REG - Anglo American PLC - Q3 2019 Production Report
Anglo American plc
Production Report for the third quarter ended 30 September 2019
Mark Cutifani, Chief Executive of Anglo American, said: "Production is up 4%(1) for the quarter, driven by the continued successful ramp-up at Minas-Rio and strong performance at Metallurgical Coal. De Beers production is lower, as expected, with Victor mine now at the end of its life and the transition of Venetia to underground. We remain broadly on track to deliver within our full year production targets, with an increase in production guidance at Minas-Rio. We expect to deliver to our production guidance for Copper and Thermal Coal, albeit at the lower end of their ranges; with Copper working to mitigate the effect of drought conditions in central Chile."
Production summary
• De Beers' diamond production decreased by 14% to 7.4 million carats due to planned mine closures and the underground transition at Venetia, and as we continue to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness.
• Copper production decreased by 8% to 158,900 tonnes due to unprecedented drought conditions impacting Los Bronces in Chile.
• Platinum and palladium production were broadly unchanged at 526,800 ounces and 351,800 ounces respectively.
• Kumba's iron ore production was unchanged at 10.5 million tonnes as increased production at Sishen was offset by lower production at Kolomela due to a plant upgrade.
• Minas-Rio's strong operational performance continued as iron ore production reached 6.1 million tonnes.
• Metallurgical coal production increased by 22% to 6.6 million tonnes due to improved wash plant throughput and equipment efficiency, as well as timing of longwall moves.
Q3 2019
Q3 2018
% vs. Q3 2018
YTD 2019
YTD 2018
% vs. YTD 2018
Diamonds (Mct)(3)
7.4
8.7
(14)%
23.0
26.2
(12)%
Copper (kt)(4)
159
172
(8)%
479
485
(1)%
Platinum (koz)(5)
527
530(2)
(1)%
1,519
1,535(2)
(1)%
Palladium (koz)(5)
352
351(2)
0%
1,026
1,051(2)
(2)%
Iron ore - Kumba (Mt)
10.5
10.5
0%
30.6
32.9
(7)%
Iron ore - Minas-Rio (Mt)(6)
6.1
-
n/a
17.0
3.2
n/a
Metallurgical coal (Mt)
6.6
5.4
22%
16.6
16.2
2%
Thermal coal (Mt)(7)
6.3
7.7
(18)%
19.6
21.7
(10)%
Nickel (kt)(8)
11.3
11.5
(2)%
30.9
30.9
0%
Manganese ore (kt)
910
888
3%
2,611
2,635
(1)%
(1) Copper equivalent production is normalised to reflect closure of Voorspoed (De Beers) and Sibanye-Stillwater Rustenburg material that has transitioned to a tolling arrangement (Platinum Group Metals). Excluding the impact of Minas-Rio, Group copper equivalent production is down 2% in the quarter.
(2) Normalised for the transition of Sibanye-Stillwater Rustenburg material from purchased concentrate to a tolling arrangement.
(3) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(4) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).
(5) Produced ounces of metal in concentrate. Reflects own mine production and purchases.
(6) Wet basis.
(7) Reflects export production from South Africa and attributable export production (33.3%) from Colombia.
(8) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).
http://www.rns-pdf.londonstockexchange.com/rns/6203Q_1-2019-10-21.pdf
DE BEERS
De Beers(1) (000 carats)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Botswana (Debswana)
5,699
5,699
0
%
5,718
0
%
17,367
17,786
(2
)%
Namibia (Namdeb)
426
460
(7
)%
335
27
%
1,243
1,503
(17
)%
South Africa
535
1,337
(60
)%
571
(6
)%
1,488
3,448
(57
)%
Canada
779
1,178
(34
)%
1,075
(28
)%
2,891
3,432
(16
)%
Total carats recovered
7,439
8,674
(14
)%
7,699
(3
)%
22,989
26,169
(12
)%
Rough diamond production decreased by 14% to 7.4 million carats due to planned reductions in South Africa and Canada. In addition, we continue to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness.
Botswana (Debswana) production was flat at 5.7 million carats. Orapa production increased by 22% due to a planned increase in the grade of material treated. This was offset by an 18% decrease at Jwaneng due to planned lower grade.
Namibia (Namdeb) production decreased by 7% to 0.4 million carats, as the Elizabeth Bay land operations were placed on care and maintenance in Q4 2018.
South Africa production decreased by 60% to 0.5 million carats due to lower mined volumes at Venetia as it approaches the transition from open pit to underground. In addition, Voorspoed production ended in Q4 2018 when it was placed on care and maintenance in preparation for closure.
Canada production decreased by 34% to 0.8 million carats primarily due to the closure of Victor which reached the end of its life in Q2 2019.
Rough diamond sales amounted to 7.4 million carats (7.1 million carats on a consolidated basis)(2) from three sales cycles, which compares to 5.0 million carats of sales (4.6 million carats on a consolidated basis(2) from two sales cycles in Q3 2018. Rough sales volumes were therefore higher due to an additional sales cycle in the period compared with the previous year; however, overall demand for rough diamonds remains subdued as a result of challenges in the midstream with higher polished inventories and caution due to macro-economic uncertainty.
Full Year Guidance
Production guidance(1) is unchanged at ~31 million carats, subject to trading conditions.
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
De Beers(1)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng
2,584
3,223
3,336
2,744
3,143
(20
)%
(18
)%
9,143
9,152
0
%
Orapa(2)
3,115
2,495
2,614
3,602
2,556
25
%
22
%
8,224
8,634
(5
)%
Botswana (Debswana)
5,699
5,718
5,950
6,346
5,699
0
%
0
%
17,367
17,786
(2
)%
Debmarine Namibia
320
245
364
400
322
31
%
(1
)%
929
1,036
(10
)%
Namdeb (land operations)
106
90
119
105
138
18
%
(23
)%
314
467
(33
)%
Namibia (Namdeb)
426
335
483
505
460
27
%
(7
)%
1,243
1,503
(17
)%
Venetia
535
571
382
1,141
1,178
(6
)%
(55
)%
1,488
3,108
(52
)%
Voorspoed
-
-
-
93
159
n/a
n/a
-
340
n/a
South Africa
535
571
382
1,234
1,337
(6
)%
(60
)%
1,488
3,448
(57
)%
Gahcho Kué (51% basis)
779
883
808
789
927
(12
)%
(16
)%
2,470
2,750
(10
)%
Victor
-
192
229
254
251
n/a
n/a
421
682
(38
)%
Canada
779
1,075
1,037
1,043
1,178
(28
)%
(34
)%
2,891
3,432
(16
)%
Total carats recovered
7,439
7,699
7,852
9,128
8,674
(3
)%
(14
)%
22,989
26,169
(12
)%
Sales volumes
Total sales volume (100)% (Mct)(3)
7.4
9.0
7.5
9.9
5.0
(18
)%
48
%
23.9
23.9
0
%
Consolidated sales volume (Mct)(3)
7.1
8.3
7.2
9.3
4.6
(14
)%
54
%
22.6
22.4
1
%
Number of Sights (sales cycles)
3
3
2
3
2
8
7
(1) De Beers Group 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 Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
COPPER
Copper(1) (tonnes)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Los Bronces
80,400
95,800
(16
)%
91,200
(12
)%
263,300
270,600
(3
)%
Collahuasi (44% share)
64,500
61,500
5
%
54,700
18
%
176,500
176,800
0
%
El Soldado
14,000
14,500
(3
)%
13,200
6
%
39,300
37,400
5
%
Total Copper
158,900
171,800
(8
)%
159,100
0
%
479,100
484,800
(1
)%
(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).
Copper production decreased by 8% to 158,900 tonnes, due to a reduction at Los Bronces driven by unprecedented drought conditions in central Chile, partially offset by strong plant performance at Collahuasi.
Production from Los Bronces decreased by 16%, to 80,400 tonnes, with a 15% reduction in plant throughput due to lower water availability, partly offset by planned higher grades (0.78% vs. 0.76%). To date, 2019 has been the driest year of the longest drought ever recorded in central Chile.
At Collahuasi, attributable production increased by 5% to 64,500 tonnes, with planned lower grades (1.14% vs 1.33%) offset by strong plant performance.
Full year guidance
Production guidance is tightened to 630,000-650,000 tonnes (previously 630,000-660,000 tonnes) due to the severe drought, which also remains a risk for 2020 production.
Copper(1)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Los Bronces mine(2)
Ore mined
15,560,400
17,302,500
15,678,600
12,675,800
13,019,000
(10
)%
20
%
48,541,500
46,531,600
4
%
Ore processed - Sulphide
10,977,200
11,813,600
12,070,800
12,669,900
13,089,300
(7
)%
(16
)%
34,861,600
37,913,100
(8
)%
Ore grade processed -
Sulphide (% TCu)(3)
0.78
0.81
0.80
0.81
0.76
(4
)%
3
%
0.80
0.74
8
%
Production - Copper cathode
10,100
9,300
9,600
10,200
10,300
9
%
(2
)%
29,000
28,800
1
%
Production - Copper in concentrate
70,300
81,900
82,100
88,800
85,500
(14
)%
(18
)%
234,300
241,800
(3
)%
Total production
80,400
91,200
91,700
99,000
95,800
(12
)%
(16
)%
263,300
270,600
(3
)%
Collahuasi 100% basis
(Anglo American share 44)%
Ore mined
25,780,000
23,698,300
15,642,800
14,781,300
13,791,400
9
%
87
%
65,121,000
37,105,100
76
%
Ore processed - Sulphide
14,478,700
11,626,100
13,299,600
13,638,400
12,332,800
25
%
17
%
39,404,400
35,832,100
10
%
Ore grade processed -
Sulphide (% TCu)(3)
1.14
1.21
1.16
1.28
1.33
(5
)%
(14
)%
1.17
1.30
(10
)%
Production - copper in concentrate
146,600
124,400
130,200
157,400
139,700
18
%
5
%
401,200
401,800
0
%
Anglo American's share of copper production for Collahuasi(4)
64,500
54,700
57,300
69,200
61,500
18
%
5
%
176,500
176,800
0
%
El Soldado mine(2)
Ore mined
3,299,900
3,017,800
3,089,000
3,233,900
3,361,000
9
%
(2
)%
9,406,700
8,379,300
12
%
Ore processed - Sulphide
1,911,700
1,861,900
1,809,900
1,951,600
2,036,000
3
%
(6
)%
5,583,500
5,646,600
(1
)%
Ore grade processed -
Sulphide (% TCu)(3)
0.92
0.92
0.84
0.94
0.87
0
%
6
%
0.90
0.82
9
%
Production - copper in concentrate
14,000
13,200
12,100
15,300
14,500
6
%
(3
)%
39,300
37,400
5
%
Chagres Smelter(2)
Ore smelted
28,800
32,100
30,300
30,900
37,700
(10
)%
(24
)%
91,200
111,700
(18
)%
Production
28,000
31,200
29,500
30,100
36,900
(10
)%
(24
)%
88,700
109,100
(19
)%
Total copper production(5)
158,900
159,100
161,100
183,500
171,800
0
%
(8
)%
479,100
484,800
(1
)%
Total payable copper production
153,000
153,100
155,000
177,100
165,700
0
%
(8
)%
461,100
467,400
(1
)%
Total sales volumes
160,000
165,400
141,900
205,800
159,900
(3
)%
0
%
467,300
465,900
0
%
Total payable sales volumes
153,800
159,100
136,500
198,400
154,200
(3
)%
0
%
449,400
449,300
0
%
Third party sales(6)
91,600
88,800
53,400
50,400
51,800
3
%
77
%
233,800
123,300
90
%
(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.
(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) Anglo American's share of Collahuasi production is 44%.
(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 GROUP METALS (PGMs)
Platinum (000 oz)(1)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Metal in concentrate production(2)
526.8
529.5
(1
)%
520.3
1
%
1,519.0
1,535.1
(1
)%
Own mined(3)
351.7
332.9
6
%
342.8
3
%
1,016.4
1,016.1
0
%
Purchase of concentrate (POC)(2)(4)
175.1
196.6
(11
)%
177.5
(1
)%
502.6
519.0
(3
)%
POC now under tolling arrangement(5)
-
119.5
n/a
-
n/a
-
347.3
n/a
Palladium (000 oz)(1)
Metal in concentrate production(2)
351.8
351.4
0
%
347.2
1
%
1,025.5
1,050.5
(2
)%
Own mined(3)
262.7
250.2
5
%
260.5
1
%
774.1
778.7
(1
)%
Purchase of concentrate (POC)(2)(4)
89.0
101.2
(12
)%
86.7
3
%
251.4
271.8
(8
)%
POC now under tolling arrangement(5)
-
59.4
n/a
-
n/a
-
173.7
n/a
Refined production
Platinum
000 oz(1)(6)
578.6
556.2
4
%
590.9
(2
)%
1,581.2
1,631.5
(3
)%
Palladium
000 oz(1)(6)
362.1
321.5
13
%
428.2
(15
)%
1,083.9
1,008.0
8
%
Rhodium
000 oz(1)(6)
66.5
65.2
2
%
84.1
(21
)%
202.6
201.5
1
%
Gold
000 oz(1)(6)
27.9
27.4
2
%
21.3
31
%
73.2
77.6
(6
)%
Nickel
t(6)
6,800
5,600
21
%
5,600
21
%
16,600
16,400
1
%
Copper
t(6)
3,400
2,900
17
%
3,500
(3
)%
10,100
10,100
0
%
Tolled material
Platinum
000 oz(1)
100.9
-
n/a
97.9
3
%
198.8
-
n/a
Palladium
000 oz(1)
51.3
-
n/a
49.1
4
%
100.4
-
n/a
(1) Ounces refer to troy ounces.
(2) Excluding purchase of concentrate volumes now treated under tolling arrangement.
(3) Includes managed operations and 50% of joint venture production.
(4) Includes 50% of joint venture production, and the purchase of concentrate from associates (BRPM prior to its disposal) and third parties.
(5) Comparative periods include purchase of concentrate volumes now under tolling arrangement.
(6) Refined production excludes toll material but includes in comparative periods material now transitioned to tolling.
Metal in concentrate production
Platinum production decreased by 1% to 526,800 ounces while palladium production was flat at 351,800 ounces.
Own mined platinum production increased by 6% to 351,700 ounces and palladium production increased by 5% to 262,700 ounces due to the inclusion of 100% of Mototolo volumes following the acquisition of the remaining 50% of the asset in November 2018. Increased production from Mogalakwena due to higher throughput and grade was partially offset by decreased production at Amandelbult due to maintenance at the concentrators.
Purchase of platinum in concentrate decreased by 11% to 175,100 ounces and of palladium decreased by 12% to 89,000 ounces due to lower purchases from joint ventures, as Mototolo became 100% owned in November 2018.
Refined production and sales volumes
Refined platinum production(1) increased by 4% to 578,600 ounces and refined palladium production(1) increased by 13% to 362,100 ounces. Q3 2018 volumes were negatively impacted by Mortimer smelter ramping up from its full rebuild and repairs at Polokwane smelter (35-day shutdown).
Platinum sales volumes(1) increased by 1% to 537,400 ounces and palladium sales volumes(1) decreased by 2% to 316,900. Sales volumes were lower than refined production due to maintenance work at the Waterval smelter.
Full Year Guidance
Production guidance (metal in concentrate) is unchanged at 2.0-2.1 million ounces of platinum and 1.3-1.4 million ounces of palladium.
(1) Does not include tolled volumes.
Platinum
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Produced platinum
(000 oz)(1)
526.8
520.3
471.9
485.4
529.5
1
%
(1
)%
1,519.0
1,535.1
(1
)%
Own mined
351.7
342.8
321.9
307.5
332.9
3
%
6
%
1,016.4
1,016.1
0
%
Mogalakwena
123.4
127.9
130.4
108.4
113.9
(4
)%
8
%
381.7
386.7
(1
)%
Amandelbult
118.4
116.6
98.5
96.5
126.0
2
%
(6
)%
333.5
346.2
(4
)%
Unki
23.7
23.1
19.3
22.0
22.4
3
%
6
%
66.1
63.9
3
%
Mototolo(2)
31.4
23.0
26.8
17.5
-
37
%
n/a
81.2
-
n/a
Joint ventures(2)
54.8
52.2
46.9
63.1
70.6
5
%
(22
)%
153.9
207.7
(26
)%
Union
-
-
-
-
-
n/a
n/a
-
11.6
n/a
Purchase of concentrate(3)
175.1
177.5
150.0
177.9
196.6
(1
)%
(11
)%
502.6
519.0
(3
)%
Joint ventures(2)
54.8
52.2
46.9
63.1
70.6
5
%
(22
)%
153.9
207.7
(26
)%
Associates(4)
-
-
-
46.9
66.7
n/a
n/a
-
173.3
n/a
Third parties(3)
120.3
125.3
103.1
67.9
59.3
(4
)%
103
%
348.7
138.0
153
%
POC now under tolling arrangements(5)
-
-
-
116.9
119.5
n/a
n/a
-
347.3
n/a
Palladium
Produced palladium
(000 oz)(1)
351.8
347.2
326.6
328.5
351.4
1
%
0
%
1,025.5
1,050.5
(2
)%
Own mined
262.7
260.5
250.9
234.8
250.2
1
%
5
%
774.1
778.7
(1
)%
Mogalakwena
130.8
139.5
141.5
118.2
127.1
(6
)%
3
%
411.8
422.7
(3
)%
Amandelbult
54.3
53.7
44.9
44.9
57.3
1
%
(5
)%
152.9
160.2
(5
)%
Unki
21.3
20.9
17.0
19.6
19.7
2
%
8
%
59.2
55.9
6
%
Mototolo(2)
19.4
14.0
16.3
10.9
-
39
%
n/a
49.7
-
n/a
Joint ventures(2)
36.9
32.4
31.2
41.2
46.1
14
%
(20
)%
100.5
134.7
(25
)%
Union
-
-
-
-
-
n/a
n/a
-
5.2
n/a
Purchase of concentrate(3)
89.0
86.7
75.7
93.7
101.2
3
%
(12
)%
251.4
271.8
(8
)%
Joint ventures(2)
36.9
32.4
31.2
41.2
46.1
14
%
(20
)%
100.5
134.7
(25
)%
Associates(4)
-
-
-
19.3
27.2
n/a
n/a
-
70.9
n/a
Third parties(3)
52.1
54.3
44.5
33.2
27.9
(4
)%
87
%
150.9
66.2
128
%
POC now under tolling arrangements(5)
-
-
-
58.1
59.4
n/a
n/a
-
173.7
n/a
Refined production
Platinum (000 oz)(1)(6)
578.6
590.9
411.7
770.9
556.2
(2
)%
4
%
1,581.2
1,631.5
(3
)%
Palladium (000 oz)(1)(6)
362.1
428.2
293.6
493.8
321.5
(15
)%
13
%
1,083.9
1,008.0
8
%
Rhodium (000 oz)(1)(6)
66.5
84.1
52.0
91.3
65.2
(21
)%
2
%
202.6
201.5
1
%
Gold (000 oz)(1)(6)
27.9
21.3
24.0
27.9
27.4
31
%
2
%
73.2
77.6
(6
)%
Nickel (tonnes)(6)
6,800
5,600
4,200
6,700
5,600
21
%
21
%
16,600
16,400
1
%
Copper (tonnes)(6)
3,400
3,500
3,200
4,200
2,900
(3
)%
17
%
10,100
10,100
0
%
Tolled material
Platinum (000 oz)(1)
100.9
97.9
-
-
-
3
%
n/a
198.8
-
n/a
Palladium (000 oz)(1)
51.3
49.1
-
-
-
4
%
n/a
100.4
-
n/a
Platinum sales volumes
(000 oz)(1)(7)
537.4
595.2
414.2
776.9
530.1
(10
)%
1
%
1,546.8
1,647.3
(6
)%
Palladium sales volumes
(000 oz)(1)(7)
316.9
475.9
292.1
455.3
324.3
(33
)%
(2
)%
1,084.9
1,057.8
3
%
Platinum 3rd party sales volumes (000 oz)(1)(8)
17.5
13.0
5.0
1.5
26.9
35
%
(35
)%
35.5
92.5
(62
)%
Palladium 3rd party sales volumes (000 oz)(1)(8)
79.7
81.0
58.7
16.5
55.0
(2
)%
45
%
219.4
108.0
103
%
4E head grade (g/t milled)(9)
3.65
3.55
3.58
3.38
3.58
3
%
2
%
3.60
3.51
3
%
(1) Ounces refer to troy ounces.
(2) The joint venture operations are 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'. Mototolo is 100% owned from 1 November 2018.
(3) Excluding purchase of concentrate volumes now treated under tolling arrangement.
(4) 33% interest in BRPM until its sale effective 11 December 2018.
(5) Comparative periods include purchase of concentrate volumes now under tolling arrangement.
(6) Refined production excludes tolled material.
(7) Sales from own mined and purchased concentrate, excludes refined metal purchased from third parties.
(8) Relates to sales of metal not produced by Anglo American operations.
(9) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material.
IRON ORE
Iron Ore (000 t)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Kumba
10,521
10,508
0
%
10,544
0
%
30,582
32,936
(7
)%
Minas-Rio(1)
6,126
-
n/a
5,916
4
%
16,951
3,155
n/a
(1) Wet basis.
Kumba - Total production volumes were broadly flat at 10.5 million tonnes, with increased production at Sishen offset by lower volumes from Kolomela.
Sishen's production increased by 2% to 7.2 million tonnes compared to Q3 2018 when production was reduced to manage stock levels arising from rail constraints.
Kolomela's production decreased by 3% to 3.4 million tonnes, as planned, due to an infrastructure upgrade at the DMS plant, which is scheduled to reopen in the fourth quarter.
Total sales decreased by 3% to 10.2 million tonnes, driven by domestic sales declining by 36% to 0.5 million tonnes due to lower customer off-take, while export sales were broadly flat at 9.7 million tonnes. Total finished stock increased to 5.1 million tonnes from 4.5 million tonnes at Q2 2019, as a result of the scheduled refurbishment of a ship loader.
In the third quarter, the ratio of lump to fines in the Kumba product was 66:34.
Minas-Rio - Production of 6.1 million tonnes was driven by continued strong operational performance and stability due to higher grade ore from the Step 3 mine area and productivity initiatives. The construction of the scheduled tailings dam raise was completed in August and approval for the conversion of the installation licence to an operating licence is expected by year-end.
Full Year Guidance
Production guidance for Kumba is unchanged at 42-43 million tonnes.
Minas-Rio production guidance for 2019 is increased to 20-22 million tonnes (previously 19-21 million tonnes) based on continued strong performance.
Iron Ore (tonnes)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Kumba production
10,521,300
10,544,000
9,516,300
10,170,200
10,508,400
0
%
0
%
30,581,600
32,935,500
(7
)%
Lump
6,955,500
7,111,400
6,544,600
6,878,600
7,159,800
(2
)%
(3
)%
20,611,500
22,292,900
(8
)%
Fines
3,565,800
3,432,600
2,971,700
3,291,600
3,348,600
4
%
6
%
9,970,100
10,642,600
(6
)%
Kumba production by mine
Sishen
7,153,500
7,310,400
6,446,600
6,960,500
7,030,600
(2
)%
2
%
20,910,500
22,285,500
(6
)%
Kolomela
3,367,800
3,233,600
3,069,700
3,209,700
3,477,800
4
%
(3
)%
9,671,100
10,650,000
(9
)%
Kumba sales volumes
Export iron ore
9,670,200
9,755,600
10,130,600
10,723,200
9,736,700
(1
)%
(1
)%
29,556,400
29,242,500
1
%
Domestic iron ore
483,600
716,300
748,000
868,200
755,600
(32
)%
(36
)%
1,947,900
2,422,900
(20
)%
Minas-Rio production
Pellet feed (wet basis)
6,126,100
5,915,500
4,909,700
226,700
-
4
%
n/a
16,951,300
3,155,200
n/a
Minas-Rio sales volumes
Export - pellet feed (wet basis)
5,734,500
6,590,400
4,031,400
-
-
(13
)%
n/a
16,356,300
3,216,800
n/a
COAL
Coal(1) (000 t)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Metallurgical Coal (Australia)
6,569
5,382
22
%
5,844
12
%
16,569
16,183
2
%
Export Thermal Coal (Australia)
438
455
(4
)%
245
79
%
1,022
954
7
%
Export Thermal Coal (South Africa)(2)
4,288
5,054
(15
)%
4,575
(6
)%
13,280
13,822
(4
)%
Export Thermal Coal (Colombia)(3)
2,055
2,658
(23
)%
2,017
2
%
6,271
7,863
(20
)%
Domestic Thermal Coal
(South Africa)
2,621
2,650
(1
)%
2,624
0
%
7,535
10,400
(28
)%
(1) Anglo American's attributable share of production.
(2) Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.
(3) Anglo American's attributable share of Cerrejón production is 33.3%.
Metallurgical Coal - Export metallurgical coal production increased by 22% to 6.6 million tonnes due to improvements in wash plant throughput and equipment productivity as well as the timing of longwall moves, with a move at Moranbah in Q3 2018. No significant impact on production is expected from longwall moves in the fourth quarter.
In the third quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 85:15.
Thermal Coal South Africa - Export thermal coal production decreased by 15% to 4.3 million tonnes, with planned decreases in production as certain sections near their end of life.
Thermal Coal Colombia - Attributable export thermal coal production from Cerrejón decreased by 23% to 2.1 million tonnes due to weather related impacts (dust management and rain) and weak market conditions.
Full Year Guidance
Production guidance for metallurgical coal is unchanged at 22-24 million tonnes.
Production guidance for export thermal coal is tightened to ~26 million tonnes (previously 26-28 million tonnes) due to lower than expected production from Cerrejón.
Coal, by product (tonnes)(1)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Metallurgical Coal (Australia)
6,568,900
5,843,500
4,156,200
5,647,100
5,382,300
12
%
22
%
16,568,600
16,183,300
2
%
Hard Coking Coal
5,615,900
4,958,600
3,265,100
4,864,600
4,545,800
13
%
24
%
13,839,600
13,933,800
(1
)%
PCI / SSCC
953,000
884,900
891,100
782,500
836,500
8
%
14
%
2,729,000
2,249,500
21
%
Thermal Coal
9,402,700
9,460,700
9,245,000
10,613,700
10,816,800
-1
%
(13
)%
28,108,300
33,038,400
(15
)%
Export (Australia)
437,900
245,200
338,500
427,600
455,100
79
%
(4
)%
1,021,600
953,700
7
%
Export (South Africa)(2)
4,288,400
4,575,000
4,417,000
4,537,100
5,054,400
(6
)%
(15
)%
13,280,300
13,821,500
(4
)%
Export (Colombia)(3)
2,055,100
2,016,900
2,199,300
2,356,500
2,657,600
2
%
(23
)%
6,271,300
7,863,400
(20
)%
Domestic (South Africa)
2,621,300
2,623,600
2,290,200
3,292,500
2,649,700
0
%
(1
)%
7,535,100
10,399,800
(28
)%
Total coal production
15,971,600
15,304,200
13,401,200
16,260,800
16,199,100
4
%
(1
)%
44,676,900
49,221,700
(9
)%
Sales volumes
Metallurgical Coal (Australia)
6,371,500
5,987,300
3,921,700
5,812,700
5,442,800
6
%
17
%
16,280,500
16,170,200
1
%
Hard Coking Coal
5,737,800
4,944,300
3,290,600
5,064,200
4,834,100
16
%
19
%
13,972,700
14,122,500
(1
)%
PCI / SSCC
633,700
1,043,000
631,100
748,500
608,700
(39
)%
4
%
2,307,800
2,047,700
13
%
Thermal Coal
12,166,100
12,046,300
12,265,900
13,700,800
11,782,900
1
%
3
%
36,478,500
38,914,800
(6
)%
Export (Australia)
584,600
270,900
451,200
582,200
331,600
116
%
76
%
1,306,800
983,100
33
%
Export (South Africa)(2)
4,073,300
4,932,400
4,262,800
5,918,700
3,679,600
(17
)%
11
%
13,268,500
12,387,900
7
%
Export (Colombia)(3)
2,068,600
2,244,800
2,199,600
2,297,200
2,589,100
(8
)%
(20
)%
6,513,000
7,832,200
(17
)%
Domestic (South Africa)
3,175,200
2,016,700
2,402,800
1,947,500
3,305,800
57
%
(4
)%
7,594,700
11,163,300
(32
)%
Third party sales
2,264,400
2,581,500
2,949,500
2,955,200
1,876,800
(12
)%
21
%
7,795,500
6,548,300
19
%
(1) Anglo American's attributable share of production.
(2) Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.
(3) Anglo American's attributable share of Cerrejón production is 33.3%.
Coal, by operation (tonnes)(1)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Metallurgical Coal (Australia)
6,568,900
5,843,500
4,156,200
5,647,100
5,382,300
12
%
22
%
16,568,600
16,183,300
2
%
Moranbah North
1,973,100
1,603,200
239,500
2,485,200
1,275,800
23
%
55
%
3,815,800
4,276,800
(11
)%
Grosvenor
1,344,500
1,032,500
1,333,200
356,100
1,239,800
30
%
8
%
3,710,200
3,407,400
9
%
Capcoal (incl. Grasstree)
1,709,200
1,738,900
1,213,600
1,357,800
1,564,700
(2
)%
9
%
4,661,700
4,284,900
9
%
Dawson
703,200
774,000
633,300
666,100
478,700
(9
)%
47
%
2,110,500
1,727,300
22
%
Jellinbah
838,900
694,900
736,600
781,900
823,300
21
%
2
%
2,270,400
2,486,900
(9
)%
Thermal Coal (Australia)
437,900
245,200
338,500
427,600
455,100
79
%
(4
)%
1,021,600
953,700
7
%
Capcoal
81,300
63,700
64,000
81,000
71,600
28
%
14
%
209,000
203,100
3
%
Dawson
323,200
145,200
263,300
320,500
357,700
123
%
(10
)%
731,700
665,600
10
%
Jellinbah
33,400
36,300
11,200
26,100
25,800
(8
)%
29
%
80,900
85,000
(5
)%
Total Australia production
7,006,800
6,088,700
4,494,700
6,074,700
5,837,400
15
%
20
%
17,590,200
17,137,000
3
%
Thermal (South Africa)(2)
Goedehoop
1,441,100
1,678,500
1,457,700
1,590,700
1,527,000
(14
)%
(6
)%
4,577,300
3,850,800
19
%
Greenside
1,237,200
1,186,700
993,300
1,202,300
1,264,300
4
%
(2
)%
3,417,200
3,249,400
5
%
Zibulo
1,294,100
1,394,600
1,319,600
1,681,500
1,468,700
(7
)%
(12
)%
4,008,300
4,695,300
(15
)%
Khwezela
1,433,400
1,463,300
1,333,800
1,522,000
1,468,800
(2
)%
(2
)%
4,230,500
4,010,000
5
%
Mafube
450,600
443,900
431,800
464,200
402,700
2
%
12
%
1,326,300
680,500
95
%
Other(3)
-
-
-
-
604,100
n/a
n/a
-
1,680,700
n/a
Eskom-tied operations(4)
-
-
-
-
-
n/a
n/a
-
2,825,500
n/a
Isibonelo
1,053,300
1,031,600
1,171,000
1,368,900
968,500
2
%
9
%
3,255,800
3,229,000
1
%
Total South Africa production
6,909,700
7,198,600
6,707,200
7,829,600
7,704,100
(4
)%
(10
)%
20,815,400
24,221,300
(14
)%
Colombia (Cerrejón)(5)
2,055,100
2,016,900
2,199,300
2,356,500
2,657,600
2
%
(23
)%
6,271,300
7,863,400
(20
)%
Total Coal production
15,971,600
15,304,200
13,401,200
16,260,800
16,199,100
4
%
(1
)%
44,676,900
49,221,700
(9
)%
(1) Anglo American's attributable share of production.
(2) Export and domestic production; the Eskom-tied operations and Isibonelo produce exclusively domestic volumes.
(3) Other production comes from the recovery of saleable product from mineral residue deposits.
(4) The sale of the Eskom-tied operations was completed on 1 March 2018.
(5) Anglo American's attributable share of Cerrejón production is 33.3%.
NICKEL
Nickel (tonnes)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Nickel
11,300
11,500
(2
)%
9,800
15%
30,900
30,900
0
%
Nickel production decreased by 2% due to the timing of annual planned maintenance of one of the two lines at the plant.
Full Year Guidance
Production guidance is unchanged at 42,000-44,000 tonnes.
Nickel
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Barro Alto
Ore mined
1,198,800
1,365,400
888,000
816,500
1,640,400
(12
)%
(27
)%
3,452,300
3,850,700
(10
)%
Ore processed
612,000
519,000
525,400
607,300
620,900
18
%
(1
)%
1,656,500
1,656,800
0
%
Ore grade processed - %Ni
1.66
1.67
1.67
1.74
1.73
(1
)%
(4
)%
1.68
1.69
(1
)%
Production
9,200
7,600
7,700
9,100
9,400
21
%
(2
)%
24,400
24,500
0
%
Codemin
Ore mined
1,300
39,000
-
8,400
-
(97
)%
n/a
40,300
-
n/a
Ore processed
140,200
148,900
139,900
150,600
139,100
(6
)%
1
%
429,000
430,900
0
%
Ore grade processed - %Ni
1.69
1.62
1.62
1.68
1.69
4
%
0
%
1.63
1.65
(1
)%
Production
2,100
2,300
2,100
2,300
2,100
(9
)%
0
%
6,500
6,400
2
%
Total Nickel production(1)
11,300
9,800
9,800
11,400
11,500
15
%
(2
)%
30,900
30,900
0
%
Sales volumes
10,600
8,800
9,800
12,600
10,400
20
%
2
%
29,200
30,500
(4
)%
(1) Excludes nickel production from the PGMs business unit.
MANGANESE
Manganese (000 t)
Q3
Q3
Q3 2019 vs. Q3 2018
Q2
Q3 2019 vs. Q2 2019
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2018
2019
2019
2018
Manganese ore(1)
910
888
3
%
826
10
%
2,611
2,635
(1
)%
Manganese alloys(1)(2)
29
35
(16
)%
41
(29
)%
106
119
(11
)%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore production increased by 3% to 910,400 tonnes, with higher production from South Africa being offset by a later wet season impacting Australian production.
Manganese alloy production decreased by 16% to 29,200 tonnes as a result of an outage of a furnace for all of the third quarter.
Manganese (tonnes)
Q3
Q2
Q1
Q4
Q3
Q3 2019 vs. Q2 2019
Q3 2019 vs. Q3 2018
YTD
YTD
YTD 2019 vs. YTD 2018
2019
2019
2019
2018
2018
2019
2018
Samancor
Manganese ore(1)
910,400
826,100
874,000
971,900
887,600
10
%
3
%
2,610,500
2,634,600
(1
)%
Manganese alloys(1)(2)
29,200
41,200
35,200
38,000
34,800
(29
)%
(16
)%
105,600
118,800
(11
)%
Samancor sales volumes
Manganese ore
897,800
958,400
843,400
959,800
840,400
(6
)%
7
%
2,699,600
2,574,700
5
%
Manganese alloys
30,400
44,800
30,100
44,000
30,400
(32
)%
0
%
105,300
117,100
(10
)%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure decreased by 8% to $68 million. Exploration expenditure decreased by 19% to $29 million driven by decreased activities in De Beers and PGMs. Evaluation expenditure increased by 3% to $39 million driven by increased spend in De Beers and Metallurgical Coal, offset by lower spend at Los Bronces (Copper).
CORPORATE ACTIVITY AND OTHER ITEMS
Diamond inventory has continued to build during the third quarter due to the subdued market conditions; the elevated inventory levels are not expected to unwind until 2020.
NOTES
• This Production Report for the quarter ended 30 September 2019 is unaudited.
• Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
• Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.
• Please refer to page 14 for information on 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
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
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
Emma Waterworth
emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8574
Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resources), are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such third party information.
Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast 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 - safely, responsibly and sustainably.
As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal, nickel and manganese - we are the custodians of what are precious natural resources. We work together with our business partners and diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.
www.angloamerican.com
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.ENDDRLLLFIDIFLLFIA
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