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Production Report for the third quarter ended 30 September 2018
Anglo American plc (the "Company")
Registered office: 20 Carlton House Terrace, London SW1Y 5AN, United Kingdom
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
NEWS RELEASE
23 October 2018
Anglo American plc
Production Report for the third quarter ended 30 September 2018
Anglo American reports a 1% increase in total production on a copper equivalent basis in the third quarter of
2018, compared to the same period of 2017, excluding the Minas-Rio stoppage(1).
Mark Cutifani, Chief Executive of Anglo American, said: "Our focus on driving efficiency and productivity
across the business resulted in another strong quarter, with volumes 1% higher than the solid operational
performance seen in Q3 2017. Production per employee has increased by 5% in 2018, compared to 2017, as
we maintain relentless discipline on controllable costs. Strong operational performance at our Copper assets
delivered a 17% increase in production, more than offsetting planned lower volumes at De Beers and the
impact of rail infrastructure constraints at Kumba in the first half of the year."
Highlights
- De Beers production decreased by 5% to 8.7 million carats due to expected lower grades at Jwaneng
and lower volumes at Venetia, due to a shutdown to upgrade its processing plant ahead of its transition
from open cut to underground operations.
- Copper production increased by 17% to 171,800 tonnes reflecting continued strong operational
performance across all operations and planned higher grades.
- Platinum and palladium production increased by 4% to 649,000 ounces and 1% to 411,000 ounces
respectively driven by an improved performance at Amandelbult and the joint venture operations.
- Kumba's iron ore production decreased by 9% to 10.5 million tonnes as planned, to offset elevated stock
levels arising from Transnet rail constraints in H1 2018.
- Metallurgical coal production decreased by 3% to 5.4 million tonnes with the timing of longwall moves.
- Thermal coal export production increased by 13% to 7.7 million tonnes reflecting solid operational
improvements at our coal assets.
Production Summary
% vs. YTD
Q3 2018 Q3 2017 % vs. Q3 2017 YTD 2018 YTD 2017 2017
Diamonds (Mct)(2) 8.7 9.2 (5)% 26.2 25.3 3%
Copper (kt)(3) 172 147 17% 485 431 13%
Platinum (koz)(4) 649 621 4% 1,882 1,810 4%
Palladium (koz)(4) 411 408 1% 1,224 1,183 4%
Iron ore - Kumba (Mt) 10.5 11.5 (9)% 32.9 33.3 (1)%
Iron ore - Minas-Rio (Mt)(5) - 4.2 - 3.2 12.8 (75)%
Metallurgical coal (Mt) 5.4 5.5 (3)% 16.2 14.7 10%
Thermal coal (Mt)(6) 7.7 6.8 13% 21.7 21.7 -
Nickel (kt)(7) 11.5 11.2 3% 30.9 32.4 (5)%
Manganese ore (kt) 888 840 6% 2,635 2,506 5%
(1) Copper equivalent production is normalised for Bokoni being placed on care and maintenance in Q3 2017 and the Minas-Rio production stoppage in 2018. Including the
Minas-Rio stoppage, production decreased by 3% compared to Q3 2017.
(2) De Beers production is on a 100% basis, except for the Gahcho Ku� joint venture which is on an attributable 51% basis.
(3) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).
(4) Produced ounces. Reflects own mine production and purchases of metal in concentrate.
(5) Wet basis.
(6) Reflects export production from South Africa and Colombia.
(7) Reflects nickel production from the Nickel business unit only (i.e. excludes nickel production from the Platinum Group Metals business unit).
DE BEERS
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
De Beers(1) 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Botswana (Debswana) 000 carats 5,699 6,056 (6)% 6,279 (9)% 17,786 17,180 4%
Namibia
(Namdeb Holdings) 000 carats 460 454 1% 515 (11)% 1,503 1,317 14%
South Africa (DBCM) 000 carats 1,337 1,548 (14)% 1,018 31% 3,448 4,059 (15)%
Canada 000 carats 1,178 1,120 5% 1,185 (1)% 3,432 2,764 24%
Total carats recovered 000 carats 8,674 9,178 (5)% 8,997 (4)% 26,169 25,320 3%
Rough diamond production decreased by 5% to 8.7 million carats due to planned volume reductions in
Botswana (Debswana) and South Africa (DBCM).
Botswana (Debswana) production decreased by 6% to 5.7 million carats due to the planned processing of
lower grade material at Jwaneng. Production at Orapa(2) remained in line with Q3 2017 at 2.6 million carats.
Namibia (Namdeb Holdings) production was flat at 0.5 million carats.
South Africa (DBCM) production decreased by 14% to 1.3 million carats due to a planned shut down at Venetia
to upgrade the processing plant ahead of the transition from open cut to underground operations.
Canada production increased by 5% to 1.2 million carats, driven by higher grades at Victor, which is
approaching the end of its life. Gahcho Ku� production was in line with Q3 2017.
Rough sales volumes amounted to 5.0 million carats (4.6 million carats on a consolidated basis(3)) from two
sales cycles in Q3 2018, compared with 6.9 million carats (6.5 million carats on a consolidated basis(3)) from
two sales cycles in Q3 2017. Rough sales volumes were down as a result of Sightholders being given the
opportunity during the seventh Sight of 2018 to re-phase the allocation of some smaller, lower value rough
diamonds. Rough sales revenues were broadly in line with Q3 2017.
Full Year Guidance
Full year production guidance(1) remains at 34-36 million carats but is expected to be at the higher end of the
range.
(1) De Beers production is on a 100% basis, except for the Gahcho Ku� joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and
the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Ku�.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
De Beers(1) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Carats recovered (000 carats)
100% basis (unless otherwise
stated)
Jwaneng 3,143 3,025 2,984 2,512 3,477 4% (10)% 9,152 9,345 (2)%
Orapa(2) 2,556 3,254 2,824 2,992 2,579 (21)% (1)% 8,634 7,835 10%
Botswana (Debswana) 5,699 6,279 5,808 5,504 6,056 (9%) (6%) 17,786 17,180 4%
Debmarine Namibia 322 349 365 328 353 (8)% (9%) 1,036 1,050 (1%)
Namdeb (land operations) 138 166 163 160 101 (17%) 37% 467 267 75%
Namibia (Namdeb Holdings) 460 515 528 488 454 (11%) 1% 1,503 1,317 14%
Venetia 1,178 922 1,008 1,023 1,401 28% (16%) 3,108 3,579 (13%)
Voorspoed 159 96 85 126 147 66% 8% 340 480 (29%)
South Africa (DBCM) 1,337 1,018 1,093 1,149 1,548 31% (14%) 3,448 4,059 (15%)
Gahcho Ku� (51% basis) 927 985 838 830 930 (6%) (0%) 2,750 2,203 25%
Victor 251 200 231 163 190 26% 32% 682 561 22%
Canada 1,178 1,185 1,069 993 1,120 (1%) 5% 3,432 2,764 24%
Total carats recovered 8,674 8,997 8,498 8,134 9,178 (4%) (5%) 26,169 25,320 3%
Sales volumes
Total sales volume (100%) (Mct)(3) 5.0 10.0 8.8 8.2 6.9 (50%) (28%) 23.9 26.9 (11%)
Consolidated sales volume (Mct)(3) 4.6 9.4 8.4 7.5 6.5 (51%) (29%) 22.4 25.6 (13%)
Number of Sights
(sales cycles) 2 3 2 3 2 7 7
(1) De Beers production is on a 100% basis, except for the Gahcho Ku� joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and
the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Ku�.
COPPER
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Copper(1) 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Los Bronces t 95,800 78,100 23% 89,700 7% 270,600 232,900 16%
Collahuasi
(44% share) t 61,500 58,300 5% 54,700 12% 176,800 167,000 6%
El Soldado t 14,500 10,900 33% 13,600 7% 37,400 30,800 21%
Total Copper t 171,800 147,300 17% 158,000 9% 484,800 430,700 13%
(1) Copper production shown on a contained metal basis.
Copper production increased by 17% to 171,800 tonnes, with production increases at all operations.
Production from Los Bronces increased by 23% to 95,800 tonnes, driven by continued strong mine and plant
performance, supported by significantly lower than usual winter snowfall and planned higher grades (0.76%
vs. 0.69%).
At Collahuasi, attributable production increased by 5% to 61,500 tonnes reflecting planned higher grades
(1.33% vs. 1.24%). Production increased by 12% compared with Q2 2018 owing to the completion of planned
three-month major maintenance on 8 July.
El Soldado production increased by 33% to 14,500 tonnes due to a combination of strong mine and plant
performance and planned higher grades.
Full Year Guidance
Full year production guidance is unchanged at 630,000 - 660,000 tonnes.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Copper(1) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 13,791,400 11,454,400 11,859,300 17,478,300 18,467,800 20% (25)% 37,105,100 47,255,200 (21)%
Ore processed - Sulphide 12,332,800 10,605,100 12,894,200 13,658,400 13,084,900 16% (6)% 35,832,100 36,228,400 (1)%
Ore grade processed -
Sulphide (% TCu)(2) 1.33 1.34 1.24 1.28 1.24 (1)% 7% 1.30 1.24 5%
Production - Copper cathode - - - - - - - - 100 -
Production - Copper in
concentrate 139,700 124,500 137,600 144,400 132,600 12% 5% 401,800 379,500 6%
Total copper production for
Collahuasi 139,700 124,500 137,600 144,400 132,600 12% 5% 401,800 379,600 6%
Anglo American's share of
copper production for 61,500 54,700 60,600 63,500 58,300 12% 5% 176,800 167,000 6%
Collahuasi(3)
Los Bronces(4) 95,800 89,700 85,000 75,400 78,100 7% 23% 270,600 232,900 16%
Ore mined 13,019,000 17,837,300 15,675,300 11,553,900 12,707,100 (27)% 2% 46,531,600 37,785,700 23%
Ore processed - Sulphide 13,089,300 12,346,700 12,477,100 10,610,600 11,675,700 6% 12% 37,913,100 35,429,400 7%
Ore grade processed -
Sulphide (% TCu)(2) 0.76 0.76 0.71 0.76 0.69 0% 10% 0.74 0.69 7%
Production - Copper cathode 10,300 10,000 8,500 9,800 9,800 3% 5% 28,800 28,500 1%
Production - Copper in
concentrate 85,500 79,700 76,600 65,600 68,300 7% 25% 241,800 204,400 18%
El Soldado(4) 14,500 13,600 9,300 9,700 10,900 7% 33% 37,400 30,800 21%
Ore mined 3,361,000 2,905,800 2,112,500 1,698,500 1,462,200 16% 130% 8,379,300 3,639,900 130%
Ore processed - Sulphide 2,036,000 1,825,000 1,785,600 1,846,600 1,851,700 12% 10% 5,646,600 5,548,500 2%
Ore grade processed -
Sulphide (% TCu)(2) 0.87 0.90 0.67 0.65 0.73 (3)% 19% 0.82 0.70 17%
Production - Copper in
concentrate 14,500 13,600 9,300 9,700 10,900 7% 33% 37,400 30,800 21%
Chagres Smelter(4)
Ore smelted 37,700 39,300 34,700 35,600 35,400 (4)% 6% 111,700 98,200 14%
Production 36,900 38,400 33,800 34,700 34,400 (4)% 7% 109,100 95,300 14%
Total copper production(5) 171,800 158,000 154,900 148,600 147,300 9% 17% 484,800 430,700 13%
Total payable copper
production 165,700 152,600 149,100 143,100 141,900 9% 17% 467,400 415,200 13%
Total sales volumes 159,900 174,400 131,600 156,400 163,900 (8)% (2)% 465,900 423,300 10%
Total payable sales
volumes 154,200 168,400 126,700 150,600 158,000 (8)% (2)% 449,300 408,100 10%
Third party sales(6) 51,800 40,700 30,800 40,500 33,700 27% 54% 123,300 70,900 74%
(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated.
(2) TCu = total copper.
(3) Anglo American's share of Collahuasi production is 44%.
(4) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these
operations.
(5) Total copper production includes Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
PLATINUM GROUP METALS
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Platinum 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Produced M&C(1) ounces 000 oz 649.0 621.5 4% 619.6 5% 1,882.4 1,810.4 4%
Own mined(2) 000 oz 332.9 357.8 (7)% 340.2 (2)% 1,016.1 1,026.4 (1)%
Purchase of concentrate(3) 000 oz 316.1 263.7 20% 279.4 13% 866.3 784.0 10%
Palladium
Produced M&C(1) ounces 000 oz 410.8 407.5 1% 406.0 1% 1,224.2 1,182.6 4%
Own mined(2) 000 oz 250.2 262.7 (5)% 260.8 (4)% 778.7 757.3 3%
Purchase of concentrate(3) 000 oz 160.6 144.8 11% 145.2 11% 445.5 425.3 5%
Refined production
Platinum 000 oz 556.2 684.1 (19)% 572.7 (3)% 1,631.5 1,789.7 (9)%
Palladium 000 oz 321.5 450.6 (29)% 366.7 (12)% 1,008.0 1,177.0 (14)%
Rhodium 000 oz 65.2 79.4 (18)% 73.8 (12)% 201.5 235.8 (15)%
Gold 000 oz 27.4 31.1 (12)% 27.3 0% 77.6 85.0 (9)%
Nickel t 5,600 7,000 (20)% 5,700 (2)% 16,400 18,200 (10)%
Copper t 2,900 4,300 (33)% 4,000 (28)% 10,100 11,000 (8)%
(1) Mined and purchase of concentrate.
(2) Includes managed operations and 50% of joint venture production.
(3) Purchase of concentrate includes 50% of joint venture production, and the purchase of concentrate from associates (Bokoni and BRPM) and third parties.
Platinum production increased by 4% to 649,000 ounces and palladium production increased by 1% to 410,800
ounces due to improved operational performances across the majority of the portfolio, despite the placing of
unprofitable production from Bokoni on care and maintenance in Q3 2017.
Own mined production
Own mined platinum production decreased by 7% to 332,900 ounces and palladium production decreased by
5% to 250,200 ounces due to the sale of Union mine to Siyanda Resources on 1 February 2018, after which
its production was purchased as concentrate. Excluding Union, own mined platinum production increased by
5% and palladium production increased by 2%.
Mogalakwena platinum production decreased by 2% to 113,900 ounces and palladium production decreased
by 2% to 127,100 ounces. This was the result of lower concentrator throughput and lower recovery due to
concentrator maintenance, partially offset by higher grades. Grades of material processed are expected to be
lower in Q4 2018, with an impact on production volume.
Amandelbult platinum production increased by 5% to 126,000 ounces and palladium production increased by
4% to 57,300 ounces. This was driven by continued operational improvement, supported by increased
development at Dishaba, as mining activities transitioned to this section.
Unki platinum production increased by 13% to 22,400 ounces and palladium production increased by 15% to
19,700 ounces as a result of an increase in tonnes milled, improvements in recovery and higher grade.
Joint venture platinum production (Mototolo, Modikwa and Kroondal) increased by 14% to 141,200 ounces (of
which 70,600 ounces is own mined production and 70,600 ounces is purchased concentrate). Palladium
production increased by 10% to 92,200 ounces (of which 46,100 ounces is own mined production and 46,100
ounces is purchased concentrate). This was largely due to lower production in Q3 2017 when the Mototolo
concentrator was temporarily stopped to carry out remedial work at a tailings facility.
Purchase of concentrate
Purchase of concentrate from joint ventures increased by 14% for platinum and 10% for palladium for the
reasons outlined above.
Purchase of concentrate from associates decreased by 9% for platinum and 25% for palladium 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 increased by 40% for platinum and 31% for palladium due to
concentrate purchased from Union mine following its sale.
Refined production and sales volumes
Refined platinum production decreased by 19% to 556,200 ounces and refined palladium production
decreased by 29% to 321,500 ounces due to a rebuild of the Mortimer smelter in Q2 2018 and its progressive
ramp up in Q3 2018 as well as the Polokwane smelter furnace repair that required a full shutdown for 35 days.
Platinum sales volumes (excluding refined metal purchased from third parties) decreased by 20% to 530,100
ounces and palladium sales volumes decreased by 30% to 324,300 ounces due to lower refined production.
Full year guidance
Due to strong operational performance across the portfolio, 2018 platinum production guidance has been
revised upwards to 2.45-2.50 million ounces (previously 2.40-2.45 million ounces) and palladium production
guidance has been tightened to 1.55-1.60 million ounces (previously 1.50-1.60 million ounces).
As a result of scheduled smelter rebuilds and maintenance at both Mortimer smelter and Polokwane smelter,
there has been a build-up of work-in-progress inventory at the end of the third quarter, with platinum and
palladium at ~270,000 ounces and ~160,000 ounces respectively, over and above targeted levels. The work-
in-progress inventory is unlikely to be refined in full by year-end, and therefore full year refined production is
expected to be lower than production of concentrate. Full year refined platinum production guidance is
maintained at 2.40-2.45 million ounces and palladium refined production at the lower end of guidance of 1.50-
1.60 million ounces. The remaining build-up in work-in-progress inventory will be processed and is expected
to return to targeted levels in H1 2019. Platinum and palladium sales volumes are expected to remain in line
with refined production.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Platinum 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Produced platinum
(000 troy oz) 649.0 619.6 613.8 587.0 621.5 5% 4% 1,882.4 1,810.4 4%
Own mined 332.9 340.2 343.0 349.8 357.8 (2)% (7)% 1,016.1 1,026.4 (1)%
Mogalakwena 113.9 133.4 139.4 121.7 116.3 (15)% (2)% 386.7 342.1 13%
Amandelbult 126.0 116.3 103.9 114.8 119.5 8% 5% 346.2 323.2 7%
Unki 22.4 20.9 20.6 16.4 19.9 7% 13% 63.9 58.2 10%
Joint ventures(1) 70.6 69.6 67.5 59.8 62.2 1% 14% 207.7 185.5 12%
Union - - 11.6 37.1 39.9 - (100)% 11.6 117.4 (90)%
Purchase of concentrate 316.1 279.4 270.8 237.2 263.7 13% 20% 866.3 784.0 10%
Joint ventures(1) 70.6 69.6 67.5 59.8 62.2 1% 14% 207.7 185.5 12%
Associates(2) 66.7 54.3 52.3 54.8 73.5 23% (9)% 173.3 210.7 (18)%
Third parties 178.8 155.5 151.0 122.6 128.0 15% 40% 485.3 387.8 25%
Palladium
Produced palladium
(000 troy oz) 410.8 406.0 407.4 374.9 407.5 1% 1% 1,224.2 1,182.6 4%
Own mined 250.2 260.8 267.7 251.5 262.7 (4)% (5)% 778.7 757.3 3%
Mogalakwena 127.1 145.1 150.5 127.8 129.9 (12)% (2)% 422.7 381.1 11%
Amandelbult 57.3 52.2 50.7 53.7 55.1 10% 4% 160.2 148.7 8%
Unki 19.7 18.4 17.8 14.2 17.2 7% 15% 55.9 50.2 11%
Joint ventures(1) 46.1 45.1 43.5 38.7 42.1 2% 10% 134.7 122.9 10%
Union - - 5.2 17.1 18.4 - (100)% 5.2 54.4 (90)%
Purchase of concentrate 160.6 145.2 139.7 123.4 144.8 11% 11% 445.5 425.3 5%
Joint ventures(1) 46.1 45.1 43.5 38.7 42.1 2% 10% 134.7 122.9 10%
Associates(2) 27.2 22.0 21.7 22.1 36.3 24% (25)% 70.9 105.7 (33)%
Third parties 87.3 78.1 74.5 62.6 66.4 12% 31% 239.9 196.7 22%
Refined production
Platinum (000 troy oz) 556.2 572.7 502.6 722.2 684.1 (3)% (19)% 1,631.5 1,789.7 (9)%
Palladium (000 troy oz) 321.5 366.7 319.8 491.4 450.6 (12)% (29)% 1,008.0 1,177.0 (14)%
Rhodium (000 troy oz) 65.2 73.8 62.5 87.4 79.4 (12)% (18)% 201.5 235.8 (15)%
Gold (000 troy oz) 27.4 27.3 22.9 30.3 31.1 0% (12)% 77.6 85.0 (9)%
Nickel (tonnes) 5,600 5,700 5,100 7,800 7,000 (2)% (20)% 16,400 18,200 (10)%
Copper (tonnes) 2,900 4,000 3,200 4,700 4,300 (28)% (33)% 10,100 11,000 (8)%
4E Head grade
(g/tonne milled)(3) 3.58 3.60 3.45 3.53 3.44 (1)% 4% 3.51 3.44 2%
Platinum sales volumes
(000 troy oz)(4) 530.1 636.4 480.8 721.7 663.6 (17)% (20)% 1,647.3 1,782.9 (8)%
Palladium sales volumes
(000 troy oz)(4) 324.3 405.3 328.2 473.5 462.0 (20)% (30)% 1,057.8 1,098.2 (4)%
Platinum third party sales
volumes (000 troy oz)(5) 26.9 45.8 19.8 - - (41)% - 92.5 - -
Palladium third party sales
volumes (000 troy oz)(5) 55.0 45.0 8.0 - - 22% - 108.0 - -
(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum Group Metals 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) Associates are Platinum Group Metals' 33% interest in BRPM and, also in 2017, its 49% interest in Bokoni, which was placed on care and maintenance in Q3 2017.
(3) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
(4) Sales from own mined and purchased concentrate, excludes refined metal purchased from third parties.
(5) Relates to sales of metal not produced by Anglo American operations.
IRON ORE
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Iron Ore 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Kumba 000 t 10,508 11,486 (9)% 11,572 (9)% 32,936 33,340 (1)%
Minas-Rio(1) 000 t - 4,171 - 106 - 3,155 12,837 (75)%
(1) Wet basis.
Kumba - Iron ore production volumes decreased by 9% to 10.5 million tonnes, as planned, following rail
constraints in H1 2018, and a small decrease in plant yields as Kumba produced higher quality products to
maximise the value of tonnes railed to port.
Sishen's production decreased by 10% to 7 million tonnes, while waste movement increased by 7% to
45 million tonnes (Q3 2017: 42 million tonnes).
Kolomela's production decreased by 6% to 3.5 million tonnes of ore, while waste movement remained flat at
16 million tonnes.
Export sales decreased by 10% to 9.7 million tonnes due to the scheduled refurbishment of a ship loader at
the Saldanha Port that reduced loading capacity during the quarter. Total finished product stocks increased
from 6.2 million tonnes at 30 June 2018 to 6.6 million tonnes at 30 September 2018, representing ~$175 million
of working capital.
Minas-Rio - As previously indicated, there was no production in Q3 2018 (Q3 2017: 4.2 million tonnes) as a
result of the suspension of operations since March 2018 following two leaks in the iron ore slurry pipeline.
The detailed pipeline inspection work is on track, as well as the precautionary replacement of a 4 kilometre
section of the pipeline where the leaks occurred. Both the inspection and replacement work are expected to
be completed in Q4 2018, followed by the restart of the operation, subject to required clearance from the
authorities. There is no change to the expected earnings impact of the pipeline incident from the guidance
previously provided, with a 2018 loss of $300-$400 million in EBITDA.
Full Year Guidance
Full year production guidance for Kumba is unchanged at 43-44 million tonnes. Waste guidance for 2018 is
unchanged at 170-180 million tonnes for Sishen and 55-57 million tonnes for Kolomela.
Full year production guidance for Minas-Rio is unchanged at 3 million tonnes, reflecting production delivered
to date in 2018.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Iron Ore (tonnes) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Kumba production 10,508,400 11,572,000 10,855,100 11,642,600 11,485,700 (9)% (9)% 32,935,500 33,339,900 (1)%
Lump 7,159,800 7,889,600 7,243,500 7,719,100 7,609,200 (9)% (6)% 22,292,900 22,092,200 1%
Fines 3,348,600 3,682,400 3,611,600 3,923,500 3,876,500 (9)% (14)% 10,642,600 11,247,700 (5)%
Kumba production by mine
Sishen 7,030,600 7,930,300 7,324,600 7,782,300 7,786,100 (11)% (10)% 22,285,500 23,336,900 (5)%
Kolomela 3,477,800 3,641,700 3,530,500 3,860,300 3,699,600 (5)% (6)% 10,650,000 10,003,000 6%
Kumba sales volumes
Export iron ore 9,736,700 9,560,100 9,945,700 11,354,800 10,783,200 2% (10)% 29,242,500 30,259,800 (3)%
Domestic iron ore 755,600 781,900 885,400 875,700 644,100 (3)% 17% 2,422,900 2,401,400 1%
Minas-Rio production
Pellet feed (wet basis) - 105,800 3,049,400 3,949,900 4,171,500 - - 3,155,200 12,837,300 (75)%
Minas-Rio sales volumes
Export - pellet feed (wet
basis) - 320,800 2,896,100 4,140,700 3,739,800 - - 3,216,800 12,367,300 (74)%
COAL
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Coal(1) 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Metallurgical Coal (Australia) 000 t 5,382 5,532 (3)% 5,262 2% 16,183 14,737 10%
Export Thermal Coal
(Australia) 000 t 455 421 8% 290 57% 954 1,205 (21)%
Export Thermal Coal
(South Africa)(2) 000 t 5,054 4,352 16% 4,440 14% 13,822 13,945 (1)%
Export Thermal Coal
(Colombia) 000 t 2,658 2,497 6% 2,762 (4)% 7,863 7,728 2%
Domestic Thermal Coal
(South Africa) 000 t 2,650 8,367 (68)% 2,780 (5)% 10,400 24,110 (57)%
(1) Anglo American's attributable share of production.
(2) Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.
Metallurgical Coal - Export metallurgical coal production decreased by 3% to 5.4 million tonnes, with the
Grosvenor ramp up being offset by a longwall move at Moranbah, anticipated challenging geological conditions
at Grasstree and lower production at Dawson.
Thermal Coal South Africa - Export thermal coal production increased by 16% to 5.1 million tonnes, following
operational improvements in the quarter and the impact of a 100-hour safety stoppage in Q3 2017, partly offset
by conveyor issues at Zibulo.
Domestic thermal coal production decreased by 68% to 2.7 million tonnes due to the completion of the sale of
the Eskom-tied operations (New Vaal, New Denmark and Kriel) to Seriti on 1 March 2018.
Thermal Coal Colombia - Attributable export thermal coal production from Cerrej�n increased by 6% to
2.7 million tonnes.
Full Year Guidance
Full year production guidance for Metallurgical Coal is unchanged at 20-22 million tonnes.
Full year production guidance for Export Thermal Coal is unchanged from Q2 at 28-30 million tonnes.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Coal, by product (tonnes)(1) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Metallurgical Coal (Australia) 5,382,300 5,261,900 5,539,100 4,923,900 5,531,500 2% (3)% 16,183,300 14,737,400 10%
Hard Coking Coal 4,545,800 4,534,800 4,853,200 4,300,300 4,696,200 - (3)% 13,933,800 12,680,500 10%
PCI / SSCC 836,500 727,100 685,900 623,600 835,300 15% - 2,249,500 2,056,900 9%
Thermal Coal 10,816,800 10,271,300 11,950,300 15,172,700 15,637,100 5% (31)% 33,038,400 46,987,500 (30)%
Export (Australia) 455,100 289,900 208,700 408,600 421,400 57% 8% 953,700 1,205,100 (21)%
Export (South Africa)(2) 5,054,400 4,439,600 4,327,500 4,647,800 4,352,000 14% 16% 13,821,500 13,944,700 (1)%
Export (Colombia) 2,657,600 2,761,500 2,444,300 2,913,600 2,496,700 (4)% 6% 7,863,400 7,728,000 2%
Domestic (South Africa) 2,649,700 2,780,300 4,969,800 7,202,700 8,367,000 (5)% (68)% 10,399,800 24,109,700 (57)%
Total coal production 16,199,100 15,533,200 17,489,400 20,096,600 21,168,600 4% (23)% 49,221,700 61,725,000 (20)%
Sales volumes
Metallurgical Coal (Australia) 5,442,800 5,094,500 5,632,900 5,323,600 5,341,700 7% 2% 16,170,200 14,446,900 12%
Hard Coking Coal 4,834,100 4,402,800 4,885,500 4,653,000 4,707,600 10% 3% 14,122,500 12,834,400 10%
PCI / SSCC 608,700 691,700 747,400 670,600 634,100 (12)% (4)% 2,047,700 1,612,500 27%
Thermal Coal 11,782,900 12,904,300 14,227,800 17,079,500 18,892,600 (9)% (38)% 38,914,800 53,556,200 (27)%
Export (Australia) 331,600 357,800 293,800 466,900 468,500 (7)% (29)% 983,100 1,364,500 (28)%
Export (South Africa)(2) 3,679,600 4,092,700 4,615,700 4,843,500 4,921,200 (10)% (25)% 12,387,900 13,765,300 (10)%
Export (Colombia) 2,589,100 2,762,900 2,480,200 2,619,400 2,517,500 (6)% 3% 7,832,200 7,934,300 (1)%
Domestic (South Africa) 3,305,800 3,146,500 4,711,000 7,370,300 8,549,300 5% (61)% 11,163,300 24,652,800 (55)%
Third party sales 1,876,800 2,544,400 2,127,100 1,779,400 2,436,100 (26)% (23)% 6,548,300 5,839,300 12%
(1) Anglo American's attributable share of production and sales.
(2) Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Coal, by operation (tonnes)(1) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Metallurgical Coal (Australia) 5,382,300 5,261,900 5,539,100 4,923,900 5,531,500 2% (3)% 16,183,300 14,737,400 10%
Moranbah North 1,275,800 1,064,300 1,936,700 1,979,800 1,316,800 20% (3)% 4,276,800 3,421,500 25%
Grosvenor 1,239,800 1,342,000 825,600 161,300 1,012,500 (8)% 22% 3,407,400 1,905,900 79%
Capcoal (incl. Grasstree) 1,564,700 1,324,200 1,396,000 1,604,900 1,712,100 18% (9)% 4,284,900 4,881,500 (12)%
Dawson 478,700 714,100 534,500 319,700 670,300 (33)% (29)% 1,727,300 2,163,000 (20)%
Jellinbah 823,300 817,300 846,300 858,200 819,800 1% - 2,486,900 2,365,500 5%
Thermal Coal (Australia) 455,100 289,900 208,700 408,600 421,400 57% 8% 953,700 1,205,100 (21)%
Capcoal (incl. Grasstree) 71,600 66,000 65,500 95,400 62,000 8% 15% 203,100 186,900 9%
Dawson 357,700 193,400 114,500 310,800 342,500 85% 4% 665,600 988,700 (33)%
Jellinbah 25,800 30,500 28,700 2,400 16,900 (15)% 53% 85,000 29,500 188%
Total Australia production 5,837,400 5,551,800 5,747,800 5,332,500 5,952,900 5% (2)% 17,137,000 15,942,500 7%
Thermal (South Africa)(2)
Goedehoop 1,527,000 1,185,900 1,138,000 1,114,300 1,085,400 29% 41% 3,850,800 3,538,400 9%
Greenside 1,264,300 941,500 1,043,600 1,041,200 906,700 34% 39% 3,249,400 2,789,200 16%
Zibulo 1,468,700 1,553,500 1,673,100 1,587,900 1,534,600 (5)% (4)% 4,695,300 4,646,900 1%
Khwezela 1,468,800 1,297,200 1,244,000 1,371,300 1,265,300 13% 16% 4,010,000 4,336,300 (8)%
Mafube 402,700 172,100 105,600 350,900 361,200 134% 11% 680,500 1,210,300 (44)%
Other(3) 604,100 1,076,700 - - - (44)% n/a 1,680,700 - n/a
New Vaal(4) - - 1,560,500 3,218,500 4,354,300 n/a n/a 1,560,500 11,890,500 (87)%
New Denmark(4) - - 560,100 963,300 673,700 n/a n/a 560,200 2,397,600 (77)%
Kriel(4) - - 704,900 1,237,400 1,392,700 n/a n/a 704,900 4,151,400 (83)%
Isibonelo 968,500 993,000 1,267,500 965,700 1,145,100 (2)% (15)% 3,229,000 3,093,800 4%
Total South Africa production 7,704,100 7,219,900 9,297,300 11,850,500 12,719,000 7% (39)% 24,221,300 38,054,400 (36)%
Colombia (Cerrej�n) 2,657,600 2,761,500 2,444,300 2,913,600 2,496,700 (4)% 6% 7,863,400 7,728,000 2%
Total Coal production 16,199,100 15,533,200 17,489,400 20,096,600 21,168,600 4% (23)% 49,221,700 61,725,000 (20)%
(1) Anglo American's attributable share of production.
(2) Export and domestic production; New Vaal, New Denmark, Kriel and Isibonelo produce exclusively domestic volumes.
(3) Other production comes from the recovery of saleable product from mineral residue deposits.
(4) The sale of the Eskom-tied operations was completed on 1 March 2018.
NICKEL
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Nickel 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Nickel t 11,500 11,200 3% 10,800 6% 30,900 32,400 (5%)
Nickel output increased by 3% to 11,500 tonnes driven by enhanced stability arising from operational
improvements implemented at Barro Alto during 2018.
Full year production guidance is unchanged at 42,000-44,000 tonnes.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Nickel(1) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Barro Alto
Ore mined 1,640,400 1,208,800 1,001,500 978,600 1,895,000 36% (13%) 3,850,700 5,294,200 (27%)
Ore processed 620,900 588,200 447,600 591,500 578,200 6% 7% 1,656,800 1,717,800 (4%)
Ore grade processed - %Ni 1.73 1.67 1.68 1.71 1.72 4% 0% 1.69 1.71 (1%)
Production 9,400 8,600 6,500 9,100 8,900 9% 6% 24,500 25,800 (5%)
Codemin
Ore mined - - - - - - - - 7,500 -
Ore processed 139,100 150,600 141,100 147,200 152,200 (8%) (9%) 430,900 439,800 (2%)
Ore grade processed - %Ni 1.69 1.62 1.66 1.70 1.70 4% (1%) 1.65 1.68 (2%)
Production 2,100 2,200 2,100 2,300 2,300 (5%) (9%) 6,400 6,600 (3%)
Total Nickel segment nickel production 11,500 10,800 8,600 11,400 11,200 6% 3% 30,900 32,400 (5%)
Sales volumes 10,400 10,800 9,200 10,900 11,300 (4%) (8%) 30,500 32,100 (5%)
(1) Excludes nickel production from the Platinum Group Metals business unit.
MANGANESE
Q3 2018 Q3 2018 YTD 2018
Q3 Q3 vs. Q2 vs. YTD YTD vs.
Manganese 2018 2017 Q3 2017 2018 Q2 2018 2018 2017 YTD 2017
Manganese ore (1) 000 t 888 840 6% 866 2% 2,635 2,506 5%
Manganese alloys(1)(2) 000 t 35 37 (7)% 43 (19)% 119 108 10%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore - Manganese ore production increased by 6% to 887,600 tonnes, a record production quarter.
Manganese alloy - Manganese alloy production decreased by 7% to 34,800 tonnes due to a planned
maintenance shutdown of the furnace during the quarter.
Q3 2018 Q3 2018 YTD 2018
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
Manganese (tonnes) 2018 2018 2018 2017 2017 Q2 2018 Q3 2017 2018 2017 YTD 2017
Samancor
Manganese ore(1) 887,600 866,200 880,800 979,600 839,500 2% 6% 2,634,600 2,505,900 5%
Manganese alloys(1)(2) 34,800 42,800 41,200 41,100 37,300 (19)% (7)% 118,800 108,100 10%
Samancor sales volumes
Manganese ore 840,400 910,100 824,200 874,900 846,900 (8)% (1)% 2,574,700 2,570,500 0%
Manganese alloys 30,400 48,400 38,300 37,300 33,500 (37)% (9)% 117,100 105,100 11%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for the third quarter increased by 25% to $74 million compared to the
same period of 2017. Exploration expenditure increased by 24% to $36 million driven by new greenfield
opportunities in Brazil (copper-gold), Ecuador (copper-gold) and Canada (diamonds) as well as near-mine
drilling. Evaluation expenditure increased by 27% to $38 million driven by increased work at Los Bronces.
CORPORATE ACTIVITY AND OTHER ITEMS
There were a number of non-operating cashflows that occurred during the quarter or are anticipated prior to
year-end. These include:
- Proceeds of $851 million from the syndication of Quellaveco (that will be used to fund the project's capital
expenditure during 2018);
- De Beers' acquisition of Peregrine Diamonds for $82 million; and
- the expected completion in Q4 2018 of the acquisition of Glencore's share of the Mototolo platinum joint
venture, with an up-front cash payment of approximately $59 million.
In addition, the Group's purchase of shares for employee share schemes continues.
Working capital has built up in the quarter and is expected to unwind partially over the remainder of 2018 and
be cleared during the first half of 2019. The inventory build-up is driven by:
- strong mining performance and lower refined volumes due to scheduled smelter rebuilds and maintenance
at PGMs;
- the re-phasing of sales of low value diamonds at De Beers; and
- rail infrastructure constraints at Kumba Iron Ore.
NOTES
- This Production Report for the third quarter ended 30 September 2018 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in 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.
- Please refer to page 14 for information on 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 Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
South Africa Emma Waterworth
Pranill Ramchander emma.waterworth@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8574
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical
facts included in this announcement, including, without limitation, those regarding Anglo American's financial
position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management
for future operations (including development plans and objectives relating to Anglo American's products,
production forecasts and Ore Reserves and Mineral Resources), are forward-looking statements. By their
nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Anglo American, or industry results, to
be materially different from any future results, performance or achievements expressed or implied by such
forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American's present
and future business strategies and the environment in which Anglo American will operate in the future.
Important factors that could cause Anglo American's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others, levels of actual production
during any period, levels of global demand and commodity market prices, mineral resource exploration and
development capabilities, recovery rates and other operational capabilities, the availability of mining and
processing equipment, the ability to produce and transport products profitably, the availability of transportation
infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the
availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant
areas of the world, the actions of competitors, activities by governmental authorities such as permitting and
changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo
American operates, conflicts over land and resource ownership rights and such other risk factors identified in
Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in
light of such risk factors and undue reliance should not be placed on forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Anglo American expressly
disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and
Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial
Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa,
the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other
applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained
herein to reflect any change in Anglo American's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Notes to editors:
Anglo American is a global diversified mining business and our products are the essential ingredients in almost
every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped
resources provides the metals and minerals to meet the growing consumer-driven demands of the world's
developed and maturing economies. With our people at the heart of our business, we use innovative practices
and the latest technologies to discover new resources and mine, process, move and market our products to
our customers around the world.
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 sustainable value that those resources represent for our
shareholders, the communities and countries in which we operate and for society at large. Anglo American is
re-imagining mining to improve people's lives.
http://www.angloamerican.com
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary listings on the
Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
23 October 2018
Date: 23/10/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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