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Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street London EC1N 6RA United Kingdom
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
24 October 2023
Production Report for the third quarter ended 30 September 2023
Duncan Wanblad, Chief Executive of Anglo American, said: "Production in the third quarter overall was consistent with
the same period in 2022. A 42% increase in copper production as Quellaveco's contribution ramps up was offset
primarily by De Beers, as Venetia transitions to underground operations, and by performance at Moranbah and the
Grosvenor ramp-up at the underground Steelmaking Coal operations.
"Our focus is on delivering our full year production guidance in line with a planned stronger second half of the year. Our
production volumes increased by 4%(1) quarter-on-quarter, reflecting a step-up from our Steelmaking Coal operations
driven by Aquila and at Grosvenor following the Q2 longwall move, operational improvements in the PGMs business and
a progressive increase in volumes from Quellaveco. This was partially offset by planned maintenance programs at some
operations and a planned reduction from Venetia, which continues to transition to underground operations. Copper
production from Chile decreased due to ongoing ore hardness and an electrical substation fire at Los Bronces, resulting
in a minor revision to guidance for our Chile operations. We are on track to deliver our full year guidance across all other
products."
Q3 2023 highlights
- Copper production increased by 42%, reflecting the progressive increase in production from Quellaveco in Peru, while
production from our operations in Chile decreased by 4%.
- Production from our Platinum Group Metals (PGMs) operations was broadly flat despite planned mining in a lower
grade area at Mogalakwena.
- Iron ore production decreased by 4%, principally driven by planned plant maintenance at Minas-Rio.
- Nickel production decreased by 7%, mainly reflecting the impact of lower grades.
- Steelmaking coal production decreased by 21%, reflecting challenging strata conditions at Moranbah and the ramp-
up of Grosvenor during July following the longwall move in Q2.
- Rough diamond production decreased by 23%, primarily due to the planned reduction as Venetia transitions to
underground operations.
Production Q3 2023 Q3 2022 % vs. Q3 2022 YTD 2023 YTD 2022 % vs. YTD 2022
Copper (kt)(2) 209 147 42% 596 420 42%
Nickel (kt)(3) 9.3 10.0 (7)% 28.9 29.6 (2)%
Platinum group metals (koz)(4) 1,030 1,046 (2)% 2,874 3,034 (5)%
Diamonds (Mct)(5) 7.4 9.6 (23)% 23.9 26.5 (10)%
Iron ore (Mt)(6) 15.4 16.1 (4)% 46.1 43.6 6%
Steelmaking coal (Mt) 4.4 5.5 (21)% 11.2 10.4 9%
Manganese ore (kt) 1,012 973 4% 2,823 2,756 2%
(1) Total production across Anglo American's products is calculated on a copper equivalent basis, including the equity share of De Beers' production and
using long-term consensus parameters. Copper equivalent production decreased by 1% compared to Q3 2022.
(2) Contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the
Platinum Group Metals business).
(3) Reflects nickel production from the Nickel operations in Brazil only (excludes 5.4 kt of Q3 2023 nickel production from the Platinum Group Metals business).
(4) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of
concentrate.
(5) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint operation which is on an attributable 51% basis.
(6) Wet basis.
Production and unit cost guidance summary
2023 production guidance 2023 unit cost guidance(1)
Copper(2) 830-870 kt c.166 c/lb
(previously 840-930 kt)
Nickel(3) 38-40 kt c.560 c/lb
Platinum Group Metals(4) 3.6-4.0 Moz c.$1,000/oz
Diamonds(5) 30-33 Mct c.$75/ct
Iron Ore(6) 57-61 Mt c.$39/t
Steelmaking Coal(7) 16-19 Mt c.$105/t
(1) Unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for Q4 2023 costs: ~900 CLP:USD, ~3.9 PEN:USD,
~5.0 BRL:USD, ~19 ZAR:USD, ~1.6 AUD:USD (previously ~800 CLP:USD, ~3.7 PEN:USD, ~4.8 BRL:USD, ~18 ZAR:USD, ~1.5 AUD:USD).
(2) Copper business only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: c.520 kt (previously 530-580 kt) and
Peru: 310-350 kt. Unit cost for Chile: c.205 c/lb and Peru: c.100 c/lb.
(3) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis as a co-product from the PGM operations.
(4) 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs
for own mined and purchased concentrate, refer to FY2022 results presentation slide 42 for indicative split of own mined volumes. 2023 metal in concentrate
production is expected to be 1.6-1.8 Moz of platinum, 1.2-1.3 Moz of palladium and 0.8-0.9 Moz of other PGMs and gold. 5E + gold refined production is
expected to be 3.6-4.0 Moz, subject to the impact of Eskom load-curtailment. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.
(5) Production on a 100% basis, except for the Gahcho Kue joint operation, which is on an attributable 51% basis. Venetia continues to transition to underground
operations. Unit cost is based on De Beers' share of production.
(6) Wet basis. Total iron ore is the sum of operations at Kumba in South Africa and Minas-Rio in Brazil. Kumba: 35-37 Mt and Minas-Rio: 22-24 Mt. Kumba production
is subject to the third-party rail and port performance. Unit cost for Kumba: c.$43/t and Minas-Rio: c.$33/t.
(7) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties and study costs.
Realised prices
Q3 YTD 2023 vs.
Q3 YTD 2023 Q3 YTD 2022 Q3 YTD 2022
Copper (USc/lb)(1) 387 377 3%
Copper Chile (USc/lb)(2) 388 377 3%
Copper Peru (USc/lb) 386 341 13%
Nickel (US$/lb) 8.29 10.68 (22)%
Platinum Group Metals
Platinum (US$/oz)(3) 981 937 5%
Palladium (US$/oz)(3) 1,437 2,107 (32)%
Rhodium (US$/oz)(3) 7,366 16,139 (54)%
Basket price (US$/PGM oz)(4) 1,766 2,627 (33)%
Iron Ore - FOB prices(5) 108 115 (6)%
Kumba Export (US$/wmt)(6) 110 115 (4)%
Minas-Rio (US$/wmt)(7) 106 114 (7)%
Steelmaking Coal - HCC (US$/t)(8) 264 324 (19)%
Steelmaking Coal - PCI (US$/t)(8) 215 279 (23)%
(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.
(2) Realised price for Copper Chile excludes third-party sales volumes.
(3) Realised price excludes trading.
(4) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals sold (PGMs, base metals and other metals)
excluding trading, per PGM 5E + gold ounces sold (own mined and purchased concentrate) excluding trading.
(5) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.
(6) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The realised prices could differ to Kumba's
stand-alone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $112/t (Q3 YTD 2022: $117/t),
higher than the dry 62% Fe benchmark price of $102/t (FOB South Africa, adjusted for freight).
(7) Average realised export basket price (FOB Acu) (wet basis as product is shipped with ~9% moisture).
(8) Weighted average coal sales price achieved at managed operations. Australian thermal coal by-product for Q3 YTD 2023, decreased by 50% to $156/t
(Q3 YTD 2022: $309/t).
Copper
Copper(1) (tonnes) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Copper 209,100 146,800 42% 209,100 0% 596,300 420,200 42%
Copper Chile 121,600 126,500 (4)% 130,800 (7)% 371,000 399,900 (7)%
Copper Peru 87,500 20,300 n/a 78,300 12% 225,300 20,300 n/a
(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper
production from the Platinum Group Metals business).
Copper production increased by 42% to 209,100 tonnes, due to the ramp-up of production from Quellaveco in Peru,
while Chile's production decreased by 4%.
Chile - Copper production decreased by 4% to 121,600 tonnes, driven by lower grade and throughput at Los Bronces,
partially offset by planned higher grade at Collahuasi.
Production from Los Bronces decreased by 20% to 45,800 tonnes, primarily driven by lower grades (0.49% vs. 0.58%)
and throughput, due to a combination of continued higher ore hardness and an electrical substation fire that interrupted
plant facilities' power supply for 16 days. The current unfavourable ore characteristics, including lower grade and higher
ore hardness, in the current mining area will continue to impact operations until the next phase of the mine is accessed.
At Collahuasi, attributable production increased by 9% to 66,100 tonnes, driven by planned higher grades (1.19% vs.
1.08%) as well as higher throughput following the plant maintenance in Q2 2023.
Production from El Soldado increased by 5% to 9,700 tonnes, reflecting the benefit of mining in a higher grade area.
However, this area had a known existing geotechnical fault line in the wall that was exacerbated by record levels of rain,
with the production impact partially mitigated by processing lower grade ore from stockpiles. Mining operations have
since resumed with a revised mine plan that aims to mitigate the ongoing risk of the geotechnical fault line.
The recent heavy rainfall in Chile´s central zone will reduce the need for alternative sources of water over the next couple
of quarters. Towards the end of 2025, more than 45% of Los Bronces' needs will be met through a desalinated water supply.
The year to date average realised price of 388 c/lb includes 146,000 tonnes of copper provisionally priced on
30 September at an average of 375 c/lb.
Peru - Quellaveco produced 87,500 tonnes, reflecting the progressive ramp-up in production volumes, with the plant
achieving throughput beyond nameplate capacity more frequently during the quarter as the tailings dam develops
according to plan.
The year to date average realised price of 386 c/lb includes 109,000 tonnes of copper provisionally priced on
30 September at an average of 375 c/lb.
2023 Guidance
Production guidance for 2023 is revised to 830,000-870,000 tonnes (previously 840,000-930,000 tonnes) (Chile's
guidance is revised to c.520,000 tonnes (previously 530,000-580,000 tonnes) due to unfavourable ore characteristics
and an electrical substation fire at Los Bronces, as well as the impact of a geotechnical fault line on El Soldado's
production; Peru unchanged at 310,000-350,000 tonnes).
Unit cost guidance for 2023 is unchanged at c.166 c/lb (1) (Chile c.205 c/lb(1); Peru c.100 c/lb(1)).
(1) FX rate assumption for Q4 2023 costs of ~900 CLP:USD and ~3.9 PEN:USD (previously ~800 CLP:USD and ~3.7 PEN:USD).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Copper(1) (tonnes) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Total copper production 209,100 209,100 178,100 244,300 146,800 42% 0% 596,300 420,200 42%
Total copper sales volumes 211,700 203,100 185,900 242,700 132,900 59% 4% 600,700 397,800 51%
Copper Chile
Los Bronces mine(2)
Ore mined 11,209,200 13,729,100 12,126,800 13,133,900 11,389,900 (2)% (18)% 37,065,100 33,622,600 10%
Ore processed - Sulphide 9,695,800 12,462,800 10,042,400 12,959,300 9,848,900 (2)% (22)% 32,201,000 32,984,300 (2)%
Ore grade processed -
Sulphide (% TCu)(3) 0.49 0.51 0.52 0.69 0.58 (16)% (4)% 0.51 0.59 (14)%
Production - Copper in
concentrate 38,600 52,800 44,000 74,100 46,400 (17)% (27)% 135,400 157,400 (14)%
Production - Copper cathode 7,200 7,000 8,700 10,200 10,500 (31)% 3% 22,900 29,200 (22)%
Total production 45,800 59,800 52,700 84,300 56,900 (20)% (23)% 158,300 186,600 (15)%
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 15,949,200 15,232,600 13,503,400 17,975,000 20,217,100 (21)% 5% 44,685,200 64,247,600 (30)%
Ore processed - Sulphide 14,502,000 13,814,300 14,092,200 14,797,300 14,339,600 1% 5% 42,408,500 42,519,100 0%
Ore grade processed -
Sulphide (% TCu)(3) 1.19 1.09 1.05 1.08 1.08 10% 9% 1.11 1.12 (1)%
Production - Copper in
concentrate 150,100 130,200 129,800 142,900 137,400 9% 15% 410,100 427,800 (4)%
Anglo American's 44% share of
copper production for Collahuasi 66,100 57,300 57,100 62,900 60,400 9% 15% 180,500 188,200 (4)%
El Soldado mine(2)
Ore mined 633,000 2,930,200 1,903,000 3,277,100 1,942,400 (67)% (78)% 5,466,200 3,502,200 56%
Ore processed - Sulphide 2,026,800 1,781,400 1,465,000 1,898,200 1,926,500 5% 14% 5,273,200 5,650,300 (7)%
Ore grade processed -
Sulphide (% TCu)(3) 0.60 0.94 0.72 0.95 0.59 2% (36)% 0.75 0.55 36%
Production - Copper in
concentrate 9,700 13,700 8,800 15,100 9,200 5% (29)% 32,200 25,100 28%
Chagres smelter(2)
Ore smelted(4) 28,600 27,800 29,000 23,400 25,700 11% 3% 85,400 77,200 11%
Production 27,700 27,100 27,900 22,500 25,000 11% 2% 82,700 75,000 10%
Total copper production(5) 121,600 130,800 118,600 162,300 126,500 (4)% (7)% 371,000 399,900 (7)%
Total payable copper production 117,000 125,500 114,100 156,000 121,600 (4)% (7)% 356,600 384,200 (7)%
Total copper sales volumes 120,300 120,700 116,900 170,500 127,600 (6)% 0% 357,900 392,500 (9)%
Total payable sales volumes 115,600 117,100 112,300 164,000 122,200 (5)% (1)% 345,000 376,600 (8)%
Third-party sales(6) 126,600 91,400 86,400 79,500 126,600 0% 39% 304,400 342,800 (11)%
Copper Peru
Quellaveco mine(7)
Ore mined 9,900,400 11,600,200 7,177,900 11,063,300 8,487,000 17% (15)% 28,678,500 16,367,700 75%
Ore processed - Sulphide 11,240,600 9,660,800 7,042,200 8,851,800 2,867,600 n/a 16% 27,943,600 2,867,600 n/a
Ore grade processed -
Sulphide (% TCu)(3) 0.93 0.96 1.04 1.17 0.96 (3)% (3)% 0.97 0.96 1%
Total copper production 87,500 78,300 59,500 82,000 20,300 n/a 12% 225,300 20,300 n/a
Total payable copper production 84,600 75,700 57,500 79,300 19,600 n/a 12% 217,800 19,600 n/a
Total copper sales volumes 91,400 82,400 69,000 72,200 5,300 n/a 11% 242,800 5,300 n/a
Total payable sales volumes 88,300 79,500 66,700 69,700 5,100 n/a 11% 234,500 5,100 n/a
(1) Excludes copper production from the Platinum Group Metals business.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres smelter is 50.1%. Production is stated at 100% as Anglo American consolidates
these operations.
(3) TCu = total copper.
(4) Copper contained basis. Includes third-party concentrate. The Q1 and Q2 2023 ore smelted has been restated; H1 2023 was 56,800 tonnes.
(5) Total copper production includes Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
(7) Anglo American ownership interest of Quellaveco is 60%. Production is stated at 100% as Anglo American consolidates this operation.
Nickel
Nickel (tonnes) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Nickel 9,300 10,000 (7)% 9,900 (6)% 28,900 29,600 (2)%
Nickel production decreased by 7% to 9,300 tonnes, reflecting the impact of lower grades and planned maintenance at
Barro Alto, despite operational improvements at Codemin.
2023 Guidance
Production guidance for 2023 is unchanged at 38,000-40,000 tonnes.
Unit cost guidance for 2023 is unchanged at c.560 c/lb(1).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Nickel (tonnes) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Barro Alto
Ore mined 1,387,900 1,283,400 534,800 973,700 1,349,100 3% 8% 3,206,100 2,451,100 31%
Ore processed 559,800 650,700 631,900 570,600 589,000 (5)% (14)% 1,842,400 1,851,000 0%
Ore grade processed - %Ni 1.48 1.46 1.36 1.51 1.52 (3)% 1% 1.43 1.49 (4)%
Production 7,200 8,000 7,800 8,000 8,200 (12)% (10)% 23,000 24,700 (7)%
Codemin
Ore mined - - 27,800 800 - n/a n/a 27,800 - n/a
Ore processed 153,200 146,900 146,900 148,500 133,500 15% 4% 447,000 382,600 17%
Ore grade processed - %Ni 1.44 1.42 1.34 1.48 1.46 (1)% 1% 1.40 1.43 (2)%
Production 2,100 1,900 1,900 2,200 1,800 17% 11% 5,900 4,900 20%
Total nickel production(2) 9,300 9,900 9,700 10,200 10,000 (7)% (6)% 28,900 29,600 (2)%
Sales volumes 9,300 10,600 8,500 11,800 10,400 (11)% (12)% 28,400 27,200 4%
(1) FX rate assumption for Q4 2023 costs of ~5.0 BRL:USD (previously ~4.8 BRL:USD).
(2) Excludes nickel production from the Platinum Group Metals business.
Platinum Group Metals (PGMs)
PGMs (000 oz)(1) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Metal in concentrate production 1,030 1,046 (2)% 943 9% 2,874 3,034 (5)%
Own mined(2) 666 683 (3)% 613 9% 1,865 1,993 (6)%
Purchase of concentrate (POC)(3) 364 363 0% 330 10% 1,009 1,041 (3)%
Refined production(4) 910 995 (9)% 1,074 (15)% 2,610 2,954 (12)%
(1) Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Own mined production decreased by 3% to 665,800 ounces, due to lower production from Mogalakwena and Amandelbult.
Production at Mogalakwena decreased by 5% to 246,800 ounces, primarily due to mining in a planned lower grade area.
Production at Amandelbult decreased by 4% to 184,900 ounces, due to continued poor ground conditions. These were
partly offset by joint operations which increased production by 2% to 97,500 ounces, mainly due to improved grade at Modikwa.
Purchase of concentrate was flat at 363,800 ounces.
Refined production
Refined production decreased by 9% to 909,700 ounces, primarily due to an unplanned municipal water stoppage at the
processing complex in Rustenburg and lower metal in concentrate production.
Eskom load-curtailment had a minimal impact on production for the quarter, with less than 5,000 ounces deferred for
future processing.
Sales
Sales volumes increased by 2%.
The year to date average realised basket price was $1,766/PGM ounce, reflecting lower market prices compared to the
same period in 2022.
2023 Guidance
Production guidance (metal in concentrate) for 2023 is unchanged at 3.6-4.0 million ounces(1). Refined production
guidance for 2023 is 3.6-4.0 million ounces, subject to the impact of Eskom load-curtailment.
Unit cost guidance for 2023 is unchanged at c.$1,000/PGM ounce(2).
(1) Metal in concentrate production is expected to be 1.6-1.8 million ounces of platinum, 1.2-1.3 million ounces of palladium and 0.8-0.9 million
ounces of other PGMs and gold; with own mined output accounting for ~65%.
(2) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD (previously ~18 ZAR:USD).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
M&C PGMs production (000 oz)(1) 1,029.6 943.1 901.2 990.4 1,046.1 (2)% 9% 2,873.9 3,033.6 (5)%
Own mined 665.8 612.7 586.0 656.6 683.2 (3)% 9% 1,864.5 1,992.6 (6)%
Mogalakwena 246.8 242.4 219.0 256.7 259.3 (5)% 2% 708.2 769.5 (8)%
Amandelbult 184.9 147.9 151.5 176.6 192.6 (4)% 25% 484.3 535.9 (10)%
Unki 60.5 59.0 62.5 52.6 59.9 1% 3% 182.0 179.5 1%
Mototolo 76.1 77.4 68.7 71.7 75.4 1% (2)% 222.2 218.2 2%
Joint operations(2) 97.5 86.0 84.3 99.0 96.0 2% 13% 267.8 289.5 (7)%
Purchase of concentrate 363.8 330.4 315.2 333.8 362.9 0% 10% 1,009.4 1,041.0 (3)%
Joint operations(2) 97.5 86.0 84.3 99.0 96.0 2% 13% 267.8 289.5 (7)%
Third parties 266.3 244.4 230.9 234.8 266.9 0% 9% 741.6 751.5 (1)%
Refined PGMs production (000 oz) (1)(3) 909.7 1,073.8 626.0 877.2 994.8 (9)% (15)% 2,609.5 2,953.9 (12)%
By metal:
Platinum 428.5 489.4 266.0 391.2 457.2 (6)% (12)% 1,183.9 1,391.7 (15)%
Palladium 285.5 352.6 230.5 278.5 317.1 (10)% (19)% 868.6 920.0 (6)%
Rhodium 57.1 68.4 38.8 51.7 64.8 (12)% (17)% 164.3 197.5 (17)%
Other PGMs and gold 138.6 163.4 90.7 155.8 155.7 (11)% (15)% 392.7 444.7 (12)%
Nickel (tonnes) 5,400 6,100 3,300 4,800 5,700 (5)% (11)% 14,800 16,500 (10)%
Tolled material (000 oz)(4) 159.8 139.6 146.1 173.1 151.3 6% 14% 445.5 449.5 (1)%
PGMs sales from production (000 oz) (1)(5) 951.8 1,108.7 698.6 883.4 933.5 2% (14)% 2,759.1 2,977.9 (7)%
Third-party PGMs sales (000 oz)(1)(6) 1,220.9 1,153.0 912.2 789.6 403.4 203% 6% 3,286.1 1,060.3 210%
4E head grade (g/t milled)(7) 3.29 3.15 3.11 3.19 3.33 (1)% 4% 3.18 3.30 (4)%
(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the
remaining 50% of production, which is presented under 'Purchase of concentrate'.
(3) Refined production excludes toll material.
(4) Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.
(5) PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.
(6) Relates to sales of metal not produced by Anglo American operations, and includes metal lending and borrowing activity.
(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to
variability.
De Beers
De Beers(1) (000 carats) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Botswana 5,837 6,647 (12)% 5,829 0% 18,565 18,352 1%
Namibia 530 531 0% 612 (13)% 1,761 1,547 14%
South Africa 365 1,651 (78)% 466 (22)% 1,570 4,567 (66)%
Canada 676 741 (9)% 683 (1)% 2,032 1,988 2%
Total carats recovered 7,408 9,570 (23)% 7,590 (2)% 23,928 26,454 (10)%
Rough diamond production decreased by 23% to 7.4 million carats, primarily due to the planned reduction in South
Africa as Venetia transitions to underground operations and begins the ramp-up of production, as well as planned
maintenance in Botswana.
In Botswana, production decreased by 12% to 5.8 million carats, driven by lower throughput at Orapa due to planned
maintenance.
Production in Namibia was flat.
In South Africa, production decreased by 78% to 0.4 million carats, due to the planned end of Venetia's open pit
operations in December 2022. Venetia will continue to process lower grade surface stockpiles as the underground
operations ramp-up production over the next few years.
Production in Canada decreased by 9% to 0.7 million carats, due to planned treatment of lower grade ore.
As a result of the uncertain macro-economic environment and high levels of diamond inventory in the midstream,
Sightholders took a cautious approach to their purchasing during the quarter. Rough diamond sales totalled 7.4 million
carats (6.7 million carats on a consolidated basis)(2) from three Sights, compared with 9.1 million carats (8.5 million carats
on a consolidated basis)(2) from three Sights in Q3 2022, and 7.6 million carats (6.4 million carats on a consolidated
basis)(2) from two Sights in Q2 2023.
Going forward, De Beers will continue to support its Sightholders to help re-establish equilibrium between wholesale
supply and demand by providing full flexibility for rough diamond allocations in Sights 9 and 10 of 2023.
2023 Guidance
Production guidance(1) for 2023 is unchanged at 30-33 million carats (100% basis).
Unit cost guidance for 2023 is unchanged at c.$75/carat(3).
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint operation which is on an attributable 51% basis.
(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(3) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD (previously ~18 ZAR:USD).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
De Beers(1) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng 3,400 2,955 3,782 3,126 3,567 (5)% 15% 10,137 10,319 (2)%
Orapa(2) 2,437 2,874 3,117 2,664 3,080 (21)% (15)% 8,428 8,033 5%
Total Botswana 5,837 5,829 6,899 5,790 6,647 (12)% 0% 18,565 18,352 1%
Debmarine Namibia 423 503 498 439 423 0% (16)% 1,424 1,286 11%
Namdeb (land operations) 107 109 121 151 108 (1)% (2)% 337 261 29%
Total Namibia 530 612 619 590 531 0% (13)% 1,761 1,547 14%
Venetia 365 466 739 948 1,651 (78)% (22)% 1,570 4,567 (66)%
Total South Africa 365 466 739 948 1,651 (78)% (22)% 1,570 4,567 (66)%
Gahcho Kue (51% basis) 676 683 673 827 741 (9)% (1)% 2,032 1,988 2%
Total Canada 676 683 673 827 741 (9)% (1)% 2,032 1,988 2%
Total carats recovered 7,408 7,590 8,930 8,155 9,570 (23)% (2)% 23,928 26,454 (10)%
Sales volumes
Total sales volume (100%) (Mct)(3) 7.4 7.6 9.7 7.3 9.1 (19)% (3)% 24.7 26.4 (6)%
Consolidated sales volume (Mct)(3) 6.7 6.4 8.9 6.6 8.5 (21)% 5% 22.0 23.8 (8)%
Number of Sights (sales cycles) 3 2 3 2 3 8 8
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint operation which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
Iron Ore
Iron Ore (000 t) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Iron Ore 15,397 16,060 (4)% 15,647 (2)% 46,120 43,599 6%
Kumba(1) 9,736 9,977 (2)% 9,320 4% 28,481 27,738 3%
Minas-Rio(2) 5,661 6,083 (7)% 6,327 (11)% 17,639 15,861 11%
(1) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.
(2) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.
Iron ore production decreased by 4% to 15.4 million tonnes, primarily due to a 7% decrease at Minas-Rio, driven by
planned plant maintenance and a 2% decrease at Kumba.
Kumba - Total production decreased by 2% to 9.7 million tonnes, driven by a 6% decrease in Sishen's production to 6.7
million tonnes due to high levels of finished stock at the mine as a result of third-party rail constraints. This was partially
offset by a 6% increase at Kolomela to 3.1 million tonnes, as a result of improved operational stability and plant feedstock.
Total sales decreased by 11% to 8.9 million tonnes(1) primarily due to equipment failures at the port, operated by the
third-party Transnet, which impacted ship loading as well as weather-related delays.
Total finished stock increased to 9.0 million tonnes(1), with stock at the port increasing to 1.8 million tonnes(1) (Q2 2023:
0.6 million tonnes(1)), which will support an efficient ramp-up in operations at the port following the Transnet annual shut-
down for rail and port maintenance in October.
Kumba's iron (Fe) content averaged 63.5% (YTD 2022: 63.9%), while the average lump:fines ratio was 66:34 (YTD 2022: 66:34).
The year to date average realised price of $110/tonne(1) (FOB South Africa, wet basis) was 10% higher than the 62% Fe
benchmark price of $100/tonne (FOB South Africa, adjusted for freight and moisture), driven by the lump and Fe content
quality premiums that the Kumba products attract.
Minas-Rio - Production decreased by 7% to 5.7 million tonnes, driven by planned plant maintenance.
The year to date average realised price of $106/tonne (FOB Brazil, wet basis) was 7% higher than the Metal Bulletin 65
price of $99/tonne (FOB Brazil, adjusted for freight and moisture), driven by the premium for our high quality product,
including higher (~67%) Fe content.
2023 Guidance
Production guidance for 2023 is unchanged at 57-61 million tonnes (Kumba 35-37 million tonnes; Minas-Rio 22-24 million tonnes).
Kumba is subject to third-party rail and port performance.
Unit cost guidance for 2023 is unchanged at c.$39/tonne(2) (Kumba c.$43/tonne(2); Minas-Rio c.$33/tonne(2)).
(1) Sales volumes, stock and realised price are reported on a wet basis and could differ to Kumba's stand-alone results due to sales to other Group companies.
(2) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD for Kumba and ~5.0 BRL:USD for Minas-Rio (previously ~18 ZAR:USD and ~4.8 BRL:USD).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Iron Ore (000 t) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Iron Ore production(1) 15,397 15,647 15,076 15,682 16,060 (4)% (2)% 46,120 43,599 6%
Iron Ore sales(1) 14,748 15,781 14,546 13,887 15,799 (7)% (7)% 45,075 44,099 2%
Kumba production 9,736 9,320 9,425 9,961 9,977 (2)% 4% 28,481 27,738 3%
Lump 6,288 6,086 6,146 6,523 6,530 (4)% 3% 18,520 18,148 2%
Fines 3,448 3,234 3,279 3,438 3,447 0% 7% 9,961 9,590 4%
Kumba production by mine
Sishen 6,680 6,442 6,341 7,010 7,085 (6)% 4% 19,463 20,007 (3)%
Kolomela 3,056 2,878 3,084 2,951 2,892 6% 6% 9,018 7,731 17%
Kumba sales volumes(2)
Export iron ore(2) 8,873 9,456 9,499 7,054 9,982 (11)% (6)% 27,828 29,617 (6)%
Minas-Rio production
Pellet feed 5,661 6,327 5,651 5,721 6,083 (7)% (11)% 17,639 15,861 11%
Minas-Rio sales volumes
Export - pellet feed 5,875 6,325 5,047 6,833 5,817 1% (7)% 17,247 14,482 19%
(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and
Minas-Rio product is shipped with ~9% moisture.
(2) Sales volumes could differ to Kumba's standalone results due to sales to other Group companies.
Steelmaking Coal
Steelmaking Coal(1) (000 t) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Steelmaking Coal 4,356 5,510 (21)% 3,356 30% 11,245 10,357 9%
(1) Anglo American's attributable share of production. Includes production relating to processing of third-party product.
Steelmaking coal production decreased by 21% to 4.4 million tonnes, impacted by challenging strata conditions at the
Moranbah longwall operation and the ramp-up of Grosvenor during July following the longwall move in Q2. This was
partially offset by higher production from the Capcoal open cut operation and the Aquila longwall.
During the quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 74:26, lower than Q3 2022
(83:17), reflecting lower production from the underground longwall operations that produce premium hard coking coal.
The realised price differs from the average market price due to differences in material grade and timing of shipments. The
year to date average realised price for hard coking coal was $264/tonne, compared to the benchmark price of
$284/tonne. The year to date price realisation increased to 93% (YTD 2022: 82%), driven by higher sales volumes of
premium hard coking coal from the underground longwall operations in 2023 and the impact of sales timing.
2023 Guidance
Production guidance for 2023 is unchanged at 16-19 million tonnes.
Unit cost guidance for 2023 is unchanged at c.$105/tonne(1).
(1) FX rate assumption for Q4 2023 costs of ~1.6 AUD:USD (previously ~1.5 AUD:USD).
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Coal, by product (000 t)(1) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Production volumes
Steelmaking Coal(2)(3) 4,356 3,356 3,533 4,650 5,510 (21)% 30% 11,245 10,357 9%
Hard coking coal(2) 3,235 2,358 2,842 3,647 4,562 (29)% 37% 8,435 8,441 0%
PCI / SSCC 1,121 998 691 1,003 948 18% 12% 2,810 1,916 47%
Export thermal coal 284 481 284 428 424 (33)% (41)% 1,049 1,217 (14)%
Sales volumes
Steelmaking Coal(2)(3) 4,226 3,585 3,334 4,233 5,245 (19)% 18% 11,145 10,451 7%
Hard coking coal(2) 3,199 2,681 2,699 3,114 4,289 (25)% 19% 8,579 8,198 5%
PCI / SSCC 1,027 904 635 1,119 956 7% 14% 2,566 2,253 14%
Export thermal coal 387 390 402 473 480 (19)% (1)% 1,179 1,208 (2)%
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Steelmaking coal, by operation (000 t)(1) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Steelmaking Coal(2)(3) 4,356 3,356 3,533 4,650 5,510 (21)% 30% 11,245 10,357 9%
Moranbah(2) 946 948 576 1,490 1,523 (38)% 0% 2,470 1,905 30%
Grosvenor 560 240 976 777 1,277 (56)% 133% 1,776 2,259 (21)%
Aquila (incl. Capcoal)(2) 1,338 874 745 1,023 1,150 16% 53% 2,957 2,423 22%
Dawson 688 576 520 584 741 (7)% 19% 1,784 1,504 19%
Jellinbah 824 718 716 776 819 1% 15% 2,258 2,266 0%
(1) Anglo American's attributable share of production.
(2) Includes production relating to processing of third-party product.
(3) Steelmaking coal volumes exclude thermal coal by-product.
Manganese
Manganese (000 t) Q3 Q3 Q3 2023 vs. Q2 Q3 2023 vs. YTD YTD YTD 2023 vs.
2023 2022 Q3 2022 2023 Q2 2023 2023 2022 YTD 2022
Manganese ore(1) 1,012 973 4% 970 4% 2,823 2,756 2%
(1) Anglo American's attributable share of saleable production.
Manganese ore production increased by 4% to 1,012,100 tonnes, driven by improved mining performance and
equipment reliability at the South African operations.
Q3 Q2 Q1 Q4 Q3 Q3 2023 Q3 2023 YTD YTD YTD 2023
Manganese (tonnes) vs. vs. vs.
2023 2023 2023 2022 2022 Q3 2022 Q2 2023 2023 2022 YTD 2022
Samancor production
Manganese ore(1) 1,012,100 969,800 840,900 984,300 973,300 4% 4% 2,822,800 2,756,400 2%
Samancor sales volumes
Manganese ore 971,500 937,900 823,600 954,700 834,400 16% 4% 2,733,000 2,641,500 3%
(1) Anglo American's attributable share of saleable production.
Exploration and evaluation
Exploration and evaluation expenditure was broadly flat at $90 million (Q3 2022: $87 million). Exploration expenditure
decreased by 5% to $38 million. Evaluation expenditure increased by 11% to $52 million, primarily driven by higher spend
in PGMs and steelmaking coal.
Corporate and other activities
Despite a strong focus on working capital through the second half of the year, opportunities to unwind the largely price-
driven builds reported in the first half of the year have been limited. In addition, inventory at De Beers continues to build,
reflecting weaker market sentiment.
Following a successful ramp-up, it is expected that Quellaveco will distribute ~$0.8 billion to its shareholders by the end of
year, with the payment of Mitsubishi's 40% share increasing the Group's net debt.
ESG summary factsheets on a range of topics are available on our website.
For more information on Anglo American's announcements during the period, please find a link to our Press Releases below:
https://www.angloamerican.com/media/press-releases/2023/12-10-2023
Notes
- This Production Report for the third quarter ended 30 September 2023 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
- Copper equivalent production shows changes in underlying production volume, and includes the equity share of De
Beers' production. It is calculated by expressing each product's volume as revenue, subsequently converting the
revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in
order that period-on-period comparisons exclude any impact for movements in price.
- Please refer to below for information on forward-looking statements.
In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to
refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not
necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only,
and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled.
Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but
not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of
Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces
Group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American
Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute
prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and
procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their
specific businesses.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Emma Waterworth
marcelo.esquivel@angloamerican.com emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8574
Rebecca Meeson-Frizelle Juliet Newth
rebecca.meeson-frizelle@angloamerican.com Juliet.newth@angloamerican.com
Tel: +44 (0)20 7968 1374 Tel: +44 (0)20 7968 8830
South Africa Michelle Jarman
Nevashnee Naicker michelle.jarman@angloamerican.com
nevashnee.naicker@angloamerican.com Tel: +44 (0)20 7968 1494
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development
options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and
that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we
use innovative practices and the latest technologies to discover new resources and to mine, process, move and market
our products to our customers - safely and sustainably.
As a responsible producer of copper, nickel, platinum group metals, diamonds (through De Beers), and premium quality
iron ore and steelmaking coal - with crop nutrients in development - we are committed to being carbon neutral across
our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure
we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work
together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources
for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders.
Anglo American is re-imagining mining to improve people's lives.
www.angloamerican.com
Forward-looking statements and third-party information:
This announcement includes forward-looking statements. All statements other than statements of historical facts
included in this announcement, including, without limitation, those regarding Anglo American's financial position,
business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future
operations, prospects and projects (including development plans and objectives relating to Anglo American's products,
production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including
environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, are forward-looking
statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of Anglo American or industry results to be
materially different from any future results, performance or achievements expressed or implied by such forward-looking
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, unanticipated downturns in business relationships with customers or their purchases from
Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and
other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks
of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or
adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory
proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the
ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation)
services, the development, efficacy and adoption of new or competing technology, challenges in realising resource
estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices
and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism,
war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the
world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected
difficulties relating to acquisitions or divestitures, competitive pressures and the actions of competitors, activities by
courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing
of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or
other types of regulation in the 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 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 SIX 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.
Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share. Certain statistical and other information included
in this announcement is sourced from third-party sources (including, but not limited to, externally conducted studies and
trials). As such it has not been independently verified and presents the views of those third parties, but may not
necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility
for, or liability in respect of, such information.
(c)Anglo American Services (UK) Ltd 2023. AngloAmerican(TM) are trade marks of Anglo American Services (UK) Ltd.
Legal Entity Identifier: 549300S9XF92D1X8ME43
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)
24 October 2023
