Anglo American plc (the "Company")

Registered office: 17 Charterhouse Street London EC1N 6RA United Kingdom

Registered number: 3564138 (incorporated in England and Wales)

Legal Entity Identifier: 549300S9XF92D1X8ME43

ISIN: GBOOB1XZS820

JSE Share Code: AGL

NSX Share Code: ANM

NEWS RELEASE

21 July 2022

Production Report for the second quarter ended 30 June 2022

Duncan Wanblad, Chief Executive of Anglo American, said: "Our production performance started to pick up in the

second quarter of 2022, with operational momentum and our focus on asset resilience positioning us well for a stronger second half of the year. Full year production guidance is unchanged for PGMs, copper and iron ore, increased for diamonds and decreased for steelmaking coal due to longwall ramp-up timing. Overall for the second quarter, production was 9%(1) lower compared with the same quarter in 2021, primarily due to expected lower grades and water availability in Copper, ramp-up of the Aquila longwall in Steelmaking Coal and planned maintenance at the Minas-Rio iron ore operation.

"Our newly commissioned Quellaveco project in Peru delivered first copper concentrate at the start of July and will contribute to our copper production in the second half. This marks a major milestone in our delivery of this world-class long life asset, on time and on budget - testament to the incredible efforts of our workforce and wider stakeholders through the effects of a global pandemic. Quellaveco is expected to add around 10% to our global output once fully operational, central to the margin-enhancing organic growth we are delivering in future-enabling metals and minerals over the next decade.

"As we strive to further enhance Anglo American's investment case, we are committed to delivering many of the raw materials that are critical to the decarbonisation of global energy and transport systems and to do so sustainably, in line with the evolving expectations of our stakeholders. We are progressing towards our stretching sustainability targets on all fronts. During the quarter, we unveiled the world's largest hydrogen-powered haul truck, part of our nuGen(TM) Zero Emission Haulage Solution. This world-first technology at such scale is a vital step towards our commitment to carbon neutrality across our operations by 2040. Our agreement to combine nuGen(TM) with our engineering partner, First Mode, is designed to accelerate the commercialisation and deployment of this technology across the mining industry and other transport applications."

Q2 2022 highlights

  • Rough diamond production decreased by 4%, reflecting lower grades in Canada and Botswana. Production guidance
    is increased to 32-34 million carats (previously 30-33 million carats) due to robust demand and strong year-to-date operational performance.
  • Metal in concentrate production from our Platinum Group Metals (PGMs) operations was broadly flat, with strong performances at Unki and Mototolo offsetting planned lower grades at Mogalakwena. Unit cost guidance is reduced to c.$950/PGM ounce (previously c.$970/PGM ounce), reflecting the weaker South African rand.
  • Copper production decreased by 21% due to planned lower grades and water availability.
  • Iron ore production decreased by 8% after a safety intervention at Kumba's Kolomela mine, as well as planned maintenance at Minas-Rio.
  • Steelmaking coal production decreased by 12% as the replacement Aquila longwall ramped up following the planned
    end of production from Grasstree, as well as high rainfall impacting the open pit operations. Full year guidance is
    revised to 15-17 million tonnes (previously 17-19 million tonnes) and unit cost revised to c.$110/tonne (previously c.$105/tonne).

Production

Q2 2022

Q2 2021

% vs. Q2 2021

H1 2022

H1 2021

% vs. H1 2021

Diamonds (Mct)(2)

7.9

8.2

(4)%

16.9

15.4

10%

Copper (kt)(3)

134

170

(21)%

273

330

(17)%

Nickel (kt)(4)

10.3

10.6

(3)%

19.6

20.7

(5)%

Platinum group metals (koz)(5)

1,032

1,058

(2)%

1,988

2,079

(4)%

Iron ore (Mt)(6)

14.4

15.7

(8)%

27.5

31.9

(14)%

Steelmaking coal (Mt)

2.6

3.0

(12)%

4.8

6.2

(22)%

Manganese ore (kt)

980

941

4%

1,783

1,845

(3)%

  1. Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations and the sale of our shareholding in Cerrejon.
  1. De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
  2. Contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the Platinum Group Metals business unit).
  3. Reflects nickel production from the Nickel operations in Brazil only (excludes nickel 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.

Production and unit cost guidance summary

Diamonds(2)

2022 production guidance(1)

2022 unit cost guidance(1)

32-34 Mct

c.$65/ct

Copper(3)

(previously

30-33 Mct)

c.147c/lb

660-750 kt

Nickel(4)

40-42

kt

c.495c/lb

Platinum Group Metals(5)

3.9-4.3 Moz

c.$950/oz

Iron Ore(6)

60-64

Mt

(previously c.$970/PGM oz)

c.$40/t

Steelmaking Coal(7)

15-17

Mt

c.$110/t

(previously 17-19 Mt)

(previously c.$105/t)

  1. Subject to the extent of further Covid-19 related disruption. Unit costs exclude royalties, depreciation and include direct support costs only. FX rates for H2 2022 unit costs: ~17 ZAR:USD, ~1.5 AUD:USD, ~5.5 BRL:USD, ~1,000 CLP:USD, ~4 PEN:USD (previously ~15 ZAR:USD, ~1.3 AUD:USD, ~5.0 BRL:USD, ~800 CLP:USD, ~4 PEN:USD).
  2. Production on a 100% basis, except for the Gahcho Kue joint venture, which is on an attributable 51% basis, subject to trading conditions. Venetia continues to transition to underground operations during 2022, with ramp-up expected from 2023. Unit cost is based on De Beers' share of production.
  3. Copper business unit only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: 560-600 kt and
    Peru: 100-150 kt. Copper Chile subject to water availability. Peru subject to progress on ramp-up of operations. Unit cost total is a weighted
    average based on the mid-point of production guidance. Chile: c.150c/lb, subject to the impact of water availability on production volumes.
    Peru: c.135c/lb, based on progressing the ramp-up of production volumes.
  4. Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis as a co-product from the PGM operations.
  5. 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 FY2021 results presentation slide 38 for indicative split of own mined volumes. 2022 metal in concentrate production is expected to be 1.8-2.0 Moz of platinum, 1.2-1.3 Moz of palladium and 0.9-1.0 Moz of other PGMs and gold. 5E + gold
    refined production is expected to be 4.0-4.4 Moz, subject to the potential impact of Eskom load-shedding. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.
  6. Wet basis. Total iron ore is the sum of operations at Minas-Rio in Brazil and Kumba in South Africa. Minas-Rio:22-24 Mt and Kumba: 38-40 Mt. Kumba is subject to the third party rail and port performance, as well as weather-related disruptions. Unit cost total is a weighted average based on the mid-point of production guidance. Minas-Rio: c.$32/t and Kumba: c.$44/t.
  7. Production excludes thermal coal by-product from Australia. FOB unit cost comprises managed operations and excludes royalties and study costs.

Realised prices

De Beers

H1 2022

H1 2021

H1 2022 vs H1 2021

213

135

58%

Consolidated average realised price ($/ct)(1)

Average price index(2)

140

109

28%

Copper (USc/lb)(3)

401

460

(13)%

Nickel (USc/lb)

1,159

721

61%

Platinum Group Metals

964

1,170

(18)%

Platinum (US$/oz)(4)

Palladium (US$/oz)(4)

2,147

2,641

(19)%

Rhodium (US$/oz)(4)

17,131

24,377

(30)%

Basket price (US$/PGM oz)(5)

2,671

2,884

(7)%

Iron Ore - FOB prices(6)

135

210

(36)%

Kumba Export (US$/wmt)(7)

135

216

(38)%

Minas-Rio (US$/wmt)(8)

134

200

(33)%

Steelmaking Coal - HCC (US$/t)(9)

407

117

248%

Steelmaking Coal - PCI (US$/t)(9)

322

103

213%

  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 6-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.
  1. The realised price excludes trading.
  2. 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).
  3. Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.
  4. Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $137/t (H1 2021: $220/t) and this was higher than the dry 62% Fe benchmark price of $120/t (FOB South Africa, adjusted for freight).
  5. Average realised export basket price (FOB Acu) (wet basis as product is shipped with ~9% moisture).
  6. Weighted average coal sales price achieved at managed operations. Australian thermal coal by-product is US$280/t and H1 2021 was US$87/t, resulting in a 222% increase.

De Beers

De Beers(1) (000 carats)

Q2

Q2

Q2 2022 vs.

Q1

Q2 2022 vs.

H1

H1

H1 2022 vs.

Botswana

2022

2021

Q2 2021

2022

Q1 2022

2022

2021

H1 2021

5,521

5,727

(4)%

6,184

(11)%

11,705

10,687

10%

Namibia

565

338

67%

451

25%

1,016

676

50%

South Africa

1,220

1,276

(4)%

1,696

(28)%

2,916

2,437

20%

Canada

643

899

(28)%

604

6%

1,247

1,609

(22)%

Total carats recovered

7,949

8,240

(4)%

8,935

(11)%

16,884

15,409

10%

Rough diamond production decreased by 4% to 7.9 million carats, primarily due to the treatment of lower grade ore at operations in both Canada and Botswana.

In Botswana, production decreased by 4% to 5.5 million carats due to lower grade ore being processed at both Jwaneng and Orapa.

Namibia production increased by 67% to 0.6 million carats, primarily driven by continued strong performance from the

Benguela Gem since the early delivery of the new diamond recovery vessel in Q1 2022.

South Africa production decreased by 4% to 1.2 million carats due to lower tonnes treated.

Production in Canada decreased by 28% to 0.6 million carats due to treating lower grade ore, unscheduled plant maintenance and the impact of Covid-19 related absenteeism.

Strong demand for rough diamonds continued into the second quarter, with rough diamond sales totalling 9.4 million

carats (8.3 million carats on a consolidated basis)(2) from three Sights, compared with 7.3 million carats (6.5 million carats on a consolidated basis)(2) from two Sights in Q2 2021 and 7.9 million carats (7.0 million carats on a consolidated basis)(2) from two Sights in Q1 2022, both of which benefited from strong demand recovery following the impact of

Covid-19 in 2020. While consumer demand for natural diamonds continued to be robust in the first half, a deterioration of global macro-economic conditions and reduced consumer spending could impact demand for diamond jewellery.

Despite this, the combination of ongoing sanctions against Russia, decisions from a number of US-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds, and continued development of

provenance initiatives (such as the Tracr(TM) blockchain platform) has the potential to underpin continued robust demand for De Beers' rough diamonds.

The H1 2022 consolidated average realised price increased by 58% to $213/ct (H1 2021: $135/ct), driven by a larger proportion of higher value rough diamonds sold, as well as higher prices. The rough price index increased by 28% compared to H1 2021, reflecting positive consumer demand for diamond jewellery as well as tightness in inventories across the diamond value chain.

2022 Guidance

Production guidance(1) for 2022 is increased to 32-34 million carats (previously 30-33 million carats) (100% basis), subject to trading conditions and the extent of further Covid-19 related disruptions.

Unit cost guidance for 2022 is unchanged at c.$65/ct.

  1. De Beers Group production is on a 100% basis, except for the Gahcho Kue 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).

De Beers(1)

Q2

Q1

Q4

Q3

Q2

Q2 2022

Q2

2022

H1

H1

H1 2022

vs.

Q1

vs.

vs.

Carats recovered (000 carats)

2022

2022

2021

2021

2021

Q2 2021

2022

2022

2021

H1 2021

100% basis (unless stated)

3,120

3,632

2,679

3,954

3,169

(2)%

(14)%

6,752

6,260

8%

Jwaneng

Orapa(2)

2,401

2,552

2,557

2,449

2,558

(6)%

(6)%

4,953

4,427

12%

Total Botswana

5,521

6,184

5,236

6,403

5,727

(4)%

(11)%

11,705

10,687

10%

Debmarine Namibia

488

375

330

309

249

96%

30%

863

498

73%

Namdeb (land operations)

77

76

62

90

89

(13)%

1%

153

178

(14)%

Total Namibia

565

451

392

399

338

67%

25%

1,016

676

50%

Venetia

1,220

1,696

1,292

1,577

1,276

(4)%

(28)%

2,916

2,437

20%

Total South Africa

1,220

1,696

1,292

1,577

1,276

(4)%

(28)%

2,916

2,437

20%

Gahcho Kue (51% basis)

643

604

771

797

899

(28)%

6%

1,247

1,609

(22)%

Total Canada

643

604

771

797

899

(28)%

6%

1,247

1,609

(22)%

Total carats recovered

7,949

8,935

7,691

9,176

8,240

(4)%

(11)%

16,884

15,409

10%

Sales volumes

9.4(4)

7.9(4)

7.7

7.8

7.3

29%

19%

17.3

20.8

(17)%

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

Consolidated sales volume (Mct)(3)

8.3(4)

7.0(4)

7.2

7.0

6.5

28%

19%

15.3

19.2

(20)%

Number of Sights (sales cycles)

3(4)

2(4)

3

2

2

5

5

  1. De Beers Group production is on a 100% basis, except for the Gahcho Kue 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 the completion of Sight 3 in April 2022, the sales were recognised in Q2 2022.

Copper

Copper(1) (tonnes)

Q2

Q2

Q2 2022 vs.

Q1

Q2 2022 vs.

H1

H1

H1 2022 vs.

Los Bronces

2022

2021

Q2 2021

2022

Q1 2022

2022

2021

H1 2021

64,300

84,400

(24)%

65,400

(2)%

129,700

163,200

(21)%

Collahuasi (44% share)

62,100

74,300

(16)%

65,700

(5)%

127,800

145,900

(12)%

El Soldado

7,500

11,000

(32)%

8,400

(11)%

15,900

20,900

(24)%

Total Copper

133,900

169,700

(21)%

139,500

(4)%

273,400

330,000

(17)%

  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).

Chile - Copper production decreased by 21% to 133,900 tonnes due to planned lower grades and lower water availability.

Production from Los Bronces decreased by 24% to 64,300 tonnes due to planned lower grades (0.57% vs 0.68%) as well

as lower ore processed (12.0 million tonnes vs 13.2 million tonnes) due to the impact of expected low water availability.

At Collahuasi, attributable production decreased by 16% to 62,100 tonnes driven by planned lower grades (1.10% vs 1.29%).

Production from El Soldado decreased by 32% to 7,500 tonnes due to planned lower grades (0.50% vs 0.75%).

Chile's central zone continues to face severe drought conditions, with the two years to June 2022 being the driest since records began, and the outlook continues to remain very dry. Various management initiatives to improve water efficiency and secure alternative sources of water continue to partly mitigate the impact on production.

The H1 2022 average realised price of 401c/lb, includes 145,900 tonnes of copper provisionally priced on 30 June at an average of 374 c/lb.

Peru - First production of copper concentrate from the Quellaveco project was achieved at the start of Q3 2022, marking a major milestone ahead of receiving final regulatory clearance for commercial operations to begin.

2022 Guidance

Production guidance for 2022 is unchanged at 660,000-750,000 tonnes (Chile 560,000-600,000 tonnes; Peru

100,000-150,000 tonnes). Production is subject to the extent of further Covid-19 related disruptions, water availability in Chile and, in Peru, progress on ramp-up of operations.

Unit cost guidance for 2022 is unchanged at c.147c/lb (Chile c.150c/lb; Peru c.135c/lb). This guidance is subject to the impact of water availability on production volumes in Chile, and progressing the ramp-up of production volumes in Peru.

Copper(1)

Q2

Q1

Q4

Q3

Q2

Q2 2022

Q2 2022

H1

H1

H1 2022

vs.

vs.

vs.

Los Bronces mine(2)

2022

2022

2021

2021

2021

Q2 2021

Q1 2022

2022

2021

H1 2021

13,256,600

8,976,100

11,056,800

10,512,600

11,403,100

16%

48%

22,232,700

22,215,500

0%

Ore mined

Ore processed - Sulphide

11,992,800

11,142,600

13,293,500

12,715,400

13,168,200

(9)%

8%

23,135,400

24,688,600

(6)%

Ore grade processed -

0.57

0.62

0.70

0.70

0.68

(16)%

(8)%

0.59

0.70

(15)%

Sulphide (% TCu)(3)

Production - Copper cathode

8,600

10,100

10,400

9,800

9,800

(12)%

(15)%

18,700

19,700

(5)%

Production - Copper in

55,700

55,300

74,500

69,800

74,600

(25)%

1%

111,000

143,500

(23)%

concentrate

Total production

64,300

65,400

84,900

79,600

84,400

(24)%

(2)%

129,700

163,200

(21)%

(Anglo American share 44%)

22,025,700

22,004,800

23,940,600

30,327,200

26,943,000

(18)%

0%

44,030,500

48,163,300

(9)%

Ore mined

Ore processed - Sulphide

14,337,800

13,841,700

13,979,000

12,926,400

14,334,300

0%

4%

28,179,500

28,775,900

(2)%

Ore grade processed -

1.10

1.18

1.18

1.28

1.29

(14)%

(6)%

1.14

1.27

(10)%

Sulphide (% TCu)(3)

Production - Copper in

141,000

149,400

150,100

148,300

168,800

(16)%

(6)%

290,400

331,600

(12)%

concentrate

Anglo American's 44% share of

62,100

65,700

66,000

65,300

74,300

(16)%

(5)%

127,800

145,900

(12)%

copper production for Collahuasi

El Soldado mine(2)

948,700

611,100

975,500

1,697,800

1,796,600

(47)%

55%

1,559,800

3,505,200

(56)%

Ore mined

Ore processed - Sulphide

1,914,100

1,809,700

1,909,400

1,952,000

1,834,800

4%

6%

3,723,800

3,589,900

4%

Ore grade processed -

0.50

0.57

0.63

0.73

0.75

(33)%

(12)%

0.54

0.73

(27)%

Sulphide (% TCu)(3)

Production - Copper in

7,500

8,400

9,800

11,600

11,000

(32)%

(11)%

15,900

20,900

(24)%

concentrate

Chagres Smelter(2)

20,600

30,900

29,200

30,200

25,400

(19)%

(33)%

51,500

48,600

6%

Ore smelted(4)

Production

24,900

25,100

28,400

29,200

24,600

1%

(1)%

50,000

47,200

6%

Total copper production(5)

133,900

139,500

160,700

156,500

169,700

(21)%

(4)%

273,400

330,000

(17)%

Total payable copper production

128,500

134,100

154,100

150,100

162,600

(21)%

(4)%

262,600

316,900

(17)%

Total sales volumes

132,800

132,100

173,400

162,300

157,700

(16)%

1%

264,900

305,400

(13)%

Total payable sales volumes

127,500

126,900

166,200

153,900

149,200

(15)%

0%

254,400

292,400

(13)%

Third party sales(6)

150,900

65,300

138,500

136,200

82,800

82%

131%

216,200

156,800

38%

  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. Copper contained basis.
  5. Total copper production includes Anglo American's 44% interest in Collahuasi.
  6. Relates to sales of copper not produced by Anglo American operations.

Nickel

Nickel (tonnes)

Q2

Q2

Q2 2022 vs.

Q1

Q2 2022 vs.

H1

H1

H1 2022 vs.

Nickel

2022

2021

Q2 2021

2022

Q1 2022

2022

2021

H1 2021

10,300

10,600

(3)%

9,300

11%

19,600

20,700

(5)%

Nickel production decreased by 3% to 10,300 tonnes, primarily due to expected lower ore grades, as a result of licensing delays that are now resolved.

2022 Guidance

Production guidance for 2022 is unchanged at 40,000-42,000 tonnes, subject to the extent of further Covid-19 related disruptions.

2022 unit cost guidance is unchanged at c.495c/lb.

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Anglo American plc published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 06:33:01 UTC.