $103/t) and this was higher than the dry 62% Fe benchmark price of $157/t (FOB South Africa, adjusted for freight).

(5)  Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).

(6)  Weighted average coal sales price achieved at managed operations. Metallurgical Coal PCI (US$/t) Q3 2021 was US$138/t and Q3 2020 was US$90/t, resulting in a 53% YTD movement.  Thermal Coal Australia (US$/t) Q3 2021 was US$105/t and Q3 2020 was US$56/t, resulting in a 88% YTD movement.

De Beers

De Beers(1) (000 carats)	Q3	Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2020			2021			2021	2020
Botswana	6,403	4,827	33	%	5,727	12	%	17,090	12,296	39	%
Namibia	399	242	65	%	338	18	%	1,075	1,111	(3)	%
South Africa	1,577	1,178	34	%	1,276	24	%	4,014	2,484	62	%
Canada	797	915	(13)	%	899	(11)	%	2,406	2,548	(6)	%
Total carats recovered	9,176	7,162	28	%	8,240	11	%	24,585	18,439	33	%

Rough diamond production increased by 28% to 9.2 million carats, reflecting planned higher production to meet stronger demand for rough diamonds.

In Botswana, production increased by 33% to 6.4 million carats primarily driven by to the planned treatment of higher grade ore at Jwaneng, partly offset by lower production at Orapa due to the planned closure of Plant 1.

Namibia production increased by 65% to 0.4 million carats reflecting the suspension of the marine fleet during Q3 2020, as part of the response to lower demand at that time.

South Africa production increased by 34% to 1.6 million carats due to planned treatment of higher grade ore from the final cut of the Venetia open pit and an improvement in plant performance.

Production in Canada decreased by 13% to 0.8 million carats due to lower grade ore being processed.

Demand for rough diamonds continued to be robust, with positive midstream sentiment reflecting strong demand for polished diamond jewellery, particularly in the key markets of the US and China. Rough diamond sales totalled 7.8 million carats (7.0 million carats on a consolidated basis) ⁽²⁾ from two Sights, compared with 6.6 million carats (6.5 million carats on a consolidated basis) ⁽²⁾ from three Sights in Q3 2020, and 7.3 million carats (6.5 million carats on a consolidated basis) ⁽²⁾ from two Sights in Q2 2021 ⁽³⁾ .

Full Year Guidance

Production guidance ⁽¹⁾ is tightened to ~32 million carats (previously 32-33 million carats) (100% basis), due to continuing operational challenges, subject to the extent of any further Covid-19 related disruptions.

(1)  De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2)  Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

(3)  Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight was extended beyond its normal week-long duration. As a result, 0.2Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

 

De Beers(1)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng	3,954	3,169	3,091	1,452	1,748	126	%	25	%	10,214	6,086	68	%
Orapa(2)	2,449	2,558	1,869	2,811	3,079	(20)	%	(4)	%	6,876	6,210	11	%
Total Botswana	6,403	5,727	4,960	4,263	4,827	33	%	12	%	17,090	12,296	39	%
Debmarine Namibia	309	249	249	256	147	110	%	24	%	807	869	(7)	%
Namdeb (land operations)	90	89	89	81	95	(5)	%	1	%	268	242	11	%
Total Namibia	399	338	338	337	242	65	%	18	%	1,075	1,111	(3)	%
Venetia	1,577	1,276	1,161	1,287	1,178	34	%	24	%	4,014	2,484	62	%
Total South Africa	1,577	1,276	1,161	1,287	1,178	34	%	24	%	4,014	2,484	62	%
Gahcho Kué (51% basis)	797	899	710	776	915	(13)	%	(11)	%	2,406	2,548	(6)	%
Total Canada	797	899	710	776	915	(13)	%	(11)	%	2,406	2,548	(6)	%
Total carats recovered	9,176	8,240	7,169	6,663	7,162	28	%	11	%	24,585	18,439	33	%
Sales volumes
Total sales volume (100)% (Mct)(3)	7.8	7.3(4)	13.5(4)	6.9	6.6	18	%	7	%	28.6	15.8	81	%
Consolidated sales volume (Mct)(3)	7.0	6.5(4)	12.7(4)	6.4	6.5	8	%	8	%	26.2	15.0	75	%
Number of Sights (sales cycles)	2	2(4)	3(4)	2	3					7(4)	7(5)

(1)  De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2)  Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.

(3)  Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

(4)  Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

(5)  Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.

Copper

Copper(1) (tonnes)	Q3	Q3	Q3 2021  vs.  Q3 2020		Q2	Q3 2021  vs.  Q2 2021		YTD	YTD	YTD 2021  vs.  YTD 2020
	2021	2020			2021			2021	2020
Los Bronces	79,600	79,400	0	%	84,400	(6)	%	242,800	228,800	6	%
Collahuasi (44% share)	65,300	75,500	(14)	%	74,300	(12)	%	211,200	217,600	(3)	%
El Soldado	11,600	10,800	7	%	11,000	5	%	32,500	33,100	(2)	%
Total Copper	156,500	165,700	(6)	%	169,700	(8)	%	486,500	479,500	1	%

(1)  Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the Platinum Group Metals business unit).

Copper production decreased by 6% to 156,500 tonnes due to planned plant maintenance at Collahuasi.

Production from Los Bronces of 79,600 tonnes was in line with prior year. An increase in plant throughput was fully offset by planned lower grade (0.70% vs 0.73%) and lower copper recovery (79.7% vs 80.9%).

At Collahuasi, attributable production decreased by 14% to 65,300 tonnes due to planned major plant maintenance.

Production from El Soldado increased by 7% to 11,600 tonnes reflecting strong plant performance, partially offset by planned lower grade (0.73% vs. 0.78%).

The year to date average realised price of 434c/lb, includes 171,661 tonnes of copper that as at 30 September was provisionally priced at an average price of 413c/lb.

Chile´s central zone continues to face challenging climate conditions with a continuation of the longest drought recorded. These conditions are placing significant pressure on water availability and pose an ongoing risk to production at Los Bronces in Q4 2021 and 2022.

Full Year Guidance

Production guidance is tightened to 650,000-660,000 tonnes (previously 650,000-680,000 tonnes), due to plant performance challenges at Los Bronces, subject to water availability and the extent of any Covid-19 related disruption.

 

Copper(1)	Q3	Q2	Q1	Q4	Q3	Q3 2021  vs.  Q3 2020		Q3 2021  vs.  Q2 2021		YTD	YTD	YTD 2021  vs.  YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Los Bronces mine(2)
Ore mined	10,512,600	11,403,100	10,812,400	11,546,300	8,414,600	25	%	(8)	%	32,728,100	27,665,000	18	%
Ore processed - Sulphide	12,715,400	13,168,200	11,520,400	13,031,300	11,956,800	6	%	(3)	%	37,404,000	29,003,500	29	%
Ore grade processed - Sulphide (% TCu)(3)	0.70	0.68	0.72	0.77	0.73	(4)	%	3	%	0.70	0.83	(16)	%
Production - Copper cathode	9,800	9,800	9,900	10,200	9,300	5	%	0	%	29,500	29,100	1	%
Production - Copper in concentrate	69,800	74,600	68,900	85,700	70,100	0	%	(6)	%	213,300	199,700	7	%
Total production	79,600	84,400	78,800	95,900	79,400	0	%	(6)	%	242,800	228,800	6	%
Collahuasi 100% basis (Anglo American share 44%)
Ore mined	30,327,200	26,943,000	21,220,300	18,110,000	16,412,100	85	%	13	%	78,490,500	53,849,200	46	%
Ore processed - Sulphide	12,926,400	14,334,300	14,441,600	12,928,700	14,612,300	(12)	%	(10)	%	41,702,300	42,902,900	(3)	%
Ore grade processed - Sulphide (% TCu)(3)	1.28	1.29	1.26	1.18	1.27	1	%	(1)	%	1.27	1.26	1	%
Production - Copper in concentrate	148,300	168,800	162,800	134,600	171,500	(14)	%	(12)	%	479,900	494,500	(3)	%
Anglo American's 44% share of copper production for Collahuasi	65,300	74,300	71,600	59,200	75,500	(14)	%	(12)	%	211,200	217,600	(3)	%
El Soldado mine(2)
Ore mined	1,697,800	1,796,600	1,708,600	1,982,000	1,885,100	(10)	%	(5)	%	5,203,000	5,178,500	0	%
Ore processed - Sulphide	1,952,000	1,834,800	1,755,100	1,902,500	1,788,700	9	%	6	%	5,541,900	5,019,100	10	%
Ore grade processed - Sulphide (% TCu)(3)	0.73	0.75	0.70	0.84	0.78	(6)	%	(3)	%	0.73	0.84	(13)	%
Production - Copper in concentrate	11,600	11,000	9,900	12,700	10,800	7	%	5	%	32,500	33,100	(2)	%
Chagres Smelter(2)
Ore smelted(4)	30,200	25,400	23,200	29,800	26,700	13	%	19	%	78,800	81,800	(4)	%
Production	29,200	24,600	22,600	29,000	26,000	12	%	19	%	76,400	79,700	(4)	%
Total copper production(5)	156,500	169,700	160,300	167,800	165,700	(6)	%	(8)	%	486,500	479,500	1	%
Total payable copper production	150,100	162,600	154,300	161,200	159,200	(6)	%	(8)	%	467,000	461,100	1	%
Total sales volumes	162,300	157,700	147,700	178,600	176,100	(8)	%	3	%	467,700	469,800	0	%
Total payable sales volumes	153,900	149,200	143,200	172,600	167,900	(8)	%	3	%	446,300	450,400	(1)	%
Third party sales(6)	136,200	82,800	74,000	133,400	112,600	21	%	64	%	293,000	319,700	(8)	%

(1)  Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.

(2)  Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.

(3)  TCu = total copper.

(4)  Copper contained basis.

(5)  Total copper production includes Anglo American's 44% interest in Collahuasi.

(6)  Relates to sales of copper not produced by Anglo American operations.

Platinum Group Metals (PGMs)

PGMs (000 oz)(1)	Q3		Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021		2020			2021			2021	2020
Metal in concentrate production	1,116		1,113	0	%	1,058	6	%	3,195	2,733	17	%
Own mined(2)	720		747	(4)	%	709	2	%	2,124	1,832	16	%
Purchase of concentrate (POC)(3)	396		366	8	%	349	14	%	1,071	901	19	%
Refined production(4)	1,420		1,021	39	%	1,354	5	%	3,747	2,040	84	%

(1)  Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2)  Includes managed operations and 50% of joint operation production.

(3)  Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.

(4)  Refined production excludes toll refined material.

Metal in concentrate production

Own mined production decreased by 4% to 720,000 ounces, mainly due to a decrease of 12% at Mogalakwena from planned maintenance at the Mogalakwena North concentrator and lower grade material. In addition, there was planned concentrator downtime at Unki following the completion of debottlenecking projects. This was partly offset by higher production at Amandelbult of 7% to 218,300 ounces, reflecting the implementation of improvement plans, as well as the 19% increase at joint operations to 113,700 ounces, as a result of the year-on-year recovery from Covid-19.

Purchase of concentrate increased by 8% to 396,200 ounces, also largely due to the year-on-year recovery from Covid-19.

Refined production

Refined production increased by 39% to 1,420,400 ounces, reflecting continued strong performance from the ACP Phase A unit following its successful start-up in November 2020. The ACP Phase B rebuild is on schedule for completion in Q4 2021.

Sales

Sales volumes increased by 54%, driven by higher refined production.

The year to date average realised basket price of $2,868/PGM ounce reflects strong prices for rhodium and the minor metals, partly offset by higher than normal sales volumes of lower priced ruthenium.

Full Year Guidance

Production guidance (metal in concentrate) is unchanged at 4.2-4.4 million ounces ⁽¹⁾ . Refined production guidance is unchanged at 4.8-5.0 million ounces ⁽²⁾ , subject to the potential impact of Eskom load-shedding. Both are subject to the extent of further Covid-19 related disruption.

(1)  Metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(2)  Refined production is expected to be 2.2-2.3 million ounces of platinum, 1.55-1.60 million ounces of palladium and 1.05-1.1 million ounces of other PGMs and gold.

 

	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
M&C PGMs production (000 oz)(1)	1,116.2	1,057.9	1,021.2	1,076.1	1,112.8	0	%	6	%	3,195.3	2,732.8	17	%
Own mined	720.0	709.2	694.9	716.9	747.3	(4)	%	2	%	2,124.1	1,832.1	16	%
Mogalakwena	276.4	308.3	329.1	306.7	315.0	(12)	%	(10)	%	913.8	874.9	4	%
Amandelbult	218.3	185.3	156.0	185.5	204.8	7	%	18	%	559.6	422.6	32	%
Unki	42.6	47.9	50.9	55.8	60.0	(29)	%	(11)	%	141.4	140.3	1	%
Mototolo	69.0	59.9	58.6	69.8	72.2	(4)	%	15	%	187.5	153.8	22	%
Joint operations(2)	113.7	107.8	100.3	99.1	95.3	19	%	5	%	321.8	240.5	34	%
Purchase of concentrate	396.2	348.7	326.3	359.2	365.5	8	%	14	%	1,071.2	900.7	19	%
Joint operations(2)	113.7	107.8	100.3	99.0	95.3	19	%	5	%	321.8	240.5	34	%
Third parties	282.5	240.9	226.0	260.2	270.2	5	%	17	%	749.4	660.2	14	%
Refined PGMs production (000 oz)(1)(3)	1,420.4	1,353.7	973.0	673.1	1,020.7	39	%	5	%	3,747.1	2,039.9	84	%
By metal:
Platinum	662.9	625.7	457.8	296.4	503.8	32	%	6	%	1,746.4	904.7	93	%
Palladium	459.8	427.5	317.0	206.8	354.1	30	%	8	%	1,204.3	698.6	72	%
Rhodium	92.2	94.3	63.0	47.1	48.9	89	%	(2)	%	249.5	126.8	97	%
Other PGMs and gold	205.5	206.2	135.2	122.8	113.9	80	%	0	%	546.9	309.8	77	%
Nickel (tonnes)	6,000	5,800	4,800	3,700	5,000	20	%	3	%	16,600	10,100	64	%
Tolled material (000 oz)(4)	164.5	153.8	175.9	146.5	129.4	27	%	7	%	494.2	357.0	38	%
PGMs sales from production (000 oz)(1)(5)	1,361.0	1,437.1	1,131.1	754.3	884.9	54	%	(5)	%	3,929.2	2,114.2	86	%
Third party PGMs sales (000 oz)(1)(6)	160.1	116.1	221.5	370.8	341.0	(53)	%	38	%	497.7	800.2	(38)	%
4E head grade (g/t milled)(7)	3.47	3.48	3.54	3.67	3.65	(5)	%	0	%	3.50	3.52	(1)	%

(1)  M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2)  The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.

(3)  Refined production excludes toll material.

(4)  Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.

(5)  PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.

(6)  Relates to sales of metal not produced by Anglo American operations.

(7)  4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.

Iron Ore

Iron Ore (000 t)	Q3	Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2020			2021			2021	2020
Iron Ore(1)	16,888	14,677	15	%	15,695	8	%	48,757	45,519	7	%
Kumba(2)	10,789	9,684	11	%	9,818	10	%	31,161	27,903	12	%
Minas-Rio(3)	6,100	4,994	22	%	5,878	4	%	17,596	17,616	0	%

(1)  Total iron ore is the sum of Kumba and Minas-Rio.

(2)  Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.

(3)  Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.  

Iron ore production increased by 15% to 16.9 million tonnes, due to a 22% increase at Minas-Rio and an 11% increase at Kumba.

Kumba - Total production increased by 11% to 10.8 million tonnes, due to an increase at Sishen of 14% to 7.5 million tonnes and 6% at Kolomela to 3.3 million tonnes. The increase reflects improved processing plant availability and reliability.

Total sales of 10.0 million tonnes ⁽¹⁾ decreased by 10% due to unplanned maintenance and weather-related delays at the Saldanha port.

Year to date, Kumba product iron (Fe) content averaged 64.1% (YTD Q3 2020: 64.3%), while the average lump:fines ratio was 69:31 (YTD Q3 2020: 67:33).

The year to date average realised price of $181/tonne (FOB South Africa, wet basis) was higher than the 62% Fe benchmark price of $154/tonne (FOB South Africa, adjusted for freight and moisture) due to the lump and Fe content quality premiums that the Kumba products attract, partially offset by the timing on provisionally priced volumes.

Minas-Rio - Production increased by 22% to 6.1 million tonnes reflecting the planned stoppage in Q3 2020, when routine internal scanning of the pipeline was carried out.

The year to date average realised price of $167/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price of $159/tonne (FOB Brazil, adjusted for freight and moisture), reflecting the premium quality of the product, including higher (~67%) Fe content, partially offset by the timing on provisionally priced volumes.

Full Year Guidance

Production guidance (wet basis) is tightened to ~64.5 million tonnes (previously 64.5 - 66.5 million tonnes) (Kumba ~40.5 million tonnes (previously 40.5 - 41.5 million tonnes) owing to rail in South Africa performing below planned levels; Minas-Rio ~24 million tonnes (previously 24 - 25 million tonnes) owing to lower plant availability). Both are subject to the extent of further Covid-19 related disruption and Kumba is subject to rail performance.

(1)  Sales volumes are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.

Iron Ore (tonnes)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Iron Ore production(1)	16,888,100	15,695,300	16,173,400	16,183,200	14,677,400	15	%	8	%	48,756,800	45,518,900	7	%
Iron Ore sales(1)	15,818,800	14,973,600	15,716,400	16,600,200	15,861,400	0	%	6	%	46,508,800	47,640,900	(2)	%
Kumba production	10,788,600	9,817,600	10,554,700	9,717,600	9,683,600	11	%	10	%	31,160,900	27,903,000	12	%
Lump	7,252,800	6,723,700	7,156,100	6,589,100	6,592,200	10	%	8	%	21,132,600	18,889,200	12	%
Fines	3,535,800	3,093,900	3,398,600	3,128,500	3,091,400	14	%	14	%	10,028,300	9,013,800	11	%
Kumba production by mine
Sishen	7,528,300	6,876,800	7,071,200	6,583,400	6,615,300	14	%	9	%	21,476,300	19,180,600	12	%
Kolomela	3,260,300	2,940,800	3,483,500	3,134,200	3,068,300	6	%	11	%	9,684,600	8,722,400	11	%
Kumba sales volumes(2)	9,965,700	9,406,000	10,230,200	10,285,700	11,076,800	(10)	%	6	%	29,601,900	30,163,500	(2)	%
Export iron ore(2)	9,965,700	9,406,000	10,123,100	10,285,700	11,076,800	(10)	%	6	%	29,494,800	29,805,800	(1)	%
Domestic iron ore	-	-	107,100	-	-	n/a		n/a		107,100	357,700	(70)	%
Minas-Rio production
Pellet feed (wet basis)	6,099,500	5,877,700	5,618,700	6,465,600	4,993,800	22	%	4	%	17,595,900	17,615,900	0	%
Minas-Rio sales volumes
Export - pellet feed (wet basis)	5,853,100	5,567,600	5,486,200	6,314,500	4,784,600	22	%	5	%	16,906,900	17,477,400	(3)	%

(1)  Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with ~9% moisture.

(2)  Sales volumes differ to Kumba's standalone results due to sales to other Group companies.

Metallurgical Coal

Metallurgical Coal(1) (000 t)	Q3	Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2020			2021			2021	2020
Metallurgical Coal (Australia)	4,289	4,836	(11)	%	2,969	44	%	10,536	12,640	(17)	%

(1)  Anglo American's attributable share of production.

Export metallurgical coal production decreased by 11% to 4.3 million tonnes due to operations at Moranbah being impacted by challenging geological conditions for most of the quarter. This was partly offset by Dawson and Capcoal increasing production levels after having scaled back production volumes since mid-2020 in response to reduced demand for their particular products.

Development activities at Grosvenor continue as part of the mine's staged approach to restarting longwall mining operations towards the end of 2021, subject to the approval of the Queensland Mines Inspectorate, with the first development coal washed in September.

The ratio of hard coking coal production to PCI/semi-soft coking coal was 83:17, slightly higher than in Q3 2020 (82:18), due to solid performance at Grasstree and the mine sequence at Dawson and Capcoal.

The year to date average realised price for hard coking coal was $149/tonne, lower than the benchmark price of $177/tonne as sales for the year have consisted of a lower proportion of premium quality hard coking coal from Moranbah and Grosvenor.

Full Year Guidance

Production guidance is unchanged at 14-16 million tonnes, subject to the extent of any Covid-19 related disruption.

Coal, by product (tonnes)(1)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Production volumes
Metallurgical Coal	4,288,500	2,968,600	3,278,500	4,182,400	4,836,100	(11)	%	44	%	10,535,600	12,639,500	(17)	%
Hard Coking Coal	3,567,400	2,319,500	2,511,200	3,221,200	3,969,100	(10)	%	54	%	8,398,100	10,202,800	(18)	%
PCI / SSCC	721,100	649,100	767,300	961,200	867,000	(17)	%	11	%	2,137,500	2,436,700	(12)	%
Export thermal Coal	443,800	519,000	372,400	562,300	587,000	(24)	%	(14)	%	1,335,200	1,458,200	(8)	%
Sales volumes
Metallurgical Coal	3,985,800	2,856,300	3,112,300	4,318,300	4,818,000	(17)	%	40	%	9,954,400	12,569,600	(21)	%
Hard Coking Coal	3,293,600	2,246,200	2,462,100	3,536,900	4,130,000	(20)	%	47	%	8,001,900	10,302,400	(22)	%
PCI / SSCC	692,200	610,100	650,200	781,400	688,000	1	%	13	%	1,952,500	2,267,200	(14)	%
Export thermal Coal	560,400	572,000	492,000	725,800	500,100	12	%	(2)	%	1,624,400	1,559,000	4	%
(1)  Anglo American's attributable share of production.
Metallurgical coal, by operation (tonnes)(1)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Metallurgical Coal	4,288,500	2,968,600	3,278,500	4,182,400	4,836,100	(11)	%	44	%	10,535,600	12,639,500	(17)	%
Moranbah	1,314,700	56,600	595,100	1,209,200	2,008,500	(35)	%	n/a		1,966,400	3,221,100	(39)	%
Grosvenor	19,500	-	-	-	4,500	n/a		n/a		19,500	1,106,300	(98)	%
Capcoal (incl. Grasstree)	1,503,500	1,554,100	1,346,600	1,680,900	1,328,800	13	%	(3)	%	4,404,200	3,934,000	12	%
Dawson	659,200	569,800	600,600	461,200	588,300	12	%	16	%	1,829,600	1,967,900	(7)	%
Jellinbah	791,600	788,100	736,200	831,100	906,000	(13)	%	0	%	2,315,900	2,410,200	(4)	%
(1)  Anglo American's attributable share of production.

Nickel

Nickel (tonnes)	Q3	Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2020			2021			2021	2020
Nickel	10,400	10,200	2	%	10,600	(2)	%	31,100	31,900	(3)	%

Nickel production increased by 2% to 10,400 tonnes, reflecting the planned annual maintenance at Codemin in Q3 2020, partially offset by planned lower ore grade.

Full Year Guidance

Production guidance is unchanged at 42,000-44,000 tonnes, subject to the extent of further Covid-19 related disruption.

Nickel (tonnes)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Barro Alto
Ore mined	1,190,900	976,200	628,500	1,001,600	1,712,200	(30)	%	22	%	2,795,600	3,196,400	(13)	%
Ore processed	564,400	641,500	616,700	628,000	536,600	5	%	(12)	%	1,822,600	1,772,600	3	%
Ore grade processed - %Ni	1.64	1.56	1.53	1.71	1.72	(5)	%	5	%	1.57	1.63	(4)	%
Production	8,300	8,800	8,200	9,500	8,000	4	%	(6)	%	25,300	25,500	(1)	%
Codemin
Ore mined	-	-	-	-	3,200	n/a		n/a		-	3,200	n/a
Ore processed	146,800	136,400	136,600	147,600	142,100	3	%	8	%	419,800	433,700	(3)	%
Ore grade processed - %Ni	1.60	1.52	1.51	1.71	1.71	(6)	%	5	%	1.55	1.64	(5)	%
Production	2,100	1,800	1,900	2,200	2,200	(5)	%	17	%	5,800	6,400	(9)	%
Total Nickel production(1)	10,400	10,600	10,100	11,700	10,200	2	%	(2)	%	31,100	31,900	(3)	%
Sales volumes	11,700	9,800	10,200	11,700	10,900	7	%	19	%	31,700	31,300	1	%

(1)  Excludes nickel production from the Platinum Group Metals business unit.

Manganese

Manganese (000 t)	Q3	Q3	Q3 2021 vs. Q3 2020		Q2	Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2020			2021			2021	2020
Manganese ore(1)	1,004	939	7	%	941	7	%	2,849	2,578	11	%
Manganese alloys(1)(2)	-	18	n/a		-	n/a		-	66	n/a

(1)  Saleable production.

(2)  Production includes medium carbon ferro-manganese.

Manganese ore production increased by 7% to 1,003,600 tonnes, benefiting from improved productivity at the South African operations.

There was no manganese alloy production as the South African smelter has been on care and maintenance since the Covid-19 lockdown.

Manganese (tonnes)	Q3	Q2	Q1	Q4	Q3	Q3 2021 vs. Q3 2020		Q3 2021 vs. Q2 2021		YTD	YTD	YTD 2021 vs. YTD 2020
	2021	2021	2021	2020	2020					2021	2020
Samancor production
Manganese ore(1)	1,003,600	940,500	904,500	942,400	938,700	7	%	7	%	2,848,600	2,577,600	11	%
Manganese alloys(1)(2)	-	-	-	14,600	18,300	n/a		n/a		-	65,900	n/a
Samancor sales volumes
Manganese ore	947,200	980,200	878,200	936,800	976,200	(3)	%	(3)	%	2,805,600	2,592,300	8	%
Manganese alloys	-	-	670	24,500	22,700	n/a		n/a		670	78,900	n/a

(1)  Saleable production.

(2)  Production includes medium carbon ferro-manganese.

Exploration and evaluation

Exploration and evaluation expenditure increased by 22% to $72 million. Exploration expenditure increased by 42% to $37 million driven by increased activity in copper and PGMs, reflecting the impact of Covid-19 in Q3 2020. Evaluation expenditure increased by 6% to $35 million, with increased spend in PGMs and diamonds.

Corporate and other activities

On the 28 June 2021, the sale of Anglo American's 33% interest in Cerrejón was announced and is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective on the 31 December 2020 and, therefore, economic benefits from 1 January 2021 onwards will not accrue to Anglo American should the transaction complete. ⁽¹⁾

Going forward we will not be reporting on the production and sales volumes for Cerrejón. Anglo American's share of income from Cerrejón for H2 2021 will be reported in Special items and remeasurements (Note 8 in the Annual Report), rather than underlying earnings, and dividends received from Cerrejón will continue to be reported in "Dividends from associates and joint ventures". Furthermore, the purchase consideration for our interest in Cerrejón is subject to completion adjustments, which include an adjustment for dividends paid by Cerrejón to Anglo American during the period after the 31 December 2020 to completion of the sale.

(1)  As previously reported at 30 June 2021, Anglo American's attributable share of Cerrejón production for H1 2021 was 3,579kt, which was up by 30% on H1 2020 (2,745kt).

For more information on Anglo American's announcements during the period (excluding our 2021 Interim results), please find links to our Press Releases below:

• 20 Oct 2021 | Appointment of Ian Tyler to Anglo Board as a non-executive director

• 20 Oct 2021 | Rough diamond sales value for the De Beers' eighth sales cycle of 2021

• 8 Oct 2021 | Reinforce commitment to hydrogen economy in South Africa

• 5 Oct 2021 | Senior leadership changes in Bulk commodities

• 8 Sept 2021 | Rough diamond sales value for the De Beers' seventh sales cycle of 2021

• 4 Aug 2021 | Partner with Salzgitter Flachstahl to advance green steelmaking

• 28 July 2021 | Rough diamond sales value for the De Beers' sixth sales cycles of 2021

Notes

• This Production Report for the quarter ended 30 September 2021 is unaudited.

• Production figures are sometimes more precise than the rounded numbers shown in this Production Report.

• Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.

• Please refer to page 16 for information on forward-looking statements.

      In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

For further information, please contact:

Media	Investors
UK James Wyatt-Tilby [e-mail] Tel: [phone] Marcelo Esquivel [e-mail] Tel: [phone] Katie Ryall [e-mail] Tel: [phone] South Africa Nevashnee Naicker [e-mail] Tel: [phone] Sibusiso Tshabalala [e-mail] Tel: [phone]	UK Paul Galloway [e-mail] Tel: [phone] Juliet Newth [e-mail] Tel: [phone] Michelle Jarman [e-mail] Tel: [phone]

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel - with crop nutrients in development - we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

Forward-looking statements and third-party information:

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental, social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

Legal Entity Identifier: 549300S9XF92D1X8ME43

 

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