Q3 2019 Production Report

RNS Number : 6203Q
Anglo American PLC
22 October 2019
 

Anglo American plc

Production Report for the third quarter ended 30 September 2019

Mark Cutifani, Chief Executive of Anglo American, said: "Production is up 4%(1) for the quarter, driven by the continued successful ramp-up at Minas-Rio and strong performance at Metallurgical Coal. De Beers production is lower, as expected, with Victor mine now at the end of its life and the transition of Venetia to underground. We remain broadly on track to deliver within our full year production targets, with an increase in production guidance at Minas-Rio. We expect to deliver to our production guidance for Copper and Thermal Coal, albeit at the lower end of their ranges; with Copper working to mitigate the effect of drought conditions in central Chile."

Production summary

•     De Beers' diamond production decreased by 14% to 7.4 million carats due to planned mine closures and the underground transition at Venetia, and as we continue to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness.

•     Copper production decreased by 8% to 158,900 tonnes due to unprecedented drought conditions impacting Los Bronces in Chile.

•     Platinum and palladium production were broadly unchanged at 526,800 ounces and 351,800 ounces respectively.

•     Kumba's iron ore production was unchanged at 10.5 million tonnes as increased production at Sishen was offset by lower production at Kolomela due to a plant upgrade.

•     Minas-Rio's strong operational performance continued as iron ore production reached 6.1 million tonnes.

•     Metallurgical coal production increased by 22% to 6.6 million tonnes due to improved wash plant throughput and equipment efficiency, as well as timing of longwall moves.

 

% vs. Q3 2018

Diamonds (Mct)(3)

(14)%

Copper (kt)(4)

(8)%

Platinum (koz)(5)

(1)%

Palladium (koz)(5)

0%

Iron ore - Kumba (Mt)

0%

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

n/a

Metallurgical coal (Mt)

22%

Thermal coal (Mt)(7)

(18)%

Nickel (kt)(8)

(2)%

Manganese ore (kt)

(1)     Copper equivalent production is normalised to reflect closure of Voorspoed (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 2% 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).

 

http://www.rns-pdf.londonstockexchange.com/rns/6203Q_1-2019-10-21.pdf

DE BEERS

De Beers(1) (000 carats)

Botswana (Debswana)

Namibia (Namdeb)

South Africa

Canada

Total carats recovered

Rough diamond production decreased by 14% to 7.4 million carats due to planned reductions in South Africa and Canada. In addition, we continue to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness.

Botswana (Debswana) production was flat at 5.7 million carats. Orapa production increased by 22% due to a planned increase in the grade of material treated. This was offset by an 18% decrease at Jwaneng due to planned lower grade.

Namibia (Namdeb) production decreased by 7% to 0.4 million carats, as the Elizabeth Bay land operations were placed on care and maintenance in Q4 2018.

South Africa production decreased by 60% to 0.5 million carats due to lower mined volumes at Venetia as it approaches the transition from open pit to underground. In addition, Voorspoed production ended in Q4 2018 when it was placed on care and maintenance in preparation for closure.

Canada production decreased by 34% to 0.8 million carats primarily due to the closure of Victor which reached the end of its life in Q2 2019.

Rough diamond sales amounted to 7.4 million carats (7.1 million carats on a consolidated basis)(2) from three sales cycles, which compares to 5.0 million carats of sales (4.6 million carats on a consolidated basis(2) from two sales cycles in Q3 2018. Rough sales volumes were therefore higher due to an additional sales cycle in the period compared with the previous year; however, overall demand for rough diamonds remains subdued as a result of challenges in the midstream with higher polished inventories and caution due to macro-economic uncertainty.

 

Full Year Guidance

Production guidance(1) is unchanged at ~31 million carats, subject to trading conditions.  

 

(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)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Carats recovered (000 carats)

 

 

 

 

 

 

 

 

 

 

100% basis (unless stated)

 

 

 

 

 

 

 

 

 

 

Jwaneng

2,584

3,223

3,336

2,744

3,143

(20

)%

(18

)%

9,143

9,152

0

%

Orapa(2)

3,115

2,495

2,614

3,602

2,556

25

%

22

%

8,224

8,634

(5

)%

Botswana (Debswana)

5,699

5,718

5,950

6,346

5,699

0

%

0

%

17,367

17,786

(2

)%

 

 

 

 

 

 

 

 

 

 

 

Debmarine Namibia

320

245

364

400

322

31

%

(1

)%

929

1,036

(10

)%

Namdeb (land operations)

106

90

119

105

138

18

%

(23

)%

314

467

(33

)%

Namibia (Namdeb)

426

335

483

505

460

27

%

(7

)%

1,243

1,503

(17

)%

 

 

 

 

 

 

 

 

 

 

 

Venetia

535

571

382

1,141

1,178

(6

)%

(55

)%

1,488

3,108

(52

)%

Voorspoed

-

 

-

 

-

 

93

159

n/a

n/a

-

 

340

n/a

South Africa

535

571

382

1,234

1,337

(6

)%

(60

)%

1,488

3,448

(57

)%

 

 

 

 

 

 

 

 

 

 

 

Gahcho Kué (51% basis)

779

883

808

789

927

(12

)%

(16

)%

2,470

2,750

(10

)%

Victor

-

 

192

229

254

251

n/a

n/a

421

682

(38

)%

Canada

779

1,075

1,037

1,043

1,178

(28

)%

(34

)%

2,891

3,432

(16

)%

Total carats recovered

7,439

7,699

7,852

9,128

8,674

(3

)%

(14

)%

22,989

26,169

(12

)%

Sales volumes

 

 

 

 

 

 

 

 

 

 

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

7.4

9.0

7.5

9.9

5.0

(18

)%

48

%

23.9

23.9

0

%

Consolidated sales volume (Mct)(3)

7.1

8.3

7.2

9.3

4.6

(14

)%

54

%

22.6

22.4

1

%

Number of Sights (sales cycles)

3

3

2

3

2

 

 

8

7

 
                                   

(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)

Los Bronces

Collahuasi (44% share)

El Soldado

Total Copper

(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 8% to 158,900 tonnes, due to a reduction at Los Bronces driven by unprecedented drought conditions in central Chile, partially offset by strong plant performance at Collahuasi.

Production from Los Bronces decreased by 16%, to 80,400 tonnes, with a 15% reduction in plant throughput due to lower water availability, partly offset by planned higher grades (0.78% vs. 0.76%). To date, 2019 has been the driest year of the longest drought ever recorded in central Chile.

At Collahuasi, attributable production increased by 5% to 64,500 tonnes, with planned lower grades (1.14% vs 1.33%) offset by strong plant performance.

Full year guidance

Production guidance is tightened to 630,000-650,000 tonnes (previously 630,000-660,000 tonnes) due to the severe drought, which also remains a risk for 2020 production.

 

 

Copper(1)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Los Bronces mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

15,560,400

17,302,500

15,678,600

12,675,800

13,019,000

(10

)%

20

%

48,541,500

46,531,600

4

%

Ore processed - Sulphide

10,977,200

11,813,600

12,070,800

12,669,900

13,089,300

(7

)%

(16

)%

34,861,600

37,913,100

(8

)%

Ore grade processed -

Sulphide (% TCu)(3)

0.78

0.81

0.80

0.81

0.76

(4

)%

3

%

0.80

0.74

8

%

Production - Copper cathode

10,100

9,300

9,600

10,200

10,300

9

%

(2

)%

29,000

28,800

1

%

Production - Copper in concentrate

70,300

81,900

82,100

88,800

85,500

(14

)%

(18

)%

234,300

241,800

(3

)%

Total production

80,400

91,200

91,700

99,000

95,800

(12

)%

(16

)%

263,300

270,600

(3

)%

Collahuasi 100% basis

(Anglo American share 44)%

 

 

 

 

 

 

 

 

 

 

Ore mined

25,780,000

23,698,300

15,642,800

14,781,300

13,791,400

9

%

87

%

65,121,000

37,105,100

76

%

Ore processed - Sulphide

14,478,700

11,626,100

13,299,600

13,638,400

12,332,800

25

%

17

%

39,404,400

35,832,100

10

%

Ore grade processed -

Sulphide (% TCu)(3)

1.14

1.21

1.16

1.28

1.33

(5

)%

(14

)%

1.17

1.30

(10

)%

Production - copper in concentrate

146,600

124,400

130,200

157,400

139,700

18

%

5

%

401,200

401,800

0

%

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

64,500

54,700

57,300

69,200

61,500

18

%

5

%

176,500

176,800

0

%

El Soldado mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

3,299,900

3,017,800

3,089,000

3,233,900

3,361,000

9

%

(2

)%

9,406,700

8,379,300

12

%

Ore processed - Sulphide

1,911,700

1,861,900

1,809,900

1,951,600

2,036,000

3

%

(6

)%

5,583,500

5,646,600

(1

)%

Ore grade processed -

Sulphide (% TCu)(3)

0.92

0.92

0.84

0.94

0.87

0

%

6

%

0.90

0.82

9

%

Production - copper in concentrate

14,000

13,200

12,100

15,300

14,500

6

%

(3

)%

39,300

37,400

5

%

Chagres Smelter(2)

 

 

 

 

 

 

 

 

 

 

Ore smelted

28,800

32,100

30,300

30,900

37,700

(10

)%

(24

)%

91,200

111,700

(18

)%

Production

28,000

31,200

29,500

30,100

36,900

(10

)%

(24

)%

88,700

109,100

(19

)%

Total copper production(5)

158,900

159,100

161,100

183,500

171,800

0

%

(8

)%

479,100

484,800

(1

)%

Total payable copper production

153,000

153,100

155,000

177,100

165,700

0

%

(8

)%

461,100

467,400

(1

)%

Total sales volumes

160,000

165,400

141,900

205,800

159,900

(3

)%

0

%

467,300

465,900

0

%

Total payable sales volumes

153,800

159,100

136,500

198,400

154,200

(3

)%

0

%

449,400

449,300

0

%

Third party sales(6)

91,600

88,800

53,400

50,400

51,800

3

%

77

%

233,800

123,300

90

%

(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)

Metal in concentrate production(2)

Own mined(3)

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

POC now under tolling arrangement(5)

 

 

 

Palladium (000 oz)(1)

 

 

 

 

 

 

 

 

Metal in concentrate production(2)

Own mined(3)

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

POC now under tolling arrangement(5)

 

 

 

Refined production

 

 

 

 

 

 

 

 

Platinum

000 oz(1)(6)

Palladium

000 oz(1)(6)

Rhodium

000 oz(1)(6)

Gold

000 oz(1)(6)

Nickel

t(6)

Copper

t(6)

Tolled material

 

 

 

 

 

 

 

 

Platinum

000 oz(1)

 

 

 

Palladium

000 oz(1)

51.3

-

 

n/a

49.1

 

4

%

100.4

-

 

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 excludes toll material but includes in comparative periods material now transitioned to tolling.

Metal in concentrate production

Platinum production decreased by 1% to 526,800 ounces while palladium production was flat at 351,800 ounces.

Own mined platinum production increased by 6% to 351,700 ounces and palladium production increased by 5% to 262,700 ounces due to the inclusion of 100% of Mototolo volumes following the acquisition of the remaining 50% of the asset in November 2018. Increased production from Mogalakwena due to higher throughput and grade was partially offset by decreased production at Amandelbult due to maintenance at the concentrators.

Purchase of platinum in concentrate decreased by 11% to 175,100 ounces and of palladium decreased by 12% to 89,000 ounces due to lower purchases from joint ventures, as Mototolo became 100% owned in November 2018.

Refined production and sales volumes

Refined platinum production(1) increased by 4% to 578,600 ounces and refined palladium production(1) increased by 13% to 362,100 ounces. Q3 2018 volumes were negatively impacted by Mortimer smelter ramping up from its full rebuild and repairs at Polokwane smelter (35-day shutdown).

Platinum sales volumes(1) increased by 1% to 537,400 ounces and palladium sales volumes(1) decreased by 2% to 316,900. Sales volumes were lower than refined production due to maintenance work at the Waterval smelter.

Full Year Guidance

Production guidance (metal in concentrate) is unchanged at 2.0-2.1 million ounces of platinum and 1.3-1.4 million ounces of palladium.

(1)     Does not include tolled volumes.

Platinum

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Produced platinum

(000 oz)(1)

526.8

520.3

471.9

485.4

529.5

1

%

(1

)%

1,519.0

1,535.1

(1

)%

Own mined

351.7

342.8

321.9

307.5

332.9

3

%

6

%

1,016.4

1,016.1

0

Mogalakwena

123.4

127.9

130.4

108.4

113.9

(4

)%

8

%

381.7

386.7

(1

Amandelbult

118.4

116.6

98.5

96.5

126.0

2

%

(6

)%

333.5

346.2

(4

Unki

23.7

23.1

19.3

22.0

22.4

3

%

6

%

66.1

63.9

3

Mototolo(2)

31.4

23.0

26.8

17.5

 

-

 

37

%

n/a

81.2

-

 

n/a

Joint ventures(2)

54.8

52.2

46.9

63.1

70.6

5

%

(22

)%

153.9

207.7

(26

Union

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

11.6

n/a

Purchase of concentrate(3)

175.1

177.5

150.0

177.9

196.6

(1

)%

(11

)%

502.6

519.0

(3

Joint ventures(2)

54.8

52.2

46.9

63.1

70.6

5

%

(22

)%

153.9

207.7

(26

Associates(4)

-

 

-

 

-

 

46.9

66.7

n/a

n/a

-

 

173.3

n/a

Third parties(3)

120.3

125.3

103.1

67.9

59.3

(4

)%

103

%

348.7

138.0

153

POC now under tolling arrangements(5)

-

 

-

 

-

 

116.9

119.5

n/a

n/a

-

 

347.3

n/a

Palladium

 

 

 

 

 

 

 

 

 

 

Produced palladium

(000 oz)(1)

351.8

347.2

326.6

328.5

351.4

1

%

0

%

1,025.5

1,050.5

(2

)%

Own mined

262.7

260.5

250.9

234.8

250.2

1

%

5

%

774.1

778.7

(1

Mogalakwena

130.8

139.5

141.5

118.2

127.1

(6

)%

3

%

411.8

422.7

(3

Amandelbult

54.3

53.7

44.9

44.9

57.3

1

%

(5

)%

152.9

160.2

(5

Unki

21.3

20.9

17.0

19.6

19.7

2

%

8

%

59.2

55.9

6

Mototolo(2)

19.4

14.0

16.3

10.9

 

-

 

39

%

n/a

49.7

-

 

n/a

Joint ventures(2)

36.9

32.4

31.2

41.2

46.1

14

%

(20

)%

100.5

134.7

(25

Union

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

5.2

n/a

Purchase of concentrate(3)

89.0

86.7

75.7

93.7

101.2

3

%

(12

)%

251.4

271.8

(8

Joint ventures(2)

36.9

32.4

31.2

41.2

46.1

14

%

(20

)%

100.5

134.7

(25

Associates(4)

-

 

-

 

-

 

19.3

27.2

n/a

n/a

-

 

70.9

n/a

Third parties(3)

52.1

54.3

44.5

33.2

27.9

(4

)%

87

%

150.9

66.2

128

POC now under tolling arrangements(5)

-

 

-

 

-

 

58.1

59.4

n/a

n/a

-

 

173.7

n/a

Refined production

 

 

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)(6)

578.6

590.9

411.7

770.9

556.2

(2

)%

4

%

1,581.2

1,631.5

(3

Palladium (000 oz)(1)(6)

362.1

428.2

293.6

493.8

321.5

(15

)%

13

%

1,083.9

1,008.0

8

Rhodium (000 oz)(1)(6)

66.5

84.1

52.0

91.3

65.2

(21

)%

2

%

202.6

201.5

1

Gold (000 oz)(1)(6)

27.9

21.3

24.0

27.9

27.4

31

%

2

%

73.2

77.6

(6

Nickel (tonnes)(6)

6,800

5,600

4,200

6,700

5,600

21

%

21

%

16,600

16,400

1

Copper (tonnes)(6)

3,400

3,500

3,200

4,200

2,900

(3

)%

17

%

10,100

10,100

0

Tolled material

 

 

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)

100.9

97.9

-

 

-

 

-

 

3

%

n/a

198.8

-

 

n/a

Palladium (000 oz)(1)

51.3

49.1

-

 

-

 

-

 

4

%

n/a

100.4

-

 

n/a

 

 

 

 

 

 

 

 

 

 

 

Platinum sales volumes

(000 oz)(1)(7)

537.4

595.2

414.2

776.9

530.1

(10

)%

1

%

1,546.8

1,647.3

(6

)%

 

 

 

 

 

 

 

 

 

 

 

Palladium sales volumes

(000 oz)(1)(7)

316.9

475.9

292.1

455.3

324.3

(33

)%

(2

)%

1,084.9

1,057.8

3

%

 

 

 

 

 

 

 

 

 

 

 

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

17.5

13.0

5.0

1.5

26.9

35

%

(35

)%

35.5

92.5

(62

)%

 

 

 

 

 

 

 

 

 

 

 

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

79.7

81.0

58.7

16.5

55.0

(2

)%

45

%

219.4

108.0

103

%

 

 

 

 

 

 

 

 

 

 

 

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

3.65

3.55

3.58

3.38

3.58

3

%

2

%

3.60

3.51

3

%

(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)

Kumba

Minas-Rio(1)

6,126

-

 

n/a

5,916

4

%

16,951

3,155

n/a
                         

(1)       Wet basis.

Kumba - Total production volumes were broadly flat at 10.5 million tonnes, with increased production at Sishen offset by lower volumes from Kolomela.

Sishen's production increased by 2% to 7.2 million tonnes compared to Q3 2018 when production was reduced to manage stock levels arising from rail constraints.

Kolomela's production decreased by 3% to 3.4 million tonnes, as planned, due to an infrastructure upgrade at the DMS plant, which is scheduled to reopen in the fourth quarter.

Total sales decreased by 3% to 10.2 million tonnes, driven by domestic sales declining by 36% to 0.5 million tonnes due to lower customer off-take, while export sales were broadly flat at 9.7 million tonnes. Total finished stock increased to 5.1 million tonnes from 4.5 million tonnes at Q2 2019, as a result of the scheduled refurbishment of a ship loader.

In the third quarter, the ratio of lump to fines in the Kumba product was 66:34.

 

Minas-Rio - Production of 6.1 million tonnes was driven by continued strong operational performance and stability due to higher grade ore from the Step 3 mine area and productivity initiatives. The construction of the scheduled tailings dam raise was completed in August and approval for the conversion of the installation licence to an operating licence is expected by year-end.

 

Full Year Guidance

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

Minas-Rio production guidance for 2019 is increased to 20-22 million tonnes (previously 19-21 million tonnes) based on continued strong performance.

 

Iron Ore (tonnes)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Kumba production

10,521,300

10,544,000

9,516,300

10,170,200

10,508,400

0

%

0

%

30,581,600

32,935,500

(7

)%

Lump

6,955,500

7,111,400

6,544,600

6,878,600

7,159,800

(2

)%

(3

)%

20,611,500

22,292,900

(8

Fines

3,565,800

3,432,600

2,971,700

3,291,600

3,348,600

4

%

6

%

9,970,100

10,642,600

(6

)%

Kumba production by mine

 

 

 

 

 

 

 

 

 

 

Sishen

7,153,500

7,310,400

6,446,600

6,960,500

7,030,600

(2

)%

2

%

20,910,500

22,285,500

(6

Kolomela

3,367,800

3,233,600

3,069,700

3,209,700

3,477,800

4

%

(3

)%

9,671,100

10,650,000

(9

Kumba sales volumes

 

 

 

 

 

 

 

 

 

 

Export iron ore

9,670,200

9,755,600

10,130,600

10,723,200

9,736,700

(1

)%

(1

)%

29,556,400

29,242,500

1

Domestic iron ore

483,600

716,300

748,000

868,200

755,600

(32

)%

(36

)%

1,947,900

2,422,900

(20

)%

Minas-Rio production

 

 

 

 

 

 

 

 

 

 

Pellet feed (wet basis)

6,126,100

5,915,500

4,909,700

226,700

 

-

 

4

%

n/a

16,951,300

3,155,200

n/a

Minas-Rio sales volumes

 

 

 

 

 

 

 

 

 

 

Export - pellet feed (wet basis)

5,734,500

6,590,400

4,031,400

 

-

 

-

 

(13

)%

n/a

16,356,300

3,216,800

n/a
                                 

COAL

Coal(1) (000 t)

Metallurgical Coal (Australia)

Export Thermal Coal (Australia)

Export Thermal Coal (South Africa)(2)

Export Thermal Coal (Colombia)(3)

Domestic Thermal Coal

(South Africa)

2,621

2,650

(1

)%

2,624

0

%

7,535

10,400

(28

)%

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

(2)       Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.

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

Metallurgical Coal - Export metallurgical coal production increased by 22% to 6.6 million tonnes due to improvements in wash plant throughput and equipment productivity as well as the timing of longwall moves, with a move at Moranbah in Q3 2018. No significant impact on production is expected from longwall moves in the fourth quarter.

In the third quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 85:15.

Thermal Coal South Africa - Export thermal coal production decreased by 15% to 4.3 million tonnes, with planned decreases in production as certain sections near their end of life.

Thermal Coal Colombia - Attributable export thermal coal production from Cerrejón decreased by 23% to 2.1 million tonnes due to weather related impacts (dust management and rain) and weak market conditions.

 

Full Year Guidance

 

Production guidance for metallurgical coal is unchanged at 22-24 million tonnes.

Production guidance for export thermal coal is tightened to ~26 million tonnes (previously 26-28 million tonnes) due to lower than expected production from Cerrejón.

 

 

Coal, by product (tonnes)(1)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Metallurgical Coal (Australia)

6,568,900

5,843,500

4,156,200

5,647,100

5,382,300

12

%

22

%

16,568,600

16,183,300

2

Hard Coking Coal

5,615,900

4,958,600

3,265,100

4,864,600

4,545,800

13

%

24

%

13,839,600

13,933,800

(1

PCI / SSCC

953,000

884,900

891,100

782,500

836,500

8

%

14

%

2,729,000

2,249,500

21

%

Thermal Coal

9,402,700

9,460,700

9,245,000

10,613,700

10,816,800

-1

%

(13

)%

28,108,300

33,038,400

(15

Export (Australia)

437,900

245,200

338,500

427,600

455,100

79

%

(4

)%

1,021,600

953,700

7

Export (South Africa)(2)

4,288,400

4,575,000

4,417,000

4,537,100

5,054,400

(6

)%

(15

)%

13,280,300

13,821,500

(4

Export (Colombia)(3)

2,055,100

2,016,900

2,199,300

2,356,500

2,657,600

2

%

(23

)%

6,271,300

7,863,400

(20

Domestic (South Africa)

2,621,300

2,623,600

2,290,200

3,292,500

2,649,700

0

%

(1

)%

7,535,100

10,399,800

(28

Total coal production

15,971,600

15,304,200

13,401,200

16,260,800

16,199,100

4

%

(1

)%

44,676,900

49,221,700

(9

)%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Metallurgical Coal (Australia)

6,371,500

5,987,300

3,921,700

5,812,700

5,442,800

6

%

17

%

16,280,500

16,170,200

1

Hard Coking Coal

5,737,800

4,944,300

3,290,600

5,064,200

4,834,100

16

%

19

%

13,972,700

14,122,500

(1

PCI / SSCC

633,700

1,043,000

631,100

748,500

608,700

(39

)%

4

%

2,307,800

2,047,700

13

%

Thermal Coal

12,166,100

12,046,300

12,265,900

13,700,800

11,782,900

1

%

3

%

36,478,500

38,914,800

(6

Export (Australia)

584,600

270,900

451,200

582,200

331,600

116

%

76

%

1,306,800

983,100

33

Export (South Africa)(2)

4,073,300

4,932,400

4,262,800

5,918,700

3,679,600

(17

)%

11

%

13,268,500

12,387,900

7

Export (Colombia)(3)

2,068,600

2,244,800

2,199,600

2,297,200

2,589,100

(8

)%

(20

)%

6,513,000

7,832,200

(17

Domestic (South Africa)

3,175,200

2,016,700

2,402,800

1,947,500

3,305,800

57

%

(4

)%

7,594,700

11,163,300

(32

Third party sales

2,264,400

2,581,500

2,949,500

2,955,200

1,876,800

(12

)%

21

%

7,795,500

6,548,300

19

%

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

(2)    Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.

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

Coal, by operation (tonnes)(1)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Metallurgical Coal (Australia)

6,568,900

5,843,500

4,156,200

5,647,100

5,382,300

12

%

22

%

16,568,600

16,183,300

2

Moranbah North

1,973,100

1,603,200

239,500

2,485,200

1,275,800

23

%

55

%

3,815,800

4,276,800

(11

Grosvenor

1,344,500

1,032,500

1,333,200

356,100

1,239,800

30

%

8

%

3,710,200

3,407,400

9

Capcoal (incl. Grasstree)

1,709,200

1,738,900

1,213,600

1,357,800

1,564,700

(2

)%

9

%

4,661,700

4,284,900

9

Dawson

703,200

774,000

633,300

666,100

478,700

(9

)%

47

%

2,110,500

1,727,300

22

Jellinbah

838,900

694,900

736,600

781,900

823,300

21

%

2

%

2,270,400

2,486,900

(9

Thermal Coal (Australia)

437,900

245,200

338,500

427,600

455,100

79

%

(4

)%

1,021,600

953,700

7

Capcoal

81,300

63,700

64,000

81,000

71,600

28

%

14

%

209,000

203,100

3

Dawson

323,200

145,200

263,300

320,500

357,700

123

%

(10

)%

731,700

665,600

10

Jellinbah

33,400

36,300

11,200

26,100

25,800

(8

)%

29

%

80,900

85,000

(5

)%

Total Australia production

7,006,800

6,088,700

4,494,700

6,074,700

5,837,400

15

%

20

%

17,590,200

17,137,000

3

%

Thermal (South Africa)(2)

 

 

 

 

 

 

 

 

 

 

Goedehoop

1,441,100

1,678,500

1,457,700

1,590,700

1,527,000

(14

)%

(6

)%

4,577,300

3,850,800

19

Greenside

1,237,200

1,186,700

993,300

1,202,300

1,264,300

4

%

(2

)%

3,417,200

3,249,400

5

Zibulo

1,294,100

1,394,600

1,319,600

1,681,500

1,468,700

(7

)%

(12

)%

4,008,300

4,695,300

(15

Khwezela

1,433,400

1,463,300

1,333,800

1,522,000

1,468,800

(2

)%

(2

)%

4,230,500

4,010,000

5

Mafube

450,600

443,900

431,800

464,200

402,700

2

%

12

%

1,326,300

680,500

95

Other(3)

-

 

-

 

-

 

-

 

604,100

n/a

n/a

-

 

1,680,700

n/a

Eskom-tied operations(4)

-

 

-

 

-

 

-

 

-

 

n/a

n/a

-

 

2,825,500

n/a

Isibonelo

1,053,300

1,031,600

1,171,000

1,368,900

968,500

2

%

9

%

3,255,800

3,229,000

1

%

Total South Africa production

6,909,700

7,198,600

6,707,200

7,829,600

7,704,100

(4

)%

(10

)%

20,815,400

24,221,300

(14

Colombia (Cerrejón)(5)

2,055,100

2,016,900

2,199,300

2,356,500

2,657,600

2

%

(23

)%

6,271,300

7,863,400

(20

)%

Total Coal production

15,971,600

15,304,200

13,401,200

16,260,800

16,199,100

4

%

(1

)%

44,676,900

49,221,700

(9

)%
                                       

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

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

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

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

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

NICKEL

Nickel (tonnes)

Nickel

11,300

11,500

(2

)%

0

%
                     

Nickel production decreased by 2% due to the timing of annual planned maintenance of one of the two lines at the plant.

Full Year Guidance

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

Nickel

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Barro Alto

 

 

 

 

 

 

 

 

 

 

Ore mined

1,198,800

1,365,400

888,000

816,500

1,640,400

(12

)%

(27

)%

3,452,300

3,850,700

(10

)%

Ore processed

612,000

519,000

525,400

607,300

620,900

18

%

(1

)%

1,656,500

1,656,800

0

%

Ore grade processed - %Ni

1.66

1.67

1.67

1.74

1.73

(1

)%

(4

)%

1.68

1.69

(1

)%

Production

9,200

7,600

7,700

9,100

9,400

21

%

(2

)%

24,400

24,500

0

%

Codemin

 

 

 

 

 

 

 

 

 

 

Ore mined

1,300

39,000

 

-

 

8,400

-

 

(97

)%

n/a

40,300

-

 

n/a

Ore processed

140,200

148,900

139,900

150,600

139,100

(6

)%

1

%

429,000

430,900

0

%

Ore grade processed - %Ni

1.69

1.62

1.62

1.68

1.69

4

%

0

%

1.63

1.65

(1

)%

Production

2,100

2,300

2,100

2,300

2,100

(9

)%

0

%

6,500

6,400

2

%

Total Nickel production(1)

11,300

9,800

9,800

11,400

11,500

15

%

(2

)%

30,900

30,900

0

%

Sales volumes

10,600

8,800

9,800

12,600

10,400

20

%

2

%

29,200

30,500

(4

)%
                                   

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

MANGANESE

Manganese (000 t)

Manganese ore(1)

Manganese alloys(1)(2)

29

35

(16

)%

41

(29

)%

106

119

(11

)%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

Manganese ore production increased by 3% to 910,400 tonnes, with higher production from South Africa being offset by a later wet season impacting Australian production.

Manganese alloy production decreased by 16% to 29,200 tonnes as a result of an outage of a furnace for all of the third quarter.

Manganese (tonnes)

Q3

Q2

Q1

Q4

Q3

Q3 2019 vs. Q2 2019

Q3 2019 vs. Q3 2018

YTD

YTD

YTD 2019 vs. YTD 2018

2019

2019

2019

2018

2018

2019

2018

Samancor

 

 

 

 

 

 

 

 

 

 

Manganese ore(1)

910,400

826,100

874,000

971,900

887,600

10

%

3

%

2,610,500

2,634,600

(1

)%

Manganese alloys(1)(2)

29,200

41,200

35,200

38,000

34,800

(29

)%

(16

)%

105,600

118,800

(11

)%

Samancor sales volumes

 

 

 

 

 

 

 

 

 

 

Manganese ore

897,800

958,400

843,400

959,800

840,400

(6

)%

7

%

2,699,600

2,574,700

5

%

Manganese alloys

30,400

44,800

30,100

44,000

30,400

(32

)%

0

%

105,300

117,100

(10

)%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure decreased by 8% to $68 million. Exploration expenditure decreased by 19% to $29 million driven by decreased activities in De Beers and PGMs. Evaluation expenditure increased by 3% to $39 million driven by increased spend in De Beers and Metallurgical Coal, offset by lower spend at Los Bronces (Copper).

CORPORATE ACTIVITY AND OTHER ITEMS

Diamond inventory has continued to build during the third quarter due to the subdued market conditions; the elevated inventory levels are not expected to unwind until 2020.

NOTES

•     This Production Report for the quarter ended 30 September 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 14 for information on forward-looking statements.

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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