Interim Management Statement

RNS Number : 5898K
Anglo American PLC
22 April 2010
 



News Release

22 April 2010

Anglo American plc

Interim Management Statement

Production Report for the first quarter ended 31 March 2010

 

Overview

 

·     Iron ore production increased by 23% to 12.3 million tonnes as Sishen's jig plant continues to ramp up to full production

 

·     Platinum refined production increased by 11% to 447,000 ounces, on track to meet full year target of 2.5 million ounces, with upside flexibility to meet market demand

Unit costs on track to remain flat vs. 2009

Further labour productivity increase; improved by 17% since Q1 2009

               

·     Copper production increased by 7% to 161,000 tonnes, due to higher grades and recoveries at Los Bronces and higher grades and throughput at Collahuasi

 

·     Nickel(1) production increased by 7% to 4,800 tonnes

 

·     Metallurgical coal production increased by 32% to 3.6 million tonnes

 

·     Thermal coal production decreased by 2% to 19.2 million tonnes

 

·     Diamond production increased to 7 million carats to meet strengthening market demand

 

·     Major divestment programme progressing well

Zinc sale process well advanced and highly competitive

Tarmac Polish Concrete Products sale completed and Tarmac European Aggregates sale agreed, for an aggregate consideration of approximately $400 million

 

·     Anglo Platinum and De Beers rights issues successfully completed, supported by Anglo American. Strong demand for $1.7 billion Anglo Platinum rights issue, with minority shareholders over-subscribing by almost 3 times.

 

 

Results for the half year to 30 June 2010 will be announced on 30 July 2010.

 

This report forms Anglo American plc's Interim Management Statement for the purpose of the UK Listing Authority's Disclosure and Transparency Rules.

 

  

(1) Nickel production from the Nickel Business Unit.

 

 

Q1 2010 Production Summary by Business Unit

 

Platinum

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Refined

 

 

 

 

 

 

Platinum

000 oz

447

404

11%

766

-42%

Palladium

000 oz

247

235

5%

426

-42%

Rhodium

000 oz

62

74

-16%

94

-34%

Nickel

t

4,400

3,300

33%

5,300

-17%

Equivalent refined

 

 

 

 

 

Platinum

000 oz

595

613

-3%

604

-1%

 

  

Platinum - Refined production increased by 11% to 446,700 ounces. Processing performance was in line with expectations during the quarter, with the planned Polokwane Smelter furnace re-build completed successfully, ahead of schedule. Anglo Platinum continues to target full year production of 2.5 million ounces of refined platinum and retains the flexibility to increase that level to meet market demand.

 

Equivalent refined platinum ounces from mining and purchase activities were 594,700 ounces for the quarter. Production in Q1 2009 included some 31,000 equivalent refined platinum ounces from higher cost operations that were placed on care and maintenance during Q2 and Q3 2009.

 

Palladium, Rhodium & Nickel - Refined production of palladium and nickel increased by 5% and 33% respectively, whilst rhodium decreased by 16%. The increases vary due to a different source mix from operations and different pipeline processing times per metal.

 

 

Copper

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Copper

 t

160,800

150,500

7%

185,900

-14%

 

Copper - Production increased by 7% to 160,800 tonnes. Collahuasi benefited from improved grades and higher throughput levels. Production at Los Bronces increased as a result of higher grades and recovery. These increases were partially offset by lower production at Mantos Blancos, primarily due to a conveyor belt failure.

 

Production decreased by 14% compared to Q4 2009, principally due to lower ore grades at Los Bronces and Collahuasi. At Collahuasi, lower throughput as a result of high clay content and scheduled mill stoppages also impacted production.

 



 

Nickel

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Nickel

 t

4,800

4,500

7%

4,900

-2%

 

Nickel - Production increased by 7% compared to Q1 2009, when production was impacted by maintenance stoppages at the Codemin reduction furnace and by the temporary suspension of operations at Loma de Níquel following the expiration of the slag deposition permit.

 

 

Iron Ore and Manganese

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Iron ore

000 t

12,328

9,992

23%

12,407

-1%

Manganese ore

000 t

684

293

133%

615

11%

Manganese alloys

000 t

68

42

62%

52

31%

 

Iron ore - Total production increased by 23% to 12.3Mt and was flat compared to Q4 2009.  Sishen Mine's production increased by 0.3Mt compared to Q4 2009 to 11.0Mt. The 3.3Mt produced by the jig plant accounted for 30% of Sishen Mine's production.

 

Production from the jig plant increased by 7% or 0.2Mt compared to Q4 2009.  The ramp up of the jig plant to produce 12.5-13Mt during 2010 continues as planned.

 

Production from Thabazimbi Mine decreased by 23% compared to Q4 2009, to 0.5Mt.

 

Demand for iron ore continues to recover in Europe, Japan and Korea which coupled with continued strong demand from China, resulted in Kumba's export sales in the quarter of 9.3Mt, an increase of 21% on Q4 2009.  

 

Manganese ore - Production increased by 133% as market conditions continued to recover during the quarter. Samancor is operating at close to full capacity.

 

Manganese alloys - Production increased by 62% as market conditions continued to recover during the quarter.

 

 

Metallurgical Coal

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Production

 

 

 

 

 

 

Export metallurgical

000 t

3,282

2,315

42%

3,806

-14%

Thermal

000 t

3,350

3,212

4%

3,487

-4%

Weighted average

achieved FOB prices

 

 

 

 

 

Export metallurgical

US$/t

131

203

-35%

123

7%

Export thermal

US$/t

79

84

-6%

67

18%

Domestic thermal

US$/t

31

23

35%

30

3%

Attributable sales volumes

 

 

 

 

 

Export metallurgical

000 t

3,258

1,877

74%

3,285

-1%

Export thermal

000 t

1,317

1,458

-10%

1,614

-18%

Domestic thermal

000 t

1,949

2,017

-3%

2,222

-12%

 

Metallurgical Coal - Production of metallurgical coal from Anglo American's Australian operations increased by 42%, in response to strengthening market demand. Sales volumes benefited from preparations that were made in Q4 2009 as cyclonic rain conditions struck Queensland in Q1 2010.

 

The business unit increased production of thermal coal from mines in Australia by 4%, again in response to increasing market demand.

 

 

Thermal Coal

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Production

 

 

 

 

 

 

Thermal

000 t

7,460

7,729

-3%

7,785

-4%

Eskom

000 t

8,170

8,438

-3%

8,448

-3%

Metallurgical

000 t

111

220

-50%

131

-15%

Weighted average achieved FOB prices

 

 

 

 

 

RSA export thermal

US$/t

78

65

20%

66

18%

RSA domestic thermal

US$/t

18

17

6%

21

-14%

South American export thermal

US$/t

69

82

-16%

70

-1%

Attributable sales volumes

 

 

 

 

 

RSA export thermal

000 t

3,932

3,947

0%

4,206

-7%

RSA domestic thermal

000 t

1,190

1,642

-28%

1,448

-18%

South American export thermal

000 t

2,425

2,409

1%

2,735

-11%

 

Thermal Coal - Production of thermal coal, from the Group's South African and Colombian operations, was marginally lower than the Q1 2009 performance, due to above average rainfall in South Africa that hampered open-cast operations.

 

 

Diamonds

Q1

Q1

Q1 2010

Q4

Q1 2010

2010

2009

vs.

2009

vs.

 

 

Q1 2009

 

Q4 2009

Total

000 carats

7,012

1,082

548%

10,124

-31%

 

Diamonds - Production increased to 7 million carats in the first quarter of 2010 as the market continued to improve. Sales in Q1 2010 were nearly three times higher than the same period of 2009. This followed re-stocking in the pipeline in the first quarter, improving US consumer confidence and strong growth continuing in China and India.

 

Production is significantly ahead of Q1 2009, during which production was scaled back across all mines in response to weak market sentiment.

 

Relative to Q4 2009, heavy seasonal rainfall in Southern Africa imposed operational challenges, whilst production at De Beers' Canadian operations was favourable.

 

 



Production summary

 

The figures below include the entire output of consolidated entities and the Group's share of joint ventures, joint arrangements and associates where applicable, except for De Beers which is quoted on a 100% basis.

 









% Change







Q1 2010

Q1 2010


Q1

Q4

Q3

Q2

Q1

vs.

vs.


2010

2009

2009

2009

2009

Q4 2009

Q1 2009

Platinum








Platinum (troy ounces)

446,700

766,000

629,200

652,400

404,000

-42%

11%

Palladium (troy ounces)

247,000

426,300

337,500

361,600

235,100

-42%

5%

Rhodium (troy ounces)

61,600

93,900

92,100

90,100

73,800

-34%

-16%

Nickel (tonnes)

4,400

5,300

5,500

5,400

3,300

-17%

33%

Equivalent refined








Platinum (troy ounces)(1)

594,700

603,900

616,500

630,400

613,400

-1%

-3%









Diamonds (De Beers) (diamonds recovered - 000 carats)








Diamonds

7,012

10,124

7,885

5,509

1,082

-31%

548%









Copper (tonnes)

160,800

185,900

168,100

165,300

150,500

-14%

7%









Nickel (tonnes)

4,800

4,900

4,900

5,600

4,500

-2%

7%









Iron Ore and Manganese (tonnes)








Iron ore

12,328,000

12,407,200

11,861,000

10,336,000

9,992,000

-1%

23%

Manganese ore(2)

684,000

615,000

462,000

200,000

293,000

11%

133%

Manganese alloys(2)

68,100

52,000

25,000

10,000

42,000

31%

62%









Metallurgical Coal (tonnes)








Metallurgical

3,281,600

3,805,500

3,147,800

3,354,000

2,315,300

-14%

42%

Thermal

3,349,800

3,487,400

3,614,300

3,738,600

3,211,500

-4%

4%









Thermal Coal

(tonnes)(3)








Thermal

7,460,000

7,785,400

8,431,600

8,429,300

7,729,200

-4%

-3%

Eskom

8,170,100

8,448,400

10,400,200

8,938,400

8,438,100

-3%

-3%

Metallurgical

111,400

130,500

224,300

172,300

220,000

-15%

-50%









Other Mining and Industrial (tonnes)








Metallurgical coal

194,700

149,900

164,900

152,600

177,900

30%

9%

Thermal coal

173,000

310,200

214,500

169,000

130,000

-44%

33%

Zinc

87,700

86,500

94,000

87,100

82,800

1%

6%

Lead

15,400

18,900

18,400

16,400

14,600

-19%

5%

South Africa Steel Products

182,000

167,000

183,000

164,000

179,000

9%

2%

International Steel Products

190,000

177,000

164,000

158,000

195,000

7%

-3%









Coal production by commodity (tonnes)








Metallurgical

3,587,700

4,085,900

3,537,000

3,678,900

2,713,200

-12%

32%

Thermal

10,982,800

11,583,000

12,260,400

12,336,900

11,070,700

-5%

-1%

Eskom

8,170,100

8,448,400

10,400,200

8,938,400

8,438,100

-3%

-3%

 

(1) Equivalent refined platinum production.

(2) Saleable production.

(3) Zibulo (previously Zondagsfontein) is currently not in commercial production and therefore all revenue and related costs associated with 134,000 tonnes (119,000 tonnes in Q4 2009) of production in Q1 2010 have been capitalised.

 



As production figures are sometimes more precise than the rounded numbers shown in this report, small differences may arise throughout the report between the summation of quarters and the year-to-date totals. The percentage change will reflect the percentage change in the rounded production figures shown in this report.

 

Due to the portfolio and management structure changes announced in October 2009, the Business Units have changed from those reported at 31 March 2009, 30 June 2009 and 30 September 2009. Comparatives have been reclassified to align with current presentation.

 

 

Forward looking statements:

 

This Interim Management Statement contains certain forward looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that occur in the future.  There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements. 

 

 

For further information, please contact:

 

United Kingdom

 

James Wyatt-Tilby, Media Relations

Tel: +44 (0)20 7968 8759

 

Caroline Metcalfe, Investor Relations

Tel: +44 (0)20 7968 2192

 

Leisha Wemyss, Investor Relations

Tel: +44 (0)20 7968 8607

 

South Africa

 

Anna Mulholland, Investor Relations

Tel: +27 (0)11 638 2079

 

Pranill Ramchander, Media Relations

Tel: +27 (0)11 638 2592

 



Notes to Editors:

 

Anglo American plc is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Its portfolio of mining businesses spans precious metals and minerals - in which it is a global leader in both platinum and diamonds; base metals - copper and nickel; and bulk commodities - iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.

www.angloamerican.co.uk


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IMSBRGDSDSDBGGB
UK 100

Latest directors dealings