TIDMAAL

RNS Number : 0920V

Anglo American PLC

19 July 2018

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Anglo American plc

Production Report for the second quarter ended 30 June 2018

Anglo American reports a 6% increase in total production on a copper equivalent basis in the second quarter of 2018, compared to the same period of 2017, excluding the Minas-Rio stoppage(1) .

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered another strong performance, with Copper and Metallurgical Coal in particular driving a 6% increase in production. This reflects our consistent and relentless focus on driving efficiency and productivity from our existing world class asset base."

Highlights

-- De Beers production increased by 3% to 9.0 million carats reflecting sustained healthy trading conditions.

-- Copper production increased by 12% to 158,000 tonnes despite major planned maintenance at Collahuasi, with strong operational performance as well as higher grades.

-- Platinum and palladium production was broadly unchanged despite Bokoni having been placed on care and maintenance in Q3 2017. Platinum guidance increased to 2.4-2.45 million ounces following strong operational performance.

-- Kumba iron ore production increased by 2% to 11.6 million tonnes, driven by good performance at Kolomela. Guidance marginally decreased to 43-44 million tonnes to align production to rail availability.

-- Metallurgical coal production increased by 33% to 5.3 million tonnes driven by strong performance at Moranbah and Grosvenor.

-- Thermal coal export production decreased by 1% to 7.2 million tonnes due to challenging geology. Guidance revised to 28-30 million tonnes.

   --      Minas-Rio iron ore production in the quarter was immaterial as operations remain suspended. 

Production Summary

 
                        Q2 2018   Q2 2017  % vs. Q2   H1 2018  H1 2017  % vs. H1 
                                             2017                         2017 
Diamonds (Mct)(2)         9.0       8.7       3%       17.5     16.1       8% 
                       --------  --------  --------  --------  -------  -------- 
Copper (kt)(3)            158       141      12%        313      283      10% 
                       --------  --------  --------  --------  -------  -------- 
Platinum (koz)(4)         620       617       -        1,233    1,189      4% 
                       --------  --------  --------  --------  -------  -------- 
Palladium (koz)(4)        406       402       1%        813      775       5% 
                       --------  --------  --------  --------  -------  -------- 
Iron ore - Kumba 
 (Mt)                    11.6      11.4       2%       22.4     21.9       3% 
                       --------  --------  --------  --------  -------  -------- 
Iron ore - Minas-Rio 
 (Mt)(5)                  0.1       4.3       nm        3.2      8.7     (64)% 
                       --------  --------  --------  --------  -------  -------- 
Metallurgical coal 
 (Mt)                     5.3       4.0      33%       10.8      9.2      17% 
                       --------  --------  --------  --------  -------  -------- 
Thermal coal (Mt)(6)      7.2       7.3      (1)%      14.0     14.8      (6)% 
                       --------  --------  --------  --------  -------  -------- 
Nickel (kt)(7)           10.8      11.3      (4)%      19.4     21.2      (8)% 
                       --------  --------  --------  --------  -------  -------- 
Manganese ore (kt)        866       843       3%       1,747    1,666      5% 
                       --------  --------  --------  --------  -------  -------- 
 

(1) Copper equivalent production is normalised for Bokoni being placed on care and maintenance in Q3 2017 and the Minas-Rio production stoppage in 2018. Including the Minas-Rio stoppage, production is up 1% compared to Q2 2017.

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

(3) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum business unit).

   (4)     Produced ounces. Reflects own mine production and purchases of metal in concentrate. 
   (5)     Wet basis. 
   (6)     Reflects export production from South Africa and Colombia. 

(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum business unit).

DE BEERS

 
De Beers(1)                            Q2     Q2    Q2 2018    Q1 2018   Q2 2018 vs.   H1 2018  H1 2017  H1 2018 
                                       2018   2017     vs.                 Q1 2018                          vs. 
                                                     Q2 2017                                              H1 2017 
                                      -----  -----  --------  --------  ------------  --------  ------- 
Botswana (Debswana)       000 carats  6,279  5,933        6%     5,808            8%    12,087   11,124        9% 
Namibia 
 (Namdeb Holdings)        000 carats    515    391       32%       528          (2)%     1,044      863       21% 
South Africa (DBCM)       000 carats  1,018  1,405     (28)%     1,093          (7)%     2,111    2,511     (16)% 
Canada                    000 carats  1,185  1,013       17%     1,069           11%     2,253    1,644       37% 
Total carats recovered    000 carats  8,997  8,742        3%     8,498            6%    17,495   16,142        8% 
-----------------------  -----------  -----  -----  --------  --------  ------------  --------  -------  -------- 
 

Rough diamond production increased by 3% to 9.0 million carats, reflecting production increases to meet stronger demand as well as the contribution from the ramp-up at Gahcho Kué.

Botswana (Debswana) production increased by 6% to 6.3 million carats in response to stronger trading conditions. Jwaneng production increased by 4% to 3.0 million carats due to an increase in tonnes mined and treated. Similarly at Orapa(2) , production increased by 8% to 3.3 million carats due to the ramp up of additional processing capacity in response to stronger trading conditions.

Namibia (Namdeb Holdings) production increased by 32% to 0.5 million carats driven by access to consistently higher grades at the land operations and technology-led optimisation of the marine drill fleet.

South Africa (DBCM) production decreased by 28% to 1.0 million carats, primarily owing to a period of suspended production at Venetia following a fatal incident in March.

Canada production increased by 17% to 1.2 million carats due to the completion of the ramp-up at Gahcho Kué.

Rough sales volumes were 10.0 million carats (9.4 million carats on a consolidated basis(3) ) from three sales cycles in Q2 2018, compared with 5.9 million carats (5.4 million carats on a consolidated basis(3) ) from two sales cycles in Q2 2017. In addition to the different number of sales cycles over the period, sales volumes benefited from positive sentiment in the midstream following growth in consumer demand for diamond jewellery in late 2017, and a continuing positive outlook.

The H1 2018 average realised rough diamond price increased by 4% to $162/carat (H1 2017: $156/carat) due to a 1.6% increase in the average rough price index and an improvement in the sales mix, driven by the substantial volumes of lower value goods sold in H1 2017, following the Indian demonetisation programme in late 2016. Excluding this impact, the average value of the production mix was lower in H1 2018 as a higher proportion of lower value carats was delivered from Orapa and Gahcho Kué.

Full Year Guidance

Full year production guidance(1) remains unchanged at 34-36 million carats, subject to trading conditions.

(1) De Beers 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 volume excludes De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). Q2 2017 includes pre-commercial production sales volumes from Gahcho Kué.

 
De Beers(1)             Q2 2018  Q1 2018  Q4 2017  Q3 2017  Q2 2017    Q2    Q2 2018      H1       H1     H1 2018 
                                                                       2018     vs.      2018      2017      vs. 
                                                                       vs.    Q2 2017                      H1 2017 
                                                                        Q1 
                                                                       2018 
                        -------  -------  -------  -------  -------  ------  --------  -------  -------- 
Carats recovered 
 (000 carats) 
100% basis (unless 
 otherwise stated) 
  Jwaneng                 3,025    2,984    2,512    3,477    2,913      1%        4%    6,009     5,868        2% 
  Orapa(2)                3,254    2,824    2,992    2,579    3,020     15%        8%    6,078     5,256       16% 
  Botswana (Debswana)     6,279    5,808    5,504    6,056    5,933      8%        6%   12,087    11,124        9% 
 
  Debmarine Namibia         349      365      328      353      319    (4)%        9%      714       697        2% 
  Namdeb (land 
   operations)              166      163      160      101       72      2%      131%      330       166       99% 
  Namibia (Namdeb 
   Holdings)                515      528      488      454      391    (2)%       32%    1,044       863       21% 
 
  Venetia                   922    1,008    1,023    1,401    1,239    (9)%     (26)%    1,931     2,178     (11)% 
  Voorspoed                  96       85      126      147      166     13%     (42)%      180       333     (46)% 
  South Africa 
   (DBCM)                 1,018    1,093    1,149    1,548    1,405    (7)%     (28)%    2,111     2,511     (16)% 
 
  Gahcho Kué 
   (51% basis)              985      838      830      930      831     18%       19%    1,822     1,273       43% 
  Victor                    200      231      163      190      182   (13)%       10%      431       371       16% 
  Canada (DBCi)           1,185    1,069      993    1,120    1,013     11%       17%    2,253     1,644       37% 
----------------------  -------  -------  -------  -------  -------  ------ 
Total carats 
 recovered                8,997    8,498    8,134    9,178    8,742      6%        3%   17,495    16,142        8% 
----------------------  -------  -------  -------  -------  -------  ------ 
Sales volumes 
----------------------  -------  -------  -------  -------  -------  ------ 
Total sales 
 volume (100%) 
 (Mct)(3)                  10.0      8.8      8.2      6.9      5.9     14%       69%     18.8      20.0      (6)% 
----------------------  -------  -------  -------  -------  -------  ------ 
Consolidated 
 sales volume 
 (Mct)(3)                   9.4      8.4      7.5      6.5      5.4     12%       74%     17.8      19.1      (7)% 
----------------------  -------  -------  -------  -------  -------  ------  -------- 
Number of Sights 
 (sales cycles)               3        2        3        2        2                          5         5 
----------------------  -------  -------  -------  -------  -------  ------  --------  -------  -------- 
 

(1) De Beers 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' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué.

COPPER

 
    Copper(1)        Q2       Q2     Q2 2018    Q1 2018   Q2 2018 vs.  H1 2018   H1 2017  H1 2018 
                     2018     2017      vs.                 Q1 2018                          vs. 
                                      Q2 2017                                              H1 2017 
                   -------  -------  --------  --------  ------------  -------  -------- 
Los Bronces     t   89,700   79,000       14%    85,000            6%  174,700   154,800       13% 
Collahuasi 
 (44% share)    t   54,700   51,000        7%    60,600         (10)%  115,300   108,700        6% 
El Soldado      t   13,600   10,800       26%     9,300           46%   22,900    19,900       15% 
Total Copper    t  158,000  140,800       12%   154,900            2%  312,900   283,400       10% 
-------------      -------  -------  --------  --------  ------------  -------  --------  -------- 
 
   (1)     Copper production shown on a contained metal basis. 

Production from Los Bronces increased by 14% to 89,700 tonnes, driven by a combination of strong mine and plant performance, as well as an increase in ore grade (0.76% vs. 0.70%).

At Collahuasi, attributable production increased by 7% to 54,700 tonnes due to planned higher grades and strong plant performance, offset partially by planned major maintenance. Production decreased compared with Q1 2018 owing to the impact of the planned major maintenance which was successfully completed on 8 July.

El Soldado production increased by 26% to 13,600 tonnes due to the temporary mine stoppage in 2017.

Sales volumes in H1 2018 were 306,000 tonnes, an increase of 18%, reflecting the strong production performance in the period. At the end of H1 2018, Anglo American had 120,300 tonnes of copper provisionally priced at 301 c/lb.

Full Year Guidance

Full year production guidance remains unchanged at 630,000 - 660,000 tonnes.

 
   Copper(1)       Q2 2018     Q1 2018     Q4 2017      Q3 2017      Q2 2017      Q2     Q2     H1 2018     H1 2017     H1 
                                                                                 2018   2018                           2018 
                                                                                  vs.    vs.                            vs. 
                                                                                  Q1     Q2                             H1 
                                                                                 2018   2017                           2017 
                  ----------  ----------  ----------  -----------  -----------  ------  -----  ----------  ---------- 
Collahuasi 100% 
basis 
(Anglo American 
share 44%) 
Ore mined         11,454,400  11,859,300  17,478,300   18,467,800   14,984,100    (3)%  (24)%  23,313,700  28,787,400  (19)% 
Ore processed - 
 Sulphide         10,605,100  12,894,200  13,658,400   13,084,900   10,807,100   (18)%   (2)%  23,499,300  23,143,500     2% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu)(2)                1.34        1.24        1.28         1.24         1.27      8%     5%        1.29        1.25     3% 
Production -               -           -           -            -            -       -      -           -         100     nm 
Copper cathode 
Production - 
 Copper in 
 concentrate         124,500     137,600     144,400      132,600      115,900   (10)%     7%     262,100     246,900     6% 
Total copper 
 production for 
 Collahuasi          124,500     137,600     144,400      132,600      115,900   (10)%     7%     262,100     247,000     6% 
Anglo American's 
 share of copper 
 production for 
 Collahuasi(3)        54,700      60,600      63,500       58,300       51,000   (10)%     7%     115,300     108,700     6% 
----------------  ----------  ----------  ----------  -----------  -----------  ------  -----  ----------  ----------  ----- 
Los Bronces(4)        89,700      85,000      75,400       78,100       79,000      6%    14%     174,700     154,800    13% 
Ore mined         17,837,300  15,675,300  11,553,900   12,707,100   11,630,200     14%    53%  33,512,600  25,078,600    34% 
Ore processed - 
 Sulphide         12,346,700  12,477,100  10,610,600   11,675,700   11,876,300    (1)%     4%  24,823,800  23,753,700     5% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu)                   0.76        0.71        0.76         0.69         0.70      7%     8%        0.73        0.69     6% 
Production - 
 Copper cathode       10,000       8,500       9,800        9,800        9,800     18%     3%      18,500      18,700   (1)% 
Production - 
 Copper in 
 concentrate          79,700      76,600      65,600       68,300       69,200      4%    15%     156,200     136,100    15% 
El Soldado(4)         13,600       9,300       9,700       10,900       10,800     46%    26%      22,900      19,900    15% 
Ore mined          2,905,800   2,112,500   1,698,500    1,462,200    1,272,200     38%   128%   5,018,300   2,177,700   130% 
Ore processed - 
 Sulphide          1,825,000   1,785,600   1,846,600    1,851,700    1,899,200      2%   (4)%   3,610,600   3,696,800   (2)% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu)                   0.90        0.67        0.65         0.73         0.72     36%    25%        0.79        0.69    14% 
Production - 
 Copper in 
 concentrate          13,600       9,300       9,700       10,900       10,800     46%    26%      22,900      19,900    15% 
Chagres 
Smelter(4) 
Ore smelted           39,300      34,700      35,600       35,400       31,500     13%    25%      74,000      62,800    18% 
Production            38,400      33,800      34,700       34,400       30,600     14%    25%      72,200      60,900    19% 
----------------  ----------  ----------  ----------  -----------  -----------  ------  -----  ----------  ----------  ----- 
Total copper 
 production(5)       158,000     154,900     148,600      147,300      140,800      2%    12%     312,900     283,400    10% 
Total payable 
 copper 
 production          152,600     149,100     143,100      141,900      135,800      2%    12%     301,700     273,300    10% 
----------------  ----------  ----------  ----------  -----------  -----------  ------  -----  ----------  ----------  ----- 
Total sales 
 volumes             174,400     131,600     156,400      163,900      144,100     33%    21%     306,000     259,400    18% 
Total payable 
 sales volumes       168,400     126,700     150,600      158,000      138,900     33%    21%     295,100     250,100    18% 
Third party 
 sales(6)             40,700      30,800      40,500       33,700       27,400     32%    49%      71,500      37,200    92% 
----------------  ----------  ----------  ----------  -----------  -----------  ------  -----  ----------  ----------  ----- 
 
   (1)     Excludes Anglo American Platinum's copper production. Units shown are tonnes unless stated. 
   (2)     TCu = total copper. 
   (3)     Anglo American's share of Collahuasi production is 44%. 

(4) 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.

   (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

 
                                         Q2     Q2    Q2 2018   Q1 2018   Q2 2018 vs.   H1 2018   H1 2017  H1 2018 
                                         2018   2017     vs.                Q1 2018                           vs. 
 Platinum                                              Q2 2017                                              H1 2017 
Produced M&C(1) ounces        000 oz    619.6  617.1         -    613.8            1%   1,233.4   1,189.1        4% 
 Own mined(2)                 000 oz    340.2  346.1      (2)%    343.0          (1)%     683.2     668.8        2% 
 Purchase of concentrate(3)   000 oz    279.4  271.0        3%    270.8            3%     550.2     520.3        6% 
----------------------------  -------  ------  -----  --------  -------  ------------  --------  --------  -------- 
Palladium 
Produced M&C(1) ounces        000 oz    406.0  402.2        1%    407.4          (0)%     813.2     774.9        5% 
 Own mined(2)                 000 oz    260.8  255.1        2%    267.7          (3)%     528.3     494.4        7% 
 Purchase of concentrate(3)   000 oz    145.2  147.1      (1)%    139.7            4%     284.9     280.5        2% 
----------------------------  -------  ------  -----  --------  -------  ------------  --------  --------  -------- 
Refined production 
----------------------------  -------  ------  -----  --------  -------  ------------  --------  --------  -------- 
   Platinum                   000 oz    572.7  528.7        8%    502.6           14%   1,075.3   1,105.6      (3)% 
   Palladium                  000 oz    366.7  373.1      (2)%    319.8           15%     686.5     726.5      (6)% 
   Rhodium                    000 oz     73.8   82.8     (11)%     62.5           18%     136.3     156.4     (13)% 
   Gold                       000 oz     27.3   29.3      (7)%     22.9           19%      50.2      54.0      (7)% 
   Nickel                        t      5,700  6,000      (5)%    5,100           12%    10,800    11,200      (4)% 
   Copper                        t      4,000  3,500       14%    3,200           25%     7,200     6,700        7% 
----------------------------  -------  ------  -----  --------  -------  ------------  --------  --------  -------- 
 
   (1)     Mined and purchase of concentrate 
   (2)     Includes managed operations and 50% of joint venture production. 

(3) Purchase of concentrate includes 50% of joint venture production, and the purchase of concentrate from associates (Bokoni and BRPM) and third parties.

Platinum and palladium production increased marginally to 619,600 ounces and 406,000 ounces respectively, due to improved operational performances across the portfolio, offset by the placing of unprofitable production from Bokoni on care and maintenance in Q3 2017.

Own mined production

Own mined platinum production decreased by 2% to 340,200 ounces and palladium production increased by 2% to 260,800 ounces, with strong operational performance across the portfolio offset by the sale of Union mine. Excluding Union, own mined platinum production increased by 11% and palladium production increased by 10%.

Mogalakwena platinum production increased by 17% to 133,400 ounces and palladium production increased by 14% to 145,100 ounces, driven by higher grade, an increase in concentrator throughput and higher recoveries.

Amandelbult platinum production increased by 7% to 116,300 ounces and palladium production increased by 5% to 52,200 ounces, driven by continued operational improvement that was supported by increased development at Dishaba as mining activities transition to this section.

Unki platinum production increased by 7% to 20,900 ounces and palladium production increased by 11% to 18,400 ounces due to increased concentrator throughput and recoveries.

Union mine was sold to a subsidiary of Siyanda Resources on 1 February 2018, after which Union production was purchased as concentrate.

Joint venture platinum production (Mototolo, Modikwa and Kroondal) increased by 8% to 139,300 ounces (of which 69,600 ounces is own mined production and 69,600 ounces is purchased concentrate). Palladium production increased by 6% to 90,200 ounces (of which 45,100 ounces is own mined production and 45,100 ounces is purchased concentrate). This was driven by a strong production performance across the portfolio, supplemented by continued additional processing of ore stockpiles built up at Mototolo following the temporary closure of the concentrator in Q3 2017.

Purchase of concentrate

Purchase of concentrate from joint ventures increased by 8% for platinum and 6% for palladium, in line with the increased production as outlined above.

Purchase of concentrate from associates decreased by 25% for platinum and 39% for palladium due to the removal of unprofitable ounces from Bokoni, which was placed onto care and maintenance in Q3 2017.

Purchase of concentrate from third parties increased by 16% for platinum and 15% for palladium due to concentrate purchased from Union mine following its sale.

Refined production and sales volumes

Refined platinum production increased by 8% to 572,700 ounces, despite a planned smelter rebuild at Mortimer smelter in Q2 2018. Prior period refined production was adversely affected by the planned Waterval Number 2 smelter rebuild, as well as the high-pressure water leak at the converter plant.

Refined palladium production decreased by 2% to 366,700 ounces owing to a stock count loss that impacted palladium as well as rhodium.

Platinum sales volumes (excluding refined metal purchased from third parties) increased by 6% to 636,400 ounces while palladium sales volumes increased by 23% to 405,300 ounces as refined production was supplemented by a draw down in refined inventory. Refined inventory is expected to return to normalised levels in H2 2018.

Full Year Guidance

Full year platinum production guidance has been revised to 2.4-2.45 million ounces (previously 2.3-2.4 million ounces) due to strong operational performance.

Full year palladium production remains unchanged at 1.5-1.6 million ounces.

 
 Platinum              Q2 2018  Q1 2018  Q4 2017  Q3 2017   Q2 2017   Q2 2018   Q2 2018    H1 2018   H1 2017  H1 2018 
                                                                        vs.        vs.                           vs. 
                                                                      Q1 2018    Q2 2017                       H1 2017 
Produced platinum 
 (000 troy oz)           619.6    613.8    587.0    621.4     617.1         1%         -   1,233.4   1,189.1        4% 
Own mined                340.2    343.0    349.8    357.7     346.1       (1)%      (2)%     683.2     668.8        2% 
 Mogalakwena             133.4    139.4    121.7    116.3     113.9       (4)%       17%     272.9     225.8       21% 
 Amandelbult             116.3    103.9    114.8    119.5     108.6        12%        7%     220.2     203.7        8% 
 Unki                     20.9     20.6     16.4     19.9      19.5         1%        7%      41.4      38.4        8% 
 Joint ventures(1)        69.6     67.5     59.8     62.2      64.3         3%        8%     137.1     123.3       11% 
 Union                     0.0     11.6     37.1     39.9      39.8         nm        nm      11.6      77.5        nm 
Purchase of 
 concentrate             279.4    270.8    237.2    263.7     271.0         3%        3%     550.2     520.3        6% 
 Joint ventures(1)        69.6     67.5     59.8     62.2      64.3         3%        8%     137.1     123.3       11% 
 Associates(2)            54.3     52.3     54.8     73.5      72.5         4%     (25)%     106.5     137.2     (22)% 
 Third parties           155.5    151.0    122.6    128.0     134.2         3%       16%     306.5     259.8       18% 
---------------------  -------  -------  -------  -------  --------  ---------  --------  --------  --------  -------- 
 Palladium 
---------------------  -------  -------  -------  -------  --------  ---------  --------  --------  --------  -------- 
Produced palladium 
 (000 troy oz)           406.0    407.4    374.9    407.5     402.2       (0)%        1%     813.2     774.9        5% 
 Own mined               260.8    267.7    251.5    262.7     255.1       (3)%        2%     528.3     494.4        7% 
 Mogalakwena             145.1    150.5    127.8    129.9     127.8       (4)%       14%     295.5     251.2       18% 
 Amandelbult              52.2     50.7     53.7     55.1      49.9         3%        5%     102.9      93.6       10% 
 Unki                     18.4     17.8     14.2     17.2      16.6         3%       11%      36.2      33.0       10% 
 Joint ventures(1)        45.1     43.5     38.7     42.1      42.5         4%        6%      88.5      80.7       10% 
 Union                     0.0      5.2     17.1     18.4      18.3         nm        nm       5.2      35.9        nm 
 Purchase of 
  concentrate            145.2    139.7    123.4    144.8     147.1         4%      (1)%     284.9     280.4        2% 
 Joint ventures(1)        45.1     43.5     38.7     42.1      42.5         4%        6%      88.5      80.7       10% 
 Associates(2)            22.0     21.7     22.1     36.3      36.4         1%     (39)%      43.8      69.4     (37)% 
 Third parties            78.1     74.5     62.6     66.4      68.1         5%       15%     152.6     130.3       17% 
---------------------  -------  -------  -------  -------  --------  ---------  --------  --------  --------  -------- 
Refined production 
---------------------  -------  -------  -------  -------  --------  ---------  --------  --------  --------  -------- 
 Platinum (000 troy 
  oz)                    572.7    502.6    722.2    684.1     528.7        14%        8%   1,075.3   1,105.6      (3)% 
 Palladium (000 troy 
  oz)                    366.7    319.8    491.4    450.6     373.1        15%      (2)%     686.5     726.5      (6)% 
 Rhodium (000 troy 
  oz)                     73.8     62.5     87.4     79.4      82.8        18%     (11)%     136.3     156.4     (13)% 
 Gold (000 troy oz)       27.3     22.9     30.3     31.1      29.3        19%      (7)%      50.2      54.0      (7)% 
 Nickel (tonnes)         5,700    5,100    7,800    7,000     6,000        12%      (5)%    10,800    11,200      (4)% 
 Copper (tonnes)         4,000    3,200    4,700    4,300     3,500        25%       14%     7,200     6,700        7% 
 4E Head grade 
  (g/tonne milled)(3)     3.60     3.45     3.53     3.44      3.41         4%        6%      3.52      3.44        2% 
 
Platinum sales 
 volumes 
 (000 troy oz)(4)        636.4    480.8    721.7    663.6     600.5        32%        6%   1,117.1   1,119.3         - 
 
Palladium sales 
 volumes 
 (000 troy oz)(4)        405.3    328.2    473.5    462.0     330.3        23%       23%     733.5     636.2       15% 
 
Platinum third party 
 sales volumes (000 
 troy oz)(5)              45.8     19.8        -        -         -         nm        nm      65.6         -        nm 
 
Palladium third party 
 sales volumes (000 
 troy oz)(5)              45.0      8.0        -        -         -         nm        nm      53.0         -        nm 
---------------------  -------  -------  -------  -------  --------  ---------  --------  --------  --------  -------- 
 

(1) The joint venture operations are Mototolo, 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'.

(2) Associates are Platinum's 33% interest in BRPM and, also in 2017, its 49% interest in Bokoni, which was placed on care and maintenance in Q3 2017.

   (3)     4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold. 

(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. 

IRON ORE

 
      Iron Ore          Q2      Q2    Q2 2018    Q1 2018   Q2 2018 vs.   H1 2018  H1 2017  H1 2018 
                       2018    2017      vs.                 Q1 2018                          vs. 
                                       Q2 2017                                              H1 2017 
                      ------  ------  --------  --------  ------------  --------  ------- 
Kumba          000 t  11,572  11,382        2%    10,855            7%    22,427   21,854        3% 
Minas-Rio(1)   000 t     106   4,324        nm     3,049            nm     3,155    8,666     (64)% 
-------------  -----  ------  ------  --------  --------  ------------  --------  -------  -------- 
 
   (1)     Wet basis. 

Kumba - Kumba a solid operational performance, increasing iron ore production by 2% to 11.6 million tonnes, largely driven by strong performance at Kolomela.

Sishen's production was broadly flat at 7.9 million tonnes, with improved DMS plant performance. Waste stripping increased by 4% to 44.4 million tonnes as a result of continued improvements in efficiencies.

Kolomela's production increased by 4% to 3.6 million tonnes, supported by the full ramp-up of the modular plant. Waste stripping decreased by 15% to 13.1 million tonnes primarily due to the impact of high rainfall.

Export sales improved marginally to 9.6 million tonnes (Q2 2017: 9.4 million tonnes). Kumba is working closely with its rail provider, Transnet, to secure delivery of its contracted rail volumes and to reduce the risk of further derailments. As a result of these rail constraints, total finished product stock increased from 4.3 million tonnes at 31 December 2017 to 6.2 million tonnes at 30 June 2018, above optimal levels.

Minas-Rio - Production decreased to 0.1 million tonnes (Q2 2017: 4.3 million tonnes), as a result of the suspension of operations from March 2018, following two leaks in the iron ore slurry pipeline.

The detailed pipeline inspection work is on track. A 4km section of the pipeline, where the leaks occurred will be replaced as a precautionary measure and is expected to be completed in Q4 2018, followed by the restart of the operation, subject to required clearance from authorities. There is no change to the earnings impact of the pipeline incident from the guidance provided in April, with a 2018 loss of $300-$400 million in EBITDA.

Full Year Guidance

Full year production guidance for Kumba has been revised marginally to 43-44 million tonnes (previously 44-45 million tonnes) to align production rates to rail availability. Waste guidance for 2018 remains unchanged at 170-180 million tonnes for Sishen and 55-57 million tonnes for Kolomela.

Full year production guidance for Minas-Rio remains at 3 million tonnes reflecting production delivered to date in 2018.

 
Iron Ore        Q2 2018     Q1 2018     Q4 2017     Q3 2017     Q2 2017      Q2     Q2      H1 2018      H1 2017     H1 
(tonnes)                                                                    2018   2018                             2018 
                                                                             vs.    vs.                              vs. 
                                                                             Q1     Q2                               H1 
                                                                            2018   2017                             2017 
               ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  ----------- 
Kumba 
 production    11,572,000  10,855,100  11,642,600  11,485,700  11,381,600      7%     2%   22,427,000   21,854,200     3% 
 Lump           7,889,600   7,243,500   7,719,100   7,609,200   7,504,200      9%     5%   15,133,100   14,483,000     4% 
 Fines          3,682,400   3,611,600   3,923,500   3,876,500   3,877,400      2%   (5)%    7,293,900    7,371,200   (1)% 
-------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Kumba 
production by 
mine: 
 Sishen         7,930,300   7,324,600   7,782,300   7,786,100   7,871,900      8%     1%   15,254,900   15,550,800   (2)% 
 Kolomela       3,641,700   3,530,500   3,860,300   3,699,600   3,509,700      3%     4%    7,172,100    6,303,400    14% 
Kumba sales 
volumes 
 Export iron 
  ore           9,560,100   9,945,700  11,354,800  10,783,200   9,423,600    (4)%     1%   19,505,800   19,476,600      - 
 Domestic 
  iron ore        781,900     885,400     875,700     644,100     924,600   (12)%  (15)%    1,667,300    1,757,300   (5)% 
-------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Minas-Rio 
production 
 Pellet feed 
  (wet basis)     105,800   3,049,400   3,949,900   4,171,500   4,324,100      nm     nm    3,155,200    8,665,900  (64)% 
-------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Minas-Rio 
sales volumes 
 Export - 
  pellet feed 
  (wet basis)     320,800   2,896,100   4,140,700   3,739,800   4,371,000      nm     nm    3,216,800    8,627,500  (63)% 
-------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
 

COAL

 
                 Coal                     Q2     Q2    Q2 2018    Q1 2018   Q2 2018 vs.   H1 2018  H1 2017  H1 2018 
                                          2018   2017     vs.                 Q1 2018                          vs. 
                                                        Q2 2017                                              H1 2017 
                                         -----  -----  --------  --------  ------------  --------  ------- 
Metallurgical Coal (Australia)    000 t  5,262  3,964       33%     5,539          (5)%    10,801    9,206       17% 
Export Thermal Coal (Australia)   000 t    290    305      (5)%       209           39%       499      784     (36)% 
Export Thermal Coal 
 (South Africa)(1)                000 t  4,440  4,841      (8)%     4,328            3%     8,767    9,593      (9)% 
Export Thermal Coal (Colombia)    000 t  2,762  2,450       13%     2,444           13%     5,206    5,231         - 
Domestic Thermal Coal 
 (South Africa)                   000 t  2,780  8,187     (66)%     4,970         (44)%     7,750   15,743     (51)% 
--------------------------------  -----  -----  -----  --------  --------  ------------  --------  -------  -------- 
 

(1) Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.

Metallurgical Coal - Export metallurgical coal production increased by 33% to 5.3 million tonnes as Grosvenor ramped up performance following geotechnical challenges in 2017. Moranbah production also improved following strong operational performance, and due to timing of longwall moves.

Thermal Coal South Africa - Export thermal coal production decreased by 8% to 4.4 million tonnes as Khwezela and Goedehoop ramp down in areas transitioning to closure and Mafube continues to transition into a new pit. This was partially offset by strong operational performance at Greenside.

Domestic thermal coal production decreased by 66% to 2.8 million tonnes primarily due to the completion of the sale of the Eskom-tied operations (New Vaal, New Denmark and Kriel) to Seriti on 1 March 2018.

Thermal Coal Colombia - Attributable export thermal coal production from Cerrejón increased by 13% to 2.8 million tonnes.

Full Year Guidance

Full year production guidance for Metallurgical Coal remains unchanged at 20-22 million tonnes.

Full year production guidance for Export Thermal Coal has been revised down to 28-30 million tonnes (previously 29-31 million tonnes) due to dust-related stoppages at Cerrejón and challenging geology at sections of South African operations approaching end of life.

 
 Coal, by product     Q2 2018     Q1 2018     Q4 2017     Q3 2017     Q2 2017      Q2     Q2      H1 2018      H1 2017     H1 
     (tonnes)                                                                     2018   2018                             2018 
                                                                                   vs.    vs.                              vs. 
                                                                                   Q1     Q2                               H1 
                                                                                  2018   2017                             2017 
                     ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  ----------- 
Metallurgical Coal 
 (Australia)          5,261,900   5,539,100   4,923,900   5,531,500   3,963,500   (5)%    33%    10,801,100    9,206,000   17% 
 Hard Coking Coal     4,534,800   4,853,200   4,300,300   4,696,200   3,237,000   (7)%    40%     9,388,100    7,984,400   18% 
 PCI / SSCC             727,100     685,900     623,600     835,300     726,500    6%     0%      1,413,000    1,221,600   16% 
Thermal Coal         10,271,300  11,950,300  15,172,700  15,637,100  15,782,500   (14)%  (35)%   22,221,600   31,350,400  (29)% 
 Export (Australia)     289,900     208,700     408,600     421,400     304,700    39%   (5)%       498,600      783,600  (36)% 
 Export (South 
  Africa)(1)          4,439,600   4,327,500   4,647,800   4,352,000   4,840,800    3%    (8)%     8,767,100    9,592,800  (9)% 
 Export (Colombia)    2,761,500   2,444,300   2,913,600   2,496,700   2,449,600    13%    13%     5,205,800    5,231,300    - 
 Domestic (South 
  Africa)             2,780,300   4,969,800   7,202,700   8,367,000   8,187,400   (44)%  (66)%    7,750,100   15,742,700  (51)% 
-------------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Total coal 
 production          15,533,200  17,489,400  20,096,600  21,168,600  19,746,000   (11)%  (21)%   33,022,700   40,556,400  (19)% 
-------------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Sales volumes 
Metallurgical Coal 
 (Australia)          5,094,500   5,632,900   5,323,600   5,341,700   4,155,000   (10)%   23%    10,727,400    9,105,200   18% 
 Hard Coking Coal     4,402,800   4,885,500   4,653,000   4,707,600   3,649,700   (10)%   21%     9,288,300    8,126,800   14% 
 PCI / SSCC             691,700     747,400     670,600     634,100     505,300   (7)%    37%     1,439,100      978,400   47% 
-------------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
Thermal Coal 
 Export (Australia)     357,800     293,800     466,900     468,500     422,800    22%   (15)%      651,600      893,300  (27)% 
 Export (South 
  Africa)(1)          4,092,700   4,615,700   4,843,500   4,921,200   4,150,800   (11)%  (1)%     8,708,400    8,844,100  (2)% 
 Export (Colombia)    2,762,900   2,480,200   2,619,400   2,517,500   2,770,500    11%     -      5,243,100    5,416,800  (3)% 
 Domestic (South 
  Africa)             3,146,500   4,711,000   7,370,300   8,549,300   8,385,400   (33)%  (62)%    7,857,500   16,103,400  (51)% 
 Third party sales    2,544,400   2,127,100   1,779,400   2,436,100   1,835,400    20%    39%     4,671,500    3,403,200   37% 
-------------------  ----------  ----------  ----------  ----------  ----------  ------  -----  -----------  -----------  ----- 
 

(1) Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.

 
Coal, by operation   Q2 2018     Q1 2018     Q4 2017     Q3 2017      Q2 2017     Q2     Q2      H1 2018      H1 2017     Q1 
     (tonnes)                                                                    2018   2018                             2018 
                                                                                  vs.    vs.                              vs. 
                                                                                  Q1     Q2                               Q4 
                                                                                 2018   2017                             2017 
                    ----------  ----------  ----------  ----------  -----------  -----  -----  -----------  ----------- 
Metallurgical Coal 
 (Australia)         5,261,900   5,539,100   4,923,900   5,531,500    3,963,500  (5)%    33%    10,801,100    9,206,000   17% 
 Moranbah North      1,064,300   1,936,700   1,979,800   1,316,800      688,600  (45)%   55%     3,001,000    2,104,700   43% 
 Grosvenor           1,342,000     825,600     161,300   1,012,500      183,600   63%    nm      2,167,600      893,400  143% 
 Capcoal (incl. 
  Grasstree)         1,324,200   1,396,000   1,604,900   1,712,100    1,467,400  (5)%   (10)%    2,720,200    3,169,500  (14)% 
 Dawson                714,100     534,500     319,700     670,300      787,500   34%   (9)%     1,248,600    1,492,600  (16)% 
 Jellinbah             817,300     846,300     858,200     819,800      836,400  (3)%   (2)%     1,663,600    1,545,800   8% 
Thermal Coal 
 (Australia)           289,900     208,700     408,600     421,400      304,700   39%   (5)%       498,600      783,600  (36)% 
 Capcoal (incl. 
  Grasstree)            66,000      65,500      95,400      62,000       41,500   1%     59%       131,500      124,800   5% 
 Dawson                193,400     114,500     310,800     342,500      259,300   69%   (25)%      307,900      646,300  (52)% 
 Jellinbah              30,500      28,700       2,400      16,900        3,900   6%     nm         59,200       12,500   nm 
------------------  ----------  ----------  ----------  ----------  -----------  -----  -----  -----------  -----------  ----- 
Total Australia 
 production          5,551,800   5,747,800   5,332,500   5,952,900    4,268,200  (3)%    30%    11,299,600    9,989,600   13% 
Thermal (South 
Africa)(1) 
 Goedehoop           1,185,900   1,138,000   1,114,300   1,085,400    1,230,800   4%    (4)%     2,323,900    2,452,900  (5)% 
 Greenside             941,500   1,043,600   1,041,200     906,700      877,700  (10)%   7%      1,985,100    1,882,500   5% 
 Zibulo              1,553,500   1,673,100   1,587,900   1,534,600    1,672,900  (7)%   (7)%     3,226,600    3,112,300   4% 
 Khwezela            1,297,200   1,244,000   1,371,300   1,265,300    1,475,000   4%    (12)%    2,541,200    3,071,100  (17)% 
 Mafube                172,100     105,600     350,900     361,200      407,600   63%   (58)%      277,700      849,000  (67)% 
 Other(2)            1,076,700           -           -           -            -   nm     nm      1,076,700            -   nm 
 New Vaal(3)                 -   1,560,500   3,218,500   4,354,300    4,121,900   nm     nm      1,560,500    7,536,200  (79)% 
 New Denmark(3)              -     560,100     963,300     673,700      769,600   nm     nm        560,100    1,724,000  (68)% 
 Kriel(3)                    -     704,900   1,237,400   1,392,700    1,420,300   nm     nm        704,900    2,758,800  (74)% 
 Isibonelo             993,000   1,267,500     965,700   1,145,100    1,052,400  (22)%  (6)%     2,260,500    1,948,700   16% 
------------------  ----------  ----------  ----------  ----------  -----------  -----  -----  -----------  -----------  ----- 
Total South Africa 
 production          7,219,900   9,297,300  11,850,500  12,719,000   13,028,200  (22)%  (45)%   16,517,200   25,335,500  (35)% 
Colombia 
 (Cerrejón)     2,761,500   2,444,300   2,913,600   2,496,700    2,449,600   13%    13%     5,205,800    5,231,300    - 
------------------  ----------  ----------  ----------  ----------  -----------  -----  -----  -----------  -----------  ----- 
Total Coal 
 production         15,533,200  17,489,400  20,096,600  21,168,600   19,746,000  (11)%  (21)%   33,022,700   40,556,400  (19)% 
------------------  ----------  ----------  ----------  ----------  -----------  -----  -----  -----------  -----------  ----- 
 

(1) Export and domestic production; New Vaal, New Denmark, Kriel and Isibonelo produce exclusively domestic volumes.

   (2)     Other production comes from the recovery of saleable product from mineral resource dumps. 
   (3)     The sale of the Eskom-tied operations was completed on 1 March 2018. 

NICKEL

 
  Nickel       Q2      Q2    Q2 2018   Q1 2018   Q2 2018 vs.   H1 2018   H1 2017  H1 2018 
              2018    2017      vs.                Q1 2018                           vs. 
                              Q2 2017                                              H1 2017 
             ------  ------  --------  -------  ------------  --------  -------- 
Nickel   t   10,800  11,300      (4)%    8,600           26%    19,400    21,200      (8)% 
-------      ------  ------  --------  -------  ------------  --------  --------  -------- 
 
 

Nickel output decreased by 4% to 10,800 tonnes, largely owing to a four-day stoppage when plant supplies were affected by a truckers' strike, and lower ore grades. A recovery plan is in place and no losses are expected for the full year.

Full year production guidance remains unchanged at 42,000-44,000 tonnes.

 
 Nickel(1)      Q2 2018     Q1 2018   Q4 2017   Q3 2017     Q2 2017     Q2      Q2       H1 2018      H1 2017     H1 
                                                                       2018    2018                              2018 
                                                                       vs.     vs.                               vs. 
                                                                        Q1      Q2                                H1 
                                                                       2018    2017                              2017 
              -----------  ---------  -------  ---------  ----------  ------  ------  ------------  ---------- 
Barro Alto 
 
 Ore mined      1,208,800  1,001,500  978,600  1,895,000   2,375,700   21%    (49)%      2,210,300   3,399,200  (35)% 
 Ore 
  processed     588,200     447,600   591,500   578,200     615,700    31%     (4)%     1,035,900    1,139,600   (9)% 
 Ore grade 
  processed 
  - %Ni          1.67        1.68      1.71      1.72        1.71       -      (2)%       1.67         1.71      (2)% 
 Production      8,600       6,500     9,100     8,900       9,100     32%     (5)%      15,100       16,900    (11)% 
------------  -----------  ---------  -------  ---------  ----------  ------  ------  ------------  ----------  ------ 
Codemin 
 Ore mined         -           -         -         -         7,500      -       -           -          7,500      - 
 Ore 
  processed     150,600     141,100   147,200   152,200     144,000     7%      5%       291,800      287,600     1% 
 Ore grade 
  processed 
  - %Ni          1.62        1.66      1.70      1.70        1.69      (2)%    (4)%       1.64         1.67      (2)% 
 Production      2,200       2,100     2,300     2,300       2,200      5%      -         4,300        4,300      - 
------------  -----------  ---------  -------  ---------  ----------  ------  ------  ------------  ----------  ------ 
Total Nickel 
 segment 
 nickel 
 production     10,800       8,600    11,400    11,200      11,300     26%     (4)%      19,400       21,200     (8)% 
------------  -----------  ---------  -------  ---------  ----------  ------  ------  ------------  ----------  ------ 
Sales 
 volumes        10,800       9,200    10,900    11,300      10,400     17%      4%       20,100       20,800     (3)% 
------------  -----------  ---------  -------  ---------  ----------  ------  ------  ------------  ----------  ------ 
 
   (1)     Excludes Anglo American Platinum's nickel production. 

MANGANESE

 
          Manganese              Q2     Q2    Q2 2018    Q1 2018   Q2 2018 vs.   H1 2018  H1 2017  H1 2018 
                                 2018   2017     vs.                 Q1 2018                          vs. 
                                               Q2 2017                                              H1 2017 
                                -----  -----  --------  --------  ------------  --------  ------- 
Manganese ore (1)        000 t    866    843        3%       881          (2)%     1,747    1,666        5% 
Manganese alloys(1)(2)   000 t     43     39       10%        41            4%        84       71       19% 
-----------------------  -----  -----  -----  --------  --------  ------------  --------  -------  -------- 
 
   (1)     Saleable production. 
   (2)     Production includes medium carbon ferro-manganese. 

Manganese ore - Manganese ore production increased by 3% to 866,200 tonnes.

Manganese alloy - Manganese alloy production increased by 10% to 42,800 tonnes.

 
   Manganese (tonnes) 
                          -------  -------  -------  --------  -------  ----  ---  ----------  ---------- 
Samancor 
 Manganese ore(1)         866,200  880,800  979,600   839,500  843,300  (2)%   3%   1,747,000   1,666,400   5% 
 Manganese alloys(1)(2)    42,800   41,200   41,100    37,300   39,300    4%  10%      84,000      70,800  19% 
------------------------  -------  -------  -------  --------  -------  ----  ---  ----------  ----------  --- 
Samancor sales volumes 
 Manganese ore            910,100  824,200  874,900   846,900  887,600   10%   3%   1,734,300   1,723,600   1% 
 Manganese alloys          48,400   38,300   37,300    33,500   37,200   26%  30%      86,700      71,600  21% 
------------------------  -------  -------  -------  --------  -------  ----  ---  ----------  ----------  --- 
 
   (1)     Saleable production. 
   (2)     Production includes medium carbon ferro-manganese. 

EXPLORATION AND EVALUATION

Exploration and Evaluation expenditure for the quarter increased by 38% to $72 million. Exploration expenditure increased by 17% to $27 million and evaluation expenditure increased by 55% to $45 million.

Anglo American continues to prioritise and invest in mineral discovery, building upon its long and successful history of identifying viable mineral resources. The Discovery team's objective is to build and maintain a robust greenfield portfolio by identifying and securing extensive mineral tenure covering strategic, highly prospective search space in both established and frontier settings. Their focus is on the discovery of mineral deposits that are capable of delivering sustainable and superior returns on a material scale, and which provide greater long-term optionality for the Group.

The team is active across a number of geographies, using the latest technologies and innovations to pinpoint opportunities for further investigation. These include Australia, Brazil, Ecuador, Peru and Zambia. As an example, exploration activity in the Alta Floresta and Tapajos belts of central Brazil has yielded promising early-stage drilling results. These prompted the team to lodge applications securing >19,000 km(2) of prospective mineral tenure, which the Group is now systematically evaluating.

REALISED PRICES SUMMARY

 
   Average realised prices     H1 2018  H2 2017  H1 2017  FY 2017  H1 2018   H1 2018 
                                                                      vs.       vs. 
                                                                    H1 2017   H2 2017 
De Beers 
 Total sales volumes 
  (100%) (Mct)(1)                 18.8     15.1     20.0     35.1      (6)%       25% 
 Consolidated sales 
  volumes 
  (Mct)(1)                        17.8     14.0     19.1     33.1      (7)%       27% 
 Consolidated average 
  realised price ($/ct)(2)         162      170      156      162        4%      (5)% 
 Average price index(3)            123      122      121      122        2%        1% 
PGMs 
 Platinum (US$/oz)                 932      946      957      947      (3)%      (1)% 
 Palladium (US$/oz)              1,005      926      780      876       29%        9% 
 Rhodium (US$/oz)                1,938    1,180      911    1,094      113%       64% 
 Basket price (US$/oz)           2,318    2,061    1,843    1,966       26%       12% 
Copper (USc/lb)(4)                 297      309      264      290       13%      (3)% 
Iron Ore - FOB prices 
 Kumba Export (US$/dmt)(5)          69       71       71       71      (3)%      (3)% 
 Minas-Rio (US$/wmt)(6)             70       64       66       65        6%        9% 
Coal 
Australia 
 Metallurgical - HCC 
  (US$/t)(7)                       198      180      195      187        2%       10% 
 Metallurgical - PCI 
  (US$/t)(7)                       129      126      124      125        4%        2% 
 Thermal - Export (US$/t)           99       95       87       91       14%        4% 
South Africa 
 Thermal - Export (US$/t)(8)        88       80       72       76       18%        6% 
 Thermal - Domestic 
  (US$/t, FOR)(9)                   20       22       20       21        0%      (9)% 
Colombia 
 Thermal - Export (US$/t)           79       79       71       75       11%        0% 
Nickel (USc/lb)                    632      508      442      476       43%       24% 
-----------------------------  -------  -------  -------  -------  --------  -------- 
 

(1) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué. Excluding Gahcho Kué's capitalised pre-commercial production sales volumes results in a consolidated sales volume of 18.4Mct for H1 2017.

(2) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial production sales from Gahcho Kué.

(3) Average of the De Beers price index for the Sights within the six-month period. The De Beers price index is relative to 100 as at December 2006.

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

(5) Average realised export basket price (FOB Saldanha).

(6) Average realised export basket price (FOB Açu) (wet basis).

(7) Weighted average metallurgical coal sales price achieved.

(8) Weighted average export thermal coal price achieved. Excludes third party sales.

(9) Weighted average domestic thermal coal price achieved on all domestic thermal coal sales.

NOTES

   --    This Production Report for the second quarter ended 30 June 2018 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                                        UK 
  James Wyatt-Tilby                         Paul Galloway 
  james.wyatt-tilby@angloamerican.com       paul.galloway@angloamerican.com 
  Tel: +44 (0)20 7968 8759                  Tel: +44 (0)20 7968 8718 
 
  Marcelo Esquivel                          Robert Greenberg 
  marcelo.esquivel@angloamerican.com        robert.greenberg@angloamerican.com 
  Tel: +44 (0)20 7968 8891                  Tel: +44 (0)20 7968 2124 
 
  South Africa                              Sheena Jethwa 
  Pranill Ramchander                        sheena.jethwa@angloamerican.com 
  pranill.ramchander@angloamerican.com      Tel: +44 (0)20 7968 8680 
  Tel: +27 (0)11 638 2592 
 
  Ann Farndell 
  ann.farndell@angloamerican.com 
  Tel: +27 (0)11 638 2786 
 

Notes to editors:

Anglo American is a global diversified mining business 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 to meet the 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.

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 sustainable value that those resources represent for our shareholders, the communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

Legal Entity Identifier: 549300S9XF92D1X8ME43

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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