REG - Anglo American PLC - Anglo American Q2 Production Report
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0920V_1-2018-7-18.pdf
Anglo American plc
Production Report for the second quarter ended 30 June 2018
Anglo American reports a 6% increase in total production on a copper equivalent basis in the second quarter of 2018, compared to the same period of 2017, excluding the Minas-Rio stoppage(1).
Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered another strong performance, with Copper and Metallurgical Coal in particular driving a 6% increase in production. This reflects our consistent and relentless focus on driving efficiency and productivity from our existing world class asset base."
Highlights
· De Beers production increased by 3% to 9.0 million carats reflecting sustained healthy trading conditions.
· Copper production increased by 12% to 158,000 tonnes despite major planned maintenance at Collahuasi, with strong operational performance as well as higher grades.
· Platinum and palladium production was broadly unchanged despite Bokoni having been placed on care and maintenance in Q3 2017. Platinum guidance increased to 2.4-2.45 million ounces following strong operational performance.
· Kumba iron ore production increased by 2% to 11.6 million tonnes, driven by good performance at Kolomela. Guidance marginally decreased to 43-44 million tonnes to align production to rail availability.
· Metallurgical coal production increased by 33% to 5.3 million tonnes driven by strong performance at Moranbah and Grosvenor.
· Thermal coal export production decreased by 1% to 7.2 million tonnes due to challenging geology. Guidance revised to 28-30 million tonnes.
· Minas-Rio iron ore production in the quarter was immaterial as operations remain suspended.
Production Summary
Q2 2018
Q2 2017
% vs. Q2 2017
H1 2018
H1 2017
% vs. H1 2017
Diamonds (Mct)(2)
9.0
8.7
3%
17.5
16.1
8%
Copper (kt)(3)
158
141
12%
313
283
10%
Platinum (koz)(4)
620
617
-
1,233
1,189
4%
Palladium (koz)(4)
406
402
1%
813
775
5%
Iron ore - Kumba (Mt)
11.6
11.4
2%
22.4
21.9
3%
Iron ore - Minas-Rio (Mt)(5)
0.1
4.3
nm
3.2
8.7
(64)%
Metallurgical coal (Mt)
5.3
4.0
33%
10.8
9.2
17%
Thermal coal (Mt)(6)
7.2
7.3
(1)%
14.0
14.8
(6)%
Nickel (kt)(7)
10.8
11.3
(4)%
19.4
21.2
(8)%
Manganese ore (kt)
866
843
3%
1,747
1,666
5%
(1) Copper equivalent production is normalised for Bokoni being placed on care and maintenance in Q3 2017 and the Minas-Rio production stoppage in 2018. Including the Minas-Rio stoppage, production is up 1% compared to Q2 2017.
(2) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(3) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum business unit).
(4) Produced ounces. Reflects own mine production and purchases of metal in concentrate.
(5) Wet basis.
(6) Reflects export production from South Africa and Colombia.
(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum business unit).
DE BEERS
De Beers(1)
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Botswana (Debswana)
000 carats
6,279
5,933
6%
5,808
8%
12,087
11,124
9%
Namibia
(Namdeb Holdings)
000 carats
515
391
32%
528
(2)%
1,044
863
21%
South Africa (DBCM)
000 carats
1,018
1,405
(28)%
1,093
(7)%
2,111
2,511
(16)%
Canada
000 carats
1,185
1,013
17%
1,069
11%
2,253
1,644
37%
Total carats recovered
000 carats
8,997
8,742
3%
8,498
6%
17,495
16,142
8%
Rough diamond production increased by 3% to 9.0 million carats, reflecting production increases to meet stronger demand as well as the contribution from the ramp-up at Gahcho Kué.
Botswana (Debswana) production increased by 6% to 6.3 million carats in response to stronger trading conditions. Jwaneng production increased by 4% to 3.0 million carats due to an increase in tonnes mined and treated. Similarly at Orapa(2), production increased by 8% to 3.3 million carats due to the ramp up of additional processing capacity in response to stronger trading conditions.
Namibia (Namdeb Holdings) production increased by 32% to 0.5 million carats driven by access to consistently higher grades at the land operations and technology-led optimisation of the marine drill fleet.
South Africa (DBCM) production decreased by 28% to 1.0 million carats, primarily owing to a period of suspended production at Venetia following a fatal incident in March.
Canada production increased by 17% to 1.2 million carats due to the completion of the ramp-up at Gahcho Kué.
Rough sales volumes were 10.0 million carats (9.4 million carats on a consolidated basis(3)) from three sales cycles in Q2 2018, compared with 5.9 million carats (5.4 million carats on a consolidated basis(3)) from two sales cycles in Q2 2017. In addition to the different number of sales cycles over the period, sales volumes benefited from positive sentiment in the midstream following growth in consumer demand for diamond jewellery in late 2017, and a continuing positive outlook.
The H1 2018 average realised rough diamond price increased by 4% to $162/carat (H1 2017: $156/carat) due to a 1.6% increase in the average rough price index and an improvement in the sales mix, driven by the substantial volumes of lower value goods sold in H1 2017, following the Indian demonetisation programme in late 2016. Excluding this impact, the average value of the production mix was lower in H1 2018 as a higher proportion of lower value carats was delivered from Orapa and Gahcho Kué.
Full Year Guidance
Full year production guidance(1) remains unchanged at 34-36 million carats, subject to trading conditions.
(1) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volume excludes De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). Q2 2017 includes pre-commercial production sales volumes from Gahcho Kué.
De Beers(1)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Carats recovered (000 carats)
100% basis (unless otherwise stated)
Jwaneng
3,025
2,984
2,512
3,477
2,913
1%
4%
6,009
5,868
2%
Orapa(2)
3,254
2,824
2,992
2,579
3,020
15%
8%
6,078
5,256
16%
Botswana (Debswana)
6,279
5,808
5,504
6,056
5,933
8%
6%
12,087
11,124
9%
Debmarine Namibia
349
365
328
353
319
(4)%
9%
714
697
2%
Namdeb (land operations)
166
163
160
101
72
2%
131%
330
166
99%
Namibia (Namdeb Holdings)
515
528
488
454
391
(2)%
32%
1,044
863
21%
Venetia
922
1,008
1,023
1,401
1,239
(9)%
(26)%
1,931
2,178
(11)%
Voorspoed
96
85
126
147
166
13%
(42)%
180
333
(46)%
South Africa (DBCM)
1,018
1,093
1,149
1,548
1,405
(7)%
(28)%
2,111
2,511
(16)%
Gahcho Kué (51% basis)
985
838
830
930
831
18%
19%
1,822
1,273
43%
Victor
200
231
163
190
182
(13)%
10%
431
371
16%
Canada (DBCi)
1,185
1,069
993
1,120
1,013
11%
17%
2,253
1,644
37%
Total carats recovered
8,997
8,498
8,134
9,178
8,742
6%
3%
17,495
16,142
8%
Sales volumes
Total sales volume (100%) (Mct)(3)
10.0
8.8
8.2
6.9
5.9
14%
69%
18.8
20.0
(6)%
Consolidated sales volume (Mct)(3)
9.4
8.4
7.5
6.5
5.4
12%
74%
17.8
19.1
(7)%
Number of Sights
(sales cycles)3
2
3
2
2
5
5
(1) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué.
COPPER
Copper(1)
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Los Bronces
t
89,700
79,000
14%
85,000
6%
174,700
154,800
13%
Collahuasi
(44% share)
t
54,700
51,000
7%
60,600
(10)%
115,300
108,700
6%
El Soldado
t
13,600
10,800
26%
9,300
46%
22,900
19,900
15%
Total Copper
t
158,000
140,800
12%
154,900
2%
312,900
283,400
10%
(1) Copper production shown on a contained metal basis.
Production from Los Bronces increased by 14% to 89,700 tonnes, driven by a combination of strong mine and plant performance, as well as an increase in ore grade (0.76% vs. 0.70%).
At Collahuasi, attributable production increased by 7% to 54,700 tonnes due to planned higher grades and strong plant performance, offset partially by planned major maintenance. Production decreased compared with Q1 2018 owing to the impact of the planned major maintenance which was successfully completed on 8 July.
El Soldado production increased by 26% to 13,600 tonnes due to the temporary mine stoppage in 2017.
Sales volumes in H1 2018 were 306,000 tonnes, an increase of 18%, reflecting the strong production performance in the period. At the end of H1 2018, Anglo American had 120,300 tonnes of copper provisionally priced at 301 c/lb.
Full Year Guidance
Full year production guidance remains unchanged at 630,000 - 660,000 tonnes.
Copper(1)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined
11,454,400
11,859,300
17,478,300
18,467,800
14,984,100
(3)%
(24)%
23,313,700
28,787,400
(19)%
Ore processed - Sulphide
10,605,100
12,894,200
13,658,400
13,084,900
10,807,100
(18)%
(2)%
23,499,300
23,143,500
2%
Ore grade processed - Sulphide (% TCu)(2)
1.34
1.24
1.28
1.24
1.27
8%
5%
1.29
1.25
3%
Production - Copper cathode
-
-
-
-
-
-
-
-
100
nm
Production - Copper in concentrate
124,500
137,600
144,400
132,600
115,900
(10)%
7%
262,100
246,900
6%
Total copper production for Collahuasi
124,500
137,600
144,400
132,600
115,900
(10)%
7%
262,100
247,000
6%
Anglo American's share of copper production for Collahuasi(3)
54,700
60,600
63,500
58,300
51,000
(10)%
7%
115,300
108,700
6%
Los Bronces(4)
89,700
85,000
75,400
78,100
79,000
6%
14%
174,700
154,800
13%
Ore mined
17,837,300
15,675,300
11,553,900
12,707,100
11,630,200
14%
53%
33,512,600
25,078,600
34%
Ore processed - Sulphide
12,346,700
12,477,100
10,610,600
11,675,700
11,876,300
(1)%
4%
24,823,800
23,753,700
5%
Ore grade processed - Sulphide (% TCu)
0.76
0.71
0.76
0.69
0.70
7%
8%
0.73
0.69
6%
Production - Copper cathode
10,000
8,500
9,800
9,800
9,800
18%
3%
18,500
18,700
(1)%
Production - Copper in concentrate
79,700
76,600
65,600
68,300
69,200
4%
15%
156,200
136,100
15%
El Soldado(4)
13,600
9,300
9,700
10,900
10,800
46%
26%
22,900
19,900
15%
Ore mined
2,905,800
2,112,500
1,698,500
1,462,200
1,272,200
38%
128%
5,018,300
2,177,700
130%
Ore processed - Sulphide
1,825,000
1,785,600
1,846,600
1,851,700
1,899,200
2%
(4)%
3,610,600
3,696,800
(2)%
Ore grade processed - Sulphide (% TCu)
0.90
0.67
0.65
0.73
0.72
36%
25%
0.79
0.69
14%
Production - Copper in concentrate
13,600
9,300
9,700
10,900
10,800
46%
26%
22,900
19,900
15%
Chagres Smelter(4)
Ore smelted
39,300
34,700
35,600
35,400
31,500
13%
25%
74,000
62,800
18%
Production
38,400
33,800
34,700
34,400
30,600
14%
25%
72,200
60,900
19%
Total copper production(5)
158,000
154,900
148,600
147,300
140,800
2%
12%
312,900
283,400
10%
Total payable copper production
152,600
149,100
143,100
141,900
135,800
2%
12%
301,700
273,300
10%
Total sales volumes
174,400
131,600
156,400
163,900
144,100
33%
21%
306,000
259,400
18%
Total payable sales volumes
168,400
126,700
150,600
158,000
138,900
33%
21%
295,100
250,100
18%
Third party sales(6)
40,700
30,800
40,500
33,700
27,400
32%
49%
71,500
37,200
92%
(1) Excludes Anglo American Platinum's copper production. Units shown are tonnes unless stated.
(2) TCu = total copper.
(3) Anglo American's share of Collahuasi production is 44%.
(4) 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.
(5) Total copper production includes Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
PLATINUM
Platinum
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Produced M&C(1) ounces
000 oz
619.6
617.1
-
613.8
1%
1,233.4
1,189.1
4%
Own mined(2)
000 oz
340.2
346.1
(2)%
343.0
(1)%
683.2
668.8
2%
Purchase of concentrate(3)
000 oz
279.4
271.0
3%
270.8
3%
550.2
520.3
6%
Palladium
Produced M&C(1) ounces
000 oz
406.0
402.2
1%
407.4
(0)%
813.2
774.9
5%
Own mined(2)
000 oz
260.8
255.1
2%
267.7
(3)%
528.3
494.4
7%
Purchase of concentrate(3)
000 oz
145.2
147.1
(1)%
139.7
4%
284.9
280.5
2%
Refined production
Platinum
000 oz
572.7
528.7
8%
502.6
14%
1,075.3
1,105.6
(3)%
Palladium
000 oz
366.7
373.1
(2)%
319.8
15%
686.5
726.5
(6)%
Rhodium
000 oz
73.8
82.8
(11)%
62.5
18%
136.3
156.4
(13)%
Gold
000 oz
27.3
29.3
(7)%
22.9
19%
50.2
54.0
(7)%
Nickel
t
5,700
6,000
(5)%
5,100
12%
10,800
11,200
(4)%
Copper
t
4,000
3,500
14%
3,200
25%
7,200
6,700
7%
(1) Mined and purchase of concentrate
(2) Includes managed operations and 50% of joint venture production.
(3) Purchase of concentrate includes 50% of joint venture production, and the purchase of concentrate from associates (Bokoni and BRPM) and third parties.
Platinum and palladium production increased marginally to 619,600 ounces and 406,000 ounces respectively, due to improved operational performances across the portfolio, offset by the placing of unprofitable production from Bokoni on care and maintenance in Q3 2017.
Own mined production
Own mined platinum production decreased by 2% to 340,200 ounces and palladium production increased by 2% to 260,800 ounces, with strong operational performance across the portfolio offset by the sale of Union mine. Excluding Union, own mined platinum production increased by 11% and palladium production increased by 10%.
Mogalakwena platinum production increased by 17% to 133,400 ounces and palladium production increased by 14% to 145,100 ounces, driven by higher grade, an increase in concentrator throughput and higher recoveries.
Amandelbult platinum production increased by 7% to 116,300 ounces and palladium production increased by 5% to 52,200 ounces, driven by continued operational improvement that was supported by increased development at Dishaba as mining activities transition to this section.
Unki platinum production increased by 7% to 20,900 ounces and palladium production increased by 11% to 18,400 ounces due to increased concentrator throughput and recoveries.
Union mine was sold to a subsidiary of Siyanda Resources on 1 February 2018, after which Union production was purchased as concentrate.
Joint venture platinum production (Mototolo, Modikwa and Kroondal) increased by 8% to 139,300 ounces (of which 69,600 ounces is own mined production and 69,600 ounces is purchased concentrate). Palladium production increased by 6% to 90,200 ounces (of which 45,100 ounces is own mined production and 45,100 ounces is purchased concentrate). This was driven by a strong production performance across the portfolio, supplemented by continued additional processing of ore stockpiles built up at Mototolo following the temporary closure of the concentrator in Q3 2017.
Purchase of concentrate
Purchase of concentrate from joint ventures increased by 8% for platinum and 6% for palladium, in line with the increased production as outlined above.
Purchase of concentrate from associates decreased by 25% for platinum and 39% for palladium due to the removal of unprofitable ounces from Bokoni, which was placed onto care and maintenance in Q3 2017.
Purchase of concentrate from third parties increased by 16% for platinum and 15% for palladium due to concentrate purchased from Union mine following its sale.
Refined production and sales volumes
Refined platinum production increased by 8% to 572,700 ounces, despite a planned smelter rebuild at Mortimer smelter in Q2 2018. Prior period refined production was adversely affected by the planned Waterval Number 2 smelter rebuild, as well as the high-pressure water leak at the converter plant.
Refined palladium production decreased by 2% to 366,700 ounces owing to a stock count loss that impacted palladium as well as rhodium.
Platinum sales volumes (excluding refined metal purchased from third parties) increased by 6% to 636,400 ounces while palladium sales volumes increased by 23% to 405,300 ounces as refined production was supplemented by a draw down in refined inventory. Refined inventory is expected to return to normalised levels in H2 2018.
Full Year Guidance
Full year platinum production guidance has been revised to 2.4-2.45 million ounces (previously 2.3-2.4 million ounces) due to strong operational performance.
Full year palladium production remains unchanged at 1.5-1.6 million ounces.
Platinum
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Produced platinum
(000 troy oz)
619.6
613.8
587.0
621.4
617.1
1%
-
1,233.4
1,189.1
4%
Own mined
340.2
343.0
349.8
357.7
346.1
(1)%
(2)%
683.2
668.8
2%
Mogalakwena
133.4
139.4
121.7
116.3
113.9
(4)%
17%
272.9
225.8
21%
Amandelbult
116.3
103.9
114.8
119.5
108.6
12%
7%
220.2
203.7
8%
Unki
20.9
20.6
16.4
19.9
19.5
1%
7%
41.4
38.4
8%
Joint ventures(1)
69.6
67.5
59.8
62.2
64.3
3%
8%
137.1
123.3
11%
Union
0.0
11.6
37.1
39.9
39.8
nm
nm
11.6
77.5
nm
Purchase of concentrate
279.4
270.8
237.2
263.7
271.0
3%
3%
550.2
520.3
6%
Joint ventures(1)
69.6
67.5
59.8
62.2
64.3
3%
8%
137.1
123.3
11%
Associates(2)
54.3
52.3
54.8
73.5
72.5
4%
(25)%
106.5
137.2
(22)%
Third parties
155.5
151.0
122.6
128.0
134.2
3%
16%
306.5
259.8
18%
Palladium
Produced palladium
(000 troy oz)
406.0
407.4
374.9
407.5
402.2
(0)%
1%
813.2
774.9
5%
Own mined
260.8
267.7
251.5
262.7
255.1
(3)%
2%
528.3
494.4
7%
Mogalakwena
145.1
150.5
127.8
129.9
127.8
(4)%
14%
295.5
251.2
18%
Amandelbult
52.2
50.7
53.7
55.1
49.9
3%
5%
102.9
93.6
10%
Unki
18.4
17.8
14.2
17.2
16.6
3%
11%
36.2
33.0
10%
Joint ventures(1)
45.1
43.5
38.7
42.1
42.5
4%
6%
88.5
80.7
10%
Union
0.0
5.2
17.1
18.4
18.3
nm
nm
5.2
35.9
nm
Purchase of concentrate
145.2
139.7
123.4
144.8
147.1
4%
(1)%
284.9
280.4
2%
Joint ventures(1)
45.1
43.5
38.7
42.1
42.5
4%
6%
88.5
80.7
10%
Associates(2)
22.0
21.7
22.1
36.3
36.4
1%
(39)%
43.8
69.4
(37)%
Third parties
78.1
74.5
62.6
66.4
68.1
5%
15%
152.6
130.3
17%
Refined production
Platinum (000 troy oz)
572.7
502.6
722.2
684.1
528.7
14%
8%
1,075.3
1,105.6
(3)%
Palladium (000 troy oz)
366.7
319.8
491.4
450.6
373.1
15%
(2)%
686.5
726.5
(6)%
Rhodium (000 troy oz)
73.8
62.5
87.4
79.4
82.8
18%
(11)%
136.3
156.4
(13)%
Gold (000 troy oz)
27.3
22.9
30.3
31.1
29.3
19%
(7)%
50.2
54.0
(7)%
Nickel (tonnes)
5,700
5,100
7,800
7,000
6,000
12%
(5)%
10,800
11,200
(4)%
Copper (tonnes)
4,000
3,200
4,700
4,300
3,500
25%
14%
7,200
6,700
7%
4E Head grade
(g/tonne milled)(3)
3.60
3.45
3.53
3.44
3.41
4%
6%
3.52
3.44
2%
Platinum sales volumes
(000 troy oz)(4)
636.4
480.8
721.7
663.6
600.5
32%
6%
1,117.1
1,119.3
-
Palladium sales volumes
(000 troy oz)(4)
405.3
328.2
473.5
462.0
330.3
23%
23%
733.5
636.2
15%
Platinum third party sales volumes (000 troy oz)(5)
45.8
19.8
-
-
-
nm
nm
65.6
-
nm
Palladium third party sales volumes (000 troy oz)(5)
45.0
8.0
-
-
-
nm
nm
53.0
-
nm
(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.
(2) Associates are Platinum's 33% interest in BRPM and, also in 2017, its 49% interest in Bokoni, which was placed on care and maintenance in Q3 2017.
(3) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
(4) Sales from own mined and purchased concentrate, excludes refined metal purchased from third parties.
(5) Relates to sales of metal not produced by Anglo American operations.
IRON ORE
Iron Ore
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Kumba
000 t
11,572
11,382
2%
10,855
7%
22,427
21,854
3%
Minas-Rio(1)
000 t
106
4,324
nm
3,049
nm
3,155
8,666
(64)%
(1) Wet basis.
Kumba - Kumba a solid operational performance, increasing iron ore production by 2% to 11.6 million tonnes, largely driven by strong performance at Kolomela.
Sishen's production was broadly flat at 7.9 million tonnes, with improved DMS plant performance. Waste stripping increased by 4% to 44.4 million tonnes as a result of continued improvements in efficiencies.
Kolomela's production increased by 4% to 3.6 million tonnes, supported by the full ramp-up of the modular plant. Waste stripping decreased by 15% to 13.1 million tonnes primarily due to the impact of high rainfall.
Export sales improved marginally to 9.6 million tonnes (Q2 2017: 9.4 million tonnes). Kumba is working closely with its rail provider, Transnet, to secure delivery of its contracted rail volumes and to reduce the risk of further derailments. As a result of these rail constraints, total finished product stock increased from 4.3 million tonnes at 31 December 2017 to 6.2 million tonnes at 30 June 2018, above optimal levels.
Minas-Rio - Production decreased to 0.1 million tonnes (Q2 2017: 4.3 million tonnes), as a result of the suspension of operations from March 2018, following two leaks in the iron ore slurry pipeline.
The detailed pipeline inspection work is on track. A 4km section of the pipeline, where the leaks occurred will be replaced as a precautionary measure and is expected to be completed in Q4 2018, followed by the restart of the operation, subject to required clearance from authorities. There is no change to the earnings impact of the pipeline incident from the guidance provided in April, with a 2018 loss of $300-$400 million in EBITDA.
Full Year Guidance
Full year production guidance for Kumba has been revised marginally to 43-44 million tonnes (previously 44-45 million tonnes) to align production rates to rail availability. Waste guidance for 2018 remains unchanged at 170-180 million tonnes for Sishen and 55-57 million tonnes for Kolomela.
Full year production guidance for Minas-Rio remains at 3 million tonnes reflecting production delivered to date in 2018.
Iron Ore (tonnes)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Kumba production
11,572,000
10,855,100
11,642,600
11,485,700
11,381,600
7%
2%
22,427,000
21,854,200
3%
Lump
7,889,600
7,243,500
7,719,100
7,609,200
7,504,200
9%
5%
15,133,100
14,483,000
4%
Fines
3,682,400
3,611,600
3,923,500
3,876,500
3,877,400
2%
(5)%
7,293,900
7,371,200
(1)%
Kumba production by mine:
Sishen
7,930,300
7,324,600
7,782,300
7,786,100
7,871,900
8%
1%
15,254,900
15,550,800
(2)%
Kolomela
3,641,700
3,530,500
3,860,300
3,699,600
3,509,700
3%
4%
7,172,100
6,303,400
14%
Kumba sales volumes
Export iron ore
9,560,100
9,945,700
11,354,800
10,783,200
9,423,600
(4)%
1%
19,505,800
19,476,600
-
Domestic iron ore
781,900
885,400
875,700
644,100
924,600
(12)%
(15)%
1,667,300
1,757,300
(5)%
Minas-Rio production
Pellet feed (wet basis)
105,800
3,049,400
3,949,900
4,171,500
4,324,100
nm
nm
3,155,200
8,665,900
(64)%
Minas-Rio sales volumes
Export - pellet feed (wet basis)
320,800
2,896,100
4,140,700
3,739,800
4,371,000
nm
nm
3,216,800
8,627,500
(63)%
COAL
Coal
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Metallurgical Coal (Australia)
000 t
5,262
3,964
33%
5,539
(5)%
10,801
9,206
17%
Export Thermal Coal (Australia)
000 t
290
305
(5)%
209
39%
499
784
(36)%
Export Thermal Coal
(South Africa)(1)
000 t
4,440
4,841
(8)%
4,328
3%
8,767
9,593
(9)%
Export Thermal Coal (Colombia)
000 t
2,762
2,450
13%
2,444
13%
5,206
5,231
-
Domestic Thermal Coal
(South Africa)
000 t
2,780
8,187
(66)%
4,970
(44)%
7,750
15,743
(51)%
(1) Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.
Metallurgical Coal - Export metallurgical coal production increased by 33% to 5.3 million tonnes as Grosvenor ramped up performance following geotechnical challenges in 2017. Moranbah production also improved following strong operational performance, and due to timing of longwall moves.
Thermal Coal South Africa - Export thermal coal production decreased by 8% to 4.4 million tonnes as Khwezela and Goedehoop ramp down in areas transitioning to closure and Mafube continues to transition into a new pit. This was partially offset by strong operational performance at Greenside.
Domestic thermal coal production decreased by 66% to 2.8 million tonnes primarily due to the completion of the sale of the Eskom-tied operations (New Vaal, New Denmark and Kriel) to Seriti on 1 March 2018.
Thermal Coal Colombia - Attributable export thermal coal production from Cerrejón increased by 13% to 2.8 million tonnes.
Full Year Guidance
Full year production guidance for Metallurgical Coal remains unchanged at 20-22 million tonnes.
Full year production guidance for Export Thermal Coal has been revised down to 28-30 million tonnes (previously 29-31 million tonnes) due to dust-related stoppages at Cerrejón and challenging geology at sections of South African operations approaching end of life.
Coal, by product (tonnes)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Metallurgical Coal (Australia)
5,261,900
5,539,100
4,923,900
5,531,500
3,963,500
(5)%
33%
10,801,100
9,206,000
17%
Hard Coking Coal
4,534,800
4,853,200
4,300,300
4,696,200
3,237,000
(7)%
40%
9,388,100
7,984,400
18%
PCI / SSCC
727,100
685,900
623,600
835,300
726,500
6%
0%
1,413,000
1,221,600
16%
Thermal Coal
10,271,300
11,950,300
15,172,700
15,637,100
15,782,500
(14)%
(35)%
22,221,600
31,350,400
(29)%
Export (Australia)
289,900
208,700
408,600
421,400
304,700
39%
(5)%
498,600
783,600
(36)%
Export (South Africa)(1)
4,439,600
4,327,500
4,647,800
4,352,000
4,840,800
3%
(8)%
8,767,100
9,592,800
(9)%
Export (Colombia)
2,761,500
2,444,300
2,913,600
2,496,700
2,449,600
13%
13%
5,205,800
5,231,300
-
Domestic (South Africa)
2,780,300
4,969,800
7,202,700
8,367,000
8,187,400
(44)%
(66)%
7,750,100
15,742,700
(51)%
Total coal production
15,533,200
17,489,400
20,096,600
21,168,600
19,746,000
(11)%
(21)%
33,022,700
40,556,400
(19)%
Sales volumes
Metallurgical Coal (Australia)
5,094,500
5,632,900
5,323,600
5,341,700
4,155,000
(10)%
23%
10,727,400
9,105,200
18%
Hard Coking Coal
4,402,800
4,885,500
4,653,000
4,707,600
3,649,700
(10)%
21%
9,288,300
8,126,800
14%
PCI / SSCC
691,700
747,400
670,600
634,100
505,300
(7)%
37%
1,439,100
978,400
47%
Thermal Coal
Export (Australia)
357,800
293,800
466,900
468,500
422,800
22%
(15)%
651,600
893,300
(27)%
Export (South Africa)(1)
4,092,700
4,615,700
4,843,500
4,921,200
4,150,800
(11)%
(1)%
8,708,400
8,844,100
(2)%
Export (Colombia)
2,762,900
2,480,200
2,619,400
2,517,500
2,770,500
11%
-
5,243,100
5,416,800
(3)%
Domestic (South Africa)
3,146,500
4,711,000
7,370,300
8,549,300
8,385,400
(33)%
(62)%
7,857,500
16,103,400
(51)%
Third party sales
2,544,400
2,127,100
1,779,400
2,436,100
1,835,400
20%
39%
4,671,500
3,403,200
37%
(1) Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.
Coal, by operation (tonnes)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
Q1 2018
vs.
Q4 2017
Metallurgical Coal (Australia)
5,261,900
5,539,100
4,923,900
5,531,500
3,963,500
(5)%
33%
10,801,100
9,206,000
17%
Moranbah North
1,064,300
1,936,700
1,979,800
1,316,800
688,600
(45)%
55%
3,001,000
2,104,700
43%
Grosvenor
1,342,000
825,600
161,300
1,012,500
183,600
63%
nm
2,167,600
893,400
143%
Capcoal (incl. Grasstree)
1,324,200
1,396,000
1,604,900
1,712,100
1,467,400
(5)%
(10)%
2,720,200
3,169,500
(14)%
Dawson
714,100
534,500
319,700
670,300
787,500
34%
(9)%
1,248,600
1,492,600
(16)%
Jellinbah
817,300
846,300
858,200
819,800
836,400
(3)%
(2)%
1,663,600
1,545,800
8%
Thermal Coal (Australia)
289,900
208,700
408,600
421,400
304,700
39%
(5)%
498,600
783,600
(36)%
Capcoal (incl. Grasstree)
66,000
65,500
95,400
62,000
41,500
1%
59%
131,500
124,800
5%
Dawson
193,400
114,500
310,800
342,500
259,300
69%
(25)%
307,900
646,300
(52)%
Jellinbah
30,500
28,700
2,400
16,900
3,900
6%
nm
59,200
12,500
nm
Total Australia production
5,551,800
5,747,800
5,332,500
5,952,900
4,268,200
(3)%
30%
11,299,600
9,989,600
13%
Thermal (South Africa)(1)
Goedehoop
1,185,900
1,138,000
1,114,300
1,085,400
1,230,800
4%
(4)%
2,323,900
2,452,900
(5)%
Greenside
941,500
1,043,600
1,041,200
906,700
877,700
(10)%
7%
1,985,100
1,882,500
5%
Zibulo
1,553,500
1,673,100
1,587,900
1,534,600
1,672,900
(7)%
(7)%
3,226,600
3,112,300
4%
Khwezela
1,297,200
1,244,000
1,371,300
1,265,300
1,475,000
4%
(12)%
2,541,200
3,071,100
(17)%
Mafube
172,100
105,600
350,900
361,200
407,600
63%
(58)%
277,700
849,000
(67)%
Other(2)
1,076,700
-
-
-
-
nm
nm
1,076,700
-
nm
New Vaal(3)
-
1,560,500
3,218,500
4,354,300
4,121,900
nm
nm
1,560,500
7,536,200
(79)%
New Denmark(3)
-
560,100
963,300
673,700
769,600
nm
nm
560,100
1,724,000
(68)%
Kriel(3)
-
704,900
1,237,400
1,392,700
1,420,300
nm
nm
704,900
2,758,800
(74)%
Isibonelo
993,000
1,267,500
965,700
1,145,100
1,052,400
(22)%
(6)%
2,260,500
1,948,700
16%
Total South Africa production
7,219,900
9,297,300
11,850,500
12,719,000
13,028,200
(22)%
(45)%
16,517,200
25,335,500
(35)%
Colombia (Cerrejón)
2,761,500
2,444,300
2,913,600
2,496,700
2,449,600
13%
13%
5,205,800
5,231,300
-
Total Coal production
15,533,200
17,489,400
20,096,600
21,168,600
19,746,000
(11)%
(21)%
33,022,700
40,556,400
(19)%
(1) Export and domestic production; New Vaal, New Denmark, Kriel and Isibonelo produce exclusively domestic volumes.
(2) Other production comes from the recovery of saleable product from mineral resource dumps.
(3) The sale of the Eskom-tied operations was completed on 1 March 2018.
NICKEL
Nickel
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Nickel
t
10,800
11,300
(4)%
8,600
26%
19,400
21,200
(8)%
Nickel output decreased by 4% to 10,800 tonnes, largely owing to a four-day stoppage when plant supplies were affected by a truckers' strike, and lower ore grades. A recovery plan is in place and no losses are expected for the full year.
Full year production guidance remains unchanged at 42,000-44,000 tonnes.
Nickel(1)
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q2 2018 vs.
Q1 2018
Q2 2018
vs.
Q2 2017
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Barro Alto
Ore mined
1,208,800
1,001,500
978,600
1,895,000
2,375,700
21%
(49)%
2,210,300
3,399,200
(35)%
Ore processed
588,200
447,600
591,500
578,200
615,700
31%
(4)%
1,035,900
1,139,600
(9)%
Ore grade processed - %Ni
1.67
1.68
1.71
1.72
1.71
-
(2)%
1.67
1.71
(2)%
Production
8,600
6,500
9,100
8,900
9,100
32%
(5)%
15,100
16,900
(11)%
Codemin
Ore mined
-
-
-
-
7,500
-
-
-
7,500
-
Ore processed
150,600
141,100
147,200
152,200
144,000
7%
5%
291,800
287,600
1%
Ore grade processed - %Ni
1.62
1.66
1.70
1.70
1.69
(2)%
(4)%
1.64
1.67
(2)%
Production
2,200
2,100
2,300
2,300
2,200
5%
-
4,300
4,300
-
Total Nickel segment nickel production
10,800
8,600
11,400
11,200
11,300
26%
(4)%
19,400
21,200
(8)%
Sales volumes
10,800
9,200
10,900
11,300
10,400
17%
4%
20,100
20,800
(3)%
(1) Excludes Anglo American Platinum's nickel production.
MANGANESE
Manganese
Q2
2018
Q2
2017
Q2 2018
vs.
Q2 2017
Q1 2018
Q2 2018 vs.
Q1 2018
H1 2018
H1 2017
H1 2018
vs.
H1 2017
Manganese ore (1)
000 t
866
843
3%
881
(2)%
1,747
1,666
5%
Manganese alloys(1)(2)
000 t
43
39
10%
41
4%
84
71
19%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore - Manganese ore production increased by 3% to 866,200 tonnes.
Manganese alloy - Manganese alloy production increased by 10% to 42,800 tonnes.
Manganese (tonnes)
Samancor
Manganese ore(1)
866,200
880,800
979,600
839,500
843,300
(2)%
3%
1,747,000
1,666,400
5%
Manganese alloys(1)(2)
42,800
41,200
41,100
37,300
39,300
4%
10%
84,000
70,800
19%
Samancor sales volumes
Manganese ore
910,100
824,200
874,900
846,900
887,600
10%
3%
1,734,300
1,723,600
1%
Manganese alloys
48,400
38,300
37,300
33,500
37,200
26%
30%
86,700
71,600
21%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for the quarter increased by 38% to $72 million. Exploration expenditure increased by 17% to $27 million and evaluation expenditure increased by 55% to $45 million.
Anglo American continues to prioritise and invest in mineral discovery, building upon its long and successful history of identifying viable mineral resources. The Discovery team's objective is to build and maintain a robust greenfield portfolio by identifying and securing extensive mineral tenure covering strategic, highly prospective search space in both established and frontier settings. Their focus is on the discovery of mineral deposits that are capable of delivering sustainable and superior returns on a material scale, and which provide greater long-term optionality for the Group.
The team is active across a number of geographies, using the latest technologies and innovations to pinpoint opportunities for further investigation. These include Australia, Brazil, Ecuador, Peru and Zambia. As an example, exploration activity in the Alta Floresta and Tapajos belts of central Brazil has yielded promising early-stage drilling results. These prompted the team to lodge applications securing >19,000 km2 of prospective mineral tenure, which the Group is now systematically evaluating.
REALISED PRICES SUMMARY
Average realised prices
H1 2018
H2 2017
H1 2017
FY 2017
H1 2018
vs.
H1 2017
H1 2018
vs.
H2 2017
De Beers
Total sales volumes (100%) (Mct)(1)
18.8
15.1
20.0
35.1
(6)%
25%
Consolidated sales volumes
(Mct)(1)
17.8
14.0
19.1
33.1
(7)%
27%
Consolidated average realised price ($/ct)(2)
162
170
156
162
4%
(5)%
Average price index(3)
123
122
121
122
2%
1%
PGMs
Platinum (US$/oz)
932
946
957
947
(3)%
(1)%
Palladium (US$/oz)
1,005
926
780
876
29%
9%
Rhodium (US$/oz)
1,938
1,180
911
1,094
113%
64%
Basket price (US$/oz)
2,318
2,061
1,843
1,966
26%
12%
Copper (USc/lb)(4)
297
309
264
290
13%
(3)%
Iron Ore - FOB prices
Kumba Export (US$/dmt)(5)
69
71
71
71
(3)%
(3)%
Minas-Rio (US$/wmt)(6)
70
64
66
65
6%
9%
Coal
Australia
Metallurgical - HCC (US$/t)(7)
198
180
195
187
2%
10%
Metallurgical - PCI (US$/t)(7)
129
126
124
125
4%
2%
Thermal - Export (US$/t)
99
95
87
91
14%
4%
South Africa
Thermal - Export (US$/t)(8)
88
80
72
76
18%
6%
Thermal - Domestic (US$/t, FOR)(9)
20
22
20
21
0%
(9)%
Colombia
Thermal - Export (US$/t)
79
79
71
75
11%
0%
Nickel (USc/lb)
632
508
442
476
43%
24%
(1) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué. Excluding Gahcho Kué's capitalised pre-commercial production sales volumes results in a consolidated sales volume of 18.4Mct for H1 2017.
(2) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial production sales from Gahcho Kué.
(3) Average of the De Beers price index for the Sights within the six-month period. The De Beers price index is relative to 100 as at December 2006.
(4) The realised price for Copper excludes third party sales volumes.
(5) Average realised export basket price (FOB Saldanha).
(6) Average realised export basket price (FOB Açu) (wet basis).
(7) Weighted average metallurgical coal sales price achieved.
(8) Weighted average export thermal coal price achieved. Excludes third party sales.
(9) Weighted average domestic thermal coal price achieved on all domestic thermal coal sales.
NOTES
· This Production Report for the second quarter ended 30 June 2018 is unaudited.
· Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report. The percentage change will reflect the percentage change using the production figures shown in the Production Summary of this report.
· Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each commodity's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices (and foreign exchange rates where appropriate) are used, in order that period-on-period comparisons exclude any impact for movements in price.
Forward-looking statements:
This contains certain forward-looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.
For further information, please contact:
Media
Investors
UK
James Wyatt-Tilby
james.wyatt-tilby@angloamerican.com
Tel: +44 (0)20 7968 8759
Marcelo Esquivel
marcelo.esquivel@angloamerican.com
Tel: +44 (0)20 7968 8891
South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
UK
Paul Galloway
paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8718
Robert Greenberg
robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 2124
Sheena Jethwa
sheena.jethwa@angloamerican.com
Tel: +44 (0)20 7968 8680
Notes to editors:
Anglo American is a global diversified mining business and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals to meet the growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people's lives.
Legal Entity Identifier: 549300S9XF92D1X8ME43
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDDRLSFDFAAFASEEW
Recent news on Anglo American
See all newsREG - Valterra Platinum - Dealing in securities on behalf of the Thobo ESOP
AnnouncementREG - Anglo American PLC - Total Voting Rights
AnnouncementREG - Anglo American PLC - Anglo American Half Year 2025 financial report
AnnouncementREG - Anglo American PLC - Kumba Iron Ore interim results
AnnouncementREG - Valterra Platinum - Results for the six months ended 30 June 2025
Announcement