Anglo American : PRODUCTION REPORT FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

27 January 2022

Anglo American plc

Production Report for the fourth quarter ended 31 December 2021

Mark Cutifani, Chief Executive of Anglo American, said: "Our production was broadly flat compared to Q4 of 2020, with our operating levels at approximately 95%(1) of normal capacity through the year, largely due to the ongoing Covid related effects on the operating environment. Production in the fourth quarter benefited from higher rough diamond production at De Beers, a return to pre-Covid production levels at our open cut metallurgical coal mines and improved mining performance at Amandelbult which resulted in higher metal in concentrate production from our PGMs business. At our copper operations, Collahuasi's production increased as a result of strong plant performance and planned maintenance in the comparable period of 2020.

"As we move into 2022, we are pleased with the construction progress at Quellaveco, our new copper mine in Peru. We are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of copper concentrate in the middle of this year. In the first quartile of the cost curve, we expect Quellaveco to produce 120,000-160,000 tonnes of copper production in 2022 and to average 300,000 tonnes per year for the first ten years at full production."

Q4 2021 highlights

• Rough diamond production increased by 15%, principally from Jwaneng in Botswana as well as in Namibia, reflecting planned higher production in response to strong consumer demand.
• Our Platinum Group Metals (PGMs) operations more than doubled refined production in the quarter, and resulted in a record full year refined production of 5.1Moz. This has substantially reduced work-in-progress inventory, and resulted in a 62% increase in co-product nickel production for the full year to 22,300 tonnes. Together with our primary nickel output, group total nickel production reached 64,000 tonnes in 2021, a 12% increase year-on-year.
• Metallurgical coal production increased by 5%, reflecting an increase in production at the Dawson open cut operation, partially offset by Moranbah which continues to be affected by areas of challenging geology.
• Our copper operations' full year production was in line with the prior year, mitigating the ongoing water challenges from the severe drought conditions.
• Full year iron ore production increased by 3%, although lower in the quarter, despite unplanned maintenance at Minas- Rio and third party rail performing below planned levels affecting Kumba's production for the year.
• Our 2021 Climate Change Report was published in October, setting out clear pathways to carbon neutral operations by 2040 and our ambition to reduce Scope 3 emissions by 50%, also by 2040.
• Completed sale of our 33% interest in Cerrejón on 11 January 2022: final stage of our exit from thermal coal operations.

Production	Q4 2021	Q4 2020	% vs. Q4 2020	2021	2020	% vs. 2020
Diamonds (Mct)(2)	7.7	6.7	15%	32.3	25.1	29%
Copper (kt)(3)	161	168	(4)%	647	647	0%
Platinum group metals (koz)(4)	1,103	1,076	3%	4,299	3,809	13%
Iron ore (Mt)(5)	15.1	16.2	(7)%	63.8	61.7	3%
Metallurgical coal (Mt)	4.4	4.2	5%	14.9	16.8	(11)%
Nickel (kt)(6)	10.6	11.7	(9)%	41.7	43.5	(4)%
Manganese ore (kt)	835	942	(11)%	3,683	3,520	5%

1. Production capacity excludes Grosvenor. Q4 year-on-year copper equivalent production decreased 1%, this is normalised to reflect the demerger of the South Africa thermal coal operations, the sale of our interest in Cerrejón and the closure of the manganese alloy operations.
2. De Beers Group 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 operations in Chile only (excludes copper production from the Platinum Group Metals business unit).
4. Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.
5. Wet basis.
6. Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).

Anglo American plc

17 Charterhouse Street London EC1N 6RA United Kingdom

Registered office as above. Incorporated in England and Wales under the Companies Act 1985.

Registered Number: 3564138 Legal Entity Identifier: 549300S9XF92D1X8ME43

Production Outlook Summary

2022 production guidance is summarised as follows:

	2022 production guidance(1)
Diamonds(2)	30-33 Mct
Copper(3)	680-760 kt
Platinum Group Metals(4)	4.1-4.5 Moz
Iron Ore(5)	63-67 Mt
Metallurgical Coal(6)	20-22 Mt
Nickel(7)	40-42 kt

1. Subject to the extent of further Covid-19 related disruption.
2. On a 100% basis, except for the Gahcho Kué joint venture, which is on an attributable 51% basis. Subject to trading conditions.
3. On a contained-metal basis. Copper operations in Chile (560-600 kt) and Peru (120-160 kt). Copper Chile subject to water availability.
4. 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2022 metal in concentrate production is expected to be 1.9-2.1 million ounces of platinum, 1.3-1.4 million ounces of palladium and 0.9-1.0 million ounces of other PGMs and gold.
5. Wet basis. Iron ore operations at Minas-Rio in Brazil (24-26 Mt) and at Kumba (39-41 Mt) in South Africa. Kumba is subject to the third party rail and port performance.
6. Excludes thermal coal by-product from Australia. Subject to regulatory approval to restart the Grosvenor longwall mining operations.
7. Nickel operations in Brazil only.

Realised Prices

	FY 2021	FY 2020	H2 2021	H1 2021	2021 vs. 2020	H2 2021 vs. H1
	2021
De Beers
Consolidated average realised price	146	133	161	135	10 %	19 %
($/ct)(1)
Average price index(2)	115	104	122	109	11 %	12 %
Copper (USc/lb)(3)	453	299	447	460	52 %	(3)%
Platinum Group Metals
Platinum (US$/oz)(4)	1,083	880	1,008	1,170	23 %	(14)%
Palladium (US$/oz)(4)	2,439	2,214	2,267	2,641	10 %	(14)%
Rhodium (US$/oz)(4)	19,613	10,628	16,019	24,377	85 %	(34)%
Basket price (US$/PGM oz)(5)	2,761	2,035	2,642	2,884	36 %	(8)%
Iron Ore - FOB prices(6)	157	111	106	210	41 %	(50)%
Kumba Export (US$/wmt)(7)	161	113	109	216	42 %	(50)%
Minas-Rio (US$/wmt)(8)	150	107	102	200	40 %	(49)%
Metallurgical Coal - HCC (US$/t)(9)	211	112	280	117	88 %	139 %
Nickel (USc/lb)	773	563	819	721	37 %	14 %

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. The realised price is excluding trading.
5. Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).
6. Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as Kumba previously reported on a dry basis.
7. Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. FY average realised export basket price (FOB Saldanha) on a dry basis is $164/t (2020: $115/t) and this was higher than the dry 62% Fe benchmark price of $139/t (FOB South Africa, adjusted for freight).
8. Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).
9. Weighted average coal sales price achieved at managed operations. Metallurgical Coal PCI (US$/t) FY 2021 was US$138/t and FY 2020 was US$84/t, resulting in a 64% movement for the year. H2 2021 was US$150/t and H1 2021 was US$103/t, resulting in a 46% movement. Australian Thermal Coal by-product (US$/t) FY 2021 was US$120/t and FY 2020 was US$58/t, resulting in a 107% movement for the year.H2 2021 was US$173/t and H1 2021 was US$87/t , resulting in a 99% movement.

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De Beers

(1)	Q4	Q4	Q4 2021	Q3	Q4 2021			2021 vs.
De Beers (000 carats)	2021	2020	vs.		2021	vs.	2021	2020	2020
	Q4 2020	Q3 2021
Botswana	5,236	4,263	23	%	6,403	(18)%	22,326	16,559	35	%
Namibia	392	337	16	%	399	(2)%	1,467	1,448	1	%
South Africa	1,292	1,287	0	%	1,577	(18)%	5,306	3,771	41	%
Canada	771	776	(1)%	797	(3)%	3,177	3,324	(4)%
Total carats recovered	7,691	6,663	15 %	9,176	(16)%	32,276	25,102	29 %

Rough diamond production increased by 15% to 7.7 million carats, reflecting planned higher production of rough diamonds to meet continued strong levels of demand.

In Botswana, production increased by 23% to 5.2 million carats primarily as a result of the planned treatment of higher grade ore at Jwaneng, partly offset by lower production at Orapa due to the planned closure of Plant 1 in late 2020.

Namibia production increased by 16% to 0.4 million carats reflecting a reduction in the scheduled maintenance time for the marine fleet.

South Africa production was in line with the prior year at 1.3 million carats, as planned plant maintenance in Q4 2021 was offset by processing of higher grade ore.

Production in Canada was broadly flat.

Demand for rough diamonds remained robust, with positive midstream sentiment and strong demand for diamond jewellery continuing over the holiday period, particularly in the key US consumer market. Rough diamond sales totalled

7.7 million carats (7.2 million carats on a consolidated basis)(2) from three Sights, compared with 6.9 million carats (6.4 million carats on a consolidated basis)(2) from two Sights in Q4 2020, and 7.8 million carats (7.0 million carats on a consolidated basis)(2) from two Sights in Q3 2021.

The full year consolidated average realised price increased by 10% to $146/ct (2020: $133/ct), primarily as a result of positive market sentiment which gave rise to a strengthening of the rough price index.

2022 Guidance

Production guidance(1) for 2022 is 30-33 million carats (100% basis), subject to trading conditions and the extent of further Covid-19 related disruptions.

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 the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

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De Beers(1)	Q4	Q3	Q2	Q1	Q4	Q4 2021	Q4 2021			2021 vs.
					vs.		vs.
	2021	2021	2021	2021	2020	Q4 2020	Q3 2021	2021	2020	2020
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng	2,679	3,954	3,169	3,091	1,452	85	%	(32)%	12,893	7,538	71	%
Orapa(2)	2,557	2,449	2,558	1,869	2,811	(9)%	4 %	9,433	9,021	5	%
Total Botswana	5,236	6,403	5,727	4,960	4,263	23 %	(18)%	22,326	16,559	35 %
Debmarine Namibia	330	309	249	249	256	29	%	7 %	1,137	1,125	1	%
Namdeb (land operations)	62	90	89	89	81	(23)%	(31)%	330	323	2	%
Total Namibia	392	399	338	338	337	16 %	(2)%	1,467	1,448	1 %
Venetia	1,292	1,577	1,276	1,161	1,287	0	%	(18)%	5,306	3,771	41	%
Total South Africa	1,292	1,577	1,276	1,161	1,287	0 %	(18)%	5,306	3,771	41 %
Gahcho Kué (51% basis)	771	797	899	710	776	(1)%	(3)%	3,177	3,324	(4)%
Total Canada	771	797	899	710	776	(1)%	(3)%	3,177	3,324	(4)%
Total carats recovered	7,691	9,176	8,240	7,169	6,663	15 %	(16)%	32,276	25,102	29 %
Sales volumes
Total sales volume (100)% (Mct)(3)	7.7	7.8	7.3(4)	13.5(4)	6.9	12	%	(1)%	36.3	22.7	60	%
Consolidated sales volume (Mct)(3)	7.2	7.0	6.5(4)	12.7(4)	6.4	13	%	3 %	33.4	21.4	56	%
Number of Sights (sales cycles)	3	2	2(4)	3(4)	2				10	9(5)

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 the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
4. Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.
5. Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.

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Copper

	Q4	Q4	Q4 2021	Q3	Q4 2021				2021 vs.
Copper(1) (tonnes)			vs.		vs.
	2021	2020	Q4 2020	2021	Q3 2021	2021	2020	2020
Los Bronces	84,900	95,900	(11)%	79,600	7	%	327,700	324,700	1	%
Collahuasi (44% share)	66,000	59,200	11 %	65,300	1	%	277,200	276,900	0	%
El Soldado	9,800	12,700	(23)%	11,600	(16)%	42,300	45,800	(8)%
Total Copper	160,700	167,800	(4)%	156,500	3 %	647,200	647,400	0 %

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

Copper production in the fourth quarter decreased by 4% to 160,700 tonnes. Planned lower grades at Los Bronces were partially offset by strong plant performance at Collahuasi.

Production from Los Bronces decreased by 11% to 84,900 tonnes due to planned lower grades (0.70% vs 0.77%) and lower copper recovery (80.5% vs 83.6%).

At Collahuasi, attributable production increased by 11% to 66,000 tonnes driven by higher throughput as a result of strong plant performance in the quarter and the planned maintenance in Q4 2020.

Production from El Soldado decreased by 23% to 9,800 tonnes due to lower grades (0.63% vs. 0.84%) in accordance with the mine plan.

2021 sales volumes were 641,100 tonnes at an average realised price of 453c/lb, which is higher than the average LME price of 423c/lb, reflecting the benefit of provisional pricing adjustments throughout the year. At 31 December, 162,361 tonnes of copper were provisionally priced at 442c/lb.

Chile´s central zone continues to face severe drought conditions. While production impacts during 2021 have been mitigated by the successful implementation of water management initiatives, record low levels of precipitation during the year have reduced water availability for Los Bronces in the first half of 2022 and have been factored into production guidance.

2022 Guidance

Production guidance for 2022 is 680,000-760,000 tonnes, (Chile 560,000-600,000 tonnes; Peru 120,000-160,000 tonnes). Production is subject to the extent of further Covid-19 related disruptions and in Chile, to water availability.

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