Q3 2017 Production Report

RNS Number : 3922U

Anglo American PLC

24 October 2017

 

24 October 2017

Anglo American plc

Production Report for the third quarter ended 30 September 2017

Anglo American reports a 6% increase in total production on a copper equivalent basis in the third quarter of 2017, compared to the same period of 2016. For the first nine months of the year, copper equivalent production has increased by 8%⁽¹⁾.

Mark Cutifani, Anglo American Chief Executive, said: "We have delivered another strong production performance across our business. Grosvenor production has materially stepped-up as the new operating procedures have been implemented, while Gahcho Kué and Minas-Rio continue to make positive contributions. We have further increased production guidance at Kumba Iron Ore as we continue to improve our broader productivity performance. In Platinum, we have taken necessary steps to remove unprofitable ounces from production as we focus on value over volume."

Highlights

·      At De Beers, stable trading conditions supported an increase in rough diamond production, driven principally by Debswana, and the ramp-up of Gahcho Kué.

·      Copper production increased by 5% to 147,300 tonnes, reflecting strong mine extraction and higher associated grades.

·      Production guidance for Platinum has been lowered to 2.30 - 2.35 million ounces following the closure of unprofitable production at Bokoni, which was placed on care and maintenance in the quarter.

·      Production guidance at Kumba Iron Ore has been further increased to 42 - 44 million tonnes following the continuation of strong productivity performance at Sishen.

·      Metallurgical coal production increased by 8% as Grosvenor delivered strong production through successful management of geological challenges and completion of its first longwall panel.

·      Thermal coal production decreased by 15% due to operating challenges at Khwezela, a 100-hour safety stoppage across all the South African coal operations in August and weather related stoppages at Cerrejón.

Production Summary

	Q3 2017	Q3 2016	% vs. Q3 2016	YTD 2017	YTD 2016	% vs. YTD 2017
Diamonds (Mct)(2)	9.2	6.3	46%	25.3	19.6	29%
Copper (t)(3)(4)	147,300	139,800	5%	430,700	430,500	-
Platinum (produced ounces) (koz)(5)	621	619	-	1,810	1,772	2%
Iron ore - Kumba (Mt)	11.5	11.8	(2)%	33.3	29.5	13%
Iron ore - Minas-Rio (Mt)(6)	4.2	4.5	(6)%	12.8	11.3	14%
Export metallurgical coal (Mt)	5.5	5.1	9%	14.7	14.1	5%
Export thermal coal (Mt)(7)	6.3	7.4	(15)%	19.6	20.6	(5)%
Nickel (t)(8)	11,200	11,300	(1)%	32,400	33,600	(4)%

(1) Copper equivalent production is normalised for, Kimberley, Niobium & Phosphates, Foxleigh and Callide, and to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton; (2) De Beers production on 100% basis except the Gahcho Kué joint venture which is on an attributable 51% basis;  (3) Copper production from the Copper business unit; (4) Copper production shown on a contained metal basis; (5) Reflects own mine production and purchases of metal in concentrate; (6) Wet basis; (7) Export thermal coal includes export primary production from South Africa and Colombia, and excludes secondary South African production that may be sold into either the export or domestic markets; (8) Nickel production from the Nickel business unit.

NOTES

·      This Production Report for the third quarter ended 30 September 2017 is unaudited.

·      Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report. The percentage change will reflect the percentage change using the production figures shown in the Production Summary of this report.

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

Forward-looking statements:

This 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:

Media		Investors
UK James Wyatt-Tilby [e-mail] Tel: [phone] Marcelo Esquivel [e-mail] Tel: [phone] South Africa Pranill Ramchander [e-mail] Tel: [phone] Ann Farndell [e-mail] Tel: [phone]		UK Paul Galloway [e-mail] Tel: [phone] Trevor Dyer [e-mail] Tel: [phone] Sheena Jethwa [e-mail] Tel: [phone]

Notes to editors:

Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products to our customers around the world.

As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders and for the communities and countries in which we operate - creating sustainable value and making a real difference.

www.angloamerican.com

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