Anglo American Q4 2019 Production Report

RNS Number : 6568A
Anglo American PLC
23 January 2020
 

http://www.rns-pdf.londonstockexchange.com/rns/6568A_1-2020-1-22.pdf

 

 

Anglo American plc

Production Report for the fourth quarter ended 31 December 2019

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered our full year production targets across the business. Production is up 4%(1) for the quarter led by the continued successful ramp-up at Minas-Rio in Brazil. Increased production at Metallurgical Coal in Australia was offset by the drought in Chile impacting water availability at Los Bronces, as well as the anticipated lower production from De Beers as Venetia transitions to underground in South Africa and Victor reached the end of its mine life in Canada. As planned, we received the operating licence for the tailings dam raise at Minas-Rio before the end of 2019."

Key highlights

•     A 10%(2) increase in platinum and palladium volumes due to higher grades and throughput.

•     Strong performance from Collahuasi as well as productivity improvements at Los Bronces have partially mitigated the impact of production losses at Los Bronces due to the continued drought.

•     Continued strong performance from our Bulks business, reflecting the stability of operations under the Operating Model and progress in driving P101 levels of equipment performance to industry best practice and beyond.

•  Minas-Rio continued its strong operational performance, with 6.2 million tonnes of high grade iron ore production in Q4. The tailings dam raise operating licence was received in December 2019.

•   Kumba iron ore production of 11.8 million tonnes reflected improved run-rates following maintenance earlier in the year.

•   Metallurgical coal production increased by 11% to 6.3 million tonnes due to the timing of longwall moves, as well as improved wash plant throughput and equipment efficiency.

 

Q4 2019

Q4 2018

% vs. Q4 2018

2019

2018

% vs. 2018

Diamonds (Mct)(3)

7.8

9.1

(15)%

30.8

35.3

(13)%

Copper (kt)(4)

159

184

(13)%

638

668

(5)%

Platinum (koz)(2)(5)

532

485

10%

2,051

2,021

1%

Palladium (koz)(2)(5)

360

329

10%

1,386

1,379

1%

Iron ore - Kumba (Mt)

11.8

10.2

16%

42.4

43.1

(2)%

Iron ore - Minas-Rio (Mt)(6)

6.2

0.2

n/a

23.1

3.4

n/a

Metallurgical coal (Mt)

6.3

5.6

11%

22.9

21.8

5%

Thermal coal (Mt)(7)

6.8

6.9

(1)%

26.4

28.6

(8)%

Nickel (kt)(8)

11.7

11.4

3%

42.6

42.3

1%

903

972

(7)%

3,513

3,607

(3)%

(1)     Copper equivalent production is normalised to reflect closure of Voorspoed and Victor (De Beers) and Sibanye-Stillwater Rustenburg material that has transitioned to a tolling arrangement (Platinum Group Metals). Excluding the impact of Minas-Rio, Group copper equivalent production is down 1% in the quarter.

(2)     Normalised for the transition of Sibanye-Stillwater Rustenburg material from purchased concentrate to a tolling arrangement.

(3)     De Beers 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 business unit only (excludes copper production from the Platinum Group Metals business unit).

(5)     Produced ounces of metal in concentrate. Reflects own mine production and purchases.

(6)     Wet basis.

(7)     Reflects export production from South Africa and attributable export production (33.3%) from Colombia.

(8)     Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).

 

DE BEERS

De Beers(1) (000 carats)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Botswana

5,888

6,346

(7

)%

5,699

3

%

23,254

24,132

(4

)%

Namibia

456

505

(10

)%

426

7

%

1,700

2,008

(15

)%

South Africa

434

1,234

(65

)%

535

(19

)%

1,922

4,682

(59

)%

Canada

1,009

1,043

(3

)%

779

30

%

3,900

4,475

(13

)%

Total carats recovered

7,787

9,128

(15

)%

7,439

5

%

30,776

35,297

(13

)%

Rough diamond production decreased by 15% to 7.8 million carats, driven by lower production levels in South Africa and Botswana. While trading conditions have improved since Q3 2019, production was reduced in response to softer rough diamond demand conditions experienced in the year.

Botswana production decreased by 7% to 5.9 million carats. Orapa production decreased by 29%, caused by a delay in an infrastructure project and expected lower grades. This was partially offset by a 21% increase at Jwaneng driven by planned increases in both tonnes treated and grade.

Namibian production decreased by 10% to 0.5 million carats, driven by Debmarine Namibia where production decreased by 9% to 0.4 million carats due to routine vessel maintenance in Q4 2019.

In South Africa, production decreased by 65% to 0.4 million carats due to lower volumes of ore mined at Venetia as it approaches the transition from open pit to underground. In addition, Voorspoed production ended in Q4 2018 when it was placed onto care and maintenance in preparation for closure.

Production in Canada decreased by 3% to 1.0 million carats, primarily due to the closure of Victor, which reached the end of its life in Q2 2019. Gahcho Kué production increased by 28% to 1.0 million carats due to strong plant performance.

Rough diamond sales totalled 7.0 million carats (6.6 million carats on a consolidated basis)(2) from two sales cycles, which compares with 9.9 million carats of sales (9.3 million carats on a consolidated basis)(2) from three sales cycles in Q4 2018.

For the full year, rough diamond sales volumes were 8% lower at 30.9 million carats (29.2 million carats on a consolidated basis)(2) compared with 33.7 million carats (31.7 million carats on a consolidated basis)(2) in 2018. In 2019, overall demand for rough diamonds was lower as a result of challenges in the midstream, with higher polished inventories and caution due to macro-economic uncertainty.

The full year consolidated average realised price of $137/ct was lower (2018: $171/ct), due primarily to a higher proportion of lower value rough diamonds sold in 2019 and a 6% lower rough diamond price index.

 

2020 Production Guidance

Production guidance for 2020(1) is unchanged at 32-34 million carats, subject to trading conditions. The higher production anticipates an improvement in trading conditions compared with 2019, and is driven by an expected increase in production from Venetia.

 

 

 

 

 

 

(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 Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

 

 

De Beers(1)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Carats recovered (000 carats)

 

 

 

 

 

 

 

 

 

 

100% basis (unless stated)

 

 

 

 

 

 

 

 

 

 

Jwaneng

3,319

2,584

3,223

3,336

2,744

28

%

21

%

12,462

11,896

5

%

Orapa(2)

2,569

3,115

2,495

2,614

3,602

(18

)%

(29

)%

10,792

12,236

(12

)%

Botswana

5,888

5,699

5,718

5,950

6,346

3

%

(7

)%

23,254

24,132

(4

)%

 

 

 

 

 

 

 

 

 

 

 

Debmarine Namibia

363

320

245

364

400

13

%

(9

)%

1,292

1,436

(10

)%

Namdeb (land operations)

93

106

90

119

105

(12

)%

(11

)%

408

572

(29

)%

Namibia

456

426

335

483

505

7

%

(10

)%

1,700

2,008

(15

)%

 

 

 

 

 

 

 

 

 

 

 

Venetia

434

535

571

382

1,141

(19

)%

(62

)%

1,922

4,249

(55

)%

Voorspoed

-

 

-

 

-

 

-

 

93

n/a

n/a

-

 

433

n/a

South Africa

434

535

571

382

1,234

(19

)%

(65

)%

1,922

4,682

(59

)%

 

 

 

 

 

 

 

 

 

 

 

Gahcho Kué (51% basis)

1,009

779

883

808

789

30

%

28

%

3,479

3,539

(2

)%

Victor

-

 

-

 

192

229

254

n/a

n/a

421

936

(55

)%

Canada

1,009

779

1,075

1,037

1,043

30

%

(3

)%

3,900

4,475

(13

)%

Total carats recovered

7,787

7,439

7,699

7,852

9,128

5

%

(15

)%

30,776

35,297

(13

)%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Total sales volume (100)% (Mct)(3)

7.0

7.4

9.0

7.5

9.9

(5

)%

(29

)%

30.9

33.7

(8

)%

Consolidated sales volume (Mct)(3)

6.6

7.1

8.3

7.2

9.3

(7

)%

(29

)%

29.2

31.7

(8

)%

Number of Sights (sales cycles)

2

3

3

2

3

 

 

10

10

 

                                     

(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 Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

 

COPPER

Copper(1) (tonnes)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Los Bronces

71,700

99,000

(28

)%

80,400

(11

)%

335,000

369,500

(9

)%

Collahuasi (44% share)

72,200

69,200

4

%

64,500

12

%

248,800

246,000

1

%

El Soldado

14,900

15,300

(3

)%

14,000

6

%

54,200

52,700

3

%

Total Copper

158,800

183,500

(13

)%

158,900

0

%

638,000

668,300

(5

)%

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

Copper production decreased by 13% to 158,800 tonnes, largely impacted by a reduction at Los Bronces, driven by the continued drought conditions in central Chile, partially offset by continued strong plant performance at Collahuasi.

Production from Los Bronces decreased by 28%, to 71,700 tonnes with a 44% reduction in plant throughput  (7 million tonnes vs 13 million tonnes) resulting from lower water availability. This was partly offset by strong mine performance, in particular a step-up in shovel productivity as a result of P101 improvements, and planned higher grades (0.99% vs. 0.81%). Chile´s central zone continues to face unprecedented climate conditions, with 2019 being one of the driest years on record and the driest since the start of the current decade-long drought.

At Collahuasi, attributable production increased by 4% to 72,200 tonnes, another record in copper concentrate production, with planned lower grades (1.25% vs 1.28%) more than offset by a strong plant performance that benefited from the ongoing long-term plant improvement plan.

2019 sales volumes were 643,900 tonnes, at an average realised price of 273c/lb ($6,019/t), in line with the average LME price.

2020 Production Guidance

Production guidance for 2020 is unchanged at 620,000-670,000 tonnes, subject to water availability.

 

 

 

Copper(1)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Los Bronces mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

17,373,800

15,560,400

17,302,500

15,678,600

12,675,800

12

%

37

%

65,915,300

59,207,400

11

%

Ore processed - Sulphide

7,146,800

10,977,200

11,813,600

12,070,800

12,669,900

(35

)%

(44

)%

42,008,400

50,583,000

(17

)%

Ore grade processed -

Sulphide (% TCu)(3)

0.99

0.78

0.81

0.80

0.81

27

%

22

%

0.83

0.76

9

%

Production - Copper cathode

10,000

10,100

9,300

9,600

10,200

(1

)%

(2

)%

39,000

39,000

0

%

Production - Copper in concentrate

61,700

70,300

81,900

82,100

88,800

(12

)%

(31

)%

296,000

330,500

(10

)%

Total production

71,700

80,400

91,200

91,700

99,000

(11

)%

(28

)%

335,000

369,500

(9

)%

Collahuasi 100% basis

(Anglo American share 44%)

 

 

 

 

 

 

 

 

 

 

Ore mined

22,132,200

25,780,000

23,698,300

15,642,800

14,781,300

(14

)%

50

%

87,253,200

51,886,400

68

%

Ore processed - Sulphide

14,728,700

14,478,700

11,626,100

13,299,600

13,638,400

2

%

8

%

54,133,100

49,470,500

9

%

Ore grade processed -

Sulphide (% TCu)(3)

1.25

1.14

1.21

1.16

1.28

9

%

(2

)%

1.19

1.29

(8

)%

Production - copper in concentrate

164,200

146,600

124,400

130,200

157,400

12

%

4

%

565,400

559,100

1

%

Anglo American's share of copper production for Collahuasi(4)

72,200

64,500

54,700

57,300

69,200

12

%

4

%

248,800

246,000

1

%

El Soldado mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

2,721,400

3,299,900

3,017,800

3,089,000

3,233,900

(18

)%

(16

)%

12,128,100

11,613,200

4

%

Ore processed - Sulphide

1,854,900

1,911,700

1,861,900

1,809,900

1,951,600

(3

)%

(5

)%

7,438,500

7,598,200

(2

)%

Ore grade processed -

Sulphide (% TCu)(3)

1.02

0.92

0.92

0.84

0.94

11

%

8

%

0.93

0.85

9

%

Production - copper in concentrate

14,900

14,000

13,200

12,100

15,300

6

%

(3

)%

54,200

52,700

3

%

Chagres Smelter(2)

 

 

 

 

 

 

 

 

 

 

Ore smelted

30,800

28,800

32,100

30,300

30,900

7

%

0

%

122,000

142,600

(14

)%

Production

29,900

28,000

31,200

29,500

30,100

7

%

(1

)%

118,600

139,200

(15

)%

Total copper production(5)

158,800

158,900

159,100

161,100

183,500

0

%

(13

)%

638,000

668,300

(5

)%

Total payable copper production

153,100

153,000

153,100

155,000

177,100

0

%

(14

)%

614,300

644,500

(5

)%

Total sales volumes

176,500

160,000

165,400

141,900

205,800

10

%

(14

)%

643,900

671,600

(4

)%

Total payable sales volumes

170,100

153,800

159,100

136,500

198,400

11

%

(14

)%

619,500

647,700

(4

)%

Third party sales(6)

115,300

91,600

88,800

53,400

50,400

26

%

129

%

349,000

173,700

101

%

(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)       Anglo American's share of Collahuasi production is 44%.

(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)

Platinum (000 oz)(1)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Metal in concentrate production(2)

531.7

485.4

10

%

526.8

1

%

2,050.6

2,020.5

1

%

Own mined(3)

361.9

307.5

18

%

351.7

3

%

1,378.2

1,323.6

4

%

Purchase of concentrate (POC)(2)(4)

169.8

177.9

(5

)%

175.1

(3

)%

672.4

696.9

(4

)%

POC now under tolling arrangement(5)

-

 

116.9

n/a

-

 

n/a

-

 

464.2

n/a

Palladium (000 oz)(1)

 

 

 

 

 

 

 

 

Metal in concentrate production(2)

360.4

328.5

10

%

351.8

2

%

1,385.9

1,379.0

1

%

Own mined(3)

275.0

234.8

17

%

262.7

5

%

1,049.2

 

1,013.5

 

4

%

Purchase of concentrate (POC)(2)(4)

85.4

93.7

(9

)%

89.0

(4

)%

336.7

365.5

(8

)%

POC now under tolling arrangement(5)

-

 

58.1

n/a

-

 

n/a

-

 

231.8

n/a

Refined production(6)

 

 

 

 

 

 

 

 

Platinum

000 oz(1)(7)

629.7

770.9

(18

)%

578.6

9

%

2,210.9

2,402.4

(8

)%

Palladium

000 oz(1)(7)

396.6

493.8

(20

)%

362.1

10

%

1,480.5

1,501.8

(1

)%

Rhodium

000 oz(1)(7)

90.8

91.3

(1

)%

66.5

37

%

293.4

292.8

0

%

Tolled material

 

 

 

 

 

 

 

 

Platinum

000 oz(1)

104.4

-

 

n/a

100.9

 

3

%

303.2

-

 

n/a

Palladium

000 oz(1)

54.0

-

 

n/a

51.3

 

5

%

154.4

-

 

n/a

(1)     Ounces refer to troy ounces.

(2)     Excluding purchase of concentrate volumes now treated under tolling arrangement.

(3)     Includes managed operations and 50% of joint venture production.

(4)     Includes 50% of joint venture production, and the purchase of concentrate from associates (BRPM prior to its disposal) and third parties.

(5)     Comparative periods include purchase of concentrate volumes now under tolling arrangement.

(6)     Refined production of gold, nickel and copper has been removed from this table but is still shown in the detailed table on the next page.

(7)     Refined production excludes toll material but includes in comparative periods material now transitioned to tolling.

Metal in concentrate production

Platinum and palladium production both increased by 10%, to 531,700 ounces and 360,400 ounces, respectively.

Own mined platinum production increased by 18% to 361,900 ounces and palladium production increased by 17% to 275,000 ounces. This was driven by increased production at Mogalakwena due to higher grade and throughput, and from Amandelbult, due to the ramp-up of the Dishaba lower section, as well as the inclusion of 100% of Mototolo volumes following the acquisition of the remaining 50% of the asset in November 2018. This was partially offset by the impact of Eskom power outages, which reduced overall own mined volumes by 8,500 platinum ounces and 6,000 palladium ounces.

Purchase of platinum in concentrate decreased by 5% to 169,800 ounces and purchase of palladium in concentrate decreased by 9% to 85,400 ounces, the result of lower purchases from joint ventures, as Mototolo became 100% owned in November 2018, as well as lower production from Bafokeng-Rasimone Platinum Mine.

Refined production and sales volumes

Refined platinum production(1) decreased by 18% to 629,700 ounces and refined palladium production(1) decreased by 20% to 396,600 ounces. Excluding the impact of the tolled volumes that were previously purchased as concentrate, refined platinum production was flat and palladium decreased by 6% as improved operational performance at the processing facilities was offset by the impact of Eskom power outages. These power outages in Q4 resulted in an inventory build-up of circa 45,000 platinum ounces and circa 27,000 palladium ounces.

Platinum sales volumes(1) decreased by 14% to 668,300 ounces and palladium sales volumes(1) decreased by 4% to 435,800 ounces due to lower refined production in the period.

The full year price per platinum ounce for the basket of metals sold increased by 27% to $2,819/ounce compared to 2018 due to 48% and 73% price increases in palladium and rhodium, respectively.

2020 Production Guidance

Production guidance (metal in concentrate) is unchanged at 2.0-2.2 million ounces of platinum and approximately 1.4 million ounces of palladium, subject to Eskom power performance.

(1)     Does not include tolled volumes.

 

Platinum

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Produced platinum

(000 oz)(1)

531.7

526.8

520.3

471.9

485.4

1

%

10

%

2,050.6

2,020.5

1

%

Own mined

361.9

351.7

342.8

321.9

307.5

3

%

18

%

1,378.2

1,323.6

4

%

Mogalakwena

135.8

123.4

127.9

130.4

108.4

10

%

25

%

517.5

495.1

5

%

Amandelbult

120.1

118.4

116.6

98.5

96.5

1

%

24

%

453.6

442.7

2

%

Unki

23.3

23.7

23.1

19.3

22.0

(2

)%

6

%

89.4

85.9

4

%

Mototolo(2)

30.9

31.4

23.0

26.8

 

17.5

 

(2

)%

77

%

112.0

17.5

 

540

%

Joint ventures(2)

51.8

54.8

52.2

46.9

63.1

(5

)%

(18

)%

205.7

270.8

(24

)%

Union

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

11.6

n/a

Purchase of concentrate(3)

169.8

175.1

177.5

150.0

177.9

(3

)%

(5

)%

672.4

696.9

(4

)%

Joint ventures(2)

51.8

54.8

52.2

46.9

63.1

(5

)%

(18

)%

205.7

270.8

(24

)%

Associates(4)

-

 

-

 

-

 

-

 

46.9

n/a

n/a

-

 

220.2

n/a

Third parties(3)

118.0

120.3

125.3

103.1

67.9

(2

)%

74

%

466.7

205.9

127

%

POC now under tolling arrangements(5)

-

 

-

 

-

 

-

 

116.9

n/a

n/a

-

 

464.2

n/a

Palladium

 

 

 

 

 

 

 

 

Produced palladium

(000 oz)(1)

360.4

351.8

347.2

326.6

328.5

2

%

10

%

1,385.9

1,379.0

1

%

Own mined

275.0

262.7

260.5

250.9

234.8

5

%

17

%

1,049.2

1,013.5

4

%

Mogalakwena

146.0

130.8

139.5

141.5

118.2

12

%

24

%

557.9

540.9

3

%

Amandelbult

56.0

54.3

53.7

44.9

44.9

3

%

25

%

208.9

205.1

2

%

Unki

20.0

21.3

20.9

17.0

19.6

(6

)%

2

%

79.2

75.5

5

%

Mototolo(2)

19.0

19.4

14.0

16.3

 

10.9

 

(2

)%

74

%

68.7

10.9

 

530

%

Joint ventures(2)

34.0

36.9

32.4

31.2

41.2

(8

)%

(17

)%

134.5

176.0

(24

)%

Union

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

5.2

n/a

Purchase of concentrate(3)

85.4

89.0

86.7

75.7

93.7

(4

)%

(9

)%

336.7

365.5

(8

)%

Joint ventures(2)

34.0

36.9

32.4

31.2

41.2

(8

)%

(17

)%

134.5

175.9

(24

)%

Associates(4)

-

 

-

 

-

 

-

 

19.3

n/a

n/a

-

 

90.2

n/a

Third parties(3)

51.4

52.1

54.3

44.5

33.2

(1

)%

55

%

202.2

99.4

103

%

POC now under tolling arrangements(5)

-

 

-

 

-

 

-

 

58.1

n/a

n/a

-

 

231.8

n/a

Refined production

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)(6)

629.7

578.6

590.9

411.7

770.9

9

%

(18

)%

2,210.9

2,402.4

(8

)%

Palladium (000 oz)(1)(6)

396.6

362.1

428.2

293.6

493.8

10

%

(20

)%

1,480.5

1,501.8

(1

)%

Rhodium (000 oz)(1)(6)

90.8

66.5

84.1

52.0

91.3

37

%

(1

)%

293.4

292.8

0

%

Gold (000 oz)(1)(6)

32.4

27.9

21.3

24.0

27.9

16

%

16

%

105.6

105.5

0

%

Nickel (tonnes)(6)

6,400

6,800

5,600

4,200

6,700

(6

)%

(4

)%

23,000

23,100

0

%

Copper (tonnes)(6)

4,100

3,400

3,500

3,200

4,200

21

%

(2

)%

14,200

14,300

(1

)%

Tolled material

 

 

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)

104.4

100.9

97.9

-

 

-

 

3

%

n/a

303.2

-

 

n/a

Palladium (000 oz)(1)

54.0

51.3

49.1

 

-

 

-

 

5

%

n/a

154.4

-

 

n/a

 

 

 

 

 

 

 

 

 

 

 

Platinum sales volumes

(000 oz)(1)(7)

668.3

537.4

595.2

414.2

776.9

24

%

(14

)%

2,215.1

2,424.2

(9

)%

 

 

 

 

 

 

 

 

 

 

 

Palladium sales volumes

(000 oz)(1)(7)

435.8

316.9

475.9

292.1

455.3

38

%

(4

)%

1,520.7

1,513.1

1

%

 

 

 

 

 

 

 

 

 

 

 

Platinum 3rd party sales volumes (000 oz)(1)(8)

10.6

17.5

13.0

5.0

1.5

(39

)%

607

%

46.1

94.0

(51

)%

 

 

 

 

 

 

 

 

 

 

 

Palladium 3rd party sales volumes (000 oz)(1)(8)

42.8

79.7

81.0

58.7

16.5

(46

)%

159

%

262.2

124.5

111

%

 

 

 

 

 

 

 

 

 

 

 

4E head grade (g/t milled)(9)

3.67

3.65

3.55

3.58

3.38

1

%

9

%

3.61

3.48

4

%

(1)     Ounces refer to troy ounces.

(2)     The joint venture 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'. Mototolo is 100% owned from 1 November 2018.

(3)     Excluding purchase of concentrate volumes now treated under tolling arrangement.

(4)     33% interest in BRPM until its sale effective 11 December 2018.

(5)     Comparative periods include purchase of concentrate volumes now under tolling arrangement.

(6)     Refined production excludes tolled material.

(7)     Sales from own mined and purchased concentrate, excludes refined metal purchased from third parties.

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

(9)     4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material.

IRON ORE

Iron Ore (000 t)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Kumba

11,806

10,170

16

%

10,521

12

%

42,388

43,106

(2

)%

Minas-Rio(1)

6,164

227

n/a

6,126

1

%

23,115

3,382

n/a

                       

(1)       Wet basis.

 

Kumba - Total production volumes increased by 16% to 11.8 million tonnes, due to higher production at both Sishen and Kolomela.

Sishen's production increased by 19% to 8.3 million tonnes as a result of improved operational performance in Q4 2019.

Kolomela's production increased by 10% to 3.5 million tonnes, reflecting the ramp-up in production following the temporary closure of the DMS plant for an infrastructure upgrade in Q1 2019 and its subsequent re-opening, on schedule, in Q4 2019.

Total sales decreased by 10% to 10.5 million tonnes, driven by a  73% decline in domestic sales to 0.2 million tonnes due to lower domestic customer off-take with the winding down of the Saldanha Steel plant. Export sales were 5% lower at 10.2 million tonnes.

Total finished stock increased to 6.6 million tonnes(1) at Q4 2019 from 5.1 million tonnes at Q3 2019, as a result of lower domestic sales. Rail performance improved significantly in 2019, with port stock levels well set for Q1 2020.

In the fourth quarter, the average lump to fines ratio in the Kumba product was 66:34 (full year: 67:33), while the Fe content averaged 64.1% (full year: 64.2%).

The full year FOB realised price was $97/tonne, reflecting the reversal, driven by price movements, of gains from provisionally priced sales that supported the first half realised price of $108/tonne.

 

Minas-Rio - Production of 6.2 million tonnes was driven by continued strong operational performance, stability due to higher grade ore from the Step 3 mine area and productivity initiatives.

The construction of the tailings dam raise was completed in August 2019 and approval for the conversion of the installation licence to an operating licence was announced on 23 December.

The full year FOB realised price was $79/tonne, reflecting the reversal, driven by price movements, of gains from provisionally priced sales that supported the first half realised price of $92/tonne.

 

2020 Production Guidance

Kumba production guidance for 2020 is unchanged at 42-43 million tonnes.

Minas-Rio production guidance for 2020 is unchanged at 22-24 Mt, which includes a one-month production stoppage in Q2 to carry out routine internal scanning of the pipeline.

 

(1)       Sales volumes and stock differ to Kumba's standalone Q4 results due to sales to other Group companies.

 

Iron Ore (tonnes)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Kumba production

11,806,100

10,521,300

10,544,000

9,516,300

10,170,200

12

%

16

%

42,387,700

43,105,700

(2

)%

Lump

7,898,500

6,955,500

7,111,400

6,544,600

6,878,600

14

%

15

%

28,510,100

29,171,500

(2

)%

Fines

3,907,600

3,565,800

3,432,600

2,971,700

3,291,600

10

%

19

%

13,877,600

13,934,200

0

%

Kumba production by mine

 

 

 

 

 

 

 

 

 

 

Sishen

8,263,900

7,153,500

7,310,400

6,446,600

6,960,500

16

%

19

%

29,174,400

29,246,000

0

%

Kolomela

3,542,200

3,367,800

3,233,600

3,069,700

3,209,700

5

%

10

%

13,213,300

13,859,700

(5

)%

Kumba sales volumes

10,469,400

10,153,800

10,471,900

10,878,600

11,591,400

3

%

(10

)%

41,973,700

43,256,800

(3

)%

Export iron ore (1)

10,237,100

9,670,200

9,755,600

10,130,600

10,723,200

6

%

(5

)%

39,793,500

39,965,700

0

%

Domestic iron ore

232,300

483,600

716,300

748,000

868,200

(52

)%

(73

)%

2,180,200

3,291,100

(34

)%

 

 

 

 

 

 

 

 

 

 

 

Minas-Rio production

 

 

 

 

 

 

 

 

 

 

Pellet feed (wet basis)

6,163,600

6,126,100

5,915,500

4,909,700

 

226,700

 

1

%

n/a

23,114,900

3,382,000

n/a

Minas-Rio sales volumes

 

 

 

 

 

 

 

 

 

 

Export - pellet feed (wet basis)

6,570,700

5,734,500

6,590,400

 

4,031,400

 

-

 

15

%

n/a

22,927,000

3,216,800

n/a

                                 

(1)       Sales volumes and stock differ to Kumba's standalone Q4 results due to sales to other Group companies.

 

COAL

Coal(1) (000 t)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Metallurgical Coal (Australia)

6,284

5,647

11

%

6,569

(4

)%

22,852

21,830

5

%

Export Thermal Coal (Australia)

389

428

(9

)%

438

(11

)%

1,411

1,381

2

%

Export Thermal Coal (South Africa)(2)

4,515

4,537

0

%

4,288

5

%

17,796

18,359

(3

)%

Export Thermal Coal (Colombia)(3)

2,315

2,357

(2

)%

2,055

13

%

8,586

10,220

(16

)%

Domestic Thermal Coal

(South Africa)

2,511

3,293

(24

)%

2,621

(4

)%

10,046

13,692

(27

)%

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

(2)       Includes export primary production, secondary production sold into export markets, production sold domestically at export parity pricing, and pre-commercial production volumes from Navigation section of Khwezela.

(3)       Anglo American's attributable share of Cerrejón production is 33.3%.

Metallurgical Coal - Export metallurgical coal production increased by 11% to 6.3 million tonnes primarily due to the timing of longwall moves at Grosvenor and Grasstree, as well as improvements in wash plant throughput at Moranbah-Grosvenor and equipment productivity at Dawson.

In the fourth quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 81:19 (full year 2019: 83:17).

 

Thermal Coal South Africa - Export thermal coal production was flat at 4.5 million tonnes.

 

Thermal Coal Colombia - Attributable export thermal coal production decreased 2% to 2.3 million tonnes in response to weak market conditions.

 

The full year weighted average realised price for export thermal coal from South Africa and Colombia was $59/tonne. This was 10% lower than the weighted average quoted FOB price from South Africa and Colombia, due to lower than benchmark energy content coal from South Africa.

2020 Production Guidance

Metallurgical coal production guidance for 2020 is unchanged at 21-23 million tonnes. This reflects the sale of a 12% interest in the Grosvenor mine that is expected to complete during the year, equalising the ownership across the Moranbah-Grosvenor integrated operations.

Thermal coal production guidance for 2020 is unchanged at circa 26 million tonnes.

 

 

Coal, by product (tonnes)(1)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Metallurgical Coal (Australia)

6,283,600

6,568,900

5,843,500

4,156,200

5,647,100

(4

)%

11

%

22,852,200

21,830,400

5

%

Hard Coking Coal

5,117,500

5,615,900

4,958,600

3,265,100

4,864,600

(9

)%

5

%

18,957,100

18,798,400

1

%

PCI / SSCC

1,166,100

953,000

884,900

891,100

782,500

22

%

49

%

3,895,100

3,032,000

28

%

Thermal Coal

9,730,000

9,402,700

9,460,700

9,245,000

10,613,700

3

%

(8

)%

37,838,300

43,652,100

(13

)%

Export (Australia)

389,200

437,900

245,200

338,500

427,600

(11

)%

(9

)%

1,410,700

1,381,300

2

%

Export (South Africa)(2)

4,515,100

4,288,400

4,575,000

4,417,000

4,537,100

5

%

0

%

17,795,600

18,358,600

(3

)%

Export (Colombia)(3)

2,314,900

2,055,100

2,016,900

2,199,300

2,356,500

13

%

(2

)%

8,586,100

10,219,900

(16

)%

Domestic (South Africa)

2,510,800

2,621,300

2,623,600

2,290,200

3,292,500

(4

)%

(24

)%

10,045,900

13,692,300

(27

)%

Total coal production

16,013,600

15,971,600

15,304,200

13,401,200

16,260,800

0

%

(2

)%

60,690,500

65,482,500

(7

)%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Metallurgical Coal (Australia)

6,100,100

6,371,500

5,987,300

3,921,700

5,812,700

(4

)%

5

%

22,380,600

21,982,800

2

%

Hard Coking Coal

5,097,200

5,737,800

4,944,300

3,290,600

5,064,200

(11

)%

1

%

19,069,900

19,186,600

(1

)%

PCI / SSCC

1,002,900

633,700

1,043,000

631,100

748,500

58

%

34

%

3,310,700

2,796,200

18

%

Thermal Coal

12,939,200

12,166,100

12,046,300

12,265,900

13,700,800

6

%

(6

)%

49,417,500

52,615,600

(6

)%

Export (Australia)

500,900

584,600

270,900

451,200

582,200

(14

)%

(14

)%

1,807,600

1,565,300

15

%

Export (South Africa)(2)

4,880,100

4,073,300

4,932,400

4,262,800

5,918,700

20

%

(18

)%

18,148,400

18,306,600

(1

)%

Export (Colombia)(3)

2,260,800

2,068,600

2,244,800

2,199,600

2,297,200

9

%

(2

)%

8,773,800

10,129,400

(13

)%

Domestic (South Africa)

2,172,700

3,175,200

2,016,700

2,402,800

1,947,500

(32

)%

12

%

9,767,500

13,110,800

(26

)%

Third party sales

3,124,700

2,264,400

2,581,500

2,949,500

2,955,200

38

%

6

%

10,920,200

9,503,500

15

%

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

(2)    Includes export primary production, secondary production sold into export markets, production sold domestically at export parity pricing, and pre-commercial production volumes from Navigation section of Khwezela.

(3)    Anglo American's attributable share of Cerrejón production is 33.3%.

Coal, by operation (tonnes)(1)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Metallurgical Coal (Australia)

6,283,600

6,568,900

5,843,500

4,156,200

5,647,100

(4

)%

11

%

22,852,200

21,830,400

5

%

Moranbah North

2,332,600

1,973,100

1,603,200

239,500

2,485,200

18

%

(6

)%

6,148,400

6,762,000

(9

)%

Grosvenor

1,011,700

1,344,500

1,032,500

1,333,200

356,100

(25

)%

184

%

4,721,900

3,763,500

25

%

Capcoal (incl. Grasstree)

1,270,300

1,709,200

1,738,900

1,213,600

1,357,800

(26

)%

(6

)%

5,932,000

5,642,700

5

%

Dawson

842,500

703,200

774,000

633,300

666,100

20

%

26

%

2,953,000

2,393,400

23

%

Jellinbah

826,500

838,900

694,900

736,600

781,900

(1

)%

6

%

3,096,900

3,268,800

(5

)%

Thermal Coal (Australia)

389,200

437,900

245,200

338,500

427,600

(11

)%

(9

)%

1,410,700

1,381,300

2

%

Capcoal

123,200

81,300

63,700

64,000

81,000

52

%

52

%

332,200

284,100

17

%

Dawson

222,900

323,200

145,200

263,300

320,500

(31

)%

(30

)%

954,500

986,100

(3

)%

Jellinbah

43,100

33,400

36,300

11,200

26,100

29

%

65

%

124,000

111,100

12

%

Total Australia production

6,672,800

7,006,800

6,088,700

4,494,700

6,074,700

(5

)%

10

%

24,262,900

23,211,700

5

%

Thermal (South Africa)(2)

 

 

 

 

 

 

 

 

 

 

Goedehoop

1,488,800

1,441,100

1,678,500

1,457,700

1,590,700

3

%

(6

)%

6,066,300

5,441,600

11

%

Greenside

1,428,700

1,237,200

1,186,700

993,300

1,202,300

15

%

19

%

4,845,900

4,451,700

9

%

Zibulo

1,351,000

1,294,100

1,394,600

1,319,600

1,681,500

4

%

(20

)%

5,359,300

6,376,800

(16

)%

Khwezela(3)

1,530,300

1,433,400

1,463,300

1,333,800

1,522,000

7

%

1

%

5,760,800

5,532,100

4

%

Mafube

481,200

450,600

443,900

431,800

464,200

7

%

4

%

1,807,500

1,144,600

58

%

Other(4)

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

1,680,700

n/a

Eskom-tied operations(5)

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

2,825,500

n/a

Isibonelo

745,900

1,053,300

1,031,600

1,171,000

1,368,900

(29

)%

(46

)%

4,001,700

4,597,800

(13

)%

Total South Africa production

7,025,900

6,909,700

7,198,600

6,707,200

7,829,600

2

%

(10

)%

27,841,500

32,050,900

(13

)%

Colombia (Cerrejón)(6)

2,314,900

2,055,100

2,016,900

2,199,300

2,356,500

13

%

(2

)%

8,586,100

10,219,900

(16

)%

Total Coal production

16,013,600

15,971,600

15,304,200

13,401,200

16,260,800

0

%

(2

)%

60,690,500

65,482,500

(7

)%

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

(2)     Export and domestic production; the Eskom-tied operations and Isibonelo produce exclusively domestic volumes.

(3)     Includes pre-commercial production volumes from Navigation section.

(4)     Other production comes from the recovery of saleable product from mineral residue deposits.

(5)     The sale of the Eskom-tied operations was completed on 1 March 2018.

(6)    Anglo American's attributable share of Cerrejón production is 33.3%.

NICKEL

Nickel (tonnes)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Nickel

11,700

11,400

3

%

11,300

4%

42,600

42,300

1

%

                     

Nickel production increased by 3% reflecting improved operational stability.

2020 Production Guidance

Production guidance for 2020 is unchanged at 42,000-44,000 tonnes.

Nickel

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Barro Alto

 

 

 

 

 

 

 

 

 

 

Ore mined

623,300

1,198,800

1,365,400

888,000

816,500

(48

)%

(24

)%

4,075,600

4,667,200

(13

)%

Ore processed

609,200

612,000

519,000

525,400

607,300

0

%

0

%

2,265,700

2,264,200

0

%

Ore grade processed - %Ni

1.73

1.66

1.67

1.67

1.74

4

%

(1

)%

1.69

1.71

(1

)%

Production

9,500

9,200

7,600

7,700

9,100

3

%

4

%

33,900

33,500

1

%

Codemin

 

 

 

 

 

 

 

 

 

 

Ore mined

-

 

1,300

 

39,000

 

-

 

8,400

 

n/a

n/a

40,300

8,400

 

380

%

Ore processed

141,600

140,200

148,900

139,900

150,600

1

%

(6

)%

570,500

581,400

(2

)%

Ore grade processed - %Ni

1.68

1.69

1.62

1.62

1.68

(1

)%

0

%

1.65

1.66

(1

)%

Production

2,200

2,100

2,300

2,100

2,300

5

%

(4

)%

8,700

8,800

(1

)%

Total Nickel production(1)

11,700

11,300

9,800

9,800

11,400

4

%

3

%

42,600

42,300

1

%

Sales volumes

12,500

10,600

8,800

9,800

12,600

18

%

(1

)%

41,700

43,100

(3

)%

                                       

(1)     Excludes nickel production from the PGMs business unit.

 

MANGANESE

Manganese (000 t)

Q4

Q4

Q4 2019 vs. Q4 2018

Q3

Q4 2019 vs. Q3 2019

 

 

 2019 vs.  2018

2019

2018

2019

2019

2018

Manganese ore(1)

903

972

(7

)%

910

(1

)%

3,513

3,607

(3

)%

Manganese alloys(1)(2)

32

38

(17

)%

29

8

%

137

157

(13

)%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

Manganese ore production decreased by 7% to 902,900 tonnes, mainly due to mining fleet reliability issues in South Africa.

Manganese alloy production decreased by 17% to 31,600 tonnes due to a furnace outage in Australia.

Manganese (tonnes)

Q4

Q3

Q2

Q1

Q4

Q4 2019 vs. Q3 2019

Q4 2019 vs. Q4 2018

 

 

 2019 vs.  2018

2019

2019

2019

2019

2018

2019

2018

Samancor

 

 

 

 

 

 

 

 

 

 

Manganese ore(1)

902,900

910,400

826,100

874,000

971,900

(1

)%

(7

)%

3,513,400

3,606,500

(3

)%

Manganese alloys(1)(2)

31,600

29,200

41,200

35,200

38,000

8

%

(17

)%

137,200

156,800

(13

)%

Samancor sales volumes

 

 

 

 

 

 

 

 

 

 

Manganese ore

911,000

897,800

958,400

843,400

959,800

1

%

(5

)%

3,610,600

3,534,500

2

%

Manganese alloys

27,200

30,400

44,800

30,100

44,000

(11

)%

(38

)%

132,500

161,100

(18

)%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

 

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure increased by 15% to $92 million. Exploration expenditure increased by 52% to $44 million driven by increased drilling activities in Copper, PGMs and Kumba Iron Ore. Evaluation expenditure decreased by 4% to $49 million largely due to decreased works in Copper, partially offset by increased spend in Metallurgical Coal, Thermal Coal and De Beers.

CORPORATE ACTIVITY AND OTHER ITEMS

During the quarter, charges recognised within EBITDA relating to rehabilitation provisions are currently estimated to be $0.1 billion at De Beers and $0.1 billion at Copper.

 

 

REALISED PRICES SUMMARY

Average realised prices

2019

2018

H2 2019

H1 2019

2019 vs. 2018

H2 2019 vs. H1 2019

De Beers

 

 

 

 

 

 

Consolidated average realised price ($/ct)(1)

137

171

121

151

(20

)%

(20

)%

Average price index(2)

116

123

107

118

(6

)%

(9

)%

Copper (USc/lb)(3)

273

283

268

280

(4

)%

(4

)%

PGMs

 

 

 

 

 

 

Platinum (US$/oz)

861

871

886

831

(1

)%

7

%

Palladium (US$/oz)

1,518

1,029

1,641

1,400

48

%

17

%

Rhodium (US$/oz)

3,808

2,204

4,726

2,840

73

%

66

%

Basket price (US$/Pt oz)

2,819

2,219

2,930

2,685

27

%

9

%

Iron Ore - FOB prices

 

 

 

 

 

 

Kumba Export (US$/dmt)(4)

97

72

86

108

35

%

(20

)%

Minas-Rio (US$/wmt)(5)

79

70

69

92

13

%

(25

)%

Coal

 

 

 

 

 

 

Australia

 

 

 

 

 

 

Metallurgical - HCC (US$/t)(6)

171

194

153

195

(12

)%

(22

)%

Metallurgical - PCI (US$/t)(6)

110

128

98

123

(14

)%

(20

)%

Thermal - Export (US$/t)

70

103

57

88

(32

)%

(35

)%

South Africa

 

 

 

 

 

 

Thermal - Export (US$/t)(7)

61

87

59

64

(30

)%

(8

)%

Thermal - Domestic (US$/t, FOR)(8)

14

19

13

15

(26

)%

(13

)%

Colombia

 

 

 

 

 

 

Thermal - Export (US$/t)

56

83

51

62

(33

)%

(18

)%

Nickel (USc/lb)

624

588

672

563

6

%

19

%

(1)  Consolidated average realised price based on 100% selling value post-aggregation.

(2)  Average of the De Beers price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.

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

(4)  Average realised export basket price (FOB Saldanha). For 2019 and H2 2019 the realised prices differ to Kumba's standalone Q4 results due to sales to other Group companies.

(5)  Average realised export basket price (FOB Açu) (wet basis).

(6)  Weighted average metallurgical coal sales price achieved.

(7)  Weighted average export thermal coal price achieved.

(8)  Weighted average domestic thermal coal price achieved on all domestic thermal coal sales.

 

NOTES

•     This Production Report for the quarter ended 31 December 2019 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.

 

For further information, please contact:

Media

Investors

UK

James Wyatt-Tilby

james.wyatt-tilby@angloamerican.com

Tel: +44 (0)20 7968 8759

 

Marcelo Esquivel

marcelo.esquivel@angloamerican.com

Tel: +44 (0)20 7968 8891

 

South Africa

Pranill Ramchander

pranill.ramchander@angloamerican.com

Tel: +27 (0)11 638 2592

 

Sibusiso Tshabalala

sibusiso.tshabalala@angloamerican.com

Tel: +27 (0)11 638 2175

UK

Paul Galloway

paul.galloway@angloamerican.com

Tel: +44 (0)20 7968 8718

 

Robert Greenberg

robert.greenberg@angloamerican.com

Tel: +44 (0)20 7968 2124

 

Emma Waterworth

emma.waterworth@angloamerican.com

Tel: +44 (0)20 7968 8574

 

 

Forward-looking statements:

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 Resources), 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, 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 governmental authorities such as permitting 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 "Takeover Code"), 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 third party information.

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 mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world - safely, responsibly and sustainably.

As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal, nickel and manganese - we are the custodians of what are precious natural resources. We work together with our business partners and diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

     

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