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18 July 2024
Anglo American plc
Production Report for the second
quarter ended 30 June 2024
Duncan Wanblad, Chief Executive of
Anglo American, said: "We have delivered a
strong second quarter performance overall as we continue to embed
operational excellence across the asset base. Minas-Rio achieved
record second quarter production, while our copper operations in
Chile and Peru both performed well against our plans. We are
focused on continuing to deliver our strategic priority of
operational excellence - improving performance stability is driving
increased confidence in operational plans, including production
volumes and unit costs.
"De Beers' diamond production
reflects the lower revised guidance announced in our first quarter
production report. Trading conditions became more challenging in
the second quarter as Chinese consumer demand remained subdued.
With higher than normal levels of inventory remaining in the
midstream and an expectation for a protracted recovery, we are
therefore actively assessing options with our partners to further
reduce production to manage our working capital and preserve
cash.
"At the end of June, the Grosvenor
mine experienced an underground fire and the workforce was safely
evacuated without injury. As a result of the incident, the
operation is suspended and Grosvenor's production is excluded from
the Steelmaking Coal guidance for the second half of the
year.
"In May, we announced our plan to
accelerate our strategy by simplifying the portfolio and focusing
on our world-class assets in copper, premium iron ore and crop
nutrients. We are working at pace to execute on the asset divestments, including Steelmaking Coal -
with the intention of optimising value for our
shareholders, while minimising frictional costs, mitigating
execution risks, and enabling the delivery of significant
sustainable cost savings. Work is progressing with
the aim of substantively completing this transformation by the end
of 2025."
Q2 2024 highlights
• Copper
production is tracking well to our full year plan and is 2% higher
than the first half of 2023, with the 6% decrease in the second
quarter driven by lower throughput at Los Bronces and El Soldado,
and planned lower grades at Quellaveco, partially offset by higher
throughput at Collahuasi driven by the fifth ball mill.
• Minas-Rio
achieved a record second quarter performance, offset by a planned
decrease at Kumba to align with third-party logistics constraints,
resulting in flat production year-on-year for the iron ore
businesses.
• Production
from our Platinum Group Metals (PGMs) operations was 2% lower,
reflecting expected lower volumes from Kroondal (which is reported
as third-party purchase of concentrate from November 2023) and
lower production at Mototolo, Mogalakwena and Unki, partially
offset by 7% higher production at Amandelbult.
• Steelmaking coal production increased by 26%, driven by higher
production from the Grosvenor underground mine and at the Dawson
open cut operation, partially offset by challenging strata
conditions at the Aquila underground longwall and higher waste
tonnes extracted at the Capcoal open cut operation. As a result of
the underground fire at Grosvenor, the operation is currently
suspended and Grosvenor's production is excluded from Steelmaking
Coal guidance for the second half of the year. The new guidance
range for the year is 14-15.5 million tonnes, with unit costs
revised to $130-140/tonne(1).
• Rough
diamond production decreased by 15%, driven by a proactive approach
to manage inventory and preserve cash.
• Nickel
production was broadly flat, reflecting operational
stability.
|
Production
|
Q2
2024
|
Q2
2023
|
% vs. Q2
2023
|
Q1
2024
|
% vs. Q1
2024
|
|
Copper (kt)(2)
|
196
|
209
|
(6)%
|
198
|
(1)%
|
|
Iron ore
(Mt)(3)
|
15.6
|
15.6
|
0%
|
15.1
|
3%
|
|
Platinum group metals
(koz)(4)
|
921
|
943
|
(2)%
|
834
|
10%
|
|
Diamonds
(Mct)(5)
|
6.4
|
7.6
|
(15)%
|
6.9
|
(6)%
|
|
Steelmaking coal (Mt)
|
4.2
|
3.4
|
26%
|
3.8
|
12%
|
|
Nickel (kt)(6)
|
10.0
|
9.9
|
1%
|
9.5
|
5%
|
|
Manganese ore (kt)
|
356
|
970
|
(63)%
|
784
|
(55)%
|
On a copper equivalent basis, Q2
2024 was 2% higher than Q1 2024 and 3% lower than Q2
2023.
(1) Previously, Steelmaking Coal production guidance was 15-17
million tonnes with unit cost guidance of c.$115/tonne.
(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) Wet
basis.
(4) Produced
ounces of metal in concentrate. 5E + gold (platinum, palladium,
rhodium, ruthenium and iridium plus gold). Reflects own mined
production and purchase of concentrate.
(5) Production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis.
(6) Reflects
nickel production from the Nickel operations in Brazil only
(excludes 7.3 kt of Q2 2024 nickel production from the Platinum
Group Metals business).
Production and unit cost guidance
summary
|
|
2024
production guidance
|
2024 unit
cost guidance(1)
|
|
|
Copper(2)
|
730-790
kt
|
c.157
c/lb
|
|
|
|
Iron Ore(3)
|
58-62
Mt
|
c.$37/t
|
|
|
|
Platinum Group
Metals(4)
|
3.3-3.7
Moz
|
c.$920/oz
|
|
|
|
Diamonds(5)
|
26-29
Mct
|
c.$90/ct
|
|
|
|
Steelmaking
Coal(6)
|
14-15.5
Mt
|
$130-140/t
|
|
|
(previously 15-17Mt)
|
(previously c.$115/t)
|
|
|
Nickel(7)
|
36-38
kt
|
c.550
c/lb
|
|
|
(previously c.600 c/lb)
|
|
(1) Unit
costs exclude royalties and depreciation and include direct support
costs only. 2024 unit cost guidance was set at: c.850 CLP:USD,
c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, c.1.5
AUD:USD.
(2) Copper
business only. On a contained-metal basis. Total copper production
is the sum of Chile and Peru: Chile: 430-460 kt and Peru: 300-330
kt.2024 unit cost guidance for Chile: c.190 c/lb and Peru: c.110
c/lb. The copper unit costs are impacted by FX rates and pricing of
by-products, such as molybdenum. Production in Chile is weighted to
the first half of the year owing to the planned closure of the Los
Bronces plant, which is now scheduled for the end of July;
production is also subject to water availability. Production in
Peru is weighted to the second half of the year as a higher grade
area of the mine is accessed.
(3) 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:
23-25 Mt. Kumba production is subject to third-party rail and port
availability and performance. 2024 unit cost guidance for Kumba:
c.$38/t and Minas-Rio: c.$35/t.
(4) 5E +
gold produced metal in concentrate (M&C) ounces. Includes own
mined production and purchased concentrate (POC) volumes. M&C
production by source is expected to be own mined of 2.1-2.3 million
ounces and purchase of concentrate of 1.2-1.4 million ounces. The
average M&C split by metal is Platinum: c.45%, Palladium: c.35%
and Other: c.20%. Refined production (5E + gold) is expected to be
3.3-3.7 million ounces. Production remains subject to the impact of
Eskom load-curtailment. Unit cost is per own mined 5E + gold PGMs
metal in concentrate ounce.
(5) Production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis. In light of the
higher than normal levels of inventory remaining in the midstream
and an expectation for a protracted recovery, we are actively
assessing options with our partners to further reduce production to
manage our working capital and preserve cash. Unit cost is based on
De Beers' share of production. Venetia continues to transition to
underground operations where production is expected to ramp-up over
the next few years.
(6) Production excludes thermal coal by-product. FOB unit cost
comprises managed operations and excludes royalties. A planned
longwall move at Moranbah is expected to take place during Q4 2024.
A walk-on/walk-off longwall move at Aquila, that will have a
minimal production impact, is scheduled in Q3 2024. Production has
been updated to exclude Grosvenor in the second half of the year
given the current uncertainties, with a consequent revision of the
unit cost guidance.
(7) Nickel
operations in Brazil only. The Group also produces approximately 20
kt of nickel on an annual basis from the PGM operations. The unit
cost guidance is revised lower, reflecting the benefit of lower
input costs.
Realised prices
|
|
H1
2024
|
H1
2023
|
H1 2024
vs.
H1
2023
|
|
Copper
(USc/lb)(1)
|
429
|
393
|
9%
|
|
Copper Chile
(USc/lb)(2)
|
437
|
393
|
11%
|
|
Copper Peru (USc/lb)
|
415
|
394
|
5%
|
|
Iron Ore - FOB
prices(3)
|
93
|
105
|
(11)%
|
|
Kumba Export
(US$/wmt)(4)
|
97
|
106
|
(8)%
|
|
Minas-Rio
(US$/wmt)(5)
|
86
|
104
|
(17)%
|
|
Platinum Group Metals
|
|
|
|
|
Platinum
(US$/oz)(6)
|
964
|
1,008
|
(4)%
|
|
Palladium
(US$/oz)(6)
|
1,006
|
1,532
|
(34)%
|
|
Rhodium
(US$/oz)(6)
|
4,619
|
9,034
|
(49)%
|
|
Basket price (US$/PGM
oz)(7)
|
1,442
|
1,885
|
(24)%
|
|
Diamonds
|
|
|
|
|
Consolidated average realised price
(US$/ct)(8)
|
164
|
163
|
1%
|
|
Average price
index(9)
|
109
|
137
|
(20)%
|
|
Steelmaking Coal - HCC
(US$/t)(10)
|
274
|
280
|
(2)%
|
|
Steelmaking Coal - PCI
(US$/t)(10)
|
200
|
236
|
(15)%
|
|
Nickel
(US$/lb)(11)
|
6.85
|
9.04
|
(24)%
|
(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) Average
realised total iron ore price is a weighted average of the Kumba
and Minas-Rio realised prices.
(4) 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 $99/t (H1 2023: $108/t), broadly in line with the dry
62% Fe benchmark price of $98/t (FOB South Africa, adjusted for
freight).
(5) Average
realised export basket price (FOB Açu) (wet basis as product is
shipped with ~9% moisture).
(6) Realised
price excludes trading.
(7) 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.
(8) Consolidated average realised price based on 100% selling
value post-aggregation.
(9) Average
of the De Beers price index for the Sights within the period. The
De Beers price index is relative to 100 as at December
2006.
(10) Weighted average coal sales price achieved at managed
operations. The average realised price for thermal coal by-product
for H1 2024, decreased by 31% to $117/t (H1 2023:
$169/t).
(11) Nickel realised price reflects the market discount for
ferronickel (the product produced by the Nickel
business).
Copper
|
Copper(1)
(tonnes)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Copper
|
195,700
|
209,100
|
(6)%
|
198,100
|
(1)%
|
393,800
|
387,200
|
2%
|
|
Copper Chile
|
120,400
|
130,800
|
(8)%
|
126,100
|
(5)%
|
246,500
|
249,400
|
(1)%
|
|
Copper Peru
|
75,300
|
78,300
|
(4)%
|
72,000
|
5%
|
147,300
|
137,800
|
7%
|
(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 is tracking well
to plan, with the 6% decrease in the quarter to 195,700 tonnes,
driven by an 8% decrease in Chile's production and a 4% decrease
from Quellaveco in Peru.
Chile - Copper production was 120,400
tonnes, reflecting lower throughput at Los Bronces and El Soldado,
partially offset by higher throughput at Collahuasi.
At Collahuasi, Anglo American's
attributable share of copper production increased by 5% to 60,300
tonnes, due to higher throughput driven by the fifth ball mill,
which started operating in October 2023, partially offset by lower
copper recovery (80% vs 86%) due to processing lower grade
stockpiles.
Production from Los Bronces
decreased by 19% to 48,400 tonnes, primarily driven by lower
throughput due to plant stoppages, planned lower grade (0.48% vs.
0.51%) and ore hardness. As previously disclosed, the unfavourable
ore characteristics in the current mining area will continue to
impact operations until the next phase of the mine, where the
grades are expected to be higher and the ore softer. Development
work for this phase is now under way and it is expected to benefit
production from early 2027. As planned, in line with our broader
focus on improving cash generation, the older, smaller and more
costly Los Bronces processing plant (c.40% of capacity) will be
placed on care and maintenance, now scheduled for the end of
July.
Production from El Soldado decreased
by 15% to 11,700 tonnes, due to lower throughput and the weather
conditions in June. The central zone of Chile, where Los Bronces
and El Soldado are located, experienced record levels of rain and
snow - with the wettest June in the last 20 years and also the most
snowfall in the last 22 years.
The H1 2024 average realised price
of 437 c/lb includes 72,800 tonnes of
copper provisionally priced as at 30 June 2024 at an average
of 432c/lb.
Peru -
Quellaveco production decreased by 4% to 75,300 tonnes, due to
planned lower grades (0.74% vs. 0.96%), partially offset by record
throughput during the quarter. Operational performance is tracking
well against the revised mine plan.
The H1 2024 average realised price
of 415 c/lb includes 64,600 tonnes of copper provisionally priced
as at 30 June 2024 at an average of 410 c/lb.
2024 Guidance
Production guidance for 2024 is
unchanged at 730,000-790,000 tonnes (Chile 430,000-460,000 tonnes;
Peru 300,000-330,000 tonnes). Production in Chile is weighted to
the first half of the year owing to the planned closure of the Los
Bronces plant, which is now scheduled for the end of July;
production is also subject to water availability. Production in
Peru is weighted to the second half of the year as a higher grade
area of the mine is accessed.
Unit cost guidance for 2024 is
unchanged at c.157 c/lb(1) (Chile c.190
c/lb(1); Peru c.110 c/lb(1)).
(1) The
copper unit costs are impacted by FX rates and pricing of
by-products, such as molybdenum. 2024 unit cost guidance was set at
c.850 CLP:USD for Chile and c.3.7 PEN:USD for Peru.
|
Copper(1)
(tonnes)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Total copper production
|
195,700
|
198,100
|
229,900
|
209,100
|
209,100
|
(6)%
|
(1)%
|
393,800
|
387,200
|
2%
|
|
Total copper sales
volumes
|
213,600
|
177,300
|
242,600
|
211,700
|
203,100
|
5%
|
20%
|
390,900
|
389,000
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Chile
|
|
|
|
|
|
|
|
|
|
|
|
Los Bronces
mine(2)
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
12,688,000
|
11,974,700
|
13,365,200
|
11,209,200
|
13,729,100
|
(8)%
|
6%
|
24,662,700
|
25,855,900
|
(5)%
|
|
Ore processed - Sulphide
|
10,566,600
|
10,330,300
|
11,562,800
|
9,695,800
|
12,462,800
|
(15)%
|
2%
|
20,896,900
|
22,505,200
|
(7)%
|
|
Ore grade processed -
Sulphide (%
TCu)(3)
|
0.48
|
0.47
|
0.52
|
0.49
|
0.51
|
(6)%
|
2%
|
0.48
|
0.52
|
(8)%
|
|
Production - Copper in
concentrate
|
40,900
|
40,300
|
49,400
|
38,600
|
52,800
|
(23)%
|
1%
|
81,200
|
96,800
|
(16)%
|
|
Production - Copper
cathode
|
7,500
|
8,400
|
7,800
|
7,200
|
7,000
|
7%
|
(11)%
|
15,900
|
15,700
|
1%
|
|
Total production
|
48,400
|
48,700
|
57,200
|
45,800
|
59,800
|
(19)%
|
(1)%
|
97,100
|
112,500
|
(14)%
|
|
Collahuasi 100% basis
(Anglo American share
44%)
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
10,336,300
|
10,472,200
|
15,892,300
|
15,949,200
|
15,232,600
|
(32)%
|
(1)%
|
20,808,500
|
28,736,000
|
(28)%
|
|
Ore processed - Sulphide
|
15,781,200
|
14,350,000
|
14,943,300
|
14,502,000
|
13,814,300
|
14%
|
10%
|
30,131,200
|
27,906,500
|
8%
|
|
Ore grade processed -
Sulphide (%
TCu)(3)
|
1.08
|
1.20
|
1.33
|
1.19
|
1.09
|
(1)%
|
(10)%
|
1.13
|
1.07
|
6%
|
|
Anglo American's 44% share of copper
production for Collahuasi
|
60,300
|
64,700
|
71,700
|
66,100
|
57,300
|
5%
|
(7)%
|
125,000
|
114,400
|
9%
|
|
El Soldado
mine(2)
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
1,805,600
|
1,857,400
|
2,190,000
|
633,000
|
2,930,200
|
(38)%
|
(3)%
|
3,663,000
|
4,833,200
|
(24)%
|
|
Ore processed - Sulphide
|
1,568,700
|
1,712,600
|
1,526,300
|
2,026,800
|
1,781,400
|
(12)%
|
(8)%
|
3,281,300
|
3,246,400
|
1%
|
|
Ore grade processed -
Sulphide (%
TCu)(3)
|
0.94
|
0.94
|
0.62
|
0.60
|
0.94
|
0%
|
0%
|
0.94
|
0.84
|
12%
|
|
Production - Copper in
concentrate
|
11,700
|
12,700
|
7,300
|
9,700
|
13,700
|
(15)%
|
(8)%
|
24,400
|
22,500
|
8%
|
|
Chagres
smelter(2)
|
|
|
|
|
|
|
|
|
|
|
|
Ore smelted(4)
|
26,100
|
27,000
|
28,100
|
28,600
|
27,800
|
(6)%
|
(3)%
|
53,100
|
66,200
|
(20)%
|
|
Production
|
25,400
|
25,600
|
27,400
|
27,700
|
27,100
|
(6)%
|
(1)%
|
51,000
|
55,000
|
(7)%
|
|
Total copper
production(5)
|
120,400
|
126,100
|
136,200
|
121,600
|
130,800
|
(8)%
|
(5)%
|
246,500
|
249,400
|
(1)%
|
|
Total payable copper
production
|
115,700
|
121,300
|
131,000
|
117,000
|
125,500
|
(8)%
|
(5)%
|
237,000
|
239,600
|
(1)%
|
|
Total copper sales
volumes
|
132,900
|
109,400
|
146,900
|
120,300
|
120,700
|
10%
|
21%
|
242,300
|
237,600
|
2%
|
|
Total payable sales
volumes
|
127,600
|
105,200
|
140,000
|
115,600
|
117,100
|
9%
|
21%
|
232,800
|
229,400
|
1%
|
|
Third-party
sales(6)
|
87,600
|
80,300
|
139,300
|
126,600
|
91,400
|
(4)%
|
9%
|
167,900
|
177,800
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Peru
|
|
|
|
|
|
|
|
|
|
|
|
Quellaveco
mine(7)
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
9,486,400
|
11,025,800
|
13,368,500
|
9,900,400
|
11,600,200
|
(18)%
|
(14)%
|
20,512,200
|
18,778,100
|
9%
|
|
Ore processed - Sulphide
|
12,397,000
|
12,206,700
|
11,821,300
|
11,240,600
|
9,660,800
|
28%
|
2%
|
24,603,700
|
16,703,000
|
47%
|
|
Ore grade processed -
Sulphide (%
TCu)(3)
|
0.74
|
0.72
|
0.95
|
0.93
|
0.96
|
(23)%
|
3%
|
0.73
|
0.99
|
(26)%
|
|
Total copper production
|
75,300
|
72,000
|
93,700
|
87,500
|
78,300
|
(4)%
|
5%
|
147,300
|
137,800
|
7%
|
|
Total payable copper
production
|
72,800
|
69,600
|
90,600
|
84,600
|
75,700
|
(4)%
|
5%
|
142,400
|
133,200
|
7%
|
|
Total copper sales
volumes
|
80,700
|
67,900
|
95,700
|
91,400
|
82,400
|
(2)%
|
19%
|
148,600
|
151,400
|
(2)%
|
|
Total payable sales
volumes
|
77,700
|
65,500
|
92,500
|
88,300
|
79,500
|
(2)%
|
19%
|
143,200
|
146,200
|
(2)%
|
(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.
(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.
Iron Ore
|
Iron Ore (000 t)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Iron Ore
|
15,580
|
15,647
|
0%
|
15,143
|
3%
|
30,723
|
30,723
|
0%
|
|
Kumba(1)
|
9,184
|
9,320
|
(1)%
|
9,275
|
(1)%
|
18,459
|
18,745
|
(2)%
|
|
Minas-Rio(2)
|
6,396
|
6,327
|
1%
|
5,868
|
9%
|
12,264
|
11,978
|
2%
|
(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 was broadly flat
at 15.6 million tonnes. Minas-Rio achieved a record second quarter
performance, with production up 1%, offset by a planned decrease at
Kumba, due to the previously announced business reconfiguration to
align with third-party logistics constraints.
Kumba -
Total production decreased by 1% to 9.2 million
tonnes, driven by a 12% decrease at Kolomela to 2.5 million tonnes
due to the reconfiguration of the mine to align production to lower
third-party rail capacity and alleviate mine stockpile constraints.
Sishen's production increased by 3% to 6.6 million tonnes,
reflecting planned operational improvements.
Total sales increased by 3% to 9.7
million tonnes(1), reflecting the improved equipment
performance following repairs undertaken at Saldanha Bay port in
the second quarter of 2024.
As a result of the logistics
challenges on rail and at the port during the first half of the
year, total finished stock remained elevated at 8.2 million
tonnes(1), with stock at the mines increasing to 7.4
million tonnes(1), which is above desired levels. Stock
at the port increased to 0.8 million
tonnes(1).
Kumba's iron (Fe) content averaged
64.1% (H1 2023: 63.3%), while the average lump:fines ratio was
64:36 (H1 2023: 67:33).
The H1 2024 average realised
price of $97/tonne(1) (FOB South Africa, wet basis) was
broadly in line with the 62% Fe benchmark price of
$96/tonne(1) (FOB South Africa, adjusted for freight and
moisture). The premiums for higher iron content and lump product
were partially offset by the impact of provisionally priced sales
volumes.
Minas-Rio -
Production increased by 1% to 6.4 million tonnes,
reflecting a record second quarter performance and continued
operational improvement at the crushing circuit and beneficiation
plant, despite the impact from lower mining fleet
availability.
The H1 2024 average realised
price of $86/tonne (FOB Brazil, wet basis) was 9% lower than the
Metal Bulletin 65 price of $94/tonne (FOB Brazil, adjusted for
freight and moisture), impacted by provisionally priced sales
volumes which more than offset the premium for our high quality
product, including higher (~67%) Fe content.
2024 Guidance
Production guidance for 2024 is
unchanged at 58-62 million tonnes (Kumba 35-37 million tonnes;
Minas-Rio 23-25 million tonnes). Kumba is subject to third-party
rail and port availability and performance.
Unit cost guidance for 2024 is
unchanged at c.$37/tonne(2) (Kumba
c.$38/tonne(2); Minas-Rio
c.$35/tonne(2)).
(1) Production and 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. At the end of 2023,
total finished stock was 7.1 million tonnes; stock at the mines was
6.5 million tonnes and stock at the port was 0.6 million tonnes. At
H1 2023, total finished stock was 7.9 million tonnes; stock at the
mines was 7.3 million tonnes and stock at the port was 0.6 million
tonnes.
(2) 2024
unit cost guidance was set at c.19 ZAR:USD for Kumba and c.5.0
BRL:USD for Minas-Rio.
|
Iron Ore (000 t)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Iron Ore
production(1)
|
15,580
|
15,143
|
13,806
|
15,397
|
15,647
|
0%
|
3%
|
30,723
|
30,723
|
0%
|
|
Iron Ore
sales(1)
|
16,508
|
12,997
|
16,413
|
14,748
|
15,781
|
5%
|
27%
|
29,505
|
30,327
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kumba production
|
9,184
|
9,275
|
7,234
|
9,736
|
9,320
|
(1)%
|
(1)%
|
18,459
|
18,745
|
(2)%
|
|
Sishen
|
6,644
|
6,563
|
5,958
|
6,680
|
6,442
|
3%
|
1%
|
13,207
|
12,783
|
3%
|
|
Kolomela
|
2,540
|
2,712
|
1,276
|
3,056
|
2,878
|
(12)%
|
(6)%
|
5,252
|
5,962
|
(12)%
|
|
Kumba sales
volumes(2)
|
9,705
|
8,383
|
9,344
|
8,873
|
9,456
|
3%
|
16%
|
18,088
|
18,955
|
(5)%
|
|
Lump(2)
|
5,981
|
5,520
|
6,221
|
5,878
|
6,241
|
(4)%
|
8%
|
11,501
|
12,607
|
(9)%
|
|
Fines(2)
|
3,724
|
2,863
|
3,123
|
2,995
|
3,215
|
16%
|
30%
|
6,587
|
6,348
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minas-Rio production
|
|
|
|
|
|
|
|
|
|
|
|
Pellet feed
|
6,396
|
5,868
|
6,572
|
5,661
|
6,327
|
1%
|
9%
|
12,264
|
11,978
|
2%
|
|
Minas-Rio sales volumes
|
|
|
|
|
|
|
|
|
|
|
|
Export - pellet feed
|
6,803
|
4,614
|
7,069
|
5,875
|
6,325
|
8%
|
47%
|
11,417
|
11,372
|
0%
|
(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 stand-alone results due to sales to
other Group companies.
Platinum Group Metals
(PGMs)
|
PGMs (000
oz)(1)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Metal in concentrate
production
|
921
|
943
|
(2)%
|
834
|
10%
|
1,755
|
1,844
|
(5)%
|
|
Own mined(2)
|
547
|
613
|
(11)%
|
504
|
9%
|
1,052
|
1,199
|
(12)%
|
|
Purchase of concentrate
(POC)(3)
|
374
|
330
|
13%
|
330
|
13%
|
704
|
646
|
9%
|
|
Refined
production(4)
|
1,154
|
1,074
|
7%
|
628
|
84%
|
1,782
|
1,700
|
5%
|
(1) Ounces
refer to troy ounces. PGMs consists of 5E + gold (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
Total PGM production decreased by
2%, reflecting expected lower volumes from Kroondal (which is
reported as third-party purchase of concentrate from November 2023)
and lower production at Mototolo, Mogalakwena and Unki. This was
partially offset by higher production from Amandelbult.
Own mined production decreased by
11% to 547,200 ounces, primarily due to the disposal of Kroondal in
Q4 2023(1). Excluding Kroondal, production decreased by
3% due to lower production from Mototolo, Mogalakwena and Unki,
partially offset by higher production from Amandelbult.
Mogalakwena's production decreased
by 4% to 232,600 ounces, due to the planned blending of low grade
ore stockpiles as the new bench cut sequence progressed during the
quarter, with higher waste tonnes extracted in the short
term.
Production at Mototolo decreased by
14% to 66,300 ounces, due to difficult ground conditions as a
section of the mine reaches its end of life, as well as the impact
from a shortage of specialised skills. The new 7-day mining shift
cycle introduced at the end of the first quarter aims to enhance
operational efficiency, improve equipment utilisation and
ultimately increase production output, with stabilisation expected
in the second half of 2024.
Unki produced 54,700 ounces, 7%
lower, due to temporarily mining through a planned lower grade
section.
This was partly offset by production
at Amandelbult, which increased by 7% to 157,600 ounces, driven by
operational efficiencies which allowed for higher grades and
throughput from underground material, partially offset by
metallurgical challenges which contributed to issues at the
concentrator.
Purchase of concentrate increased by
13% to 373,800 ounces, reflecting the transition of Kroondal to a
100% third-party purchase of concentrate arrangement. Normalising
the comparative period to include 100% of Kroondal, results in a 2%
decrease reflecting lower third-party receipts.
On 1 July 2024, Mogalakwena North
Concentrator primary mill broke down with repairs and mitigation
plans under way and expected to be largely completed by end of July
2024. It is expected that this may have a c.5% impact on
Mogalakwena metal in concentrate production in 2024.
Refined production
Refined production increased by 7%
to 1,153,500 ounces, reflecting a draw down of work-in-progress
inventory compared to the same period of last year. There was no
Eskom load-curtailment on the operations during the
quarter.
Sales
Sales volumes increased by 14% to
1,266,100 ounces, higher than refined production, due to a draw
down of finished goods compared to the same period of last
year.
The H1 2024 average realised
basket price of $1,442/PGM ounce was 24% lower, mainly due to a 49%
decrease in rhodium prices and a 34% decrease in palladium
prices.
The H1 2024 unit cost is expected to
be c.$975/PGM ounce, which is higher than the c.$920/PGM ounce full
year unit cost guidance as the benefits of the cost-out programme
will largely be realised in the second half of the year, as
planned.
2024 Guidance
Production guidance for 2024 for
metal in concentrate(2) and refined production is
unchanged at 3.3-3.7 million ounces. Production remains subject to
the impact of Eskom load-curtailment.
Unit cost guidance for 2024 is
unchanged at c.$920/PGM ounce(3).
(1) The
disposal of our 50% interest in Kroondal was completed and
effective on 1 November 2023, resulting in Kroondal moving to a
100% third-party purchase of concentrate arrangement. Kroondal is
expected to transition to a toll arrangement in H2 2024.
(2) Metal in
concentrate (M&C) production by source is expected to be own
mined of 2.1-2.3 million ounces and purchase of concentrate of
1.2-1.4 million ounces. The average M&C split by metal is
Platinum: c.45%, Palladium: c.35% and Other:
c.20%.
(3) Unit
cost is per own mined 5E + gold PGMs metal in concentrate ounce.
2024 unit cost guidance was set at c.19 ZAR:USD.
|
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
M&C PGMs production (000
oz)(1)
|
921.0
|
834.1
|
932.2
|
1,029.6
|
943.1
|
(2)%
|
10%
|
1,755.1
|
1,844.3
|
(5)%
|
|
Own mined
|
547.2
|
504.3
|
595.7
|
665.8
|
612.7
|
(11)%
|
9%
|
1,051.5
|
1,198.7
|
(12)%
|
|
Mogalakwena
|
232.6
|
219.5
|
265.3
|
246.8
|
242.4
|
(4)%
|
6%
|
452.1
|
461.4
|
(2)%
|
|
Amandelbult
|
157.6
|
127.1
|
149.9
|
184.9
|
147.9
|
7%
|
24%
|
284.7
|
299.4
|
(5)%
|
|
Mototolo
|
66.3
|
61.9
|
66.5
|
76.1
|
77.4
|
(14)%
|
7%
|
128.2
|
146.1
|
(12)%
|
|
Unki
|
54.7
|
62.8
|
61.8
|
60.5
|
59.0
|
(7)%
|
(13)%
|
117.5
|
121.5
|
(3)%
|
|
Modikwa - joint
operation(2)
|
36.0
|
33.0
|
36.3
|
39.6
|
35.1
|
3%
|
9%
|
69.0
|
69.5
|
(1)%
|
|
Kroondal - joint
operation(3)
|
-
|
-
|
15.9
|
57.9
|
50.9
|
n/a
|
n/a
|
-
|
100.8
|
n/a
|
|
Purchase of concentrate
|
373.8
|
329.8
|
336.5
|
363.8
|
330.4
|
13%
|
13%
|
703.6
|
645.6
|
9%
|
|
Modikwa - joint
operation(2)
|
36.0
|
33.0
|
36.3
|
39.6
|
35.1
|
3%
|
9%
|
69.0
|
69.5
|
(1)%
|
|
Kroondal - joint
operation(3)
|
-
|
-
|
15.9
|
57.9
|
50.9
|
n/a
|
n/a
|
-
|
100.8
|
n/a
|
|
Third
parties(3)
|
337.8
|
296.8
|
284.3
|
266.3
|
244.4
|
38%
|
14%
|
634.6
|
475.3
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined PGMs production (000
oz)(1)(4)
|
1,153.5
|
628.0
|
1,191.1
|
909.7
|
1,073.8
|
7%
|
84%
|
1,781.5
|
1,699.8
|
5%
|
|
By metal:
|
|
|
|
|
|
|
|
|
|
|
|
Platinum
|
554.0
|
272.7
|
565.2
|
428.5
|
489.4
|
13%
|
103%
|
826.7
|
755.4
|
9%
|
|
Palladium
|
372.5
|
206.4
|
400.0
|
285.5
|
352.6
|
6%
|
80%
|
578.9
|
583.1
|
(1)%
|
|
Rhodium
|
70.8
|
39.6
|
61.3
|
57.1
|
68.4
|
4%
|
79%
|
110.4
|
107.2
|
3%
|
|
Other PGMs and gold
|
156.2
|
109.3
|
164.6
|
138.6
|
163.4
|
(4)%
|
43%
|
265.5
|
254.1
|
4%
|
|
Nickel (tonnes)
|
7,300
|
4,700
|
7,000
|
5,400
|
6,100
|
20%
|
55%
|
12,000
|
9,400
|
28%
|
|
Tolled material (000
oz)(5)
|
132.9
|
160.2
|
175.1
|
159.8
|
139.6
|
(5)%
|
(17)%
|
293.1
|
285.7
|
3%
|
|
PGMs sales from production (000
oz)(1)
|
1,266.1
|
707.5
|
1,166.2
|
951.8
|
1,108.7
|
14%
|
79%
|
1,973.6
|
1,807.3
|
9%
|
|
Third-party PGMs sales (000
oz)(1)(6)
|
2,092.4
|
1,200.1
|
1,050.3
|
1,220.9
|
1,153.0
|
81%
|
74%
|
3,292.5
|
2,065.2
|
59%
|
|
4E head grade (g/t
milled)(7)
|
3.17
|
3.05
|
3.35
|
3.29
|
3.15
|
1%
|
4%
|
3.11
|
3.11
|
0%
|
(1) M&C
refers to metal in concentrate. Ounces refer to troy ounces. PGMs
consists of 5E + gold (platinum, palladium, rhodium, ruthenium and
iridium plus gold).
(2) Modikwa
is a 50% joint operation. The 50% equity share of production is
presented under 'Own mined' production. Anglo American Platinum
purchases the remaining 50% of production, which is presented under
'Purchase of concentrate'.
(3) Kroondal
was a 50% joint operation until 1 November 2023. Up until this
date, the 50% equity share of production was presented under 'Own
mined' production and the remaining 50% of production, that Anglo
American Platinum purchased, was presented under 'Purchase of
concentrate'. Upon the disposal of our 50% interest, Kroondal
transitioned to a 100% third-party POC arrangement, whereby 100% of
production will be presented under 'Purchase of concentrate: Third
parties' until it transitions to a toll arrangement, expected in H2
2024.
(4) Refined
production excludes toll material.
(5) Tolled
volume measured as the combined content of: platinum, palladium,
rhodium and gold, reflecting the tolling agreements in
place.
(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 - Diamonds
|
Diamonds(1) (000
carats)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Botswana
|
4,710
|
5,829
|
(19)%
|
4,987
|
(6)%
|
9,697
|
12,728
|
(24)%
|
|
Namibia
|
561
|
612
|
(8)%
|
633
|
(11)%
|
1,194
|
1,231
|
(3)%
|
|
South Africa
|
505
|
466
|
8%
|
598
|
(16)%
|
1,103
|
1,205
|
(8)%
|
|
Canada
|
673
|
683
|
(1)%
|
645
|
4%
|
1,318
|
1,356
|
(3)%
|
|
Total carats recovered
|
6,449
|
7,590
|
(15)%
|
6,863
|
(6)%
|
13,312
|
16,520
|
(19)%
|
(1) Production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis.
Rough diamond production decreased
by 15% to 6.4 million carats, primarily reflecting the lower
production guidance announced in the first quarter production
report in response to the higher than normal levels of inventory in
the midstream, and the expectation for a protracted recovery in
demand.
In Botswana, production decreased by
19% to 4.7 million carats, driven by
intentional lower production from short-term
changes in plant feed mix at Jwaneng to process existing surface
stockpiles. Production at Orapa was
broadly flat.
Production in Namibia decreased by
8% to 0.6 million carats, reflecting planned vessel maintenance at
Debmarine Namibia, partially offset by planned mining of higher
grade areas at Namdeb.
In South Africa, production
increased by 8% to 0.5 million carats, reflecting the benefit of
processing increased volumes of higher grade underground ore as the
Venetia mine transitions underground.
Production in Canada was broadly
unchanged at 0.7 million carats.
Demand for rough diamonds recovered
slightly at the start of 2024 following the cessation of the
voluntary moratorium on rough diamond imports into India in late
2023, and improved demand for diamond jewellery in the United
States year-end retail selling season. However, with midstream
polished inventories remaining higher than normal and continued
cautious restocking from retailers, demand for rough diamonds
deteriorated in the second quarter of the year. Market conditions
are expected to reflect a protracted recovery in demand.
Consequently, rough diamond sales in
Q2 2024 totalled 7.8 million carats (7.3 million carats on a
consolidated basis)(1) from three Sights, compared with
7.6 million carats (6.4 million carats on a consolidated
basis)(1) from two Sights in Q2 2023, and 4.9 million
carats (4.6 million carats on a consolidated basis)(1)
from two Sights in Q1 2024.
The H1 2024 consolidated
average realised price remained broadly flat at
$164/ct (H1 2023: $163/ct),
reflecting a larger proportion of higher value rough diamonds being
sold, offset by a 20% decrease in the average rough price index as
compared to H1 2023.
Rough diamond Sight sale
announcements will cease following this Q2 production report as De
Beers will report this information on a quarterly basis. Refer to
the table on the following page for the quarterly Sight sale
information.
2024 Guidance
Production guidance(2)
for 2024 is unchanged at 26-29 million carats; however, with higher
than normal levels of inventory remaining in the midstream and an
expectation for a protracted recovery, we are actively assessing
options with our partners to further reduce production to manage
our working capital and preserve cash.
Unit cost guidance for 2024 is
unchanged at c.$90/carat(3).
(1) 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).
(2) Production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis.
(3) Unit
cost is based on De Beers' share of production volume. 2024 unit
cost guidance was set at c.19 ZAR:USD.
|
Diamonds(1)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Carats recovered (000
carats)
|
|
|
|
|
|
|
|
|
|
|
|
100% basis (unless
stated)
|
|
|
|
|
|
|
|
|
|
|
|
Jwaneng
|
1,881
|
2,494
|
3,192
|
3,400
|
2,955
|
(36)%
|
(25)%
|
4,375
|
6,737
|
(35)%
|
|
Orapa(2)
|
2,829
|
2,493
|
2,943
|
2,437
|
2,874
|
(2)%
|
13%
|
5,322
|
5,991
|
(11)%
|
|
Total Botswana
|
4,710
|
4,987
|
6,135
|
5,837
|
5,829
|
(19)%
|
(6)%
|
9,697
|
12,728
|
(24)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debmarine Namibia
|
427
|
505
|
435
|
423
|
503
|
(15)%
|
(15)%
|
932
|
1,001
|
(7)%
|
|
Namdeb (land operations)
|
134
|
128
|
131
|
107
|
109
|
23%
|
5%
|
262
|
230
|
14%
|
|
Total Namibia
|
561
|
633
|
566
|
530
|
612
|
(8)%
|
(11)%
|
1,194
|
1,231
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venetia
|
505
|
598
|
434
|
365
|
466
|
8%
|
(16)%
|
1,103
|
1,205
|
(8)%
|
|
Total South Africa
|
505
|
598
|
434
|
365
|
466
|
8%
|
(16)%
|
1,103
|
1,205
|
(8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gahcho Kué (51% basis)
|
673
|
645
|
802
|
676
|
683
|
(1)%
|
4%
|
1,318
|
1,356
|
(3)%
|
|
Total Canada
|
673
|
645
|
802
|
676
|
683
|
(1)%
|
4%
|
1,318
|
1,356
|
(3)%
|
|
Total carats recovered
|
6,449
|
6,863
|
7,937
|
7,408
|
7,590
|
(15)%
|
(6)%
|
13,312
|
16,520
|
(19)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales volume (100%) (000
carats)(3)
|
7,819
|
4,869
|
2,753
|
7,350
|
7,561
|
3%
|
61%
|
12,688
|
17,255
|
(26)%
|
|
Consolidated sales volume (000
carats)(3)
|
7,333
|
4,612
|
2,637
|
6,742
|
6,407
|
14%
|
59%
|
11,945
|
15,303
|
(22)%
|
|
Consolidated sales value
($m)(4)
|
1,039
|
925
|
230
|
899
|
1,051
|
(1)%
|
12%
|
1,964
|
2,500
|
(21)%
|
|
Average price ($/ct)
|
142
|
201
|
87
|
133
|
164
|
(13)%
|
(29)%
|
164
|
163
|
1%
|
|
Average price
index(5)
|
109
|
110
|
133
|
133
|
137
|
(20)%
|
(1)%
|
109
|
137
|
(20)%
|
|
Number of Sights (sales
cycles)
|
3
|
2
|
2
|
3
|
2
|
|
|
5
|
5
|
|
(1) Production is on a 100% basis, except for the Gahcho Kué 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).
(4) Consolidated sales value includes De Beers Group's 50%
proportionate share of sales to entities outside De Beers Group
from Diamond Trading Company Botswana and the Namibia Diamond
Trading Company.
(5) Average
of the De Beers price index for the Sights within the period. The
De Beers price index is relative to 100 as at December
2006.
Steelmaking Coal
|
Steelmaking Coal(1) (000
t)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Steelmaking Coal
|
4,238
|
3,356
|
26%
|
3,780
|
12%
|
8,018
|
6,889
|
16%
|
(1) Anglo
American's attributable share of saleable production. Steelmaking
coal production volumes may include some product sold as thermal
coal and includes production relating to third-party product
purchased and processed at Anglo American's operations.
Steelmaking coal production
increased by 26% to 4.2 million tonnes, primarily driven by higher
production at the Grosvenor underground longwall operation,
reflecting a longwall move in Q2 2023. Increased production at the
Dawson open cut operation was more than offset by lower production
at the Aquila longwall operation due to ongoing difficult strata
conditions, as well as at the Capcoal open cut operation owing to
mine sequencing, with more waste tonnes extracted. The Moranbah
longwall operation was broadly flat owing to ongoing challenges
with difficult strata conditions.
In Q2 2024, the ratio of hard coking
coal production to PCI/semi-soft coking coal was 78:22, higher than
Q2 2023 (70:30), reflecting increased production of hard coking
coal from the underground operations.
The H1 2024 average realised
price for hard coking coal was $274/tonne, compared to the
benchmark price of $276/tonne and reflects an increase in price
realisation to 99% (H1 2023: 95%), primarily as a result of the
timing of sales during the half.
The H1 2024 unit cost is expected to
be c.$125/tonne, which is higher than the c.$115/tonne full year
unit cost guidance prior to the Grosvenor incident, due to lower
than expected production from the higher fixed cost underground
operations at Moranbah and Aquila.
Production has been suspended at the
Grosvenor mine following an underground fire that started on 29
June 2024. The workforce was safely evacuated from the mine without
injury. The mine has been stabilised and we are re-establishing
comprehensive underground gas monitoring, prior to being able to
assess the steps towards a safe re-entry into the mine. The
procedures are expected to take several months as a result of the
likely damage underground. The other steelmaking coal mines are
operating normally.
2024 Guidance
Production guidance for 2024 has
been updated to exclude Grosvenor in the second half of the year
given the current uncertainties, resulting in guidance of 14-15.5
million tonnes (previously 15-17 million tonnes). A planned
longwall move at Moranbah is expected to take place during Q4 2024.
A walk-on/walk-off longwall move at Aquila, that will have a
minimal production impact, is scheduled in Q3 2024.
Unit cost guidance for 2024 is
consequently updated to $130-140/tonne(1) (previously
c.$115/tonne).
(1) 2024
unit cost guidance was set at c.1.5 AUD:USD.
|
Coal, by product (000
t)(1)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Production volumes
|
|
|
|
|
|
|
|
|
|
|
|
Steelmaking
Coal(2)(3)(4)
|
4,238
|
3,780
|
4,756
|
4,356
|
3,356
|
26%
|
12%
|
8,018
|
6,889
|
16%
|
|
Hard coking
coal(2)
|
3,321
|
2,921
|
3,804
|
3,235
|
2,358
|
41%
|
14%
|
6,242
|
5,200
|
20%
|
|
PCI / SSCC
|
917
|
859
|
952
|
1,121
|
998
|
(8)%
|
7%
|
1,776
|
1,689
|
5%
|
|
Export thermal
coal(4)
|
142
|
324
|
34
|
284
|
481
|
(70)%
|
(56)%
|
466
|
765
|
(39)%
|
|
Sales volumes
|
|
|
|
|
|
|
|
|
|
|
|
Steelmaking
Coal(2)
|
4,105
|
3,827
|
3,795
|
4,226
|
3,585
|
15%
|
7%
|
7,932
|
6,919
|
15%
|
|
Hard coking
coal(2)
|
3,212
|
2,974
|
2,987
|
3,199
|
2,681
|
20%
|
8%
|
6,186
|
5,380
|
15%
|
|
PCI / SSCC
|
893
|
853
|
808
|
1,027
|
904
|
(1)%
|
5%
|
1,746
|
1,539
|
13%
|
|
Export thermal coal
|
311
|
429
|
494
|
387
|
390
|
(20)%
|
(28)%
|
740
|
792
|
(7)%
|
|
|
|
Steelmaking coal, by operation (000
t)(1)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Steelmaking
Coal(2)(3)(4)
|
4,238
|
3,780
|
4,756
|
4,356
|
3,356
|
26%
|
12%
|
8,018
|
6,889
|
16%
|
|
Moranbah(2)
|
923
|
561
|
662
|
946
|
948
|
(3)%
|
65%
|
1,484
|
1,524
|
(3)%
|
|
Grosvenor
|
1,215
|
967
|
1,021
|
560
|
240
|
n/a
|
26%
|
2,182
|
1,216
|
79%
|
|
Aquila (incl.
Capcoal)(2)
|
626
|
977
|
1,181
|
1,338
|
874
|
(28)%
|
(36)%
|
1,603
|
1,619
|
(1)%
|
|
Dawson(4)
|
647
|
487
|
1,118
|
688
|
576
|
12%
|
33%
|
1,134
|
1,096
|
3%
|
|
Jellinbah
|
827
|
788
|
774
|
824
|
718
|
15%
|
5%
|
1,615
|
1,434
|
13%
|
|
(1) Anglo
American's attributable share of saleable production.
(2) Includes
production relating to third-party product purchased and processed
at Anglo American's operations.
(3) Steelmaking coal production volumes may include some product
sold as thermal coal.
(4) Q4 2023
includes an adjustment for the 2023 year for some steelmaking coal
produced at Dawson that had previously been reported as thermal
coal.
|
Nickel
|
Nickel(1)
(tonnes)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Nickel
|
10,000
|
9,900
|
1%
|
9,500
|
5%
|
19,500
|
19,600
|
(1)%
|
(1) Excludes
nickel production from the Platinum Group Metals
business.
Nickel production was broadly flat
at 10,000 tonnes,
reflecting operational stability.
2024 Guidance
Production guidance for 2024 is
unchanged at 36,000-38,000 tonnes.
Unit cost guidance for 2024 is
revised lower to c.550 c/lb(1) (previously c.600 c/lb),
reflecting the benefit of lower input costs.
(1) 2024
unit cost guidance was set at c.5.0 BRL:USD.
|
Nickel (tonnes)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Barro Alto
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
1,275,400
|
319,200
|
1,094,700
|
1,387,900
|
1,283,400
|
(1)%
|
300%
|
1,594,600
|
1,818,200
|
(12)%
|
|
Ore processed
|
616,800
|
636,500
|
634,000
|
559,800
|
650,700
|
(5)%
|
(3)%
|
1,253,300
|
1,282,600
|
(2)%
|
|
Ore grade processed - %Ni
|
1.51
|
1.42
|
1.48
|
1.48
|
1.46
|
3%
|
6%
|
1.46
|
1.42
|
3%
|
|
Production
|
8,200
|
7,800
|
8,800
|
7,200
|
8,000
|
3%
|
5%
|
16,000
|
15,800
|
1%
|
|
Codemin
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
-
|
-
|
-
|
-
|
-
|
n/a
|
n/a
|
-
|
27,800
|
n/a
|
|
Ore processed
|
139,700
|
136,300
|
152,500
|
153,200
|
146,900
|
(5)%
|
2%
|
276,000
|
293,800
|
(6)%
|
|
Ore grade processed - %Ni
|
1.45
|
1.43
|
1.46
|
1.44
|
1.42
|
2%
|
1%
|
1.44
|
1.38
|
4%
|
|
Production
|
1,800
|
1,700
|
2,300
|
2,100
|
1,900
|
(5)%
|
6%
|
3,500
|
3,800
|
(8)%
|
|
Total nickel
production(1)
|
10,000
|
9,500
|
11,100
|
9,300
|
9,900
|
1%
|
5%
|
19,500
|
19,600
|
(1)%
|
|
Sales volumes
|
11,300
|
7,700
|
11,400
|
9,300
|
10,600
|
7%
|
47%
|
19,000
|
19,100
|
(1)%
|
(1) Excludes
nickel production from the Platinum Group Metals
business.
Manganese
|
Manganese (000 t)
|
Q2
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q1
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2023
|
2024
|
2024
|
2023
|
|
Manganese
ore(1)
|
356
|
970
|
(63)%
|
784
|
(55)%
|
1,140
|
1,811
|
(37)%
|
(1) Anglo
American's 40% attributable share of saleable
production.
Manganese ore production decreased
by 63% to 356,000 tonnes, primarily due to the impact of tropical
cyclone Megan in mid-March, which temporarily suspended the
Australian operations. The weather event caused widespread flooding
and significant damage to critical infrastructure. Operational
recovery has focused on re-establishing critical services,
dewatering targeted mining pits, and in June a phased return to
mining activities has commenced. Engineering studies are under way
on the infrastructure restoration.
|
Manganese (tonnes)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q2 2024 vs. Q2 2023
|
Q2 2024 vs. Q1 2024
|
H1
|
H1
|
H1 2024 vs. H1 2023
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2024
|
2023
|
|
Samancor production
|
|
|
|
|
|
|
|
|
|
|
|
Manganese
ore(1)
|
356,000
|
783,800
|
847,800
|
1,012,100
|
969,800
|
(63)%
|
(55)%
|
1,139,800
|
1,810,700
|
(37)%
|
|
Samancor sales volumes
|
|
|
|
|
|
|
|
|
|
|
|
Manganese ore
|
365,800
|
796,800
|
992,000
|
971,500
|
937,900
|
(61)%
|
(54)%
|
1,162,600
|
1,761,500
|
(34)%
|
(1) Anglo
American's 40% attributable share of saleable
production.
Exploration and
evaluation
Exploration and evaluation
expenditure in Q2 2024 decreased by 9% to $82 million compared to
the same period last year. Exploration expenditure decreased by 9%
to $32 million. Evaluation expenditure decreased by 9% to $50
million, primarily due to a decrease in spend at PGMs and diamonds,
partially offset by higher spend in copper and iron ore.
Notes
• This
Production Report for the second quarter ended 30 June 2024 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 page 18 for information on forward-looking
statements.
In this document, references to
"Anglo American", the "Anglo American Group", the "Group", "we",
"us", and "our" are to refer to either Anglo American plc and its
subsidiaries and/or those who work for them generally, or where it
is not necessary to refer to a particular entity, entities or
persons. The use of those generic terms herein is for convenience
only, and is in no way indicative of how the Anglo American Group
or any entity within it is structured, managed or controlled. Anglo
American subsidiaries, and their management, are responsible for
their own day-to-day operations, including but not limited to
securing and maintaining all relevant licences and permits,
operational adaptation and implementation of Group policies,
management, training and any applicable local grievance mechanisms.
Anglo American produces Group-wide policies and procedures to
ensure best uniform practices and standardisation across the Anglo
American Group but is not responsible for the day to day
implementation of such policies. Such policies and procedures
constitute prescribed minimum standards only. Group operating
subsidiaries are responsible for adapting those policies and
procedures to reflect local conditions where appropriate, and for
implementation, oversight and monitoring within their specific
businesses.
This document is for information
purposes only and does not constitute, nor is to be construed as,
an offer to sell or the recommendation, solicitation, inducement or
offer to buy, subscribe for or sell shares in Anglo American or any
other securities by Anglo American or any other party. Further, it
should not be treated as giving investment, legal, accounting,
regulatory, taxation or other advice and has no regard to the
specific investment or other objectives, financial situation or
particular needs of any recipient.
For further information, please
contact:
|
Media
|
Investors
|
|
UK
James Wyatt-Tilby
james.wyatt-tilby@angloamerican.com
Tel: +44 (0)20 7968 8759
Marcelo Esquivel
marcelo.esquivel@angloamerican.com
Tel: +44 (0)20 7968 8891
Rebecca Meeson-Frizelle
rebecca.meeson-frizelle@angloamerican.com
Tel: +44 (0)20 7968 1374
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
|
UK
Tyler Broda
tyler.broda@angloamerican.com
Tel: +44 (0)20 7968 1470
Emma Waterworth
emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8574
Michelle Jarman
michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 1494
|
|
|
|
|
|
|
Notes:
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 document, 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 product 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
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new or competing technology, challenges in realising resource
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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 document. Anglo American
expressly disclaims any obligation or undertaking (except as
required by applicable law, the City Code on Takeovers and Mergers,
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Rules of the Financial Conduct Authority, the Listings Requirements
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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 document 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 document 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
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expressly disclaims any responsibility for, or liability in respect
of, such information.
©Anglo American Services (UK) Ltd
2024. 
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and 
TM are trade marks of Anglo American Services
(UK) Ltd.
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