REG - Anglo American PLC - Anglo American full year 2024 Results
20/02/2025 07:15
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RNS Number : 7743X Anglo American PLC 20 February 2025
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YEAR END FINANCIAL REPORT
for the year ended 31 December 2024
20 February 2025
Anglo American Preliminary Results 2024
Strong operational and cost performance - portfolio simplification and growth
progress well on track
• Sale of steelmaking coal and nickel businesses agreed - to generate
up to $5.3 billion in gross cash proceeds
• Underlying EBITDA* of $8.5 billion - EBITDA margin* stable at 30%,
despite 10% lower prices and challenging rough diamond trading conditions,
supported by flat unit costs and other major cost efficiencies
• $1.3 billion run rate cost savings achieved in 2024, ahead of
schedule
• Focus on cash conversion* delivers sustaining attributable free cash
flow* of $1.7 billion, (2023: $0.1 billion)
• Loss attributable to equity shareholders of $3.1 billion -
recognising net impairments of $3.8 billion
• Net debt* flat at $10.6 billion - at 1.3x EBITDA, prior to receipt
of further divestment proceeds during 2025
• $0.8 billion total dividends for FY 2024, equal to $0.64 per share,
consistent with our 40% payout policy
Duncan Wanblad, Chief Executive of Anglo American, said: "We are fast
transforming Anglo American into a far higher margin and more valuable mining
company focused on exceptional copper, premium iron ore and crop nutrients
assets and significant growth optionality. 2024 saw us transform our
performance, with strong operational and cost delivery, $1.3 billion of costs
removed on a run rate basis in 2024 with a further $0.5 billion to come by the
end of 2025, and major progress with our portfolio simplification.
"Safety is our number one value and first priority, and we continue to make
progress towards our goal of zero harm, recording our lowest-ever injury rate
in 2024. However, I am sorry to report the loss of three colleagues in the
year following two accidents underground in South Africa. We extend our
heartfelt condolences to their families, friends and colleagues. We are
unconditional in our commitment to safety and working to ensure that every
colleague returns home safely each day.
"Group underlying EBITDA of $8.5 billion reflects 10% lower prices and unit
costs held flat, demonstrating our focus on operational stability and cost
discipline to keep our EBITDA margin stable at 30% (2023: 31%). Far stronger
cash conversion enabled us to maintain net debt flat at $10.6 billion, equal
to 1.3x underlying EBITDA.
"We are making excellent progress with our portfolio simplification. We have
agreed the sale of our steelmaking coal business for up to $4.8 billion in
gross cash proceeds and have this week agreed the sale of our nickel business
for cash consideration of up to $500 million. The demerger of Anglo American
Platinum (AAP) is expected in June and we intend to retain a 19.9% interest in
AAP to help manage flowback post demerger and which we expect to exit
responsibly over time. All of the above will deliver a step-change in our
balance sheet flexibility.
"The work to separate De Beers is well under way, with action taken to
strengthen cash flow in the near term and position De Beers for long-term
success and value realisation. Given prevailing diamond market conditions, we
have reduced our carrying value of De Beers by $2.9 billion.
"In terms of growth, we are progressing our considerable pipeline of high
quality options across our portfolio. This is well-sequenced and largely
brownfield growth that makes best use of our proven technical and
sustainability capabilities, our project delivery track record and our
reputation as a responsible mining company.
"We have moved at pace to set up Anglo American as a highly attractive and
differentiated value proposition for the long term, offering strong cash
generation to support sustainable shareholder returns and the capabilities and
longstanding relationship networks to deliver our full value and growth
potential."
Year ended 31 December 2024 31 December 2023 Change
US$ million, unless otherwise stated
Revenue 27,290 30,652 (11) %
Underlying EBITDA* 8,460 9,958 (15)%
EBITDA margin* 30% 31%
Attributable free cash flow* 474 (1,385) n/a
(Loss)/Profit attributable to equity shareholders of the Company (3,068) 283 n/a
Basic underlying earnings per share* ($) 1.60 2.42 (34)%
Basic (loss)/earnings per share ($) (2.53) 0.23 n/a
Final dividend per share ($) 0.22 0.41 (46)%
Interim dividend per share ($) 0.42 0.55 (24)%
Total dividend per share ($) 0.64 0.96 (33)%
Group attributable ROCE* 12% 16%
Terms with this symbol * are defined as Alternative Performance Measures
(APMs). For more information, refer to page 92.
Sustainability performance
Key sustainability performance indicators((1))
Anglo American tracks its strategic progress using KPIs that are based on our
seven pillars of value: safety and health, financial, cost, environment,
people, production and socio-political. In addition to the financial
performance set out above and our operational performance on pages 7-33, our
performance for the first four pillars is set out below, with further detail
on pages 12-15.
Pillar of value Metric 31 December 2024 31 December 2023 Target Target achieved
Safety and health Work-related fatal injuries 3 3 Zero Not achieved
Total recordable injury frequency rate (TRIFR) per million hours 1.57 1.78 Reduction year on year On track
New cases of occupational disease 19 15 Reduction year on year Not achieved
Environment GHG emissions - Scopes 1 & 2 11.6 12.5 Reduce absolute GHG emissions by 30% by 2030 On track
(Mt CO(2)e)
Fresh water withdrawals (ML) 35,439 38,040 Reduce fresh water abstraction in water scarce areas by 50% by 2030 On track for 2030 target
Level 4-5 environmental incidents 0 0 Zero Achieved
People Women in management((2)) 35% 34% To achieve 33% by 2023 Achieved
Women in the workforce 26% 26%
Voluntary labour turnover 4% 4% < 5% Achieved
Socio-political((3)) Number of jobs supported 157,199 144,004
off site((4))
Local procurement spend ($bn)((5)) 12.1 13.2
Taxes and royalties ($m)((6)) 3,950 5,081
((1) ) The following sustainability performance indicators for the year
ended 31 December 2024 and the comparative period are externally assured:
work-related fatal injuries; TRIFR; GHG emissions; and Fresh water
withdrawals. Level 4-5 environmental incidents. Refer to the Assurance
Statement in the Sustainability Report for further details.
((2) ) Management includes middle and senior management across the Group.
((3) ) Due to the changes under way to the Social Way assurance process
in 2024, the metric previously used to track Social Way implementation is no
longer used as a performance target for our reporting. Updated metrics will be
defined for 2025 onwards to align with updates to the Social Way framework.
((4) ) Jobs supported since 2018, in line with the Sustainable Mining
Plan Livelihoods stretch goal.
((5) ) Local procurement is defined as procurement from businesses that
are registered and based in the country of operation - also referred to as
in-country procurement - and includes local procurement expenditure from the
Group's subsidiaries and a proportionate share of the Group's joint
operations, based on shareholding.
((6) ) Taxes and royalties include all taxes and royalties borne and
taxes collected by the Group. This includes corporate income taxes,
withholding taxes, mining taxes and royalties, employee taxes and social
security contributions and other taxes, levies and duties directly incurred by
the Group, as well as taxes incurred by other parties (e.g. customers and
employees) but collected and paid by the Group on their behalf. Figures
disclosed are based on cash remitted, being the amounts remitted by entities
consolidated for accounting purposes, plus a proportionate share, based on the
percentage shareholding, of joint operations. Taxes borne and collected by
equity accounted associates and joint ventures are not included.
( )
Operational and financial review of Group results for the year ended
31 December 2024
Operational performance
Production 2024 2023 % vs 2023
Copper (kt)((1)) 773 826 (6)%
Iron ore (Mt)((2)) 60.8 59.9 1%
Platinum group metals (koz)((3)) 3,553 3,806 (7)%
Diamonds (Mct)((4)) 24.7 31.9 (22)%
Steelmaking coal (Mt)((5)) 14.5 16.0 (9)%
Nickel (kt)((6)) 39.4 40.0 (2)%
Manganese ore (kt)((7)) 2,288 3,671 (38)%
((1) ) Contained metal basis. Reflects copper production from the Copper
operations in Chile and Peru only (excludes copper production from the
Platinum Group Metals business).
((2) ) Wet basis.
((3) ) Produced ounces of metal in concentrate. 5E + gold (platinum,
palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined
production and purchase of concentrate.
((4) ) Production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis.
((5) ) Anglo American's attributable share of saleable production.
Steelmaking coal production volumes may include some product sold as thermal
coal and includes production relating to third-party product purchased and
processed at Anglo American's operations. Production volumes from Jellinbah
post 1 November 2024, after the sale was agreed, have been excluded. Jellinbah
production in November and December 2024 (not disclosed within the reported
numbers) was 0.6Mt.
((6) ) Reflects nickel production from the Nickel operations in Brazil
only (excludes 25.7kt of 2024 nickel production from the Platinum Group Metals
business).
((7) ) Anglo American's 40% attributable share of saleable production.
( )
( )
In 2024, all of our businesses delivered their full year production guidance.
Production volumes decreased by 7% on a copper equivalent basis, reflecting
lower production from our Platinum Group Metals operations due to the
transition of Kroondal to a 4E toll arrangement on 1 September 2024, as well
as slightly lower own mined volumes. At Copper Chile, Los Bronces production
was lower year-on-year from the planned closure of the smaller and more costly
Los Bronces processing plant, as well as anticipated lower grade. Collahuasi
was impacted by lower copper recovery and grade. Our Manganese operations in
Australia were impacted for most of the year due to the tropical cyclone Megan
in March. De Beers production was lower, reflecting a proactive response to a
prolonged period of lower demand and higher than normal levels of inventory in
the midstream. Difficult strata conditions at Aquila, as well as the
suspension of mining at the Grosvenor longwall operation following the
underground fire in June 2024, impacted our Steelmaking Coal operations. This
was partly offset by strong production at Iron Ore Brazil, as a result of
robust plans through the year which helped secure the volume and quality of
the ore feed for the plant, in conjunction with good plant stability and
higher grades.
Group unit costs were flat on a copper equivalent basis compared to 2023, as
effective cost-saving initiatives at Copper Chile, Platinum Group Metals and
Kumba, alongside favourable foreign exchange movements, were offset by the
impact of lower production and inflationary pressures. Excluding the
favourable impact of foreign exchange, unit costs increased by 1%.
For more information on each Business' production and unit cost performance,
please refer to the following pages 17-34.
( )
Financial performance
Strong cost savings performance across the Group helped broadly maintain the
Group's EBITDA margin* at 30%, and resulted in a total underlying EBITDA* of
$8.5 billion for the period despite a 10% reduction in the Group basket
price, lower volumes and the impact of inflation. As a consequence, underlying
earnings were $1.9 billion (2023: $2.9 billion).
Despite lower earnings, management actions to support the release of
$1.8 billion of working capital, as well as two accelerated bookbuild
offerings in Anglo American Platinum, partly offset by restructuring costs
associated with our organisational change programme, ensured that net debt
remained flat in 2024 at $10.6 billion.
Underlying EBITDA*
Group underlying EBITDA decreased by $1.5 billion to $8.5 billion
(2023: $10.0 billion). Financial results were predominantly impacted by
lower iron ore, PGM and steelmaking coal prices and challenging diamond market
conditions, partially offset by higher copper prices and effective cost-saving
initiatives across the Group. Despite the price pressures, the cost reductions
ensured stable margins, with only a 1% decrease in the Group's EBITDA margin*
to 30% (2023: 31%). Our ongoing focus on cost control and cash generation has
positioned us well as we execute our strategy. A reconciliation of 'Profit
before net finance costs and tax', the closest equivalent IFRS measure to
underlying EBITDA, is provided within note 4 to the Condensed financial
statements.
Underlying EBITDA* by segment
$ million 2024 2023
Copper 3,805 3,233
Iron Ore 2,655 4,013
PGMs 1,106 1,209
De Beers (25) 72
Steelmaking Coal 924 1,320
Nickel 92 133
Manganese 116 231
Crop Nutrients (34) (60)
Corporate and other (179) (193)
Total 8,460 9,958
Underlying EBITDA* reconciliation for the year ended 31 December 2023 to
year ended 31 December 2024
The reconciliation of underlying EBITDA from $10.0 billion in 2023 to
$8.5 billion in 2024 shows the major controllable factors (e.g. cost and
volume), as well as those outside of management control (e.g. price, foreign
exchange and inflation), that drive the Group's performance.
$ billion
2023 underlying EBITDA* 10.0
Price (1.5)
Foreign exchange -
Inflation (0.5)
Volume (0.6)
Cost 1.0
Other 0.1
2024 underlying EBITDA* 8.5
Price
Average market prices for the Group's basket of products decreased by 10%
compared with 2023, reducing underlying EBITDA by $1.5 billion. This was
driven by the weighted average realised price for iron ore, which reduced by
22%, alongside the PGMs basket price, which decreased by 11%, primarily driven
by rhodium and palladium which decreased by 30% and 24%, respectively, and the
weighted average realised price for steelmaking coal which decreased by 11%.
This was partly offset by a 8% increase in the copper weighted average
realised price.
Foreign exchange
The Group's average basket foreign exchange rate was broadly in line with
2023, creating no year-on-year impact to underlying EBITDA. The favourable
impact of the weaker Chilean peso was offset by the stronger South African
rand.
Inflation
The Group's weighted average CPI was 4% in 2024, slightly lower than the 5% in
2023. The impact of CPI inflation on costs reduced underlying EBITDA by
$0.5 billion (2023: $0.7 billion).
Net cost and volume
The net impact of cost and volume was a beneficial $0.4 billion increase in
underlying EBITDA, driven by $1.0 billion from cost-saving initiatives across
the Group, partly offset by $0.6 billion from lower sales volumes.
The sustainable cost-out programmes initiated this year, including putting on
care and maintenance the more costly Los Bronces plant to focus on profitable
tonnes, cost-saving initiatives at PGMs and Kumba Iron Ore, and Corporate
efficiencies, realised a $1.0 billion improvement in cost in the year. These
initiatives achieved a run-rate saving of $1.3 billion at the end of the year.
Lower sales volumes impacted EBITDA by $0.6 billion, as a result of volume
reductions at Copper Chile and Copper Peru, as well as a proactive production
response to the challenging diamond market affecting De Beers, partially
offset by higher sales volumes at PGMs from a drawdown of finished goods.
Other
The $0.1 billion favourable movement was driven by the sale proceeds of a
non-diamond royalty right at De Beers, the proceeds from a gold and copper
royalty, and lower study costs at Copper Chile. This was partially offset by
the temporary suspension of the Manganese operations in Australia since March
2024, as a result of the impact of tropical cyclone Megan and the exclusion of
earnings from Jellinbah post classification of held-for-sale in November.
Underlying earnings*
Group underlying earnings decreased to $1.9 billion (2023: $2.9 billion),
driven by lower underlying EBITDA, higher depreciation and amortisation and
higher net finance costs, partly offset by a decrease in income tax expense
and earnings attributable to non-controlling interests.
Reconciliation from underlying EBITDA* to underlying earnings*
$ million 2024 2023
Underlying EBITDA* 8,460 9,958
Depreciation and amortisation (3,175) (2,790)
Net finance costs and income tax expense (2,609) (3,126)
Non-controlling interests (739) (1,110)
Underlying earnings* 1,937 2,932
Depreciation and amortisation
Depreciation and amortisation increased by 14% to $3.2 billion
(2023: $2.8 billion), largely due to the depreciation of right-of-use assets
in relation to shipping leases, a full year of depreciation at Copper Peru
following commercial production in June 2023, and the capitalisation of
projects at Copper Chile and PGMs.
Net finance costs and income tax expense
Net finance costs, before special items and remeasurements, were $0.7 billion
(2023: 0.6 billion). The increase was principally driven by the impact of
higher gross debt more than offsetting a reduction in floating interest rates.
The underlying effective tax rate was higher than the prior period at 41.1%
(2023: 38.5%), impacted by the relative levels of profits arising in the
Group's operating jurisdictions. The tax charge for the period, before special
items and remeasurements, was $1.9 billion (2023: $2.5 billion).
Non-controlling interests
The share of underlying earnings attributable to non-controlling interests was
$0.7 billion (2023: $1.1 billion), principally relating to minority
shareholdings in Iron Ore, Copper and PGMs. The decrease was driven by lower
earnings for the year.
Special items and remeasurements
Special items and remeasurements (after tax and non-controlling interests) are
a net charge of $5.0 billion (2023: net charge of $2.6 billion). This
principally relates to the impairments of $2.0 billion recognised in
De Beers and $1.6 billion recognised in Woodsmith (Crop Nutrients) in June,
which was previously disclosed in the half-year financial report. Alongside
these, there was a tax special items and remeasurements charge of
$0.8 billion which includes deferred tax adjustments arising from the planned
Platinum demerger and Brazilian deferred tax remeasurements. We expect total
tax and transactions costs for the demerger of Anglo American Platinum to be
between $400-500 million.
Full details of the special items and remeasurements recorded are included in
note 11 to the Condensed financial statements.
Net debt*
$ million 2024 2023
Opening net debt* at 1 January (10,615) (6,918)
Underlying EBITDA* from subsidiaries and joint operations 8,084 9,241
Working capital movements 1,787 (1,167)
Other cash flows from operations (509) 41
Cash flows from operations 9,362 8,115
Capital repayments of lease obligations (412) (309)
Cash tax paid (1,574) (2,001)
Dividends from associates, joint ventures and financial asset investments((1)) 166 382
Net interest((2)) (949) (727)
Distributions paid to non-controlling interests (549) (978)
Sustaining capital expenditure (4,335) (4,404)
Sustaining attributable free cash flow* 1,709 78
Growth capital expenditure and other((3)) (1,235) (1,463)
Attributable free cash flow* 474 (1,385)
Dividends to Anglo American plc shareholders (1,026) (1,564)
Acquisitions and disposals 177 200
Foreign exchange and fair value movements (139) 21
Other net debt movements((4)) 506 (969)
Total movement in net debt* (8) (3,697)
Closing net debt* at 31 December (10,623) (10,615)
((1))Excludes dividends received from Jellinbah subsequent to signing the
sales agreement of $149 million now presented within 'other net debt
movements'.
((2))Includes cash outflows of $476 million (2023: outflows of
$403 million), relating to interest payments on derivatives hedging net debt,
which are included in cash flows from derivatives related to financing
activities.
((3))Growth capital expenditure and other includes $80 million (2023: $133
million) of expenditure on non-current intangible assets.
((4))Includes the consideration received on the sale of our 11.9% interest in
Anglo American Platinum of $935 million as part of the two accelerated
bookbuilds; dividends received from Jellinbah of $149 million subsequent to
signing the sales agreement, the purchase of shares (including for employee
share schemes) of $135 million; other movements in lease liabilities
(excluding variable vessel leases) increasing net debt by $169 million;
contingent and deferred consideration paid in respect of acquisitions
completed in previous years of $68 million; investment in joint ventures of
$62 million; and Mitsubishi's share of Quellaveco's capital expenditure of $30
million; 2023 includes the purchase of shares (including for employee share
schemes) of $274 million; Mitsubishi's share of Quellaveco capital
expenditure of $129 million; other movements in lease liabilities (excluding
variable vessel leases) increasing net debt by $120 million; and contingent
and deferred consideration paid in respect of acquisitions completed in
previous years of $128 million.
Net debt (including related derivatives) of $10.6 billion remained flat in
2024. Net debt at 31 December 2024 represented gearing (net debt to total
capital) of 27% (31 December 2023: 25%). The net debt to EBITDA ratio
increased to 1.3x (31 December 2023: 1.1x), primarily as a result of lower
underlying EBITDA , but remains within our target range of <1.5x at the
bottom of the cycle.
Cash flow
Cash flows from operations and Cash conversion*
Cash flows from operations increased to $9.4 billion (2023: $8.1 billion),
reflecting the benefit of a working capital inflow of $1.8 billion
(2023: build of $1.2 billion). A receivables inflow of $1.0 billion was led
by lower Copper sales volumes (primarily due to planned lower production at
Copper Chile) and the impact of lower iron ore prices, more than offsetting
the higher copper price. An inventory inflow of $0.8 billion was driven by a
drawdown of work-in-progress stockpiles at PGMs to support sales, a
revaluation of finished goods at Kumba and a slight reduction in diamond
inventory.
These factors contributed to the Group's cash conversion increasing to 97%
(2023: 54%).
Capital expenditure*
$ million 2024 2023
Stay-in-business 2,699 2,902
Development and stripping 1,013 920
Life-extension projects 636 598
Proceeds from disposal of property, plant and equipment (13) (16)
Sustaining capital 4,335 4,404
Growth projects 1,155 1,330
Total capital expenditure 5,490 5,734
Capital expenditure was $0.2 billion lower compared to prior year at $5.5
billion (2023: $5.7 billion), mainly driven by lower growth capital.
Sustaining capital expenditure was marginally lower at $4.3 billion
(2023: $4.4 billion), primarily due to the Grosvenor underground fire
incident, where the operation has been suspended since June 2024.
Growth capital expenditure primarily relates to spend on the Woodsmith project
(Crop Nutrients), the first phase of the Collahuasi debottlenecking initiative
(Copper Chile) and the Kumba UHDMS project (Iron Ore). Growth capital
expenditure was lower at $1.2 billion (2023: $1.3 billion), due to lower spend
across other projects and businesses.
Attributable free cash flow*
The Group's attributable free cash flow increased to an inflow of
$0.5 billion (2023: outflow of $1.4 billion), mainly due to an increase in
cash flows from operations to $9.4 billion (2023: $8.1 billion), a decrease
in tax payments to $1.6 billion (2023: $2.0 billion), a reduction in
distributions paid to non-controlling interests to $0.5 billion (2023: $1.0
billion) and a decrease in capital expenditure to $5.5 billion (2023: $5.7
billion). This was partly offset by an increase in net interest paid to $0.9
billion (2023: $0.7 billion).
Other movements in net debt
In addition to the movements in attributable free cash flow, the total
movement in net debt was impacted by dividends to Anglo American Plc
shareholders, acquisitions and disposals, foreign exchange and fair value
movements and other net debt movements. The dividend paid to Anglo American
plc shareholders reduced to $1.0 billion (2023: $1.6 billion), driven by a
reduction in underlying earnings. Cash inflow on disposals of $0.2 billion
principally relate to the sale of a non-diamond royalty right within De Beers
(2023: $0.2 billion representing receipt of deferred consideration at Anglo
American Platinum). Favourable movements in other net debt movements led to an
inflow of $0.5 billion (2023: $1.0 billion outflow) which was driven by the
receipt of consideration totalling $1.0 billion, primarily from the sell down
of our interest in Anglo American Platinum, following the two accelerated
bookbuild offerings that totalled 11.9% of the shares in Anglo American
Platinum in the second half of the year.
Shareholder returns
In line with the Group's established dividend policy to pay out 40% of
underlying earnings, the Board has proposed a final dividend of 40% of second
half underlying earnings, equal to $0.22 per share (2023: $0.41 per share),
equivalent to $0.3 billion (2023: $0.5 billion). This would take the
shareholder returns in respect to FY 2024 to $0.8 billion, equivalent to $0.64
per share.
Balance sheet
Net assets decreased by $3.1 billion to $28.5 billion (31 December 2023:
$31.6 billion), reflecting dividend payments to Company shareholders and
non-controlling interests, as well as the loss in the period, which was
primarily impacted by the impairments at De Beers and Crop Nutrients
(impairment taken at the half year).
Attributable ROCE*
Attributable ROCE decreased to 12% (2023: 16%). Attributable underlying EBIT
decreased to $3.8 billion (2023: $5.4 billion), reflecting the impact of
lower underlying EBITDA and higher depreciation and amortisation. Average
attributable capital employed decreased to $31.7 billion
(2023: $33.2 billion), primarily due to the impact from the impairments
recognised at De Beers and Crop Nutrients (impairment taken at the half year).
Liquidity and funding
Group liquidity was $15.3 billion (2023: $13.2 billion), comprising
$8.1 billion of cash and cash equivalents (2023: $6.1 billion) and
$7.2 billion of undrawn committed facilities (2023: $7.2 billion).
During the year, the Group issued $2.9 billion of bond debt. In March 2024,
the Group issued €500 million 3.75% Senior Notes due June 2029 and €750
million 4.125% Senior Notes due March 2032, and in April 2024, $1.0 billion
5.75% Senior Notes due April 2034 and $500 million 6% Senior Notes due April
2054.
Consequently, the weighted average maturity on the Group's bonds increased to
7.6 years (2023: 7.4 years).
Attractive growth options
Anglo American continues to evolve its portfolio of competitive, world-class
assets towards those future-enabling products that are essential for
decarbonising the global economy, improving living standards, and supporting
food security. In addition to these expansion opportunities, we also have
value-accretive adjacencies in our portfolio where we expect significant value
to be unlocked.
Growth projects (metrics presented on a 100% basis unless otherwise indicated)
Progress and current expectations in respect of our key growth projects are as
follows:
Operation Scope Capex Remaining capex First production
$bn $bn
Copper
Collahuasi Debottlenecking investment in additional crushing capacity and flotation cells c.0.2 (44% share) c.0.1 (44% share) 2026
is expected to increase plant throughput from c.170 ktpd to c.185 ktpd, adding
production of c.10 ktpa (44% share) on average from 2026.
Further debottlenecking initiatives which will expand the existing plant to
the total permitted capacity of 210 ktpd are under study and are expected to
add c.15 ktpa (44% share).
Beyond that, studies and permitting are required to be finalised for a fourth Late 2027
processing line in the plant and mine expansion that would add up to c.150
ktpa (44% share) from the early 2030s. The desalination plant that is
currently under construction has been designed to accommodate capital
efficient expansion in light of the growth potential at the asset.
Expansion studies ongoing. Subject to permitting and approvals
Quellaveco The plant throughput is permitted to a level of 127.5 ktpd and a change in c. 0.1 (subject to approval) c.0.1 (subject to approval) Late 2026
legislation in June 2024 has increased the permit allowance from 5% to 10%,
enabling throughput of up to c.140 ktpd. In light of this, studies are under
way for an incremental expansion to c.140 ktpd, potentially by late 2026.
Subsequent expansion options, including an option to increase to c.150 ktpd,
which was already considered in the development of the greenfield project, is
in the pre-feasibility study stage, and subject to further permitting, that
could benefit production from late 2027. Further local and regional expansion
potential at Quellaveco is also being evaluated.
Expansion studies ongoing. Subject to permitting and approvals
Sakatti Polymetallic greenfield project in Finland containing copper, nickel, Studies ongoing. Subject to permitting and approvals Early 2030s
platinum, palladium, gold, silver and cobalt. Expected to deliver c.100 ktpa
copper equivalent production from a state-of-the-art mine design with minimal
surface footprint. The EIA was approved by the Finnish authorities in 2023 and
we are progressing with work to augment existing studies in support of a
Natura 2000 update.
Los Bronces The underground project will partly replace lower grade open-pit tonnes with Studies ongoing. Subject to approvals Early 2030s
higher grade underground tonnes. It is located 5 km from the existing pit and
will use the same plant and tailings deposit capacity used by the current
operation, without requiring any additional fresh water.
The underground development was permitted as part of the wider Los Bronces
Integrated Project permit granted in 2023. Studies are under way with the aim
being to develop a modern operation with minimal surface impact while
maximising value delivery from the project.
Premium iron ore
Minas-Rio The implementation of recleaner flotation columns to enable higher throughput c.0.3 c.0.2 2028
while maintaining product quality. The average impact on production from the
implementation of the recleaners from 2028 to 2040 is expected to be ~2.8
Mtpa.
The acquisition of the neighbouring Serpentina resource from Vale completed in
Q4 2024.
Serpentina is of a higher iron ore grade than Minas-Rio's ore and contains
predominantly softer friable ore that together are expected to translate into
lower unit costs and capital requirements.
Subject to studies, permitting and approvals.
The combination of Minas-Rio with the scale and quality of the Serpentina
endowment provides a high value option to double Mina-Rio's production. Vale
will also have an option to acquire an additional 15% shareholding in the
enlarged Minas-Rio for cash (at fair value calculated at the time of exercise
of the option), if and when certain events relating to a future expansion
occur.
Near-term access to the Serpentina ore as well as the potential future
expansion are both subject to obtaining normal licences, which are expected to
take a number of years.
Kumba The conversion of Sishen's Dense Media Separation plant to an UHDMS plant will c.0.6 c.0.5 2029
enable Sishen to reduce its ROM cut-off grade (from 48% to 40%) and produce
more premium-grade product (from less than 20% to more than 50% of production)
Crop Nutrients
Woodsmith New polyhalite (natural mineral fertiliser) mine being developed in North Refer to page 35 for more information on project progress
Yorkshire, UK. Expected to produce polyhalite products - a premium quality,
comparatively low carbon fertiliser suitable for organic use. Final design
capacity of c.13 Mtpa is expected, subject to studies and approval.
Life-extension projects (metrics presented on a 100% basis unless otherwise
indicated)
Progress and current expectations in respect of our key life-extension
projects are as follows:
Operation Scope Capex Remaining capex Expected first production
$bn $bn
Diamonds
Venetia 4 Mctpa underground replacement for the open pit. First production achieved in c.2.3 c.0.6 Achieved in June 2023
2023 with ramp-up over the next few years as development continues.
The Venetia Underground Project is undergoing a review in order to optimise
cost, capital and production in light of the current market environment.
Jwaneng 9 Mctpa (100% basis) replacement for Cuts 7 and 8. The Cut-9 expansion of c.0.4 (19.2% share) c.0.1 (19.2% share) 2027
Jwaneng will extend the life of the mine by 9 years to 2036.
PGMs
Mototolo/ Project leverages the existing Mototolo infrastructure, enabling mining to c.0.3 c.0.1 First ore produced in 2024
extend into the adjacent and down-dip Der Brochen Mineral Resource to extend
Der Brochen life of asset to c.2074.
Mogalakwena Advancing studies to support possible future underground operations of the Studies under review
mine through progressing the drilling, twin exploration decline and studies
for underground operations.
Technology projects((1))
The Group continues to invest in technology projects that relate to its
FutureSmart Mining(TM) approach, including the delivery of Anglo American's
Sustainable Mining Plan targets, particularly those that relate to safety,
energy, emissions and water. The Group has optimised its technology programme,
focusing only on those technologies that will bring the most benefit to the
operating assets and development projects, as well as determining the most
effective manner to execute these programmes. For more information on
technology, please refer to our 2024 Integrated Annual Report, from page 62.
((1))Expenditure relating to technology projects is included within operating
expenditure, or if it meets the accounting criteria for capitalisation, within
Growth capital expenditure.
Sustainability performance
Sustainable Mining Plan
Anglo American's longstanding and holistic approach to sustainability helps to
build trust with our employees and stakeholders across society, reduces
operational risk and in many cases delivers direct financial value for our
business. Our reputation as a responsible mining company supports our ability
to access future resource development opportunities, both from the significant
endowments within our business and more broadly - critical to delivering our
growth ambitions.
Our Sustainable Mining Plan is designed to be a flexible, living plan and we
continue to evolve it as we learn and make progress, and as technologies
develop, while also ensuring it stays relevant and suitably stretching, in
tune with our employees' and stakeholders' ambitions for our business. We are
currently reviewing the Sustainable Mining Plan, including to reflect the
Group's future portfolio composition that was announced in May 2024. We are
also using this opportunity to ensure that our sustainability ambitions
deliver tangible value to our many stakeholders and will set out an update
when we have completed the review, likely once the portfolio simplification
has made significant progress during 2025. Progress against the existing
Sustainable Mining Plan targets is discussed below.
Zero mindset
Occupational safety
Anglo American's number one value is safety, and it is our first priority,
always. We are committed to preventing our people from being harmed at work.
Keeping our workforce safe is an unremitting endeavour and comes foremost
in everything we do. We are unconditional about safety and train, equip and
empower our people to work safely, because we believe that everybody,
everywhere should return home safe and well at the end of their working day.
It is with deep sadness that we report the loss of life of three colleagues -
an employee and two contractors - in work-related incidents at our managed
operations in 2024. These losses leave a lasting impact on many lives and
serve as a constant reminder to be unconditional about safety, every day.
Tshepiso Terrence Mokale and Euzmen Ndlebe were both fatally injured in June,
while preparing an ore pass in development at Dishaba mine, part of our
Platinum Group Metals (PGMs) business in South Africa. In October, Basanda
Glen Langeni died following a scraper winch incident underground at Dishaba.
Both incidents were investigated by independent experts and actions were
agreed to mitigate the risks identified and to prevent these types of tragic
incidents from re-occurring.
We also lost colleagues at some of our independently managed joint ventures.
In June, a contractor* working at Jwaneng mine in Botswana, was fatally
injured in an incident involving a mobile crane and production drilling rig.
In November, Tshepo Tebele, a night shift winch operator at Modikwa, lost his
life in an incident involving a scraper winch. In a separate incident in
November, a contractor* working at Collahuasi in Chile, tragically lost his
life in an incident involving the replacement of a section of a pipeline.
In 2024, we continued to demonstrate progress in our safety journey, recording
our lowest TRIFR of 1.57 in 2024 (2023: 1.78). We also reported a 14%
improvement in the 2024 lost-time injury frequency rate (LTIFR) to 1.06 (2023:
1.23). This improvement in our lagging metrics reflects the operational rigour
and progressive maturity of our operational safety processes.
Alongside our continued use of innovative technologies to help make Anglo
American a safer and healthier place to work, we are building an ever stronger
safety culture, based on the established concept of Visible Felt Leadership
(VFL). In 2024, our focus on VFL remained steadfast to maintain the momentum
we achieved the previous year - recording a 24% improvement in the number of
leadership engagements - and continues to support our operational leaders to
spend quality time in the field with the frontline. With the increased
presence of our leaders in the field, engaging the frontline on personal and
workplace safety, in 2024 we saw a 94% increase in reporting of high
potential hazards (HPHs)
To deliver safe, responsible production, we know that we need to be better at
how we work with our contractors and how we support their safety on our sites,
ensuring they too feel valued and respected as a critical contributor to
everyone's safety. Our Contractor Performance Management programme is a
three-year initiative, started in 2023, which has been designed to ensure that
the work our contractors undertake is well planned, aligned with our Operating
Model and meaningfully risk assessed and resourced with the right skills.
Occupational health
Our health and well-being strategy, aligned with the World Health Organization
(WHO) Healthy Workplace model, has been updated to include Total Worker Health
concepts that integrate actions to support the health and well-being of our
workforce and host communities. This integrated strategy incorporates our
WeCare well-being programme and other social performance activities, including
our livelihoods-support programmes. It requires us to work synergistically to
support our people and achieve our health and well-being goals.
Occupational diseases
In 2024, there were 19 reported new cases of occupational disease, of which 18
were related to noise exposure (2023: 15, of which 14 were related to noise
exposure and one was musculoskeletal). The challenge in occupational disease
reporting is that many hazards do not cause immediately detectable health
harms, with most occupational diseases not clinically definable until many
years post exposure. This means disease cases reported in a given year reflect
accumulated and/or past working conditions and exposures. This is termed
"latency of presentation", and the challenge underscores the importance of
ongoing robust environment monitoring, comprehensive worker education and
health surveillance, regularly updated risk assessments, and proactive control
of hazards with levels over the OEL. This is why reduction and prevention
strategies of all known workplace hazards remain an ongoing focus at
Anglo American.
Healthy environment
Our existing Sustainable Mining Plan includes commitments to be a leader in
environmental stewardship. These include our aims, by 2030, to reduce
operational greenhouse gas (GHG) emissions (Scopes 1 and 2) by 30%; achieve a
50% reduction in fresh water abstraction in water scarce areas; and deliver
net-positive impacts in biodiversity across our managed operations.
Climate change
We continue to make progress across the current portfolio in reducing our
emissions, with our Scope 1 and 2 GHG emissions of 11.6 Mt CO2e in 2024 being
8% lower than in 2023. This equates to a 14% reduction compared with the 2016
baseline on which our 2030 target is set. In addition to our existing 2030
operational emissions reduction target, we have stated our aim to achieve
carbon neutrality across our operations by 2040, and an ambition to halve our
Scope 3 emissions, also by 2040.
Since 2023, our managed operations in South America have been supplied with
100% renewable electricity and the managed operations in Australia moved to a
100% renewable electricity supply at the beginning of 2025. From this point,
approximately 60% of the global grid supply for the current Anglo American
portfolio was drawn from renewable sources.
We continue to make progress towards addressing Anglo American's largest
remaining current source of Scope 2 emissions - our electricity supply in
southern Africa. Our jointly owned renewable energy venture with EDF
Renewables, known as Envusa Energy, completed the project financing for the
first three wind and solar projects in South Africa in February 2024, with
construction well under way. These three renewable energy projects, known as
the Koruson 2 cluster and located on the border of the Northern and Eastern
Cape provinces of South Africa, are designed to have a total capacity of 520
MW of wind and solar electricity generation.
Methane emissions from the Australian steelmaking coal operations represent
the largest component of our current Scope 1 emissions and we continue to
work hard to capture, use and abate those emissions. We have invested
significantly over several years, in excess of $100 million per annum, in
methane capture infrastructure at our underground steelmaking coal operations.
This investment has allowed those operations to capture gas before and during
mining, enabling our underground operations to abate approximately 70% of
methane-related emissions, against a do-nothing scenario.
We have set an ambition to achieve carbon neutrality across our controlled
ocean freight activities by 2040, with an interim 30% reduction in emissions
by 2030. The delivery in Q1 2024 of the final two vessels of a 10-strong
chartered fleet of Capesize+ liquefied natural gas (LNG) dual-fuelled bulk
carriers, marks a milestone towards achieving our commitment to more
sustainable shipping. The LNG-dual-fuelled vessels offer an estimated 35%
reduction in emissions compared to ships fuelled by conventional marine oil
fuel and are the most efficient vessels of their type today.
Water
With more than 80% of our global assets located in water scarce areas, we need
to reduce our dependence on fresh water and are working on a number of
projects and technologies to help us achieve our freshwater reduction targets.
By the end of 2024, we had reduced fresh water withdrawals by 27% against the
2015 baseline that informs the Sustainable Mining Plan target of a 50%
reduction in fresh water withdrawals by 2030. Our operations continue to
improve their water re-use and recycling rates, reducing their reliance on
fresh water. Group-wide water efficiency increased to 86% in 2024 (2023: 84%).
This focus on efficiency will continue at all our operations throughout 2025.
Biodiversity
As custodians of the land and ecosystems around our operations, we seek to
improve the footprint of our operations and direct our efforts towards
delivering positive and lasting environmental outcomes for host communities
and our wide range of stakeholders. Within our Sustainable Mining Plan we have
a commitment to deliver a Net Positive Impact on biodiversity across Anglo
American by 2030, compared with the 2018 baseline.
We have now completed detailed biodiversity baseline assessments across all
our managed operations, defining and assessing significant biodiversity
features including key habitats and species, as well as identifying those
ecosystems that require protection and restoration. Detailed biodiversity
management programmes have been developed for each site and have been
independently reviewed by our NGO partners.
We have continued to refine our measurement processes to develop, in
partnership with two long term NGO partners, a new science-based metric called
Quality Habitat Hectares (QHH) that will help us to measure our contribution
to internal and global biodiversity targets, as well as nature-positive
outcomes. QHH enables an objective assessment of quantity and quality that are
reliable and replicable through incorporating the extent, type and condition
of ecosystems and species impacted in and around our operations.
We believe that the development of a metric such as QHH represents a
significant advancement in the metals and mining sector, offering a new tool
for measuring and reporting on nature related impacts and dependencies. This
metric can serve as a catalyst for enhancing transparency and accountability
across industries, encouraging businesses to disclose their interactions with
nature more openly. By adopting such measures, companies can align their
approach with the mitigation hierarchy, which prioritises avoiding,
minimising, and compensating for biodiversity impacts.
Thriving communities
We continue working to strengthen and broaden our social performance
competencies through embedding our social performance management system - the
Social Way - across Anglo American. Through the implementation of the Social
Way - which we believe is one of the most robust and comprehensive social
performance management systems in the mining sector - and through our
collaborative regional development initiatives, we are working actively to
support local and regional economies, as well as the lives and livelihoods of
the communities where we operate.
Since the launch of our Sustainable Mining Plan, we have supported more than
157,199 off site jobs through livelihoods programmes. One example of where we
are offering support beyond traditional social investment is our Impact
Finance Network, which provides tailored technical assistance to help match
third-party impact capital to host-region, non-mining impact businesses and
enterprises. To date, the IFN has provided technical assistance and matching
to more than 100 companies globally, supporting close to 50,000 jobs and over
$100 million of third-party capital invested Building off the work in southern
Africa, we now have a strong footprint in South America. We are into our third
year of operation in Chile, we have completed our pilot in Peru, and we
continued the rolling out the IFN to Brazil, with a pilot running to the end
of 2025.
Owing to internal organisational change and the resultant need to respond to
an internal assurance efficiency review, our 2023 Social Way assurance
programme was completed via self-assessment, rather than third-party review as
in previous years. We have maintained this approach in 2024 as part of a wider
review of internal assurance effectiveness.
The site-level self assessments were supported by a verification exercise led
the by either the business or the Group social impact team to stress-test the
results, locate gaps and support planing for improvement measures.
Trusted corporate leader
Tightly linked to our safety imperative and our Values, we strive to create a
workplace that places people at its heart. We are committed to promoting an
inclusive and diverse environment where every colleague is valued and
respected for who they are, and has the opportunity to fulfil their potential.
By the end of 2024, we exceeded our consolidated target of 33% female
representation across the business for our management population*, reaching
35%. In addition, in regard to female representation on the Executive
Leadership Team (ELT) we achieved 25%. Female representation on the ELT, plus
those reporting to an ELT member, increased to 34.1%. In addition to ELT
representation, we continue to work on other key performance metrics, such as
the percentage of women in the overall workforce, which has remained at 26%
in 2024 (2023: 26%).
To demonstrate the high standards to which we operate, we have been at the
forefront of developing and adopting some of the most trusted sustainability
certification programmes for the mining sector, including the Initiative for
Responsible Mining Assurance (IRMA) and the Responsible Jewellery Council
(RJC).
Having met our Sustainable Mining Plan interim target of having half of our
operations undergo third-party audits against recognised responsible mine
certification systems in 2022, we continue to work towards our 2025 target
for audits of all operations.
Some of the most recent achievements for our sites that have undergone
third-party assessment include:
- Our Mototolo and Amandelbult mines in South Africa became the first
PGMs mines in the country to complete the audit - achieving the IRMA 75 and
IRMA 50 level of performance, respectively;
- Confirmation from IRMA that the Unki PGMs mine in Zimbabwe retained
its IRMA 75 level of performance; and
- Our Minas-Rio and Barro Alto mines in Brazil are the first iron ore
and nickel-producing mines in the world to complete an IRMA audit. Both mines
achieved the IRMA 75 level of performance.
- Los Bronces and El Soldado copper operations have adopted The Copper
Mark certification. Our first audits in Steelmaking Coal, using the Towards
Sustainable Mining (TSM) standard, were completed at the Capcoal and Aquila
mines.
The success of our business is shared with a wide range of stakeholders,
including national governments and host communities, through the significant
corporate tax, mining tax and royalty payments that we make. Total taxes and
royalties borne and taxes collected amounted to $3,950 million, a 22% decrease
compared with the $5,081 million paid in the prior year, reflecting the
decrease in earnings in 2024 (see Financial Performance section for further
detail).
The Board
There were no changes to the composition of the Board in 2024.
As announced on 10 December 2024, Anne Wade joined the Board as a
non-executive director and a member of the Board's Audit and Sustainability
committees, with effect from 1 January 2025.
At the date of this report, five (45%) of the 11 Board directors are female
and two (18%) identify as minority ethnic. The names of the directors at the
date of this report and the skills and experience our Board members contribute
to the long term sustainable success of Anglo American are set out on the
Group's website:
www.angloamerican.com/about-us/leadership-team
(https://www.angloamerican.com/about-us/leadership-team)
Principal risks and uncertainties
Anglo American is exposed to a variety of risks and uncertainties which may
have a financial, operational or reputational impact on the Group, and which
may also have an impact on the achievement of social, economic and
environmental objectives.
The principal risks and uncertainties facing the Group relate to the
following:
- Catastrophic and natural catastrophe risks
- Product prices
- Geopolitical
- Cybersecurity
- Permitting and regulatory
- Operational performance
- Safety
- Corruption
- Portfolio and organizational transformation
- Community stakeholder conflict
- Water
- Pandemic
- Climate change
The Group is exposed to changes in the economic environment, including tax
rates and regimes, as with any other business. Details of any key risks and
uncertainties specific to the period are covered in the business reviews on
pages 17-37. Details of relevant tax matters are included in note 7 to the
Condensed financial statements. The principal risks and uncertainties facing
the Group at the 2024 year end are set out in detail in the strategic report
section of the Integrated Annual Report 2024, published on the Group's website
www.angloamerican.com, on 3 March 2025.
Copper
Operational and financial metrics
Production Sales Price Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume cost* revenue* EBITDA* margin* EBIT*
kt((1)) kt((2)) c/lb((3)) c/lb((4)) $m((5)) $m $m $m
Copper Total 773 769 416 151 7,572 3,805 50% 2,804 1,598 23%
Prior period 826 843 384 166 7,360 3,233 44% 2,451 1,684 20%
Copper Chile 466 463 416 181 4,668 2,049 44% 1,398 1,161 28%
Prior period 507 505 384 200 4,615 1,452 31% 893 1,268 22%
Los Bronces((6)) 172 174 n/a 273 1,535 467 30% 189 277 n/a
Prior period 216 217 - 304 1,724 114 7% (94) 552 -
Collahuasi((7)) 246 242 n/a 120 2,293 1,447 63% 1,175 837 n/a
Prior period 252 248 - 113 2,197 1,372 62% 1,124 678 -
Other operations((8)) 48 47 n/a n/a 840 135 16% 34 47 n/a
Prior period 40 40 - - 694 (34) (5)% (137) 38 -
Copper Peru (Quellaveco)((9)) 306 306 415 105 2,904 1,756 60% 1,406 437 19%
Prior period 319 339 384 111 2,745 1,781 65% 1,558 416 19%
((1))Shown on a contained metal basis. Reflects copper production from the
Copper operations in Chile and Peru only (excludes copper production from the
Platinum Group Metals business).
((2))Shown on a contained metal basis. Excludes 422 kt third-party sales
(2023: 444 kt).
((3))Represents realised copper price and excludes impact of third-party
sales.
((4))C1 unit cost includes by-product credits.
((5))Group revenue is shown after deduction of treatment and refining charges
(TC/RCs).
((6))Figures on a 100% basis (Group's share: 50.1%).
((7))44% share of Collahuasi production, sales and financials.
((8))Other operations form part of the results of Copper Chile. Production and
sales are from El Soldado mine (figures on a 100% basis, Group's share:
50.1%). Financials include El Soldado and Chagres (figures on a 100% basis,
Group's share: 50.1%), third-party trading, projects, including Sakatti, and
corporate costs. El Soldado mine C1 unit costs decreased by 26% to 233c/lb
(2023: 316c/lb).
((9))Figures on a 100% basis (Group's share: 60%).
Operational performance
Copper Chile
Copper production of 466,400 tonnes decreased by 8% (2023: 507,200 tonnes),
due to the planned closure of the smaller of the two Los Bronces processing
plants and anticipated lower grade, as well as lower copper recovery and grade
at Collahuasi.
At Los Bronces, production decreased by 20% to 172,400 tonnes (2023: 215,500
tonnes), due to planned closure of the older, smaller and more costly Los
Bronces processing plant, which has been on care and maintenance since July
2024, coupled with anticipated lower ore grade (0.47% vs 0.51%) and impacts on
throughput due to ore hardness. As previously disclosed, the unfavourable ore
characteristics in the current mining area will continue to impact operations
until the next phase of the mine, where the grades are expected to be higher
and ore softer. Development work for this phase is now under way and it is
expected to benefit production from early 2027 (refer to 'Operational outlook'
below for further details).
At Collahuasi, Anglo American's attributable share of copper production
decreased by 3% to 245,800 tonnes (2023: 252,200 tonnes), due to lower copper
recovery and lower ore grade (1.15% vs 1.17%), partially offset by higher
throughput driven by the fifth ball mill that started up in Q4 2023. As the
mine transitions between different phases, the processing of lower grade
stockpiles is expected to continue into 2025.
Production at El Soldado increased by 22% to 48,200 tonnes (2023: 39,500
tonnes) due to planned higher grade (0.94% vs 0.72%).
During 2024, the central zone of Chile, where Los Bronces and El Soldado are
located, experienced record levels of rain and snow with the wettest June and
also the most snowfall in over 20 years. While both operations were impacted,
there was limited disruption as a result of various pre-emptive initiatives,
despite the extent of snowfall.
Copper Peru
Quellaveco production decreased by 4% to 306,300 tonnes (2023: 319,000
tonnes), owing to anticipated lower grades (0.76% vs 0.96%) as the mine moves
through a lower-grade area which impacted recoveries (81% vs 83%, inclusive of
the coarse particle recovery plant), partially offset by record plant
throughput in the year due to increased plant stability and the benefit from
the higher allowance on the plant throughput permit.
Markets
31 December 2024 31 December 2023
Average market price (c/lb) 415 385
Average realised price (Copper Chile - c/lb) 416 384
Average realised price (Copper Peru - c/lb) 415 384
The differences between the market price and the realised prices are largely a
function of provisional pricing adjustments and the timing of sales across the
year. At Copper Chile, 64,200 tonnes of copper were provisionally priced at
395 c/lb at 31 December 2024 (31 December 2023: 114,500 tonnes
provisionally priced at 386 c/lb). At Copper Peru, 69,072 tonnes of copper
were provisionally priced at 415 c/lb at 31 December 2024 (31 December
2023: 39,000 tonnes provisionally priced at 385 c/lb).
Copper prices were volatile during 2024, reaching record nominal highs in May
following acute physical market tightness in the COMEX copper contract, but
prices were also under pressure for long periods owing to weak Chinese
physical demand conditions. Copper averaged 415 c/lb, up 8% compared to the
prior period (2023: 385 c/lb), driven by the rally seen in Q2, partially
offset by the weak prevailing demand conditions in China and Europe. Chinese
stimulus announcements towards the end of the year have helped shore up
demand, although the effect of a stronger US dollar has depressed
dollar-denominated commodity prices, with the copper price ending 2024 only 3%
higher than where it ended 2023. Copper prices are expected to remain
well-supported by the growing electrification and energy transition
infrastructure investment.
Financial performance
Underlying EBITDA for Copper increased by 18% to $3,805 million (2023: $3,233
million), driven by the higher copper price and improved cost performance,
despite the impact from lower volumes.
Copper Chile
Underlying EBITDA increased by 41% to $2,049 million (2023: $1,452 million),
driven by higher copper prices, the benefit of a significant reduction in
costs and the weaker Chilean peso. C1 unit costs decreased by 10% to 181 c/lb
(2023: 200 c/lb), reflecting effective cost control and the proactive decision
to take the more costly Los Bronces processing plant offline, as well as the
benefit of a weaker Chilean peso, despite an 8% decrease in production.
Capital expenditure decreased by 8% to $1,161 million (2023: $1,268 million),
driven by a weaker Chilean peso and capital expenditure optimisations at Los
Bronces, partially offset by expected higher expenditure at Collahuasi on the
desalination plant project.
Copper Peru
Underlying EBITDA was flat at $1,756 million (2023: $1,781 million),
reflecting higher copper prices offset by lower sales volumes. C1 unit costs
decreased by 5% to 105 c/lb (2023: 111 c/lb), reflecting the benefit from an
increase in by-product credits from higher molybdenum production and the
benefit from marketing activities on molybdenum sales and access to the
treatment and refinement charges spot market.
Capital expenditure increased by 5% to $437 million (2023: $416 million), due
to higher sustaining capital in the current period as the asset commenced
commercial production in June 2023. This was partly offset by decreased growth
capital following project completion.
Operational outlook
Copper Chile
Los Bronces
Los Bronces is currently mining a single phase with expected lower grades. As
previously disclosed, stripping of additional mining phases is progressing
according to plan, aiming to mitigate previous delays in mine development,
permitting and operational challenges.
Los Bronces is a world-class copper deposit, accounting for more than 2% of
the world's known copper resources. While the operation effectively works
through the challenges in the mine, and until the economics improve, the
older, smaller (c.40% of total plant capacity) and more costly Los Bronces
processing plant will remain on care and maintenance.
Development work for the next higher-grade, softer-ore phase of the mine,
Donoso 2, is under way and is expected to benefit production from early 2027.
The first phase of the Los Bronces integrated water security project is also
ongoing, which will secure a large portion of the mine's water needs through a
desalinated water supply from 2026.
Pre-feasibility studies to advance the permitted Los Bronces open pit
expansion and underground development are progressing and are expected to be
finalised in the second half of 2025.
Collahuasi
Collahuasi is a world-class orebody with significant growth potential. Near
term grades are expected to be c.1.05% TCu, with the exception of 2025 where
the grade temporarily declines to c.0.95% TCu for the year, due to the
processing of lower grade stockpiles as the mine transitions between different
phases. Various debottlenecking options are being studied that are expected to
add c.25,000 tonnes per annum (tpa) (our 44% share) from late 2027. Beyond
that, studies and permitting are under way for a fourth processing line in the
plant and mine expansion that would add up to c.150,000 tpa (our 44% share).
Timing of that expansion is subject to the permitting process; depending on
permit approval, first production could follow from the early 2030s.
A desalination plant is currently under construction that will meet a large
portion of the mine's water requirements when complete in 2026 and has been
designed to accommodate capital-efficient expansion to support the fourth
processing line expansion project. Until then, the operation continues to
progress mitigation measures to optimise and reduce water consumption, secure
third-party sources and materialise an option to provide ultrafiltered sea
water to the operation during the second half of 2025.
El Soldado
Production in 2025 is expected to return to 2023 production levels (c.40,000
tpa) due to planned lower grades, before declining to 30,000-35,000 tpa until
end of mine life which is expected by mid-2028. Options to extend the life of
the mine beyond 2028 are being evaluated.
Copper Chile
These factors are reflected in the guidance which remains unchanged on pages
39-40. Production guidance for Chile for 2025 is 380,000-410,000 tonnes,
impacted by declining grades at most operations in Chile and the full year
impact from the one Los Bronces processing plant which was put on care and
maintenance at the end of July 2024. Production is subject to water
availability, and is expected to be weighted to the second half of 2025 given
the impact from lower grades in the first half, particularly in Q1 at
Collahuasi. 2025 unit cost guidance is c.185 c/lb((1)), higher than the 2024
unit cost of 181 c/lb, reflecting the impact of lower production, partially
offset by the benefit from the weaker Chilean peso guidance spot FX rate and
further cost reductions.
Copper Peru
Quellaveco in Peru is our newest copper mine in our portfolio of world-class
copper assets, designed to produce on average c.300,000 tonnes of copper per
annum.
In the latter part of 2023, a revised mine plan was put into place due to a
localised geotechnical fault. The stripping and pit development work is
progressing well, with other lower grade phases being mined and opened up to
increase the flexibility in the pit. After five years of operating,
maintenance will be carried out on the concentrator plant, including the mills
and conveyors; this is expected to occur in 2027 and 2028, modestly impacting
production in those years.
There is significant expansion potential that could sustain production beyond
the initial high-grade area. Currently, the plant throughput is permitted to a
level of 127,500 tonnes per day (tpd) and a change in legislation in the
middle of 2024 has increased the permit allowance from 5% to 10%, enabling
throughput to increase from 133,800 tpd to c.140,000 tpd. In light of this,
studies are under way for an incremental expansion to c.140,000 tpd,
potentially by late 2026. A subsequent increase to c.150,000 tpd is in the
pre-feasibility study stage, and subject to further permitting, that could
benefit production volumes from late 2027. Beyond that, different expansion
alternatives are under study, including a possible third ball mill. There is
also interesting regional potential that our Discovery team is progressing -
including the adjacent Jilata area, c.10 km away.
These factors are reflected in the unchanged guidance provided on pages 39-40.
Production guidance for Peru for 2025 is 310,000-340,000 tonnes. 2025 unit
cost guidance is c.110 c/lb((1)), higher than the 2024 unit cost of 105 c/lb,
reflecting the impact of lower Molybdenum production and by-product credits,
despite the expected higher copper production.
((1) ) The copper unit costs are impacted by FX rates and pricing of
by-products, such as molybdenum. 2025 unit cost guidance was set at c. 950
CLP:USD for Chile and c. 3.75 PEN:USD for Peru.
Iron Ore
Operational and financial metrics
Production Sales Price Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume cost* revenue* EBITDA* margin* EBIT*
Mt((1)) Mt((1)) $/t((2)) $/t((3)) $m $m $m $m
Iron Ore Total 60.8 60.9 89 35 6,573 2,655 40% 2,135 945 20%
Prior period 59.9 61.5 114 38 8,000 4,013 50% 3,549 909 34%
Kumba Iron Ore((4)) 35.7 36.2 92 39 3,796 1,581 42% 1,260 527 40%
Prior period 35.7 37.2 117 41 4,680 2,415 52% 2,136 538 71%
Iron Ore Brazil (Minas-Rio) 25.0 24.7 84 30 2,777 1,074 39% 875 418 15%
Prior period 24.2 24.3 110 33 3,320 1,598 48% 1,413 371 24%
((1) ) Production and sales volumes are reported as wet metric tonnes.
Product is shipped with c.1.6% moisture from Kumba and c.9% moisture from
Minas-Rio.
((2) ) Prices for Kumba Iron Ore are the average realised export basket
price (FOB Saldanha) (wet basis). Prices for Minas-Rio are the average
realised export basket price (FOB Brazil) (wet basis). Prices for total iron
ore are a blended average.
((3) ) Unit costs are reported on an FOB wet basis. Unit costs for total
iron ore are a blended average.
((4) ) Sales volumes, stock and realised price could differ to Kumba's
stand-alone reported results due to sales to other Group companies.
( )
( )
Operational performance
Kumba
Production was flat at 35.7 Mt (2023: 35.7 Mt) and in line with Transnet's
rail performance. Production was marginally up at Sishen at 25.7 Mt
(2023: 25.4 Mt), offset by a 2% decrease at Kolomela to 10.1Mt (2023:
10.3Mt), reflecting the reconfiguration of the business to align production to
third-party logistics performance.
Sales volumes were down 3% to 36.2 Mt (2023: 37.2 Mt), reflecting the impact
of low levels of finished stock at Saldanha Bay port due to several
derailments during the year, the unscheduled five-day mini-shut by Transnet in
April and adverse weather conditions at the port.
As a result of the Transnet logistics challenges, total finished stock
increased by 0.4 Mt to 7.5 Mt, with stock at the mines increasing by 0.4 Mt to
6.9 Mt and stock at the port is 0.5 Mt.
Minas-Rio
Production increased by 3% to 25.0 Mt (2023: 24.2 Mt), as a result of robust
plans through the year which helped secure the volume and quality of the ore
feed for the plant, in conjunction with good plant stability. Minas-Rio
achieved its best 12-month operational performance ever, demonstrating
operational excellence throughout the year.
Markets
31 December 2024 31 December 2023
Average market price (Platts 62% Fe CFR China - $/tonne) 109 120
Average market price (MB 65% Fe Fines CFR - $/tonne) 123 132
Average realised price (Kumba export - $/tonne) (FOB wet basis) 92 117
Average realised price (Minas-Rio - $/tonne) (FOB wet basis) 84 110
The Platts 65-62 differential averaged $14/dmt in 2024 compared to $12/dmt in
2023, reflecting an improved spread from tighter supply of Vale's high-grade
Carajás fines, despite continued margin pressure at steel mills. Lump premium
averaged $0.1413/dmtu during 2024, compared to $0.1543/dmtu in 2023,
reflecting the impact of lower demand from steel mills and higher supply
availability in China.
Kumba's FOB realised price of $92/wet metric tonne (wmt) was above the
equivalent Platts 62% Fe FOB Saldanha market price (adjusted for moisture) of
$89/wmt in 2024. The premiums for iron content (at 64.1% Fe ) and lump product
(approximately 66%) were partially offset by the impact of provisionally
priced sales volumes.
Minas-Rio's pellet feed product is higher grade (with iron content of c.67%
and lower impurities) so the MB 65 Fines index is used when referring to the
Minas-Rio product. The Minas-Rio realised price of $84/wmt FOB was 3% lower
than the equivalent MB 65 FOB Brazil index (adjusted for moisture) of $87/wmt,
impacted by provisional pricing which more than offset the premium for our
high-quality product.
Financial performance
Underlying EBITDA for Iron Ore decreased by 34% to $2,655 million (2023:
$4,013 million), principally driven by a 22% lower realised iron ore price and
a 1% decrease in sales volumes.
Kumba
Underlying EBITDA decreased by 35% to $1,581 million (2023: $2,415 million),
driven by a lower realised price and lower sales volumes. Unit costs were down
5% at $39/tonne (2023: $41/tonne), as a result of the benefit of the mine and
cost optimisation work ($0.2 billion), partly offset by cost pressures.
Capital expenditure was broadly flat at $527 million (2023: $538 million), due
to lower stay-in-business spend in line with the mine reconfiguration and
optimisation, as well as lower life-extension spend, offset by higher deferred
stripping capitalisation.
Within special items and remeasurements, an impairment reversal of $217
million (before tax and non-controlling interest) was recognised at Kolomela
following revisions to the medium-term production profile in the latest Life
of Asset Plan.
Minas-Rio
Underlying EBITDA decreased by 33% to $1,074 million (2023: $1,598 million),
primarily due to lower realised prices. Unit costs decreased by 9% to
$30/tonne (2023: $33/tonne), primarily due to the weaker Brazilian real and
higher production volume as well as the recognition and capitalisation of ROM
stockpiles from 2024.
Capital expenditure was 13% higher at $418 million (2023: $371 million),
primarily due to the start of the assembly phase for the new tailings
filtration plant, which is expected to startup in 2026.
( )
( )
Operational outlook
Kumba
Production is expected to remain at 35-37 Mtpa in the near term, apart from
2026, which is expected to decrease by c.4Mt to 31-33 Mtpa reflecting the
tie-in of the ultra-high-dense-media-separation (UHDMS) project which was
announced by Kumba in August 2024. Unit costs are expected to be between
$39-40/tonne during this three-year period (previously $38-40/tonne), due to
the slightly stronger South African rand guidance spot FX rate. Sales volumes
for 2025 are expected to be in line with 2025 production as a result of the
low level of finished stock at Saldanha Bay port at the end of 2024 and
Transnet's demonstrated logistics performance in 2024 (80%) compared to 2023
(84%).
These factors are reflected in the guidance provided on pages 39-40.
Production guidance for 2025 is 35-37Mt, subject to third-party rail and port
availability and performance, and 2025 unit cost guidance is c.$39/tonne((2)),
in line with the 2024 unit cost of $39/tonne.
((1) ) Production and sales volumes, stock and realised price are
reported on a wet basis and could differ from Kumba's stand-alone results due
to sales to other Group companies.
Minas-Rio
In the second half of 2025, Minas-Rio will undertake the next inspection of
the 529 km pipeline that carries iron ore slurry from the plant to the port.
Improvements were made to the inspection strategy that extended its duration
to ensure the rigour of data collection while also incorporating some
additional plant maintenance to coincide with the operational stoppage.
Pipeline inspections take place every five years and are validated by external
consultants and agreed with the Brazilian Environmental Authorities.
These factors are reflected in the unchanged guidance provided on pages 38-39.
Production guidance for 2025 is 22-24 Mt. 2025 unit cost guidance is
c.$32/tonne((2)), higher than the 2024 unit cost of $30/tonne, due to lower
production volumes, despite the weaker Brazilian real guidance spot FX rate.
Following a record 12-month performance of 25 million tonnes in 2024, focus
will remain on delivering consistent and stable production, while increasing
the maturity of the capital projects to sustain and grow production volumes as
well as improving the mine plan to minimise ore feed quality variability. In
light of the completion of the transaction to integrate the contiguous Serra
da Serpentina high-grade iron ore resource, options to maximise long-term
value are currently being evaluated.
In parallel, Minas-Rio is focused on increasing tailings storage capacity. The
tailings filtration plant project is on track for completion by early 2026 and
alternative, additional disposal options continue to be studied.
((2) ) 2025 unit cost guidance was set at c.18.60 ZAR:USD for Kumba and
c. 5.75 BRL:USD for Minas-Rio.
Platinum Group Metals (PGMs)
Operational and financial metrics
Production Sales Basket Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume price cost* revenue* EBITDA* margin* EBIT*
PGMs PGMs
koz((1)) koz((2)) $/PGM oz((3)) $/PGM oz((4)) $m $m $m $m
PGMs 3,553 4,078 1,468 957 5,962 1,106 19% 668 1,013 10%
Prior period 3,806 3,925 1,657 968 6,734 1,209 18% 855 1,108 15%
Mogalakwena 953 1,061 1,484 845 1,567 602 38% 368 558 n/a
Prior period 974 1,011 1,718 884 1,740 778 45% 601 519 -
Amandelbult 580 676 1,651 1,217 1,110 198 18% 137 58 n/a
Prior period 634 668 1,934 1,189 1,294 323 25% 276 75 -
Processing and trading((5)) 1,361 1,575 n/a n/a 2,198 373 17% 324 n/a n/a
Prior period 1,346 1,352 - - 2,247 (138) (6)% (173) - -
Other operations((6)) 659 766 1,353 1,022 1,087 (67) (6)% (161) 397 n/a
Prior period 853 894 1,587 973 1,453 246 17% 151 514 -
((1))Production reflects own mined production and purchase of metal in
concentrate. PGM volumes consist of 5E metals and gold.
((2))PGM sales volumes exclude tolling and third-party trading activities.
((3))Price for a basket of goods per PGM oz. The dollar basket price is the
net sales revenue from all metals sold (PGMs, base metals and other metals)
excluding trading and foreign exchange translation impacts, per PGM 5E + gold
ounces sold (own mined and purchase of concentrate) excluding trading.
((4))Total cash operating costs (includes on-mine, smelting and refining costs
only) per own mined PGM ounce of production.
((5))Includes purchase of concentrate from joint operations and third parties
for processing into refined metals, tolling and third-party trading
activities, with the exception of production and sales volumes which exclude
tolling and trading. The disposal of our 50% interest in Kroondal was
completed and effective on 1 November 2023. This resulted in Kroondal moving
to a 100% third-party POC arrangement, until it transferred to a toll
arrangement. As expected, from 1 September 2024, Kroondal transitioned to a
4E toll arrangement on the same terms as other Sibanye-Stillwater tolled
volumes.
((6))Includes Mototolo, Unki, our 50% share of Modikwa (joint operation), and
our 50% share of Kroondal until the disposal of our interest in the joint
operation on 1 November 2023. Other operations margin includes unallocated
market development, care and maintenance, and corporate costs.
Operational performance
Total PGM production decreased by 7% to 3,553,100 ounces (2023: 3,806,100
ounces) primarily due to the Kroondal transition to a 4E toll arrangement (1
September 2024), as well as slightly lower own mined volumes.
Own mined production
PGM production from own-managed mines (Mogalakwena, Amandelbult, Unki and
Mototolo) and equity share of joint operations decreased by 11% to 2,191,800
ounces (2023: 2,460,200 ounces) due to the disposal of Kroondal. Excluding
Kroondal, own mined production decreased by 4%, reflecting lower production
from Amandelbult due to safety stoppages and blending lower grade stockpiles
at Mogalakwena.
Amandelbult production decreased by 9% to 579,800 ounces (2023: 634,200
ounces) primarily due to the fatal safety incidents and subsequent
self-imposed safety stoppages in July and October. The first half of the year
demonstrated improvements in productivity across the Amandelbult Complex
driven by the crew efficiency and mining optimisation work undertaken through
the cost-out initiatives.
Mogalakwena production decreased by 2% to 953,400 ounces (2023: 973,500
ounces) primarily due to blending low grade stockpiles in the first half of
the year as the new bench cut sequence progressed, which resulted in higher
waste tonnes extracted in the short term, as well as the impact from the
downtime and repairs caused by an electrical failure in the North
Concentrator's primary mill.
Production from other operations decreased by 23% to 658,600 ounces (2023:
852,500 ounces) mainly due to the disposal of Kroondal and difficult ground
conditions at Mototolo as a section of the mine nears the end of its life.
( )
Purchase of concentrate
Purchase of concentrate increased by 1% to 1,361,300 ounces (2023: 1,345,900
ounces), reflecting the transition of Kroondal to a 100% third-party purchase
of concentrate arrangement from 1 November 2023.
Kroondal has since transitioned to a 4E tolling arrangement, effective 1
September 2024, as outlined in the Kroondal sales announcement.
Normalising the comparative period to include 100% of Kroondal as a
third-party purchase of concentrate results in a 10% decrease, reflecting
lower third-party receipts and lower Kroondal volumes which had transitioned
to a 4E tolling arrangement.
Refined production and sales volumes
Refined PGM production (excluding toll-treated metal) increased by 3% to
3,916,300 ounces (2023: 3,800,600 ounces) driven by the release of
previously built-up work-in-progress inventory, which has now returned to more
normalised levels. There was no Eskom load-curtailment during the year.
PGM sales volumes increased by 4% to 4,077,800 ounces (2023: 3,925,300 ounces)
as a result of higher refined production and a draw down of finished goods
compared to the same period last year.
Markets
31 December 2024 31 December 2023
Average platinum market price ($/oz) 956 965
Average palladium market price ($/oz) 984 1,336
Average rhodium market price ($/oz) 4,637 6,611
Realised basket price ($/PGM oz) 1,468 1,657
PGM prices in 2024 were lower on average than in 2023. The realised basket
price was $1,468/oz (2023: $1,657/oz), down 11% compared to 2023. This was
driven largely by decreases in the realised prices of rhodium and palladium by
30% and 24% respectively.
The large year-on-year movements were as a result of the sharp price fall in
H1 2023, while over the course of 2024 the realised basket price has been far
more stable. In H2 2024, the basket price was 3% higher than H1 2024.
Palladium remained under pressure during the year, and was the more volatile
of the PGMs, with new multi-year lows followed by sharp rallies as a result of
the market realisation of low metal availability. Rhodium ended the year
higher than it began, albeit staying in a narrow range. Both metals were in a
supply deficit, but faced sluggish automotive demand, as globally vehicle
manufacturers responded to slowing light vehicle sales growth by modestly
curbing production.
Platinum, by contrast, was the most important contributor to the basket price
and continued to show remarkable price stability as its annual average in 2024
was very similar to that of 2023 and 2022. A slow move into deficit was
supportive, as was robust investor demand, but price gains were limited by a
much stronger US dollar.
Financial performance
Underlying EBITDA decreased to $1,106 million (2023: $1,209 million) driven by
an 11% decrease in the PGM basket price and inflationary increases impacting
costs, partly offset by cost saving initiatives. The own mined unit cost
decreased by 1% to $957/PGM ounce (2023: $968/PGM ounce) as a result of cost
saving initiatives and higher capitalised waste stripping, with those benefits
mostly offset by higher inflation and lower own mined production.
Capital expenditure of $1,013 million was 9% down (2023: $1,108 million) as a
result of the rationalisation and planned lower stay-in-business expenditure.
This was partly offset by planned higher spend on lifex projects,
predominantly at Mogalakwena and Mototolo.
Operational outlook
The PGMs business announced an action plan encompassing decisive measures to
improve its operational excellence, organisational effectiveness, and cash
generation with a value-over-volume focus to ensure the long-term
sustainability and competitive position of our PGMs operations.
The Mortimer smelter was placed on care and maintenance at the end of April
2024, and further sustainable cost reduction initiatives were implemented in
2024, delivering on annual cost saving initiatives of c.$0.4 billion from opex
and c.$0.3 billion from capex against a 2023 baseline. All-in-sustaining costs
were reduced significantly, with a 13% improvement to c.$986/3E oz.
These extensive measures have improved the positioning of these world-class
PGM assets for the long term, securing the highly attractive value proposition
of Mogalakwena. These actions underscore the readiness for the PGM business to
be a stand-alone business in 2025.
These factors are reflected in the unchanged guidance provided on pages 39-40.
PGM metal in concentrate production guidance for 2025 is 3.0-3.4 million
ounces, with own mined output of 2.1-2.3 million ounces and purchase of
concentrate (POC) of 0.9-1.1 million ounces. In 2025, POC volumes will be
lower than 2024 reflecting the impact of the Siyanda POC agreement
transitioning to a 4E metals tolling arrangement early in the year, as well as
Kroondal having transitioned to a 4E metals tolling arrangement in September
2024. Refined PGM production guidance for 2025 is 3.0-3.4 million ounces and
is usually lower in the first quarter than the rest of the year due to the
annual stock count and planned processing maintenance. Production remains
subject to the impact of Eskom load-curtailment.
Unit cost guidance for 2025 is c.$970/PGM ounce((1)), higher than the 2024
unit cost of $957/PGM ounce, reflecting the expected impact from higher
year-on-year inflation, partly mitigated by c.$0.2 billion of cost saving
initiatives in 2025 and the slightly weaker South African rand guidance spot
FX rate.
((1) ) Unit cost is per own mined 5E + gold PGMs metal in concentrate
ounce. 2025 unit cost guidance was set at c.18.60 ZAR:USD.
De Beers - Diamonds
Operational and financial metrics((1))
Production Sales Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume Price cost* revenue* EBITDA* margin((6)) EBIT*
'000 '000 $/ct((3)) $/ct((4)) $m((5)) $m $m $m
cts((2))
cts
De Beers 24,712 17,883 152 93 3,292 (25) (1)% (349) 536 (6)%
Prior period 31,865 24,682 147 71 4,267 72 2% (252) 623 (3)%
Botswana 17,935 n/a 143 39 n/a 241 n/a 185 83 n/a
Prior period 24,700 - 168 31 - 412 - 349 74 -
Namibia 2,234 n/a 426 295 n/a 121 n/a 82 41 n/a
Prior period 2,327 - 515 246 - 159 - 123 35 -
South Africa 2,166 n/a 85 115 n/a (54) n/a (126) 312 n/a
Prior period 2,004 - 109 97 - 26 - 5 403 -
Canada 2,377 n/a 79 56 n/a 45 n/a 11 63 n/a
Prior period 2,834 - 85 48 - 35 - (6) 63 -
Trading n/a n/a n/a n/a n/a (50) (3)% (54) 1 n/a
Prior period - - - - - (104) (3)% (111) 2 -
Other((7)) n/a n/a n/a n/a n/a (328) n/a (447) 36 n/a
Prior period - - - - - (456) - (612) 46 -
((1))Prepared on a consolidated accounting basis, except for production, which
is stated on a 100% basis except for the Gahcho Kué joint operation in
Canada, which is on an attributable 51% basis.
((2))Total sales volumes on a 100% basis were 19.4 million carats (2023:
27.4 million carats). Total sales volumes (100%) include De Beers Group's
joint arrangement partners' 50% proportionate share of sales to entities
outside De Beers Group from Diamond Trading Company Botswana and Namibia
Diamond Trading Company.
((3))Pricing for the mining businesses is based on 100% selling value
post-aggregation of goods. Realised price includes the price impact of the
sale of non-equity product and, as a result, is not directly comparable to
the unit cost.
((4))Unit cost is based on consolidated production and operating costs,
excluding depreciation and operating special items, divided by carats
recovered.
((5))Includes rough diamond sales of $2.7billion (2023: $3.6 billion).
((6))EBITDA margin on a total reported basis. On an equity basis, and
excluding the impact of non-mining activities, third‑party sales, purchases,
trading, brands and consumer markets and corporate, the adjusted EBITDA margin
is 35% (2023: 48%).
((7))Other includes Element Six, brands and consumer markets, and corporate.
Markets
Rough diamond trading conditions in 2024 continued to be very challenging in
light of persistent higher than normal midstream inventory levels and the
prolonged period of depressed consumer demand in China.
In the first quarter of 2024, the industry experienced signs of a recovery in
demand for rough diamonds, in part due to the short-term impact of the
voluntary moratorium on rough diamond imports into India at the end of 2023,
coupled with improved demand following the holiday selling season in the
United States. As the year progressed, consumer demand in China contracted
further as economic challenges persisted with retailers in China (previously
the second largest market globally for consumer sales of diamond jewellery)
reducing stocks of polished diamonds, coupled with ongoing caution amongst US
retailers. Consequently, midstream polished inventory levels increased sharply
in the second quarter of 2024.
The seasonally slower third quarter saw this higher than normal inventory
trend continue, resulting in lower demand for rough diamonds. In response,
several producers postponed or cancelled sales events and offered greater
purchasing flexibility. The fourth quarter saw midstream inventory levels
plateau as the reduced rough supply had an impact and, in turn, polished
prices began to stabilise at the end of the year.
Consumer demand for diamond jewellery globally in 2024 is estimated to have
contracted 3-4% year-on-year. In the United States, accounting for just over
50% of diamond jewellery sales, demand is estimated to be down 2%
year-on-year, driven by a decline in the first half of the year, while the
second half demonstrated stabilisation remaining flat year-on-year.
Lab-grown diamond wholesale and retail prices continued to fall throughout
2024 as the bifurcation from natural diamonds progresses, with acceleration in
the second half of the year. In the lead-up to the holiday season, a number of
US retailers, including Lightbox, introduced deep discounts on lab-grown
diamond jewellery amongst increased competition, with some retailers also
including disclaimers for their customers that lab-grown diamonds may not hold
their value over time. Falling lab-grown diamond retail prices have meant
jewellery retailer financial incentives are increasingly shifting in favour of
natural diamond jewellery. While there are positive signs that the impact of
lab-grown diamonds on demand for natural diamonds is peaking, average
lab-grown diamond retail prices do not yet fully reflect the fall in wholesale
prices, so retail prices are expected to decline further. While a proportion
of natural diamond demand continues to be affected in the near-term by
lab-grown diamonds as a result of prevailing retail margins, such margins are
expected to be unsustainable in light of increasing lab-grown diamond supply
volumes, greater levels of competition, and growing consumer awareness of
lab-grown diamond price trends.
Operational performance
Mining
The mining operations delivered steady operational performance, albeit at
lower output levels as the business continued to reconfigure production in
response to prevailing market conditions.
Rough diamond production was reduced by 22% to 24.7 million carats (2023: 31.9
million carats), reflecting a proactive production response to a prolonged
period of lower demand and higher than normal levels of inventory in the
midstream. De Beers continues to focus on managing working capital, and
despite lower sales volumes, inventory has reduced slightly year-on-year
through the careful management of production, purchases and downstream stocks.
In Botswana, production was reduced by 27% to 17.9 million carats (2023: 24.7
million carats), as a result of planned actions to lower production at
Jwaneng.
Production in Namibia decreased by 4% to 2.2 million carats (2023: 2.3 million
carats), reflecting intentional action to lower production at Debmarine
Namibia, which was down 13% year-on-year, partially offset by planned higher
grade mining and better recoveries at Namdeb.
In South Africa, production increased by 8% to 2.2 million carats (2023: 2.0
million carats), as Venetia underground progresses and further benefitting
from a slight improvement in grades of processed ore. The output, however,
remains low in comparison to historical production from the open-pit operation
as the majority of the ore processed continues to be from existing surface
stockpiles. This is expected to increase over the next few years as the
underground project continues its ramp-up.
Production in Canada decreased by 16% to 2.4 million carats (2023: 2.8 million
carats) due to the planned treatment of lower grade ore.
Financial performance
Difficult trading conditions resulted in a year-on-year reduction in revenue
of 23% with total revenue of $3.3 billion (2023: $4.3 billion), primarily due
to a 25% reduction in rough diamond sales to $2.7 billion (2023: $3.6
billion). Total rough diamond sales volumes decreased by 28% to 17.9 million
carats (2023: 24.7 million carats). The average realised price, however,
increased marginally by 3% to $152/ct (2023: $147/ct), reflecting a larger
proportion of higher value rough diamonds being sold, offset by a 20% decrease
in the average rough price index from 133 in 2023 to 107 in 2024.
The consequential impact of lower sales volumes, a lower average price index
and higher unit costs resulted in an underlying EBITDA of $(25) million (2023:
$72 million). The increase in unit cost to $93/ct (2023: $ 71/ct), is
primarily driven by the decision to lower production volumes in response to
the trading conditions.
Capital expenditure decreased by 14% to $536 million (2023: $623 million),
predominantly due to cash preservation and optimisation initiatives. This
includes the rephasing of Venetia underground life-extension and
rationalisation of stay-in-business capex spend. The spend on the balance of
the life-extension projects is consistent period-on-period and the projects
remain on track.
An impairment of $2.9 billion (before tax and non-controlling interests)
(2023: $1.6 billion) to Anglo American's carrying value of De Beers has been
recognised within special items and remeasurements, reflecting further
near-term adverse macro-economic conditions and industry-specific challenges.
Please refer to note 10 in the Condensed financial statements for further
details.
On 3 February 2025, the Government of the Republic of Botswana and De Beers
announced that they had successfully concluded negotiations focused on
establishing a new 10-year sales agreement (through to 2035) for Debswana's
rough diamond production and extending Debswana's mining licences by 25 years
(through to 2054), with the terms being substantively aligned with the Heads
of Terms agreed on 30 September 2023. Following the final governance
approvals, both parties look forward to signing and executing the relevant
agreements with the transaction finally completing when the new mining
licences are issued by the appropriate regulatory authorities in Botswana.
Until the completion of these new agreements, the terms of the existing
agreements will continue to remain in effect.
Corporate strategy
De Beers communicated its new "Origins" strategy at the end of May, with a
focus on four key pillars underpinned by a plan to streamline the business
sustainably by reducing overhead costs by $100 million. These consist of i)
focusing upstream investments on the major projects that will deliver the
highest returns; ii) integrating the midstream to deliver greater efficiency;
iii) resetting the downstream by reinvigorating category marketing and
evolving proprietary brands through development of De Beers Jewellers into a
leading high jewellery maison business and refocusing Forevermark on the
fast-growing Indian market; and iv) pivoting synthetics, with Lightbox
suspending production of lab-grown diamonds for jewellery and Element Six
focusing on developing its position as a world-leading provider of synthetic
diamond technology solutions.
De Beers continues to implement the relevant strategic initiatives and is on
track to deliver the committed overhead cost savings through 2025.
Brands and consumer markets
New natural diamond marketing collaborations were established with
world-leading diamond jewellery retailers: Signet in the US, Tanishq in India,
and Chow Tai Fook in China. The collaborations focus on driving long-term
desirability for natural diamonds in the three largest consumer countries for
diamonds. The collaborations will also benefit from promotional messages being
amplified through the wide reach of these leading retail businesses, as well
as training retail jewellery consultants to better promote natural diamonds.
De Beers Jewellers delivered a consistent performance against the prior period
despite the ongoing challenges in China. The business continues to create
design-led pieces and high jewellery collections to encourage demand growth in
a challenging market. Consistent with the strategy to focus the brand on
India, Forevermark's global operations ramped down.
De Beers also announced the launch of DiamondProof™, a new device to be used
on the jewellery retail counter for rapidly distinguishing between natural
diamonds and lab-grown diamonds. This device will support retailers in
communicating the attributes of natural diamonds, providing customers with
enhanced confidence in the authenticity of their natural diamond purchase and
deterring undisclosed lab-grown diamonds from entering the natural supply
chain.
Market outlook
Near-term market conditions are expected to remain challenging in 2025 as
polished pull-through remains subdued and industry players continue to manage
inventory levels. In the medium-term, production cuts announced by a number of
producers coupled with stabilisation of demand in China and a normalisation of
industry inventory levels are expected to result in modest rough price growth.
Consumer demand and retailer re-stocking are expected to be supported by
marketing for natural diamonds, with the long-term outlook for the natural
diamond industry remaining favourable.
Diamond provenance has the potential to further reinforce demand for De Beers'
ethically-sourced natural rough diamonds. Tracr, the pioneering diamond
traceability platform, is now listing a single country of origin for all newly
registered De Beers-sourced diamonds over 0.5 carats in polished size,
aligning with the size threshold for new diamond import requirements for G7
countries.
Lab-grown diamond wholesale prices continue to fall and have further room to
do so until they converge with the marginal cost of production. Long-term
retailer incentives associated with lab-grown diamonds are expected to
diminish, supported by growing consumer awareness of the low production cost
and relative abundance of lab-grown diamonds, reinforcing their positions as
different products. As the economics of selling lab-grown diamonds become more
challenging, there are signs that retailers in the US are returning their
focus to natural diamonds and this trend is expected to continue.
Operational outlook
Given market challenges, the Venetia project is undergoing a rescoping
exercise to optimise the capital and production profiles.
Production guidance for 2025 is 20-23 million carats (100% basis), reflecting
the challenging rough diamond trading conditions. De Beers continues to
monitor rough diamond trading conditions and will respond accordingly.
Production will then be increased steadily over the next two years to 28-31
million carats (100% basis) in 2027, as the business responds to the
anticipated market recovery.
The 2025 unit cost guidance is c.$94/carat((1)), marginally higher than the
2024 unit cost of $93/carat, reflecting the impact of the lower volumes
partially offset by cost saving initiatives and the benefit of the slightly
weaker South African rand guidance spot FX rate.
((1) ) Unit cost is based on De Beers' proportionate consolidated share
of costs and associated production. 2025 unit cost guidance was set at c.18.60
ZAR:USD.
Steelmaking Coal
Operational and financial metrics
Production Sales Price Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume cost* revenue* EBITDA* margin* EBIT*
Mt((2)) Mt((3)) $/t((4)) $/t((5)) $m $m $m $m
Steelmaking Coal((1)) 14.5 14.4 232 124 3,519 924 26% 480 468 15%
Prior period 16.0 14.9 261 121 4,153 1,320 32% 822 619 27%
( )
((1))Anglo American's attributable share of Jellinbah is 23.3%. Anglo American
agreed the sale of its 33.33% stake in Jellinbah on 2 November 2024, and this
transaction has now completed on 29 January 2025. Production and sales
volumes from Jellinbah post 1 November 2024, after the sale was agreed, have
been excluded. Jellinbah production in November and December 2024 (not
disclosed within the reported numbers) was 0.6 Mt.
((2)) Production volumes are saleable tonnes, excluding thermal coal
production of 1.1 Mt (2023: 1.1 Mt). Includes production relating to
third-party product purchased and processed at Anglo American's operations,
and may include some product sold as thermal coal.
((3)) Sales volumes exclude thermal coal sales of 2.0 Mt (2023: 1.7 Mt).
Includes sales relating to third-party product purchased and processed by
Anglo American.
((4))Realised price is the weighted average hard coking coal and PCI export
sales price achieved at managed operations.
((5))FOB unit cost comprises managed operations and excludes royalties.
Operational performance
Production decreased by 9% to 14.5 Mt (2023: 16.0 Mt), reflecting difficult
strata conditions at the Aquila underground mine which stabilised in October
and the suspension of mining at the Grosvenor longwall operation following the
underground fire on 29 June 2024. Production was also impacted by the planned
longwall move at Moranbah in Q4 2024 and the agreed sale of Jellinbah, where
the benefits of production from 1 November 2024 will not accrue to
Anglo American. These decreases were partially offset by increased production
from the Capcoal open cut operation.
Markets
31 December 2024 31 December 2023
Average benchmark price - hard coking coal ($/tonne) 240 296
Average benchmark price - PCI ($/tonne) 165 219
Average realised price - hard coking coal ($/tonne)((1)) 241 269
Average realised price - PCI ($/tonne)((1)) 177 214
((1))Realised price is the export sales price achieved at managed operations.
Average realised prices differ from the average market prices due to
differences in material grade and timing of shipments. Hard coking coal (HCC)
price realisation was in line with the average benchmark price (2023: 91%), as
a result of a higher proportion of tonnes being shipped in the first half of
the year when prices were higher compared to the second half of the year when
prices were lower.
The average benchmark price for Australian HCC in 2024 was $240/tonne (2023:
$296/tonne). At the start of 2024, supply disruptions kept prices elevated,
with Q1 averaging $308/tonne. However, from Q2 onwards, Australian exports
improved, resulting in HCC prices falling for the subsequent quarters.
In addition, demand for seaborne HCC weakened in the second half of 2024, due
to global steelmaking margins weakening as a result of low steel demand,
despite a reduction in prices of premium HCC. Global crude steel production
declined by 1% year-on-year in 2024, driven by lower steel production in Asia.
Financial performance
Underlying EBITDA decreased to $924 million (2023: $1,320 million), as a
result of a 11% decrease in the weighted average realised price for
steelmaking coal, lower sales volumes and $145 million non-operational costs
associated with Grosvenor in the second half. Also included is $220 million
for the finalisation of the Grosvenor underground fire claim by the Group's
self-insurance entity that was received in December. Unit costs increased by
2% to $124/tonne (2023: $121/tonne), reflecting inflation and lower
production.
Capital expenditure decreased to $468 million (2023: $619 million), primarily
reflecting the reduced spend at Grosvenor following the underground fire in
June 2024.
Within special items and remeasurements, an impairment charge of $226 million
(before tax) was recognised at Moranbah-Grosvenor. The charge is a function of
the price allocation between the various operating assets specified within the
recently agreed SPAs.
Operational outlook
On 25 November 2024, the signing of definitive agreements to sell the entirety
of our steelmaking coal business was announced, generating up to $4.8 billion
in aggregate gross cash proceeds, including the already completed sale of our
interest in Jellinbah for approximately $1.0 billion.
Anglo American agreed the sale of its 33.33% stake in Jellinbah on 2 November
2024, and this transaction completed on 29 January 2025. Production and sale
volumes from Jellinbah post 1 November 2024, after the sale was agreed, have
been excluded from the Group's production report.
Export steelmaking coal production guidance for 2025 is 10-12 Mt, as it
excludes Grosvenor given the operation remains suspended, and production from
Jellinbah. There are no planned longwall moves at Moranbah in 2025. A
walk-on/walk-off longwall move at Aquila, that will have a minimal production
impact is planned for late Q3 2025.
2025 unit cost guidance is c.$105/tonne((1)), lower than the 2024 unit cost of
$124/tonne, reflecting the benefit from no underground longwall move at
Moranbah and the suspension of the Grosvenor underground longwall operations
in 2025, as well as the benefit from cost saving initiatives implemented from
2024. The non-operational costs associated with Grosvenor for 2025 (excluded
from the unit cost) is expected to be c.$0.1 billion.
((1) ) 2025 unit cost guidance was set at c.1.60 AUD:USD.
Nickel
Operational and financial metrics
Production Sales Price Unit Group Underlying EBITDA Underlying Capex* ROCE*
volume volume cost* revenue* EBITDA* margin* EBIT*
t t $/lb((1)) c/lb((2)) $m $m $m $m
Nickel 39,400 38,500 6.82 481 646 92 14% 80 74 14%
Prior period 40,000 39,800 7.71 541 653 133 20% 62 91 6%
((1))Realised price.
((2))C1 unit cost.
Operational performance
Nickel production was broadly stable at 39,400 tonnes (2023: 40,000 tonnes),
reflecting operational stability at both sites.
Markets
31 December 2024 31 December 2023
Average market price ($/lb) 7.63 9.74
Average realised price ($/lb) 6.82 7.71
Differences between the market price (which is LME-based) and our realised
price (the ferronickel price) are due to the discounts to the LME price, which
depend on market conditions, supplier products and consumer preferences.
The LME nickel price averaged $7.63/lb in 2024, 22% lower than the prior
period (2023: $9.74/lb). The price weakness was as a result of oversupply from
Indonesia and China, despite several mine closures and supply disruptions and
an increase in visible exchange stockpiles highlighting the refined market
surplus. Demand nevertheless held up relatively well during the year, helped
by solid demand from batteries and stainless steel.
Financial performance
Underlying EBITDA decreased by 31% to $92 million (2023: $133 million), as
lower realised prices and sales volumes more than offset the benefit of lower
C1 unit costs. The C1 unit costs decreased by 11% to 481 c/lb (2023: 541c/lb),
driven by the weaker Brazilian real, lower energy input costs and process
efficiencies.
Capital expenditure decreased by 19% to $74 million (2023: $91 million),
mainly due to higher deferred stripping costs capitalised in the prior period.
Operational outlook
The next higher grade area of the pit is currently going through permitting,
with production expected in the early 2030s to blend with the lower grade
areas of the existing pit. Additional drilling is under way to increase
coverage and enhance confidence levels within the geological models.
Production guidance for 2025 is 37,000-39,000) tonnes, reflecting the benefit
of strong operational performance and process stability demonstrated in 2024.
2025 unit cost guidance is c.505 c/lb((1)), higher than 2024 unit cost of 481
c/lb, reflecting the impact from expected higher input costs and lower
production volumes, more than offsetting the weaker Brazilian real guidance
spot FX rate.
((1) ) 2025 unit cost guidance was set at c. 5.75 BRL:USD.
Manganese
Operational and financial metrics
Production Sales Group Underlying EBITDA Underlying Capex* ROCE*
volume volume revenue* EBITDA* margin* EBIT*
Mt Mt $m $m $m $m
Manganese 2.3 1.9 359 116 32 % 31 - 16%
Prior period 3.7 3.7 670 231 34 % 145 - 81%
Operational performance
Attributable manganese ore production has decreased 38% to 2.3 Mt (2023: 3.7
Mt), due to the ongoing temporary suspension of the South32 Australian
operation following the impacts of the tropical cyclone Megan. The weather
event caused widespread flooding and significant damage to critical
infrastructure. Operational recovery focused on re-establishing critical
services and undertaking a substantial dewatering programme, enabling a phased
return to mining activities in June 2024, which have steadily increased during
the fourth quarter. Investment in crucial infrastructure, which included a
critical bridge connecting the northern mining pits and the primary
concentrator, as well as the wharf infrastructure, continues.
The sale of the South African manganese alloy smelter, which has been on care
and maintenance since March 2020, is subject to certain conditions and is
expected to complete by the end of 2025.
Financial performance
Underlying EBITDA decreased by 50% to $116 million (2023: $231 million),
primarily driven by a 49% decrease in export sales from the Australian
operation, following the damage caused by the tropical cyclone in March 2024
and the weaker average realised manganese ore price. This was partially offset
by lower operating costs. Insurance proceeds of $60 million (40% basis) for
the cyclone damage have been received to date, with a further $60 million of
claims approved in the fourth quarter.
The 2024 average benchmark price for manganese ore (Metal Bulletin 44%
manganese ore CIF China) increased by 17% to $5.56/dmtu (2023: $4.75/dmtu),
reflecting the tightened seaborne market impacted by the cyclone damage to
critical infrastructure at the South32 Australian operation in March, which
elevated prices. However, in the second half of the year, overall supply
recovered in the seaborne market, while global steelmaking margins weakened,
resulting in prices falling in Q4 2024 to below that seen in Q4 2023.
( )
( )
Crop Nutrients
Operational and financial metrics
Production Sales Group Underlying EBITDA Underlying Capex* ROCE*
volume volume revenue* EBITDA* margin* EBIT*
$m $m $m $m
Crop Nutrients n/a n/a 188 (34) n/a (35) 834 n/a
Prior period - - 225 (60) - (61) 641 -
Woodsmith project n/a n/a n/a n/a n/a n/a 834 n/a
Prior period - - - - - - 641 -
Other((1)) n/a n/a 188 (34) n/a (35) n/a n/a
Prior period - - 225 (60) - (61) - -
((1))Other comprises projects and corporate costs as well as the share in
associate results from The Cibra Group, a fertiliser distributor based
in Brazil.
Crop Nutrients
Anglo American is developing Woodsmith, a large scale, long-life Tier 1 asset
in the north east of England, to access the world's largest known deposit of
polyhalite - a natural mineral fertiliser product containing potassium,
sulphur, magnesium and calcium - four of the six nutrients that every plant
needs to grow.
The Woodsmith project is located on the North Yorkshire coast, just south of
Whitby, where polyhalite ore will be extracted via two 1.6 km deep mine shafts
(a service shaft and a production shaft) and then transported to the port area
in Teesside via an underground conveyor belt in a 37 km mineral transport
system (MTS) tunnel, thereby minimising any environmental impact on the
surface. The polyhalite can then be developed into POLY4, our comparatively
low-carbon multi-nutrient polyhalite product, at a materials handling facility
in the port area, before being exported to a network of customers around the
world from the priority access port facility.
Progress update
Woodsmith project
In May 2024, we announced that in order to support deleveraging of our balance
sheet, we will be slowing the pace of development of the Woodsmith project in
the near-term. Crop Nutrients is one of the three businesses within our
simplified portfolio and, as such, the current focus is on preserving the
exceptional long-term value of this high-quality asset and the commercial
opportunity that it offers to support the project's full development.
Following the slowdown decision, a detailed review was conducted to identify
the critical value-adding works to be executed and activities to be carried
out during the slowdown period to de-risk the overall project schedule,
preserve progress in areas that will be entering care and maintenance, and
further optimise certain scopes of the project to be ready for ramp-up when
conditions allow.
Shaft sinking activities are continuing on the service shaft in order to
progress through the key Sherwood sandstone strata - a water-bearing layer of
hard rock. Progress through this strata will help to de-risk the overall
project schedule. The service shaft is now at a depth of 804 metres, having
intersected over 10 metres of the sandstone strata. Shaft excavation will
progress through the sandstone strata for the duration of 2025. Sinking
activities on the production shaft were paused in June 2024 at a depth of 712
metres, representing c.45% of the shaft's ultimate depth. During the year, the
tunnel reached the final intermediate shaft at Ladycross, where the tunnel
boring machine underwent a planned maintenance stop, during which time the
tunnel and Ladycross shaft were successfully connected. Tunnel boring
activities have continued at a significantly reduced pace, which will continue
during 2025. The tunnel has now reached c.29.3 km, approximately 80% of the
total 37 km length.
Value-preservation work during the slowdown period also includes maintenance
of key permits and preservation of land rights to allow project ramp-up in due
course, and execution of the study programme, focused on enhancing the
project's configuration to enable efficient, scalable mining methods and
optimising additional infrastructure. The study programme re-scoping considers
the revised capital schedule and development plan and importantly allows us to
review project and business development opportunities, to optimise our
business plans prior to ramping up again when conditions allow. The expected
final design capacity remains c.13 Mtpa, subject to ongoing studies and
approval. Work is also continuing to identify and secure one or more strategic
syndication partners for Woodsmith ahead of consideration by the Board for
approval and subsequent project ramp-up, anticipated from 2027.
The current reduced pace of construction will result in an extended
development schedule and, as set out in July 2024, an impairment charge of
$1.6 billion was recognised in H1 2024 to the carrying value of the asset
within 'special items and remeasurements'.
Capital expenditure for 2024 was $834 million (2023: $641 million), focused on
core infrastructure, with the remaining $0.1 billion deferred to 2025 due to
the slowdown activities. Capital expenditure for 2025 is expected to be c.$0.3
billion (previously c.$0.2 billion) and 2026 is nil. Operating expenditure for
2025 and 2026 is expected to be c.$0.1 billion (previously c.$0.2 billion) and
c.$0.1 billion, respectively.
We will continue to fund our Thriving Communities programmes that focus on
vulnerable young people. We are also engaging regularly with local
stakeholders and community partners to ensure that they are informed of
changes to the project and any concerns are addressed. We are continuing to
work closely with a number of local organisations on a social response plan
that has already helped a significant number of the people affected by the
slowdown to find new roles in the local area through our partnerships with
other businesses, suppliers and local councils.
Market development
Polyhalite products provide farmers with a fertiliser solution to tackle the
three key challenges facing the food industry today - the increasing demand
for food from less available land; the need to reduce the environmental impact
of farming; and the deteriorating health of soils.
We have made considerable progress in 2024, including through the signing of
Memorandums of Understanding with two major Chinese fertiliser companies in
August 2024 to further develop the market for polyhalite in China, and the
signing of a new agreement to reinforce our European fertiliser partnership
with Cefetra in November 2024.
Through our global agronomy programme, we have conducted over 1,900 field
demonstrations to date, on over 80 crops, and our research continues to
reinforce the superior qualities and characteristics of POLY4. In November
2024, we entered into a pioneering agreement with the International Atomic
Energy Agency (IAEA), an autonomous international organisation within the
United Nations (UN), to research the effectiveness of polyhalite on mitigating
soil salinisation - a growing threat to global food security. This five-year
project is the first private partnership for the IAEA and demonstrates the
potential for polyhalite, through its unique physical characteristics, to help
tackle a global challenge.
During the slowdown period, the focus of marketing work will be on the key
commercial and technical relationships that are already well established. This
will maintain a presence in our key selling regions, consolidate the data that
we have around product characteristics and performance, and develop our
understanding of the potential for value adding blended polyhalite products.
Woodsmith remains a Tier 1 asset aligned with the demand trends of
decarbonisation and food security. Anglo American has high confidence, backed
by its proven track record in project delivery, to develop the Woodsmith
project once the critical studies have been completed, the pathway to
syndication is clear and the balance sheet is suitably deleveraged.
( )
( )
Corporate and Other
Financial metrics
Group Underlying Underlying Capex*
revenue* EBITDA* EBIT*
$m $m $m $m
Corporate and Other 471 (179) (529) 22
Prior period 440 (193) (403) 59
Exploration n/a (118) (118) 1
Prior period - (107) (107) 3
Corporate activities and unallocated costs((1)) 471 (61) (411) 21
Prior period 440 (86) (296) 56
((1))Revenue within Corporate activities and unallocated costs primarily
relates to third-party shipping activities, as well as the Marketing business'
energy solutions activities. Refer to note 4 to the Condensed financial
statements for more detail.
Financial overview
Exploration
Exploration expenditure was $118 million, 10% higher than the prior period
(2023: $107 million), primarily due to the impact of timing differences
incurred in the prior year.
Corporate activities and unallocated costs
Underlying EBITDA was a $61 million loss (2023: $86 million loss), arising
primarily from the payment of the Grosvenor gas ignition claim by the Group's
self-insurance entity, which results in an expense in Corporate activities and
a benefit included in the underlying EBITDA of Steelmaking Coal. Corporate
activities includes a strong performance within the Marketing business'
shipping activities, partially offset by lower earnings from the Marketing
business' energy solutions activities. Corporate cost savings of $0.3 billion
were realised and are partially recognised in the overheads of the underlying
businesses.
Guidance summary
Production and unit costs
Unit costs Production volumes
2025F
Units 2025F 2026F 2027F
Copper((1)) c.151 c/lb kt 690-750 760-820 760-820
Iron ore((2)) c.$36/t Mt 57-61 54-58 59-63
PGMs - metal in concentrate((3)) c.$970/oz 3.0-3.4 3.0-3.4 3.0-3.5
Moz
Own mined Moz 2.1-2.3 2.1-2.3 2.3-2.5
Purchase of concentrate Moz 0.9-1.1 0.9-1.1 0.7-1.0
PGMs - refined((4)) Moz 3.0-3.4 3.0-3.4 3.0-3.5
Diamonds((5)) c.$94/ct Mct 20-23 26-29 28-31
Steelmaking Coal((6)) c.$105/t Mt 10-12 n/a n/a
Nickel((7)) c.505 c/lb kt 37-39 37-39 36-38
Further commentary on the operational outlook at each business is included
within the respective business reviews on pages 17-36.
Note: Unit costs exclude royalties, depreciation and include direct support
costs only. 2025 unit cost guidance was set at: c. 950 CLP:USD, c. 3.75
PEN:USD, c. 5.75 BRL:USD, c.18.60 ZAR:USD, c.1.60 AUD:USD.
((1)) Copper business only. On a contained-metal basis. Total copper is the
sum of Chile and Peru. Unit cost total is a weighted average based on the
mid-point of production guidance. 2025 Chile: 380-410 kt; Peru 310-340 kt.
2026 Chile: 440-470 kt; Peru: 320-350 kt. 2027 Chile: 450-480 kt; Peru 310-340
kt. In 2025, copper production is impacted by lower grades at most operations
in Chile and from the smaller Los Bronces processing plant being on care and
maintenance. In 2026, production benefits from improved grades at Collahuasi
in Chile and higher plant throughput in Peru. In 2027, production benefits
from higher grades at Los Bronces and higher throughput at Collahuasi in
Chile, partially offset by slightly lower production in Peru due to planned
plant maintenance, including mills and conveyors. Chile production is subject
to water availability, and is expected to be weighted to the second half of
2025 given the impact from lower grades in the first half, particularly in Q1
at Collahuasi. 2025 unit cost guidance for Chile is c.185 c/lb and for Peru is
c.110 c/lb.
((2)) Wet basis. Total iron ore is the sum of Kumba and Minas-Rio. Unit cost
total is a weighted average based on the mid-point of production guidance.
2025 Kumba: 35-37 Mt; Minas-Rio: 22-24 Mt. 2026 Kumba: 31-33 Mt; Minas-Rio:
23-25 Mt. 2027 Kumba: 35-37 Mt; Minas-Rio: 24-26 Mt. In 2025, Minas-Rio
production guidance reflects a pipeline inspection (that occurs every five
years), planned for the second half of the year. In 2026, Kumba production is
lower by c.4 Mt due to tie-in activities required for the
ultra-high-dense-media-separation (UHDMS) project which was announced by Kumba
in August 2024. Kumba production is subject to the third-party rail and port
availability and performance. 2025 unit cost guidance for Kumba is c.$39/tonne
and for Minas-Rio is c.$32/tonne.
((3)) Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.
Production is 5E + gold PGMs produced metal in concentrate ounces. Includes
own mined production and purchased concentrate volumes - please see split in
above table. The average M&C split by metal is Platinum: c.44%, Palladium:
c.32% and Other: c.24%. In 2025, POC volumes will be lower than 2024
reflecting the impact of the Siyanda POC agreement transitioning to a 4E
metals tolling arrangement early in the year, as well as Kroondal having
transitioned to a 4E metals tolling arrangement in September 2024. In 2027,
own mined production benefits from higher grades at Mogalakwena, Dishaba
projects coming online at Amandelbult and the steady ramp-up of Der Brochen,
while POC is impacted by anticipated lower third-party receipts. Production
remains subject to the impact of Eskom load-curtailment.
((4)) 5E + gold produced refined ounces. Refined production excludes toll
refined material. Includes own mined production and purchased concentrate
volumes. Production remains subject to the impact of Eskom load-curtailment.
Refined production is usually lower in the first quarter than the rest of the
year due to the annual stock count and planned processing maintenance.
((5)) Production is on a 100% basis except for the Gahcho Kué joint
operation, which is on an attributable 51% basis. Production is lower in 2025
and 2026 reflecting the challenging rough diamond trading conditions. De Beers
continues to monitor rough diamond trading conditions and will respond
accordingly. Unit cost is based on De Beers' proportionate consolidated share
of costs and associated production.
((6))Steelmaking Coal FOB/tonne unit cost comprises managed operations and
excludes royalties. Production excludes thermal coal by-product. Production
guidance in 2025 excludes Grosvenor (~4Mt) given the operation remains
suspended following an underground fire in June 2024, and production from
Jellinbah. Definitive agreements to sell the entirety of the Steelmaking Coal
business were announced in November 2024. Anglo American has sold its interest
in Jellinbah to Zashvin Pty Limited, and this transaction completed on 29
January 2025. The remaining Steelmaking Coal portfolio will be sold to Peabody
Energy, subject to relevant approvals, and this transaction is expected to
complete by the third quarter of 2025. Production guidance remains subject to
the completion of the agreed sale and guidance from 2026 onwards has been
removed as the assets are anticipated to be under new ownership at that stage.
There are no planned longwall moves at Moranbah in 2025. A walk-on/walk-off
longwall move at Aquila, that will have a minimal production impact is planned
for late Q3 2025.
((7)) Nickel operations in Brazil only. The Group also produces approximately
20 kt of nickel on an annual basis from the PGM operations. Production
guidance in 2025 and 2026 has been revised higher reflecting the benefit of
strong operational performance and process stability demonstrated in 2024. In
2027, production is impacted by lower grades.
Capital expenditure ($bn)((1))
Current portfolio 2025F 2026F 2027F (new)
Growth c.$0.8bn (previously c.$0.5bn) c.$0.8bn (previously c.$0.3bn) c.$0.9bn
Includes ~$0.3bn Woodsmith capex((2)) (previously ~$0.2bn)
Sustaining c.$4.3bn (previously c.$4.4bn) c.$3.9bn (previously c.$4.0bn) c.$3.9bn
Reflects c.$3.5bn baseline, c.$0.5bn lifex projects (previously c.$0.7bn) and Reflects c.$3.0bn baseline (previously c.$3.5bn), c.$0.8bn lifex projects Reflects c.$3.2bn baseline and
c.$0.3bn Collahuasi desalination plant((3)) (previously c.$0.2bn) (previously c.$0.5bn) and c.$0.1bn Collahuasi desalination plant((3))
c.$0.7bn lifex projects
Total c.$5.1bn (previously c.$4.9bn((4))) c.$4.7bn (previously c.$4.3bn((4))) c.$4.8bn
( )
Simplified portfolio 2025F 2026F 2027F (new)
Growth c.$0.7bn c.$0.7bn c.$0.9bn
Includes ~$0.3bn Woodsmith capex((2))
Sustaining c.$2.4bn c.$2.3bn c.$2.1bn
Reflects c.$2.0bn baseline, c.$0.1bn lifex projects and c.$0.3bn Collahuasi Reflects c.$2.2bn baseline, c.$0.1bn Collahuasi desalination plant((3)) Reflects c.$2.1bn baseline
desalination plant((3))
Total c.$3.1bn c.$3.0bn c.$3.0bn
Further details on Anglo American's high quality growth and life-extension
projects, including details of the associated volumes benefit, are disclosed
on pages 12-14.
Long term sustaining capital expenditure for the simplified portfolio is
expected to be $2.0 billion per annum((5)), excluding life-extension projects.
Other guidance
- 2025 depreciation: $3.0-3.2 billion
- 2025 underlying effective tax rate: 40-43%((6))
- Long-term underlying effective tax rate (simplified portfolio):
38-42%((6))
- Dividend payout ratio: 40% of underlying earnings
- Net debt:EBITDA: <1.5x at the bottom of the cycle
((1))Cash expenditure on property, plant and equipment including related
derivatives, net of proceeds from disposal of property, plant and equipment,
and includes direct funding for capital expenditure from non-controlling
interests. Guidance includes unapproved projects and is, therefore, subject to
the progress of project studies, permitting and approval. Refer to the 2024
results presentation for further detail on the breakdown of the capex guidance
at project level.
((2))Woodsmith: operating costs for 2025 and 2026 are expected to be c.$0.1
billion (previously c.$0.2 billion) and c.$0.1billion, respectively.
((3))Collahuasi desalination capex shown includes related infrastructure, with
other water management projects included in baseline sustaining. Attributable
share of capex at 44%.
((4))Previous 2025 capital expenditure guidance, within baseline sustaining,
included c.$0.2bn for the Grosvenor mine which remains suspended and won't be
incurred going forward. Previous 2026 capital expenditure guidance, within
baseline sustaining, included c.$0.6bn for the Steelmaking Coal business,
which as a result of the agreed sale of the assets, expected to complete by
the third quarter of 2025 (subject to relevant approvals), will no longer be
applicable for 2026 and has been removed from guidance.
((5))Long-term sustaining capex guidance is shown on a 2025 real basis and is
for the simplified portfolio.
((6)) Underlying effective tax rate is highly dependent on a number of
factors, including the mix of profits and any relevant tax reforms impacting
the countries where we operate, and may vary from guidance, which in 2025 is
especially dependent on the timing of the demergers and divestments.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Tyler Broda
james.wyatt-tilby@angloamerican.com tyler.broda@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 1470
Marcelo Esquivel Michelle West-Russell
marcelo.esquivel@angloamerican.com michelle.west-russell@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 1494
Rebecca Meeson-Frizelle Asanda Malimba
rebecca.meeson-frizelle@angloamerican.com asanda.malimba@angloamerican.com
Tel: +44 (0)20 7968 1374 Tel: +44 (0)20 7968 8480
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Ernest Mulibana
ernest.mulibana@angloamerican.com
Tel: +27 82 263 7372
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, with a broad range of future development
options, provides many of the future-enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every
day demands of billions of consumers. With our people at the heart of our
business, we use innovative practices and the latest technologies to discover
new resources and to mine, process, move and market our products to our
customers - safely and sustainably.
As a responsible producer of copper, nickel, platinum group metals, diamonds
(through De Beers), and premium quality iron ore and steelmaking coal - with
crop nutrients in development - we are committed to being carbon neutral
across our operations by 2040. More broadly, our Sustainable Mining Plan
commits us to a series of stretching goals to ensure we work towards a healthy
environment, creating thriving communities and building trust as a corporate
leader. We work together with our business partners and diverse stakeholders
to unlock enduring 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.
www.angloamerican.com (http://www.angloamerican.com)
Webcast of presentation:
A live webcast of the results presentation, starting at 9.00am UK time on 25
July 2024, can be accessed through the Anglo American website at
www.angloamerican.com (http://www.angloamerican.com)
Note: Throughout this results announcement, '$' denotes United States dollars
and 'cents' refers to United States cents. Tonnes are metric tons, 'Mt'
denotes million tonnes and 'kt' denotes thousand tonnes, unless otherwise
stated.
Group terminology
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.
Disclaimer
This document is for information purposes only and does not constitute, nor is
to be construed as, an offer to sell or the recommendation, solicitation,
inducement or offer to buy, subscribe for or sell shares in Anglo American
or any other securities by Anglo American or any other party. Further, it
should not be treated as giving investment, legal, accounting, regulatory,
taxation or other advice and has no regard to the specific investment or other
objectives, financial situation or particular needs of any recipient.
Forward-looking statements and third-party information:
This document includes forward-looking statements. All statements other than
statements of historical facts included in this document, 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, prospects and projects (including
development plans and objectives relating to Anglo American's products,
production forecasts and Ore Reserve and Mineral Resource positions) and
sustainability performance related (including environmental, social and
governance) goals, ambitions, targets, visions, milestones 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
product prices, unanticipated downturns in business relationships with
customers or their purchases from Anglo American, resource exploration and
project development capabilities and delivery, recovery rates and other
operational capabilities, safety, health or environmental incidents, the
effects of global pandemics and outbreaks of infectious diseases, the impact
of attacks from third parties on our information systems, natural catastrophes
or adverse geological conditions, climate change and extreme weather events,
the outcome of litigation or regulatory proceedings, the availability of
mining and processing equipment, the ability to obtain key inputs in a timely
manner, the ability to produce and transport products profitably, the
availability of necessary infrastructure (including transportation) services,
the development, efficacy and adoption of new or competing technology,
challenges in realising resource estimates or discovering new economic
mineralisation, the impact of foreign currency exchange rates on market prices
and operating costs, the availability of sufficient credit, liquidity and
counterparty risks, the effects of inflation, terrorism, war, conflict,
political or civil unrest, uncertainty, tensions and disputes and economic and
financial conditions around the world, evolving societal and stakeholder
requirements and expectations, shortages of skilled employees, unexpected
difficulties relating to acquisitions or divestitures, competitive pressures
and 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 document. 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 Guidance 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 document 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
included in this document is sourced from third party sources (including, but
not limited to, externally conducted studies and trials). As such it has not
been independently verified and presents the views of those third parties, but
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.
©Anglo American Services (UK) Ltd 2025. (TM) and (TM) are trade marks of
Anglo American Services (UK) Ltd.
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: 549300S9XF92D1X8ME4
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