TIDMAAL
RNS Number : 0539D
Anglo American PLC
24 April 2017
NEWS RELEASE
24 April 2017
Anglo American plc
Production Report for the first quarter ended 31 March 2017
http://www.rns-pdf.londonstockexchange.com/rns/0539D_-2017-4-21.pdf
Overview
Q1 2017 Q1 2016 % vs. Q1 2016
---------------------- -------- -------- --------------
Diamonds (Mct)(1) 7.4 6.9 8%
---------------------- -------- -------- --------------
Platinum (produced
ounces) (koz)(2) 572 567 1%
---------------------- -------- -------- --------------
Copper (t)(3)(4) 142,600 146,500 (3)%
---------------------- -------- -------- --------------
Iron ore - Kumba
(Mt) 10.5 8.9 17%
---------------------- -------- -------- --------------
Iron ore - Minas-Rio
(Mt)(5) 4.3 3.3 30%
---------------------- -------- -------- --------------
Export metallurgical
coal (Mt) 5.2 4.1 28%
---------------------- -------- -------- --------------
Export thermal
coal (Mt)(6) 6.8 6.5 6%
---------------------- -------- -------- --------------
Nickel (t)(7) 9,900 11,200 (12)%
---------------------- -------- -------- --------------
Mark Cutifani, Chief Executive of Anglo American, said "A strong
operational performance enhanced by the continued ramp-up of Gahcho
Kué, Minas-Rio and Grosvenor delivered an 9% increase in production
on a copper equivalent basis(8) . The operating improvements at
Sishen and ongoing portfolio refinements are further strengthening
Anglo American's resilience and competitive position. De Beers'
total sales volumes of 14.1 million carats reflected improved
demand for lower value goods in stock at 31 December 2016."
-- Rough diamond production increased by 8% to 7.4 million carats compared with Q1 2016. This reflected the
contribution of Gahcho Kué in Canada, as well as increases in response to improved trading conditions.
-- Platinum production (metal in concentrate)(2) was broadly flat at 572,000 ounces. With the sale of Rustenburg,
production from that operation is now treated as purchase of concentrate (which increased by 93%) rather than own
mined production (which decreased by 26%). Refined platinum production increased by 121% to 577,000 ounces as Q1
2016 was impacted by a Section 54 safety stoppage at the Precious Metals Refinery.
-- Copper production decreased by 3% to 142,600 tonnes. Continued strong performance at Collahuasi was offset by
expected lower grades and increased ore hardness at Los Bronces, and the temporary suspension of mining
operations at El Soldado which resulted in 3,000 tonnes of lost production.
-- Iron ore production from Kumba increased by 17% to 10.5 million tonnes due to improved mining productivity at
Sishen, and higher throughput at Kolomela.
-- Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis) as the
operation continued to ramp-up.
-- Export metallurgical coal production increased by 28% to 5.2 million tonnes, primarily due to a longwall move at
Moranbah in Q1 2016 and the ramp-up at Grosvenor.
-- Production of South African and Colombian export thermal coal increased by 6% to 6.8 million tonnes, driven by
higher productivity across most of the South African mines.
-- Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces,
impacting throughput.
(1) De Beers production on 100% basis except the Gahcho Kué
joint venture which is on an attributable 51% basis; (2) Reflects
own mine production and purchases of metal in concentrate; (3)
Copper production from the Copper business unit; (4) Copper
production shown on a contained metal basis; (5) Wet basis; (6)
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; (7) Nickel production from the Nickel business unit; (8)
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.
DE BEERS
Diamonds(1) Q1 2017 Q1 2016 Q1 2017 Q4 2016 Q1 2017
vs. vs.
Q1 2016 Q4 2016
----------------- ----------------- --------- ----------------- ---------
Debswana 000 carats 5,191 5,328 (3)% 5,440 (5)%
Namdeb Holdings 000 carats 472 444 6% 428 10%
DBCM 000 carats 1,106 932 19% 1,387 (20)%
De Beers Canada 000 carats 631 162 290% 497 27%
Total carats
recovered 000 carats 7,400 6,866 8% 7,752 (5)%
----------------- ------------ ----------------- ----------------- --------- ----------------- ---------
De Beers - Rough diamond production increased by 8% to 7.4
million carats, reflecting the contribution of Gahcho Kué in
Canada, as well as increases in response to improved trading
conditions.
Debswana's (Botswana) production decreased marginally to 5.2
million carats. Jwaneng's, production decreased by 8% due to
expected lower grades, partly offset by Orapa, which increased by
5% due to expected higher grades.
Production at Namdeb Holdings (Namibia) increased by 6% to 0.5
million carats due to marginally higher grade at Namdeb.
In DBCM (South Africa), production increased by 19% to 1.1
million carats largely as a result of higher grades at Venetia.
Production in Canada increased by 290% to 0.6 million carats due
to the contribution of Gahcho Kué, which reached commercial
production on 2 March 2017.
Total rough diamond sales volumes in Q1 2017 were 14.1 million
carats (13.7 million carats on a consolidated basis(2) ) from three
Sights, compared with 8.1 million carats (7.6 million carats on a
consolidated basis(2) ) from two Sights in Q1 2016. In addition,
this increase reflected stronger demand in Sight 1 2017,
particularly for lower value goods in stock at 31 December
2016.
Full Year Guidance
Full year production guidance(1) remains unchanged at 31-33
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) Consolidated sales volume excludes De Beers' JV partners'
50% proportionate share of sales to entities outside the De Beers
Group of Companies from the Diamond Trading Company Botswana and
the Namibia Diamond Trading Company, and includes pre-commercial
production sales volumes from Gahcho Kué.
De Beers Q1 Q4 Q3 Q2 Q1 Q1 Q1
2017 2016 2016 2016 2016 2017 2017
vs. vs.
Q1 Q4
2016 2016
Carats recovered
(000 carats)
100% basis
(unless otherwise
stated)
Orapa 2,106 2,366 1,536 2,028 2,001 5% (11)%
Letlhakane 130 135 176 159 125 4% (4)%
Damtshaa(1) - - - - - - -
Jwaneng 2,955 2,939 2,837 2,997 3,202 (8)% 1%
Debswana 5,191 5,440 4,549 5,184 5,328 (3)% (5)%
Namdeb 94 118 120 94 72 31% (20)%
Debmarine
Namibia 378 310 285 202 372 2% 22%
Namdeb Holdings 472 428 405 296 444 6% 10%
Kimberley - - - - 68 (100)% -
Venetia 939 1,218 898 695 706 33% (23)%
Voorspoed 167 169 196 126 158 6% (1)%
DBCM 1,106 1,387 1,094 821 932 19% (20)%
Snap Lake - - - - 3 (100)% -
Victor 189 148 142 147 159 19% 28%
Gahcho Kué
(51% basis) 442 349 83 - - - 27%
De Beers Canada 631 497 225 147 162 290% 27%
Total carats
recovered 7,400 7,752 6,273 6,448 6,866 8% (5)%
------------------- --------------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ------- ------
Sales volumes
------------------- --------------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ------- ------
Total sales
volume
(100%) (Mct)(2) 14.1 8.0 5.7 10.2 8.1 74% 75%
------------------- --------------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ------- ------
Consolidated
sales volume
(Mct)(2)(3) 13.7 7.5 5.3 9.6 7.6 80% 82%
------------------- --------------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ------- ------
Number of
Sights
(sales cycles) 3 3 2 3 2
------------------- --------------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ------- ------
(1) Damtshaa (a satellite operation of Orapa) was placed on care
and maintenance from 1 January 2016).
(2) Consolidated sales volumes exclude De Beers' JV partners'
50% proportionate share of sales to entities outside the De Beers
Group of Companies from the Diamond Trading Company Botswana and
the Namibia Diamond Trading Company, which are included in total
sales volume.
(3) Consolidated sales volume includes pre-commercial production
sales volumes from Gahcho Kué.
PLATINUM
Platinum Q1 2017 Q1 2016 Q1 2017 Q4 2016 Q1 2017
vs. vs.
Q1 2016 Q4 2016
Produced ounces 000 oz 572 567 1% 610 (6)%
Own mined 000 oz 325 439 (26)% 387 (16)%
Purchase of concentrate 000 oz 247 128 93% 223 11%
Refined
Platinum 000 oz 577 261 121% 632 (9)%
Palladium 000 oz 353 182 95% 397 (11)%
Rhodium 000 oz 74 48 55% 92 (20)%
Gold 000 oz 25 28 (11)% 34 (27)%
Nickel t 5,100 5,700 (11)% 6,200 (18)%
Copper t 3,200 3,300 (3)% 3,300 (3)%
-------------------------- ----------- ----------- ----------- ------------ ----------- ------------
Platinum - Platinum production (metal in concentrate) was
broadly flat at 572,000 ounces. With the sale of Rustenburg, which
completed in November 2016, production from that operation is now
treated as purchase of concentrate (which increased by 93%) rather
than own mined production (which decreased by 26%).
Own mined production
Mogalakwena production increased by 3% to 111,900 ounces as a
result of stronger plant recoveries and increased throughput.
Amandelbult production decreased by 12% to 97,100 ounces
primarily due to unusually heavy rainfall resulting in flooded open
pits, which also impacted feed chutes to the concentrator plants,
as well as minor industrial action which impacted production for
two days.
Union increased production by 10% to 37,700 ounces due to
improved crew efficiencies and mining closer to the shaft area in
line with the optimised mine plan. The sale of Union to Siyanda
Resources was announced on 15 February. The sale is expected to
complete during 2017, after which Siyanda will sell concentrate
produced by Union to Platinum for a period of seven years and
thereafter Platinum will toll treat concentrate for the remaining
life of Union.
Mined production from independently managed operations decreased
by 3% to 59,000 ounces primarily due to lower production at
Kroondal following a two-day illegal strike, and lower grade at
both Kroondal and Mototolo. This was partially offset by higher
production at Modikwa due to improved plant recoveries.
Purchase of concentrate
Purchase of concentrate from independently managed operations
was flat at 123,700 ounces as increased production at BRPM offset
lower production at Bokoni following a fatality and subsequent
Section 54 safety stoppage, as well as the 3% decrease from
Modikwa, Mototolo and Kroondal described above.
Purchase of concentrate from third parties increased by nearly
120,000 ounces largely due to the inclusion of concentrate from
Rustenburg, following the sale of these operations to Sibanye in
November 2016.
Refined production
Refined platinum production increased by 316,100 ounces to
576,900 ounces with Q1 2016 refined production having been
materially impacted by a Section 54 safety stoppage at the Precious
Metal Refinery.
Following the Waterval smelter run-out in Q3 2016, the Number 1
furnace was successfully rebuilt in Q4 2016 and is now running at
steady-state; the backlog of 65,000 ounces is expected to be
processed during 2017. The Number 2 furnace underwent planned
maintenance and has now been successfully rebuilt. It is ramping-up
to full capacity, which is expected in Q2 2017.
Full Year Guidance
Full year production guidance of metal in concentrate remains
unchanged at 2.35 - 2.40 million ounces.
Q1 2017 Q1 2017
vs. vs.
Platinum Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
--------------------- --------- --------- --------- --------- --------- ---------- ----------
Produced
platinum
(000 troy
oz) 571.9 610.0 619.1 585.7 567.0 1% (6)%
Owned mined 324.6 386.8 468.3 443.5 439.1 (26)% (16)%
Mogalakwena 111.9 103.4 100.7 98.8 109.0 3% 8%
Amandelbult 97.1 121.1 128.3 106.2 110.9 (12)% (20)%
Unki 18.9 19.9 18.2 17.8 18.6 2% (5)%
Independently
managed
mines(1) 59.0 60.1 64.9 66.8 60.9 (3)% (2)%
Union 37.7 38.1 37.7 41.2 34.3 10% (1)%
Rustenburg(2) - 44.2 118.1 110.8 104.3 (100)% (100)%
Other(3) - - 0.4 1.9 1.1 (100)% -
Purchase
of concentrate 247.3 223.2 150.8 142.2 127.9 93% 11%
Independently
managed
mines(1) 123.7 129.3 142.2 136.4 124.2 - (4)%
Third party
purchase
of concentrate(2) 123.6 93.9 8.6 5.8 3.7 3241% 32%
Refined
production
Platinum
(000 troy
oz) 576.9 631.6 694.6 747.6 260.8 121% (9)%
Palladium
(000 troy
oz) 353.4 397.4 412.9 472.3 181.6 95% (11)%
Rhodium
(000 troy
oz) 73.7 92.2 86.8 90.7 47.7 55% (20)%
Gold (000
troy oz) 24.7 33.9 24.1 22.3 27.9 (11)% (27)%
Nickel (000
tonnes) 5.1 6.2 7.1 6.4 5.7 (11)% (18)%
Copper (000
tonnes) 3.2 3.3 3.8 3.7 3.3 (3)% (3)%
4E Built-up
head grade
(g/tonne
milled)(4) 3.47 3.41 3.19 3.00 3.11 12% 2%
Platinum
sales volumes
- own mined
and purchase
of concentrate 518.8 606.5 588.0 808.4 412.8 26% (14)%
--------------------- --------- --------- --------- --------- --------- ---------- ----------
(1) Independently managed mines include the joint venture
operations, Mototolo, Modikwa and Kroondal and the associates,
Bokoni and BRPM.
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016.
From this date production from Rustenburg is included within third
party purchase of concentrate (POC).
(3) Other includes Twickenham.
(4) 4E: the grade measured as the combined content of: platinum,
palladium, rhodium and gold.
COPPER
Copper(1) Q1 Q1 Q1 2017 Q4 Q1 2017
2017 2016 vs. 2016 vs.
Q1 2016 Q4 2016
-------------- ---- -------- -------- --------- -------- ---------
Collahuasi
(44% share) t 57,700 51,100 13% 58,600 (2)%
Los Bronces t 75,800 85,200 (11)% 74,300 2%
El Soldado t 9,100 10,200 (11)% 13,700 (34)%
Total Copper t 142,600 146,500 (3)% 146,600 (3)%
-------------- ---- -------- -------- --------- -------- ---------
(1) Copper production shown on a contained metal basis.
Copper - Copper production decreased by 3% to 142,600
tonnes.
At Collahuasi, attributable production increased by 13% to
57,700 tonnes, driven by higher grades and continued improvements
in plant performance. Adverse weather conditions impacted mining
operations, however plant throughput levels were maintained through
the feed of stockpiled material.
Production from Los Bronces decreased by 11% to 75,800 tonnes,
although 2% higher compared to the prior quarter, with expected
lower grades and increased ore hardness affecting throughput. In
addition, planned major maintenance took place at both processing
plants in the quarter.
El Soldado production decreased by 11% to 9,100 tonnes driven by
the temporary suspension of mining operations from 18 February
following the regulator's decision to not approve the mine plan
update, which resulted in 3,000 tonnes of lost production in Q1
2017. Engagement continues with the authorities.
Full Year Guidance
Full year production guidance remains unchanged at 570,000 -
600,000 tonnes, of which El Soldado represents 50,000 - 60,000
tonnes.
Copper (tonnes) on a contained Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2017 Q1 2017
metal basis unless stated vs. vs.
otherwise(1) Q1 2016 Q4 2016
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 13,803,300 20,335,200 17,131,800 15,277,400 14,858,200 (7)% (32)%
Ore processed - Sulphide 12,336,400 12,302,700 12,522,100 12,479,200 12,102,800 2% -
Ore grade processed - Sulphide
(% TCu)(2) 1.24 1.29 1.23 1.21 1.15 8% (4)%
Production - Copper cathode 100 700 800 1,400 1,900 (95)% (86)%
Production - Copper in
concentrate 131,000 132,400 128,900 126,300 114,200 15% (1)%
Total copper production for
Collahuasi 131,100 133,100 129,700 127,700 116,100 13% (2)%
Anglo American's share of
copper production for
Collahuasi(3) 57,700 58,600 57,000 56,200 51,100 13% (2)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Anglo American Sur 84,900 88,000 82,800 88,000 95,400 (11)% (4)%
Los Bronces mine(4) 75,800 74,300 72,100 75,600 85,200 (11)% 2%
Ore mined 13,448,400 13,196,500 13,947,400 13,477,900 10,487,900 28% 2%
Marginal ore mined 11,461,400 8,445,700 6,192,800 6,148,500 13,402,300 (14)% 36%
Ore processed - Sulphide 11,877,400 11,562,500 11,511,700 12,567,500 12,055,300 (1)% 3%
Ore grade processed - Sulphide
(% TCu) 0.69 0.69 0.65 0.62 0.74 (7)% (1)%
Production - Copper cathode 8,900 8,600 8,800 8,900 9,700 (8)% 3%
Production - Copper in
concentrate 66,900 65,700 63,300 66,700 75,500 (11)% 2%
El Soldado mine(4) 9,100 13,700 10,700 12,400 10,200 (11)% (34)%
Ore mined 905,500 2,069,800 1,678,300 2,143,000 1,448,000 (37)% (56)%
Ore processed - Sulphide 1,797,600 1,833,900 1,553,200 1,741,200 1,836,100 (2)% (2)%
Ore grade processed - Sulphide
(% TCu) 0.65 0.90 0.86 0.89 0.75 (13)% (28)%
Production - Copper in
concentrate 9,100 13,700 10,700 12,400 10,200 (11)% (34)%
Chagres Smelter(4)
Ore smelted 31,300 25,900 35,500 36,500 35,900 (13)% 21%
Production 30,300 25,400 34,700 35,500 35,200 (14)% 19%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Total Copper segment copper
production 216,000 221,100 212,500 215,700 211,500 2% (2)%
----------- --------- ---------
Total Attributable copper
production(5) 142,600 146,600 139,800 144,200 146,500 (3)% (3)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Total Attributable payable
copper production 137,500 141,300 135,000 139,200 141,600 (3)% (3)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Total Attributable sales
volumes 115,300 161,400 135,400 143,500 137,500 (16)% (29)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Total Attributable payable
sales volumes 111,200 155,700 130,700 138,500 133,000 (16)% (29)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
Third party sales(6) 9,800 20,100 26,000 6,700 9,200 7% (51)%
------------------------------- ----------- ----------- ----------- ----------- ----------- --------- ---------
(1) Excludes Anglo American Platinum's copper production.
(2) TCu = total copper.
(3) Anglo American's share of Collahuasi production is 44%.
(4) Anglo American ownership interest of Anglo American Sur is
50.1%. Production is stated at 100% as Anglo American consolidates
Anglo American Sur.
(5) Difference between total copper production and attributable
copper production arises from Anglo American's 44% interest in
Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
IRON ORE AND MANGANESE
Iron Ore and Manganese Q1 Q1 Q1 2017 Q4 Q1 2017
2017 2016 vs. 2016 vs.
Q1 2016 Q4 2016
-------------------------------- -------------- -------- --------- --------- ------------
000
Iron ore - Kumba t 10,473 8,925 17% 11,928 (12)%
000
Iron ore - Minas-Rio(1) t 4,342 3,349 30% 4,855 (11)%
000
Manganese ore(2) t 823 776 6% 804 2%
000
Manganese alloys(3) t 31 32 (2)% 37 (18)%
------------------------- ----- -------------- -------- --------- --------- ------------
(1) Wet basis.
(2) Saleable production.
(3) Production includes medium carbon ferro-manganese.
Kumba Iron Ore - Iron ore production increased by 17% to 10.5
million tonnes.
Sishen produced 7.7 million tonnes, a 31% increase driven by
improved mining productivity resulting in higher plant throughput.
As expected, production decreased by 10% compared to the previous
quarter as Q4 2016 benefitted from greater access to low strip
ratio ore. Waste removal of 33.9 million tonnes, in line with Q1
2016, was hampered by higher than expected rainfall during the
quarter but the run rates improved in the latter part of Q1 2017 to
levels required to meet full year guidance of 150-160 million
tonnes.
Kolomela production increased by 3% to 2.8 million tonnes, due
to higher throughput. Waste removal increased by 32% to 10.1
million tonnes in support of production growth. Going forward,
waste removal run rates are expected to improve to meet full year
guidance for 2017 of 50-55 million tonnes.
Export sales increased by 7% to 10.1 million tonnes. Total
finished product stocks were 3.2 million tonnes, compared with 3.5
million tonnes at 31 December 2016, in line with optimum level of 3
million tonnes.
Full Year Guidance
Full year production guidance remains unchanged at 40-42 million
tonnes.
Iron Ore Brazil - Iron ore production from Minas-Rio increased
by 30% to 4.3 million tonnes (wet basis) as the operation continued
to ramp-up to its current operating capacity. Production decreased
by 11% compared to Q4 2016 due to expected lower grades, and the
impact of higher rainfall at the start of the rainy season. After
the Step 3 licences have been secured, expected in late 2018, the
operation is expected to be in a position to
produce at its nameplate capacity of 26.5 million tonnes (wet basis) per year.
Full Year Guidance
Full year production guidance remains unchanged at 16-18 million
tonnes (wet basis).
Manganese ore - Manganese ore production increased by 6% to
823,000 tonnes, mainly as a result of opportunistic sales of South
African concentrate and the use of trucking to access export
opportunities in response to favourable market conditions. Ore
production from the Australian operations was broadly in line with
Q1 2016.
Manganese alloy - Manganese alloy production was broadly in line
with Q1 2016 at 31,000 tonnes. The South African Manganese
operations continue to operate only one of four furnaces.
Iron Ore and Manganese (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2017 Q1 2017
vs. vs.
Q1 2016 Q4 2016
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
Kumba Iron Ore 10,472,600 11,927,900 11,759,900 8,863,600 8,924,500 17% (12)%
By product:
Lump 6,978,800 7,812,000 7,598,500 5,721,300 5,669,700 23% (11)%
Fines 3,493,800 4,115,900 4,161,400 3,142,300 3,254,800 7% (15)%
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
By mine:
Sishen 7,678,900 8,489,900 8,348,700 5,699,600 5,841,800 31% (10)%
Kolomela 2,793,700 3,438,000 3,411,200 3,164,000 2,713,100 3% (19)%
Thabazimbi - - - - 369,600 -
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
Kumba sales volumes
Export iron ore 10,053,000 10,611,400 10,343,200 8,729,700 9,376,100 7% (5)%
Domestic iron ore 832,700 612,700 706,900 936,000 1,167,700 (29)% 36%
Minas-Rio production
Pellet feed (wet basis) 4,341,700 4,855,300 4,452,400 3,483,800 3,349,400 30% (11)%
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
Minas-Rio sales volumes
Export - pellet feed
(wet basis) 4,256,500 4,761,800 4,510,400 3,223,900 3,714,400 15% (11)%
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
Samancor
Manganese ore(1) 823,100 804,200 761,700 791,300 775,900 6% 2%
Manganese alloys(1)(2) 31,500 37,100 38,900 29,700 32,100 (2)% (15)%
Samancor sales volumes
Manganese ore(3) 836,000 805,000 757,400 813,300 850,700 (2)% 4%
Manganese alloys 34,400 31,600 49,200 46,400 42,800 (20)% 9%
--------------------------------- ----------- ---------- ---------- --------- ---------- --------- --------
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
(3) Comparatives have been restated.
COAL
Coal Q1 Q1 Q1 2017 Q4 Q1 2017
2017 2016 vs. 2016 vs.
Q1 2016 Q4 2016
----------------- ------- -------- -------- ----------- -------- -----------
Australia - excluding
2016 divestments(1)
Metallurgical - 000
Export t 5,242 4,098 28% 5,360 (2)%
000
Thermal - Export t 479 805 (40)% 595 (20)%
South Africa
Thermal export 000
- Primary(2) t 4,059 3,842 6% 4,229 (4)%
Thermal export
and domestic - 000
Secondary(3) t 978 779 26% 927 6%
Thermal domestic 000
- Eskom t 6,374 6,392 - 7,515 (15)%
Thermal domestic 000
- Isibonelo(4) t 896 1,160 (23)% 1,038 (14)%
Colombia
000
Thermal - Export t 2,782 2,610 7% 2,801 (1)%
----------------- ------- -------- -------- ----------- -------- -----------
(1) Excludes production from Foxleigh, which was sold on 30
August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export - Primary is export quality product.
Comparatives have been restated to align with current
presentation.
(3) Thermal export and domestic - Secondary is lower quality
product that can be sold into either the export or domestic
markets. Comparatives have been restated to align with current
presentation. In 2016, 60% of secondary production was sold into
the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
Australia - Export metallurgical coal production increased by
28% to 5.2 million tonnes due to a longwall move at Moranbah in Q1
2016 and production ramping up at Grosvenor.
Australian export thermal coal production decreased by 40% to
0.5 million tonnes as Drayton ceased mining activities in October
2016 following the New South Wales Planning Assessment Commission's
recommendation not to approve the Drayton South Project.
Production was impacted by Cyclone Debbie with production losses
in the last week of March. Mining activities have now restarted at
all operations. The impact on the rail network has been more
material, and is still being assessed. It is expected that this
will impact Q2 sales volumes.
South Africa - Primary and secondary coal production increased
by 9% to 5.0 million tonnes due to productivity improvements at
most mines.
The sale of the Eskom-tied operating mines (New Vaal, New
Denmark and Kriel) to Seriti Resources was announced on 10 April,
and is expected to complete by the end of 2017. These mines
produced 5.7 million tonnes in Q1 2017.
Domestic - (Isibonelo) thermal coal production decreased by 23%
to 0.9 million tonnes due to a dragline fire which occurred during
Q4 2016.
Colombia - Production increased by 7% to 2.8 million tonnes,
through productivity gains.
Full Year Guidance
Full year production guidance for export metallurgical coal from
Australia remains unchanged at 19-21 million tonnes.
Full year production guidance for export thermal coal from South
Africa and Colombia remains unchanged at 29-31 million tonnes.
Coal (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2017 Q1 2017
vs. vs.
Q1 2016 Q4 2016
--------------------------------- ----------- ----------- ----------- ----------- ----------- -------- --------
Australia (all export)(1) 5,721,400 5,955,100 5,923,500 5,935,700 4,902,200 17% (4)%
Metallurgical - Coking 4,747,300 4,496,900 4,326,600 3,997,500 3,378,900 40% 6%
Metallurgical - PCI 495,100 862,900 741,300 923,300 718,800 (31)% (43)%
Thermal 479,000 595,300 855,600 1,014,900 804,500 (40)% (20)%
----------- ----------- ----------- ----------- ----------- -------- --------
South Africa 12,307,300 13,708,600 14,690,700 13,188,800 12,171,800 1% (10)%
Thermal export - Primary(2) 4,058,500 4,229,400 4,480,800 4,425,600 3,841,600 6% (4)%
Thermal export and domestic -
Secondary(3) 978,200 926,900 1,009,900 972,700 778,600 26% 6%
Thermal domestic - Eskom 6,374,300 7,514,700 8,083,900 6,708,700 6,392,000 - (15)%
Thermal domestic - Isibonelo(4) 896,300 1,037,600 1,116,100 1,081,800 1,159,600 (23)% (14)%
---------------------------------
Colombia
Thermal - Export 2,781,700 2,800,600 2,927,800 2,329,500 2,610,000 7% (1)%
--------------------------------- ----------- ----------- ----------- ----------- -------- --------
Total coal production 20,810,400 22,464,300 23,542,000 21,454,000 19,684,000 6% (7)%
-----------
Sales volumes
--------------------------------- ----------- ----------- -----------
Australia
Metallurgical - Export(5) 4,947,400 4,926,900 5,223,100 4,836,700 4,228,900 17% -
Thermal - Export 473,200 699,000 862,000 1,118,800 697,900 (32)% (32)%
South Africa
Thermal - Export 4,693,300 5,825,200 4,159,300 4,744,000 4,343,200 8% (19)%
Thermal - Other domestic 394,300 485,100 389,700 341,600 368,600 7% (19)%
Thermal domestic - Eskom 6,359,200 7,288,500 7,871,900 6,577,500 6,246,400 2% (13)%
Thermal domestic - Isibonelo 964,600 1,168,900 1,260,800 1,268,100 1,213,600 (21)% (17)%
Third party sales 1,567,800 694,600 2,181,800 1,608,600 1,566,700 - 126%
Colombia
Thermal - Export 2,646,300 2,722,300 2,905,100 2,843,800 2,339,000 13% (3)%
--------------------------------- ----------- ----------- ----------- ----------- ----------- -------- --------
(1) Comparatives have been restated to exclude production from
Foxleigh, which was sold on 30 August 2016, and Callide, which was
sold on 31 October 2016.
(2) Thermal export - Primary is export quality product.
Comparatives have been restated to align with current
presentation.
(3) Thermal export and domestic - Secondary is lower quality
product that can be sold into either the export or domestic
markets. Comparatives have been restated to align with current
presentation. In 2016, 60% of secondary production was sold into
the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(5) Includes both hard coking coal and PCI sales volumes.
Coal by mine (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2017 Q1 2017
vs. vs.
Q1 2016 Q4 2016
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
Australia
Capcoal
(incl. Grasstree) 1,785,400 1,230,200 1,637,300 2,205,400 1,760,000 1% 45%
Dawson 1,092,100 1,273,000 1,185,900 1,143,800 1,006,000 9% (14)%
Drayton - 82,300 317,100 418,200 349,900 (100)% (100)%
Grosvenor 709,800 539,100 685,700 331,200 203,000 250% 32%
Jellinbah 718,000 882,100 820,200 821,600 758,400 (5)% (19)%
Moranbah North 1,416,100 1,948,400 1,277,300 1,015,500 824,900 72% (27)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
5,721,400 5,955,100 5,923,500 5,935,700 4,902,200 17% (4)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
South Africa
Goedehoop 1,222,100 1,134,200 1,286,500 1,266,600 1,001,300 22% 8%
Greenside 1,004,800 1,036,900 1,111,400 990,700 806,300 25% (3)%
Zibulo 1,439,400 1,407,200 1,571,800 1,638,600 1,390,000 4% 2%
Khwezela(1) 1,596,100 2,230,000 2,137,100 1,849,000 1,969,600 (19)% (28)%
Mafube 441,400 435,400 506,000 438,500 379,100 16% 1%
New Vaal 3,414,300 3,994,800 4,350,500 4,027,700 3,521,800 (3)% (15)%
New Denmark 954,400 773,200 777,300 392,600 604,300 58% 23%
Kriel 1,338,500 1,659,400 1,834,000 1,503,300 1,339,800 - (19)%
Isibonelo 896,300 1,037,500 1,116,100 1,081,800 1,159,600 (23)% (14)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
12,307,300 13,708,600 14,690,700 13,188,800 12,171,800 1% (10)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
Colombia
Carbones del Cerrejón 2,781,700 2,800,600 2,927,800 2,329,500 2,610,000 7% (1)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
Total Coal production 20,810,400 22,464,300 23,542,000 21,454,000 19,684,000 6% (7)%
----------------------------- ---------- ---------- ---------- ---------- ---------- -------- ---------
(1) The merger of Kleinkopje and Landau.
NICKEL
Nickel Q1 Q1 Q1 2017 Q4 Q1 2017
2017 2016 vs. 2016 vs.
Q1 2016 Q4 2016
--------- --- ----- ------ -------- ------ --------
Nickel t 9,900 11,200 (12)% 10,900 (9)%
--------- --- ----- ------ -------- ------ --------
Nickel - Nickel production decreased by 12% to 9,900 tonnes due
to unplanned maintenance of Barro Alto's electric furnaces.
Full Year Guidance
As a consequence, full year production guidance has been revised
to 43,000 - 45,000 tonnes (previously 45,000 tonnes).
Nickel (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2017 Q1 2017
unless stated otherwise(1) vs. vs.
Q1 2016 Q4 2016
--------------------------------------- ---------- ------- ------- ------- ------- --------- --------
Barro Alto
Ore mined 1,023,500 364,300 974,100 835,300 457,000 124% 181%
Ore processed 523,900 579,800 610,000 569,200 598,100 (12)% (10)%
Ore grade processed - % Ni 1.70 1.77 1.76 1.76 1.77 (4)% (4)%
Production 7,800 8,800 9,000 8,800 8,900 (12)% (11)%
---------------------------------------
Codemin
Ore mined - - - 6,800 - - -
Ore processed 143,600 142,900 144,000 151,300 151,400 (5)% 0%
Ore grade processed - % Ni 1.65 1.73 1.72 1.72 1.68 (2)% (5)%
Production 2,100 2,100 2,300 2,300 2,300 (9)% 0%
---------------------------------------
Total Nickel segment nickel production 9,900 10,900 11,300 11,100 11,200 (12)% (9)%
---------------------------------------
Sales volumes 10,400 11,400 11,600 11,100 10,800 (4)% (9)%
--------------------------------------- ---------- ------- ------- ------- ------- --------- --------
(1) Excludes Anglo American Platinum's nickel production.
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure for the quarter increased
by 9% to $50 million. Exploration expenditure for the quarter was
$20 million, a 31% decrease, whilst evaluation expenditure was $30
million, a 76% increase.
NOTE
This Production Report for the first quarter ended 31 March 2017
is unaudited.
Note:
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.
Forward-looking statements:
This contains certain forward looking statements which involve
risk and uncertainty because they relate to events and depend on
circumstances that 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 UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968
Marcelo Esquivel 8718
marcelo.esquivel@angloamerican.com Trevor Dyer
Tel: +44 (0)20 7968 8891 trevor.dyer@angloamerican.com
South Africa Tel: +44 (0)20 7968
Pranill Ramchander 8992
pranill.ramchander@angloamerican.com Sheena Jethwa
Tel: +27 (0)11 638 2592 sheena.jethwa@angloamerican.com
Ann Farndell Tel: +44 (0)20 7968
ann.farndell@angloamerican.com 8680
Tel: +27 (0)11 638 2786
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),
platinum and other precious metals, copper, nickel, iron ore and
coal - 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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