TIDMAAL

RNS Number : 6568A

Anglo American PLC

23 January 2020

http://www.rns-pdf.londonstockexchange.com/rns/6568A_1-2020-1-22.pdf

Anglo American plc

Production Report for the fourth quarter ended 31 December 2019

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered our full year production targets across the business. Production is up 4%(1) for the quarter led by the continued successful ramp-up at Minas-Rio in Brazil. Increased production at Metallurgical Coal in Australia was offset by the drought in Chile impacting water availability at Los Bronces, as well as the anticipated lower production from De Beers as Venetia transitions to underground in South Africa and Victor reached the end of its mine life in Canada. As planned, we received the operating licence for the tailings dam raise at Minas-Rio before the end of 2019."

Key highlights

   --     A 10%(2) increase in platinum and palladium volumes due to higher grades and throughput. 

-- Strong performance from Collahuasi as well as productivity improvements at Los Bronces have partially mitigated the impact of production losses at Los Bronces due to the continued drought.

-- Continued strong performance from our Bulks business, reflecting the stability of operations under the Operating Model and progress in driving P101 levels of equipment performance to industry best practice and beyond.

-- Minas-Rio continued its strong operational performance, with 6.2 million tonnes of high grade iron ore production in Q4. The tailings dam raise operating licence was received in December 2019.

-- Kumba iron ore production of 11.8 million tonnes reflected improved run-rates following maintenance earlier in the year.

-- Metallurgical coal production increased by 11% to 6.3 million tonnes due to the timing of longwall moves, as well as improved wash plant throughput and equipment efficiency.

 
                          Q4 2019   Q4 2018    % vs.     2019    2018    % vs. 
                                               Q4 2018                    2018 
 Diamonds (Mct)(3)          7.8       9.1      (15)%     30.8    35.3    (13)% 
                                                        ------ 
 Copper (kt)(4)             159       184      (13)%      638     668    (5)% 
                         --------  --------             ------  ------ 
 Platinum (koz)(2)(5)       532       485       10%      2,051   2,021    1% 
                         --------            ---------  ------          ------ 
 Palladium (koz)(2)(5)      360       329       10%      1,386   1,379    1% 
                         --------            ---------  ------          ------ 
 Iron ore - Kumba 
  (Mt)                     11.8      10.2       16%      42.4    43.1    (2)% 
                         --------            ---------  ------  ------ 
 Iron ore - Minas-Rio 
  (Mt)(6)                   6.2       0.2       n/a      23.1     3.4     n/a 
                         --------            ---------  ------  ------ 
 Metallurgical coal 
  (Mt)                      6.3       5.6       11%      22.9    21.8     5% 
                         --------  --------             ------  ------ 
 Thermal coal (Mt)(7)       6.8       6.9       (1)%     26.4    28.6    (8)% 
                                   --------  ---------  ------  ------ 
 Nickel (kt)(8)            11.7      11.4        3%      42.6    42.3     1% 
                         --------            ---------  ------  ------ 
 Manganese ore (kt)         903       972       (7)%     3,513   3,607   (3)% 
                         --------            ---------  ------  ------ 
 

(1) Copper equivalent production is normalised to reflect closure of Voorspoed and Victor (De Beers) and Sibanye-Stillwater Rustenburg material that has transitioned to a tolling arrangement (Platinum Group Metals). Excluding the impact of Minas-Rio, Group copper equivalent production is down 1% in the quarter.

(2) Normalised for the transition of Sibanye-Stillwater Rustenburg material from purchased concentrate to a tolling arrangement.

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

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

   (5)     Produced ounces of metal in concentrate. Reflects own mine production and purchases. 
   (6)     Wet basis. 

(7) Reflects export production from South Africa and attributable export production (33.3%) from Colombia.

(8) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).

DE BEERS

 
 De Beers(1) (000                         Q4 2019           Q4 2019                         2019 
  carats)                                  vs. Q4            vs. Q3                     vs. 2018 
                             Q4     Q4       2018     Q3       2019 
                                        ---------         --------- 
                           2019   2018              2019               2019    2018 
                                 -----  -----             -----              ------ 
 Botswana                 5,888  6,346     (7)%    5,699      3%     23,254  24,132      (4)% 
 Namibia                    456    505    (10)%      426      7%      1,700   2,008     (15)% 
 South Africa               434  1,234    (65)%      535    (19)%     1,922   4,682     (59)% 
 Canada                   1,009  1,043     (3)%      779     30%      3,900   4,475     (13)% 
 Total carats recovered   7,787  9,128    (15)%    7,439      5%     30,776  35,297     (13)% 
------------------------  -----  -----  -----      -----  -----      ------  ------  ------ 
 

Rough diamond production decreased by 15% to 7.8 million carats, driven by lower production levels in South Africa and Botswana. While trading conditions have improved since Q3 2019, production was reduced in response to softer rough diamond demand conditions experienced in the year.

Botswana production decreased by 7% to 5.9 million carats. Orapa production decreased by 29%, caused by a delay in an infrastructure project and expected lower grades. This was partially offset by a 21% increase at Jwaneng driven by planned increases in both tonnes treated and grade.

Namibian production decreased by 10% to 0.5 million carats, driven by Debmarine Namibia where production decreased by 9% to 0.4 million carats due to routine vessel maintenance in Q4 2019.

In South Africa, production decreased by 65% to 0.4 million carats due to lower volumes of ore mined at Venetia as it approaches the transition from open pit to underground. In addition, Voorspoed production ended in Q4 2018 when it was placed onto care and maintenance in preparation for closure.

Production in Canada decreased by 3% to 1.0 million carats, primarily due to the closure of Victor, which reached the end of its life in Q2 2019. Gahcho Kué production increased by 28% to 1.0 million carats due to strong plant performance.

Rough diamond sales totalled 7.0 million carats (6.6 million carats on a consolidated basis)(2) from two sales cycles, which compares with 9.9 million carats of sales (9.3 million carats on a consolidated basis)(2) from three sales cycles in Q4 2018.

For the full year, rough diamond sales volumes were 8% lower at 30.9 million carats (29.2 million carats on a consolidated basis)(2) compared with 33.7 million carats (31.7 million carats on a consolidated basis)(2) in 2018. In 2019, overall demand for rough diamonds was lower as a result of challenges in the midstream, with higher polished inventories and caution due to macro-economic uncertainty.

The full year consolidated average realised price of $137/ct was lower (2018: $171/ct), due primarily to a higher proportion of lower value rough diamonds sold in 2019 and a 6% lower rough diamond price index.

2020 Production Guidance

Production guidance for 2020(1) is unchanged at 32-34 million carats, subject to trading conditions. The higher production anticipates an improvement in trading conditions compared with 2019, and is driven by an expected increase in production from Venetia.

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

(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

 
 De Beers(1)                                                Q4 2019     Q4 2019                      2019 
                                                                vs.         vs.                       vs. 
                         Q4     Q3     Q2     Q1     Q4     Q3 2019     Q4 2018                      2018 
                                                         ----------  ---------- 
                       2019   2019   2019   2019   2018                            2019    2018 
                             -----  -----  -----  -----  -----  ---  -----  ---          ------ 
 Carats recovered 
  (000 carats) 
 100% basis (unless 
  stated) 
 Jwaneng              3,319  2,584  3,223  3,336  2,744     28%         21%      12,462  11,896     5% 
 Orapa(2)             2,569  3,115  2,495  2,614  3,602    (18)%       (29)%     10,792  12,236   (12)% 
 Botswana             5,888  5,699  5,718  5,950  6,346      3%         (7)%     23,254  24,132    (4)% 
 
 Debmarine Namibia      363    320    245    364    400     13%         (9)%      1,292   1,436   (10)% 
 Namdeb (land 
  operations)            93    106     90    119    105    (12)%       (11)%        408     572   (29)% 
 Namibia                456    426    335    483    505      7%        (10)%      1,700   2,008   (15)% 
 
 Venetia                434    535    571    382  1,141    (19)%       (62)%      1,922   4,249   (55)% 
 Voorspoed                -      -      -      -     93         n/a         n/a       -     433       n/a 
 South Africa           434    535    571    382  1,234    (19)%       (65)%      1,922   4,682   (59)% 
 
 Gahcho Kué 
  (51% basis)         1,009    779    883    808    789     30%         28%       3,479   3,539    (2)% 
 Victor                   -      -    192    229    254         n/a         n/a     421     936   (55)% 
 Canada               1,009    779  1,075  1,037  1,043     30%         (3)%      3,900   4,475   (13)% 
 Total carats 
  recovered           7,787  7,439  7,699  7,852  9,128      5%        (15)%     30,776  35,297   (13)% 
                      -----  -----  -----  -----  -----  -----       -----       ------  ------  ---- 
 Sales volumes 
 Total sales volume 
  (100)% (Mct)(3)       7.0    7.4    9.0    7.5    9.9     (5)%       (29)%       30.9    33.7    (8)% 
 Consolidated 
  sales volume 
  (Mct)(3)              6.6    7.1    8.3    7.2    9.3     (7)%       (29)%       29.2    31.7    (8)% 
 Number of Sights 
  (sales cycles)          2      3      3      2      3                              10      10 
--------------------  -----  -----  -----  -----  -----  ----------  ----------  ------  ------  -------- 
 
 

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

   (2)     Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa. 

(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

COPPER

 
 Copper(1) (tonnes)                       Q4 2019             Q4 2019                           2019 
                                           vs. Q4              vs. Q3                       vs. 2018 
                           Q4       Q4       2018       Q3       2019 
                                        ---------           --------- 
                         2019     2018                2019                2019     2018 
                               -------  -----               -----               ------- 
 Los Bronces           71,700   99,000    (28)%     80,400    (11)%    335,000  369,500     (9)% 
 Collahuasi (44% 
  share)               72,200   69,200      4%      64,500     12%     248,800  246,000      1% 
 El Soldado            14,900   15,300     (3)%     14,000      6%      54,200   52,700      3% 
 Total Copper         158,800  183,500    (13)%    158,900      0%     638,000  668,300     (5)% 
--------------------  -------  -------  -----      -------  -----      -------  -------  ----- 
 

(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).

Copper production decreased by 13% to 158,800 tonnes, largely impacted by a reduction at Los Bronces, driven by the continued drought conditions in central Chile, partially offset by continued strong plant performance at Collahuasi.

Production from Los Bronces decreased by 28%, to 71,700 tonnes with a 44% reduction in plant throughput (7 million tonnes vs 13 million tonnes) resulting from lower water availability. This was partly offset by strong mine performance, in particular a step-up in shovel productivity as a result of P101 improvements, and planned higher grades (0.99% vs. 0.81%). Chile's central zone continues to face unprecedented climate conditions, with 2019 being one of the driest years on record and the driest since the start of the current decade-long drought.

At Collahuasi, attributable production increased by 4% to 72,200 tonnes, another record in copper concentrate production, with planned lower grades (1.25% vs 1.28%) more than offset by a strong plant performance that benefited from the ongoing long-term plant improvement plan.

2019 sales volumes were 643,900 tonnes, at an average realised price of 273c/lb ($6,019/t), in line with the average LME price.

2020 Production Guidance

Production guidance for 2020 is unchanged at 620,000-670,000 tonnes, subject to water availability.

 
 Copper(1)                                                                      Q4 2019   Q4 2019                             2019 
                                                                                    vs.       vs.                              vs. 
                           Q4          Q3          Q2          Q1          Q4   Q3 2019   Q4 2018                             2018 
                                                                               --------  -------- 
                         2019        2019        2019        2019        2018                            2019        2018 
                               ----------  ----------  ----------  ----------  ---  ---  ---  ---              ---------- 
 Los Bronces 
 mine(2) 
 Ore mined         17,373,800  15,560,400  17,302,500  15,678,600  12,675,800   12%       37%      65,915,300  59,207,400   11% 
 Ore processed 
  - Sulphide        7,146,800  10,977,200  11,813,600  12,070,800  12,669,900  (35)%     (44)%     42,008,400  50,583,000  (17)% 
 Ore grade 
  processed 
  - 
  Sulphide (% 
  TCu)(3)                0.99        0.78        0.81        0.80        0.81   27%       22%            0.83        0.76    9% 
 Production - 
  Copper 
  cathode              10,000      10,100       9,300       9,600      10,200   (1)%      (2)%         39,000      39,000    0% 
 Production - 
  Copper 
  in concentrate       61,700      70,300      81,900      82,100      88,800  (12)%     (31)%        296,000     330,500  (10)% 
 Total production      71,700      80,400      91,200      91,700      99,000  (11)%     (28)%        335,000     369,500   (9)% 
                   ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ---------- 
 Collahuasi 100% 
  basis 
  (Anglo American 
  share 44%) 
 Ore mined         22,132,200  25,780,000  23,698,300  15,642,800  14,781,300  (14)%      50%      87,253,200  51,886,400   68% 
 Ore processed 
  - Sulphide       14,728,700  14,478,700  11,626,100  13,299,600  13,638,400    2%        8%      54,133,100  49,470,500    9% 
 Ore grade 
  processed 
  - 
  Sulphide (% 
  TCu)(3)                1.25        1.14        1.21        1.16        1.28    9%       (2)%           1.19        1.29   (8)% 
 Production - 
  copper 
  in concentrate      164,200     146,600     124,400     130,200     157,400   12%        4%         565,400     559,100    1% 
 Anglo American's 
  share of copper 
  production for 
  Collahuasi(4)        72,200      64,500      54,700      57,300      69,200   12%        4%         248,800     246,000    1% 
-----------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 El Soldado 
 mine(2) 
 Ore mined          2,721,400   3,299,900   3,017,800   3,089,000   3,233,900  (18)%     (16)%     12,128,100  11,613,200    4% 
 Ore processed 
  - Sulphide        1,854,900   1,911,700   1,861,900   1,809,900   1,951,600   (3)%      (5)%      7,438,500   7,598,200   (2)% 
 Ore grade 
  processed 
  - 
  Sulphide (% 
  TCu)(3)                1.02        0.92        0.92        0.84        0.94   11%        8%            0.93        0.85    9% 
 Production - 
  copper 
  in concentrate       14,900      14,000      13,200      12,100      15,300    6%       (3)%         54,200      52,700    3% 
                   ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Chagres 
 Smelter(2) 
 Ore smelted           30,800      28,800      32,100      30,300      30,900    7%        0%         122,000     142,600  (14)% 
 Production            29,900      28,000      31,200      29,500      30,100    7%       (1)%        118,600     139,200  (15)% 
-----------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Total copper 
  production(5)       158,800     158,900     159,100     161,100     183,500    0%      (13)%        638,000     668,300   (5)% 
 Total payable 
  copper 
  production          153,100     153,000     153,100     155,000     177,100    0%      (14)%        614,300     644,500   (5)% 
 Total sales 
  volumes             176,500     160,000     165,400     141,900     205,800   10%      (14)%        643,900     671,600   (4)% 
 Total payable 
  sales volumes       170,100     153,800     159,100     136,500     198,400   11%      (14)%        619,500     647,700   (4)% 
 Third party 
  sales(6)            115,300      91,600      88,800      53,400      50,400   26%      129%         349,000     173,700  101% 
-----------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 

(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.

(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.

   (3)       TCu = total copper. 
   (4)       Anglo American's share of Collahuasi production is 44%. 
   (5)       Total copper production includes Anglo American's 44% interest in Collahuasi. 
   (6)       Relates to sales of copper not produced by Anglo American operations. 

PLATINUM GROUP METALS (PGMs)

 
 Platinum (000 oz)(1)                          Q4 2019           Q4 2019                           2019 
                                                vs. Q4            vs. Q3                       vs. 2018 
                                  Q4     Q4       2018     Q3       2019 
                                             ---------         --------- 
                                2019   2018              2019                2019     2018 
                                      -----  -----             ----  ---           ------- 
 Metal in concentrate 
  production(2)                531.7  485.4     10%     526.8     1%      2,050.6  2,020.5      1% 
 Own mined(3)                  361.9  307.5     18%     351.7     3%      1,378.2  1,323.6      4% 
 Purchase of concentrate 
  (POC)(2)(4)                  169.8  177.9     (5)%    175.1    (3)%       672.4    696.9     (4)% 
 POC now under tolling 
  arrangement(5)                   -  116.9        n/a      -        n/a        -    464.2          n/a 
-----------------------------  -----  -----  ---------  -----  ---------  -------  -------  ----------- 
 Palladium (000 oz)(1) 
-----------------------------                                  --------- 
 Metal in concentrate 
  production(2)                360.4  328.5     10%     351.8     2%      1,385.9  1,379.0      1% 
 Own mined(3)                  275.0  234.8     17%     262.7     5%      1,049.2  1,013.5      4% 
 Purchase of concentrate 
  (POC)(2)(4)                   85.4   93.7     (9)%     89.0    (4)%       336.7    365.5     (8)% 
 POC now under tolling 
  arrangement(5)                   -   58.1        n/a      -        n/a        -    231.8          n/a 
-----------------------------  -----  -----  ---------  -----  ---------  -------  -------  ----------- 
 Refined production(6) 
                                                               --------- 
   Platinum      000 oz(1)(7)  629.7  770.9    (18)%    578.6     9%      2,210.9  2,402.4     (8)% 
   Palladium     000 oz(1)(7)  396.6  493.8    (20)%    362.1    10%      1,480.5  1,501.8     (1)% 
   Rhodium       000 oz(1)(7)   90.8   91.3     (1)%     66.5    37%        293.4    292.8      0% 
 Tolled material 
   Platinum         000 oz(1)  104.4      -        n/a  100.9     3%        303.2        -          n/a 
   Palladium        000 oz(1)   54.0      -        n/a   51.3     5%        154.4        -          n/a 
-------------  --------------  -----  -----  ---------  -----  ----       -------  -------  ----------- 
 
   (1)     Ounces refer to troy ounces. 
   (2)     Excluding purchase of concentrate volumes now treated under tolling arrangement. 
   (3)     Includes managed operations and 50% of joint venture production. 

(4) Includes 50% of joint venture production, and the purchase of concentrate from associates (BRPM prior to its disposal) and third parties.

   (5)     Comparative periods include purchase of concentrate volumes now under tolling arrangement. 

(6) Refined production of gold, nickel and copper has been removed from this table but is still shown in the detailed table on the next page.

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

Metal in concentrate production

Platinum and palladium production both increased by 10%, to 531,700 ounces and 360,400 ounces, respectively.

Own mined platinum production increased by 18% to 361,900 ounces and palladium production increased by 17% to 275,000 ounces. This was driven by increased production at Mogalakwena due to higher grade and throughput, and from Amandelbult, due to the ramp-up of the Dishaba lower section, as well as the inclusion of 100% of Mototolo volumes following the acquisition of the remaining 50% of the asset in November 2018. This was partially offset by the impact of Eskom power outages, which reduced overall own mined volumes by 8,500 platinum ounces and 6,000 palladium ounces.

Purchase of platinum in concentrate decreased by 5% to 169,800 ounces and purchase of palladium in concentrate decreased by 9% to 85,400 ounces, the result of lower purchases from joint ventures, as Mototolo became 100% owned in November 2018, as well as lower production from Bafokeng-Rasimone Platinum Mine.

Refined production and sales volumes

Refined platinum production(1) decreased by 18% to 629,700 ounces and refined palladium production(1) decreased by 20% to 396,600 ounces. Excluding the impact of the tolled volumes that were previously purchased as concentrate, refined platinum production was flat and palladium decreased by 6% as improved operational performance at the processing facilities was offset by the impact of Eskom power outages. These power outages in Q4 resulted in an inventory build-up of circa 45,000 platinum ounces and circa 27,000 palladium ounces.

Platinum sales volumes(1) decreased by 14% to 668,300 ounces and palladium sales volumes(1) decreased by 4% to 435,800 ounces due to lower refined production in the period.

The full year price per platinum ounce for the basket of metals sold increased by 27% to $2,819/ounce compared to 2018 due to 48% and 73% price increases in palladium and rhodium, respectively.

2020 Production Guidance

Production guidance (metal in concentrate) is unchanged at 2.0-2.2 million ounces of platinum and approximately 1.4 million ounces of palladium, subject to Eskom power performance.

   (1)     Does not include tolled volumes. 
 
 Platinum                                                 Q4 2019     Q4 2019                       2019 
                                                              vs.         vs.                        vs. 
                       Q4     Q3     Q2     Q1     Q4     Q3 2019     Q4 2018                       2018 
                                                       ----------  ---------- 
                     2019   2019   2019   2019   2018                             2019     2018 
                           -----  -----  -----  -----  -----  ---  -----  ---           ------- 
 Produced platinum 
  (000 oz)(1)       531.7  526.8  520.3  471.9  485.4      1%         10%      2,050.6  2,020.5    1% 
 Own mined          361.9  351.7  342.8  321.9  307.5      3%         18%      1,378.2  1,323.6    4% 
 Mogalakwena        135.8  123.4  127.9  130.4  108.4     10%         25%        517.5    495.1    5% 
 Amandelbult        120.1  118.4  116.6   98.5   96.5      1%         24%        453.6    442.7    2% 
 Unki                23.3   23.7   23.1   19.3   22.0     (2)%         6%         89.4     85.9    4% 
 Mototolo(2)         30.9   31.4   23.0   26.8   17.5     (2)%        77%        112.0     17.5  540% 
 Joint ventures(2)   51.8   54.8   52.2   46.9   63.1     (5)%       (18)%       205.7    270.8  (24)% 
 Union                  -      -      -      -      -         n/a         n/a        -     11.6      n/a 
 Purchase of 
  concentrate(3)    169.8  175.1  177.5  150.0  177.9     (3)%        (5)%       672.4    696.9   (4)% 
 Joint ventures(2)   51.8   54.8   52.2   46.9   63.1     (5)%       (18)%       205.7    270.8  (24)% 
 Associates(4)          -      -      -      -   46.9         n/a         n/a        -    220.2      n/a 
 Third parties(3)   118.0  120.3  125.3  103.1   67.9     (2)%        74%        466.7    205.9  127% 
 POC now under 
  tolling 
  arrangements(5)       -      -      -      -  116.9         n/a         n/a        -    464.2      n/a 
                                         ----- 
 Palladium 
                    -----  -----  -----  -----  -----  ----------  ----------  -------  ------- 
 Produced 
  palladium 
  (000 oz)(1)       360.4  351.8  347.2  326.6  328.5      2%         10%      1,385.9  1,379.0    1% 
 Own mined          275.0  262.7  260.5  250.9  234.8      5%         17%      1,049.2  1,013.5    4% 
 Mogalakwena        146.0  130.8  139.5  141.5  118.2     12%         24%        557.9    540.9    3% 
 Amandelbult         56.0   54.3   53.7   44.9   44.9      3%         25%        208.9    205.1    2% 
 Unki                20.0   21.3   20.9   17.0   19.6     (6)%         2%         79.2     75.5    5% 
 Mototolo(2)         19.0   19.4   14.0   16.3   10.9     (2)%        74%         68.7     10.9  530% 
 Joint ventures(2)   34.0   36.9   32.4   31.2   41.2     (8)%       (17)%       134.5    176.0  (24)% 
 Union                  -      -      -      -      -         n/a         n/a        -      5.2      n/a 
 Purchase of 
  concentrate(3)     85.4   89.0   86.7   75.7   93.7     (4)%        (9)%       336.7    365.5   (8)% 
 Joint ventures(2)   34.0   36.9   32.4   31.2   41.2     (8)%       (17)%       134.5    175.9  (24)% 
 Associates(4)          -      -      -      -   19.3         n/a         n/a        -     90.2      n/a 
 Third parties(3)    51.4   52.1   54.3   44.5   33.2     (1)%        55%        202.2     99.4  103% 
 POC now under 
  tolling 
  arrangements(5)       -      -      -      -   58.1         n/a         n/a        -    231.8      n/a 
 Refined 
 production 
                    -----  -----  -----  -----  -----  ----------  ----------  -------  ------- 
 Platinum (000 
  oz)(1)(6)         629.7  578.6  590.9  411.7  770.9      9%        (18)%     2,210.9  2,402.4   (8)% 
 Palladium (000 
  oz)(1)(6)         396.6  362.1  428.2  293.6  493.8     10%        (20)%     1,480.5  1,501.8   (1)% 
 Rhodium (000 
  oz)(1)(6)          90.8   66.5   84.1   52.0   91.3     37%         (1)%       293.4    292.8    0% 
 Gold (000 
  oz)(1)(6)          32.4   27.9   21.3   24.0   27.9     16%         16%        105.6    105.5    0% 
 Nickel 
  (tonnes)(6)       6,400  6,800  5,600  4,200  6,700     (6)%        (4)%      23,000   23,100    0% 
 Copper 
  (tonnes)(6)       4,100  3,400  3,500  3,200  4,200     21%         (2)%      14,200   14,300   (1)% 
 Tolled material 
 Platinum (000 
  oz)(1)            104.4  100.9   97.9      -      -      3%             n/a    303.2        -      n/a 
 Palladium (000 
  oz)(1)             54.0   51.3   49.1      -      -      5%             n/a    154.4        -      n/a 
 
 Platinum sales 
  volumes 
  (000 oz)(1)(7)    668.3  537.4  595.2  414.2  776.9     24%        (14)%     2,215.1  2,424.2   (9)% 
 
 Palladium sales 
  volumes 
  (000 oz)(1)(7)    435.8  316.9  475.9  292.1  455.3     38%         (4)%     1,520.7  1,513.1    1% 
 
 Platinum 3(rd) 
  party sales 
  volumes 
  (000 oz)(1)(8)     10.6   17.5   13.0    5.0    1.5    (39)%       607%         46.1     94.0  (51)% 
 
 Palladium 3(rd) 
  party sales 
  volumes 
  (000 oz)(1)(8)     42.8   79.7   81.0   58.7   16.5    (46)%       159%        262.2    124.5  111% 
 
 4E head grade 
  (g/t milled)(9)    3.67   3.65   3.55   3.58   3.38      1%          9%         3.61     3.48    4% 
------------------  -----  -----  -----  -----  -----  -----       -----       -------  -------  --- 
 
   (1)     Ounces refer to troy ounces. 

(2) The joint venture operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'. Mototolo is 100% owned from 1 November 2018.

   (3)     Excluding purchase of concentrate volumes now treated under tolling arrangement. 
   (4)     33% interest in BRPM until its sale effective 11 December 2018. 
   (5)     Comparative periods include purchase of concentrate volumes now under tolling arrangement. 
   (6)     Refined production excludes tolled material. 

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

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

(9) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material.

IRON ORE

 
 Iron Ore (000                     Q4 2019            Q4 2019                          2019 
  t)                                vs. Q4             vs. Q3                      vs. 2018 
                     Q4      Q4       2018      Q3       2019 
                                 ---------          --------- 
                   2019    2018               2019               2019    2018 
                         ------  ----  ---          ----  ---          ------ 
 Kumba           11,806  10,170    16%      10,521    12%      42,388  43,106     (2)% 
 Minas-Rio(1)     6,164     227        n/a   6,126     1%      23,115   3,382           n/a 
---------------  ------  ------  ---------  ------  ----       ------  ------  ------------ 
 
 
   (1)       Wet basis. 

Kumba - Total production volumes increased by 16% to 11.8 million tonnes, due to higher production at both Sishen and Kolomela.

Sishen's production increased by 19% to 8.3 million tonnes as a result of improved operational performance in Q4 2019.

Kolomela's production increased by 10% to 3.5 million tonnes, reflecting the ramp-up in production following the temporary closure of the DMS plant for an infrastructure upgrade in Q1 2019 and its subsequent re-opening, on schedule, in Q4 2019.

Total sales decreased by 10% to 10.5 million tonnes, driven by a 73% decline in domestic sales to 0.2 million tonnes due to lower domestic customer off-take with the winding down of the Saldanha Steel plant. Export sales were 5% lower at 10.2 million tonnes.

Total finished stock increased to 6.6 million tonnes(1) at Q4 2019 from 5.1 million tonnes at Q3 2019, as a result of lower domestic sales. Rail performance improved significantly in 2019, with port stock levels well set for Q1 2020.

In the fourth quarter, the average lump to fines ratio in the Kumba product was 66:34 (full year: 67:33), while the Fe content averaged 64.1% (full year: 64.2%).

The full year FOB realised price was $97/tonne, reflecting the reversal, driven by price movements, of gains from provisionally priced sales that supported the first half realised price of $108/tonne.

Minas-Rio - Production of 6.2 million tonnes was driven by continued strong operational performance, stability due to higher grade ore from the Step 3 mine area and productivity initiatives.

The construction of the tailings dam raise was completed in August 2019 and approval for the conversion of the installation licence to an operating licence was announced on 23 December.

The full year FOB realised price was $79/tonne, reflecting the reversal, driven by price movements, of gains from provisionally priced sales that supported the first half realised price of $92/tonne.

2020 Production Guidance

Kumba production guidance for 2020 is unchanged at 42-43 million tonnes.

Minas-Rio production guidance for 2020 is unchanged at 22-24 Mt, which includes a one-month production stoppage in Q2 to carry out routine internal scanning of the pipeline.

(1) Sales volumes and stock differ to Kumba's standalone Q4 results due to sales to other Group companies.

 
 Iron Ore                                                                   Q4 2019   Q4 2019                             2019 
 (tonnes)                                                                       vs.       vs.                              vs. 
                       Q4          Q3          Q2          Q1          Q4   Q3 2019   Q4 2018                             2018 
                                                                           --------  -------- 
                     2019        2019        2019        2019        2018                            2019        2018 
                           ----------  ----------  ----------  ----------  ---  ---  ---  ---              ---------- 
 Kumba 
  production   11,806,100  10,521,300  10,544,000   9,516,300  10,170,200   12%       16%      42,387,700  43,105,700   (2)% 
 Lump           7,898,500   6,955,500   7,111,400   6,544,600   6,878,600   14%       15%      28,510,100  29,171,500   (2)% 
 Fines          3,907,600   3,565,800   3,432,600   2,971,700   3,291,600   10%       19%      13,877,600  13,934,200    0% 
-------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Kumba 
 production 
 by mine 
 Sishen         8,263,900   7,153,500   7,310,400   6,446,600   6,960,500   16%       19%      29,174,400  29,246,000    0% 
 Kolomela       3,542,200   3,367,800   3,233,600   3,069,700   3,209,700    5%       10%      13,213,300  13,859,700   (5)% 
               ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Kumba sales 
  volumes      10,469,400  10,153,800  10,471,900  10,878,600  11,591,400    3%      (10)%     41,973,700  43,256,800   (3)% 
 Export iron 
  ore (1)      10,237,100   9,670,200   9,755,600  10,130,600  10,723,200    6%       (5)%     39,793,500  39,965,700    0% 
 Domestic 
  iron 
  ore             232,300     483,600     716,300     748,000     868,200  (52)%     (73)%      2,180,200   3,291,100  (34)% 
-------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 
 Minas-Rio 
 production 
 Pellet feed 
  (wet basis)   6,163,600   6,126,100   5,915,500   4,909,700     226,700    1%           n/a  23,114,900   3,382,000      n/a 
               ----------  ----------  ----------  ----------  ----------  ---       --------  ----------  ----------  ------- 
 Minas-Rio 
 sales 
 volumes 
 Export - 
  pellet 
  feed (wet 
  basis)        6,570,700   5,734,500   6,590,400   4,031,400           -   15%           n/a  22,927,000   3,216,800      n/a 
-------------  ----------  ----------  ----------  ----------  ----------  ---       --------  ----------  ----------  ------- 
 
 

(1) Sales volumes and stock differ to Kumba's standalone Q4 results due to sales to other Group companies.

COAL

 
 Coal(1) (000 t)                         Q4 2019           Q4 2019                          2019 
                                          vs. Q4            vs. Q3                      vs. 2018 
                            Q4     Q4       2018     Q3       2019 
                                       ---------         --------- 
                          2019   2018              2019               2019    2018 
                                -----  -----             -----              ------ 
 Metallurgical Coal 
  (Australia)            6,284  5,647     11%     6,569     (4)%    22,852  21,830       5% 
 Export Thermal Coal 
  (Australia)              389    428     (9)%      438    (11)%     1,411   1,381       2% 
 Export Thermal Coal 
  (South Africa)(2)      4,515  4,537      0%     4,288      5%     17,796  18,359      (3)% 
 Export Thermal Coal 
  (Colombia)(3)          2,315  2,357     (2)%    2,055     13%      8,586  10,220     (16)% 
 Domestic Thermal Coal 
  (South Africa)         2,511  3,293    (24)%    2,621     (4)%    10,046  13,692     (27)% 
-----------------------  -----  -----  -----      -----  -----      ------  ------  ------ 
 
   (1)       Anglo American's attributable share of production. 

(2) Includes export primary production, secondary production sold into export markets, production sold domestically at export parity pricing, and pre-commercial production volumes from Navigation section of Khwezela.

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

Metallurgical Coal - Export metallurgical coal production increased by 11% to 6.3 million tonnes primarily due to the timing of longwall moves at Grosvenor and Grasstree, as well as improvements in wash plant throughput at Moranbah-Grosvenor and equipment productivity at Dawson.

In the fourth quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 81:19 (full year 2019: 83:17).

Thermal Coal South Africa - Export thermal coal production was flat at 4.5 million tonnes.

Thermal Coal Colombia - Attributable export thermal coal production decreased 2% to 2.3 million tonnes in response to weak market conditions.

The full year weighted average realised price for export thermal coal from South Africa and Colombia was $59/tonne. This was 10% lower than the weighted average quoted FOB price from South Africa and Colombia, due to lower than benchmark energy content coal from South Africa.

2020 Production Guidance

Metallurgical coal production guidance for 2020 is unchanged at 21-23 million tonnes. This reflects the sale of a 12% interest in the Grosvenor mine that is expected to complete during the year, equalising the ownership across the Moranbah-Grosvenor integrated operations.

Thermal coal production guidance for 2020 is unchanged at circa 26 million tonnes.

 
 Coal, by                                                                     Q4 2019   Q4 2019                             2019 
 product                                                                          vs.       vs.                              vs. 
 (tonnes)(1)             Q4          Q3          Q2          Q1          Q4   Q3 2019   Q4 2018                             2018 
                                                                             --------  -------- 
                       2019        2019        2019        2019        2018                            2019        2018 
                             ----------  ----------  ----------  ----------  ---  ---  ---  ---              ---------- 
 Metallurgical 
  Coal 
  (Australia)     6,283,600   6,568,900   5,843,500   4,156,200   5,647,100   (4)%      11%      22,852,200  21,830,400    5% 
 Hard Coking 
  Coal            5,117,500   5,615,900   4,958,600   3,265,100   4,864,600   (9)%       5%      18,957,100  18,798,400    1% 
 PCI / SSCC       1,166,100     953,000     884,900     891,100     782,500   22%       49%       3,895,100   3,032,000   28% 
---------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Thermal Coal     9,730,000   9,402,700   9,460,700   9,245,000  10,613,700    3%       (8)%     37,838,300  43,652,100  (13)% 
 Export 
  (Australia)       389,200     437,900     245,200     338,500     427,600  (11)%      (9)%      1,410,700   1,381,300    2% 
 Export (South 
  Africa)(2)      4,515,100   4,288,400   4,575,000   4,417,000   4,537,100    5%        0%      17,795,600  18,358,600   (3)% 
 Export 
  (Colombia)(3)   2,314,900   2,055,100   2,016,900   2,199,300   2,356,500   13%       (2)%      8,586,100  10,219,900  (16)% 
 Domestic 
  (South 
  Africa)         2,510,800   2,621,300   2,623,600   2,290,200   3,292,500   (4)%     (24)%     10,045,900  13,692,300  (27)% 
 Total coal 
  production     16,013,600  15,971,600  15,304,200  13,401,200  16,260,800    0%       (2)%     60,690,500  65,482,500   (7)% 
                 ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Sales volumes 
 Metallurgical 
  Coal 
  (Australia)     6,100,100   6,371,500   5,987,300   3,921,700   5,812,700   (4)%       5%      22,380,600  21,982,800    2% 
 Hard Coking 
  Coal            5,097,200   5,737,800   4,944,300   3,290,600   5,064,200  (11)%       1%      19,069,900  19,186,600   (1)% 
 PCI / SSCC       1,002,900     633,700   1,043,000     631,100     748,500   58%       34%       3,310,700   2,796,200   18% 
---------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 Thermal Coal    12,939,200  12,166,100  12,046,300  12,265,900  13,700,800    6%       (6)%     49,417,500  52,615,600   (6)% 
 Export 
  (Australia)       500,900     584,600     270,900     451,200     582,200  (14)%     (14)%      1,807,600   1,565,300   15% 
 Export (South 
  Africa)(2)      4,880,100   4,073,300   4,932,400   4,262,800   5,918,700   20%      (18)%     18,148,400  18,306,600   (1)% 
 Export 
  (Colombia)(3)   2,260,800   2,068,600   2,244,800   2,199,600   2,297,200    9%       (2)%      8,773,800  10,129,400  (13)% 
 Domestic 
  (South 
  Africa)         2,172,700   3,175,200   2,016,700   2,402,800   1,947,500  (32)%      12%       9,767,500  13,110,800  (26)% 
 Third party 
  sales           3,124,700   2,264,400   2,581,500   2,949,500   2,955,200   38%        6%      10,920,200   9,503,500   15% 
---------------  ----------  ----------  ----------  ----------  ----------  ---       ---       ----------  ----------  --- 
 
   (1)    Anglo American's attributable share of production. 

(2) Includes export primary production, secondary production sold into export markets, production sold domestically at export parity pricing, and pre-commercial production volumes from Navigation section of Khwezela.

   (3)    Anglo American's attributable share of Cerrejón production is 33.3%. 
 
 Coal, by operation                                                                 Q4 2019     Q4 2019                            2019 
  (tonnes)(1)                                                                           vs.         vs.                             vs. 
                          Q4          Q3          Q2          Q1          Q4        Q3 2019     Q4 2018                             2018 
                                                                                  ---------  ---------- 
                         2019        2019        2019        2019        2018                               2019        2018 
                                  ----------  ----------  ----------  ----------  ----  ---  -----  ---              ---------- 
 Metallurgical 
  Coal (Australia)     6,283,600   6,568,900   5,843,500   4,156,200   5,647,100    (4)%        11%      22,852,200  21,830,400     5% 
 Moranbah North        2,332,600   1,973,100   1,603,200     239,500   2,485,200    18%         (6)%      6,148,400   6,762,000    (9)% 
 Grosvenor             1,011,700   1,344,500   1,032,500   1,333,200     356,100   (25)%       184%       4,721,900   3,763,500    25% 
 Capcoal (incl. 
  Grasstree)           1,270,300   1,709,200   1,738,900   1,213,600   1,357,800   (26)%        (6)%      5,932,000   5,642,700     5% 
 Dawson                  842,500     703,200     774,000     633,300     666,100    20%         26%       2,953,000   2,393,400    23% 
 Jellinbah               826,500     838,900     694,900     736,600     781,900    (1)%         6%       3,096,900   3,268,800    (5)% 
 Thermal Coal 
  (Australia)            389,200     437,900     245,200     338,500     427,600   (11)%        (9)%      1,410,700   1,381,300     2% 
 Capcoal                 123,200      81,300      63,700      64,000      81,000    52%         52%         332,200     284,100    17% 
 Dawson                  222,900     323,200     145,200     263,300     320,500   (31)%       (30)%        954,500     986,100    (3)% 
 Jellinbah                43,100      33,400      36,300      11,200      26,100    29%         65%         124,000     111,100    12% 
--------------------  ----------  ----------  ----------  ----------  ----------  ----       -----       ----------  ----------  ---- 
 Total Australia 
  production           6,672,800   7,006,800   6,088,700   4,494,700   6,074,700    (5)%        10%      24,262,900  23,211,700     5% 
                      ----------  ----------  ----------  ----------  ----------  ----       -----       ----------  ----------  ---- 
 Thermal (South 
  Africa)(2) 
 Goedehoop             1,488,800   1,441,100   1,678,500   1,457,700   1,590,700     3%         (6)%      6,066,300   5,441,600    11% 
 Greenside             1,428,700   1,237,200   1,186,700     993,300   1,202,300    15%         19%       4,845,900   4,451,700     9% 
 Zibulo                1,351,000   1,294,100   1,394,600   1,319,600   1,681,500     4%        (20)%      5,359,300   6,376,800   (16)% 
 Khwezela(3)           1,530,300   1,433,400   1,463,300   1,333,800   1,522,000     7%          1%       5,760,800   5,532,100     4% 
 Mafube                  481,200     450,600     443,900     431,800     464,200     7%          4%       1,807,500   1,144,600    58% 
 Other(4)                      -           -           -           -           -        n/a         n/a           -   1,680,700       n/a 
 Eskom-tied                    -           -           -           -           -        n/a         n/a           -   2,825,500       n/a 
 operations(5) 
 Isibonelo               745,900   1,053,300   1,031,600   1,171,000   1,368,900   (29)%       (46)%      4,001,700   4,597,800   (13)% 
--------------------  ----------  ----------  ----------  ----------  ----------  ----       -----       ----------  ----------  ---- 
 Total South Africa 
  production           7,025,900   6,909,700   7,198,600   6,707,200   7,829,600     2%        (10)%     27,841,500  32,050,900   (13)% 
 Colombia 
  (Cerrejón)(6)   2,314,900   2,055,100   2,016,900   2,199,300   2,356,500    13%         (2)%      8,586,100  10,219,900   (16)% 
                      ----------  ----------  ----------  ----------  ----------  ----       -----       ----------  ----------  ---- 
 Total Coal 
  production          16,013,600  15,971,600  15,304,200  13,401,200  16,260,800     0%         (2)%     60,690,500  65,482,500    (7)% 
--------------------  ----------  ----------  ----------  ----------  ----------  ----       -----       ----------  ----------  ---- 
 
   (1)    Anglo American's attributable share of production. 

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

   (3)     Includes pre-commercial production volumes from Navigation section. 
   (4)     Other production comes from the recovery of saleable product from mineral residue deposits. 
   (5)     The sale of the Eskom-tied operations was completed on 1 March 2018. 
   (6)    Anglo American's attributable share of Cerrejón production is 33.3%. 

NICKEL

 
 Nickel (tonnes)                     Q4 2019          Q4 2019                          2019 
                                      vs. Q4           vs. Q3                      vs. 2018 
                       Q4      Q4       2018      Q3     2019 
                                   ---------          ------- 
                     2019    2018               2019             2019    2018 
                           ------  ---  ----          -------          ------ 
 Nickel            11,700  11,400    3%       11,300     4%    42,600  42,300     1% 
-----------------  ------  ------  ---   ---  ------  -------  ------  ------  ---- ----- 
 
 

Nickel production increased by 3% reflecting improved operational stability.

2020 Production Guidance

Production guidance for 2020 is unchanged at 42,000-44,000 tonnes.

 
 Nickel                                                              Q4 2019     Q4 2019                            2019 
                                                                         vs.         vs.                             vs. 
                      Q4         Q3         Q2       Q1       Q4     Q3 2019     Q4 2018                            2018 
                                                                  ----------  ---------- 
                    2019       2019       2019     2019     2018                               2019       2018 
                          ---------  ---------  -------  -------  -----  ---  -----  ---             --------- 
 Barro Alto 
 Ore mined       623,300  1,198,800  1,365,400  888,000  816,500    (48)%       (24)%     4,075,600  4,667,200   (13)% 
 Ore processed   609,200    612,000    519,000  525,400  607,300      0%          0%      2,265,700  2,264,200     0% 
 Ore grade 
  processed 
  - %Ni             1.73       1.66       1.67     1.67     1.74      4%         (1)%          1.69       1.71    (1)% 
 Production        9,500      9,200      7,600    7,700    9,100      3%          4%         33,900     33,500     1% 
---------------  -------  ---------  ---------  -------  -------  -----       -----       ---------  ---------  ---- 
 Codemin 
 Ore mined             -      1,300     39,000        -    8,400         n/a         n/a     40,300      8,400   380% 
 Ore processed   141,600    140,200    148,900  139,900  150,600      1%         (6)%       570,500    581,400    (2)% 
 Ore grade 
  processed 
  - %Ni             1.68       1.69       1.62     1.62     1.68     (1)%         0%           1.65       1.66    (1)% 
 Production        2,200      2,100      2,300    2,100    2,300      5%         (4)%         8,700      8,800    (1)% 
 Total Nickel 
  production(1)   11,700     11,300      9,800    9,800   11,400      4%          3%         42,600     42,300     1% 
                 -------  ---------  ---------  -------  -------  -----       -----       ---------  ---------  ---- 
 Sales volumes    12,500     10,600      8,800    9,800   12,600     18%         (1)%        41,700     43,100    (3)% 
---------------  -------  ---------  ---------  -------  -------  -----       -----       ---------  ---------  ---- 
 
 
   (1)     Excludes nickel production from the PGMs business unit. 

MANGANESE

 
 Manganese (000                           Q4 2019          Q4 2019                        2019 
  t)                                       vs. Q4           vs. Q3                    vs. 2018 
                             Q4     Q4       2018    Q3       2019 
                                        ---------        --------- 
                           2019   2018             2019              2019   2018 
                                 -----  -----            ----  ---         ----- 
 Manganese ore(1)           903    972     (7)%     910    (1)%     3,513  3,607      (3)% 
 Manganese alloys(1)(2)      32     38    (17)%      29     8%        137    157     (13)% 
------------------------  -----  -----  -----      ----  ----       -----  -----  ------ 
 
   (1)    Saleable production. 
   (2)    Production includes medium carbon ferro-manganese. 

Manganese ore production decreased by 7% to 902,900 tonnes, mainly due to mining fleet reliability issues in South Africa.

Manganese alloy production decreased by 17% to 31,600 tonnes due to a furnace outage in Australia.

 
 Manganese                                                        Q4 2019      Q4 2019                            2019 
 (tonnes)                                                             vs.          vs.                             vs. 
                      Q4       Q3       Q2       Q1       Q4      Q3 2019      Q4 2018                            2018 
                                                              -----------  ----------- 
                    2019     2019     2019     2019     2018                                 2019       2018 
                          -------  -------  -------  -------  ------  ---  ------  ---             --------- 
 Samancor 
 Manganese 
  ore(1)         902,900  910,400  826,100  874,000  971,900      (1)%         (7)%     3,513,400  3,606,500    (3)% 
 Manganese 
  alloys(1)(2)    31,600   29,200   41,200   35,200   38,000       8%         (17)%       137,200    156,800   (13)% 
---------------  -------  -------  -------  -------  -------  ------       ------       ---------  ---------  ---- 
 Samancor sales 
  volumes 
 Manganese ore   911,000  897,800  958,400  843,400  959,800       1%          (5)%     3,610,600  3,534,500     2% 
 Manganese 
  alloys          27,200   30,400   44,800   30,100   44,000     (11)%        (38)%       132,500    161,100   (18)% 
---------------  -------  -------  -------  -------  -------  ------       ------       ---------  ---------  ---- 
 
   (1)    Saleable production. 
   (2)    Production includes medium carbon ferro-manganese. 

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure increased by 15% to $92 million. Exploration expenditure increased by 52% to $44 million driven by increased drilling activities in Copper, PGMs and Kumba Iron Ore. Evaluation expenditure decreased by 4% to $49 million largely due to decreased works in Copper, partially offset by increased spend in Metallurgical Coal, Thermal Coal and De Beers.

CORPORATE ACTIVITY AND OTHER ITEMS

During the quarter, charges recognised within EBITDA relating to rehabilitation provisions are currently estimated to be $0.1 billion at De Beers and $0.1 billion at Copper.

REALISED PRICES SUMMARY

 
 Average realised prices               2019   2018   H2 2019   H1 2019          2019     H2 2019 
                                                                            vs. 2018      vs. H1 
                                                                                            2019 
                                      -----  -----  --------  --------  ------------ 
 De Beers 
 Consolidated average realised 
  price ($/ct)(1)                       137    171       121       151     (20)%        (20)% 
 Average price index(2)                 116    123       107       118      (6)%         (9)% 
 Copper (USc/lb)(3)                     273    283       268       280      (4)%         (4)% 
 PGMs 
 Platinum (US$/oz)                      861    871       886       831      (1)%          7% 
 Palladium (US$/oz)                   1,518  1,029     1,641     1,400      48%          17% 
 Rhodium (US$/oz)                     3,808  2,204     4,726     2,840      73%          66% 
 Basket price (US$/Pt oz)             2,819  2,219     2,930     2,685      27%           9% 
 Iron Ore - FOB prices 
 Kumba Export (US$/dmt)(4)               97     72        86       108      35%         (20)% 
 Minas-Rio (US$/wmt)(5)                  79     70        69        92      13%         (25)% 
 Coal 
 Australia 
 Metallurgical - HCC (US$/t)(6)         171    194       153       195     (12)%        (22)% 
 Metallurgical - PCI (US$/t)(6)         110    128        98       123     (14)%        (20)% 
 Thermal - Export (US$/t)                70    103        57        88     (32)%        (35)% 
 South Africa 
 Thermal - Export (US$/t)(7)             61     87        59        64     (30)%         (8)% 
 Thermal - Domestic (US$/t, FOR)(8)      14     19        13        15     (26)%        (13)% 
 Colombia 
 Thermal - Export (US$/t)                56     83        51        62     (33)%        (18)% 
 Nickel (USc/lb)                        624    588       672       563       6%          19% 
------------------------------------  -----  -----  --------  --------  ------   ---  ----- 
 

(1) Consolidated average realised price based on 100% selling value post-aggregation.

(2) Average of the De Beers price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.

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

(4) Average realised export basket price (FOB Saldanha). For 2019 and H2 2019 the realised prices differ to Kumba's standalone Q4 results due to sales to other Group companies.

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

(6) Weighted average metallurgical coal sales price achieved.

(7) Weighted average export thermal coal price achieved.

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

NOTES

   --     This Production Report for the quarter ended 31 December 2019 is unaudited. 

-- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.

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

   --     Please refer to page 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.

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                             Emma Waterworth 
  Pranill Ramchander                       emma.waterworth@angloamerican.com 
  pranill.ramchander@angloamerican.com     Tel: +44 (0)20 7968 8574 
  Tel: +27 (0)11 638 2592 
 
  Sibusiso Tshabalala 
  sibusiso.tshabalala@angloamerican.com 
  Tel: +27 (0)11 638 2175 
 

Forward-looking statements:

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resources), are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such third party information.

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world - safely, responsibly and sustainably.

As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal, nickel and manganese - we are the custodians of what are precious natural resources. We work together with our business partners and diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

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