Wrap Text
Production Report for the fourth quarter ended 31 December 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
25 January 2018
Anglo American plc
Production Report for the fourth quarter ended 31 December 2017
Anglo American reports a 5% increase in total production on a copper equivalent basis for 2017. This was achieved
despite actions taken to remove higher cost volumes in platinum and metallurgical coal, which resulted in a 2% decrease
in Q4 2017 copper equivalent production compared to Q4 2016(1).
Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered another strong operating performance in
2017. The 5% increase for the full year reflects our ongoing focus on productivity and was achieved despite the removal
of unprofitable and higher cost platinum and metallurgical coal volumes, consistent with our disciplined, value-led
approach to production. The ramp-up of Gahcho Kue and Grosvenor mines made positive contributions to our production
profile in 2017, and a strong performance from Sishen resulted in an 8% increase in production from Kumba Iron Ore."
Highlights
- De Beers production increased by 5% supported by stronger trading conditions, with Gahcho Kue operating at nameplate
capacity since Q2 2017.
- Copper production increased marginally to 148,600 tonnes. Collahuasi achieved record production in the year, driven by
continued strong plant performance and higher grades.
- Platinum production decreased by 4% and palladium by 5% following the decision in Q3 2017 to remove unprofitable
ounces by placing Bokoni on care and maintenance. Mogalakwena delivered a record production year driven by further
productivity improvements.
- Kumba Iron Ore production for the full year increased by 8% to 45 million tonnes driven by improved productivity.
- Metallurgical Coal production for the full year increased marginally to 19.7 million tonnes, with Grosvenor's ramp-up
and record productivity levels at underground operations offset by the removal of higher cost volumes at Dawson.
- Nickel production of 11,400 tonnes was a record quarter.
Production Summary
% vs. Q4
Q4 2017 Q4 2016 2016 2017 2016 % vs. 2016
Diamonds (Mct)(2) 8.1 7.8 5% 33.5 27.3 22%
Copper (t)(3) 148,600 146,600 1% 579,300 577,100 -
Platinum (produced ounces) (koz)(4) 587 610 (4)% 2,397 2,382 1%
Palladium (produced ounces) (koz)(4) 375 396 (5)% 1,557 1,539 1%
Iron ore - Kumba (Mt) 11.6 11.9 (2)% 45.0 41.5 8%
Iron ore - Minas-Rio (Mt)(5) 4.0 4.9 (19)% 16.8 16.1 4%
Manganese ore (kt)(6) 980 804 22% 3,486 3,133 11%
Export metallurgical coal (Mt) 4.9 5.4 (8)% 19.7 19.4 1%
Export thermal coal (Mt)(7) 6.9 7.0 (2)% 26.5 27.6 (4)%
Nickel (t)(8) 11,400 10,900 5% 43,800 44,500 (2)%
(1) Copper equivalent production is normalised for the sale of Kimberley, Niobium & Phosphates, Foxleigh and Callide, and
to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton.
(2) De Beers production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(3) Copper production from the Copper business unit. Copper production shown on a contained metal basis.
(4) Reflects own mine production and purchases of metal in concentrate.
(5) Wet basis.
(6) Saleable production.
(7) Export thermal coal includes export primary production from South Africa and Colombia, and excludes secondary
South African production that may be sold into either the export or domestic markets.
(8) Nickel production from the Nickel business unit.
DE BEERS
Q4 2017 Q4 2017 2017
Q4 Q4 vs. Q3 vs. vs.
Diamonds(1) 2017 2016 Q4 2016 2017 Q3 2017 2017 2016 2016
Debswana (Botswana) 000 carats 5,504 5,440 1% 6,056 (9)% 22,684 20,501 11%
Namdeb Holdings (Namibia) 000 carats 488 428 14% 454 7% 1,805 1,573 15%
DBCM (South Africa) 000 carats 1,149 1,387 (17)% 1,548 (26)% 5,208 4,234 23%
Canada 000 carats 993 497 100% 1,120 (11)% 3,757 1,031 264%
Total carats recovered 000 carats 8,134 7,752 5% 9,178 (11)% 33,454 27,339 22%
Rough diamond production increased by 5% to 8.1 million carats reflecting stronger trading conditions as well as the
contribution from the ramp-up of Gahcho Kue in Canada.
Debswana (Botswana) production increased marginally to 5.5 million carats. Orapa's production increased by 14% mainly
due to planned increases in plant performance, and the ramp-up of Plant 1, which was previously on partial care and
maintenance in response to trading conditions in late 2015. This was partially offset by Jwaneng where production decreased
by 15% due to expected lower grades.
Namdeb Holdings (Namibia) production increased by 14% to 0.5 million carats, mainly due to higher grades at Namdeb's land operations.
DBCM (South Africa) production decreased by 17% to 1.1 million carats largely as a result of planned sequencing of ore
sources at Venetia, where the increase in tonnes treated was more than offset by a reduction in grade.
Canada production doubled to 1.0 million carats due to the ramp-up of Gahcho Kue, which reached nameplate capacity in Q2 2017.
Consolidated rough diamond sales volumes(2) in Q4 2017 were 7.5 million carats (Q4 2016: 7.5 million carats). Total sales volumes
(100%)(2), which are comparable to production, were 8.2 million carats in Q4 2017 (Q4 2016: 8.0 million carats).
For the full year, consolidated sales volumes(2) were 33.1 million carats (2016: 30.0 million carats). Total sales
volumes (100%)(2), which are comparable to production, were 35.1 million carats (2016: 32.0 million carats).
The full year consolidated average realised price(3) of $162/ct was 13% lower than in 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, as well as the ramp-up of production from lower value per carat but
high margin operations, including Orapa and Gahcho Kue. The lower value mix was partially offset by a higher average
rough price index, up 3% compared to 2016.
(1) De Beers production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51%
basis.
(2) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De
Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total
sales volume (100% basis). Both measures include pre-commercial production sales volumes from Gahcho Kue. Full year
consolidated sales volumes excluding pre-commercial production sales volumes from Gahcho Kue were 32.5 million carats (2016:
30.0 million carats).
(3) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial
production sales from Gahcho Kue.
Q4 2017 Q4 2017 2017
vs. vs. vs.
De Beers Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Carats recovered
(000 carats)
100% basis (unless
otherwise stated)
Orapa 2,703 2,458 2,918 2,106 2,366 10% 14% 10,185 7,931 28%
Letlhakane 254 121 102 130 135 110% 88% 607 595 2%
Damtshaa(1) 35 - - - - - - 35 - -
Jwaneng 2,512 3,477 2,913 2,955 2,939 (28)% (15)% 11,857 11,975 (1)%
Debswana 5,504 6,056 5,933 5,191 5,440 (9)% 1% 22,684 20,501 11%
Namdeb 160 101 72 94 118 58% 36% 427 404 6%
Debmarine Namibia 328 353 319 378 310 (7)% 6% 1,378 1,169 18%
Namdeb Holdings 488 454 391 472 428 7% 14% 1,805 1,573 15%
Kimberley(1) - - - - - - - - 68 (100)%
Venetia 1,023 1,401 1,239 939 1,218 (27)% (16)% 4,602 3,517 31%
Voorspoed 126 147 166 167 169 (14)% (25)% 606 649 (7)%
DBCM 1,149 1,548 1,405 1,106 1,387 (26)% (17)% 5,208 4,234 23%
Snap Lake(1) - - - - - - - - 3 (100)%
Victor 163 190 182 189 148 (14)% 10% 724 596 21%
Gahcho Kue (51% basis) 830 930 831 442 349 (11)% 138% 3,033 432 602%
Canada 993 1,120 1,013 631 497 (11)% 100% 3,757 1,031 264%
Total carats recovered 8,134 9,178 8,742 7,400 7,752 (11)% 5% 33,454 27,339 22%
Sales volumes
Total sales volume
(100%) (Mct)(2) 8.2 6.9 5.9 14.1 8.0 19% 3% 35.1 32.0 10%
Consolidated sales
volume (Mct)(2) 7.5 6.5 5.4 13.7 7.5 15% - 33.1 30.0 10%
Number of Sights
(sales cycles) 3 2 2 3 3 10 10
(1) Damtshaa (a satellite operation of Orapa) was placed on care and maintenance from January 2016, and restarted in
December 2017. Snap Lake was placed on extended 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 De
Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total
sales volume (100% basis). Both measures include pre-commercial production sales volumes from Gahcho Kue. Full year
consolidated sales volumes excluding pre-commercial production sales volumes from Gahcho Kue were 32.5 million carats
(2016:30.0 million carats).
COPPER
Q4 2017 Q4 2017 2017
Q4 Q4 vs. Q3 vs. vs.
Copper(1) 2017 2016 Q4 2016 2017 Q3 2017 2017 2016 2016
Los Bronces t 75,400 74,300 1% 78,100 (3)% 308,300 307,200 -
Collahuasi (44% share) t 63,500 58,600 8% 58,300 9% 230,500 222,900 3%
El Soldado t 9,700 13,700 (29)% 10,900 (11)% 40,500 47,000 (14)%
Total Copper t 148,600 146,600 1% 147,300 1% 579,300 577,100 -
(1) Copper production shown on a contained metal basis.
Production increased marginally to 148,600 tonnes with solid operational performances at both Los Bronces and
Collahuasi.
Production from Los Bronces increased marginally to 75,400 tonnes. A good operational performance and higher grades
were partially offset by the previously reported impact of a ball mill stator failure at the processing plant, which was
repaired by the end of November 2017.
At Collahuasi attributable production increased by 8% to 63,500 tonnes due to a strong plant performance following the
completion of planned maintenance in Q2 2017. Total copper in concentrate production for the year of 230,500 tonnes is
another record for the operation, building on the record copper in concentrate production in 2016. Major maintenance to
replace the stator motor on one of the two ball mills in Line 3 (responsible for around 60% of plant throughput) is
planned for late H1 2018.
El Soldado production decreased by 29% to 9,700 tonnes largely due to expected lower grade (0.65% vs 0.90%).
2017 2016 2017
vs. vs. vs.
Copper(1) Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q4 2017 Q4 2017 Q3 2017 Q4 2016 2016
Collahuasi 100% basis
(Anglo American
share 44%)
Ore mined 17,478,300 18,467,800 14,984,100 13,803,300 20,335,200 (5)% (14)% 64,733,500 67,602,600 (4)%
Ore processed
- Sulphide 13,658,400 13,084,900 10,807,100 12,336,400 12,302,700 4% 11% 49,886,800 49,406,800 1%
Ore grade processed
- Sulphide (% TCu)(2) 1.28 1.24 1.27 1.24 1.29 3% (1)% 1.25 1.22 2%
Production
- Copper cathode - - - 100 700 - - 100 4,800 (98)%
Production - Copper in
concentrate 144,400 132,600 115,900 131,000 132,400 9% 9% 523,900 501,800 4%
Total copper production
for Collahuasi 144,400 132,600 115,900 131,100 133,100 9% 8% 524,000 506,600 3%
Anglo American's share
of copper production
for Collahuasi(3) 63,500 58,300 51,000 57,700 58,600 9% 8% 230,500 222,900 3%
Anglo American Sur(4) 85,100 89,000 89,800 84,900 88,000 (4)% (3)% 348,800 354,200 (2)%
Los Bronces mine(4) 75,400 78,100 79,000 75,800 74,300 (3)% 1% 308,300 307,200 -
Ore mined 11,553,900 12,707,100 11,630,200 13,448,400 13,196,500 (9)% (12)% 49,339,600 51,109,700 (3)%
Marginal ore mined 10,230,300 8,042,000 7,764,700 11,461,400 8,445,700 27% 21% 37,498,400 34,189,300 10%
Ore processed
- Sulphide 10,610,600 11,675,700 11,876,300 11,877,400 11,562,500 (9)% (8)% 46,040,000 47,697,000 (3)%
Ore grade processed -
Sulphide (% TCu) 0.76 0.69 0.70 0.69 0.69 10% 10% 0.71 0.67 6%
Production - Copper
cathode 9,800 9,800 9,800 8,900 8,600 - 14% 38,300 36,000 6%
Production - Copper
in concentrate 65,600 68,300 69,200 66,900 65,700 (4)% - 270,000 271,200 -
El Soldado mine(4) 9,700 10,900 10,800 9,100 13,700 (11)% (29)% 40,500 47,000 (14)%
Ore mined 1,698,500 1,462,200 1,272,200 905,500 2,069,800 16% (18)% 5,338,400 7,339,100 (27)%
Ore processed -
Sulphide 1,846,600 1,851,700 1,899,200 1,797,600 1,833,900 - 1% 7,395,100 6,964,400 6%
Ore grade processed -
Sulphide (% TCu) 0.65 0.73 0.72 0.65 0.90 (11)% (28)% 0.69 0.85 (19)%
Production - Copper
in concentrate 9,700 10,900 10,800 9,100 13,700 (11)% (29)% 40,500 47,000 (14)%
Chagres Smelter(4)
Ore smelted 35,600 35,400 31,500 31,300 25,900 1% 37% 133,800 133,800 -
Production 34,700 34,400 30,600 30,300 25,400 1% 37% 130,000 130,800 (1)%
Total copper
production(5) 148,600 147,300 140,800 142,600 146,600 1% 1% 579,300 577,100 -
Total payable copper
production 143,100 141,900 135,800 137,500 141,300 1% 1% 558,300 557,100 -
Total sales volumes 156,400 163,900 144,100 115,300 161,400 (5)% (3)% 579,700 577,800 -
Total payable sales
volumes 150,600 158,000 138,900 111,200 155,700 (5)% (3)% 558,700 557,900 -
Third party sales(6) 40,500 33,700 27,400 9,800 20,100 20% 101% 111,400 62,000 80%
(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
Q4 2017 Q4 2017
Q4 Q4 vs. Q3 vs. 2017 vs.
2017 2016 Q4 2016 2017 Q3 2017 2017 2016 2016
Platinum
Produced ounces 000 oz 587 610 (4)% 621 (6)% 2,397 2,382 1%
Own mined 000 oz 352 387 (9)% 359 (2)% 1,384 1,738 (20)%
Managed(1) 000 oz 292 283 3% 297 (2)% 1,138 1,108 3%
Joint ventures(2) 000 oz 60 60 - 62 (4)% 245 253 (3)%
Purchase of concentrate 000 oz 235 223 5% 262 (10)% 1,014 644 57%
Palladium
Produced ounces 000 oz 375 396 (5)% 408 (8)% 1,557 1,539 1%
Own mined 000 oz 252 263 (4)% 264 (4)% 1,012 1,154 (12)%
Managed(1) 000 oz 214 203 5% 221 (3)% 851 797 7%
Joint ventures(2) 000 oz 39 38 1% 42 (8)% 162 164 (1)%
Purchase of concentrate(3) 000 oz 123 133 (8)% 144 (15)% 545 385 42%
Refined production
Platinum 000 oz 722 632 14% 684 6% 2,512 2,335 8%
Palladium 000 oz 491 397 24% 451 9% 1,668 1,464 14%
Rhodium 000 oz 87 92 (5)% 79 10% 323 317 2%
Gold 000 oz 30 34 (11)% 31 (3)% 115 108 7%
Nickel t 7,800 6,200 26% 7,000 11% 26,000 25,400 2%
Copper t 4,700 3,300 42% 4,300 9% 15,700 14,100 11%
(1) Production from managed mines in the table above excludes Rustenburg. The sale of Rustenburg to Sibanye completed on
1 November 2016, after which production from Rustenburg is included within third party purchase of concentrate.
(2) 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 included within
'Purchase of concentrate'.
(3) Purchase of concentrate includes 50% of joint venture production, and the purchase of concentrate from associates
(Bokoni and BRPM) and third parties.
Platinum mined production decreased by 4% to 587,000 ounces and palladium production decreased by 5% to 374,900 ounces,
largely due to the removal of unprofitable ounces at Bokoni which was placed on care and maintenance at the end of Q3 2017,
as well as the temporary suspension of the Mototolo concentrator.
Own mined production from managed mines
Own mined platinum production from managed mines increased by 3% to 291,800 ounces and palladium production increased
by 5% to 213,700 ounces due to a strong operational performance at Mogalakwena.
Mogalakwena platinum production increased by 18% to 121,700 ounces and palladium production by 13% to 127,800 ounces
due to expected higher grade, and an increase in concentrator throughput following optimisation of the North Concentrator
Plant.
Amandelbult platinum production decreased by 4% to 116,600 ounces and palladium production by 1% to 54,600 ounces
primarily due to a delay in ore reserve development and a Section 54 safety-related stoppage at Dishaba following a fatal
incident in October 2017.
Unki platinum production decreased by 18% to 16,400 ounces and palladium production by 14% to 14,200 ounces due to
planned maintenance to the mill feed silo, which was completed in December 2017.
Union platinum production decreased by 3% to 37,100 ounces and palladium production by 2% to 17,100 ounces due to
stoppages following a fatal incident in October 2017, as well as difficult ground conditions. The sale of Union to a
subsidiary of Siyanda Resources was announced on 15 February 2017 and is expected to complete in early 2018.
Joint venture own mined production and purchase of concentrate
Joint venture platinum production (mined and purchased) decreased marginally to 119,600 ounces (of which 59,800 ounces
is own mined production and 59,800 ounces is purchase of concentrate) and palladium production increased marginally to
77,400 ounces (of which 38,700 ounces is own mined production and 38,700 ounces is purchase of concentrate). Production
was impacted by the temporary suspension of the Mototolo concentrator to carry out remedial work, which was completed in
early December 2017 and has now ramped up to normal production.
Improved operating efficiencies contributed to strong production from Modikwa and Kroondal which partially offset the
decrease from Mototolo. Modikwa platinum production increased by 28% to 31,700 ounces and palladium production increased
by 21% to 29,300 ounces. Kroondal platinum production increased 9% to 74,500 ounces and palladium production increased
by 9% to 39,400 ounces.
Purchase of concentrate from associates
Purchase of concentrate from associates decreased by 21% (platinum) and 37% (palladium) primarily due to the removal
of unprofitable ounces from Bokoni which was placed on care and maintenance in Q3 2017.
Purchase of concentrate from third parties
Purchase of concentrate from third parties increased by 29% (platinum) and 3% (palladium) due to an increase in
production from Rustenburg operations.
Refined production and sales volumes
Refined platinum production increased by 14% to 722,200 ounces and refined palladium production increased by 24% to
491,400 ounces, primarily due to lower refined volumes in Q4 2016 following the Waterval Smelter run-out.
Platinum sales volumes increased by 19% to 721,700 ounces in line with the increase in refined production, and
palladium sales volumes increased by 32% to 473,500 ounces.
Q4 2017 Q4 2017 2017
vs. vs. vs.
Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Platinum
Produced platinum
(000 troy oz) 587.0 621.4 617.1 571.9 610.0 (6)% (4)% 2,397.4 2,381.9 1%
Owned mined 351.6 359.5 348.0 324.6 386.8 (2)% (9)% 1,383.7 1,737.9 (20)%
Mogalakwena 121.7 116.3 113.9 111.9 103.4 5% 18% 463.8 411.9 13%
Amandelbult 116.6 121.3 110.5 97.1 121.1 (4)% (4)% 445.5 466.5 (5)%
Unki 16.4 19.8 19.5 18.9 19.9 (17)% (18)% 74.6 74.5 -
Joint ventures(1) 59.8 62.2 64.3 59.0 60.1 (4)% - 245.3 252.8 (3)%
Union and other 37.1 39.9 39.8 37.7 38.1 (7)% (3)% 154.5 154.8 -
Rustenburg(2) - - - - 44.2 - - - 377.4 -
Purchase of concentrate 235.4 261.9 269.1 247.3 223.2 (10)% 5% 1,013.7 644.0 57%
Joint ventures(1) 59.8 62.2 64.3 59.0 60.1 (4)% - 245.3 252.8 (3)%
Associates(3) 54.8 73.5 72.5 64.7 69.2 (25)% (21)% 265.5 279.3 (5)%
Third party purchase of
concentrate(2) 120.8 126.2 132.3 123.6 93.9 (4)% 29% 502.9 111.9 349%
Palladium
Produced palladium
(000 troy oz) 374.9 407.5 402.1 372.7 396.4 (8)% (5)% 1,557.3 1,538.7 1%
Owned mined 252.4 263.5 255.9 240.3 263.2 (4)% (4)% 1,012.1 1,154.1 (12)%
Mogalakwena 127.8 129.9 127.8 123.4 113.6 (2)% 13% 508.9 452.0 13%
Amandelbult 54.6 55.9 50.7 44.7 55.3 (2)% (1)% 205.9 211.0 (2)%
Unki 14.2 17.2 16.6 16.4 16.5 (17)% (14)% 64.4 61.4 5%
Joint ventures(1) 38.7 42.1 42.5 38.2 38.2 (8)% 1% 161.5 163.9 (1)%
Union and other 17.1 18.4 18.3 17.6 17.5 (7)% (2)% 71.4 72.5 (2)%
Rustenburg(2) - - - - 22.1 - - - 193.3 -
Purchase of concentrate 122.5 144.0 146.2 132.4 133.2 (15)% (8)% 545.2 384.6 42%
Joint ventures(1) 38.7 42.1 42.5 38.2 38.2 (8)% 1% 161.5 163.9 (1)%
Associates(4) 22.1 36.3 36.4 33.0 35.0 (39)% (37)% 127.9 141.7 (10)%
Third party purchase of
concentrate(2) 61.7 65.6 67.3 61.2 60.0 (6)% 3% 255.8 78.9 224%
Refined production
Platinum (000 troy oz) 722.2 684.1 528.7 576.9 631.6 6% 14% 2,511.9 2,334.7 8%
Palladium (000 troy oz) 491.4 450.6 373.1 353.4 397.4 9% 24% 1,668.5 1,464.2 14%
Rhodium (000 troy oz) 87.4 79.4 82.8 73.7 92.2 10% (5)% 323.2 317.4 2%
Gold (000 troy oz) 30.3 31.1 29.3 24.7 33.9 (3)% (11)% 115.3 108.2 7%
Nickel (tonnes) 7,800 7,000 6,000 5,100 6,200 11% 26% 26,000 25,400 2%
Copper (tonnes) 4,700 4,300 3,500 3,200 3,300 9% 42% 15,700 14,100 11%
4E Head grade 3.53 3.44 3.41 3.47 3.41 3% 4% 3.46 3.16 9%
(g/tonne milled)(4)
Platinum sales volumes
- own mined and purchase
of concentrate 721.7 663.6 600.5 518.8 606.5 9% 19% 2,504.6 2,415.7 4%
Palladium sales volumes
- own mined and purchase
of concentrate 473.5 462.0 330.3 306.0 358.9 2% 32% 1,571.7 1,532.1 3%
(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 completed on 1 November 2016, after which production from Rustenburg is included within third party
purchase of concentrate.
(3) Associates are Platinum's 49% interest in Bokoni and 33% interest in BRPM.
(4) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
IRON ORE
Iron Ore and Manganese Q4 2017 Q3 Q4 2017
Q4 Q4 vs. 2017 vs. 2017 vs.
2017 2016 Q4 2016 Q3 2017 2017 2016 2016
Iron ore - Kumba 000 t 11,643 11,928 (2)% 11,486 1% 44,983 41,476 8%
Iron ore - Minas-Rio(1) 000 t 3,950 4,855 (19)% 4,171 (5)% 16,787 16,141 4%
Manganese ore(2) 000 t 980 804 22% 840 17% 3,486 3,133 11%
Manganese alloys(2)(3) 000 t 41 37 11% 37 10% 149 138 8%
(1) Wet basis.
(2) Saleable production.
(3) Production includes medium carbon ferro-manganese.
Kumba Iron Ore - Iron ore production decreased by 2% to 11.6 million tonnes.
Sishen production decreased by 8% to 7.8 million tonnes due to the benefit in Q4 2016 of temporary access to lower
strip ratio ore and higher plant yields consistent with the mine plan. Compared with the previous three quarters,
production volumes remained constant. Waste removal increased by 15% to 43 million tonnes (FY17: 162 million tonnes)
as the mine continues to deliver consistent improvements in mining productivity.
Kolomela production increased by 12% to 3.9 million tonnes due to sustained productivity improvements. Waste removal
reduced by 9%, as planned, mainly attributable to access to low strip ratio areas, also in line with the mine plan.
Full year waste removal was 56 million tonnes.
Export sales increased by 7% to 11.4 million tonnes. Total finished product stocks were 4.3 million tonnes, increasing
from 3.5 million tonnes at 31 December 2016 as a result of higher production for the year as a whole at Sishen.
Iron Ore Brazil - Production from Minas-Rio decreased by 19% to 4.0 million tonnes (wet basis), due to expected lower
grade ore.
Full year production increased by 4% to 16.8 million tonnes as the operation continued to ramp up to its current
operating capacity. The ramp-up pace was limited by lower grade ore, as the operation utilised the remaining reserve of the
Step 2 licence area.
The focus remains on obtaining the Step 3 licences required for the operation to access the full range of run-of-mine
ore grades and target the operation's nameplate annual production capacity of 26.5 million tonnes.
Manganese ore - Manganese ore production increased by 22% to 979,600 tonnes.
Manganese alloy - Manganese alloy production increased by 11% to 41,100 tonnes. The South African Manganese operations
continue to operate only one of four furnaces.
Q4 2017 Q4 2017 2017
Iron Ore and Manganese vs. vs. vs.
(tonnes) Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Kumba Iron Ore 11,642,600 11,485,700 11,381,600 10,472,600 11,927,900 1% (2)% 44,982,500 41,475,900 8%
By product:
Lump 7,719,100 7,609,200 7,504,200 6,978,800 7,812,000 1% (1)% 29,811,300 26,801,500 11%
Fines 3,923,500 3,876,500 3,877,400 3,493,800 4,115,900 1% (5)% 15,171,200 14,674,400 3%
By mine:
Sishen 7,782,300 7,786,100 7,871,900 7,678,900 8,489,900 - (8)% 31,119,200 28,380,000 10%
Kolomela 3,860,300 3,699,600 3,509,700 2,793,700 3,438,000 4% 12% 13,863,300 12,726,300 9%
Thabazimbi - - - - - - - - 369,600 -
Kumba sales volumes
Export iron ore 11,354,800 10,783,200 9,423,600 10,053,000 10,611,400 5% 7% 41,614,600 39,060,400 7%
Domestic iron ore 875,700 644,100 924,600 832,700 612,700 36% 43% 3,277,100 3,423,300 (4)%
Minas-Rio production
Pellet feed (wet basis) 3,949,900 4,171,500 4,324,100 4,341,700 4,855,300 (5)% (19)% 16,787,200 16,140,900 4%
Minas-Rio sales volumes
Export - pellet feed
(wet basis) 4,140,700 3,739,800 4,371,000 4,256,500 4,761,800 11% (13)% 16,508,000 16,210,500 2%
Samancor
Manganese ore(1) 979,600 839,500 843,300 823,100 804,200 17% 22% 3,485,500 3,133,100 11%
Manganese alloys(1)(2) 41,100 37,300 39,300 31,500 37,100 10% 11% 149,200 137,800 8%
Samancor sales volumes
Manganese ore 874,900 846,900 887,600 836,000 805,000 3% 9% 3,445,400 3,226,400 7%
Manganese alloys 37,300 33,500 37,200 34,400 31,600 11% 18% 142,400 170,000 (16)%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
COAL
Q4 2017 Q4 2017
Q4 Q4 vs. Q3 vs. 2017 vs.
Coal 2017 2016 Q4 2016 2017 Q3 2017 2017 2016 2016
Metallurgical Coal -
excl. 2016 divestments(1)
Metallurgical - Export 000 t 4,924 5,360 (8)% 5,532 (11)% 19,661 19,446 1%
Thermal - Export 000 t 409 595 (31)% 421 (3)% 1,614 3,270 (51)%
South Africa
Thermal export - Primary(2) 000 t 3,976 4,229 (6)% 3,773 5% 15,871 16,977 (7)%
Thermal export and
domestic - Secondary(3) 000 t 989 927 7% 958 3% 3,948 3,688 7%
Thermal domestic - Eskom 000 t 5,920 7,515 (21)% 6,843 (13)% 26,027 28,699 (9)%
Thermal domestic -
Isibonelo(4) 000 t 966 1,038 (7)% 1,145 (16)% 4,060 4,395 (8)%
Cerrejon
Thermal - Export 000 t 2,914 2,801 4% 2,497 17% 10,642 10,668 -
Thermal Export South Africa
and Cerrejon(5) 000 t 6,890 7,030 (2)% 6,270 10% 26,513 27,645 (4)%
(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 domesticmarkets.
Comparatives have been restated to align with current presentation. In 2017, ~70% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(5) Thermal Export 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.
Metallurgical Coal - Export metallurgical coal production decreased by 8% to 4.9 million tonnes due to an extended longwall move at
Grosvenor in Q4 2017 and lower production at Dawson. The Dawson mine was reconfigured at the end of 2016 to remove higher cost volumes
and, in Q4 2017, was transitioning to a new mining area. This was partially offset by an increase in production at Grasstree, which
experienced geological issues and a longwall move in Q4 2016.
Grosvenor completed its first longwall panel during Q4 2017 which was followed by an extended longwall move in order to rectify component
defects identified during the first panel.
South Africa - Primary export thermal coal production decreased by 6% to 4.0 million tonnes. Productivity improvements at the underground
operations were offset by ongoing operational challenges at Khwezela, and Mafube transitioning into a new pit. The production increase
compared with Q3 2017 reflects the ramp-up in production following a 100-hour safety stoppage at all operations in Q3 following a fatal
incident in August 2017.
Eskom-related production decreased by 21% to 5.9 million tonnes due to the end of mine life of the Eskom dedicated pit at Khwezela
(0.4 million tonnes), lower Eskom offtake from New Vaal and reserve constraints at Kriel as it approaches the end of the mine's life.
Cerrejon - Cerrejon's attributable production increased by 4% to 2.9 million tonnes due to improved weather conditions.
Q4 2017 Q4 2017 2017
vs. vs. vs.
Coal (tonnes) Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Metallurgical Coal(1) 5,332,500 5,952,900 4,268,200 5,721,400 5,955,100 (10)% (10)% 21,275,000 22,716,400 (6)%
Metallurgical export
- Coking 4,300,300 4,696,200 3,237,000 4,747,300 4,496,900 (8)% (4)% 16,980,800 16,199,900 5%
Metallurgical
export - PCI 623,600 835,300 726,500 495,100 862,900 (25)% (28)% 2,680,500 3,246,200 (17)%
Thermal export 408,600 421,400 304,700 479,000 595,300 (3)% (31)% 1,613,700 3,270,300 (51)%
South Africa 11,850,500 12,719,000 13,028,200 12,307,300 13,708,600 (7)% (14)% 49,905,000 53,759,900 (7)%
Thermal export
- Primary(2) 3,975,700 3,773,100 4,064,100 4,058,500 4,229,400 5% (6)% 15,871,400 16,977,400 (7)%
Thermal export
and domestic
- Secondary(3) 989,200 957,500 1,022,600 978,200 926,900 3% 7% 3,947,500 3,688,200 7%
Thermal domestic -
Eskom 5,919,900 6,843,300 6,889,100 6,374,300 7,514,700 (13)% (21)% 26,026,600 28,699,300 (9)%
Thermal domestic -
Isibonelo(4) 965,700 1,145,100 1,052,400 896,300 1,037,600 (16)% (7)% 4,059,500 4,395,000 (8)%
Colombia
Thermal - Export 2,913,600 2,496,700 2,449,600 2,781,700 2,800,600 17% 4% 10,641,600 10,667,900 -
Total coal production 20,096,600 21,168,600 19,746,000 20,810,400 22,464,300 (5)% (11)% 81,821,600 87,144,200 (6)%
Sales volumes
Metallurgical Coal(1)
Metallurgical -
Export(5) 5,323,600 5,341,700 4,155,000 4,947,400 4,926,900 - 8% 19,767,700 19,275,600 3%
Thermal - Export 466,900 468,500 422,800 473,200 699,000 - (33)% 1,831,400 3,377,700 (46)%
South Africa
Thermal - Export 4,843,500 4,921,200 4,150,800 4,693,300 5,825,200 (2)% (17)% 18,608,800 19,071,700 (2)%
Thermal - Other
domestic 471,400 512,100 513,700 394,300 485,100 (8)% (3)% 1,891,500 1,584,900 19%
Thermal domestic -
Eskom 5,931,000 6,928,800 6,841,100 6,359,200 7,288,500 (14)% (19)% 26,060,100 27,984,400 (7)%
Thermal domestic -
Isibonelo 967,900 1,108,400 1,030,600 964,600 1,168,900 (13)% (17)% 4,071,500 4,911,400 (17)%
Third party sales 1,779,400 2,436,100 1,835,400 1,567,800 694,600 (27)% 156% 7,618,700 6,051,800 26%
Cerrejon
Thermal - Export 2,619,400 2,517,500 2,770,500 2,646,300 2,722,300 4% (4)% 10,553,700 10,810,200 (2)%
(1) Comparatives have been restated to exclude production and sales 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 2017, ~70% 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.
Q4 2017 Q4 2017 2017
vs. vs. vs.
Coal (tonnes) Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Metallurgical Coal
Capcoal (incl.
Grasstree) 1,700,300 1,774,100 1,508,900 1,785,400 1,230,200 (4)% 38% 6,768,700 6,832,900 (1)%
Dawson 630,500 1,012,800 1,046,800 1,092,100 1,273,000 (38)% (50)% 3,782,200 4,608,700 (18)%
Drayton - - - - 82,300 - - - 1,167,500 -
Grosvenor 161,300 1,012,500 183,600 709,800 539,100 (84)% (70)% 2,067,200 1,759,000 18%
Jellinbah 860,600 836,700 840,300 718,000 882,100 3% (2)% 3,255,600 3,282,300 (1)%
Moranbah North 1,979,800 1,316,800 688,600 1,416,100 1,948,400 50% 2% 5,401,300 5,066,100 7%
Total Metallurgical
Coal production 5,332,500 5,952,900 4,268,200 5,721,400 5,955,100 (10)% (10)% 21,275,000 22,716,500 (6)%
South Africa
Goedehoop 1,114,300 1,085,400 1,230,800 1,222,100 1,134,200 3% (2)% 4,652,600 4,688,600 (1)%
Greenside 1,041,200 906,700 877,700 1,004,800 1,036,900 15% - 3,830,400 3,945,300 (3)%
Zibulo 1,587,900 1,534,600 1,672,900 1,439,400 1,407,200 3% 13% 6,234,800 6,007,600 4%
Khwezela(1) 1,371,300 1,265,300 1,475,000 1,596,100 2,230,000 8% (39)% 5,707,700 8,185,700 (30)%
Mafube 350,900 361,200 407,600 441,400 435,400 (3)% (19)% 1,561,100 1,759,000 (11)%
New Vaal 3,218,500 4,354,300 4,121,900 3,414,300 3,994,800 (26)% (19)% 15,109,000 15,894,800 (5)%
New Denmark 963,300 673,700 769,600 954,400 773,200 43% 25% 3,361,000 2,547,400 32%
Kriel 1,237,400 1,392,700 1,420,300 1,338,500 1,659,400 (11)% (25)% 5,388,900 6,336,500 (15)%
Isibonelo 965,700 1,145,100 1,052,400 896,300 1,037,500 (16)% (7)% 4,059,500 4,395,000 (8)%
Total South Africa
production 11,850,500 12,719,000 13,028,200 12,307,300 13,708,600 (7)% (14)% 49,905,000 53,759,900 (7)%
Cerrejon
Carbones del Cerrejon 2,913,600 2,496,700 2,449,600 2,781,700 2,800,600 17% 4% 10,641,600 10,667,900 -
Total Coal production 20,096,600 21,168,600 19,746,000 20,810,400 22,464,300 (5)% (11)% 81,821,600 87,144,300 (6)%
(1) The merger of Kleinkopje and Landau.
NICKEL
Q4 2017 Q4 2017
Nickel Q4 Q4 vs. Q3 vs. 2017 vs.
2017 2016 Q4 2016 2017 Q3 2017 2017 2016 2016
Nickel t 11,400 10,900 5% 11,200 2% 43,800 44,500 (2)%
Nickel - Nickel production increased by 5% to a record 11,400 tonnes as a result of improved operational stability.
Barro Alto produced 9,100 tonnes and Codemin produced 2,300 tonnes.
Q4 2017 Q4 2017 2017
vs. vs. vs.
Nickel(1) Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2017 Q4 2016 2017 2016 2016
Barro Alto
Ore mined 978,600 1,895,000 2,375,700 1,023,500 364,300 (48)% 169% 6,272,800 2,630,700 138%
Ore processed 591,500 578,200 615,700 523,900 579,800 2% 2% 2,309,300 2,357,100 (2)%
Ore grade
processed - %Ni 1.71 1.72 1.71 1.70 1.77 (1)% (3)% 1.71 1.76 (3)%
Production 9,100 8,900 9,100 7,800 8,800 2% 3% 34,900 35,500 (2)%
Codemin
Ore mined - - 7,500 - - - - 7,500 6,800 10%
Ore processed 147,200 152,200 144,000 143,600 142,900 (3)% 3% 587,000 589,600 -
Ore grade
processed - %Ni 1.70 1.70 1.69 1.65 1.73 - (2)% 1.69 1.71 (1)%
Production 2,300 2,300 2,200 2,100 2,100 - 10% 8,900 9,000 (1)%
Total Nickel segment
nickel production 11,400 11,200 11,300 9,900 10,900 2% 5% 43,800 44,500 (2)%
Sales volumes 10,900 11,300 10,400 10,400 11,400 (4)% (4)% 43,000 44,900 (4)%
(1) Excludes Anglo American Platinum's nickel production.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for the quarter decreased by 3% to $67 million.
- Exploration expenditure for the quarter increased by 11% to $31 million.
- Evaluation expenditure for the quarter decreased by 12% to $36 million.
REALISED PRICES SUMMARY
2017 H2 2017
vs. vs.
Average realised prices 2017 2016 H2 2017 H1 2017 2016 H1 2017
De Beers
Total sales volumes (100%) (Mct)(1) 35.1 32.0 15.1 20.0 10% (25)%
Consolidated sales volumes 33.1 30.0 14.0 19.1 10% (27)%
(Mct)(1)
Consolidated average realised price ($/ct)(2) 162 187 170 156 (13)% 9%
Average price index(3) 122 118 122 121 3% 1%
PGMs
Platinum (US$/oz) 947 993 946 957 (5)% (1)%
Palladium (US$/oz) 876 610 926 780 44% 19%
Rhodium (US$/oz) 1,094 680 1,180 911 61% 30%
Basket price (US$/oz) 1,966 1,753 2,061 1,843 12% 12%
Copper (USc/lb)(4) 290 225 309 264 29% 17%
Nickel (USc/lb) 476 431 508 442 10% 15%
Iron Ore - FOB prices
Kumba Export (US$/dmt)(5) 71 64 71 71 11% -
Minas-Rio (US$/wmt)(6) 65 54 64 66 20% (3)%
Coal
Australia and Canada
Metallurgical - HCC (US$/t)(7) 187 119 180 195 57% (8)%
Metallurgical - PCI (US$/t)(7) 125 77 126 124 62% 2%
Thermal - Export (US$/t) 91 55 95 87 65% 9%
South Africa
Thermal - Export (US$/t)(8) 76 60 80 72 27% 11%
Thermal - Domestic (US$/t, FOR)(9) 21 17 22 20 24% 10%
Colombia
Thermal - Export (US$/t) 75 56 79 71 34% 11%
(1) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from
the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
Both measures include pre-commercial production sales volumes from Gahcho Kue. Full year consolidated sales volumes excluding
pre-commercial production sales volumes from Gahcho Kue were 32.5 million carats (2016: 30.0 million carats).
(2) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial
production sales from Gahcho Kue.
(3) Average of the De Beers price index for the Sights within the twelve-month period. The De Beers price index is
relative to 100 as at December 2006.
(4) The realised price for Copper excludes third party sales volumes.
(5) Average realised export basket price (FOB Saldanha).
(6) Average realised export basket price (FOB Acu) (wet basis).
(7) Weighted average metallurgical coal sales price achieved.
(8) Weighted average export thermal coal price achieved. Excludes third party sales.
(9) Weighted average domestic thermal coal price achieved on all domestic thermal coal sales.
NOTES
- This Production Report for the fourth quarter ended 31 December 2017 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report.
The percentage change will reflect the percentage change using the production figures shown in the Production Summary
of this report.
- Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each
commodity's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper
price (per tonne). Long-term forecast prices (and foreign exchange rates where appropriate) are used, in order that
period-on-period comparisons exclude any impact for movements in price.
Forward-looking statements:
This contains certain forward-looking statements which involve risk and uncertainty because they relate to events and
depend on circumstances that may occur in the future. There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied by these forward-looking statements.
For further information, please contact:
MEDIA INVESTORS
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Trevor Dyer
marcelo.esquivel@angloamerican.com trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8992
South Africa Sheena Jethwa
Pranill Ramchander sheena.jethwa@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8680
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations
and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed
and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies
to find new resources, plan and build our mines and who mine, process and move and market our products to our customers
around the world.
As a responsible miner - of diamonds (through De Beers), 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.
http://www.angloamerican.com
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Date: 25/01/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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