Anglo American : Q1 2021 Production Report

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22 April, 2021

Anglo American plc Production Report for the first quarter ended 31 March 2021

Mark Cutifani, Chief Executive of Anglo American, said: 'Anglo American's portfolio is increasingly tilted towards future-enabling metals and minerals, with our recently proposed demerger of our thermal coal operations in South Africa moving us further in that direction. We are also making good progress in ensuring every operation plays its part towards a lower carbon world, with 100% renewable electricity supply now secured for all of our operations across Brazil, Chile and Peru.

'Q1 production was at 95%⁽¹⁾ of normal capacity, meeting strong customer demand despite some limited constraints at certain operations due to Covid-19. Production increased by 3%⁽¹⁾ driven by strong performances at the copper operations in Chile, and PGMs and iron ore in South Africa, more than offsetting plant maintenance downtime at Minas-Rio iron ore in Brazil and the temporary suspension at the Moranbah metallurgical coal operation in Australia.'

Q1 highlights

• Demerger of South Africa thermal coal operations, subject to shareholder approval on 5 May.
• Renewable electricity supply agreement signed for mains power at the Quellaveco copper project in Peru. All South American operations will have 100% renewable electricity supply from 2022.
• Copper production increased by 9% due to strong performances at both Los Bronces and Collahuasi.
• Platinum Group Metals (PGMs) production increased by 7%, with Mogalakwena production increasing by 17% due to higher throughput and grade.
• Iron ore production at Kumba increased by 10% driven by higher plant availability.
• Rough diamond sales continued to improve amid midstream restocking following an encouraging holiday selling season for diamond jewellery in major global markets.

Production	Q1 2021	Q1 2020	% vs. Q1 2020
Diamonds (Mct)(2)	7.2	7.8	(7)%
Copper (kt)(3)	160	147	9%
Platinum group metals (koz)(4)	1,021	955	7%
Iron ore (Mt)(5)	16.2	16.0	1%
Metallurgical coal (Mt)	3.3	3.8	(14)%
Thermal coal (Mt)(6)	4.9	6.2	(20)%
Nickel (kt)(7)	10.1	10.9	(7)%
Manganese ore (kt)	905	843	7%

^{(1) Production capacity excludes Moranbah and Grosvenor. Copper equivalent production is normalised to reflect the closure of the manganese alloy operations and excludes the impact of Grosvenor. Including the impact of Grosvenor, copper equivalent production increased 2% compared to Q1 2020.
(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 business unit 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. The comparative has been restated as Kumba previously reported on a dry basis.
(6) Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing from South Africa, and attributable export production (33.3%) from Colombia (Cerrejón).
(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).}

PRODUCTION OUTLOOK SUMMARY

2021 production guidance is summarised as follows:

	2021 production guidance(1)
Diamonds(2)	32-34 Mct
Copper(3)	640-680 kt
Platinum Group Metals(4)	4.2-4.6 Moz
Iron ore(5)	64.5-67.5 Mt
Metallurgical coal(6)	14-16 Mt (previously 18-20 Mt)
Thermal coal (reflecting proposed demerger)(7)	c.14 Mt (previously c.24 Mt)
Nickel(8)	42-44 kt

^{(1) Subject to the extent of further Covid-19 related disruption.
(2) Subject to trading conditions and on a 100% basis except for the Gahcho Kué joint venture, which is on an attributable 51% basis.
(3) Copper business unit only. On a contained-metal basis.
(4) 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.
(5) Wet basis. Kumba guidance was previously shown on a dry basis.
(6) Excludes thermal coal production in Australia. The revision to guidance reflects the suspension at Moranbah North as well as geotechnical conditions and delayed access to Grosvenor.
(7) Export South Africa including volumes sold domestically at export parity pricing and Colombia (33.3%) production. The revision to guidance reflects the proposed demerger of the South Africa thermal coal operations that, subject to shareholder approval, is expected on 4 June 2021 with the subsequent listing of the demerged business on 7 June 2021 (Export South Africa c.6 million tonnes for the period January to May (previously c.16 million tonnes for 2021); Colombia c.8 million tonnes (attributable share)).
(8) Nickel business unit only.}

REALISED PRICES

	Q1 2021	FY 2020
Copper (USc/lb)(1)	421	299
Platinum Group Metals
Platinum (US$/oz)	1,142	880
Palladium (US$/oz)	2,424	2,214
Rhodium (US$/oz)	20,224	10,628
Basket price (US$/PGM oz)(2)	2,219	2,035
Iron Ore - FOB prices(3)	177	111
Kumba Export (US$/wmt)(4)	180	113
Minas-Rio (US$/wmt)(5)	170	107
Metallurgical Coal
HCC (US$/t)(6)	113	112
PCI (US$/t)(6)	94	84
Thermal Coal
Australia (US$/t)(6)	76	58
South Africa - Export (US$/t)(7)	74	57
Colombia (US$/t)	58	46
Nickel (USc/lb)	747	563

^{(1) The realised price for Copper excludes third party sales volumes.
(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. The comparative has been restated as Kumba is now reported on a wet basis (previously dry basis).
(4) 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. Average realised export basket price (FOB Saldanha) on a dry basis is $183/t (FY 2020: $115/t).
(5) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).
(6) Weighted average coal sales price achieved at managed operations.
(7) Weighted average export thermal coal price achieved.}

NOTES

• This Production Report for the quarter ended 31 March 2021 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 18 for information on forward-looking statements.

In this document, references to 'Anglo American', the 'Anglo American Group', the 'Group', 'we', 'us', and 'our' are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

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For further information, please contact:

Media	Investors
UK	UK
James Wyatt-Tilby	Paul Galloway
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Tel: [phone]	Tel: [phone]
Marcelo Esquivel	Robert Greenberg
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: [phone]
Katie Ryall	Emma Waterworth
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: [phone]
South Africa
Nevashnee Naicker
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Tel: [phone]
Sibusiso Tshabalala
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Notes to editors:

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

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

Forward-looking statements and third-party information:

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental, social and corporate governance goals and aspirations, 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, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, 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 courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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