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Anglo American PLC - Anglo American Q3 Production Report

RNS Number : 8491C
Anglo American PLC
22 October 2020
 

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/8491C_1-2020-10-21.pdf

 

 

NEWS RELEASE

22 October 2020

 

Anglo American plc

Production Report for the third quarter ended 30 September 2020

Mark Cutifani, Chief Executive of Anglo American, said: "Anglo American has continued its strong operational recovery, with a 24%(1) increase in production compared to Q2. We are currently operating at about 95%(2) of our normal capacity - testament to our efforts to protect operational continuity across our business, whilst maintaining comprehensive measures across our operations to safeguard the lives and livelihoods of our workforce and host communities, as part of our holistic response to Covid-19.

"Continued strong performance at the Collahuasi copper operation in Chile helped mitigate our overall year-on-year production decrease to 3%(1) compared to Q3 2019, despite planned maintenance at Minas-Rio iron ore in Brazil and excluding the effect of the suspended Grosvenor metallurgical coal operation in Australia.

"We have also seen encouraging improvement in demand for rough diamonds as we approach the holiday selling season, although there is still some uncertainty in terms of the timing of a sustained recovery."

 

Q3 highlights

•    Copper production increased by 4% as Collahuasi in Chile increased production by 17% due to ongoing strong performance.

•     PGMs production was broadly flat as a strong performance from the open pit Mogalakwena mine, with 12% higher palladium production, largely mitigated lower production from the underground Amandelbult.

•    In Iron ore, the pipeline inspection and maintenance at Minas-Rio in Brazil was completed successfully and on schedule, with operations restarted in early October.

•     Rough diamond sales improved ahead of the key Q4 holiday selling season for diamond jewellery.

 

 

Q3 2020

Q3 2019

% vs. Q3 2019

YTD 2020

YTD 2019

% vs. YTD 2019

Diamonds (Mct)(3)

7.2

7.4

(4)%

18.4

23.0

(20)%

Copper (kt)(4)

166

159

4%

480

479

0%

Platinum (koz)(5)

517

527

(2)%

1,265

1,519

(17)%

Palladium (koz)(5)

352

352

0%

884

1,026

(14)%

Iron ore - Kumba (Mt)

9.5

10.5

(9)%

27.5

30.6

(10)%

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

5.0

6.1

(18)%

17.6

17.0

4%

Metallurgical coal (Mt)

4.8

6.6

(26)%

12.6

16.6

(24)%

Thermal coal (Mt)(7)

5.6

6.3

(11)%

16.2

19.6

(17)%

Nickel (kt)(8)

10.2

11.3

(10)%

31.9

30.9

3%

Manganese ore (kt)

939

910

3%

2,578

2,611

(1)%

(1)   Excludes the impact of the Grosvenor suspension. Including the impact of Grosvenor, copper equivalent production increased 21% compared to Q2 2020 and decreased 7% compared to Q3 2019.

(2)   Excludes the impact of the Grosvenor suspension and the strike at Cerrejón.

(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 purchase of concentrate.

(6)   Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.

(7)   Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing 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)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Botswana

4,827

5,699

(15)

%

1,825

164 

%

12,296

17,367

(29)

%

Namibia

242

426

(43)

%

358

(32)

%

1,111

1,243

(11)

%

South Africa

1,178

535

120 

%

555

112 

%

2,484

1,488

67 

%

Canada

915

779

17 

%

789

16 

%

2,548

2,891

(12)

%

Total carats recovered

7,162

7,439

(4)

%

3,527

103 

%

18,439

22,989

(20)

%

Rough diamond production decreased by 4% to 7.2 million carats driven by planned reductions in production to reflect the lower demand for rough diamonds due to the Covid-19 pandemic. Covid-19 related measures remain in place to safeguard the workforce while maintaining operational continuity.

 

In Botswana, production decreased by 15% to 4.8 million carats due to the planned treatment of lower grade material at both Jwaneng and Orapa, with production targeted at levels to meet lower demand.

 

Namibia production decreased by 43% to 0.2 million carats as the marine fleet suspended production for part of Q3 to reflect lower demand and one vessel was in dock for planned maintenance during the period.

 

South African production increased to 1.2 million carats due to an expected change in ore mix, with more ore sourced from the higher grade material from the last cut of the open pit (rather than from low grade stockpiles) as the mine transitions to the underground.

 

Production in Canada increased by 17% to 0.9 million carats, due to treatment of higher grade material at Gahcho Kué.

 

Demand for rough diamonds showed signs of improvement in the quarter as Covid-19 restrictions gradually eased in cutting and polishing centres and consumer markets ahead of the key end of year holiday season. Rough diamond sales totalled 6.6 million carats (6.5 million carats on a consolidated basis)(2) from three sights compared with 0.3 million carats (0.2 million carats on a consolidated basis)(2) from two(3) sights in Q2 2020 and 7.4 million carats (7.1 million carats on a consolidated basis)(2) from three sights in Q3 2019.

 

Full Year Guidance

Production guidance is unchanged at 25-27 million carats (100% basis), subject to continuous review based on the disruptions related to Covid-19 as well as the timing and scale of the recovery in demand.

 

 

 

(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).

(3)   Sight 3 in Q2 2020 was cancelled due to Covid-19-related restrictions on the movement of people and product.

 

 

 

 

De Beers(1)

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Carats recovered (000 carats)

 

 

 

 

 

 

 

 

 

 

100% basis (unless stated)

 

 

 

 

 

 

 

 

 

 

Jwaneng

1,748

1,138

3,200

3,319

2,584

(32)

%

54 

%

6,086

9,143

(33)

%

Orapa(2)

3,079

687

2,444

2,569

3,115

(1)

%

348 

%

6,210

8,224

(24)

%

Botswana

4,827

1,825

5,644

5,888

5,699

(15)

%

164 

%

12,296

17,367

(29)

%

 

 

 

 

 

 

 

 

 

 

 

Debmarine Namibia

147

305

417

363

320

(54)

%

(52)

%

869

929

(6)

%

Namdeb (land operations)

95

53

94

93

106

(10)

%

79 

%

242

314

(23)

%

Namibia

242

358

511

456

426

(43)

%

(32)

%

1,111

1,243

(11)

%

 

 

 

 

 

 

 

 

 

 

 

Venetia

1,178

555

751

434

535

120 

%

112 

%

2,484

1,488

67 

%

South Africa

1,178

555

751

434

535

120 

%

112 

%

2,484

1,488

67 

%

 

 

 

 

 

 

 

 

 

 

 

Gahcho Kué (51% basis)

915

789

844

1,009

779

17 

%

16 

%

2,548

2,470

%

Victor

 

 

 

-

-

n/a

n/a

-

421

n/a

Canada

915

789

844

1,009

779

17 

%

16 

%

2,548

2,891

(12)

%

Total carats recovered

7,162

3,527

7,750

7,787

7,439

(4)

%

103 

%

18,439

22,989

(20)

%

Sales volumes

 

 

 

 

 

 

 

 

 

 

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

6.6

0.3

8.9

7.0

7.4

(11)

%

2,100 

%

15.8

23.9

(34)

%

Consolidated sales volume (Mct)(3)

6.5

0.2

8.3

6.6

7.1

(8)

%

3,150 

%

15.0

22.6

(34)

%

Number of Sights (sales cycles)

3

2(4)

2

2

3

 

 

7(4)

8

 

                                 

(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).

(4)   Sight 3 in Q2 2020 was cancelled due to Covid-19-related restrictions on the movement of people and product.

COPPER

Copper(1) (tonnes)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Los Bronces

79,400

80,400

(1)

%

80,700

(2)

%

228,800

263,300

(13)

%

Collahuasi (44% share)

75,500

64,500

17 

%

75,700

%

217,600

176,500

23 

%

El Soldado

10,800

14,000

(23)

%

10,400

%

33,100

39,300

(16)

%

Total Copper

165,700

158,900

%

166,800

(1)

%

479,500

479,100

%

(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 increased by 4% to 165,700 tonnes, driven by strong plant performance at Collahuasi.

 

Production from Los Bronces decreased by 1%, to 79,400 tonnes. A 9% increase in throughput, due to increased water availability, was fully offset by lower grades of ore processed (0.73% vs 0.78%). Following recent rain and snow fall, adequate water is available for the remainder of 2020.

 

At Collahuasi, attributable production increased by 17% to 75,500 tonnes due to continued strong plant performance, higher copper recovery (92.0% vs 87.7%) reflecting plant improvement initiatives, and planned higher ore grade (1.27% vs 1.14%).

 

Production from El Soldado decreased by 23% to 10,800 tonnes as a result of planned lower ore grade (0.78% vs 0.92%).

 

The year to date average realised price of 273c/lb includes 123,825 tonnes of copper that at 30 September was provisionally priced at an average price of 302c/lb.

 

Full Year Guidance

Production guidance has been tightened to 630,000-660,000 tonnes (previously 620,000-670,000 tonnes), subject to the extent of further Covid-19 related disruption.

 

 

 

Copper(1)

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Los Bronces mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

8,414,600

9,237,400

10,013,000

17,373,800

15,560,400

(46)

%

(9)

%

27,665,000

48,541,500

(43)

%

Ore processed - Sulphide

11,956,800

9,987,200

7,059,500

7,146,800

10,977,200

%

20 

%

29,003,500

34,861,600

(17)

%

Ore grade processed -

Sulphide (% TCu)(3)

0.73

0.85

0.98

0.99

0.78

(7)

%

(15)

%

0.83

0.80

%

Production - Copper cathode

9,300

9,900

9,900

10,000

10,100

(8)

%

(6)

%

29,100

29,000

%

Production - Copper in concentrate

70,100

70,800

58,800

61,700

70,300

%

(1)

%

199,700

234,300

(15)

%

Total production

79,400

80,700

68,700

71,700

80,400

(1)

%

(2)

%

228,800

263,300

(13)

%

Collahuasi 100% basis

(Anglo American share 44%)

 

 

 

 

 

 

 

 

 

 

Ore mined

16,412,100

18,035,100

19,402,000

22,132,200

25,780,000

(36)

%

(9)

%

53,849,200

65,121,000

(17)

%

Ore processed - Sulphide

14,612,300

14,192,800

14,097,800

14,728,700

14,478,700

%

%

42,902,900

39,404,400

%

Ore grade processed -

Sulphide (% TCu)(3)

1.27

1.31

1.20

1.25

1.14

11 

%

(4)

%

1.26

1.17

%

Production - Copper in concentrate

171,500

172,000

151,000

164,200

146,600

17 

%

%

494,500

401,200

23 

%

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

75,500

75,700

66,500

72,200

64,500

17 

%

%

217,600

176,500

23 

%

El Soldado mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

1,885,100

1,378,100

1,915,300

2,721,400

3,299,900

(43)

%

37 

%

5,178,500

9,406,700

(45)

%

Ore processed - Sulphide

1,788,700

1,771,600

1,458,900

1,854,900

1,911,700

(6)

%

%

5,019,100

5,583,500

(10)

%

Ore grade processed -

Sulphide (% TCu)(3)

0.78

0.76

1.02

1.02

0.92

(16)

%

%

0.84

0.90

(6)

%

Production - Copper in concentrate

10,800

10,400

11,900

14,900

14,000

(23)

%

%

33,100

39,300

(16)

%

Chagres Smelter(2)

 

 

 

 

 

 

 

 

 

 

Ore smelted(5)

26,700

24,300

30,800

30,800

28,800

(7)

%

10 

%

81,800

91,200

(10)

%

Production

26,000

23,700

30,000

29,900

28,000

(7)

%

10 

%

79,700

88,700

(10)

%

Total copper production(6)

165,700

166,800

147,100

158,800

158,900

%

(1)

%

479,500

479,100

%

Total payable copper production

159,200

160,300

141,700

153,100

153,000

%

(1)

%

461,100

461,100

%

Total sales volumes

176,100

154,200

139,600

176,500

160,000

10 

%

14 

%

469,800

467,300

%

Total payable sales volumes

167,900

148,200

134,300

170,100

153,800

%

13 

%

450,400

449,400

%

Third party sales(7)

112,600

130,800

76,300

115,300

91,600

23 

%

(14)

%

319,700

233,800

37 

%

(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)       Copper contained basis.

(6)       Total copper production includes Anglo American's 44% interest in Collahuasi.

(7)       Relates to sales of copper not produced by Anglo American operations.

PLATINUM GROUP METALS (PGMs)

 

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Metal in concentrate production (000 oz)(1)

Platinum

516.5

526.8

(2)

%

307.4

68 

%

1,264.8

1,519.0

(17)

%

Own mined(2)

337.8

351.7

(4)

%

188.7

79 

%

825.9

1,016.4

(19)

%

Purchase of concentrate (POC)(3)

178.7

175.1

%

118.7

51 

%

438.9

502.6

(13)

%

Palladium

352.2

351.8

%

228.4

54 

%

883.8

1,025.5

(14)

%

Own mined(2)

266.8

262.7

%

173.3

54 

%

673.1

774.1

(13)

%

Purchase of concentrate (POC)(3)

85.4

89.0

(4)

%

55.1

55 

%

210.7

251.4

(16)

%

Refined production 000 oz(1)(4)

 

 

 

 

 

 

 

 

Platinum

503.8

578.6

(13)

%

160.6

214 

%

904.7

1,581.2

(43)

%

Palladium

354.1

362.1

(2)

%

147.4

140 

%

698.6

1,083.9

(36)

%

Rhodium

48.9

66.5

(26)

%

30.6

60 

%

126.8

202.6

(37)

%

Tolled material 000 oz(1)

 

 

 

 

 

 

 

 

Platinum

75.7

100.9 

 

(25)

%

58.4 

 

30 

%

212.7 

 

198.8 

 

%

Palladium

35.5

51.3 

 

(31)

%

30.0 

 

18 

%

105.9 

 

100.4 

 

%

(1)   Ounces refer to troy ounces.

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

(3)   Includes 50% of joint venture production, and the purchase of concentrate from third parties.

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

Metal in concentrate production

Platinum production decreased by 2% to 516,500 ounces and palladium production was flat at 352,200 ounces.

 

Own mined platinum production decreased by 4% to 337,800 ounces and palladium production increased by 2% to 266,800 ounces. Production at Mogalakwena increased by 7% for platinum and 12% for palladium, due to higher throughput and improvements in concentrator recovery. Amandelbult platinum production was down 13% and palladium was down 11% due to the continuation of Covid-19 protocols and as Tumela Upper section comes to the end of its life. Unki and Mototolo production were also higher.

 

Purchase of platinum in concentrate increased by 2% to 178,700 ounces and purchase of palladium in concentrate decreased by 4% to 85,400 ounces, driven by changes in mix.

 

Refined production

Following the restart of the ACP Phase B unit in Q2, refined production has ramped up steadily. However, refined production for platinum and palladium was lower than in Q3 2019 by 13% and 2%, respectively, due to increased levels of monitoring and intermittent stoppages to inspect the plant. The stoppages have resulted in a slight increase in work-in-progress inventory between Q2 2020 and Q3 2020. Furthermore, the mix of metals refined was impacted by the strong recovery of mining activities at Mogalakwena, which is palladium-rich. The repairs to the ACP Phase A unit are progressing well and are currently expected to complete towards the end of 2020.

 

Sales volumes decreased by 17% for both platinum and palladium, driven by lower refined production and a rebuild of refined inventory. Due to the slight increase in work-in-progress inventory and the rebuild of refined inventory, sales volumes are expected to be lower than metal-in-concentrate production in H2 2020.

 

The year to date average realised basket price of $4,468/Pt ounce reflects strong palladium and rhodium prices, with the mix of metals reverting towards normalised levels following disruption in the first half of 2020.

 

Full Year Guidance

Production guidance (metal in concentrate) is revised to 1.7-1.8 million ounces of platinum (previously 1.5-1.7 million ounces) and 1.1-1.2 million ounces of palladium (previously 1.0-1.2 million ounces), subject to the extent of any further Covid-19 related disruptions.
 

Platinum

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Produced platinum

(000 oz)(1)

516.5

307.4

440.9

531.7

526.8

(2)

%

68 

%

1,264.8

1,519.0

(17)

%

Own mined

337.8

188.7

299.4

361.9

351.7

(4)

%

79 

%

825.9

1,016.4

(19)

%

Mogalakwena

132.0

117.3

121.9

135.8

123.4

%

13 

%

371.2

381.7

(3)

%

Amandelbult

102.8

25.3

85.5

120.1

118.4

(13)

%

306 

%

213.6

333.5

(36)

%

Unki

27.0

13.9

21.8

23.3

23.7

14 

%

94 

%

62.7

66.1

(5)

%

Mototolo

33.3

9.5

28.3

30.9

31.4 

 

%

251 

%

71.1 

 

81.2 

 

(12)

%

Joint ventures(2)

42.7

22.7

41.9

51.8

54.8

(22)

%

88 

%

107.3

153.9

(30)

%

Purchase of concentrate

178.7

118.7

141.5

169.8

175.1

%

51 

%

438.9

502.6

(13)

%

Joint ventures(2)

42.7

22.7

41.9

51.8

54.8

(22)

%

88 

%

107.3

153.9

(30)

%

Third parties

136.0

96.0

99.6

118.0

120.3

13 

%

42 

%

331.6

348.7

(5)

%

Palladium

 

 

 

 

 

 

 

 

 

 

Produced palladium

(000 oz)(1)

352.2

228.4

303.1

360.4

351.8

%

54 

%

883.8

1,025.5

(14)

%

Own mined

266.8

173.3

232.9

275.0

262.7

%

54 

%

673.1

774.1

(13)

%

Mogalakwena

146.0

128.9

128.7

146.0

130.8

12 

%

13 

%

403.6

411.8

(2)

%

Amandelbult

48.3

11.7

39.1

56.0

54.3

(11)

%

313 

%

99.1

152.9

(35)

%

Unki

23.6

12.1

19.6

20.0

21.3

11 

%

95 

%

55.3

59.2

(7)

%

Mototolo

20.7

5.8

17.2

19.0

19.4 

 

%

257 

%

43.7 

 

49.7 

 

(12)

%

Joint ventures(2)

28.2

14.8

28.4

34.0

36.9

(24)

%

91 

%

71.4

100.5

(29)

%

Purchase of concentrate

85.4

55.1

70.2

85.4

89.0

(4)

%

55 

%

210.7

251.4

(16)

%

Joint ventures(2)

28.2

14.8

28.4

34.0

36.9

(24)

%

91 

%

71.4

100.5

(29)

%

Third parties

57.2

40.3

41.8

51.4

52.1

10 

%

42 

%

139.3

150.9

(8)

%

Refined production

 

 

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)(3)

503.8

160.6

240.3

629.7

578.6

(13)

%

214 

%

904.7

1,581.2

(43)

%

Palladium (000 oz)(1)(3)

354.1

147.4

197.1

396.6

362.1

(2)

%

140 

%

698.6

1,083.9

(36)

%

Rhodium (000 oz)(1)(3)

48.9

30.6

47.3

90.8

66.5

(26)

%

60 

%

126.8

202.6

(37)

%

Gold (000 oz)(1)(3)

7.0

11.8

27.9

32.4

27.9

(75)

%

(41)

%

46.7

73.2

(36)

%

Nickel (tonnes)(3)

5,000

2,000

3,100

6,400

6,800

(26)

%

150 

%

10,100

16,600

(39)

%

Copper (tonnes)(3)

2,800

1,500

3,000

4,100

3,400

(18)

%

87 

%

7,300

10,100

(28)

%

Tolled material

 

 

 

 

 

 

 

 

 

 

Platinum (000 oz)(1)

75.7

58.4

78.6

104.4

100.9

(25)

%

30 

%

212.7 

 

198.8 

 

%

Palladium (000 oz)(1)

35.5

30.0

40.4 

 

54.0 

 

51.3 

 

(31)

%

18 

%

105.9 

 

100.4 

 

%

 

 

 

 

 

 

 

 

 

 

 

Platinum sales volumes

(000 oz)(1)(4)

448.5

195.7

239.9

668.3

537.4

(17)

%

129 

%

884.1

1,546.8

(43)

%

 

 

 

 

 

 

 

 

 

 

 

Palladium sales volumes

(000 oz)(1)(4)

261.7

160.8

222.5

435.8

316.9

(17)

%

63 

%

645.0

1,084.9

(41)

%

 

 

 

 

 

 

 

 

 

 

 

Platinum third party sales volumes (000 oz)(1)(5)

105.0

84.2

62.1

10.6

17.5

500 

%

25 

%

251.3

35.5

608 

%

 

 

 

 

 

 

 

 

 

 

 

Palladium third party sales volumes (000 oz)(1)(5)

214.6

123.1

169.2

42.8

79.7

169 

%

74 

%

506.9

219.4

131 

%

 

 

 

 

 

 

 

 

 

 

 

4E head grade (g/t milled)(6)

3.65

3.44

3.44

3.67

3.65

%

%

3.52

3.60

(2)

%

                                     

(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'.

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

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

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

(6)   4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material.

 

IRON ORE

Iron Ore (000 t)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Kumba

9,532

10,521

(9)

%

8,475

12 

%

27,456

30,582

(10)

%

Minas-Rio(1)

4,994

6,126

(18)

%

6,198

(19)

%

17,616

16,951

%

(1)       Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.

Kumba - Total production decreased by 9% to 9.5 million tonnes with Sishen's production 9% lower at 6.5 million tonnes and Kolomela's 10% lower at 3.0 million tonnes.

 

Production was reduced in response to both the elevated finished stock levels at the end of Q2 2020 due to Covid-related rail and port constraints, and in anticipation of the annual rail and port maintenance scheduled for Q4 2020. Consequently, stock levels were drawn down to 5.4 million tonnes(1) from 6.2 million tonnes(1) as at 30 June 2020. Reduced levels of production supported additional focus on scheduled maintenance and operational improvement.

 

Sales volumes increased by 7% to 10.9 million tonnes(1) driven by a 13% increase in export sales as Transnet's performance returned to pre-Covid-19 levels, with a significant improvement in loading rates at the port.

 

Year to date, Kumba product Fe content averaged 64.3%, while the average lump:fines ratio was 67:33. Consequently, the year to date average realised price of $103/tonne (FOB South Africa) was higher than the 62% Fe benchmark price of $90/tonne (FOB South Africa, adjusted for freight) due to these premiums.

 

Minas-Rio - Production decreased by 18% to 5.0 million tonnes, reflecting an approximately one month planned stoppage to carry out routine internal scanning of the pipeline. The inspection was completed successfully with operations resuming as scheduled at the start of October.

 

The year to date average realised price of $96/tonne (FOB Brazil) was higher than the Metal Bulletin 66 price (FOB Brazil, adjusted for freight and moisture) of $86/tonne, reflecting product quality, including higher (~67%) Fe content.

Full Year Guidance

Kumba production guidance is unchanged at 37-39 million tonnes, subject to the extent of further Covid-19 related disruption.

 

Minas-Rio production guidance is unchanged at 22-24 million tonnes, subject to the extent of further Covid-19 related disruption.  

 

 

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

Iron Ore (tonnes)

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Kumba production

9,531,600

8,474,900

9,449,300

11,806,100

10,521,300

(9)

%

12 

%

27,455,800

30,581,600

%

Lump

6,488,700

5,709,800

6,387,900

7,898,500

6,955,500

(7)

%

%

18,586,400

20,611,500

%

Fines

3,042,900

2,765,100

3,061,400

3,907,600

3,565,800

(15)

%

10 

%

8,869,400

9,970,100

(11)

%

Kumba production by mine

 

 

 

 

 

 

 

 

 

 

Sishen

6,511,500

5,782,200

6,579,600

8,263,900

7,153,500

(9)

%

%

18,873,300

20,910,500

%

Kolomela

3,020,100

2,692,700

2,869,700

3,542,200

3,367,800

(10)

%

12 

%

8,582,500

9,671,100

(11)

%

Kumba sales volumes

10,902,900

8,084,000

10,683,500

10,469,400

10,153,800

%

%

29,670,400

31,504,300

%

Export iron ore(1)

10,902,900

8,084,000

10,331,900

10,237,100

9,670,200

13 

%

%

29,318,800

29,556,400

%

Domestic iron ore

-

-

351,600

232,300

483,600

n/a

n/a

351,600

1,947,900

(82)

%

 

 

 

 

 

 

 

 

 

 

 

Minas-Rio production

 

 

 

 

 

 

 

 

 

 

Pellet feed (wet basis)

4,993,800

6,198,000

6,424,100

6,163,600 

 

6,126,100 

 

(18)

%

(19)

%

17,615,900

16,951,300 

 

%

Minas-Rio sales volumes

 

 

 

 

 

 

 

 

 

 

Export - pellet feed (wet basis)

4,784,600

6,611,600

6,081,200 

 

6,570,700 

 

5,734,500 

 

(17)

%

(28)

%

17,477,400 

 

16,356,300 

 

%

                                     

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

COAL

Coal(1) (000 t)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Metallurgical Coal (Australia)

4,836

6,569

(26)

%

3,977

22 

%

12,640

16,569

(24)

%

Export Thermal Coal (South Africa)(2)

4,595

4,288

%

3,588

28 

%

12,378

13,280

(7)

%

Export Thermal Coal (Colombia)(3)

1,038

2,055

(50)

%

767

35 

%

3,783

6,271

(40)

%

(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 decreased by 26% to 4.8 million tonnes, principally due to the suspension of operations at Grosvenor following the underground gas ignition incident in May 2020. Open cut operations have been scaled back at Dawson and Capcoal in response to Covid-19 reduced demand for lower quality metallurgical coal.

 

The ratio of hard coking coal production to PCI/semi-soft coking coal was 82:18, lower than in Q3 2019 (85:15), due to a lower proportion of product coming from the underground operations.

 

The year to date average realised price for hard coking coal was $114/tonne, which was lower than the benchmark price of $129/tonne due to a lower volume of premium quality hard coking coal produced from Moranbah and Grosvenor.

 

Thermal Coal, South Africa - Export thermal coal production increased by 7% to 4.6 million tonnes, principally driven by the ramp up of the Navigation lifex section at Khwezela.

 

Since August, all mines have been operating at circa 90% production due to the impact of Covid-19 measures to safeguard the workforce. Covid-19 measures in the logistics chain have affected the loading of volumes onto trains resulting in higher stockpiles at operations.

 

Thermal Coal, Colombia - Attributable export thermal coal production decreased by 50% to 1.0 million tonnes as a result of an ongoing strike at Cerrejón, which started in September. This more than offset the ramp up in production earlier in Q3 following the lifting of lockdown restrictions.

 

The year to date weighted average realised price for export thermal coal from South Africa and Colombia was $53/tonne (South Africa was $56/tonne and Colombia was $45/tonne). This was 10% lower than the weighted average quoted FOB price from South Africa and Colombia due to timing differences and quality discounts relative to the industry benchmark.

Full Year Guidance

Production guidance for metallurgical coal is maintained at 16-18 million tonnes.

 

Production guidance for export thermal coal is revised to c.19 million tonnes (previously c.21 million tonnes), owing to the ongoing strike disruption in Colombia, subject to the extent of further Covid-19 related disruption.
 

Coal, by product (tonnes)(1)

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Metallurgical Coal - Australia

4,836,100

3,977,200

3,826,200

6,283,600

6,568,900

(26)

%

22 

%

12,639,500

16,568,600

(24)

%

Hard Coking Coal

3,969,100

3,221,500

3,012,200

5,117,500

5,615,900

(29)

%

23 

%

10,202,800

13,839,600

(26)

%

PCI / SSCC

867,000

755,700

814,000

1,166,100

953,000

(9)

%

15 

%

2,436,700

2,729,000

(11)

%

Thermal Coal

10,162,400

8,761,000

9,083,600

9,730,000

9,402,700

%

16 

%

28,007,000

28,108,300

%

Export - Australia

587,000

468,000

403,200

389,200

437,900

34 

%

25 

%

1,458,200

1,021,600

43 

%

Export - South Africa(2)

4,595,400

3,587,600

4,195,100

4,515,100

4,288,400

%

28 

%

12,378,100

13,280,300

(7)

%

Export - Colombia(3)

1,037,700

767,400

1,977,900

2,314,900

2,055,100

(50)

%

35 

%

3,783,000

6,271,300

(40)

%

Domestic - South Africa

3,942,300

3,938,000

2,507,400

2,510,800

2,621,300

50 

%

%

10,387,700

7,535,100

38 

%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Metallurgical Coal - Australia

4,818,000

3,901,300

3,850,300

6,100,100

6,371,500

(24)

%

23 

%

12,569,600

16,280,500

(23)

%

Hard Coking Coal

4,130,000

3,305,000

2,867,400

5,097,200

5,737,800

(28)

%

25 

%

10,302,400

13,972,700

(26)

%

PCI / SSCC

688,000

596,300

982,900

1,002,900

633,700

%

15 

%

2,267,200

2,307,800

(2)

%

Thermal Coal

11,354,200

11,154,600

11,796,200

12,939,200

12,166,100

(7)

%

%

34,305,000

36,478,500

(6)

%

Export - Australia

500,100

651,700

407,200

500,900

584,600

(14)

%

(23)

%

1,559,000

1,306,800

19 

%

Export - South Africa(2)

4,512,700

3,264,300

3,924,000

4,880,100

4,073,300

11 

%

38 

%

11,701,000

13,268,500

(12)

%

Export - Colombia(3)

993,800

1,142,500

2,028,000

2,260,800

2,068,600

(52)

%

(13)

%

4,164,300

6,513,000

(36)

%

Domestic - South Africa

3,407,700

3,558,700

2,408,400

2,172,700

3,175,200

%

(4)

%

9,374,800

7,594,700

23 

%

Third party sales

1,939,900

2,537,400

3,028,600

3,124,700

2,264,400

(14)

%

(24)

%

7,505,900

7,795,500

(4)

%

(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 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Metallurgical Coal - Australia

4,836,100

3,977,200

3,826,200

6,283,600

6,568,900

(26)

%

22 

%

12,639,500

16,568,600

(24)

%

Moranbah North

2,008,500

761,800

450,800

2,332,600

1,973,100

%

164 

%

3,221,100

3,815,800

(16)

%

Grosvenor

4,500

560,900

540,900

1,011,700

1,344,500

(100)

%

(99)

%

1,106,300

3,710,200

(70)

%

Capcoal (incl. Grasstree)

1,328,800

1,221,900

1,383,300

1,270,300

1,709,200

(22)

%

%

3,934,000

4,661,700

(16)

%

Dawson

588,300

638,400

741,200

842,500

703,200

(16)

%

(8)

%

1,967,900

2,110,500

(7)

%

Jellinbah

906,000

794,200

710,000

826,500

838,900

%

14 

%

2,410,200

2,270,400

%

Thermal Coal - Australia

587,000

468,000

403,200

389,200

437,900

34 

%

25 

%

1,458,200

1,021,600

43 

%

Capcoal

102,800

82,200

114,700

123,200

81,300

26 

%

25 

%

299,700

209,000

43 

%

Dawson

429,700

340,000

263,100

222,900

323,200

33 

%

26 

%

1,032,800

731,700

41 

%

Jellinbah

54,500

45,800

25,400

43,100

33,400

63 

%

19 

%

125,700

80,900

55 

%

Thermal Coal - South Africa(2)

8,537,700

7,525,600

6,702,500

7,025,900

6,909,700

24 

%

13 

%

22,765,800

20,815,400

%

Goedehoop

1,816,600

1,192,500

1,207,400

1,488,800

1,441,100

26 

%

52 

%

4,216,500

4,577,300

(8)

%

Greenside

1,199,000

1,179,100

1,177,900

1,428,700

1,237,200

(3)

%

%

3,556,000

3,417,200

%

Zibulo

1,429,900

1,331,100

1,291,700

1,351,000

1,294,100

10 

%

%

4,052,700

4,008,300

%

Khwezela

1,735,100

1,383,700

1,619,400

1,530,300

1,433,400

21 

%

25 

%

4,738,200

4,230,500

12 

%

Mafube

503,100

339,200

484,600

481,200

450,600

12 

%

48 

%

1,326,900

1,326,300

%

Other(3)

1,854,000

2,100,000

921,500

745,900

1,053,300

76 

%

(12)

%

4,875,500

3,255,800

50 

%

Thermal Coal - Colombia (Cerrejón)(4)

1,037,700

767,400

1,977,900

2,314,900

2,055,100

(50)

%

35 

%

3,783,000

6,271,300

(40)

%

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

(2)  Export and domestic production; Isibonelo and Rietvlei produce exclusively domestic volumes.

(3)  Other includes Isibonelo and Rietvlei.

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

NICKEL

Nickel (tonnes)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Nickel

10,200

11,300

(10)

%

10,800

(6)

%

31,900

30,900

%

                       

Nickel production decreased by 10% due to planned annual maintenance that took place in Q3, whereas the maintenance took place in Q2 in 2019.

 

Full Year Guidance

Production guidance is unchanged at 42,000-44,000 tonnes, subject to the extent of further Covid-19 related disruption.

Nickel

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Barro Alto

 

 

 

 

 

 

 

 

 

 

Ore mined

1,712,200

1,166,200

318,000

623,300

1,198,800

43 

%

47 

%

3,196,400

3,452,300

(7)

%

Ore processed

536,600

625,900

610,100

609,200

612,000

(12)

%

(14)

%

1,772,600

1,656,500

%

Ore grade processed - %Ni

1.72

1.60

1.57

1.73

1.66

%

%

1.63

1.68

(3)

%

Production

8,000

8,800

8,700

9,500

9,200

(13)

%

(9)

%

25,500

24,400

%

Codemin

 

 

 

 

 

 

 

 

 

 

Ore mined

3,200 

 

 

 

 

1,300 

 

146 

%

n/a

3,200 

 

40,300 

 

(92)

%

Ore processed

142,100

145,800

145,800

141,600

140,200

%

(3)

%

433,700

429,000

%

Ore grade processed - %Ni

1.71

1.59

1.62

1.68

1.69

%

%

1.64

1.63

%

Production

2,200

2,000

2,200

2,200

2,100

%

10 

%

6,400

6,500

(2)

%

Total Nickel production(1)

10,200

10,800

10,900

11,700

11,300

(10)

%

(6)

%

31,900

30,900

%

Sales volumes

10,900

9,800

10,600

12,500

10,600

%

11 

%

31,300

29,200

%

                                         

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

MANGANESE

Manganese (000 t)

Q3

Q3

Q3 2020 vs. Q3 2019

Q2

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2019

2020

2020

2019

Manganese ore(1)

939

910

%

796

18 

%

2,578

2,611

(1)

%

Manganese alloys(1)(2)

18

29

(37)

%

23

(21)

%

66

106

(38)

%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

Manganese ore production increased by 3% to 938,700 tonnes, as the impact from the Covid-19 restrictions in South Africa were offset by improved Australian production from stronger mining performance and higher concentrator yield.

 

Manganese alloy production decreased by 37% to 18,300 tonnes, with one plant in South Africa on care and maintenance since the Covid-19 lockdown. In addition, a binding agreement was reached for the sale of the TEMCO alloy smelter in Australia.

Manganese (tonnes)

Q3

Q2

Q1

Q4

Q3

Q3 2020 vs. Q3 2019

Q3 2020 vs. Q2 2020

YTD

YTD

YTD 2020 vs. YTD 2019

2020

2020

2020

2019

2019

2020

2019

Samancor

 

 

 

 

 

 

 

 

 

 

Manganese ore(1)

938,700

796,000

842,900

902,900

910,400

%

18 

%

2,577,600

2,610,500

(1)

%

Manganese alloys(1)(2)

18,300

23,200

24,400

31,600

29,200

(37)

%

(21)

%

65,900

105,600

(38)

%

Samancor sales volumes

 

 

 

 

 

 

 

 

 

 

Manganese ore

976,200

810,700

805,400

911,000

897,800

%

20 

%

2,592,300

2,699,600

(4)

%

Manganese alloys

22,700

23,400

32,800

27,200

30,400

(25)

%

(3)

%

78,900

105,300

(25)

%

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure decreased by 13% to $59 million. Exploration expenditure decreased by 10% to $26 million driven by decreased activity in copper, nickel and diamonds. Evaluation expenditure decreased by 15% to $33 million, driven by overall decreased activity, in particular in diamonds, due to Covid-19.

CORPORATE ACTIVITY AND OTHER ITEMS

Anglo American is taking a cautious and responsible approach to the remobilisation of workers at the Quellaveco copper project in Peru, amid challenging conditions. Peru experienced an increase in Covid-19 infection rates during the quarter, and we have responded with a further strengthening of our robust health protocols to protect our workforce whilst continuing to provide significant support to the local community to help manage the impact and spread of Covid-19. To-date, ~8,500 workers have returned to site and our focus in Q4 is on safely completing the remobilisation of site, with the majority of the ~10,000 workforce expected on-site during the quarter, while productivity rates are expected to recover through the rest of the year, subject to the extent of further Covid-19 related disruption. First production is still expected in 2022 and, based on current expectations for remobilisation and ramp-up of activity, total project capital expenditure (100% basis) is also unchanged at $5.3-$5.5 billion, of which the Group's share is $2.7-$2.8 billion.

REALISED PRICES

 

Q3 2020 YTD

H1 2020

FY 2019

Copper (USc/lb)(1)

273

250

273

PGMs

 

 

 

Platinum (US$/oz)

876

857

861

Palladium (US$/oz)

2,143

2,141

1,518

Rhodium (US$/oz)

9,465

8,985

3,808

Basket price (US$/Pt oz)(2)

4,468

5,520

2,819

Iron Ore - FOB prices

 

 

 

Kumba Export (US$/dmt)(3)

103

93

97

Minas-Rio (US$/wmt)(4)

96

88

79

Metallurgical Coal

 

 

 

HCC (US$/t)(5)

114

123

171

PCI (US$/t)(5)

90

98

110

Thermal Coal

 

 

 

Australia - Export (US$/t)(5)

56

58

70

South Africa - Export (US$/t)(6)

56

61

61

Colombia - Export (US$/t)

45

46

56

Nickel (USc/lb)

531

502

624

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

(2) The Q3 2020 YTD basket price has decreased compared to H1 2020 with the mix of metals reverting towards normalised levels following disruption in the first half of 2020.

(3) Average realised export basket price (FOB Saldanha). For Q3 2020 YTD and FY 2019 the realised prices differ to Kumba's standalone results due to sales to other Group companies.

(4) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).

(5) Weighted average coal sales price achieved at managed operations.

(6) Weighted average export thermal coal price achieved.

PRODUCTION OUTLOOK SUMMARY

2020 production guidance is summarised as follows:

 

2020 production guidance1

Diamonds2

25-27 Mct

Copper3

630-660 kt (previously 620-670 kt)

Platinum - M&C4

1.7-1.8 Moz (previously 1.5-1.7 Moz)

Palladium - M&C4

1.1-1.2 Moz (previously 1.0-1.2 Moz)

Kumba Iron Ore5

37-39 Mt

Minas-Rio Iron Ore6

22-24 Mt

Metallurgical Coal7

16-18 Mt

Thermal Coal8

~19 Mt (previously ~21 Mt)

Nickel9

42-44 kt

(1)   Subject to further Covid-19 related disruption.

(2)   On a 100% basis except for the Gahcho Kué joint venture, which is on an attributable 51% basis.

(3)   Copper business unit only. On a contained-metal basis.

(4)   Produced metal in concentrate ounces. Includes production from joint operations, associates and third-parties. Platinum ~65% own mined production, palladium ~75% own mined production.

(5)   Dry basis. Subject to rail and port performance.

(6)   Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.

(7)   Excludes thermal coal production in Australia.

(8)   Export South Africa and Colombia production.

(9)   Nickel business unit only.

 

NOTES

•     This Production Report for the quarter ended 30 September 2020 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. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

 

 

For further information, please contact:

Media

Investors

UK

James Wyatt-Tilby

[email protected]

Tel: +44 (0)20 7968 8759

 

Marcelo Esquivel

[email protected]

Tel: +44 (0)20 7968 8891

 

Katie Ryall

[email protected]

Tel: +44 (0)20 7968 8935

 

South Africa

Sibusiso Tshabalala

[email protected]

Tel: +27 (0)11 638 2175

UK

Paul Galloway

[email protected]

Tel: +44 (0)20 7968 8718

 

Robert Greenberg

[email protected]

Tel: +44 (0)20 7968 2124

 

Emma Waterworth

[email protected]

Tel: +44 (0)20 7968 8574

 

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

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the steelmaking ingredients of iron ore and metallurgical coal, and nickel - with crop nutrients in development and thermal coal operations planned for divestment - we are committed to being carbon neutral across our operations by 2040. We work together with our business partners and diverse stakeholders to unlock sustainable value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

Forward-looking statements and third-party information:

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 Resource estimates), 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 effects of global pandemics and outbreaks of infectious diseases, sustainability aspirations, 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 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 information.

 

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