REG - Anglo American PLC - Anglo American Production Report Q2 2024
18/07/2024 07:00
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RNS Number : 8459W Anglo American PLC 18 July 2024
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18 July 2024
Anglo American plc
Production Report for the second quarter ended 30 June 2024
Duncan Wanblad, Chief Executive of Anglo American, said: "We have delivered a
strong second quarter performance overall as we continue to embed operational
excellence across the asset base. Minas-Rio achieved record second quarter
production, while our copper operations in Chile and Peru both performed well
against our plans. We are focused on continuing to deliver our strategic
priority of operational excellence - improving performance stability is
driving increased confidence in operational plans, including production
volumes and unit costs.
"De Beers' diamond production reflects the lower revised guidance announced in
our first quarter production report. Trading conditions became more
challenging in the second quarter as Chinese consumer demand remained subdued.
With higher than normal levels of inventory remaining in the midstream and an
expectation for a protracted recovery, we are therefore actively assessing
options with our partners to further reduce production to manage our working
capital and preserve cash.
"At the end of June, the Grosvenor mine experienced an underground fire and
the workforce was safely evacuated without injury. As a result of the
incident, the operation is suspended and Grosvenor's production is excluded
from the Steelmaking Coal guidance for the second half of the year.
"In May, we announced our plan to accelerate our strategy by simplifying the
portfolio and focusing on our world-class assets in copper, premium iron ore
and crop nutrients. We are working at pace to execute on the asset
divestments, including Steelmaking Coal - with the intention of optimising
value for our shareholders, while minimising frictional costs, mitigating
execution risks, and enabling the delivery of significant sustainable cost
savings. Work is progressing with the aim of substantively completing this
transformation by the end of 2025."
Q2 2024 highlights
• Copper production is tracking well to our full year plan and is 2% higher
than the first half of 2023, with the 6% decrease in the second quarter driven
by lower throughput at Los Bronces and El Soldado, and planned lower grades at
Quellaveco, partially offset by higher throughput at Collahuasi driven by the
fifth ball mill.
• Minas-Rio achieved a record second quarter performance, offset by a
planned decrease at Kumba to align with third-party logistics constraints,
resulting in flat production year-on-year for the iron ore businesses.
• Production from our Platinum Group Metals (PGMs) operations was 2% lower,
reflecting expected lower volumes from Kroondal (which is reported as
third-party purchase of concentrate from November 2023) and lower production
at Mototolo, Mogalakwena and Unki, partially offset by 7% higher production at
Amandelbult.
• Steelmaking coal production increased by 26%, driven by higher production
from the Grosvenor underground mine and at the Dawson open cut operation,
partially offset by challenging strata conditions at the Aquila underground
longwall and higher waste tonnes extracted at the Capcoal open cut operation.
As a result of the underground fire at Grosvenor, the operation is currently
suspended and Grosvenor's production is excluded from Steelmaking Coal
guidance for the second half of the year. The new guidance range for the year
is 14-15.5 million tonnes, with unit costs revised to $130-140/tonne((1)).
• Rough diamond production decreased by 15%, driven by a proactive approach
to manage inventory and preserve cash.
• Nickel production was broadly flat, reflecting operational stability.
Production Q2 2024 Q2 2023 % vs. Q2 2023 Q1 2024 % vs. Q1 2024
Copper (kt)((2)) 196 209 (6)% 198 (1)%
Iron ore (Mt)((3)) 15.6 15.6 0% 15.1 3%
Platinum group metals (koz)((4)) 921 943 (2)% 834 10%
Diamonds (Mct)((5)) 6.4 7.6 (15)% 6.9 (6)%
Steelmaking coal (Mt) 4.2 3.4 26% 3.8 12%
Nickel (kt)((6)) 10.0 9.9 1% 9.5 5%
Manganese ore (kt) 356 970 (63)% 784 (55)%
On a copper equivalent basis, Q2 2024 was 2% higher than Q1 2024 and 3% lower
than Q2 2023.
(1) Previously, Steelmaking Coal production guidance was 15-17 million tonnes
with unit cost guidance of c.$115/tonne.
(2) Contained metal basis. Reflects copper production from the Copper
operations in Chile and Peru only (excludes copper production from the
Platinum Group Metals business).
(3) Wet basis.
(4) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium,
rhodium, ruthenium and iridium plus gold). Reflects own mined production and
purchase of concentrate.
(5) Production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis.
(6) Reflects nickel production from the Nickel operations in Brazil only
(excludes 7.3 kt of Q2 2024 nickel production from the Platinum Group Metals
business).
Production and unit cost guidance summary
2024 production guidance 2024 unit cost guidance((1))
Copper((2)) 730-790 kt c.157 c/lb
Iron Ore((3)) 58-62 Mt c.$37/t
Platinum Group Metals((4)) 3.3-3.7 Moz c.$920/oz
Diamonds((5)) 26-29 Mct c.$90/ct
Steelmaking Coal((6)) 14-15.5 Mt $130-140/t
(previously 15-17Mt) (previously c.$115/t)
Nickel((7)) 36-38 kt c.550 c/lb
(previously c.600 c/lb)
(1) Unit costs exclude royalties and depreciation and include direct support
costs only. 2024 unit cost guidance was set at: c.850 CLP:USD, c.3.7 PEN:USD,
c.5.0 BRL:USD, c.19 ZAR:USD, c.1.5 AUD:USD.
(2) Copper business only. On a contained-metal basis. Total copper production
is the sum of Chile and Peru: Chile: 430-460 kt and Peru: 300-330 kt.2024 unit
cost guidance for Chile: c.190 c/lb and Peru: c.110 c/lb. The copper unit
costs are impacted by FX rates and pricing of by-products, such as molybdenum.
Production in Chile is weighted to the first half of the year owing to the
planned closure of the Los Bronces plant, which is now scheduled for the end
of July; production is also subject to water availability. Production in Peru
is weighted to the second half of the year as a higher grade area of the mine
is accessed.
(3) Wet basis. Total iron ore is the sum of operations at Kumba in South
Africa and Minas-Rio in Brazil. Kumba: 35-37 Mt and Minas-Rio: 23-25 Mt. Kumba
production is subject to third-party rail and port availability and
performance. 2024 unit cost guidance for Kumba: c.$38/t and Minas-Rio:
c.$35/t.
(4) 5E + gold produced metal in concentrate (M&C) ounces. Includes own
mined production and purchased concentrate (POC) volumes. M&C production
by source is expected to be own mined of 2.1-2.3 million ounces and purchase
of concentrate of 1.2-1.4 million ounces. The average M&C split by metal
is Platinum: c.45%, Palladium: c.35% and Other: c.20%. Refined production (5E
+ gold) is expected to be 3.3-3.7 million ounces. Production remains subject
to the impact of Eskom load-curtailment. Unit cost is per own mined 5E + gold
PGMs metal in concentrate ounce.
(5) Production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis. In light of the higher than normal
levels of inventory remaining in the midstream and an expectation for a
protracted recovery, we are actively assessing options with our partners to
further reduce production to manage our working capital and preserve cash.
Unit cost is based on De Beers' share of production. Venetia continues to
transition to underground operations where production is expected to ramp-up
over the next few years.
(6) Production excludes thermal coal by-product. FOB unit cost comprises
managed operations and excludes royalties. A planned longwall move at Moranbah
is expected to take place during Q4 2024. A walk-on/walk-off longwall move at
Aquila, that will have a minimal production impact, is scheduled in Q3 2024.
Production has been updated to exclude Grosvenor in the second half of the
year given the current uncertainties, with a consequent revision of the unit
cost guidance.
(7) Nickel operations in Brazil only. The Group also produces approximately 20
kt of nickel on an annual basis from the PGM operations. The unit cost
guidance is revised lower, reflecting the benefit of lower input costs.
Realised prices
H1 2024 H1 2023 H1 2024 vs.
H1 2023
Copper (USc/lb)((1)) 429 393 9%
Copper Chile (USc/lb)((2)) 437 393 11%
Copper Peru (USc/lb) 415 394 5%
Iron Ore - FOB prices((3)) 93 105 (11)%
Kumba Export (US$/wmt)((4)) 97 106 (8)%
Minas-Rio (US$/wmt)((5)) 86 104 (17)%
Platinum Group Metals
Platinum (US$/oz)((6)) 964 1,008 (4)%
Palladium (US$/oz)((6)) 1,006 1,532 (34)%
Rhodium (US$/oz)((6)) 4,619 9,034 (49)%
Basket price (US$/PGM oz)((7)) 1,442 1,885 (24)%
Diamonds
Consolidated average realised price (US$/ct)((8)) 164 163 1%
Average price index((9)) 109 137 (20)%
Steelmaking Coal - HCC (US$/t)((10)) 274 280 (2)%
Steelmaking Coal - PCI (US$/t)((10)) 200 236 (15)%
Nickel (US$/lb)((11)) 6.85 9.04 (24)%
(1) Average realised total copper price is a weighted average of the Copper
Chile and Copper Peru realised prices.
(2) Realised price for Copper Chile excludes third-party sales volumes.
(3) Average realised total iron ore price is a weighted average of the Kumba
and Minas-Rio realised prices.
(4) Average realised export basket price (FOB Saldanha) (wet basis as product
is shipped with ~1.6% moisture). The realised prices could differ to Kumba's
stand-alone results due to sales to other Group companies. Average realised
export basket price (FOB Saldanha) on a dry basis is $99/t (H1 2023: $108/t),
broadly in line with the dry 62% Fe benchmark price of $98/t (FOB South
Africa, adjusted for freight).
(5) Average realised export basket price (FOB Açu) (wet basis as product is
shipped with ~9% moisture).
(6) Realised price excludes trading.
(7) 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, per PGM 5E + gold ounces sold (own mined and purchased
concentrate) excluding trading.
(8) Consolidated average realised price based on 100% selling value
post-aggregation.
(9) Average of the De Beers price index for the Sights within the period. The
De Beers price index is relative to 100 as at December 2006.
(10) Weighted average coal sales price achieved at managed
operations. The average realised price for thermal coal by-product for H1
2024, decreased by 31% to $117/t (H1 2023: $169/t).
(11) Nickel realised price reflects the market discount for
ferronickel (the product produced by the Nickel business).
Preliminary H1 2024 financial update
In light of the decision to re-phase development of the Woodsmith polyhalite
project, the Group is reviewing the carrying value of this asset. It is
expected that any adjustment to the carrying value will be reported within
'special items' in the H1 2024 financial statements.
ESG summary factsheets on a range of topics are available on our website
(https://www.angloamerican.com/investors/esg-summary-factsheets) . For more
information on Anglo American's announcements since our previous production
report, please find links to our Press Releases below.
- 30 June 2024 | Anglo American suspends production at Grosvenor steelmaking
coal mine (https://www.angloamerican.com/media/press-releases/2024/30-06-2024)
- 26 June 2024 | Anglo American launches H2 Moves Europe: new hydrogen taxi
fleets in Paris and Brussels, in partnership with Hype, official taxi
supporter of the 2024 Paris Olympic Games
(https://www.angloamerican.com/media/press-releases/2024/26-06-2024)
- 26 June 2024 | Anglo American rough diamond sales value for De Beers' fifth
sales cycle of 2024
(https://www.angloamerican.com/media/press-releases/2024/26-06-2024a)
- 29 May 2024 | Anglo American response to Rule 2.8 announcement from BHP
(https://www.angloamerican.com/media/press-releases/2024/29-05-2024a)
- 29 May 2024 | Anglo American response to BHP announcement and rejection of
request for PUSU extension
(https://www.angloamerican.com/media/press-releases/2024/29-05-2024)
- 23 May 2024 | Anglo American rough diamond sales value for De Beers' fourth
sales cycle of 2024
(https://www.angloamerican.com/media/press-releases/2024/23-05-2024)
- 22 May 2024 | Anglo American rejects further BHP proposal and extends PUSU
deadline to 29 May 2024
(https://www.angloamerican.com/media/press-releases/2024/22-05-2024)
- 14 May 2024 | Anglo American accelerates delivery of strategy to unlock
significant value
(https://www.angloamerican.com/media/press-releases/2024/14-05-2024)
- 13 May 2024 | Statement re Revised Proposal from BHP
(https://www.angloamerican.com/media/press-releases/2024/13-05-2024)
- 30 April 2024 | AGM 2024 - Address to Shareholders
(https://www.angloamerican.com/media/press-releases/2024/30-04-2024)
- 26 April 2024 | Rejection of BHP Proposal
(https://www.angloamerican.com/media/press-releases/2024/26-04-2024)
- 25 April 2024 | Statement regarding possible offer for Anglo American plc
(https://www.angloamerican.com/media/press-releases/2024/25-04-2024)
Copper
Copper((1)) (tonnes) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Copper 195,700 209,100 (6)% 198,100 (1)% 393,800 387,200 2%
Copper Chile 120,400 130,800 (8)% 126,100 (5)% 246,500 249,400 (1)%
Copper Peru 75,300 78,300 (4)% 72,000 5% 147,300 137,800 7%
(1) Copper production 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).
Copper production is tracking well to plan, with the 6% decrease in the
quarter to 195,700 tonnes, driven by an 8% decrease in Chile's production and
a 4% decrease from Quellaveco in Peru.
Chile - Copper production was 120,400 tonnes, reflecting lower throughput at
Los Bronces and El Soldado, partially offset by higher throughput at
Collahuasi.
At Collahuasi, Anglo American's attributable share of copper production
increased by 5% to 60,300 tonnes, due to higher throughput driven by the fifth
ball mill, which started operating in October 2023, partially offset by lower
copper recovery (80% vs 86%) due to processing lower grade stockpiles.
Production from Los Bronces decreased by 19% to 48,400 tonnes, primarily
driven by lower throughput due to plant stoppages, planned lower grade (0.48%
vs. 0.51%) and 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 the ore softer. Development work for this phase is now under way and it is
expected to benefit production from early 2027. As planned, in line with our
broader focus on improving cash generation, the older, smaller and more costly
Los Bronces processing plant (c.40% of capacity) will be placed on care and
maintenance, now scheduled for the end of July.
Production from El Soldado decreased by 15% to 11,700 tonnes, due to lower
throughput and the weather conditions in June. The central zone of Chile,
where Los Bronces and El Soldado are located, experienced record levels of
rain and snow - with the wettest June in the last 20 years and also the most
snowfall in the last 22 years.
The H1 2024 average realised price of 437 c/lb includes 72,800 tonnes of
copper provisionally priced as at 30 June 2024 at an average of 432c/lb.
Peru - Quellaveco production decreased by 4% to 75,300 tonnes, due to planned
lower grades (0.74% vs. 0.96%), partially offset by record throughput during
the quarter. Operational performance is tracking well against the revised mine
plan.
The H1 2024 average realised price of 415 c/lb includes 64,600 tonnes of
copper provisionally priced as at 30 June 2024 at an average of 410 c/lb.
2024 Guidance
Production guidance for 2024 is unchanged at 730,000-790,000 tonnes (Chile
430,000-460,000 tonnes; Peru 300,000-330,000 tonnes). Production in Chile is
weighted to the first half of the year owing to the planned closure of the Los
Bronces plant, which is now scheduled for the end of July; production is also
subject to water availability. Production in Peru is weighted to the second
half of the year as a higher grade area of the mine is accessed.
Unit cost guidance for 2024 is unchanged at c.157 c/lb((1)) (Chile c.190
c/lb((1)); Peru c.110 c/lb((1))).
(1) The copper unit costs are impacted by FX rates and pricing of by-products,
such as molybdenum. 2024 unit cost guidance was set at c.850 CLP:USD for Chile
and c.3.7 PEN:USD for Peru.
Copper((1)) (tonnes) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Total copper production 195,700 198,100 229,900 209,100 209,100 (6)% (1)% 393,800 387,200 2%
Total copper sales volumes 213,600 177,300 242,600 211,700 203,100 5% 20% 390,900 389,000 0%
Copper Chile
Los Bronces mine((2))
Ore mined 12,688,000 11,974,700 13,365,200 11,209,200 13,729,100 (8)% 6% 24,662,700 25,855,900 (5)%
Ore processed - Sulphide 10,566,600 10,330,300 11,562,800 9,695,800 12,462,800 (15)% 2% 20,896,900 22,505,200 (7)%
Ore grade processed - 0.48 0.47 0.52 0.49 0.51 (6)% 2% 0.48 0.52 (8)%
Sulphide (% TCu)((3))
Production - Copper in concentrate 40,900 40,300 49,400 38,600 52,800 (23)% 1% 81,200 96,800 (16)%
Production - Copper cathode 7,500 8,400 7,800 7,200 7,000 7% (11)% 15,900 15,700 1%
Total production 48,400 48,700 57,200 45,800 59,800 (19)% (1)% 97,100 112,500 (14)%
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 10,336,300 10,472,200 15,892,300 15,949,200 15,232,600 (32)% (1)% 20,808,500 28,736,000 (28)%
Ore processed - Sulphide 15,781,200 14,350,000 14,943,300 14,502,000 13,814,300 14% 10% 30,131,200 27,906,500 8%
Ore grade processed - 1.08 1.20 1.33 1.19 1.09 (1)% (10)% 1.13 1.07 6%
Sulphide (% TCu)((3))
Anglo American's 44% share of copper production for Collahuasi 60,300 64,700 71,700 66,100 57,300 5% (7)% 125,000 114,400 9%
El Soldado mine((2))
Ore mined 1,805,600 1,857,400 2,190,000 633,000 2,930,200 (38)% (3)% 3,663,000 4,833,200 (24)%
Ore processed - Sulphide 1,568,700 1,712,600 1,526,300 2,026,800 1,781,400 (12)% (8)% 3,281,300 3,246,400 1%
Ore grade processed - 0.94 0.94 0.62 0.60 0.94 0% 0% 0.94 0.84 12%
Sulphide (% TCu)((3))
Production - Copper in concentrate 11,700 12,700 7,300 9,700 13,700 (15)% (8)% 24,400 22,500 8%
Chagres smelter((2))
Ore smelted((4)) 26,100 27,000 28,100 28,600 27,800 (6)% (3)% 53,100 66,200 (20)%
Production 25,400 25,600 27,400 27,700 27,100 (6)% (1)% 51,000 55,000 (7)%
Total copper production((5)) 120,400 126,100 136,200 121,600 130,800 (8)% (5)% 246,500 249,400 (1)%
Total payable copper production 115,700 121,300 131,000 117,000 125,500 (8)% (5)% 237,000 239,600 (1)%
Total copper sales volumes 132,900 109,400 146,900 120,300 120,700 10% 21% 242,300 237,600 2%
Total payable sales volumes 127,600 105,200 140,000 115,600 117,100 9% 21% 232,800 229,400 1%
Third-party sales((6)) 87,600 80,300 139,300 126,600 91,400 (4)% 9% 167,900 177,800 (6)%
Copper Peru
Quellaveco mine((7))
Ore mined 9,486,400 11,025,800 13,368,500 9,900,400 11,600,200 (18)% (14)% 20,512,200 18,778,100 9%
Ore processed - Sulphide 12,397,000 12,206,700 11,821,300 11,240,600 9,660,800 28% 2% 24,603,700 16,703,000 47%
Ore grade processed - 0.74 0.72 0.95 0.93 0.96 (23)% 3% 0.73 0.99 (26)%
Sulphide (% TCu)((3))
Total copper production 75,300 72,000 93,700 87,500 78,300 (4)% 5% 147,300 137,800 7%
Total payable copper production 72,800 69,600 90,600 84,600 75,700 (4)% 5% 142,400 133,200 7%
Total copper sales volumes 80,700 67,900 95,700 91,400 82,400 (2)% 19% 148,600 151,400 (2)%
Total payable sales volumes 77,700 65,500 92,500 88,300 79,500 (2)% 19% 143,200 146,200 (2)%
(1) Excludes copper production from the Platinum Group Metals business.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the
Chagres smelter is 50.1%. Production is stated at 100% as Anglo American
consolidates these operations.
(3) TCu = total copper.
(4) Copper contained basis. Includes third-party concentrate.
(5) Total copper production includes Anglo American's 44% interest in
Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
(7) Anglo American ownership interest of Quellaveco is 60%. Production is
stated at 100% as Anglo American consolidates this operation.
Iron Ore
Iron Ore (000 t) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Iron Ore 15,580 15,647 0% 15,143 3% 30,723 30,723 0%
Kumba((1)) 9,184 9,320 (1)% 9,275 (1)% 18,459 18,745 (2)%
Minas-Rio((2)) 6,396 6,327 1% 5,868 9% 12,264 11,978 2%
(1) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6%
moisture.
(2) Volumes are reported as wet metric tonnes. Product is shipped with ~9%
moisture.
Iron ore production was broadly flat at 15.6 million tonnes. Minas-Rio
achieved a record second quarter performance, with production up 1%, offset by
a planned decrease at Kumba, due to the previously announced business
reconfiguration to align with third-party logistics constraints.
Kumba - Total production decreased by 1% to 9.2 million tonnes, driven by a
12% decrease at Kolomela to 2.5 million tonnes due to the reconfiguration of
the mine to align production to lower third-party rail capacity and alleviate
mine stockpile constraints. Sishen's production increased by 3% to 6.6 million
tonnes, reflecting planned operational improvements.
Total sales increased by 3% to 9.7 million tonnes((1)), reflecting the
improved equipment performance following repairs undertaken at Saldanha Bay
port in the second quarter of 2024.
As a result of the logistics challenges on rail and at the port during the
first half of the year, total finished stock remained elevated at 8.2 million
tonnes((1)), with stock at the mines increasing to 7.4 million tonnes((1)),
which is above desired levels. Stock at the port increased to 0.8 million
tonnes((1)).
Kumba's iron (Fe) content averaged 64.1% (H1 2023: 63.3%), while the average
lump:fines ratio was 64:36 (H1 2023: 67:33).
The H1 2024 average realised price of $97/tonne((1)) (FOB South Africa, wet
basis) was broadly in line with the 62% Fe benchmark price of $96/tonne((1))
(FOB South Africa, adjusted for freight and moisture). The premiums for higher
iron content and lump product were partially offset by the impact of
provisionally priced sales volumes.
Minas-Rio - Production increased by 1% to 6.4 million tonnes, reflecting a
record second quarter performance and continued operational improvement at the
crushing circuit and beneficiation plant, despite the impact from lower mining
fleet availability.
The H1 2024 average realised price of $86/tonne (FOB Brazil, wet basis) was
9% lower than the Metal Bulletin 65 price of $94/tonne (FOB Brazil, adjusted
for freight and moisture), impacted by provisionally priced sales volumes
which more than offset the premium for our high quality product, including
higher (~67%) Fe content.
2024 Guidance
Production guidance for 2024 is unchanged at 58-62 million tonnes (Kumba 35-37
million tonnes; Minas-Rio 23-25 million tonnes). Kumba is subject to
third-party rail and port availability and performance.
Unit cost guidance for 2024 is unchanged at c.$37/tonne((2)) (Kumba
c.$38/tonne((2)); Minas-Rio c.$35/tonne((2))).
(1) Production and sales volumes, stock and realised price are reported on a
wet basis and could differ to Kumba's stand-alone results due to sales to
other Group companies. At the end of 2023, total finished stock was 7.1
million tonnes; stock at the mines was 6.5 million tonnes and stock at the
port was 0.6 million tonnes. At H1 2023, total finished stock was 7.9 million
tonnes; stock at the mines was 7.3 million tonnes and stock at the port was
0.6 million tonnes.
(2) 2024 unit cost guidance was set at c.19 ZAR:USD for Kumba and c.5.0
BRL:USD for Minas-Rio.
Iron Ore (000 t) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Iron Ore production((1)) 15,580 15,143 13,806 15,397 15,647 0% 3% 30,723 30,723 0%
Iron Ore sales((1)) 16,508 12,997 16,413 14,748 15,781 5% 27% 29,505 30,327 (3)%
Kumba production 9,184 9,275 7,234 9,736 9,320 (1)% (1)% 18,459 18,745 (2)%
Sishen 6,644 6,563 5,958 6,680 6,442 3% 1% 13,207 12,783 3%
Kolomela 2,540 2,712 1,276 3,056 2,878 (12)% (6)% 5,252 5,962 (12)%
Kumba sales volumes((2)) 9,705 8,383 9,344 8,873 9,456 3% 16% 18,088 18,955 (5)%
Lump((2)) 5,981 5,520 6,221 5,878 6,241 (4)% 8% 11,501 12,607 (9)%
Fines((2)) 3,724 2,863 3,123 2,995 3,215 16% 30% 6,587 6,348 4%
Minas-Rio production
Pellet feed 6,396 5,868 6,572 5,661 6,327 1% 9% 12,264 11,978 2%
Minas-Rio sales volumes
Export - pellet feed 6,803 4,614 7,069 5,875 6,325 8% 47% 11,417 11,372 0%
(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet
metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio
product is shipped with ~9% moisture.
(2) Sales volumes could differ to Kumba's stand-alone results due to sales to
other Group companies.
Platinum Group Metals (PGMs)
PGMs (000 oz)((1)) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Metal in concentrate production 921 943 (2)% 834 10% 1,755 1,844 (5)%
Own mined((2)) 547 613 (11)% 504 9% 1,052 1,199 (12)%
Purchase of concentrate (POC)((3)) 374 330 13% 330 13% 704 646 9%
Refined production((4)) 1,154 1,074 7% 628 84% 1,782 1,700 5%
(1) Ounces refer to troy ounces. PGMs consists of 5E + gold (platinum,
palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as well as the
purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Total PGM production decreased by 2%, reflecting expected lower volumes from
Kroondal (which is reported as third-party purchase of concentrate from
November 2023) and lower production at Mototolo, Mogalakwena and Unki. This
was partially offset by higher production from Amandelbult.
Own mined production decreased by 11% to 547,200 ounces, primarily due to the
disposal of Kroondal in Q4 2023((1)). Excluding Kroondal, production decreased
by 3% due to lower production from Mototolo, Mogalakwena and Unki, partially
offset by higher production from Amandelbult.
Mogalakwena's production decreased by 4% to 232,600 ounces, due to the planned
blending of low grade ore stockpiles as the new bench cut sequence progressed
during the quarter, with higher waste tonnes extracted in the short term.
Production at Mototolo decreased by 14% to 66,300 ounces, due to difficult
ground conditions as a section of the mine reaches its end of life, as well as
the impact from a shortage of specialised skills. The new 7-day mining shift
cycle introduced at the end of the first quarter aims to enhance operational
efficiency, improve equipment utilisation and ultimately increase production
output, with stabilisation expected in the second half of 2024.
Unki produced 54,700 ounces, 7% lower, due to temporarily mining through a
planned lower grade section.
This was partly offset by production at Amandelbult, which increased by 7% to
157,600 ounces, driven by operational efficiencies which allowed for higher
grades and throughput from underground material, partially offset by
metallurgical challenges which contributed to issues at the concentrator.
Purchase of concentrate increased by 13% to 373,800 ounces, reflecting the
transition of Kroondal to a 100% third-party purchase of concentrate
arrangement. Normalising the comparative period to include 100% of Kroondal,
results in a 2% decrease reflecting lower third-party receipts.
On 1 July 2024, Mogalakwena North Concentrator primary mill broke down with
repairs and mitigation plans under way and expected to be largely completed by
end of July 2024. It is expected that this may have a c.5% impact on
Mogalakwena metal in concentrate production in 2024.
Refined production
Refined production increased by 7% to 1,153,500 ounces, reflecting a draw down
of work-in-progress inventory compared to the same period of last year. There
was no Eskom load-curtailment on the operations during the quarter.
Sales
Sales volumes increased by 14% to 1,266,100 ounces, higher than refined
production, due to a draw down of finished goods compared to the same period
of last year.
The H1 2024 average realised basket price of $1,442/PGM ounce was 24% lower,
mainly due to a 49% decrease in rhodium prices and a 34% decrease in palladium
prices.
The H1 2024 unit cost is expected to be c.$975/PGM ounce, which is higher than
the c.$920/PGM ounce full year unit cost guidance as the benefits of the
cost-out programme will largely be realised in the second half of the year, as
planned.
2024 Guidance
Production guidance for 2024 for metal in concentrate((2)) and refined
production is unchanged at 3.3-3.7 million ounces. Production remains subject
to the impact of Eskom load-curtailment.
Unit cost guidance for 2024 is unchanged at c.$920/PGM ounce((3)).
(1) The disposal of our 50% interest in Kroondal was completed and effective
on 1 November 2023, resulting in Kroondal moving to a 100% third-party
purchase of concentrate arrangement. Kroondal is expected to transition to a
toll arrangement in H2 2024.
(2) Metal in concentrate (M&C) production by source is expected to be own
mined of 2.1-2.3 million ounces and purchase of concentrate of 1.2-1.4 million
ounces. The average M&C split by metal is Platinum: c.45%, Palladium:
c.35% and Other: c.20%.
(3) Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce. 2024
unit cost guidance was set at c.19 ZAR:USD.
Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
M&C PGMs production (000 oz)((1)) 921.0 834.1 932.2 1,029.6 943.1 (2)% 10% 1,755.1 1,844.3 (5)%
Own mined 547.2 504.3 595.7 665.8 612.7 (11)% 9% 1,051.5 1,198.7 (12)%
Mogalakwena 232.6 219.5 265.3 246.8 242.4 (4)% 6% 452.1 461.4 (2)%
Amandelbult 157.6 127.1 149.9 184.9 147.9 7% 24% 284.7 299.4 (5)%
Mototolo 66.3 61.9 66.5 76.1 77.4 (14)% 7% 128.2 146.1 (12)%
Unki 54.7 62.8 61.8 60.5 59.0 (7)% (13)% 117.5 121.5 (3)%
Modikwa - joint operation((2)) 36.0 33.0 36.3 39.6 35.1 3% 9% 69.0 69.5 (1)%
Kroondal - joint operation((3)) - - 15.9 57.9 50.9 n/a n/a - 100.8 n/a
Purchase of concentrate 373.8 329.8 336.5 363.8 330.4 13% 13% 703.6 645.6 9%
Modikwa - joint operation((2)) 36.0 33.0 36.3 39.6 35.1 3% 9% 69.0 69.5 (1)%
Kroondal - joint operation((3)) - - 15.9 57.9 50.9 n/a n/a - 100.8 n/a
Third parties((3)) 337.8 296.8 284.3 266.3 244.4 38% 14% 634.6 475.3 34%
Refined PGMs production (000 oz)((1)(4)) 1,153.5 628.0 1,191.1 909.7 1,073.8 7% 84% 1,781.5 1,699.8 5%
By metal:
Platinum 554.0 272.7 565.2 428.5 489.4 13% 103% 826.7 755.4 9%
Palladium 372.5 206.4 400.0 285.5 352.6 6% 80% 578.9 583.1 (1)%
Rhodium 70.8 39.6 61.3 57.1 68.4 4% 79% 110.4 107.2 3%
Other PGMs and gold 156.2 109.3 164.6 138.6 163.4 (4)% 43% 265.5 254.1 4%
Nickel (tonnes) 7,300 4,700 7,000 5,400 6,100 20% 55% 12,000 9,400 28%
Tolled material (000 oz)((5)) 132.9 160.2 175.1 159.8 139.6 (5)% (17)% 293.1 285.7 3%
PGMs sales from production (000 oz)((1)) 1,266.1 707.5 1,166.2 951.8 1,108.7 14% 79% 1,973.6 1,807.3 9%
Third-party PGMs sales (000 oz)((1)(6)) 2,092.4 1,200.1 1,050.3 1,220.9 1,153.0 81% 74% 3,292.5 2,065.2 59%
4E head grade (g/t milled)((7)) 3.17 3.05 3.35 3.29 3.15 1% 4% 3.11 3.11 0%
(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs
consists of 5E + gold (platinum, palladium, rhodium, ruthenium and iridium
plus gold).
(2) Modikwa is a 50% joint operation. The 50% equity share of production is
presented under 'Own mined' production. Anglo American Platinum purchases the
remaining 50% of production, which is presented under 'Purchase of
concentrate'.
(3) Kroondal was a 50% joint operation until 1 November 2023. Up until this
date, the 50% equity share of production was presented under 'Own mined'
production and the remaining 50% of production, that Anglo American Platinum
purchased, was presented under 'Purchase of concentrate'. Upon the disposal of
our 50% interest, Kroondal transitioned to a 100% third-party POC arrangement,
whereby 100% of production will be presented under 'Purchase of concentrate:
Third parties' until it transitions to a toll arrangement, expected in H2
2024.
(4) Refined production excludes toll material.
(5) Tolled volume measured as the combined content of: platinum, palladium,
rhodium and gold, reflecting the tolling agreements in place.
(6) Relates to sales of metal not produced by Anglo American operations, and
includes metal lending and borrowing activity.
(7) 4E: the grade measured as the combined content of: platinum, palladium,
rhodium and gold, excludes tolled material. Minor metals are excluded due to
variability.
De Beers - Diamonds
Diamonds((1)) (000 carats) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Botswana 4,710 5,829 (19)% 4,987 (6)% 9,697 12,728 (24)%
Namibia 561 612 (8)% 633 (11)% 1,194 1,231 (3)%
South Africa 505 466 8% 598 (16)% 1,103 1,205 (8)%
Canada 673 683 (1)% 645 4% 1,318 1,356 (3)%
Total carats recovered 6,449 7,590 (15)% 6,863 (6)% 13,312 16,520 (19)%
(1) Production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis.
Rough diamond production decreased by 15% to 6.4 million carats, primarily
reflecting the lower production guidance announced in the first quarter
production report in response to the higher than normal levels of inventory in
the midstream, and the expectation for a protracted recovery in demand.
In Botswana, production decreased by 19% to 4.7 million carats, driven by
intentional lower production from short-term changes in plant feed mix at
Jwaneng to process existing surface stockpiles. Production at Orapa was
broadly flat.
Production in Namibia decreased by 8% to 0.6 million carats, reflecting
planned vessel maintenance at Debmarine Namibia, partially offset by planned
mining of higher grade areas at Namdeb.
In South Africa, production increased by 8% to 0.5 million carats, reflecting
the benefit of processing increased volumes of higher grade underground ore as
the Venetia mine transitions underground.
Production in Canada was broadly unchanged at 0.7 million carats.
Demand for rough diamonds recovered slightly at the start of 2024 following
the cessation of the voluntary moratorium on rough diamond imports into India
in late 2023, and improved demand for diamond jewellery in the United States
year-end retail selling season. However, with midstream polished inventories
remaining higher than normal and continued cautious restocking from retailers,
demand for rough diamonds deteriorated in the second quarter of the year.
Market conditions are expected to reflect a protracted recovery in demand.
Consequently, rough diamond sales in Q2 2024 totalled 7.8 million carats (7.3
million carats on a consolidated basis)((1)) from three Sights, compared with
7.6 million carats (6.4 million carats on a consolidated basis)((1)) from two
Sights in Q2 2023, and 4.9 million carats (4.6 million carats on a
consolidated basis)((1)) from two Sights in Q1 2024.
The H1 2024 consolidated average realised price remained broadly flat at
$164/ct (H1 2023: $163/ct), reflecting a larger proportion of higher value
rough diamonds being sold, offset by a 20% decrease in the average rough price
index as compared to H1 2023.
Rough diamond Sight sale announcements will cease following this Q2 production
report as De Beers will report this information on a quarterly basis. Refer to
the table on the following page for the quarterly Sight sale information.
2024 Guidance
Production guidance((2)) for 2024 is unchanged at 26-29 million carats;
however, with higher than normal levels of inventory remaining in the
midstream and an expectation for a protracted recovery, we are actively
assessing options with our partners to further reduce production to manage our
working capital and preserve cash.
Unit cost guidance for 2024 is unchanged at c.$90/carat((3)).
(1) Consolidated sales volumes exclude De Beers Group's JV partners' 50%
proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company,
which are included in total sales volume (100% basis).
(2) Production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis.
(3) Unit cost is based on De Beers' share of production volume. 2024 unit cost
guidance was set at c.19 ZAR:USD.
Diamonds((1)) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng 1,881 2,494 3,192 3,400 2,955 (36)% (25)% 4,375 6,737 (35)%
Orapa((2)) 2,829 2,493 2,943 2,437 2,874 (2)% 13% 5,322 5,991 (11)%
Total Botswana 4,710 4,987 6,135 5,837 5,829 (19)% (6)% 9,697 12,728 (24)%
Debmarine Namibia 427 505 435 423 503 (15)% (15)% 932 1,001 (7)%
Namdeb (land operations) 134 128 131 107 109 23% 5% 262 230 14%
Total Namibia 561 633 566 530 612 (8)% (11)% 1,194 1,231 (3)%
Venetia 505 598 434 365 466 8% (16)% 1,103 1,205 (8)%
Total South Africa 505 598 434 365 466 8% (16)% 1,103 1,205 (8)%
Gahcho Kué (51% basis) 673 645 802 676 683 (1)% 4% 1,318 1,356 (3)%
Total Canada 673 645 802 676 683 (1)% 4% 1,318 1,356 (3)%
Total carats recovered 6,449 6,863 7,937 7,408 7,590 (15)% (6)% 13,312 16,520 (19)%
Total sales volume (100%) (000 carats)((3)) 7,819 4,869 2,753 7,350 7,561 3% 61% 12,688 17,255 (26)%
Consolidated sales volume (000 carats)((3)) 7,333 4,612 2,637 6,742 6,407 14% 59% 11,945 15,303 (22)%
Consolidated sales value ($m)((4)) 1,039 925 230 899 1,051 (1)% 12% 1,964 2,500 (21)%
Average price ($/ct) 142 201 87 133 164 (13)% (29)% 164 163 1%
Average price index((5)) 109 110 133 133 137 (20)% (1)% 109 137 (20)%
Number of Sights (sales cycles) 3 2 2 3 2 5 5
(1) Production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and
Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50%
proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company,
which are included in total sales volume (100% basis).
(4) Consolidated sales value includes De Beers Group's 50% proportionate share
of sales to entities outside De Beers Group from Diamond Trading Company
Botswana and the Namibia Diamond Trading Company.
(5) Average of the De Beers price index for the Sights within the period. The
De Beers price index is relative to 100 as at December 2006.
Steelmaking Coal
Steelmaking Coal((1)) (000 t) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Steelmaking Coal 4,238 3,356 26% 3,780 12% 8,018 6,889 16%
(1) 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.
Steelmaking coal production increased by 26% to 4.2 million tonnes, primarily
driven by higher production at the Grosvenor underground longwall operation,
reflecting a longwall move in Q2 2023. Increased production at the Dawson open
cut operation was more than offset by lower production at the Aquila longwall
operation due to ongoing difficult strata conditions, as well as at the
Capcoal open cut operation owing to mine sequencing, with more waste tonnes
extracted. The Moranbah longwall operation was broadly flat owing to ongoing
challenges with difficult strata conditions.
In Q2 2024, the ratio of hard coking coal production to PCI/semi-soft coking
coal was 78:22, higher than Q2 2023 (70:30), reflecting increased production
of hard coking coal from the underground operations.
The H1 2024 average realised price for hard coking coal was $274/tonne,
compared to the benchmark price of $276/tonne and reflects an increase in
price realisation to 99% (H1 2023: 95%), primarily as a result of the timing
of sales during the half.
The H1 2024 unit cost is expected to be c.$125/tonne, which is higher than the
c.$115/tonne full year unit cost guidance prior to the Grosvenor incident, due
to lower than expected production from the higher fixed cost underground
operations at Moranbah and Aquila.
Production has been suspended at the Grosvenor mine following an underground
fire that started on 29 June 2024. The workforce was safely evacuated from the
mine without injury. The mine has been stabilised and we are re-establishing
comprehensive underground gas monitoring, prior to being able to assess the
steps towards a safe re-entry into the mine. The procedures are expected to
take several months as a result of the likely damage underground. The other
steelmaking coal mines are operating normally.
2024 Guidance
Production guidance for 2024 has been updated to exclude Grosvenor in the
second half of the year given the current uncertainties, resulting in guidance
of 14-15.5 million tonnes (previously 15-17 million tonnes). A planned
longwall move at Moranbah is expected to take place during Q4 2024. A
walk-on/walk-off longwall move at Aquila, that will have a minimal production
impact, is scheduled in Q3 2024.
Unit cost guidance for 2024 is consequently updated to $130-140/tonne((1))
(previously c.$115/tonne).
(1) 2024 unit cost guidance was set at c.1.5 AUD:USD.
Coal, by product (000 t)((1)) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Production volumes
Steelmaking Coal((2)(3)(4)) 4,238 3,780 4,756 4,356 3,356 26% 12% 8,018 6,889 16%
Hard coking coal((2)) 3,321 2,921 3,804 3,235 2,358 41% 14% 6,242 5,200 20%
PCI / SSCC 917 859 952 1,121 998 (8)% 7% 1,776 1,689 5%
Export thermal coal((4)) 142 324 34 284 481 (70)% (56)% 466 765 (39)%
Sales volumes
Steelmaking Coal((2)) 4,105 3,827 3,795 4,226 3,585 15% 7% 7,932 6,919 15%
Hard coking coal((2)) 3,212 2,974 2,987 3,199 2,681 20% 8% 6,186 5,380 15%
PCI / SSCC 893 853 808 1,027 904 (1)% 5% 1,746 1,539 13%
Export thermal coal 311 429 494 387 390 (20)% (28)% 740 792 (7)%
Steelmaking coal, by operation (000 t)((1)) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Steelmaking Coal((2)(3)(4)) 4,238 3,780 4,756 4,356 3,356 26% 12% 8,018 6,889 16%
Moranbah((2)) 923 561 662 946 948 (3)% 65% 1,484 1,524 (3)%
Grosvenor 1,215 967 1,021 560 240 n/a 26% 2,182 1,216 79%
Aquila (incl. Capcoal)((2)) 626 977 1,181 1,338 874 (28)% (36)% 1,603 1,619 (1)%
Dawson((4)) 647 487 1,118 688 576 12% 33% 1,134 1,096 3%
Jellinbah 827 788 774 824 718 15% 5% 1,615 1,434 13%
(1) Anglo American's attributable share of saleable production.
(2) Includes production relating to third-party product purchased and
processed at Anglo American's operations.
(3) Steelmaking coal production volumes may include some product sold as
thermal coal.
(4) Q4 2023 includes an adjustment for the 2023 year for some steelmaking coal
produced at Dawson that had previously been reported as thermal coal.
Nickel
Nickel((1)) (tonnes) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Nickel 10,000 9,900 1% 9,500 5% 19,500 19,600 (1)%
(1) Excludes nickel production from the Platinum Group Metals business.
Nickel production was broadly flat at 10,000 tonnes, reflecting operational
stability.
2024 Guidance
Production guidance for 2024 is unchanged at 36,000-38,000 tonnes.
Unit cost guidance for 2024 is revised lower to c.550 c/lb((1)) (previously
c.600 c/lb), reflecting the benefit of lower input costs.
(1) 2024 unit cost guidance was set at c.5.0 BRL:USD.
Nickel (tonnes) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Barro Alto
Ore mined 1,275,400 319,200 1,094,700 1,387,900 1,283,400 (1)% 300% 1,594,600 1,818,200 (12)%
Ore processed 616,800 636,500 634,000 559,800 650,700 (5)% (3)% 1,253,300 1,282,600 (2)%
Ore grade processed - %Ni 1.51 1.42 1.48 1.48 1.46 3% 6% 1.46 1.42 3%
Production 8,200 7,800 8,800 7,200 8,000 3% 5% 16,000 15,800 1%
Codemin
Ore mined - - - - - n/a n/a - 27,800 n/a
Ore processed 139,700 136,300 152,500 153,200 146,900 (5)% 2% 276,000 293,800 (6)%
Ore grade processed - %Ni 1.45 1.43 1.46 1.44 1.42 2% 1% 1.44 1.38 4%
Production 1,800 1,700 2,300 2,100 1,900 (5)% 6% 3,500 3,800 (8)%
Total nickel production((1)) 10,000 9,500 11,100 9,300 9,900 1% 5% 19,500 19,600 (1)%
Sales volumes 11,300 7,700 11,400 9,300 10,600 7% 47% 19,000 19,100 (1)%
(1) Excludes nickel production from the Platinum Group Metals business.
Manganese
Manganese (000 t) Q2 Q2 Q2 2024 vs. Q2 2023 Q1 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2023 2024 2024 2023
Manganese ore((1)) 356 970 (63)% 784 (55)% 1,140 1,811 (37)%
(1) Anglo American's 40% attributable share of saleable production.
Manganese ore production decreased by 63% to 356,000 tonnes, primarily due to
the impact of tropical cyclone Megan in mid-March, which temporarily suspended
the Australian operations. The weather event caused widespread flooding and
significant damage to critical infrastructure. Operational recovery has
focused on re-establishing critical services, dewatering targeted mining pits,
and in June a phased return to mining activities has commenced. Engineering
studies are under way on the infrastructure restoration.
Manganese (tonnes) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs. Q2 2023 Q2 2024 vs. Q1 2024 H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Samancor production
Manganese ore((1)) 356,000 783,800 847,800 1,012,100 969,800 (63)% (55)% 1,139,800 1,810,700 (37)%
Samancor sales volumes
Manganese ore 365,800 796,800 992,000 971,500 937,900 (61)% (54)% 1,162,600 1,761,500 (34)%
(1) Anglo American's 40% attributable share of saleable production.
Exploration and evaluation
Exploration and evaluation expenditure in Q2 2024 decreased by 9% to $82
million compared to the same period last year. Exploration expenditure
decreased by 9% to $32 million. Evaluation expenditure decreased by 9% to $50
million, primarily due to a decrease in spend at PGMs and diamonds, partially
offset by higher spend in copper and iron ore.
Notes
• This Production Report for the second quarter ended 30 June 2024 is
unaudited.
• Production figures are sometimes more precise than the rounded numbers
shown in this Production Report.
• Copper equivalent production shows changes in underlying production
volume, and includes the equity share of De Beers' production. It is
calculated by expressing each product's volume as revenue, subsequently
converting the revenue into copper equivalent units by dividing by the copper
price (per tonne). Long-term forecast prices are used, in order that
period-on-period comparisons exclude any impact for movements in price.
• Please refer to page 18 for information on forward-looking statements.
In this document, references to "Anglo American", the "Anglo American Group",
the "Group", "we", "us", and "our" are to refer to either Anglo American plc
and its subsidiaries and/or those who work for them generally, or where it is
not necessary to refer to a particular entity, entities or persons. The use of
those generic terms herein is for convenience only, and is in no way
indicative of how the Anglo American Group or any entity within it is
structured, managed or controlled. Anglo American subsidiaries, and their
management, are responsible for their own day-to-day operations, including but
not limited to securing and maintaining all relevant licences and permits,
operational adaptation and implementation of Group policies, management,
training and any applicable local grievance mechanisms. Anglo American
produces Group-wide policies and procedures to ensure best uniform practices
and standardisation across the Anglo American Group but is not responsible for
the day to day implementation of such policies. Such policies and procedures
constitute prescribed minimum standards only. Group operating subsidiaries are
responsible for adapting those policies and procedures to reflect local
conditions where appropriate, and for implementation, oversight and monitoring
within their specific businesses.
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.
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 Emma Waterworth
marcelo.esquivel@angloamerican.com emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8574
Rebecca Meeson-Frizelle Michelle Jarman
rebecca.meeson-frizelle@angloamerican.com michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 1374 Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Notes:
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
Forward-looking statements and third-party information:
This announcement 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, mineral 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 2024. (TM) and (TM) are trade marks of
Anglo American Services (UK) Ltd.
Legal Entity Identifier: 549300S9XF92D1X8ME43
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