REG - Anglo American PLC - Q3 2017 Production Report <Origin Href="QuoteRef">AAL.L</Origin>

Anglo AmericanAnnouncement

24/10/2017 07:01

RNS Number : 3922U
Anglo American PLC
24 October 2017
24 October 2017
Anglo American plc
Production Report for the third quarter ended 30 September 2017
Anglo American reports a 6% increase in total production on a copper equivalent basis in the third quarter of 2017, compared to the same period of 2016. For the first nine months of the year, copper equivalent production has increased by 8%(1).
Mark Cutifani, Anglo American Chief Executive, said: "We have delivered another strong production performance across our business. Grosvenor production has materially stepped-up as the new operating procedures have been implemented, while Gahcho Ku and Minas-Rio continue to make positive contributions. We have further increased production guidance at Kumba Iron Ore as we continue to improve our broader productivity performance. In Platinum, we have taken necessary steps to remove unprofitable ounces from production as we focus on value over volume."
Highlights
 At De Beers, stable trading conditions supported an increase in rough diamond production, driven principally by Debswana, and the ramp-up of Gahcho Ku.
 Copper production increased by 5% to 147,300 tonnes, reflecting strong mine extraction and higher associated grades.
 Production guidance for Platinum has been lowered to 2.30 - 2.35 million ounces following the closure of unprofitable production at Bokoni, which was placed on care and maintenance in the quarter.
 Production guidance at Kumba Iron Ore has been further increased to 42 - 44 million tonnes following the continuation of strong productivity performance at Sishen.
 Metallurgical coal production increased by 8% as Grosvenor delivered strong production through successful management of geological challenges and completion of its first longwall panel.
 Thermal coal production decreased by 15% due to operating challenges at Khwezela, a 100-hour safety stoppage across all the South African coal operations in August and weather related stoppages at Cerrejn.
Production Summary
Q3 2017
Q3 2016
% vs. Q3 2016
YTD 2017
YTD 2016
% vs. YTD 2017
Diamonds (Mct)(2)
9.2
6.3
46%
25.3
19.6
29%
Copper (t)(3)(4)
147,300
139,800
5%
430,700
430,500
-
Platinum (produced ounces) (koz)(5)
621
619
-
1,810
1,772
2%
Iron ore - Kumba (Mt)
11.5
11.8
(2)%
33.3
29.5
13%
Iron ore - Minas-Rio (Mt)(6)
4.2
4.5
(6)%
12.8
11.3
14%
Export metallurgical coal (Mt)
5.5
5.1
9%
14.7
14.1
5%
Export thermal coal (Mt)(7)
6.3
7.4
(15)%
19.6
20.6
(5)%
Nickel (t)(8)
11,200
11,300
(1)%
32,400
33,600
(4)%
(1) Copper equivalent production is normalised for, Kimberley, Niobium & Phosphates, Foxleigh and Callide, and to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton; (2) De Beers production on 100% basis except the Gahcho Ku joint venture which is on an attributable 51% basis; (3) Copper production from the Copper business unit; (4) Copper production shown on a contained metal basis; (5) Reflects own mine production and purchases of metal in concentrate; (6) Wet basis; (7) Export thermal coal includes export primary production from South Africa and Colombia, and excludes secondary South African production that may be sold into either the export or domestic markets; (8) Nickel production from the Nickel business unit.


NOTES
 This Production Report for the third quarter ended 30 September 2017 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-lookingstatements:
Thiscontainscertainforwardlookingstatementswhichinvolveriskanduncertaintybecausethey relatetoeventsanddependoncircumstancesthatoccurinthefuture.Thereareanumberoffactors thatcouldcauseactualresultsordevelopmentstodiffermateriallyfromthoseexpressedorimplied bytheseforwardlookingstatements.
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
Trevor Dyer
trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8992
Sheena Jethwa
sheena.jethwa@angloamerican.com
Tel: +44 (0)20 7968 8680
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and 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 long-term value that those resources represent for our shareholders and for the communities and countries in which we operate - creating sustainable value and making a real difference.
www.angloamerican.com
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/3922U_-2017-10-23.pdf

This information is provided by RNS
The company news service from the London Stock Exchange
  END
DRLFEAFUDFWSEIS