TIDMAAL
RNS Number : 2345W
Anglo American PLC
22 April 2021
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22 April 2021
Anglo American plc
Production Report for the first quarter ended 31 March 2021
Mark Cutifani, Chief Executive of Anglo American, said: "Anglo
American's portfolio is increasingly tilted towards future-enabling
metals and minerals, with our recently proposed demerger of our
thermal coal operations in South Africa moving us further in that
direction. We are also making good progress in ensuring every
operation plays its part towards a lower carbon world, with 100%
renewable electricity supply now secured for all of our operations
across Brazil, Chile and Peru.
"Q1 production was at 95%(1) of normal capacity, meeting strong
customer demand despite some limited constraints at certain
operations due to Covid-19. Production increased by 3%(1) driven by
strong performances at the copper operations in Chile, and PGMs and
iron ore in South Africa, more than offsetting plant maintenance
downtime at Minas-Rio iron ore in Brazil and the temporary
suspension at the Moranbah metallurgical coal operation in
Australia."
Q1 highlights
-- Demerger of South Africa thermal coal operations, subject to shareholder approval on 5 May.
-- Renewable electricity supply agreement signed for mains power
at the Quellaveco copper project in Peru. All South American
operations will have 100% renewable electricity supply from
2022.
-- Copper production increased by 9% due to strong performances
at both Los Bronces and Collahuasi.
-- Platinum Group Metals (PGMs) production increased by 7%, with
Mogalakwena production increasing by 17% due to higher throughput
and grade.
-- Iron ore production at Kumba increased by 10% driven by higher plant availability.
-- Rough diamond sales continued to improve amid midstream
restocking following an encouraging holiday selling season for
diamond jewellery in major global markets.
Production Q1 2021 Q1 2020 % vs. Q1 2020
Diamonds (Mct)(2) 7.2 7.8 (7)%
------------------------ ------- -------
Copper (kt)(3) 160 147 9%
------------------------ ------- -------
Platinum group metals
(koz)(4) 1,021 955 7%
------------------------ ------- -------
Iron ore (Mt)(5) 16.2 16.0 1%
------------------------ ------- -------
Metallurgical coal (Mt) 3.3 3.8 (14)%
------------------------ ------- -------
Thermal coal (Mt)(6) 4.9 6.2 (20)%
------------------------ ------- -------
Nickel (kt)(7) 10.1 10.9 (7)%
------------------------ ------- -------
Manganese ore (kt) 905 843 7%
------------------------ ------- -------
(1) Production capacity excludes Moranbah and Grosvenor. Copper
equivalent production is normalised to reflect the closure of the
manganese alloy operations and excludes the impact of Grosvenor.
Including the impact of Grosvenor, copper equivalent production
increased 2% compared to Q1 2020.
(2) De Beers Group 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 Group Metals business unit).
(4) Produced ounces of metal in concentrate. 5E+Au (platinum,
palladium, rhodium, ruthenium and iridium plus gold). Reflects own
mine production and purchase of concentrate.
(5) Wet basis. The comparative has been restated as Kumba previously reported on a dry basis.
(6) Reflects export primary production, secondary production
sold into export markets and production sold domestically at export
parity pricing from South Africa, and attributable export
production (33.3%) from Colombia (Cerrejón).
(7) Reflects nickel production from the Nickel business unit
only (excludes nickel production from the Platinum Group Metals
business unit).
PRODUCTION OUTLOOK SUMMARY
2021 production guidance is summarised as follows:
2021 production guidance (1)
Diamonds(2) 32-34 Mct
Copper(3) 640-680 kt
Platinum Group Metals(4) 4.2-4.6 Moz
Iron ore(5) 64.5-67.5 Mt
Metallurgical coal(6) 14-16 Mt
(previously 18-20 Mt)
Thermal coal (reflecting proposed c.14 Mt
demerger)(7) (previously c.24 Mt)
Nickel(8) 42-44 kt
---------------------------------- -----------------------------
(1) Subject to the extent of further Covid-19 related disruption.
(2) Subject to trading conditions and on a 100% basis except for
the Gahcho Kué joint venture, which is on an attributable 51%
basis.
(3) Copper business unit only. On a contained-metal basis.
(4) 5E + gold produced metal in concentrate ounces. Includes own
mined production (65%) and purchased concentrate volumes (35%). The
split of metals differs for own mined and purchased concentrate,
refer to FY2019 results presentation slide 30 for indicative split
of own mined volumes.
(5) Wet basis. Kumba guidance was previously shown on a dry basis.
(6) Excludes thermal coal production in Australia. The revision
to guidance reflects the suspension at Moranbah North as well as
geotechnical conditions and delayed access to Grosvenor.
(7) Export South Africa including volumes sold domestically at
export parity pricing and Colombia (33.3%) production. The revision
to guidance reflects the proposed demerger of the South Africa
thermal coal operations that, subject to shareholder approval, is
expected on 4 June 2021 with the subsequent listing of the demerged
business on 7 June 2021 (Export South Africa c.6 million tonnes for
the period January to May (previously c.16 million tonnes for
2021); Colombia c.8 million tonnes (attributable share)).
(8) Nickel business unit only.
REALISED PRICES
Q1 2021 FY 2020
Copper (USc/lb)(1) 421 299
Platinum Group Metals
Platinum (US$/oz) 1,142 880
Palladium (US$/oz) 2,424 2,214
Rhodium (US$/oz) 20,224 10,628
Basket price (US$/PGM oz)(2) 2,219 2,035
Iron Ore - FOB prices (3) 177 111
Kumba Export (US$/wmt)(4) 180 113
Minas-Rio (US$/wmt)(5) 170 107
Metallurgical Coal
HCC (US$/t)(6) 113 112
PCI (US$/t)(6) 94 84
Thermal Coal
Australia (US$/t)(6) 76 58
South Africa - Export (US$/t)(7) 74 57
Colombia (US$/t) 58 46
Nickel (USc/lb) 747 563
---------------------------------- ------- -------
(1) The realised price for Copper excludes third party sales volumes.
(2) Price for a basket of goods per PGM oz. The dollar basket
price is the net sales revenue from all metals (PGMs, base metals
and other metals), excluding trading, per 5E + gold sold ounces
(own mined and purchased concentrate).
(3) Average realised total iron ore price is a weighted average
of the Kumba and Minas-Rio realised prices. The comparative has
been restated as Kumba is now reported on a wet basis (previously
dry basis).
(4) Average realised export basket price (FOB Saldanha) (wet
basis as product is shipped with 1.6% moisture). The comparative
has been restated as Kumba previously reported on a dry basis. The
realised prices differ to Kumba's standalone results due to sales
to other Group companies. Average realised export basket price (FOB
Saldanha) on a dry basis is $183/t (FY 2020: $115/t).
(5) Average realised export basket price (FOB Açu) (wet basis as
product is shipped with 9% moisture).
(6) Weighted average coal sales price achieved at managed operations.
(7) Weighted average export thermal coal price achieved.
DE BEERS
De Beers(1) (000 carats) Q1 Q1 Q1 2021 Q4 Q1 2021
vs. Q1 2020 vs. Q4 2020
2021 2020 2020
----- ----- -----
Botswana 4,960 5,644 (12)% 4,263 16%
Namibia 338 511 (34)% 337 0%
South Africa 1,161 751 55% 1,287 (10)%
Canada 710 844 (16)% 776 (9)%
Total carats recovered 7,169 7,750 (7)% 6,663 8%
------------------------- ----- ----- -------- --- ----- -------- ---
Rough diamond production decreased by 7% to 7.2 million carats,
driven by operational challenges, including excessive rainfall in
southern Africa and a Covid-19-related shutdown in Canada, as well
as planned maintenance in Namibia.
In Botswana, production decreased by 12% to 5.0 million carats,
driven by a 24% reduction at Orapa due to a lower grade feed to the
plant in response to heavy rainfall and operational issues,
including continued power supply disruptions.
Namibia production decreased by 34% to 0.3 million carats,
primarily as the Mafuta vessel was under planned maintenance and
another vessel remained demobilised as part of the response to
lower demand implemented in Q3 2020.
South Africa production increased by 55% to 1.2 million carats
due to planned treatment of higher grade ore from the final cut of
the open pit.
Production in Canada decreased by 16% to 0.7 million carats,
primarily as a result of a Covid-19-related suspension of
operations in February.
Demand for rough diamonds in Q1 2021 recovered to pre-Covid-19
levels reflecting the replenishment of the depleted midstream, and
renewed confidence by the midstream in response to the return of
consumer demand for diamond jewellery in the US and China in the
second half of 2020. Rough diamond sales totalled 13.5(3) million
carats (12.7 million carats on a consolidated basis)(2)(3) from
three Sights, compared with 8.9 million carats (8.3 million carats
on a consolidated basis)(2) from two Sights in Q1 2020 and 6.9
million carats (6.4 million carats on a consolidated basis)(2) from
two Sights in Q4 2020.
Full Year Guidance
Production guidance(1) is unchanged at 32-34 million carats
(100% basis), subject to trading conditions and the extent of
further Covid-19-related disruption.
(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).
(3) Due to ongoing travel restrictions and the timing of Sight 3
at the end of Q1 2021, the Sight was extended beyond its normal
week-long duration. As a result, 0.2Mct (total sales volume, 100%
and consolidated basis) from Sight 3 will be recognised in Q2
2021.
De Beers(1) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
----- ----- ----- ----- -----
Carats recovered (000
carats)
100% basis (unless stated)
Jwaneng 3,091 1,452 1,748 1,138 3,200 (3)% 113%
Orapa(2) 1,869 2,811 3,079 687 2,444 (24)% (34)%
Botswana 4,960 4,263 4,827 1,825 5,644 (12)% 16%
Debmarine Namibia 249 256 147 305 417 (40)% (3)%
Namdeb (land operations) 89 81 95 53 94 (5)% 10%
Namibia 338 337 242 358 511 (34)% 0%
Venetia 1,161 1,287 1,178 555 751 55% (10)%
South Africa 1,161 1,287 1,178 555 751 55% (10)%
Gahcho Kué (51%
basis) 710 776 915 789 844 (16)% (9)%
Canada 710 776 915 789 844 (16)% (9)%
--------------------------- ----- ----- ----- ----- ----- ----- -----
Total carats recovered 7,169 6,663 7,162 3,527 7,750 (7)% 8%
--------------------------- ----- ----- ----- ----- ----- ----- -----
Sales volumes
Total sales volume (100)%
(Mct)(3)(4) 13.5 6.9 6.6 0.3 8.9 52% 96%
Consolidated sales volume
(Mct)(3)(4) 12.7 6.4 6.5 0.2 8.3 53% 98%
Number of Sights (sales
cycles) 3(4) 2 3 2(5) 2
--------------------------- ----- ----- ----- ----- ----- --------- ---------
(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).
(4) Due to ongoing travel restrictions and the timing of Sight 3
at the end of Q1 2021, the Sight event was extended beyond its
normal week-long duration. As a result, 0.2Mct (total sales volume,
100% and consolidated basis) from Sight 3 will be recognised in Q2
2021.
(5) Sight 3 in Q2 2020 was cancelled due to Covid-19-related
restrictions on the movement of people and product.
COPPER
Copper(1) (tonnes) Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
------- ------- -------
Los Bronces 78,800 68,700 15% 95,900 (18)%
Collahuasi (44% share) 71,600 66,500 8% 59,200 21%
El Soldado 9,900 11,900 (17)% 12,700 (22)%
Total Copper 160,300 147,100 9% 167,800 (4)%
----------------------- ------- ------- -------- --- ------- -------- ---
(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 increased by 9% to 160,300 tonnes, due to
strong operational performance at both Los Bronces and
Collahuasi.
Production from Los Bronces increased by 15% to 78,800 tonnes,
with higher water availability resulting in a 63% increase in plant
throughput, partially offset by planned lower grade (0.72% vs
0.98%).
At Collahuasi, attributable production increased by 8% to 71,600
tonnes, due to a sustained increase in plant performance resulting
in higher throughput and recoveries as well as planned higher ore
grade (1.26% vs 1.20%).
Production from El Soldado decreased by 17% to 9,900 tonnes as a
result of planned lower ore grade (0.70% vs 1.02%).
The average realised price of 421 c/lb includes 168,979 tonnes
of copper provisionally priced on 31 March at an average of 399
c/lb.
Full Year Guidance
Production guidance is unchanged at 640,000-680,000 tonnes,
subject to the extent of further Covid-19 related-disruption.
Copper(1) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
---------- ---------- ---------- ---------- ----------
Los Bronces mine (2)
Ore mined 10,812,400 11,546,300 8,414,600 9,237,400 10,013,000 8% (6)%
Ore processed - Sulphide 11,520,400 13,031,300 11,956,800 9,987,200 7,059,500 63% (12)%
Ore grade processed
-
Sulphide (% TCu)(3) 0.72 0.77 0.73 0.85 0.98 (27)% (6)%
Production - Copper
cathode 9,900 10,200 9,300 9,900 9,900 0% (3)%
Production - Copper
in concentrate 68,900 85,700 70,100 70,800 58,800 17% (20)%
Total production 78,800 95,900 79,400 80,700 68,700 15% (18)%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
Collahuasi 100% basis
(Anglo American share
44%)
Ore mined 21,220,300 18,110,000 16,412,100 18,035,100 19,402,000 9% 17%
Ore processed - Sulphide 14,441,600 12,928,700 14,612,300 14,192,800 14,097,800 2% 12%
Ore grade processed
-
Sulphide (% TCu)(3) 1.26 1.18 1.27 1.31 1.20 5% 6%
Production - Copper
in concentrate 162,800 134,600 171,500 172,000 151,000 8% 21%
Anglo American's 44%
share of copper production
for Collahuasi 71,600 59,200 75,500 75,700 66,500 8% 21%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
El Soldado mine (2)
Ore mined 1,708,600 1,982,000 1,885,100 1,378,100 1,915,300 (11)% (14)%
Ore processed - Sulphide 1,755,100 1,902,500 1,788,700 1,771,600 1,458,900 20% (8)%
Ore grade processed
-
Sulphide (% TCu)(3) 0.70 0.84 0.78 0.76 1.02 (31)% (17)%
Production - Copper
in concentrate 9,900 12,700 10,800 10,400 11,900 (17)% (22)%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
Chagres Smelter (2)
Ore smelted(4) 23,200 29,800 26,700 24,300 30,800 (25)% (22)%
Production 22,600 29,000 26,000 23,700 30,000 (25)% (22)%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
Total copper production
(5) 160,300 167,800 165,700 166,800 147,100 9% (4)%
Total payable copper
production 154,300 161,200 159,200 160,300 141,700 9% (4)%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
Total sales volumes 147,700 178,600 176,100 154,200 139,600 6% (17)%
Total payable sales
volumes 143,200 172,600 167,900 148,200 134,300 7% (17)%
Third party sales (6) 74,000 133,400 112,600 130,800 76,300 (3)% (45)%
---------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
(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) Copper contained basis.
(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)
Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
PGMs 000 oz(1) 2021 2020 2020
------- ----- -------
Metal in concentrate
production 1,021.2 954.9 7% 1,076.1 (5)%
Own mined(2) 694.9 654.6 6% 716.9 (3)%
Purchase of concentrate
(POC)(3) 326.3 300.3 9% 359.2 (9)%
------------------------ ------- ----- ------------ ------- ------------
Refined production
(4) 973.0 612.2 59% 673.1 45%
------------------------ ------- ----- ------------ ------- ------------
(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum,
palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as
well as the purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Own mined production increased by 6% to 694,900 ounces, due to
the lower impact of Covid-19, with lockdowns starting in late Q1
2020. Consequently, production at Mogalakwena increased by 17% due
to the higher throughput, as well as higher grade. Amandelbult
production decreased by 7%, as testing increased in response to the
second wave of Covid-19, delaying the return to work of employees
following the Christmas holiday period. Joint ventures' production
increased by 6%, largely due to a lower year-on-year Covid-19
impact.
Purchase of concentrate increased by 9% to 326,300 ounces, also
largely due to a lower year-on-year Covid-19 impact.
Refined production
Refined production increased by 59% to 973,000 ounces as the ACP
Phase A unit was fully operational following completion of the
rebuild in November 2020, and despite planned maintenance at the
Base Metals Refinery. The ACP Phase B rebuild is on schedule for
completion in H2 2021.
Sales
Sales volumes increased by 66%, driven by higher refined
production, supplemented by the drawdown of minor metals from
refined inventory.
The average realised basket price of $2,219/PGM ounce reflects
strong prices, particularly for rhodium and the minor metals,
partly offset by higher than normal sales of lower priced
ruthenium. The sales mix is expected to revert to normalised levels
for the rest of the year.
Full Year Guidance
Production guidance (metal in concentrate) is unchanged at
4.2-4.6 million ounces. Refined production guidance is also
unchanged at 4.6-5.0 million ounces. Both are subject to the extent
of further Covid-19-related disruption.
Q1 Q4 Q3 Q2 Q1
-----
Q1 2021 Q1 2021
vs. Q1 vs. Q4
2021 2020 2020 2020 2020 2020 2020
------------------------------ ------- ------- ------- ----- ----- ---------
M&C PGMs production
(000 oz) (1) 1,021.2 1,076.1 1,112.8 665.1 954.9 7% (5)%
------------------------------ ------- ------- ------- ----- ----- ----- -----
Own mined 694.9 716.9 747.3 430.2 654.6 6% (3)%
Mogalakwena 329.1 306.7 315.0 277.6 282.3 17% 7%
Amandelbult 156.0 185.5 204.8 50.1 167.7 (7)% (16)%
Unki 50.9 55.8 60.0 31.3 49.0 4% (9)%
Mototolo 58.6 69.8 72.2 20.4 61.2 (4)% (16)%
Joint ventures(2) 100.3 99.1 95.3 50.8 94.4 6% 1%
Purchase of concentrate 326.3 359.2 365.5 234.9 300.3 9% (9)%
Joint ventures(2) 100.3 99.0 95.3 50.8 94.4 6% 1%
Third parties 226.0 260.2 270.2 184.1 205.9 10% (13)%
------------------------------ ------- ------- ------- ----- ----- ----- -----
Refined PGMs production
(000 oz) (1)(3) 973.0 673.1 1,020.7 407.0 612.2 59% 45%
------------------------------ ------- ------- ------- ----- ----- ----- -----
By metal:
Platinum 457.8 296.4 503.8 160.6 240.3 91% 54%
Palladium 317.0 206.8 354.1 147.4 197.1 61% 53%
Rhodium 63.0 47.1 48.9 30.6 47.3 33% 34%
Other PGMs and gold 135.2 122.8 113.9 68.4 127.5 6% 10%
Nickel (tonnes) 4,800 3,700 5,000 2,000 3,100 55% 30%
------------------------------ ------- ------- ------- ----- ----- ----- -----
Tolled material (000
oz)(4) 175.9 146.5 129.4 96.0 131.6 34% 20%
------------------------------ ------- ------- ------- ----- ----- ----- -----
PGMs sales from production
(000 oz) (1)(5) 1,131.1 754.3 884.9 548.0 681.3 66% 50%
------------------------------ ------- ------- ------- ----- ----- ----- -----
Third party PGMs sales
(000 oz)(1)(6) 221.5 370.8 341.0 210.5 248.6 (11)% (40)%
------------------------------ ------- ------- ------- ----- ----- ----- -----
4E head grade (g/t milled)(7) 3.54 3.67 3.65 3.44 3.44 3% (4)%
------------------------------ ------- ------- ------- ----- ----- ----- -----
(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum,
palladium, rhodium, ruthenium and iridium plus gold).
(2) The joint 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'.
(3) Refined production excludes toll material but includes in
comparative periods material now transitioned to tolling.
(4) Ounces refer to troy ounces. Tolled volume measured as the
combined content of: platinum, palladium, rhodium and gold,
reflecting the tolling agreements in place.
(5) PGMs sales volumes from production are generally 65% own
mined and 35% purchases of concentrate though this may vary from
quarter to quarter.
(6) Relates to sales of metal not produced by Anglo American operations.
(7) 4E: the grade measured as the combined content of: platinum,
palladium, rhodium and gold, excludes tolled material. Minor metals
are excluded due to variability.
IRON ORE
Iron Ore (000 t) Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
------ ------ ------
Iron Ore (1) 16,173 16,029 1% 16,183 0%
------ ------ -------- --- ------ -------- ---
Kumba(2) 10,555 9,605 10% 9,718 9%
Minas-Rio(3) 5,619 6,424 (13)% 6,466 (13)%
----------------- ------ ------ -------- --- ------ -------- ---
(1) Total iron ore is the sum of Kumba and Minas-Rio. The
comparative has been restated as Kumba previously reported on a dry
basis.
(2) Volumes are reported as wet metric tonnes. Product is
shipped with 1.6% moisture. The comparative has been restated as
Kumba previously reported on a dry basis.
(3) Volumes are reported as wet metric tonnes. Product is shipped with 9% moisture.
Iron ore production increased by 1% to 16.2 million tonnes,
driven by a 10% increase at Kumba partly offset by a 13% decrease
at Minas-Rio.
Kumba - Total production increased by 10% to 10.6 million
tonnes, with a 6% increase at Sishen to 7.1 million tonnes and a
19% increase at Kolomela to 3.5 million tonnes.
The increase in production was largely driven by improved plant
availability following good progress on scheduled plant
maintenance.
Sales volumes decreased by 6% to 10.2 million tonnes(1)(2) due
to significant rail performance challenges, due to a series of
operational issues and delays caused by severe wet weather
conditions, resulting in higher levels of stock and impacted
throughput at the port. Consequently, finished stock increased to
5.4 million tonne s(1)(2) from 4.9 million tonnes(1)(2) at 31
December 2020.
The average lump:fines ratio in the Kumba product was 69:31 (Q1
2020: 66:34), while the Fe content averaged 64.2% (Q1 2020:
64.4%).
The average realised price of $180/tonne (FOB South Africa, wet
basis) (equivalent to $183/t tonne dry basis) was higher than the
62% Fe benchmark price of $150/tonne (FOB South Africa, adjusted
for freight and moisture) (equivalent to $153/tonne dry basis) due
to the lump and Fe content premiums, as well as timing on
provisionally priced volumes.
Minas-Rio - Production decreased by 13% to 5.6 million tonnes
due to unplanned maintenance at the beneficiation plant which has
now been completed, with volumes expected to be recovered during
the remainder of the year.
The average realised price of $170/tonne (FOB Brazil, wet basis)
was higher than the Metal Bulletin 66 price of $154/tonne (FOB
Brazil, adjusted for freight and moisture), reflecting product
quality, including higher (67%) Fe content, and timing on
provisionally priced volumes.
Full Year Guidance
Iron ore production guidance (wet basis) is unchanged at
64.5-67.5 million tonnes (Kumba 40.5-41.5 million tonnes; Minas-Rio
24-26 million tonnes), subject to the extent of further
Covid-19-related disruption, as well as rail performance for Kumba.
Kumba guidance was previously shown on a dry basis (40-41 million
tonnes).
(1) Sales volumes and stock differ to Kumba's standalone results
due to sales to other Group companies.
(2) Wet basis. The comparative has been restated as Kumba previously reported on a dry basis.
Iron Ore (tonnes) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
---------- ---------- ---------- ---------- ----------
Iron Ore production
(1) 16,173,400 16,183,200 14,677,400 14,812,500 16,029,000 1% 0%
Iron Ore sales (1) 15,716,400 16,600,200 15,861,400 14,828,700 16,950,800 (7)% (5)%
------------------------ ---------- ---------- ---------- ---------- ---------- ----- -----
Kumba production (2) 10,554,700 9,717,600 9,683,600 8,614,500 9,604,900 10% 9%
Lump(2) 7,156,100 6,589,100 6,592,200 5,803,900 6,493,100 10% 9%
Fines(2) 3,398,600 3,128,500 3,091,400 2,810,600 3,111,800 9% 9%
------------------------ ---------- ---------- ---------- ---------- ---------- ----- -----
Kumba production by
mine (2)
Sishen(2) 7,071,200 6,583,400 6,615,300 5,877,400 6,687,900 6% 7%
Kolomela(2) 3,483,500 3,134,200 3,068,300 2,737,100 2,917,000 19% 11%
------------------------ ---------- ---------- ---------- ---------- ---------- ----- -----
Kumba sales volumes
(2)(3) 10,230,200 10,285,700 11,076,800 8,217,100 10,869,600 (6)% (1)%
Export iron ore(2)(3) 10,123,100 10,285,700 11,076,800 8,217,100 10,511,900 (4)% (2)%
Domestic iron ore(2) 107,100 - - - 357,700 (70)% n/a
------------------------ ---------- ---------- ---------- ---------- ---------- ----- ---------
Minas-Rio production
Pellet feed (wet basis) 5,618,700 6,465,600 4,993,800 6,198,000 6,424,100 (13)% (13)%
------------------------ ---------- ---------- ---------- ---------- ---------- ----- -----
Minas-Rio sales volumes
Export - pellet feed
(wet basis) 5,486,200 6,314,500 4,784,600 6,611,600 6,081,200 (10)% (13)%
------------------------ ---------- ---------- ---------- ---------- ---------- ----- -----
(1) Total iron ore is the sum of Kumba and Minas-Rio and
reported in wet metric tonnes. The comparative has been restated as
Kumba previously reported on a dry basis. Kumba product is shipped
with 1.6% moisture and Minas-Rio product is shipped with 9%
moisture.
(2) The comparative has been restated as Kumba previously reported on a dry basis.
(3) Sales volumes differ to Kumba's standalone results due to sales to other Group companies.
METALLURGICAL COAL
Metallurgical Coal(1) Q1 2021 Q1 2021
(000 t) Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
----- ----- -----
Metallurgical Coal (Australia) 3,279 3,826 (14)% 4,182 (22)%
----- ----- -------- --- ----- -------- ---
(1) Anglo American's attributable share of production.
Export metallurgical coal production decreased by 14% to 3.3
million tonnes, due to the continued suspension of operations at
Grosvenor following the underground gas incident in May 2020. The
re-entry process is now underway with inspections ongoing to ensure
the safety and integrity of the mine before work will commence to
prepare for restart later in H2 2021. Open cut operations have been
scaled back at Dawson and Capcoal since mid-2020 in response to
reduced demand for lower quality metallurgical coal.
Production at Moranbah North has been suspended since 21
February 2021 in response to elevated gas levels. Re-entry is
expected in late April after re-instating ventilation following
water ingress that occurred while the workforce was withdrawn from
the operation and approval from the Inspectorate. Operations are
expected to resume in early May.
The ratio of hard coking coal production to PCI/semi-soft coking
coal was 77:23, lower than in Q1 2020 (79:21), due to a lower
proportion of product coming from the underground operations.
The average realised price for hard coking coal was $113/tonne,
which was lower than the benchmark price of $127/tonne as sales
consisted of a lower proportion of premium quality hard coking coal
from Moranbah North and Grosvenor.
Full Year Guidance
Production guidance for metallurgical coal is revised to 14-16
million tonnes (previously 18-20 million tonnes), impacted by the
suspension at Moranbah North as well as geotechnical conditions and
delayed access to Grosvenor, subject to the extent of any
Covid-19-related disruption.
Coal, by product (tonnes)(1) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
--------- --------- --------- --------- ---------
Production volumes
Metallurgical Coal 3,278,500 4,182,400 4,836,100 3,977,200 3,826,200 (14)% (22)%
Hard Coking Coal 2,511,200 3,221,200 3,969,100 3,221,500 3,012,200 (17)% (22)%
PCI / SSCC 767,300 961,200 867,000 755,700 814,000 (6)% (20)%
Export thermal Coal 372,400 562,300 587,000 468,000 403,200 (8)% (34)%
----------------------------- --------- --------- --------- --------- --------- ----- -----
Sales volumes
Metallurgical Coal 3,112,300 4,318,300 4,818,000 3,901,300 3,850,300 (19)% (28)%
Hard Coking Coal 2,462,100 3,536,900 4,130,000 3,305,000 2,867,400 (14)% (30)%
PCI / SSCC 650,200 781,400 688,000 596,300 982,900 (34)% (17)%
Export thermal Coal 492,000 725,800 500,100 651,700 407,200 21% (32)%
----------------------------- --------- --------- --------- --------- --------- ----- -----
(1) Anglo American's attributable share of production.
Metallurgical coal, Q1 2021 Q1 2021
by operation (tonnes)(1) vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
-----------------------------
2021 2020 2020 2020 2020
----------------------------- --------- --------- --------- --------- ---------
Metallurgical Coal 3,278,500 4,182,400 4,836,100 3,977,200 3,826,200 (14)% (22)%
Moranbah North 595,100 1,209,200 2,008,500 761,800 450,800 32% (51)%
Grosvenor - - 4,500 560,900 540,900 n/a n/a
Capcoal (incl. Grasstree) 1,346,600 1,680,900 1,328,800 1,221,900 1,383,300 (3)% (20)%
Dawson 600,600 461,200 588,300 638,400 741,200 (19)% 30%
Jellinbah 736,200 831,100 906,000 794,200 710,000 4% (11)%
----------------------------- --------- --------- --------- --------- --------- ----- -----
(1) Anglo American's attributable share of production.
THERMAL COAL
Coal(1) (000 t) Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
----- ----- -----
Export Thermal Coal
(South Africa)(2) 3,149 4,195 (25)% 4,085 (23)%
Export Thermal Coal
(Colombia)(3) 1,795 1,978 (9)% 347 417%
-------------------- ----- ----- -------- --- ----- -------- ---
(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%.
Thermal Coal, South Africa - Export thermal coal production
decreased by 25% to 3.1 million tonnes as operations, which
continue to operate at c.90% capacity due to Covid-19 measures to
safeguard the workforce, were impacted by the second wave of
Covid-19 in South Africa, as well as the Bokgoni pit at Khwezela
being placed on care and maintenance.
Thermal Coal, Colombia - Attributable export thermal coal
production decreased by 9% to 1.8 million tonnes owing to a
controlled Covid-19-safe ramp-up following the three month strike
which ended in December 2020.
The weighted average realised price for export thermal coal from
South Africa and Colombia was $68/tonne (South Africa: $74/tonne;
Colombia: $58/tonne). This was 16% lower than the weighted average
quoted FOB price from South Africa and Colombia, largely due to
energy content adjustments relative to the industry benchmark.
Full Year Guidance
Production guidance for export thermal coal is reduced to c.14
million tonnes (previously c.24 million tonnes) reflecting the
proposed demerger of the South Africa thermal coal operations that,
subject to shareholder approval, is expected on 4 June 2021 with
the subsequent listing of the demerged business on 7 June 2021
(Export South Africa c.6 million tonnes for the period January to
May (previously c.16 million tonnes for 2021); Colombia c.8 million
tonnes (attributable share)), subject to the extent of further
Covid-19-related disruption.
Thermal coal (tonnes)(1) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
---------- ---------- ---------- ---------- ----------
Production volumes
Thermal Coal 8,080,400 8,059,500 9,575,400 8,293,000 8,680,400 (7)% 0%
Export - South Africa(2) 3,148,500 4,085,000 4,595,400 3,587,600 4,195,100 (25)% (23)%
Export - Colombia(3) 1,794,900 347,000 1,037,700 767,400 1,977,900 (9)% 417%
Domestic - South Africa 3,137,000 3,627,500 3,942,300 3,938,000 2,507,400 25% (14)%
-------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
Sales volumes
Thermal Coal 10,701,500 10,086,000 10,854,100 10,502,900 11,389,000 (6)% 6%
Export - South Africa(2) 3,085,200 4,872,100 4,512,700 3,264,300 3,924,000 (21)% (37)%
Export - Colombia(3) 1,746,300 369,900 993,800 1,142,500 2,028,000 (14)% 372%
Domestic - South Africa 3,023,800 2,994,600 3,407,700 3,558,700 2,408,400 26% 1%
Third party sales 2,846,200 1,849,400 1,939,900 2,537,400 3,028,600 (6)% 54%
-------------------------- ---------- ---------- ---------- ---------- ---------- ----- -----
(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%.
Production by operation Q1 2021 Q1 2021
(tonnes)(1) vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
--------- --------- --------- --------- ---------
Thermal Coal - South
Africa (2) 6,285,500 7,712,500 8,537,700 7,525,600 6,702,500 (6)% (19)%
Goedehoop 1,704,000 1,907,500 1,816,600 1,192,500 1,207,400 41% (11)%
Greenside 768,200 938,000 1,199,000 1,179,100 1,177,900 (35)% (18)%
Zibulo 1,204,800 1,099,900 1,429,900 1,331,100 1,291,700 (7)% 10%
Khwezela 529,900 1,444,200 1,735,100 1,383,700 1,619,400 (67)% (63)%
Mafube 446,400 491,300 503,100 339,200 484,600 (8)% (9)%
Other(3) 1,632,200 1,831,600 1,854,000 2,100,000 921,500 77% (11)%
------------------------ --------- --------- --------- --------- --------- ----- -----
Thermal Coal - Colombia
(Cerrejón) (4) 1,794,900 347,000 1,037,700 767,400 1,977,900 (9)% 417%
------------------------ --------- --------- --------- --------- --------- ----- -----
(1) Anglo American's attributable share of production.
(2) Export and domestic production; Isibonelo and Rietvlei produce exclusively domestic volumes.
(3) Other includes Isibonelo and Rietvlei.
(4) Anglo American's attributable share of Cerrejón production is 33.3%
NICKEL
Nickel (tonnes) Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
------ ------ ------
Nickel 10,100 10,900 (7)% 11,700 (14)%
------ ------ -------- --- ------ -------- ---
Nickel production decreased by 7% to 10,100 tonnes, reflecting
expected lower ore grades.
Full Year Guidance
Production guidance is unchanged at 42,000-44,000 tonnes,
subject to the extent of further Covid-19-related disruption.
Nickel Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
------- --------- --------- --------- -------
Barro Alto
Ore mined 628,500 1,001,600 1,712,200 1,166,200 318,000 98% (37)%
Ore processed 616,700 628,000 536,600 625,900 610,100 1% (2)%
Ore grade processed
- %Ni 1.53 1.71 1.72 1.60 1.57 (3)% (11)%
Production 8,200 9,500 8,000 8,800 8,700 (6)% (14)%
------------------------ ------- --------- --------- --------- ------- ----- -----
Codemin
Ore mined - - 3,200 - - n/a n/a
Ore processed 136,600 147,600 142,100 145,800 145,800 (6)% (7)%
Ore grade processed
- %Ni 1.51 1.71 1.71 1.59 1.62 (7)% (12)%
Production 1,900 2,200 2,200 2,000 2,200 (14)% (14)%
------------------------ ------- --------- --------- --------- ------- ----- -----
Total Nickel production
(1) 10,100 11,700 10,200 10,800 10,900 (7)% (14)%
------------------------ ------- --------- --------- --------- ------- ----- -----
Sales volumes 10,200 11,700 10,900 9,800 10,600 (4)% (13)%
------------------------ ------- --------- --------- --------- ------- ----- -----
(1) Excludes nickel production from the PGMs business unit.
MANGANESE
Manganese (000 t) Q1 2021 Q1 2021
Q1 Q1 vs. Q1 2020 Q4 vs. Q4 2020
2021 2020 2020
---- ---- ----
Manganese ore(1) 905 843 7% 942 (4)%
Manganese alloys(1)(2) - 24 n/a 15 n/a
----------------------- ---- ---- -------------- ---- --------------
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore production increased by 7% to 904,500 tonnes,
largely driven by improved equipment reliability in South
Africa.
There was no manganese alloy production as the South African
smelter has been on care and maintenance since the Covid-19
lockdown, while the sale of the TEMCO smelter in Australia
completed at the start of 2021.
Manganese (tonnes) Q1 2021 Q1 2021
vs. Q1 vs. Q4
Q1 Q4 Q3 Q2 Q1 2020 2020
2021 2020 2020 2020 2020
------- ------- ------- ------- -------
Samancor production
Manganese ore(1) 904,500 942,400 938,700 796,000 842,900 7% (4)%
Manganese alloys(1)(2) - 14,600 18,300 23,200 24,400 n/a n/a
------------------------ ------- ------- ------- ------- ------- --------- ---------
Samancor sales volumes
Manganese ore 878,200 936,800 976,200 810,700 805,400 9% (6)%
Manganese alloys 670 24,500 22,700 23,400 32,800 (98)% (97)%
------------------------ ------- ------- ------- ------- ------- ----- -----
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure decreased by 3% to $59
million. Exploration expenditure decreased by 24% to $19 million
driven by ongoing lower levels of drilling activity across most
businesses due to Covid-19. Evaluation expenditure increased by 11%
to $40 million, with increased spend at Sakatti (Copper/PGMs) in
Finland, offset by lower activity in the Metallurgical Coal
business.
NOTES
-- This Production Report for the quarter ended 31 March 2021 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 18 for information on forward-looking statements.
In this document, references to "Anglo American", the "Anglo
American Group", the "Group", "we", "us", and "our" are to refer to
either Anglo American plc and its subsidiaries and/or those who
work for them generally, or where it is not necessary to refer to a
particular entity, entities or persons. The use of those generic
terms herein is for convenience only, and is in no way indicative
of how the Anglo American Group or any entity within it is
structured, managed or controlled. Anglo American subsidiaries, and
their management, are responsible for their own day-to-day
operations, including but not limited to securing and maintaining
all relevant licences and permits, operational adaptation and
implementation of Group policies, management, training and any
applicable local grievance mechanisms. Anglo American produces
group-wide policies and procedures to ensure best uniform practices
and standardisation across the Anglo American Group but is not
responsible for the day to day implementation of such policies.
Such policies and procedures constitute prescribed minimum
standards only. Group operating subsidiaries are responsible for
adapting those policies and procedures to reflect local conditions
where appropriate, and for implementation, oversight and monitoring
within their specific businesses.
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)7817 735 337 Tel: +44 (0)7584 267 361
Marcelo Esquivel Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)7818 529 638 Tel: +44 (0)7826 943 836
Katie Ryall Emma Waterworth
katie.ryall@angloamerican.com emma.waterworth@angloamerican.com
Tel: +44 (0)7513 134 971 Tel: +44 (0)7843 069 912
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)71 164 5719
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)63 684 7470
Nomonde Ndwalaza
nomonde.ndwalaza@angloamerican.com
Tel: +27 (0)66 311 1133
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 operations,
development projects and undeveloped resources, provides many of
the metals and minerals that enable a cleaner, greener, more
sustainable world and that meet the fast growing consumer-driven
demands of developed and maturing economies. With our people at the
heart of our business, we use innovative practices and the latest
technologies to mine, process, move and market our products to our
customers - and to discover new resources - safely and
sustainably.
As a responsible producer of diamonds (through De Beers),
copper, platinum group metals, the steelmaking ingredients of iron
ore and metallurgical coal, and nickel - with crop nutrients in
development and thermal coal operations planned for divestment - we
are committed to being carbon neutral across our operations by
2040. We work together with our business partners and diverse
stakeholders to unlock sustainable value from precious natural
resources for the benefit of the communities and countries in which
we operate, for society as a whole, and for our shareholders. Anglo
American is re-imagining mining to improve people's lives.
www.angloamerican.com
Forward-looking statements and third-party information:
This announcement includes forward-looking statements. All
statements other than statements of historical facts included in
this 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 Resource estimates) and
environmental, social and corporate governance goals and
aspirations, are forward-looking statements. By their nature, such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Anglo American, or industry results,
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
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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, safety, health or environmental incidents, the
effects of global pandemics and outbreaks of infectious diseases,
the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to
produce and transport products profitably, the availability of
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exchange rates on market prices and operating costs, the
availability of sufficient credit, the effects of inflation,
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the world, the actions of competitors, activities by courts,
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permitting or forcing closure of mines and ceasing of operations or
maintenance of Anglo American's assets and changes in taxation or
safety, health, environmental or other types of regulation in the
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Anglo American's most recent Annual Report. Forward-looking
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