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ANGLO AMERICAN PLC - Production report for the second quarter ended 30 June 2017

Release Date: 20/07/2017 08:00
Code(s): AGL     PDF:  
Wrap Text
Production report for the second quarter ended 30 June 2017

Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
JSE Share code: AGL
NSX Share code: ANM
ISIN number: GB00B1XZS820


20 July 2017


ANGLO AMERICAN PLC
PRODUCTION REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2017

Anglo American reports an 8% increase in copper equivalent production in the second quarter of 2017, compared to the same period of 2016. For the 
half year as a whole, copper equivalent production increased by 9%.

Mark Cutifani, Anglo American Chief Executive, said: “We have delivered another strong production quarter across most of our businesses. Through 
the improvements we have made to our portfolio and the efficiencies we are driving, we continue to unlock the potential of our world class 
assets. The production ramps at Gahcho Kué, Minas-Rio and Grosvenor are also contributing to these ongoing positive performance trends. We have 
increased the full year production guidance for Kumba Iron Ore and are on track to deliver full year guidance across the rest of our products.”


HIGHLIGHTS
-  At De Beers, the ramp-up of Gahcho Kué and stable trading conditions supported a 36% increase in rough diamond production. 
-  Copper production, while broadly unchanged, was impacted by the temporary mine stoppage at El Soldado, partially offset by higher production 
   at Los Bronces.
-  Platinum’s Mogalakwena mine production increased by 15% due to higher grades and increased throughput.
-  Iron ore volumes from Sishen increased by 38% due to operational improvements.
-  Metallurgical coal production from Australia was impacted by Cyclone Debbie, two longwall moves in Q2 and the ongoing geological issues at 
   Grosvenor; improvements are expected in H2.


PRODUCTION SUMMARY
                                                                                      % vs.                                   % vs.
                                                    Q2 2017        Q2 2016         Q2 2016      H1 2017      H1 2016       H1 2016
Diamonds (Mct)(1)                                       8.7            6.4             36%         16.1         13.3           21%
Copper (t)(2)(3)                                    140,800        144,200            (2)%      283,400      290,700          (3)%
Platinum (produced ounces) (koz)(4)                     617            586              5%        1,189        1,153            3%
Iron ore – Kumba (Mt)                                  11.4            8.9             28%         21.9         17.8           23%
Iron ore – Minas-Rio (Mt)(5)                            4.3            3.5             24%          8.7          6.8           27%
Export metallurgical coal (Mt)                          4.0            4.9           (19)%          9.2          9.0            2%
Export thermal coal (Mt)(6)                             6.5            6.8            (4)%         13.4         13.2            1%
Nickel (t)(7)                                        11,300         11,100              2%       21,200       22,300          (5)%

(1) De Beers production on 100% basis except the Gahcho Kué joint venture which is on an attributable 51% basis; 
(2) Copper production from the Copper business unit; 
(3) Copper production shown on a contained metal basis; 
(4) Reflects own mine production and purchases of metal in concentrate; 
(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 
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Diamonds(1)                                 Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Debswana                     000 carats       5,933       5,184          14%      5,191          14%     11,124      10,512           6%
Namdeb Holdings              000 carats         391         296          32%        472        (17)%        863         740          17%
DBCM                         000 carats       1,405         821          71%      1,106          27%      2,511       1,753          43%
De Beers Canada              000 carats       1,013         147          nm         631          61%      1,644         309           nm
Total carats recovered       000 carats       8,742       6,448          36%      7,400          18%     16,142      13,314          21%

De Beers – Rough diamond production increased by 36% to 8.7 million carats in line with the higher production forecast for 2017, reflecting 
stable trading conditions as well as the contribution from the ramp-up of Gahcho Kué in Canada.

Debswana (Botswana) production increased by 14% to 5.9 million carats. Orapa’s production increased by 44% driven by the ramp-up of Plant 1 
which was previously on partial care and maintenance in response to trading conditions in late 2015. This was marginally offset by Jwaneng where 
production decreased by 3%.

Namdeb Holdings (Namibia) production increased by 32% to 0.4 million carats as a result of Debmarine Namibia’s Mafuta vessel being on planned 
extended in-port maintenance in Q2 2016.

DBCM (South Africa) production increased by 71% to 1.4 million carats largely as a result of higher grades at Venetia.

Production in Canada increased almost six-fold to 1.0 million carats due to the ramp-up of Gahcho Kué to nameplate capacity.

Consolidated rough diamond sales volumes(2) in Q2 2017 were 5.4 million carats (5.9 million carats on a total 100% basis) from two Sights, 
compared with 9.6 million carats (10.2 million carats on a total 100% basis) from three Sights in Q2 2016. Apart from the additional Sight in 
Q2 2016, the decrease was expected given the strong levels of midstream restocking in H1 2016.

For H1 2017, consolidated sales volumes(2) were 19.1 million carats (20.0 million carats on a total 100% basis), compared with 17.2 million 
carats (18.3 million carats on a total 100% basis) in H1 2016. 

The average realised price of $156/ct in H1 2017 was 12% lower than in H1 2016. This reflected strong demand in Sight 1 2017 for lower value 
goods held in stock at 31 December 2016, following a recovery from the initial impact of India’s demonetisation programme in late 2016.  The 
lower value mix was partially offset by a higher average rough price index, up 4%.

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.

                                                                                    Q2 2017    Q2 2017                            H1 2017
                                                                                         vs.        vs.                                vs.
De Beers                     Q2 2017    Q1 2017    Q4 2016    Q3 2016    Q2 2016    Q1 2017    Q2 2016    H1 2017     H1 2016     H1 2016
Carats recovered 
(000 carats)
100% basis 
(unless otherwise stated) 
Orapa                          2,918     2,106       2,366      1,536      2,028        39%        44%      5,024       4,029        25%
Letlhakane                       102       130         135        176        159      (22)%      (36)%        232         284      (18)%
Jwaneng                        2,913     2,955       2,939      2,837      2,997       (1)%       (3)%      5,868       6,199       (5)%
Debswana                       5,933     5,191       5,440      4,549      5,184        14%        14%     11,124      10,512         6%

Namdeb                            72        94         118        120         94      (23)%      (23)%        166         166         - 
Debmarine Namibia                319       378         310        285        202      (16)%        58%        697         574        21%
Namdeb Holdings                  391       472         428        405        296      (17)%        32%        863         740        17%

Kimberley(1)                       -         -           -          -          -         -          -           -          68     (100)%
Venetia                        1,239       939       1,218        898        695        32%        78%      2,178       1,401        55%
Voorspoed                        166       167         169        196        126       (1)%        32%        333         284        17%
DBCM                           1,405     1,106       1,387      1,094        821        27%        71%      2,511       1,753        43%

Snap Lake(1)                       -         -           -          -          -         -          -           -           3     (100)%
Victor                           182       189         148        142        147       (4)%        24%        371         306        21%
Gahcho Kué (51% basis)           831       442         349         83          -        88%         -       1,273           -         - 
De Beers Canada                1,013       631         497        225        147        61%       589%      1,644         309       432%
Total carats recovered         8,742     7,400       7,752      6,273      6,448        18%        36%     16,142      13,314        21%
Sales volumes   
Total sales volume 
(100%) (Mct)(2)                  5.9      14.1         8.0        5.7       10.2      (58)%      (42)%       20.0        18.3        9%
Consolidated sales volume 
(Mct)(2)(3)                      5.4      13.7         7.5        5.3        9.6      (61)%      (44)%       19.1        17.2       11%
Number of Sights 
(sales cycles)                     2         3           3          2          3                                5           5      

(1) Snap Lake was placed on care and maintenance from December 2015. Kimberley mines was sold in 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. Excluding Gahcho Kué’s capitalised 
    pre-commercial production sales volumes results in a consolidated sales volume of 18.4Mct for H1 2017. 


COPPER
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Copper(1)                                   Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Los Bronces                      t           79,000      75,600          4%      75,800          4%     154,800     160,800         (4)%
Collahuasi (44% share)           t           51,000      56,200        (9)%      57,700       (12)%     108,700     107,300           1%
El Soldado                       t           10,800      12,400       (13)%       9,100         19%      19,900      22,600        (12)%
Total Copper                     t          140,800     144,200        (2)%     142,600        (1)%     283,400     290,700         (3)%

(1) Copper production shown on a contained metal basis.

Copper production decreased by 2% to 140,800 tonnes.

Production from Los Bronces increased by 4% to 79,000 tonnes. Production benefited from higher ore grades (0.70% vs. 0.62%) and strong plant 
performance, partly offset by an expected increase in ore hardness.

At Collahuasi, attributable production decreased by 9% to 51,000 tonnes. Higher ore grades were offset by lower throughput driven by the planned 
electrical overhaul of Line 1 of the processing plant, lasting 65 days and successfully completed in June. 

El Soldado production decreased by 13% to 10,800 tonnes, reflecting the temporary suspension of mine operations from 18 February, which restarted 
on 28 April following approval of the updated mine plan. Production during the mine stoppage was sustained by feeding low-grade stockpile 
material to the plant, however the delay in receiving the mine plan permit resulted in ~6,000 tonnes of lost production in H1 2017 (of which 
~3,000 tonnes were in Q2 2017).

Sales volumes in H1 2017 were impacted by temporary port closures in Chile due to poor weather conditions and heavy tidal swells limiting vessel 
availability, as well as by higher arsenic content in copper concentrate from Collahuasi which restricted sales into China. At the end of 
H1 2017, Anglo American had 105,000 tonnes of copper provisionally priced at 269c/lb.

Full Year Guidance
Full year production guidance remains unchanged at 570,000 – 600,000 tonnes.

                                                                                                      Q2 2017      Q2 2017                                  H1 2017
                                                                                                           vs.          vs.                                     vs.
Copper (tonnes)                      Q2 2017      Q1 2017      Q4 2016      Q3 2016      Q2 2016      Q1 2017      Q2 2016      H1 2017       H1 2016       H1 2016
on a contained 
metal basis 
unless stated otherwise(1)
Collahuasi 100% basis 
(Anglo American share 44%)                                                  
  Ore mined                       14,984,100   13,803,300   20,335,200   17,131,800   15,277,400           9%         (2)%   28,787,400     30,135,600         (4)%
  Ore processed - Sulphide        10,807,100   12,336,400   12,302,700   12,522,100   12,479,200        (12)%        (13)%   23,143,500     24,582,000         (6)%
  Ore grade processed - 
  Sulphide (% TCu)(2)                   1.27         1.24         1.29         1.23         1.21           3%           5%         1.25           1.18           6%
  Production - Copper cathode              -          100          700          800        1,400       (100)%       (100)%          100          3,300        (97)%
  Production - Copper in 
  concentrate                        115,900      131,000      132,400      128,900      126,300        (12)%         (8)%      246,900        240,500           3%
  Total copper production 
  for Collahuasi                     115,900      131,100      133,100      129,700      127,700        (12)%         (9)%      247,000        243,800           1%
  Anglo American’s share of 
  copper production for 
  Collahuasi(3)                       51,000       57,700       58,600       57,000       56,200        (12)%         (9)%      108,700        107,300           1%
Anglo American Sur                    89,800       84,900       88,000       82,800       88,000           6%           2%      174,700        183,400         (5)%
Los Bronces mine(4)                   79,000       75,800       74,300       72,100       75,600           4%           4%      154,800        160,800         (4)%
  Ore mined                       11,630,200   13,448,400   13,196,500   13,947,400   13,477,900        (14)%        (14)%   25,078,600     23,965,800           5%
  Marginal ore mined               7,764,700   11,461,400    8,445,700    6,192,800    6,148,500        (32)%          26%   19,226,100     19,550,800         (2)%
  Ore processed – Sulphide        11,876,300   11,877,400   11,562,500   11,511,700   12,567,500         (0)%         (5)%   23,753,700     24,622,800         (4)%
  Ore grade processed - 
  Sulphide (% TCu)                      0.70         0.69         0.69         0.65         0.62           2%          13%         0.69           0.68           2%
  Production - Copper cathode          9,800        8,900        8,600        8,800        8,900          10%          10%       18,700         18,600           1%
  Production - Copper in 
  concentrate                         69,200       66,900       65,700       63,300       66,700           3%           4%      136,100        142,200         (4)%
El Soldado mine(4)                    10,800        9,100       13,700       10,700       12,400          19%        (13)%       19,900         22,600        (12)%
  Ore mined                        1,272,200      905,500    2,069,800    1,678,300    2,143,000          40%        (41)%    2,177,700      3,591,000        (39)%
  Ore processed - Sulphide         1,899,200    1,797,600    1,833,900    1,553,200    1,741,200           6%           9%    3,696,800      3,577,300           3%
  Ore grade processed - 
  Sulphide (% TCu)                      0.72         0.65         0.90         0.86         0.89          11%        (19)%         0.69           0.82        (16)%
  Production - Copper in 
  concentrate                         10,800        9,100       13,700       10,700       12,400          19%        (13)%       19,900         22,600        (12)%
  Chagres Smelter(4)                                                        
  Ore smelted                         31,500       31,300       25,900       35,500       36,500           1%        (14)%       62,800         72,400        (13)%
  Production                          30,600       30,300       25,400       34,700       35,500           1%        (14)%       60,900         70,700        (14)%
Total Copper segment 
copper production                    205,700      216,000      221,100      212,500      215,700         (5)%         (5)%      421,700        427,200         (1)%
Total Attributable 
copper production(5)                 140,800      142,600      146,600      139,800      144,200         (1)%         (2)%      283,400        290,700         (3)%
Total Attributable   
payable copper production            135,800      137,500      141,300      135,000      139,200         (1)%         (2)%      273,300        280,800         (3)%
Total Attributable  
sales volumes                        144,100      115,300      161,400      135,400      143,500          25%          -        259,400        281,000         (8)%
Total Attributable 
payable sales volumes                138,900      111,200      155,700      130,700      138,500          25%          -        250,100        271,500         (8)%
Third party sales(6)                  27,400        9,800       20,100       26,000        6,700         180%         309%       37,200         15,900         134%
  
(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.


PLATINUM
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Platinum                                    Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Produced ounces                000 oz           617         586          5%         572          8%       1,189       1,153           3%
  Own mined production         000 oz           348         444       (22)%         325          7%         673         883        (24)%
     Managed                   000 oz           284         377       (25)%         266          7%         549         755        (27)%
     Joint ventures(1)         000 oz            64          67        (4)%          59          9%         123         128         (3)%
  Purchase of concentrate      000 oz           269         142         89%         247          9%         516         270          91%
     Joint ventures(1)         000 oz            64          67        (4)%          59          9%         123         128         (3)%
     Associates(2)             000 oz            72          70          4%          65         12%         137         133           3%
     Third party               000 oz           132           6         nm          124          7%         256           9          nm 
Refined                                             
  Platinum                     000 oz           529         748       (29)%         577        (8)%       1,106       1,008          10%
  Palladium                    000 oz           373         472       (21)%         353          6%         726         654          11%
  Rhodium                      000 oz            83          91        (9)%          74         12%         156         138          13%
  Gold                         000 oz            29          22         31%          25         19%          54          50           8%
  Nickel                            t         6,000       6,400        (6)%       5,100         17%      11,200      12,100         (8)%
  Copper                            t         3,500       3,700        (6)%       3,200          7%       6,700       7,000         (4)%

(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of each of these operations, which is presented under 
    ‘Own mined’ production, and purchases the remaining 50% of production, which is presented under ‘Purchase of concentrate’.
(2) Associates are Platinum’s 49% interest in Bokoni and 33% interest in BPRM. 

Platinum – Platinum production (metal in concentrate) increased by 5% to 617,100 ounces.

Own mined production from managed mines
Own mined production from managed mines decreased by 25% to 283,700 ounces primarily due to the sale of Rustenburg in November 2016, which has 
subsequently been reported as purchase of concentrate from third parties. Excluding Rustenburg, own mined production increased by 7%.

Mogalakwena mine production increased by 15% to 113,900 ounces due to a 7% increase in grade in line with the mine plan, and a 9% increase in 
concentrator throughput due to North Concentrator Plant optimisations which increased the run-time. 

Amandelbult mine production increased by 4% to 110,500 ounces due to improved plant recoveries and increased throughput.

Production from Unki mine in Zimbabwe increased by 10% to 19,500 ounces, as efforts continued to improve mining height control, which has reduced 
mining waste and increased grade resulting in higher production.

Union mine production decreased by 3% to 39,800 ounces due to lower grade. The sale of Union to Siyanda Resources was announced on 
15 February 2017 and is expected to complete in H2 2017, after which production from Union will be treated as purchase of concentrate from third 
parties.

Joint venture own mined production and purchase of concentrate 
Total joint venture production of 128,600 ounces (of which 64,300 ounces is own mined and 64,300 ounces is purchase of concentrate) decreased by 
4%. Mototolo decreased by 7% to 29,500 ounces as a result of lower grade. Kroondal decreased by 5% to 67,100 ounces primarily due to lower grade 
and a plant shutdown which impacted production for seven days. This was partly offset by Modikwa which increased by 2% to 32,000 ounces due to 
productivity improvements.

Purchase of concentrate from associates
Purchase of concentrate from associates increased by 4% to 72,500 ounces. Production from BRPM increased by 10% to 52,900 ounces from project 
ramp-ups, but was partly offset by Bokoni which decreased by 10% to 19,500 ounces as a result of the closure of the opencast operations. 

Purchase of concentrate from third parties
Purchase of concentrate from third parties increased by 126,400 ounces to 132,300 ounces mainly due to the inclusion of Rustenburg, which has 
been reported as third party purchase of concentrate since November 2016.

Refined production
Refined platinum production decreased by 29% to 528,700 ounces primarily due to the Waterval smelter run-out and a high pressure water leak at 
the Converter Plant. 

Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in Q4 2016 and is running at steady-state. 
The Number 2 furnace underwent planned maintenance and has successfully ramped up to steady-state. The backlog in processing pipeline material of 
65,000 platinum ounces following the run-out in 2016 is expected to be made up during H2 2017.

In addition, a high pressure water leak at the Converter Plant ("ACP") on 4 June 2017 impacted a converter plant. The second converter plant was 
heated up and began steady-state production on 14 June 2017. The total impact on refined platinum production of c.90,000 ounces was deferred from 
Q2 2017 into H2 2017.

Full Year Guidance
Production guidance (metal in concentrate) remains unchanged at 2.35 – 2.40 million ounces.

                                                                                                     Q2 2017     Q2 2017                  H1 2017
                                                                                                          vs.         vs.                     vs.
Platinum                        Q2 2017     Q1 2017    Q4 2016     Q3 2016    Q2 2016     Q1 2017    Q2 2016     H1 2017      H1 2016     H1 2016
Produced platinum 
(000 troy oz)                     617.1       571.9      610.0       619.1      585.7          8%         5%     1,189.1      1,152.7          3%
  Owned mined                     348.0       324.6      386.8       468.3      443.5          7%      (22)%       672.7        882.6       (24)%
  Mogalakwena                     113.9       111.9      103.4       100.7       98.8          2%        15%       225.8        207.8          9%
  Amandelbult                     110.5        97.1      121.1       128.3      106.2         14%         4%       207.7        217.1        (4)%
  Unki                             19.5        18.9       19.9        18.2       17.8          3%        10%        38.4         36.4          5%
  Joint ventures(1)                64.3        59.0       60.1        64.9       66.8          9%       (4)%       123.3        127.7        (3)%
  Union                            39.8        37.7       38.1        37.7       41.2          6%       (3)%        77.5         75.5          3%
  Rustenburg(2)                       -           -       44.2       118.1      110.8          nm         nm           -        215.1          nm
  Other(3)                            -           -          -         0.4        1.9          nm         nm           -          3.0          nm
Purchase of concentrate           269.1       247.3      223.2       150.8      142.3          9%        89%       516.4        270.1         91%
  Joint ventures(1)                64.3        59.0       60.1        65.0       66.8          9%       (4)%       123.3        127.7        (3)%
  Associates(4)                    72.5        64.7       69.2        77.2       69.6         12%         4%       137.2        132.9          3%
  Third party purchase of 
  concentrate(2)                  132.3       123.6       93.9         8.6        5.8          7%         nm       255.9          9.5          nm
Refined production  
  Platinum (000 troy oz)          528.7       576.9      631.6       694.6      747.6        (8)%      (29)%     1,105.6      1,008.4         10%
  Palladium (000 troy oz)         373.1       353.4      397.4       412.9      472.3          6%      (21)%       726.5        653.9         11%
  Rhodium (000 troy oz)            82.8        73.7       92.2        86.8       90.7         12%       (9)%       156.4        138.4         13%
  Gold (000 troy oz)               29.3        24.7       33.9        24.1       22.3         19%        31%        54.0         50.2          8%
  Nickel (000 tonnes)               6.0         5.1        6.2         7.1        6.4         17%       (6)%        11.2         12.1        (8)%
  Copper (000 tonnes)               3.5         3.2        3.3         3.8        3.7          7%       (6)%         6.7          7.0        (4)%
  4E Head grade 
  (g/tonne milled)(5)              3.41        3.47       3.41        3.19       3.00        (2)%        14%        3.44         3.05         13%
Platinum sales volumes - 
own mined and purchase of 
concentrate                       600.5       518.8      606.5       588.0      808.4         16%      (26)%     1,119.3     1,221.2         (8)%

(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under ‘Own mined’ 
    production, and purchases the remaining 50% of production, which is presented under ‘Purchase of concentrate’. 
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016, after which production from Rustenburg is included within third party purchase of 
    concentrate. 
(3) Other includes Twickenham.
(4) Associates are Platinum’s 49% interest in Bokoni and 33% interest in BRPM.
(5) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.


IRON ORE AND MANGANESE
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Iron Ore and Manganese                      Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Iron ore – Kumba              000 t          11,382       8,864         28%      10,473          9%      21,854      17,788          23%
Iron ore – Minas-Rio(1)       000 t           4,324       3,484         24%       4,342          0%       8,666       6,833          27%
Iron ore – Total              000 t          15,706      12,348         27%      14,815          6%      30,520      24,621          24%
Manganese ore(2)              000 t             843         791          7%         823          2%       1,666       1,567           6%
Manganese alloys(3)           000 t              39          30         32%          31         25%          71          62          15%

(1) Wet basis
(2) Saleable production 
(3) Production includes medium carbon ferro-manganese

Kumba Iron Ore – Iron ore production increased by 28% to 11.4 million tonnes.

Sishen production increased by 38% to 7.9 million tonnes as a result of improved mining productivity, driven by fleet efficiencies and higher 
plant yields. Waste removal increased to 43 million tonnes compared to 31 million tonnes in Q2 2016 (H1 2017: 77 million tonnes). 

Kolomela production increased by 11% to 3.5 million tonnes, underpinned by productivity improvements. Waste removal increased by 22% to 
15 million tonnes (H1 2017: 25 million tonnes). 

Export sales increased by 8% to 9.4 million tonnes. Total finished product stocks were 4.4 million tonnes (3.5 million tonnes at 31 December 
2016) as a result of higher production at Sishen and sales volumes delayed to H2 2017 due to unfavourable weather conditions at Saldanha port.

Full Year Guidance 
Full year production guidance has been increased to 41 – 43 million tonnes (previously 40 – 42 million tonnes) as a result of the improved 
performance at Sishen.

Iron Ore Brazil – Iron ore production from Minas-Rio increased by 24% to 4.3 million tonnes as the operation continued to ramp-up to its current 
operating capacity. 

The focus remains obtaining the Step 3 licences required for the operation to access the full range of run-of-mine grades and target the 
operation’s nameplate capacity of 26.5 Mt (wet basis). 

Full Year Guidance 
Full year production guidance remains unchanged at 16-18 million tonnes (wet basis).

Manganese ore – Manganese ore production increased by 7% to 843,300 tonnes. Production from the Australian operations increased by 5% and by 9% 
from the South African operations.

Manganese alloy – Manganese alloy production increased by 32% to 39,300 tonnes. The South African Manganese operations continue to operate only 
one of four furnaces.

                                                                                                      Q2 2017      Q2 2017                                 H1 2017
                                                                                                           vs.          vs.                                     vs.
Iron Ore and Manganese (tonnes)      Q2 2017      Q1 2017      Q4 2016      Q3 2016      Q2 2016      Q1 2017      Q2 2016      H1 2017       H1 2016      H1 2016
Kumba Iron Ore                    11,381,600   10,472,600   11,927,900   11,759,900    8,863,600           9%          28%   21,584,200    17,788,100          23%
  By product:                                                  
  Lump                             7,504,200    6,978,800    7,812,000    7,598,500    5,721,300           8%          31%   14,483,000    11,391,000          27%
  Fines                            3,877,400    3,493,800    4,115,900    4,161,400    3,142,300          11%          23%    7,371,200     6,397,100          15%
By mine:                                                  
  Sishen                           7,871,900    7,678,900    8,489,900    8,348,700    5,699,600           3%          38%   15,550,800    11,541,400          35%
  Kolomela                         3,509,700    2,793,700    3,438,000    3,411,200    3,164,000          26%          11%    6,303,400     5,877,100           7%
  Thabazimbi                               -            -            -            -            -            -            -            -       369,600       (100)%
Kumba sales volumes                                                  
  Export iron ore                  9,423,600   10,053,000   10,611,400   10,343,200    8,729,700         (6)%           8%   19,476,600    18,105,800           8%
  Domestic iron ore                  924,600      832,700      612,700      706,900      936,000          11%         (1)%    1,757,300     2,103,700        (16)%
Minas-Rio production                                                  
  Pellet feed (wet basis)          4,324,100    4,341,700    4,855,300    4,452,400    3,483,800           0%          24%    8,665,900     6,833,200          27%
Minas-Rio sales volumes                                                  
  Export – pellet feed 
(wet basis)                        4,371,000    4,256,500    4,761,800    4,510,400    3,223,900           3%          36%    8,627,500     6,938,300          24%
Samancor                                                   
  Manganese ore(1)                   843,300      823,100      804,200      761,700      791,300           2%           7%    1,666,400     1,567,200           6%
  Manganese alloys(1)(2)              39,300       31,500       37,100       38,900       29,700          25%          32%       70,800        61,800          15%
Samancor sales volumes                                                  
  Manganese ore(3)                   887,600      836,000      805,000      757,400      813,300           6%           9%    1,723,600     1,664,000           4%
  Manganese alloys                    37,200       34,400       31,600       49,200       46,400           8%        (20)%       71,600        89,200        (20)%


COAL
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Coal                                        Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Met Coal (Australia) – 
excl. 2016 divestments(1)                                             
Metallurgical – Export           000 t        3,964       4,921       (19)%       5,242       (24)%       9,206       9,019           2%
Thermal – Export                 000 t          305       1,015       (70)%         479       (36)%         784       1,820        (57)%
South Africa                                             
Thermal export – Primary(2)      000 t        4,064       4,426        (8)%       4,059         -         8,123       8,268         (2)%
Thermal export and domestic – 
Secondary(3)                     000 t        1,023         973          5%         978          5%       2,001       1,752          14%
Thermal domestic – Eskom         000 t        6,889       6,709          3%       6,374          8%      13,263      13,101           1%
Thermal domestic – Isibonelo(4)  000 t        1,052       1,082        (3)%         896         17%       1,948       2,242        (13)%
Cerrejón                                             
Thermal – Export                 000 t        2,450       2,330          5%       2,782       (12)%       5,231       4,940           6%
Thermal Export South Africa 
and Cerrejón                                  6,514       6,756        (4)%       6,841        (5)%      13,354      13,208           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.

Metallurgical Coal (Australia) – Export metallurgical coal production decreased by 19% to 4.0 million tonnes. Longwall moves took place at both 
Moranbah and Grasstree during the quarter. The impact of Cyclone Debbie on the Queensland rail network resulted in operational delays with a net 
impact on saleable production of ~0.6 million tonnes in the quarter. Run-of-mine production was not materially impacted and the stock build 
continues to be unwound in H2 2017. 

Grosvenor production continues to be affected by geological issues, which are typically more challenging for the first longwall panel. In 
addition, a major belt tear occurred in the main conveyor drift. The focus remains on managing geological issues to deliver improved operational 
performance and stability.

Export thermal coal production decreased by 70% to 0.3 million tonnes following the cessation of mining activities at Drayton.  Furthermore, in 
reaction to the rail outage in Q2 2017, thermal coal volumes were substituted for higher margin metallurgical coal production at Capcoal 
(Grasstree).

South Africa – Primary export thermal coal production decreased by 8% to 4.1 million tonnes, due to operational challenges at Khwezela associated 
with the integration of the Kleinkopje and Landau mines. In addition, there was an expected and temporary reduction at Mafube as the mine 
transitions to a new pit. 
Eskom related production increased by 3% to 6.9 million tonnes, with higher production at New Denmark due to a longwall move in Q2 2016. The sale 
of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was announced on 10 April 2017, and is expected to 
complete by the end of 2017. 

Cerrejón – Cerrejón’s attributable production increased by 5% to 2.4 million tonnes, reflecting productivity gains.

Full Year Guidance
Full year production guidance for export metallurgical coal remains unchanged at 19 – 21 million tonnes, but is expected to be at the lower end 
of this range due to the geological issues at Grosvenor.

Full year production guidance for export thermal coal from South Africa and Cerrejón remains unchanged at 29 – 31 million tonnes, but is expected 
to be at the lower end of this range primarily due to the operational challenges at Khwezela.

                                                                                                      Q2 2017      Q2 2017                                 H1 2017
                                                                                                           vs.          vs.                                     vs.
Coal (tonnes)                        Q2 2017      Q1 2017      Q4 2016      Q3 2016      Q2 2016      Q1 2017      Q2 2016      H1 2017       H1 2016      H1 2016
Met Coal (Australia)(1)            4,268,200    5,721,400    5,955,100    5,923,500    5,935,700        (25)%        (28)%    9,989,600    10,837,900         (8)%
  Metallurgical export – 
  Coking                           3,237,000    4,747,300    4,496,900    4,326,600    3,997,500        (32)%        (19)%    7,984,300     7,376,400           8%
  Metallurgical export – PCI         726,500      495,100      862,900      741,300      923,300          47%        (21)%    1,221,600     1,642,100        (26)%
  Thermal export                     304,700      479,000      595,300      855,600    1,014,900        (36)%        (70)%      783,700     1,819,400        (57)%
South Africa                      13,028,200   12,307,300   13,708,600   14,690,700   13,188,800           6%         (1)%   25,335,500    25,360,600           - 
  Thermal export – Primary(2)      4,064,100    4,058,500    4,229,400    4,480,800    4,425,600           0%         (8)%    8,122,600     8,267,200         (2)%
  Thermal export and 
  domestic – Secondary(3)          1,022,600      978,200      926,900    1,009,900      972,700           5%           5%    2,000,800     1,751,300          14%
  Thermal domestic – Eskom         6,889,100    6,374,300    7,514,700    8,083,900    6,708,700           8%           3%   13,263,400    13,100,700           1%
  Thermal domestic –   
  Isibonelo(4)                     1,052,400      896,300    1,037,600    1,116,100    1,081,800          17%         (3)%    1,948,700     2,241,400        (13)%
Colombia                                                             
  Thermal – Export                 2,449,600    2,781,700    2,800,600    2,927,800    2,329,500        (12)%           5%    5,231,300     4,939,500           6%
Total coal production             19,746,000   20,810,400   22,464,300   23,542,000   21,454,000         (5)%         (8)%   40,556,400    41,138,000         (1)%
Sales volumes                                                            
Met Coal (Australia)                                                            
  Metallurgical – Export(5)        4,155,000    4,947,400    4,926,900    5,223,100    4,836,700        (16)%        (14)%    9,102,400     9,065,600           - 
  Thermal – Export                   422,800      473,200      699,000      862,000    1,118,800        (11)%        (62)%      896,000     1,816,700        (51)%
South Africa                                                     
  Thermal – Export                 4,153,900    4,693,300    5,825,200    4,159,300    4,744,000        (11)%        (12)%    8,847,200     9,087,200         (3)%
  Thermal – Other domestic           513,700      394,300      485,100      389,700      341,600          30%          50%      908,000       710,100          28%
  Thermal domestic – Eskom         6,841,100    6,359,200    7,288,500    7,871,900    6,577,500           8%           4%   13,200,300    12,823,900           3%
  Thermal domestic - Isibonelo     1,030,600      964,600    1,168,900    1,260,800    1,268,100           7%        (19)%    1,995,200     2,481,700        (20)%
  Third party sales                1,835,400    1,567,800      694,600    2,181,800    1,608,600          17%          14%    3,403,200     3,175,400           7%
Cerrejón                                                      
  Thermal – Export                 2,770,500    2,646,300    2,722,300    2,905,100    2,843,800           5%         (3)%    5,416,800     5,182,800           5%

(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.

                                                                                                      Q2 2017      Q2 2017                                 H1 2017
                                                                                                           vs.          vs.                                     vs.
Coal by mine (tonnes)                Q2 2017      Q1 2017      Q4 2016      Q3 2016      Q2 2016      Q1 2017      Q2 2016      H1 2017       H1 2016      H1 2016
Met Coal (Australia)                                                    
  Capcoal (incl. Grasstree)        1,508,900    1,785,400    1,230,200    1,637,300    2,205,400        (15)%        (32)%    3,294,300     3,965,400        (17)%
  Dawson                           1,046,800    1,092,100    1,273,000    1,185,900    1,143,800         (4)%         (8)%    2,138,900     2,149,800         (1)%
  Drayton                                  -            -       82,300      317,100      418,200          n/a         n/a             -       768,100         n/a 
  Grosvenor                          183,600      709,800      539,100      685,700      331,200        (74)%        (45)%      893,400       534,200          67%
  Jellinbah                          840,300      718,000      882,100      820,200      821,600          17%           2%    1,558,300     1,580,000         (1)%
  Moranbah North                     688,600    1,416,100    1,948,400    1,277,300    1,015,500        (51)%        (32)%    2,104,700     1,840,400          14%
                                   4,268,200    5,721,400    5,955,100    5,923,500    5,935,700        (25)%        (28)%    9,989,600    10,837,900         (8%)
South Africa                                                    
  Goedehoop                        1,230,800    1,222,100    1,134,200    1,286,500    1,266,600           1%         (3)%    2,452,900     2,267,900           8%
  Greenside                          877,700    1,004,800    1,036,900    1,111,400      990,700        (13)%        (11)%    1,882,500     1,797,000           5%
  Zibulo                           1,672,900    1,439,400    1,407,200    1,571,800    1,638,600          16%           2%    3,112,300     3,028,600           3%
  Khwezela(1)                      1,475,000    1,596,100    2,230,000    2,137,100    1,849,000         (8)%        (20)%    3,071,100     3,818,600        (20)%
  Mafube                             407,600      441,400      435,400      506,000      438,500         (8)%         (7)%      849,000       817,600           4%
  New Vaal                         4,121,900    3,414,300    3,994,800    4,350,500    4,027,700          21%           2%    7,536,200     7,549,500           0%
  New Denmark                        769,600      954,400      773,200      777,300      392,600        (19)%          96%    1,724,000       996,900          73%
  Kriel                            1,420,300    1,338,500    1,659,400    1,834,000    1,503,300           6%         (6)%    2,758,800     2,843,100         (3)%
  Isibonelo                        1,052,400      896,300    1,037,500    1,116,100    1,081,800          17%         (3)%    1,948,700     2,241,400        (13)%
                                  13,028,200   12,307,300   13,708,600   14,690,700   13,188,800           6%         (1)%   25,335,500    25,360,600           - 
Cerrejón                                                    
  Carbones del Cerrejón            2,449,600    2,781,700    2,800,600    2,927,800    2,329,500        (12)%           5%    5,231,300     4,939,500           6%
Total Coal production             19,746,000   20,810,400   22,464,300   23,542,000   21,454,000         (5)%         (8)%   40,556,400    41,138,000         (1)%

(1) The merger of Kleinkopje and Landau.


NICKEL
                                                                    Q2 2017                 Q2 2017                              H1 2017
                                                                         vs.                     vs.                                  vs.
Nickel                                      Q2 2017     Q2 2016     Q2 2016     Q1 2017     Q1 2017     H1 2017     H1 2016      H1 2016
Nickel                       t               11,300      11,100          2%       9,900         14%      21,200      22,300         (5)%

Nickel production increased by 2% as result of a stable performance in both smelting operations at Barro Alto, running slightly above nominal 
capacity during the second quarter. Production from Codemin decreased by 4% to 2,200 tonnes due to maintenance in May 2017. 

Full Year Guidance 
Full year production guidance remains unchanged at 43,000 – 45,000 tonnes.

                                                                                                      Q2 2017      Q2 2017                                 H1 2017
                                                                                                           vs.          vs.                                     vs.
Nickel (tonnes)                      Q2 2017      Q1 2017      Q4 2016      Q3 2016      Q2 2016      Q1 2017      Q2 2016      H1 2017       H1 2016      H1 2016
unless stated otherwise(1) 
Barro Alto
  Ore mined                        2,375,700    1,023,500      364,300      974,100      835,300         132%         184%    3,399,200     1,292,300         163%
  Ore processed                      615,700      523,900      579,800      610,000      569,200          18%           8%    1,139,600     1,167,300         (2)%
  Ore grade processed - %Ni             1.71         1.70         1.77         1.76         1.76           1%         (3)%         1.71          1.76         (3)%
  Production                           9,100        7,800        8,800        9,000        8,800          17%           3%       16,900        17,700         (5)%
Codemin                                                   
  Ore mined                            7,500            -            -            -        6,800           -           10%        7,500         6,800          10%
  Ore processed                      144,000      143,600      142,900      144,000      151,300           -          (5)%      287,600       302,700         (5)%
  Ore grade processed - %Ni             1.69         1.65         1.73         1.72         1.72           2%         (2)%         1.67          1.70         (2)%
  Production                           2,200        2,100        2,100        2,300        2,300           5%         (4)%        4,300         4,600         (7)%
Total Nickel segment 
nickel production                     11,300        9,900       10,900       11,300       11,100          14%           2%       21,200        22,300         (5)%
Sales volumes                         10,400       10,400       11,400       11,600       11,100           -          (6)%       20,800        21,900         (5)%

(1) Excludes Anglo American Platinum’s nickel production.


EXPLORATION AND EVALUATION

Exploration and Evaluation expenditure for the quarter totalled $52 million, an increase of 17%. Exploration expenditure for the quarter totalled 
$23 million, an increase of 2%. Evaluation expenditure for the quarter totalled $29 million, an increase of 31%.

NOTE

This Production Report for the second quarter ended 30 June 2017 is unaudited. 

AVERAGE REALISED PRICES SUMMARY
                                                                                            H1 2017       H1 2017
                                                                                                 vs.           vs.
Average realised prices                     H1 2017     H2 2016     H1 2016     FY 2016     H2 2016       H1 2016
De Beers                              
  Total sales volume (100%) (Mct)              20.0        13.7        18.3        32.0         46%            9%
  Consolidated sales volume (Mct)(1)           19.1        12.8        17.2        30.0         49%           11%
  Consolidated average realised 
  price ($/ct)(2)                               156         201         177         187       (22)%         (12)%
  Average price index(3)                        121         119         117         118          2%            4%
Copper (USc/lb)                                 264         235         215         225         12%           23%
PGMs                               
  Platinum (US$/oz)                             957       1,015         971         993        (6)%          (1)%
  Palladium (US$/oz)                            780         670         551         610         16%           42%
  Rhodium (US$/oz)                              911         682         679         680         34%           34%
  Basket price (US$/oz)                       1,843       1,877       1,632       1,753        (2)%           13%
  Basket price (ZAR/oz)                      24,400      26,209      25,100      25,649        (7)%          (3)%
Iron Ore – FOB prices  
  Kumba Export (US$/dmt)(4)                      71          67          55          64          6%           29%
  Minas-Rio (US$/wmt)(5)                         66          61          44          54          8%           50%
Coal                              
  Metallurgical Coal                              
  Metallurgical – Export (U$/t)(6)              195         153          79         119         27%          147%
  Metallurgical – PCI (US/t) (6)                124         102          70          77         22%           82%
  Thermal – Export (U$/t)                        87          65          47          55         34%           85%
South Africa                              
  Thermal - Export (U$/t)(8)                     72          69          50          60          
  Thermal – Domestic (U$/t, FOR)                 20          17          16          17          
Cerrejón                              
  Thermal – Export (U$/t)(7)                     71          65          47          56         9%           51%
Nickel (USc/lb)                                 442         474         387         431       (7)%           14%

(1) 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. Excluding Gahcho Kué’s capitalised pre-commercial production sales volumes results in a consolidated sales volume of 
    18.4Mct for H1 2017.
(2) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial production sales from Gahcho 
    Kué.
(3) Average of the De Beers price index for the Sights within the six month period. The De Beers price index is relative to 100 as at 
    December 2006.
(4) Average realised export basket price (FOB Saldanha).
(5) Average realised export basket price (FOB Açu) (wet basis).
(6) Weighted average metallurgical coal sales price achieved.
(7) Weighted average export thermal coal price achieved.

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 
UK 
James Wyatt-Tilby 
james.wyatt-tilby@angloamerican.com
Tel: +44 (0)20 7968 8759 

Marcelo Esquivel
marcelo.esquivel@angloamerican.com
Tel: +44 (0)20 7968 8891 

South Africa 
Pranill Ramchander 
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592 

Ann Farndell 
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786 

Investors
UK 
Paul Galloway 
paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8718 

Trevor Dyer
trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8992 

Sheena Jethwa
sheena.jethwa@angloamerican.com
Tel: +44 (0)20 7968 8680

Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources 
provides the raw materials to meet the growing consumer-driven demands of the world’s developed and maturing economies. Our people are at the 
heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and 
move and market our products to our customers around the world.

As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel - we are the 
custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the long-term value that 
those resources represent for our shareholders and for the communities and countries in which we operate – creating sustainable value and making 
a real difference.

www.angloamerican.com 

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20 July 2017

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