4Q17 Production Report

RNS Number : 8584C

Anglo American PLC

25 January 2018

 

 

Anglo American plc

Production Report for the fourth quarter ended 31 December 2017

Anglo American reports a 5% increase in total production on a copper equivalent basis for 2017. This was achieved despite actions taken to remove higher cost volumes in platinum and metallurgical coal, which resulted in a 2% decrease in Q4 2017 copper equivalent production compared to Q4 2016⁽¹⁾.

 

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered another strong operating performance in 2017. The 5% increase for the full year reflects our ongoing focus on productivity and was achieved despite the removal of unprofitable and higher cost platinum and metallurgical coal volumes, consistent with our disciplined, value-led approach to production. The ramp-up of Gahcho Kué and Grosvenor mines made positive contributions to our production profile in 2017, and a strong performance from Sishen resulted in an 8% increase in production from Kumba Iron Ore."

Highlights

·      De Beers production increased by 5% supported by stronger trading conditions, with Gahcho Kué operating at nameplate capacity since Q2 2017.

·      Copper production increased marginally to 148,600 tonnes. Collahuasi achieved record production in the year, driven by continued strong plant performance and higher grades.

·      Platinum production decreased by 4% and palladium by 5% following the decision in Q3 2017 to remove unprofitable ounces by placing Bokoni on care and maintenance. Mogalakwena delivered a record production year driven by further productivity improvements.

·      Kumba Iron Ore production for the full year increased by 8% to 45 million tonnes driven by improved productivity.

·      Metallurgical Coal production for the full year increased marginally to 19.7 million tonnes, with Grosvenor's ramp-up and record productivity levels at underground operations offset by the removal of higher cost volumes at Dawson.

·      Nickel production of 11,400 tonnes was a record quarter.

Production Summary

	Q4 2017	Q4 2016	% vs. Q4 2016	2017	2016	% vs. 2016
Diamonds (Mct)(2)	8.1	7.8	5%	33.5	27.3	22%
Copper (t)(3)	148,600	146,600	1%	579,300	577,100	-
Platinum (produced ounces) (koz)(4)	587	610	(4)%	2,397	2,382	1%
Palladium (produced ounces) (koz)(4)	375	396	(5)%	1,557	1,539	1%
Iron ore - Kumba (Mt)	11.6	11.9	(2)%	45.0	41.5	8%
Iron ore - Minas-Rio (Mt)(5)	4.0	4.9	(19)%	16.8	16.1	4%
Manganese ore (kt)(6)	980	804	22%	3,486	3,133	11%
Export metallurgical coal (Mt)	4.9	5.4	(8)%	19.7	19.4	1%
Export thermal coal (Mt)(7)	6.9	7.0	(2)%	26.5	27.6	(4)%
Nickel (t)(8)	11,400	10,900	5%	43,800	44,500	(2)%

(1)     Copper equivalent production is normalised for the sale of 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 is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(3)     Copper production from the Copper business unit. Copper production shown on a contained metal basis.

(4)     Reflects own mine production and purchases of metal in concentrate.

(5)     Wet basis.

(6)     Saleable production.

(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.

PDF of full announcement available here.

http://www.rns-pdf.londonstockexchange.com/rns/8584C_-2018-1-24.pdf

NOTES

·      This Production Report for the fourth quarter ended 31 December 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 may 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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